EXHIBIT 10.35
NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, ENFORCEMENT OF
THIS MORTGAGE IS LIMITED TO A DEBT AMOUNT OF $59,500,000 UNDER CHAPTER
287 OF MINNESOTA STATUTES.
THIS IS A MORTGAGE AMENDMENT, AS DEFINED IN MINNESOTA STATUTES,
SECTION 287.01, SUBDIVISION 2, AND AS SUCH IT DOES NOT SECURE A NEW OR AN
INCREASED AMOUNT OF DEBT
AMENDED AND RESTATED MORTGAGE,
SECURITY AGREEMENT, ABSOLUTE ASSIGNMENT OF
LEASES AND RENTS AND FIXTURE FILING
MADE BY
GLIMCHER NORTHTOWN VENTURE, LLC
AS MORTGAGOR
to
KEYBANK NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT
AS MORTGAGEE
Dated as of: October 17, 2003
PREPARED BY AND UPON RECORDATION RETURN TO:
Xxxxxxxxxxxx Xxxx & Xxxxxxxxx, LLP
8000 Sears Tower
000 Xxxxx Xxxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxx Xxxxx, Esq.
Blaine, Minnesota
AMENDED AND RESTATED MORTGAGE,
SECURITY AGREEMENT, ABSOLUTE ASSIGNMENT OF LEASES
AND RENTS AND FIXTURE FILING
Project Common Known As
"Northtown Mall"
THIS AMENDED AND RESTATED MORTGAGE, SECURITY AGREEMENT, ABSOLUTE
ASSIGNMENT OF LEASES AND RENTS AND FIXTURE FILING (this "Mortgage") is made as
of October 17, 2003, by GLIMCHER NORTHTOWN VENTURE, LLC, a Delaware limited
liability company ("Mortgagor") whose address is 000 Xxxx Xxx Xxxxxx, Xxxxxxxx,
Xxxx 00000, and KEYBANK NATIONAL ASSOCIATION, as administrative agent for itself
and one or more Lenders (as defined in that certain Credit Agreement bearing the
date October 17, 2003 by and between Glimcher Properties Limited Partnership, a
Delaware limited partnership (the "Borrower"), such Lenders and KEYBANK NATIONAL
ASSOCIATION, as administrative agent, hereinafter the "Credit Agreement"),
(together with its successors and assigns, the "Mortgagee"), whose address is
000 Xxxxxx Xxxxxx, Xxxxxxxxx, Xxxx 00000.
This Mortgage amends and restated in their entirety those certain
documents as described, assigned and amended as follows:
1. Mortgage, Security Agreement, Absolute Assignment of Leases
and Rents and Fixture Filing made by Mortgagor in favor of
Bankers Trust Company, as Agent dated August 30, 2001, and
recorded August 31, 2001 with the Anoka County, Minnesota
Recorder as Document No. 1599541 ("Senior Mortgage");
2. Junior Mortgage, Security Agreement, Absolute Assignment of
Leases and Rents and Fixture Filing made by Mortgagor in favor
of Bankers Trust Company, as Agent dated August 30, 2001, and
recorded August 31, 2001 with the Anoka County, Minnesota
Recorder as Document No. 1599543 ("Junior Mortgage");
3. Assignment of Leases and Rents made by Mortgagor in favor of
Bankers Trust Company, as Agent dated August 30, 2001, and
recorded August 31, 2001 with the Anoka County, Minnesota
Recorder as Document No. 1599542 ("Senior Assignment"); and
4. Junior Assignment of Leases and Rents made by Mortgagor in
favor of Bankers Trust Company, as Agent dated August 30,
2001, and recorded August 31, 2001 with the Anoka County,
Minnesota Recorder as Document No. 1599544 ("Junior
Assignment").
which documents were assigned to KeyBank National Association, in its individual
capacity, by an Absolute Assignment of Note and Loan Documents dated as of
September 29, 2003 and recorded October __, 2003 with the Anoka County,
Minnesota Recorder as Document No. _________ and were further assigned to
KeyBank National Association, it its capacity as administrative agent under the
Credit Agreement, as Mortgagee, by an Absolute Assignment of Note and Loan
Documents of
Blaine, Minnesota
even date herewith and recorded October __, 2003 with the Anoka County,
Minnesota Recorder as Document No. _________, and were amended by that certain
First Amendment to Security Documents of even date herewith and recorded October
__, 2003 with the Anoka County, Minnesota Recorder as Document No. ________ made
by Mortgagor and Mortgagee which increased the aggregate amount of principal
secured by such documents, to Fifty Nine Million Five Hundred Fifty Thousand
Dollars ($59,500,000).
1. GRANT AND SECURED OBLIGATIONS.
1.1 Grant. Mortgagor has executed that certain Subsidiary Guaranty
of even date herewith in favor of Mortgagee for the purpose of securing payment
and performance of the obligations of the Borrower under the Credit Agreement
and Mortgagor hereby irrevocably and unconditionally grants, bargains, sells,
conveys, mortgages and warrants to Mortgagee, with power of sale and with right
of entry and possession, all estate, right, title and interest which Mortgagor
now has or may later acquire in and to the following property (all or any part
of such property, or any interest in all or any part of it, as the context may
require, the "Property"):
(a) The real property located in the County of Anoka,
State of Minnesota, as described in Exhibit A, together with all
existing and future easements and rights affording access to it (the
"Premises"); together with
(b) All buildings, structures and improvements now
located or later to be constructed on the Premises (the
"Improvements"); together with
(c) All existing and future appurtenances, privileges,
easements, franchises and tenements of the Premises, including all
minerals, oil, gas, other hydrocarbons and associated substances,
sulphur, nitrogen, carbon dioxide, helium and other commercially
valuable substances which may be in, under or produced from any part of
the Premises, all development rights and credits, air rights, water,
water rights (whether riparian, appropriative or otherwise, and whether
or not appurtenant) and water stock, and any Premises lying in the
streets, roads or avenues, open or proposed, in front of or adjoining
the Premises and Improvements; together with
(d) All existing and future leases, subleases,
subtenancies, licenses, occupancy agreements and concessions ("leases")
relating to the use and enjoyment of all or any part of the Premises
and Improvements, and any and all guaranties and other agreements
relating to or made in connection with any of such leases; together
with
(e) All real property and improvements on it, and all
appurtenances and other property and interests of any kind or
character, whether described in Exhibit A or not, which may be
reasonably necessary or desirable to promote the present and any
reasonable future beneficial use and enjoyment of the Premises and
Improvements; together with
(f) All goods, materials, supplies, chattels, furniture,
fixtures, equipment and machinery now or later to be attached to,
placed in or on, or used in connection with the use, enjoyment,
occupancy or operation of all or any part of the Premises and
Improvements, whether stored on the Premises or elsewhere, including
all pumping plants, engines, pipes,
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ditches and flumes, and also all gas, electric, cooking, heating,
cooling, air conditioning, lighting, refrigeration and plumbing
fixtures and equipment, all of which shall be considered to the fullest
extent of the law to be real property for purposes of this Mortgage and
any manufacturer's warranties with respect thereto; together with
(g) All building materials, equipment, work in process or
other personal property of any kind, whether stored on the Premises or
elsewhere, which have been or later will be acquired for the purpose of
being delivered to, incorporated into or installed in or about the
Premises or Improvements; together with
(h) All of Mortgagor's interest in and to all operating
accounts pertaining to the Property and the Loan funds, whether
disbursed or not; together with
(i) All rights to the payment of money, accounts,
accounts receivable, reserves, deferred payments, refunds, cost
savings, payments and deposits, whether now or later to be received
from third parties (including all xxxxxxx money sales deposits) or
deposited by Mortgagor with third parties (including all utility
deposits), contract rights, development and use rights, governmental
permits and licenses, applications, architectural and engineering
plans, specifications and drawings, as-built drawings, chattel paper,
instruments, documents, notes, drafts and letters of credit (other than
letters of credit in favor of Mortgagee), which arise from or relate to
construction on the Premises or to any business now or later to be
conducted on it, or to the Premises and Improvements generally and any
builder's or manufacturer's warranties with respect thereto; together
with
(j) All insurance policies pertaining to the Premises and
all proceeds, including all claims to and demands for them, of the
voluntary or involuntary conversion of any of the Premises,
Improvements or the other property described above into cash or
liquidated claims, including proceeds of all present and future fire,
hazard or casualty insurance policies and all condemnation awards or
payments now or later to be made by any public body or decree by any
court of competent jurisdiction for any taking or in connection with
any condemnation or eminent domain proceeding, and all causes of action
and their proceeds for any damage or injury to the Premises,
Improvements or the other property described above or any part of them,
or breach of warranty in connection with the construction of the
Improvements, including causes of action arising in tort, contract,
fraud or concealment of a material fact; together with
(k) All of Mortgagor's rights in and to all Rate
Management Transactions entered into with the Administrative Agent or
any of the Lenders in connection with the Credit Agreement;
(l) All books and records pertaining to any and all of
the property described above, including computer-readable memory and
any computer hardware or software necessary to access and process such
memory ("Books and Records"); together with
(m) All proceeds of, additions and accretions to,
substitutions and replacements for, and changes in any of the property
described above.
