FOR ANY DAMAGES OR CLAIMS ARISING OUT OF ACTION TAKEN BY THE
MORTGAGEE PURSUANT TO THIS PARAGRAPH 12.
13.
NO SECONDARY FINANCING OR SUPERIOR LIENS.
THE MORTGAGOR SHALL NOT
CREATE OR PERMIT TO BE CREATED OR TO REMAIN ANY SUBORDINATE LIEN ON THE
MORTGAGED PROPERTY OR ANY PART THEREOF TO SECURE ANY INDEBTEDNESS FOR BORROWED
MONEY, WITHOUT OBTAINING THE PRIOR WRITTEN CONSENT OF THE MORTGAGEE.
EXCEPT
PERMITTED LIENS AND ANY LIEN REFERRED TO IN THE MORTGAGE POLICY (AS SUCH TERMS
ARE DEFINED IN THE CREDIT AGREEMENT) AND EXCEPT AS OTHERWISE PROVIDED IN THE
CREDIT AGREEMENT OR AS PROVIDED BY OPERATION OF THE LAWS OF THE STATE OF
MINNESOTA, MORTGAGOR SHALL NOT CREATE, SUFFER, OR PERMIT TO BE CREATED OR FILED
AGAINST THE MORTGAGED PROPERTY ANY MORTGAGE LIEN OR OTHER LIEN SUPERIOR TO THE
LIEN CREATED BY THIS MORTGAGE.
14.
SECURITY INTEREST.
THIS MORTGAGE SHALL CONSTITUTE A SECURITY
AGREEMENT WITH RESPECT TO (AND THE MORTGAGOR HEREBY GRANTS THE MORTGAGEE A
SECURITY INTEREST IN) ALL PERSONAL PROPERTY AND FIXTURES INCLUDED IN THE
MORTGAGED PROPERTY AS MORE SPECIFICALLY DESCRIBED IN PARAGRAPHS (II), (IV) AND
(VI) OF THE GRANTING CLAUSE ABOVE.
THE MORTGAGOR WILL FROM TIME TO TIME, AT THE
REQUEST OF THE MORTGAGEE, EXECUTE ANY AND ALL FINANCING STATEMENTS COVERING SUCH
PERSONAL PROPERTY AND FIXTURES (IN A FORM SATISFACTORY TO THE MORTGAGEE) WHICH
THE MORTGAGEE MAY REASONABLY CONSIDER NECESSARY OR APPROPRIATE TO PERFECT ITS
SECURITY INTEREST.
15.
EVENTS OF DEFAULT.
EACH OF THE FOLLOWING OCCURRENCES SHALL
CONSTITUTE AN EVENT OF DEFAULT HEREUNDER (HEREIN CALLED AN "EVENT OF DEFAULT"):
(A)
THE MORTGAGOR SHALL FAIL TO DULY AND PUNCTUALLY PAY ANY OF THE
GUARANTEED OBLIGATIONS.
(B)
THE OCCURRENCE OF AN "EVENT OF DEFAULT" UNDER THE CREDIT
AGREEMENT, INCLUDING, IF APPLICABLE, THE EXPIRATION OF ANY GRACE PERIOD PROVIDED
THEREIN.
(C)
FAILURE OF MORTGAGOR TO PERFORM OR OBSERVE ANY OTHER COVENANT,
AGREEMENT, REPRESENTATION, WARRANTY OR OTHER PROVISION CONTAINED IN THIS
MORTGAGE.
(D)
THE MORTGAGOR SHALL DEFAULT IN THE PERFORMANCE OF OR BREACH ITS
AGREEMENT CONTAINED IN PARAGRAPH 13 HEREOF.
(E)
THE MORTGAGOR SHALL FAIL TO DULY AND PUNCTUALLY PAY WHEN AND AS
DUE ANY PAYMENT FOR TAXES AND ASSESSMENTS REQUIRED BY PARAGRAPH 2 TO BE PAID OR
SHALL FAIL TO PROVIDE THE INSURANCE COVERAGE REQUIRED BY PARAGRAPH 8 OR TO PAY
ANY UTILITY REQUIRED UNDER PARAGRAPH 3.
(F)
THE MORTGAGOR SHALL FAIL DULY TO PERFORM OR OBSERVE ANY OF THE
COVENANTS OR AGREEMENTS CONTAINED IN THIS MORTGAGE (OTHER THAN A COVENANT OR
AGREEMENT OR DEFAULT IN WHICH IS ELSEWHERE IN THIS PARAGRAPH 15 SPECIFICALLY
DEALT WITH) OR ANY OTHER INSTRUMENT WHICH SECURES PAYMENT OF THE GUARANTEED
OBLIGATIONS AND SUCH FAILURE SHALL CONTINUE UNREMEDIED FOR 30 CALENDAR DAYS.
(G)
ANY REPRESENTATION OR WARRANTY MADE BY THE MORTGAGOR HEREIN SHALL
PROVE TO HAVE BEEN UNTRUE IN ANY MATERIAL RESPECT OR MATERIALLY MISLEADING AS OF
THE TIME SUCH REPRESENTATION OR WARRANTY WAS MADE.
(H)
THE MORTGAGOR SHALL MAKE AN ASSIGNMENT FOR THE BENEFIT OF ITS
CREDITORS, OR THE MORTGAGOR SHALL GENERALLY NOT BE PAYING ITS DEBTS AS THEY
BECOME DUE,