Exhibit 4.1.6
Recording Requested By,
And After Recording, Return To:
WELLS FARGO BANK,
NATIONAL ASSOCIATION
MAC N9312-040
109 South 7th Street, 4th Floor
Minneapolis, MN 55402
Telecopier: (612) 341-2472
Attention:
Becky A.
Koehler
THE TOTAL AMOUNT OF PRINCIPAL INDEBTEDNESS
SECURED BY THIS MORTGAGE SHALL NOT EXCEED, AT ANY ONE TIME, THE SUM
OF $15,000,000 AS TO THE PROPERTY LOCATED IN THE STATE OF KANSAS,
INCLUDING WITHOUT LIMITATION THE COUNTIES OF ATCHISON, POTTAWATOMIE
AND WYANDOTTE.
AMENDED AND RESTATED MORTGAGE, ASSIGNMENT OF
RENTS AND LEASES,
SECURITY AGREEMENT AND FIXTURE FILING
THIS AMENDED AND RESTATED MORTGAGE,
ASSIGNMENT OF RENTS AND LEASES, SECURITY AGREEMENT AND FIXTURE
FILING (this “ Mortgage ”) is made effective as
of August 31, 2009, by MGP INGREDIENTS, INC., a Kansas
corporation (“ Mortgagor ”), to WELLS FARGO
BANK, NATIONAL ASSOCIATION (“ Mortgagee
”).
PRELIMINARY
STATEMENTS
A.
Mortgagor executed that certain Mortgage, Assignment of Rents and
Leases, Security Agreement and Fixture Filing dated August 19,
2009 which was recorded on August 26, 2009, in Book 577,
Page 39 in the office of the Register of Deeds of Atchison
County, Kansas (the “ Original Mortgage
”).
B.
Mortgagor and Mortgagee desire to amend and restate the Original
Mortgage in its entirety with the terms and conditions as set forth
herein.
C.
The principal indebtedness of $15,000,000.00 stated in this
Mortgage and secured by the lien of this Mortgage is the same
principal indebtedness covered by the Original Mortgage and secured
by the lien of the Original Mortgage, which secured an original
principal indebtedness of $15,000,000.00.
D.
Mortgagor paid the mortgage registration fee due upon the recording
of the Original Mortgage with respect to the amount of the lien of
such mortgage and because the amount of the lien of this amended
Mortgage is equal to the amount of the lien of the Original
Mortgage, no additional mortgage registration fee is due and owing
upon the recording of this amended Mortgage.
E.
The preliminary statements set forth above are accurate, represent
the intent of the parties hereto and are incorporated herein by
reference.
ARTICLE I.
MORTGAGE
1.1
Grant . For the purposes and upon the terms and
conditions in this Mortgage, Mortgagor irrevocably mortgages,
warrants, grants, conveys and assigns to Mortgagee, with the right
of entry and possession, Mortgagor’s interest in:
(a) all real property located in Atchison, Pottawatomie and
Wyandotte County, Kansas, and described on Exhibit A
attached hereto; (b) all easements, rights-of-way and rights
used in connection with or as a means of access to any portion of
said real property; (c) all tenements,
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hereditaments and appurtenances thereof and
thereto; (d) all right, title and interest of Mortgagor, now
owned or hereafter acquired, in and to any land lying within the
right-of-way of any street, open or proposed, adjoining said real
property, and any and all sidewalks, alleys and strips and gores of
land adjacent to or used in connection with said real property;
(e) all buildings, improvements and landscaping now or
hereafter erected or located on said real property; (f) all
development rights, governmental or quasi-governmental licenses,
permits or approvals, zoning rights and other similar rights or
interests which relate to the development, use or operation of, or
that benefit or are appurtenant to, said real property;
(g) all mineral rights, oil and gas rights, air rights, water
or water rights owned by Mortgagor, including without limitation,
all wells, canals, ditches and reservoirs of any nature and all
rights thereto, appurtenant to or associated with said real
property, whether decreed or undecreed, tributary or non-tributary,
surface or underground, appropriated or unappropriated, and all
shares of stock in any water, canal, ditch or reservoir company,
and all well permits, water service contracts, drainage rights and
other evidences of any such rights; (h) all, fixtures
(including, without limitation, all heating, air conditioning,
plumbing, lighting, communications and elevator fixtures) and
(i) all interest or estate which Mortgagor now has or may
hereafter acquire in said real property and all additions and
accretions thereto, and all awards or payments made for the taking
of all or any portion of said real property by eminent domain or
any proceeding or purchase in lieu thereof, or any damage to any
portion of said real property (collectively, the “
Subject Property ”). The listing of
specific rights or property shall not be interpreted as a
limitation of general terms.
