Common use of Hypothecation Clause in Contracts

Hypothecation. (a) In order to secure the full and punctual payment and performance of all present and future Indebtedness, the Mortgagor does by these presents specially mortgage, affect, hypothecate, pledge and assign unto and in favor of the Lender, to inure to the use and benefit ofthe Lender, all of Mortgagor’s right, title and interest in and to the following described property, to-wit: (1) The Mineral Properties, together with all rents, issues, profits, products and proceeds, whether now or hereafter existing or arising, from the Mineral Properties. (2) The Mortgagor’s rights in the improvements and other constructions now or hereafter located on the Mineral Properties, including without limitation the Equipment, to the extent (i) any such property should constitute or be deemed to constitute immovable property for the purposes of Louisiana law, including without limitation any buildings, platforms, structures, towers, rigs or other immovable property or component parts thereof, or (ii) any such property is otherwise susceptible of mortgage pursuant to Louisiana Civil Code Article 3286 or Louisiana Mineral Code Article 203. The descriptions of the Mineral Properties contained in Exhibit A are amplified by the explanations contained in Exhibit 1 attached hereto and made a part hereof. All of the foregoing property and rights covered by and subject to this Mortgage are herein collectively referred to as the “Mortgaged Property.” SUBJECT, however, the condition that the Lender shall not be liable in any respect for the performance of any covenant or obligation of the Mortgagor in respect of the Mortgaged Property. The Mortgaged Property is to remain so specially mortgaged, affected and hypothecated unto and in favor of Lender until the full and final payment or discharge of the Indebtedness, and Mortgagor is herein and hereby bound and obligated not to sell or alienate the Mortgaged Property to the prejudice of this act. (b) In the event that the Mortgagor acquires (by operation of law or otherwise) additional undivided interests in some or all of the Mineral Properties, this Mortgage shall automatically encumber such additions or increases to the Mortgagor’s interest in the Mineral Properties without need of further act or document. Further, in the event the Mortgagor becomes the owner of an interest in any part of the land described either in Exhibit A or in the documents described in Exhibit A or otherwise subject to or covered by the Mineral Properties, this Mortgage shall automatically encumber such ownership interest of the Mortgagor without need of further act or document.

Hypothecation. (a) In order to secure the full and punctual payment and performance of all present and future Indebtedness, the Mortgagor Borrower does by these presents specially mortgage, affect, hypothecate, pledge and assign unto and in favor of the Lender, to inure to the use and benefit ofthe Lender, all of Mortgagor’s right, title and interest in and to the following described property, to-wit: (1) The Mineral Properties, together with all rents, issues, profits, products and proceeds, whether now or hereafter existing or arising, from the Mineral Properties.; and (2) The MortgagorBorrower’s rights in the improvements and other constructions now or hereafter located on the Mineral Properties, including without limitation the Equipment, to the extent (i) any such property should constitute or be deemed to constitute immovable property for the purposes of Louisiana law, including without limitation any buildings, platforms, ▇▇▇▇▇, structures, towers, rigs or other immovable property or component parts thereof, or (ii) any such other property related to the Mineral Properties that is otherwise susceptible of mortgage pursuant to Louisiana Civil Code Article 3286 or Louisiana Mineral Code Article 203. The descriptions of the Mineral Properties contained in Exhibit A are amplified by the explanations contained in Exhibit 1 attached hereto and made a part hereof. All of the foregoing property and rights covered by and subject to this Mortgage are herein collectively referred to as the “Mortgaged Property.” SUBJECT, however, to (i) the restrictions, exceptions, reservations, conditions, limitations and other matters, if any, set forth or specified in the specific descriptions of such properties and interests in Exhibit A, and (ii) the condition that the Lender shall not be liable in any respect for the performance of any covenant or obligation of the Mortgagor Borrower in respect of the Mortgaged Property. The Mortgaged Property is to remain so specially mortgaged, affected and hypothecated unto and in favor of the Lender until the full and final payment or discharge of the Indebtedness, and Mortgagor the Borrower is herein and hereby bound and obligated not to sell or alienate the Mortgaged Property to the prejudice of this act. (b) In the event that the Mortgagor Borrower acquires (by operation of law or otherwise) additional undivided interests in some or all of the Mineral Properties, this Mortgage shall automatically encumber such additions or increases to the MortgagorBorrower’s interest in the Mineral Properties without need of further act or document. Further, in the event the Mortgagor Borrower becomes the owner of an interest in any part of the land described either in Exhibit A or in the documents described in Exhibit A or otherwise subject to or covered by the Mineral Properties, this Mortgage shall automatically encumber such ownership interest of the Mortgagor Borrower without need of further act or document.

Hypothecation. (a) In order to secure the full and punctual payment and performance of all present and future Indebtedness, the Mortgagor Borrower does by these presents specially mortgage, affect, hypothecate, pledge and assign unto and in favor of the Lender, to inure to the use and benefit ofthe of the Lender, all of Mortgagor’s right, title and interest in and to the following described property, to-wit: (1) The Mineral Properties, together with all rents, issues, profits, products and proceeds, whether now or hereafter existing or arising, from the Mineral Properties. (2) The Mortgagor’s Borrower's rights in the improvements and other constructions now or hereafter located on the Mineral Properties, including without limitation the Equipment, to the extent (i) any such property should constitute or be deemed to constitute immovable property for the purposes of Louisiana law, including without limitation any buildings, platforms, structures, towers, rigs or other immovable property or component parts thereof, or (ii) any such property that is otherwise susceptible of mortgage pursuant to Louisiana Civil Code Article 3286 or Louisiana Mineral Code Article 203. The descriptions of the Mineral Properties contained in Exhibit A "A" are amplified qualified by the explanations contained in Exhibit 1 attached hereto and made a part hereof. All of the foregoing property and rights covered by and subject to this Mortgage are herein collectively referred to as the “"Mortgaged Property.” " SUBJECT, however, to (i) the restrictions, exceptions, reservations, conditions, limitations and other matters, if any, set forth or specified in the specific descriptions of such properties and interests in Exhibit "A" (including all presently existing royalties, overriding royalties, payments out of production and other burdens which are specified in Exhibit "A" and which are taken into consideration in computing any percentage, decimal or fractional interests set forth in Exhibit "A"), and (ii) the condition that the Lender shall not be liable in any respect hereunder for the performance of any covenant or obligation of the Mortgagor Borrower in respect of the Mortgaged Property. The Mortgaged Property is to remain so specially mortgaged, affected and hypothecated unto and in favor of Lender until the full and final payment or discharge of the Indebtedness, and Mortgagor Borrower is herein and hereby bound and obligated not to sell or alienate the Mortgaged Property to the prejudice of this act. (b) In the event that the Mortgagor Borrower acquires (by operation of law or otherwise) additional undivided interests in some or all of the Mineral Properties, this Mortgage shall automatically encumber such additions or increases to the Mortgagor’s Borrower's interest in the Mineral Properties without need of further act or document. Further, in the event the Mortgagor Borrower becomes the owner of an interest in any part of the land described either in Exhibit A or in the documents described in Exhibit A or otherwise subject to or covered by the Mineral Properties, this Mortgage shall automatically encumber such ownership interest of the Mortgagor Borrower without need of further act or document.