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Capitalized terms used above and elsewhere in this Mortgage without
definition have the meanings given them in the Credit Agreement.
1.2 Secured Obligations.
(a) Mortgagor makes the grant, conveyance, and mortgage
set forth in Section 1.1 above, and grants the security interest set
forth in Section 3 below for the purpose of securing the payment of all
obligations at any time of Mortgagor under that certain Subsidiary
Guaranty dated October 17, 2003, executed by the Mortgagor in favor of
the Mortgagee (the "Secured Obligations") in any order of priority that
Mortgagee may choose.
(b) Notwithstanding anything to the contrary herein, the
maximum principal indebtedness secured hereby is $59,500,000 (the
"Maximum Principal Amount"), plus amounts which may be advanced by
Mortgagee in protection of the Property (as hereinafter defined) or
this Mortgage. The amount of the Maximum Principal Amount may be
increased or decreased at any time by a written agreement between
Mortgagor and Mortgagee in recordable form, amending this Mortgage, an
executed copy of which shall be recorded in the office(s) in which this
Mortgage is recorded, and Mortgagor shall pay any increased mortgage
registry tax payable as a result thereof.
(c) All persons who may have or acquire an interest in
all or any part of the Property will be considered to have notice of,
and will be bound by, the terms of the Secured Obligations and each
other agreement or instrument made or entered into in connection with
each of the Secured Obligations. Such terms include any provisions in
the Note or the Credit Agreement which permit borrowing, repayment and
reborrowing, or which provide that the interest rate on one or more of
the Secured Obligations may vary from time to time.
2. ASSIGNMENT OF RENTS.
2.1 Assignment of Rents and Profits. As additional security for
the payment of the Secured Obligations and any amounts which Mortgagor is
obligated to pay Mortgagee pursuant to this Mortgage, Mortgagor hereby assigns
the rents and profits from the Property to Mortgagee (the "Assignment of
Rents"). Mortgagee may enforce the Assignment of Rents upon the occurrence of an
Event of Default, as defined in this Mortgage, without regard to waste, adequacy
of security or the solvency of the Mortgagor. To enforce the Assignment of
Rents, Mortgagee may, at its option, either:
(a) Apply to a Minnesota District Court for the Judicial
District in which all or any part of the Property are located for the
appointment of a receiver pursuant to Minnesota Statute Section 559.17.
The Mortgagee shall be entitled to the appointment of a receiver upon a
showing that an Event of Default has occurred under the terms of the
Mortgage and without regard to waste, adequacy of security or the
solvency of the Mortgagor. If the Court appoints a receiver, the
receiver shall have the right to manage, operate and lease (for terms
of any duration) the Property and shall collect the rents and profits
from the Property from the date of appointment to the date of a Court
Order discharging the receiver. The receiver shall apply the rents and
profits collected:
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(i) To pay the expenses listed in clauses (1),
(2) and (3) of Minn. Stat. Section 576.01, Subd. 2 in the
priority numbered;
(ii) To pay all expenses for normal maintenance
of the Mortgaged Premises in the manner provide din Section
576.01, subd. 2;
(iii) To pay Mortgagee for any amounts which
Mortgagor owes to Mortgagee pursuant to Section 5, 10 of this
Mortgage;
(iv) To pay the holder of any prior mortgage for
installments of principal and interest as they become due;
(v) To pay the holder of any other prior liens
or encumbrances as payments on such liens or encumbrances
become due;
(vi) If application of the rents and profits is
made before the occurrence of a Sheriff's sale foreclosing
this Mortgage, to pay Mortgagee for amounts due under the
Secured Obligations;
(vii) If application of the rents and profits is
made after the occurrence of a Sheriff's sale foreclosing this
Mortgage and Mortgagee is not entitled to obtain a deficiency
judgment under Minnesota Statues, Section 582.30, to the
holder of the Sheriff's Certificate of Sale as a credit
against the amount required to be paid to effect a redemption
of the Property from foreclosure of this Mortgage;
OR
If application of rents and profits is made after the
occurrence of a Sheriff's sale foreclosing this Mortgage and
the Mortgagee is entitled to obtain a deficiency judgment
pursuant to Minnesota Statutes, Section 582.30, first, to the
Mortgagee for the payment of any deficiency for which the
Mortgagee is entitled to seek a judgment (whether or not
Mortgagee has obtained a judgment) and second, to the holder
of the Sheriff's Certificate of Sale; as a credit against he
amount required to be paid to effect a redemption of the
Property from the foreclosure of this Mortgage;
(viii) If the application of rents and profits
pursuant to Section 2.1(a)(vi) and 2.1(a)(vii) above is
sufficient to pay all of the Secured Obligations or is
sufficient to pay all amounts necessary to redeem the Property
from the foreclosure of this Mortgage and the Mortgagor or
another party with a right to redeem actually redeems the
Property from the foreclosure of this Mortgage and obtains a
Certificate of Redemption, to the Mortgagor or, if applicable,
to the holder of a subordinate assignment of rents and
profits.
(b) File in the Office of the County Recorder, or in the
case of registered property, in the Office of the County Registrar of
Titles, a notice of the occurrence of an Event of Default in the terms
and conditions of this Mortgage and serve the notice of the occurrence
of an Event of Default upon the occupiers of the Property, and from and
after the date of filing and service through the date Mortgagee files
and services a notice that
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Mortgagor has cured all Events of Default, collect all rents and
profits from the occupiers of the Property, without regard to waste,
adequacy of security or solvency of the Mortgagor, and apply the rents
and profits collected in the manner provided for the application of
amounts which a receiver collects pursuant to Section 2.1(a) above.
Mortgagee's exercise of its rights under this Section 2.1(b) shall not
cause Mortgagee to be deemed a mortgagee in possession of the Property.
2.2 Mortgagee Not Responsible. Under no circumstances shall
Mortgagee have any duty to produce Rents from the Property. Regardless of
whether or not Mortgagee, in person or by agent, takes actual possession of the
Premises and Improvements, unless Mortgagee agrees in writing to the contrary,
Mortgagee is not and shall not be deemed to be:
(a) A "mortgagee in possession" for any purpose; or
(b) Responsible for performing any of the obligations of
the lessor under any lease; or
(c) Responsible for any waste committed by lessees or any
other parties, any dangerous or defective condition of the Property, or
any negligence in the management, upkeep, repair or control of the
Property, unless caused by the gross negligence, willful misconduct or
bad faith of Mortgagee; or
(d) Liable in any manner for the Property or the use,
occupancy, enjoyment or operation of all or any part of it.
