Document:

Exhibit

Exhibit 10.3

 
This space reserved for Recorder’s use only

Property Address:  64 Jackson Road, Devens, Massachusetts
This Subordinated Second Mortgage is subject to an Intercreditor, Subordination and Standstill Agreement of even date herewith between Mortgagee and the East Boston Savings Bank.  Any assignment, transfer or conveyance of this Subordinated Second Mortgage shall be subject to the aforesaid Intercreditor, Subordination and Standstill Agreement referenced above.

SUBORDINATED SECOND MORTGAGE
JACKSON 64 MGI, LLC, a Delaware limited liability company having an address of 133 Pearl Street, Boston, Massachusetts 02110 (“Mortgagor”), for consideration paid, grants the Premises to ASC DEVENS, LLC, a Delaware limited liability company having an address of 114 East Main Street, Ayer, Massachusetts 01432 (“Mortgagee”), with MORTGAGE COVENANTS, 

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to secure the payment, performance and observance of all the Obligations.  The term “Obligations” means all of the debts, liabilities, agreements and other obligations of Mortgagor and every other party to the Loan Documents due Mortgagee, whether direct or indirect, absolute or contingent, joint or several, due or to become due, now existing or arising in the future.  The term “Loan Documents” includes this Second Mortgage (“Mortgage”), that certain Subordinated Secured Commercial Promissory Note of Mortgagor payable to Mortgagee in the original principal amount of $6,000,000 of even date herewith, that certain Subordinated Assignment of Leases and Rents granted by Mortgagor to Mortgagee of even date herewith, and all other documents delivered to Mortgagee in connection with this Mortgage by Mortgagor or by others and all amendments, restatements, modifications, extensions and renewals thereof.
This Mortgage is subject to an Intercreditor, Subordination and Standstill Agreement of even date herewith between Mortgagee and the East Boston Savings Bank. Any assignment, transfer or conveyance of this Mortgage shall be subject to said Intercreditor, Subordination and Standstill Agreement.
The term “Premises” includes the following, all of which are subject to this Mortgage:
(i)    The land in Devens, Worcester County, Massachusetts on Jackson Road, more particularly described in Exhibit A attached;
(ii)    All buildings, structures and improvements now or at any time in the future on the land;
(iii)    All Fixtures, which term means (1) all goods, equipment, fixtures, building materials and tangible personal property (except (a) consumable goods, (b) equipment of Mortgagor which is not affixed to the real estate and (c) personal property owned by tenants of the Premises which the tenants are entitled to remove by law or agreement) now or in the future located on, attached to or incorporated in the construction of and used in connection with the operation of the Premises including, but not limited to, all sidetracks, boilers, tanks, pumps, furnaces, radiators, alarm systems, cooling towers, compressors, elevators, escalators, cranes and all heating, lighting, power, plumbing, electrical, communications, ventilating, refrigerating, air conditioning, sprinkler, incinerating and building service equipment, and (2) all related accessories, additions and replacements;  
(iv)    All right, title and interest of Mortgagor in all easements, rights (including mineral, air and water rights), privileges, appurtenances, licenses, permits and governmental approvals, now or in the future pertaining to the Premises; and
(v)    All rents, income, profits, royalties or accounts receivables from the Premises.
Section 1 - General Covenants of Mortgagor.  Until the Obligations are paid, performed and observed in full, in addition to the STATUTORY CONDITION, Mortgagor agrees as follows:
1.1    Insurance.  Subject to the rights of the holder of the Prior Mortgage, to keep all buildings, improvements and Fixtures which are part of the Premises insured against direct risk 

