EXHIBIT 10.19
OBLIGATIONS SECURED HEREBY PROVIDE FOR
A FLUCTUATING INTEREST RATE
AMENDED AND RESTATED
MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF RENTS
AND LEASES AND FIXTURE FILING (SOUTH CAROLINA)
BY AND FROM
THE PANTRY, INC., "MORTGAGOR"
TO
FIRST UNION NATIONAL BANK,
IN ITS CAPACITY AS AGENT, "MORTGAGEE"
DATED AS OF OCTOBER 23, 1997
THE SECURED PARTY (MORTGAGEE) DESIRES THIS FIXTURE FILING
TO BE INDEXED AGAINST THE RECORD OWNER OF THE REAL ESTATE
DESCRIBED HEREIN
PREPARED BY, RECORDING REQUESTED BY,
AND WHEN RECORDED MAIL TO:
O'MELVENY & ▇▇▇▇▇ LLP
▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇
ATTENTION: F. ▇▇▇▇▇▇ ▇▇▇▇▇▇, ESQ.
FILE 154,607-004
AMENDED AND RESTATED
MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF RENTS
AND LEASES AND FIXTURE FILING (SOUTH CAROLINA)
THIS AMENDED AND RESTATED MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF
RENTS AND LEASES AND FIXTURE FILING (South Carolina) (this "MORTGAGE") is dated
as of October 23, 1997, by and from THE PANTRY, INC., a Delaware corporation
("MORTGAGOR"), whose address is ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇, to FIRST UNION NATIONAL BANK, as Agent ("AGENT") for the lenders party to
the Credit Agreement (defined below) (such lenders, together with their
respective successors and assigns, collectively, the "LENDERS"), having an
address at ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ (Agent,
together with its successors and assigns, "MORTGAGEE").
R E C I T A L S
A. Mortgagee is the assignee, owner and holder of those certain mortgages
described on Exhibit B hereto (the "ORIGINAL MORTGAGES") and the obligations
secured thereby, which encumber the properties described on Exhibit A hereto.
B. Mortgagee and Mortgagor now desire to amend and restate the Original
Mortgages to contain all of the terms and conditions contained herein and in the
Credit Agreement.
NOW, THEREFORE, Mortgagee and Mortgagor hereby amend and restate the
Original Mortgages in their entirety to provide as follows:
ARTICLE 1
DEFINITIONS
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SECTION 1.1 DEFINITIONS. All capitalized terms used herein without
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definition shall have the respective meanings ascribed to them in that certain
Credit Agreement dated as of even date herewith (as amended, supplemented or
otherwise modified from time to time, the "CREDIT AGREEMENT") among Mortgagor,
the Lenders, Canadian Imperial Bank of Commerce, as Syndication Agent, and
Mortgagee. As used herein, the following terms shall have the following
meanings:
1.1.1 "INDEBTEDNESS": (1) All indebtedness of Mortgagor to Mortgagee
and the Lenders, including, without limitation, the sum of all (a) principal,
interest and other amounts evidenced or secured by the Loan Documents, and (b)
principal, interest and other amounts which may hereafter be loaned by Mortgagee
or any of the Lenders under or in connection with
the Credit Agreement or any of the other Loan Documents, whether evidenced by a
promissory note or other instrument which, by its terms, is secured hereby, and
(2) all other indebtedness, obligations and liabilities now or hereafter
existing of any kind of Mortgagor to Mortgagee or any of the Lenders under
documents which recite that they are intended to be secured by this Mortgage.
