EXHIBIT 10.4
This Deed of Trust was prepared by, This document is intended
and when recorded should be returned to: to be recorded in
Davie County, NORTH CAROLINA
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Esq.
White & Case LLP
▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
(▇▇▇) ▇▇▇-▇▇▇▇
1107993-0083
DEED OF TRUST, SECURITY AGREEMENT,
ASSIGNMENT OF LEASES, RENTS AND PROFITS,
FINANCING STATEMENT AND FIXTURE FILING
made by
▇.▇. ▇▇▇▇▇▇▇▇ TOBACCO COMPANY,
as the Trustor,
to
The Fidelity Company, as Trustee
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JPMorgan Chase Bank,
as Administrative Agent and Collateral Agent for Various Lending Institutions,
as the Beneficiary
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COLLATERAL IS OR INCLUDES FIXTURES
DEED OF TRUST, SECURITY AGREEMENT,
ASSIGNMENT OF LEASES, RENTS AND PROFITS,
FINANCING STATEMENT AND FIXTURE FILING
THIS DEED OF TRUST, SECURITY AGREEMENT, ASSIGNMENT OF LEASES, RENTS AND
PROFITS, FINANCING STATEMENT AND FIXTURE FILING, dated as of July 9, 2003 (as
amended, modified or supplemented from time to time, this "Deed of Trust") made
by ▇.▇. ▇▇▇▇▇▇▇▇ Tobacco Company, a New Jersey Corporation (the "Trustor"),
having an address at ▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇-▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
as the Trustor, to The Fidelity Company, a North Carolina corporation
("Trustee"), having an address at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇-▇▇▇▇▇, ▇▇▇▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇▇, for the benefit of JPMorgan Chase Bank, (together with any
successor beneficiary, the "Beneficiary"), having an address at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇, as Administrative Agent and Collateral Agent, as the
Beneficiary for the benefit of the Secured Creditors (as defined below).
All capitalized terms used but not otherwise defined herein shall have
the same meanings ascribed to such terms in the Credit Agreement described
below.
W I T N E S S E T H :
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WHEREAS, ▇.▇. ▇▇▇▇▇▇▇▇ Tobacco Holdings, Inc. (f/k/a RJR Nabisco, Inc.)
(the "Borrower"), the various lending institutions from time to time party
thereto (the "Lenders"), JPMorgan Chase Bank, as Administrative Agent (the
"Administrative Agent"), Citibank, N.A., as Syndication Agent (the "Syndication
Agent"), The Bank of New York, The Bank of Nova Scotia and ▇▇▇▇▇▇ Commercial
Paper Inc., as Documentation Agents (the "Documentation Agents"), Credit
Lyonnais New York Branch and Mizuho Corporate Bank, Ltd., as Co-Documentation
Agents (the "Co-Documentation Agents"), have entered into a Credit Agreement,
dated as of May 7, 1999, amended and restated as of November 17, 2000 and
further amended and restated as of May 10, 2002, providing for a credit facility
of up to $622,000,000 for the making of Loans to the Borrower and the issuance
of, and participation in, Letters of Credit for the account of the Borrower, all
as contemplated therein (with (i) the Lenders, each Letter of Credit Issuer, the
Administrative Agent, the Syndication Agent, the Documentation Agents, the
Co-Documentation Agents, the Senior Managing Agents and the Collateral Agent
being herein collectively called the "Lender Creditors" and (ii) the term
"Credit Agreement" as used herein to mean the Credit Agreement described above
in this paragraph, as the same may be further amended, modified, extended,
renewed, replaced, restated, supplemented and/or refinanced from time to time,
and including any agreement extending the maturity of, or refinancing or
restructuring (including, but not limited to, the inclusion of additional
borrowers or guarantors thereunder or any increase in the amount borrowed) all
or any portion of, the indebtedness under such agreement or any successor
agreement, whether or not with the same agent, trustee, representative lenders
or holders; provided that, with respect to any agreement providing for the
refinancing or replacement of indebtedness under the Credit Agreement, such
agreement shall only be treated as, or as part of, the Credit Agreement
hereunder if (x) either (A) all obligations under the Credit Agreement being
refinanced or replaced shall be paid in full at the time of such refinancing or
replacement, and all commitments and letters of credit issued pursuant to the
refinanced or replaced Credit Agreement shall have terminated in accordance
with their terms or (B) the Required Lenders shall have consented in writing to
the refinancing or replacement indebtedness being treated as indebtedness
pursuant to the Credit Agreement, and (y) a notice to the effect that the
refinancing or replacement indebtedness shall be treated as issued under the
Credit Agreement shall be delivered by the Borrower to the Collateral Agent);
WHEREAS, the Borrower may from time to time enter into or guarantee one
or more (i) interest rate protection agreements (including, without limitation,
interest rate swaps, caps, floors, collars and similar agreements), (ii) foreign
exchange contracts, currency swap agreements, commodity agreements or other
similar agreements or arrangements designed to protect against the fluctuations
in currency values and/or (iii) other types of hedging agreements from time to
time (each such agreement or arrangement with a Hedging Creditor (as hereinafter
defined), a "Secured Hedging Agreement"), with any Lender or Lenders or a
syndicate of financial institutions organized by a Lender or an affiliate of a
Lender (even if any such Lender ceases to be a Lender under the Credit Agreement
for any reason) (any institution that participates therein, and in each case
their subsequent successors and assigns collectively, the "Hedging Creditors",
and together with the Lender Creditors, the "Lender Secured Creditors");
WHEREAS, the Borrower and the trustee thereunder (the "New Senior Notes
Trustee"), on behalf of the holders of the New Senior Notes (such holders,
together with the New Senior Notes Trustee, the "New Senior Notes Creditors"),
have from time to time entered into, and may in the future from time to time
enter into, one or more Indentures (collectively, as amended, modified or
supplemented from time to time, the "New Senior Notes Indenture" and, together
with the New Senior Notes, the "New Senior Notes Documents"), providing for the
issuance of New Senior Notes by the Borrower, with the aggregate principal
amount of the New Senior Notes outstanding on the date hereof equaling
$700,000,000;
WHEREAS, the Borrower and the trustee thereunder (the "Refinancing
Senior Notes Trustee"), on behalf of the holders of the Refinancing Senior Notes
(such holders, together with the Refinancing Senior Notes Trustee, the
"Refinancing Senior Notes Creditors"; with the Lender Secured Creditors, the New
Senior Notes Creditors and the Refinancing Senior Notes Creditors being herein
called the "Secured Creditors"), have from time to time entered into, and may in
the future from time to time enter into, one or more Indentures (collectively,
as amended, modified or supplemented from time to time, the "Refinancing Senior
Notes Indenture" and, together with the Refinancing Senior Notes, the
"Refinancing Senior Notes Documents"), providing for the issuance of Refinancing
Senior Notes by the Borrower, with the aggregate principal amount of the
