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Item P16 P.16 BOARD OF COUNTY COMMISSIONERS County of Monroe Mayor Sylvia Murphy,District 5 The Florida Keys l'U � � Mayor Pro Tern Danny Kolhage,District 1 �pw° Michelle Coldiron,District 2 Heather Carruthers,District 3 David Rice,District 4 County Commission Meeting May 22, 2019 Agenda Item Number: P.16 Agenda Item Summary #5599 BULK ITEM: Yes DEPARTMENT: County Attorney's Office TIME APPROXIMATE: STAFF CONTACT: Patricia Eables (305) 292-3477 N/A AGENDA ITEM WORDING: Authorization for Mayor to execute a letter to Key Marina Development, LLC and LV Lending LLC indicating that the County has no objection to Key Marina executing a Leasehold Mortgage and Security Agreement with LV Lending, LLC, regarding the "Mandalay" property on Second Avenue in Key Largo. ITEM BACKGROUND: The County, in its capacity as the Lessor, approved a Right-of-Way Lease Agreement and Consent to Assignment of Lease ("ROW Lease"), with Key Marina Development, LLC, as Lessee, and Florida Keys Quality Foods, Inc., as Sub-Lessee, on October 18, 2017. This Lease involves a small historic encroachment upon the Second Avenue public right-of- way in Key Largo, on which a restaurant building sits in the County right-of-way. The restaurant is owned and operated by the aforementioned parties. Key Marina is developing the entire site, known as the "Mandalay property" on which the encroaching building is located. Paragraph 25 of the Lease (Prohibitions Against Liens or Other Encumbrances), provides that the Lessee may mortgage its leasehold interest in the premises provided such mortgage interest is subordinate to the terms and conditions of the ROW Lease. Key Marina must provide any such mortgage documents to the County, however, prior to any closing to verify that the appropriate language is in the proposed documents. Key Marina executed a Mortgage and Security and Security Agreement with LV Lending, LLC, on February 4, 2019, which is recorded in the Official Records of Monroe County at Book 2947, Page 2204, in which it granted a fee interest in its property to LV Lending. Due to the County Lease, Key Marina now needs to execute an Amended and Restated Fee and Leasehold Mortgage and Security Agreement and Spreader Agreement, which references the aforementioned February 2019 Mortgage, in order to give a fee and leasehold interest to LV Lending. If approved, this item would authorize the Mayor to execute a letter directed to Key Marina Development and LV Lending that the County has no objection to the Amended and Restated Leasehold Mortgage and Security Agreement, which will be executed by Key Marina. Execution of this document will not trigger any default by Key Marina under the Right-of-Way Lease and the Packet Pg. 2832 P.16 County's interest is still protected. PREVIOUS RELEVANT BOCC ACTION: October 18, 2017 BOCC approved a new Right-of-Way Lease agreement with Key Marina Development, LLC, and Consent to Assignment of Lease to Florida Keys Quality Foods, Inc. CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval. DOCUMENTATION: BOCC Letter on Restated Fee & Leasehold Mortage (May 2019) AMENDED AND RESTATED FEE AND LEASEHOLD MORTGAGE(2019) Mortgage and Security Agreement (Recorded) - Key Marina RECORDED ROW LEASE CONSENT TO ASSIGN (MANDALAY) BOCC 10 18 17 (N3) FINANCIAL IMPACT: Effective Date: N/A Expiration Date: Total Dollar Value of Contract: N/A Total Cost to County: Current Year Portion: Budgeted: Source of Funds: CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: If yes, amount: Grant: County Match: Insurance Required: Additional Details: This item does not affect the terms of the Right-of-Way Lease in any manner. REVIEWED BY: Bob Shillinger Completed 05/07/2019 4:33 PM Patricia Eables Completed 05/07/2019 5:00 PM Packet Pg. 2833 P.16 Budget and Finance Completed 05/07/2019 5:12 PM Maria Slavik Completed 05/07/2019 6:54 PM Kathy Peters Completed 05/07/2019 8:30 PM Board of County Commissioners Pending 05/22/2019 9:00 AM Packet Pg. 2834 P.16.a C"! BOARD OF COUNTY COMMISSIONERS County of Monroe Mayor Sylvia J.Murphy,District 5 The Florida Keys Mayor Pro TernDanny L.Kolhage,District 1 Michelle Coldiron,District 2 Heather Carruthers,District 3 David Rice,District 4 May 22, 2019 Key Marina Development, LLC 0. 52 Riley Road 2 Unite 155 Celebration, FL 34747 a LV Lending, LLC 175 SW 7fh Street Suite 2101 Miami, FL 33130 RE: Key Marina Development, LLC Amended and Restated Fee and Leasehold Mortgage and Security Agreement and Spreader Agreement cv To Whom It May Concern: Key Marina Development, LLC, ("Key Marina"), is the Lessee under that certain Right-of-Way Lease Agreement with Monroe County approved on October 18, 2017. The County has received for review a proposed Amended and Restated Fee and Leasehold Mortgage and Security Agreement and 2 Spreader Agreement ("Amended Leasehold Mortgage and Security Agreement") from Key Marina 2 regarding property located in Key Largo and described on Schedule "A" attached to the aforementioned a document. A copy of the proposed document submitted to the County for review is enclosed for your convenience. Under paragraph 25 of its Right-of-Way Lease Agreement with Monroe County, Key 06 Marina must submit any proposed mortgage documents to Monroe County to verify appropriate language is included in such proposed documents to protect the County's interest. U- The Leasehold Mortgage and Security Agreement has been reviewed by legal staff for the County and this item was considered by the Board of County Commissioners ("BOCC") at its May 22, 2019, meeting. This letter is to advise that the BOCC has no objections to Key Marina proceeding with execution of the Amended Leasehold Mortgage and Security Agreement that is enclosed. The execution of this document will not result in any default of Key Marina's Lease with the County. a� �s Please send a recorded copy of this document to the County Attorney's Office,Attention—Patricia Eables, Esq., P. O. Box 1026, Key West, Florida 33041. If you need any additional information, please 00 contact the County Attorney's Office at 305-292-3470. E Sincerely, Mayor Sylvia Murphy Enclosure Packet Pg. 2835 P.16.b �3 Prepared by and after recording return to: � E 0. Rebecca L. Mendez, Esq. 2 Holland &Knight LLP 701 Brickell Avenue, Suite 3300 Miami, Florida 33131 AMENDED AND RESTATED FEE AND LEASEHOLD MORTGAGE AND SECURITY AGREEMENT AND SPREADER AGREEMENT This AMENDED AND RESTATED FEE AND LEASEHOLD MORTGAGE AND SECURITY AGREEMENT AND SPREADER AGREEMENT dated , 2019 (together with any amendments or modifications hereto in effect from time to time, the "Mortgage"),is made by KEY MARINA DEVELOPMENT,L.L.C., a Florida limited liability company, having an address of 52 Riley Road, Unit 155, Celebration, Florida 34747 W ("Mortgagor") in favor of LV LENDING LLC, a Florida limited liability company, having an office at 175 SW 7th Street, Suite 2101, Miami, Florida 33130 ("Mortgagee"). WITNESSETH: WHEREAS, Mortgagor is indebted to Mortgagee in the principal sum of Two Million Two Hundred Thousand and No/100 Dollars ($2,200,000.00) (the"Loan"), together with interest thereon, as evidenced by a Promissory Note dated as of February 4, 2019 from Mortgagor to Mortgagee(the "Note"); WHEREAS,Mortgagor's obligations to Mortgagee as contained in the Note were secured by (i) a Mortgage and Security Agreement executed as of February 4, 2019 by Mortgagor in favor U- of Mortgagee encumbering the property more particularly described therein and recorded in W Official Records Book 2947 at Page 2204, of the Public Records of Monroe County, Florida, (the "Original Mortgage"), (ii) an Assignment of Leases, Rents and Profits by Mortgagor in favor of Mortgagee, recorded in Official Records Book 2947 at Page 2241, of the Public Records of Monroe County, Florida (the "Assignment of Rents"), (iii) a UCC Financing Statement recorded z in Official Records Book 2947, Page 2252, of the Public Records of Monroe County, Florida(the "UCC-1"), and(iv) other instruments, documents, security agreements and collateral assignments W NOTE TO RECORDER: All documentary stamp and intangible taxes was paid on the Note (defined above) at the time of the recordation of the Original Mortgage (defined above) that is modified hereby. Therefore, no additional documentary stamp or intangible tax is due in connection with the recordation of this instrument. E E This instrument is to be filed and indexed in the real estate records and is also to be indexed in the index of financing statements under the names of Mortgagor, as "Debtor," and Mortgagee, as "Secured Party." this instrument shall also be effective from the date of its recording as a financing statement filed as a fixture filing with respect to all goods constituting part of the Property which are or are to become fixtures. Packet Pg. 2836 P.16.b executed and delivered by Mortgagor or its affiliates (collectively, the"Other Loan Documents",- the Mortgage, the Assignment of Rents, the UCC-1 and the Other Loan Documents; �s WHEREAS, Mortgagor is the owner of fee simple title together with a leasehold estate in and to that certain tract of land located in Monroe County, Florida, as more particularly described in Schedule "A" attached hereto and made a part hereof(collectively, the "Real Estate"); and E c WHEREAS, Mortgagor and Mortgagee desire hereby to amend and restate the Original Mortgage in its entirety to secure all of the indebtedness evidenced by the Note. a NOW THEREFORE, for and in consideration of the mutual covenants and conditions contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Mortgagor and Mortgagee hereby agree as follows: 1. The foregoing recitals are true and correct and constitute a material part of this Mortgage. 2. Mortgagor acknowledges that it has no defenses, counterclaims or offsets with respect to any of its obligations contained in the Original Mortgage or the Note. w 3. The Original Mortgage is hereby amended and restated in its entirety to read as follows: GRANTING CLAUSES NOW, THEREFORE, to secure to Mortgagee (i) the repayment of all sums due under W this Mortgage, the Note(and all extensions,renewals,replacements and amendments thereof) and the other Loan Documents (as such term is defined in the Note, the "Loan Documents"); (ii) the performance of all terms, conditions and covenants set forth in the Loan Documents; z (iii) [reserved]; (iv) the repayment of all reimbursement obligations due or that may become due W under or in connection with any present or future letters of credit issued by Mortgagee for the U_ account of Mortgagor; and(v) all other obligations or indebtedness of Mortgagor to Mortgagee of W whatever kind or character and whenever borrowed or incurred, including without limitation, principal, interest, fees, late charges and expenses, including attorneys' fees (subsections (i), (ii), (iii), (iv)and(v) collectively, the"Liabilities"),Mortgagor has mortgaged, granted and conveyed and by these presents DOES HEREBY MORTGAGE, GRANT AND CONVEY TO z MORTGAGEE,ITS SUCCESSORS AND ASSIGNS,all of Mortgagor's right,title and interest now owned or hereafter acquired in and to each of the following (collectively, the "Property"): W z (A) The fee and leasehold estate of Mortgagor in the Real Estate, as applicable; (B) All buildings, structures, facilities,utility lines and other improvements located on, in, under or above or comprising any of the Real Estate (the "Improvements"); E c� 2 Packet Pg. 2837 P.16.b (C) All easements, plants, landscaping, water rights, mineral rights, water taps, sewer taps, rents, tenements, appurtenances and hereditaments located on, in, under or above, or belonging or appertaining to, any of the Real Estate or the Improvements (collectively, "Appurtenances"); (D) All awards and payments,including interest thereon, and the right to receive them which may be made with respect to any part of the Real Estate or the Improvements as a result of the exercise of the right of eminent domain, the alteration of the grade of any street, or any other damage or injury to or decrease in the value of the Real Estate or the Improvements; a (E) All fixtures, equipment and other goods now or hereafter located on and used in connection with any of the Real Estate or the Improvements (all of the foregoing herein called the "Service Equipment"),including without limitation: (i)all appliances,furniture and furnishings; all articles of interior decoration, floor, wall and window coverings; all office, restaurant, bar kitchen and laundry fixtures, utensils, appliances and equipment; all supplies, tools and accessories; all storm and screen windows, shutters, doors, decorations, awnings, shades, blinds, signs, trees, shrubbery and other plantings; (ii) all building service fixtures, machinery and equipment of any kind whatsoever; all lighting,heating,ventilating, air conditioning,refrigerating sprinkling,plumbing, security,irrigating, cleaning, incinerating, waste disposal, communications, alarm, fire prevention and extinguishing systems, fixtures, apparatus, machinery and equipment; W all elevators, escalators, lifts, cranes, hoists and platforms; all pipes, conduits, pumps, boilers, tanks, motors, engines, furnaces and compressors; all dynamos, transformers and generators; (iii) all building materials, building machinery and building equipment delivered on site to the Real Estate during the course of, or in connection with any construction or repair or renovation of the buildings and improvements; (iv) all parts, fittings, accessories, accessions, substitutions and replacements therefor and thereof, and (v) all files, books, ledgers, reports and records relating to Z: any of the foregoing; (F) All leases, licenses, concessions, occupancy or other agreements for all or any portion of the Real Estate or the Improvements now or subsequently entered into (collectively, the z "Leases") and all rents, royalties, issues, profits, revenue, income and other benefits of the Real Estate or the Improvements (collectively, "Rents") now or subsequently arising from the use or U- enjoyment or from Leases pertaining to the Real Estate or the Improvements or arising from any W of the Contracts (as defined below) or any of the General Intangibles (as defined below) and all cash or securities deposited to secure performance by the tenants, lessees or licensees, as applicable, of their obligations under any such leases, licenses, concessions or occupancy agreements, whether said cash or securities are to be held until the expiration of the terms of said z leases,licenses, concessions or occupancy agreements or applied to one or more of the installments of rent coming due arising from or relating to any of the Real Estate or the Improvements; W z (G) All of Mortgagor's right, title and interest in and to that certain Right of Way Lease Agreement and Consent to Assignment of Lease by and between Monroe County, as lessor, Mortgagor, as lessee, and Florida Keys Quality Foods, Inc., as sublessee, dated as of October 18, 2017, recorded in Official Records Book 2877, at Page 1916 of the Public Records of Monroe County, Florida (as amended from time to time, the "Ground Lease"; the lessor, "Lessor"); and the leasehold estates created by the foregoing Ground Lease, together with all modifications, 3 Packet Pg. 2838 P.16.b extensions and renewals of the Ground Lease and all credits, deposits (including, without limitation, any deposit of cash or securities or any other property which may be held to secure Mortgagor's performance of its obligations under the Ground Lease), options,privileges and rights of Mortgagor as lessee under the Ground Lease, including, but not limited to, the right, if any, to renew or extend the Ground Lease for a succeeding term or terms and all the estate, right, title, claim or demand whatsoever of Mortgagor either in law or in equity,in possession or expectancy E of, in and to the Property or any part thereof, and 2 (H) All of the following personal property(collectively referred to as the"Contracts"): instruments, chattel paper, letter-of-credit rights, investment property, deposit accounts (the foregoing terms being used herein as defined in the Code (as defined herein) whether or not such collateral is subject thereto), general intangibles and contract rights (including, but not limited to, (i)all architectural contracts, construction contracts,plans and specifications, and construction and other warranties, (ii) all service contracts, purchase contracts, reservation agreements, management contracts, equipment leases and other contracts (including all deposits, prepaid expenses thereon, insurance policies and unearned premiums thereon), (iii) all licenses, building and other permits,books,records, customer lists,computer programs, software and printouts,trade names and trademarks and (iv) all abstracts and other title evidence) and insurance policy rights and claims arising from or related to any of the Real Estate or the Improvements, the construction C thereof or any business or activity conducted thereon,but exclusively if such Contract relates to or W is used in connection with the ownership, operation and/or maintenance of the Real Estate and/or the Improvements; (H) All insurance policies, claims and proceeds relating to the Real Estate or the Improvements or any activity thereon; and (I) All present and future funds, accounts, instruments, accounts receivable, (n documents, causes of action, claims, general intangibles (including trademarks, trade names, W service marks and symbols now or subsequently used in connection with any part of the Real Estate or the Improvements, all names by which the Real Estate or the Improvements may be operated or z known, all rights to carry on business under such names, and all rights, interest and privileges W which Mortgagor has or may have as developer or declarant under any covenants, restrictions or U- declarations now or subsequently relating to the Real Estate or the Improvements) and all notes or W chattel paper now or subsequently arising from or by virtue of any transactions related to the Real Estate or the Improvements, and all customer lists, other lists and business information relating in any way to the Real Estate, the Improvements, other portions of the Property or its use (collectively, "General Intangibles"); and z (J) All water taps, sewer taps, certificates of occupancy, permits, licenses, franchises plats, certificates,consents,approvals and other rights and privileges now or subsequently obtained z in connection with the Real Estate or the Improvements and all present and future warranties and guaranties relating to the Improvements or to any equipment, fixtures, furniture, furnishings, personal property or components of any of the foregoing now or subsequently located or installed on the Real Estate or the Improvements; E c� 4 Packet Pg. 2839 P.16.b (K) All licenses and permits in the name of Mortgagor,including occupational, city and county,used in connection with the operation of the Real Estate(the"Licenses"), and to the extent assignable, all of Mortgagor's development rights, authorizations, approvals and entitlements in connection with the Real Estate(the "Development Rights"); (L) All other or greater rights and interests of every nature in the Real Estate or the 0. Improvements and in the possession or use thereof and income therefrom; and 2 (M) All extensions, additions, improvements, betterments, proceeds, products, replacements, additions, substitutions, renewals and accessions of or to any of the foregoing including the Real Estate or the Improvements and all inventory, accounts, chattel paper documents, instruments, equipment, fixtures, farm products, consumer goods, general intangibles and other property of any nature constituting proceeds acquired with proceeds of any of the property described above,which term"proceeds" shall have the meaning given to it in the Uniform Commercial Code, as amended, (the "Code") of the State in which the Property is located (collectively, the "Proceeds") and shall additionally include whatever is received upon the use, lease, sale, exchange, transfer, collection or other utilization or any disposition or conversion of any of the Real Estate, Improvements, Service Equipment, Leases, Rents, Contracts, the Ground Lease and Appurtenances, General Intangibles, Licenses and Development Rights voluntary or involuntary,whether cash or non-cash,including proceeds of insurance and condemnation awards, rental or lease payments, accounts, chattel paper, instruments, documents, contract rights, general intangibles, equipment and inventory. TO HAVE AND TO HOLD the above granted and conveyed Property unto and to the proper use and benefit of Mortgagee and its successors and assigns, forever. 0 PROVIDED ALWAYS, and these presents are upon the express condition, that if(i) all W the Liabilities, are paid in full, and (ii) each and every representation, warranty, agreement and covenant of this Mortgage and the other Loan Documents are complied with and abided by, then this Mortgage and the estate hereby created shall cease and be null and void and canceled of record. Z w The terms of the Loan Documents are hereby made a part of this Mortgage to the same extent and with the same effect as if fully set forth herein. All capitalized terms not otherwise a w defined herein shall have the meaning ascribed to them in the Loan Documents. AND Mortgagor covenants and agrees with and represents to Mortgagee as follows: 1. FUTURE ADVANCES; PROTECTION OF PROPERTY. This Mortgage shall secure any additional loans as well as any and all present or future advances and readvances under the W Liabilities made by Mortgagee to or for the benefit of Mortgagor or the Property within twenty z (20)years from the date hereof(whether such advances are obligatory or are made at the option of W Mortgagee or otherwise), including, without limitation: (i) principal, interest, late charges, fees and other amounts due under the Liabilities or this Mortgage; (ii) all advances by Mortgagee to Mortgagor or any other person to pay costs of erection, construction, alteration,repair,restoration E maintenance and completion of any improvements on the Property; (iii)all advances made or costs incurred by Mortgagee for the payment of real estate taxes, assessments or other governmental charges, maintenance charges, insurance premiums, appraisal charges, environmental inspection, 5 Packet Pg. 2840 P.16.b audit, testing or compliance costs, and costs incurred by Mortgagee for the enforcement and protection of the Property or the lien of this Mortgage; and (iv) all legal fees, costs and other expenses incurred by Mortgagee by reason of any default or otherwise in connection with the Liabilities. The total amount of the Liabilities that may be so secured may decrease to a zero amount from time to time, or may increase from time to time,but the total unpaid balance secured a at any one time shall not exceed Eight Million Eight Hundred Thousand and No/100 Dollars E ($8,800,000.00). 2 Mortgagor agrees that if, at any time during the term of this Mortgage or following the commencement of a foreclosure action hereunder(whether before or after the entry of a judgment of foreclosure), Mortgagor fails to perform or observe any covenant or obligation under this Mortgage including, without limitation, payment of any of the foregoing, Mortgagee may (but shall not be obligated to) take such steps as are reasonably necessary to remedy any such nonperformance or nonobservance and provide payment thereof. All amounts advanced by Mortgagee shall be added to the amount secured by this Mortgage and the other Loan Documents (and, if advanced after the entry of a judgment of foreclosure, by such judgment of foreclosure), and shall be due and payable on demand, together with interest at the Default Rate (as defined in the Note) set forth in the Note, such interest to be calculated from the date of such advance to the date of repayment thereof. w 2. REPRESENTATIONS,WARRANTIES AND COVENANTS. 2.1. Payment and Performance. Mortgagor shall (a) pay to Mortgagee all sums required to be paid by Mortgagor under the Loan Documents,in accordance with their stated terms and conditions; (b)perform and comply with all terms, conditions and covenants set forth in each of the Loan Documents by which Mortgagor is bound; and (c) perform and comply with all of Z: Mortgagor's obligations and duties as landlord under any Leases. 2.2. Seisin and Warranty. Mortgagor hereby warrants that(a) Mortgagor is seized of an indefeasible estate in fee simple and leasehold estate in, and warrants the title to, the Property; z (b)Mortgagor has the right, full power and lawful authority to mortgage, grant, convey and assign the same to Mortgagee in the manner and form set forth herein; and (c) this Mortgage is a valid U- and enforceable first lien on the Property. Mortgagor hereby covenants that Mortgagor shall W (a)preserve such title and the validity and priority of the lien of this Mortgage and shall forever warrant and defend the same to Mortgagee against all lawful claims whatsoever; and (b) execute, acknowledge and deliver all such further documents or assurances as may at any time hereafter be reasonably required by Mortgagee to protect fully the lien of this Mortgage. 2.3. Insurance. Mortgagor shall obtain and maintain at all times throughout the term of this Mortgage the insurance required pursuant to the terms of the Loan Agreement. Z 2 2.4. Taxes and Other Charges. Mortgagor shall promptly pay and discharge all taxes, assessments, water and sewer rents, and other governmental charges imposed upon the Property a prior to delinquency, but in no event after interest or penalties commence to accrue thereon or E become a lien upon the Property. Notwithstanding the foregoing, Mortgagor shall have the right to contest, at its own expense, by appropriate legal proceedings conducted in good faith and with 6 Packet Pg. 2841 P.16.b due diligence, the amount or validity of such taxes, assessments, water and sewer rents, or other governmental charges, provided that: (a) Mortgagor has established on its books or by deposit of cash with Mortgagee, at the option of Mortgagee, a reserve for the payment thereof in such amount as Mortgagee may require; and (b) such contest operates to prevent collection, stay any proceedings which may be instituted to enforce payment of such item, and prevent a sale of the a Property to pay such item. Mortgagor shall promptly provide to Mortgagee, upon request, copies E of receipted tax bills, canceled checks or other evidence satisfactory to Mortgagee evidencing that 2 such taxes, assessments, water and sewer rents, and other governmental charges have been timely paid. a 2.5. Escrows. During the term of the Loan, the Mortgagor shall provide Mortgagee with evidence of payment of all real estate taxes and insurance premiums with respect to the Property. If required by Mortgagee at any time after the occurrence of an Event of Default, Mortgagor shall pay to Mortgagee at the time of each installment of interest or of interest and principal, as the case may be, due under the Note, and commencing with the first payment due after the date of such request, a sum equal to (a) the amount of the next installment of taxes and assessments levied or assessed against the Property, and/or (b) the premiums which will next become due on the insurance policies required by this Mortgage, all in amounts as estimated by Mortgagee, less all sums already paid therefor or deposited with Mortgagee for the payment thereof, divided by the number of payments to become due before two (2)months prior to the date W when such taxes and assessments and/or premiums, as applicable, will become due, such sums to be held by Mortgagee to pay the same when due. If such escrow funds are not sufficient to pay such taxes and assessments and/or insurance premiums, as applicable, as the same become due, 0 Mortgagor shall pay to Mortgagee, upon request, such additional amounts as Mortgagee shall estimate to be sufficient to make up any deficiency. No amount paid to Mortgagee hereunder shall be deemed to be trust funds but may be commingled with general funds of Mortgagee and no Z: interest shall be payable thereon. Upon the occurrence of an Event of Default, Mortgagee shall have the right, at its sole discretion, to apply any amounts so held against the Liabilities. 2.6. Transfer of Title. Without the prior written consent of Mortgagee in each instance Mortgagor shall not cause or permit any transfer of the Property or any part thereof, whether W voluntarily, involuntarily or by operation of law, nor shall Mortgagor enter into any agreement or U- transaction to transfer,or accomplish in form or substance a transfer,of the Property. A"transfer" W of the Property includes: (a) the direct or indirect sale, transfer or conveyance of the Property or any portion thereof or interest therein; (b) the execution of an installment sale contract or similar instrument affecting all or any portion of the Property, (c)if Mortgagor, or any general partner or member of Mortgagor, is a corporation, partnership, limited liability company or other business z entity, the transfer (whether in one transaction or a series of transactions and whether a direct or indirect transfer) of any stock,partnership, limited liability company or other ownership interests W in such corporation, partnership, limited liability company or entity; (d) if Mortgagor or any z member of Mortgagor is a corporation,the creation or issuance of new stock by which an aggregate of 10% or more of such corporation's stock shall be vested in a party or parties who are not now 4j stockholders or has the effect of diluting by more than 10% of any current stockholder's, a shareholder's equity or membership interests; and (e) an agreement by Mortgagor leasing all or a E substantial part of the Property for other than actual occupancy by a space tenant thereunder or a sale, assignment or other transfer of or the grant of a security interest in and to any Leases. 7 Packet Pg. 2842 P.16.b Additionally, any change in the present ownership (directly or indirectly)of the Mortgagor or change in ownership structure of Mortgagor(directly or indirectly) shall constitute a default hereunder. �s 2.7. No Encumbrances. Mortgagor shall not create or permit to exist any mortgage, pledge, lien security interest (including, without limitation, a purchase money security interest), a encumbrance, attachment,levy, distraint or other judicial process on or against the Property or any E part thereof (including, without limitation, fixtures and other personalty), whether superior or 2 inferior to the lien of this Mortgage, without the prior written consent of Mortgagee. Neither Mortgagor nor its constituents shall obtain any mezzanine or other secondary financing. Any loans between members of Mortgagor and Mortgagor shall be subordinate in all respects to the repayment of the Loan. 2.8 No Modifications; No Construction Without Mortmee's Prior Written Consent. Mortgagor shall obtain Mortgagee's written consent prior to making any modifications to the existing improvements on the Property, which consent shall be in Mortgagee's sole discretion. Furthermore, Mortgagor shall obtain Mortgagee's written consent prior to the commencement of any construction at the Property, which consent shall be in Mortgagee's sole discretion and may be conditioned upon Mortgagee's then applicable underwriting requirements for such construction. w 2.9. Removal of Fixtures. Mortgagor shall not (except in the ordinary course of business)remove or permit to be removed from the Property any fixtures presently or in the future owned by Mortgagor as the term "fixtures" is defined by the law of the state where the Property is 0 located(unless such fixtures have been replaced with similar fixtures of equal or greater utility and value). 2.10. Maintenance and Repair; Alterations. (a) Mortgagor shall (i) abstain from and W not permit the commission of waste in or about the Property, (ii)keep the Property, at Mortgagor's W own cost and expense, in good and substantial repair, working order and condition; (iii) make or cause to be made, as and when necessary, all repairs and replacements, whether or not insurance Z proceeds are available therefor; and (iv) not remove, demolish, materially alter, discontinue the W use of, permit to become deserted, or otherwise dispose of all or any part of the Property. All U_ alterations, replacements, renewals or additions made pursuant hereto shall automatically become W a part of the Property and shall be covered by the lien of this Mortgage. �s (b) Mortgagee, and any persons authorized by Mortgagee, shall have the right, but not the obligation, to enter upon the Property at any reasonable time to inspect and photograph its z condition and state of repair. In the event any such inspection reveals, in the sole discretion of Mortgagee, the necessity for any repair, alteration, replacement, clean-up or maintenance, W Mortgagor shall, at the discretion of Mortgagee, either: (i) cause such work to be effected Z promptly; or(ii)promptly establish an interest bearing reserve fund with Mortgagee in an amount reasonably determined by Mortgagee for the purpose of effecting such work. 4j C 0 2.11. Compliance with Applicable Laws. Mortgagor agrees to observe, conform and comply, and to cause its tenants (or subtenants) to observe, conform and comply with all federal, state, county, municipal and other governmental or quasi-governmental laws, rules, regulations, 8 Packet Pg. 2843 P.16.b ordinances, codes, requirements, covenants, conditions, orders, licenses, permits, approvals and restrictions, including without limitation, Environmental Laws (as defined below) and the Americans with Disabilities Act of 1990 (collectively, the "Legal Requirements"), now or hereafter affecting all or any part of the Property, its occupancy or the business or operations now or hereafter conducted thereon and the personalty contained therein, within such time as required a by such Legal Requirements. Mortgagor represents and warrants that, to the best of Mortgagor's E knowledge, the Property currently is in compliance with all Legal Requirements applicable to the 2 Property. 2.12. Damage, Destruction and Condemnation. (a) If all or any part of the Property shall be damaged or destroyed, or if title to or the temporary use of the whole or any part of the Property shall be taken or condemned by a competent authority for any public or quasi-public use or purpose, there shall be no abatement or reduction in the amounts payable by Mortgagor under the Loan Documents and Mortgagor shall continue to be obligated to make such payments. (b) If all or any part of the Property is partially or totally damaged or destroyed, Mortgagor shall give prompt notice thereof to Mortgagee, and Mortgagee may make proof of loss if not made promptly by Mortgagor. Mortgagor hereby authorizes and directs any affected insurance company to make payment under such insurance, including return of unearned premiums, to Mortgagee instead of to Mortgagor and Mortgagee jointly, and Mortgagor appoints Mortgagee as Mortgagor's attorney-in-fact to endorse any draft thereof,which appointment,being for security, is coupled with an interest and irrevocable. Mortgagee is hereby authorized and empowered by Mortgagor to settle, adjust or compromise, in consultation with Mortgagor, any claims for loss, damage or destruction to the Property. Mortgagor shall pay all costs of collection 0 of insurance proceeds payable on account of such damage or destruction. Mortgagor shall have W no claim against the insurance proceeds, or be entitled to any portion thereof, and all rights to the insurance proceeds are hereby assigned to Mortgagee as security for payment of the Liabilities. Mortgagee shall have the option, in its sole discretion, of paying or applying all or any part of the Z insurance proceeds to: (i)reduction of the Liabilities; (ii)restoration,replacement or repair of the W Property in accordance with Mortgagee's standard construction loan disbursement conditions and U_ requirements; or(iii) Mortgagor. a w (c) Promptly upon obtaining knowledge of the institution of any proceeding for the condemnation of all or any part of the Property, Mortgagor shall give notice to Mortgagee. W W Mortgagor shall, at its sole cost and expense, diligently prosecute any such proceeding and shall consult with Mortgagee,its attorneys and experts, and shall cooperate with it in the defense of any such proceeding. Mortgagee may participate in any such proceeding and Mortgagor shall from a w time to time deliver to Mortgagee all instruments requested by it to permit such participation. Mortgagor shall not, without Mortgagee's prior written consent, enter into any agreement (i) for W the taking or conveyance in lieu thereof of all or any part of the Property, or (ii) to compromise, settle or adjust any such proceeding. All awards and proceeds of condemnation are hereby C assigned to Mortgagee, and Mortgagor, upon request by Mortgagee, agrees to make, execute and E deliver any additional assignments or documents necessary from time to time to enable Mortgagee to collect the same. Such awards and proceeds shall be paid or applied by Mortgagee, in its sole discretion,to: (i)reduction of the Liabilities; (ii)restoration,replacement or repair of the Property 9 Packet Pg. 2844 P.16.b in accordance with Mortgagee's standard construction loan disbursement conditions and requirements; or(iii) Mortgagor. (d) Nothing herein shall relieve Mortgagor of its duty to repair, restore, rebuild or replace the Property following damage or destruction or partial condemnation if no or inadequate a insurance proceeds or condemnation awards are available to defray the cost of repair, restoration E rebuilding or replacement. 