1.2
Grant of Security Interest; Security Agreement . This
Mortgage is intended to be a security agreement pursuant to the
Kansas Uniform Commercial Code (“ UCC ”) for any
items of personal property specified above as part of the Subject
Property which, under applicable law, may be subject to a security
interest pursuant to the Kansas Uniform Commercial Code and which
are not herein effectively made part of the real property, and
Mortgagor hereby grants Mortgagee a security interest in said
personal property, and in all additions thereto, substitutions
therefor and proceeds thereof, for the purpose of securing all
indebtedness and other obligations of Mortgagor now or hereafter
secured by this Mortgage, all of which shall be deemed part of the
Subject Property. Mortgagor authorizes the filing of
financing and continuation statements covering said personal
property from time to time and in such form as Mortgagee may
require to perfect and continue the perfection of Mortgagee’s
lien or security interest with respect to said personal property
and all the Subject Property. Mortgagor shall pay all costs
of filing such statements and renewals and releases thereof and
shall pay all reasonable costs and expenses of any record searches
for financing statements Mortgagee may reasonably require.
Without the prior written consent of Mortgagee, Mortgagor shall not
create or suffer to be created any other security interest in any
part of said Subject Property, including replacements and additions
thereto. Upon the occurrence of any default of Mortgagor
hereunder, Mortgagee shall have the rights and remedies of a
secured party under the UCC as well as all other rights and
remedies available at law or in equity, and, at Mortgagee’s
option, Mortgagee may also invoke the remedies provided in
Article V of this Mortgage as to such personal property
and all the portions of the Subject Property which are personal
property.
1.3
Fixture Filing . Certain of the Subject Property is or
will become “fixtures” (as that term is defined in the
UCC) on the Subject Property. Upon recording this Security
Instrument in the real property records, this Security Instrument
shall be effective as a financing statement filed as a fixture
filing. In addition, a carbon, photographic or other
reproduction of this Security Instrument and/or any financing
statement relating hereto shall be sufficient for filing and/or
recording as a financing statement. The filing of any other
financing statement relating to any personal property rights or
interests described herein shall not be construed to diminish any
right or priority hereunder.
1.4
Address . The address of the Subject Property (if
known) is:
|
Atchison County:
|
1101 Commercial, 1100 Main, 1200 Main and 1300
Main, Atchison, Kansas 66002
|
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Pottawatomie County:
|
210 South Leonard Street, Onaga, Kansas
66521–9796
|
|
|
|
|
Wyandotte County:
|
16 Kansas Avenue, Kansas City, Kansas
66105–1429.
|
Neither the failure to designate an address nor
any inaccuracy in the address designated shall affect the validity
or priority of the lien of this Mortgage on the Subject Property as
described on Exhibit A . In the event of any
conflict between the provisions of Exhibit A and said
address, Exhibit A shall control.
