Exhibit 10.3
FORM OF
OPEN-END MORTGAGE,
ASSIGNMENT OF LEASES AND RENTS AND FIXTURE FILING
MAXIMUM PRINCIPAL AMOUNT NOT TO EXCEED $53,000,000
THIS OPEN-END MORTGAGE, ASSIGNMENT OF LEASES AND RENTS AND FIXTURE FILING
(as the same may from time to time be amended, restated or otherwise modified,
this "Agreement") is made as of the ____ day of October, 2002, by _____________
, a ___________ corporation, ("Mortgagor") in favor of JPMORGAN CHASE BANK, a
national banking association, as Agent for the Lenders, as hereinafter defined
(in its capacity as agent, for the benefit of and on behalf of the Lenders,
"Agent").
WHEREAS, HAWK CORPORATION, a Delaware corporation, and each of the other
Borrowers from time to time party to the Credit Agreement (collectively,
together with their respective successors and assigns, "Borrowers"), Agent, PNC
BANK, NATIONAL ASSOCIATION, as a documentation agent, FLEET CAPITAL CORP., as a
documentation agent, and the other entities identified on SCHEDULE 2.01 to the
Credit Agreement, as hereinafter defined (collectively, together with their
respective successors and assigns, "Lenders" and, individually, "Lender"), are
parties to that certain Credit Agreement, dated as of October __, 2002 (as the
same may from time to time be amended, restated, supplemented or otherwise
modified, the "Credit Agreement"; the capitalized terms defined therein and not
otherwise defined in this Agreement being used herein as therein defined),
pursuant to which the Lenders will, among other things, grant to Borrowers the
Loans, Letters of Credit, and other extensions of credit pursuant to the Credit
Agreement;
WHEREAS, Mortgagor understands that the Lenders are willing to grant such
financial accommodations to the Borrowers, including the Mortgagor, only upon
certain terms and conditions, one of which is that Mortgagor execute and deliver
this Agreement and this Agreement is being executed and delivered in
consideration of each financial accommodation, granted to the Borrowers by Agent
and the Lenders and for other valuable considerations.
NOW, THEREFORE, TO SECURE TO AGENT, for the benefit of the Lenders, all of
the following (collectively, the "Obligations"): (a) all obligations of the
Borrowers and the Guarantors to the Lenders and the Agent under the Credit
Agreement or any of the other Facility Documents, including, without limitation,
all indebtedness evidenced by the Notes; (b) all obligations under, or in
respect of the Letters of Credit and all Reimbursement Obligations, and all
Foreign Exchange Obligations and Interest Rate Protection Obligations of the
Borrowers to the Lenders or the Agent, together with all accrued and unpaid
interest (including, without limitation, all interest that, but for the filing
of a petition in, or commencement of a case, proceeding or other action relating
to, bankruptcy, insolvency or reorganization of any Borrowers or any of its
Subsidiaries, would have accrued, whether or not a claim is allowed against such
Borrowers or Subsidiary for such interest in the related bankruptcy proceeding),
fees, expenses and charges payable by the Borrowers or the Guarantors under the
Credit
Agreement or under any of the other Facility Documents; and (c) the performance
of the covenants and agreements of Mortgagor contained in this Agreement,
Mortgagor does hereby MORTGAGE, GRANT, CONVEY AND ASSIGN to Agent, for the
benefit of the Lenders, the real property described in EXHIBIT A attached hereto
and made a part hereof, together with all present and future right, title and
interest of Mortgagor therein or in any way appertaining thereto, and all
buildings, improvements and tenements now or hereafter erected on the property,
and all heretofore or hereafter vacated alleys and streets abutting the
property, and all easements, rights, appurtenances, rents, royalties, mineral,
oil and gas rights and profits, water, water rights, and water stock appurtenant
to the property, and all fixtures, machinery, equipment, engines, boilers,
incinerators, building materials, appliances and goods of every nature
whatsoever now or hereafter owned by Mortgagor and located in, or on, or used,
or intended to be used in connection with the property, including, but not
limited to, those for the purposes of supplying or distributing heating,
cooling, electricity, gas, water, air and light; all cranes and materials
handling equipment; and all elevators, and related machinery and equipment, fire
prevention and extinguishing apparatus, security and access control apparatus,
plumbing, bath tubs, water heaters, water closets, stoves, refrigerators,
dishwashers, disposals, washers, dryers, awnings, storm windows, storm doors,
screens, blinds, shades, curtains and curtain rods, mirrors, cabinets, paneling,
rugs, attached floor coverings, furniture, fixtures, equipment; and all rentals,
revenues, payments, repayments, deposits, income, charges and moneys derived
from the use, lease, sublease, rental or other disposition of the property and
the proceeds from any insurance or condemnation award pertaining thereto; and
all other property (tangible and intangible) now owned or hereafter acquired by
Mortgagor and used in, on or about the subject real estate or arising from the
operation of the property, all of which, including replacements and additions
thereto and proceeds therefrom, shall be deemed to be and remain a part of the
real property covered by this Agreement; and all of the foregoing, including
said real property, are herein referred to as the "Property".
