Document:

Exhibit 4.1.4

 

Account No. 234-34802

234-34803

234-34804

234-34805

234-34806

234-34807

234-34808

 

CONTROL AGREEMENT AND ASSIGNMENT OF HEDGING ACCOUNT

 

WHEREAS, the undersigned,
MGP INGREDIENTS, INC., a Kansas corporation (hereinafter called the “Debtor”), whose
address is, 100 Commercial Street, Atchison, KS 66002  carries certain hedging accounts, including
without limitation Hedging Accounts (No. 234-34802, 234-34803, 234-34804,
234-34805, 234-34806, 234-34807, 234-34808) (collectively, the “Account”) with
the firm of ADM INVESTOR SERVICES, INC., as brokers (hereinafter called the “Broker”),
whose address is Suite 1600A, 141 W. Jackson Blvd., Chicago, Illinois
60604, for hedging transactions in commodities futures contracts; and Debtor is
or will be indebted to WELLS FARGO BANK, NATIONAL ASSOCIATION, acting through
its Wells Fargo Business Credit operating division, whose address is MAC
N9312-040, 109 South 7th Street, 4th Floor, Minneapolis, MN 55402 (hereinafter
called the “Secured Party”), pursuant to the terms of that certain Credit and
Security Agreement dated as of July       ,
2009, by and between Debtor and the Secured Party (as the same may be amended,
modified, supplement, or restated from time to time, the “Credit Agreement”).

 

WHEREAS, pursuant to the
terms of the Credit Agreement, the Debtor has granted a security interest in
certain assets of the Debtor, including without limitation, the Account with
Broker and each item of property (whether “investment property”, as defined in Section 9-102(a)(49)
of the Uniform Commercial Code in effect in the State of Minnesota, a security,
a security entitlement, a commodity contract, an instrument, cash or
otherwise), including all replacements or substitutions for, and proceeds of
the sale or other disposition of, any of the foregoing, including without
limitation, cash proceeds (i) that is or may in the future be standing to
the credit of the Account, (ii) that has been received and accepted, or
may in the future be received and accepted, by the Broker for credit to the
Account or (iii) as to which the Broker is or may in the future become
obligated by law, regulation, rule or agreement to credit to the Account
(collectively, the “Account Property”).

 

NOW, THEREFORE, it is
hereby agreed by and between the parties hereto as follows:

 

1.     The security interest of Secured Party against the Account and
the Account Property is subject to the prior payment of all indebtedness of the
Debtor to the Broker, as such may exist from time to time, including fees and
commissions, which may have been incurred in connection with Debtor’s
transactions with Broker, and to Broker’s lien, and the right of foreclosure
thereof in connection with any indebtedness of Debtor to Broker (including any
right of Broker to close out open positions without prior demand for additional
margin and without prior notice); provided, however, that (a) the term “indebtedness”
as used in this Section 1 shall not include any loans, advances or other
extensions of credit from Broker to Debtor and (b) Broker shall have no
right of set-off in connection with any such loans, advances or extensions of
credit from Broker to Debtor.

 

2.     The broker is hereby authorized and directed to pay to the
Secured Party upon its demand all funds that may hereafter be withdrawable or
payable out of the Account of the Debtor with the Broker, and the Debtor agrees
that it will not withdraw or attempt to withdraw any Account Property from the
Account except as permitted by this Control Agreement and Assignment of Hedging
Account (the “Agreement”).  The Secured
Party is hereby authorized and fully empowered without further authority from
the Debtor to request Broker to remit to the Secured Party any funds that may
be due to the Debtor or to direct the transfer, liquidation, or redemption of
any of the Account Property, and the Broker is hereby authorized and directed
to pay to the Secured Party such sums as it shall so request or demand or to
comply with such request to transfer, liquidate or redeem any of the Account
Property, all without the consent of or notice to the Debtor.

 

3.     The Debtor hereby constitutes and appoints the Secured Party its
true lawful and irrevocable attorney to demand, receive, and enforce payments
and to give receipts, releases, satisfactions for, and to sue for all monies 

 

1

 

payable to the Debtor and
this may be done in the name of the Secured Party with the same force and
effect as the Debtor could do had this Agreement not been made.  Any and all monies or payments which may be
received by the Debtor, to which the Secured Party is entitled under and by
reason of this Agreement, will be received by the Debtor as trustee for the
Secured Party, and will be immediately delivered in kind to the Secured Party without
commingling.

 

4.     Nothing herein contained shall be construed so as to prevent the
Debtor from remaining the owner, subject to the interest of the Secured Party
as it may appear, of the Account with the Broker.  Until the Secured Party elects to the contrary
and delivers notice of such election in writing to the Broker, the Debtor may
make such additional hedging transactions in the Account with the Broker as the
Broker shall be willing to accept for execution.  In the event the Secured Party does make such
election and does deliver such notice to the Broker, the Debtor shall not
thereafter execute any transactions in the Account and the Broker shall not
accept for execution any such transactions without the concurrence of the
Secured Party, except transactions in liquidation of any then outstanding
commodity or commodity futures positions.

 

5.     Whenever the Secured Party deems it necessary for its
protection, it shall be entitled, without the consent or concurrence of, or
prior notice to the Debtor, to direct the Broker to liquidate any or all then
outstanding open positions in the Debtor’s Account and to direct the said
Broker to pay to it, the Secured Party, the credit balance as shall exist in
the Account after such liquidation and after the payment to the Broker of all
the indebtedness of the Debtor to the Broker in connection with transactions in
the Account; provided, however that (a) the term “indebtedness” as used in
this Section 5 shall not include any loans, advances or other extensions
of credit from Broker to Debtor and (b) Broker shall have no right of
set-off in connection with any such loans, advances or other extensions of
credit from Broker to Debtor.

 

6.     Broker is authorized by Debtor and agrees to comply with all
entitlement orders originated by Secured Party with respect to the Account, and
all other requests or instructions from Secured Party regarding disposition
and/or delivery of the Account Property, without further consent or direction
from Debtor or any other party.  Subject
to Broker’s rights in Section 1, upon receipt of either written or
oral notice from Secured Party: (i) Broker shall promptly cease complying
with entitlement orders and other instructions concerning the Account Property,
including the Account, from all parties other than Secured Party; and (ii) Broker
shall not make any further distributions of any Account Property to any party
other than Secured Party, nor permit any further voluntary changes in the
financial assets.

 

7.     Any sum paid by the Broker from the Account of the Debtor to the
Secured Party under this Agreement shall be applied by the Secured Party to the
Obligations (as defined in the Credit Agreement) in such order and manner as
the Secured Party may elect in its sole discretion.  The receipt or receipts of the Secured Party
for such funds so paid to it by the Broker shall as to the Broker operate as
the receipt of the Debtor as fully and as completely as if funds had been paid
to the Debtor in person and receipted for by the Debtor.

 

8.     If at any time during the continuances of any contract or
contracts, Broker may require additional margin in order to protect such
contract or contracts, then Broker shall, if required by the terms of Broker’s
contract with Debtor, issue a margin call to Debtor.  Upon notification by Broker or Debtor, the
Secured Party may, in its sole discretion, advance to said Broker on behalf of
the Debtor such amounts as may be required to protect such contracts, provided,
however, that the Debtor shall in all respects remain liable to the Secured
Party for any amounts so advanced pursuant to the terms of the Credit Agreement
or any other agreement entered into between the Secured Party and the Debtor in
connection with the transactions covered by this Agreement.

 

9.     Upon written demand, the Secured Party is hereby authorized and
empowered to receive from the Broker, and the Broker is authorized and directed
to deliver to the Secured Party, copies of confirmation on all contracts
executed for the account of the Debtor, copies of the monthly positions and
ledger account of the Debtor, and copies of any and all matters pertaining to
the Account of the Debtor with the Broker.

 

10.   In consideration for Broker’s participation
in the acceptance of this Agreement, the Debtor hereby agrees to indemnify and
hold Broker harmless from and against any and all liabilities, claims, damages,
or judgments, including court costs and reasonable attorney’s fees, incurred by
Broker as a result of its acceptance of this Agreement.

 

2

 

11.   As between the Debtor and the Secured Party,
this Agreement shall remain in full force and effect until cancelled in writing
by the Secured Party, or by the Debtor when and if the Debtor no longer are
indebted to the Secured Party.  Any
cancellation of this instrument shall be without effect as to the Broker until
the Broker is notified in writing by the Secured Party.

 

12.   The Debtor hereby represents and warrants to
the Secured Party that the account or accounts above assigned have not
heretofore been alienated or assigned.

 

13.   This Agreement shall be governed by the laws
of the State of Illinois.  This Agreement
shall be binding upon the Debtor, and upon his executors, administrators or
assigns, and it shall be binding upon and inure to the benefit of any
successors of the Secured Party and the Broker.

 

[Signatures
Follow]

 

3

 

Dated this                         day
of July, 2009.

 

	
  SECURED PARTY:

  	
  DEBTOR:

  
	
   

  	
   

  
	
  WELLS FARGO BANK,

  	
  MGP INGREDIENTS, INC.

  
	
  NATIONAL
  ASSOCIATION

  	
  a Kansas corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Becky A. Koehler

  	
   

  	
  By:

  	
  /s/ Timothy W. Newkirk

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Becky A. Koehler

  	
   

  	
  Name:

  	
  Timothy W. Newkirk

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
  Title:

  	
  President & CEO

  
	
   

  	
   

  
	
  To:

  	
  MAC N9312-040

  	
  To:

  	
  100 Commercial Street

  
	
   

  	
  109 South 7th Street, 4th Floor

  	
   

  	
  Atchison, KS 66002

  
	
   

  	
  Minneapolis, MN 55402

  	
   

  
							

 

The undersigned, ADM
Investor Services, Inc., whose address is Suite 1600A, 141 W. Jackson
Blvd., Chicago, Illinois 60604, hereby acknowledges receipt of a copy of the
above-mentioned Control Agreement and Assignment of Hedging Account, and agrees
to abide by the provisions thereof, including without limitation, complying
with the requests of Secured Party pursuant to Sections 2, 4, 5, 6 and 9.  No previous assignment or claims against the
above-described account or accounts have been received by the undersigned.

 

This copy received July
22, 2009.

 

	
   

  	
  ADM INVESTOR SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marisol Paredes

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Marisol Paredes

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Compliance Supervisor

  

 

4Exhibit 4.1.6

 

Recording
Requested By,

And
After Recording, Return To:

WELLS
FARGO BANK,

NATIONAL
ASSOCIATION

MAC
N9312-040

109
South 7th Street, 4th Floor

Minneapolis,
MN 55402

Telecopier:  (612) 341-2472

Attention:  Becky A. Koehler

 

THE
TOTAL AMOUNT OF PRINCIPAL INDEBTEDNESS SECURED BY THIS MORTGAGE SHALL NOT
EXCEED, AT ANY ONE TIME, THE SUM OF $15,000,000 AS TO THE PROPERTY LOCATED IN
THE STATE OF KANSAS, INCLUDING WITHOUT LIMITATION THE COUNTIES OF ATCHISON,
POTTAWATOMIE AND WYANDOTTE.

 

AMENDED AND RESTATED MORTGAGE, ASSIGNMENT OF RENTS AND LEASES,

SECURITY AGREEMENT AND FIXTURE FILING

 

THIS
AMENDED AND RESTATED MORTGAGE, ASSIGNMENT OF RENTS AND LEASES, SECURITY
AGREEMENT AND FIXTURE FILING (this “Mortgage”)
is made effective as of August 31, 2009, by MGP INGREDIENTS, INC.,  a Kansas corporation (“Mortgagor”), to WELLS FARGO BANK, NATIONAL
ASSOCIATION (“Mortgagee”).

 

PRELIMINARY STATEMENTS

 

A.             Mortgagor executed
that certain Mortgage, Assignment of Rents and Leases, Security Agreement and
Fixture Filing dated August 19, 2009 which was recorded on August 26,
2009, in Book 577, Page 39 in the office of the Register of Deeds of
Atchison County, Kansas (the “Original Mortgage”).

 

B.             Mortgagor and
Mortgagee desire to amend and restate the Original Mortgage in its entirety
with the terms and conditions as set forth herein.

 

C.             The principal
indebtedness of $15,000,000.00 stated in this Mortgage and secured by the lien
of this Mortgage is the same principal indebtedness covered by the Original
Mortgage and secured by the lien of the Original Mortgage, which secured an
original principal indebtedness of $15,000,000.00.

 

D.             Mortgagor paid the
mortgage registration fee due upon the recording of the Original Mortgage with
respect to the amount of the lien of such mortgage and because the amount of
the lien of this amended Mortgage is equal to the amount of the lien of the
Original Mortgage, no additional mortgage registration fee is due and owing
upon the recording of this amended Mortgage.

 

E.              The preliminary
statements set forth above are accurate, represent the intent of the parties
hereto and are incorporated herein by reference.