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of physical loss in an amount not less than 100% of their replacement cost.  Mortgagor agrees to keep all buildings and improvements under construction insured under a Builder’s Risk, Completed Value, non-reporting form of policy which provides coverage for “completion and/or premises occupancy.”  All insurance will (i) be written with a standard mortgagee clause by companies of recognized responsibility authorized to write such insurance in Massachusetts and having a Best’s financial rating of B or better, (ii) be on forms reasonably satisfactory to Mortgagee, (iii) and subject to the rights of the holder of the Prior Mortgage, be payable in case of loss to Mortgagee, as its interest may appear, and (iv) contain a provision that it may not be cancelled or modified without at least thirty (30) days prior written notice to Mortgagee.  Mortgagor agrees to deliver to Mortgagee, when requested, satisfactory evidence of (a) all existing insurance policies, (b) new policies for insurance about to expire at least thirty (30) days before the expiration and (c) payment of all insurance premiums.  
1.2    Taxes.  To pay or cause to be paid, before the last day on which payment may be made without penalty or interest (the “Payment Date”) all taxes (or payments in lieu of taxes), special or general assessments, water and sewer charges and other municipal charges with respect to the Premises (“Taxes”) and to furnish evidence of payment to Mortgagee.
1.3    Mortgages and Encumbrances.  To keep the title to the Premises free of all mortgages and other encumbrances except for (i) the lien for Taxes not yet due, (ii) the first mortgage of the East Boston Savings Bank (the “Prior Mortgage”), and (iii) encumbrances assented to by Mortgagee, regardless of whether the mortgage or encumbrance has priority over this Mortgage.  
1.4    Maintenance and Use of Premises.  To maintain the Premises in as good condition as they now are or may be in the future, reasonable wear and tear excepted.  Mortgagor agrees not to permit (i) removal, demolition or other waste of the Premises, (ii) lapse or revocation of any license, permit or other governmental authorization issued with respect to the Premises, (iii) material change in the structure or use of the Premises or (iv) violation of a law or ordinance affecting the Premises or its use.  At Mortgagee’s request, Mortgagor agrees to provide evidence of compliance with the provisions of this or any other covenant in the Loan Documents.
1.5    Leases.  Subject to the rights of the holder of the Prior Mortgage, to deliver to Mortgagee copies of all leases, licenses, franchises and other agreements under which a person occupies any part of the Premises (“Leases”).  Subject to the rights of the holder of the Prior Mortgage, Mortgagor assigns the Leases and all rent, income, fees and other amounts due Mortgagor under the Leases (“Rents”) to Mortgagee as additional security for the Obligations.  Mortgagor grants to Mortgagee full power, as irrevocable attorney-in-fact of Mortgagor, to execute and deliver assignments of the Leases and the Rents to itself, to any future holder of this Mortgage or to any person claiming title to the Premises as a result of foreclosure proceedings.  When an Event of Default exists, Mortgagee may, without waiving any of its other rights, collect the Rents and enforce all obligations of tenants under the Leases without taking possession of the Premises and without performing any obligations of the landlord under the Leases.

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1.6    Environmental Laws and Compliance.  To comply with and to cause the Premises to comply with all applicable Federal, state and local laws, codes, ordinances, rules, regulations and interpretations now or in the future existing, and all applicable orders of administrative agencies including, but not limited to, the Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery Act of 1976, the Superfund Amendments and Reauthorization Act of 1986 and Massachusetts General Laws, Chapters 21C and 21E, relating to the environment, health, safety, sanitation, underground storage tanks and the “release or threat of release” of Hazardous Materials (the “Environmental Laws”).  The term “Hazardous Materials” means (i) lead paint, asbestos, radon and (ii) “oil”, “hazardous materials”, “hazardous wastes” and “hazardous substances” as those terms are defined in the Environmental Laws.
1.6.1    Copies of Notices.  To give to Mortgagee, immediately, copies of all notices, reports, citations and other communications given or received by Mortgagor in connection with any Environmental Laws whether or not relating to the Premises.
1.7    Indemnification.  To defend, indemnify and hold Mortgagee and its directors, officers, agents and employees harmless against all claims, losses and liabilities, including reasonable attorneys’ fees and costs of litigation, incurred by Mortgagee on account of (i) Mortgagor’s failure to comply with Environmental Laws, or (ii) a release or threat of release of Hazardous Materials on the Premises, subject, however, to Mortgagee’s obligations pursuant to Section 12.6 of that certain Purchase and Sale Agreement by and between Mortgagor and Mortgagee for the Premises, which obligations shall expire on the two year anniversary of the date of this Mortgage.
1.8    Alienation.  Not to cause or permit, directly or indirectly, whether voluntarily or by operation of law, (i) title to all or part of the Premises to become vested in a person other than Mortgagor, or (ii) all or part of the Premises to become subject to the provisions of Massachusetts General Laws, Chapter 183A relating to condominiums, or (iii) the transfer of a controlling interest in the legal entity that is Mortgagor, excluding estate planning transfers provided that Steven Goodman remains the Manager of the Mortgagor. If any of the changes described above occur, in addition to exercising remedies available to it, Mortgagee may, at its option and without notice to Mortgagor, deal with the successor in interest with reference to this Mortgage and the Obligations in the same manner as with Mortgagor, without reducing or discharging Mortgagor’s liability for the Obligations.  When requested, without delay Mortgagor agrees to disclose to Mortgagee the name, address and ownership interest of each legal and beneficial owner of the Premises or Mortgagor.
Section 2 - Events of Default.  The occurrence of one or more of the following events or conditions is an Event of Default and a breach of the condition of this Mortgage:
(i)    The failure to pay an Obligation when due;

(ii)    The failure, other than in the payment of money, to perform or observe an Obligation which continues beyond an applicable period of notice or grace;  

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(iii)    A representation or warranty made or furnished to Mortgagee by a party to the Loan Documents or in compliance with the provisions of the Loan Documents proves to have been false or incomplete in any material respect when made;

(iv)    Mortgagor or a guarantor of the Obligations (“Guarantor”) (a) is or becomes insolvent within the meaning of the Massachusetts Uniform Commercial Code; (b) files a petition in bankruptcy or a petition to take advantage of an insolvency act; (c) makes an assignment for the benefit of its creditors; (d) consents to the appointment of a receiver or custodian of itself or of the whole or a substantial part of its property; (e) is named debtor party in an involuntary bankruptcy proceeding and the proceeding is not dismissed within sixty (60) days; (f) files a petition or answer seeking reorganization or arrangement under a Federal or state law; or (g) dies, dissolves or terminates its existence;