TO HAVE AND TO HOLD, Mortgagor represents and warrants that (i) Mortgagor
is lawfully seized of the estate hereby conveyed and has the right to mortgage,
grant, convey and assign the Property, (ii) the Property is unencumbered except
for the matters approved by Agent and the Lenders and described on EXHIBIT B
attached hereto and made a part hereof ("Permitted Encumbrances"), and (iii)
Mortgagor will warrant and defend generally the title to the Property against
all claims and demands whatsoever, except as aforesaid.
Mortgagor and Agent, on behalf of the Lenders, covenant and agree as
follows:
1. PAYMENT OF OBLIGATIONS. Mortgagor shall promptly pay and perform all of
the Obligations when due.
2. OPEN-END MORTGAGE. This Agreement is an Open-End Mortgage under Section
5301.232 of the Ohio Revised Code and is intended to secure all of the
Obligations, including such Obligations that may be advanced to or payable by
Mortgagor after the date of this Agreement. This Agreement shall secure the
maximum principal amount of up to Fifty-Three Million Dollars ($53,000,000),
together with interest thereon and such other amounts as shall become due and
owing to Agent and the Lenders from Mortgagor pursuant this Agreement.
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3. INSURANCE. Mortgagor shall keep all improvements now existing or
hereafter erected on the Property insured against loss by fire and such other
hazards, casualties, and contingencies in such form, written by Mortgagor, in
such amounts, for such period, and against such risks as may be acceptable to
Agent, with provisions satisfactory to Agent, for payment of all losses
thereunder to Agent, for the benefit of the Lenders, and Mortgagor as its
interest may appear (loss payable endorsement in favor of Agent, for the benefit
of Lenders), and, if required by Agent, Mortgagor shall deposit the policies
with Agent. Any such policies of insurance shall provide for no fewer than
thirty (30) days prior written notice of cancellation to Agent. In the event of
foreclosure of this Agreement, all right, title, and interest of Mortgagor in
and to any insurance policies then in force shall pass to the purchaser at
foreclosure sale, and Agent is hereby appointed attorney in fact for Mortgagor
for the purpose of assigning and transferring such policies and receiving all or
any part of the proceeds therefrom. The insurance proceeds or any part thereof
may be applied by Agent, at Agent's option, either to the reduction of the
Obligations or to restoration or repair of the property damaged.
4. FUNDS FOR TAXES, INSURANCE AND OTHER CHARGES. Upon default in payment by
Mortgagor of any of the following described items, or upon the occurrence of an
Event of Default, as hereinafter defined, Agent shall have the right, at Agent's
option, to require Mortgagor to pay to Agent on the first day of each month,
until the Obligations have been paid in full, a sum (herein "Funds") equal to
one-twelfth of (a) the yearly water and sewer rates and taxes and assessments
that may be levied on the Property and (b) the yearly premium installments for
fire and other hazard insurance, rent loss insurance (if applicable) and such
other insurance covering the Property as Agent may require pursuant to the
Credit Agreement, all as reasonably estimated initially and from time to time by
Agent on the basis of assessments and bills and reasonable estimates thereof.
Any waiver by Agent of a requirement that Mortgagor pay such Funds may be
revoked by Agent, in Agent's sole discretion, at any time upon notice in writing
to Mortgagor. Agent may require Mortgagor to pay to Agent, in advance, such
other Funds for other taxes, charges, premiums, assessments and impositions in
connection with Mortgagor or the Property that Agent shall reasonably deem
necessary to protect Agent's interests (herein "Other Impositions"). Unless
otherwise provided by applicable law, Agent, at Agent's option, may require
Funds for Other Impositions to be paid by Mortgagor in a lump sum (not exceeding
Other Impositions due for a one-year period) or in periodic installments.
