FIRST SUPPLEMENT TO MORTGAGE AND SECURITY AGREEMENT WITH ASSIGNMENT OF RENTS
Exhibit 10.18
This Document Prepared By
and After Recording Return To:
Xxxx X. Xxxxxxxxx
Xxxxxxx and Xxxxxx
000 Xxxx Xxxxxx Xxxxxx
Xxxxxxx, Xxxxxxxx 00000
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SPACE ABOVE THIS LINE RESERVED FOR |
NOTICE: THIS INSTRUMENT SECURES FUTURE ADVANCES UNDER A REVOLVING CREDIT FACILITY THE PRIORITY OF WHICH DATE TO THE RECORDING DATE HEREOF. THIS INSTRUMENT PROVIDES FOR VARIABLE RATES OF INTEREST.
FIRST
SUPPLEMENT TO MORTGAGE AND
SECURITY AGREEMENT WITH ASSIGNMENT OF RENTS
This First Supplement to Mortgage and Security Agreement with Assignment of Rents dated as of September 27, 2002 (the “Supplement”) is being entered into by FLORISTS’ TRANSWORLD DELIVERY, INC., a Michigan corporation, formerly known as Florists’ Transworld Delivery Association, a Michigan not-for-profit corporation, with its principal place of business and mailing address at 0000 Xxxxxxxxx Xxxxx, Xxxxxxx Xxxxx, Xxxxxxxx 00000 (hereinafter referred to as “Mortgagor”), to Xxxxxx Trust and Savings Bank, an Illinois banking corporation with its principal place of business at 000 Xxxx Xxxxxx Xxxxxx, Xxxxxxx, Xxxxxxxx 00000 (“Xxxxxx”), acting as administrative agent hereunder for the Lenders hereinafter identified and defined (Xxxxxx acting as such agent and any successor or successors to Xxxxxx in such capacity being hereinafter referred to as “Mortgagee”);
WITNESSETH THAT:
WHEREAS, Mortgagor did heretofore execute and deliver to Mortgagee that certain Mortgage and Security Agreement with Assignment of Rents dated September 27, 2001, and recorded in the Recorder’s Office of DuPage County, Illinois on September 28, 2001, as Document No. R2001-208079 (the “Mortgage”), encumbering the property described on Schedule I attached hereto, in order to secure certain indebtedness of Mortgagor now or from time to time owing to Mortgagee; and
Downers Grove, Illinois
WHEREAS, the Mortgage currently secures, among other things, (i) those certain Revolving Notes of Mortgagor (the “Original Revolving Notes”), payable to the order of the respective Lender named therein in the aggregate principal amount of $85,000,000 whereby Mortgagor promises to pay said principal amount (or such lesser amount as may be outstanding at the maturity thereof) on December 31, 2004, the maturity date thereof (the “Original Termination Date”) and (ii) Swing Line Notes of Mortgagor payable to the order of Xxxxxx and maturing no later than the Original Termination Date in an aggregate principal amount which when combined with the principal amount of loans outstanding under the Revolving Notes and Letters of Credit from time to time, shall not at any one time exceed $85,000,000 (the “Original Swing Line Notes”), the Original Revolving Notes and Original Swing Line Notes having been issued under, and subject to the provisions of, and bearing interest as provided in, that certain Credit Agreement dated as of September 27, 2001 among Mortgagee, Mortgagor and the banks party thereto (each of such banks from time to time party to the Credit Agreement being hereinafter referred to as a “Lender” and collectively as the “Lenders”) (said Credit Agreement, as the same may be amended, modified or restated from time to time, being herein referred to as the “Credit Agreement”); and
WHEREAS, Mortgagor has concurrently herewith entered into an Amended and Restated Credit Agreement with Mortgagee and the Lenders bearing even date herewith (the “Amended Credit Agreement”) whereby the parties have agreed, among other things, to reduce the amount of the indebtedness evidenced by the Original Revolving Notes, Original Swing Line Notes and Letters of Credit, to extend the Original Termination Date, and to amend various other terms and conditions set forth in the Credit Agreement; and
WHEREAS, pursuant to the Amended Credit Agreement, Mortgagor is concurrently herewith executing and delivering Revolving Notes payable to the order of the respective Lender named thereon in the aggregate principal amount of $75,000,000 whereby Mortgagor promises to pay said principal sum (or so much thereof as may be outstanding) at the maturity thereof on December 31, 2005 (the “Termination Date”), together with interest thereon as set forth in the Amended Credit Agreement (such Revolving Notes, and any and all notes issued in extension or renewal thereof or in substitution or replacement therefor, being hereinafter referred to as the “Revolving Notes”); and
WHEREAS, pursuant to the Amended Credit Agreement, Mortgagor is currently herewith executing and delivering Swing Line Notes in an aggregate principal amount which when combined with the principal amount of loans outstanding under the Revolving Notes and Letters of Credit from time to time, shall not at any one time exceed $75,000,000 payable to the order of Xxxxxx and maturing no later than the Termination Date (such Swing Line Notes and any and all notes issued in extension or renewal thereof or in substitution or replacement therefor, being hereinafter referred to as the “Swing Line Notes”, together with the Revolving Notes being hereafter referred to as the “New Notes”); and