ARTICLE II. OBLIGATIONS
SECURED
2.1
Obligations Secured . Mortgagor makes this grant and
assignment for the purpose of securing the following obligations
(each, a “ Secured Obligation ” and
collectively, the “ Secured Obligations
”):
(a)
payment to Mortgagee of all sums at any time owing and performance
of all other obligations arising under or in connection with that
certain promissory note (“ Note ”) dated as of
July 21, 2009, in the principal amount of Twenty Five Million
and N0/100 Dollars ($25,000,000), with interest as provided
therein, executed by Mortgagor and payable to Mortgagee or its
order, together with the payment and performance of any other
indebtedness or obligations incurred in connection with the credit
accommodation evidenced by the Note, whether or not specifically
referenced therein; and
(b)
payment and performance of all obligations of Mortgagor under this
Mortgage, together with all advances, payments or other
expenditures made by Mortgagee as or for the payment or performance
of any such obligations of Mortgagor; and
(c)
payment and performance of all obligations, if any, and the
contracts under which they arise, which any rider attached to and
recorded with this Mortgage recites are secured hereby;
and
(d)
payment to Mortgagee of all liability, whether liquidated or
unliquidated, defined, contingent, conditional or of any other
nature whatsoever, and performance of all other obligations,
arising under any swap, derivative, foreign exchange or hedge
transaction or arrangement (or other similar transaction or
arrangement howsoever described or defined) at any time entered
into with Mortgagee in connection with any Secured Obligation;
and
(e)
payment and performance of all future advances and other
obligations that the then record owner of the Subject Property may
agree to pay and/or perform (whether as principal, surety or
guarantor) for the benefit of Mortgagee, when any such advance or
other obligation is evidenced by a writing which recites that it is
secured by this Mortgage; and
(f)
all modifications, extensions and renewals of any of the Secured
Obligations (including without limitation, (i) modifications,
extensions or renewals at a different rate of interest, or
(ii) deferrals or accelerations of the required principal
payment dates or interest payment dates or both, in whole or in
part), however evidenced, whether or not any such modification,
extension or renewal is evidenced by a new or additional promissory
note or notes.
2.2
Obligations . The term “obligations” is
used herein in its most comprehensive sense and includes any and
all advances, debts, obligations and liabilities heretofore, now or
hereafter made, incurred or created, whether voluntary or
involuntary and however arising, whether due or not due, absolute
or contingent, liquidated or unliquidated, determined or
undetermined, joint or several, including
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without limitation, all principal, interest,
charges, including prepayment charges and late charges, and loan
fees at any time accruing or assessed on any Secured
Obligation.
2.3
Incorporation . All terms of the Secured Obligations
are incorporated herein by this reference. All persons who
may have or acquire an interest in the Subject Property are hereby
deemed to have notice of the terms of the Secured Obligations and
to have notice, if provided therein, that: (a) the Note
or any other Secured Obligation may permit borrowing, repayment and
reborrowing; and (b) the rate of interest on one or more
of the Secured Obligations may vary from time to time.
2.4
Future Advances . This Mortgage secures all future
advances and obligations under the Secured Obligations up to the
maximum principal sum of $15,000,000 (the “ Maximum
Sum ”) for the subject property located in the State of
Kansas pursuant to K.S.A. 58-2236. The total amount of
obligations and advances secured hereby may decrease or increase
from time to time, provided that the amount of the lien shall not
at any time exceed the Maximum Sum, all accrued interest thereon,
and all amounts (other than principal) payable by any obligor under
the Secured Obligations, including, without limitation, all taxes
and insurance premiums paid or advanced by Mortgagee with respect
to the Subject Property, all costs of enforcing and foreclosing on
the lien of this Mortgage, and all sums expended or incurred for
the protection of the security interest hereby created in the
Subject Property, regardless whether the foregoing was advanced,
paid, incurred or expended prior to the date hereof or at any
future time or times.
ARTICLE III. ASSIGNMENT OF
RENTS
3.1
Assignment . For the purposes and upon the terms and
conditions set forth herein, Mortgagor irrevocably assigns to
Mortgagee all of Mortgagor’s right, title and interest in, to
and under all leases, licenses, rental agreements and other
agreements of any kind relating to the use or occupancy of any of
the Subject Property, whether existing as of the date hereof or at
any time hereafter entered into, together with all guarantees of
and security for any tenant’s or lessee’s performance
thereunder, and all amendments, extensions, renewals and
modifications thereto (each, a “Lease” and
collectively, the “Leases”), together with any and all
other rents, issues and profits of the Subject Property
(collectively, “Rents”). This assignment shall
not impose upon Mortgagee any duty to produce Rents from the
Subject Property, nor cause Mortgagee to be: (a) a
“mortgagee in possession” for any purpose;
(b) responsible for performing any of the obligations of the
lessor or landlord under any Lease; or (c) responsible for any
waste committed by any person or entity at any time in possession
of the Subject Property or any part thereof, or for any dangerous
or defective condition of the Subject Property, or for any
negligence in the management, upkeep, repair or control of the
Subject Property. This is an absolute assignment, not an
assignment for security only, and Mortgagee’s right to Rents
is not contingent upon and may be exercised without taking
possession of the Subject Property. Mortgagor agrees to
execute and deliver to Mortgagee, within five (5) days of
Mortgagee’s written request, such additional documents as
Mortgagee may reasonably request to further evidence the assignment
to Mortgagee of any and all Leases and Rents. Mortgagee, at
Mortgagee’s option and without notice, may notify any lessee
or tenant of this assignment of the Leases and Rents.