The Funds shall be held by Agent and shall be applied to pay such
rates, rents, taxes, assessments, insurance premiums and Other Impositions so
long as no Event of Default has occurred. Agent shall make no charge for so
holding and applying the Funds, analyzing such account or for verifying and
compiling said assessments and bills, unless Agent pays Mortgagor interest,
earnings or profits on the Funds and applicable law permits Agent to make such a
charge. Unless applicable law requires interest, earnings or profits on the
Funds to be paid, Agent shall not be required to pay Mortgagor any interest,
earnings or profits on the Funds. Agent shall give to Mortgagor, without charge,
an annual accounting of the Funds showing credits and debits to the Funds and
the purpose for which each debit to such Funds was made. The Funds are pledged
as additional security for the Obligations and shall be subject to the right of
set off.
If the amount of the Funds held by Agent at the time of the annual
accounting thereof shall exceed the amount deemed necessary by Agent to provide
for the payment of water
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and sewer rates, taxes, assessments, insurance premiums, rents and Other
Impositions, as such payments become due, Agent (in its sole discretion) may
either (i) return the amount of the excess to Mortgagor or (ii) apply a part or
all of such excess at such time or times as Agent may elect to the Obligations.
If, at any time, the amount of the Funds held by Agent shall be less than the
amount deemed necessary by Agent to pay water and sewer rates, taxes,
assessments, insurance premiums, rents and Other Impositions, as such payments
become due, Mortgagor shall, on demand, pay such deficiency. Upon the occurrence
of an Event of Default, Agent may apply, in any amount and in any order as Agent
shall determine, in Agent's sole discretion, any Funds held by Agent at the time
of application (A) to pay rates, rents, taxes, assessments, insurance premiums
and Other Impositions that are now or shall hereafter become due; or (B) as a
credit against sums secured by this Agreement. Upon release of this Agreement
and payment in full of the Obligations, Agent shall promptly refund to Mortgagor
any Funds held by Agent.
5. CHARGES; MECHANICS LIENS. Mortgagor shall pay all water and sewer rates,
rents, taxes assessments, premiums, and Other Impositions (not being diligently
contested by Mortgagor (a) in a timely manner and (b) with the support of
adequate financial reserves), attributable to the Property. Mortgagor shall
promptly discharge any lien that has, or may have, priority over or equality
with, the lien of this Agreement, other than Permitted Encumbrances.
If a mechanic's lien is filed against the Property, Mortgagor shall
promptly notify Agent and, at Agent's request, shall deliver to Agent, either of
the following, at Mortgagor's option, (i) a cash deposit or (ii) an indemnity
bond satisfactory to Agent issued by a surety satisfactory to Agent, in the
amount claimed by any such lien, together with an additional sum necessary to
pay all costs, interest and penalties that may be payable in connection
therewith. Without Agent's prior written consent, Mortgagor shall not allow any
lien, encumbrance, or other interest in the Property to be perfected against the
Property, other than Permitted Encumbrances, unless Mortgagor is then diligently
contesting same and has, as to the lien, encumbrance or interest being
contested, complied with (i) or (ii) of the preceding sentence.
6. PRESERVATION AND MAINTENANCE OF PROPERTY. Mortgagor (a) shall not commit
waste or permit impairment or deterioration of the Property; (b) shall not
abandon the Property; (c) shall, unless Agent withholds insurance proceeds as
security for or application to the Obligations as provided in the Credit
Agreement, restore or repair promptly and in a good and workmanlike manner all
or any part of the Property to the equivalent of its original condition, or such
other condition as Agent may approve in writing, in the event of any damage,
injury or loss thereto, whether or not insurance proceeds are available to cover
in whole or in part the costs of such restoration or repair unless the
improvements constituting the Property are (i) totally destroyed, (ii) insurance
has been maintained thereon as required by this Agreement, and (iii) Agent
applies the proceeds of such insurance to payment of the Obligations; (d) shall
keep the Property, including improvements, fixtures, equipment, machinery and
appliances, in good repair and shall replace improvements, fixtures, equipment,
machinery and appliances on the Property owned by Mortgagor when necessary to
keep such items in good repair; (e) shall comply in all material respects with
all laws, ordinances, regulations and requirements of any governmental body
applicable to the Property, including, without limitation, the American with
Disabilities Act, as it may be amended from time to time; and (f) shall give
notice in writing to Agent of, appear in and defend, any action or proceeding
purporting to affect the Property, the security of this Agreement or the rights
or powers of Agent, except for any such action or proceeding caused by the gross
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negligence or intentional misconduct of Agent. Unless required by applicable law
or unless Agent has otherwise consented in writing, neither Mortgagor nor any
tenant or other Person shall remove, demolish or alter any improvement now
existing or hereafter erected on the Property or any fixture (other than trade
fixtures), equipment, machinery or appliance in or on the Property owned by
Mortgagor and used or intended to be used in connection with the Property,
except as permitted pursuant to the Credit Agreement.