(v)    With respect to Mortgagor or a Guarantor, and without the consent of either, a court enters an order (a) appointing a receiver or custodian of either or of the whole or a substantial part the property of either, or (b) approving a petition filed against either seeking reorganization or arrangement under a Federal or state law, and the order is not vacated, set aside or stayed within sixty (60) days after it is entered;

(vi)    Under a law for the relief or aid of debtors, a court assumes custody or control of Mortgagor or a Guarantor or of the whole or a substantial part of the property of either, and the custody or control is not terminated or stayed within sixty (60) days after the date it is assumed;

(vii)    A court enters final judgment against Mortgagor for the payment of money in excess of $1,000,000, and, within sixty (60) days after entry of the judgment, Mortgagor does not (a) discharge the judgment or provide for its discharge in accordance with its terms, or (b) procure a stay of execution and within the sixty (60) day period, or such longer period during which execution of the judgment has been stayed, appeal and cause the execution to be stayed during the appeal; 

(viii)    The monetary default by Mortgagor with respect to any prior indebtedness secured by the Premises; or

(ix)    The occurrence of an Event of Default under any one or more of the Loan Documents.

Section 3 - Rights and Remedies.  Without prejudice to Mortgagee’s rights with respect to Obligations payable on demand, if an Event of Default exists, Mortgagee may, without notice except to the extent notice is required by law, exercise the rights and remedies provided in this Section 3, conferred by law or under the Loan Documents with respect to the Premises, Mortgagor or any other person.  Mortgagee’s rights and remedies are cumulative and not exclusive of or alternative to any rights or remedies it would otherwise have.  A delay or failure by Mortgagee in exercising or enforcing its rights or remedies does not constitute a waiver.  
3.1    Remedies.  Whenever an Event of Default exists, Mortgagee may:

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(i)    Declare the Obligations immediately due and payable, without presentment, notice, protest or further demand, all of which are hereby expressly waived;

(ii)    Exercise the STATUTORY POWER OF SALE;

(iii)    Initiate actions or proceedings available to Mortgagee under applicable law to protect its interest in the Premises and the Obligations; or

(iv)    Petition for the appointment of a receiver of the Premises, which appointment may be made ex parte and without notice except to the extent notice is required by law, without regard to the solvency of Mortgagor or a Guarantor at the time of application for the receiver and without regard to the value of the Premises.

3.2    Receiver.  Mortgagor consents to the appointment of Mortgagee or other qualified person as receiver, to take possession of and to operate the Premises and to collect the Rents.  Notwithstanding the appointment of a receiver or other custodian, Mortgagee is entitled, as pledgee, to the possession and control of all cash, deposits and instruments at the time payable or deliverable under this Mortgage.
3.3    Specific Performance.  Failure by Mortgagor to perform its agreements contained in the Loan Documents will result in irreparable harm to Mortgagee for which Mortgagee has no adequate remedy at law.  Therefore, Mortgagor agrees that its agreements contained in the Loan Documents are specifically enforceable by Mortgagee.    
3.4    Foreclosure Sales.  Mortgagee has the right in case of a sale which it is entitled to make, to sell the Premises at public auction, either as a whole or by parcels and without regard to other collateral now or in the future securing the Obligations.  In the case of a sale by parcels, the purchaser of a parcel will take good title, even if a sum may already have been realized from the sale of other parcels sufficient to satisfy all the Obligations.  The foreclosure sale may be held at the offices of Mortgagee or on or near the Premises, without notice or demand, except to the extent notice or demand is required by law.
3.5    Foreclosure Expenses, Surplus.  If (i) foreclosure, bankruptcy or other legal proceedings involve Mortgagee’s interest under this Mortgage, whether the proceedings are begun by Mortgagee or others and whether the proceedings are suspended or terminated or the Premises redeemed, or (ii) Mortgagee takes possession of the Premises, Mortgagee will be entitled to collect and Mortgagor agrees to reimburse Mortgagee for all expenses, including reasonable attorneys’ fees, incurred by Mortgagee in the foreclosure, bankruptcy or other legal proceeding or in the maintenance, protection and management of the Premises.  If surplus proceeds are realized from a foreclosure sale, Mortgagee will not be liable for interest on the proceeds pending distribution, and all costs and reasonable attorneys’ fees incurred by it in proceedings to determine the person or persons entitled to the surplus will be paid from the surplus proceeds.  
3.6    Forbearance not a Waiver.  The liability of Mortgagor will not be reduced, the priority of this Mortgage will not be affected, and the rights of Mortgagee with respect to 