WHEREAS, pursuant to the terms of the Amended Credit Agreement, Xxxxxx or certain other Lenders may from time to time issue letters of credit (the “Letters of Credit”) for the account of Mortgagor with expiry dates on or before the Termination Date in an aggregate face
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amount which, when combined with the principal amount of loans outstanding under the Revolving Notes from time to time, shall not at any one time exceed $75,000,000; and
WHEREAS, Mortgagor may from time to time enter into one or more interest rate swap agreements, interest rate cap agreements, interest rate collar agreements, interest rate hedging agreements, interest rate futures agreements, foreign currency contracts, currency swap contracts or similar agreements or arrangements with one or more of the Lenders or their affiliates, for the purpose of hedging or otherwise protecting Mortgagor against changes in interest rates and currency exchange rates (the liability of Mortgagor in respect of such agreements and arrangements with such Lenders or affiliates being hereinafter referred to as “Hedging Liability”) (Mortgagee and the Lenders, together with any affiliates of the Lenders to whom any Hedging Liability is owed, being hereinafter referred to collectively as the “Secured Creditors” and individually as a “Secured Creditor”); and
WHEREAS, as a condition precedent to entering into the Amended Credit Agreement and making certain other financial accommodations to Mortgagor, Mortgagee requires Mortgagor, and to accommodate that requirement Mortgagor desires by this Supplement, to confirm and assure that all the real estate and other properties, rights, interests and privileges of Mortgagor which are currently subject to the lien of the Mortgage be and constitute collateral security for the indebtedness which is evidenced by the New Notes; and
WHEREAS, the Mortgage is to continue to secure all the indebtedness now secured thereby, this Supplement being executed and delivered to confirm and assure the foregoing;
NOW, THEREFORE, for and in consideration of the execution and delivery by Mortgagee and the Lenders of the Amended Credit Agreement, and other good and valuable consideration, receipt whereof is hereby acknowledged, the Mortgage shall be and hereby is supplemented and amended as follows, to wit:
To secure (i) the payment of the principal and premium, if any, of and interest on the New Notes as and when the same become due and payable (whether by lapse of time, acceleration or otherwise) and all advances now or hereafter made thereon, (ii) the payment of all sums due or owing with respect to Hedging Liability, (iii) the payment and performance of all obligations arising under any applications executed by Mortgagor in connection with any of the Letters of Credit, including the obligation of Mortgagor to reimburse the Mortgagee for any draws under the Letters of Credit, (iv) the payment of all other indebtedness, obligations and liabilities which the Mortgage as supplemented hereby secures pursuant to any of its terms, and (v) the performance and observance of the covenants and agreements contained in the Mortgage as supplemented hereby, the Credit Agreement, the New Notes and any other instrument or document securing any of the foregoing or setting forth terms and conditions applicable thereto (all of such indebtedness, obligations, agreements and liabilities described in clauses (i), (ii), (iii), (iv) and (v) above being hereinafter collectively referred to as the “indebtedness hereby secured”), Mortgagor does hereby grant, bargain, sell, convey, mortgage, warrant, assign, and pledge unto Mortgagee, its successors and assigns, and grant to Mortgagee, its successors and assigns a security interest in, all and singular that certain real estate lying
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and being in DuPage County in the State of Illinois described on Schedule I attached hereto and made a part hereof, together with all of the properties, rights, interests and privileges described in Granting Clauses I through VII, both inclusive, of the Mortgage, each and all of such Granting Clauses being hereby incorporated by reference herein with the same force and effect as though set forth herein in their entirety. The foregoing grant of a lien is in addition to and supplemental of and not in substitution for the grant of the lien created and provided for by the Mortgage, and nothing herein contained shall affect or impair the lien or priority of the Mortgage as to the indebtedness which would be secured thereby prior to giving effect to this Supplement.