2 2.13. Required Notices. Mortgagor shall notify Mortgagee within three (3) business days of: (a)receipt of any notice from any governmental or quasi-governmental authority relating to the structure,use or occupancy of the Property or alleging a violation of any Legal Requirement; (b) a substantial change in the occupancy or use of all or any part of the Property; (c) receipt of any notice from the holder of any lien or security interest in all or any part of the Property; (d) commencement of any litigation affecting or potentially affecting the financial ability of Mortgagor or the value of the Property; (e) a pending or threatened condemnation of all or any part of the Property, (f) a fire or other casualty causing damage to all or any part of the Property; (g) receipt of any notice with regard to any Release of Hazardous Substances (as such terms are defined below) or any other environmental matter affecting the Property or Mortgagor's interest therein; (h)receipt of any request for information,demand letter or notification of potential liability from any entity relating to potential responsibility for investigation or clean-up of Hazardous W Substances on the Property or at any other site owned or operated by Mortgagor; (i)receipt of any notice from any tenant at the Property alleging a default,failure to perform or any right to terminate its lease or to set-off rents; or 0) receipt of any notice of the imposition of, or of threatened or 0 actual execution on, any lien on or security interest in all or any part of the Property. 2.14. Books and Records; Inspection. Mortgagor shall keep and maintain(a) complete and accurate books and records, in accordance with generally accepted accounting principles consistently applied, reflecting all items of income and expense in connection with the operation of the Property, and (b) copies of all written contracts, leases and other agreements affecting the Property. Mortgagee or its designated representatives shall, upon reasonable prior written notice Z to Mortgagor, have (a) the right of entry and free access to the Property during business hours W (which may be without notice in any case of emergency) to inspect the Property, and (b) the right U_ to examine and audit all books, contracts and records of Mortgagor relating to the Property. W 2.15. Right to Reappraise. Mortgagee shall have the right to conduct or have conducted W by an independent appraiser acceptable to Mortgagee updated appraisals of the Property in form and substance satisfactory to Mortgagee at the sole cost and expense of Mortgagor, except that z Mortgagor shall not be required to pay the cost of an appraisal more frequently than once every calendar year unless (x) an Event of Default exists, or (y) the appraisal was required by a W governmental or other regulatory agency. Z 2.16 Additional Warranties of Mort2a2or. C 0 (a) Mortgagor has good and marketable title to the Property, subject only to those matters expressly set forth in the title insurance policy insuring the lien of this Mortgage ("Permitted Exceptions"), and has full power and lawful authority to grant, bargain, sell, convey, assign, transfer and mortgage its interest in the Property in the manner and form to Packet Pg. 2845 P.16.b done or intended in this Mortgage. Mortgagor will preserve its interest in and title to the Property and will forever warrant and defend to Mortgagee Mortgagor's interest in the Property against any and all claims whatsoever and the validity and priority of the lien and security interest created by this Mortgage against the claims of all persons and parties whomsoever, subject to the Permitted Exceptions. The foregoing warranty of title shall survive the foreclosure of this a Mortgage or transfer of the Property in connection with foreclosure proceedings and shall inure E to the benefit of and be enforceable by Mortgagee in the event Mortgagee acquires title to the 2 Property pursuant to any foreclosure; (b) No bankruptcy or insolvency proceedings are pending or contemplated by Mortgagor or, to Mortgagor's knowledge, against Mortgagor or by or against any endorser, cosigner or guarantor of the Note; (c) All reports, certificates, affidavits, statements and other data furnished by Mortgagor to Mortgagee in connection with the Loan are true and correct in all material respects and do not omit to state any fact or circumstance necessary to make the statements contained therein not misleading; (d) The execution, delivery and performance of this Mortgage and all other Loan Documents have been duly authorized by all necessary action to be, and are, binding and enforceable against Mortgagor in accordance with the respective terms and do not contravene, a result in a breach of or constitute (upon the giving of notice or the passage of time or both) a default under the organizational documents of Mortgagor or any contract or agreement of any nature to which Mortgagor is a party or by which Mortgagor or any of its property may be bound and do not violate or contravene any law, order, decree, rule or regulation to which Mortgagor is subj ect; 0 w e The Property and its intended use b Mortgagor com 1 with all applicable < O P Y Ycomply PP w restrictive covenants, zoning ordinances, subdivision and building codes, flood disaster laws, applicable health and environmental laws and regulations and all other ordinances, orders or z requirements issued by any state, federal or municipal authorities having or claiming jurisdiction over the Property. The Property constitutes a separate tax parcel or parcels for purposes of ad W valorem taxation. The Property does not require any rights over, or restrictions against, other a property in order to comply with any of the aforesaid governmental ordinances, orders or requirements; w (f) All curb cuts, driveways and traffic signals shown on the survey delivered to Mortgagee prior to the execution and delivery of this Mortgage are existing and have been fully z approved by the appropriate governmental authority; w (g) There are no judicial, administrative,mediation or arbitration actions, suits or proceedings pending or threatened against or affecting Mortgagor, or its partners or members, or the Property; C 0 (h) The Property is free from delinquent water charges, sewer rents, taxes and assessments; 11 Packet Pg. 2846 P.16.b (i) As of the date of this Mortgage, no part of the Property has been taken in condemnation, eminent domain or like proceeding nor is any such proceeding pending or, to Mortgagor's knowledge, threatened or contemplated; and (j) There are no security agreements or financing statements affecting any of the Property other than the security agreements and financing statements created in favor of E Mortgagee. 2 2.17 Defense of Title. If title to, or the interest of Mortgagee in, the Property becomes the subject, directly or indirectly, of any action at law or in equity, or is attached directly or indirectly, or endangered, clouded or adversely affected in any manner,Mortgagor, at Mortgagor's expense, shall take all necessary steps to defend the title or interest, including the employment of counsel approved by Mortgagee. Should Mortgagee determine that Mortgagor is not adequately performing its obligations under this Section, Mortgagee may, without limiting or waiving Mortgagee's other rights, take such action as Mortgagee shall deem necessary or proper. Any and all costs and expenses incurred by Mortgagee, together with interest thereon at the Default Rate from the date incurred by Mortgagee until actually paid by Mortgagor, shall be immediately paid by Mortgagor on demand and shall be secured by this Mortgage and by all of the other Loan Documents. 2.18 Performance of Obligations. Mortgagor shall pay when due the principal of and the interest on the Liabilities. Mortgagor shall also pay all charges, fees and other sums required to be paid by Mortgagor as provided in the Loan Documents, and shall observe, perform and discharge all obligations,covenants and agreements set forth in the Loan Documents in accordance with their terms. Mortgagor shall promptly and strictly perform and comply with all covenants, conditions, obligations and prohibitions required of Mortgagor in connection with any other 0 document or instrument affecting title to the Property, or any part thereof, regardless of whether W such document or instrument is superior or subordinate to this Mortgage. 2.19 Construction Liens. Mortgagor shall pay when due all claims and demands of mechanics, material men, laborers and others for any work or services performed or materials delivered for the Property. Mortgagor shall have the right to contest in good faith any such claim W or demand, so long as it does so diligently, by appropriate proceedings and without prejudice to a Mortgagee and provided that neither the Property nor any interest therein would be in any danger of sale, loss or forfeiture as a result of such proceeding or contest. In the event Mortgagor shall contest any such claim or demand,Mortgagor shall promptly notify Mortgagee of such contest and W thereafter shall,upon Mortgagee's request,promptly provide a bond, cash deposit or other security satisfactory to Mortgagee to protect Mortgagee's interest and security should the contest be z unsuccessful. If Mortgagor shall fail within twenty (20) days following the notice of such claim or demand to discharge or provide security against any such claim or demand as aforesaid, z Mortgagee may do so and any and all expenses incurred by Mortgagee, together with interest W thereon at the Default Rate from the date incurred by Mortgagee until actually paid by Mortgagor, shall be immediately paid by Mortgagor on demand and shall be secured by this Mortgage and by all of the other Loan Documents securing all or any part of the Liabilities. Mortgagee has not consented, and will not consent: (i) to the granting of any security interest by Mortgagor to any party other than Mortgagee in any goods constituting part of the Property which are or are to become fixtures which would have the effect of giving such security interest priority over the 12 Packet Pg. 2847 P.16.b security interest of Mortgagee in said fixtures under Section 679.313 of Florida Statutes, or otherwise, or(ii)to any contract, or to any work, or to the furnishing of any materials which might be deemed to create a lien or liens superior to the lien of this Mortgage. 2.20 Payment of Utilities,Assessments,Charges,Etc. Mortgagor shall pay when due a all utility charges incurred by Mortgagor or which may become a charge or lien against any portion E of the Property for gas, electricity,water and sewer services furnished to the Property and all other 2 assessments or charges of a similar nature, or assessments payable pursuant to any restrictive � covenants, whether public or private, affecting the Property or any portion thereof, whether or not such assessments or charges are or may become liens thereon. 2.21 Access Privileges and Inspections. Mortgagee and its agents,representatives and employees shall, subject to the rights of tenants, have full and free access to the Property and any other location where books and records concerning the Property are kept at all reasonable times for the purposes of inspecting the Property and of examining, copying and making extracts from the books and records of Mortgagor relating to the Property,provided that Mortgagee shall provide reasonable notice of such inspection, unless Mortgagee deems, in its reasonable discretion, such inspection is of an emergency nature, in which event Mortgagor shall provide Mortgagee with immediate access to the Property. Mortgagor shall lend assistance to all such agents, representatives and employees of Mortgagee in connection with the foregoing. 2.22 Waste: Alteration of Improvements. Mortgagor shall not commit, suffer or permit any intentional physical waste on the Property nor take any actions that might invalidate any insurance carried on the Property. Mortgagor shall maintain the Property in good condition and repair, regularly landscape the Real Estate, and maintain a fence around the perimeter of the Real Estate. No part of the Improvements may be removed, demolished or materially altered, 0 without the prior written consent of Mortgagee,which consent shall not be unreasonably withheld W or delayed. Except as expressly set forth in the Loan Agreement,without the prior written consent of Mortgagee, Mortgagor shall not commence or allow any other person or entity to commence construction of any improvements on the Real Estate other than improvements which constitute z maintenance or repair of the Property. < w 2.23 Zoning. Without Mortgagee's prior consent in its reasonable discretion,Mortgagor shall not seek, make, suffer, consent to or acquiesce in any change in the zoning or conditions of use of the Property. Mortgagor shall comply with and make all payments required under any covenants, conditions or restrictions affecting the Property. Mortgagor shall comply with all W existing and future requirements of all governmental authorities having jurisdiction over the Property. Mortgagor shall keep all licenses,permits, franchises and other approvals necessary for Z the operation of the Property in full force and effect. Mortgagor shall operate the Property as vacant land. If, under applicable zoning provisions, the use of all or any part of the Property is or z becomes a nonconforming use, Mortgagor shall not cause or permit such use to be discontinued W or abandoned without the prior consent of Mortgagee. Further,without Mortgagee's prior consent, Mortgagor shall not file or subject any part of the Property to any declaration of condominium or co-operative or convert any part of the Property to a condominium, co-operative or other form of E multiple ownership and governance. Additionally, without Mortgagee's prior written consent, Mortgagor shall not encumber the Property with any covenants, conditions, restrictions, easements, declarations or similar documents of any kind. 13 Packet Pg. 2848 P.16.b 2.24 Payment of Costs; Reimbursement to Mortgagee. Mortgagor shall pay all costs and expenses incurred in connection with the closing of the Loan or otherwise attributable or chargeable to Mortgagor as the owner of the Property, including appraisal fees, recording fees, documentary stamp, mortgage or intangible taxes, brokerage fees and commissions, title policy premiums and title search fees, uniform commercial code/tax lien litigation search fees, escrow a fees and Mortgagee's attorneys' fees. If Mortgagor fails to make any such payment, which failure E is not cured within any applicable grace or cure period, Mortgagee may pay the same and such 2 payment shall become part of the Liabilities. Mortgagor shall promptly notify Mortgagee in writing of any litigation or threatened litigation affecting the Property, or any other demand or claim which, if enforced, could impair or threaten to impair Mortgagee's security under this Mortgage. Without limiting or waiving any other rights and remedies of Mortgagee under this Mortgage, if Mortgagor fails to perform any of its agreements in the Loan Documents and such failure is not cured within any applicable grace or cure period, or if any action or proceeding of any kind(including any bankruptcy,insolvency, arrangement,reorganization or other debtor relief proceeding)is commenced which might affect Mortgagee's interest in the Property or Mortgagee's right to enforce its security,then Mortgagee may,at its option,with or without notice to Mortgagor, make any appearances, disburse any sums and take any actions as may be necessary or desirable to protect or enforce the security of this Mortgage or to remedy the failure of Mortgagor to perform its covenants and agreements (without, however, waiving any default of Mortgagor). The necessity for any such actions and any Mortgagee payments shall be determined by Mortgagee in W its discretion. Mortgagee is empowered to enter and to authorize others to enter upon the Property or any part thereof for the purpose of performing or observing any such defaulted term, covenant or condition without thereby becoming liable to Mortgagor or any person in possession holding 0 under Mortgagor. Mortgagor acknowledges and agrees that the remedies in this Section shall be exercisable by Mortgagee, and any and all payments made or costs or expenses incurred by Mortgagee in connection therewith shall be secured by this Mortgage and the other Loan Z: Documents as part of the Liabilities. Such payments shall be,without demand,immediately repaid by Mortgagor with interest at the Default Rate from the date incurred by Mortgagee until W reimbursed by Mortgagor, notwithstanding the fact that such remedies were exercised and such payments made and costs incurred by Mortgagee after the filing by Mortgagor of a voluntary case Z or the filing against Mortgagor of an involuntary case pursuant to or within the meaning of the W Bankruptcy Reform Act of 1978, as amended, Title 11 U.S.C., or after any similar action pursuant U- to any other debtor relief law (whether statutory, common law, case law or otherwise) of any W jurisdiction whatsoever, now or subsequently in effect, which may be or become applicable to Mortgagor,Mortgagee, any guarantor or indemnitor,the Liabilities or any of the Loan Documents. Mortgagor shall indemnify and hold Mortgagee harmless from and against all loss, cost and expenses with respect to any Event of Default, any liens,judgments, construction liens, charges z and encumbrances filed against the Property, and from any claims and demands for damages or injury, including claims for property damage, personal injury or wrongful death, arising out of or W in connection with any accident or fire or other casualty on the Real Estate or the Improvements Z or any nuisance made or suffered thereon, including, attorneys' fees. This indemnity shall survive payment in full of the Liabilities. This Section shall not be construed to require Mortgagee to incur 4i any expenses, make any appearances or take any actions. a E 2.25 Mortmor's Waivers. To the full extent permitted by law,Mortgagor agrees that: 14 Packet Pg. 2849 P.16.b (a) Mortgagor shall not at any time insist upon,plead, claim or take the benefit or advantage of any law now or subsequently in force providing for any appraisement, valuation, stay, moratorium, extension, or reinstatement of the Liabilities prior to any sale of the Property pursuant to this Mortgage or prior to the entering of any decree,judgment or order of any court of competent jurisdiction, or any right under any statute to redeem all or any part of the Property so sold. E 0. (b) Mortgagor, for Mortgagor and Mortgagor's successors and assigns, and for > any and all persons ever claiming any interest in the Property, knowingly, intentionally and voluntarily with and upon the advice of competent counsel, waives, releases, relinquishes and forever forgoes all rights to: (i) valuation, appraisement, stay of execution, reinstatement and notice of election or intention to mature or declare due the Liabilities (except such notices specifically provided for in this Mortgage); (ii) marshaling of the assets of Mortgagor, including the Property, to a sale in the inverse order of alienation, or to direct the order in which any of the Property shall be sold in the event of foreclosure of the liens and security interests created and agrees that any court having jurisdiction to foreclose such liens and security interests may order the Property sold as an entirety; (iii) redemption provided under applicable law; (iv) Mortgagor shall not have or assert any right under any statute or rule of law pertaining to the exemption of homestead or other exemption under any federal, state or local law now or subsequently in effect, the administration of estates of decedents or other matters whatever to defeat, reduce or affect the W right of Mortgagee under this Mortgage to a sale of the Property,for the collection of the Liabilities without any prior or different resort for collection, or the right of Mortgagee under the terms of this Mortgage to payment of the Liabilities out of the proceeds of sale of the Property in preference 0 to every other claimant whatever and (v) all present and future statutes of limitations as a defense to any action to enforce the provisions of this Mortgage or to collect any of the Liabilities the fullest extent permitted by law. � w W (c) Mortgagor agrees that upon the commencement of a voluntary or involuntary bankruptcy proceeding by or against Mortgagor, Mortgagor shall not seek a supplemental stay or otherwise pursuant to 11 U.S.C. 105 or any other provision of the Bankruptcy z Reform Act of 1978, as amended, or any other debtor relief law(whether statutory, common law, W case law, or otherwise) of any jurisdiction whatsoever, now or subsequently in effect, which may U- be or become applicable, to stay, interdict, condition, reduce or inhibit the ability of Mortgagee to a w enforce any rights of Mortgagee against any guarantor or indemnitor of the secured obligations or any other party liable with respect thereto by virtue of any indemnity, guaranty or otherwise. w 2.26 Prohibited Person Compliance. Mortgagor warrants, represents and covenants that neither Mortgagor, any Guarantor of the Loan, nor any of their respective affiliated entities, or any direct or indirect owner or member of any of the foregoing is or will be a person (i) that is a w listed in the Annex to or is otherwise subject to the provisions of Executive Order 13224 issued on September 24, 2001 ("EO13224"), (ii) whose name appears on the United States Treasury W Department's Office of Foreign Assets Control ("OFAC") most current list of "Specifically Designated Nationals and Blocked Persons," (which list may be published from time to time in various mediums including, but not limited to, the OFAC website, E http://www.treas.gov/ofac/tllsdn.pdf), (iii) who commits, threatens to commit or supports "terrorism", as that term is defined in EO 13224, or(iv)who is otherwise affiliated with any person listed above. (Any and all Persons described in subparts [i] — [iv] above are herein referred to as 15 Packet Pg. 2850 P.16.b a"Prohibited Person".) Mortgagor covenants and agrees that neither Mortgagor, any Guarantor of the Loan,nor any of their respective affiliated entities, or any direct or indirect owner or member of any of the foregoing will(a) conduct any business, or engage in any transaction or dealing,with any Prohibited Person,including,but not limited to the making or receiving of any contribution of funds, goods, or services, to or for the benefit of a Prohibited Person, or (b) engage in or conspire a to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or E attempts to violate, any of the prohibitions set forth in EO13224. Mortgagor further covenants and 2 agrees to deliver(from time to time)to Mortgagee any such certification or other evidence as may be requested by Mortgagee in its sole and absolute discretion, confirming that (a) neither Mortgagor (nor any direct or indirect member of Mortgagor) nor any guarantor is a Prohibited Person and (b) neither Mortgagor (nor any direct nor indirect member of Mortgagor) nor any guarantor has engaged in any business, transaction or dealing with a Prohibited Person,including but not limited to, the making or receiving of any contributions of funds, goods or services, to or for the benefit of a Prohibited Person. 2.27 Indemnification: Subrogation. (a) Mortgagor shall indemnify, defend and hold Mortgagee harmless against: F (i) any and all claims for brokerage, leasing, Mortgagees or similar fees which may be made CD relating to the Property or the Liabilities, and (ii) any and all liability, obligations, losses, W damages, penalties, claims, actions, suits, costs and expenses (including Mortgagee's attorneys' fees) of whatever kind or nature which may be asserted against, imposed on or incurred by Mortgagee in connection with the Liabilities, the Loan Documents, the Property, or any part thereof, or the exercise by Mortgagee of any rights or remedies under the Loan Documents. (b) If Mortgagee is made a party defendant to any litigation or any claim is threatened or brought against Mortgagee concerning the Liabilities, the Loan Documents, the W Property, or any part thereof, or any interest therein, or the construction, maintenance, operation or occupancy or use thereof, Mortgagor shall indemnify, defend and hold Mortgagee harmless from and against all liability by reason of said litigation or claims, including attorneys' fees and z expenses incurred by Mortgagee in any such litigation or claim, whether or not any such litigation < or claim is prosecuted to judgment. If Mortgagee commences an action against Mortgagor to W enforce any of the terms of the Loan Documents or to prosecute any breach by Mortgagor of any a of the terms of the Loan Documents or to recover the Liabilities,Mortgagor shall pay to Mortgagee its reasonable attorneys' fees, whether or not such action is prosecuted to judgment. If Mortgagor breaches any term of the Loan Documents, Mortgagee may engage the services of an attorney or W W attorneys to protect its rights; Mortgagor shall pay Mortgagee's attorneys' fees and expenses whether or not an action is actually commenced against Mortgagor by reason of such breach. All references to "attorneys" in this Subsection and elsewhere in this Mortgage shall include without a w limitation any attorney or law firm engaged by Mortgagee and Mortgagee's in-house counsel, and all references to "fees and expenses" in this Subsection and elsewhere in this Mortgage shall W include without limitation any fees of such attorney or law firm and any allocation charges and allocation costs of Mortgagee's in-house counsel. C 0 (c) A waiver of subrogation shall be obtained by Mortgagor from its insurance carrier and, consequently, Mortgagor waives any and all right to claim or recover against Mortgagee,its officers, employees, agents and representatives,for loss of or damage to Mortgagor, 16 Packet Pg. 2851 P.16.b the Property, Mortgagor's property or the property of others under Mortgagor's control from any cause insured against or required to be insured against by the provisions of the Loan Documents. �s 2.28 Ground Lease. Mortgagor shall (a)pay all rents, additional rents and other sums required to be paid by Mortgagor, as tenant under and pursuant to the provisions of the Ground a Lease as and when such rent or other charge is payable, (b) diligently perform and observe all of E the terms, covenants and conditions of the Ground Lease on the part of Mortgagor, as tenant 2 thereunder, to be performed and observed prior to the expiration of any applicable grace period therein provided, and (c) promptly notify Mortgagee of the giving of any notice by the Lessor to Mortgagor of any default by Mortgagor in the performance or observance of any of the terms, covenants or conditions of the Ground Lease on the part of Mortgagor, as tenant thereunder, to be performed or observed and deliver to Mortgagee a true copy of each such notice. Mortgagor shall not, without the prior written consent of Mortgagee, surrender the leasehold estate created by the Ground Lease or terminate or cancel the Ground Lease or without the prior written consent of Mortgagee,modify, change, supplement, alter or amend the Ground Lease, in any material respect (except that Mortgagor may extend the term of the Ground Lease without the prior written consent of Mortgagee), either orally or in writing, and Mortgagor hereby assigns to Mortgagee, as further security for the payment of the Liabilities and for the performance and observance of the terms, covenants and conditions of this Mortgage and the other Loan Documents, all of the rights, privileges and prerogatives of Mortgagor, which rights, privileges and prerogatives may be W exercised by Mortgagee upon an Event of Default, as tenant under the Ground Lease, to surrender the leasehold estate created by the Ground Lease or to terminate, cancel, modify, change, supplement, alter or amend the Ground Lease, and any such surrender of the leasehold estate 0 created by the Ground Lease or termination, cancellation, modification, change, supplement, alteration or amendment of the Ground Lease without the prior written consent of Mortgagee shall be null and void and of no force and effect. If Mortgagor shall default in the performance or � observance of any material term, covenant or condition of the Ground Lease on the part of Mortgagor, as tenant thereunder, to be performed or observed, and such default shall remain uncured after the expiration of any applicable grace or cure period, then, without limiting the generality of the other provisions of this Mortgage and the other Loan Documents, and without waiving or releasing Mortgagor from any of its obligations hereunder or thereunder, Mortgagee W shall have the right, but shall be under no obligation, to pay any sums and to perform any act or U- take any action as may be appropriate to cause all of the terms, covenants and conditions of the W Ground Lease on the part of Mortgagor, as tenant thereunder, to be performed or observed or to be promptly performed or observed on behalf of Mortgagor,to the end that the rights of Mortgagor in, to and under the Ground Lease shall be kept unimpaired and free from default. If Mortgagee shall make any payment or perform any act or take action in accordance with the preceding z sentence, Mortgagee will notify Mortgagor of the making of any such payment, the performance of any such act, or the taking of any such action. In any such event, subject to the rights of tenants, W subtenants and other occupants under the Leases, and in accordance with the Loan Documents, z Mortgagee and any person designated by Mortgagee shall have, and are hereby granted, the right to enter upon the Property at any time and from time to time after such default by Mortgagor, which remains uncured after the expiration of any applicable cure or grace period, for the purpose a of taking any such action. Mortgagee may pay and expend such sums of money as Mortgagee E deems reasonably necessary for any such purpose and upon so doing shall be subrogated to any and all rights of the Lessor. Mortgagor hereby agrees to pay to Mortgagee promptly upon demand therefor, all such sums so paid and expended by Mortgagee, together with interest thereon from 17 Packet Pg. 2852 P.16.b the day of such demand at the Default Rate. All sums so paid and expended by Mortgagee and the interest thereon shall be secured by the legal operation and effect of this Mortgage. If the Lessor shall deliver to Mortgagee a copy of any notice of default sent by the Lessor to Mortgagor, as tenant under the Ground Lease, such notice shall constitute full protection to Mortgagee for any action taken or omitted to be taken by Mortgagee, in good faith, in reliance thereon as may be permitted under this Section. Mortgagor shall not subordinate or consent to the subordination of E the Ground Lease to any mortgage, security deed, lease or other interest on or in the Lessor's 2 interest in all or any part of the Property. 2.29. No Merger of Fee and Leasehold Estates. So long as any portion of the Liabilities shall remain unpaid,unless Mortgagee shall otherwise consent, the fee title to the Property and the leasehold estate therein created pursuant to the provisions of the Ground Lease shall not merge but shall always be kept separate and distinct,notwithstanding the union of such estates in Mortgagor, Mortgagee, or in any other person by purchase, operation of law or otherwise. 2.30. Mortgagor's Acquisition of Fee Estate. In the event that Mortgagor, so long as any portion of the Liabilities remains unpaid, shall become the owner and holder of the fee title to the entire Property, the lien of the Mortgage shall be spread to cover Mortgagor's fee title to the Property and said fee title shall be deemed to be included in the Property without any further action. Mortgagor agrees, at its sole cost and expense, including, without limitation, Mortgagee's reasonable attorneys' fees, to (a) execute any and all documents or instruments reasonably necessary to subject its fee title to the Property to the lien of this Mortgage; and (b)provide a title insurance policy which shall insure that the lien of the Mortgage is a first lien on Mortgagor's fee title to the Property. Notwithstanding the foregoing, if the Ground Lease is for any reason whatsoever terminated prior to the natural expiration of its term, and if,pursuant to any provisions of the Ground Lease or otherwise, Mortgagee or its designee shall acquire from the Lessor 0 thereunder another lease of the Property, Mortgagor shall have no right, title or interest in or to W such other lease or the leasehold estate created thereby. 2.31. Reiection of the Ground Lease.(a) If the Ground Lease is terminated for any reason in the event of the rejection or disaffirmance of the Ground Lease by Lessor pursuant to the < Bankruptcy Code, or any other law affecting creditor's rights, (i)the Mortgagor,immediately after W obtaining notice thereof, shall give notice thereto to Mortgagee, (ii) Mortgagor, without the prior a written consent of Mortgagee, shall not elect to treat the Ground Lease as terminated pursuant to Section 365(h) of the Bankruptcy Code or any comparable federal or state statute or law, and any election by Mortgagor made without such consent shall be null and void and (iii) this Mortgage W W and the other Loan Documents and all the liens, terms, covenants and conditions of this Mortgage and the other Loan Documents hereby extends to and covers Mortgagor's possessory rights under Section 365(h) of the Bankruptcy Code and to any claim by Mortgagor for damages due to the rejection of the Ground Lease or other termination of the Ground Lease. In addition, Mortgagor a z hereby assigns irrevocably to Mortgagee Mortgagor's rights to treat the Ground Lease as terminated pursuant to Section 365(h)of the Bankruptcy Code and to offset rents under the Ground Lease in the event any case, proceeding or other action is commenced by or against the Lessor under the Bankruptcy Code or any comparable federal or state statute or law. E (b) Mortgagor hereby assigns to Mortgagee to the extent permitted by applicable law (i) Mortgagor's right to reject the Ground Lease under Section 365 of the Ig Packet Pg. 2853 P.16.b Bankruptcy Code or any comparable federal or state statute or law with respect to any case, proceeding or other action commenced by or against Mortgagor under the Bankruptcy Code or comparable federal or state statute or law and (ii) Mortgagor's right to seek an extension of the sixty (60)-day period within which Mortgagor must accept or reject the Ground Lease under Section 365 of the Bankruptcy Code or any comparable federal or state statute or law with respect to any case,proceeding or other action commenced by or against Mortgagor under the Bankruptcy E Code or comparable federal or state statute or law. Furthermore, if the foregoing assignment is 2 not effective under applicable law and Mortgagor shall desire to so reject the Ground Lease then at Mortgagee's request, or upon Mortgagee's consent to Mortgagor's request, Mortgagor shall assign its interest in the Ground Lease to Mortgagee in lieu of rejecting the Ground Lease, upon receipt by Mortgagor of notice from Mortgagee of such request together with Mortgagee's agreement to cure any existing defaults of Mortgagor under the Ground Lease. (c) Mortgagor hereby agrees that if the Ground Lease is terminated for any reason in the event of the rejection or disaffirmance of the Ground Lease pursuant to the Bankruptcy Code or any other law affecting creditor's rights, any property not removed by the Mortgagor as permitted or required by the Ground Lease, shall at the option of Mortgagee be deemed abandoned by Mortgagor, provided that Mortgagee may remove any such property required to be removed by Mortgagor pursuant to the Ground Lease and all costs and expenses associated with such removal shall be paid by Mortgagor within ten (10) Business Days of receipt W by Mortgagor of an invoice for such removal costs and expenses. 