7. USE OF PROPERTY. Unless required by applicable law or unless Agent has
otherwise agreed in writing, Mortgagor shall not allow changes in the use for
which all or any part of the Property was intended at the time this Agreement
was executed. Mortgagor shall not initiate or acquiesce in a change in the
zoning classification of the Property without Agent's prior written consent.
8. PROTECTION OF AGENT'S SECURITY. If Mortgagor fails to perform the
covenants and agreements contained in this Agreement, or if any action or
proceeding is commenced that affects the Property or title thereto or the
interest of Agent therein, including, but not limited to, eminent domain,
insolvency, enforcement of local laws, or arrangements or proceedings involving
a bankrupt or decedent, then Agent, at Agent's option, may make such
appearances, disburse such sums and take such action as Agent deems necessary,
in its sole discretion, to protect the interests of Agent and the Lenders,
including, but not limited to, (a) disbursement of attorneys' fees; (b) entry
upon the Property to remedy any failure of Mortgagor to perform hereunder; and
(c) procurement of satisfactory insurance.
Any amounts disbursed by Agent pursuant to this Section 8, with
interest thereon, shall become part of the Obligations and shall be secured by
this Agreement. Unless Mortgagor and Agent agree in writing to other terms of
payment, such amounts shall be immediately due and payable and shall bear
interest from the date of disbursement, unless collection from Mortgagor of
interest at such rate would be contrary to applicable law, in which event such
amounts shall bear interest at the highest rate that may be collected from
Mortgagor under applicable law. Mortgagor hereby covenants and agrees that Agent
shall be subrogated to the lien of any mortgage or other lien discharged, in
whole or in part, by the Obligations. Nothing contained in this Section 8 shall
require Agent to incur any expense or take any action hereunder.
The procurement of insurance of the payment of taxes or other liens or
charges by Agent shall not be a waiver of the right of Agent or the Lenders to
accelerate the maturity of any of the Obligations secured by this Agreement.
Agent's receipt of any awards, proceeds or damages under the insurance or
condemnation provisions of the Credit Agreement or this Agreement shall not
operate to cure or waive any default in payment of sums secured by this
Agreement.
9. CONDEMNATION. Mortgagor shall promptly notify Agent of any action or
proceeding relating to any condemnation or other taking, whether direct or
indirect, of the Property, or part thereof, and Mortgagor shall appear in and
prosecute any such action or proceeding unless otherwise directed by Agent in
writing. Mortgagor authorizes Agent, at Agent's option, as attorney-in-fact for
Mortgagor, to commence, appear in and prosecute, after the occurrence of an
Event of Default, in Agent's or Mortgagor's name, any action or proceeding
relating to any condemnation or other taking of the Property, whether direct or
indirect, and to
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settle or compromise any claim in connection with such condemnation or other
taking. The proceeds of any award, payment or claim for damages, direct or
consequential, in connection with any condemnation or other taking, whether
direct or indirect, of the Property, or part thereof, or for conveyances in lieu
of condemnation, are hereby assigned to and shall be paid to Agent.
With the consent of Agent, which consent may be withheld in Agent's sole
discretion, Mortgagor may apply such awards, payments, proceeds or damages,
after the deduction of Agent's expenses incurred in the collection of such
amounts, to restoration or repair of the Property. Otherwise, such sums so
received shall be applied to payment of the Obligations. Mortgagor agrees to
execute such further evidence of assignment of any awards, proceeds, damages or
claims arising in connection with such condemnation or taking as Agent may
reasonably require.
10. ESTOPPEL CERTIFICATE. Mortgagor shall, within ten (10) days of a
written request from Agent, furnish Agent with a written statement, duly
acknowledged, setting forth the sums secured by this Agreement and any right of
set-off, counterclaim or other defense that exists against such sums and any
Obligations.