1.1.2 "MORTGAGED PROPERTY": All of Mortgagor's interest in (1) the
fee interest in the real property described in Exhibit A attached hereto and
incorporated herein by this reference, together with any greater estate therein
as hereafter may be acquired by Mortgagor (the "LAND"), (2) all improvements now
owned or hereafter acquired by Mortgagor, now or at any time situated, placed or
constructed upon the Land (the "IMPROVEMENTS"), (3) all materials, supplies,
equipment, apparatus and other items of personal property now owned or hereafter
acquired by Mortgagor and now or hereafter attached to, installed in or used in
connection with any of the Improvements or the Land, and water, gas, electrical,
storm and sanitary sewer facilities and all other utilities whether or not
situated in easements (the "FIXTURES"), (4) all right, title and interest of
Mortgagor in and to all goods, accounts, general intangibles, instruments,
documents, chattel paper and all other personal property of any kind or
character, including such items of personal property as defined in the UCC
(defined below), now owned or hereafter acquired by Mortgagor and now or
hereafter affixed to, placed upon, used in connection with, arising from or
otherwise related to the Land and Improvements (the "PERSONALTY"), (5) all
reserves, escrows or impounds required under the Credit Agreement and all
deposit accounts maintained by Mortgagor with respect to the Mortgaged Property,
(6) all leases, licenses, concessions, occupancy agreements or other agreements
(written or oral, now or at any time in effect) which grant to any Person a
possessory interest in, or the right to use, all or any part of the Mortgaged
Property, together with all related security and other deposits (the "LEASES"),
(7) all of the rents, revenues, income, proceeds, profits, security and other
types of deposits, and other benefits paid or payable by parties to the Leases
for using, leasing, licensing, possessing, operating from, residing in, selling
or otherwise enjoying the Mortgaged Property (the "RENTS"), (8) all other
agreements, such as construction contracts, architects' agreements, engineers'
contracts, utility contracts, maintenance agreements, management agreements,
service contracts, permits, licenses, certificates and entitlements in any way
relating to the construction, use, occupancy, operation, maintenance, enjoyment
or ownership of the Mortgaged Property (the "PROPERTY AGREEMENTS"), (9) all
rights, privileges, tenements, hereditaments, rights-of-way, easements,
appendages and appurtenances appertaining to the foregoing, (10) all accessions,
replacements and substitutions for any of the foregoing and all proceeds
thereof, (11) all insurance policies, unearned premiums therefor and proceeds
from such policies covering any of the above property now or hereafter acquired
by Mortgagor, and (12) all of Mortgagor's right, title and interest in and to
any awards, remunerations, reimbursements, settlements or compensation
heretofore made or hereafter to be made by any governmental authority pertaining
to the Land, Improvements, Fixtures or Personalty. As used in this Mortgage,
the term "MORTGAGED PROPERTY" shall mean all or, where the context permit or
requires, any portion of the above or any interest therein.
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1.1.3 "OBLIGATIONS": All of the agreements, covenants, conditions,
warranties, representations and other obligations of Mortgagor (including,
without limitation, the obligation to repay the Indebtedness) under the Credit
Agreement and the other Loan Documents.
1.1.4 "UCC": The Uniform Commercial Code of South Carolina or, if
the creation, perfection and enforcement of any security interest herein granted
is governed by the laws of a state other than South Carolina, then, as to the
matter in question, the Uniform Commercial Code in effect in that state.
ARTICLE 2
GRANT
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SECTION 2.1 GRANT. To secure the full and timely payment of the
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Indebtedness and the full and timely performance of the Obligations, Mortgagor
MORTGAGES, GRANTS, BARGAINS, ASSIGNS, SELLS and CONVEYS, to Mortgagee the
Mortgaged Property, subject, however, to the Permitted Encumbrances, TO HAVE AND
TO HOLD the Mortgaged Property to Mortgagee, and Mortgagor does hereby bind
itself, its successors and assigns to WARRANT AND FOREVER DEFEND the title to
the Mortgaged Property unto Mortgagee.
SECTION 2.2 FUTURE ADVANCES. This Mortgage is given to secure all
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present and future Indebtedness of Mortgagor to Mortgagee. The period in which
future Indebtedness may be incurred and secured by this Mortgage is the period
between the date hereof and that date which is ten years from the date hereof.
The amount of present Indebtedness secured by this Mortgage is Seventy-Five
Million Dollars ($75,000,000), and the maximum principal amount, including
present and future Indebtedness that may be secured by this Mortgage at any one
time is One Hundred Fifty Million Dollars ($150,000,000). Any additional
amounts advanced by Mortgagee pursuant to other provisions of this Mortgage or
other Loan Documents shall be deemed necessary expenditures for the protection
of the Mortgaged Property. Mortgagor need not sign any instrument or notation
evidencing or stipulating that future advances are secured by this Mortgage.
ARTICLE 3
WARRANTIES, REPRESENTATIONS AND COVENANTS
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Mortgagor warrants, represents and covenants to Mortgagee as follows:
SECTION 3.1 TITLE TO MORTGAGED PROPERTY AND LIEN OF THIS INSTRUMENT.
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Mortgagor owns the Mortgaged Property free and clear of any liens, claims or
interests, except the Permitted Encumbrances. This Mortgage creates valid,
enforceable first priority liens and security interests against the Mortgaged
Property.
