Document:

Exhibit
4.1.6

 

 

[Space Above This
Line For Recording Data]

 

	
  Title
  of Document:

  	
   

  	
  MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES AND RENTS AND
  FIXTURE FILING

  
	
   

  	
   

  	
   

  
	
  Date
  of Document:

  	
   

  	
  September 3, 2008

  
	
   

  	
   

  	
   

  
	
  Prepared
  by and after

  	
   

  	
   

  
	
  recording
  return to:

  	
   

  	
  Mark
  Ovington, Esq.

  
	
   

  	
   

  	
  Stinson Morrison Hecker
  LLP

  
	
   

  	
   

  	
  1201 Walnut Street,
  Suite 2900

  
	
   

  	
   

  	
  Kansas City, Missouri
  64106

  
	
   

  	
   

  	
  (816) 842-8600

  
	
   

  	
   

  	
   

  
	
  Address of Real Property:

  	
   

  	
  1301 S. Front St.,
  Pekin, Illinois 61554

  
	
   

  	
   

  	
   

  
	
  Real Estate I.D. Nos.:

  	
   

  	
  10-10-09-200-001

  
	
   

  	
   

  	
  10-10-09-200-010

  
	
   

  	
   

  	
  04-10-04-400-002

  

 

 

MORTGAGE,
SECURITY AGREEMENT,

ASSIGNMENT
OF LEASES AND RENTS

AND
FIXTURE FILING

 

This Mortgage, Security
Agreement, Assignment of Leases and Rents and Fixture Filing (the “Mortgage”)
is given as of September 3, 2008, by MGP INGREDIENTS, INC., a Kansas
corporation (the “Borrower”), as successor to and survivor of Midwest
Grain Products of Illinois, an Illinois general partnership, with an office
located at Cray Business Plaza, 100 Commercial Street, Atchison, Kansas 66002,
to COMMERCE BANK, N.A., a national banking association, as Agent for the Banks
from time to time party to the Credit Agreement referred to below (in such
capacity, the “Agent”), with an office located at 1000 Walnut Street,
Kansas City, Missouri 64105.

 

WHEREAS, Midwest Solvents
Company of Illinois, an Illinois general partnership, is the grantee appearing
on the last deed of record for the Property described herein, and such general
partnership changed its name in 1985 to “Midwest Grain Products of Illinois, an
Illinois general partnership”;

 

WHEREAS, Midwest Grain
Products of Illinois, an Illinois general partnership, was dissolved by virtue
of that certain Agreement and Plan of Merger dated as of June 22, 1994
(filed with the Illinois Secretary of State on June 24, 1994), in which
three corporations — Midwest Solvents Company of Illinois, Inc., Missouri
Distilling Assets Company, Inc. and Midwest Grain Asset Company of
Illinois, Inc. — were merged into a single surviving entity called Midwest
Solvents Company of Illinois, Inc., an Illinois corporation; and since
such three corporations were the sole partners of Midwest Grain Products of
Illinois, an Illinois general partnership, and such partnership after such
merger had only one partner, the Agreement and Plan of Merger contained in Article III
thereof an agreement to dissolve such partnership and transfer all of the
assets of such partnership to the surviving corporation in the merger, i.e.
Midwest Solvents Company of Illinois, Inc., an Illinois corporation;

 

WHEREAS, Midwest Solvents
Company of Illinois, Inc., an Illinois corporation, was later merged into
MGP Ingredients, Inc., a Kansas corporation, the grantor of this Mortgage;

 

WHEREAS, MGP Ingredients, Inc.,
a Kansas corporation (i.e., Borrower), is the owner of the real property and
improvements thereon legally described on Exhibit A attached hereto;

 

WHEREAS, Borrower has
incurred and may hereafter incur indebtedness under the Credit Agreement, dated
as if May 5, 2008, among Borrower, certain other borrower(s) thereunder
(collectively, whether one or more, the “Other Borrower”), Commerce
Bank, N.A., as Agent, Issuing Bank and Swingline Lender, and the Banks party
thereto, as amended by a First Amendment to Credit Agreement dated on or about
the date hereof (as so amended and as otherwise amended, renewed, restated,
replaced, consolidated or otherwise modified from time to time, the “Credit
Agreement”), pursuant to which the Banks have agreed or may elect, in each
case subject to the terms and conditions thereof and as of the date hereof, to
extend credit to or for the benefit of Borrower and/or Other Borrower in an
aggregate outstanding principal amount not to exceed $55,000,000 at any time;

 

WHEREAS, Borrower’s and
Other Borrower’s obligations to the Banks under the Credit Agreement are
evidenced by the following promissory notes: (a) an Amended and Restated
Revolving Credit Note, dated on or about the date hereof, from Borrower and
Other Borrower, as makers, to Commerce Bank, N.A., as payee, in the stated
principal amount of $21,175,000; (b) an Amended and Restated Revolving
Credit Note, dated on or about the date hereof, from Borrower and Other
Borrower, as makers, to BMO Capital Markets Financing, Inc., as payee, in
the stated principal amount of 

 

 

$16,912,500; (c) an
Amended and Restated Revolving Credit Note, dated on or about the date hereof,
from Borrower and Other Borrower, as makers, to National City Bank, as payee,
in the stated principal amount of $16,912,500; and (d) a Swingline Note, dated
on or about the date hereof, from Borrower and Other Borrower, as makers, to
Commerce Bank, N.A., as payee, in the stated principal amount of $5,000,000;

 

WHEREAS, the foregoing
promissory notes and any other promissory notes issued on or after the date
hereof under the Credit Agreement – whether payable to the above specifically
identified Banks or their respective permitted assignees under the Credit
Agreement or to other lenders who may hereafter become Banks under the Credit
Agreement or their respective permitted assignees under the Credit Agreement –
as any of the foregoing may be amended, renewed, restated, replaced,
consolidated or otherwise modified from time to time, are collectively referred
to herein as the “Notes” and are individually referred to herein as a “Note”;

 

WHEREAS, Borrower’s and
Other Borrower’s obligations under the Credit Agreement, the Notes, this
Mortgage and any other Credit Documents (as defined in the Credit Agreement),
whether monetary, nonmonetary, direct, indirect, acquired, joint, several,
joint and several, existing, future, contingent or otherwise, and any
replacements, renewals, extensions and other modifications of any of the above,
together with all principal, premium, interest, fees, expenses and other
amounts and charges relating thereto, and any amounts expended by or on behalf
of Agent or any Bank for the protection and preservation of the mortgage lien
and security interest granted herein, including, without limitation, future
advances of the principal of the Notes up to $55,000,000 at any time
outstanding, are hereinafter sometimes collectively called the “Obligations”;
and

 

WHEREAS, any agreements,
documents or instruments evidencing, securing or otherwise relating to any of
the Obligations (including, without limitation, any of the Credit Documents, as
defined in the Credit Agreement), and any amendments, restatements,
replacements, consolidations and other modifications of any of the foregoing
are hereinafter sometimes collectively called the “Credit Documents.”