3.2
Protection of Security . To protect the security of
this assignment, Mortgagor agrees:
(a) At
Mortgagor’s sole cost and expense: (i) to perform
each obligation to be performed by the lessor or landlord under
each Lease and to enforce or secure the performance of each
obligation to be performed by the lessee or tenant under each
Lease; (ii) not to modify any Lease in any material respect,
i.e. affecting the rent or other payments, length of term, identity
of tenant, or substantially affect the landlord’s or
tenant’s obligations thereunder; nor accept surrender under
or terminate the term of any Lease; (iii) not to anticipate
the Rents under any Lease; and (iv) not to waive or release
any lessee or tenant of or from any Lease obligations.
Mortgagor assigns to Mortgagee all of Mortgagor’s right
and
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power to modify the terms of any Lease (except
for nonmaterial modifications as described above), to accept a
surrender under or terminate the term of or anticipate the Rents
under any Lease, and to waive or release any lessee or tenant of or
from any Lease obligations, and any attempt on the part of
Mortgagor to exercise any such rights or powers without
Mortgagee’s prior written consent shall be a breach of the
terms hereof.
(b) At
Mortgagor’s sole cost and expense, to defend any action in
any manner connected with any Lease or the obligations thereunder,
and to pay all costs of Mortgagee, including reasonable
attorneys’ fees, in any such action in which Mortgagee may
appear.
(c)
That, should Mortgagor fail to do any act required to be done by
Mortgagor under a Lease, then Mortgagee, but without obligation to
do so and without notice to Mortgagor and without releasing
Mortgagor from any obligation hereunder, may make or do the same in
such manner and to such extent as Mortgagee deems necessary to
protect the security hereof, and, in exercising such powers,
Mortgagee may employ attorneys and other agents, and Mortgagor
shall pay necessary costs and reasonable attorneys’ fees
incurred by Mortgagee, or its agents, in the exercise of the powers
granted herein. Mortgagor shall give prompt notice to
Mortgagee of any material default by any lessee or tenant under any
Lease which continues beyond a reasonable cure period, and of any
notice of default on the part of Mortgagor under any Lease received
from a lessee or tenant thereunder, which continues beyond a
reasonable cure period, together with an accurate and complete copy
thereof.
(d) To
pay to Mortgagee immediately upon demand all sums expended under
the authority hereof, including reasonable attorneys’ fees,
together with interest thereon at the highest rate per annum
payable under any Secured Obligation, and the same, at
Mortgagee’s option, may be added to any Secured Obligation
and shall be secured hereby.
3.3
License . Mortgagee confers upon Mortgagor a license
(“License”) to collect and retain the Rents as, but not
before, they come due and payable, until the occurrence of any
Default. Upon the occurrence of any Default, the License
shall be automatically revoked, and Mortgagee may, at
Mortgagee’s option and without notice, either in person or by
agent, with or without bringing any action, or by a receiver to be
appointed by a court: (a) enter, take possession of,
manage and operate the Subject Property or any part thereof;
(b) make, cancel, enforce or modify any Lease; (c) obtain
and evict tenants, fix or modify Rents, and do any acts which
Mortgagee deems proper to protect the security hereof; and
(d) either with or without taking possession of the Subject
Property, in its own name, sue for or otherwise collect and receive
all Rents, including those past due and unpaid, and apply the same
in accordance with the provisions of this Mortgage. The
entering and taking possession of the Subject Property, the
collection of Rents and the application thereof as aforesaid, shall
not cure or waive any Default, nor waive, modify or affect any
notice of default hereunder, nor invalidate any act done pursuant
to any such notice. The License shall not grant to Mortgagee
the right to possession, except as provided in this Mortgage.