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Mortgagor or the security for the Obligations will not be impaired by any of the following events, regardless of whether Mortgagee receives additional consideration:  (i) the sale of all or part of the Premises, (ii) a forbearance by Mortgagee, (iii) an extension of the time for payment or performance of the Obligations, (iv) a release of security for or a guarantor of the Obligations or (v) an indulgence given by Mortgagee to Mortgagor or to any other person having an interest in the Premises or liable for the Obligations.  Mortgagor waives notice of any extension, forbearance or indulgence and agrees that no waiver, express or implied, by Mortgagee of a default by a party to the Loan Documents will constitute a waiver of a future default in the same or any other provision of the Loan Documents.
3.7    Insurance Policies.  If this Mortgage is foreclosed, and subject to the rights of the holder of the Prior Mortgage, Mortgagor grants to Mortgagee full power, as irrevocable attorney-in-fact of Mortgagor, to cancel the insurance required to be maintained by Mortgagee under this Mortgage, retain the return premiums and apply them to the Obligations or to transfer the insurance to a person claiming title to the Premises as a result of foreclosure proceedings.
Section 4 - Damage to Premises.  Subject to the rights of the holder of the Prior Mortgage, Mortgagor appoints Mortgagee as its irrevocable attorney-in-fact (i) to adjust and to settle claims on account of damage to the Premises resulting from a taking or casualty, (ii) to receive all condemnation and insurance proceeds (“Proceeds”) arising out of the damage and (iii) to endorse in favor of itself or any other person drafts or checks for Proceeds received by it.  Mortgagee agrees to apply all Proceeds first, to expenses including, but not limited to, the reasonable fees and disbursements of attorneys and other professionals incurred by Mortgagee in collecting the Proceeds and, if no Event of Default exists, the balance to the cost of restoring the Premises.  Mortgagee may, in its discretion, (a) pay the Proceeds to Mortgagor for application to the cost of the work, or (b) advance the Proceeds from time to time to Mortgagor and/or its contractor for application to the cost of the work as the cost is certified to Mortgagee by an architect or contractor in charge of the restoration who has been approved in writing by Mortgagee; provided, however, that Mortgagee is not obligated to make advances if, as a result, the balance of the Proceeds is or will become less than the amount specified in the architect’s or contractor’s certificate as the amount required to complete the restoration.  Upon receipt by Mortgagee of satisfactory evidence that the restoration has been completed, that the cost of all labor and materials has been paid in full and that there are no liens on the Premises, and if no Event of Default exists, Mortgagee agrees to pay the balance of the Proceeds held by it to Mortgagor.  If the Proceeds held by Mortgagee are insufficient to pay the entire cost of restoration, Mortgagor agrees to pay the deficiency on demand.
Section 5 - Payments by Mortgagee.  Mortgagee is authorized but not obligated (i) to pay all Taxes with accrued interest, penalties and charges, (ii) to pay the premiums for insurance required under the Loan Documents, (iii) to incur and pay reasonable expenses, including attorneys’ fees, in protecting its rights under the Loan Documents, and maintaining, protecting or managing the collateral securing the Obligations, (iv) to pay indebtedness secured by a mortgage of real estate or security interest in property or Fixtures included as part of the Premises, (v) to add all amounts paid or incurred for the above purposes to the principal amount of the Obligations, and (vi) to apply to the above purposes or to the repayment of amounts paid by Mortgagee, sums paid under the Loan 

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Documents as interest or principal.  The amounts paid by Mortgagee will bear interest at the highest rate payable under the Loan Documents and will be payable on demand.
Section 6 - Entry by Mortgagee.  Mortgagee or its agents may enter the Premises at any time, before or after an Event of Default, to inspect the Premises, to appraise the Premises, to determine compliance with the provisions of the Loan Documents and to take any action while on the Premises authorized under this Mortgage or which it considers necessary to preserve the value of the Premises.  Entry by Mortgagee for the purposes authorized under this Section will not be considered entry for any other purpose or constitute possession of the Premises.  Mortgagor agrees to reimburse Mortgagee on demand for all expenses incurred in connection with an entry made under this Section, including the cost of appraisal, testing, remedial action or other activities by Mortgagee or its agents while on the Premises.
Section 7 - Notices and Communications.  All notices, demands, requests and other communications provided for or permitted under this Mortgage must be in writing and be delivered by hand or sent by nationally recognized and reputable overnight delivery service, express mail, certified mail or first-class mail, postage prepaid, to the parties, respectively at the following addresses:
(a)    If to Mortgagee, at the address stated at the beginning of this Mortgage (or at such other address as Mortgagee designates in writing to Mortgagor), with a copy to the persons Mortgagee designates in writing to Mortgagor, or

(b)    if to Mortgagor, at the address stated at the beginning of this Mortgage (or at such other address as Mortgagor designates in writing to Mortgagee) with a copy to the persons Mortgagor designates in writing to Mortgagee.

A communication provided for in this Mortgage will become effective only when the person to whom it is given receives it or is considered to have received it.  If it is mailed by express, certified or first-class mail, it will be considered to be received on (i) the second business day after being mailed or (ii) the day of its receipt, whichever is earlier.

Section 8 - Miscellaneous Provisions.  The following miscellaneous provisions are applicable to this Mortgage:
8.1    Successors and Assigns.  The term “Mortgagee” includes Mortgagee, its successors and assigns, and any subsequent holder or holders of this Mortgage.  The term “Mortgagor” includes Mortgagor and any subsequent owner or owners of the equity of redemption of the Premises assented to by Mortgagee.  All of the agreements of Mortgagor are binding upon the successors and assigns of the original Mortgagor and any person claiming under Mortgagor.
8.2    Amendment.  This Mortgage may not be amended except by written agreement signed by Mortgagor and Mortgagee.