 

NOW, THEREFORE, to secure
the full and prompt payment and performance of the Obligations, Borrower hereby
mortgages and warrants to Agent, on behalf of the Banks, and grants to Agent on
behalf of the Banks, a security interest in, all of Borrower’s right, title and
interest in and to the following property, whether such property or interest
therein is now owned or existing or hereafter acquired or arising
(collectively, the “Property”): (a) all of the tracts, parcels or
other units of land described in Exhibit A attached hereto (the “Premises”);
(b) all of the buildings, structures and other improvements now or
hereafter situated on the Premises, together with any alterations, additions
and improvements thereto and all restorations and replacements thereof made
from time to time (collectively, the “Building”); (c) all
machinery, apparatus, equipment and fixtures of every kind and nature
whatsoever now or hereafter located in, on or about the Building or upon the
Premises, or attached to or used or usable in connection with the operation or
maintenance of the Premises or the Building or in connection with any
construction being conducted on the Premises, including, but not limited to,
all heating, lighting and power equipment, engines, plumbing, electrical,
mechanical, refrigeration, ventilating and air-conditioning equipment and
apparatus, elevators, cranes, fittings, tools, ducts and compressors
(collectively, the “Building Equipment”), which Building Equipment
shall, to the fullest extent permitted by law, be deemed to constitute fixtures
and part of the real property encumbered by this Mortgage; (d) all
easements, tenements, hereditaments, appurtenances, rights and rights of way,
public or private, pertaining, belonging or otherwise relating to the Premises
or the Building; (e) all insurance proceeds and any judgments,
settlements, awards and other payments, including interest thereon, which may
be made in respect of the Property as a result of damage to or destruction of
the Property, the exercise of the right of condemnation or eminent domain over
any interest in the Property, the closing of, or the alteration of the 

 

2

 

grade of, any street on
or adjoining the Premises, or any other injury to or decrease in the value of
the Property; (f) all franchises, permits, licenses and other rights
therein respecting the use, occupation or operation of the Property or the
activities conducted thereon or thereabout; (g) all rents, income and
other benefits arising out of or otherwise related to the Property and all
leases on or affecting the Property, and any security deposits, contract
rights, general intangibles, actions, rights of action, and unearned insurance
premiums relating to such leases or the Property; and (h) all accessions
to, substitutes for, and all modifications, replacements, renewals, products
and proceeds of any of the foregoing; provided, however,
that the Property shall not include any Excluded Equipment (as defined in the
Credit Agreement).

 

Borrower covenants,
represents and warrants to Agent as follows:

 

1.             Indebtedness
Secured.  This Mortgage has been
given and is intended to secure the full and prompt payment and performance of
the Obligations.  This Mortgage may
secure any additional indebtedness, whether direct, indirect, existing, future,
contingent or otherwise, that may be advanced by Agent or any of the Banks to
or for the benefit of Borrower and/or Other Borrower pursuant to the Credit
Documents, provided that, except as otherwise provided below, the maximum
principal amount of all indebtedness which may be secured hereby at any time is
$55,000,000.  The priority of the lien
hereunder securing such future advances and future obligations shall relate
back to the date this Mortgage was recorded. 
In addition, the Mortgage shall secure unpaid balances of advances made
by Agent or any Bank with respect to the Property, for the payment of
Impositions, as hereinafter defined, insurance premiums and costs incurred for
the protection of the Property and any charges, expenses and fees, including,
without limitation, attorneys’ fees, which, by the terms hereof, shall be added
to and increase the Obligations. 
Borrower agrees that all of the duties and obligations imposed on it
hereunder, whether absolute or contingent, due or to become due, are for the
reasonable protection of the lien of this Mortgage.  This Mortgage shall remain in full force and
effect with respect to all of the Property until all Obligations shall have
been paid and performed in full.  If the
Obligations are paid and performed in accordance with the terms of the
applicable Credit Documents, including, without limitation, the observance of
all the agreements contained in this Mortgage, this Mortgage shall be released
at the expense of Borrower.  Borrower
acknowledges that nothing in this Section 1 obligates Agent or any Bank to
make future advances to Borrower or any other Person.

 

2.             Title to Property
and Other Representations and Warranties. 
Borrower represents, warrants and covenants to Agent that:  (a) Borrower owns the Premises and the
improvements thereon in fee simple absolute and has good and marketable title
to the remainder of the Property; (b) the Property is free of all liens,
encumbrances, adverse claims and other defects of title whatsoever, except for
Permitted Liens (as defined in the Credit Agreement) and the matters set forth
on Exhibit B hereto (collectively, together with Permitted Liens as
defined in the Credit Agreement, “Permitted Liens”); (c) Borrower
does hereby and shall forever warrant and defend its title to and interest in
the Property (and the validity and priority of the lien of this Mortgage) to
Agent against all claims and demands whatsoever of any Person; (d) the
Building presently on the Premises complies in all material respects with all
applicable zoning and building codes, ordinances and regulations, and such
compliance is based solely upon Borrower’s owning the Property and not upon
Borrower’s title to or interest in any other property; (e) any Building
hereafter constructed on the Premises shall comply in all material respects
with all applicable zoning and building codes, ordinances and regulations and
shall lie wholly within the boundaries of the Premises; (f) there are no
actions, suits or proceedings pending or, to Borrower’s knowledge, threatened
against or affecting the Property; and (g) Borrower has the good and
unrestricted right, full power and lawful authority to subject the Property to
this Mortgage.

 

3.             Maintenance.  Borrower shall maintain the Property in good
order, condition and repair, excepting ordinary wear and tear.  Borrower shall make, as and when the same
shall become necessary, all structural and non-structural repairs, whether
exterior or interior, ordinary or extraordinary, foreseen or 

 

3

 

unforeseen.  Borrower shall not commit or suffer any waste
of the Property.  Borrower shall not
construct any new or additional buildings on the Premises without the prior
written consent of Agent, which consent shall not be unreasonably withheld so
long as no Default or Event of Default exists. 
Notwithstanding the foregoing, if Borrower is required by applicable law
to undertake any such alterations to the Building or the Building Equipment,
Borrower may do so without obtaining Agent’s consent thereto.  In such event, Borrower shall promptly give
Agent written notice of any such legal requirement and, prior to undertaking
such alterations, shall notify Agent in writing of any such alterations that
Borrower proposes to undertake.  Agent
and each of the Banks, and their respective agents, contractors and
representatives, may enter upon and inspect the Property at all reasonable
times until this Mortgage is released. 
Without limiting the generality of the foregoing, Agent, each of the
Banks, and their respective agents, contractors and representatives, may from
time to time enter upon the Property and conduct upon the Property inspections
and tests to determine the extent to which any hazardous substances, wastes or
other environmentally unsound materials have been placed or discharged upon or
otherwise affect the Property, all at the sole expense of Borrower.

 

4.             Restoration.  If any of the improvements or equipment
comprising the Property is damaged or destroyed, in whole or in part, by fire
or other casualty (whether or not covered by insurance), or by any taking in
condemnation proceedings or the exercise of any right of eminent domain,
Borrower shall promptly restore, replace or rebuild the same to as nearly as
possible the value, quality and condition they were in immediately prior to
such fire or other casualty or taking, with such alterations or changes as may
be approved in writing by Agent, which approval shall not be unreasonably
withheld; provided, however, that
Borrower shall be under no duty to so restore, rebuild or replace such property
to the extent that Agent receives and applies any insurance, condemnation or
similar proceeds relating to such casualty to satisfy any part of the Obligations.  Borrower shall give prompt notice to Agent of
any material damage to the Property.

 

5.             Compliance with
Laws; Use of Property.  Borrower
shall comply in all material respects with all present and future laws,
statutes, ordinances, rules, regulations and other requirements (including,
without limitation, applicable zoning and building requirements) of all
governmental and quasi-governmental authorities whatsoever having jurisdiction
with respect to the Property.  Borrower
shall promptly perform and observe all of the terms, covenants and conditions
of all instruments of record affecting the Property, non-compliance with which
may affect the security of this Mortgage, or which shall impose any duty or
obligation upon Borrower or any tenant or other occupant of the Premises, and
Borrower shall do all things necessary to preserve intact and unimpaired any
and all easements, appurtenances and other interests and rights in favor of or
constituting any portion of the Property. 
Borrower shall not use or permit the use of the Property in any manner
which would tend to impair the value of the Property or materially increase the
risk of fire or other casualty.

 

6.             Impositions.  Borrower shall pay when the same shall become
due and payable all real estate taxes, assessments, water and sewer rates and
charges, license fees and all other governmental levies and charges of every
kind and nature whatsoever, general and special, ordinary and extraordinary,
foreseen and unforeseen, which shall be assessed, levied, confirmed, imposed or
become a lien upon or against the Property or which shall become payable with
respect thereto (collectively, “Impositions”).  Notwithstanding the foregoing, Borrower may
contest any Imposition by appropriate and timely proceedings, provided that on
or before the due date for payment of such Imposition Borrower shall establish
an escrow or other provision for payment of such Imposition satisfactory to
Agent in an amount estimated by Agent to be adequate to pay such Imposition and
any interest or penalties that may result from its nonpayment on the due
date.  In all such cases of contest,
Borrower shall pay the contested Imposition within 10 days after the dismissal
of said proceedings or the final and unappealable determination of Borrower’s
or the Property’s liability therefor, as the case may be.  So long as any Event of Default exists,
however, Borrower shall, upon demand by Agent, pay the whole of any assessment
for 

 

4

 

local improvement which
may be payable in installments, notwithstanding that such installments may not
be due and payable at the time of such demand by Agent.  Borrower shall deliver to Agent, within 10
days after the request of Agent therefor, the original or a photocopy of the
official receipt evidencing such payment or other proof of payment satisfactory
to Agent.