2.32. Renewal Terms. Mortgagor shall not fail to exercise any option or right to renew or extend the term of the Ground Lease (in accordance with the terms of the Ground Lease) to the extent necessary to prevent the term of the Ground Lease from expiring, and shall give immediate written notice to Mortgagee and shall execute, acknowledge, deliver and record any document 0 requested by Mortgagee to evidence the lien of the Mortgage on such extended or renewed lease W term. If the Mortgagor shall fail to exercise any such option or right as aforesaid prior to the date that is ninety (90) days before the last date upon which Mortgagor may exercise such right under the Ground Lease, then the Mortgagee may exercise the option or right as the Mortgagor's agent z and attorney in fact as provided above in Mortgagee's own name or in the name of and on behalf w of a nominee of Mortgagee, as Mortgagee may determine in the exercise of its sole and absolute discretion. a w 2.33. Representations and Warranties With Respect to the Ground Lease. Mortgagor hereby represents and warrants to Mortgagee the following with respect to the Ground Lease: z (a) The Ground Lease or a memorandum of the Ground Lease has been duly recorded. The Ground Lease permits the interest of Mortgagor to be encumbered by a mortgage or a z the Lessor has approved and consented to the encumbrance of the Property by the Mortgage. There have not been amendments or modifications to the terms of the Ground Lease since recordation of the Ground Lease (or a memorandum thereof), with the exception of written instruments which have been recorded or as disclosed in this Mortgage. The Ground Lease may not be terminated, surrendered or amended without the prior written consent of Mortgagee; provided that the Lessor shall not be prevented from exercising its remedies in accordance with the Ground Lease if the 19 Packet Pg. 2854 P.16.b obligations of Mortgagor under the Ground Lease are not performed as provided in the Ground Lease. �s (b) Except for the Permitted Encumbrances (as defined in the Loan Agreement) and other encumbrances of record, Mortgagor's interest in the Ground Lease is not subject to any liens or encumbrances superior to, or of equal priority with, the Mortgage other than the Lessor's E related fee interest. (c) Mortgagor's interest in the Ground Lease is assignable without the consent of the Lessor to Mortgagee, the purchaser at any foreclosure sale or the transferee under a deed or assignment in lieu of foreclosure in connection with the foreclosure of the lien of this Mortgage or transfer of Mortgagor's leasehold estate by deed or assignment in lieu of foreclosure. Thereafter, the Ground Lease is further assignable by such transferee and its successors and assigns without the consent of the Lessor. (d) As of the date hereof, the Ground Lease is in full force and effect and no default has occurred under the Ground Lease and there is no existing condition which, but for the passage of time or the giving of notice, could result in a default under the terms of the Ground Lease. (e) Under the terms of the Ground Lease and the Loan Documents, taken together, any related insurance and condemnation proceeds that are paid or awarded to Mortgagor with respect to the leasehold interest will be applied either to the repair or restoration of all or part of the portion of the Property consisting of Mortgagor's leasehold estate granted hereunder, with z Mortgagee having the right subject to the terms of the Loan Documents to hold and disburse the proceeds as the repair or restoration progresses, or to the payment of the outstanding principal 0 balance of the Loan together with any accrued interest thereon. W �s (f) The Ground Lease does not impose any restrictions on subleasing. (g) The Ground Lease requires the Lessor to give notice of any default by Mortgagor to Mortgagee prior to exercising its remedies thereunder. W U- (h) Mortgagee is permitted the opportunity to cure any default under the Ground Lease, which is curable after the receipt of notice of the default before the Lessor thereunder may terminate the Ground Lease. W w 2.21. Estoppel Certificates. Within twenty(20) days after receipt of written demand by Mortgagee, but in no event more than two (2) times in any twelve (12) month period, Mortgagor shall use reasonable efforts to obtain from Lessor under the Ground Lease and furnish to W Mortgagee the estoppel certificate of Lessor stating the date through which rent has been paid and z whether or not there are any defaults thereunder and specifying the nature of such claimed defaults, if any. 3. SECURITY AGREEMENT. c� 3.1 Security Agreement and Fixture Financing Statement. This Mortgage constitutes a security agreement under the Code and shall be deemed to constitute a fixture 20 Packet Pg. 2855 P.16.b financing statement. Mortgagor hereby grants to Mortgagee a security interest in all of Mortgagor's right, title and interest in the personal and other property (other than real property) included in the Property, and all replacements of, substitutions for, and additions to, such property, and the proceeds thereof. Mortgagor shall, at Mortgagor's own expense, execute, deliver, file and refile any financing or continuation statements or other security agreements Mortgagee may require from time to time to perfect, confirm or maintain the lien of this Mortgage with respect to E such property. Without limiting the foregoing, Mortgagor hereby irrevocably appoints Mortgagee attorney-in-fact for Mortgagor to execute, deliver and file such instruments for or on behalf of Mortgagor at Mortgagor's expense, which appointment, being for security, is coupled with an interest and shall be irrevocable. Furthermore, this Mortgage creates a security interest in, and Mortgagor grants to Mortgagee a security interest in (a) all sums on deposit with Mortgagee pursuant to the provisions of any Section of this Agreement, (b) all fixtures, chattels, accounts, equipment, inventory, contract rights, general intangibles and other personal property included within the Property, (c) Mortgagor's leasehold interest in any of the foregoing property leased by Mortgagor and (d) all renewals, replacements of any of the items described in (a), (b) and (c), or articles in substitution or in addition or the proceeds thereof. To the extent permitted by law, all of the foregoing property is to be deemed and held to be a part of and affixed to the Property. Notwithstanding the foregoing, no leasing or installment sales or other financing or title retention agreement in connection therewith shall be permitted without the prior written approval of Mortgagee. Mortgagor shall, from time to time upon the request of Mortgagee, supply Mortgagee W with a current inventory of all of the property in which Mortgagee is granted a security interest under this Section,in such detail as Mortgagee may require. Mortgagor shall promptly replace all of the Collateral subject to the lien or security interest of this Mortgage when worn or obsolete 0 with Collateral comparable to the worn out or obsolete Collateral when new and will not, without the prior written consent of Mortgagee, remove from the Property any of the Collateral subject to the lien or security interest of this Mortgage except such as is replaced by an article of equal Z: suitability and value as above provided, owned by Mortgagor free and clear of any lien or security W interest except that created by this Mortgage and the other Loan Documents, the Permitted W Exceptions, and except as otherwise expressly permitted by the terms of this Mortgage. All of the Collateral shall be kept at the location of the Real Estate except as otherwise required by the terms z of the Loan Documents. Mortgagor shall not use any of the Collateral in violation of any W applicable statute, ordinance or insurance policy. U_ a 3.2 UCC. This Mortgage constitutes a security agreement between Mortgagor and Mortgagee with respect to the Collateral. In addition to all other rights and remedies of Mortgagee under this Mortgage, Mortgagee shall have all of the rights and remedies of a secured party under the Uniform Commercial Code applicable to the Property("Applicable UCC"). Mortgagor agrees z to execute and deliver on demand and irrevocably constitutes and appoints Mortgagee the attorney- in-fact of Mortgagor to execute and deliver and, if appropriate, to file with the appropriate filing W officer or office such security agreements, financing statements, continuation statements or other z instruments as Mortgagee may request or require in order to impose, perfect or continue the perfection of the lien or security interest created. Except with respect to Rents and profits to the extent specifically provided in this Mortgage to the contrary, Mortgagee shall have the right of possession of all cash, securities,instruments,negotiable instruments, documents, certificates and any other evidences of cash or other property or evidences of rights to cash rather than property, which are now or subsequently a part of the Property. Mortgagor shall promptly deliver the same 21 Packet Pg. 2856 P.16.b to Mortgagee, endorsed to Mortgagee, without further notice from Mortgagee. Mortgagor agrees to furnish Mortgagee with notice of any change in the name, identity, corporate structure, residence, or principal place of business or mailing address of Mortgagor within 10 days of the effective date of any such change. Upon the occurrence of any Event of Default, Mortgagee shall have the rights and remedies as prescribed in this Mortgage, or as prescribed by general law, or as prescribed by the Applicable UCC, all at Mortgagee's election. Without implying any limitation E upon the foregoing, Mortgagee may, at its option, pursuant to Section 679.501(4) of Florida 2 Statutes,proceed against the Collateral in accordance with the provisions of the Applicable UCC or Mortgagee may proceed as to both the real and personal property comprising the Property in accordance with this Mortgage, or as otherwise provided at law or in equity. Any disposition of the Collateral may be conducted by an employee or agent of Mortgagee. 4. ASSIGNMENT OF LEASES. 4.1. Mortgagor hereby absolutely,presently and unconditionally conveys, transfers and assigns to Mortgagee all of Mortgagor's right, title and interest, now existing or hereafter arising, in and to the Leases and Rents. Notwithstanding that this assignment is effective immediately, so long as no Event of Default exists, Mortgagor shall have the privilege under a revocable license granted hereby to operate and manage the Property and to collect, as they become due, but not prior to accrual, the Rents. Mortgagor shall receive and hold such Rents in trust as a fund to be W applied, and Mortgagor hereby covenants and agrees that such Rents shall be so applied, first to the operation, maintenance and repair of the Property and the payment of interest, principal and other sums becoming due under the Liabilities, before retaining and/or disbursing any part of the 0 Rents for any other purpose. The license herein granted to Mortgagor shall automatically,without notice or any other action by Mortgagee, terminate upon the occurrence of an Event of Default, and all Rents subsequently collected or received by Mortgagor shall be held in trust by Mortgagor � for the sole and exclusive benefit of Mortgagee. Nothing contained in this Section 4.1, and no collection by Mortgagee of Rents, shall be construed as imposing on Mortgagee any of the obligations of the lessor under the Leases. z 4.2. Mortgagor shall timely perform all of its obligations under the Leases. Mortgagor represents and warrants that: (a)Mortgagor has title to and full right to assign presently,absolutely U_ and unconditionally the Leases and Rents; (b) no other assignment of any interest in any of the W Leases or Rents has been made by Mortgagor; (c) there are no leases or agreements to lease all or any portion of the Property now in effect except the Leases and the Ground Lease, true and complete copies of which have been furnished to Mortgagee, and no written or oral modifications have been made thereto; (d) there is no existing default by Mortgagor or by any tenant under any z of the Leases or the Ground Lease, nor has any event occurred which due to the passage of time, the giving or failure to give notice, or both,would constitute a default under any of the Leases and W no tenant has any defenses, set-offs or counterclaims against Mortgagor; (e) the Leases are in full z force and effect; and (f) Mortgagor has not accepted Rent under any Lease more than thirty (30) days in advance of its accrual, and payment thereof has not otherwise been forgiven, discounted or compromised. E 4.3. Mortgagor shall not,without the prior written consent of Mortgagee: (a) enter into any lease at the Property, (b) amend or modify, or consent any assignment of or subletting under, any Lease or the Ground Lease at the Property; (c)terminate or accept a surrender of any Lease or 22 Packet Pg. 2857 P.16.b the Ground Lease; or(d)collect or accept rent from any tenant of the Property for a period of more than one month in advance. Any acts that require Mortgagee's consent under this Section 4.3, if done without the prior written consent of Mortgagee in each instance, shall be null and void. 5. DECLARATION OF NO OFFSET. Mortgagor represents to Mortgagee that Mortgagor a has no knowledge of any offsets, counterclaims or defenses to the Liabilities either at law or in E equity. Mortgagor shall, within three (3) days upon written request delivered in person or within 2 seven (7) days upon request by mail, furnish to Mortgagee or Mortgagee's designee a written statement in form satisfactory to Mortgagee stating the amount due under the Liabilities and whether there are offsets or defenses against the same, and if so, the nature and extent thereof. 6. ENVIRONMENTAL MATTERS. 6.1. Definitions. As used herein, "Environmental Laws" shall mean all existing or future federal, state and local statutes, ordinances, regulations, rules, executive orders, standards and requirements, including the requirements imposed by common law, concerning or relating to industrial hygiene and the protection of health and the environment including but not limited to: (a) those relating to the generation, manufacture, storage, transportation, disposal, release, emission or discharge of Hazardous Substances (as hereinafter defined); (b) those in connection C with the construction, fuel supply,power generation and transmission,waste disposal or any other W operations or processes relating to the Property; and (c) those relating to the atmosphere, soil, surface and ground water, wetlands, stream sediments and vegetation on, under, in or about the Property. Any terms mentioned herein which are defined in any Environmental Law shall have 0 the meanings ascribed to such terms in said laws; provided, however, that if any of such laws are amended so as to broaden any term defined therein, such broader meaning shall apply subsequent to the effective date of such amendment. Z: w 6.2. Representations, Warranties and Covenants. Mortgagor represents, warrants covenants and agrees as follows: z (a) Neither Mortgagor nor the Property or any occupant thereof is in violation of or subject to any existing, pending or threatened investigation or inquiry by any governmental U- authority pertaining to any Environmental Law. Mortgagor shall not cause or permit the Property W to be in violation of, or do anything which would subject the Property to any remedial obligations under, any Environmental Law, and shall promptly notify Mortgagee in writing of any existing, pending or threatened investigation or inquiry by any governmental authority in connection with any Environmental Law. In addition, Mortgagor shall provide Mortgagee with copies of any and z all material written communications with any governmental authority in connection with any Environmental Law, concurrently with Mortgagor's giving or receiving of same. W z (b) Mortgagor has taken all steps reasonably necessary to determine and has determined that there has been no release, spill, discharge,leak, disposal or emission(individually 4i a "Release" and collectively, "Releases") of any hazardous material, hazardous substance or a hazardous waste, including gasoline, petroleum products, explosives, toxic substances, solid E wastes and radioactive materials (collectively, "Hazardous Substances") at, upon, under or within the Property. The use which Mortgagor or any other occupant of the Property makes or 23 Packet Pg. 2858 P.16.b intends to make of the Property will not result in Release of any Hazardous Substances on or to the Property. During the term of this Mortgage, Mortgagor shall take all steps necessary to determine whether there has been a Release of any Hazardous Substances on or to the Property and if Mortgagor finds a Release has occurred, Mortgagor shall remove or remediate the same promptly upon discovery at its sole cost and expense. a E 0. (c) The Property has never been used by the present or previous owners and/or operators nor will be used in the future to refine,produce,store,handle,transfer,process,transport, generate, manufacture, heat, treat, recycle or dispose of Hazardous Substances. a (d) The Property. (i) is being and has been operated in compliance with all Environmental Laws, and all permits required thereunder have been obtained and complied with in all respects; and(ii)does not have any Hazardous Substances present excepting small quantities of petroleum and chemical products, in proper storage containers, that are necessary for the construction or operation of the commercial business of Mortgagor and its tenants (or subtenants), and the usual waste products therefrom ("Permitted Substances"). (e) Mortgagor will and will cause its tenants or subtenants to operate the Property in compliance with all Environmental Laws and, other than Permitted Substances, will not place or permit to be placed any Hazardous Substances on the Property. W (f) No lien has been attached to or threatened to be imposed upon the Property, and there is no basis for the imposition of any such lien based on any governmental action under 0 Environmental Laws. Neither Mortgagor nor any other person is or will be involved in operations at the Property which could lead to the imposition of environmental liability on Mortgagor, or on any subsequent or former owner of the Property, or the creation of an environmental lien on the Z: Property. In the event that any such lien is filed, Mortgagor shall, within sixty (60) days from the date that the Mortgagor is given notice of such lien (or within such shorter period of time as is W appropriate in the event that steps have commenced to have the Property sold), either: (i)pay the claim and remove the lien from the Property; or (ii) furnish a cash deposit, bond or other security Z satisfactory in form and substance to Mortgagee in an amount sufficient to discharge the claim out W of which the lien arises. U- a 6.3. Ri2ht to Inspect and Cure. Mortgagee shall have the right to conduct or have conducted by its agents or contractors such environmental inspections, audits and tests as W Mortgagee shall deem necessary or advisable from time to time at the sole cost and expense of Mortgagor. The cost of such inspections, audits and tests shall be added to the Liabilities and shall z be secured by this Mortgage. Mortgagor shall, and shall cause each tenant of the Property to, cooperate with such inspection efforts; such cooperation shall include, without limitation, W supplying all information requested concerning the operations conducted and Hazardous Z Substances located at the Property. In the event that Mortgagor fails to comply with any Environmental Law,Mortgagee may,in addition to any of its other remedies under this Mortgage, 4j cause the Property to be in compliance with such laws and the cost of such compliance shall be a added to the sums secured by this Mortgage in accordance with the provisions of Section 1 hereof. E c� 24 Packet Pg. 2859 P.16.b 6.4 Environmental Indemnification. (a) Mortgagor agrees, jointly and severally, to unconditionally and absolutely indemnify and hold Mortgagee, its officers, directors, employees, agents and attorneys harmless from and against any loss, cost,liability, damage, claim or expense, including reasonable attorneys' fees, suffered or incurred by Mortgagee in connection with the Property at any time, whether before, during or after enforcement of Mortgagee's rights a and remedies upon default under the Loan Documents, under or on account of, or as a result of(i) E any violation of applicable Environmental Laws, (ii) any presence, release, or threat of release of Hazardous Substances at, upon, under or within the Property, (iii) the presence of asbestos or asbestos-containing materials, PCB's, radon gas, urea formaldehyde foam insulation or lead (whether in paint,water, soil, or plaster) at the Property, (iv) any breach of the representations and warranties made in this Section 6, (v) the failure of Mortgagor to duly perform the obligations or actions set forth in this Section 6 with respect to: (A)the imposition by any governmental authority of any lien upon the Property, (B) clean-up costs, (C)liability for personal injury or property damage or damage to the environment, (D) any diminution in the value of the Property and (E) fines,penalties and punitive damages, or(vi) otherwise pursuant to the terms of that certain ADA and Environmental Indemnity Agreement, dated of even date herewith. (b) Mortgagor further agrees that Mortgagee shall not assume any liability or obligation for loss, damage, fines, penalties, claims or duty to clean up or dispose of wastes or materials on or relating to the Property as a result of any conveyance of title to the Property to the Mortgagee W or otherwise or as a result of any inspections or any other actions made or taken by Mortgagee on the Property unless caused by the negligent or intentional acts of Mortgagee or anyone acting by or through Mortgagee, and (ii) Mortgagor agrees to remain fully liable and shall indemnify and 0 hold harmless Mortgagee from any costs, expenses, clean-up costs,waste disposal costs,litigation costs, fines and penalties, including without limitation any costs, expenses, penalties and fines within the meaning of any applicable Environmental Laws. � w W (c) Mortgagor shall assume the burden and expense of defending Mortgagee, with counsel selected by Mortgagor and reasonably satisfactory to Mortgagee, against all legal and administrative proceedings arising out of the occurrences to which this Section 6 applies. Z Mortgagee shall have the right, but not the obligation, to participate in the defense of any such W proceedings; provided, however, that the costs thereof shall be borne by Mortgagee if Mortgagee W engages separate counsel unless Mortgagee reasonably believes counsel selected by Mortgagor is a not conducting an adequate defense and new counsel selected by Mortgagors and reasonably approved by Mortgagee is not provided within ten (10) days following written notice from Mortgagee, in which event the cost of Mortgagee's separate counsel shall be borne by Mortgagor. W Mortgagor may compromise or settle any such proceedings without the consent of Mortgagee only a if the claimant agrees as part of the compromise or settlement that Mortgagee shall have no responsibility or liability for the payment or discharge of any amount agreed upon or obligation to a take any other action. a z (d) Mortgagor shall pay when due any judgments against Mortgagee which have been indemnified under this Section 6 and which are rendered by a final order or decree of a court of competent jurisdiction from which no further appeal may be taken or has been taken within the E applicable appeal period. In the event that such payment is not made, Mortgagee, in its sole discretion, may pay any such judgments on five (5) Business Days prior written notice to 25 Packet Pg. 2860 P.16.b Mortgagor, in whole or in part, and look to Mortgagor for reimbursement pursuant to this Section 6, or may proceed to file suit against Mortgagor to compel such payment. �s 7. EVENTS OF DEFAULT. Each of the following shall constitute a default (each, an "Event of Default")hereunder: E 0. 7.1. Non-payment when due of any sum required to be paid to Mortgagee within five 2 (5) days after the due date under any of the Loan Documents, including without limitation, principal and interest; a 7.2 A breach of any covenant contained in Sections 2.3., 2.4., 2.6. or 2.7. hereof, 7.3. A breach by Mortgagor of any other term, covenant, condition, obligation or agreement under this Mortgage, and the continuance of such breach for a period of fifteen (15) days after written notice thereof shall have been given to Mortgagor; 7.4. An Event of Default under the Note or any of the other Loan Documents; 7.5. Any representation or warranty made by Mortgagor or any guarantor in any Loan Document or to induce Mortgagee to enter into the transactions contemplated hereunder shall W prove to be false, incorrect or misleading in any material respect as of the date when made; 7.6. The filing by or against Mortgagor or any pledgor or guarantor of a petition seeking relief, or the granting of relief, under the Federal Bankruptcy Code or any similar federal or state statute; any assignment for the benefit of creditors made by Mortgagor or any pledgor or any guarantor,unless with respect to any involuntary proceeding,it is dismissed within sixty(60) days Z: after the filing thereof,the appointment of a custodian,receiver,liquidator or trustee for Mortgagor or any guarantor or for any of the property of Mortgagor or any such pledgor or guarantor, or any action b Mortgagor or an guarantor to effect an of the foregoing; or if Mortgagor or anpledgor YY� Y g g� Y � or any guarantor becomes insolvent (however defined) or is not paying its debts generally as they become due; W U_ 7.7. The death, dissolution, liquidation, merger, consolidation or reorganization of Mortgagor or any pledgor or any guarantor, or the institution of any proceeding to effect any of the foregoing; 7.8. A default under any other obligation by Mortgagor (or any affiliate of Mortgagor) or any guarantor(or affiliate of any such guarantor)in favor of Mortgagee, or under any document securing or evidencing such obligation, whether or not such obligation is secured by the Property; W z 7.9. The filing, entry or issuance of any judgment, execution, garnishment, attachment, distraint or lien against Mortgagor or any guarantor or pledgor or their property, unless such judgment, execution, garnishment, attachment, distraint or lien is discharged by Mortgagor within thirty (30) days after its filing, entry or issuance; E c� 7.10. A default under any other obligation secured by the Property or any part thereof, 26 Packet Pg. 2861 P.16.b 7.11 The Property or any portion thereof shall be taken on execution or other process of law in any action against Mortgagor; 7.12 Mortgagor abandons all or a portion of the Property; or a E 0. 7.13 If(A)a breach or default by Mortgagor under any condition or obligation contained 2 in the Ground Lease is not cured within any applicable cure period provided therein, (B) there occurs any event or condition that gives the Lessor under the Ground Lease a right to terminate or cancel the Ground Lease, (C) any portion of the Property shall be surrendered or the Ground Lease shall be terminated or cancelled for any reason or under any circumstances whatsoever, or(D) any of the terms, covenants or conditions of the Ground Lease shall be modified, changed, supplemented, altered or amended, without in each case the prior written consent of Mortgagee (except that Mortgagor may extend the term of the Ground Lease without the prior written consent of Mortgagee). 8. REMEDIES. If an Event of Default shall have occurred, Mortgagee may take any of the following actions: cv 8.1. Acceleration. Mortgagee may declare the entire amount of the Liabilities W immediately due and payable, without presentment, demand, notice of any kind, protest or notice of protest, all of which are expressly waived, notwithstanding anything to the contrary contained in any of the Loan Documents. Mortgagee may charge and collect interest from the date of default 0 on the unpaid balance of the Liabilities, at the Default Rate set forth in the Note. 8.2. Possession. Mortgagee may enter upon and take possession of the Property, with or without legal action, lease the Property, collect therefrom all rentals and, after deducting all costs of collection and administration expense, apply the net rentals to any one or more of the following items in such manner and in such order of priority as Mortgagee, in Mortgagee's sole discretion, may elect: the payment of any sums due under any prior lien, taxes, water and sewer rents, charges and claims,insurance premiums and all other carrying charges, to the maintenance W repair or restoration of the Property, or on account of the Liabilities. Mortgagee is given full U- authority to do any act which Mortgagor could do in connection with the management and W operation of the Property. This covenant is effective either with or without any action brought to foreclose this Mortgage and without applying for a receiver of such rents. In addition to the foregoing, upon the occurrence of an Event of Default, Mortgagor shall pay monthly in advance to Mortgagee or to any receiver appointed to collect said rents the fair and reasonable rental value z for Mortgagor's use and occupation of the Property, and upon default in any such payment Mortgagor shall vacate and surrender the possession of the Property to Mortgagee or to such receiver. If Mortgagor does not vacate and surrender the Property then Mortgagor may be evicted z by summary proceedings. Notwithstanding anything to the contrary contained herein, subject to applicable law,Mortgagee may with or without taking possession of the Property, sue or otherwise 4i collect the Rents and profits, including those past due and unpaid. a E 8.3. Foreclosure. Mortgagee may institute any one or more actions of mortgage foreclosure against all or any part of the Property, or take such other action at law, equity or by 27 Packet Pg. 2862 P.16.b contract for the enforcement of this Mortgage and realization on the security herein or elsewhere provided for, as the law may allow, and may proceed therein to final judgment and execution for the entire unpaid balance of the Liabilities. The unpaid balance of any judgment shall bear interest at the greater of(a) the statutory rate provided for judgments, or (b) the Default Rate. Without limiting the foregoing, Mortgagee may foreclose this Mortgage and exercise its rights as a secured party for all or any portion of the Liabilities which are then due and payable, subject to the E continuing lien of this Mortgage for the balance not then due and payable. In case of any sale of the Property by judicial proceedings, the Property may be sold in one parcel or in such parcels, manner or order as Mortgagee in its sole discretion may elect. Mortgagor, for itself and anyone claiming by, through or under it, hereby agrees that Mortgagee shall in no manner, in law or in equity, be limited, except as herein provided, in the exercise of its rights in the Property or in any other security hereunder or otherwise appertaining to the Liabilities or any other obligation secured by this Mortgage, whether by any statute, rule or precedent which may otherwise require said security to be marshalled in any manner and Mortgagor, for itself and others as aforesaid, hereby expressly waives and releases any right to or benefit thereof. The failure to make any tenant a defendant to a foreclosure proceeding shall not be asserted by Mortgagor as a defense in any proceeding instituted by Mortgagee to collect the Liabilities or any deficiency remaining unpaid after the foreclosure sale of the Property. cv 8.4. Appointment of Receiver. Mortgagee may petition a court of competent W jurisdiction to appoint a receiver of the Property. Such appointment may be made either before or after sale, without notice, without regard to the solvency or insolvency of Mortgagor at the time of application for such receiver, without regard to the then value of the Property or whether the 0 Property shall be then occupied as a homestead or not, and without regard to whether Mortgagor has committed waste or allowed deterioration of the Property, and Mortgagee or any agent of Mortgagee may be appointed as such receiver. Mortgagor hereby agrees that Mortgagee has a Z: special interest in the Property and absent the appointment of such receiver the Property shall suffer waste and deterioration and Mortgagor further agrees that it shall not contest the appointment of a receiver and hereby so stipulates to such appointment pursuant to thisparagraph. PP Y P PP P � Such receiver shall have the power to perform all of the acts permitted Mortgagee pursuant to Z Section 8.2 above and such other powers which may be necessary or customary in such cases for W the protection,possession, control, management and operation of the Property during such period. LL a 8.5. Ri2hts as a Secured Party. Mortgagee shall have, in addition to other rights and remedies available at law or in equity, the rights and remedies of a secured party under the Code. Mortgagee may elect to foreclose such of the Property as then comprise fixtures pursuant either to the law applicable to foreclosure of an interest in real estate or to that applicable to personal z property under the Code. To the extent permitted by law, Mortgagor waives the right to any stay of execution and the benefit of all exemption laws now or hereafter in effect. W z 8.6. Excess Monies. Mortgagee may apply on account of the Liabilities any unexpended monies still retained by Mortgagee that were paid by Mortgagor to Mortgagee: (a) for the payment of,or as security for the payment of taxes,assessments or other governmental charges, insurance premiums, or any other charges; or (b) to secure the performance of some act by Mortgagor. 28 Packet Pg. 2863 P.16.b 8.7. Other Remedies. Mortgagee shall have the right, from time to time, to bring an appropriate action to recover any sums required to be paid by Mortgagor under the terms of this Mortgage, as they become due,without regard to whether or not any other Liabilities shall be due, and without prejudice to the right of Mortgagee thereafter to bring an action of mortgage foreclosure, or any other action,for any default by Mortgagor existing at the time the earlier action a was commenced. In addition, Mortgagee shall have the right to set-off all or any part of any E amount due by Mortgagor to Mortgagee under any of the Liabilities, against any indebtedness 2 liabilities or obligations owing by Mortgagee in any capacity to Mortgagor, including any obligation to disburse to Mortgagor any funds or other property on deposit with or otherwise in the possession, control or custody of Mortgagee. 8.8 Miscellaneous. (a) Application of Proceeds. To the fullest extent permitted by law, the proceeds of any sale under this Mortgage shall be applied to the extent funds are so available to the following items in such order as Mortgagee in its discretion may determine: (i) To payment of the costs, expenses and fees of taking possession of the Property, and of holding, operating, maintaining, using, leasing, repairing, improving, marketing and selling the same and of otherwise enforcing Mortgagee's right and remedies under this Mortgage and under the other Loan Documents, including receivers' fees, court costs, attorneys', accountants', appraisers', managers' and other W professional fees, title charges and transfer taxes; (ii) To payment of all sums expended by Mortgagee under the Loan Documents and not yet repaid, together with interest on such sums at the Default Rate; (iii) To payment of the Liabilities and all other obligations secured by this 0 Mortgage, including interest at the Default Rate and, to the extent permitted by applicable law, any prepayment fee, charge or premium required to be paid under the Note in order to prepay principal,in any order that Mortgagee chooses in its sole discretion. The remainder,if any, of such � funds shall be disbursed to Mortgagor or to the person or persons legally entitled thereto. W (b) Right and Authority of Receiver or Mortgagee in the Event of Default: Power of Attorney. Upon the occurrence of an Event of Default and entry upon the Property or appointment z of a receiver, and under such terms and conditions as may be prudent and reasonable under the W circumstances in Mortgagee's or the receiver's sole discretion, all at Mortgagor's expense, U_ Mortgagee or said receiver, or such other persons or entities as they shall hire, direct or engage, as a w the case may be, may (but shall have no obligation to) do or permit one or more of the following, successively or concurrently: (a) enter upon and take possession and control of any and all of the Property; (b) take and maintain possession of all documents, books, records,papers and accounts relating to the Property; (c) exclude Mortgagor and its agents,servants and employees wholly from the Property; (d) manage and operate the Property; (e)preserve and maintain the Property, (f)make repairs, alterations or improvements to the Property; (g) complete any construction or repair of the W Improvements, with such changes, additions or modifications of the plans and specifications or z intended disposition and use of the Improvements as Mortgagee may in its sole discretion deem W appropriate or desirable to place the Property in such condition as will, in Mortgagee's sole discretion, make it or any part thereof readily marketable or rentable; (h) conduct a marketing or a leasing program with respect to the Property, or employ a marketing or leasing agent or agents to E do so, directed to the leasing or sale of the Property under such terms and conditions as Mortgagee may in its sole discretion deem appropriate or desirable; (i) employ such contractors subcontractors, material men, architects, engineers, consultants, managers, brokers, marketing 29 Packet Pg. 2864 P.16.b agents, or other employees, agents, independent contractors or professionals, as Mortgagee may in its sole discretion deem appropriate or desirable to implement and effectuate the rights and powers in this Mortgage granted; 0) execute and deliver,in the name of Mortgagor as attorney-in- fact and agent of Mortgagor or in its own name as Mortgagee, such documents and instruments as are necessary or appropriate to consummate authorized transactions; (k) enter into such contracts a of sale, leases, whether of real or personal property, or tenancy agreements, under such terms and E conditions as Mortgagee may in its sole discretion deem appropriate or desirable; (1) collect and 2 receive the Rents and profits from the Property; (m) eject tenants or repossess personal property, as provided by law, for breaches of the conditions of their leases or other agreements; (n) sue for unpaid Rents and profits, payments, income or proceeds in the name of Mortgagor or Mortgagee or such receiver; (o) maintain actions in forcible entry and detainer, ejectment for possession and actions in distress for rent; (p) compromise or give acquittance for Rents and profits, payments, income or proceeds that may become due; (q) delegate or assign any and all rights and powers given to Mortgagee by this Mortgage; and (r) do any acts which Mortgagee in its sole discretion deems appropriate or desirable to protect the security and use such measures, legal or equitable, as Mortgagee may in its sole discretion deem appropriate or desirable to implement and effectuate the provisions of this Mortgage. This Mortgage shall constitute a direction to and full authority to any lessee, or other third party who has previously dealt or contracted or may subsequently deal or contract with Mortgagor or Mortgagee, at the request of Mortgagee, to pay all amounts owing under any lease, contract, concession, license or other agreement to Mortgagee without proof of W the default relied upon. Any such lessee or third party is irrevocably authorized to rely upon and comply with(and shall be fully protected by Mortgagor in so doing)any request,notice or demand by Mortgagee for the payment to Mortgagee of any Rents and profits or other sums which may be 0 or thereafter become due under its lease, contract, concession, license or other agreement, or for the performance of any undertakings under any such lease, contract, concession, license or other agreement, and shall have no right or duty to inquire whether any default under this Mortgage or Z: under any of the other Loan Documents has actually occurred or is then existing. Mortgagor constitutes and appoints Mortgagee, its assignees, successors, transferees and nominees, as Mortgagor's true and lawful attorney-in-fact and agent, with full power of substitution in the Property, in Mortgagor's name,place and stead, to do or permit any one or more of the foregoing Z described rights, remedies, powers and authorities, successively or concurrently, and said power W of attorney shall be deemed a power coupled with an interest and irrevocable so long as any of the U- Liabilities is outstanding. Any money advanced by Mortgagee in connection with any action taken W under this Section, together with interest thereon at the Default Rate from the date of making such advancement by Mortgagee until actually paid by Mortgagor, shall be a demand obligation owing by Mortgagor to Mortgagee and shall be secured by this Mortgage and by every other instrument securing the Liabilities. z (c) Occupancy After Foreclosure. Upon any foreclosure sale, Mortgagor or Mortgagor's representatives, successors or assigns, or any other persons claiming any interest in z the Property by, through or under Mortgagor (except tenants or subtenants under Leases entered into prior to the date of this Mortgage), occupying or using the Property, or any part thereof,to the extent not prohibited by applicable law, shall, at the option of the purchaser at such sale, a immediately become the tenant of such purchaser, which tenancy shall be a tenancy from day-to- E day, terminable at the will of either landlord or tenant, at a reasonable rental per day based upon the value of the Property occupied or used, such rental to be due daily to the purchaser. To the extent permitted by applicable law, in the event any tenant fails to surrender possession of the 30 Packet Pg. 2865 P.16.b Property upon the termination of its tenancy, the purchaser shall be entitled to institute and maintain an action for unlawful detainer of the Property in the appropriate court of the county in _ which the Real Estate is located. (d) Notice to Account Debtors. Mortgagee may, at any time after an Event of Default, notify the account debtors and obligors of any accounts, chattel paper, negotiable instruments or E other evidences of indebtedness to Mortgagor included in the Property to pay Mortgagee directly. 