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SECTION 3.2 FIRST LIEN STATUS. Mortgagor shall preserve and protect
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the first lien and security interest status of this Mortgage and the other Loan
Documents. If any lien or security interest other than the Permitted
Encumbrances is asserted against the Mortgaged Property, Mortgagor shall
promptly, and at its expense, (a) give Mortgagee a detailed written notice of
such lien or security interest (including origin, amount and other terms), and
(b) pay the underlying claim in full or take such other action so as to cause it
to be released or contest the same in compliance with the requirements of the
Credit Agreement (including the requirement of providing a bond or other
security satisfactory to Mortgagee).
SECTION 3.3 PAYMENT AND PERFORMANCE. Mortgagor shall pay the
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Indebtedness when due under the Loan Documents and shall perform the Obligations
in full when they are required to be performed.
SECTION 3.4 REPLACEMENT OF FIXTURES AND PERSONALTY. Mortgagor shall
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not, without the prior written consent of Mortgagee, permit any of the Fixtures
or Personalty to be removed at any time from the Land or Improvements, unless
the removed item is removed temporarily for maintenance and repair or, if
removed permanently, is obsolete and is replaced by an article of equal or
better suitability and value, owned by Mortgagor subject to the liens and
security interests of this Mortgage and the other Loan Documents, and free and
clear of any other lien or security interest except such as may be permitted
under the Credit Agreement or first approved in writing by Mortgagee.
SECTION 3.5 INSPECTION. Mortgagor shall permit Mortgagee and the
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Lenders, and their respective agents, representatives and employees, upon
reasonable prior notice to Mortgagor, to inspect the Mortgaged Property and all
books and records of Mortgagor located thereon, and to conduct such
environmental and engineering studies as Mortgagee or the Lenders may require,
provided that such inspections and studies shall not materially interfere with
the use and operation of the Mortgaged Property.
SECTION 3.6 OTHER COVENANTS. All of the covenants in the Credit
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Agreement are incorporated herein by reference and, together with covenants in
this Article, shall be covenants running with the land.
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SECTION 3.7 CONDEMNATION AWARDS AND INSURANCE PROCEEDS.
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3.7.1 Condemnation Awards. Mortgagor assigns all awards and
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compensation to which it is entitled for any condemnation or other taking, or
any purchase in lieu thereof, to Mortgagee and authorizes Mortgagee to collect
and receive such awards and compensation and to give proper receipts and
acquittances therefor, subject to the terms of the Credit Agreement.
3.7.2 Insurance Proceeds. Mortgagor assigns to Mortgagee all
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proceeds of any insurance policies insuring against loss or damage to the
Mortgaged Property. Mortgagor
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authorizes Mortgagee to collect and receive such proceeds and authorizes and
directs the issuer of each of such insurance policies to make payment for all
such losses directly to Mortgagee, instead of to Mortgagor and Mortgagee
jointly.
ARTICLE 4
DEFAULT AND FORECLOSURE
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SECTION 4.1 REMEDIES. If an Event of Default exists, Mortgagee may,
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at Mortgagee's election, exercise any or all of the following rights, remedies
and recourses:
4.1.1 Acceleration. Declare the Indebtedness to be immediately due
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and payable, without further notice, presentment, protest, notice of intent to
accelerate, notice of acceleration, demand or action of any nature whatsoever
(each of which hereby is expressly waived by Mortgagor), whereupon the same
shall become immediately due and payable.
4.1.2 Entry on Mortgaged Property. Enter the Mortgaged Property and
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take exclusive possession thereof and of all books, records and accounts
relating thereto or located thereon. If Mortgagor remains in possession of the
Mortgaged Property after an Event of Default and without Mortgagee's prior
written consent, Mortgagee may invoke any legal remedies to dispossess
Mortgagor.
4.1.3 Operation of Mortgaged Property. Hold, lease, develop, manage,
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operate or otherwise use the Mortgaged Property upon such terms and conditions
as Mortgagee may deem reasonable under the circumstances (making such repairs,
alternations, additions and improvements and taking other actions, from time to
time, as Mortgagee deems necessary or desirable), and apply all Rents and other
amounts collected by Mortgagee in connection therewith in accordance with the
provisions of Section 4.7.