2.3 Leasing. Mortgagor shall not accept any deposit or prepayment
of rents under the leases for any rental period exceeding one (1) month without
Mortgagee's prior written consent. Mortgagor shall not lease the Property or any
part of it except strictly in accordance with the Credit Agreement.
3. GRANT OF SECURITY INTEREST.
3.1 Security Agreement. The parties intend for this Mortgage to
create a lien on the Property, and an absolute assignment of the Rents, all in
favor of Mortgagee. The parties acknowledge that some of the Property and some
or all of the Rents may be determined under applicable law to be personal
property or fixtures. To the extent that any Property or Rents may be or be
determined to be personal property, Mortgagor as debtor hereby grants Mortgagee
as secured party a security interest in all such Property and Rents, to secure
payment and performance of the Secured Obligations. This Mortgage constitutes a
security agreement under the Uniform Commercial Code of the State in which the
Property is located, covering all such Property and Rents.
3.2 Financing Statements. Mortgagor hereby authorizes Mortgagee to
file one or more financing statements. In addition, Mortgagor shall execute such
other documents as Mortgagee may from time to time require to perfect or
continue the perfection of Mortgagee's security interest in any Property or
Rents. As provided in Section 5.10 below, Mortgagor shall pay all fees and costs
that Mortgagee may incur in filing such documents in public offices and in
obtaining such record
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searches as Mortgagee may reasonably require. In case Mortgagor fails to execute
any financing statements or other documents for the perfection or continuation
of any security interest, Mortgagor hereby appoints Mortgagee as its true and
lawful attorney-in-fact to execute any such documents on its behalf. If any
financing statement or other document is filed in the records normally
pertaining to personal property, that filing shall never be construed as in any
way derogating from or impairing this Mortgage or the rights or obligations of
the parties under it.
4. FIXTURE FILING.
The filing of this Mortgage shall constitute of filing of a financing
statement in the office wherein it is filed and a carbon, photographic or other
reproduction of this document may also be filed as a financing statement.
Name and Address: Glimcher Northtown Venture, LLC
of Debtor: c/o Glimcher Properties Limited Partnership
00 Xxxxx Xxxxx Xxxxxx
Xxxxxxxx, XX 00000
Name and Address of KeyBank National Association,
Secured Party: as Administrative Agent
000 Xxxxxx Xxxxxx
Xxxxxxxxx, XX 00000
Description of the types
(or items of property
covered by this
financing statement): All building materials, equipment, fixtures,
furniture and furnishings, (including, but not
limited to all engines, boilers, elevators,
machinery, heating apparatus, electrical equipment,
air conditioning equipment, water and gas fixtures,
plumbing, communication devices, stoves,
refrigerators, carpeting, shades, awnings, screens,
storm sashes, and blinds) now or hereafter located or
intended to be located on the Property of whatsoever
type or nature whether now owned or hereafter
acquired by Mortgagor, including all replacements,
repairs and substitutions thereto and proceeds
thereof.
Description of real
Estate tow which all or
Part of the collateral
is attached or upon
Which it is located: See Exhibit "A" attached hereto.
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5. RIGHTS AND DUTIES OF THE PARTIES.
5.1 Representations and Warranties. Mortgagor represents and
warrants that:
(a) Mortgagor lawfully possesses and holds fee simple
title to all of the Premises and Improvements;
(b) Mortgagor has or will have good title to all Property
other than the Premises and Improvements;
(c) Mortgagor has the full and unlimited power, right and
authority to encumber the Property and assign the Rents;
(d) This Mortgage creates a first and prior lien on the
Property;
(e) The Property includes all property and rights which
may be reasonably necessary or desirable to promote the present and any
reasonable future beneficial use and enjoyment of the Premises and
Improvements;
(f) Mortgagor owns any Property which is personal
property free and clear of any security agreements, reservations of
title or conditional sales contracts, and there is no financing
statement affecting such personal property on file in any public
office; and
(g) Mortgagor's place of business, or its chief executive
office if it has more than one place of business, is located at the
address specified below.
5.2 Taxes, and Assessments. Mortgagor shall, prior to delinquency,
pay or cause to be paid each installment of all taxes and special assessments of
every kind, now or hereafter levied against the Property or any part thereof,
without notice or demand, and shall provide Mortgagee with evidence of the
payment of same. Mortgagor shall pay all taxes and assessments which may be
levied upon Mortgagee's or the Lenders' interest herein or upon this Mortgage or
the debt secured hereby (excluding any income taxes or similar charges imposed
upon Mortgagee or the Lenders), without regard to any law that may be enacted
imposing payment of the whole or any part thereof upon the Mortgagee or any
Lender. Notwithstanding anything contained in this Section to the contrary,
Mortgagor shall have the right to pay or cause to be paid any such tax or
special assessment under protest or to otherwise contest any such tax or special
assessment but only if (i) such contest has the effect of preventing the
collection of such tax or special assessment so contested and also prevent the
sale or forfeiture of the Property or any part thereof or any interest therein,
(ii) Mortgagor promptly notifies Mortgagee in writing of its intent to contest
such tax or special assessment, and (iii) if so requested in writing by
Mortgagee, Mortgagor has deposited security in form and amount reasonably
satisfactory to Mortgagee, and increases the amount of such security so
deposited promptly after Mortgagee's request therefor. Mortgagor shall prosecute
or cause the prosecution of all such contest actions in good faith and with due
diligence.
5.3 Performance of Secured Obligations. Mortgagor shall promptly
pay and perform each Secured Obligation in accordance with its terms.
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5.4 Liens, Charges and Encumbrances. Mortgagor shall immediately
discharge any lien on the Property which Mortgagee has not consented to in
writing in accordance with the terms of Section 6.16 of the Credit Agreement.
5.5 Damages, Restoration, and Insurance Proceeds. As long as no
Event of Default has occurred and is then continuing, all insurance proceeds for
losses at the Property of less than $500,000.00 shall be adjusted with and
payable to the Mortgagor. In case of loss, Mortgagee shall have the right (but
not the obligation) to participate in and reasonably approve the settlement of
any insurance claim in excess of $500,000.00 and all claims thereafter, and
Mortgagee is at all times authorized to collect and receive any insurance money
for those claims which Mortgagee is entitled to approve the settlement of
hereunder however, notwithstanding the forgoing, if the Property is damaged and
the Borrower elects to release the Property from the Collateral Pool in
accordance with the terms of Section 2.7(c) of the Credit Agreement, upon such
release, all insurance proceeds for such damage to the Property shall be payable
to the Mortgagor.
At the election of Mortgagee, such insurance proceeds may be applied to
reduce the outstanding balance of the indebtedness under the Credit Agreement or
to pay for costs of repair and restoration of the Property; provided, however,
that so long as no Event of Default has occurred and is then continuing,
Mortgagee shall make such insurance proceeds available to pay for such costs of
repair and restoration. If Mortgagee is entitled to and does elect to apply
insurance proceeds in payment or reduction of the indebtedness secured hereby,
then Mortgagee shall reduce the then outstanding balance of the Advances by the
amount of the insurance proceeds received and so applied by Mortgagee. In the
event that Mortgagee does not elect to apply the insurance proceeds to the
indebtedness secured hereby as set forth above, such insurance proceeds shall be
used to reimburse Mortgagor for the cost of rebuilding or restoring the
Premises. The Premises shall be so restored or rebuilt as to be substantially
the same quality and character as the Premises were prior to such damage or
destruction in accordance with the original plans and specifications or to such
other condition as Mortgagee shall reasonably approve in writing.