2 Mortgagor shall at any time or from time to time upon the request of Mortgagee provide to � Mortgagee a current list of all such account debtors and obligors and their addresses. a (e) Cumulative Remedies. All remedies in this Mortgage are cumulative and Mortgagee shall also have all other remedies provided at law and in equity or in any other Loan Documents. Such remedies may be pursued separately, successively or concurrently at the sole subjective direction of Mortgagee and may be exercised in any order and as often as occasion therefor shall arise. No act of Mortgagee shall be construed as an election to proceed under any particular provisions of this Mortgage to the exclusion of any other provision of this Mortgage or as an election of remedies to the exclusion of any other remedy which may then or thereafter be available to Mortgagee. No delay or failure by Mortgagee to exercise any right or remedy under this Mortgage shall be construed to be a waiver of that right or remedy or of any default under this Mortgage. Mortgagee may exercise any one or more of its rights and remedies at its option without regard to the adequacy of its security. (f) Payment of Expenses. Mortgagor shall pay within seven (7) days after written demand all of Mortgagee's expenses incurred in any efforts to enforce any terms of this Mortgage, whether or not any lawsuit is filed and whether or not foreclosure is commenced but not completed, including legal fees,foreclosure costs and title charges,together with interest thereon at the Default 0 Rate from the date incurred by Mortgagee until actually paid by Mortgagor. All of the same shall W be secured by this Mortgage and the other Loan Documents securing the Liabilities. 9. MISCELLANEOUS. 9.1. Notices. All notices and communications under this Mortgage shall be in writing and shall be given by either(a)hand-delivery, (b) first class mail (postage prepaid), or(c) reliable a overnight commercial courier(charges prepaid), or(d)via electronic mail in portable document or other format to the party intended to receive same, so long as in the case of electronic mail such notice is simultaneously delivered in another permitted manner, to the addresses listed in this W Mortgage. Notice shall be deemed to have been given and received: (a)if by hand delivery,upon a delivery; (b) if by mail, three (3) calendar days after the date first deposited in the United States z mail; (c) if by overnight courier, on the date scheduled for delivery; and (d) if by electronic mail, on the date delivered to such party. A party may change its address by giving written notice to the z other party as specified herein. W If to Mortgagor: Key Marina Development, LLC E 52 Riley Road, Unit 155 Celebration, Florida 34747 Attn: Mark R. Gerenger 31 Packet Pg. 2866 If to Mortgagee: LV Lending LLC 175 SW 7th Street, Suite 2101 Miami, Florida 33130 Attn: Camilo Nino E Email: cgig 0(�.Di,j�Yikvcs�tca,.italcori'i .2 ..................................... With a Copy to: Holland& Knight LLP 701 Brickell Avenue, Suite 3300 Miami, Florida 33131 Attn: Rebecca L. Mendez, Esq. Email: rcbcCca,..t1'ic1).dCZ.( I.�,Dt, ...................................................................................................... 9.2. Remedies Cumulative. The rights and remedies of Mortgagee as provided in this Mortgage or in any other Loan Document shall be cumulative and concurrent, may be pursued separately, successively or together,may be exercised as often as occasion therefor shall arise, and shall be in addition to any other rights or remedies conferred upon Mortgagee at law or in equity. The failure, at any one or more times, of Mortgagee to assert the right to declare the Liabilities due, grant any extension of time for payment of the Liabilities, take other or additional security for W the payment thereof, release any security, change any of the terms of the Loan Documents, or waive or fail to exercise any right or remedy under any Loan Document shall not in any way affect this Mortgage or the rights of Mortgagee. 0 9.3. No Implied Waiver. Mortgagee shall not be deemed to have modified or waived 0 any of its rights or remedies hereunder unless such modification or waiver is in writing and signed Z: W by Mortgagee, and then only to the extent specifically set forth therein. A waiver in one event (n shall not be construed as continuing or as a waiver of or bar to such right or remedy on a subsequent W event. Z 9.4. Partial Invalidity; Severability. The invalidity or unenforceability of any one or W W more provisions of this Mortgage shall not render any other provision invalid or unenforceable. U- WIn lieu of any invalid or unenforceable provision, there shall be added automatically a valid and W enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible. W 9.5. Binding Effect; Successors and Assigns. The covenants, conditions, waivers, Z releases and agreements contained in this Mortgage shall bind, and the benefits thereof shall inure to, the parties hereto and their respective heirs, executors, administrators, successors and assigns W a and are intended and shall be held to be real covenants running with the land; provided, however, Z W that this Mortgage cannot be assigned by Mortgagor without the prior written consent of Mortgagee, and any such assignment or attempted assignment by Mortgagor shall be void and of no effect with respect to Mortgagee. E 9.6. Entire Agreement. Modifications. This Mortgage and the other Loan Documents contain the entire agreements between the parties relating to the subject matter described in such < 32 1 Packet Pg. 2867 P.16.b documents. Any and all prior written agreements and any and all prior and contemporaneous oral agreements which are not contained in this Mortgage or such other Loan Documents are terminated. This Mortgage and the other Loan Documents may not be supplemented, extended, modified or terminated except by an agreement in writing signed by the party against whom enforcement of any waiver, change,modification or discharge is sought. Any alleged amendment, revision, waiver, discharge, release or termination which is not so documented shall not be E effective as to any party. 2 9.7. Commercial Loan. Mortgagor represents and warrants that the loans or other financial accommodations included as Liabilities secured by this Mortgage were obtained solely for the purpose of carrying on or acquiring a business or commercial investment and not for residential, consumer or household purposes. 9.8. Governing Law. This Mortgage shall be governed by and construed in accordance with the substantive laws of the State of Florida without reference to conflict of laws principles. 9.9. Joint and Several Liability. If Mortgagor consists of more than one person or entity, the word"Mortgagor" shall mean each of them and their liability shall be j oint and several. cv 9.10. Non-Merger. In the event Mortgagee shall acquire title to the Property by conveyance from Mortgagor or as a result of foreclosure, this Mortgage shall not merge in the fee estate of the Property but shall remain and continue as an existing and enforceable lien for the Liabilities secured hereby until the same shall be released of record by Mortgagee in writing. 0 9.11 Waiver; Discontinuance of Proceedings. Mortgagee may waive any single default by Mortgagor without waiving any other prior or subsequent default. Mortgagee may Z: remedy any default by Mortgagor without waiving the default remedied. Neither the failure by Mortgagee to exercise,nor the delay by Mortgagee in exercising, any right,power or remedy upon any default by Mortgagor shall be construed as a waiver of such default or as a waiver of the right to exercise any such right, power or remedy at a later date. No single or partial exercise by z Mortgagee of any right, power or remedy shall exhaust the same or shall preclude any other or W further exercise. Every such right,power or remedy under this Mortgage may be exercised at any U- time and from time to time. No modification or waiver of any provision of this Mortgage nor W consent to any departure by Mortgagor shall be effective unless the same shall be in writing and signed by Mortgagee, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose given. No notice to nor demand on Mortgagor in any case shall of itself entitle Mortgagor to any other or further notice or demand in similar or other z circumstances. Acceptance by Mortgagee of any payment in an amount less than the amount then due on any of the Liabilities shall be deemed an acceptance on account only and shall not in any W way affect the existence of a default. In case Mortgagee shall have proceeded to invoke any right, z remedy or recourse permitted under this Mortgage or under the other Loan Documents and shall thereafter elect to discontinue or abandon the same for any reason, Mortgagee shall have the unqualified right to do so. In such an event, Mortgagor and Mortgagee shall be restored to their former positions with respect to the Liabilities, the Loan Documents, the Property and otherwise, and the rights, remedies, recourses and powers of Mortgagee shall continue as if the same had never been invoked 33 Packet Pg. 2868 P.16.b 9.12 Application of the Proceeds of the Note. To the extent that proceeds of the Note are used to pay the Liabilities secured by any outstanding lien, security interest, charge or prior encumbrance against the Property, Mortgagee shall be subrogated to any and all rights, security interests and liens owned by any owner or holder of such outstanding liens, security interests, charges or encumbrances, irrespective of whether said liens, security interests, charges or E encumbrances are released. 2 a� 9.13 Unsecured Portion of Liabilities. If any part of the Liabilities cannot be lawfully secured by this Mortgage or if any part of the Property cannot be lawfully subject to its lien and security interest to the full extent of Liabilities, then all payments made shall be applied on the Liabilities first in discharge of that portion which is unsecured by this Mortgage. 9.14 Cross Default. An Event of Default under this Mortgage shall be a default or Event of Default under each of the other Loan Documents. 9.15 Interest After Sale. In the event the Property or any part thereof shall be sold upon foreclosure as provided in this Mortgage, to the extent permitted by law, the sum for which the same shall have been sold shall, for purposes of redemption (if there is any right of redemption which has not been effectively waived pursuant to the laws of the state in which the Property is located), bear interest at the Default Rate. 9.16 Inconsistency with Other Loan Documents. In the event of any inconsistency between the provisions of this Mortgage and the provisions in any of the other Loan Documents, 0 it is intended that the provisions selected by Mortgagee in its sole subjective discretion shall be controlling. 0 9.17 No Merger. It is the desire and intention of the parties that this Mortgage and the < lien of this Mortgage will not merge in fee simple title to the Property. Should Mortgagee acquire W any additional or other interests in or to the Property or its ownership,then,unless a contrary intent a z is manifested by Mortgagee as evidenced by an appropriate document duly recorded, this Mortgage and its lien shall not merge in such other or additional interests in or to the Property, W toward the end that this Mortgage may be foreclosed or sold pursuant to foreclosure proceedings a as if owned by a stranger to said other or additional interests. 9.18 Rights With Respect to Junior Encumbrances. Any person or entity purporting to have or to take a junior mortgage, deed of trust or other lien upon the Property or any interest therein shall be subject to the rights of Mortgagee to (i) amend, modify, increase, vary, alter or Z supplement this Mortgage, the Note or any of the other Loan Documents (ii) extend the maturity date of the Liabilities (iii)increase the amount of the Liabilities (iv)waive or forebear the exercise a of any of its rights and remedies under this Mortgage or under any of the other Loan Documents Z and (v) release any collateral or security for the Liabilities, in each and every case without obtaining the consent of the holder of such junior lien and without the lien or security interest of this Mortgage losing its priority over the rights of any such junior lien. 9.19 Mortgagee May File Proofs of Claim. In the case of any receivership,insolvency, 2 bankruptcy, reorganization, arrangement, adjustment, composition or other proceedings affecting 34 Packet Pg. 2869 P.16.b Mortgagor or the principals or general partners in Mortgagor, or their respective creditors or property, Mortgagee, to the extent permitted by law, shall be entitled to file such proofs of claim and other documents as may be necessary or advisable in order to have the claims of Mortgagee allowed in such proceedings for the entire Liabilities at the date of the institution of such proceedings and for any additional amount which may become due and payable by Mortgagor a under this Mortgage after such date. E c 9.20 After-Acquired Property. All property acquired by Mortgagor after the date of � this Mortgage which by the terms of this Mortgage shall be subject to the lien and the security interest created, shall immediately upon the acquisition by Mortgagor and without further mortgage, conveyance or assignment, become subject to the lien and security interest created by this Mortgage. Nevertheless, Mortgagor shall execute, acknowledge, deliver and record or file, as appropriate, all and every such further mortgages, deeds of trust, deeds to secure debt, security agreements, financing statements, assignments and assurances as Mortgagee shall require for accomplishing the purposes of this Mortgage. 9.21 No Representation. By accepting delivery of any item required to be observed, performed or fulfilled or to be given to Mortgagee pursuant to the Loan Documents,including any officer's certificate,balance sheet, statement of profit and loss or other financial statement, survey, appraisal or insurance policy, Mortgagee shall not be deemed to have warranted, consented to, or affirmed the sufficiency, legality, effectiveness or legal effect of the same, or of any term, provision or condition thereof. Such acceptance of delivery shall not be or constitute any warranty, consent or affirmation of Mortgagee. 2 9.22 Recording and Filing. Mortgagor will cause the Loan Documents and all amendments and supplements and substitutions to be recorded, filed, re-recorded and re-filed in 0 such manner and in such places as Mortgagee shall reasonably request. Mortgagor will pay on W demand all such recording, filing, re-recording and re-filing taxes, fees and other charges. Mortgagor shall reimburse Mortgagee, or its servicing agent, for the costs incurred in obtaining a tax service company to verify the status of payment of taxes and assessments on the Property. z 9.23 Maximum Interest. The provisions of this Mortgage and all other agreements between Mortgagor and Mortgagee,whether now existing or subsequently arising,written or oral, a are expressly limited so that in no contingency or event whatsoever, whether by reason of demand or acceleration of the maturity of the Note or otherwise, shall the amount paid, or agreed to be paid,to Mortgagee for the use,forbearance or retention of the money loaned under the Note exceed W W the maximum amount permissible under applicable law. If, from any circumstance whatsoever, performance or fulfillment of any provision of this Mortgage or of any agreement between Mortgagor and Mortgagee shall,at the time performance or fulfillment, exceed the limit for interest a w prescribed by law or otherwise transcend the limit of validity prescribed by applicable law, then ipso facto the obligation to be performed or fulfilled shall be reduced to such limit. If, from any W circumstance whatsoever, Mortgagee shall ever receive anything of value deemed interest by applicable law in excess of the maximum lawful amount, an amount equal to any excess shall be C applied to the reduction of the principal balance owing under the Note in the inverse order of its E maturity (whether or not then due) or, at the option of Mortgagee, be rebated to Mortgagor, and not to the payment of interest. All interest (including any amounts or payments deemed to be interest) paid or agreed to be paid to Mortgagee shall, to the extent permitted by applicable law, 35 Packet Pg. 2870 P.16.b be amortized,prorated, allocated and spread throughout the full period until payment in full of the principal balance of the Note so that the Interest thereon for such full period will not exceed the maximum amount permitted by applicable law. This paragraph will control all agreements between Mortgagor and Mortgagee. 9.24 Servicing Agent. Mortgagor acknowledges that the Loan Documents may be0. serviced by an agent designated by Mortgagee from time to time, and that such servicing agent 2 shall have the authority to collect payments on the Liabilities and to exercise the rights and remedies of Mortgagee under the Loan Documents for and on behalf of Mortgagee. a 9.25 Sole Discretion of Mortmee. Wherever pursuant to this Mortgage or any other Loan Document (i) Mortgagee exercises any right given to it to approve or disapprove; (ii) any arrangement or term is to be satisfactory to Mortgagee; or(iii) any other decision or determination is to be made by Mortgagee,the decision of Mortgagee to approve or disapprove, all decisions that arrangements or terms are satisfactory or not satisfactory and all other decisions and determinations made by Mortgagee, shall be in the sole discretion of Mortgagee, except as may be otherwise expressly and specifically provided herein or therein 9.26 Construction. The following rules apply to the construction and interpretation of this Mortgage: (i) singular words connote the plural number as well as the singular and vice versa W as used in the definitions and elsewhere in this Mortgage; (ii) unless specifically otherwise provided, all references in this Mortgage to particular articles, sections, subsections, clauses, schedules or exhibits are references to articles, sections, subsections, clauses, schedules or exhibits 0 of this Mortgage; (iii) the section headings are solely for convenience of reference and do not constitute a part of this Mortgage nor affect its meaning, construction or effect; (iv) the terms "include" or "including" are not restrictive and shall be deemed to include the terms "but not � limited" or "without limitation"; (v) the term "attorney's fees" or similar phrases includes the reasonable fees and disbursements of Mortgagee's counsel or law firm in reviewing the Loan Documents, investigating,preparing and pursuing claims before or at trial and all appellate levels g g�P P g P g � PP � or in bankruptcy, and includes the fees of such counsel's or law firm's paralegals and consultants; Z (vi) the term "days" means calendar days; provided that if any time period ends on a Saturday, W Sunday or holiday officially recognized by the state within which the Real Estate is located, the U- period shall be deemed to end on the next succeeding business day and the term "business day" W means a weekday, Monday through Friday, except a legal holiday or a day on which banking institutions in Marathon, Florida are authorized to be closed; and (v) this document may be construed as a mortgage, security deed, deed of trust, chattel mortgage, conveyance, assignment, security agreement,pledge, financing statement, hypothecation or contract, or any one or more of z the foregoing, in order to fully effectuate the liens and security interests created and the purposes and agreements in this Mortgage. W z 9.27 SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL. (a) MORTGAGOR, TO THE FULL EXTENT PERMITTED BY LAW, KNOWINGLY, INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, (i) SUBMITS TO PERSONAL JURISDICTION IN THE STATE WHERE THE PROPERTY IS LOCATED OVER ANY SUIT, ACTION 36 Packet Pg. 2871 P.16.b OR PROCEEDING BY ANY PERSON ARISING FROM OR RELATING TO THE NOTE, THIS MORTGAGE OR ANY OTHER OF THE LOAN DOCUMENTS, (ii) AGREES _ THAT ANY SUCH ACTION, SUIT OR PROCEEDING MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION SITTING IN THE COUNTY WHERE THE PROPERTY IS LOCATED, (iii) SUBMITS TO THE JURISDICTION OF SUCH COURTS, AND, (iv) TO THE FULLEST EXTENT E PERMITTED BY LAW,AGREES THAT IT WILL NOT BRING ANY ACTION, SUIT OR PROCEEDING IN ANY FORUM OTHER THAN THE COUNTY WHERE THE PROPERTY IS LOCATED (BUT NOTHING IN THIS MORTGAGE SHALL AFFECT THE RIGHT OF MORTGAGEE TO BRING ANY ACTION, SUIT OR PROCEEDING IN ANY OTHER FORUM). (b) MORTGAGOR, TO THE FULL EXTENT PERMITTED BY LAW, KNOWINGLY, INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO THE LIABILITIES OR ANY CONDUCT, ACT OR ACTION OF MORTGAGEE OR MORTGAGOR, OR ANY OF THEIR DIRECTORS, OFFICERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS OR ATTORNEYS, OR ANY OTHER PERSONS AFFILIATED WITH MORTGAGEE OR MORTGAGOR, IN EACH OR THE W FOREGOING CASES, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. [Remainder of page intentionally left blank;signature page to follow.] 4j 37 Packet Pg. 2872 P.16.b IN WITNESS WHEREOF, Mortgagor, intending to be Legally bound, has duly executed and delivered this Mortgage and Security Agreement as of the day and year first above written. �s WITNESS: MORTGAGOR: CL Name: KEY MARINA DEVELOPMENT, LLC a Florida limited Liability company a Name: By: Key Marina Holdings, LLC, a Delaware limited Liability company, its Manager and Sole Member By: Name: Mark R. Gerenger Its: Manager cv STATE OF FLORIDA ) SS.: COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2019, (s by Mark R. Gerenger as Manager of KEY MARINA HOLDINGS, LLC, a Delaware limited W Liability company, the Manager of KEY MARINA DEVELOPMENT, LLC, a Florida limited Liability company, on behalf of the company. He is personally known to me (YES) (NO) or has z produced as identification. W U- Notary Public �s [Notarial Seal] Printed Name of Notary w 4j 38 Packet Pg. 2873 Schedule A Part I- Singleton Parcel Parcel 1 0 E CL Lots I and 2, Block 4, MANDALAY, according to the Plat thereof, recorded in Plat Book 1, .2 Page 1,94, among the Public Records of Monroe County, Florida; Together with parcel of submerged land in Sec. 6, Twp., 62 South, Rge, 39 East, Key Largo, Florida,Monroe County, Florida, more particularly described as: Frorn the intersection of the dividing line between Lots 2and 3, Block 4 with the Southeasterly side of East Second Street, all as shown on Plat of MANDALAY, recorded in Plat Book 1, Page >% 194, Public Records of Monroe County, Florida, run Southeasterly along said dividing line, a distance of 150 feet to the most Easterly corner ofLot 2 and the most Westerly comer of a parcel heretofore conveyed to A.F. Meade by 'trustees LLF, Deed No. 22153 and the "Point of Beginning of the parcel hereinafter described;thLnee continue Southeasterly along last described course and along the Southwesterly side of the Meade parcel, a distance of 250 feet; thence Southwesterly and parallel to the said Southeasterly side of East Second Street, a distance of 125.8 feet to the prolongation of the dividing line between Lot 1, Block 4, and Second Avenue, W according to said 'Plat Book 1, Page .1.94; thence Northwesterly along said prolongation a distance of 250 feet to the most Southerly corner of said Lot 1, Block 4; thence Northeasterly along the Southeasterly side of Lots I and 2:, a distance of 125.8 feet to the Point urBeginning. 0 Part'll - Lively Parcel 0 Z: A strip of land 125 feet wide and 250 feet in depth off the Southwesterly side of Block 3, said W (n strip being 125 feet on.East First Street and East Second Street, and 250 feet on Second Avenue, < W MANDALAY, according to the plat thereof recorded in Plat Book 1, Page 194 of the Public RCCOTds of Monroe County, Florida, Also described as: A strip of land 125 feet wide and 250 z feet in depth off the Southwesterly side of Block 3, said strip being 125 feet on East First Street < W on East Second. and East Avenue 250 :feet on Second Avenue, MANDALAY, according to the W U- plat thereof recorded in Plat Book 1, Page 194 of the Public Records of Monroe Courity, Florida. a W AND W A tract of land in Block 3 of MANDALAY, a subdivision of Key Largo, according to the Plat recorded in Plat Book 1, at Page 194 Public Records of Mon-roe County, l7lorida, said tract z having a frontage of 100 feet on East First Street, according to the plat of MANDALAY, and a W depth of'95 feet and further described as the Northwesterly '95 feet of the Northeasterly 100 feet a z of the Southwesterly 225 feet of said Block 3. W E 39 Packet Pg. 2874 AND 'rhe Northeasterly 50 feet of the Sontliwesterly 175 feet, and the Northeasterly 50 feet of the Southwesterly 225 feet, Block 3, MANDALAY, a subdivision of Key Largo, according to the Plat recorded in Plat Book 1, Page 194 Public Records of Monroe County, Florida, less the Northwesterly '95 feet of the Nartheasterly 100 feet of the Southwesterly 225 feet thereof of said E Btack 3. CL .2 Part IT[- Bennett Parcel Lots 1, 2, 3, 4, 5, 6, 7, 8, 30, 31, 32 and 33, Block 2, MANDALAY, according to the Plat thereof, as recorded in Plat Book 1, Page 194 of the Public Records of Monroe County, Florida. Part IV-that certain leasehold interest in and to that premises described in Exhibit B to that Right of Way Lease Agreement and Consent to Assignment of Lease recorded in Official Records Book 2877, page 1916 of the Public Records of Monroe County, Florida,being: A portion of an Amendment to Lease, as recorded in Official Records Book 2539,Page 1634, of the Public Records of Monroe County, Florida, described as follows: A portion of Second Avenue adjacent to Lot 1, Block 4, MANDALAY, according to the Plat thereof, as recorded in Plat Book 1, Page 194, of the Public Records of Monroe County, Florida, described as W follows: COMMENCE at the intersection of the centerline of said Second Avenue with the centerline of East Second Street, according to said Plat; thence S 44'37'16"E, along the centerline of said Second Avenue, 0 2 a distance of 25.00 feet to a point on the southwesterly projection of the southeasterly right-of-way line of East Second Street;thence N 45'17'46"E along said southwesterly projection of East Second Street, 9.60 01 0 feet to a line being 20.40 feet southwesterly of and parallel with the northeasterly right-of-way line of said Z: W Second Avenue, said line also being the southwesterly limits of said Amendment to Lease; thence S 44'37'16"E along said parallel line and said southwesterly limits of said Amendment to Lease 19.99 feet W to a point on the southeasterly limits of a proposed cul-de-sac and a point on a non-tangent curve, concave to the east,having a radius of 20.75 feet and a central angle of 17'20'06" (a radial line bears S 75'05'47" z E from said point), said point also being the POINT OF BEGINNING; thence northerly along said W southeasterly limits of proposed cul-de-sac along the arc of and said non-tangent curve, a distance of 6.28 W LL feet; (the next three courses and distance being along said southeasterly limits of proposed cul-de-sac) a W thence N 472 1'06"E, 3.52 feet;thence N 43'27'45"E, 3.27 feet to a point on a non-tangent curve, concave to the northwest,having a radius of 50.00 feet and a central angle of 10'56'18"(a radial line bears S 48'24'43"E to said point);thence northeasterly along the arc of said non-tangent curve a distance W of 9.55 feet to the northeasterly line of said Amendment to Lease and a point of cusp with a non-tangent curve, concave to the northeast,having a radius of 25.00 feet and a central angle of 20'34'30" (a radial z line bears S 65'57'14"W from said point);thence southeasterly along said northeasterly line of Amendment of Lease and the arc of said non-tangent curve, a distance of 8.98 feet to a point of tangency; W thence S 44'3 7'16"E along said northeasterly line Amendment of Lease also being said northeasterly z W right-of-way line of said Second Avenue, a distance of 151.90 feet to the southeasterly limits of said Amendment of Lease;thence S 45'22'44"W along said southeasterly limits of said Amendment of Lease, a distance of 20.40 feet to said line being 20.40 feet southwesterly of and parallel with the northeasterly right-of-way line of said Second Avenue and said southwesterly limits of said Amendment E of Lease;thence N 44'37'16"W,along said parallel line and said southwesterly limits of said Amendment of Lease, a distance of 156.84 feet to the POINT OF BEGINNING. 40 Packet Pg. 2875 P.16.c DocH 2205126 02/07/2019 9:30AM Filed & Recorded in Official Records of MONROE COUNTY KEVIN MADOK 02/07/2019 9:30AM MORTGAGELDOCASTAMP Brit 7:700.00 Prepared by and after Doc# 2205126 Bk# 2947 Pg# 2204 t3 recording return to: Rebecca L. Mendez, Esq. Holland&Knight LLP c0. 701 Brickell Avenue, Suite 3300 Miami, Florida 33131 a MORTGAGE AND SECURITY AGREEMENT This MORTGAGE AND SECURITY AGREEMENT dated February 4, 2019 (together with any amendments or modifications hereto in effect from time to time, the "Mortgage"), is made by KEY MARINA DEVELOPMENT, LLC, a Florida limited liability company, having an address of 52 Riley Road, Unit 155, Celebration, Florida 34747 ("Mortgagor") in favor of LV LENDING LLC, a Florida limited liability company, having an office at 175 SW 7th Street, Suite 2101, Miami, Florida 33130 ("Mortgagee"). WITNESSETH: WHEREAS, Mortgagor is indebted to Mortgagee in the principal sum of Two Million Two Hundred Thousand and No/100 Dollars ($2,200,000.00) (the "Loan"), together with interest thereon, as evidenced by a Promissory Note of even date herewith from Mortgagor to Mortgagee (the "Note"); WHEREAS, Mortgagor is the owner of fee simple title to that certain tract of land located in Monroe County, Florida, as more particularly described in Schedule "A" attached hereto and made a part hereof(the "Real Estate"); and a� WHEREAS, to induce Mortgagee to make the Loan and to secure payment of the Note and the other obligations described below, Mortgagor has agreed to execute and deliver this Mortgage. GRANTING CLAUSES NOW, THEREFORE, to secure to Mortgagee (i) the repayment of all sums due under c this Mortgage, the Note (and all extensions, renewals, replacements and amendments thereof) NOTE TO RECORDER:All documentary stamp in the amount of $7,700.00 and intangible taxes in the amount of$4,400.00 are due in connection with the indebtedness evidenced by the Note are being paid in connection with the recordation of this instrument. This instrument is to be filed and indexed in the real estate records and is also to be indexed in the index of financing statements under the names of Mortgagor, as "Debtor," and Mortgagee, as "Secured Party." this instrument shall also be effective from the date of its recording as a financing statement filed as a fixture filing with respect to all goods constituting part of the Property which are or are to become fixtures. Packet Pg. 2876 P.16.c Doc# 2205126 Bk# 2947 Pg# 2205 and the other Loan Documents (as such term is defined in the Note, the "Loan Documents"); (ii) the performance of all terms, conditions and covenants set forth in the Loan Documents; (iii) [reserved]; (iv) the repayment of all reimbursement obligations due or that may become due under or in connection with any present or future letters of credit issued by Mortgagee for the account of Mortgagor; and (v) all other obligations or indebtedness of Mortgagor to Mortgagee of whatever kind or character and whenever borrowed or incurred, including without limitation, principal, interest, fees, late charges and expenses, including attorneys' fees (subsections (i), (ii), (iii), (iv) and (v) collectively, the "Liabilities"), Mortgagor has mortgaged, granted and 0. conveyed and by these presents DOES HEREBY MORTGAGE, GRANT AND CONVEY TO MORTGAGEE, ITS SUCCESSORS AND ASSIGNS, all of Mortgagor's right, title and interest now owned or hereafter acquired in and to each of the following (collectively, the "Property"): (A) The Real Estate; (B) All buildings, structures, facilities, utility lines and other improvements located on, in, under or above or comprising any of the Real Estate (the "Improvements"); (C) All easements, plants, landscaping, water rights, mineral rights, water taps, sewer taps, rents, tenements, appurtenances and hereditaments located on, in, under or above, or belonging or appertaining to, any of the Real Estate or the Improvements (collectively, "Appurtenances"); (D) All awards and payments, including interest thereon, and the right to receive them, which may be made with respect to any part of the Real Estate or the Improvements as a result of the exercise of the right of eminent domain, the alteration of the grade of any street, or any other damage or injury to or decrease in the value of the Real Estate or the Improvements; (E) All fixtures, equipment and other goods now or hereafter located on and used in E connection with any of the Real Estate or the Improvements (all of the foregoing herein called the "Service Equipment"), including without limitation: (i) all appliances, furniture and furnishings; all articles of interior decoration, floor, wall and window coverings; all office, restaurant, bar, kitchen and laundry fixtures, utensils, appliances and equipment; all supplies, tools and accessories; all storm and screen windows, shutters, doors, decorations, awnings, shades, blinds, signs, trees, shrubbery and other plantings; (ii) all building service fixtures, machinery and equipment of any kind whatsoever; all lighting, heating, ventilating, air conditioning, refrigerating, sprinkling, plumbing, security, irrigating, cleaning, incinerating, waste disposal, communications, alarm, fire prevention and extinguishing systems, fixtures, apparatus, machinery and equipment; all elevators, escalators lifts cranes hoists and platforms; pP � Y all pipes, conduits, pumps, boilers, tanks, motors, engines, furnaces and compressors; all dynamos, transformers and generators; (iii) all building materials, building machinery and building equipment delivered on site to the Real Estate during the course of, or in connection with any construction or repair or renovation of the buildings and improvements; (iv) all parts, fittings, accessories, accessions, substitutions and replacements therefor and thereof; and (v) all files, books, ledgers, reports and records relating to any of the foregoing; 2 Packet Pg. 2877 DocN 2205126 P•16.c Bk# 2947 Pgp 2206 (F) All leases, licenses, concessions, occupancy or other agreements for all or any portion of the Real Estate or the Improvements now or subsequently entered into (collectively, the "Leases") and all rents, royalties, issues, profits, revenue, income and other benefits of the Real Estate or the Improvements (collectively, "Rents") now or subsequently arising from the use or enjoyment or from Leases pertaining to the Real Estate or the Improvements or arising from any of the Contracts (as defined below) or any of the General Intangibles (as defined below) and all cash or securities deposited to secure performance by the tenants, lessees or � licensees, as applicable, of their obligations under any such leases, licenses, concessions or c0. occupancy agreements, whether said cash or securities are to be held until the expiration of the terms of said leases, licenses, concessions or occupancy agreements or applied to one or more of the installments of rent coming due arising from or relating to any of the Real Estate or the Improvements; (G) All of the following personal property (collectively referred to as the "Contracts"): instruments, chattel paper, letter-of-credit rights, investment property, deposit accounts (the foregoing terms being used herein as defined in the Code (as defined herein) whether or not such collateral is subject thereto), general intangibles and contract rights (including, but not limited to, (i) all architectural contracts, construction contracts, plans and specifications, and construction and other warranties, (ii) all service contracts, purchase contracts, reservation agreements, management contracts, equipment leases and other contracts (including all deposits, prepaid expenses thereon, insurance policies and unearned premiums thereon), (iii) all licenses, building and other permits, books, records, customer lists, computer programs, software and printouts, trade names and trademarks and (iv) all abstracts and other title evidence) and insurance policy rights and claims arising from or related to any of the Real Estate or the Improvements, the construction thereof or any business or activity conducted thereon, but exclusively if such Contract relates to or is used in connection with the ownership, operation and/or maintenance of the Real Estate and/or the Improvements; (H) All insurance policies, claims and proceeds relating to the Real Estate or the E Improvements or any activity thereon; and (I) All present and future- funds, accounts, instruments, accounts receivable, documents, causes of action, claims, general intangibles (including trademarks, trade names, service marks and symbols now or subsequently used in connection with any part of the Real Estate or the Improvements, all names by which the Real Estate or the Improvements may be operated or known, all rights to carry on business under such names, and all rights, interest and privileges which Mortgagor has or may have as developer or declarant under any covenants, restrictions or declarations now or subsequently relating to the Real Estate or the Improvements) and all notes or chattel paper now or subsequently arising from or by virtue of any transactions c related to the Real Estate or the Improvements, and all customer lists, other lists and business information relating in any way to the Real Estate, the Improvements, other portions of the Property or its use (collectively, "General Intangibles"); and (J) All water taps, sewer taps, certificates of occupancy, permits, licenses, franchises, plats, certificates, consents, approvals and other rights and privileges now or subsequently obtained in connection with the Real Estate or the Improvements and all present and future 3 Packet Pg. 2878 P.16.c Doen 2205126 Bkq 2947 Pg# 2207 warranties and guaranties relating to the Improvements or to any equipment, fixtures, furniture, furnishings, personal property or components of any of the foregoing now or subsequently located or installed on the Real Estate or the Improvements; (K) All licenses and permits in the name of Mortgagor, including occupational, city and county, used in connection with the operation of the Real Estate (the "Licenses"), and to the extent assignable, all of Mortgagor's development rights, authorizations, approvals and entitlements in connection with the Real Estate (the "Development Rights"); 0. (L) All other or greater rights and interests of every nature in the Real Estate or the Improvements and in the possession or use thereof and income therefrom; and ° (M) All extensions, additions, improvements, betterments, proceeds, products, replacements, additions, substitutions, renewals and accessions of or to any of the foregoing including the Real Estate or the Improvements and all inventory, accounts, chattel paper, documents, instruments, equipment, fixtures, farm products, consumer goods, general intangibles and other property of any nature constituting proceeds acquired with proceeds of any of the property described above, which term "proceeds" shall have the meaning given to it in the Uniform Commercial Code, as amended, (the "Code") of the State in which the Property is located (collectively, the "Proceeds") and shall additionally include whatever is received upon the use, lease, sale, exchange, transfer, collection or other utilization or any disposition or conversion of any of the Real Estate, Improvements, Service Equipment, Leases, Rents, Contracts and Appurtenances, General Intangibles, Licenses and Development Rights voluntary or involuntary, whether cash or non-cash, including proceeds of insurance and condemnation awards, rental or lease payments, accounts, chattel paper, instruments, documents, contract rights, general intangibles, equipment and inventory. 