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8.3    Headings.  The headings contained in this Mortgage are for reference purposes only and do not affect the meaning or interpretation of this Mortgage.
8.4    Governing Law.  This Mortgage will be construed under and governed by the laws of the Commonwealth of Massachusetts.
8.5    Severability.  If a provision of this Mortgage is held to be invalid or unenforceable, the provision will be enforceable to the extent that a court, after limiting or reducing it, considers it reasonable to enforce the provision.  If it is held to be unreasonable to enforce the provision to any extent, the provision will be severed from this Mortgage and the remainder of this Mortgage will continue in effect.

Section 9 - Consent to Jurisdiction; Waivers.  MORTGAGOR IRREVOCABLY AND UNCONDITIONALLY (i) SUBMITS TO PERSONAL JURISDICTION IN THE COMMONWEALTH OF MASSACHUSETTS OVER ANY ACTION OR PROCEEDING ARISING OUT OF THE LOAN DOCUMENTS, AND (ii) WAIVES ALL PERSONAL RIGHTS UNDER THE LAWS OF ANY STATE (a) TO TRIAL BY JURY, (b) TO OBJECT TO JURISDICTION WITHIN THE COMMONWEALTH OF MASSACHUSETTS OR VENUE IN A PARTICULAR FORUM WITHIN THE COMMONWEALTH OF MASSACHUSETTS AND (c) TO CLAIM OR RECOVER ANY DAMAGES OTHER THAN ACTUAL DAMAGES INCLUDING SPECIAL EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.  MORTGAGOR AGREES THAT, IN ADDITION TO METHODS OF SERVICE OF PROCESS PROVIDED FOR UNDER APPLICABLE LAW, SERVICE MAY BE MADE BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO MORTGAGOR AT THE ADDRESS PROVIDED IN THE RECITALS HERETO, WHICH SERVICE WILL BE COMPLETE FIVE (5) DAYS AFTER BEING MAILED.  This provision may not be construed to prevent Mortgagee from bringing an action or proceeding or exercising its rights in any other jurisdiction.  Mortgagor acknowledges that it has been informed by Mortgagee that the provisions of this Section constitute a material inducement upon which Mortgagee has relied, is relying and will rely in entering into this Mortgage and the other Loan Documents, and that it has reviewed the provisions of this Section with its counsel.  Either party may file an original counterpart or a copy of this Section with any court as written evidence of the consent of Mortgagor and Mortgagee to the waiver of their rights to trial by jury.
[SIGNATURE PAGE FOLLOWS]

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WITNESS the execution hereof under seal this 26th day of March, 2018.

JACKSON 64 MGI, LLC, a Delaware limited liability company

By: 64 Jackson, LLC, a Massachusetts limited liability company, Its Manager

By:  /s/ Steven E. Goodman        
Name: Steven E. Goodman
Title:  Manager

COMMONWEALTH OF MASSACHUSETTS
Suffolk, ss.

On this 26th day of March, 2018, before me, the undersigned notary public, Steven E. Goodman personally appeared, proved to me through satisfactory evidence of identification, which was Massachusetts driver’s license, to be the person whose name is signed on the preceding or attached document, and acknowledged to me that he signed it voluntarily for its stated purpose as the voluntary act of Jackson 64 MGI, LLC.
/s/ Hayley Marsh                
Notary Public
Printed Name:    Hayley Marsh            
My Commission Expires: August 17, 2023
[Seal]

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EXHIBIT “A”

A certain parcel of land known as Lot 7, located in the Town of Harvard now known as Devens, County of Worcester and the Commonwealth of Massachusetts. Beginning at a stone bound to be set at the easterly corner of said lot on the southwesterly sideline of Givry Street;

Thence S 52° 47' 59" W, nine hundred twelve and 16/100 (912.16) feet to a stone bound to be set;

Thence N 77° 23' 38" W, eight hundred ninety and 78/100 (890.78) feet to a stone bound to be set;

Thence N 15°53' 53" E, six hundred thirty-three and 13/100 (633.13) feet t a stone bound to be set;

Thence along a curve to the right with a radius of one thousand nine hundred thirty-six and 00/100 (1936.00) feet, a length of one thousand thirty-two and 70/100 (1032.70) feet to a stone bound to be set;

Thence along a curve to the right a radius of twenty-five and 79/100 (25.79) feet, a length of forty-three and 30/100 (43.30) feet to a stone bound to be set;

Thence S 37° 20' 20" E, one thousand four hundred eleven and 03/100 (1411.03) feet to the point of beginning.

Said Lot 7 containing 34.89 +- Acres and shown on a plan entitled "Harvard, Massachusetts Level 1 Subdivision lot 7 Givry Street" prepared by Howe Surveying Associates, Inc. dated July 19, 2000, revised through October 4, 2000 recorded in Plan Book 761, Plan 44.