 

ARTICLE I.  MORTGAGE

 

1.1        Grant.  For the purposes and upon the terms and
conditions in this Mortgage, Mortgagor irrevocably mortgages, warrants, grants,
conveys and assigns to Mortgagee, with the right of entry and possession,
Mortgagor’s interest in: (a) all real property located in Atchison,
Pottawatomie and Wyandotte County, Kansas, and described on Exhibit A
attached hereto; (b) all easements, rights-of-way and rights used in
connection with or as a means of access to any portion of said real property; (c) all
tenements,

 

1

 

hereditaments
and appurtenances thereof and thereto; (d) all right, title and interest
of Mortgagor, now owned or hereafter acquired, in and to any land lying within
the right-of-way of any street, open or proposed, adjoining said real property,
and any and all sidewalks, alleys and strips and gores of land adjacent to or
used in connection with said real property; (e) all buildings,
improvements and landscaping now or hereafter erected or located on said real
property; (f) all development rights, governmental or quasi-governmental
licenses, permits or approvals, zoning rights and other similar rights or
interests which relate to the development, use or operation of, or that benefit
or are appurtenant to, said real property; (g) all mineral rights, oil and
gas rights, air rights, water or water rights owned by Mortgagor, including
without limitation, all wells, canals, ditches and reservoirs of any nature and
all rights thereto, appurtenant to or associated with said real property,
whether decreed or undecreed, tributary or non-tributary, surface or
underground, appropriated or unappropriated, and all shares of stock in any
water, canal, ditch or reservoir company, and all well permits, water service
contracts, drainage rights and other evidences of any such rights; (h) all,
fixtures (including, without limitation, all heating, air conditioning,
plumbing, lighting, communications and elevator fixtures) and (i) all
interest or estate which Mortgagor now has or may hereafter acquire in said
real property and all additions and accretions thereto, and all awards or
payments made for the taking of all or any portion of said real property by
eminent domain or any proceeding or purchase in lieu thereof, or any damage to
any portion of said real property (collectively, the “Subject  Property”).  The listing of specific rights or property
shall not be interpreted as a limitation of general terms.

 

1.2        Grant of Security Interest; Security
Agreement.  This Mortgage is intended
to be a security agreement pursuant to the Kansas Uniform Commercial Code (“UCC”) for any items of personal property
specified above as part of the Subject Property which, under applicable law,
may be subject to a security interest pursuant to the Kansas Uniform Commercial
Code and which are not herein effectively made part of the real property, and
Mortgagor hereby grants Mortgagee a security interest in said personal
property, and in all additions thereto, substitutions therefor and proceeds
thereof, for the purpose of securing all indebtedness and other obligations of
Mortgagor now or hereafter secured by this Mortgage, all of which shall be
deemed part of the Subject Property. 
Mortgagor authorizes the filing of financing and continuation statements
covering said personal property from time to time and in such form as Mortgagee
may require to perfect and continue the perfection of Mortgagee’s lien or
security interest with respect to said personal property and all the Subject
Property.  Mortgagor shall pay all costs
of filing such statements and renewals and releases thereof and shall pay all
reasonable costs and expenses of any record searches for financing statements
Mortgagee may reasonably require. 
Without the prior written consent of Mortgagee, Mortgagor shall not
create or suffer to be created any other security interest in any part of said
Subject Property, including replacements and additions thereto.  Upon the occurrence of any default of
Mortgagor hereunder, Mortgagee shall have the rights and remedies of a secured
party under the UCC as well as all other rights and remedies available at law
or in equity, and, at Mortgagee’s option, Mortgagee may also invoke the
remedies provided in Article V of this Mortgage as to such personal
property and all the portions of the Subject Property which are personal
property.

 

1.3        Fixture Filing.  Certain of the Subject Property is or will
become “fixtures” (as that term is defined in the UCC) on the Subject
Property.  Upon recording this Security
Instrument in the real property records, this Security Instrument shall be
effective as a financing statement filed as a fixture filing.  In addition, a carbon, photographic or other
reproduction of this Security Instrument and/or any financing statement
relating hereto shall be sufficient for filing and/or recording as a financing
statement.  The filing of any other
financing statement relating to any personal property rights or interests
described herein shall not be construed to diminish any right or priority
hereunder.

 

1.4        Address.  The address of the Subject Property (if
known) is:

 

	
  Atchison
  County:

  	
  1101
  Commercial, 1100 Main, 1200 Main and 1300 Main, Atchison, Kansas 66002

  

 

2

 

	
  Pottawatomie
  County:

  	
  210
  South Leonard Street, Onaga, Kansas 66521–9796

  
	
   

  	
   

  
	
  Wyandotte
  County:

  	
  16
  Kansas Avenue, Kansas City, Kansas 66105–1429.

  

 

Neither
the failure to designate an address nor any inaccuracy in the address
designated shall affect the validity or priority of the lien of this Mortgage
on the Subject Property as described on Exhibit A.  In the event of any conflict between the
provisions of Exhibit A and said address, Exhibit A
shall control.

 

ARTICLE II.  OBLIGATIONS SECURED

 

2.1        Obligations Secured.  Mortgagor makes this grant and assignment for
the purpose of securing the following obligations (each, a “Secured Obligation” and collectively, the “Secured Obligations”):

 

(a)        payment to Mortgagee of all sums at any
time owing and performance of all other obligations arising under or in
connection with that certain promissory note (“Note”) dated as of July 21, 2009, in the principal amount
of Twenty Five Million and N0/100 Dollars ($25,000,000), with interest as
provided therein, executed by Mortgagor and payable to Mortgagee or its order,
together with the payment and performance of any other indebtedness or
obligations incurred in connection with the credit accommodation evidenced by
the Note, whether or not specifically referenced therein; and

 

(b)        payment and performance of all
obligations of Mortgagor under this Mortgage, together with all advances,
payments or other expenditures made by Mortgagee as or for the payment or
performance of any such obligations of Mortgagor; and

 

(c)        payment and performance of all
obligations, if any, and the contracts under which they arise, which any rider
attached to and recorded with this Mortgage recites are secured hereby; and

 

(d)        payment to Mortgagee of all liability,
whether liquidated or unliquidated, defined, contingent, conditional or of any
other nature whatsoever, and performance of all other obligations, arising
under any swap, derivative, foreign exchange or hedge transaction or
arrangement (or other similar transaction or arrangement howsoever described or
defined) at any time entered into with Mortgagee in connection with any Secured
Obligation; and

 

(e)        payment and performance of all future
advances and other obligations that the then record owner of the Subject
Property may agree to pay and/or perform (whether as principal, surety or
guarantor) for the benefit of Mortgagee, when any such advance or other
obligation is evidenced by a writing which recites that it is secured by this
Mortgage; and

 

(f)         all modifications, extensions and
renewals of any of the Secured Obligations (including without limitation, (i) modifications,
extensions or renewals at a different rate of interest, or (ii) deferrals
or accelerations of the required principal payment dates or interest payment
dates or both, in whole or in part), however evidenced, whether or not any such
modification, extension or renewal is evidenced by a new or additional
promissory note or notes.

 

2.2        Obligations.  The term “obligations” is used herein in its
most comprehensive sense and includes any and all advances, debts, obligations
and liabilities heretofore, now or hereafter made, incurred or created, whether
voluntary or involuntary and however arising, whether due or not due, absolute
or contingent, liquidated or unliquidated, determined or undetermined, joint or
several, including

 

3

 

without
limitation, all principal, interest, charges, including prepayment charges and
late charges, and loan fees at any time accruing or assessed on any Secured
Obligation.

 

2.3        Incorporation.  All terms of the Secured Obligations are
incorporated herein by this reference. 
All persons who may have or acquire an interest in the Subject Property
are hereby deemed to have notice of the terms of the Secured Obligations and to
have notice, if provided therein, that:  (a) the
Note or any other Secured Obligation may permit borrowing, repayment and
reborrowing;  and (b) the rate of
interest on one or more of the Secured Obligations may vary from time to time.

 

2.4        Future
Advances.  This Mortgage secures all
future advances and obligations under the Secured Obligations up to the maximum
principal sum of $15,000,000 (the “Maximum
Sum”) for the subject property located in the State of Kansas
pursuant to K.S.A. 58-2236.  The total
amount of obligations and advances secured hereby may decrease or increase from
time to time, provided that the amount of the lien shall not at any time exceed
the Maximum Sum, all accrued interest thereon, and all amounts (other than
principal) payable by any obligor under the Secured Obligations, including,
without limitation, all taxes and insurance premiums paid or advanced by
Mortgagee with respect to the Subject Property, all costs of enforcing and
foreclosing on the lien of this Mortgage, and all sums expended or incurred for
the protection of the security interest hereby created in the Subject Property,
regardless whether the foregoing was advanced, paid, incurred or expended prior
to the date hereof or at any future time or times.

 

ARTICLE III.  ASSIGNMENT OF RENTS

 

3.1        Assignment.  For the purposes and upon the terms and
conditions set forth herein, Mortgagor irrevocably assigns to Mortgagee all of
Mortgagor’s right, title and interest in, to and under all leases, licenses,
rental agreements and other agreements of any kind relating to the use or
occupancy of any of the Subject Property, whether existing as of the date
hereof or at any time hereafter entered into, together with all guarantees of
and security for any tenant’s or lessee’s performance thereunder, and all
amendments, extensions, renewals and modifications thereto (each, a “Lease” and
collectively, the “Leases”), together with any and all other rents, issues and
profits of the Subject Property (collectively, “Rents”).  This assignment shall not impose upon
Mortgagee any duty to produce Rents from the Subject Property, nor cause
Mortgagee to be: (a) a “mortgagee in possession” for any purpose; (b) responsible
for performing any of the obligations of the lessor or landlord under any
Lease; or (c) responsible for any waste committed by any person or entity
at any time in possession of the Subject Property or any part thereof, or for
any dangerous or defective condition of the Subject Property, or for any
negligence in the management, upkeep, repair or control of the Subject
Property.  This is an absolute
assignment, not an assignment for security only, and Mortgagee’s right to Rents
is not contingent upon and may be exercised without taking possession of the
Subject Property.  Mortgagor agrees to
execute and deliver to Mortgagee, within five (5) days of Mortgagee’s
written request, such additional documents as Mortgagee may reasonably request to
further evidence the assignment to Mortgagee of any and all Leases and
Rents.  Mortgagee, at Mortgagee’s option
and without notice, may notify any lessee or tenant of this assignment of the
Leases and Rents.

 

3.2        Protection of Security.  To protect the security of this assignment,
Mortgagor agrees:

 

(a)        At
Mortgagor’s sole cost and expense:  (i) to
perform each obligation to be performed by the lessor or landlord under each
Lease and to enforce or secure the performance of each obligation to be
performed by the lessee or tenant under each Lease; (ii) not to modify any
Lease in any material respect, i.e. affecting the rent or other payments,
length of term, identity of tenant, or substantially affect the landlord’s or
tenant’s obligations thereunder; nor accept surrender under or terminate the
term of any Lease; (iii) not to anticipate the Rents under any Lease; and (iv) not
to waive or release any lessee or tenant of or from any Lease obligations.  Mortgagor assigns to Mortgagee all of
Mortgagor’s right and

 

4

 

power to modify the terms of any Lease
(except for nonmaterial modifications as described above), to accept a
surrender under or terminate the term of or anticipate the Rents under any
Lease, and to waive or release any lessee or tenant of or from any Lease
obligations, and any attempt on the part of Mortgagor to exercise any such
rights or powers without Mortgagee’s prior written consent shall be a breach of
the terms hereof.

 

(b)        At Mortgagor’s sole cost and expense, to
defend any action in any manner connected with any Lease or the obligations
thereunder, and to pay all costs of Mortgagee, including reasonable attorneys’
fees, in any such action in which Mortgagee may appear.

 

(c)        That, should Mortgagor fail to do any
act required to be done by Mortgagor under a Lease, then Mortgagee, but without
obligation to do so and without notice to Mortgagor and without releasing
Mortgagor from any obligation hereunder, may make or do the same in such manner
and to such extent as Mortgagee deems necessary to protect the security hereof,
and, in exercising such powers, Mortgagee may employ attorneys and other
agents, and Mortgagor shall pay necessary costs and reasonable attorneys’ fees
incurred by Mortgagee, or its agents, in the exercise of the powers granted
herein.  Mortgagor shall give prompt
notice to Mortgagee of any material default by any lessee or tenant under any
Lease which continues beyond a reasonable cure period, and of any notice of
default on the part of Mortgagor under any Lease received from a lessee or
tenant thereunder, which continues beyond a reasonable cure period, together
with an accurate and complete copy thereof.

 

(d)        To pay to Mortgagee immediately upon
demand all sums expended under the authority hereof, including reasonable
attorneys’ fees, together with interest thereon at the highest rate per annum
payable under any Secured Obligation, and the same, at Mortgagee’s option, may
be added to any Secured Obligation and shall be secured hereby.

 

3.3        License.  Mortgagee confers upon Mortgagor a license (“License”)
to collect and retain the Rents as, but not before, they come due and payable,
until the occurrence of any Default. 
Upon the occurrence of any Default, the License shall be automatically
revoked, and Mortgagee may, at Mortgagee’s option and without notice, either in
person or by agent, with or without bringing any action, or by a receiver to be
appointed by a court:  (a) enter,
take possession of, manage and operate the Subject Property or any part
thereof; (b) make, cancel, enforce or modify any Lease; (c) obtain
and evict tenants, fix or modify Rents, and do any acts which Mortgagee deems
proper to protect the security hereof; and (d) either with or without
taking possession of the Subject Property, in its own name, sue for or
otherwise collect and receive all Rents, including those past due and unpaid,
and apply the same in accordance with the provisions of this Mortgage.  The entering and taking possession of the
Subject Property, the collection of Rents and the application thereof as
aforesaid, shall not cure or waive any Default, nor waive, modify or affect any
notice of default hereunder, nor invalidate any act done pursuant to any such
notice.  The License shall not grant to
Mortgagee the right to possession, except as provided in this Mortgage.  Any indemnifications of Mortgagor in favor of
Mortgagee hereunder shall not extend to actions taken by Mortgagee with respect
to the Subject Property or the tenants or lessees after Mortgagee’s revocation
of the License contained herein.

 

ARTICLE IV.  RIGHTS AND DUTIES OF THE PARTIES

 

4.1        Title.  Mortgagor warrants that, except as disclosed
to Mortgagee prior to the date hereof in a writing which refers to this
warranty, Mortgagor lawfully possesses and holds fee simple title to, or if
permitted by Mortgagee in writing, a leasehold interest in, the Subject
Property without limitation on the right to encumber, as herein provided, and
that this Mortgage is a valid lien on the Subject Property and all of Mortgagor’s
interest therein.