Refinancing Senior Notes outstanding on the date hereof equaling $750,000,000;
WHEREAS, the Trustor is owner of the fee simple title to the Trust
Property (as hereinafter defined), subject to Permitted Liens;
WHEREAS, pursuant to the Subsidiary Guaranty, the Trustor has (together
with the other Subsidiaries of the Borrower party thereto) jointly and severally
guaranteed to the Lender Secured Creditors the payment when due of the
Guaranteed Obligations (as and to the extent defined in the Subsidiary
Guaranty);
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WHEREAS, the Trustor has guaranteed to the New Senior Note Creditors
the payment when due of principal, premium (if any) and interest on the New
Senior Notes;
WHEREAS, the Trustor has guaranteed to the Refinancing Senior Note
Creditors the payment when due of principal, premium (if any) and interest on
the Refinancing Senior Notes;
WHEREAS, the Credit Agreement requires this Deed of Trust be executed
and delivered to the Beneficiary by the Trustor and the Secured Hedging
Agreements, the New Senior Notes Indenture and the Refinancing Senior Notes
Indenture, require that this Deed of Trust secure the respective Obligations as
provided herein; and
WHEREAS, the Trustor desires to enter into this Deed of Trust to
satisfy the condition in the preceding paragraph and to secure (and this Deed of
Trust shall secure) the following:
(i) the full and prompt payment when due (whether at the
stated maturity, by acceleration or otherwise) of all obligations
(including obligations which, but for the automatic stay under Section
362(a) of the Bankruptcy Code, would become due) and liabilities of the
Trustor, now existing or hereafter incurred under, arising out of or in
connection with any Credit Document to which the Trustor is a party
(including, without limitation, indemnities, fees and interest
(including all interest that accrues after the commencement of any
case, proceeding or other action relating to the bankruptcy,
insolvency, reorganization or similar proceeding of the Borrower or any
other Credit Party at the rate provided for in the respective
documentation, whether or not a claim for post-petition interest is
allowed in any such proceeding)) and the due performance of and
compliance by the Trustor with the terms of each such Credit Document
(all such obligations and liabilities under this clause (i), except to
the extent consisting of obligations or liabilities with respect to
Secured Hedging Agreements, being herein collectively called the
"Credit Document Obligations");
(ii) the full and prompt payment when due (whether at the
stated maturity, by acceleration or otherwise) of all obligations
(including obligations which, but for the automatic stay under Section
362(a) of the Bankruptcy Code, would become due) and liabilities of the
Trustor, now existing or hereafter incurred under, arising out of or in
connection with any Secured Hedging Agreement (including, all
obligations, if any, of the Trustor under the Subsidiary Guaranty in
respect of Secured Hedging Agreements) , and the due performance and
compliance by the Trustor with all of the terms, conditions and
agreements contained therein (all such obligations and liabilities
under this clause (ii) being herein collectively called the "Hedging
Obligations");
(iii) the full and prompt payment when due (whether at the
stated maturity, by acceleration or otherwise) of all obligations
(including obligations which, but for the automatic stay under Section
362(a) of the Bankruptcy Code, would become due) and liabilities of the
Trustor owing to the New Senior Notes Creditors (including, without
limitation, indemnities, fees and interest (including all interest that
accrues after the commencement of any case, proceeding or other action
relating to the bankruptcy,
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insolvency, reorganization or similar proceeding of the Borrower or any
other Credit Party at the rate provided for in the respective
documentation, whether or not a claim for post-petition interest is
allowed in any such proceeding)), now existing or hereafter incurred
under, arising out of or in connection with any New Senior Notes
Document, including, all obligations, if any, of the Trustor under any
guaranty in respect of the New Senior Notes (all such obligations and
liabilities under this clause (iii) being herein collectively called
the "New Senior Notes Obligations");
(iv) the full and prompt payment when due (whether at the
stated maturity, by acceleration or otherwise) of all obligations
(including obligations which, but for the automatic stay under Section
362(a) of the Bankruptcy Code, would become due) and liabilities of the
Trustor owing to the Refinancing Senior Notes Creditors (including,
without limitation, indemnities, fees and interest (including all
interest that accrues after the commencement of any case, proceeding or
other action relating to the bankruptcy, insolvency, reorganization or
similar proceeding of the Borrower or any other Credit Party at the
rate provided for in the respective documentation, whether or not a
claim for post-petition interest is allowed in any such proceeding)),
now existing or hereafter incurred under, arising out of or in
connection with any Refinancing Senior Notes Document, including, all
obligations, if any, of the Trustor under a guaranty in respect of the
Refinancing Senior Notes (all such obligations and liabilities under
this clause (iv) being herein collectively called the "Refinancing
Senior Notes Obligations");
(v) any and all sums advanced by the Beneficiary in order to
preserve or protect its lien and security interest in the Trust
Property;
(vi) in the event of any proceeding for the collection or
enforcement of any indebtedness, obligations, or liabilities of the
Trustor and/or the Borrower referred to above after an Event of Default
(as hereinafter defined) shall have occurred and be continuing, all
expenses of re-taking, holding, preparing for sale or lease, selling or
otherwise disposing of or realizing on the Trust Property, or of any
exercise by the Beneficiary of its rights hereunder, together with
reasonable attorneys' fees and disbursements (as set forth in Section
4.09 hereof) and court costs;
(vii) any and all other indebtedness now owing or which may
hereafter be owing by the Trustor to the Beneficiary, however and
whenever incurred or evidenced, whether express or implied, direct or
indirect, absolute or contingent, or due or to become due; and
(viii) any and all renewals, extensions and modifications of
any of the obligations and liabilities referred to in clauses (i)
through (vii) above;
all such obligations, liabilities, sums and expenses set forth in clauses (i)
through (viii) above being herein collectively called the "Obligations",
provided that notwithstanding the foregoing, (i) the New Senior Notes
Obligations shall be excluded from the Obligations to the extent the New Senior
Notes Documents do not require the New Senior Notes Obligations to be secured
pursuant to this Deed of Trust, and (ii) the Refinancing Senior Notes
Obligations shall be
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excluded from the Obligations to the extent the Refinancing Senior Notes
Documents do not require the Refinancing Senior Notes Obligations to be secured
pursuant to this Deed of Trust.