BEING the same premise conveyed to Mortgagor herein by deed of ASC Devens LLC and recorded in the Worcester County Registry of Deeds immediately prior hereto.

11Exhibit

 Exhibit 10.4

 
This space reserved for Recorder’s use only

This Subordinated Second Assignment of Leases and Rents is subject to an Intercreditor, Subordination and Standstill Agreement of even date herewith between Lender and the East Boston Savings Bank.  Any assignment, transfer or conveyance of this Subordinated Second Assignment of Leases and Rents shall be subject to the aforesaid Intercreditor, Subordination and Standstill Agreement referenced above.

SUBORDINATED SECOND ASSIGNMENT OF LEASES AND RENTS
THIS SUBORDINATED ASSIGNMENT OF LEASES AND RENTS (this “Assignment”) is dated as of the 28th day of March, 2018 and is made by JACKSON 64 MGI, LLC, a Delaware limited liability company, to ASC DEVENS, LLC, a Delaware limited liability company.
SECTION 1
Terms Defined

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SECTION 1.1    Definitions.  In this Assignment each of the following terms and any pronoun used in its place has the meaning and incorporates the data stated for that term in this Section 1.1, and the singular includes the plural if the context requires:
		
	Borrower:
	JACKSON 64 MGI, LLC, a Delaware limited liability company having an address of 133 Pearl Street, Boston, Massachusetts 02110.

		
	Lender:
	ASC DEVENS LLC, a Delaware limited liability company having an address of 114 East Main Street, Ayer, Massachusetts 01434.

		
	Mortgage:
	The Second Mortgage from Borrower to Lender recorded with this Assignment and describing real estate located at 64 Jackson Road, Devens, Massachusetts.

		
	Note:
	The Secured Subordinated Commercial Promissory Note of Borrower payable to Lender in the original principal amount of $6,000,000 of even date herewith

		
	Premises:
	The land, together with the buildings, structures and improvements now or in the future erected on the land, more particularly described in Exhibit A attached.

Prior
		
	Mortgage:
	The Mortgage and Security Agreement granted to East Boston Savings Bank and recorded with the Worcester District Registry of Deeds in Book 58594, Page 337.

		
	Obligations:
	All of Borrower's debts, agreements and other obligations contained in the Mortgage and this Assignment, including any modification or extension of them, and all other debts, agreements and obligations of Borrower to Lender of every kind, direct or indirect, absolute or contingent, due or to become due, now existing or arising in the future.  The term Obligations used in this Assignment incorporates all of the “Obligations” as that term is defined in the Mortgage.

		
	Rents:
	All rent, income, fees and other amounts due Borrower under the Leases during the term of this Assignment, including but not limited to reimbursement for operating expenses and real estate taxes.  

		
	Tenant:
	Any person, firm, corporation or other entity occupying the Premises under a Lease.

		
	Leases:
	All leases, subleases, tenancies or other arrangements (including licenses and concessions), whether written or unwritten, now existing or in the future 

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entered into, under which a Tenant occupies all or any part of the Premises for any purpose.  
SECTION 2
Assignment of Leases and Rents

SECTION 2.1    Assignment.  In order to secure the payment and performance of the Obligations and in consideration of One Dollar ($1.00) and other valuable consideration paid by Lender, the receipt of which Borrower acknowledges, Borrower hereby assigns to Lender all of Borrower's right, title and interest in (a) the Leases, including but not limited to, the benefit of all covenants of the Tenants under the Leases, and (b) the Rents.  Except to the extent actually delivered to Lender as evidenced by Lender's receipt, this Assignment does not include any security deposits, prepaid rent or other amounts received by Borrower with respect to any of the Leases before the date of this Assignment.  Borrower hereby irrevocably grants to Lender complete authority, in its name or in Borrower's name, to enforce the covenants of the Tenants, to demand, collect, receive and give receipts for the Rents, to enforce payment of the Rents by the Tenants and to exercise all the rights and remedies which Borrower might exercise with respect to covenants of the Tenants and payment of the Rents, but for this Assignment.
SECTION 2.2    Cooperation of Borrower.  Borrower agrees to cooperate with Lender in carrying out the purposes of this Assignment and to execute, acknowledge and deliver such additional assignments, conveyances and assurances as Lender may reasonably request.  When requested by Lender, Borrower agrees at its expense to enforce or to secure the performance of every provision of the Leases to be performed by the Tenants.  Borrower agrees not to interfere with the exercise by Lender of any right or authority conferred by this Assignment.  
SECTION 2.3    Conditional Nature of Assignment; Prior Mortgage; Prior Assignment of Leases and Rents.  This Assignment is made on the condition that so long as no default continues beyond any applicable grace period in the payment or performance of any of the Obligations, Borrower may exercise all the rights of the landlord under the Leases, including the right to collect and retain the Rents, and may enforce all covenants of the Tenants.  The rights of the Lender set forth in this Assignment are subject to the rights of the holder of the Prior Mortgage as set forth in the Prior Mortgage and of the Prior Assignment of Leases and Rents.
SECTION 3
Representations and Warranties