11. UNIFORM COMMERCIAL CODE AND FIXTURE FILING. This Agreement shall also
constitute a "fixture filing" under the Uniform Commercial Code, as adopted in
Ohio for the purpose of perfecting Agent's security interest in all of
Mortgagor's property now owned or hereafter acquired which is or becomes a
"fixture" to the Property under the Uniform Commercial Code, as in effect from
time to time in Ohio, with the names and addresses of the "debtor" and "secured
party" for such purpose being:
Debtor: ______________________
______________________
______________________
Secured Party: JPMorgan Chase Bank, as Agent
Xxx Xxxxx Xxxxxx, XX-0
Xxxxxxxxx, Xxx Xxxx 00000
12. LEASES OF THE PROPERTY. Mortgagor shall comply with and observe
Mortgagor's obligations as landlord or as tenant, as the case may be, under any
leases of the Property or any part thereof. Mortgagor shall furnish Agent with
executed copies of the leases now existing or hereafter made of all or any part
of the Property, and all future leases and amendments or modifications thereto
shall be subject to Agent's prior written approval. Unless otherwise directed by
Agent, all leases of the Property made after the date hereof shall specifically
provide that such leases are subordinate to this Agreement; that the tenant
attorns to Agent, such attornment to be effective upon Agent's acquisition of
title to the Property; that the tenant agrees to execute such further evidences
of attornment as Agent may from time to time request; and that the attornment of
the tenant shall not be terminated by foreclosure. Mortgagor shall not, without
Agent's written consent, execute, modify, surrender or terminate, either orally
or in writing, any lease hereafter made of all or any part of the Property,
permit an assignment or sublease of such
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a lease, or request or consent to the subordination of any lease of all or any
part of the Property to any lien subordinate to this Agreement, provided that
such leases are on commercially reasonable terms. If Mortgagor becomes aware
that any tenant proposes to do, or is doing, any act or thing that may give rise
to any right to set-off against rent, Mortgagor shall (a) take such steps as
shall be reasonably calculated to prevent the accrual of any right to a set-off
against rent, (b) notify Agent thereof and of the amount of said set-offs, and
(c) within twenty (20) days after such accrual, reimburse the tenant who shall
have acquired such right to set-off or take such other steps as shall
effectively discharge such set-off and as shall assure that rents thereafter due
shall continue to be payable without set-off or deduction.
13. REMEDIES CUMULATIVE. Each remedy provided in this Agreement is distinct
and cumulative to all other rights or remedies under this Agreement or the
Credit Agreement or afforded by law or in equity, and may be exercised
concurrently, independently, or successively, in any order whatsoever.
14. TRANSFERS OF THE PROPERTY; CHANGES IN CONTROL OR OWNERSHIP OF
MORTGAGOR. Except as expressly permitted pursuant to the Credit Agreement,
Mortgagor shall not (a) voluntary or involuntary sell, lease, exchange, assign,
convey, transfer or otherwise dispose of all or any portion of the Property (or
any interest therein), or all or any of the beneficial ownership interest in
Mortgagor, or (b) convey to any Person, other than Agent, a security interest in
the Property or any part thereof or voluntarily or involuntarily permit or
suffer the Property to be further encumbered.
15. CREDIT AGREEMENT PROVISIONS. Mortgagor agrees to comply with the
covenants and conditions of the Credit Agreement that is hereby incorporated by
reference in and made a part of this Agreement. All sums disbursed by Agent to
protect the security of this Agreement shall be treated as Related Expenses. All
such sums shall bear interest from the date of disbursement. In the event of any
conflict or inconsistency between this Agreement and the Credit Agreement, the
terms of the Credit Agreement shall control. As used herein, "Related Expenses"
shall mean any and all reasonable costs, liabilities and expenses (including,
without limitation, losses, damages, penalties, claims, actions, reasonable
attorneys' fees, legal expenses, judgments, suits and disbursements) (a)
incurred by Agent, or imposed upon or asserted against Agent or any Lender, in
any attempt by Agent and the Lenders to (i) obtain, preserve, perfect, or
enforce any security interest evidenced by this Agreement, the Credit Agreement,
any Credit Document, or any other document, instrument or agreement executed in
connection with any of the foregoing; (ii) obtain payment, performance or
observance of any and all of the Obligations; or (iii) maintain, insure, audit,
collect, preserve, repossess or dispose of any of the Property or any other
collateral securing the Obligations, including, without limitation, costs and
expenses for appraisals, assessments and audits of the Borrowers or any such
collateral; or (b) incidental or related to (a) above, including, without
limitation, interest thereupon from the date incurred, imposed or asserted until
paid.
16. NOTICE. Except as otherwise expressly provided herein, all notices and
other communications provided for hereunder shall be in writing (including
telegraphic, telex, facsimile transmission or cable communication) and mailed,
telegraphed, telexed, transmitted, cabled or delivered, if to Mortgagor, at
___________________, Attn: Vice President-Finance, if to any Lender, at its
address specified for such Lender on SCHEDULE 2.01 to the Credit
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Agreement, and if to Agent, at the JPMorgan Chase Office, as defined in the
Credit Agreement; or at such other address as shall be designated by any party
in a written notice to the other parties hereto. All such notices and
communications shall be mailed, telegraphed, telexed, telecopied, or cabled or
sent by overnight courier, and shall be effective when received.