 

7.             Insurance.  (a)  Borrower, at Borrower’s sole
expense, shall insure the Property for the benefit of Agent against loss or
damage thereto and shall keep in effect, for Agent’s benefit, comprehensive
general public liability insurance against claims for bodily injury, death or
property damage.  The policies of
insurance required by this Section shall be in companies, forms and
amounts, and for such periods and with such deductibles, as shall be customary
for property similar in use, location and condition to the Property, and shall
insure the respective interests of Borrower and Agent.  The insurance proceeds from all such policies
of insurance (other than the proceeds in respect of any liability insurance
policy) shall be payable to Agent pursuant to a noncontributing first mortgagee
endorsement satisfactory in form and substance to Agent.  Upon request by Agent, Borrower shall
promptly furnish evidence of satisfactory insurance on the Property and that
Borrower has complied with the other provisions of this Section.  In addition to the other policies of
insurance required hereunder, Borrower shall cause a title insurer reasonably
acceptable to Agent to insure, in favor of Agent, Borrower’s ownership of, and
Agent’s first priority lien on, the Property, subject only to Permitted Liens,
in an amount equal to not less than $20,000,000 in such form, and with such
affirmative coverage and endorsements as Agent may reasonably request.

 

(b)           Borrower
irrevocably makes, constitutes and appoints Agent (and all officers, employees
or agents designated by Agent) as Borrower’s true and lawful attorney-in-fact
and agent, with full power of substitution, for the purpose of making and
adjusting claims the policies of insurance referred to herein, endorsing the
name of Borrower on any check, draft, instrument or other item or payment for
the proceeds of such policies of insurance and for making all determinations
and decisions with respect to such policies of insurance or to pay any premium
in whole or in part relating thereto. 
Agent, without waiving or releasing any obligation or default by
Borrower hereunder, may (but shall be under no obligation to do so) at any time
maintain such action with respect thereto which Agent deems advisable.  All sums disbursed by Agent in connection
therewith, including attorneys’ fees, court costs, expenses and other charges
relating thereto, shall be payable, on demand, by Borrower to Agent and shall
be additional Obligations hereunder secured by this Mortgage.  Notwithstanding the foregoing, so long as no
Default or Event of Default exists, Borrower may make and settle any insurance
claims relating to the Property provided that Borrower first obtains Agent’s
written consent thereto, which consent shall not be unreasonably withheld.

 

(c)           All
proceeds of the insurance obtained by Borrower hereunder (other than those
relating to any liability insurance policy), shall be paid to Agent, and Agent
may deduct from such proceeds any expenses, including, without limitation,
legal fees, incurred by Agent in connection with adjusting and obtaining such
proceeds (the balance remaining after such deduction being hereinafter referred
to as the “Net Insurance Proceeds”). If an Event Default exists at the
time Agent receives the Net Insurance Proceeds, Agent may apply the Net
Insurance Proceeds in reduction or satisfaction of all or any part of the
Obligations, whether then matured or not, in which event Borrower shall be
relieved of its obligation under Sections 3 and 4 above to maintain and restore
the Property relating to such proceeds to the extent that Agent so applies the
Net Insurance Proceeds.  If no Event of
Default exits at such time (or if an Event of Default exists and Agent elects
not to apply the Net Insurance Proceeds as provided in the previous sentence),
Agent shall release the Net Insurance Proceeds to Borrower; provided, however, that, if the amount of the Net Insurance
Proceeds exceeds $50,000, Agent may condition the release of all or any part of
the Net Insurance Proceeds on such escrow or other disbursement conditions as
Agent may reasonably require to ensure that Borrower uses the Net Insurance
Proceeds to maintain and the restore 

 

5

 

the Property as required
under this Agreement and to ensure that the Property remains free of all
mechanics’ and other liens except for Permitted Liens.

 

(d)           In
the event of a foreclosure under this Mortgage, the purchaser of the Property
shall succeed to all of the rights of Borrower, including any right to unearned
premiums, in and to all policies of insurance which Borrower is required to
maintain under this Section and to all proceeds of such insurance.

 

8.             Deposits for
Impositions and Insurance.  Upon
notice from Agent (which notice shall not be given unless an Event of Default
exists), Borrower shall deposit with Agent on the first day of each month an
amount equal to one-twelfth of (i) the aggregate annual payments for the
Impositions, and (ii) the annual insurance premiums on the policies of
insurance required to be obtained and kept in force by Borrower under this
Mortgage.  In addition, upon notice from
Agent (which notice shall not be given unless an Event of Default exists),
Borrower shall deposit with Agent such sum of money which, together with such
monthly installments, shall be sufficient to pay all the Impositions and
insurance premiums at least 30 days prior to the due date thereof.  If the amounts of any Impositions are not
ascertainable at the time any deposit is required to be made, the deposit shall
be made on the basis of the amounts of the Impositions for the prior tax year
and, upon the amounts of the Impositions being fixed for the then current year,
Borrower shall, upon notice from Agent, deposit any deficiency with Agent.  If the amount of the insurance premiums is
not ascertainable at the time any deposit is required to be made, the deposit
shall be made on the basis of the amount of the insurance premiums for the
prior year of the policy or policies, and, upon the amount of the insurance
premiums being fixed for the then current year of the policy or policies,
Borrower shall, upon notice from Agent, deposit any deficiency with Agent.  If on a date 30 days prior to the due date
for the payment of any of the Impositions or the insurance premiums there shall
be insufficient funds on deposit with Agent to pay the same, Borrower shall,
upon notice from Agent, forthwith make a deposit with Agent in the amount of
such deficiency.  The funds so deposited
with Agent shall be held by Agent without interest, and may be commingled with
other funds of Agent, and provided that an Event of Default exists, such funds
shall be applied in payment of the Impositions and insurance premiums when due
to the extent that Borrower shall have deposited funds with Agent for such
purpose.  If an Event of Default exists,
the funds deposited with Agent may, at the option of Agent, be retained and
applied toward the payment of any or all of the Obligations, but no such
application shall be deemed to have been made by operation of law or otherwise
until actually made by Agent.  Borrower
shall furnish Agent with a bill for each of the Impositions and insurance
premiums and such other documents necessary for their payment at least 30 days
prior to the date they first become due. 
Upon an assignment of this Mortgage prior to any default hereunder by
Borrower, Agent shall have the right and obligation to pay over the balance of
such deposits in its possession to the assignee, and thereupon Agent shall be
completely released from all liability with respect to such deposits and
Borrower shall look solely to the assignee in reference thereto.  The provisions of the preceding sentence
shall apply to each and every assignment or transfer of such deposits to a new
assignee.

 

9.             Condemnation.  (a)  Borrower shall give immediate
notice to Agent upon Borrower’s learning of (i) any interest on the part
of any Person possessing or who has expressed the intention to possess the
power of eminent domain to purchase or otherwise acquire the Property, or (ii) the
commencement of any action or proceeding to take the Property by exercise of
the right of condemnation or eminent domain or of any action or proceeding to
close or to alter the grade of any street on or adjoining the Premises.  Agent may participate in any such actions or
proceedings in the name of Agent or, whenever necessary, in the name of
Borrower, and Borrower shall deliver to Agent such instruments as Agent shall
request to permit such participation. 
Borrower shall not settle any such action or proceeding, whether by
voluntary sale, stipulation or otherwise, or agree to accept any award or
payment without the prior written consent of Agent, which consent shall not be
unreasonably withheld so long as no Default or Event of Default exists.  The total of all amounts awarded or allowed
with respect to all 

 

6

 

right, title and interest
in and to the Property or the portion or portions thereof taken or affected by
such condemnation or eminent domain proceeding and any interest thereon (herein
collectively called the “Award”) is hereby assigned to and shall be paid
upon receipt thereof to Agent and the amount received shall be retained and
applied as provided in Section 9(b) below.