 

5

 

4.2        Taxes and Assessments.  Subject to the right, if any, of Mortgagor to
contest payment of the following pursuant to any other agreement between
Mortgagor and Mortgagee, Mortgagor shall pay prior to delinquency all taxes,
assessments, levies and charges imposed: (a) by any public or quasi-public
authority or utility company which are or which may become a lien upon or cause
a loss in value of the Subject Property or any interest therein; or (b) by
any public authority upon Mortgagee by reason of its interest in any Secured
Obligation or in the Subject Property, or by reason of any payment made to
Mortgagee pursuant to any Secured Obligation; provided however, that Mortgagor
shall have no obligation to pay any income taxes of Mortgagee.  Promptly upon request by Mortgagee, Mortgagor
shall furnish to Mortgagee satisfactory evidence of the payment of all of the
foregoing.  Mortgagee is hereby
authorized to request and receive from the responsible governmental and
non-governmental personnel written statements with respect to the accrual and
payment of any of the foregoing.

 

4.3        Performance of Secured Obligations.  Mortgagor shall promptly pay and perform each
Secured Obligation when due.

 

4.4        Liens, Encumbrances and Charges.  Mortgagor shall immediately discharge any
lien on the Subject Property not approved by Mortgagee in writing.  The preceding sentence does not apply to
liens which are exceptions to the title of the Subject Property and which are
actually set forth in (i) Title Commitment No. NCS-406260 dated July 29,
2009, issued by First American Title Insurance Company as to the Subject
Property located in Atchison County, Kansas, (ii) Title Commitment No. NCS-406315
dated July 27, 2009, issued by First American Title Insurance Company as
to the Subject Property located in Potawatomie County, Kansas or (iii) Title
Commitment No. NCS-406269 dated July 23, 2009, issued by First
American Title Insurance Company as to the Subject Property located in
Wyandotte County, Kansas, nor liens arising hereafter for ordinary real estate
taxes and assessments.  Except as
otherwise provided in any Secured Obligation or other agreement with Mortgagee,
Mortgagor shall pay when due all obligations secured by or reducible to liens
and encumbrances which shall now or hereafter encumber the Subject Property,
whether senior or subordinate hereto, including without limitation, any
mechanics’ liens, although if Mortgagor feels that any mechanic’s lien is filed
in excess of the true amount owing to the mechanic’s lien claimant, Mortgagor
may (so long as Mortgagor has not committed any Default hereunder) upon
depositing with Mortgagee an amount equal to such claim, contest the amount and
validity of such mechanic’s lien, and during the entire period of such contest
shall defend and indemnify Mortgagee against any loss, cost or expense incurred
by Mortgagee thereby, and Mortgagor shall in any event pay the full amount of
any final and nonappealable judgment resulting from such mechanic’s lien at
least thirty (30) days before any sale or other execution resulting from such
judgment is scheduled to take place.

 

4.5        Insurance.  Mortgagor shall insure the Subject Property
against loss or damage by fire and such other risks as Mortgagee shall from
time to time require.  Mortgagor shall
carry public liability insurance, flood insurance as may be required by
applicable law and such other insurance as Mortgagee may reasonably require and
which is typical for commercial properties in the vicinity of and of similar
nature to the Property, including without limitation, business interruption
insurance or loss of rental value insurance. 
Mortgagor shall maintain all required insurance at Mortgagor’s expense,
under policies issued by companies and in form and substance reasonably
satisfactory to Mortgagee (Mortgagee hereby agrees that mortgagor’s current
insurers, of which Mortgagee has been advised, are satisfactory).  Mortgagee, by reason of accepting, rejecting,
approving or obtaining insurance, shall not incur any liability for: (a) the
existence, nonexistence, form or legal sufficiency thereof; (b) the
solvency of any insurer; or (c) the payment of losses.  All policies and certificates of insurance
shall name Mortgagee as an additional loss payee, and shall provide that the
insurance cannot be terminated as to Mortgagee except upon a minimum of ten (10) days’
prior written notice to Mortgagee. 
Immediately upon any request by Mortgagee, Mortgagor shall deliver to
Mortgagee duplicates of the original copies of all such policies or
certificates, with receipts evidencing annual prepayment of the premiums.

 

6

 

4.6        Tax and Insurance Impounds.  In the event any Default occurs hereunder,
and provided that a tax and insurance impound is not then being implemented by
the holder of a mortgage on the Subject Property which is senior to the lien of
this Mortgage, then at any time thereafter upon written notice from Mortgagee to
Mortgagor, Mortgagor shall, until all Secured Obligations have been paid in
full, pay to Mortgagee monthly, annually or as otherwise directed by Mortgagee
an amount estimated by Mortgagee to be equal to: (a) all taxes,
assessments, levies and charges imposed by any public or quasi-public authority
or utility company which are or may become a lien upon the Subject Property and
will become due for the tax year during which such payment is so directed; and (b) premiums
for fire, other hazard and mortgage insurance next due.  If Mortgagee determines that amounts paid by
Mortgagor are insufficient for the payment in full of such taxes, assessments,
levies and/or insurance premiums, Mortgagee shall notify Mortgagor of the increased
amount required for the payment thereof when due, and Mortgagor shall pay to
Mortgagee such additional amount within thirty (30) days after notice from
Mortgagee.  All amounts so paid shall not
bear interest, except to the extent and in the amount required by law.  So long as there is no Default, Mortgagee
shall apply said amounts to the payment of, or at Mortgagee’s sole option
release said funds to Mortgagor for application to and payment of, such taxes,
assessments, levies, charges and insurance premiums.  If a Default exists, Mortgagee at its sole
option may apply all or any part of said amounts to any Secured Obligation
and/or to cure such Default, in which event Mortgagor shall be required to
restore all amounts so applied, as well as to cure any Default not cured by
such application.  Mortgagor hereby
grants and transfers to Mortgagee a security interest in all amounts so paid
and held in Mortgagee’s possession, and all proceeds thereof, to secure the
payment and performance of each Secured Obligation.  Upon assignment of this Mortgage, Mortgagee
shall have the right to assign all amounts collected and in its possession to
its assignee, whereupon Mortgagee shall be released from all liability with
respect thereto.  The existence of said
impounds shall not limit Mortgagee’s rights under any other provision of this
Mortgage or any other agreement, statute or rule of law.  Within ninety-five (95) days following full
repayment of all Secured Obligations (other than as a consequence of a
foreclosure or conveyance in lieu of foreclosure of the liens and security
interests securing any Secured Obligation), or at such earlier time as
Mortgagee in its discretion may elect, the balance of all amounts collected and
in Mortgagee’s possession shall be paid to Mortgagor, and no other party shall
have any right of claim thereto.

 

4.7        Damages; Insurance and Condemnation Proceeds.

 

(a)        (i) All awards of damages and all
other compensation payable directly or indirectly by reason of a condemnation
or proposed condemnation (or transfer in lieu thereof) for public or private
use affecting the Subject Property; (ii) all other claims and awards for
damages to or decrease in value of the Subject Property; (iii) all
proceeds of any insurance policies payable by reason of loss sustained to the
Subject Property; and (iv) all interest which may accrue on any of the
foregoing, are all (to the extent that such amounts are not being required to
be paid to the holder of a mortgage on the Subject Property which is senior to
the lien of this Mortgage) absolutely and irrevocably assigned to and shall be
paid to Mortgagee.  In such event, at the
absolute discretion of Mortgagee, whether or not its security is or may be
impaired, but subject to applicable law if any, and without regard to any
requirement contained in any other Section hereof, Mortgagee may apply all
or any of the proceeds it receives to its expenses in settling, prosecuting or
defending any such claim and apply the balance to the Secured Obligations in
any order, and release all or any part of the proceeds to Mortgagor upon any
conditions Mortgagee may impose.  In such
event, Mortgagee may commence, appear in, defend or prosecute any assigned
claim or action, and may adjust, compromise, settle and collect all claims and
awards assigned to Mortgagee; provided however, that in no event shall
Mortgagee be responsible for any failure to collect any claim or award,
regardless of the cause of the failure.

 

(b)        At its sole option, Mortgagee may permit
insurance or condemnation proceeds held by Mortgagee to be used for repair or
restoration but may impose any conditions on such use as Mortgagee deems
necessary.

 

7

 

4.8        Maintenance and Preservation of
Subject Property.  Subject to the
provisions of any Secured Obligation, Mortgagor covenants:

 

(a)        to keep the Subject Property in good
condition and repair;

 

(b)        except with Mortgagee’s prior written
consent, not to remove or demolish the Subject Property, nor alter, restore or
add to the Subject Property (except for the replacement of equipment or
fixtures with like items of similar or greater value), nor initiate or
acquiesce in any change in any zoning or other land classification which
affects the Subject Property;

 

(c)        to restore promptly and in good
workmanlike manner any portion of the Subject Property which may be damaged or
destroyed, unless Mortgagee requires that all of the insurance proceeds be used
to reduce the Secured Obligations as provided in the Section hereof
entitled Damages; Insurance and Condemnation Proceeds;

 

(d)        to comply with and not to suffer
violation of any or all of the following which govern acts or conditions on, or
otherwise affect the Subject Property:  (i) laws,
ordinances, regulations, standards and judicial and administrative rules and
orders; (ii) covenants, conditions, restrictions and equitable servitudes,
whether public or private; and (iii) requirements of insurance companies
and any bureau or agency which establishes standards of insurability;

 

(e)        not to commit or permit waste of the
Subject Property; and

 

(f)         to do all other acts which from the
character or use of the Subject Property may be reasonably necessary to
maintain and preserve its value.

 

4.9        Hazardous Substances; Environmental
Provisions.  Mortgagor represents and
warrants to Mortgagee to its actual knowledge as follows:

 

(a)        Except as disclosed to Mortgagee in
writing prior to the date hereof, the Subject Property is not and has not been
a site for the use, generation, manufacture, storage, treatment, disposal,
release or threatened release, transportation or presence of any substances
which are “hazardous substances,” “hazardous wastes,” “hazardous materials” or “toxic
substances” under the Hazardous Materials Laws, as defined below, and/or other
applicable environmental laws, ordinances and regulations (collectively, the “Hazardous
Materials”).

 

(b)        Except as disclosed to Mortgagee in Schedule
5.11 to the Credit and Security Agreement entered into between the
Mortgagor and the Mortgagee dated July 21, 2009 (as same may be amended or
replaced from time to time, the “Credit Agreement”),
the Subject Property is in compliance with all laws, ordinances and regulations
relating to Hazardous Materials (collectively, the “Hazardous Materials Laws”),
including without limitation, the Clean Air Act, the Federal Water Pollution
Control Act, the Federal Resource Conservation and Recovery Act of 1976, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980,
the Superfund Amendments and Reauthorization Act of 1986, the Federal Toxic
Substances Control Act and the Occupational Safety and Health Act, as any of
the same may be amended, modified or supplemented from time to time, and any
other applicable federal, state or local environmental laws, and any rules or
regulations adopted pursuant to any of the foregoing.

 

(c)        Except as disclosed to Mortgagee in Schedule
5.11 to the Credit Agreement, there are no claims or actions pending or
threatened against Mortgagor or the Subject Property by any governmental entity
or agency, or any other person or entity, relating to any Hazardous Materials
or pursuant to any Hazardous Materials Laws.

 

8

 

(d)        Mortgagor hereby agrees to defend,
indemnify and hold harmless Mortgagee, its directors, officers, employees,
agents, successors and assigns, from and against any and all losses, damages,
liabilities, claims, actions, judgments, court costs and legal or other
expenses (including without limitation, attorneys’ fees and expenses) which
Mortgagee may incur as a direct or indirect consequence of the use, generation,
manufacture, storage, treatment, disposal, release or threatened release,
transportation or presence of Hazardous Materials in, on, under or about the
Subject Property.  Mortgagor shall pay to
Mortgagee immediately upon demand any amounts owing under this indemnity,
together with interest from the date of demand until paid in full at the
highest rate of interest applicable to any Secured Obligation.  MORTGAGOR’S DUTY AND OBLIGATION TO DEFEND,
INDEMNIFY AND HOLD HARMLESS MORTGAGEE SHALL SURVIVE THE CANCELLATION OF THE
SECURED OBLIGATIONS AND THE RELEASE OR PARTIAL RELEASE OF THIS MORTGAGE.

 

(e)        Mortgagor shall immediately advise
Mortgagee in writing upon Mortgagor’s discovery of any occurrence or condition
on the Subject Property, or on any real property adjoining or in the vicinity
of the Subject Property, that does or could cause all or any part of the
Subject Property to be contaminated with any Hazardous Materials or otherwise
be in violation of any Hazardous Materials Laws, or cause the Subject Property
to be subject to any restrictions on the ownership, occupancy, transferability
or use thereof under any Hazardous Materials Laws.

 

4.10      Protection of Security.  Mortgagor shall, at Mortgagor’s sole
expense:  (a) protect, preserve and
defend the Subject Property and Mortgagor’s title and right to possession of
the Subject Property against all adverse claims; (b) if Mortgagor’s
interest in the Subject Property is a leasehold interest or estate, pay and
perform in a timely manner all obligations to be paid and/or performed by the
lessee or tenant under the lease or other agreement creating such leasehold
interest or estate; and (c) protect, preserve and defend the security of
this Mortgage and the rights and powers of Mortgagee under this Mortgage
against all adverse claims.  Mortgagor
shall give Mortgagee prompt notice in writing of the assertion of any claim,
the filing of any action or proceeding, or the occurrence of any damage,
condemnation offer or other action relating to or affecting the Subject
Property and, if Mortgagor’s interest in the Subject Property is a leasehold
interest or estate, of any notice of default or demand for performance under
the lease or other agreement pursuant to which such leasehold interest or
estate was created or exists.