0 TO HAVE AND TO HOLD the above granted and conveyed Property unto and to the proper use and benefit of Mortgagee and its successors and assigns, forever. PROVIDED ALWAYS, and these presents are upon the express condition, that if(i) all the Liabilities, are paid in full, and (ii) each and every representation, warranty, agreement and covenant of this Mortgage and the other Loan Documents are complied with and abided by, then this Mortgage and the estate hereby created shall cease and be null and void and canceled of record. The terms of the Loan Documents are hereby made a part of this Mortgage to the same extent and with the same effect as if fully set forth herein. All capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Loan Documents. AND Mortgagor covenants and agrees with and represents to Mortgagee as follows: a 1. FUTURE ADVANCES; PROTECTION OF PROPERTY. This Mortgage shall secure any additional loans as well as any and all present or future advances and readvances under the Liabilities made by Mortgagee to or for the benefit of Mortgagor or the Property within twenty (20) years from the date hereof(whether such advances are obligatory or are made at the option of Mortgagee or otherwise), including, without limitation: (i) principal, interest, late 4 Packet Pg. 2879 P.16.c Doen 2205126 Bkq 2947 Pgp 2208 charges, fees and other amounts due under the Liabilities or this Mortgage; (ii) all advances by Mortgagee to Mortgagor or any other person to pay costs of erection, construction, alteration, repair, restoration, maintenance and completion of any improvements on the Property; (iii) all advances made or costs incurred by Mortgagee for the payment of real estate taxes, assessments or other governmental charges, maintenance charges, insurance premiums, appraisal charges, environmental inspection, audit, testing or compliance costs, and costs incurred by Mortgagee for the enforcement and protection of the Property or the lien of this Mortgage; and (iv) all legal 0 fees, costs and other expenses incurred by Mortgagee by reason of any default or otherwise in 0. connection with the Liabilities. The total amount of the Liabilities that may be so secured may decrease to a zero amount from time to time, or may increase from time to time, but the total unpaid balance secured at any one time shall not exceed Eight Million Eight Hundred Thousand and No/100 Dollars ($8,800,000.00). Mortgagor agrees that if, at any time during the term of this Mortgage or following the commencement of a foreclosure action hereunder (whether before or after the entry of a judgment of foreclosure), Mortgagor fails to perform or observe any covenant or obligation under this Mortgage including, without limitation, payment of any of the foregoing, Mortgagee may (but shall not be obligated to) take such steps as are reasonably necessary to remedy any such nonperformance or nonobservance and provide payment thereof. All amounts advanced by Mortgagee shall be added to the amount secured by this Mortgage and the other Loan Documents (and, if advanced after the entry of a judgment of foreclosure, by such judgment of foreclosure), and shall be due and payable on demand, together with interest at the Default Rate (as defined in the Note) set forth in the Note, such interest to be calculated from the date of such advance to the date of repayment thereof. 2. REPRESENTATIONS,WARRANTIES AND COVENANTS. 2.1. Payment and Performance. Mortgagor shall (a) pay to Mortgagee all sums required to be paid by Mortgagor under the Loan Documents, in accordance with their stated E terms and conditions; (b) perform and comply with all terms, conditions and covenants set forth in each of the Loan Documents by which Mortgagor is bound; and (c) perform and comply with all of Mortgagor's obligations and duties as landlord under any Leases. a� 2.2. Seisin and Warranty. Mortgagor hereby warrants that (a) Mortgagor is seized of an indefeasible estate in fee simple in, and warrants the title to, the Property; (b) Mortgagor has the right, full power and lawful authority to mortgage, grant, convey and assign the same to Mortgagee in the manner and form set forth herein; and (c) this Mortgage is a valid and enforceable first lien on the Property. Mortgagor hereby covenants that Mortgagor shall (a)preserve such title and the validity and priority of the lien of this Mortgage and shall forever warrant and defend the same to Mortgagee against all lawful claims whatsoever; and (b) execute, acknowledge and deliver all such further documents or assurances as may at any time hereafter 0 be reasonably required by Mortgagee to protect fully the lien of this Mortgage. 2.3. Insurance. Mortgagor shall obtain and maintain at all times throughout the term of this Mortgage the insurance required pursuant to the terms of the Loan Agreement. 5 Packet Pg. 2880 DocU 2205126 P.16.c UP 2947 Pga 2209 2.4. Taxes and Other Charj4es. Mortgagor shall promptly pay and discharge all taxes, assessments, water and sewer rents, and other governmental charges imposed upon the Property prior to delinquency, but in no event after interest or penalties commence to accrue thereon or become a lien upon the Property. Notwithstanding the foregoing, Mortgagor shall have the right to contest, at its own expense, by appropriate legal proceedings conducted in good faith and with due diligence, the amount or validity of such taxes, assessments, water and sewer rents, or other governmental charges, provided that: (a) Mortgagor has established on its books 0 or by deposit of cash with Mortgagee, at the option of Mortgagee, a reserve for the payment 0. thereof in such amount as Mortgagee may require; and (b) such contest operates to prevent 0 collection, stay any proceedings which may be instituted to enforce payment of such item, and prevent a sale of the Property to pay such item. Mortgagor shall promptly provide to Mortgagee, upon request, copies of receipted tax bills, canceled checks or other evidence satisfactory to Mortgagee evidencing that such taxes, assessments, water and sewer rents, and other governmental charges have been timely paid. 2.5. Escrows. During the term of the Loan, the Mortgagor shall provide Mortgagee with evidence of payment of all real estate taxes and insurance premiums with respect to the Property. If required by Mortgagee at any time after the occurrence of an Event of Default, Mortgagor shall pay to Mortgagee at the time of each installment of interest or of interest and principal, as the case may be, due under the Note, and commencing with the first payment due ° after the date of such request, a sum equal to (a) the amount of the next installment of taxes and assessments levied or assessed against the Property, and/or (b) the premiums which will next become due on the insurance policies required by this Mortgage, all in amounts as estimated by Mortgagee, less all sums already paid therefor or deposited with Mortgagee for the payment thereof, divided by the number of payments to become due before two (2) months prior to the date when such taxes and assessments and/or premiums, as applicable, will become due, such sums to be held by Mortgagee to pay the same when due. If such escrow funds are not sufficient to pay such taxes and assessments and/or insurance premiums, as applicable, as the same become due, Mortgagor shall pay to Mortgagee, upon request, such additional amounts as Mortgagee E shall estimate to be sufficient to make up any deficiency. No amount paid to Mortgagee hereunder shall be deemed to be trust funds but may be commingled with general funds of Mortgagee and no interest shall be payable thereon. Upon the occurrence of an Event of Default, Mortgagee shall have the right, at its sole discretion, to apply any amounts so held against the Liabilities. 2.6. Transfer of Title. Without the prior written consent of Mortgagee in each instance, Mortgagor shall not cause or permit any transfer of the Property or any part thereof, whether voluntarily, involuntarily or by operation of law, nor shall Mortgagor enter into any agreement or transaction to transfer, or accomplish in form or substance a transfer, of the Property. A "transfer" of the Property includes: (a) the direct or indirect sale, transfer or conveyance of the Property or any portion thereof or interest therein; (b) the execution of an 0 installment sale contract or similar instrument affecting all or any portion of the Property; (e) if Mortgagor, or any general partner or member of Mortgagor, is a corporation,partnership, limited liability company or other business entity, the transfer (whether in one transaction or a series of transactions and whether a direct or indirect transfer) of any stock, partnership, limited liability company or other ownership interests in such corporation, partnership, limited liability company 6 Packet Pg. 2881 DocN 2205126 P.16.c Bkq 2947 Pgq 2210 or entity; (d) if Mortgagor or any member of Mortgagor is a corporation, the creation or issuance of new stock by which an aggregate of 10% or more of such corporation's stock shall be vested in a party or parties who are not now stockholders or has the effect of diluting by more than 10% of any current stockholder's, shareholder's equity or membership interests; and (e) an agreement by Mortgagor leasing all or a substantial part of the Property for other than actual occupancy by a space tenant thereunder or a sale, assignment or other transfer of or the grant of a security interest in and to any Leases. Additionally, any change in the present ownership (directly or 0 indirectly) of the Mortgagor or change in ownership structure of Mortgagor (directly or indirectly) 0. shall constitute a default hereunder. 2.7. No Encumbrances. Mortgagor shall not create or permit to exist any mortgage, pledge, lien, security interest (including, without limitation, a purchase money security interest), encumbrance, attachment, levy, distraint or other judicial process on or against the Property or any part thereof (including, without limitation, fixtures and other personalty), whether superior or inferior to the lien of this Mortgage, without the prior written consent of Mortgagee. Neither Mortgagor nor its constituents shall obtain any mezzanine or other secondary financing. Any loans between members of Mortgagor and Mortgagor shall be subordinate in all respects to the repayment of the Loan. 2.8 No o Modifications; No Construction Without MortjZatZee's Prior Written Consent. Mortgagor shall obtain Mortgagee's written consent prior to making any modifications to the existing improvements on the Property, which consent shall be in Mortgagee's sole discretion. Furthermore, Mortgagor shall obtain Mortgagee's written consent prior to the commencement of any construction at the Property, which consent shall be in Mortgagee's sole discretion and may be conditioned upon Mortgagee's then applicable underwriting requirements for such construction. 2.9. Removal of Fixtures. Mortgagor shall not (except in the ordinary course of business) remove or permit to be removed from the Property any fixtures presently or in the future owned by Mortgagor as the term "fixtures" is defined by the law of the state where the Property is located (unless such fixtures have been replaced with similar fixtures of equal or greater utility and value). a 2.10. Maintenance and Repair; Alterations. (a) Mortgagor shall (i) abstain from and not permit the commission of waste in or about the Property; (ii) keep the Property, at Mortgagor's own cost and expense, in good and substantial repair, working order and condition; � (iii) make or cause to be made, as and when necessary, all repairs and replacements, whether orCU CD not insurance proceeds are available therefor; and (iv) not remove, demolish, materially alter, 1� discontinue the use of, permit to become deserted, or otherwise dispose of all or any part of the Property. All alterations, replacements, renewals or additions made pursuant hereto shall automatically become a part of the Property and shall be covered by the lien of this Mortgage. 0 (b) Mortgagee, and any persons authorized by Mortgagee, shall have the right, but not the obligation, to enter upon the Property at any reasonable time to inspect and photograph its condition and state of repair. In the event any such inspection reveals, in the sole discretion of Mortgagee, the necessity for any repair, alteration, replacement, clean-up or 7 Packet Pg. 2882 P.16.c Doc# 2205126 Bk# 2947 Pg# 2211 maintenance, Mortgagor shall, at the discretion of Mortgagee, either: (i) cause such work to be effected promptly; or (ii) promptly establish an interest bearing reserve fund with Mortgagee in an amount reasonably determined by Mortgagee for the purpose of effecting such work. 2.11. Compliance with Applicable Laws. Mortgagor agrees to observe, conform and comply, and to cause its tenants (or subtenants) to observe, conform and comply with all federal, state, county, municipal and other governmental or quasi-governmental laws, rules, regulations, a ordinances, codes, requirements, covenants, conditions, orders, licenses, permits, approvals and c0. restrictions, including without limitation, Environmental Laws (as defined below) and the Americans with Disabilities Act of 1990 (collectively, the "Legal Requirements"), now or hereafter affecting all or any part of the Property, its occupancy or the business or operations now or hereafter conducted thereon and the personalty contained therein, within such time as required by such Legal Requirements. Mortgagor represents and warrants that, to the best of Mortgagor's knowledge, the Property currently is in compliance with all Legal Requirements applicable to the Property. 2.12. Damage, Destruction and Condemnation. (a) If all or any part of the Property shall be damaged or destroyed, or if title to or the temporary use of the whole or any part of the Property shall be taken or condemned by a ° competent authority for any public or quasi-public use or purpose, there shall be no abatement or reduction in the amounts payable by Mortgagor under the Loan Documents and Mortgagor shall continue to be obligated to make such payments. (b) If all or any part of the Property is partially or totally damaged or destroyed, Mortgagor shall give prompt notice thereof to Mortgagee, and Mortgagee may make proof of loss if not made promptly by Mortgagor. Mortgagor hereby authorizes and directs any affected insurance company to make payment under such insurance, including return of unearned premiums, to Mortgagee instead of to Mortgagor and Mortgagee jointly, and Mortgagor appoints 0 Mortgagee as Mortgagor's attorney-in-fact to endorse any draft thereof, which appointment, being for security, is coupled with an interest and irrevocable. Mortgagee is hereby authorized and empowered by Mortgagor to settle, adjust or compromise, in consultation with Mortgagor, any claims for loss, damage or destruction to the Property. Mortgagor shall pay all costs of collection of insurance proceeds payable on account of such damage or destruction. Mortgagor shall have no claim against the insurance proceeds, or be entitled to any portion thereof, and all rights to the insurance proceeds are hereby assigned to Mortgagee as security for payment of the Liabilities. Mortgagee shall have the option, in its sole discretion, of paying or applying all or any part of the insurance proceeds to: (i) reduction of the Liabilities; (ii) restoration, replacement or repair of the Property in accordance with Mortgagee's standard construction loan c disbursement conditions and requirements; or(iii) Mortgagor. 0 (c) Promptly upon obtaining knowledge of the institution of any proceeding for the condemnation of all or any part of the Property, Mortgagor shall give notice to Mortgagee. Mortgagor shall, at its sole cost and expense, diligently prosecute any such proceeding and shall consult with Mortgagee, its attorneys and experts, and shall cooperate with it in the defense of any such proceeding. Mortgagee may participate in any such proceeding and Mortgagor shall from time to time deliver to Mortgagee all instruments requested by it to permit such 8 Packet Pg. 2883 P.16.c Doc# 2205126 Bk# 2947 P90 2212 participation. Mortgagor shall not, without Mortgagee's prior written consent, enter into any agreement (i) for the taking or conveyance in lieu thereof of all or any part of the Property, or (ii) to compromise, settle or adjust any such proceeding. All awards and proceeds of condemnation are hereby assigned to Mortgagee, and Mortgagor, upon request by Mortgagee, agrees to make, execute and deliver any additional assignments or documents necessary from time to time to enable Mortgagee to collect the same. Such awards and proceeds shall be paid or applied by Mortgagee, in its sole discretion, to: (i) reduction of the Liabilities; (ii) restoration, replacement 0 or repair of the Property in accordance with Mortgagee's standard construction loan 0. disbursement conditions and requirements; or(iii) Mortgagor. (d) Nothing herein shall relieve Mortgagor of its duty to repair, restore, rebuild or replace the Property following damage or destruction or partial condemnation if no or inadequate insurance proceeds or condemnation awards are available to defray the cost of repair, restoration, rebuilding or replacement. 2.13. Required Notices. Mortgagor shall notify Mortgagee within three (3) business days of: (a) receipt of any notice from any governmental or quasi-governmental authority relating to the structure, use or occupancy of the Property or alleging a violation of any Legal Requirement; (b) a substantial change in the occupancy or use of all or any part of the Property; (c) receipt of any notice from the holder of any lien or security interest in all or any part of the Property; (d) commencement of any litigation affecting or potentially affecting the financial ability of Mortgagor or the value of the Property; (e) a pending or threatened condemnation of all or any part of the Property; (f) a fire or other casualty causing damage to all or any part of the Property; (g) receipt of any notice with regard to any Release of Hazardous Substances (as such terms are defined below) or any other environmental matter affecting the Property or Mortgagor's interest therein; (h) receipt of any request for information, demand letter or notification of potential liability from any entity relating to potential responsibility for investigation or clean-up of Hazardous Substances on the Property or at any other site owned or operated by Mortgagor; (i) receipt of any notice from any tenant at the Property alleging a default, failure to perform or any right to terminate its lease or to set-off rents; or 0) receipt of any notice of the imposition of, or of threatened or actual execution on, any lien on or security interest in all or any part of the Property. 2.14. Books and Records; Inspection. Mortgagor shall keep and maintain (a) complete and accurate books and records, in accordance with generally accepted accounting principles consistently applied, reflecting all items of income and expense in connection with the operation of the Property, and (b) copies of all written contracts, leases and other agreementsCU CD affecting the Property. Mortgagee or its designated representatives shall, upon reasonable prior 1� written notice to Mortgagor, have (a) the right of entry and free access to the Property during business hours (which may be without notice in any case of emergency) to inspect the Property, and (b) the right to examine and audit all books, contracts and records of Mortgagor relating to 0 the Property. 2.45. Right to Reappraise. Mortgagee shall have the right to conduct or have conducted by an independent appraiser acceptable to Mortgagee updated appraisals of the Property in form and substance satisfactory to Mortgagee at the sole cost and expense of 9 Packet Pg. 2884 P.16.c Doc# 2205126 Bk# 2947 Pg# 2213 Mortgagor, except that Mortgagor shall not be required to pay the cost of an appraisal more frequently than once every calendar year unless (x) an Event of Default exists, or (y) the appraisal was required by a governmental or other regulatory agency. �s 2.16 Additional Warranties of Mortgagor. (a) Mortgagor has good and marketable title to the Property, subject only to 0 those matters expressly set forth in the title insurance policy insuring the lien of this 0. Mortgage ("Permitted Exceptions"), and has full power and lawful authority to grant, bargain, sell, convey, assign, transfer and mortgage its interest in the Property in the manner and form done or intended in this Mortgage. Mortgagor will preserve its interest in and title to the Property and will forever warrant and defend to Mortgagee Mortgagor's interest in the Property against any and all claims whatsoever and the validity and priority of the lien and security interest created by this Mortgage against the claims of all persons and parties whomsoever, subject to the Permitted Exceptions. The foregoing warranty of title shall survive the foreclosure of this Mortgage or transfer of the Property in connection with foreclosure proceedings and shall inure to the benefit of and be enforceable by Mortgagee in the event Mortgagee acquires title to the Property pursuant to any foreclosure; (b) No bankruptcy or insolvency proceedings are pending or contemplated by Mortgagor or, to Mortgagor's knowledge, against Mortgagor or by or against any endorser, cosigner or guarantor of the Note; (c) All reports, certificates, affidavits, statements and other data furnished by Mortgagor to Mortgagee in connection with the Loan are true and correct in all material respects and do not omit to state any fact or circumstance necessary to make the statements contained therein not misleading; (d) The execution, delivery and performance of this Mortgage and all other Loan Documents have been duly authorized by all necessary action to be, and are, binding and 0 enforceable against Mortgagor in accordance with the respective terms and do not contravene, 2 result in a breach of or constitute (upon the giving of notice or the passage of time or both) a default under the organizational documents of Mortgagor or any contract or agreement of any nature to which Mortgagor is a party or by which Mortgagor or any of its property may be bound and do not violate or contravene any law, order, decree, rule or regulation to which Mortgagor is subject; C (e) The Property and its intended use by Mortgagor comply with all applicable restrictive covenants, zoning ordinances, subdivision and building codes, flood disaster laws, applicable health and environmental laws and regulations and all other ordinances, orders or requirements issued by any state, federal or municipal authorities having or claiming jurisdiction over the Property. The Property constitutes a separate tax parcel or parcels for purposes of ad valorem taxation. The Property does not require any rights over, or restrictions against, other property in order to comply with any of the aforesaid governmental ordinances, orders or requirements; to Packet Pg. 2885 DocH 2205126 P.16.c Sku 2947 Pg# 2214 (f) All curb cuts, driveways and traffic signals shown on the survey delivered to Mortgagee prior to the execution and delivery of this Mortgage are existing and have been fully approved by the appropriate governmental authority; (g) There are no judicial, administrative, mediation or arbitration actions, suits or proceedings pending or threatened against or affecting Mortgagor, or its partners or members, or the Property; 0. (h) The Property is free from delinquent water charges, sewer rents, taxes and assessments; (i) As of the date of this Mortgage, no part of the Property has been taken in condemnation, eminent domain or like proceeding nor is any such proceeding pending or, to Mortgagor's knowledge, threatened or contemplated; and (j) There are no security agreements or financing statements affecting any of the Property other than the security agreements and financing statements created in favor of Mortgagee. 2.17 Defense of Title. If title to, or the interest of Mortgagee in, the Property becomes the subject, directly or indirectly, of any action at law or in equity, or is attached directly or indirectly, or endangered, clouded or adversely affected in any manner, Mortgagor, at Mortgagor's expense, shall take all necessary steps to defend the title or interest, including the employment of counsel approved by Mortgagee. Should Mortgagee determine that Mortgagor is not adequately performing its obligations under this Section, Mortgagee may, without limiting or waiving Mortgagee's other rights, take such action as Mortgagee shall deem necessary or proper. Any and all costs and expenses incurred by Mortgagee, together with interest thereon at the Default Rate from the date incurred by Mortgagee until actually paid by Mortgagor, shall be immediately paid by Mortgagor on demand and shall be secured by this Mortgage and by all of the other Loan Documents. 2.18 Performance of Obligations. Mortgagor shall pay when due the principal of and the interest on the Liabilities. Mortgagor shall also pay all charges, fees and other sums required to be paid by Mortgagor as provided in the Loan Documents, and shall observe, perform and discharge all obligations, covenants and agreements set forth in the Loan Documents in accordance with their terms. Mortgagor shall promptly and strictly perform and comply with all covenants, conditions, obligations and prohibitions required of Mortgagor in connection with any other document or instrument affecting title to the Property, or any part thereof, regardless of whether such document or instrument is superior or subordinate to this Mortgage. 2.19 Construction Liens. Mortgagor shall pay when due all claims and demands of mechanics, material men, laborers and others for any work or services performed or materials delivered for the Property. Mortgagor shall have the right to contest in good faith any such claim or demand, so long as it does so diligently, by appropriate proceedings and without prejudice to Mortgagee and provided that neither the Property nor any interest therein would be in any danger of sale, loss or forfeiture as a result of such proceeding or contest. In the event Mortgagor shall contest any such claim or demand, Mortgagor shall promptly notify Mortgagee of such contest 11 Packet Pg. 2886 P.16.c Doc# 2205126 Bk# 2947 P90 2215 and thereafter shall, upon Mortgagee's request, promptly provide a bond, cash deposit or other security satisfactory to Mortgagee to protect Mortgagee's interest and security should the contest be unsuccessful. If Mortgagor shall fail within twenty (20) days following the notice of such claim or demand to discharge or provide security against any such claim or demand as aforesaid, Mortgagee may do so and any and all expenses incurred by Mortgagee, together with interest thereon at the Default Rate from the date incurred by Mortgagee until actually paid by Mortgagor, shall be immediately paid by Mortgagor on demand and shall be secured by this 0 Mortgage and by all of the other Loan Documents securing all or any part of the Liabilities. c0. Mortgagee has not consented, and will not consent: (i) to the granting of any security interest by Mortgagor to any party other than Mortgagee in any goods constituting part of the Property which are or are to become fixtures which would have the effect of giving such security interest priority over the security interest of Mortgagee in said fixtures under Section 679.313 of Florida Statutes, or otherwise, or (ii) to any contract, or to any work, or to the furnishing of any materials which might be deemed to create a lien or liens superior to the lien of this Mortgage. 2.20 Payment of Utilities, Assessments, Charlies, Etc. Mortgagor shall pay when due all utility charges incurred by Mortgagor or which may become a charge or lien against any portion of the Property for gas, electricity, water and sewer services furnished to the Property and all other assessments or charges of a similar nature, or assessments payable pursuant to any restrictive covenants, whether public or private, affecting the Property or any portion thereof, ° whether or not such assessments or charges are or may become liens thereon. 2.21 Access Privileges and Inspections. Mortgagee and its agents, representatives and employees shall, subject to the rights of tenants, have full and flee access to the Property and any other location where books and records concerning the Property are kept at all reasonable times for the purposes of inspecting the Property and of examining, copying and making extracts from the books and records of Mortgagor relating to the Property, provided that Mortgagee shall provide reasonable notice of such inspection, unless Mortgagee deems, in its reasonable discretion, such inspection is of an emergency nature, in which event Mortgagor shall provide Mortgagee with immediate access to the Property. Mortgagor shall lend assistance to all such agents, representatives and employees of Mortgagee in connection with the foregoing. 2.22 Waste: Alteration of Improvements. Mortgagor shall not commit, suffer or permit any intentional physical waste on the Property nor take any actions that might invalidate any insurance carried on the Property. Mortgagor shall maintain the Property in good condition and repair, regularly landscape the Real Estate, and maintain a fence around the perimeter of the Real Estate. No part of the Improvements may be removed, demolished or materially altered, CD without the prior written consent of Mortgagee, which consent shall not be unreasonably withheld or delayed. Except as expressly set forth in the Loan Agreement, without the prior written consent of Mortgagee, Mortgagor shall not commence or allow any other person or entity .. 4i to commence construction of any improvements on the Real Estate other than improvements 0 which constitute maintenance or repair of the Property. 2.23 Zoning. Without Mortgagee's prior consent in its reasonable discretion, Mortgagor shall not seek, make, suffer, consent to or acquiesce in any change in the zoning or conditions of use of the Property. Mortgagor shall comply with and make all payments required under any covenants, conditions or restrictions affecting the Property. Mortgagor shall comply 12 Packet Pg. 2887 P.16.c Doc# 2205126 Bk# 2947 Pg# 2216 with all existing and future requirements of all governmental authorities having jurisdiction over the Property. Mortgagor shall keep all licenses, permits, franchises and other approvals necessary for the operation of the Property in full force and effect. Mortgagor shall operate the Property as vacant land. If, under applicable zoning provisions, the use of all or any part of the Property is or becomes a nonconforming use, Mortgagor shall not cause or permit such use to be discontinued or abandoned without the prior consent of Mortgagee. Further, without Mortgagee's prior consent, Mortgagor shall not file or subject any part of the Property to any a declaration of condominium or co-operative or convert any part of the Property to a 0. condominium, co-operative or other form of multiple ownership and governance. Additionally, without Mortgagee's prior written consent, Mortgagor shall not encumber the Property with any covenants, conditions, restrictions, easements, declarations or similar documents of any kind. a 2.24 Payment of Costs; Reimbursement to Mortgagee. Mortgagor shall pay all costs and expenses incurred in connection with the closing of the Loan or otherwise attributable or chargeable to Mortgagor as the owner of the Property, including appraisal fees,recording fees, documentary stamp, mortgage or intangible taxes, brokerage fees and commissions, title policy premiums and title search fees, uniform commercial code/tax lien litigation search fees, escrow fees and Mortgagee's attorneys' fees. If Mortgagor fails to make any such payment, which failure is not cured within any applicable grace or cure period, Mortgagee may pay the same and such payment shall become part of the Liabilities. Mortgagor shall promptly notify Mortgagee a in writing of any litigation or threatened litigation affecting the Property, or any other demand or claim which, if enforced, could impair or threaten to impair Mortgagee's security under this Mortgage. Without limiting or waiving any other rights and remedies of Mortgagee under this Mortgage, if Mortgagor fails to perform any of its agreements in the Loan Documents and such failure is not cured within any applicable grace or cure period, or if any action or proceeding of any kind (including any bankruptcy, insolvency, arrangement, reorganization or other debtor relief proceeding) is commenced which might affect Mortgagee's interest in the Property or Mortgagee's right to enforce its security, then Mortgagee may, at its option, with or without notice to Mortgagor, make any appearances, disburse any sums and take any actions as may be 0 necessary or desirable to protect or enforce the security of this Mortgage or to remedy the failure of Mortgagor to perform its covenants and agreements (without, however, waiving any default of Mortgagor). The necessity for any such actions and any Mortgagee payments shall be determined by Mortgagee in its discretion. Mortgagee is empowered to enter and to authorize others to enter upon the Property or any part thereof for the purpose of performing or observing any such defaulted term, covenant or condition without thereby becoming liable to Mortgagor or any person in possession holding under Mortgagor. Mortgagor acknowledges and agrees that the remedies in this Section shall be exercisable by Mortgagee, and any and all payments made or costs or expenses incurred by Mortgagee in connection therewith shall be secured by this Mortgage and the other Loan Documents as part of the Liabilities. Such payments shall be, without demand, immediately repaid by Mortgagor with interest at the Default Rate from the date incurred by Mortgagee until reimbursed by Mortgagor, notwithstanding the fact that such 0 remedies were exercised and such payments made and costs incurred by Mortgagee after the filing by Mortgagor of a voluntary case or the filing against Mortgagor of an involuntary case pursuant to or within the meaning of the Bankruptcy Reform Act of 1978, as amended, Title 11 U.S.C., or after any similar action pursuant to any other debtor relief law (whether statutory, common law, case law or otherwise) of any jurisdiction whatsoever, now or subsequently in effect, which may be or become applicable to Mortgagor, Mortgagee, any guarantor or 13 Packet Pg. 2888 P.16.c Doc# 2205126 Bk# 2947 P9N 2217 indemnitor, the Liabilities or any of the Loan Documents. Mortgagor shall indemnify and hold Mortgagee harmless from and against all loss, cost and expenses with respect to any Event of Default, any liens, judgments, construction liens, charges and encumbrances filed against the Property, and from any claims and demands for damages or injury, including claims for property damage, personal injury or wrongful death, arising out of or in connection with any accident or fire or other casualty on the Real Estate or the Improvements or any nuisance made or suffered thereon, including, attorneys' fees. This indemnity shall survive payment in full of the a Liabilities. This Section shall not be construed to require Mortgagee to incur any expenses, c0. make any appearances or take any actions. 