 

(b)           If
an Event of Default exists at the time Agent receives the Award, Agent may
apply the Award in reduction or satisfaction of all or any part of the
Obligations, whether then matured or not. 
If no Event of Default exits at such time (or if an Event of Default
exists and Agent elects not to apply the Award as provided in the previous
sentence), Agent shall release the Award to Borrower; provided,
however, that, if the amount of the Award exceeds $50,000, Agent may
condition the release of all or any part of the Award on such escrow or other
disbursement conditions as Agent may reasonably require to ensure that, in the
case of a taking of all or substantially all of the Property, Buyer acquires
replacement real property that is subject to a mortgage lien in favor of Agent
subject to no lien or other encumbrance other than Permitted Liens and, in the
case of any other taking, Borrower uses the Award to restore the Property remaining
after such taking and to ensure that such Property remains free of all
mechanics’ and other liens except for Permitted Liens.  In no event shall Agent be required to
release this Mortgage until the Obligations are fully paid and performed nor
shall Agent be required to release from the lien of this Mortgage any portion
of the Property so taken until Agent receives the Award for the portion so
taken.

 

10.           Assignment of Rents
and Leases.  (a)  Borrower
hereby presently assigns to Agent all of Borrower’s right, title and interest
in and to any Leases, as defined hereinafter, with respect to the Property, and
all rents, issues and profits of the Property. 
“Lease” means every lease or occupancy agreement for the use or
hire of all or any portion of the Property which shall be in effect on the date
hereof, or which shall hereafter be entered into, and by which Borrower is a
lessor or the like, and any renewals, extensions or other modifications
thereof.  Borrower grants to Agent, with
or without Agent or any other Person (including, without limitation, a
receiver) taking possession of the Property, the right to give notice to the
tenants of this assignment, to collect rents, issues and profits from the
tenants and to enter onto the Property for the purpose of collecting the same
and to let the Property and to apply such rents, issues and profits, after
payment of all charges and expenses relating to the Property, to the
Obligations.  This assignment shall be an
absolute assignment, subject to the license herein granted to Borrower and
Borrower’s obligations hereunder, and shall continue in effect until the
Obligations are fully paid and performed. 
Agent hereby grants a revocable license to Borrower to collect and use
such rents, issues and profits; provided, however,
that the foregoing license shall be automatically revoked, without any action
on Agent’s part, upon the occurrence of an Event of Default.  Notwithstanding any law to the contrary, if
there is an Event of Default, and if there is any applicable law requiring
Agent to take possession of the Property (or some action equivalent thereto,
such as securing the appointment of a receiver) in order for Agent to “perfect”
or otherwise “activate” its rights and remedies as set forth herein, then
Borrower waives all benefits of such laws and agrees that such laws shall be
fully satisfied, without any action on Agent’s part, solely by the occurrence
of such Event of Default.  If,
notwithstanding such waiver by Borrower, such laws require the undertaking of
some affirmative act by Agent, Borrower agrees that such laws shall be fully
satisfied solely by Agent giving Borrower notice, written or oral, that such
Event of Default has occurred and that Agent intends to enforce its rights in
any Leases and/or any rents, issues and profits assigned herein.

 

(b)           Borrower
shall, from time to time upon request by Agent, execute, acknowledge and
deliver to Agent, in form and substance satisfactory to Agent, separate
assignments of any Leases in order to further evidence the foregoing
assignment.  Agent shall not be obligated
to perform any obligation to be performed by Borrower under any Lease or other
agreement affecting the Property, and Borrower hereby agrees to indemnify Agent
for, and hold Agent harmless from, any and all liability and expenses arising
from any such Lease or other agreement or any assignments thereof, and no
assignment 

 

7

 

of any such Lease or
other agreement shall place the responsibility for the control, care,
management or repair of the Property upon Agent, nor make Agent liable for any
negligence or other tortious conduct, whether by Agent or any other Person,
with respect to the management, operation, upkeep, repair or control of the
Property resulting in injury, death, property or other damage or loss of any
nature whatsoever.

 

(c)           Borrower
shall not cancel, amend or otherwise modify the terms and conditions of any
Lease without obtaining Agent’s prior consent; nor shall Borrower accept
payments of rent or the like more than one month in advance without obtaining
Agent’s prior consent.

 

(d)           Agent
may exercise its rights from time to time under this Section 10 without
first commencing foreclosure proceedings against the Property if it so
elects.  Any such election by Agent to
exercise its rights from time to time under this Section 10 shall not
prohibit Agent from simultaneously or thereafter foreclosing upon the Property
or exercising any other rights available to Agent hereunder or at law.

 

11.           Agent’s Right to
Perform Borrower’s Covenants.  If
Borrower shall fail promptly and fully to pay, perform or observe any of the
Obligations, then Agent may, at its option, but without any obligation to do
so, and without waiving or releasing Borrower from any of the Obligations, pay
any Obligation or perform any Obligation or take such other action as Agent
deems necessary or desirable in order to cause such Obligation to be paid,
performed or observed, as the case may be. 
Borrower hereby grants to Agent, and agrees that Agent shall have, the
absolute and immediate right to enter in and upon the Property to such extent
and as often as Agent, in its discretion, deems necessary or desirable for such
purpose.  Agent may pay and expend such
sums of money as Agent, in its discretion, deems necessary for any such
purpose, and Borrower hereby agrees to pay to Agent, on demand, all such sums
so paid or expended by Agent, together with interest thereon from the date of
each such payment or expenditure at the rate (the “Default Rate”) which
is the lesser of (i) the default rate of interest specified in Section 3.1(b) of
the Credit Agreement (or, if there any more than one such default rate, the
highest default rate), or (ii) the maximum interest rate permitted by
law.  Any interest paid under this Section in
excess of the maximum interest rate permitted by law shall be deemed payment in
reduction of the principal amount of the Obligations and the excess, if any,
shall be refunded to Borrower without interest. 
All sums so paid or expended by Agent, and the interest thereon, shall
be added to the Obligations and shall be secured by the lien of this Mortgage.

 

12.           No Claims Against
Agent.  Nothing contained in this
Mortgage shall constitute any consent or request by Agent, expressed or
implied, for the performance of any labor or services or the furnishing of any
materials or other property in respect of the Property, or be construed to
permit the making of any claim against Agent in respect of labor or services or
the furnishing of any materials or other property or any claim that any lien
based on the performance of such labor or services or the furnishing of any
such materials or other property is prior to the lien of this Mortgage.

 

13.           Liens.  This Mortgage is and shall be maintained as a
valid first mortgage lien on the Property subject only to Permitted Liens.  Borrower shall not, directly or indirectly,
create or suffer or permit to be created, or to stand, against the Property or
against the rents, issues and profits therefrom, any lien, charge, mortgage,
deed of trust, adverse claim or other encumbrance other than Permitted Liens; provided, however, that nothing contained
in this Section shall require Borrower to pay any real estate taxes or
other Impositions prior to the time when same are required to be paid under
this Mortgage.  Borrower shall keep and
maintain the Property free from all liens of Persons supplying labor or
materials relating to the construction, alteration, modification or repair of
the Property.  In no event shall Borrower
do or permit to be done, or omit to do or permit the omission of, any act or
thing where such act or omission may impair the security of this Mortgage.

 

8

 

14.           Security Agreement;
Fixture Filing. Borrower, as debtor, grants to Agent on behalf of the
Banks, as secured party, as further security for the Obligations, a security
interest in all existing and future fixtures and all proceeds of the
foregoing.  This Mortgage shall be
effective as a fixture filing and a financing statement for purposes of Article 9
of the Uniform Commercial Code as in effect in the State of Illinois.