SECTION 3.1    Borrower's Representations and Warranties.  Borrower represents and warrants to Lender that:
		
	(a)
	Borrower is the sole owner of the entire landlord's interest in the Leases;

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	(b)
	all existing Leases are valid and enforceable, and there exist no written Leases and no amendments or other agreements, written or unwritten, modifying in any way the terms of any Lease which have not been delivered or disclosed to the Lender;

		
	(c)
	to the best of Borrower's knowledge, neither the landlord nor any Tenant is in default in any material respect under the provisions of any of the Leases, and no set-off or counterclaim against Borrower exists in favor of any Tenant;

		
	(d)
	Borrower has no knowledge of any act or omission on the part of any landlord or Tenant which, with the giving of notice or the passage of time, or both, would constitute material default under the provisions of any of the Leases;

		
	(e)
	no Rents for any period after the date of this Assignment have been waived by Borrower or collected by Borrower before the time they are due; and 

		
	(f)
	no Rents have been assigned or encumbered.  

SECTION 3.2    Intentionally deleted.
SECTION 4
Covenants

SECTION 4.1    Borrower’s Covenants.  Borrower agrees that during the term of this Assignment it will:
		
	(a)
	at its expense faithfully perform and observe every material obligation to be performed and observed by the landlord under each of the Leases;

		
	(b)
	enforce and not waive the performance and observance of every material obligation to be performed and observed by the Tenants under the Leases;

		
	(c)
	not collect Rents for any period more than thirty (30) days before they are due;

		
	(d)
	not make any additional assignment of the Leases or the Rents;

		
	(e)
	deliver to Lender immediately upon receipt, but under no circumstances more than five (5) days after demand, all schedules, notices, demands or documents given or received by Borrower and in any way referring to the Leases, the Rents; and

		
	(f)
	not cause or permit any "oil," "hazardous materials," "hazardous wastes" or "hazardous substances" (collectively "Hazardous Substances") as defined under 42 U.S.C. Section 9601, et seq., as amended, 42 U.S.C. Section 6901, 

4

et seq., as amended, Massachusetts General Laws, Chapters 21C and 21E, as amended, and the regulations from time to time adopted under those laws (collectively, "Environmental Legal Requirements") to be released on the Premises or into the air from the Premises or into the waste disposal system servicing the Premises, except in compliance with applicable Environmental Legal Requirements; not generate, store or dispose of Hazardous Substances in the Premises or dispose of Hazardous Substances from the Premises to any other location, except in compliance with all applicable Environmental Legal Requirements.
SECTION 5
Lender's Remedies; Expenses

SECTION 5.1    Lender's Right to Perform.  If Borrower fails to perform or observe any of its obligations under the Leases so as to entitle any Tenant to terminate a Lease or recover damages, Lender may, but with no duty to do so and without releasing Borrower, perform Borrower's obligations under the Leases to the extent Lender considers necessary to protect its security.  
SECTION 5.2    Lender's Remedies.  At any time after a default in the payment or performance of any Obligations, which default extends beyond any applicable grace period, regardless of whether Lender elects to declare the Obligations immediately due and payable, at its option, without notice to Borrower and without waiving the default, Lender may (i) take possession of the Premises and manage, lease and operate the Premises on such terms and for such period of time as it considers to be appropriate, and (ii) with or without taking possession of the Premises, in its own name or in the name of Borrower, sue for and collect the Rents, including any that are past due, and (iii) amend or terminate any of the Leases and enter into new Leases of all or any part of the Premises on terms which Lender considers appropriate, and any amendment, termination or new Lease made by Lender will be binding on Borrower.  Lender may, whether or not it takes possession of the Premises and without any obligation to do so, make alterations, renovations, repairs and improvements to the Premises.  Lender may exercise its remedies provided in this Section 5.2 without regard to the adequacy of any other security for the Obligations.  
SECTION 5.3    Lender's Expenses.  If, in exercising its rights and pursuing its remedies under this Assignment or with respect to any of the Obligations or Lender's security for the Obligations, Lender incurs any expenses, including attorneys' fees, Borrower agrees to reimburse those expenses on demand.  If Borrower fails to reimburse any of Lender's expenses, Lender may reimburse them by application of Rents, as provided in Section 6.1, or Lender may add them to the principal amount of the Obligations. Regardless of any action by Lender, failure of Borrower to reimburse Lender's expenses within ten (10) days after demand, constitutes a material default under this Assignment.  
SECTION 5.4    Remedies Cumulative.  The rights and remedies of Lender under this Assignment are cumulative and are not in place of, but are in addition to, any other rights and 

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remedies which Lender may have under the Note, the Mortgage or any other agreement made in connection with the Note, the Mortgage or any of the Obligations.  
SECTION 6
Application of Rents

SECTION 6.1    Application of Rents.  After any default in the payment or performance of any Obligations, which default extends beyond any applicable grace period, regardless of whether Lender elects to declare any Obligation immediately due and payable, Lender may apply any Rents then held or in the future received by it under this Assignment to payment of the following in such order of priority and in such amounts as Lender considers appropriate:
		
	(a)
	all reasonable expenses of taking possession of, managing, operating and maintaining the Premises, including but not limited to:  the salaries and benefits of a managing agent and such other employees as Lender considers necessary; all supplies, utilities and fuel; all taxes, assessments, water rates, sewer rates and any other municipal charges and liens; premiums for all insurance which Lender considers necessary; and the cost of all reasonable alterations, renovations, repairs or improvements; 

		
	(b)
	the Obligations; and

		
	(c)
	all reasonable expenses, including attorney's fees, incurred by Lender in connection with this Assignment, the Note, the Mortgage or any other Obligations.  