2.25 Mortaaaor's Waivers. To the full extent permitted by law, Mortgagor agrees that: (a) Mortgagor shall not at any time insist upon, plead, claim or take the benefit or advantage of any law now or subsequently in force providing for any appraisement, valuation, stay, moratorium, extension, or reinstatement of the Liabilities prior to any sale of the Property pursuant to this Mortgage or prior to the entering of any decree,judgment or order of any court of competent jurisdiction, or any right under any statute to redeem all or any part of the Property so sold. c (b) Mortgagor, for Mortgagor and Mortgagor's successors and assigns, and for any and all persons ever claiming any interest in the Property, knowingly, intentionally and voluntarily with and upon the advice of competent counsel, waives, releases, relinquishes and forever forgoes all rights to: (i) valuation, appraisement, stay of execution, reinstatement and notice of election or intention to mature or declare due the Liabilities (except such notices specifically provided for in this Mortgage); (ii) marshaling of the assets of Mortgagor, including the Property, to a sale in the inverse order of alienation, or to direct the order in which any of the Property shall be sold in the event of foreclosure of the liens and security interests created and agrees that any court having jurisdiction to foreclose such liens and security interests may order a the Property sold as an entirety; (iii) redemption provided under applicable law; (iv) Mortgagor shall not have or assert any right under any statute or rule of law pertaining to the exemption of homestead or other exemption under any federal, state or local law now or subsequently in effect, the administration of estates of decedents or other matters whatever to defeat, reduce or affect the right of Mortgagee under this Mortgage to a sale of the Property, for the collection of the Liabilities without any prior or different resort for collection, or the right of Mortgagee under the terms of this Mortgage to payment of the Liabilities out of the proceeds of sale of the Property in preference to every other claimant whatever and (v) all present and future statutes ofCD limitations as a defense to any action to enforce the provisions of this Mortgage or to collect any `U of the Liabilities the fullest extent permitted by law. (c) Mortgagor agrees that upon the commencement of a voluntary or a involuntary bankruptcy proceeding by or against Mortgagor, Mortgagor shall not seek a supplemental stay or otherwise pursuant to 11 U.S.C. 105 or any other provision of the Bankruptcy Reform Act of 1978, as amended, or any other debtor relief law (whether statutory, common law, case law, or otherwise) of any jurisdiction whatsoever, now or subsequently in effect, which may be or become applicable, to stay, interdict, condition, reduce or inhibit the ability of Mortgagee to enforce any rights of Mortgagee against any guarantor or indemnitor of 14 Packet Pg. 2889 Dccn 2205126 P.16.c Bk# 2947 Pg# 2218 the secured obligations or any other party liable with respect thereto by virtue of any indemnity, guaranty or otherwise. 2.26 Prohibited Person Compliance. Mortgagor warrants, represents and covenants that neither Mortgagor, any Guarantor of the Loan, nor any of their respective affiliated entities, or any direct or indirect owner or member of any of the foregoing is or will be a person (i) that is listed in the Annex to or is otherwise subject to the provisions of Executive Order 13224 issued on September 24, 2001 ("EO13224"), (ii) whose name appears on the United States Treasury 0. Department's Office of Foreign Assets Control ("OFAC") most current list of "Specifically Designated Nationals and Blocked Persons," (which list may be published from time to time in various mediums including, but not limited to, the OFAC website, http://www.treas.gov/ofac/tllsdn.pdf), (iii) who commits, threatens to commit or supports "terrorism", as that term is defined in EO 13224, or (iv) who is otherwise affiliated with any person listed above. (Any and all Persons described in subparts [i] — [iv] above are herein referred to as a "Prohibited Person".) Mortgagor covenants and agrees that neither Mortgagor, any Guarantor of the Loan, nor any of their respective affiliated entities, or any direct or indirect owner or member of any of the foregoing will (a) conduct any business, or engage in any transaction or dealing, with any Prohibited Person, including, but not limited to the making or receiving of any contribution of funds, goods, or services, to or for the benefit of a Prohibited Person, or (b) engage in or conspire to engage in any transaction that evades or avoids, or has the ° purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in E013224. Mortgagor further covenants and agrees to deliver (from time to time) to Mortgagee any such certification or other evidence as may be requested by Mortgagee in its sole and absolute discretion, confirming that (a) neither Mortgagor (nor any direct or indirect member of Mortgagor) nor any guarantor is a Prohibited Person and (b) neither Mortgagor (nor any direct nor indirect member of Mortgagor)nor any guarantor has engaged in any business, transaction or dealing with a Prohibited Person, including, but not limited to, the making or receiving of any contributions of funds, goods or services, to or for the benefit of a Prohibited Person. 2.27 Indemnification: Subrogation. (a) Mortgagor shall indemnify, defend and hold Mortgagee harmless against: (i) any and all claims for brokerage, leasing, Mortgagees or similar fees which may be made relating to the Property or the Liabilities, and (ii) any and all liability, obligations, losses, damages, penalties, claims, actions, suits, costs and expenses (including Mortgagee's attorneys' fees) of whatever kind or nature which may be asserted against, imposed on or incurred by Mortgagee in connection with the Liabilities, the Loan Documents, the Property, or any part thereof, or the exercise by Mortgagee of any rights or remedies under the Loan Documents. 0 (b) If Mortgagee is made a party defendant to any litigation or any claim is .. threatened or brought against Mortgagee concerning the Liabilities, the Loan Documents, the Property, or any part thereof, or any interest therein, or the construction, maintenance, operation or occupancy or use thereof, Mortgagor shall indemnify, defend and hold Mortgagee harmless from and against all liability by reason of said litigation or claims, including attorneys' fees and expenses incurred by Mortgagee in any such litigation or claim, whether or not any such litigation or claim is prosecuted to judgment. If Mortgagee commences an action against Mortgagor to enforce any of the terms of the Loan Documents or to prosecute any breach by 15 Packet Pg. 2890 P.16.c Docn 2205126 UP 2947 Pgq 2219 Mortgagor of any of the terms of the Loan Documents or to recover the Liabilities, Mortgagor shall pay to Mortgagee its reasonable attorneys' fees, whether or not such action is prosecuted to judgment. If Mortgagor breaches any term of the Loan Documents, Mortgagee may engage the services of an attorney or attorneys to protect its rights; Mortgagor shall pay Mortgagee's attorneys' fees and expenses, whether or not an action is actually commenced against Mortgagor by reason of such breach. All references to "attorneys" in this Subsection and elsewhere in this Mortgage shall include without limitation any attorney or law firm engaged by Mortgagee and Mortgagee's in-house counsel, and all references to "fees and expenses" in this Subsection and 0. elsewhere in this Mortgage shall include without limitation any fees of such attorney or law firm and any allocation charges and allocation costs of Mortgagee's in-house counsel. (c) A waiver of subrogation shall be obtained by Mortgagor from its insurance carrier and, consequently, Mortgagor waives any and all right to claim or recover against Mortgagee, its officers, employees, agents and representatives, for loss of or damage to Mortgagor, the Property, Mortgagor's property or the property of others under Mortgagor's control from any cause insured against or required to be insured against by the provisions of the Loan Documents. c 2.28 Ground Lease. Mortgagor shall (a) pay all rents, additional rents and other sums required to be paid by Mortgagor, as tenant under and pursuant to the provisions of that certain Right of Way Lease Agreement and Consent to Assignment of Lease by and between Monroe County, as lessor, Mortgagor, as lessee, and Florida Keys Quality Foods, Inc., as sublessee, dated as of October 18, 2017, recorded in Official Records Book 2677, at Page 1916 of the Public Records of Monroe County, Florida (as amended from time to time, the "Ground Lease"; the lessor, "Lessor") as and when such rent or other charge is payable, (b) diligently perform and observe all of the terms, covenants and conditions of the Ground Lease on the part of Mortgagor, as tenant thereunder, to be performed and observed prior to the expiration of any applicable grace period therein provided, and (c) promptly notify Mortgagee of the giving of any notice by the Lessor to Mortgagor of any default by Mortgagor in the performance or observance of any of the terms, covenants or conditions of the Ground Lease on the part of Mortgagor, as tenant thereunder, to be performed or observed and deliver to Mortgagee a true copy of each such notice. Mortgagor shall not, without the prior written consent of Mortgagee, surrender the leasehold estate created by the Ground Lease or terminate or cancel the Ground Lease or without the prior written consent of Mortgagee, modify, change, supplement, alter or amend the Ground Lease, in any material respect (except that Mortgagor may extend the term of the Ground Lease without the prior written consent of Mortgagee), either orally or in writing, and Mortgagor hereby assigns to Mortgagee, as further security for the payment of the Liabilities and for the performance and observance of the terms, covenants and conditions of this Mortgage and the other Loan Documents, all of the rights, privileges and prerogatives of Mortgagor, which rights, privileges and prerogatives may be exercised by Mortgagee upon an Event of Default, as tenant under the Ground Lease, to surrender the leasehold estate created by the Ground Lease or to terminate, cancel, modify, change, supplement, alter or amend the Ground Lease, and any such surrender of the leasehold estate created by the Ground Lease or termination, cancellation, modification, change, supplement, alteration or amendment of the Ground Lease without the prior written consent of Mortgagee shall be null and void and of no force and effect. 16 Packet Pg. 2891 DocU 2205126 P.16.c Bk# 2947 P9N 2220 2.29 Representations and Warranties With Respect to the Ground Lease. Mortgagor hereby represents and warrants to Mortgagee the following with respect to the Ground Lease: (a) As of the date hereof, the Ground Lease is in full force and effect and no default has occurred under the Ground Lease and there is no existing condition which, but for the passage of time or the giving of notice, could result in a default under the terms of the Ground Lease. 0. (b) Under the terms of the Ground Lease and the Loan Documents, taken � together, any related insurance and condemnation proceeds that are paid or awarded to Mortgagor with respect to the leasehold interest will be applied to the repair or restoration of all or part of the portion of the Property consisting of Mortgagor's leasehold estate granted hereunder. 2.21. Estoppel Certificates. Within twenty (20) days after receipt of written demand by Mortgagee, but in no event more than two (2) times in any twelve (12) month period, Mortgagor shall use reasonable efforts to obtain from Lessor under the Ground Lease and furnish to Mortgagee the estoppel certificate of Lessor stating the date through which rent has been paid and whether or not there are any defaults thereunder and specifying the nature of such claimed defaults, if any. 3. SECURITY AGREEMENT. It Security Agreement and Fixture Financing Statement. This Mortgage constitutes a security agreement under the Code and shall be deemed to constitute a fixture financing statement. Mortgagor hereby grants to Mortgagee a security interest in all of Mortgagor's right, title and interest in the personal and other property (other than real property) included in the Property, and all replacements of, substitutions for, and additions to, such property, and the proceeds thereof. Mortgagor shall, at Mortgagor's own expense, execute, deliver, file and refile any financing or continuation statements or other security agreements Mortgagee may require from time to time to perfect, confirm or maintain the lien of this Mortgage with respect to such property. Without limiting the foregoing, Mortgagor hereby irrevocably appoints Mortgagee attorney-in-fact for Mortgagor to execute, deliver and file such instruments for or on behalf of Mortgagor at Mortgagor's expense, which appointment, being for security, is coupled with an interest and shall be irrevocable. Furthermore, this Mortgage creates a security interest in, and Mortgagor grants to Mortgagee a security interest in (a) all sums on deposit with Mortgagee pursuant to the provisions of any Section of this Agreement, (b) all fixtures, chattels, accounts, equipment, inventory, contract rights, general intangibles and other personal property included within the Property, (c) Mortgagor's leasehold interest in any of the .. foregoing property leased by Mortgagor and (d) all renewals, replacements of any of the items described in (a), (b) and (c), or articles in substitution or in addition or the proceeds thereof. To the extent permitted by law, all of the foregoing property is to be deemed and held to be a part of and affixed to the Property. Notwithstanding the foregoing, no leasing or installment sales or other financing or title retention agreement in connection therewith shall be permitted without the prior written approval of Mortgagee. Mortgagor shall, from time to time upon the request of Mortgagee, supply Mortgagee with a current inventory of all of the property in which Mortgagee 17 Packet Pg. 2892 P.16.c Doen 2205126 Bk# 2947 P9H 2221 is granted a security interest under this Section, in such detail as Mortgagee may require. Mortgagor shall promptly replace all of the Collateral subject to the lien or security interest of this Mortgage when worn or obsolete with Collateral comparable to the worn out or obsolete Collateral when new and will not, without the prior written consent of Mortgagee, remove from the Property any of the Collateral subject to the lien or security interest of this Mortgage except such as is replaced by an article of equal suitability and value as above provided, owned by Mortgagor free and clear of any lien or security interest except that created by this Mortgage and the other Loan Documents, the Permitted Exceptions, and except as otherwise expressly 0. permitted by the terms of this Mortgage. All of the Collateral shall be kept at the location of the 0 Real Estate except as otherwise required by the terms of the Loan Documents. Mortgagor shall not use any of the Collateral in violation of any applicable statute, ordinance or insurance policy. a 3.2 UCC. This Mortgage constitutes a security agreement between Mortgagor and Mortgagee with respect to the Collateral. In addition to all other rights and remedies of Mortgagee under this Mortgage, Mortgagee shall have all of the rights and remedies of a secured party under the Uniform Commercial Code applicable to the Property ("Applicable UCC"). Mortgagor agrees to execute and deliver on demand and irrevocably constitutes and appoints Mortgagee the attorney-in-fact of Mortgagor to execute and deliver and, if appropriate, to file with the appropriate filing officer or office such security agreements, financing statements, continuation statements or other instruments as Mortgagee may request or require in order to a impose, perfect or continue the perfection of the lien or security interest created. Except with respect to Rents and profits to the extent specifically provided in this Mortgage to the contrary, Mortgagee shall have the right of possession of all cash, securities, instruments, negotiable instruments, documents, certificates and any other evidences of cash or other property or evidences of rights to cash rather than property, which are now or subsequently a part of the Property. Mortgagor shall promptly deliver the same to Mortgagee, endorsed to Mortgagee, without further notice from Mortgagee. Mortgagor agrees to furnish Mortgagee with notice of any change in the name, identity, corporate structure, residence, or principal place of business or mailing address of Mortgagor within 10 days of the effective date of any such change. Upon the E occurrence of any Event of Default, Mortgagee shall have the rights and remedies as prescribed in this Mortgage, or as prescribed by general law, or as prescribed by the Applicable UCC, all at Mortgagee's election. Without implying any limitation upon the foregoing, Mortgagee may, at its option, pursuant to Section 679.501(4) of Florida Statutes, proceed against the Collateral in accordance with the provisions of the Applicable UCC or Mortgagee may proceed as to both the real and personal property comprising the Property in accordance with this Mortgage, or as otherwise provided at law or in equity. Any disposition of the Collateral may be conducted by an employee or agent of Mortgagee. 4. ASSIGNMENT OF LEASES. 4.1. Mortgagor hereby absolutely, presently and unconditionally conveys, transfers and assigns to Mortgagee all of Mortgagor's right, title and interest, now existing or hereafter arising, in and to the Leases and Rents. Notwithstanding that this assignment is effective immediately, so long as no Event of Default exists, Mortgagor shall have the privilege under a revocable license granted hereby to operate and manage the Property and to collect, as they become due, but not prior to accrual, the Rents. Mortgagor shall receive and hold such Rents in trust as a fund to be applied, and Mortgagor hereby covenants and agrees that such Rents shall be 18 Packet Pg. 2893 DoeN 2205126 P.16.c Bkp 2947 P9U 2222 so applied, first to the operation, maintenance and repair of the Property and the payment of interest, principal and other sums becoming due under the Liabilities, before retaining and/or disbursing any part of the Rents for any other purpose. The license herein granted to Mortgagor shall automatically, without notice or any other action by Mortgagee, terminate upon the occurrence of an Event of Default, and all Rents subsequently collected or received by Mortgagor shall be held in trust by Mortgagor for the sole and exclusive benefit of Mortgagee. Nothing contained in this Section 4.1, and no collection by Mortgagee of Rents, shall be 0 construed as imposing on Mortgagee any of the obligations of the lessor under the Leases. 0. 4.2. Mortgagor shall timely perform all of its obligations under the Leases. Mortgagor represents and warrants that: (a) Mortgagor has title to and full right to assign presently, absolutely and unconditionally the Leases and Rents; (b) no other assignment of any interest in any of the Leases or Rents has been made by Mortgagor; (c) there are no leases or agreements to lease all or any portion of the Property now in effect except the Leases, true and complete copies of which have been furnished to Mortgagee, and no written or oral modifications have been made thereto; (d) there is no existing default by Mortgagor or by any tenant under any of the Leases, nor has any event occurred which due to the passage of time, the giving or failure to give notice, or both, would constitute a default under any of the Leases and no tenant has any defenses, set-offs or counterclaims against Mortgagor; (e) the Leases are in full force and effect; and (f) Mortgagor has not accepted Rent under any Lease more than thirty (30) days in advance of its accrual, and payment thereof has not otherwise been forgiven, discounted or compromised. 4.3. Mortgagor shall not, without the prior written consent of Mortgagee: (a) enter into any lease at the Property; (b) amend or modify, or consent any assignment of or subletting under, any Lease at the Property or the Ground Lease; (c) terminate or accept a surrender of any Lease or the Ground Lease; or (d) collect or accept rent from any tenant of the Property for a period of more than one month in advance. Any acts that require Mortgagee's consent under this Section 4.3, if done without the prior written consent of Mortgagee in each instance, shall be null and void. E 5. DECLARATION OF NO OFFSET. Mortgagor represents to Mortgagee that Mortgagor has no knowledge of any offsets, counterclaims or defenses to the Liabilities either at law or in equity. Mortgagor shall, within three (3) days upon written request delivered in person or within seven (7) days upon request by mail, furnish to Mortgagee or Mortgagee's designee a written statement in form satisfactory to Mortgagee stating the amount due under the Liabilities and whether there are offsets or defenses against the same, and if so, the nature and extent thereof. 6. ENVIRONMENTAL MATTERS. 4j C 6.1. Definitions. As used herein, "Environmental Laws" shall mean all existing or 0 future federal, state and local statutes, ordinances, regulations, rules, executive orders, standards and requirements, including the requirements imposed by common law, concerning or relating to industrial hygiene and the protection of health and the environment including but not limited to: (a) those relating to the generation, manufacture, storage, transportation, disposal, release, emission or discharge of Hazardous Substances (as hereinafter defined); (b) those in connection 19 Packet Pg. 2894 DocN 2205126 P.16.c Bk# 2947 Pgp 2223 with the construction, fuel supply, power generation and transmission, waste disposal or any other operations or processes relating to the Property; and (e) those relating to the atmosphere, soil, surface and ground water, wetlands, stream sediments and vegetation on, under, in or about the Property. Any terms mentioned herein which are defined in any Environmental Law shall have the meanings ascribed to such terms in said laws; provided, however, that if any of such laws are amended so as to broaden any term defined therein, such broader meaning shall apply C subsequent to the effective date of such amendment. 0 0. 6.2. Representations, Warranties and Covenants. Mortgagor represents, warrants, covenants and agrees as follows: (a) Neither Mortgagor nor the Property or any occupant thereof is in violation of or subject to any existing, pending or threatened investigation or inquiry by any governmental authority pertaining to any Environmental Law. Mortgagor shall not cause or permit the Property to be in violation of, or do anything which would subject the Property to any remedial obligations under, any Environmental Law, and shall promptly notify Mortgagee in writing of any existing, pending or threatened investigation or inquiry by any governmental authority in connection with any Environmental Law. In addition, Mortgagor shall provide Mortgagee with copies of any and all material written communications with any governmental authority in connection with any Environmental Law, concurrently with Mortgagor's giving or receiving of same. (b) Mortgagor has taken all steps reasonably necessary to determine and has determined that there has been no release, spill, discharge, leak, disposal or emission (individually a "Release" and collectively, "Releases") of any hazardous material, hazardous substance or hazardous waste, including gasoline, petroleum products, explosives, toxic substances, solid wastes and radioactive materials (collectively, "Hazardous Substances") at, upon, under or within the Property. The use which Mortgagor or any other occupant of the C Property makes or intends to make of the Property will not result in Release of any Hazardous E Substances on or to the Property. During the term of this Mortgage, Mortgagor shall take all steps necessary to determine whether there has been a Release of any Hazardous Substances on or to the Property and if Mortgagor finds a Release has occurred, Mortgagor shall remove or remediate the same promptly upon discovery at its sole cost and expense. (c) The Property has never been used by the present or previous owners and/or operators nor will be used in the future to refine, produce, store, handle, transfer, process, transport, generate,manufacture,heat, treat, recycle or dispose of Hazardous Substances. (d) The Property: (i) is being and has been operated in compliance with all Environmental Laws, and all permits required thereunder have been obtained and complied with in all respects; and (ii) does not have any Hazardous Substances present excepting small 0 quantities of petroleum and chemical products, in proper storage containers, that are necessary for the construction or operation of the commercial business of Mortgagor and its tenants (or subtenants), and the usual waste products therefrom ("Permitted Substances"). 20 Packet Pg. 2895 Doc# 2205126 P.16.c Bk# 2947 Pg# 2224 (e) Mortgagor will and will cause its tenants or subtenants to operate the Property in compliance with all Environmental Laws and, other than Permitted Substances, will not place or permit to be placed any Hazardous Substances on the Property. (f) No lien has been attached to or threatened to be imposed upon the Property, �s and there is no basis for the imposition of any such lien based on any governmental action under Environmental Laws. Neither Mortgagor nor any other person is or will be involved in 0 operations at the Property which could lead to the imposition of environmental liability on c0. Mortgagor, or on any subsequent or former owner of the Property, or the creation of an environmental lien on the Property. In the event that any such lien is filed, Mortgagor shall, within sixty (60) days from the date that the Mortgagor is given notice of such lien (or within such shorter period of time as is appropriate in the event that steps have commenced to have the Property sold), either: (i) pay the claim and remove the lien from the Property; or (ii) furnish a cash deposit, bond or other security satisfactory in form and substance to Mortgagee in an amount sufficient to discharge the claim out of which the lien arises. 6.3. Rij4ht to Inspect and Cure. Mortgagee shall have the right to conduct or have conducted by its agents or contractors such environmental inspections, audits and tests as Mortgagee shall deem necessary or advisable from time to time at the sole cost and expense of Mortgagor. The cost of such inspections, audits and tests shall be added to the Liabilities and shall be secured by this Mortgage. Mortgagor shall, and shall cause each tenant of the Property to, cooperate with such inspection efforts; such cooperation shall include, without limitation, supplying all information requested concerning the operations conducted and Hazardous Substances located at the Property. In the event that Mortgagor fails to comply with any Environmental Law, Mortgagee may, in addition to any of its other remedies under this Mortgage, cause the Property to be in compliance with such laws and the cost of such compliance shall be added to the sums secured by this Mortgage in accordance with the provisions of Section 1 hereof. 6.4 Environmental Indemnification. (a) Mortgagor agrees, jointly and severally, to unconditionally and absolutely indemnify and hold Mortgagee, its officers, directors, employees, agents and attorneys harmless from and against any loss, cost, liability, damage, claim or expense, including reasonable attorneys' fees, suffered or incurred by Mortgagee in connection with the Property at any time, whether before, during or after enforcement of Mortgagee's rights and remedies upon default under the Loan Documents, under or on account of, or as a result of(i) any violation of applicable Environmental Laws, (ii) any presence, release, or threat of release of Hazardous Substances at, upon, under or within the Property, (iii) the presence of asbestos or asbestos-containing materials, PCB's, radon gas, urea formaldehyde foam insulation or lead (whether in paint, water, soil, or plaster) at the Property, (iv) any breach c of the representations and warranties made in this Section 6, (v) the failure of Mortgagor to duly perform the obligations or actions set forth in this Section 6 with respect to: (A) the imposition 0 by any governmental authority of any lien upon the Property, (B) clean-up costs, (C) liability for personal injury or property damage or damage to the environment, (D) any diminution in the value of the Property and (E) fines, penalties and punitive damages, or (vi) otherwise pursuant to the terms of that certain ADA and Environmental Indemnity Agreement, dated of even date herewith. 21 Packet Pg. 2896 P.16.c Doc# 2205126 Bk# 2947 Pg# 2225 (b) Mortgagor further agrees that Mortgagee shall not assume any liability or obligation for loss, damage, fines, penalties, claims or duty to clean up or dispose of wastes or materials on or relating to the Property as a result of any conveyance of title to the Property to the Mortgagee or otherwise or as a result of any inspections or any other actions made or taken by Mortgagee on the Property unless caused by the negligent or intentional acts of Mortgagee or anyone acting by or through Mortgagee, and (ii) Mortgagor agrees to remain fully liable and shall indemnify and hold harmless Mortgagee from any costs, expenses, clean-up costs, waste a disposal costs, litigation costs, fines and penalties, including without limitation any costs, c0. expenses, penalties and fines within the meaning of any applicable Environmental Laws. (c) Mortgagor shall assume the burden and expense of defending Mortgagee, with counsel selected by Mortgagor and reasonably satisfactory to Mortgagee, against all legal and administrative proceedings arising out of the occurrences to which this Section 6 applies. Mortgagee shall have the right, but not the obligation, to participate in the defense of any such proceedings; provided, however, that the costs thereof shall be borne by Mortgagee if Mortgagee engages separate counsel unless Mortgagee reasonably believes counsel selected by Mortgagor is not conducting an adequate defense and new counsel selected by Mortgagors and reasonably approved by Mortgagee is not provided within ten (10) days following written notice from Mortgagee, in which event the cost of Mortgagee's separate counsel shall be borne by Mortgagor. Mortgagor may compromise or settle any such proceedings without the consent of Mortgagee only if the claimant agrees as part of the compromise or settlement that Mortgagee shall have no responsibility or liability for the payment or discharge of any amount agreed upon or obligation to take any other action. (d) Mortgagor shall pay when due any judgments against Mortgagee which have been indemnified under this Section 6 and which are rendered by a final order or decree of a court of competent jurisdiction from which no further appeal may be taken or has been taken within the applicable appeal period. In the event that such payment is not made, Mortgagee, in its sole discretion, may pay any such judgments on five (5) Business Days prior written notice to 0 Mortgagor, in whole or in part, and look to Mortgagor for reimbursement pursuant to this Section 6, or may proceed to file suit against Mortgagor to compel such payment. 7. EVENTS OF DEFAULT. Each of the following shall constitute a default (each, an "Event of Default") hereunder: 7.1. Non-payment when due of any sum required to be paid to Mortgagee within five (5) days after the due date under any of the Loan Documents, including without limitation, principal and interest; 0 7.2 A breach of any covenant contained in Sections 2.3., 2.4., 2.6. or 2.7. hereof; C 0 7.3. A breach by Mortgagor of any other term, covenant, condition, obligation or agreement under this Mortgage, and the continuance of such breach for a period of fifteen (15) days after written notice thereof shall have been given to Mortgagor; 7.4. An Event of Default under the Note or any of the other Loan Documents; 22 Packet Pg. 2897 P.16.c Doca 2205126 Bko 2947 Pg# 2226 7.5. Any representation or warranty made by Mortgagor or any guarantor in any Loan Document or to induce Mortgagee to enter into the transactions contemplated hereunder shall prove to be false, incorrect or misleading in any material respect as of the date when made; 7.6. The filing by or against Mortgagor or any pledgor or guarantor of a petition seeking relief, or the granting of relief,under the Federal Bankruptcy Code or any similar federal or state statute; any assignment for the benefit of creditors made by Mortgagor or any pledgor or any guarantor, unless with respect to any involuntary proceeding, it is dismissed within sixty(60) 0. days after the filing thereof, the appointment of a custodian, receiver, liquidator or trustee for 6 Mortgagor or any guarantor or for any of the property of Mortgagor or any such pledgor or guarantor, or any action by Mortgagor or any guarantor to effect any of the foregoing; or if Mortgagor or any pledgor or any guarantor becomes insolvent (however defined) or is not paying its debts generally as they become due; 7.7. The death, dissolution, liquidation, merger, consolidation or reorganization of Mortgagor or any pledgor or any guarantor, or the institution of any proceeding to effect any of the foregoing; 7.8. A default under any other obligation by Mortgagor (or any affiliate of Mortgagor) or any guarantor (or affiliate of any such guarantor) in favor of Mortgagee, or under any document securing or evidencing such obligation, whether or not such obligation is secured by the Property; 7.9. The filing, entry or issuance of any judgment, execution, garnishment, attachment, distraint or lien against Mortgagor or any guarantor or pledgor or their property, unless such judgment, execution, garnishment, attachment, distraint or lien is discharged by Mortgagor within thirty(30) days after its filing, entry or issuance; 7.10. A default under any other obligation secured by the Property or any part thereof; E 7.11 The Property or any portion thereof shall be taken on execution or other process of law in any action against Mortgagor; 7.12 Mortgagor abandons all or a portion of the Property; or 7.13 If (A) a breach or default by Mortgagor under any condition or obligation contained in the Ground Lease is not cured within any applicable cure period provided therein, (B) there occurs any event or condition that gives the Lessor under the Ground Lease a right to terminate or cancel the Ground Lease, (C) any portion of the Property shall be surrendered or the Ground Lease shall be terminated or cancelled for any reason or under any circumstances whatsoever, or (D) any of the terms, covenants or conditions of the Ground Lease shall be modified, changed, supplemented, altered or amended, without in each case the prior written consent of Mortgagee (except that Mortgagor may extend the term of the Ground Lease without the prior written consent of Mortgagee). 23 Packet Pg. 2898 P.16.c Doc# 2205126 Bk# 2947 Pg# 2227 8. REMEDIES. If an Event of Default shall have occurred, Mortgagee may take any of the following actions: 8.1. Acceleration. Mortgagee may declare the entire amount of the Liabilities immediately due and payable, without presentment, demand, notice of any kind, protest or notice of protest, all of which are expressly waived, notwithstanding anything to the contrary contained in any of the Loan Documents. Mortgagee may charge and collect interest from the date of 0 default on the unpaid balance of the Liabilities, at the Default Rate set forth in the Note. c0. 8.2. Possession. Mortgagee may enter upon and take possession of the Property, with or without legal action, lease the Property, collect therefrom all rentals and, after deducting all costs of collection and administration expense, apply the net rentals to any one or more of the following items in such manner and in such order of priority as Mortgagee, in Mortgagee's sole discretion, may elect: the payment of any sums due under any prior lien, taxes, water and sewer rents, charges and claims, insurance premiums and all other carrying charges, to the maintenance, repair or restoration of the Property, or on account of the Liabilities. Mortgagee is given full authority to do any act which Mortgagor could do in connection with the management and operation of the Property. This covenant is effective either with or without any action brought to foreclose this Mortgage and without applying for a receiver of such rents. In addition to the foregoing, upon the occurrence of an Event of Default, Mortgagor shall pay monthly in c° advance to Mortgagee or to any receiver appointed to collect said rents the fair and reasonable rental value for Mortgagor's use and occupation of the Property, and upon default in any such payment Mortgagor shall vacate and surrender the possession of the Property to Mortgagee or to such receiver. If Mortgagor does not vacate and surrender the Property then Mortgagor may be evicted by summary proceedings. Notwithstanding anything to the contrary contained herein, subject to applicable law, Mortgagee may with or without taking possession of the Property, sue or otherwise collect the Rents and profits, including those past due and unpaid. c 8.3. Foreclosure. Mortgagee may institute any one or more actions of mortgage E foreclosure against all or any part of the Property, or take such other action at law, equity or by contract for the enforcement of this Mortgage and realization on the security herein or elsewhere provided for, as the law may allow, and may proceed therein to final judgment and execution for the entire unpaid balance of the Liabilities. The unpaid balance of any judgment shall bear interest at the greater of (a) the statutory rate provided for judgments, or (b) the Default Rate. Without limiting the foregoing, Mortgagee may foreclose this Mortgage and exercise its rights as a secured party for all or any portion of the Liabilities which are then due and payable, subject to the continuing lien of this Mortgage for the balance not then due and payable. In case of any sale of the Property by judicial proceedings, the Property may be sold in one parcel or in such parcels, manner or order as Mortgagee in its sole discretion may elect. Mortgagor, for itself and anyone claiming by, through or under it, hereby agrees that Mortgagee shall in no manner, in law or in equity, be limited, except as herein provided, in the exercise of its rights in the Property or 0 in any other security hereunder or otherwise appertaining to the Liabilities or any other obligation secured by this Mortgage, whether by any statute, rule or precedent which may otherwise require said security to be marshalled in any manner and Mortgagor, for itself and others as aforesaid, hereby expressly waives and releases any right to or benefit thereof. The failure to make any tenant a defendant to a foreclosure proceeding shall not be asserted by 24 Packet Pg. 2899 DocP 2205126 P.16.c Bku 2947 P9H 2228 Mortgagor as a defense in any proceeding instituted by Mortgagee to collect the Liabilities or any deficiency remaining unpaid after the foreclosure sale of the Property. 