 

4.11      Powers and Duties of Mortgagee.  Mortgagee may, upon written request, without
obligation to do so or liability therefor and without notice:  (a) release all or any part of the
Subject Property from the lien of this Mortgage; (b) consent to the making
of any map or plat of the Subject Property; and (c) join in any grant of
easement or declaration of covenants and restrictions with respect to the
Subject Property, or any extension agreement or any agreement subordinating the
lien or charge of this Mortgage. 
Mortgagee may from time to time apply to any court of competent
jurisdiction for aid and direction in the exercise or enforcement of its rights
and remedies available under this Mortgage, and may obtain orders or decrees
directing, confirming or approving acts in the exercise or enforcement of said
rights and remedies.  Mortgagee has no
obligation to notify any party of any pending sale or any action or proceeding
(including, but not limited to, actions in which Mortgagor or Mortgagee shall
be a party) unless held or commenced and maintained by Mortgagee under this
Mortgage.

 

4.12      Compensation; Exculpation; Indemnification.

 

(a)        Mortgagor shall pay Mortgagee reasonable
compensation for services rendered concerning this Mortgage, including without
limitation, the providing of any statement of amounts owing under any Secured
Obligation.  Mortgagee shall not directly
or indirectly be liable to Mortgagor or any other person as a consequence of:  (i) the exercise of any rights, remedies
or powers granted to Mortgagee in this Mortgage; (ii) the failure or
refusal of Mortgagee to perform or discharge any obligation or liability of

 

9

 

Mortgagor
under this Mortgage or any Lease or other agreement related to the Subject
Property; or (iii) any loss sustained by Mortgagor or any third party as a
result of Mortgagee’s failure to lease the Subject Property after any Default
or from any other act or omission of Mortgagee in managing the Subject Property
after any Default unless such loss is caused by the willful misconduct or gross
negligence of Mortgagee; and no such liability shall be asserted or enforced
against Mortgagee, and all such liability is hereby expressly waived and
released by Mortgagor.

 

(b)        Mortgagor
shall indemnify Mortgagee against, and hold Mortgagee harmless from, any and
all losses, damages, liabilities, claims, causes of action, judgments, court
costs, attorneys’ fees and other legal expenses, costs of evidence of title,
costs of evidence of value, and other expenses which Mortgagee may suffer or
incur:  (i) by reason of this
Mortgage; (ii) by reason of the performance of any act required or
permitted hereunder or by law; (iii) as a result of any failure of
Mortgagor to perform Mortgagor’s obligations; or (iv) by reason of any
alleged obligation or undertaking of Mortgagee to perform or discharge any of
the representations, warranties, conditions, covenants or other obligations
contained in any other document related to the Subject Property, including
without limitation, the payment of any taxes, assessments, rents or other lease
obligations, liens, encumbrances or other obligations of Mortgagor under this
Mortgage.  Mortgagor’s duty to indemnify
Mortgagee shall survive the payment, discharge or cancellation of the Secured
Obligations and the release or satisfaction, in whole or in part, of this
Mortgage.

 

(c)        Mortgagor shall pay all indebtedness
arising under this Section immediately upon demand by Mortgagee, together
with interest thereon from the date of demand until paid in full at the highest
rate per annum payable under any Secured Obligation.  Mortgagee may, at its option, add any such
indebtedness to any Secured Obligation.

 

4.13      Due on Sale or Encumbrance.  Except as permitted by the provisions of any
Secured Obligation or applicable law, if the Subject Property or any interest
therein shall be sold, transferred,mortgaged, assigned, encumbered or leased,
whether voluntarily, involuntarily or by operation of law (each of which
actions and events is called a “Transfer”), without Mortgagee’s prior written
consent, THEN Mortgagee may, at its sole option, declare all Secured
Obligations immediately due and payable in full.  Mortgagor shall notify Mortgagee in writing
of each Transfer within ten (10) business days of the date thereof.

 

4.14      Releases, Extensions, Modifications and
Additional Security.  Without notice
to or the consent, approval or agreement of any persons or entities having any
interest at any time in the Subject Property or in any manner obligated under
any Secured Obligation (each, an “Interested Party”), Mortgagee may, from time
to time, release any Interested Party from liability for the payment of any
Secured Obligation, take any action or make any agreement extending the
maturity or otherwise altering the terms or increasing the amount of any
Secured Obligation, accept additional security, and enforce, waive, subordinate
or release all or a portion of the Subject Property or any other security for
any Secured Obligation.  None of the
foregoing actions shall release or reduce the personal liability of any
Interested Party, nor release or impair the priority of the lien of this
Mortgage upon the Subject Property.

 

4.15      Release of Mortgage.  Upon satisfaction in full of the Secured
Obligations, Mortgagee, without warranty, shall deliver for recording in the
appropriate real property records a satisfaction or release of Mortgage for the
Subject Property, or that portion thereof then covered hereby, from the lien of
this Mortgage.

 

4.16      Subrogation.  Mortgagee shall be subrogated to the lien of
all encumbrances, whether or not released of record, paid in whole or in part
by Mortgagee pursuant to this Mortgage or by the proceeds of any Secured
Obligation.

 

10

 

4.17                  Mortgagor Different From
Obligor (“Third Party Mortgagor”).  As used in this Section, the term “Obligor”
shall mean each person or entity obligated in any manner under any of the
Secured Obligations; and the term “Third Party Mortgagor” shall mean (1) each
person or entity included in the definition of Mortgagor herein and which is
not an Obligor under all of the Secured Obligations, and (2) each person
or entity included in the definition of Mortgagor herein if any Obligor is not
included in said definition.

 

(a)                         Representations
and Warranties.  Each Third
Party Mortgagor represents and warrants to Mortgagee that:  (i) this Mortgage is executed at an
Obligor’s request; (ii) this Mortgage complies with all agreements between
each Third Party Mortgagor and any Obligor regarding such Third Party Mortgagor’s
execution hereof; (iii) Mortgagee has made no representation to any Third
Party Mortgagor as to the creditworthiness of any Obligor; and (iv) each
Third Party Mortgagor has established adequate means of obtaining from each
Obligor on a continuing basis financial and other information pertaining to
such Obligor’s financial condition.  Each
Third Party Mortgagor agrees to keep adequately informed from such means of any
facts, events or circumstances which might in any way affect such Third Party
Mortgagor’s risks hereunder.  Each Third
Party Mortgagor further agrees that Mortgagee shall have no obligation to
disclose to any Third Party Mortgagor any information or material about any
Obligor which is acquired by Mortgagee in any manner.  The liability of each Third Party Mortgagor
hereunder shall be reinstated and revived, and the rights of Mortgagee shall
continue if and to the extent that for any reason any amount at any time paid
on account of any Secured Obligation is rescinded or must otherwise be restored
by Mortgagee, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise, all as though such amount had not been paid.  The determination as to whether any amount so
paid must be rescinded or restored shall be made by Mortgagee in its sole
discretion; provided however, that if Mortgagee chooses to contest any such
matter at the request of any Third Party Mortgagor, each Third Party Mortgagor
agrees to indemnify and hold Mortgagee harmless from and against all costs and
expenses, including reasonable attorneys’ fees, expended or incurred by
Mortgagee in connection therewith, including without limitation, in any
litigation with respect thereto.

 

(b)                        Waivers.

 

(i)  Each Third Party Mortgagor
waives any right to require Mortgagee to: 
(A) proceed against any Obligor or any other person; (B) marshal
assets or proceed against or exhaust any security held from any Obligor or any
other person; (C) give notice of the terms, time and place of any public
or private sale or other disposition of personal property security held from
any Obligor or any other person; (D) take any other action or pursue any
other remedy in Mortgagee’s power; or (E) make any presentment or demand
for performance, or give any notice of nonperformance, protest, notice of
protest or notice of dishonor hereunder or in connection with any obligations
or evidences of indebtedness held by Mortgagee as security for or which
constitute in whole or in part the Secured Obligations, or in connection with
the creation of new or additional obligations.

 

(ii)  Each Third Party Mortgagor
waives any defense to its obligations hereunder based upon or arising by reason
of: (A) any disability or other defense of any Obligor or any other person; (B) the
cessation or limitation from any cause whatsoever, other than payment in full,
of any Secured Obligation; (C) any lack of authority of any officer,
director, partner, agent or any other person acting or purporting to act on
behalf of any Obligor which is a corporation, partnership or other type of
entity, or any defect in the formation of any such Obligor; (D) the
application by any Obligor of the proceeds of any Secured Obligation for
purposes other than the purposes represented by any Obligor to, or intended or
understood by, Mortgagee or any Third Party Mortgagor; (E) any act or
omission by Mortgagee which directly or indirectly results in or aids the
discharge of any Obligor or any portion of any Secured Obligation by operation
of law or otherwise, or which in any way impairs or suspends any rights or
remedies of Mortgagee against any Obligor; (F) any impairment of the value
of any interest in any security for the Secured Obligations or any portion
thereof, including without limitation, the failure to

 

11

 

obtain or maintain perfection or recordation of any interest in any
such security, the release of any such security without substitution, and/or
the failure to preserve the value of, or to comply with applicable law in
disposing of, any such security; (G) any modification of any Secured
Obligation, in any form whatsoever, including without limitation the renewal,
extension, acceleration or other change in time for payment of, or other change
in the terms of, any Secured Obligation or any portion thereof, including
increase or decrease of the rate of interest thereon; or (H) any
requirement that Mortgagee give any notice of acceptance of this Mortgage.  Until all Secured Obligations shall have been
paid in full, no Third Party Mortgagor shall have any right of subrogation, and
each Third Party Mortgagor waives any right to enforce any remedy which
Mortgagee now has or may hereafter have against any Obligor or any other
person, and waives any benefit of, or any right to participate in, any security
now or hereafter held by Mortgagee.  Each
Third Party Mortgagor further waives all rights and defenses it may have
arising out of: (1) any election of remedies by Mortgagee, even though
that election of remedies, such as a non-judicial foreclosure with respect to
any security for any portion of the Secured Obligations, destroys such Third
Party Mortgagor’s rights of subrogation or such Third Party Mortgagor’s rights
to proceed against any Obligor for reimbursement; or (2) any loss of
rights any Third Party Mortgagor may suffer by reason of any rights, powers or
remedies of any Obligor in connection with any anti-deficiency laws or any
other laws limiting, qualifying or discharging any Obligor’s obligations.

 

(iii)  If any of said waivers is
determined to be contrary to any applicable law or public policy, such waiver
shall be effective to the extent permitted by applicable law or public policy.

 

ARTICLE V.  DEFAULT PROVISIONS

 

5.1                        Default.  The occurrence of any of the following shall
constitute a “Default” under this Mortgage: (a) Mortgagor shall fail to
observe or perform any obligation or agreement contained herein; (b) any
representation or warranty of Mortgagor herein shall prove to be incorrect, false
or misleading in any material respect when made; or (c) any material
default in the payment or performance of any obligation, or any defined event
of default, under any provisions of the Note or any other contract, instrument
or document executed in connection with, or with respect to, any Secured
Obligation, which continues after the expiration of any applicable notice and
right to cure provisions contained in the relevant document describing such
event of default.

 

5.2                        Rights and
Remedies.  Upon the occurrence
of any Default, and at any time thereafter, Mortgagee shall have all the
following rights and remedies:

 

(a)                         With or without
notice, to declare all Secured Obligations immediately due and payable in full.

 

(b)                        With or without notice, without
releasing Mortgagor from any Secured Obligation and without becoming a
mortgagee in possession, to cure any Default of Mortgagor and, in connection
therewith: (i) to enter upon the Subject Property and to do such acts and
things as Mortgagee deems necessary or desirable to protect the security of
this Mortgage, including without limitation, to appear in and defend any action
or proceeding purporting to affect the security of this Mortgage or the rights
or powers of Mortgagee hereunder; (ii) to pay, purchase, contest or
compromise any encumbrance, charge, lien or claim of lien which, in the
judgment of Mortgagee, is senior in priority to this Mortgage, the judgment of
Mortgagee being conclusive as between the parties hereto; (iii) to obtain,
and to pay any premiums or charges with respect to, any insurance required to
be carried hereunder; and (iv) to employ counsel, accountants, contractors
and other appropriate persons to assist Mortgagee.

 

(c)                         To commence and
maintain an action or actions in any court of competent jurisdiction to
foreclose this Mortgage or to obtain specific enforcement of the covenants of
Mortgagor under this Mortgage, and Mortgagor agrees that such covenants shall
be specifically enforceable by injunction or

 

12

 

any
other appropriate equitable remedy.  For
the purposes of any suit brought under this subsection, Mortgagor waives the
defenses of laches and any applicable statute of limitations.

 

(d)                        To apply to a
court of competent jurisdiction for and obtain appointment of a receiver of the
Subject Property as a matter of strict right and without regard to: (i) the
adequacy of the security for the repayment of the Secured Obligations; (ii) the
existence of a declaration that the Secured Obligations are immediately due and
payable; or (iii) the filing of a notice of default; and Mortgagor
consents to such appointment.

 

(e)                         To take and
possess all documents, books, records, papers and accounts of Mortgagor or the
then owner of the Subject Property; to make or modify Leases of, and other
agreements with respect to, the Subject Property upon such terms and conditions
as Mortgagee deems proper; and to make repairs, alterations and improvements to
the Subject Property deemed necessary, in Mortgagee’s judgment, to protect or
enhance the security hereof.

 

(f)                           Subject to the
Kansas one-action rule, to resort to and realize upon the security hereunder
and any other security now or later held by Mortgagee concurrently or
successively and in one or several consolidated or independent judicial actions
or lawfully taken non-judicial proceedings, or both, and to apply the proceeds
received in accordance with the Section hereof entitled Application of
Foreclosure Sale Proceeds, all in such order and manner as Mortgagee shall
determine in its sole discretion.