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4.1.4 Foreclosure and Sale. Institute proceedings for the complete
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foreclosure of this Mortgage, by judicial action, in which case the Mortgaged
Property may be sold for cash or credit in one or more parcels. With respect to
any notices required or permitted under the UCC, Mortgagor agrees that five
days' prior written notice shall be deemed commercially reasonable. At any such
sale by virtue of any judicial proceedings, or any other legal right, remedy or
recourse, the title to and right of possession of any such property shall pass
to the purchaser thereof, and to the fullest extent permitted by law, Mortgagor
shall be completely and irrevocably divested of all of its right, title,
interest, claim, equity, equity of redemption, and demand whatsoever, either at
law or in equity, in and to the property sold and such sale shall be a perpetual
bar both at law and in equity against Mortgagor, and against all other Persons
claiming or to claim the property sold or any part thereof, by, through or under
Mortgagor. Mortgagee or any of the Lenders may be a purchaser at such sale. If
Mortgagee is the highest bidder, Mortgagee may credit the portion of the
purchase price that would be distributed to
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Mortgagee against the Indebtedness in lieu of paying cash. In the event this
Mortgage is foreclosed by judicial action, appraisement of the Mortgaged
Property is waived.
4.1.5 Receiver. Make application to a court of competent
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jurisdiction for, and obtain from such court as a matter of strict right and
without notice to Mortgagor or regard to the adequacy of the Mortgaged Property
for the repayment of the Indebtedness, the appointment of a receiver of the
Mortgaged Property, and Mortgagor irrevocably consents to such appointment. Any
such receiver shall have all the usual powers and duties of receivers in similar
cases, including the full power to rent, maintain and otherwise operate the
Mortgaged Property upon such terms as may be approved by the court, and shall
apply such Rents in accordance with the provisions of Section 4.7.
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4.1.6 Other. Exercise all other rights, remedies and recourses
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granted under the Loan Documents or otherwise available at law or in equity.
SECTION 4.2 SEPARATE SALES. The Mortgaged Property may be sold in
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one or more parcels and in such manner and order as Mortgagee in its sole
discretion may elect; the right of sale arising out of any Event of Default
shall not be exhausted by any one or more sales.
SECTION 4.3 REMEDIES CUMULATIVE, CONCURRENT AND NONEXCLUSIVE.
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Mortgagee and the Lenders shall have all rights, remedies and recourses granted
in the Loan Documents and available at law or equity (including the UCC), which
rights (a) shall be cumulated and concurrent, (b) may be pursued separately,
successively or concurrently against Mortgagor or others obligated under the
Loan Documents, or against the Mortgaged Property, or against any one or more of
them, at the sole discretion of Mortgagee or the Lenders, (c) may be exercised
as often as occasion therefor shall arise, and the exercise or failure to
exercise any of them shall not be construed as a waiver or release thereof or of
any other right, remedy or recourse, and (d) are intended to be, and shall be,
nonexclusive. No action by Mortgagee or the Lenders in the enforcement of any
rights, remedies or recourses under the Loan Documents or otherwise at law or
equity shall be deemed to cure any Event of Default.
SECTION 4.4 RELEASE OF AND RESORT TO COLLATERAL. Mortgagee may
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release, regardless of consideration and without the necessity for any notice to
or consent by the holder of any subordinate lien on the Mortgaged Property, any
part of the Mortgaged Property without, as to the remainder, in any way
impairing, affecting, subordinating or releasing the lien or security interest
created in or evidenced by the Loan Documents or their status as a first and
prior lien and security interest in and to the Mortgaged Property. For payment
of the Indebtedness, Mortgagee may resort to any other security in such order
and manner as Mortgagee may elect.
SECTION 4.5 WAIVER OF REDEMPTION, NOTICE AND MARSHALLING OF ASSETS.
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To the fullest extent permitted by law, Mortgagor hereby irrevocably and
unconditionally waives and
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releases (a) all benefit that might accrue to Mortgagor by virtue of any present
or future statute of limitations or law or judicial decision exempting the
Mortgaged Property from attachment, levy or sale on execution or providing for
any stay of execution, exemption from civil process, redemption or extension of
time for payment, (b) all notices of any Event of Default or of Mortgagee's
election to exercise or the actual exercise of any right, remedy or recourse
provided for under the Loan Documents, and (c) any right to a marshalling of
assets or a sale in inverse order of alienation.