In order to induce Mortgagee and the Lenders to enter into the Amended Credit Agreement, and to accept this Supplement, Mortgagor hereby further covenants and agrees with, and represents and warrants to, Mortgagee as follows:
1. It is hereby agreed that all the indebtedness evidenced by the New Notes issued pursuant to the Amended Credit Agreement shall be secured by the Mortgage in the same manner as if such indebtedness had been specifically described therein as indebtedness secured thereby. All references to the Notes contained in the Mortgage shall be deemed to be references to the New Notes.
2. It is hereby agreed that paragraph 27 of the Mortgage shall be and hereby is amended by deleting the amount “One Hundred Seventy Million Dollars ($170,000,000)” and replacing it with the amount “One Hundred Fifty Million Dollars ($150,000,000)”.
3. Mortgagor hereby represents and warrants to Mortgagee that as of the date hereof each of the representations and warranties set forth in the Mortgage as supplemented hereby are true and correct and that no Event of Default (as such term is defined in the Mortgage), or any other event which with the lapse of time or the giving of notice, or both, would constitute such an Event of Default, has occurred and is continuing or shall result after giving effect to this Supplement. Mortgagor hereby repeats and reaffirms all covenants and agreements contained in the Mortgage, each and all of which shall be applicable to all of the indebtedness secured by the Mortgage as supplemented hereby. Mortgagor repeats and reaffirms its covenant that all the indebtedness secured by the Mortgage as supplemented hereby will be promptly paid as and when the same becomes due and payable.
4. All capitalized terms used herein without definition shall have the same meanings herein as they have in the Mortgage. The definitions provided herein of any capitalized terms shall apply to such capitalized terms as the same appear in the Mortgage as supplemented hereby, all to the end that any capitalized terms defined herein and used in the Mortgage as supplemented hereby shall have the same meanings in the Mortgage as supplemented hereby as are given to such capitalized terms herein. Without limiting the foregoing, all references in the Mortgage to the term “indebtedness hereby secured” shall be deemed references to all the indebtedness, obligations and liabilities secured by the Mortgage as supplemented hereby; all references in the Mortgage to the term Notes
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shall be deemed references, collectively, to the New Notes and any and all notes issued in extension or renewal thereof or in substitution or replacement therefor; and all references in the Mortgage to the Credit Agreement shall be deemed references to the Amended Credit Agreement and as the same may from time to time hereafter be further amended, modified or restated.
5. All of the provisions, stipulations, powers and covenants contained in the Mortgage shall stand and remain unchanged and in full force and effect except to the extent specifically modified hereby and shall be applicable to all of the indebtedness, obligations and liabilities secured by the Mortgage as supplemented hereby.
6. Mortgagor acknowledges and agrees that the Mortgage as supplemented hereby is and shall remain in full force and effect, and that the Mortgaged Premises are and shall remain subject to the lien and security interest granted and provided for by the Mortgage for the benefit and security of all the indebtedness hereby secured. Without limiting the foregoing, Mortgagor hereby agrees that, notwithstanding the execution and delivery hereof, (i) all rights and remedies of Mortgagee under the Mortgage, (ii) all obligations of Mortgagor thereunder and (iii) the lien and security interest granted and provided for thereby are and as amended hereby shall remain in full force and effect for the benefit and security of all the indebtedness hereby secured, it being specifically understood and agreed that this Supplement shall constitute and be, among other things, an acknowledgement and continuation of the rights, remedies, lien and security interest in favor of Mortgagee, and of the obligations of Mortgagor to Mortgagee, which exist under the Mortgage as supplemented hereby.