NOW, THEREFORE, as security for the Obligations and in consideration of
the sum of ten dollars ($10.00) and the other benefits accruing to the Trustor,
the receipt and sufficiency of which are hereby acknowledged, THE TRUSTOR HEREBY
MORTGAGES, GIVES, GRANTS, BARGAINS, SELLS, CONVEYS AND CONFIRMS TO THE TRUSTEE
FOR THE BENEFIT OF THE BENEFICIARY AND THEIR SUCCESSORS AND ASSIGNS FOREVER,
TOGETHER WITH POWER OF SALE (subject to applicable law) all of the Trustor's
estate, right, title and interest, whether now owned or hereafter acquired,
whether as lessor or lessee and whether vested or contingent, in and to all of
the following:
A. The land described in Exhibit A hereto, together with all rights,
privileges, franchises and powers related thereto which are appurtenant to said
land or its ownership, including all minerals, oil and gas and other hydrocarbon
substances thereon or therein; waters, water courses, water stock, water rights
(whether riparian, appropriative, or otherwise, and whether or not appurtenant),
sewer rights, shrubs, crops, trees, timber and other emblements now or hereafter
on, under or above the same or any part or parcel thereof (the "Land");
B. All buildings, structures, tenant improvements and other
improvements of every kind and description now or hereafter located in or on the
Land, including, but not limited to all machine shops, structures, improvements,
rail spurs, dams, reservoirs, water, sanitary and storm sewers, drainage,
electricity, steam, gas, telephone and other utility facilities, parking areas,
roads, driveways, walks and other site improvements of every kind and
description now or hereafter erected or placed on the Land; and all additions
and betterments thereto and all renewals, alterations, substitutions and
replacements thereof (collectively, the "Improvements");
C. All fixtures, attachments, appliances, equipment, machinery,
building materials and supplies, and other tangible personal property, now or
hereafter attached to said Improvements or now or at any time hereafter located
on the Land and/or Improvements including, but not limited to, artwork,
decorations, draperies, furnaces, boilers, oil burners, piping, plumbing,
refrigeration, air conditioning, lighting, ventilation, disposal and sprinkler
systems, elevators, motors, dynamos and all other equipment and machinery,
appliances, fittings and fixtures of every kind located in or used in the
operation of the Improvements, together with any and all replacements or
substitutions thereof and additions thereto, including the proceeds of any sale
or transfer of the foregoing (hereinafter sometimes collectively referred to as
the "Equipment"); D. All surface rights, appurtenant rights and easements,
rights of way, and other rights appurtenant to the use and enjoyment of or used
in connection with the Land and/or the Improvements;
E. All streets, roads and public places (whether open or proposed) now
or hereafter adjoining or otherwise providing access to the Land, the land lying
in the bed of such streets, roads and public places, and all other sidewalks,
alleys, ways, passages, vaults, water
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courses, strips and gores of land now or hereafter adjoining or used or intended
to be used in connection with all or any part of the Land and/or the
Improvements;
F. Any leases, lease guaranties and any other agreements, relating to
the use and occupancy of the Land and/or the Improvements or any portion
thereof, including but not limited to any use or occupancy arrangements created
pursuant to Section 365(h) of he Bankruptcy Code or otherwise in connection with
the commencement or continuance of any bankruptcy, reorganization, arrangement,
insolvency, dissolution, receivership or similar proceedings, or any assignment
for the benefit of creditors, in respect of any tenant or occupant of any
portion of the Land and/or the Improvements (collectively, "Leases");
G. All revenues, rents, receipts, income, accounts receivable, issues
and profits of the Trust Property (collectively, "Rents");
H. To the extent assignable, all permits, licenses and rights relating
to the use, occupation and operation of the Land and the Improvements, any
business conducted thereon or therein and any part thereof;
I. All real estate tax refunds payable to the Trustor with respect to
the Land and/or the Improvements, and refunds, credits or reimbursements payable
with respect to bonds, escrow accounts or other sums payable in connection with
the use, development, or ownership of the Land or Improvements;
J. Any claims or demands with respect to any proceeds of insurance in
effect with respect to the Land and/or the Improvements, including interest
thereon, which the Trustor now has or may hereafter acquire and any and all
awards made for the taking by eminent domain, condemnation or by any
proceedings, TRANSFER or purchase in lieu or in anticipation of the exercise of
said rights, or for a change of grade, or for any other injury to or decrease in
the value of the whole or any part of the Trust Property;
K. Any zoning lot agreements and air rights and development rights
which may be vested in the Trustor together with any additional air rights or
development rights which have been or may hereafter be conveyed to or become
vested in the Trustor; and
L. All proceeds and products of the conversion, voluntary or
involuntary, including, without limitation, those from sale, exchange, transfer,
collection, loss, damage, disposition, substitution or replacement of any of the
foregoing; whether into cash, liquidated claims or otherwise.
All of the foregoing estates, right, properties and interests hereby
conveyed to the Beneficiary may be referred to herein as the "Trust Property".
Notwithstanding the foregoing, the Trust Property that secures the New Senior
Notes Obligations and the Refinancing Senior Notes Obligations shall be limited
to Trust Property consisting of any shares of stock, indebtedness or other
obligations of a Subsidiary or any Principal Property (as defined in the New
Senior Notes Indenture and the Refinancing Senior Notes Indenture (in each case
as in effect on the date hereof)) of the Trustor (the "Designated Trust
Property"), all of which Collateral shall also ratably secure all other
Obligations, and the Trust Property Proceeds (as defined in Section 4.04(a))
that are to be applied to the New Senior Notes Obligations and the
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Refinancing Senior Notes Obligations shall be limited to Trust Property Proceeds
resulting from the sale of, and Rents and other amounts generated by the
holding, leasing, management, operation or other use pursuant to this Deed of
Trust of, the Designated Trust Property, with such Trust Property Proceeds to
also be applied ratably to all other Obligations.
TO HAVE AND TO HOLD the above granted and described Trust Property unto
the Trustee for the benefit of the Beneficiary and to its successors and assigns
forever, and the Trustor hereby covenants and agrees on behalf of itself and its
successors and assigns to warrant and defend the Trust Property unto the Trustee
for the benefit of the Beneficiary, its successors and assigns against the claim
or claims of all persons and parties whatsoever.
PROVIDED, HOWEVER, that if Obligations shall have been paid in cash at
the time and in the manner stipulated therein and all other sums payable
hereunder and all other indebtedness secured hereby shall have been paid and all
other covenants contained in the Credit Documents shall have been performed,
then, in such case the Beneficiary shall, subject to the provisions of Section
6.19 of this Deed of Trust, at the request and expense of the Trustor, satisfy
this Deed of Trust (without recourse and without any representation or warranty)
and the estate, right, title and interest of the Beneficiary in the Trust
Property shall cease, and upon payment to the Beneficiary of all reasonable
costs and expenses incurred for the preparation of the release hereinafter
referenced and all recording costs if allowed by law, the Beneficiary shall
release this Deed of Trust and the lien hereof by proper instrument.