If Mortgagee elects to make the proceeds available for repair and
restoration, any request by Mortgagor for a disbursement by Mortgagee of fire or
casualty insurance proceeds and funds deposited by Mortgagor with Mortgagee
pursuant to this Section 5.5 shall be treated by Mortgagee as if such request
were for an Advance under the Credit Agreement, and the disbursement thereof
shall be conditioned upon the Borrower's compliance with and satisfaction of the
same conditions precedent as would be applicable under the Credit Agreement for
such an Advance, and during any such period that funds are available to the
Borrower for application to restore the Property, the amount of the Borrowing
Base attributable to the Property shall be determined in accordance with the
terms of the Credit Agreement. Additionally, such disbursement shall also be
conditioned upon Borrower's providing to Administrative Agent: updated title
insurance, satisfactory evidence, as reasonably determined by Administrative
Agent, that the Premises shall be so restored or rebuilt as to be of at least
equal value and quality and substantially the same character as the Premises
were prior to such damage or destruction in accordance with the original plans
and specifications or to such other condition as Administrative Agent shall
reasonably approve in writing, satisfactory evidence of the estimated cost of
completion thereof and with such architect's certificates, waivers of lien,
contractors' sworn statements and other evidence of cost and of payments as
Administrative Agent may reasonably require and approve. The undisbursed balance
of insurance proceeds shall at
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all times be sufficient to pay for the cost of completion of the work free and
clear of liens and if such proceeds are insufficient, Mortgagor shall deposit
the amount of such deficiency with Mortgagee prior to the disbursement by
Mortgagee of (i) any insurance proceeds or (ii) any additional Advances under
the Credit Agreement for such purpose.
5.6 Condemnation Proceeds. Mortgagor hereby assigns, transfers and
sets over unto Mortgagee its entire interest in the proceeds (the "Condemnation
Proceeds") of any award or any claim for damages for any of the Property taken
or damaged under the power of eminent domain or by condemnation or any
transaction in lieu of condemnation ("Condemnation"), unless, notwithstanding
the forgoing, (i) such taking, damage or condemnation does not cause a material
diminution in the value of the Premises or (ii) Mortgagor elects to release the
Property in accordance with the terms of Section 2.7(c) of the Credit Agreement,
in which case, upon such release, all Condemnation Proceeds for damages to the
Property shall be payable to the Mortgagor. Mortgagee shall make available to
Mortgagor the Condemnation Proceeds for the restoration of the Premises if
Mortgagor satisfies all of the conditions set forth in this Section 5.6 hereof
for disbursement of insurance proceeds. In all other cases Mortgagee shall have
the right, at its option, to apply the Condemnation Proceeds upon or in
reduction of the indebtedness secured hereby, whether due or not. If Mortgagee
is entitled to and does elect to apply Condemnation Proceeds upon or in
reduction of the indebtedness secured hereby, then Mortgagee shall reduce the
then outstanding balance of the Advances under the Credit Agreement by the
amount of the Condemnation Proceeds received and so applied by Mortgagee and the
Borrowing Base reduced. If the Condemnation Proceeds are required to be used as
aforesaid to reimburse Mortgagor for the cost of rebuilding or restoring
buildings or improvements on the Property, or if Mortgagee elects that the
Condemnation Proceeds be so used, and the buildings and other improvements shall
be rebuilt or restored, the Condemnation Proceeds shall be paid out in the same
manner as is provided in this Section 5.6 hereof for the payment of insurance
proceeds toward the cost of rebuilding or restoration of such buildings and
other improvements. Any surplus which may remain out of the Condemnation
Proceeds after payment of such cost of rebuilding or restoration shall, at the
option of Mortgagee, be applied on account of the indebtedness secured hereby or
be paid to any other party entitled thereto.
5.7 Maintenance and Preservation of Property.
(a) Mortgagor shall insure the Property as required by
Schedule 11 of the Credit Agreement and keep the Property in good
condition and repair.
(b) Except as required by the terms of any lease approved
by Administrative Agent, Mortgagor shall not remove or demolish the
Property or any material part of it in any way, or materially alter,
restore or add to the Property, or initiate or allow any material
change or variance in any zoning or other Premises use classification
which adversely affects the Property or any material part of it, except
with Mortgagee's express prior written consent in each instance; the
term "materially" or "material" as used in this Section 5.7(b) shall
mean having a monetary effect in an amount greater than (i) $500,000
with respect to any Community Center and (ii) $1,000,000 with respect
to any Regional Mall.
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(c) Mortgagor shall not commit or allow any act upon or
use of the Property which would violate: (i) any applicable Laws or
order of any Governmental Authority, whether now existing or later to
be enacted and whether foreseen or unforeseen; or (ii) any public or
private covenant, condition, restriction or equitable servitude
affecting the Property. Mortgagor shall not bring or keep any article
on the Property or cause or allow any condition to exist on it, if that
could invalidate or would be prohibited by any insurance coverage
required to be maintained by Mortgagor on the Property or any part of
it under the Credit Agreement.
(d) Mortgagor shall not commit or allow waste of the
Property, including those acts or omissions characterized under the
Credit Agreement as waste which arises out of Materials of
Environmental Concern.
(e) Mortgagor shall perform all other acts which from the
character or use of the Property may be reasonably necessary to
maintain and preserve its value.
5.8 Releases, Extensions, Modifications and Additional Security.
From time to time, Mortgagee may perform any of the following acts without
incurring any liability or giving notice to any person:
(a) Release any person liable for payment of any Secured
Obligation;
(b) Extend the time for payment, or otherwise alter the
terms of payment, of any Secured Obligation;
(c) Accept additional real or personal property of any
kind as security for any Secured Obligation, whether evidenced by deeds
of trust, mortgages, security agreements or any other instruments of
security;
(d) Alter, substitute or release any property securing
the Secured Obligations;
(e) Consent to the making of any plat or map of the
Property or any part of it;
(f) Join in granting any easement or creating any
restriction affecting the Property; or
(g) Join in any subordination or other agreement
affecting this Mortgage or the lien of it; or
(h) Release the Property or any part of it.
5.9 Release. If (a) Mortgagor shall fully pay all principal and
interest on the Notes, and all other indebtedness secured hereby and comply with
all of the other terms and provisions hereof to be performed and complied with
by Mortgagor, and terminate the obligations of the Lenders to make additional
advances under the Credit Agreement; or (b) Mortgagor shall comply with the
terms and conditions as set forth in Section 2.7(c) of Credit Agreement for
release of this Mortgage, Mortgagee, upon written request of Mortgagor stating
that the requirements of either clause (a) or clause (b) above have been
satisfied, shall release this Mortgage and the lien thereof by proper
Blaine, Minnesota
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instrument upon payment and discharge of the amounts required under the Credit
Agreement and payment of any filing fee in connection with such release.
Mortgagor shall pay any costs of preparation and recordation of such release.