 

(g)                        Upon sale of
the Subject Property at any judicial foreclosure, Mortgagee may credit bid (as
determined by Mortgagee in its sole discretion) all or any portion of the
Secured Obligations.  In determining such
credit bid, Mortgagee may, but is not obligated to, take into account all or
any of the following: (i) appraisals of the Subject Property as such
appraisals may be discounted or adjusted by Mortgagee in its sole underwriting
discretion; (ii) expenses and costs incurred by Mortgagee with respect to
the Subject Property prior to foreclosure; (iii) expenses and costs which
Mortgagee anticipates will be incurred with respect to the Subject Property
after foreclosure, but prior to resale, including without limitation, costs of
structural reports and other due diligence, costs to carry the Subject Property
prior to resale, costs of resale (e.g., commissions, attorneys’ fees, and
taxes), Hazardous Materials clean-up and monitoring, deferred maintenance,
repair, refurbishment and retrofit, and costs of defending or settling
litigation affecting the Subject Property; (iv) declining trends in real
property values generally and with respect to properties similar to the Subject
Property; (v) anticipated discounts upon resale of the Subject Property as
a distressed or foreclosed property; (vi) the existence of additional
collateral, if any, for the Secured Obligations; and (vii) such other
factors or matters that Mortgagee deems appropriate.  Mortgagor acknowledges and agrees that: (A) Mortgagee
is not required to use any or all of the foregoing factors to determine the
amount of its credit bid; (B) this Section does not impose upon
Mortgagee any additional obligations that are not imposed by law at the time
the credit bid is made; (C) the amount of Mortgagee’s credit bid need not
have any relation to any loan-to-value ratios specified in any agreement
between Mortgagor and Mortgagee or previously discussed by Mortgagor and
Mortgagee; and (D) Mortgagee’s credit bid may be, at Mortgagee’s sole
discretion, higher or lower than any appraised value of the Subject Property.

 

5.3                        Application of
Foreclosure Sale Proceeds. 
After deducting all costs, fees and expenses of sale, including costs of
evidence of title and attorneys’ fees in connection with a sale, all proceeds
of any foreclosure sale shall be applied first, to payment of all Secured
Obligations (including without limitation, all sums expended by Mortgagee under
the terms hereof and not then repaid, with accrued interest at the highest rate
per annum payable under any Secured Obligation), in such order and amounts as
Mortgagee in its sole discretion shall determine; and the remainder, if any, to
the person or persons legally entitled thereto.

 

13

 

5.4                        Application of
Other Sums.  All Rents
or other sums received by Mortgagee or any agent or receiver hereunder, less
all costs and expenses incurred by Mortgagee or such agent or receiver,
including reasonable attorneys’ fees, shall be applied to payment of the
Secured Obligations in such order as Mortgagee shall determine in its sole
discretion; provided however, that Mortgagee shall have no liability for funds
not actually received by Mortgagee.

 

5.5                        No Cure or
Waiver.  Neither Mortgagee’s or any
receiver’s entry upon and taking possession of the Subject Property, nor any
collection of Rents, insurance proceeds, condemnation proceeds or damages,
other security or proceeds of other security, or other sums, nor the
application of any collected sum to any Secured Obligation, nor the exercise of
any other right or remedy by Mortgagee or any receiver shall impair the status
of the security of this Mortgage, or cure or waive any breach, Default or
notice of default under this Mortgage, or nullify the effect of any notice of
default or sale (unless all Secured Obligations and any other sums then due
hereunder have been paid in full and Mortgagor has cured all other Defaults),
or prejudice Mortgagee in the exercise of any right or remedy, or be construed
as an affirmation by Mortgagee of any tenancy, lease or option of the Subject
Property or a subordination of the lien of this Mortgage.

 

5.6                        Costs, Expenses
and Attorneys’ Fees.  Mortgagor
agrees to pay to Mortgagee immediately upon demand the full amount of all
payments, advances, charges, costs and expenses, including court costs and
reasonable attorneys’ fees (to include outside counsel fees and all allocated
costs of Mortgagee’s in-house counsel), expended or incurred by Mortgagee
pursuant to this Article V, whether incurred at the trial or appellate
level, in an arbitration proceeding or otherwise, and including any of the
foregoing incurred in connection with any bankruptcy proceeding (including
without limitation, any adversary proceeding, contested matter or motion
brought by Mortgagee or any other person) relating to Mortgagor or in any way
affecting any of the Subject Property or Mortgagee’s ability to exercise any of
its rights or remedies with respect thereto. 
All of the foregoing shall be paid by Mortgagor with interest from the
date of demand until paid in full at the highest rate per annum payable under
any Secured Obligation.

 

5.7                        Power to File
Notices and Cure Defaults. 
Mortgagor hereby irrevocably appoints Mortgagee and its successors and
assigns as Mortgagor’s true attorney-in-fact to perform any of the following
powers, which agency is coupled with an interest: (a) to execute and/or
record any notices of completion, cessation of labor, or any other notices that
Mortgagee deems appropriate to protect Mortgagee’s interest; and (b) upon
the occurrence of any event, act or omission which with the giving of notice or
the passage of time, or both, would constitute a Default, to perform any
obligation of Mortgagor hereunder; provided however, that Mortgagee, as such
attorney-in-fact, shall only be accountable for such funds as are actually
received by Mortgagee, and Mortgagee shall not be liable to Mortgagor or any
other person or entity for any failure to act under this Section.

 

5.8                        Remedies
Cumulative; No Waiver.  All
rights, powers and remedies of Mortgagee hereunder are cumulative and are in
addition to all rights, powers and remedies provided by law or in any other
agreements between Mortgagor and Mortgagee. 
No delay, failure or discontinuance of Mortgagee in exercising any
right, power or remedy hereunder shall affect or operate as a waiver of such
right, power or remedy; nor shall any single or partial exercise of any such
right, power or remedy preclude, waive or otherwise affect any other or further
exercise thereof or the exercise of any other right, power or remedy.

 

5.9                        Waiver of Rights of
Redemption.  Mortgagor hereby
expressly waives and releases all statutory and equitable rights of redemption
with respect to any foreclosure hereunder to which Mortgagor would otherwise be
entitled under Kansas law, if any.

 

ARTICLE VI.  MISCELLANEOUS PROVISIONS

 

6.1                        No Merger.  No merger shall occur as a result of
Mortgagee’s acquiring any other estate in, or any other lien on, the Subject Property
unless Mortgagee specifically consents to a merger in writing.

 

14

 

6.2                        Execution of
Documents.  Mortgagor
agrees, upon demand by Mortgagee, to execute any and all documents and
instruments required to effectuate the provisions hereof.

 

6.3                        Right of
Inspection.  Mortgagee
or its agents or employees may enter onto the Subject Property at any
reasonable time for the purpose of inspecting the Subject Property and
ascertaining Mortgagor’s compliance with the terms hereof.

 

6.4                        Notices.  All notices, requests and demands which
Mortgagor or Mortgagee is required or may desire to give to the other party
must be in writing, delivered to Mortgagee at the following address:

 

WELLS
FARGO BANK, NATIONAL ASSOCIATION

MAC
N9312-040

109 South 7th Street, 4th Floor

Minneapolis, MN 55402

Attention:  Becky A. Koehler

 

and to Mortgagor at its address set forth at
the signature lines below, or at such other address as either party shall
designate by written notice to the other party in accordance with the
provisions hereof.

 

6.5                        Successors;
Assignment.  This
Mortgage shall be binding upon and inure to the benefit of the heirs,
executors, administrators, legal representatives, successors and assigns of the
parties hereto; provided however, that this Section does not waive the
provisions of the Section hereof entitled Due on Sale or Encumbrance.  Mortgagee reserves the right to sell, assign,
transfer, negotiate or grant participations in all or any part of, or any
interest in, Mortgagee’s rights and benefits under the Note, any and all other
Secured Obligations and this Mortgage. 
In connection therewith, Mortgagee may disclose all documents and
information which Mortgagee now has or hereafter acquires relating to the
Subject Property, all or any of the Secured Obligations and/or Mortgagor and,
as applicable, any partners, joint venturers or members of Mortgagor, whether
furnished by any Mortgagor or otherwise.

 

6.6                        Rules of
Construction.  (a) When
appropriate based on the identity of the parties or other circumstances, the
masculine gender includes the feminine or neuter or both, and the singular
number includes the plural; (b) the term “Subject Property” means all and
any part of or interest in the Subject Property; (c) all Section headings
herein are for convenience of reference only, are not a part of this Mortgage,
and shall be disregarded in the interpretation of any portion of this Mortgage;
(d) if more than one person or entity has executed this Mortgage as “Mortgagor,”
the obligations of all such Mortgagors hereunder shall be joint and several;
and (e) all terms of Exhibit A, and each other exhibit and/or rider
attached hereto and recorded herewith, are hereby incorporated into this
Mortgage by this reference.

 

6.7                        Severability of
Provisions.  If any
provision of this Mortgage 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 any remaining provisions of this Mortgage.

 

6.8                        Governing Law.  This Mortgage shall be governed by and
construed in accordance with the laws of the State of Kansas.

 

6.9                        Waiver of Jury
Trial.

 

THE
MORTGAGOR AND THE MORTGAGEE WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION AT
LAW OR IN EQUITY OR IN ANY OTHER PROCEEDING BASED ON OR PERTAINING TO THIS
AGREEMENT OR ANY 

OTHER
LOAN DOCUMENT.

 

15

 

IN WITNESS WHEREOF,
Mortgagor has executed this Mortgage as of the date first set forth above.

 

	
  Mortgagor:   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MGP
  INGREDIENTS, INC.

  	
   

  	
  Address  

  
	
  a Kansas corporation

  	
   

  	
   

  
	
   

  	
   

  	
  100 Commercial Street

  
	
   

  	
   

  	
  Atchison, KS 66002

  
	
  By: 

  	
  /s/ Timothy W. Newkirk 

  	
   

  	
   

  
	
  Name: Timothy W. Newkirk

  	
   

  	
   

  
	
  Its: President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  STATE OF
  Kansas   )

  	
   

  	
   

  
	
                                                  )
  SS.

  	
   

  	
   

  
				

 

COUNTY
OF Atchison          The foregoing
instrument was acknowledged before me this 21st day of August, 2009, by Timothy
W. Newkirk, the President of MGP Ingredients, Inc., a Kansas corporation.

 

 

	
   

  	
   

  	
  /s/Marta
  L. Myers

  
	
   

  	
   

  	
  Printed Name:Marta L. Myers

  
	
   

  	
   

  	
  Notary Public in and for
  said County and State

  

 

My
Commission Expires:01/03/2010

 

[SEAL]

 

16

 

EXHIBIT A

(Description of Property)

 

Exhibit A
to Mortgage and Assignment of Rents and Leases executed by MGP Ingredients, Inc.,
a Kansas corporation, as Mortgagor, to WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Mortgagee.

 

THE LAND REFERRED TO HEREIN IS SITUATED IN
THE STATE OF KANSAS, COUNTIES OF ATCHISON, POTTAWATOMIE AND WYANDOTTE,
DESCRIBED AS FOLLOWS:

 

Description of Property located in Atchison County, Kansas

 

Customer Care Center (Parcel 34)

Flour Mill Parcel (Parcel 35)

Atchison Plant (All Other Parcels)

 

The land referred to herein is situated in
the State of Kansas, County of Atchison, described as follows:

 

PARCEL
3:

 

WEST
THIRTY-FIVE FEET (35’) OF LOT THREE (3), BLOCK TWENTY AND ONE-HALF (201⁄2), IN
WEST ATCHISON, AN ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
4:

 

THE
WEST HALF OF LOT TWO (2), IN BLOCK TWENTY AND ONE-HALF (201⁄2), IN WEST ATCHISON,
AN ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
5:

 

LOT
ONE (1) AND THE EAST HALF OF LOT TWO (2), IN BLOCK TWENTY AND ONE-HALF
(201⁄2), IN WEST ATCHISON, AN ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
6:

 

THE
EAST THIRTY-EIGHT AND THREE-FOURTHS FEET (38.75’) OF LOT THREE (3), BLOCK
TWENTY AND ONE HALF (201⁄2), IN THAT PART OF THE CITY OF ATCHISON KNOWN AND
DESIGNATED AS WEST ATCHISON.

 

PARCEL
7:

 

THE
EAST ONE-HALF (E1⁄2) OF LOT FOUR (4), BLOCK TWENTY AND ONE-HALF (201⁄2) IN WEST
ATCHISON, AN ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
8:

 

THE
WEST ONE-HALF (W1⁄2) OF LOT FOUR (4), BLOCK TWENTY AND ONE-HALF (201⁄2), IN WEST
ATCHISON, AN ADDITION TO THE CITY OF ATCHISON.

 

1

 

PARCEL
9:

 

LOT
FIVE (5) IN BLOCK TWENTY AND ONE-HALF (201⁄2), IN WEST ATCHISON, AN ADDITION
TO THE CITY OF ATCHISON.

 

PARCEL
10:

 

THE
SOUTH THIRTY FEET (30’) OF LOT SIX (6), BLOCK TWENTY, WEST ATCHISON, AN
ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
11:

 

THE
NORTH NINETY FEET OF LOT SIX, IN BLOCK TWENTY IN WEST ATCHISON, AN ADDITION TO
THE CITY OF ATCHISON, KANSAS, TOGETHER WITH THE WEST VACATED THIRTY FEET OF
ROBERTS STREET, WHICH ABUT ON THE EAST OF SAID NORTH NINETY FEET OF LOT SIX.

 

PARCEL
12:

 

THE
EAST (E) FORTY (40) FEET OF LOT SEVEN (LT 7), IN BLOCK TWENTY (BLK 20), IN
WEST ATCHISON (WA), AN ADDITION TO THE CITY OF ATCHISON, ATCHISON COUNTY,
KANSAS.