17. SUCCESSORS AND ASSIGNS BOUND; AGENTS; CAPTIONS. The covenants and
agreements herein contained shall bind, and the rights hereunder shall inure to,
the respective successors and permitted assigns of Agent, the Lenders and
Mortgagor. In exercising any rights hereunder or taking any actions provided for
herein, Agent may act through its employees, agents or independent contractors
as authorized by Agent. The captions and headings of the Sections of this
Agreement are for convenience only and are not to be used to interpret or define
the provisions hereof.
18. GOVERNING LAW; SEVERABILITY. This Agreement shall be governed by the
laws of the State of Ohio, without regard to principles of conflicts of laws. In
the event that any provision of this Agreement conflicts with applicable law,
such conflict shall not affect other provisions of this Agreement that can be
given effect without the conflicting provisions, and to this end the provisions
of this Agreement are declared to be severable.
19. WAIVER OF MARSHALING. In the event of foreclosure of the lien of this
Agreement, the Property may be sold in one or more parcels or as an entirety as
Agent may elect.
Notwithstanding the existence of any other security interests in the
Property held by Agent, or by any other Person, Agent shall have the right to
determine the order in which any or all of the Property shall be subjected to
the remedies provided herein. Agent shall have the right to determine the order
in which any or all of the Obligations are satisfied from the proceeds realized
upon the exercise of the remedies provided herein. Mortgagor, any Person that
consents to this Agreement, and any Person that now or hereafter acquires a
security interest in the Property and that has actual or constructive notice
hereof, hereby waives any and all right to require the marshaling of assets in
connection with the exercise of any of the remedies permitted by applicable law
or provided herein.
20. ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; AGENT IN POSSESSION.
Mortgagor hereby absolutely and unconditionally assigns and transfers to Agent
all of the leases, rents and revenues of the Property, including those now due,
past due, or to become due by virtue of any lease or other agreement for the
occupancy or use of all or any part of the Property, regardless to whom the
rents and revenues of the Property are payable. Although this Agreement is a
present assignment, Agent shall not exercise any of the rights or powers herein
conferred upon it until an Event of Default shall have occurred. Mortgagor
hereby authorizes Agent or Agent's agents to collect the aforesaid rents and
revenues and hereby directs each tenant of the Property to pay such rents to
Agent or Agent's agents. Upon the occurrence of an Event of Default, and without
the necessity of Agent entering upon and taking and maintaining full control of
the Property in person, by agent or by a court appointed receiver, Agent shall
immediately be entitled to possession of all rents and revenues of the Property
as specified in this Section 20 as the same become due and payable (including
but not limited to rents then due and unpaid) and all such rents received by
Mortgagor shall immediately, upon delivery of such notice, be held by Mortgagor,
as trustee for the benefit of Agent only. This Section 20 may be supplemented by
a
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separate assignment of leases and rents agreement entered into by and between
Agent and Mortgagor, which instrument shall set forth more fully Agent's rights
with respect to the leases, rents and revenue of the Property.
21. ASSIGNMENT OF CONSTRUCTION RIGHTS. From time to time, as Agent deems
necessary to protect its interests, Mortgagor shall, upon request of Agent,
execute and deliver to Agent, in such form as Agent shall direct, assignments of
any and all rights or claims that relate to the construction of improvements on
the Property and which Mortgagor may have against any Person supplying or who
has supplied labor, materials or services in connection with construction of the
Property.
22. EVENT OF DEFAULT; ACCELERATION; REMEDIES. Each of the following shall
constitute an Event of Default hereunder, (a) if any Event of Default, as
defined in the Credit Agreement, occurs under the Credit Agreement, or (b) if
Mortgagor defaults in the performance or observance of any of the covenants or
agreements of Mortgagor contained in this Agreement . In addition to any other
right or remedy that Agent may now or hereafter have at law or in equity, upon
the occurrence of an Event of Default, Agent shall have the right and power (i)
to foreclose upon this Agreement and the lien hereof; (ii) to sell the Property
according to law at one or more sales as an entirety or in parcels, if
applicable, and at such time and place upon such terms and conditions and after
such notices thereof as may be required by law; (iii) to enter upon and take
possession of the Property; and (iv) apply for the appointment of a receiver,
trustee, liquidator or conservator of the Property, without notice and without
regard for the adequacy of the security for the Obligations and without regard
for the solvency of Mortgagor or the Borrowers or any other Person liable for
the payment of the Obligations, or any thereof. If all sums secured by this
Agreement become immediately due and payable in accordance with this Section,
Agent, at Agent's option, may foreclose this Agreement by judicial proceeding
and may invoke any other remedies permitted by applicable law or as provided
herein. Agent shall be entitled to collect all costs and expenses incurred in
pursuing such remedies, including, but not limited to, costs of documentary
evidence abstracts, title reports and attorneys' fees.