7. This Supplement may be executed in any number of counterparts and by different parties hereto on separate counterpart signature pages, each of which when so executed shall be an original but all of which to constitute one and the same instrument.
8. No reference to this Supplement need be made in any note, instrument or other document making reference to the Mortgage, any reference to the Mortgage in any of such to be deemed to be a reference to the Mortgage as supplemented hereby. This instrument shall be construed and governed by and in accordance with the laws of the State of Illinois.
9. Wherever herein any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party; and all the covenants, promises and agreements by or on behalf of Mortgagor, or by or on behalf of Mortgagee, or by or on behalf of the holder or holders of the indebtedness hereby secured contained in the Mortgage as supplemented hereby shall bind and inure to the benefit of the respective successors and assigns of such parties, whether so expressed or not.
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IN WITNESS WHEREOF, Mortgagor has caused these presents to be duly executed the day and year first above written.
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FLORISTS’ TRANSWORLD DELIVERY, INC. |
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/S/ XXXXXX X. XXXXX |
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Xxxxxx X. Xxxxx |
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CFO, Treasurer |
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Accepted and agreed to in Chicago, Illinois as of the day and year first above written.
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XXXXXX TRUST AND
SAVINGS BANK, as |
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/S/ XXXXX X. LAW |
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Xxxxx X. Law |
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Vice President |
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State of Illinois |
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County of DuPage |
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I, the undersigned, Notary Public in and for said County, in the State aforesaid, do hereby certify that Xxxxxx X. Xxxxx, CFO of Florists’ Transworld Delivery, Inc., a Michigan corporation, who is personally known to me to be the same person whose name is subscribed to the foregoing instrument as such Xxxxxx X. Xxxxx appeared before me this day in person and acknowledged that he/she signed and delivered the said instrument as his/her own free and voluntary act and as the free and voluntary act and deed of said corporation for the uses and purposes therein set forth.
Given under my hand and notarial seal, as of this 25th day of September, 2002.
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/S/ XXXXX X. XXXXX |
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XXXXX X. XXXXX |
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7-1-06 |
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State of Illinois |
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COUNTY OF XXXX |
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I, the undersigned, Notary Public in and for said County, in the State aforesaid, do hereby certify that Xxxxx X. Law, Vice President of Xxxxxx Trust and Savings Bank, an Illinois banking corporation, who is personally known to me to be the same person whose name is subscribed to the foregoing instrument as such Vice President, appeared before me this day in person and acknowledged that he/she signed and delivered the said instrument as his/her own free and voluntary act and as the free and voluntary act and deed of said corporation for the uses and purposes therein set forth.
Given under my hand and notarial seal, as of this 27th day of September, 2002.
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/S/ XXXXXX XXXXXXXX |
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Xxxxxx Xxxxxxxx |
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Sept. 27, 2005 |
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SCHEDULE I
LEGAL DESCRIPTION
Debtor
Florists’ Transworld Delivery, Inc.
Legal Description
File No.: CC201388
LOTS 1 AND 2 IN ESCHEM SUBDIVISION OF LOT 7 IN THE WOODCREEK BUSINESS PARK, BEING A SUBDIVISION OF LOT 7 IN WOODCREEK BUSINESS PARK RESUBDIVISION OF LOTS 1 THROUGH 14 AND VACATED EDGEBROOK PLACE, ALL IN WOODCREEK BUSINESS PARK, BEING A SUBDIVISION OF PARTS OF SECTIONS 25 AND 36, TOWNSHIP 39 NORTH, RANGE 10, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT OF SAID ESCHEM SUBDIVISION OF LOT 7 IN THE WOODCREEK BUSINESS PARK, RECORDED OCTOBER 22, 1985 AS DOCUMENT R85-91342 AND CERTIFICATE OF CORRECTION RECORDED DECEMBER 2, 1985 AS DOCUMENT R85-105018, IN DUPAGE COUNTY, ILLINOIS.
P.I.N. no.: 00-00-000-000 00-00-000-000
Property Address: 0000 Xxxxxxxxx Xxxxx, Xxxxxxx Xxxxx, XX