SECTION 4.6 DISCONTINUANCE OF PROCEEDINGS. If Mortgagee or the
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Lenders shall have proceeded to invoke any right, remedy or recourse permitted
under the Loan Documents and shall thereafter elect to discontinue or abandon it
for any reason, Mortgagee or the Lenders shall have the unqualified right to do
so and, in such an event, Mortgagor, Mortgagee, and the Lenders shall be
restored to their former positions with respect to the Indebtedness, the
Obligations, the Loan Documents, the Mortgaged Property and otherwise, and the
rights, remedies, recourses and powers of Mortgagee and the Lenders shall
continue and if the right, remedy or recourse had never been invoked, but no
such discontinuance or abandonment shall waive any Event of Default which may
then exist or the right of Mortgagee or the Lenders thereafter to exercise any
right, remedy or recourse under the Loan Documents for such Event of Default.
SECTION 4.7 ALLOCATION OF PROCEEDS. The proceeds of any sale of, and
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the Rents and other amounts generated by the holding, leasing, management,
operation or other use of the Mortgaged Property, shall be applied by Mortgagee
(or the receiver, if one is appointed) in the following order unless otherwise
required by applicable law:
4.7.1 to the payment of the costs and expenses of taking possession
of the Mortgaged Property and of holding, using, leasing, repairing, improving
and selling the same, including, without limitation (1) receiver's fees and
expenses, including the repayment of the amounts evidenced by any receiver's
certificates, (2) court costs, (3) attorneys' and accountants' fees and
expenses, and (4) costs of advertisement;
4.7.2 to the payment of the Indebtedness and performance of the
Obligations in such manner and order of preference as Mortgagee in its sole
discretion may determine; and
4.7.3 the balance, if any, to the payment of the Persons legally
entitled thereto.
SECTION 4.8 OCCUPANCY AFTER FORECLOSURE. Any sale of the Mortgaged
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Property or any part thereof in accordance with Section 4.1.4 will divest all
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right, title and interest of Mortgagor in and to the property sold. Subject to
applicable law, any purchaser at a foreclosure sale will receive immediate
possession of the property purchased. If Mortgagor retains possession of such
property or any part thereof subsequent to such sale, Mortgagor will be
considered a tenant at sufferance of the purchaser, and will, if Mortgagor
remains in possession
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after demand to remove, be subject to eviction and removal, forcible or
otherwise, with or without process of law.
SECTION 4.9 ADDITIONAL ADVANCES AND DISBURSEMENTS; COSTS OF
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ENFORCEMENT.
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4.9.1 If any Event of Default exists, Mortgagee and each of the
Lenders shall have the right, but not the obligation, to cure such Event of
Default in the name and on behalf of Mortgagor. All sums advanced and expenses
incurred at any time by Mortgagee or any Lender under this Section, or otherwise
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under this Mortgage or any of the other Loan Documents or applicable law, shall
bear interest from the date that such sum is advanced or expense incurred, to
and including the date of reimbursement, computed at the rate or rates at which
interest is then computed on the Indebtedness, and all such sums, together with
interest thereon, shall be secured by this Mortgage.
4.9.2 Mortgagor shall pay all expenses (including reasonable
attorneys' fees and expenses) of or incidental to the perfection and enforcement
of this Mortgage and the other Loan Documents, or the enforcement, compromise or
settlement of the Indebtedness or any claim under this Mortgage and the other
Loan Documents, and for the curing thereof, or for defending or asserting the
rights and claims of Mortgagee in respect thereof, by litigation or otherwise.
SECTION 4.10 NO MORTGAGEE IN POSSESSION. Neither the enforcement of
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any of the remedies under this Article, the assignment of the Rents and Leases
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under Article 5, the security interests under Article 6, nor any other remedies
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afforded to Mortgagee under the Loan Documents, at law or in equity shall cause
Mortgagee or any Lender to be deemed or construed to be a mortgagee in
possession of the Mortgaged Property, to obligate Mortgagee or any Lender to
lease the Mortgaged Property or attempt to do so, or to take any action, incur
any expense, or perform or discharge any obligation, duty or liability
whatsoever under any of the Leases or otherwise.