5.10 Compensation, Exculpation, Indemnification.
(a) Mortgagor agrees to pay fees required by and pursuant
to the Credit Agreement, for any services that Mortgagee may render in
connection with this Mortgage, including Mortgagee's providing a
statement of the Secured Obligations or providing the release pursuant
to Section 5.9 above. Mortgagor shall also pay or reimburse all of
Mortgagee's costs and expenses which may be incurred in rendering any
such services. Mortgagor further agrees to pay or reimburse Mortgagee
for all costs, expenses and other advances which may be incurred or
made by Mortgagee in any efforts to enforce any terms of this Mortgage,
including any rights or remedies afforded to Mortgagee under Section
6.4, whether any lawsuit is filed or not, or in defending any action or
proceeding arising under or relating to this Mortgage, including
attorneys' fees and other legal costs, costs of any Foreclosure Sale
(as defined in Subsection 6.4(i) below) and any cost of evidence of
title. If Mortgagee chooses to dispose of Property through more than
one Foreclosure Sale, Mortgagor shall pay all costs, expenses or other
advances that may be incurred or made by Mortgagee in each of such
Foreclosure Sales. In any suit to foreclose the lien hereof or enforce
any other remedy of Mortgagee under this Mortgage or the Note, there
shall be allowed and included as additional indebtedness in the decree
for sale or other judgment or decree all expenditures and expenses
which may be paid or incurred by or on behalf of Mortgagee for
reasonable attorneys' costs and fees (including the costs and fees of
paralegals), survey charges, appraiser's fees, inspecting engineer's
and/or architect's fees, fees for environmental studies and assessments
and all additional expenses incurred by Mortgagee with respect to
environmental matters, outlays for documentary and expert evidence,
stenographers' charges, publication costs, and costs (which may be
estimated as to items to be expended after entry of the decree) of
procuring all such abstracts of title, title searches and examinations,
title insurance policies, and similar data and assurances with respect
to title as Mortgagee may deem reasonably necessary either to prosecute
such suit or to evidence to bidders at any sale which may be had
pursuant to such decree the true condition of the title to, the value
of or the environmental condition of the Property. All expenditures and
expenses of the nature in this Subsection mentioned, and such expenses
and fees as may be incurred in the protection of the Property and
maintenance of the lien of this Mortgage, including the fees of any
attorney (including the costs and fees of paralegals) employed by
Mortgagee in any litigation or proceeding affecting this Mortgage, the
Note or the Property, including probate and bankruptcy proceedings, or
in preparation for the commencement or defense of any proceeding or
threatened suit or proceeding, shall be immediately due and payable by
Mortgagor, with interest thereon at the Default Rate and shall be
secured by this Mortgage.
(b) Mortgagee shall not be directly or indirectly liable
to Mortgagor or any other person as a consequence of any of the
following:
(i) Mortgagee's exercise of or failure to
exercise any rights, remedies or powers granted to Mortgagee
in this Mortgage;
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(ii) Mortgagee's failure or refusal to perform or
discharge any obligation or liability of Mortgagor under any
agreement related to the Property or under this Mortgage; or
(iii) Any loss sustained by Mortgagor or any third
party resulting from Mortgagee's failure to lease the
Property, or from any other act or omission of Mortgagee in
managing the Property, after an Event of Default, unless the
loss is caused by the willful misconduct, gross negligence, or
bad faith of Mortgagee.
Mortgagor hereby expressly waives and releases all liability of the
types described above, and agrees that no such liability shall be
asserted against or imposed upon Mortgagee.
(c) Mortgagor agrees to indemnify Mortgagee against and
hold it harmless from all losses, damages, liabilities, claims, causes
of action, judgments, court costs, attorneys' fees and other legal
expenses, cost of evidence of title, cost of evidence of value, and
other costs and expenses which it may suffer or incur, unless caused by
the gross negligence, willful misconduct or bad faith of the Mortgagee:
(i) In performing any act required or permitted
by this Mortgage or any of the other Loan Documents or by law;
(ii) Because of any failure of Mortgagor to
perform any of its obligations; or
(iii) Because of any alleged obligation of or
undertaking by Mortgagee to perform or discharge any of the
representations, warranties, conditions, covenants or other
obligations in any document relating to the Property other
than the Loan Documents.
This agreement by Mortgagor to indemnify Mortgagee shall survive the
release and cancellation of any or all of the Secured Obligations and
the full or partial release of this Mortgage.
(d) Mortgagor shall pay all obligations to pay money
arising under this Section 5.9 immediately upon demand by Mortgagee.
Each such obligation shall be added to, and considered to be part of,
the principal of the Note, and shall bear interest from the date the
obligation arises at the Default Rate.
5.11 Defense and Notice of Claims and Actions. At Mortgagor's sole
expense, Mortgagor shall protect, preserve and defend the Property and title to
and right of possession of the Property, and the security of this Mortgage and
the rights and powers of Mortgagee created under it, against all adverse claims.
Mortgagor shall give Mortgagee prompt notice in writing if any claim is asserted
which does or could affect any such matters, or if any action or proceeding is
commenced which alleges or relates to any such claim.
5.12 Subrogation. Mortgagee shall be subrogated to the liens of all
encumbrances, whether released of record or not, which are discharged in whole
or in part by Mortgagee in accordance with this Mortgage or with the proceeds of
any loan secured by this Mortgage.
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5.13 Site Visits, Observation and Testing. Mortgagee and its agents
and representatives shall have the right at any reasonable time to enter and
visit the Property for the purpose of performing appraisals, observing the
Property, and conducting non-invasive tests (unless Mortgagee has a good faith
reason to believe that the taking and removing soil or groundwater samples is
required, and in such case, conducting such tests) on any part of the Property.
Mortgagee has no duty, however, to visit or observe the Property or to conduct
tests, and no site visit, observation or testing by Mortgagee, its agents or
representatives shall impose any liability on any of Mortgagee, its agents or
representatives. In no event shall any site visit, observation or testing by
Mortgagee, its agents or representatives be a representation that Materials of
Environmental Concern are or are not present in, on or under the Property, or
that there has been or shall be compliance with any law, regulation or ordinance
pertaining to Materials of Environmental Concern or any other applicable
governmental law. Neither Mortgagor nor any other party is entitled to rely on
any site visit, observation or testing by any of Mortgagee, its agents or
representatives. Neither Mortgagee, its agents or representatives owe any duty
of care to protect Mortgagor or any other party against, or to inform Mortgagor
or any other party of, any Materials of Environmental Concern or any other
adverse condition affecting the Property. Mortgagee shall give Mortgagor
reasonable notice before entering the Property. Mortgagee shall make reasonable
efforts to avoid interfering with Mortgagor's use of the Property in exercising
any rights provided in this Section 5.13. Notwithstanding the foregoing, all
rights granted to Mortgagee under this Section 5.13 are subject to all rights of
tenants to the Property.
5.14 Notice of Change. Mortgagor shall give Mortgagee prior written
notice of any change in: (a) the location of its place of business or its chief
executive office if it has more than one place of business; (b) the location of
any of the Property, including the Books and Records; and (c) Mortgagor's name
or business structure. Unless otherwise approved by Mortgagee in writing, all
Property that consists of personal property (other than the Books and Records)
will be located on the Premises and all Books and Records will be located at
Mortgagor's place of business or chief executive office if Mortgagor has more
than one place of business.
6. TRANSFERS, DEFAULT AND REMEDIES.
6.1 Transfers. Mortgagor acknowledges that Mortgagee is making one
or more advances under the Credit Agreement in reliance on the expertise, skill
and experience of Mortgagor; thus, the Secured Obligations include material
elements similar in nature to a personal service contract. In consideration of
Mortgagee's reliance, Mortgagor agrees that Mortgagor shall not make any
transfer of the Property or transfer of its interests therein, except for leases
in the ordinary course (a "Transfer"), unless the Transfer is preceded by
Mortgagee's express written consent to the particular transaction and
transferee. Mortgagee may withhold such consent in its sole discretion.
6.2 Events of Default. Mortgagor will be in default under this
Mortgage upon the occurrence of any one or more of the following events (some or
all collectively, "Events of Default;" any one singly, an "Event of Default"):
(a) If a default shall occur with respect to covenants,
agreements and obligations of Mortgagor under this Mortgage involving
the payment of money (other than a default in
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the payment of principal when due as provided in Section 7.1 of the
Credit Agreement) and shall continue for a period of five (5) business
days after the due date thereof; or
(b) If there is a failure to perform or observe any of
the other covenants, agreements and conditions contained in this
Mortgage in accordance with the terms hereof, and such default
continues unremedied for a period of thirty (30) days after written
notice from Mortgagee to defaulting Mortgagor of the occurrence
thereof; or
(c) An "Event of Default" occurs under the Credit
Agreement or any other Loan Document.
6.3 Remedies. At any time after an Event of Default, Mortgagee
shall be entitled to invoke any and all of the rights and remedies described
below, in addition to all other rights and remedies available to Mortgagee at
law or in equity. All of such rights and remedies shall be cumulative, and the
exercise of any one or more of them shall not constitute an election of
remedies.