8.4. Appointment of Receiver. Mortgagee may petition a court of competent jurisdiction to appoint a receiver of the Property. Such appointment may be made either before or after sale, without notice, without regard to the solvency or insolvency of Mortgagor at the time of application for such receiver, without regard to the then value of the Property or whether the Property shall be then occupied as a homestead or not, and without regard to whether 0. Mortgagor has committed waste or allowed deterioration of the Property, and Mortgagee or any agent of Mortgagee may be appointed as such receiver. Mortgagor hereby agrees that Mortgagee has a special interest in the Property and absent the appointment of such receiver the Property shall suffer waste and deterioration and Mortgagor further agrees that it shall not contest the appointment of a receiver and hereby so stipulates to such appointment pursuant to this paragraph. Such receiver shall have the power to perform all of the acts permitted Mortgagee pursuant to Section 8.2 above and such other powers which may be necessary or customary in such cases for the protection, possession, control, management and operation of the Property during such period. 8.5. Rights as a Secured Party. Mortgagee shall have, in addition to other rights and remedies available at law or in equity, the rights and remedies of a secured party under the Code. Mortgagee may elect to foreclose such of the Property as then comprise fixtures pursuant either to the law applicable to foreclosure of an interest in real estate or to that applicable to personal property under the Code. To the extent permitted by law, Mortgagor waives the right to any stay of execution and the benefit of all exemption laws now or hereafter in effect. 8.6. Excess Monies. Mortgagee may apply on account of the Liabilities any unexpended monies still retained by Mortgagee that were paid by Mortgagor to Mortgagee: (a) for the payment of, or as security for the payment of taxes, assessments or other governmental charges, insurance premiums, or any other charges; or (b) to secure the E performance of some act by Mortgagor. 8.7. Other Remedies. Mortgagee shall have the right, from time to time, to bring an appropriate action to recover any sums required to be paid by Mortgagor under the terms of this Mortgage, as they become due, without regard to whether or not any other Liabilities shall be due, and without prejudice to the right of Mortgagee thereafter to bring an action of mortgage foreclosure, or any other action, for any default by Mortgagor existing at the time the earlier action was commenced. In addition, Mortgagee shall have the right to set-off all or any part of any amount due by Mortgagor to Mortgagee under any of the Liabilities, against any indebtedness, liabilities or obligations owing by Mortgagee in any capacity to Mortgagor, including any obligation to disburse to Mortgagor any funds or other property on deposit with or otherwise in the possession, control or custody of Mortgagee. 8.8 Miscellaneous. (a) Application of Proceeds. To the fullest extent permitted by law, the proceeds of any sale under this Mortgage shall be applied to the extent funds are so available to the following items in such order as Mortgagee in its discretion may determine: (i) To payment of the costs, 25 Packet Pg. 2900 DocH 2205126 P.16.c Bkq 2947 Pga 2229 expenses and fees of taking possession of the Property, and of holding, operating, maintaining, using, leasing, repairing, improving, marketing and selling the same and of otherwise enforcing Mortgagee's right and remedies under this Mortgage and under the other Loan Documents, including receivers' fees, court costs, attorneys', accountants', appraisers', managers' and other professional fees, title charges and transfer taxes; (ii) To payment of all sums expended by Mortgagee under the Loan Documents and not yet repaid, together with interest on such sums at the Default Rate; (iii) To payment of the Liabilities and all other obligations secured by this 0 Mortgage, including interest at the Default Rate and, to the extent permitted by applicable law, 0. any prepayment fee, charge or premium required to be paid under the Note in order to prepay principal, in any order that Mortgagee chooses in its sole discretion. The remainder, if any, of such funds shall be disbursed to Mortgagor or to the person or persons legally entitled thereto. a (b) Right and Authority of Receiver or Mortgagee in the Event of Default: Power of Attorney. Upon the occurrence of an Event of Default and entry upon the Property or appointment of a receiver, and under such terms and conditions as may be prudent and reasonable under the circumstances in Mortgagee's or the receiver's sole discretion, all at Mortgagor's expense, Mortgagee or said receiver, or such other persons or entities as they shall hire, direct or engage, as the case may be, may (but shall have no obligation to) do or permit one or more of the following, successively or concurrently: (a) enter upon and take possession and control of any and all of the Property; (b) take and maintain possession of all documents, books, records, papers and accounts relating to the Property; (c) exclude Mortgagor and its agents, servants and employees wholly from the Property; (d)manage and operate the Property; (e) preserve and maintain the Property; (f) make repairs, alterations or improvements to the Property; (g) complete any construction or repair of the Improvements, with such changes, additions or modifications of the plans and specifications or intended disposition and use of the Improvements as Mortgagee may in its sole discretion deem appropriate or desirable to place the Property in such condition as will, in Mortgagee's sole discretion, make it or any part thereof readily marketable or rentable; (h) conduct a marketing or leasing program with respect to the Property, or employ a marketing or leasing agent or agents to do so, directed to the leasing or 0 sale of the Property under such terms and conditions as Mortgagee may in its sole discretion deem appropriate or desirable; (i) employ such contractors, subcontractors, material men, architects, engineers, consultants, managers, brokers, marketing agents, or other employees, agents, independent contractors or professionals, as Mortgagee may in its sole discretion deem appropriate or desirable to implement and effectuate the rights and powers in this Mortgage granted; 0) execute and deliver, in the name of Mortgagor as attorney-in-fact and agent of Mortgagor or in its own name as Mortgagee, such documents and instruments as are necessary or appropriate to consummate authorized transactions; (k) enter into such contracts of sale, leases, whether of real or personal property, or tenancy agreements, under such terms and conditions as Mortgagee may in its sole discretion deem appropriate or desirable; (1) collect and receive the c Rents and profits from the Property; (m) eject tenants or repossess personal property, as provided by law, for breaches of the conditions of their leases or other agreements; (n) sue for unpaid 0 Rents and profits, payments, income or proceeds in the name of Mortgagor or Mortgagee or such receiver; (o) maintain actions in forcible entry and detainer, ejectment for possession and actions in distress for rent; (p) compromise or give acquittance for Rents and profits, payments, income or proceeds that may become due; (q) delegate or assign any and all rights and powers given to Mortgagee by this Mortgage; and (r) do any acts which Mortgagee in its sole discretion deems appropriate or desirable to protect the security and use such measures, legal or equitable, as 26 Packet Pg. 2901 P.16.c DocH 2205126 Bkp 2947 Pga 2230 Mortgagee may in its sole discretion deem appropriate or desirable to implement and effectuate the provisions of this Mortgage. This Mortgage shall constitute a direction to and full authority to any lessee, or other third party who has previously dealt or contracted or may subsequently deal or contract with Mortgagor or Mortgagee, at the request of Mortgagee, to pay all amounts owing under any lease, contract, concession, license or other agreement to Mortgagee without proof of the default relied upon. Any such lessee or third party is irrevocably authorized to rely upon and comply with (and shall be fully protected by Mortgagor in so doing) any request, a notice or demand by Mortgagee for the payment to Mortgagee of any Rents and profits or other c0. sums which may be or thereafter become due under its lease, contract, concession, license or 0 other agreement, or for the performance of any undertakings under any such lease, contract, concession, license or other agreement, and shall have no right or duty to inquire whether any default under this Mortgage or under any of the other Loan Documents has actually occurred or is then existing. Mortgagor constitutes and appoints Mortgagee, its assignees, successors, transferees and nominees, as Mortgagor's true and lawful attorney-in-fact and agent, with full power of substitution in the Property, in Mortgagor's name, place and stead, to do or permit any one or more of the foregoing described rights, remedies, powers and authorities, successively or concurrently, and said power of attorney shall be deemed a power coupled with an interest and irrevocable so long as any of the Liabilities is outstanding. Any money advanced by Mortgagee in connection with any action taken under this Section, together with interest thereon at the Default Rate from the date of making such advancement by Mortgagee until actually paid by c° Mortgagor, shall be a demand obligation owing by Mortgagor to Mortgagee and shall be secured by this Mortgage and by every other instrument securing the Liabilities. (c) Occupancy After Foreclosure. Upon any foreclosure sale, Mortgagor or Mortgagor's representatives, successors or assigns, or any other persons claiming any interest in the Property by, through or under Mortgagor (except tenants or subtenants under Leases entered into prior to the date of this Mortgage), occupying or using the Property, or any part thereof, to the extent not prohibited by applicable law, shall, at the option of the purchaser at such sale, immediately become the tenant of such purchaser, which tenancy shall be a tenancy from day-to- 0 day, terminable at the will of either landlord or tenant, at a reasonable rental per day based upon � the value of the Property occupied or used, such rental to be due daily to the purchaser. To the extent permitted by applicable law, in the event any tenant fails to surrender possession of the Property upon the termination of its tenancy, the purchaser shall be entitled to institute and maintain an action for unlawful detainer of the Property in the appropriate court of the county in which the Real Estate is located. (d) Notice to Account Debtors. Mortgagee may, at any time after an Event of Default, notify the account debtors and obligors of any accounts, chattel paper, negotiable instruments or other evidences of indebtedness to Mortgagor included in the Property to pay c Mortgagee directly. Mortgagor shall at any time or from time to time upon the request of Mortgagee provide to Mortgagee a current list of all such account debtors and obligors and their a addresses. (e) Cumulative Remedies. All remedies in this Mortgage are cumulative and Mortgagee shall also have all other remedies provided at law and in equity or in any other Loan Documents. Such remedies may be pursued separately, successively or concurrently at the sole subjective direction of Mortgagee and may be exercised in any order and as often as occasion 27 Packet Pg. 2902 P.16.c DocV 2205126 Bk# 2947 Pgp 2231 therefor shall arise. No act of Mortgagee shall be construed as an election to proceed under any particular provisions of this Mortgage to the exclusion of any other provision of this Mortgage or as an election of remedies to the exclusion of any other remedy which may then or thereafter be available to Mortgagee. No delay or failure by Mortgagee to exercise any right or remedy under this Mortgage shall be construed to be a waiver of that right or remedy or of any default under this Mortgage. Mortgagee may exercise any one or more of its rights and remedies at its option without regard to the adequacy of its security. 0. (f) Payment of Expenses. Mortgagor shall pay within seven (7) days after written demand all of Mortgagee's expenses incurred in any efforts to enforce any terms of this Mortgage, whether or not any lawsuit is filed and whether or not foreclosure is commenced but not completed, including legal fees, foreclosure costs and title charges, together with interest thereon at the Default Rate from the date incurred by Mortgagee until actually paid by Mortgagor. All of the same shall be secured by this Mortgage and the other Loan Documents securing the Liabilities. 9. MISCELLANEOUS. 9.1. Notices. All notices and communications under this Mortgage shall be in writing and shall be given by either (a) hand-delivery, (b) first class mail (postage prepaid), or (c) reliable overnight commercial courier (charges prepaid), or (d) via electronic mail in portable document or other format to the party intended to receive same, so long as in the case of electronic mail such notice is simultaneously delivered in another permitted manner, to the addresses listed in this Mortgage. Notice shall be deemed to have been given and received: (a) if by hand delivery, upon delivery; (b) if by mail, three (3) calendar days after the date first deposited in the United States mail; (c) if by overnight courier, on the date scheduled for delivery; and (d) if by electronic mail, on the date delivered to such party. A party may change its address by giving written notice to the other party as specified herein. If to Mortgagor: °8 Key Marina Development, LLC 52 Riley Road,Unit 155 Celebration, Florida 34747 Attn: Marl-,R. Gerenger If to Mortgagee: LV Lending LLC 175 SW 7th Street, Suite 2101 Miami, Florida 33130 c Attn: Camilo Nino Email: cnino@linkvestcapital.com a With a Copy to: Holland&Knight LLP 701 Brickell Avenue, Suite 3300 Miami, Florida 33131 Attn: Rebecca L. Mendez, Esq. Email:rebecca.mendez@hklaw.com 2s Packet Pg. 2903 P.16.c Doen 2205126 Bkq 2947 Pg# 2232 9.2. Remedies Cumulative. The rights and remedies of Mortgagee as provided in this Mortgage or in any other Loan Document shall be cumulative and concurrent, may be pursued separately, successively or together, may be exercised as often as occasion therefor shall arise, and shall be in addition to any other rights or remedies conferred upon Mortgagee at law or in equity. The failure, at any one or more times, of Mortgagee to assert the right to declare the Liabilities due, grant any extension of time for payment of the Liabilities,take other or additional security for the payment thereof, release any security, change any of the terms of the Loan 0. Documents, or waive or fail to exercise any right or remedy under any Loan Document shall not in any way affect this Mortgage or the rights of Mortgagee. 9.3. No Implied Waiver. Mortgagee shall not be deemed to have modified or waived any of its rights or remedies hereunder unless such modification or waiver is in writing and signed by Mortgagee, and then only to the extent specifically set forth therein. A waiver in one event shall not be construed as continuing or as a waiver of or bar to such right or remedy on a subsequent event. 9.4. Partial Invalidity; Severability. The invalidity or unenforceability of any one or more provisions of this Mortgage shall not render any other provision invalid or unenforceable. In lieu of any invalid or unenforceable provision, there shall be added automatically a valid and ° enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible. 9.5. Binding Effect; Successors and Assigns. The covenants, conditions, waivers, releases and agreements contained in this Mortgage shall bind, and the benefits thereof shall inure to, the parties hereto and their respective heirs, executors, administrators, successors and assigns and are intended and shall be held to be real covenants running with the land; provided, however, that this Mortgage cannot be assigned by Mortgagor without the prior written consent of Mortgagee, and any such assignment or attempted assignment by Mortgagor shall be void and E of no effect with respect to Mortgagee. 9.6. Entire Agreement. Modifications. This Mortgage and the other Loan Documents contain the entire agreements between the parties relating to the subject matter described in such documents. Any and all prior written agreements and any and all prior and contemporaneous oral agreements which are not contained in this Mortgage or such other Loan Documents are terminated. This Mortgage and the other Loan Documents may not be supplemented, extended, modified or terminated except by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification or discharge is sought. Any alleged amendment, revision, waiver, discharge, release or termination which is not so documented shall not be effective as to any party. 9.7. Commercial Loan. Mortgagor represents and warrants that the loans or other financial accommodations included as Liabilities secured by this Mortgage were obtained solely for the purpose of carrying on or acquiring a business or commercial investment and not for residential, consumer or household purposes. 29 Packet Pg. 2904 DoeN 2205126 P.16.c Bk# 2947 Pg# 2233 9.8, Governing Law. This Mortgage shall be governed by and construed in accordance with the substantive laws of the State of Florida without reference to conflict of laws principles. 9.9. Joint and Several Liability. If Mortgagor consists of more than one person or entity, the word "Mortgagor" shall mean each of them and their liability shall be joint and C several. 0 0. 9.10. Non-Merger. In the event Mortgagee shall acquire title to the Property by conveyance from Mortgagor or as a result of foreclosure, this Mortgage shall not merge in the fee estate of the Property but shall remain and continue as an existing and enforceable lien for the Liabilities secured hereby until the same shall be released of record by Mortgagee in writing. 9.11 Waiver; Discontinuance of Proceedings. Mortgagee may waive any single default by Mortgagor without waiving any other prior or subsequent default. Mortgagee may remedy any default by Mortgagor without waiving the default remedied. Neither the failure by Mortgagee to exercise, nor the delay by Mortgagee in exercising, any right, power or remedy upon any default by Mortgagor shall be construed as a waiver of such default or as a waiver of the right to exercise any such right,power or remedy at a later date. No single or partial exercise by Mortgagee of any right, power or remedy shall exhaust the same or shall preclude any other or further exercise. Every such right, power or remedy under this Mortgage may be exercised at any time and from time to time. No modification or waiver of any provision of this Mortgage nor consent to any departure by Mortgagor shall be effective unless the same shall be in writing and signed by Mortgagee, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose given. No notice to nor demand on Mortgagor in any case shall of itself entitle Mortgagor to any other or further notice or demand in similar or other circumstances. Acceptance by Mortgagee of any payment in an amount less than the amount then due on any of the Liabilities shall be deemed an acceptance on account only and shall not in any way affect the existence of a default. In case Mortgagee shall have proceeded to involve any E right, remedy or recourse permitted under this Mortgage or under the other Loan Documents and shall thereafter elect to discontinue or abandon the same for any reason, Mortgagee shall have the unqualified right to do so. In such an event, Mortgagor and Mortgagee shall be restored to their former positions with respect to the Liabilities, the Loan Documents, the Property and otherwise, and the rights, remedies, recourses and powers of Mortgagee shall continue as if the same had never been involved C 9.12 Application of the Proceeds of the Note. To the extent that proceeds of the Note are used to pay the Liabilities secured by any outstanding lien, security interest, charge or prior encumbrance against the Property, Mortgagee shall be subrogated to any and all rights, security interests and liens owned by any owner or holder of such outstanding liens, security interests, charges or encumbrances, irrespective of whether said liens, security interests, charges or 0 encumbrances are released. 9.13 Unsecured Portion of Liabilities. If any part of the Liabilities cannot be lawfully secured by this Mortgage or if any part of the Property cannot be lawfully subject to its lien and security interest to the full extent of Liabilities, then all payments made shall be applied on the Liabilities first in discharge of that portion which is unsecured by this Mortgage. 30 Packet Pg. 2905 Doc# 2205126 P.16.c Bk# 2947 Pg# 2234 9.14 Cross Default, An Event of Default under this Mortgage shall be a default or Event of Default under each of the other Loan Documents. 9.15 Interest After Sale. In the event the Property or any part thereof shall be sold upon foreclosure as provided in this Mortgage, to the extent permitted by law, the sum for which the same shall have been sold shall, for purposes of redemption (if there is any right of redemption which has not been effectively waived pursuant to the laws of the state in which the Property is located), bear interest at the Default Rate. 0. c 9.16 Inconsistency with Other Loan Documents. In the event of any inconsistency between the provisions of this Mortgage and the provisions in any of the other Loan Documents, it is intended that the provisions selected by Mortgagee in its sole subjective discretion shall be controlling. 9.17 No Mercer. It is the desire and intention of the parties that this Mortgage and the lien of this Mortgage will not merge in fee simple title to the Property. Should Mortgagee acquire any additional or other interests in or to the Property or its ownership, then, unless a contrary intent is manifested by Mortgagee as evidenced by an appropriate document duly recorded, this Mortgage and its lien shall not merge in such other or additional interests in or to the Property, toward the end that this Mortgage may be foreclosed or sold pursuant to foreclosure proceedings as if owned by a stranger to said other or additional interests. 9.18 Rights With Respect to Junior Encumbrances. Any person or entity purporting to have or to take a junior mortgage, deed of trust or other lien upon the Property or any interest therein shall be subject to the rights of Mortgagee to (i) amend, modify, increase, vary, alter or supplement this Mortgage, the Note or any of the other Loan Documents (ii) extend the maturity date of the Liabilities (iii) increase the amount of the Liabilities (iv) waive or forebear the exercise of any of its rights and remedies under this Mortgage or under any of the other Loan Documents and (v) release any collateral or security for the Liabilities, in each and every case without obtaining the consent of the holder of such junior lien and without the lien or E security interest of this Mortgage losing its priority over the rights of any such junior lien. 9.19 Mortgagee May File Proofs of Claim. In the case of any receivership, insolvency, bankruptcy, reorganization, arrangement, adjustment, composition or other proceedings affecting Mortgagor or the principals or general partners in Mortgagor, or their �s respective creditors or property, Mortgagee, to the extent permitted by law, shall be entitled to file such proofs of claim and other documents as may be necessary or advisable in order to have the claims of Mortgagee allowed in such proceedings for the entire Liabilities at the date of the institution of such proceedings and for any additional amount which may become due and payable by Mortgagor under this Mortgage after such date. c 9.20 After-Acquired Property. All property acquired by Mortgagor after the date of E this Mortgage which by the terms of this Mortgage shall be subject to the lien and the security interest created, shall immediately upon the acquisition by Mortgagor and without further mortgage, conveyance or assignment, become subject to the lien and security interest created by this Mortgage. Nevertheless, Mortgagor shall execute, acknowledge, deliver and record or file, as appropriate, all and every such further mortgages, deeds of trust, deeds to secure debt, security 31 Packet Pg. 2906 DocO 2205126 P.16.c Bko 2947 Pg# 2235 agreements, financing statements, assignments and assurances as Mortgagee shall require for accomplishing the purposes of this Mortgage. 9.21 No Representation. By accepting delivery of any item required to be observed, performed or fulfilled or to be given to Mortgagee pursuant to the Loan Documents, including any officer's certificate, balance sheet, statement of profit and loss or other financial statement, survey, appraisal or insurance policy, Mortgagee shall not be deemed to have warranted, a consented to, or affirmed the sufficiency, legality, effectiveness or legal effect of the same, or of 0. any term, provision or condition thereof. Such acceptance of delivery shall not be or constitute any warranty, consent or affirmation of Mortgagee. 9.22 Recordinlz and Filing. Mortgagor will cause the Loan Documents and all amendments and supplements and substitutions to be recorded, filed, re-recorded and re-filed in such manner and in such places as Mortgagee shall reasonably request. Mortgagor will pay on demand all such recording, filing, re-recording and re-filing taxes, fees and other charges. Mortgagor shall reimburse Mortgagee, or its servicing agent, for the costs incurred in obtaining a tax service company to verify the status of payment of taxes and assessments on the Property. 9.23 Maximum Interest. The provisions of this Mortgage and all other agreements between Mortgagor and Mortgagee, whether now existing or subsequently arising, written or oral, are expressly limited so that in no contingency or event whatsoever, whether by reason of demand or acceleration of the maturity of the Note or otherwise, shall the amount paid, or agreed to be paid, to Mortgagee for the use, forbearance or retention of the money loaned under the Note exceed the maximum amount permissible under applicable law. If, from any circumstance whatsoever, performance or fulfillment of any provision of this Mortgage or of any agreement between Mortgagor and Mortgagee shall, at the time performance or fulfillment, exceed the limit for interest prescribed by law or otherwise transcend the limit of validity prescribed by applicable law, then ipso facto the obligation to be performed or fulfilled shall be reduced to such limit. If, from any circumstance whatsoever, Mortgagee shall ever receive anything of value deemed interest by applicable law in excess of the maximum lawful amount, an amount equal to any excess shall be applied to the reduction of the principal balance owing under the Note in the inverse order of its maturity (whether or not then due) or, at the option of Mortgagee, be rebated to Mortgagor, and not to the payment of interest. All interest (including any amounts or payments deemed to be interest) paid or agreed to be paid to Mortgagee shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full period until payment in full of the principal balance of the Note so that the Interest thereon for such full period will not exceed the maximum amount permitted by applicable law. This paragraph will control all agreements between Mortgagor and Mortgagee. `U 0 9.24 Servicing Agent. Mortgagor acknowledges that the Loan Documents may be serviced by an agent designated by Mortgagee from time to time, and that such servicing agent 0 shall have the authority to collect payments on the Liabilities and to exercise the rights and remedies of Mortgagee under the Loan Documents for and on behalf of Mortgagee. 9.25 Sole Discretion of Mortgagee. Wherever pursuant to this Mortgage or any other Loan Document (i) Mortgagee exercises any right given to it to approve or disapprove; (ii) any arrangement or term is to be satisfactory to Mortgagee; or (iii) any other decision or 32 Packet Pg. 2907 Doco 2205126 P.16.c Bkp 2947 P90 2236 determination is to be made by Mortgagee, the decision of Mortgagee to approve or disapprove, all decisions that arrangements or terms are satisfactory or not satisfactory and all other decisions and determinations made by Mortgagee, shall be in the sole discretion of Mortgagee, except as may be otherwise expressly and specifically provided herein or therein �s 9.26 Construction. The following rules apply to the construction and interpretation of this Mortgage: (i) singular words connote the plural number as well as the singular and vice versa as used in the definitions and elsewhere in this Mortgage; (ii) unless specifically otherwise c0. provided, all references in this Mortgage to particular articles, sections, subsections, clauses, schedules or exhibits are references to articles, sections, subsections, clauses, schedules or exhibits of this Mortgage; (iii) the section headings are solely for convenience of reference and do not constitute a part of this Mortgage nor affect its meaning, construction or effect; (iv) the terms "include" or "including" are not restrictive and shall be deemed to include the terms "but not limited or without limitation"; (v) the term attorneys fees or similar phrases includes the reasonable fees and disbursements of Mortgagee's counsel or law firm in reviewing the Loan Documents investigating, preparing and pursuing claims, before or at trial and all appellate levels or in bankruptcy, and includes the fees of such counsel's or law fnm's paralegals and consultants; (vi) the term "days" means calendar days; provided that if any time period ends on a Saturday, Sunday or holiday officially recognized by the state within which the Real Estate is located, the period shall be deemed to end on the next succeeding business day and the term "business day" means a weekday, Monday through Friday, except a legal holiday or a day on which banking institutions in Marathon, Florida are authorized to be closed; and (v) this document may be construed as a mortgage, security deed, deed of trust, chattel mortgage, conveyance, assignment, security agreement, pledge, financing statement, hypothecation or contract, or any one or more of the foregoing, in order to fully effectuate the liens and security interests created and the purposes and agreements in this Mortgage. 9.27 SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL. (a) MORTGAGOR, TO THE FULL EXTENT PERMITTED BY LAW, KNOWINGLY, INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, (i) SUBMITS TO PERSONAL JURISDICTION IN THE STATE WHERE THE PROPERTY IS LOCATED OVER ANY SUIT, ACTION OR PROCEEDING BY ANY PERSON ARISING FROM OR RELATING TO THE NOTE, THIS MORTGAGE OR ANY OTHER OF THE LOAN DOCUMENTS, (ii) AGREES THAT ANY SUCH ACTION, SUIT OR PROCEEDING MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION SITTING IN THE COUNTY WHERE THE PROPERTY IS LOCATED, (iii) SUBMITS TO THE JURISDICTION OF SUCH COURTS, AND, (iv) TO THE FULLEST EXTENT c PERMITTED BY LAW, AGREES THAT IT WILL NOT BRING ANY ACTION, SUIT OR PROCEEDING IN ANY FORUM OTHER THAN THE COUNTY WHERE THE PROPERTY IS LOCATED (BUT NOTHING IN THIS MORTGAGE SHALL AFFECT THE RIGHT OF MORTGAGEE TO BRING ANY ACTION, SUIT OR PROCEEDING IN ANY OTHER FORUM). (b) MORTGAGOR, TO THE FULL EXTENT PERMITTED BY LAW, KNOWINGLY, INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE 33 Packet Pg. 2908 P.16.c Doc# 2205126 Bk# 2947 Pg# 2237 ADVICE OF COMPETENT COUNSEL, WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO THE LIABILITIES OR ANY CONDUCT, ACT OR ACTION OF MORTGAGEE OR MORTGAGOR, OR ANY OF THEIR DIRECTORS, OFFICERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS OR ATTORNEYS, OR ANY OTHER PERSONS AFFILIATED WITH MORTGAGEE OR MORTGAGOR, IN EACH OR THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT, TORT OR 0. OTHERWISE. [Remainder of page intentionally left blank,signature page to follow.] ° ° 34 Packet Pg. 2909 Doc# 2205126 P.16.c Bk# 2947 Pg# 2238 IN WITNESS WHEREOF, Mortgagor, intending to be legally bound, has duly executed and delivered this Mortgage and Security Agreement as of the day and year first above written. t.3 WITNESS: MORTGAGOR: Name: KEY MARINA DEVELOPMENT, LLC a Florida limited liability company Na e: rv, By: Key Marina Holdings, LLC, a Delaware limited liability company, its Manager and Sole Member By 44 _.........— Name: Ma k R. Gerenger Its: Manager ° STATE OF FLORIDA ) SS.: COUNTY OF )` e-6 ) 0 The foregoing instrument was acknowledged before me this day 2019, by Mark R. Gerenger as Manager of KEY MARINA HOLDINGS, LLC, a Delaware limited liability company, the Manager of KEY MARINA DEVELOPMENT, LLC hlorida limited liability company, on behalf of the company. He is personally known to me( (NO) or has produced as identification. /C4, Notary Public [Notarial Seal] � � je j I � �j `1 1 Printed Name of Notary DEE N.KIRBY Commsssion GG M111 " EMpirresAugost8,2021 s .� U-Tm Fe1rt Insumnte 800 38ST018 38 Packet Pg. 2910 P.16.c DocU 2205126 Bk# 2947 PqH 2239 Schedule A �s Part I - Singleton Parcel Parcel 1 0. Lots 1 and 2, Block 4, MANDALAY, according to the Plat thereof, recorded in Plat Book 1, Page 194, among the Public Records of Monroe County, Florida; ° Together with a parcel of submerged land in Sec. 6, Twp. 62 South, Rge. 39 East, Key Largo, Florida, Monroe County, Florida, more particularly described as: From the intersection of the dividing line between Lots 2 and 3, Block 4 with the Southeasterly side of East Second Street, all as shown on Plat of MANDALAY, recorded in Plat Book 1, Page 194, Public Records of Monroe County, Florida, run Southeasterly along said dividing line, a distance of 150 feet to the most Easterly corner of Lot 2 and the most Westerly corner of a parcel heretofore conveyed to A.F. Meade by Trustees L LF, Deed No. 22153 and the Point of Beginning of the parcel hereinafter described; thence continue Southeasterly along last described course and along the Southwesterly side of the Meade parcel, a distance of 250 feet; thence Southwesterly and parallel to the said Southeasterly side of East Second Street, a distance of 125.8 feet to the prolongation of the dividing line between Lot 1, Block 4, and Second Avenue, according to said Plat Book 1, Page 194; thence Northwesterly along said prolongation a distance of 250 feet to the most Southerly corner of said Lot 1, Block 4; thence Northeasterly along the Southeasterly side of Lots 1 and 2, a distance of 125.8 feet to the Point of Beginning. Part II - Lively Parcel A strip of land 125 feet wide and 250 feet in depth off the Southwesterly side of Block 3, said strip being 125 feet on East First Street and East Second Street, and 250 feet on Second Avenue, MANDALAY, according to the plat thereof recorded in Plat Book 1, Page 194 of the Public Records of Monroe County, Florida. Also described as: A strip of land 125 feet wide and 250 feet in depth off the Southwesterly side of Block 3, said strip being 125 feet on East First Street on East Second and East Avenue 250 feet on Second Avenue, MANDALAY, according to the plat thereof recorded in Plat Book 1, Page 194 of the Public Records of Monroe County, Florida. AND A tract of land in Block 3 of MANDALAY, a subdivision of Key Largo, according to the Plat recorded in Plat Book 1, at Page 194 Public Records of Monroe County, Florida, said tract having a frontage of 100 feet on East First Street, according to the plat of MANDALAY, and a depth of 95 feet and further described as the Northwesterly 95 feet of the Northeasterly 100 feet of the Southwesterly 225 feet of said Block 3. AND 36 #63009354 v2 Packet Pg. 2911 P.16.c Doc# 2205126 Bk# 2947 Pgn 2240 The Northeasterly 50 feet of the Southwesterly 175 feet, and the Northeasterly 50 feet of the Southwesterly 225 feet, Block 3, MANDALAY, a subdivision of Key Largo, according to the Plat recorded in Plat Book 1, Page 194 Public Records of Monroe County, Florida, less the Northwesterly 95 feet of the Northeasterly 100 feet of the Southwesterly 225 feet thereof of said Block 3. c Pail III - Bennett Parcel c0. a� Lots 1, 2, 3, 4, 5, 6, 7, 8, 30, 31, 32 and 33, Block 2, MANDALAY, according to the Plat thereof, as recorded in Plat Book 1, Page 194 of the Public Records of Monroe County, Florida. a c a c c c a c c c MONROE COUNTY OFFICIAL RECORDS 37 Packet Pg. 2912 Elci:# 2142229 11/03/2017 12:20F Filed & Recorded in Official Records MONROE C.0UNTY KEVIN MADOK Dat:n 2142229 E110 237*7 Pg# 1916 RMULDE-VAlizA&11�1 ND CQZjSLNj-T—Q-.A5&.11!1ijN E 0. .2 THIS CHT-OF-WAY LEASE AGREEMENT ("LEASE"), made and entered into by the parties on this 18th day of October, 2017, by and between MONROE COUNTY, a political subdivision of the State of Florida, whose address is 1100 Simonton Street, Key West, Florida 33040, ("LESSOR") and KEY MARINA DEVELOPMENT, LLC, aFlorida limited liability company, whose principal address is 52 Riley Road, Unit 155, Celebration, Florida 34747 ("LESSEE") and FLORIDA KEYS QUALITY FOODS, INC., a Florida corporation, whose principal address is 125 Milano Drive, Islamorada, Florida 33036, ("SUB- LESSEE"). WITNESSETH: z I- Ir- WHEREAS, the County owns the public right-of-way along Second Avenue in Key 00 Ir- Largo, Monroe County,Florida; and CD WHEREAS, there exists an historic encroachment upon the Second Avenue public right® 0 of-way, of a concrete building and a frame building, existing since 1944 and the early 1960's respectively; and z WHEREAS, on November 12, 1997, the Monroe County Board of County Commissioners ("BOCC") entered into a Lease Agreement with Canalis Holding Corporation z ("Canalis") for ten (10) feet of county right-of-way on Second Avenue, Key Largo, Florida, for a term of ten (10) years from December 1, .1997, until November 30, 2017 ("Original (n Lease"); and 0 z WHEREAS, on February 18, 2004, the Original Lease was assigned from Canalis to W W Ea mark Companies, LLC ("Earthmark"), which assignment was approved as required by z 0 paragraph 7 of the Original Lease by the BOCC; and U W (n WHEREAS, on August 18, 2004, the BOCC approved the Lease assignment fromEarthmark W to Ocean Sunrise Associates,LLC ("Ocean Sunrise"); and 0 WHEREAS, on July 20, 2011, the BOCC acknowledged the transfer of title through a W a foreclosure action from. Ocean Sunrise to Morgan Ocean Sunrise, LLC ("Morgan Ocean W 0 Sunrise"), and approved the assignment of the Lease to Morgan Ocean Sunrise on the same U W date; and W WHEREAS, on July 20, 2011, the BOCC acknowledged and approved the Assignment of E Packet Pg. 2913 [lei All :21,422:29 1-*11(13 2377 Pga 1917 Lease ("Assignment of Lease") from Morgan Ocean Sunrise to Florida Keys Quality Foods, Inc., a Florida corporation, whose principal address is 125 Milano Drive, E Islamorada, Florida 33036 ("Quality Foods"), a tenant of the contiguous property and 0. .2 leased right-of-way upon which the existing historical encroachment is located; and WHEREAS Morgan Ocean Sunrise was successor in interest to the rights and obligations set forth in the Development Agreement between Ocean Sunrise and the BOCC, which was approved by Resolution 493-2007 on November 1.4, 2007 ("Development Agreement"), Which included the use of the leased property and Which was executed subsequent to the Lease, thus allowing some modifications in the use of the property under the Original Lease; and WHEREAS, the survey and site plan provided at the time of the Development Agreement approval showed encroachment of buildings or structures beyond the original z I- description of the leased Premises as well as allowing parking, wheel stops, an impervious Ir- 00 handicapped parking space, and landscaping on the County right-of-way; and Ir- CD WHERE AS, on September 21, 2011, the BOCC entered into an Amendment to Lease U 0 with Morgan Ocean Sunrise reflecting the above changes, among other revisions, to the Original Lease; and WHEREAS, the contiguous property is currently owned by Key Marina Development, LLC, z a Florida limited liability company, whose principal address is 52 Riley Road, Unit 155, z Celebration, Florida 34747, as acquired through a Special Warranty Deed dated October a 21, 2013, and recorded in. Of Records Book 2655, Page 1209 in the Office of the Monroe (n (n County Clerk.of the Court("Key Marina"); and < 0 WHEREAS, Key Marina is the current successor in interest to the rights and obligations z W (n set forth in the Development Agreement and as outlined in the Key Marina Development, z LLC Major Conditional Use at Mandalay Proposed Site Plan ("Site Plan"), attached hereto and 0 made a part hereof ("Exhibit A"), which was approved by the Monroe County Planning W (n Commission on January 27,2017, as part of its Resolution No. P34-16; and < W WHEREAS, Quality Foods is the current Lessee and Tenant of the leased property under 0 W the Assignment of Lease with said lease tenn to expire on November 30, 201.7; and a W WHEREAS,on January 1.8, 2017, the BOCK' approved a new Right-of-Way Lease Agreement 0 U with Key Marina, as Lessor, and Quality Foods, as Sub-Lessee, for an historic encroachment W W upon the Second Avenue public right-of-way in Key Largo, but the term of the Lease was inadvertently omitted, and therefore,never executed by the Mayor on behalf of the BOCC; and E 2 Packet Pg. 2914 2142229 21377 Pg# 1918 WHEREAS, Key Marina and Quality Foods now desire to terminate the Original Lease and the Assignment of Lease, and terminate and rescind the BOCC approval on January 18, 2017, E of the new Right-of-Way.Lease Agreement, which was never fully executed; and 0. 