ARTICLE 5
ASSIGNMENT OF RENTS AND LEASES
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SECTION 5.1 ASSIGNMENT. In furtherance of and in addition to the
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assignment made by Mortgagor in Section 2.1 of this Mortgage, Mortgagor hereby
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absolutely and unconditionally assigns, sells, transfers and conveys to
Mortgagee all of its right, title and interest in and to all Leases, whether now
existing or hereafter entered into, and all of its right, title and interest in
and to all Rents. If permitted under applicable law, this assignment is an
absolute assignment and not merely an assignment for additional security. So
long as no Event of Default shall have occurred and be continuing, Mortgagor
shall have a revocable license from Mortgagee to exercise all rights extended to
the landlord under the Leases, including the right to receive and collect all
Rents and to hold the Rents in trust for use in the payment and performance of
the Obligations and to otherwise use the same. The foregoing license is granted
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subject to the conditional limitation that no Event of Default shall have
occurred and be continuing. Upon the occurrence and during the continuance of
an Event of Default, whether or not legal proceedings have commenced, and
without regard to waste, adequacy of security for the Obligations or solvency of
Mortgagor, the license herein granted shall automatically expire and terminate,
without notice by Mortgagee (any such notice being hereby expressly waived by
Mortgagor).
SECTION 5.2 PERFECTION UPON RECORDATION. Mortgagor acknowledges that
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Mortgagee has taken all actions necessary to obtain, and that upon recordation
of this Mortgage Mortgagee shall have, to the extent permitted under applicable
law, a valid and fully perfected first priority present assignment of the Rents
arising out of the Leases and all security for such Leases. Mortgagor
acknowledges and agrees that upon recordation of this Mortgage Mortgagee's
interest in the Rents shall be deemed to be fully perfected, "▇▇▇▇▇▇" and
enforced as to Mortgagor and all third parties, including, without limitation,
any subsequently appointed trustee in any case under Title 11 of the United
States Code (the "BANKRUPTCY CODE"), without the necessity of commencing a
foreclosure action with respect to this Mortgage, making formal demand for the
Rents, obtaining the appointment of a receiver or taking any other affirmative
action.
SECTION 5.3 BANKRUPTCY PROVISIONS. Without limitation of the
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absolute nature of the assignment of the Rents hereunder, Mortgagor and
Mortgagee agree that (a) this Mortgage shall constitute a "security agreement"
for purposes of Section 552(b) of the Bankruptcy Code, (b) the security interest
created by this Mortgage extends to property of Mortgagor acquired before the
commencement of a case in bankruptcy and to all amounts paid as Rents and (c)
such security interest shall extend to all Rents acquired by the estate after
the commencement of any case in bankruptcy.
SECTION 5.4 NO MERGER OF ESTATES. So long as part of the
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Indebtedness and the Obligations secured hereby remain unpaid and undischarged,
the fee and leasehold estates to the Mortgaged Property shall not merge, but
shall remain separate and distinct, notwithstanding the union of such estates
either in Mortgagor, Mortgagee, any tenant or any third party by purchase or
otherwise.
ARTICLE 6
SECURITY AGREEMENT
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SECTION 6.1 SECURITY INTEREST. This Mortgage constitutes a "Security
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Agreement" on personal property within the meaning of the UCC and other
applicable law and with respect to the Personalty, Fixtures, Leases, Rents and
Property Agreements. To this end, Mortgagor grants to Mortgagee a first and
prior security interest in the Personalty, Fixtures, Leases, Rents and Property
Agreements and all other Mortgaged Property which is personal property to secure
the payment of the Indebtedness and performance of the Obligations, and
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agrees that Mortgagee shall have all the rights and remedies of a secured party
under the UCC with respect to such property. Any notice of sale, disposition or
other intended action by Mortgagee with respect to the Personalty, Fixtures,
Leases, Rents and Property Agreements sent to Mortgagor at least five (5) days
prior to any action under the UCC shall constitute reasonable notice to
Mortgagor.
SECTION 6.2 FINANCING STATEMENTS. Mortgagor shall execute and
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deliver to Mortgagee, in form and substance satisfactory to Mortgagee, such
financing statements and such further assurances as Mortgagee may, from time to
time, reasonably consider necessary to create, perfect and preserve Mortgagee's
security interest hereunder and Mortgagee may cause such statements and
assurances to be recorded and filed, at such times and places as may be required
or permitted by law to so create, perfect and preserve such security interest.
Mortgagor's chief executive office is in the State of North Carolina at the
address set forth in the first paragraph of this Mortgage.
SECTION 6.3 FIXTURE FILING. This Mortgage shall also constitute a
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"fixture filing" for the purposes of the UCC against all of the Mortgaged
Property which is or is to become fixtures. Information concerning the security
interest herein granted may be obtained at the addresses of Debtor (Mortgagor)
and Secured Party (Mortgagee) as set forth in the first paragraph of this
Mortgage.
ARTICLE 7
MISCELLANEOUS
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SECTION 7.1 NOTICES. Any notice required or permitted to be given
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under this Mortgage shall be given in accordance with the provisions of the
Credit Agreement.