23. INDEMNIFICATION. Mortgagor shall protect, indemnify and save harmless
Agent and the Lenders from and against all liabilities and expenses (including,
without limitation, reasonable attorneys' fees and expenses, including those
incurred in connection with appellate, bankruptcy and post-judgment proceedings)
imposed upon or incurred by or asserted against Agent or any Lender, and not
caused by the gross negligence or intentional misconduct of Agent or such
Lender, by reason of (a) ownership of this Agreement, the Property or any
interest therein or receipt of any rents, (b) any accident, injury to or death
of persons or loss of or damage to property occurring in, on or about the
Property or any part thereof or on the adjoining sidewalks, curbs, adjacent
property or adjacent parking areas or streets, (c) any use, non-use or condition
in, on or about the Property, or any part thereof, or on the adjoining
sidewalks, curbs, adjacent property, parking areas or streets, (d) any failure
on the part of Mortgagor to perform or comply with any of the terms of this
Agreement, or (e) the performance of any labor or services or the furnishing of
any materials or other property in respect of the Property or any part thereof.
The obligations of Mortgagor under this Section 23 shall survive any termination
or satisfaction of this Agreement.
24. HAZARDOUS WASTE COVENANTS AND INDEMNIFICATION.
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(a) Mortgagor covenants and warrants that Mortgagor's use of the
Property shall at all times comply with and conform, in all material respects,
to all laws, statutes, ordinances, rules and regulations of any governmental,
quasi-governmental or regulatory authority now or hereafter in effect ("Laws")
which relate to the transportation, storage, placement, handling, treatment,
discharge, release, generation, production or disposal (collectively
"Treatment") of any waste, waste products, petroleum or petroleum based
products, radioactive materials, poly-chlorinated biphenyls, asbestos, hazardous
materials or substances of any kind, pollutants, contaminants and any substance
which is regulated by any law, statute, ordinance, rule or regulation
(collectively "Waste"). Mortgagor further covenants that it shall not engage in
or permit any Person to engage in any Treatment of any Waste on or that affects
the Property except for activities which comply with all Laws in all material
respects.
(b) Except as specifically disclosed to Agent in writing in any
schedule to the Credit Agreement, Mortgagor has no actual knowledge that the
Property is the subject of any Notice, as hereinafter defined, from any
governmental authority or Person.
(c) Promptly upon receipt of any Notice from any Person, Mortgagor
shall deliver to Agent a true, correct and complete copy of any written Notice
or a true, correct and complete report of any non-written Notice. Additionally,
Mortgagor shall notify Agent immediately after having knowledge or Notice of any
Waste in or affecting the Property. "Notice" shall mean any note, notice,
information, or report of any of the following:
(i) any suit, proceeding, investigation, order, consent
order, injunction, writ, award or action related to or affecting or
indicating the Treatment of any Waste in or affecting the Property;
(ii) any spill, contamination, discharge, leakage, release,
threatened release, or escape of any Waste in or affecting the Property,
whether sudden or gradual, accidental or anticipated, or of any other
nature ("Spill");
(iii) any dispute relating to Mortgagor's or any other
Person's Treatment of any Waste or any Spill in or affecting the Property;
(iv) any claims by or against any insurer related to or
arising out of any Waste or Spill in or affecting the Property;
(v) any recommendations or requirements of any governmental
or regulatory authority, insurer or board of underwriters relating to any
Treatment of Waste or a Spill in or affecting the Property;
(vi) any legal requirement or deficiency related to the
Treatment of Waste or any Spill in or affecting the Property; or
(vii) any tenant, licensee, concessionaire, manager, or
other Person occupying or using the Property or any part thereof which has
engaged in or engages in the Treatment of any Waste in or affecting the
Property in violation of applicable Laws.