(a) Acceleration. Upon the occurrence and continuation of
any Event of Default above under subsections 6.2 (a) or 6.2 (b) above,
the Property shall no longer be eligible to be included in the
calculation of the Borrowing Base unless the Required Lenders consent
to its continued inclusion. Upon the occurrence of an Event of Default
under subsection 6.2 (c) above, or if upon removal of the Property from
the Borrowing Base, the Borrower does not reduce the outstanding
balance of the Loans to be less than or equal to the recomputed
Borrowing Base within the time period allowed under Section 2.7(b) of
the Credit Agreement, then the whole of said principal sum hereby
secured shall, at once either automatically or at the option of
Mortgagee as described in Section 8.1 of the Credit Agreement, become
immediately due and payable, together with accrued interest thereon,
without any presentment, demand, protest or notice of any kind to
Mortgagor.
(b) Receiver. Mortgagee shall, as a matter of right,
without notice and without giving bond to Mortgagor or anyone claiming
by, under or through Mortgagor, and without regard for the solvency or
insolvency of Mortgagor or the then value of the Property, to the
extent permitted by applicable law, be entitled to have a receiver
appointed for all or any part of the Property and the Rents, and the
proceeds, issues and profits thereof, with the rights and powers
referenced below and such other rights and powers as the court making
such appointment shall confer, and Mortgagor hereby consents to the
appointment of such receiver and shall not oppose any such appointment.
Such receiver shall have all powers and duties prescribed by applicable
law, all other powers which are necessary or usual in such cases for
the protection, possession, control, management and operation of the
Property, and such rights and powers as Mortgagee would have, upon
entering and taking possession of the Property under subsection (c)
below.
(c) Entry. Mortgagee, in person, by agent or by
court-appointed receiver, may enter, take possession of, manage and
operate all or any part of the Property, and may also do any and all
other things in connection with those actions that Mortgagee may in its
sole discretion consider necessary and appropriate to protect the
security of this Mortgage. Such other things may include: taking and
possessing all of Mortgagor's or the then owner's Books and Records;
entering into, enforcing, modifying or canceling leases on such terms
Blaine, Minnesota
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and conditions as Mortgagee may consider proper; obtaining and evicting
tenants; fixing or modifying Rents; collecting and receiving any
payment of money owing to Mortgagee; completing any unfinished
construction; and/or contracting for and making repairs and
alterations. If Mortgagee so requests, Mortgagor shall assemble all of
the Property that has been removed from the Premises and make all of it
available to Mortgagee at the site of the Premises. Mortgagor hereby
irrevocably constitutes and appoints Mortgagee as Mortgagor's
attorney-in-fact to perform such acts and execute such documents as
Mortgagee in its sole discretion may consider to be appropriate in
connection with taking these measures, including endorsement of
Mortgagor's name on any instruments.
(d) Cure; Protection of Security. Mortgagee may cure any
breach or default of Mortgagor, and if it chooses to do so in
connection with any such cure, Mortgagee may also enter the Property
and/or do any and all other things which it may in its sole discretion
consider necessary and appropriate to protect the security of this
Mortgage, including, without limitation, completing construction of the
improvements at the Property contemplated by the Credit Agreement. Such
other things may include: appearing in and/or defending any action or
proceeding which purports to affect the security of, or the rights or
powers of Mortgagee under, this Mortgage; paying, purchasing,
contesting or compromising any encumbrance, charge, lien or claim of
lien which in Mortgagee's sole judgment is or may be senior in priority
to this Mortgage, such judgment of Mortgagee or to be conclusive as
among the parties to this Mortgage; obtaining insurance and/or paying
any premiums or charges for insurance required to be carried under the
Credit Agreement; otherwise caring for and protecting any and all of
the Property; and/or employing counsel, accountants, contractors and
other appropriate persons to assist Mortgagee. Mortgagee may take any
of the actions permitted under this Subsection 6.3(d) either with or
without giving notice to any person. Any amounts expended by Mortgagee
under this Subsection 6.3(d) shall be secured by this Mortgage.
(e) Uniform Commercial Code Remedies. Mortgagee may
exercise any or all of the remedies granted to a secured party under
the Uniform Commercial Code in the State in which the Property is
located.
(f) Foreclosure by Advertisement. Mortgagee may foreclose
the lien of this Mortgage by advertisement pursuant to the procedures
set forth in Minnesota Statutes Chapters 580 and 582. Mortgagor hereby
grants Mortgagee the statutory power of sale, as described in Minnesota
Statues Section 507.15, subd. 5, to foreclose the lien of this mortgage
by advertisement and to the extent allowed by law, commence a District
Court action to obtain a judgment for any deficiency.
(g) Foreclosure by Action. Mortgagee may foreclose the
lien of this Mortgage by action pursuant to Minnesota Statutes,
Chapters 581 and 582 and obtain a judgment for any deficiency to the
full extent permitted under Minnesota Statutes, Section 582.30.
(h) Assignment of Rents. Mortgagee may enforce the
Assignment of Rents set forth in Section 2.1 of this Mortgage.
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(i) Other Remedies. Mortgagee may exercise all rights and
remedies contained in any other instrument, document, agreement or
other writing heretofore, concurrently or in the future executed by
Mortgagor or any other person or entity in favor of Mortgagee in
connection with the Secured Obligations or any part thereof, without
prejudice to the right of Mortgagee thereafter to enforce any
appropriate remedy against Mortgagor. Mortgagee shall have the right to
pursue all remedies afforded to a mortgagee under applicable law, and
shall have the benefit of all of the provisions of such applicable law,
including all amendments thereto which may become effective from time
to time after the date hereof.
(j) Sale of Personal Property. Mortgagee shall have the
discretionary right to cause some or all of the Property, which
constitutes personal property, to be sold or otherwise disposed of in
any combination and in any manner permitted by applicable law.
(i) For purposes of this power of sale,
Mortgagee may elect to treat as personal property any Property
which is intangible or which can be severed from the Premises
or Improvements without causing structural damage. If it
chooses to do so, Mortgagee may dispose of any personal
property, in any manner permitted by Article 9 of the Uniform
Commercial Code of the State in which the Property is located,
including any public or private sale, or in any manner
permitted by any other applicable law.
(ii) In connection with any sale or other
disposition of such Property, Mortgagor agrees that the
following procedures constitute a commercially reasonable
sale: Mortgagee shall mail written notice of the sale to
Mortgagor not later than thirty (30) days prior to such sale.
Mortgagee will publish notice of the sale in a local daily
newspaper of general circulation. Upon receipt of any written
request, Mortgagee will make the Property available to any
bona fide prospective purchaser for inspection during
reasonable business hours. Notwithstanding, Mortgagee shall be
under no obligation to consummate a sale if, in its judgment,
none of the offers received by it equals the fair value of the
Property offered for sale. The foregoing procedures do not
constitute the only procedures that may be commercially
reasonable.
MORTGAGOR HEREBY: EXPRESSLY CONSENTS TO THE FORECLOSURE AND SALE OF THE PROPERTY
BY ACTION PURSUANT TO MINNESOTA STATUTES CHAPTER 581 OR, AT THE OPTION OF
MORTGAGEE, BY ADVERTISEMENT PURSUANT TO MINNESOTA STATUTES CHAPTER 580, WHICH
PROVIDES FOR SALE AFTER SERVICE OF NOTICE THEREOF UPON THE OCCUPANT OF THE
PROPERTY AND PUBLICATION OF SAID NOTICE FOR SIX WEEKS IN THE COUNTY IN MINNESOTA
WHERE THE PROPERTY IS SITUATED; ACKNOWLEDGES THAT SERVICE NEED NOT BE MADE UPON
MORTGAGOR PERSONALLY (UNLESS MORTGAGOR IS AN OCCUPANT) AND THAT NO HEARING OF
ANY TYPE IS REQUIRED IN CONNECTION WITH THE SALE; AND EXCEPT AS MAY BE PROVIDED
INS AID STATUTES, EXPRESSLY WAIVES ANY AND ALL RIGHT TO PRIOR NOTICE OF SALE OF
THE PROPERTY AND ANY AND ALL RIGHTS TO A PRIOR HEARING OF ANY TYPE IN CONNECTION
WITH THE SALE OF THE PROPERTY.