SECTION 7.2 COVENANTS RUNNING WITH THE LAND. All Obligations
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contained in this Mortgage are intended by Mortgagor and Mortgagee to be, and
shall be construed as, covenants running with the Mortgaged Property. As used
herein, "Mortgagor" shall refer to the party named in the first paragraph of
this Mortgage and to any subsequent owner of all or any portion of the Mortgaged
Property. All Persons who may have or acquire an interest in the Mortgaged
Property shall be deemed to have notice of, and be bound by, the terms of the
Credit Agreement and the other Loan Documents; however, no such party shall be
entitled to any rights thereunder without the prior written consent of
Mortgagee.
SECTION 7.3 ATTORNEY-IN-FACT. Mortgagor hereby irrevocably appoints
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Mortgagee and its successors and assigns, as its attorney-in-fact, which agency
is coupled with an interest, (a) to execute and/or record any notices of
completion, cessation of labor or any other notices that Mortgagee deems
appropriate to protect Mortgagee's interest, if Mortgagor shall fail to do so
within ten (10) days after written request by Mortgagee, (b) upon the issuance
of a deed pursuant to the foreclosure of this Mortgage or the delivery of a deed
in lieu of
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foreclosure, to execute all instruments of assignment, conveyance or further
assurance with respect to the Leases, Rents, Personalty, Fixtures and Property
Agreements in favor of the grantee of any such deed and as may be necessary or
desirable for such purpose, (c) to prepare, execute and file or record financing
statements, continuation statements, applications for registration and like
papers necessary to create, perfect or preserve Mortgagee's security interests
and rights in or to any of the Mortgaged Property, and (d) while any Event of
Default exists, to perform any obligation of Mortgagor hereunder, however: (1)
Mortgagee shall not under any circumstances be obligated to perform any
obligation of Mortgagor; (2) any sums advanced by Mortgagee in such performance
shall be added to and included in the Indebtedness and shall bear interest at
the rate or rates at which interest is then computed on the Indebtedness; (3)
Mortgagee as such attorney-in-fact shall only be accountable for such funds as
are actually received by Mortgagee; and (4) Mortgagee shall not be liable to
Mortgagor or any other person or entity for any failure to take any action which
it is empowered to take under this Section.
-------
SECTION 7.4 SUCCESSORS AND ASSIGNS. This Mortgage shall be binding
----------------------
upon and inure to the benefit of Mortgagee, the Lenders, and Mortgagor and their
respective successors and assigns. Mortgagor shall not, without the prior
written consent of Mortgagee, assign any rights, duties or obligations
hereunder.
SECTION 7.5 NO WAIVER. Any failure by Mortgagee to insist upon
---------
strict performance of any of the terms, provisions or conditions of the Loan
Documents shall not be deemed to be a waiver of same, and Mortgagee or the
Lenders shall have the right at any time to insist upon strict performance of
all of such terms, provisions and conditions.
SECTION 7.6 CREDIT AGREEMENT. If any conflict or inconsistency
----------------
exists between this Mortgage and the Credit Agreement, the Credit Agreement
shall govern.
SECTION 7.7 RELEASE OR RECONVEYANCE. Upon payment in full of the
-----------------------
Indebtedness and performance in full of the Obligations, Mortgagee, at
Mortgagor's expense, shall release the liens and security interests created by
this Mortgage or reconvey the Mortgaged Property to Mortgagor. In addition, as
long as no Event of Default has occurred and is then continuing or would be
caused thereby, if Mortgagor sells or transfers for value any portion of the
Mortgaged Property as permitted under Section 7.7 of the Credit Agreement,
Mortgagee shall release the liens and security interests created by this
Mortgage on such Mortgaged Property or reconvey such Mortgaged Property to
Mortgagor, concurrently with the consummation of such sale or other transfer.
Such release or reconveyance shall be at Mortgagor's sole cost and expense, and
only upon not less than thirty days' prior written notice to Mortgagee.
SECTION 7.8 WAIVER OF STAY, MORATORIUM AND SIMILAR RIGHTS. Mortgagor
---------------------------------------------
agrees, to the full extent that it may lawfully do so, that it will not at any
time insist upon or plead or in any way take advantage of any stay, marshalling
of assets, extension, redemption or moratorium law now or hereafter in force and
effect so as to prevent or hinder the enforcement
11
of the provisions of this Mortgage or the Indebtedness secured hereby, or any
agreement between Mortgagor and Mortgagee or any rights or remedies of Mortgagee
or the Lenders.