 

15.           Default.  The Obligations shall become immediately due
and payable in full at the option of Agent upon the occurrence of any one or
more of the following (an “Event of Default”):  (a) the occurrence of an Event of
Default, as defined in the Credit Agreement; (b) Borrower shall fail to
pay any Imposition on or before the date such Imposition may be paid without
any penalty, interest or other premium; (c) Borrower shall fail to pay
timely any premiums for insurance required under Section 7 or Borrower
shall fail to reimburse Agent on demand for premiums paid by it on the
insurance required under Section 7; (d) Borrower shall directly or
indirectly create, suffer or permit to be created or to stand against the
Property or against the rents, issues and profits therefrom, any lien, security
interest, charge, mortgage, deed of trust or other encumbrance not expressly
permitted herein or in the Credit Agreement without in each instance obtaining
Agent’s prior written consent thereto; (e) Borrower’s default in the
observance or performance of any other covenant of Borrower hereunder (other
than a covenant the performance or observance of which is specifically referred
to elsewhere in this Section 15), which default is not cured within 30
days after Agent gives Borrower notice thereof; (f) Borrower shall sell,
convey, alienate, assign or otherwise transfer the Property, or any part thereof
or interest therein, in any manner, whether voluntary, involuntary, by
operation of law or otherwise, or Borrower shall enter into any agreement,
written or oral, to so sell, convey, alienate, assign or otherwise transfer the
Property, or any part thereof or interest therein; (g) there shall occur a
default or an event of default under any other deed of trust, mortgage or like
real property security instrument which encumbers the Property, or under any
document evidencing any obligation secured thereby, or any foreclosure or
similar proceeding shall commence with respect to the Property; (h) Borrower
shall deliver to Agent any notice terminating or purporting to terminate, or
Borrower shall take any other action to terminate or purporting to terminate,
the operation of this Mortgage as security for any future advances or future
obligations; or (i) the filing of any action to condemn, acquire by
eminent domain or otherwise take any part of the Premises or Building which, in
Agent’s determination, materially and adversely affects the use or intended use
of the Property as a whole or otherwise materially and adversely affects
Borrower’s business prospects.

 

16.           Notice Upon
Acceleration; Application of Payments. 
Whenever Agent in this Mortgage or in the other Credit Documents is
given the option to accelerate the maturity of all or part of the Obligations,
Agent may, to the extent permitted by law, do so without presentment, protest,
notice to or demand upon Borrower.  Agent
shall have the sole and exclusive right, and Borrower irrevocably waives any
right, to direct or redirect the application of any monies received by Agent on
account of the Obligations (whether such monies are received before or after
the occurrence of an Event of Default, in the ordinary course of affairs, by
acceleration, maturity or otherwise) against the Obligations in such manner as
Agent may deem advisable, from time to time, notwithstanding any entry by Agent
upon any of its books and records.

 

17.           Appointment of
Receiver.  If an Event of Default
exists, or if any action shall be commenced to foreclose this Mortgage, without
obligation to do so, Agent, to the extent permitted by applicable law, may
apply for the appointment of a receiver of the rents, issues and profits of the
Property without notice or demand, and shall be entitled to the appointment of
such receiver as a matter of right, without consideration of the value of the
Property as security for the amounts due to Agent or the solvency of any Person
liable for the payment of such amounts.

 

18.           Foreclosure.  (a)  If an Event of Default exists,
Agent may, to the extent permitted by law, institute an action of judicial
foreclosure, or take such other action as the law may allow, at law or in 

 

9

 

equity, to enforce this
Mortgage and to realize upon the Property or any other security which is herein
or elsewhere provided for, and to proceed to final judgment and execution for
the entire unpaid balance of the Obligations at the rate stipulated herein or
in the Credit Agreement or the other Credit Documents, as the case may be, to
the date of default, and thereafter at the Default Rate, together with, to the
extent permitted by applicable law, all other sums secured by this Mortgage, all
costs of suit, and interest at the Default Rate on any judgment obtained by
Agent from and after the date of any judicial sale of the Property (which may
be sold in one parcel or part or in such parcels or parts, manner or order as
Agent shall elect) until actual payment is made to Agent on the full amount due
Agent.  Agent may foreclose or otherwise
realize upon one parcel or any other part of the Property, on one or more
occasions, without releasing this Mortgage or precluding the further
foreclosure or other realization hereunder of any other parcels or parts of the
Property not so foreclosed or realized upon. 
Failure to join or to provide notice to tenants or any other Persons as
defendants or otherwise in any foreclosure action or suit shall not constitute
a defense to such foreclosure or other action. 
Upon any foreclosure sale, whether by virtue of judicial proceedings or
otherwise, Agent or any Bank may bid and purchase the Property or any part
thereof or interest therein, and upon compliance with the terms of the sale,
may hold, retain, possess and dispose of the same in its own absolute right,
without further accountability.

 

(b)           If any provision of
this Mortgage is inconsistent with any applicable provision of the Illinois
Mortgage Foreclosure Law, 735 ILCS 5/15-101, et seq.,
as amended from time to time (the “Act”), the provisions of the Act
shall take precedence over the provisions of this Mortgage, but the Act shall
not invalidate or render unenforceable any other provision of this Mortgage that
can be fairly construed in a manner consistent with the Act.  Without limiting any of Agent’s or the Banks’
rights, remedies, powers and authorities provided in this Mortgage or
otherwise, and in addition to all of such rights, remedies, powers and authorities,
Agent shall also have all rights, remedies, powers and authorities permitted to
the holder of a mortgage under the Act. 
If any provision of this Mortgage shall grant to Agent any rights,
remedies, powers or authorities upon default of Borrower or otherwise which are
more limited than what would be vested in Agent under the Act in the absence of
such provision, Agent shall have such rights, remedies, powers and authorities
that would be otherwise vested in it under the Act.  Without limiting any other provision of this
Mortgage, all expenses incurred by Agent to the extent reimbursable under 735
ILCS 5/15-1510, 5/15-1512 or any other provision of the Act, whether incurred
before or after any judgment of foreclosure, shall be added to the Obligations
and included in the judgment of foreclosure.

 

19.           Possession of
Property.  To the extent permitted by
applicable law, if an Event of Default exits, Agent and its agents, designees
or assigns are authorized to (i) take possession of the Property, with or
without legal action; (ii) lease the Property; (iii) collect all
rents, issues and profits therefrom, with or without taking possession of the
Property; and (iv) after deducting all costs of collection and
administration expenses, apply the net rents, issues and profits to the payment
of Impositions, insurance premiums and all other carrying charges (including,
but not limited to, agents’ compensation and fees and costs of counsel and
receivers) and to the maintenance, repair or restoration of the Property, or on
account and in reduction of the Obligations, in such order and amounts as
Agent, in Agent’s sole discretion, may elect. 
Agent shall be liable to account only for rents, issues and profits
actually received by it.

 

20.           Waivers.  To the extent permitted by applicable law,
Borrower hereby irrevocably waives and releases:  (i) any right of redemption after the
date of any sale of the Property upon foreclosure, whether statutory or
otherwise, in respect of the Property now or hereafter in force (irrespective
of whether Agent or any other Person purchases the Property at such
foreclosure); (ii) the benefit of any and all valuation and appraisement
laws now or hereafter in force; (iii) all exemption laws whatsoever and
all moratoriums, extensions or stay laws or rules, or orders of court in the
nature of either of them, now or hereafter in force; and (iv) any right to
have the Property marshaled upon any foreclosure of this Mortgage.  Without limiting the generality of the
foregoing, (a) Borrower waives all rights of redemption 

 

10

 

with
respect to the Property or this Mortgage pursuant to 735 ILCS 5/15-1601(b), and
(b) Borrower waives all rights of reinstatement under 735 ILCS 5/15-1602
to the fullest extent permitted by law.