SECTION 6.2    Balance of Rents.  If any balance remains after the application of the Rents as provided in Section 6.1, Lender may pay the balance to Borrower.  If Lender has any reasonable doubt about Borrower's entitlement, Lender may pay the balance as ordered in a final judgment of a court of competent jurisdiction in any action brought by Lender or any other person claiming an interest in the Rents.
SECTION 7
Miscellaneous

SECTION 7.1    Liability of Lender.  No act, omission or error of judgment by Lender, other than its gross negligence or willful misconduct, in connection with this Assignment shall impose any liability on Lender or give rise to any offset, counterclaim or defense to the Obligations.  
SECTION 7.2    Indemnification of Lender.  Lender is not required to perform or observe any obligation under the Leases.  Borrower hereby agrees to indemnify Lender against all claims, losses and expenses, including reasonable attorney's fees, which may be imposed on or 

6

incurred by Lender by reason of the Leases, by reason of this Assignment, or by reason of any alleged obligation or undertaking to be performed by Lender under the Leases.  If Lender incurs any loss or expense under the Leases or by reason of this Assignment or in the defense of any such alleged obligation, Borrower agrees immediately, upon demand, to reimburse Lender.  
SECTION 7.3    Non-waiver.  The failure of Lender to avail itself of any of the provisions of this Assignment, at any time or for any period of time, shall not be construed to be a waiver of any of its rights under this Assignment.  
SECTION 7.4    Notices.  Any notice, request, direction, consent, approval, waiver or other communication required or permitted under this Assignment must be in writing and will become effective only when received unless sent by certified or registered mail, postage prepaid, return receipt requested and addressed to the parties respectively at their addresses recited in Section 1.1, in which case it will be effective three (3) days after being mailed.  Either party may change its address by written notice to the other party given at least ten (10) days before the effective date of such change.

7

THIS ASSIGNMENT is binding upon and will inure to the benefit of Borrower and Lender and their respective successors and assigns.
Executed as a sealed instrument.  
JACKSON 64 MGI, LLC, a Delaware limited liability company

By: 64 Jackson, LLC, a Massachusetts limited liability company, Its Manager

By:  /s/ Steven E. Goodman        
Name: Steven E. Goodman
Title:  Manager

COMMONWEALTH OF MASSACHUSETTS
Suffolk, ss.

On this 26th day of March, 2018, before me, the undersigned notary public, Steven E. Goodman personally appeared, proved to me through satisfactory evidence of identification, which was a Massachusetts driver’s license, to be the person whose name is signed on the preceding or attached document, and acknowledged to me that he signed voluntarily for its stated purpose as the voluntary act of Jackson 64 MGI, LLC.
/s/ Hayley Marsh            
Notary Public
Printed Name:  Hayley Marsh        
My Commission Expires: August 17, 2023
[Seal]

8

EXHIBIT “A”

A certain parcel of land known as Lot 7, located in the Town of Harvard now known as Devens, County of Worcester and the Commonwealth of Massachusetts. Beginning at a stone bound to be set at the easterly corner of said lot on the southwesterly sideline of Givry Street;

Thence S 52° 47' 59" W, nine hundred twelve and 16/100 (912.16) feet to a stone bound to be set;

Thence N 77° 23' 38" W, eight hundred ninety and 78/100 (890.78) feet to a stone bound to be set;

Thence N 15°53' 53" E, six hundred thirty-three and 13/100 (633.13) feet to a stone bound to be set;

Thence along a curve to the right with a radius of one thousand nine hundred thirty-six and 00/100 (1936.00) feet, a length of one thousand thirty-two and 70/100 (1032.70) feet to a stone bound to be set;

Thence along a curve to the right a radius of twenty-five and 79/100 (25.79) feet, a length of forty-three and 30/100 (43.30) feet to a stone bound to be set;

Thence S 37° 20' 20" E, one thousand four hundred eleven and 03/100 (1411.03) feet to the point of beginning.

Said Lot 7 containing 34.89 +- Acres and shown on a plan entitled "Harvard, Massachusetts Level 1 Subdivision lot 7 Givry Street" prepared by Howe Surveying Associates, Inc. dated July 19, 2000, revised through October 4, 2000 recorded in Plan Book 761, Plan 44.

BEING the same premise conveyed to Mortgagor herein by deed of ASC Devens LLC and recorded in the Worcester County Registry of Deeds immediately prior hereto.

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