 

PARCEL
13:

 

THE
WEST THIRTY-THREE AND THREE-FOURTHS FEET (333⁄4) OF LOT SEVEN (7), THE EAST
ELEVEN AND ONE-FOURTH FEET (111⁄4’) OF LOT EIGHT (8), BLOCK TWENTY (20), WEST
ATCHISON, AN ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
14:

 

THE
EAST THIRTY FEET (30’) OF THE WEST SIXTY-TWO AND ONE-HALF FEET (621⁄2’) OF LOT
EIGHT (8), BLOCK TWENTY (20), WEST ATCHISON, AN ADDITION TO THE CITY OF
ATCHISON.

 

PARCEL
15:

 

ALL
OF THE WEST THIRTY-TWO AND ONE-HALF FEET (321⁄2’) OF LOT EIGHT (8), BLOCK TWENTY
(20), WEST ATCHISON, AN ADDITION TO THE CITY OF ATCHISON, ATCHISON COUNTY,
KANSAS.

 

PARCEL 16:

 

THE
EAST FORTY-SEVEN FEET (47’) OF LOT TEN (10), BLOCK TWENTY (20), WEST ATCHISON,
AN ADDITION TO THE CITY OF ATCHISON, ATCHISON COUNTY, KANSAS.

 

PARCEL
17:

 

NORTH
THIRTY FEET (30’) OF THE SOUTH SIXTY FEET (60’) OF LOT SIX (6), BLOCK TWENTY
(20), WEST ATCHISON, AN ADDITION TO THE CITY OF ATCHISON, ATCHISON COUNTY,
KANSAS.

 

2

 

PARCEL
18:

 

THE
EAST FIFTY-EIGHT FEET (E 58’) OF LOT EIGHT (8), BLOCK TWENTY AND ONE-HALF
(201⁄2), WEST ATCHISON, AN ADDITION TO THE CITY OF ATCHISON, ATCHISON COUNTY,
KANSAS.

 

PARCEL
19:

 

THE
EAST (E) SEVENTY-THREE AND ONE-THIRD (73 1/3RD) FEET OF LOT SEVEN (LT 7),
AND THE WEST (W) FIFTY-TWO (52) FEET OF LOT EIGHT (LT 8), BLOCK TWENTY AND
ONE-HALF (BLK 20 1⁄2) IN WEST ATCHISON, AN ADDITION TO THE CITY OF ATCHISON,
ATCHISON COUNTY, KANSAS.

 

PARCEL
20:

 

THE
EAST THREE FEET (E 3’) AND NINE INCHES (9”) OF LOT SIX (6) AND THE WEST
THIRTY-SIX FEET (W 36’) AND EIGHT INCHES (8”) OF LOT SEVEN (7), ALL IN BLOCK
TWENTY AND ONE-HALF (20 1⁄2) IN WEST ATCHISON, AN ADDITION TO THE CITY OF
ATCHISON.

 

PARCEL
21:

 

THE
WEST EIGHTY-FIVE FEET (W 85’) OF LOT SIX (LT 6), IN BLOCK TWENTY AND ONE-HALF
(BLK 20 1⁄2), IN WEST ATCHISON, AN ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
22:

 

LOT
ELEVEN (LT 11) AND THE WEST (W) THIRTY (30) FEET OF VACATED ROBERTS
STREET, ALL IN BLOCK TWENTY (BLK 20), IN WEST ATCHISON, AN ADDITION TO THE CITY
OF ATCHISON, KANSAS.

 

PARCEL
23:

 

TRACT
NO. 1

 

LOTS
1 TO 16, BOTH INCLUSIVE, BLOCK 211⁄2, WEST ATCHISON, AN ADDITION TO THE CITY OF
ATCHISON, KANSAS, TOGETHER WITH ALL ADJACENT TRACTS OUT OF THE STREETS AND
ALLEYS ADJOINING SAID LOTS HERETOFORE ACQUIRED, BY REVERSION, UPON THE VACATION
OF SAID STREETS AND ALLEYS.

 

TRACT
NO. 2:

 

LOTS
9, 10 AND 11, BLOCK 21, WEST ATCHISON, AN ADDITION TO THE CITY OF ATCHISON,
KANSAS, AND THE WEST 30 FEET OF VACATED ROBERTS STREET EAST OF AND ADJOINING
SAID LOT 11, EXCEPT THE FOLLOWING DESCRIBED TRACT: BEGINNING AT A POINT 14 FEET
EAST OF THE SOUTHEAST CORNER OF SAID LOT 11; THENCE EAST 16 FEET TO THE CENTER
LINE OF ROBERTS STREET (NOW VACATED); THENCE NORTH ALONG SAID CENTER LINE 30
FEET; THENCE SOUTHWESTERLY 34 FEET TO THE POINT OF BEGINNING, TOGETHER WITH ALL
ADJACENT TRACTS OUT OF THE STREETS AND ALLEYS ADJOINING THE TRACT ABOVE
DESCRIBED HERETOFORE ACQUIRED, BY REVERSION, UPON THE VACATION OF SAID STREETS
AND ALLEYS.

 

3

 

TRACT
NO. 3:

 

LOT
6, BLOCK 21, WEST ATCHISON, AN ADDITION TO THE CITY OF ATCHISON, KANSAS, AND
THE WEST 30 FEET OF VACATED ROBERTS STREET EAST OF AND ADJOINING SAID LOT,
EXCEPT THE FOLLOWING DESCRIBED TRACT:

 

BEGINNING
AT THE NORTHWEST CORNER OF SAID LOT 6; THENCE EAST ALONG THE NORTH LINE OF SAID
LOT AND THE EASTERLY CONTINUATION THEREOF 100 FEET; THENCE SOUTH 100 FEET;
THENCE WEST 100 FEET TO A POINT ON THE WEST LINE OF SAID LOT 6; THENCE NORTH
100 FEET TO THE POINT OF BEGINNING, TOGETHER WITH ALL ADJACENT TRACTS OUT OF
THE STREETS AND ALLEYS ADJOINING THE TRACT ABOVE DESCRIBED HERETOFORE ACQUIRED,
BY REVERSION, UPON THE VACATION OF SAID STREETS AND ALLEYS.

 

TRACT
NO. 4:

 

LOTS
1 TO 8, BOTH INCLUSIVE, BLOCK 50, L.C. CHALLISS ADDITION, AN ADDITION TO THE
CITY OF ATCHISON, KANSAS, TOGETHER WITH ALL ADJACENT TRACTS OUT OF THE STREETS
AND ALLEYS ADJOINING SAID LOTS HERETOFORE ACQUIRED, BY REVERSION, UPON THE
VACATION OF SAID STREETS AND ALLEYS.

 

TRACT
NO. 5:

 

ALL
THAT PART OF BLOCK 28, JOHN ROBERTS’ THIRD ADDITION, NOW VACATED, TOGETHER
WITH A PORTION OF UTAH AVENUE ADJACENT THERETO, NOW VACATED, IN WEST ATCHISON,
AN ADDITION TO THE CITY OF ATCHISON, KANSAS, DESCRIBED AS FOLLOWS:

 

BEGINNING
AT THE POINT ON THE SOUTH LINE OF UTAH AVENUE (NOW VACATED) APPROXIMATELY 165
FEET WEST OF THE NORTHEAST CORNER OF SAID BLOCK 28, MEASURED ALONG THE NORTH
LINE OF SAID BLOCK (SAID POINT BEING 9 FEET NORTHWESTERLY OF, MEASURED AT RIGHT
ANGLES TO, THE CENTER LINE OF THE MISSOURI PACIFIC RAILROAD CO. TRACK NO.
17-137); THENCE SOUTHWESTERLY ALONG A LINE MAKING A SOUTHWEST ANGLE OF 54°14’
WITH SAID NORTH LINE OF SAID BLOCK 28 A DISTANCE OF 70 FEET TO A POINT (SAID
POINT BEING 9 FEET NORTHWESTERLY OF, MEASURED AT RIGHT ANGLES TO, THE CENTER
LINE OF SAID TRACK 17-137); THENCE NORTHWESTERLY AT RIGHT ANGLES TO THE LAST
DESCRIBED COURSE 10 FEET TO A POINT (SAID POINT BEING 9 FEET NORTHWESTERLY OF,
MEASURED AT RIGHT ANGLES TO, THE CENTER LINE OF THE MISSOURI PACIFIC RAILROAD
CO. TRACK NO. 17-138); THENCE SOUTHWESTERLY ALONG A LINE TURNING AN ANGLE OF
82°53’ TO THE LEFT OF THE LAST DESCRIBED COURSE 80 FEET TO A POINT (SAID POINT
BEING 9 FEET NORTHWESTERLY OF, MEASURED AT RIGHT ANGLES TO, THE CENTER LINE OF
SAID TRACK NO. 17-138); THENCE SOUTHWESTERLY ALONG A LINE TURNING AN ANGLE OF
10°03’ TO THE RIGHT OF THE LAST DESCRIBED COURSE 67.5 FEET TO A POINT (SAID
POINT BEING 9 FEET NORTHWESTERLY OF, MEASURED AT RIGHT ANGLES TO, THE CENTER
LINE OF SAID TRACK NO. 17-138); THENCE SOUTHWESTERLY ALONG A LINE TURNING AN
ANGLE OF 9°32’ TO THE RIGHT OF THE LAST DESCRIBED COURSE 67.5 FEET TO A POINT
(SAID POINT BEING 9 FEET NORTHWESTERLY OF, MEASURED AT RIGHT ANGLES TO, THE
CENTER LINE OF SAID TRACK NO. 17-138); THENCE SOUTHWESTERLY ALONG A LINE
TURNING AN ANGLE OF 5°32’ TO THE RIGHT OF THE LAST DESCRIBED COURSE 67.5 FEET
TO A POINT (SAID POINT BEING 9 FEET NORTHWESTERLY OF, MEASURED AT RIGHT ANGLES
TO, THE CENTER LINE OF SAID TRACK NO. 17-138); THENCE SOUTHWESTERLY ALONG A
LINE TURNING AN ANGLE OF 5° TO THE RIGHT OF THE LAST DESCRIBED COURSE 136 FEET,
MORE OR LESS, TO A POINT ON THE WEST LINE OF SAID BLOCK 28 (SAID POINT BEING 9
FEET NORTHWESTERLY OF, MEASURED AT RIGHT ANGLES TO, THE CENTER LINE OF SAID
TRACK NO. 17-138); THENCE NORTHWESTERLY ALONG THE WEST LINE OF SAID BLOCK 28
AND THE EXTENSION THEREOF 285 FEET, MORE OR LESS, TO THE CENTER LINE OF VACATED
UTAH AVENUE; THENCE EAST ALONG THE CENTER LINE OF VACATED UTAH AVENUE 445 FEET,
THENCE SOUTHWESTERLY ALONG A LINE TURNING AN ANGLE OF 114°18’ TO THE RIGHT OF
THE LAST DESCRIBED COURSE 44.6 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.

 

4

 

PARCEL
24:

 

LOT
8, IN BLOCK 21, AND THAT PART OF THE CITY OF ATCHISON USUALLY KNOWN AND
DESIGNATED AS WEST ATCHISON, AN ADDITION TO THE CITY OF ATCHISON, KANSAS,
ATCHISON COUNTY, KANSAS.

 

PARCEL
25:

 

THE
NORTH ONE HUNDRED FEET (N 100’) OF LOT SEVEN (7), IN BLOCK TWENTY-ONE (21), IN
WEST ATCHISON, AN ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
26:

 

THE
SOUTH (S) FIFTY (50) FEET OF LOT SEVEN (LT 7), BLOCK TWENTY-ONE (BLK 21),
IN WEST ATCHISON (WA), AN ADDITION TO THE CITY OF ATCHISON, ATCHISON COUNTY,
KANSAS, ACCORDING TO THE RECORDED PLAT THEREOF.

 

PARCEL
27:

 

THE
EAST FIFTY-SIX FEET (56’) OF LOT TWENTY (20), IN BLOCK TWENTY-TWO (22), IN WEST
ATCHISON, AN ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
28:

 

EAST
TWENTY-SIX FEET TEN INCHES (26’10”) OF LOT SEVENTEEN (17), BLOCK TWENTY-TWO
(22), WEST ATCHISON, AN ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
29:

 

THE
NORTH EIGHTY-SEVEN AND ONE-HALF FEET (N 871⁄2’) OF LOTS ONE (1) AND TWO (2),
IN BLOCK TWENTY-TWO (22), IN WEST ATCHISON.

 

PARCEL
30:

 

THE
SOUTH SIXTY-TWO AND ONE-HALF FEET (621⁄2’) OF LOT ONE (1) AND THE SOUTH
SIXTY-TWO AND ONE-HALF FEET (621⁄2’) OF LOT TWO (2), EXCEPT THE WEST TWENTY-FIVE
FEET (25’) OF SAID LOT TWO (2), ALL IN BLOCK TWENTY-TWO (22), IN WEST ATCHISON,
AN ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
33:

 

THE
NORTH SEVENTY-FOUR FEET (N 74’) OF LOTS ONE (1), TWO (2), ALL OF LOTS THREE
THROUGH FOURTEEN, INCLUSIVE, (3-14) IN BLOCK FORTY (40).

 

5

 

PARCEL
34:

 

THE
SOUTH FIFTY FEET (S. 50’) OF LOTS THIRTY-SIX (36), THIRTY-SEVEN (37),
THIRTY-EIGHT (38) AND THIRTY-NINE (39), IN BLOCK THIRTY-NINE (39), IN L.C.
CHALLISS, AN ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
35:

 

TRACT  NO. 1:

 

THE
NORTH ONE HUNDRED TEN (110) FEET OF LOTS ELEVEN (11) TO TWENTY-ONE (21)
INCLUSIVE, IN BLOCK THIRTY-TWO (32), L.C. CHALLISS ADDITION TO THE CITY OF ATCHISON,
ATCHISON COUNTY, KANSAS, ACCORDING TO THE PLAT THEREOF ON FILE AND OF RECORD IN
THE OFFICE OF THE REGISTER OF DEEDS OF SAID ATCHISON COUNTY, INCLUDING THE
FOLLOWING PORTIONS OF VACATED STREETS ADJACENT THERETO, VIZ.: THE VACATED SOUTH
ELEVEN AND ONE HALF (11 1⁄2) FEET OF MAIN STREET FROM THE CENTER OF 11TH STREET
TO THE EAST LINE OF LOT ELEVEN (11) IN SAID BLOCK AND THE VACATED PORTION OF
11TH STREET FROM MAIN STREET TO THE SOUTH LINE OF SAID 110-FOOT STRIP.