 

21.           Expenses of Agent.  To the extent permitted by applicable law,
all costs and expenses paid or incurred by Agent and/or any of the Banks,
including, without limitation, attorneys’ fees, in any action, proceeding or
dispute of any kind in which Agent and/or any of the Banks is made a party or
appears as a plaintiff or defendant, affecting Agent, any of the Banks, this
Mortgage, the other Credit Documents and/or the Property, including, but not
limited to, the enforcement of this Mortgage, any condemnation action involving
the Property, any action to protect the security hereof, or any case or
proceeding under Title 11 of the United States Code shall be added to and
included in the Obligations and shall be secured by this Mortgage and, upon
demand, shall be immediately due from Borrower. Without limiting the generality
of the foregoing, if this Mortgage shall be foreclosed, or if any of the other
Credit Documents are placed in the hands of an attorney for collection or is
collected through any court, including any bankruptcy court, Borrower, to the
extent permitted by applicable law, shall pay to Agent the attorneys’ fees,
court costs, disbursements and other costs incurred (irrespective of whether
litigation is commenced in pursuance thereof) in collecting or attempting to
collect the Obligations or enforcing or defending Agent’s rights hereunder, or
under the other Credit Documents, or under any other collateral securing the
Obligations, and all allowances provided by law, to the extent allowed by the
laws of the state in which the Property is located, or any state in which any
of such other collateral for the Obligations is situated, or other applicable
law.  All of Borrower’s obligations under
this Section shall survive the foreclosure, release or other termination
of this Mortgage, the satisfaction of the other Obligations secured hereby, and
any merger of this Mortgage into any judgment or the like, whether pursuant to
foreclosure or otherwise.

 

22.           Discontinuance of Action.  Agent may from time to time, to the extent
permitted by applicable law, take action to recover any sums, whether interest,
principal or any other obligation or sums, required to be paid under this
Mortgage or the other Credit Documents, as the same become due, without
prejudice to the right of Agent thereafter to bring an action of foreclosure,
or any other action, for a default existing when such earlier action was
commenced.  If Agent shall have proceeded
to enforce any right under this Mortgage or the other Credit Documents, and
such proceedings shall have been discontinued or abandoned for any reason, then
in every such case Borrower and Agent shall be restored to their former
positions and the rights, remedies and powers of all parties hereto shall
continue as if no such proceedings had been taken.

 

23.           Taxes.  Upon passage after the date of this Mortgage
of any law of the United States, the State of Illinois or any other
governmental entity which deducts from the value of real property, for purposes
of taxation, any indebtedness secured by mortgages or which changes in any way
the laws for the taxation of mortgages or debts secured by mortgages for State
or local purposes or the manner of the collection of any such taxes, and which
imposes a tax, either directly or indirectly, on this Mortgage or all or any
part of the sum secured hereby or the interest thereon, Agent may declare the
whole of the Obligations and the interest accrued thereon, due on a date to be
specified by not less than 30 days’ written notice to Borrower; provided, however, that such declaration
shall be ineffective if Borrower is permitted by law to pay such tax in
addition to all other payments required hereunder, without any penalty or
charge thereby accruing to Agent, and if Borrower pays such tax within such 30
day period.  Borrower shall pay any taxes
except income taxes imposed on Agent or any Bank relating to this Mortgage.

 

24.             Recording and Other Fees; Further
Assurances.  Borrower shall pay all
recording and filing fees, all recording taxes and all other costs and expenses
in connection with the preparation, execution and recordation and other manner
of perfection of this Mortgage and any other Credit Documents, and shall
reimburse Agent on demand for all costs and expenses of any kind incurred by or
on behalf of Agent in connection therewith. 
Borrower agrees to execute and deliver promptly such 

 

11

 

instruments
and other documents, and promptly to take such action or promptly refrain from
taking such action, as Agent may request, from time to time, to evidence,
create, perfect, continue or otherwise assure Agent of the real and personal
property security interests granted, or purported to be granted, to or for the
benefit of Agent hereunder and all other rights and benefits granted, or
purported to be granted, to or for the benefit of Agent hereunder; all at the
sole cost and expense of Borrower. 
Without limiting the generality of the foregoing, Borrower shall, at any
time on request of Agent, execute or cause to be executed and shall deliver
financing statements, continuation statements, security agreements, or the
like, in respect of any Property and Borrower shall pay all filing fees,
including, without limitation, fees for filing continuation statements, in
connection with such financing statements.

 

25.           No Waiver.  Any failure by Agent to insist upon the
strict performance by Borrower of any of the Obligations shall not be deemed to
be a waiver of any of such Obligations, and Agent, notwithstanding any such
failure, may thereafter insist upon the strict performance by Borrower of any
and all of the Obligations.

 

26.           No Release.  Borrower and any other Person now or
hereafter obligated for the payment or performance of all or any part of the
Obligations shall not be released from paying and performing such Obligations
and the lien of this Mortgage shall not be affected by reason of (i) the
failure of Agent to comply with any request of Borrower, or of any other Person
so obligated, to take action to foreclose this Mortgage or otherwise enforce
any of the provisions of this Mortgage or of any of the Obligations secured by
this Mortgage; (ii) the release, regardless of consideration, of the
obligations of any Person or Persons liable for payment or performance of the
Obligations or any part thereof; or (iii) any agreement or stipulation
extending the time of payment or modifying the terms of any of the Credit
Documents and in the event of such agreement or stipulation, Borrower and all
such other Persons shall continue to be liable under such Credit Documents, as amended
by such agreement or stipulation, unless expressly released and discharged in
writing by Agent.

 

27.           Release of Collateral.  Agent may release or partially release,
regardless of consideration, the obligation of any Person liable for payment of
any of the Obligations secured hereby, or may release any part of the Property
or any other collateral now or hereafter given to secure the payment of the
Obligations or any part thereof, without impairing, reducing or otherwise
affecting the obligations of Borrower under the Credit Agreement or any other
Credit Documents, the remainder of the security of this Mortgage or the
priority of the rights created by this Mortgage.

 

28.           Rights Cumulative.  The rights and remedies provided for in this
Mortgage, or which Agent may have otherwise, at law or in equity, shall be
distinct, separate and cumulative and shall not be deemed to be inconsistent
with each other, and none of them, whether or not exercised by Agent, shall be
deemed to be in exclusion of any other, and, to the extent permitted by law,
any two or more of all such rights and remedies may be exercised at the same
time.

 

29.           Severability.  If any term or provision of this Mortgage or
the application thereof to any Person or circumstance shall to any extent be
invalid or unenforceable, the remainder of this Mortgage, or the application of
such term or provision to Persons or circumstances other than those as to which
it is invalid or unenforceable, shall not be affected thereby, and each term
and provision of this Mortgage shall be valid and enforceable to the fullest
extent permitted by law.  If any payments
(including, without limitation, any interest payments) required to be made
hereunder or under the other Credit Documents shall be in excess of the amounts
allowed by law, the amounts of such payments shall be reduced to the maximum
amounts allowed by law.  Furthermore, all
rights, powers and remedies provided in this Mortgage may be exercised only to
the extent that the exercise thereof does not violate any applicable provisions
of law and are intended to be modified to the extent necessary to comply with
applicable law and are intended to be limited to the extent necessary so that
they will not render this Mortgage invalid, 

 

12

 

unenforceable
or not entitled to be recorded, registered or filed under the provisions of any
applicable law.

 

30.           Notices.  All notices, demands, consents, approvals and
requests given or required to be given by any party hereto to any other party
hereto shall be in writing and shall be given in accordance with the terms and
provisions of the Credit Agreement.