ARTICLE I
REPRESENTATIONS, WARRANTIES, COVENANTS
1.01 Title to this Property. The Trustor represents and warrants: (a)
it has good and marketable fee title to the Trust Property, free and clear of
any liens and encumbrances, other than Liens permitted under Section 8.03 of the
Credit Agreement and any other easements, rights and claims of record
(collectively "Permitted Liens"), and is lawfully seized and possessed of the
Trust Property; (b) this Deed of Trust is a valid first priority lien upon the
Trust Property subject to the Permitted Liens; (c) it has full power and
authority to encumber the Trust Property in the manner set forth herein; and (d)
there are no defenses or offsets to this Deed of Trust or to the Obligations
which it secures. The Trustor shall preserve such title and the validity and
priority of this Deed of Trust and shall forever warrant and defend the same to
the Beneficiary and the Beneficiary's successors and assigns against the claims
of all persons and parties whatsoever. The Trustor shall take no action nor
shall it fail to take any action which could result in an impairment of the lien
of this Deed of Trust or which could form the basis for any Person(s) to claim
an interest in the Trust Property (including, without limitation, any claim for
adverse use or possession or any implied dedication or easement by prescription
other than leases permitted under the Credit Agreement). If any Lien (other than
Permitted Liens) is asserted against the Trust Property, the Trustor shall
promptly, at its expense: (a) provide the Beneficiary with written notice of
such Lien, including information relating to the amount of the Lien asserted;
and (b) pay the Lien in full or take such other action to cause the Lien to be
released, or, so long as the Lien of this Deed of Trust is not compromised,
contest the same pursuant to the provisions of the Credit Agreement. From and
after the occurrence of an Event of Default, the
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Beneficiary may, but shall not be obligated, to pay any such asserted Lien if
not timely paid by the Trustor.
1.02 Compliance with Law. The Trustor represents and warrants that it
possesses all material certificates, licenses, authorizations, registrations,
permits and/or approvals necessary for the ownership, operation, leasing and
management of the Trust Property, including, without limitation, all material
environmental permits, all of which are in full force and effect and not the
subject of any revocation proceeding, undisclosed amendment, release,
suspension, forfeiture or the like. The present and contemplated use and
occupancy of the Trust Property does not conflict with or violate any such
certificate, license, authorization, registration, permit or approval,
including, without limitation, any certificate of occupancy which may have been
issued for the Trust Property. The Trustor will not take any action, or fail to
take any required action, so as to compromise or adversely affect the zoning
classification of the Trust Property.
1.03 Payment and Performance of Obligations. Subject to the terms of
the Credit Agreement, the Trustor shall pay all of the Obligations when due and
payable without offset or counterclaim, and shall observe and comply in all
material respects with all of the terms, provisions, conditions, covenants and
agreements to be observed and performed by it under this Deed of Trust, the
other Credit Documents to which it is a party, the Secured Hedging Agreements,
the New Senior Notes Documents and the Refinancing Senior Notes Documents
(collectively, the "Secured Debt Agreements").
1.04 Maintenance, Repair, Alterations, Etc. The Trustor will: (i) keep
and maintain the Trust Property, to the extent used in Trustor's day to day
business, in good condition and repair (normal wear and tear excepted); (ii)
make or cause to be made, as and when necessary, all material repairs, renewals
and replacements, structural and nonstructural, exterior and interior, ordinary
and extraordinary, foreseen and unforeseen which are necessary to so maintain
the Trust Property in Trustor's reasonable business judgment; (iii) restore any
Improvement, to the extent used in Trustor's day to day business, which may be
damaged or destroyed so that the same shall be at least substantially equal to
its value, condition and character immediately prior to the damage or
destruction; (iv) not commit or permit any waste or deterioration (normal wear
and tear excepted) of the Trust Property, to the extent used in Trustor's day to
day business; (v) not permit any material Improvements, to the extent used in
Trustor's day to day business, to be demolished or substantially altered in any
manner that substantially decreases the value thereof; (vi) promptly pay when
due all claims for labor performed and materials furnished therefor or contest
such claim and; (vii) comply with all applicable statutes, regulations and
orders of, and all applicable restrictions imposed by, all governmental
authorities having jurisdiction over the Trust Property, as well as comply with
the provisions of any lease, easement or other agreement affecting all or any
part of the Trust Property.
1.05 Required Insurance; Use of Proceeds. The Trustor will, at its
expense, at all times provide, maintain and keep in force policies of property,
hazard and liability insurance in accordance with Section 7.03 of the Credit
Agreement with respect to the Trust Property, together with statutory workers'
compensation insurance with respect to any work to be performed on or about the
Trust Property. To the extent required under the Credit Agreement, the Trustor
shall give prompt written notice to the Beneficiary of the occurrence of any
material damage to or material destruction of the Improvements or the Equipment.
In the event of any
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damage to or destruction of the Trust Property or any part thereof, so long as a
Noticed Event of Default has not occurred and is not continuing the Trustee and
Beneficiary will release any interest they have in the proceeds of any insurance
to the Trustor on account of such damage or destruction and Trustor may use such
proceeds for repair restoration replacement or other business purposes as
Trustor may reasonably determine. In the event of foreclosure of the Lien of
this Deed of Trust or other transfer of title or assignment of the Trust
Property in extinguishment, in whole or in part, of the Obligations, all right,
title and interest of the Trustor in and to all proceeds then payable under any
policy of insurance required by this Deed of Trust shall inure to the benefit of
and pass to the successor in interest of the Trustor, or the purchaser or
mortgagor of the Trust Property. After the occurrence of an Event of Default,
the Beneficiary shall be afforded the right to participate in and approve the
settlement of any claim made by the Trustor against the insurance company.
1.06 Preservation of Property. The Trustor agrees to pay for any and
all reasonable and actual fees, costs and expenses of whatever kind or nature
incurred in connection with the creation, preservation or protection of the
Beneficiary's liens on, and security interest in, the Trust Property, including,
without limitation, all fees and taxes in connection with the recording or
filing of instruments and documents in public offices (including stamp and
mortgage recording taxes or other taxes imposed on the Beneficiary by virtue of
its ownership of this Deed of Trust), which are imposed upon the recording of
this Deed of Trust or thereafter, all reasonable attorneys' fees, payment or
discharge of any taxes or Liens upon or in respect of the Trust Property,
premiums for insurance with respect to the Trust Property and all other
reasonable fees, costs and expenses in connection with protecting, maintaining
or preserving the Trust Property and the Beneficiary's interest therein, whether
through judicial proceedings or otherwise, or in defending or prosecuting any
actions, suits or proceedings arising out of or relating to the Trust Property.
1.07 Condemnation. Should the Trustor receive any notice that a
material portion of the Trust Property or interest therein may be taken or
damaged by reason of any public improvements or condemnation proceeding or in
any other similar manner (a "Condemnation"), the Trustor, to the extent required
under the Credit Agreement, shall give prompt written notice thereof to the
Beneficiary. In the event of any Condemnation, after the occurrence and during
the continuation of any Event of Default, the Beneficiary shall have the right
to participate in any negotiations or litigation and shall have the right to
approve any settlement. So long as no Noticed Event of Default has occurred and
is continuing, the Trustee and Beneficiary will release any interest they have
in any and all compensation, awards, damages and proceeds paid to the Trustor or
the Borrower on account of such Condemnation and Trustor may use such
compensation awards, damages and proceeds for repair, restoration, replacement
or other business purposes as Trustor may reasonably determine.
1.08 Inspections. The Trustor hereby authorizes the Beneficiary, its
agents, employees and representatives, upon reasonable prior written notice to
the Trustor (except in an emergency or following the occurrence and during the
continuance of any Event of Default, in which case notice shall not be required)
to visit and inspect the Trust Property or any portion(s) thereof, all at such
reasonable times and as often as the Beneficiary may reasonably request.