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(d) In the event that (i) Mortgagor has caused, suffered or permitted,
directly or indirectly, any Spill in or affecting the Property during the term
of this Agreement, or (ii) any Spill of any Waste has occurred on the Property
during the term of this Agreement, then Mortgagor shall immediately take all of
the following actions:
(A) notify Agent, as provided herein;
(B) take all steps necessary or appropriate to clean up such
Spill and any contamination related to the Spill, all in accordance with
the requirements, rules or regulations of any local, state or federal
governmental or regulatory authority or agency having jurisdiction over the
Spill; provided that Mortgagor may contest any such requirement, rule or
regulation by appropriate proceedings diligently and in good faith, so long
as (1) Mortgagor provides Agent, at Mortgagor's cost, such sureties,
performance bonds and other assurances as Agent may from time to time
request in respect of such Spill and contamination and the cleanup thereof,
(2) any governmental or other action against Mortgagor and the Property is
effectively stayed during Mortgagor's efforts so to contest, and (3) in
Agent's determination, a delay in such clean-up will not result in or
increase any loss or liability to Agent;
(C) restore the Property, provided that such restoration
shall be no less than, but need not be more than, what is otherwise
required by applicable federal, state or local law or authorities;
(D) allow any local, state or federal governmental or
regulatory authority or agency having jurisdiction thereof to monitor and
inspect all cleanup and restoration related to such Spill; and
(E) at the written request of Agent, post a bond or obtain a
letter of credit for the benefit of Agent (drawn upon a company or bank
satisfactory to Agent) or deposit an amount of money in an escrow account
under Agent's name upon which bond, letter of credit or escrow Mortgagor
may draw, and which bond, letter of credit or escrow shall be in an amount
sufficient to meet all of Mortgagor's obligations under this Section 24;
and Agent shall have the unfettered right to draw against the bond, letter
of credit or escrow in its discretion in the event that Mortgagor is unable
or unwilling to meet its obligation under this Section 24 or, if Mortgagor
fails to post a bond or obtain a letter of credit or deposit such cash as
is required herein, then Agent, at Mortgagor's cost and expense, may, but
shall have no obligation to do so for the benefit of Mortgagor and do those
things that Mortgagor is required to do under clauses (B), (C) and (D) of
this subsection (d).
(e) Mortgagor hereby agrees that it shall indemnify, defend, save and
hold harmless Agent and the Lenders and their respective officers, directors
employees, agents, successors, assigns and affiliates (collectively,
"Indemnified Parties") against and from, and to reimburse the Indemnified
Parties with respect to, any and all damages, claims, liabilities, losses, costs
and expenses (including, without limitation, reasonable attorneys', engineers'
and consultants' fees and expenses, court costs, administrative costs, costs of
appeals and all clean up, administrative, fines, penalties and enforcement costs
of applicable governmental agencies)
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that are incurred by or asserted against the Indemnified Parties by reason or
arising out of: (i) the breach of any representation, warranty or undertaking of
Mortgagor under this Section 24, or (ii) the Treatment of any Waste by Mortgagor
or any tenant, licensee, concessionaire, manager, or other Person occupying or
using the Property, in or affecting the Property, or (iii) any Spill governed by
the terms of this Section 24.
(f) The obligations of Mortgagor under this Section 24 shall survive
any termination or satisfaction of this Agreement.
25. PRIORITY OF MORTGAGE LIEN. Agent, at Agent's option, is authorized and
empowered to do all things provided to be done by a mortgagee under Section
1311.14 of the Revised Code of Ohio, as in effect from time to time, for the
protection of Agent's interests in the Property.
26. ADJUSTMENTS TO MAXIMUM LIABILITY. Anything in this Agreement to the
contrary notwithstanding, in no event shall the amount of the Obligations
secured by this Agreement exceed the maximum amount that (after giving effect to
the incurring of the obligations hereunder and to any rights to contribution of
Mortgagor from other affiliates of the Borrowers) would not render the rights to
payment of Agent and the Lenders hereunder void, voidable or avoidable under any
applicable fraudulent transfer law.
[Remainder of page intentionally left blank]
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27. JURY TRIAL WAIVER. MORTGAGOR, AGENT AND THE LENDERS WAIVE ANY RIGHT TO
HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT,
TORT, OR OTHERWISE, AMONG THEM ARISING OUT OF, IN CONNECTION WITH, RELATED TO,
OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS
AGREEMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR
DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.
IN WITNESS WHEREOF, Mortgagor has executed this Agreement as of the day and
year first set forth above.
MORTGAGOR:
____________________________________
By: ________________________________
Name: ______________________________
Title: _____________________________
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STATE OF OHIO )
) SS:
COUNTY OF CUYAHOGA )
On this ____ day of October, 2002, before me, a Notary Public in and for
said County and State, personally appeared
__________________________________________________, the _______________________
of _______________________, a _____________ corporation, who acknowledged the
signing of the foregoing instrument on behalf of said corporation to be her/his
free act and deed and the free act and deed of said corporation for the uses and
purposes set forth therein.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal
at_____________, Ohio.
____________________________________
Notary Public
This instrument was prepared by:
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EXHIBIT A
LEGAL DESCRIPTION
15
EXHIBIT B
PERMITTED ENCUMBRANCES
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