SECTION 7.9 APPLICABLE LAW. The provisions of this Mortgage
--------------
regarding the creation, perfection and enforcement of the liens and security
interests herein granted shall be governed by and construed under the laws of
the state in which the Mortgaged Property is located. All other provisions of
this Mortgage and the Obligations shall be governed by the laws of the State of
New York (including, without limitation, Section 5-1401 of the General
Obligations Law of the State of New York), without regard to conflicts of laws
principles.
SECTION 7.10 HEADINGS. The Article, Section and Subsection titles
--------
hereof are inserted for convenience of reference only and shall in no way alter,
modify or define, or be used in construing, the text of such Articles, Sections
or Subsections.
SECTION 7.11 ENTIRE AGREEMENT. This Mortgage and the other Loan
----------------
Documents embody the entire agreement and understanding between Mortgagee and
Mortgagor and supersede all prior agreements and understandings between such
parties relating to the subject matter hereof and thereof. Accordingly, the
Loan Documents may not be contradicted by evidence of prior, contemporaneous or
subsequent oral agreements of the parties. There are no unwritten oral
agreements between the parties.
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12
The laws of South Carolina provide that in any real estate foreclosure
proceeding a defendant against whom a personal judgment is taken or asked may
within thirty days after the sale of the mortgaged property apply to the court
for an order of appraisal. The statutory appraisal value as approved by the
court would be substituted for the high bid and may decrease the amount of any
deficiency owing in connection with the transaction. THE UNDERSIGNED HEREBY
WAIVES AND RELINQUISHES THE STATUTORY APPRAISAL RIGHTS WHICH MEANS THE HIGH BID
AT THE JUDICIAL FORECLOSURE SALE WILL BE APPLIED TO THE DEBT REGARDLESS OF ANY
APPRAISED VALUE OF THE MORTGAGED PROPERTY.
IN WITNESS WHEREOF, Mortgagor and Mortgagee have on the date set forth in
the acknowledgement hereto, effective as of the date first above written, caused
this instrument to be duly EXECUTED AND DELIVERED under seal by authority duly
given.
THE PANTRY, INC., a Delaware corporation
By: _____________________________
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇
Title: Senior Vice President, Finance, Chief
Financial Officer & Secretary
_________________________
Witness
_________________________
Witness
FIRST UNION NATIONAL BANK
By: _____________________________
Name: ▇▇▇▇ ▇▇▇▇▇▇
Title: Senior Vice President
_________________________
Witness
_________________________
Witness
▇-▇
▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇
▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇ )
) SS.:
COUNTY OF NEW YORK )
Personally appeared before me ______________________ (first witness)
and made oath that he/she saw the corporate seal of THE PANTRY, INC., affixed to
the foregoing instrument and that he/she also saw ▇▇▇▇▇▇▇ ▇. ▇▇▇▇, Senior Vice
President, and ▇▇▇▇▇▇▇ ▇. ▇▇▇▇, Secretary of said THE PANTRY, INC., sign and
attest the same, and that he/she with ____________________ (second witness)
witnessed the execution and delivery thereof as the act and deed of the said THE
PANTRY, INC.
__________________________________
FIRST WITNESS
Sworn to before me this ____ day of October, 1997.
__________________________________________________
(SIGNATURE AND OFFICE OF INDIVIDUAL
TAKING ACKNOWLEDGEMENT)
[SEAL]
STATE OF NEW YORK )
) SS.:
COUNTY OF NEW YORK )
Personally appeared before me ______________________ (first witness)
and made oath that he/she saw the corporate seal of FIRST UNION NATIONAL BANK
affixed to the foregoing instrument and that he/she also saw ▇▇▇▇ ▇▇▇▇▇▇, Senior
Vice President, and ______________, Secretary of said FIRST UNION NATIONAL BANK,
sign and attest the same, and that he/she with ____________________ (second
witness) witnessed the execution and delivery thereof as the act and deed of the
said THE PANTRY, INC.
__________________________________
FIRST WITNESS
Sworn to before me this ____ day of October, 1997.
__________________________________________________
(SIGNATURE AND OFFICE OF INDIVIDUAL
TAKING ACKNOWLEDGEMENT)
[SEAL]
S-2
EXHIBIT A
MORTGAGED PROPERTY
A-1
EXHIBIT B
ORIGINAL MORTGAGES
B-1