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1.09 Transfers. Except as otherwise permitted in accordance with the
terms of the Credit Agreement, no part of the Trust Property or of any legal or
beneficial interest in the Trust Property shall be sold, assigned, conveyed,
transferred or otherwise disposed of (whether voluntarily or involuntarily,
directly or indirectly, by sale of stock or any interest in the Trustor, or by
operation of law or otherwise).
1.10 After Acquired Property Interests. Subject to applicable law, all
right, title and interest of the Trustor in and to all extensions, improvements,
betterments, renewals, substitutes and replacements of, and all additions and
appurtenances to, the Trust Property, hereafter acquired by, or released to, the
Trustor or constructed, assembled or placed by the Trustor on the Land, and all
conversions of the security constituted thereby (collectively, "After Acquired
Property Interests"), immediately upon such acquisition, release, construction,
assembling, placement or conversion, as the case may be, and in each such case,
without any further mortgage, conveyance, assignment or other act by the
Trustor, shall become subject to the lien of this Deed of Trust as fully and
completely, and with the same effect, as though now owned by the Trustor and
specifically described in the granting clauses hereof. The Trustor shall execute
and deliver to the Beneficiary all such other assurances, mortgages, conveyances
or assignments thereof as the Beneficiary may reasonably require for the purpose
of expressly and specifically subjecting such After Acquired Property Interests
to the lien of this Deed of Trust. The Trustor hereby irrevocably authorizes and
appoints the Beneficiary as the agent and attorney-in-fact of the Trustor to
execute all such documents and instruments on behalf of the Trustor, which
appointment shall be irrevocable and coupled with an interest, if the Trustor
fails or refuses to do so within ten (10) days after a request therefor by the
Beneficiary.
ARTICLE II
SECURITY AGREEMENT
2.01 Grant of Security; Incorporation by Reference. This Deed of Trust
shall, in addition to constituting a mortgage lien on those portions of the
Trust Property classified as real property (including fixtures to the extent
they are real property), constitute a security agreement within the meaning of
the Uniform Commercial Code or within the meaning of the common law with respect
to those parts of the Trust Property classified as personal property (including
fixtures to the extent they are personal property) to the extent a security
interest therein can be created by this Deed of Trust. The Trustor hereby grants
to the Beneficiary a security interest in and to the following property whether
now owned or hereafter acquired (collectively, the "Secured Property") for the
benefit of the Beneficiary to further secure the payment and performance of the
Obligations:
(a) Those parts of the Trust Property classified as personal
property (including (i) fixtures to the extent they are personal
property and (ii) personal property and fixtures that are leased, but
only to the extent the Trustor can grant to the Beneficiary a security
interest therein without breaching the terms of such lease);
(b) All general intangibles, contract rights, accounts and
proceeds arising from all insurance policies required to be maintained
by the Trustor and related to the Trust Property hereunder;
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(c) All proceeds of any judgment, award or settlement in any
condemnation or eminent domain proceeding in connection with the Trust
Property, together with all general intangibles, contract rights and
accounts arising therefrom;
(d) All permits, consents and other governmental approvals in
connection with the construction of the Improvements or the operation
of the Trust Property, to the extent any of the same may be assigned,
transferred, pledged or subjected to a security interest;
(e) All plans and specifications, studies, tests or design
materials relating to the design, construction, repair, alteration or
leasing of the Trust Property, to the extent any of the same may be
assigned, transferred, pledged or subjected to a security interest; and
(f) All cash and non-cash proceeds of the above-mentioned
items.
The provisions contained in the Security Agreement are hereby
incorporated by reference into this Deed of Trust with the same effect as if set
forth in full herein. In the event of a conflict between the provisions of this
Article II and the Security Agreement, the Security Agreement shall control and
govern and the Trustor shall comply therewith.
2.02 Fixture Filing and Financing Statements. This Deed of Trust
constitutes a security agreement, fixture filing and financing statement as
those terms are used in the Uniform Commercial Code. For purposes of this
Section, this Deed of Trust is to be filed and recorded in, among other places,
the real estate records of Davie County and the following information is
included: (1) the Trustor shall be deemed the "Debtor" with the address set
forth for the Trustor on the first page of this Deed of Trust which the Trustor
certifies is accurate; (2) the Beneficiary shall be deemed to be the "Secured
Party" with the address set forth for the Beneficiary on the first page of this
Deed of Trust and shall have all of the rights of a secured party under the
Uniform Commercial Code; (3) this Deed of Trust covers goods which are or are to
become fixtures on the real property described in Exhibit A attached hereto; (4)
the name of the record owner of the land is the Debtor; (5) the organizational
identification number of the Debtor is 7599601600; (6) the Debtor is a
corporation, organized under the laws of the State of New Jersey; and (7) the
legal name of the Debtor is ▇.▇. ▇▇▇▇▇▇▇▇ Tobacco Company. The Debtor hereby
authorizes the Beneficiary to file any financing statements and terminations
thereof or amendments or modifications thereto without the signature of the
Debtor where permitted by law.
ARTICLE III
ASSIGNMENT OF LEASES, RENTS AND PROFITS
3.01 Assignment. The Trustor hereby absolutely, irrevocably and
unconditionally sells, assigns, transfers and conveys to the Beneficiary all of
the Trustor's right, title and interest in and to all current and future Leases
and Rents, including those now due, past due, or to become due by virtue of any
Lease or other agreement for the occupancy or use of all or any part of the
Trust Property regardless of to whom the Rents are payable. The Trustor
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intends that this assignment of Leases and Rents constitutes a present and
absolute assignment and not an assignment for additional security only. Such
assignment to the Beneficiary shall not be construed to bind the Beneficiary to
the performance of any of the covenants, conditions or provisions contained in
any such Lease or otherwise impose any obligation upon the Beneficiary. The
Trustor covenants that the Trustor will not hereafter collect or accept payment
of any Rents more than one month prior to the due dates of such Rents, and that
no payment of any of the Rents to accrue for any portion of the Trust Property
(other than a de minimis amount) will be waived, released, reduced, discounted
or otherwise discharged or compromised by the Trustor, except as may be approved
in writing by the Beneficiary. The Trustor agrees that it will not assign any of
the Leases or Rents to any other Person. The Beneficiary shall have no liability
for any loss which may arise from a failure or inability to collect Rents,
proceeds or other payments. The Trustor shall maintain all security deposits in
accordance with applicable law.
3.02 Revocable License; Agent. Notwithstanding the foregoing, subject
to the terms of this Article III, the Beneficiary grants to the Trustor a
revocable license to operate and manage the Trust Property and to collect the
Rents and hereby directs each tenant under a Lease to pay such Rents to, or at
the direction of, the Trustor, until such time as the Beneficiary provides
notice to the contrary to such tenants. The Trustor shall hold the Rents, or a
portion thereof sufficient to discharge all current sums due in respect of the
Obligations, in trust for the benefit of the Beneficiary for use in the payment
of such sums.