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6.4 Credit Bids. At any Foreclosure Sale, any person, including
Mortgagor or Mortgagee, may bid for and acquire the Property or any part of it
to the extent permitted by then applicable law. Instead of paying cash for such
property, Mortgagee may settle for the purchase price by crediting the sales
price of the property against the following obligations:
(a) First, the portion of the Secured Obligations
attributable to the expenses of sale, costs of any action and any other
sums for which Mortgagor is obligated to pay or reimburse Mortgagee
under Section 5.10 of this Mortgage; and
(b) Second, all other Secured Obligations in any order
and proportions as Mortgagee in its sole discretion may choose.
7. MISCELLANEOUS PROVISIONS.
7.1 Additional Provisions. The Loan Documents fully state all of
the terms and conditions of the parties' agreement regarding the matters
mentioned in or incidental to this Mortgage. The Loan Documents also grant
further rights to Mortgagee and contain further agreements and affirmative and
negative covenants by Mortgagor which apply to this Mortgage and to the
Property.
7.2 No Waiver or Cure.
(a) Each waiver by Mortgagee must be in writing, and no
waiver shall be construed as a continuing waiver. No waiver shall be
implied from any delay or failure by Mortgagee to take action on
account of any default of Mortgagor. Consent by Mortgagee to any act or
omission by Mortgagor shall not be construed as a consent to any other
or subsequent act or omission or to waive the requirement for
Mortgagee's consent to be obtained in any future or other instance.
(b) If any of the events described below occurs, that
event alone shall not: cure or waive any breach, Event of Default or
notice of default under this Mortgage or invalidate any act performed
pursuant to any such default or notice; or nullify the effect of any
notice of default or sale (unless all Secured Obligations then due have
been paid and performed and all other defaults under the Loan Documents
have been cured); or impair the security of this Mortgage; or prejudice
Mortgagee or any receiver in the exercise of any right or remedy
afforded any of them under this Mortgage; or be construed as an
affirmation by Mortgagee of any tenancy, lease or option, or a
subordination of the lien of this Mortgage.
(i) Mortgagee, its agent or a receiver takes
possession of all or any part of the Property in the manner
provided in Subsection 6.3(c).
(ii) Mortgagee collects and applies Rents as
permitted under Sections 2.3 and 6.3(h) above, either with or
without taking possession of all or any part of the Property.
(iii) Mortgagee receives and applies to any
Secured Obligation any proceeds of any Property, including any
proceeds of insurance policies,
Blaine, Minnesota
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condemnation awards, or other claims, property or rights
assigned to Mortgagee under Section 5.5 and Section 5.6 above.
(iv) Mortgagee makes a site visit, observes the
Property and/or conducts tests as permitted under Section 5.13
above.
(v) Mortgagee receives any sums under this
Mortgage or any proceeds of any collateral held for any of the
Secured Obligations, and applies them to one or more Secured
Obligations.
(vi) Mortgagee or any receiver invokes any right
or remedy provided under this Mortgage.
7.3 Powers of Mortgagee.
(a) If Mortgagee performs any act which it is empowered
or authorized to perform under this Mortgage, including any act
permitted by Section 5.8 or Subsection 6.3(d) of this Mortgage, that
act alone shall not release or change the personal liability of any
person for the payment and performance of the Secured Obligations then
outstanding, or the lien of this Mortgage on all or the remainder of
the Property for full payment and performance of all outstanding
Secured Obligations. The liability of the original Mortgagor shall not
be released or changed if Mortgagee grants any successor in interest to
Mortgagor any extension of time for payment, or modification of the
terms of payment, of any Secured Obligation. Mortgagee shall not be
required to comply with any demand by the original Mortgagor that
Mortgagee refuse to grant such an extension or modification to, or
commence proceedings against, any such successor in interest.
(b) Mortgagee may take any of the actions permitted under
Subsections 6.3(b) and/or 6.3(c) regardless of the adequacy of the
security for the Secured Obligations, or whether any or all of the
Secured Obligations have been declared to be immediately due and
payable, or whether notice of default and election to sell has been
given under this Mortgage.
(c) From time to time, Mortgagee may apply to any court
of competent jurisdiction for aid and direction in executing and
enforcing the rights and remedies created under this Mortgage.
Mortgagee may from time to time obtain orders or decrees directing,
confirming or approving acts in executing and enforcing these rights
and remedies.
7.4 Merger. No merger shall occur as a result of Mortgagee's
acquiring any other estate in or any other lien on the Property unless Mortgagee
consents to a merger in writing.
7.5 Joint and Several Liability. If Mortgagor consists of more
than one person, each shall be jointly and severally liable for the faithful
performance of all of Mortgagor's obligations under this Mortgage.
7.6 Applicable Law. The creation, perfection and enforcement of
the lien of this Mortgage shall be governed by the law of the State in which the
property is located. Subject to the
Blaine, Minnesota
- 19 -
foregoing, in all other respects, this Mortgage shall be governed by the
substantive laws of the State of Ohio.
7.7 Successors in Interest. The terms, covenants and conditions of
this Mortgage shall be binding upon and inure to the benefit of the heirs,
successors and assigns of the parties. However, this Section 7.7 does not waive
the provisions of Section 6.1 above.
7.8 Interpretation.
(a) Whenever the context requires, all words used in the
singular will be construed to have been used in the plural, and vice
versa, and each gender will include any other gender. The captions of
the sections of this Mortgage are for convenience only and do not
define or limit any terms or provisions. The word "include(s)" means
"include(s), without limitation," and the word "including" means
"including, but not limited to."
(b) The word "obligations" is used in its broadest and
most comprehensive sense, and includes all primary, secondary, direct,
indirect, fixed and contingent obligations. It further includes all
principal, interest, prepayment charges, late charges, loan fees and
any other fees and charges accruing or assessed at any time, as well as
all obligations to perform acts or satisfy conditions.
(c) No listing of specific instances, items or matters in
any way limits the scope or generality of any language of this
Mortgage. The Exhibits to this Mortgage are hereby incorporated in this
Mortgage.
7.9 In-House Counsel Fees. Whenever Mortgagor is obligated to pay
or reimburse Mortgagee for any attorneys' fees, those fees shall include the
reasonable and customary allocated costs for services of in-house counsel.
7.10 Waiver of Statutory Rights. To the extent permitted by law,
Mortgagor hereby agrees that it shall not and will not apply for or avail itself
of any appraisement, valuation, stay, extension or exemption laws, or any
so-called "Moratorium Laws," now existing or hereafter enacted, in order to
prevent or hinder the enforcement or foreclosure of this Mortgage, but hereby
waives the benefit of such laws. Mortgagor for itself and all who may claim
through or under it waives any and all right to have the property and estates
comprising the Property marshalled upon any foreclosure of the lien hereof and
agrees that any court having jurisdiction to foreclose such lien may order the
Property sold as an entirety. Mortgagor hereby waives any and all rights of
redemption from sale under any judgment of foreclosure of this Mortgage on
behalf of Mortgagor and on behalf of each and every person acquiring any
interest in or title to the Property of any nature whatsoever, subsequent to the
date of this Mortgage. The foregoing waiver of right of redemption is made
pursuant to the provisions of applicable law.
7.11 Severability. If any provision of this Mortgage should be held
unenforceable or void, that provision shall be deemed severable from the
remaining provisions and shall in no way affect the validity of this Mortgage
except that if such provision relates to the payment of any monetary sum, then
Mortgagee may, at its option, declare all Secured Obligations immediately due
and payable.