0 WHEREAS, Key Marina has provided a new Survey and Legal Description, dated December 7, 201.6, incorporating the Site Plan revisions for the Mandalay property, a copy of which is attached hereto and made a part hereof("Exhibit B"); and WHEREAS, Key Marina is the legal title owner of the contiguous property and desires to become the LESSEE; and WHEREAS, Key Marina and Quality Foods entered into a Lease Agreement dated April 11, 2017, ("Lease Agreement"), for the lease by Quality Foods of the contiguous property, together with the property owned by Monroe County, for an initial lease term of seven (7) z V.- years and for renewal terms of three(3) periods of Five(5) years each; and Ir- 00 Ir- CD WHERE AS, Quality Foods, as the current tenant of the contiguous property, desires to become the SUB-LESSEE of the leased Premises; 0 WHEREAS, Key Marina, Quality Foods, and BOCC desire to enter into this Right-of- Way Lease Agreement reflecting the revised survey and legal description; and z WHERE AS, this Right-of-Way Lease Agreement ("ROW LEASE") is entered into in order to reflect the historic encroachment upon the Second Avenue public right-of-way, of a concrete building and a frame building, existing since 1.944 and the early 1960's (n (n respectively, which buildings are currently owned by Key Marina, and the additional uses of < 0 parking spaces, wheel. stops, an impervious handicapped parking space, and landscaping on the County right-of-way. z W (n z NOW THEREFORE, IN CONSIDERATION of the mutual promises and covenants set 0 U .forth below, the parties agree as follows: W (n W MONROE COUNTY BOARD OF COUNTY COMMISSIONERS ("LESSOR") for and in consideration of the mutual covenants and agreements hereinafter contained, does hereby 0 lease to KEY MARINA ('LESSEE") the right—of-way on Second Avenue, Key Largo, Florida, contiguous to the Mandalay development, more particularly described in W paragraph two (2) below and subject to the following terms and conditions: 0 U W 1. IERM_.: J'he Original Lease dated November 12, 1997,which expires on November 30, 2017, is hereby terminated upon approval by the BOCC and full execution of this RC LEASE. Additionally, the ROWLEASE approved by the BOCC on January 18, 2017, E 3 Packet Pg. 2915 114:1:0 :2142229 PUt 2377 13g# 1919 between the herein parties, but never executed by the Mayor on behalf of the BOCC is hereby rescinded. The initial to of this ROW LEASE shall be for a period of E seven (7) years commencing retroactively to the I Ith day of April, 2017, and 0. .2 0 ending on the 1 01b day of April, 2024, unless sooner terminated pursuant to the > provisions of this ROW LEASE. The term and renewal options of this ROW LEASE coincide with the same terms set forth in that certain Lease Agreement dated April 11, 2017, between Key Marina Development, LLCM and Florida Keys Quality Foods, Inc., recorded on July 6, 2017, in the Official Records of Monroe County in Book 2863 at Page 416. 2, RENEWAL TERMS: Lessor shall have the option to renew this ROW LEASE after the original term, for three (3) additional periods of five (5) years each. 3. OPTION TO RENEW: Lessor hereby grants to Lessee the option to renew this,ROW z LEASE for the renewal terms on the condition that at the time Lessee exercises each 00 option to renew, Lessee is not in default under this.ROW LEASE beyond the expiration Ir- CD of any applicable cure period. Lessee shall exercise its right to renew and extend the Lease term, if at all, by providing written notice of extension to Lessor at least ninety 0 (90) days prior to the expiration of the lease term. 4. DY.$LHLE1JDN_Q.E_EREML,5M: The property subject to this Lease is situated, in the County of Monroe, State of Florida, and is more particularly described in z Exhibit "B" attached hereto and made a part hereof("Premises"). z a 5. f.Q.DJaLULB_,J_T=:_ LESSEE shall pay to LESSOR the sum of Four Hundred Six (n (n and 25/100 Dollars ($406.25) per month for a total amount of Four Thousand < 0 Eight Hundred Seventy-five and 00/100 ($4,875.00) Dollars annually. LESSOR agrees to pay in advance the total amount of Fourteen Thousand Six Hundred Twenty-five and z W 00/100 ($14,625.00) Dollars as payment in full for the initial three (3) years of the (n z seven (7) year term of this Lease, and to thereafter pay the remaining annual rental 0 U payments in two-year increments on or before the annual renewal date of the Lease. W (n The initial rental payment for three (3) years shall be paid within ten (10) days of < W execution of this ROW LEASE. If this ROW LEASE should be terminated prior to the expiration of the initial seven (7) year term by any party, or should the LESSEE default p 0 in these terms hereof, LESSEE and any subsequent Sub-Lessee waives any and all rights to any advance rental payment for any remaining rental fee which may not yet be W due under the terms of the Lease. All subsequent rental payments due for any renewal 0 period shall also be paid in full in advance for the two-year incremental periods upon W notice of exercising LESSEE'S option to renew the Lease. All rental payments shall be W made payable to Monroe County and remitted to the Monroe County Clerk of Court E for the Monroe County Board of County Commissioners at 500 Whitehead Street, 4 Packet Pg. 2916 3 14221 29 j920 P90 a Key West, Florida 33040. E 6, EjjHE=: This ROW LEASE is for the purpose of reflecting the historic 0. .2 encroachment upon the Second Avenue public right-of-way, of a concrete building and a frame building, existing since 1944 and the early .1960's respectively and allowing the use of the existing buildings and accessory structures that exist on the County right-of-way as shown on the survey, a copy of which is attached hereto and made a part hereof as Exhibit"13". 7. LESSEE shall have the right of ingress and egress to, from, and upon the leased Premises for all purposes necessary to the full quiet enjoyment by said LESSEE of the rights conveyed herein. 8. JLNAjLTjJQBJZJD_jV_$L: LESSEE shall, through its agents and employees, prevent Z the unauthorized use of the leased Premises or any use thereof not in conformance with this ROW LEASE. Development shall only be as allowed by the Development Agreement dated November 14, 2007, as modified pursuant to Resolution No. P34-16 of the Monroe County Planning Commission on October 26, 2016, as to the current use 0 and commercial square footage, as provided by law. Only parking, wheel stops, an impervious handicapped parking space, and landscaping are otherwise permitted within the leased area, outside of the structures and buildings shown on Exhibit "A", in accordance with the Development Agreement and any conditional use permit. Whether Z the Development Agreement is in effect or not, there shall be no changes or im rovements, which encroach or further increase the footprint of the existing P development as shown on Exhibit"A". (n (n 0 9. IN f This ROW LEASE shall not be assigned or subleased in whole or in part without the prior written consent of LESSOR. Any assignment or Z W sublease made either in whole or in part, without the prior written consent of (n Z LESSOR, shall be void and without legal effect. 0 U W (n a. LESSOR hereby consents to the sub-lease of the Premises to Florida Keys Quality < W Foods, Inc., a Florida corporation, whose principal address is 125 Milano Drive, Islamorada, Florida 33036, a tenant of the contiguous property and leased right- 0 of-way upon which the existing historical encroachment is located ("Quality W Foods"), so long as Quality Foods has a valid and enforceable lease with LESSEE for the contiguous property, owned by LESSEE. 0 W b. LESSEE shall provide LESSON with a copy of its Lease Agreement with Quality Foods and any amendments or renewals thereto, within ten (10)days of execution E thereof Packet Pg. 2917 Elactl :21,42229 1:1104 2377 PgN 1921 c. Should LESSEE and Quality Foods fail to enter into a valid lease for the E contiguous property, at this time or at any time in the future, the consent for sub- 0. .2 lease will be automatically terminated. & The consent authorized in.this OW LEASE is solely for the sub-lease of the leased Premises to Quality Foods as the SUB-LESSEE and not to any subsequent Sub- Lessee without prior written approval. 10. FAST; FATS This ROW LEASE is subject to any utility easement existing on said leased Premises. Any other easement not approved in writing by LESSOR shall be void and without legal effect. 11. RIGHT OF INaELLIM: LESSOR or its duly authorized agents, representatives, Z or employees shall, have the right at any and all times during daylight hours to inspect Ir- the leased Premises and the works and operations of LESSEE in any matter pertaining 00 to this ROW LEASE. 12. IN During the term of this ROW LEASE, 0 M LESSEE shall procure and maintain policies of fire, extended risk, and general liability insurance coverage. The liability insurance coverage shall be in an amount not less than Two Hundred Thousand Dollars and 00/100 ($200,000.00) per occurrence and Three Hundred Thousand Dollars and 00/100 ($300,000.00) per occurrence for Z personal injury, death, and property damage on the leased Premises. Such policies of Z insurance shall name LESSOR, Monroe County, as an additional insured. LESSEE a shall submit written evidence of having procured all insurance policies required (n (n herein prior to the effective date of this ROW LEASE and shall submit annually < 0 thereafter written evidence of maintaining such insurance policies to the Monroe County Clerk of the Court, 500 Whitehead Street, Ivey West, Florida 33040. LESSEE Z W (n shall purchase all policies of insurance from a financially responsible insurer duly Z 0 authorized to do business in the State of Florida. LESSEE shall be financially U responsible for any loss due to failure to obtain adequate insurance coverage, and the W (n .failure to maintain such policies or certificates in the amounts set forth shall constitute < W a breach of this ROW LEASE. 0 13. AL A LL, 1� '. ZLR JL : _J2dJLhJN1fLCAJJM: Notwithstanding any minimum insurance W requirements prescribed elsewhere in this agreement, LESSEE covenants and agrees that it shall defend, indemnify, and hold the LESSOR and LESSOR'S elected and 0 appointed officers and employees harmless from and against (i) any claims, actions W or causes of action, (ii) any litigation, administrative proceedings, appellate 4i proceedings, or other proceedings relating to any type of injury (including death), E loss, damage, fine, penalty or business interruption, and (iii) any costs or expenses 6 Packet Pg. 2918 Dai:n :11,422:19 1:110 2377 I*g# 1922 that may be asserted against, initiated with respect to, or sustained by any C indernnifted party by reason of, or in connection with., (a) any activity of LESSEE or 0 E any of its employees, agents, sub-lessees in any tier, or other invitees during the 0. .2 term of this Agreement, (b) the negligence or willful misconduct of LESSEE or any of its employees, agents, sub-lessees in any tier, or other invitees except to the extent the claims, actions, causes of action, litigation, proceedings, costs, or expenses arise from the intentional or sole negligent acts or negligent acts in part or omissions of the LESSEE or any of its employees, agents, contractors, or invitees (other than LESSEE). Insofar as the claims, actions, causes of action, litigation, proceedings, costs or expenses related to events or circumstances that occur during the to of this R 0 W LEASE, this section will survive the expiration of the term of this ROW LEASE or any earlier ten-nination of this ROW LEASE. The extent of liability is in no way limited to, reduced, or lessened by the insurance requirements contained elsewhere within this ROW LEASE. z V.- Ir- 00 14, AYMENT A LESSEE shall assume full responsibility for and shall pay all liabilities that accrue to the [eased Premises or to the improvements thereon, including any and all ad valorem taxes and drainage and 0 special assessments or taxes of every kind and all mechan.ic's or materialrnen s liens Co which may be hereafter lawfully assessed and levied against the leased Premises. 15.ZLQJJAL)' A : The failure of LESSOR to insist in any one or z more instances upon strict performance of any one or more of the covenants, terms, and conditions of this ROW LEASE shall not be construed as a waiver of such. z covenants, terms, or conditions, but the same shall continue in full force and effect, (n (n and no waiver of LESSOR of any of the provisions hereof shall in any event be < 0 deemed to have been made unless the waiver is set forth in writing, signed by LESSOR. z W (n z 16.J[M: Time is expressly declared to be of the essence of this ROW LEASE. 0 U W (n 17.ILTJJAIY JT�,LS.: LESSEE shall be responsible for the payment of all charges for < W the furnishing of gas, electricity, water, and other public utilities to the leased Premises and for having all utilities turned off when the leased Premises are 0 surrendered. W a 18.MLNYHAL_JULjHj,S: This ROW LEASE does not cover petroleum or petroleum W 0 products or minerals and does not give the right to LESSEE to drill for or develop U W the same, and LESSOR specifically reserves the right to lease the leased Premises for W 4j purpose of exploring and recovering oil and minerals by whatever means C 0 E appropriate; provided, however, that LESSEE named herein shall. be fully compensated 7 Packet Pg. 2919 Cho41 1422''Z9 F1 '1#2377 it pga 1923 for any and all damages that might result to the leasehold interest of said LESSEE by reason Of Such exploration and recovery operation. E 0. .2 19. IGHT OF Ali.=': LESSEE shall make available for LESSOR all financial and other records relating to this ROW LEASE and LESSOR shall have the right to a either audit such records at any reasonable time or require the submittal of an. annual independent audit by a Certified Public Accountant during the term of this ROW LEASE. This right shall be continuous until this ROW LEASE expires or is terminated. This ROW LEASE may be terminated by LESSOR should LESSEE fail to allow public access to all documents, papers, letters or other materials made or received in conjunction with this Lease, pursuant to the provisions of Chapter 119, Florida Statutes. 20,LQNPjJ1QDL JQF JERLMI LESSOR assumes no liability or obligation to z LESSEE with reference to the condition of the leased Premises. The leased Premises 00 herein are leased by LESSOR to LESSEE in an "as is" condition, with LESSOR Ir- assuming no responsibility for the care, repair, maintenance, or improvement of the leased Premises for the benefit of the LESSEE. 0 21. QQhJMJAN_LEAJLJU_JA�W LESSEE agrees that this ROW LEASE is contingent upon and subject to LESSEE obtaining all applicable permits and. complying with all applicable permits, regulations, ordinances, rules, and laws of z Monroe County, the State of Florida or the United States or of any political subdivision or agency of either. 22. JJREAQJ I Jumf- Vi , Should LESSEE (n breach any of the covenants, terms or conditions of this ROW LEASE, LESSOR 0 shall give written notice to LESSEE to remedy such breach within sixty (60) days of z such notice. In the event LESSEE fails to remedy the breach to the satisfaction of W (n LESSOR within sixty (60) days of receipt of written notice, LESSOR may either z 0 terminate this ROW LEASE and recover from LESSEE all damages LESSOR may U W incur by reason of the breach including, but not limited to, the cost of recovering (n the leased Premises and attorneys' fees or maintain this ROW LEASE in full force W -J and. effect and exercise all rights and remedies herein conferred upon LESSOR. 3: 0 23. W a. LESSEE shall not do, or suffer to be done, in, on or upon the leased Premises or 0 U W as affecting said leased Premises or adjacent properties, any act which may result W in damage or depreciation of value to the leased Premises or adjacent properties, or any part thereof. E 8 Packet Pg. 2920 Dai:n 2142229 13103 2377 PgN 1924 b. LESSEE shall not generate, store, produce, place, treat, release or discharge any contarninants, pollutants or pollution, including, but not limited to, hazardous or E toxic substances, chemicals or other agents on, into, or from the leased Premises 0. .2 0 or any adjacent lands or waters in any manner not permitted by law. For the > purposes of this ROW LEASE, "hazardous substances" shall mean and include those elements or compounds defined in 42 USC Section 9601 or which are contained in the list of hazardous substances adopted by the United States Environmental Protection Agency (EPA) and the list of toxic pollutants designated by the United States Congress or the EPA or defined by any other federal., state or local statute, law, ordinance, code, rule, regulation, order or decree regulating, .2 relating to or imposing liability or standards of conduct concerning any hazardous, toxic or dangerous waste, substance, material, pollutant or contaminant. "Pollutants" and "Pollution" shall mean those products or substances defined in Florida Statutes, Chapter 376 and Chapter 403, and the rules promulgated Z thereunder, all as amended or updated from time to time. In the event of 00 LESSEE's failure to comply with this paragraph, LESSEE shall, at its sole cost Ir- and expense, promptly commence and diligently pursue any legally required closure, investigation, assessment, cleanup, decontamination, remediation, 0 restoration and monitoring of(1) the leased Premises, and (2) all of site ground and surface waters and lands affected by LESSEE's such failure to comply, as may be necessary to bring the leased Premises and affected off-site waters and. lands into full compliance with all applicable federal, state, or local statutes, Z laws, ordinances, codes, rules, regulations, orders and decrees, and to restore the damaged property to the condition existing immediately prior to the occurrence which caused the darnage. LESSEE's obligations set forth in this paragraph shall (n (n survive the termination or expiration of this ROW LEASE. 'rhis paragraph shall < 0 not be construed as a limitation upon LESSEE's obligations regarding indemnification and payment of costs and fees as set forth in paragraph 11 of Z .P W (n this ROW LEASE, nor upon any other obligations or responsibilities of the Z 0 LESSEE as set forth herein. Nothing herein shall relieve LESSEE of any U responsibility or liability prescribed by law for fines, penalties and damages levied W (n by govenimental agencies, and the cost of cleaning up any contamination caused < W directly or indirectly by LESSEE's activities or facilities. Upon discovery of a release of a hazardous substance or pollutant, or any other violation of local, state, 0 W or federal law, ordinance, code, rule, regulation, order or decree relating to the a W generation, storage, production, placement, treatment, release or discharge of any contaminant, LESSEE shall report such violation to all applicable governmental 0 U agencies having jurisdiction and to LESSOR, all within the reporting period of the W W applicable agency. E c. Should the buildings which extend onto the leased Premises be substantially 9 Packet Pg. 2921 2142229 1. 11413 237*7 Pg# 1925 damaged for any reason and cannot be repaired but must, pursuant to law, be removed and replaced by structure(s) meeting laws in existence at the time of such E occurrence, this ROW LEASE shall be automatically terminated. 0. .2 2 E M Upon termination or expiration of this ROW LEASE, LESSEE shall. surrender the leased Premises to LESSOR. In the event no further use of the leased Premises or any part thereof is needed, LESSEE shall give written notification to LESSOR at least six (6) months prior to the release of any or all of the leased Premises. Notification shall include a legal description and an explanation of the release. The release shall only be valid if approved by LESSOR >% pp .2 through the execution of a release of the ROW LEASE instrument with the same .formality as this ROW LEASE. Prior to surrender of all or any part of the leased Premises, a representative of the Division of State Lands shall perform an on-site inspection. If the leased Premises violate conditions set forth in paragraph 8 herein, Z LESSEE shall pay all costs necessary to remove any unauthorized improvernents or 00 changes. 25. Fee title 0 to the leased Premises is held by LESSOR. LESSEE shall not do or permit anything to be done which purports to create a lien or encumbrance of any nature against the real property contained in the leased Premises including, but not limited to, mortgages or construction liens against the leased Premises or against any interest of Z LESSOR therein. Notwithstanding, LESSEE shall be entitled to mortgage its leasehold 2 interest in the Pre mices provided such mortgage interest is subordinate to the terrns and conditions of the ROW LEASE. LESSEE shall provide the documents to LESSOR (n (n thirty (30) days before closing to verify that the appropriate language is in the proposed < 0 documents. Z W 26.LABILAL J Li�AI r Y : If any term, covenant, condition or provision of this M�N Z ROW LEASE shall be ruled by a court of competent jurisdiction to be invalid, void, or 0 unenforceable, the remainder shall remain in full force and effect and shall in no way U W (n be affected, impaired.or invalidated. < W 27. �, AND_ Execution of this ROW LEASE 0 in no way affects any of the parties' obligations pursuant to Chapter 267, Florida Statutes. The collection of artifacts or the disturbance of archaeological and historic W a sites on state-owned lands is prohibited unless prior authorization has been obtained W 0 from the Department of State, Division of Historical Resources. U W W 4i 28.SD_YJBZLCANJY_311ffl���D : This ROW LEASE does not authorize the use of any lands located waterward of the mean or ordinary high water line of E 10 Packet Pg. 2922 FP.16.d T 2142229 E-11(1i 241377 p,# 19265 any lake, river, stream, creek, bay, estuary or other water body or the waters or the airspace the.reabove. E 0. .2 29.D_TjELLLA'jf,_ I2 AI This ROW LEASE is executed in duplicate originals each of which shall be considered an original for all purposes. 30.f,Z_TIHE_VliD_E_HS_T_A_N,D_IM: This ROW LEASE and the exhibits attached hereto set forth the entire understanding between the parties and shall only be amended.with the prior written approval of LESSOR. 31,hjALNjENAN_(X..QYjM_rHQ3Y�A�, T : LESSEE shall maintain the real property contained within the leased Premises in a state of good condition including, but not limited to, keeping the leased Premises free of trash or litter and meeting all building and safety codes in the location situated. z I- Ir- 32. j IBC s This ROW LEASE shall be governed by and 00 interpreted according to the laws of the State of Florida and venue for any action arising under this ROW LEASE shall be in Monroe County, Florida. The parties agree to U U mediate any disputes under this ROW LEASE, and further agree that it is not subject to 0 arbitration. 33. NELjjJjN_jLAEjjQn: Articles, subsections and other captions contained in this z ROW LEASE are for reference purposes only and are in no way intended to describe, < interpret, define or limit the scope, extent or intent of this ROW LEASE or any 2 z provisions thereof. 34. NOTICES. All notices given under this ROW LEASE shall be in writing and shall be 0 served by certified mail including, but not limited to notice of any violation served pursuant to Sec. 253.04, Florida Statutes,to the last address of the party to whom notice z is to be given, as designated by such party in writing. LESSOR, LESSEE, and SUB- z 0 LESSEE,hereby designate their addresses as follows: LESSOR: County Administrator 0 1100 Simonton Street Suite 205 Key West, Florida 33040 0 LESSEE: Key Marina Development, LLC E 5 2 Riley Road, Unit .155 .0 Packet Pg. 2923 FP.16.d Dw.-# :2142229 1`1104 2137*7 P0 1927 gj Celebration,Florida 34747 E 0. .2 SUB-LESSEE: Florida Keys Quality Foods,Inc. 125 Milano Drive Islamorada, Florida 33036 35.JURY TRIAL. In the event of a dispute, all parties hereto agree to waive the right to a jury trial. 36. ATTORNEY'S FEES AND COSTS. The LESSOR, LESSEE, and any subsequent SUB-LESSEE agree that in the event of any cause of action or Z administrative proceeding is initiated or defended by any party relative to the enforcement or interpretation of this lease, the prevailing party shall be entitled to 00 reasonable attorney's fees, court costs, investigative, and out-of-pocket expenses, as an award against the non-prevailing party, and shall include attorney's fees, court costs, investigative, and out-of-pocket expenses in appellate proceedings. Mediation 0 proceedings initiated and conducted pursuant to this ROW LEASE shall be in accordance with the Florida Rules of Civil Procedure and usual and customary procedures required by the Circuit Court of Monroe County. Z 37.BINDING EFFECT. The terms, covenants, conditions, and provisions of this ROW LEASE shall bind and inure to the benefit of the LESSOR and LESSEE and their respective legal representatives,successors, and assigns. 0 38.AUTHORITY. Each party represents and warrants to the other that the execution, Z delivery, and performance of this ROW LEASE have been duly authorized by all W (n necessary County and corporate action,as required by law. Z 0 U W W 0 W 0 U W W E 12 Packet Pg. 2924 I:w.-N :2142229 mks 21377 1119101 1928 IN �3 TI° ° I1"&S' WITEIU,017,1 flee par tiles bereto have set their hands and Burls the dkiy and above wfitten, M SE BOARD OF COUNTY(, -MISS10 ° �": ;�E tiTy "..m om. F'' (,:NRC) _.. __ ..._.. o .. _ .. M WITNESSES, KEY MARR4AT T : dL " -1 rT,L]G:C LESSEE _m.. ._ _.. w . .. _... .... ......... .. :._. x ..._._...w.. .._ _ ..... ._.._.--- Print c _.-._._.._-._.+ _.... _ . _... _.w .. _........... _....._ _..m..m.... lo ...w— _,.. ........w. _._. _. .._._. _ ._..m__m..... OL Sri i .: race"_ .........o..o�_.._ ...........o.ao_.._... .P._.e_..__....... . , Print Name' u O m„ _ u ini,Islam sio RUE COUNTY ATTORNEYS OFFICE JCR,R16Y D A.T FO U c PATRICIA EABLES ASSISTANT COUNTY ATTORNEY DATE: 0 13 Packet Pg. 2925 :21,42229 Ellol< 2+377 Pg# 1929 �3 IN WITNIESS WHE�11 IRE OF, the parties hereto have set tl'xei° hands and seals I day ,a above written, �$ a "m g m� pq ,ry q%�y�, BOA �: Off° COUNF °"COMMISSION ^� � N �1 ✓S ' � hw� � N.. '4.w"IXYb, ritt..,ntlM.%#.Yw.,AI�'&i,�, FLORIDA M a ESSI Ir- �. ._ ...._... _.__.. ..._ . W...... _ 00 BY" Ir- CD Print Name" WITNESSES.- FLORIDA KEYS QUALITY 1`001)S, INC, � ,r '...: . .��� rint�a^aa � .10c�,Print Nami ONROE COUNTY ATTORNEY°S OFFICE ROyED s To oR u PATRICIA EABLES ASSISTANT COUNTY ATTORNEY DATE: 1 17 13 Packet Pg. 2926 P.16.d 50.W. 1 34: ® 1,42229 � I CL E d a till- oils, r� _ t sEn b > z 00 . . , P �� �s I : s� 0 «�{ 'rye" •em,a n 100 d yy tv C" �^yP.a Pa'P�F � � f✓"dm. �' 7 i kk.UM A11 6 � 6y� b✓ 'Ala 6 p 14 pm 1 Gr 0 lit { 6 is gill 1 0 s M w Rau alga w 4J .. rJ +''a zmsN.6'k n✓N,amPJu,mn'qunPoTo A o-.uuM aw�Pb°,b AN mnam�".mv¢ce.flax Rlwm F nmvt k'dtt Nwen„Wu A—WemKioy yp wpw aNuw®mmm, yy qh^��mPgMw.",arh is and 0@'dbr IM"�^'m�4rrJPM"p`d Mmm wWPoi•b.Pm M.G b')M mP.'WdWIVMNW.Muµwlbd a�w01 m�NR ft—NJu­0 1111,11 wntl q Bw.Wr4 fdu qk�e w4�n sue✓," w KEY MARINA DEVELOPMENT PROOOS' ED, SITE i pl xhl'6it Ar Packet Pg. 2927 SKETCH AND DESCRIPTION A PORMON'OF AMENDMENT TO LEASE (O.R.S.2M,PG.'i'34 M.C.R.) KEY LARGO.MONROE CONTY,FLORIDA 91 SURVEYOR'S NOTES: c1IM 1377 2Pg r�Icli 2�377 1 g1# 1931 > 1. Reproductions of this Sketch are not valid without the signature and the original raised seal of a Florida licensed surveyor and mapper. 2. No Title Opinion or Abstract to the subject property has been provided. It is possible that there are Deeds, Easements. or other Instruments (recorded or unrecorded) which may affect 2 the subject property. No search of the Public Records has been mode by the Surveyor, 3. The land description shown hereon was prepared by the Surveyor. .� 4. Bearings shown hereon are based on the adjoining plat of KEY LARGO NORTH. recorded in Plat Hook 7. Pogo 22 of the Public Records of Monroe County, Florida with the northeasterly oo right—of--way line of Second Avenue having a bearing of N 44'37'16" W. 5. Data shown hereon was compiled from Instrument(s) of record and does not constitute a boundary survey. 6. Abbreviation Legend: F.B. - Field Book; LB. - Licensed Business; M.C.R. - Monroe County Records; No. = Number; O.R.B. - Official Records Book; P.B. - Plot Book; PG. - Page; P.L.S. Professional Land Surveyor; P/0 - a Portion of; P.O.B. = Point of Beginning; P.O.C. Point of Commencement; S.F. - Square Feet. CERTIFICATION: I HEREBY CERTIFY that the attached Sketch and Description of the hereon described property is true and correct to the best of my knowledge and belief as prepared under my direction. I FURTHER W CERTIFY that this Sketch and Description meets the Standards of Practice set forth in Chapter W--17, Florida Administrative Code, pursuant to Section 472-027, Florid ?Stotutes. I/ (n Date: __ I G ;m f K CkE-A--T'OW, P.L.S. Florida Registration No. 5328 AVIROM & ASSOCIATES, INC. L.B. No. 3300 NOT VAUD WITHOUT SHEETS 1-8 U REVISIONS AWRON d ASSOCIAT S,INC. JOB#: 9881.E oe'&Assp� SURVEYING&MAPPING SCALE: 1-=W 3tJ$iN 2ridAtiFJVt1E sum 102 CJA'rE; 12AJT13016 � a 9 BOCA ROCK FLOR=3Ji32 BY: S.R.L. (01)392-M.PAK(SPI=4-712$ WVAWA7 coat C ;SAM. xvnaaar�Assixurtx,wc,mrapts„ aia.�aaafma+a,amjt. + aaeav4ac F6. tORE PS. ,V � S imr 1 OF 3 Exhibit" B, Page 1 of 3 Packet Pg. 2928 U SKETCH AND DESCRIPTION A PORTION OF AMENDMENT TO LEASE (ORB.2M9,PCB.i634,WC.R.) KEY LARGO,MONROE COUNIY,FLORIDA 0. r1t:,,:# 2142229 Blot 2377 Pg# 1932 > LAND DESCRIPTION: a A portion of an Amendment to tease, as recorded in Official Records Book 2539, Page 1634, of the Public Records of Monroe County, Florida, described as follows: A portion of Second Avenue adjacent to Lot 1, Block 4, MANDALAY, according to the Plot thereof, as recorded in Plat Book 1, Page 194, of the Public Records of Monroe County, Florida, described as follows: COMMENCE at the intersection of the centerline of sold Second Avenue with the centerline of East Second Street, according to said Plot; thence S 4437'16" E along the centerline of said Second Avenue, a distance of 25.00 feet to a point on the southwesterly projection of the southeasterly right—of—way line of East Second Street; thence N 45'17'46" E along said southwesterly projection z of East Second Street, 9.60 feet to a line being 20.40 feet southwesterly of and parallel with the northeasterly right—of—way line of said Second Avenue, said line also being the southwesterly limits of said Amendment to Lease; thence S 4437'16" E along said parallel fine and sold southwesterly limits of said Amendment to Lease, 19.99 feet to a point on the southeasterly limits of a proposed cul—de—sac and a point on o non—tangent curve, concave to the east, having a radius of 20.75 feet and a central angle of 17tO'O6" (a radial line bears S 75`05'47" E from said point), said point also being the POINT OF THE Bl:GtiVNING; thence northerly along sold southeasterly limits of proposed cul-de—sac along the arc of and sold non—tangent curve, a distance of 6.28 feet; (the next three courses and distances being along said southeasterly limits of proposed cul—de—sac) thence N 47`2106" E, 3.52 feet; thence N 4327'45" E. 3.27 feet to a point on a non-tangent curve, concave to the northwest, having a radius of 50.00 feet and a central angle of 10'56'18" (a radial line bears S 482443" E to sold paint); thence northeasterly along the arc of said non--tangent curve a distance of 9.55 feet to the northeasterly line of said Amendment to Lease and a point of cusp with a non—tangent curve, concave to the northeast, having a radius"of 25.00 feet and a central angle of 2D'34'30" (a radial I'ne bears S 65'5714 W from sold point); thence southeasterly along said northeasterly line of Amendment to Lease and the arc of said non—tangent curve, a distance of 8.98 feet to a point of tangency, thence S W37'16" E along sold northeasterly line of Amendment to Lease also being said northeasterly right—of—way line of said Second Avenue, a distance of 151.90 feet to the southeasterly limits of sold Amendment to Lease; thence S 45'2VW W along sold cis southeasterly limits of sold Amendment to Lease, a distance of 20.40 feet to sold line being 20.40 feet southwesterly of and parallel with the northeasterly right—of-way line of sold Second U Avenue and sold southwesterly limits of said Amendment to Lease; thence N 4437'16" W, along sold parallel line and said southwesterly limits of sold Amendment to Lease, a distance of 156.84 (n feet to the POINT OF BEG;NNING. Sold lands lying and situate In Key Largo, Monroe County, Florida, containing 3,249 square feet (0.075 acres), more or less. NOT VALiD WITHOUT SHEETS 1-3 U REVISIONS AWROM 8 ASSOCIATES,JNC JOB* 9881.5 ads AS$* SURVEWIVG&MAPPING SCALE I*xs W 50&W.24dAV9rNuf Sum roe DAM 17lp7MS � nn 80CA RATaN.FGaRM 33= SILL E — . ate_ wnw.A t}YtlK 4"VV_LYxw i �}3P4-Tr23 CWE-CM11 a" "ataa+�'r` �p,1VurouttiusAo�rts�rn�N F.B. HM PG, �fuOMNItllk OtAVAQhtL�TaxMC 3We Vftwr,a�a. «eoAi.""act.to 1 SHC�i: 2 OF 3 � — Exhibit: H, Page 2 of 3 Packet Pg. 2929 0 P.16.d 1:1m.-N :21,422.29 Idol 24377 Pq# 1933 Ift SKETCH AND DESCR1PilC}N A PORTION OF AMENDMENT TO CEASE (0.R9.2p ,PG.'!o,u"M.C.R.) KEY LARGO,MONROE:COUNTY,FLORIDA `. 50_ 0. i 0 56 18 __....... ,. 0 30 50 �, � C®9.55' ��` ��•��� `� � _ GRAPHjc scAc>=IN FEET' N 43 27 45 E �,� soUTHEASTERLY 3.27' LIMITS PROPOSED c$ , CUL-DE—SAC N4702�ie'06"E 3.52' ` POINT OF CUSP `, y ♦ ! ��irftf'� roP.O.C. °1 � �. IN TERNE _ Ir CENTERLINE OF �= C400SECOND AVENUEAND q7•d'• � EAST SECOND 57RTE �` ♦`� L-=8.98'O � �s S . ~� os,� Eihia;lERt.Y �►� 44'37'16 E 19.99 NE OF LIE AMENDMENT StK)7HWESIEER.Y LIMITS TO LEASE AMENDMENT 70 EEASE . ;t� (O.R.9. 2539/16M M.C.R.) {O.R.e. 2939/1634 M.QR.) '� R=20.75' P.O.B. `. L 6.28 '�, 4, ����o s Lv '` ,� ��1C►�`� ..>' �9s ad„O� �'� '�'.y�9�.. � cis ass 20.40' SOl1TELWESiERLY �Z. OF AND PARALLELWITH `lam NORINEASTERI.Y RIGHT--OF-WAY cZ SECOND AVENUE: n Zl. vG 1 NOT VALID WITHOUT SHEETS 1-3 0 REVISIONS AVIROM&ASSOCIATES,ING 9881-6 snsSO SURVEYING&MAPPING WALL- ru3c, +r v„ti W I IndAYENU$SURE102 DATA Im712618 � Q BOLA RATON.FLORUM 33432 BY: SIi L TEL(Sat)39 2$R.''FAX(WI)3"7125 ¢ wwwAYtROMSURYLY5 m CHECK : BAK it �yo,��v ttt,wocu ru�ar Rsenea FJL ,NONE PG. 35rr,�m ts+n. sl.ett�vousuT ra antslouNrwrier «ssp�a our n� SHEEP. 3 OF 3 Exhibit: B, Page 3 of 3 1'10,IdR01= i'OUNTY CIFFICIAL RECORDS Packet Pg. 2930