3.03 Rents. (a) Upon the occurrence and during the continuance of a
Noticed Event of Default, without the need for notice or demand, the license
granted pursuant to this Article III shall immediately and automatically be
revoked and the Beneficiary shall immediately be entitled to possession of all
Rents, whether or not the Beneficiary enters upon or takes control of the Trust
Property. Upon the revocation of such license, the Trustor grants to the
Beneficiary the right, at its option, to exercise all the rights granted in
Section 4.02(a). Nothing herein contained shall be construed as constituting the
Beneficiary a trustee in possession in the absence of the taking of actual
possession of the Trust Property by the Beneficiary pursuant to Section 4.02(a).
As used herein, a "Noticed Event of Default" shall mean (i) an Event of Default
with respect to the Borrower under Section 9.05 of the Credit Agreement and (ii)
any other Event of Default in respect of which the Beneficiary has given the
Borrower notice that such Event of Default constitutes a "Noticed Event of
Default".
(b) From and after the termination of such license, the Trustor may, at
the Beneficiary's direction, be the agent for the Beneficiary in collection of
the Rents and all of the Rents so collected by the Trustor shall be held in
trust by the Trustor for the sole and exclusive benefit of the Beneficiary and
the Trustor shall, within one (1) business day after receipt of any Rents, pay
the same to the Beneficiary to be applied by the Beneficiary as provided for
herein. All Rents collected shall be applied against all expenses of collection,
including, without limitation, attorneys' fees, against costs of operation and
management of the Trust Property and against the Obligations, in whatever order
or priority as to any of the items so mentioned as the Beneficiary directs in
its sole and absolute discretion and without regard to the adequacy of its
security. Neither the demand for or collection of Rents by the Beneficiary shall
constitute any assumption by the Beneficiary of any obligations under any Lease
or agreement relating thereto.
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(c) Any reasonable funds expended by the Beneficiary to take control of
and manage the Trust Property and collect the Rents shall become part of the
Obligations secured hereby. Such amounts shall be payable from the Trustor to
the Beneficiary upon the Beneficiary's demand therefor and shall bear interest
from the date of disbursement at the interest rate set forth in Section 1.08(c)
of the Credit Agreement unless payment of interest at such rate would be
contrary to applicable law, in which event such amounts shall bear interest at
the highest rate which may be collected from the Trustor under applicable law.
3.04 Sale of Trust Property. (a) Upon any sale of any portion of the
Trust Property by or for the benefit of the Beneficiary pursuant to this Deed of
Trust, the Rents attributable to the part of the Trust Property so sold shall be
included in such sale and shall pass to the purchaser free and clear of any
rights granted herein to the Trustor.
(b) The Trustor acknowledges and agrees that, upon recordation of this
Deed of Trust, the Beneficiary's interest in the Rents shall be deemed to be
fully perfected, "▇▇▇▇▇▇" and enforceable against the Trustor and all third
parties, including, without limitation, any debtor in possession or trustee in
any case under title 11 of the United States Code, without the necessity of (i)
commencing a foreclosure action with respect to this Deed of Trust, (ii)
furnishing notice to the Trustor or tenants under the Leases, (iii) making
formal demand for the Rents, (iv) taking possession of the Trust Property as a
lender-in-possession, (v) obtaining the appointment of a receiver of the Rents,
(vi) sequestering or impounding the Rents or (vii) taking any other affirmative
action.
3.05 Bankruptcy Provisions. Without limiting the provisions of Article
III hereof or the absolute nature of the assignment of the Rents hereunder, the
Trustor and the Beneficiary agree that, to the extent that the assignment of the
Rents hereunder is deemed to be other than an absolute assignment, (a) this Deed
of Trust shall constitute a "security agreement" for purposes of Section 552(b)
of the Bankruptcy Code, (b) the security interest created by this Deed of Trust
extends to property of the Trustor acquired before the commencement of a
bankruptcy case 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
bankruptcy case. Without limitation of the absolute nature of the assignment of
the Rents hereunder, to the extent the Trustor (or the Trustor's bankruptcy
estate) shall be deemed to hold any interest in the Rents after the commencement
of a voluntary or involuntary bankruptcy case, the Trustor hereby acknowledges
and agrees that such Rents are and shall be deemed to be "cash collateral" under
Section 363 of the Bankruptcy Code.
ARTICLE IV
EVENTS OF DEFAULT AND REMEDIES
4.01 Events of Default. The occurrence of (i) an "Event of Default"
under and as defined in any of the Credit Documents, (ii) any "event of default"
under the New Senior Notes Documents or the Refinancing Senior Notes Documents
and (iii) any payment default, after any applicable grace period, under any
Secured Hedging Agreement shall constitute an Event of Default (each, an "Event
of Default") hereunder.
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4.02 Remedies Upon Default. Upon the occurrence of a Noticed Event of
Default, the Beneficiary may, in the Beneficiary's sole discretion, either
itself or by or through the Trustee, a nominee, assignee or otherwise, to the
fullest extent permitted by law, exercise any or all of the following rights and
remedies individually, collectively or cumulatively:
(a) either in person or by its agent, with or without bringing
any action or proceeding, or by a receiver appointed by a court and
without regard to the adequacy of its security, (i) enter upon and take
possession of the Trust Property or any part thereof and of all books,
records and accounts relating thereto or located thereon, in its own
name or in the name of the Trustor, and do or cause to be done any acts
which it deems necessary or desirable to preserve the value of the
Trust Property or any part thereof or interest therein, collect the
income therefrom or protect the security hereof; (ii) with or without
taking possession of the Trust Property make such repairs, alterations,
additions and improvements as the Beneficiary deems necessary or
desirable and do any and all acts and perform any and all work which
the Beneficiary deems necessary or desirable to complete any unfinished
construction on the Trust Property; (iii) make, cancel or modify Leases
and ▇▇▇ for or otherwise collect the Rents thereof, including those
past due and unpaid; (iv) make any payment or perform any act which the
Trustor has failed to make or perform hereunder; (v) appear in and
defend any action or proceeding purporting to affect the security
hereof or the rights or powers of the Beneficiary or the Trustee; (vi)
pay, purchase, contest or compromise any encumbrance, charge or Lien on
the Trust Property; and (vii) take such other actions as the
Beneficiary deems necessary or desirable;
(b) commence and maintain one or more actions at law or in
equity or by any other appropriate remedy (i) to protect and enforce
the rights of the Beneficiary or the Trustee hereunder, including for
the specific performance of any covenant or agreement herein contained
(which covenants and agreements the Trustor agrees shall be
specifically enforceable by injunctive or other appropriate equitable
remedy), (ii) to collect any sum then due hereunder, (iii) to aid in
the execution of any power herein granted, or (iv) to foreclose this
Deed of Trust in accordance with Section 4.03 hereof;
(c) exercise any or all of the remedies available to a secured
party under the Uniform Commercial Code;
(d) by notice to the Trustor (to the extent such notice is
required to be given under the Credit Documents), but without formal
demand, presentment, notice of intention to accelerate or of
acceleration, protest or notice of protest, all of which are hereby
waived by the Trustor, declare all of the indebtedness secured hereby
to be immediately due and payable, and upon such declaration all of
such indebtedness shall become and be immediately due and payable,
anything in this Deed of Trust or the other Credit Documents to the
contrary notwithstanding; and
(e) exercise any other right or remedy available to the
Beneficiary under the Secured Debt Agreements.