Any indemnifications of Mortgagor in favor of Mortgagee hereunder
shall not extend to actions taken by Mortgagee with respect to the
Subject Property or the tenants or lessees after Mortgagee’s
revocation of the License contained herein.
ARTICLE IV. RIGHTS AND
DUTIES OF THE PARTIES
4.1
Title . Mortgagor warrants that, except as disclosed
to Mortgagee prior to the date hereof in a writing which refers to
this warranty, Mortgagor lawfully possesses and holds fee simple
title to, or if permitted by Mortgagee in writing, a leasehold
interest in, the Subject Property without limitation on the right
to encumber, as herein provided, and that this Mortgage is a valid
lien on the Subject Property and all of Mortgagor’s interest
therein.
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4.2
Taxes and Assessments . Subject to the right, if any,
of Mortgagor to contest payment of the following pursuant to any
other agreement between Mortgagor and Mortgagee, Mortgagor shall
pay prior to delinquency all taxes, assessments, levies and charges
imposed: (a) by any public or quasi-public authority or
utility company which are or which may become a lien upon or cause
a loss in value of the Subject Property or any interest therein; or
(b) by any public authority upon Mortgagee by reason of its
interest in any Secured Obligation or in the Subject Property, or
by reason of any payment made to Mortgagee pursuant to any Secured
Obligation; provided however, that Mortgagor shall have no
obligation to pay any income taxes of Mortgagee. Promptly
upon request by Mortgagee, Mortgagor shall furnish to Mortgagee
satisfactory evidence of the payment of all of the foregoing.
Mortgagee is hereby authorized to request and receive from the
responsible governmental and non-governmental personnel written
statements with respect to the accrual and payment of any of the
foregoing.
4.3
Performance of Secured Obligations . Mortgagor shall
promptly pay and perform each Secured Obligation when
due.
4.4
Liens, Encumbrances and Charges . Mortgagor shall
immediately discharge any lien on the Subject Property not approved
by Mortgagee in writing. The preceding sentence does not
apply to liens which are exceptions to the title of the Subject
Property and which are actually set forth in (i) Title
Commitment No. NCS-406260 dated July 29, 2009, issued by
First American Title Insurance Company as to the Subject Property
located in Atchison County, Kansas, (ii) Title Commitment
No. NCS-406315 dated July 27, 2009, issued by First
American Title Insurance Company as to the Subject Property located
in Potawatomie County, Kansas or (iii) Title Commitment
No. NCS-406269 dated July 23, 2009, issued by First
American Title Insurance Company as to the Subject Property located
in Wyandotte County, Kansas, nor liens arising hereafter for
ordinary real estate taxes and assessments. Except as
otherwise provided in any Secured Obligation or other agreement
with Mortgagee, Mortgagor shall pay when due all obligations
secured by or reducible to liens and encumbrances which shall now
or hereafter encumber the Subject Property, whether senior or
subordinate hereto, including without limitation, any
mechanics’ liens, although if Mortgagor feels that any
mechanic’s lien is filed in excess of the true amount owing
to the mechanic’s lien claimant, Mortgagor may (so long as
Mortgagor has not committed any Default hereunder) upon depositing
with Mortgagee an amount equal to such claim, contest the amount
and validity of such mechanic’s lien, and during the entire
period of such contest shall defend and indemnify Mortgagee against
any loss, cost or expense incurred by Mortgagee thereby, and
Mortgagor shall in any event pay the full amount of any final and
nonappealable judgment resulting from such mechanic’s lien at
least thirty (30) days before any sale or other execution resulting
from such judgment is scheduled to take place.