 

TRACT
NO. 2:

 

THE
NORTH ONE HUNDRED TEN (110) FEET OF LOTS ONE (1) TO TWENTY-FOUR (24),
INCLUSIVE, IN BLOCK FORTY-ONE (41), L.C. CHALLISS ADDITION TO THE CITY OF
ATCHISON, ATCHISON COUNTY, KANSAS, ACCORDING TO THE PLAT THEREOF ON FILE AND OF
RECORD IN THE OFFICE OF THE REGISTER OF DEEDS OF SAID ATCHISON COUNTY,
INCLUDING THE FOLLOWING PORTIONS OF VACATED STREETS AND ALLEYS ADJACENT
THERETO, VIZ: THE VACATED ALLEY FROM MAIN STREET TO THE SOUTH LINE OF SAID
110-FOOT STRIP BETWEEN LOTS NINETEEN (19) AND TWENTY (20) IN SAID BLOCK
FORTY-ONE (41) THE VACATED SOUTH ELEVEN AND ONE-HALF (11 1⁄2) FEET OF MAIN STREET
FROM THE CENTER OF 11TH STREET TO THE CENTER OF 12TH STREET, THE VACATED WEST
HALF OF 11TH STREET FROM MAIN STREET TO THE SOUTH LINE OF SAID 110 FOOT STRIP
AND THE VACATED EAST HALF OF 12TH STREET FROM MAIN STREET TO THE SOUTH LINE OF
SAID 110-FOOT STRIP.

 

TRACT
NO. 3:

 

THE
EAST ONE HUNDRED FEET (E 100’) OF THE NORTH HALF (N 1⁄2) OF BLOCK FIFTY (50), IN
L.C. CHALLISS ADDITION TO THE CITY OF ATCHISON, EXCEPTING THEREFROM A TRACT OF
LAND DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE EAST LINE OF SAID BLOCK
NO. FIFTY (50) WHICH IS 76.4 FEET SOUTH OF THE NORTHEAST CORNER OF SAID BLOCK,
RUNNING THENCE IN A SOUTHWESTERLY DIRECTION 114.6 FEET TO A POINT WHICH IS 97
FEET WEST OF THE EAST LINE OF SAID BLOCK NO. FIFTY (50), THENCE RUNNING EAST
28.1 FEET, THENCE RUNNING IN A NORTHEASTERLY DIRECTION 84.1 FEET TO A POINT
WHICH IS 94.1 FEET SOUTH OF THE NORTHEAST CORNER OF SAID BLOCK NO. FIFTY (50),
THENCE RUNNING NORTH 17.7 FEET TO THE POINT OF BEGINNING; AND ALSO EXCEPT
BEGINNING AT POINT IN THE EAST LINE OF LOT ONE (1), BLOCK FIFTY (50), IN L.C.
CHALLISS ADDITION, 127.5 FEET SOUTH OF THE NORTH LINE OF SAID BLOCK FIFTY (50);
THENCE SOUTH 10 FEET MORE OR LESS TO THE NORTHERLY RIGHT OF WAY LINE OF THE
MISSOURI PACIFIC RAILROAD COMPANY; THENCE EASTERLY ALONG SAID NORTHERLY RIGHT
OF WAY LINE 3 FEET MORE OR LESS TO SAID RAILROAD COMPANY’S NORTHWESTERLY RIGHT
OF WAY LINE; THENCE NORTHEASTERLY ALONG SAID NORTHWESTERLY RIGHT OF WAY LINE 70
FEET; THENCE SOUTHWESTERLY 68 FEET MORE OR LESS, TO THE POINT OF BEGINNING.
ALSO EXCEPTING THEREFROM: COMMENCING AT A POINT ON THE CENTER LINE OF 12TH
STREET, 1/3 FEET SOUTH OF THE SOUTH LINE OF MAIN STREET, THENCE SOUTH ALONG THE
CENTER LINE OF 12TH STREET, 66 FEET, THENCE WEST ON A LINE AT RIGHT ANGLES TO
THE CENTER LINE OF 12TH STREET 111.6 FEET, THENCE IN A NORTHEASTERLY DIRECTION
TO THE POINT OF BEGINNING, AND THAT PART OF VACATED 12TH STREET ADJACENT
THERETO.

 

6

 

TRACT
NO. 4:

 

ALL
OF LOTS TWENTY-FIVE (25) AND TWENTY-SIX (26) AND THE WEST 0.50 FEET OF LOT
TWENTY-SEVEN (27), IN BLOCK FORTY (40), IN L.C. CHALLISS ADDITION, AN ADDITION
TO THE CITY OF ATCHISON, ATCHISON COUNTY, KANSAS.

 

PARCEL
36:

 

THE
SOUTH 76 FEET OF LOTS ONE (1) AND TWO (2), IN BLOCK FORTY (40), L.C.
CHALLIS ADDITION, AN ADDITION TO THE CITY OF ATCHISON, ATCHISON COUNTY, KANSAS.

 

PARCEL
37:

 

LOTS
FIFTEEN (15) AND SIXTEEN (16), IN BLOCK FORTY (40), L.C. CHALLISS ADDITION, AN
ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
38:

 

LOT
SEVENTEEN (17), AND THE EAST TEN (10) FEET OF LOT EIGHTEEN (18), BLOCK
FORTY (40) IN THE L.C. CHALLIS ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
39:

 

LOT
NINETEEN (19) AND THE WEST FIFTEEN FEET (W. 15’) OF LOT EIGHTEEN (18), IN BLOCK
FORTY (40), IN L.C. CHALLISS ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
40:

 

ALL
OF LOTS 35 TO 38 INCLUSIVE, IN BLOCK 40, L.C. CHALLIS ADDITION TO THE CITY OF
ATCHISON, ATCHISON COUNTY, KANSAS, EXCEPT THAT PART OF THE SAME THAT IS
SOUTH OF THE MOST NORTHWESTERLY RIGHT OF WAY LINE OF THE MISSOURI PACIFIC
RAILROAD CO. AND RUNNING THROUGH SAID LOTS IN BLOCK 40, L.C. CHALLIS ADDITION.

 

PARCEL
42:

 

ALL
OF LOTS 39 AND 40 OF BLOCK 40 OF THE L. C. CHALLIS ADDITION TO THE CITY OF
ATCHISON, ATCHISON COUNTY, KANSAS, AND ALL THOSE PORTIONS OF LOTS 31, 32, 33,
34, 36, 35, 36, 37 AND 38 OF SAID BLOCK 40 THAT LIE SOUTHEASTERLY AND EASTERLY
OF THE SOUTHEASTERLY LINE OF THAT CERTAIN STRIP OF LAND DESCRIBED IN GENERAL
WARRANTY DEED DATED OCTOBER 14, 1929, FROM MISSOURI PACIFIC RAILROAD COMPANY TO
PILLSBURY FLOUR MILLS COMPANY, IDENTIFIED IN THE MISSOURI PACIFIC RAILROAD DEED
RECORDS AS DOCUMENT NO. 1600306#3-2. ALSO THE NORTH 30 FEET OF LOT 42 OF BLOCK
40 OF THE L.C. CHALLIS ADDITION TO THE CITY OF ATCHISON, ATCHISON COUNTY,
KANSAS.

 

PARCEL
43:

 

LOTS
FIVE, SIX, SEVEN, EIGHT, NINE AND TEN (5, 6, 7, 8, 9 AND 10), BLOCK FORTY-THREE
(43), IN L. C. CHALLISS ADDITION TO THE CITY OF ATCHISON, EXCEPT THAT PART HEREOF

 

7

 

DESCRIBED
AS FOLLOWS; COMMENCING AT THE SOUTHWEST CORNER OF SAID LOT TEN (10), BLOCK
FORTY-THREE (43), L.C. CHALLISS ADDITION, THENCE EAST ALONG THE SOUTH LINE OF
LOTS TEN (10) TO FIVE (5), INCLUSIVE TO THE SOUTHEAST CORNER OF SAID LOT
FIVE (5), BLOCK FORTY-THREE (43), L.C. CHALLISS ADDITION, THENCE NORTH ALONG
THE EAST LINE OF SAID LOT FIVE (5), A DISTANCE OF SEVENTY-FIVE AND SIX-TENTHS
(75.6) FEET, THENCE SOUTHWEST TO THE PLACE OF BEGINNING. AND ALL OF LOTS
ELEVEN, TWELVE, THIRTEEN, FOURTEEN AND FIFTEEN (11, 12, 13, 14 AND 15), BLOCK
FORTY-THREE (43), L.C. CHALLISS ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
44:

 

LOTS
ONE (1) THROUGH SIXTEEN (16), INCLUSIVE, AND LOT TWENTY-TWO (22), IN BLOCK
FORTY-EIGHT (48), IN L.C. CHALLISS ADDITION TO THE CITY OF ATCHISON, ATCHISON
COUNTY, KANSAS; AND A TRACT IN THE SOUTHEAST QUARTER (SE 1⁄2) OF THE NORTHWEST
QUARTER (NW 1⁄4) OF THE SECTION ONE (1), TOWNSHIP SIX (6), RANGE TWENTY
(20), DESCRIBED AS FOLLOWS:

 

BEGINNING
AT A POINT IN THE WEST LINE OF THIRTEENTH STREET IN THE CITY OF ATCHISON, 320
FEET NORTHWARDLY FROM THE INTERSECTION OF SAID WEST LINE WITH THE EAST AND
WEST CENTER LINE OF SAID SECTION 1, THENCE SOUTHWARDLY ALONG SAID WEST
LINE 15 FEET MORE OR LESS TO A POINT IN THE NORTHWESTERLY LINE OF A TRACT OF
LAND CONDEMNED BY THE CITY OF ATCHISON PURSUANT TO ORDINANCE NO. 3966, REPORT
OF CONDEMNATION BEING RECORDED IN BOOK 234, PAGE 523, OF THE REGISTER OF DEEDS’
OFFICE FOR ATCHISON COUNTY, THENCE SOUTHWESTWARDLY ALONG SAID NORTHWESTERLY
LINE TO A POINT IN THE PROLONGATION SOUTHERLY OF THE EAST LINE OF FOURTEENTH
STREET, THENCE NORTHWARDLY ALONG SAID PROLONGATION 390’ MORE OR LESS TO AN
INTERSECTION WITH THE SOUTHEASTERLY LINE OF PROPERTY OF THE ATCHISON,
TOPEKA AND SANTA FE RAILWAY COMPANY, THENCE NORTHEASTWARDLY ALONG SAID
SOUTHEASTERLY LINE 610 FEET MORE OR LESS TO A POINT IN THE WEST LINE OF
THIRTEENTH STREET VACATED UNDER ORDINANCE NO. 3192 DATED MAY 24, 1915,
THENCE EASTWARDLY BY A STRAIGHT LINE AT RIGHT ANGLES TO SAID WEST LINE OF
THIRTEENTH STREET 30 FEET TO THE CENTER LINE OF SAID THIRTEENTH STREET VACATED,
THENCE SOUTHWARDLY ALONG SAID CENTER LINE 400 FEET MORE OR LESS TO THE
SOUTHERLY LINE OF THAT PART OF THIRTEENTH STREET VACATED UNDER SAID
ORDINANCE, THENCE WESTWARDLY ALONG SAID SOUTHERLY LINE 30 FEET TO THE POINT OF
BEGINNING, CONTAINING 5.85 ACRES MORE OR LESS.

 

PARCEL
45:

 

LOTS
ONE AND TWO (1 & 2) AND THE NORTH SIXTY-FIVE FEET (N 65’) AND THE EAST
HALF (E 1⁄2) OF THE SOUTH EIGHTY-FIVE FEET (S 85’) OF LOT THREE (3) IN BLOCK
FIFTY-ONE (51), IN L.C. CHALLISS ADDITION TO THE CITY OF ATCHISON.

 

PARCEL
46:

 

LOTS
THIRTEEN AND FOURTEEN (LTS 13 & 14), BLOCK FIFTY-ONE (BLK 51), IN L.C.
CHALLISS ADDITION TO THE CITY OF ATCHISON, ATCHISON COUNTY, KANSAS.

 

PARCEL
47:

 

ALL
OF LOTS TWENTY THREE (23) AND TWENTY FOUR (24), IN BLOCK FIFTY-ONE (51) IN THAT
PART OF THE CITY OF ATCHISON KNOWN AND DESIGNATED AS L.C. CHALLISS
ADDITION.

 

8

 

PARCEL
48:

 

LOTS
NINETEEN (19), TWENTY (20), TWENTY-ONE (21) AND TWENTY-TWO (22), BLOCK
FIFTY-ONE (51), L.C. CHALLISS ADDITION TO THE CITY OF ATCHISON, ATCHISON
COUNTY, KANSAS.

 

PARCEL
49:

 

LOTS
FIFTEEN (15), SIXTEEN (16), SEVENTEEN (17), AND EIGHTEEN (18), BLOCK FIFTY-ONE
(51), IN L.C. CHALLISS ADDITION TO THE CITY OF ATCHISON.

 

PARCEL 50:

 

THE
WEST ONE-HALF (1/2) OF THE SOUTH EIGHTY-FIVE FEET (S 85’) OF LOT THREE (3), AND
ALL OF LOTS FOUR THROUGH TWELVE (4-12), BLOCK FIFTY-ONE (51), IN L.C.
CHALLISS ADDITION TO THE CITY OF ATCHISON.