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4.03 Right of Foreclosure. (a) Upon the occurrence of a Noticed Event
of Default, the Beneficiary shall have the right, in its sole discretion, to
instruct the Trustee to proceed at law or in equity to foreclose this Deed of
Trust with respect to all or any portion of the Trust Property, in accordance
with the applicable laws of jurisdiction in which the Trust Property is located.
If the Trust Property consists of several lots, parcels or items of Trust
Property, the Beneficiary may, in its sole discretion instruct the Trustee to:
(i) designate the order in which such lots, parcels or items shall be offered
for sale or sold, or (ii) elect to sell such lots, parcels or items through a
single sale, or through two or more successive sales, or in any other manner the
Beneficiary deems in its best interest. Should the Beneficiary desire that more
than one sale or other disposition of the Trust Property be conducted, the
Beneficiary may, at its option, instruct the Trustee to cause the same to be
conducted simultaneously, or successively, on the same day, or at such different
days or times and in such order as the Beneficiary may deem to be in its best
interests, and no such sale shall terminate or otherwise affect the lien of this
Deed of Trust on any part of the Trust Property not sold until all Obligations
have been fully paid and performed. The Beneficiary may elect to sell the Trust
Property for cash or credit. The Beneficiary may, to the extent permitted by
law, instruct the Trustee to adjourn from time to time any sale by it to be made
under or by virtue of this Deed of Trust by announcement at the time and place
appointed for such sale or for such adjourned sale or sales; and, except as
otherwise provided by an applicable provision of law, the Beneficiary may make
such sale at the time and place to which the same shall be so adjourned. With
respect to all components of the Trust Property, the Beneficiary is hereby
irrevocably appointed the true and lawful attorney-in-fact of the Trustor
(coupled with an interest), in its name and stead, to make all necessary
conveyances, assignments, transfers and deliveries of the Trust Property in
connection with any foreclosure of this Deed of Trust, and for that purpose the
Beneficiary may execute all necessary instruments of conveyance, assignment,
transfer and delivery, and may substitute one or more persons with such power,
the Trustor hereby ratifying and confirming all that its said attorney-in-fact
or such substitute or substitutes shall lawfully do by virtue hereof.
Notwithstanding the foregoing, the Trustor, if so requested by the Beneficiary,
shall ratify and confirm any such sale or sales by executing and delivering to
the Beneficiary or to such purchaser or purchasers all such instruments as may
be advisable, in the judgment of the Beneficiary, for such purpose, and as may
be designated in such request. To the extent permitted by law, any such sale or
sales made under or by virtue of this Article IV shall operate to divest all the
estate, right, title, interest, claim and demand whatsoever, whether at law or
in equity, of the Trustor in and to the properties and rights so sold, and shall
be a perpetual bar both at law and in equity against the Trustor and against any
and all persons claiming or who may claim the same, or any part thereof, from,
through or under the Trustor. Upon any sale made under or by virtue of this
Article IV, the Beneficiary may, to the extent permitted by law, bid for and
acquire the Trust Property or any part thereof and in lieu of paying cash
therefor may make settlement for the purchase price by crediting upon the
Obligations secured hereby the net sales price after deducting therefrom the
expenses of the sale and the cost of the action and any other sums which the
Beneficiary is authorized to deduct by law or under this Deed of Trust.
(b) Any foreclosure of this Deed of Trust and any other transfer of all
or any part of the Trust Property in extinguishment of all or any part of the
Obligations may, at the Beneficiary's option, be subject to any or all Leases of
all or any part of the Trust Property and the rights of tenants under such
Leases. No failure to make any such tenant a defendant in any foreclosure
proceedings or to foreclose or otherwise terminate any such Lease and the rights
of
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any such tenant in connection with any such foreclosure or transfer shall be, or
be asserted to be, a defense or hindrance to any such foreclosure or transfer or
to any proceedings seeking collection of all or any part of the Obligations
(including, without limitation, any deficiency remaining unpaid after completion
of any such foreclosure or transfer).
(c) If the Trustor retains possession of the Trust Property or any part
thereof subsequent to a sale, the Trustor will be considered a tenant at
sufferance of the purchaser, and will, if the Trustor remains in possession
after demand to remove, be guilty of forcible detainer and will be subject to
eviction and removal, forcible or otherwise, with or without process of law, and
all damages to the Trustor by reason thereof are hereby expressly waived by the
Trustor.
(d) It is agreed and understood that (x) this Deed of Trust may be
enforced only by the action of the Beneficiary acting upon the instructions of
the Required Lenders or, if the CA Termination Date (as defined below) has
occurred, the holders of a majority of the outstanding principal amount of all
remaining Obligations, provided that if prior to the CA Termination Date a
payment default with respect to at least $300,000,000 principal amount in the
aggregate of New Senior Notes and/or Refinancing Senior Notes has continued for
at least 180 days (and such defaulted payment has not been received pursuant to
a drawing under any letter of credit), the holders of a majority of the
outstanding principal amount of the Indebtedness subject to such payment default
or defaults can direct the Beneficiary to commence and continue enforcement of
the Liens created hereunder, which the Beneficiary shall comply with subject to
receiving any indemnity which it reasonably requests, provided further, that the
Beneficiary shall thereafter comply only with the directions of the Required
Lenders as to carrying out such enforcement so long as such directions are not
adverse to the aforesaid directions of the holders of Indebtedness subject to
such payment default or defaults, and (y) no other Secured Creditor shall have
any right individually to seek to enforce or to enforce this Deed of Trust or to
realize upon the security to be granted hereby, it being understood and agreed
that such rights and remedies shall be exercised exclusively by the Beneficiary
for the benefit of the Secured Creditors as their interest may appear upon the
terms of this Deed of Trust.