4.5
Insurance . Mortgagor shall insure the Subject
Property against loss or damage by fire and such other risks as
Mortgagee shall from time to time require. Mortgagor shall
carry public liability insurance, flood insurance as may be
required by applicable law and such other insurance as Mortgagee
may reasonably require and which is typical for commercial
properties in the vicinity of and of similar nature to the
Property, including without limitation, business interruption
insurance or loss of rental value insurance. Mortgagor shall
maintain all required insurance at Mortgagor’s expense, under
policies issued by companies and in form and substance reasonably
satisfactory to Mortgagee (Mortgagee hereby agrees that
mortgagor’s current insurers, of which Mortgagee has been
advised, are satisfactory). Mortgagee, by reason of
accepting, rejecting, approving or obtaining insurance, shall not
incur any liability for: (a) the existence, nonexistence, form
or legal sufficiency thereof; (b) the solvency of any insurer;
or (c) the payment of losses. All policies and
certificates of insurance shall name Mortgagee as an additional
loss payee, and shall provide that the insurance cannot be
terminated as to Mortgagee except upon a minimum of ten
(10) days’ prior written notice to Mortgagee.
Immediately upon any request by Mortgagee, Mortgagor shall deliver
to Mortgagee duplicates of the original copies of all such policies
or certificates, with receipts evidencing annual prepayment of the
premiums.
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4.6
Tax and Insurance Impounds . In the event any Default
occurs hereunder, and provided that a tax and insurance impound is
not then being implemented by the holder of a mortgage on the
Subject Property which is senior to the lien of this Mortgage, then
at any time thereafter upon written notice from Mortgagee to
Mortgagor, Mortgagor shall, until all Secured Obligations have been
paid in full, pay to Mortgagee monthly, annually or as otherwise
directed by Mortgagee an amount estimated by Mortgagee to be equal
to: (a) all taxes, assessments, levies and charges imposed by
any public or quasi-public authority or utility company which are
or may become a lien upon the Subject Property and will become due
for the tax year during which such payment is so directed; and
(b) premiums for fire, other hazard and mortgage insurance
next due. If Mortgagee determines that amounts paid by
Mortgagor are insufficient for the payment in full of such taxes,
assessments, levies and/or insurance premiums, Mortgagee shall
notify Mortgagor of the increased amount required for the payment
thereof when due, and Mortgagor shall pay to Mortgagee such
additional amount within thirty (30) days after notice from
Mortgagee. All amounts so paid shall not bear interest,
except to the extent and in the amount required by law. So
long as there is no Default, Mortgagee shall apply said amounts to
the payment of, or at Mortgagee’s sole option release said
funds to Mortgagor for application to and payment of, such taxes,
assessments, levies, charges and insurance premiums. If a
Default exists, Mortgagee at its sole option may apply all or any
part of said amounts to any Secured Obligation and/or to cure such
Default, in which event Mortgagor shall be required to restore all
amounts so applied, as well as to cure any Default not cured by
such application. Mortgagor hereby grants and transfers to
Mortgagee a security interest in all amounts so paid and held in
Mortgagee’s possession, and all proceeds thereof, to secure
the payment and performance of each Secured Obligation. Upon
assignment of this Mortgage, Mortgagee shall have the right to
assign all amounts collected and in its possession to its assignee,
whereupon Mortgagee shall be released from all liability with
respect thereto. The existence of said impounds shall not
limit Mortgagee’s rights under any other provision of this
Mortgage or any other agreement, statute or rule of law.
Within ninety-five (95) days following full repayment of all
Secured Obligations (other than as a consequence of a foreclosure
or conveyance in lieu of foreclosure of the liens and security
interests securing any Secured Obligation), or at such earlier time
as Mortgagee in its discretion may elect, the balance of all
amounts collected and in Mortgagee’s possession shall be paid
to Mortgagor, and no other party shall have any right of claim
thereto.
4.7
Damages; Insurance and Condemnation Proceeds .