 

31.           Indemnification Against
Liabilities.  Borrower shall protect,
indemnify, hold harmless and defend Agent and the Banks from and against any
and all liabilities, obligations, claims, damages, penalties, causes of action,
costs and expenses (including, without limitation, attorneys’ fees and
expenses) imposed upon incurred by or asserted against Agent or any of the
Banks by reason of (a) ownership of an interest in the Property, (b) any
accident or injury to or death of Persons or loss of or damage to or loss of
the use of property occurring on or about the Property, or the adjoining
sidewalks, curbs, vaults and vault spaces, if any, streets, alleys or ways, (c) any
use, non-use or condition of the Property, or the adjoining sidewalks,
curbs, vaults and vault spaces, if any, streets, alleys or ways, (d) any
failure on the part of Borrower to perform or comply with any of the terms of
this Mortgage or the other Credit Documents, (e) performance of any labor
or services or the furnishing of any materials or other property in respect of
the Property made or suffered to be made by or on behalf of Borrower, (f) any
acts or omissions on the part of Borrower or any of its agents, contractors,
lessees, licensees or invitees, or (g) any work in connection with any
alterations, changes, new construction or demolition of the Property; in each
case irrespective of whether any such liabilities, obligations, claims,
damages, penalties, causes of actions, costs or expenses are, caused by, or
otherwise arise out of, in whole or in part, Agent’s or any Bank’s negligence
or other tortious conduct (other than any gross negligence or willful misconduct
by Agent of any Bank), whether active or passive.  Borrower will pay and hold Agent and the
Banks harmless against any and all liability with respect to any intangible
personal property tax or similar imposition of the state in which the Property
is located or any subdivision or authority thereof now or hereafter in effect,
to the extent that the same may be payable by Agent or any Bank in respect of
this Mortgage, the other Credit Documents or the Obligations.  All amounts payable to Agent or any Bank under
this Section shall be payable on demand and shall be deemed Obligations
secured by this Mortgage.  If any action,
suit or proceeding is brought against Agent or any Bank by reason of any such
occurrence, Borrower, upon request of Agent will, at Borrower’s expense, resist
and defend such action, suit or proceeding or cause the same to be resisted or
defended by counsel designated by Borrower and approved by Agent.  All of Borrower’s obligations under this Section shall
survive the foreclosure, release or other termination of this Mortgage and the
satisfaction of the Obligations, and any merger of this Mortgage into any
judgment or the like, whether pursuant to foreclosure or otherwise.

 

32.           Environment.  (a)  Borrower shall comply with all
applicable laws (whether statutory, common law or otherwise), rules,
regulations, orders, permits, licenses, ordinances, judgments or decrees of all
governmental authorities (whether federal, state, local or otherwise),
including, without limitation, all laws regarding public health or welfare,
environmental protection, water or air pollution, composition of products,
underground storage tanks, toxic substances or chemicals, solid and special
wastes, hazardous wastes, substances, material or chemicals, waste, used, or recycled
oil, asbestos, occupational health and safety, nuisances, trespass, and
negligence.

 

(b)           Neither Agent nor any Bank shall assume or be deemed to
assume any responsibility, liability, or obligation with respect to compliance
with any federal, state, or local environmental law, rule, regulation, order,
permit, license, ordinance, judgment or decree; provided, however, that in the event of the imposition or
assumption for any reason whatsoever of any such responsibility, liability, or
obligation, Borrower agrees to indemnify and hold Agent and the Banks harmless
from and against any and all claims, liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements, of any
kind or nature whatsoever, including without 

 

13

 

limitation, attorneys’ and experts’ fees, which may
be imposed on, incurred by or asserted against it in any way relating to or
arising from the Obligations, this Mortgage, the other Credit Documents and/or
the Property.  All of Borrower’s
obligations under this Section shall survive the foreclosure, release or
other termination of this Mortgage and the satisfaction of the Obligations, and
any merger of this Mortgage into any judgment or the like, whether pursuant to
foreclosure or otherwise.

 

33.           Certain Definitions.  The following terms shall, for purposes of
this Mortgage, have the respective meanings herein specified unless the context
otherwise requires:  (a)  “Agent”
means the Agent herein named and any subsequent mortgagee under this Mortgage,
and its, his, her or their respective successors, assigns, heirs and personal
representatives.  (b)  “Bank”
means each Bank referred to in the Credit Agreement and, subject to the terms
and provisions of the Credit Agreement, its successors and assigns, and
likewise includes, except if otherwise provided in the Credit Agreement, any
swing line lender, letter of credit issuer, swap provider or other credit or
financial service provider for whom, pursuant to the terms of the Credit
Agreement, Agent is to act as collateral agent or the like.  (c)  “Borrower” means the
Borrower herein named and any subsequent owner or owners of the Property and
its, his, her or their respective successors, assigns, heirs and personal
representatives.  (d)  “Building”
means all of the Building described herein including any part thereof.  (e)  “Building Equipment” means
all of the Building Equipment described herein including any part thereof.  (f)  “Person” means an individual,
corporation, partnership, trust, unincorporated organization or government, or
any agency or political subdivision thereof, or any other legal entity.  (g)  “Premises” means all of the
Premises described herein including any part thereof.  (h)  “Property” means all of the
Property described herein including any part thereof.

 

34.           Successors and Assigns.  The terms, covenants and provisions of this
Mortgage shall apply to and be binding upon Borrower and all subsequent owners
and other Persons who have an interest in the Property, and shall inure to
benefit of Agent, the successors and assigns of Agent, and all subsequent
holders of this Mortgage, but the provisions of this Section shall not be
construed to modify the provisions of Section 15(g).

 

35.           Illinois Collateral Protection Act.  Pursuant to the requirements of the Illinois
Collateral Protection Act, Borrower is hereby notified as follows:  Unless Borrower provides Agent with evidence
of the insurance coverage required by this Mortgage or the other Credit
Documents, Agent may purchase insurance at Borrower’s expense to protect Agent’s
interest in the Property.  This insurance
may, but need not, protect Borrower’s interests.  The coverage that Agent purchases may not pay
any claim that Borrower may make or any claim that is made against Borrower in
connection with the Property.  Borrower
may cancel any insurance purchased by Agent, but only after providing Agent
with evidence that Borrower has obtained insurance as required by this Mortgage
and the other Credit Documents.  If Agent
purchases insurance for the Property, Borrower will be responsible for the
costs of that insurance, including interest and any other charges that Agent
may impose in connection with the placement of such insurance, until the effective
date of the cancellation or expiration of such insurance.  Without limitation of any other provision of
this Mortgage, the cost of such insurance shall be added to the Obligations
secured hereby.  The cost of such
insurance may be more than the cost of insurance Borrower may be able to obtain
on its own.

 

36.           Related Obligations.  If and to the extent the Credit Agreement at
any time authorizes Agent to act as a collateral agent or the like for the
benefit of any Bank or any affiliate of any Bank that may issue interest rate
swaps or other hedging instruments to or for the benefit of Borrower, the
Obligations secured hereby shall include Borrower’s existing and future
obligations with respect to any such interest rate swaps and/or other hedging
instruments.

 

14

 

37.           Miscellaneous. Borrower
further agrees as follows:  (a) 
This Mortgage cannot be changed, waived, discharged or terminated orally but
only by an agreement in writing, signed by the party against whom enforcement
of the change, waiver, discharge or termination is sought.  (b)  This Mortgage shall be construed
without regard to any presumption or rule requiring construction against
the party causing such instrument or any portion thereof to be drafted.  (c)  All terms and words used in this
Mortgage, regardless of the number or gender in which they are used, shall be
deemed to include any other number and any other gender as the context may
require.  (d)  If there shall be
more than one Borrower, the representations, warranties, covenants and other
obligations of Borrower hereunder shall be the joint and several
representations, warranties, covenants and other obligations of each and every
Borrower.  Whenever the terms of this
Mortgage prohibit Borrower from doing or permitting to be done, whether
voluntarily or otherwise, any act or event, any such negative covenants shall
apply to each and every Borrower and the failure of any one Borrower in respect
thereof shall be deemed a default of such negative covenant notwithstanding
that any other Borrower may not be in default of such negative covenant.  (e)  The Section headings in this
Mortgage and any index at the beginning of this Mortgage are for convenience of
reference only and shall not limit or otherwise affect any of the terms
hereof.  (f)  All covenants
contained herein shall run with the Property until the Obligations have been
fully paid and performed.  (g)  Time
is of the essence in the payment and performance by Borrower of the Obligations.  (h)  This Mortgage shall be governed by
the laws of the State of Illinois, without regard to any choice of law rule thereof
which gives effect to the laws of any other jurisdiction.

 

[signature page(s) to follow]

 

15

 

IN WITNESS WHEREOF, this
Mortgage has been duly executed by Borrower and delivered to Agent as of the
day and year first above written.

 

 

	
   

  	
  MGP
  INGREDIENTS, INC., a Kansas corporation, as 

  successor to and survivor of Midwest Grain Products of 

  Illinois, an Illinois general partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert Zonneveld

  
	
   

  	
   

  	
   Name:
  Robert Zonneveld

  
	
   

  	
   

  	
   Title:
  V.P Finance & CFO

  

 

 

AGREED
TO:

 

COMMERCE
BANK, N.A., as Agent

 

 

	
  By:
  

  	
   Wayne
  C. Lewis

  	
   

  
	
   

  	
  Name:
  Wayne C. Lewis

  	
   

  
	
   

  	
  Title:
  Vice President

  	
   

  

 

16

 

STATE
OF  Kansas)

 

) SS.