 

9

 

Description of Property located in Pottawatomie County, Kansas

 

(Onaga Manufacturing Facility)

 

The land referred to herein is situated in
the State of Kansas, County of Pottawatomie, described as follows:

 

A
tract of land located in the Northeast Quarter of the Southeast Quarter of Section 34,
Township 6 South, Range 11 East of the 6th P.M. in Pottawatomie County,
Kansas, more particularly described as follows:

 

Commencing
at the point of intersection of the center line of the Union Pacific Railroad
Company main track, as located in August, 1988 with the East Right-of-Way line
of Leonard Street, a public street; thence along the East Right-of-Way line of
said Leonard Street South 394.00 feet to the Northwest corner of the Kermit
Fairbanks tract as described on Page 144 of Book 164 at the Pottawatomie
County Register of Deeds; thence along the Northerly line or extended Northerly
line of the said Fairbanks tract and the Northerly line of the Onaga Area
Community Center Fund tract as described on Page 355 of Book 228 at the
Pottawatomie County Register of Deeds, being the Southerly line of the Onaga
Waterworks Tract, S. 82°52’25” E. 280.00 feet to the point of beginning, being
corner 1, marked by a one-half inch iron bar; said corner 1 being the Southeast
corner of the said Onaga City Waterworks Tract; thence continuing along the
Northerly line of said Onaga Area Community Center Fund Tract, S 82°52’25” E.
35.54 feet to the Northeast corner of the said Onaga Area Community Center Fund
Tract, being Corner 2, marked by a one-half inch iron bar; thence along the
Easterly line of the said Onaga Area Community Center Fund Tract, being
parallel to and 214.00 feet perpendicular from the Easterly line of the said
Fairbanks Tract, South 382.01 feet to the Northerly Right-of-Way line of a
public road, known as the John Selbach Road, being corner 3 marked by a
one-half inch iron bar; thence traversing along the Northerly Right-of-Way line
of said John Selbach Road the following three courses:

 

(1) S.
64°27’15” E., 312.76 feet to Corner 4, marked by a one-half inch iron bar;

 

(2) on
a curve to the left with a radius of 640.87 feet an arc length of 209.85 feet,
chord of said curve bears S. 73°50’04” E. 208.91 feet to Corner 5, marked by a
one-half inch iron bar;

 

(3) S.
83°12’53” E. 123.97 feet to the Southwesterly Right-of-way line of the Union
Pacific Railroad Company, being corner 6, marked by a one-half inch iron bar,
said Corner 6 being 740.27 feet S. O°11’13” W. and 387.41 feet N. 89°48’47” W.
from the East Quarter corner of said Section 34; thence along the
Southwesterly right-of-way line of the Union Pacific Railroad Company on a
curve to the left with a radius of 3762.74 feet (chord definition) an arc
length of 936.82 feet, chord of said curve bears N. 43°19’52” W., 934.40 feet
to Corner 7, marked by a one-half inch iron bar, said corner 7 being on the
Easterly line of the said Onaga City Waterworks tract thence along the Easterly
line of the said Onaga City Waterworks tract South 85.58 feet to the point of
beginning, containing 3.83 acres, as described in Deed Book 461 Page 48.

 

10

 

Description of Property located in Wyandotte County, Kansas

 

(KCK Lot)

 

The land referred to herein is situated in
the State of Kansas, County of Wyandotte, described as follows:

 

TRACT
1:

 

A
TRACT OF LAND IN THE SOUTHEAST QUARTER OF SECTION 15, TOWNSHIP 11 SOUTH,
RANGE 25 EAST OF THE SIXTH PRINCIPAL MERIDIAN IN KANSAS CITY, WYANDOTTE COUNTY,
KANSAS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

BEGINNING
AT A POINT WHICH IS 27.22 FEET NORTH OF THE CENTER LINE OF VACATED CARR AVENUE
AND 347.50 FEET EAST OF THE EAST RIGHT-OF-WAY LINE OF VACATED 1ST STREET AS
SAID RIGHTS-OF-WAY ARE NOW ESTABLISHED, SAID POINT ALSO BEING 1513.24 FEET
NORTH AND 1461.42 FEET EAST OF THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF
SAID SECTION 15;

 

THENCE
NORTH 0° 20’ 15” WEST, 2.78 FEET, ALONG A LINE PARALLEL WITH AND 347.50 FEET
EAST OF THE EAST RIGHT-OF-WAY LINE OF VACATED 1ST STREET, TO A POINT ON THE
NORTH LINE OF VACATED CARR AVENUE, SAID POINT ALSO BEING THE SOUTHEAST CORNER
OF LOT 14, BLOCK 10 IN “MCALPINES ADDITION TO ARMOURDALE”;

 

THENCE
NORTH 0° 16’ 33” WEST, 407.70 FEET, ALONG A LINE WHICH MAKES AN ANGLE OF 90° 05’
IN THE NORTHWEST QUADRANT WITH THE NORTH LINE OF VACATED CARR AVENUE;

 

THENCE
NORTH 61° 33’ 27” EAST, 379.10 FEET;

 

THENCE
NORTH 28° 23’ 27” EAST, 131.33 FEET TO THE SOUTHWEST CORNER OF A TRACT OF LAND
CONVEYED TO THE UNION PACIFIC RAILROAD COMPANY BY SWIFT & COMPANY, AS
RECORDED IN BOOK 2490 AT PAGE 301 ON JANUARY 5, 1976;

 

THENCE
SOUTHEASTERLY 495.71 FEET, ALONG A CURVE CONCAVE TO THE SOUTHWEST, HAVING A
RADIUS OF 433.11 FEET THROUGH A CENTRAL ANGLE OF 65° 43’ 17” AND TO WHICH THE
CENTER OF SAID CURVE BEARS SOUTH 1° 06’ 57” WEST, TO A POINT 15.0 FEET WESTERLY
AND AT RIGHT ANGLES TO THE CENTER OF THE ARMOURDALE SPUR OF THE UNION PACIFIC
RAILROAD, AS NOW ESTABLISHED;

 

THENCE
SOUTH 14° 50’ 16” EAST, 233.82 FEET, ALONG A LINE PARALLEL WITH AND 15.0 FEET
WESTERLY FROM THE CENTER LINE OF SAID SPUR TRACK;

 

THENCE
SOUTHEASTERLY 245.16 FEET, ALONG A CURVE CONCAVE TO THE SOUTHWEST, TANGENT TO
THE LAST DESCRIBED COURSE 15.00 FEET WESTERLY OF AND PARALLEL TO THE CENTER
LINE OF SAID SPUR TRACK, HAVING A RADIUS OF 2774.03 FEET THROUGH A CENTRAL
ANGLE OF 5° 03’ 50”, TO A POINT;

 

THENCE
SOUTHERLY 65.74 FEET, ALONG A NON-TANGENT CURVE CONCAVE TO THE WEST, HAVING A
RADIUS OF 463.34 FEET THROUGH A CENTRAL ANGLE OF 8° 08’ 09” AND TO WHICH THE
CENTER OF THE CIRCLE OF SAID CURVE BEARS SOUTH 81° 36’ 03” WEST, TO A POINT
WHICH IS 20.46 FEET WESTERLY OF AND PARALLEL TO THE CENTER LINE OF SAID SPUR
TRACK;

 

THENCE
NORTH 84° 28’ 27” WEST, 904.85 FEET, TO THE POINT OF BEGINNING OF THE TRACT
HEREIN DESCRIBED, LESS THAT PART TAKEN OR USED FOR ROAD PURPOSES.

 

11

 

CONTAINING
517,722 SQUARE FEET OR 11.8853 ACRES, MORE OR LESS.

 

TRACT
2:

 

EASEMENT
RIGHTS IN THE FOLLOWING TRACT OF LAND:

 

A TRACT OF LAND IN THE SOUTHEAST QUARTER OF SECTION 15,
TOWNSHIP 11 SOUTH, RANGE 25 EAST OF THE SIXTH PRINCIPAL MERIDIAN IN KANSAS
CITY, WYANDOTTE COUNTY, KANSAS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

COMMENCING AT A POINT ON THE NORTH
RIGHT-OF-WAY LINE OF BERGER AVENUE, AS NOW ESTABLISHED, SAID POINT BEING 343.29
FEET EAST OF THE EAST RIGHT-OF-WAY LINE OF 1ST STREET, VACATED BY ORDINANCE NO.
40124, SAID POINT ALSO BEING 906.0 FEET NORTH AND 1460.79 FEET EAST OF THE
SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF SAID SECTION 15;

 

THENCE NORTH 87° 28’ 40” EAST 471.80 FEET, ON
THE SAID NORTH RIGHT-OF-WAY LINE OF BERGER AVENUE TO THE POINT OF BEGINNING;

 

THENCE NORTH 02° 31’ 20” WEST 33.40 FEET TO
THE BEGINNING OF A CURVE CONCAVE TO THE SOUTHEAST, HAVING A RADIUS OF 45.00
FEET;

 

THENCE NORTHEASTERLY 71.75 FEET ON SAID
CURVE, THROUGH A CENTRAL ANGLE OF 91° 21’ 20”;

 

THENCE NORTH 88° 50’ 00” EAST 148.47 FEET TO
A POINT ON A COMMON LINE BETWEEN THIS EASEMENT AND AN ACCESS EASEMENT IN BOOK
4253 ON PAGE 127 NOW TERMINATED IN THE WYANDOTTE COUNTY REGISTER OF DEEDS
OFFICE BEING A CURVE CONCAVE TO THE NORTHWEST, HAVING A RADIUS OF 432.30 FEET;

 

THENCE NORTHEASTERLY 96.20 FEET, ON SAID
CURVE LINE THROUGH A CENTRAL ANGLE OF 12° 44’ 59”;

 

THENCE NORTH 35°00’53” EAST 12.06 FEET TO THE
BEGINNING OF A CURVE CONCAVE TO THE NORTHWEST, HAVING A RADIUS OF 431.80 FEET;

 

THENCE NORTHEASTERLY 129.60 FEET, ON SAID
CURVE THROUGH A CENTRAL ANGLE OF 17°11’49”;

 

THENCE NORTH 19°23’36” EAST 134.86 FEET TO
THE BEGINNING OF A NON-TANGENT CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS
OF 2708.94 FEET;

 

THENCE NORTHWESTERLY 42.19 FEET, ON SAID
CURVE THROUGH A CENTRAL ANGLE OF 00°53’32”, TO THE BEGINNING OF A NON-TANGENT
CURVE CONCAVE TO THE WEST, HAVING A RADIUS OF 423.34 FEET;

 

THENCE NORTHERLY 91.09 FEET, ON SAID CURVE
THROUGH A CENTRAL ANGLE OF 12°19’40” TO A POINT ON THE NORTHERLY BOUNDARY OF
SAID PARCEL OF LAND;

 

THENCE SOUTH 86°38’14”EAST 40.22 FEET ON SAID
NORTHERLY BOUNDARY OF SAID PARCEL TO THE NORTHEAST CORNER OF SAID PARCEL, 20.5
FEET WESTERLY OF AND PARALLEL TO THE CENTER OF THE ARMOURDALE SPUR OF THE UNION
PACIFIC RAILROAD AS NOW 

 

12

 

ESTABLISHED, AND THE BEGINNING OF A
NON-TANGENT CURVE CONCAVE TO THE WEST, HAVING A RADIUS OF 463.34 FEET;

 

THENCE SOUTHERLY 88.70 FEET, ON SAID CURVE
AND EASTERLY BOUNDARY OF SAID PARCEL THROUGH A CENTRAL ANGLE OF 10°58’07” AND
THE BEGINNING OF A NON-TANGENT CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS
OF 2748.94 FEET;

 

THENCE SOUTHEASTERLY 46.30 FEET, ON SAID
CURVE AND EASTERLY BOUNDARY OF SAID PARCEL, THROUGH A CENTRAL ANGLE OF
00°57’54;

 

THENCE SOUTH 19°23’36” WEST 144.58 FEET ON
SAID EASTERLY BOUNDARY OF SAID PARCEL TO THE BEGINNING OF A CURVE CONCAVE TO
THE NORTHWEST HAVING A RADIUS OF 471.80 FEET;

 

THENCE SOUTHWESTERLY 141.05 FEET, ON SAID
CURVE AND EASTERLY BOUNDARY OF SAID PARCEL THROUGH A CENTRAL ANGLE OF 17°07’43;

 

THENCE SOUTH 35°00’53” WEST 12.61 FEET ON
SAID EASTERLY BOUNDARY OF SAID PARCEL, TO THE BEGINNING OF A CURVE CONCAVE TO
THE NORTHWEST HAVING A RADIUS OF 472.30 FEET;

 

THENCE SOUTHWESTERLY 103.69 FEET, ON SAID
CURVE AND EASTERLY BOUNDARY OF SAID PARCEL THROUGH A CENTRAL ANGLE OF
12°34’44”;

 

THENCE SOUTH 88° 50’ 00” WEST 175.04 FEET TO
A POINT ON A CURVE CONCAVE TO THE SOUTHEAST, HAVING A RADIUS OF 15.00 FEET;

 

THENCE SOUTHWESTERLY AND SOUTH 23.92 FEET,
THROUGH A CENTRAL ANGLE OF 91° 21’ 20”;

 

THENCE SOUTH 02° 31’ 20” EAST 33.40 FEET TO A
POINT ON THE SAID NORTH RIGHT-OF-WAY LINE OF BERGER AVENUE;

 

THENCE SOUTH 87° 28’ 40” WEST 30.00 FEET ON
THE SAID NORTH RIGHT-OF-WAY LINE OF BERGER AVENUE TO THE POINT OF BEGINNING,
CONTAINING 28,148 SQUARE FEET OR 0.65 ACRES, MORE OR LESS.

 

13

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