(a)
(i) All awards of damages and all other compensation payable
directly or indirectly by reason of a condemnation or proposed
condemnation (or transfer in lieu thereof) for public or private
use affecting the Subject Property; (ii) all other claims and
awards for damages to or decrease in value of the Subject Property;
(iii) all proceeds of any insurance policies payable by reason
of loss sustained to the Subject Property; and (iv) all
interest which may accrue on any of the foregoing, are all (to the
extent that such amounts are not being required to be paid to the
holder of a mortgage on the Subject Property which is senior to the
lien of this Mortgage) absolutely and irrevocably assigned to and
shall be paid to Mortgagee. In such event, at the absolute
discretion of Mortgagee, whether or not its security is or may be
impaired, but subject to applicable law if any, and without regard
to any requirement contained in any other Section hereof,
Mortgagee may apply all or any of the proceeds it receives to its
expenses in settling, prosecuting or defending any such claim and
apply the balance to the Secured Obligations in any order, and
release all or any part of the proceeds to Mortgagor upon any
conditions Mortgagee may impose. In such event, Mortgagee may
commence, appear in, defend or prosecute any assigned claim or
action, and may adjust, compromise, settle and collect all claims
and awards assigned to Mortgagee; provided however, that in no
event shall Mortgagee be responsible for any failure to collect any
claim or award, regardless of the cause of the failure.
(b) At
its sole option, Mortgagee may permit insurance or condemnation
proceeds held by Mortgagee to be used for repair or restoration but
may impose any conditions on such use as Mortgagee deems
necessary.
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4.8
Maintenance and Preservation of Subject Property .
Subject to the provisions of any Secured Obligation, Mortgagor
covenants:
(a) to
keep the Subject Property in good condition and repair;
(b)
except with Mortgagee’s prior written consent, not to remove
or demolish the Subject Property, nor alter, restore or add to the
Subject Property (except for the replacement of equipment or
fixtures with like items of similar or greater value), nor initiate
or acquiesce in any change in any zoning or other land
classification which affects the Subject Property;
(c) to
restore promptly and in good workmanlike manner any portion of the
Subject Property which may be damaged or destroyed, unless
Mortgagee requires that all of the insurance proceeds be used to
reduce the Secured Obligations as provided in the
Section hereof entitled Damages; Insurance and Condemnation
Proceeds ;
(d) to
comply with and not to suffer violation of any or all of the
following which govern acts or conditions on, or otherwise affect
the Subject Property: (i) laws, ordinances, regulations,
standards and judicial and administrative rules and orders;
(ii) covenants, conditions, restrictions and equitable
servitudes, whether public or private; and (iii) requirements
of insurance companies and any bureau or agency which establishes
standards of insurability;
(e)
not to commit or permit waste of the Subject Property;
and
(f)
to do all other acts which from the character or use of the Subject
Property may be reasonably necessary to maintain and preserve its
value.
4.9
Hazardous Substances; Environmental Provisions .
Mortgagor represents and warrants to Mortgagee to its actual
knowledge as follows:
(a)
Except as disclosed to Mortgagee in writing prior to the date
hereof, the Subject Property is not and has not been a site for the
use, generation, manufacture, storage, treatment, disposal, release
or threatened release, transportation or presence of any substances
which are “hazardous substances,” “hazardous
wastes,” “hazardous materials” or “toxic
substances” under the Hazardous Materials Laws, as defined
below, and/or other applicable environmental laws, ordinances and
regulations (collectively, the “Hazardous
Materials”).
(b)
Except as disclosed to Mortgagee in Schedule 5.11 to the
Credit and Security Agreement entered into between the Mortgagor
and the Mortgagee dated July 21, 2009 (as same may be amended
or replaced from time to time, the “ Credit Agreement
”), the Subject Property is in compliance with all laws,
ordinances and regulations relating to Hazardous Materials
(collectively, the “Hazardous Materials Laws”),
including without limitation, the Clean Air Act, the Federal Water
Pollution Control Act, the Federal Resource Conservation and
Recovery Act of 1976, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, the Superfund Amendments
and Reauthorization Act of 1986, the Federal Toxic Substances
Control Act and the Occupational Safety and Health Act, as any of
the same may be amended, modified or supplemented from time to
time, and any other applicable federal, state or local
environmental laws, and any rules or regulations adopted
pursuant to any of the foregoing.
(c)
Except as disclosed to Mortgagee in Schedule 5.11 to the
Credit Agreement, there are no claims or actions pending or
threatened against Mortgagor or the Subject Property by any
governmental entity or agency, or any other person or entity,
relating to any Hazardous Materials or pursuant to any Hazardous
Materials Laws.