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7.12 Notices. Any notice, demand, request or other communication
which any party hereto may be required or may desire to give hereunder shall be
in writing and shall be deemed to have been properly given (a) if hand
delivered, when delivered; (b) if mailed by United States Certified Mail
(postage prepaid, return receipt requested), three Business Days after mailing
(c) if by Federal Express or other reliable overnight courier service, on the
next Business Day after delivered to such courier service or (d) if by
telecopier on the day of transmission so long as copy is sent on the same day by
overnight courier as set forth below:
Mortgagor: Glimcher Properties Limited Partnership
000 Xxxx Xxx Xxxxxx
Xxxxxxxx, Xxxx 00000
Attention: General Counsel
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
With a copy to: Squire, Sanders, & Xxxxxxx
0000 Xxxxxxxxxx Xxxxxx
00 Xxxxx Xxxx Xxxxxx
Xxxxxxxx, Xxxx 00000
Attention: Xxx X. Xxxxx, Esq.
Telephone: (000) 000-0000
Facsimile: (000) 000 0000
Mortgagee: KeyBank National Association
000 Xxxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
Attention: Real Estate Capital
Phone: 000-000-0000
Facsimile: 000-000-0000
With a copy to: Xxxxxxxxxxxx Xxxx & Xxxxxxxxx, LLP
8000 Sears Tower
000 Xxxxx Xxxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxxxx X. Xxxxx, Esq.
Telephone 000-000-0000
Facsimile 000-000-0000
or at such other address as the party to be served with notice may have
furnished in writing to the party seeking or desiring to serve notice as a place
for the service of notice.
Any notice or demand delivered to the person or entity named above to
accept notices and demands for Mortgagor shall constitute notice or demand duly
delivered to Mortgagor, even if delivery is refused.
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7.13 WAIVER OF TRIAL BY JURY. MORTGAGOR HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT THAT IT MAY HAVE TO A TRIAL BY
JURY IN ANY LITIGATION ARISING IN ANY WAY IN CONNECTION WITH THIS MORTGAGE, THE
NOTE, OR ANY OF THE OTHER LOAN DOCUMENTS, THE LOAN OR ANY OTHER STATEMENTS OR
ACTIONS OF MORTGAGOR OR MORTGAGEE. MORTGAGOR ACKNOWLEDGES THAT IT HAS BEEN
REPRESENTED IN THE SIGNING OF THIS MORTGAGE AND IN THE MAKING OF THIS WAIVER BY
INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS
DISCUSSED THIS WAIVER WITH SUCH LEGAL COUNSEL. MORTGAGOR FURTHER ACKNOWLEDGES
THAT (i) IT HAS READ AND UNDERSTANDS THE MEANING AND RAMIFICATIONS OF THIS
WAIVER, (ii) THIS WAIVER IS A MATERIAL INDUCEMENT FOR MORTGAGEE TO MAKE THE
LOAN, ENTER INTO THIS MORTGAGE AND EACH OF THE OTHER LOAN DOCUMENTS, AND (iii)
THIS WAIVER SHALL BE EFFECTIVE AS TO EACH OF SUCH OTHER LOAN DOCUMENTS AS IF
FULLY INCORPORATED THEREIN.
7.14 Inconsistencies. In the event of any inconsistency between
this Mortgage and the Credit Agreement, the terms hereof shall be controlling as
necessary to create, preserve and/or maintain a valid security interest upon the
Property, otherwise the provisions of the Credit Agreement shall be controlling.
7.15 Partial Invalidity; Maximum Allowable Rate of Interest.
Mortgagor and Mortgagee intend and believe that each provision in this Mortgage
and the Notes comports with all applicable local, state and federal laws and
judicial decisions. However, if any provision or provisions, or if any portion
of any provision or provisions, in this Mortgage or the Notes is found by a
court of law to be in violation of any applicable local, state or federal
ordinance, statute, law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this
Mortgage and the Notes to be illegal, invalid, unlawful, void or unenforceable
as written, then it is the intent both of Mortgagor and Mortgagee that such
portion, provision or provisions shall be given force to the fullest possible
extent that they are legal, valid and enforceable, that the remainder of this
Mortgage and the Notes shall be construed as if such illegal, invalid, unlawful,
void or unenforceable portion, provision or provisions were not contained
therein, and that the rights, obligations and interest of Mortgagor and
Mortgagee under the remainder of this Mortgage and the Notes shall continue in
full force and effect. All agreements herein and in the Notes are expressly
limited so that in no contingency or event whatsoever, whether by reason of
advancement of the proceeds hereof, acceleration of maturity of the unpaid
principal balance of the Notes, or otherwise, shall the amount paid or agreed to
be paid to the Holders for the use, forbearance or detention of the money to be
advanced hereunder exceed the highest lawful rate permissible under applicable
usury laws. If, from any circumstances whatsoever, fulfillment of any provision
hereof or of the Notes or any other agreement referred to herein, at the time
performance of such provision shall be due, shall involve transcending the limit
of validity prescribed by law which a court of competent jurisdiction may deem
applicable hereto, then, ipso facto, the obligation to be fulfilled shall be
reduced to the limit of such validity and if from any circumstance the Holders
shall ever receive as interest an amount which would exceed the highest lawful
rate, such amount which would be excessive interest shall be applied to the
reduction of the unpaid principal balance due under the Notes and not to the
payment of interest.
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7.16 UCC Financing Statements. Mortgagor hereby authorizes
Mortgagee to file UCC financing statements to perfect Mortgagee's security
interest in any part of the Property. In addition, Mortgagor agrees to sign any
and all other documents that Mortgagee deems necessary in its sole discretion to
perfect, protect, and continue Mortgagee's lien and security interest on the
Property.
7.17 Applicable Law. This Mortgage shall be construed, interpreted
and governed by the laws of the State in which the Premises are located.
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IN WITNESS WHEREOF, The Parties hereto have caused this Agreement to be
executed and agree as of the date first above written.
Mortgagor:
Glimcher Northtown Venture, LLC,
a Delaware limited liability company
By: Glimcher Properties Limited Partnership,
a Delaware limited partnership, sole member
By: Glimcher Properties Corporation,
a Delaware corporation, Sole General
Partner
By: ____________________________________
Xxxxxx X. Xxxxxxx,
Executive Vice President
(SIGNATURES CONTINUE ON NEXT PAGE)
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Mortgagor:
KEYBANK NATIONAL ASSOCIATION, as
Administrative Agent
By:___________________________________________
Print Name:___________________________________
Print Title:__________________________________
Blaine, Minnesota
S-2
STATE OF ____________ )
) SS:
COUNTY OF __________ )
The foregoing instrument was acknowledged before me this ____ day of October,
2003, by Xxxxxx X. Xxxxxxx, the Executive Vice President of Glimcher Properties
Corporation, a Delaware corporation, the Sole General Partner of Glimcher
Properties Limited Partnership, a Delaware limited partnership, sole member of
Glimcher Northtown Mall Venture, LLC, a Delaware limited liability company on
behalf of said Glimcher Northtown Mall Venture, LLC. He/She is personally known
to me or has produced a State of ______________ driver's license as
identification.
Sign Name: ____________________________
Notary Public
Print Name: ___________________________
Serial No. (if any):___________________
[NOTARIAL SEAL]
My Commission Expires: ____________________
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STATE OF ILLINOIS)
) ss.
COUNTY OF XXXX)
The foregoing instrument was acknowledged before me this ___ day of October,
2003, by _____________________, the ________________ of KeyBank National
Association, on behalf of such national banking association.
_______________________________________
Notary Public
This instrument was drafted by:
Xxxxxxx X. Xxxxx
XXXXXXXXXXXX XXXX & XXXXXXXXX LLP
8000 Sears Tower
000 Xxxxx Xxxxxx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
(000) 000-0000
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EXHIBIT A
DESCRIPTION OF PREMISES
See Attached:
Blaine, Minnesota