COUNTY
OF Atchison)

 

 

The
foregoing instrument was acknowledged before me this Setember 4, 2008, by Robert
Zonneveld, of MGP INGREDIENTS, INC., a Kansas 
corporation, on behalf of the corporation.

 

 

	
   

  	
  /s/
  Marta L. Myers Notary Public

  
	
  [Seal]

  	
   

  
	
   

  	
  My
  Commission expires: 01/03/2010

  

 

 

STATE
OF Missouri           )

 

) SS.

COUNTY
OF Jackson         )

 

 

The
foregoing instrument was acknowledged before me this September 5, 2008, by
Wayne C. Lewis, of COMMERCE BANK, N.A., a national association, on behalf of
the association.

 

 

	
   

  	
  /s/
  Julie A. England Notary Public

  
	
  [Seal]

  	
   

  
	
   

  	
  My
  Commission expires: 4/2/11

  

 

17

 

Exhibit A

 

(legal description of Premises)

 

 

Exhibit B

 

(Permitted Liens)

 

	
  1.

  	
   

  	
  Taxes
  and assessments for the calendar year 2008 and subsequent years, provided
  that payment of such taxes and assessments is not delinquent.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Easement
  in favor of Central Illinois Light Company recorded in Book 1151,
  Page 213.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Easement
  in favor of Central Illinois Light Company recorded in Book 954,
  Page 269.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Easement
  recorded September 2, 1964 in Volume 711, Page 241.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Easement
  in favor of Central Illinois Light Company and Middle States Telephone Company
  recorded in Volume 700, Page 619.

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Easement
  in favor of Central Illinois Light Company recorded as Document
  No. 9615914.

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Easement
  in favor of Central Illinois Light Company recorded in Book 1033,
  Page 331.

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Easement
  in favor of Central Illinois Light Company recorded in Book 853,
  Page 474.

  
	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Easement
  in favor of Central Illinois Light Company recorded in Volume 700,
  Page 383.

  
	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Terms
  and provisions contained in Warranty Deed recorded in Book 2401,
  Page 300, relating to rights of others in the railroad rights of way on
  the premises, the rights of others in the railroad siding tract, the rights
  of the public and the City of Pekin, and certain storage contracts.Exhibit
10.1

 

AMENDMENT NO. 3 TO
REGISTRATION RIGHTS AGREEMENT

 

This
AMENDMENT NO. 3 TO REGISTRATION RIGHTS AGREEMENT (this “Amendment”),
dated as of September 12, 2008, is entered into by and among Broadwind
Energy, Inc. (f/k/a Tower Tech Holdings Inc.), a Delaware corporation (the
“Company”) and the undersigned
stockholders (the “Stockholders”) of the
Company.

 

RECITALS

 

A.            The Registration Rights Agreement
dated as of March 1, 2007, as amended October 19, 2007 and July 18,
2008, by and among the Company and the Stockholders (the “Registration
Rights Agreement”) provides that pursuant to Section 4.3,
it may be amended only with the written consent of the Company and the
Designated Holders of a majority of the Registrable Secruities.

 

B.            Pursuant to Section 2.2(a) of
the Registration Rights Agreement, the Company is required to file a
registration statement (the “Registration Statement”)
on Form S-3 (or such other appropriate registration form of the SEC) to
register shares of Registrable Securities held by the Stockholders no later
than September 15, 2008 (the “Registration Rights”).

 

C.            The Company and the Stockholders
desire to amend the Registration Rights Agreement, as set forth herein and
subject to the terms of this Amendment, to extend the period of time that may
pass before the Company is required to file its initial Registration Statement
pursuant to Section 2.2(a) of the Registration Rights Agreement.

 

D.            The Stockholders are holders of
Registrable Securities and are entitled to the Registration Rights.

 

E.             Capitalized terms used and not
defined in this Amendment are defined in the Registration Rights Agreement.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants
and agreements hereinafter contained, and for other good and valuable
consideration, the receipt and sufficiency of which is acknowledged, intending
to be legally bound, the parties hereto hereby agree as follows:

 

ARTICLE 1

AMENDMENT TO THE REGISTRATION RIGHTS AGREEMENT

 

1.1           Amendments to the Registration
Rights Agreement.  Clause (a) of
the definition of “Filing Date” set forth in Article I of the Registration
Rights Agreement is hereby amended by deleting the two references to “September 15,
2008” and replacing them with “October 31, 2008.”

 

ARTICLE 2

MISCELLANEOUS

 

2.1           Effectiveness.  This Amendment shall be deemed effective as
of the date first written above, as if executed by all parties hereto on such
date.  Except as specifically modified by
the terms set forth herein, the parties hereto acknowledge and agree that the
Registration Rights Agreement is in full force and effect.  All references in the Registration Rights
Agreement to the “Agreement” shall be 

 

 

deemed
to refer to the Registration Rights Agreement as amended October 19, 2007,
July 18, 2008 and as amended by this Amendment.

 

2.2           Further Assurances.  Each party agrees that, from time to time
upon the written request of the other party, it will execute and deliver such
further documents and do such other acts and things as the other party may
reasonably request to effect the purposes of this Amendment.

 

2.3           Severability.  Whenever possible, each provision of this
Amendment shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Amendment shall be held to
be prohibited by or invalid under applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Amendment.

 

2.4           Counterparts.  This Amendment may be executed in one or more
counterparts each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

2.5           Governing Law.  This Amendment shall be governed by and
construed in accordance with the laws of the State of Delaware, without regard
to the conflicts of laws rules or provisions.

 

2.6           Captions.  The captions, headings and arrangements used
in this Amendment are for convenience only and do not in any way limit or
amplify the terms and provisions hereof.

 

2.7           No Prejudice.  The terms of this Amendment shall not be
construed in favor of or against any party on account of its participation in
the preparation hereof.

 

2.8           Words in Singular and Plural Form.  Words used in the singular form in this
Amendment shall be deemed to import the plural, and vice versa, as the tense
may require.

 

[Signature page follows]

 

2

 

IN WITNESS WHEREOF, the
undersigned have executed this Amendment No. 3 to Registration Rights
Agreement as of the date and year set forth above.

 

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  BROADWIND
  ENERGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  J. Cameron Drecoll

  
	
   

  	
   

  	
  J.
  Cameron Drecoll, Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STOCKHOLDERS:

  
	
   

  	
   

  
	
   

  	
  TONTINE
  CAPITAL PARTNERS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Tontine
  Capital Management, L.L.C., its general

  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Jeffrey L. Gendell

  
	
   

  	
   

  	
   

  	
  Jeffrey
  L. Gendell, as managing member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TONTINE PARTNERS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Tontine
  Management L.L.C., its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Jeffrey L. Gendell

  
	
   

  	
   

  	
   

  	
  Jeffrey
  L. Gendell, as managing member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TONTINE
  CAPITAL OVERSEAS MASTER FUND,

  L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Tontine
  Capital Overseas GP, L.L.C., its general 

  partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Jeffrey L. Gendell

  
	
   

  	
   

  	
   

  	
  Jeffrey
  L. Gendell, as managing member

  
					

 

[Signature
page to Amendment No. 3 to Registration Rights Agreement]

 

S-1

 

	
   

  	
  TONTINE
  25 OVERSEAS MASTER FUND, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Tontine
  Capital Management, L.L.C., its general

  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Jeffrey L. Gendell

  
	
   

  	
   

  	
   

  	
  Jeffrey L. Gendell, as managing member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TONTINE
  OVERSEAS FUND, LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Tontine
  Overseas Associates, L.L.C., its

  investment advisor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Jeffrey L. Gendell

  
	
   

  	
   

  	
   

  	
  Jeffrey L. Gendell, as managing member

  

 

[Signature
page to Amendment No. 3 to Registration Rights Agreement]

 

S-2

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