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(d)
Mortgagor hereby agrees to defend, indemnify and hold harmless
Mortgagee, its directors, officers, employees, agents, successors
and assigns, from and against any and all losses, damages,
liabilities, claims, actions, judgments, court costs and legal or
other expenses (including without limitation, attorneys’ fees
and expenses) which Mortgagee may incur as a direct or indirect
consequence of the use, generation, manufacture, storage,
treatment, disposal, release or threatened release, transportation
or presence of Hazardous Materials in, on, under or about the
Subject Property. Mortgagor shall pay to Mortgagee
immediately upon demand any amounts owing under this indemnity,
together with interest from the date of demand until paid in full
at the highest rate of interest applicable to any Secured
Obligation. MORTGAGOR’S DUTY AND OBLIGATION TO DEFEND,
INDEMNIFY AND HOLD HARMLESS MORTGAGEE SHALL SURVIVE THE
CANCELLATION OF THE SECURED OBLIGATIONS AND THE RELEASE OR PARTIAL
RELEASE OF THIS MORTGAGE.
(e)
Mortgagor shall immediately advise Mortgagee in writing upon
Mortgagor’s discovery of any occurrence or condition on the
Subject Property, or on any real property adjoining or in the
vicinity of the Subject Property, that does or could cause all or
any part of the Subject Property to be contaminated with any
Hazardous Materials or otherwise be in violation of any Hazardous
Materials Laws, or cause the Subject Property to be subject to any
restrictions on the ownership, occupancy, transferability or use
thereof under any Hazardous Materials Laws.
4.10
Protection of Security . Mortgagor shall, at
Mortgagor’s sole expense: (a) protect, preserve
and defend the Subject Property and Mortgagor’s title and
right to possession of the Subject Property against all adverse
claims; (b) if Mortgagor’s interest in the Subject
Property is a leasehold interest or estate, pay and perform in a
timely manner all obligations to be paid and/or performed by the
lessee or tenant under the lease or other agreement creating such
leasehold interest or estate; and (c) protect, preserve and
defend the security of this Mortgage and the rights and powers of
Mortgagee under this Mortgage against all adverse claims.
Mortgagor shall give Mortgagee prompt notice in writing of the
assertion of any claim, the filing of any action or proceeding, or
the occurrence of any damage, condemnation offer or other action
relating to or affecting the Subject Property and, if
Mortgagor’s interest in the Subject Property is a leasehold
interest or estate, of any notice of default or demand for
performance under the lease or other agreement pursuant to which
such leasehold interest or estate was created or exists.
4.11
Powers and Duties of Mortgagee . Mortgagee may, upon
written request, without obligation to do so or liability therefor
and without notice: (a) release all or any part of the
Subject Property from the lien of this Mortgage; (b) consent
to the making of any map or plat of the Subject Property; and
(c) join in any grant of easement or declaration of covenants
and restrictions with respect to the Subject Property, or any
extension agreement or any agreement subordinating the lien or
charge of this Mortgage. Mortgagee may from time to time
apply to any court of competent jurisdiction for aid and direction
in the exercise or enforcement of its rights and remedies available
under this Mortgage, and may obtain orders or decrees directing,
confirming or approving acts in the exercise or enforcement of said
rights and remedies. Mortgagee has no obligation to notify
any party of any pending sale or any action or proceeding
(including, but not limited to, actions in which Mortgagor or
Mortgagee shall be a party) unless held or commenced and maintained
by Mortgagee under this Mortgage.
4.12
Compensation; Exculpation; Indemnification .
(a)
Mortgagor shall pay Mortgagee reasonable compensation for services
rendered concerning this Mortgage, including without limitation,
the providing of any statement of amounts owing under any Secured
Obligation. Mortgagee shall not directly or indirectly be
liable to Mortgagor or any other person as a consequence of:
(i) the exercise of any rights, remedies or powers granted to
Mortgagee in this Mortgage; (ii) the failure or refusal of
Mortgagee to perform or discharge any obligation or liability
of
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Mortgagor under this Mortgage or any Lease or
other agreement related to the Subject Property; or (iii) any
loss sustained by Mortgagor or any third party as a result of
Mortgagee’s f