4.04 Application of Proceeds. (a) To the fullest extent permitted by
law, the proceeds of any sale of, and the Rents and other amounts generated by
the holding, leasing, management, operation or other use of, each item of the
Trust Property pursuant to this Deed of Trust (the "Trust Property Proceeds")
shall be applied by the Beneficiary (or the receiver, if one is appointed) as
follows:
(i) first, to the payment of all Obligations owing to the
Beneficiary of the type described in clauses (v), (vi) and (vii) of the
definition of Obligations herein;
(ii) second, to the extent Trust Property Proceeds of Trust
Property remain after the application pursuant to preceding clause (i),
an amount equal to the outstanding Obligations secured by such item of
Trust Property shall be paid to the Secured Creditors in the manner
provided below as their interests may appear, with each Secured
Creditor receiving an amount equal to its outstanding Obligations
secured by such item of Trust Property or, if the proceeds are
insufficient to pay in full all such Obligations, its Pro Rata Share of
the amount so remaining to be distributed, with any such amount to be
applied
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in the case of the Credit Document Obligations, the New Senior Notes
Obligations and the Refinancing Senior Notes Obligations, first to the
payment of interest in respect of the unpaid principal amount of Loans,
New Senior Notes or Refinancing Senior Notes, as the case may be,
second to the payment of principal of Loans, New Senior Notes or
Refinancing Senior Notes, as the case may be, and finally to the other
Credit Document Obligations, New Senior Notes Obligations or
Refinancing Senior Notes Obligations, as the case may be; and
(iii) third, to the extent proceeds remain after the
application pursuant to the preceding clauses (i) and (ii) to the
Trustor or, to the extent directed by the Trustor or a court of
competent jurisdiction, to whomever may be lawfully entitled to receive
such surplus.
(b) For purposes of this Agreement, "Pro Rata Share" shall mean when
calculating a Secured Creditor's portion of any distribution or amount pursuant
to clause (a) above, the amount (expressed as a percentage) equal to a fraction
the numerator of which is the then outstanding amount of the relevant
Obligations secured by the relevant item of Trust Property owed such Secured
Creditor and the denominator of which is the then outstanding amount of all
relevant Obligations secured by the relevant item of Trust Property.
(c) All payments required to be made to the (i) Lender Creditors
hereunder shall be made to the Administrative Agent for the account of the
respective Lender Creditors, (ii) Hedging Creditors hereunder shall be made to
the paying agent under the applicable Secured Hedging Agreement or, in the case
of Secured Hedging Agreements without a paying agent, directly to the applicable
Hedging Creditors, (iii) New Senior Notes Creditors hereunder shall be made to
the New Senior Notes Trustee for the account of the respective New Senior Notes
Creditors, and (iv) Refinancing Senior Notes Creditors hereunder shall be made
to the Refinancing Senior Notes Trustee for the account of the respective
Refinancing Senior Notes Creditors.
(d) For purposes of applying payments received in accordance with this
Section 9, the Beneficiary shall be entitled to rely upon (i) the Administrative
Agent for a determination of the outstanding Credit Document Obligations, (ii)
upon any Hedging Creditor for a determination of the outstanding Hedging
Obligations owed to such Hedging Creditor, (iii) the New Senior Notes Trustee
for a determination of the outstanding New Senior Notes Obligations, and (iv)
the Refinancing Senior Notes Trustee for a determination of the outstanding
Refinancing Senior Notes Obligations. Unless it has actual knowledge (including
by way of written notice from a Secured Creditor) to the contrary, the
Administrative Agent under the Credit Agreement, in furnishing information
pursuant to the preceding sentence, and the Beneficiary, in acting hereunder,
shall be entitled to assume that no Credit Document Obligations other than
principal, interest and regularly accruing fees are owing to any Lender
Creditor.
(e) It is understood and agreed that the Trustor shall remain liable to
the extent of any deficiency between (x) the amount of the Obligations for which
it is responsible directly or as a guarantor that are satisfied with proceeds of
the Collateral and (y) the aggregate outstanding amount of such Obligations.
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4.05 Appointment of Receiver. Upon the occurrence and during the
continuance of a Noticed Event of Default, the Beneficiary as a matter of strict
right and without notice to the Trustor or anyone claiming under the Trustor,
and without regard to the adequacy or the then value of the Trust Property or
the interest of the Trustor therein or the solvency of any party bound for
payment of the Obligations, shall have the right to apply to any court having
jurisdiction to appoint a receiver or receivers of the Trust Property, and the
Trustor hereby irrevocably consents to such appointment and waives notice of any
application therefor. Any such receiver or receivers shall have all the usual
rights, powers and duties of receivers in like or similar cases and all the
rights, powers and duties of the Beneficiary in case of entry as provided in
Section 4.02 hereof, including but not limited to the full power to rent,
maintain and otherwise operate the Trust Property upon such terms as are
approved by the court and shall continue as such and exercise all such powers
until the date of confirmation of sale of the Trust Property unless such
receivership is sooner terminated.
4.06 Exercise of Rights and Remedies. The entering upon and taking
possession of the Trust Property, the collection of any Rents and the exercise
of any of the rights contained in this Article IV, shall not, alone, cure or
waive any Event of Default or notice of default hereunder or invalidate any act
done in response to such Event of Default or pursuant to such notice of default
and, notwithstanding the continuance in possession of the Trust Property or the
collection, receipt and application of Rents, the Beneficiary shall be entitled
to exercise every right provided for herein or in the Credit Documents, the New
Senior Notes Documents or the Refinancing Senior Notes Documents, or at law or
in equity upon the occurrence of any Event of Default.
4.07 Remedies Not Exclusive. The Beneficiary shall be entitled to
enforce payment and performance of the Obligations and to exercise all rights
and powers under this Deed of Trust or other agreement or any laws now or
hereafter in force, notwithstanding that some or all of the Obligations may now
or hereafter be otherwise secured, whether by mortgage, deed of trust, security
deed, pledge, lien, assignment or otherwise. Neither the acceptance of this Deed
of Trust nor its enforcement, whether by court action or pursuant to the powers
herein contained, shall prejudice or in any manner affect the Beneficiary's
right to realize upon or enforce any other security now or hereafter held by the
Beneficiary, it being agreed that the Beneficiary shall be entitled to enforce
this Deed of Trust and any other security now or hereafter held by the
Beneficiary in such order and manner as it may in its absolute and sole
discretion and election determine. No remedy herein conferred upon or reserved
to the Beneficiary is intended to be exclusive of any other remedy herein or in
any of the other Secured Debt Agreements or by law provided or permitted, but
each shall be cumulative and shall be in addition to every other remedy given
hereunder or now or hereafter existing at law or in equity or by statute. Every
power or remedy to which the Beneficiary is entitled may be exercised,
concurrently or independently, from time to time and as often as may be deemed
expedient by the Beneficiary, and the Beneficiary may pursue inconsistent
remedies. No delay or omission of the Beneficiary to exercise any right or power
accruing upon any Event of Default shall impair any right or power or shall be
construed as a waiver of any Event of Default or any acquiescence therein. If
the Beneficiary shall have proceeded to invoke any right or remedy hereunder or
under any other Secured Debt Agreement, and shall thereafter elect to
discontinue or abandon it for any reason, the Beneficiary shall have the
unqualified right to do so and, in such an event, the rights and remedies of the
Beneficiary shall continue as if such right or remedy had never been invoked,
but
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no such discontinuance or abandonment shall waive any Event of Default which may
then exist or the right of the Beneficiary thereafter to exercise any right or
remedy under the Secured Debt Agreements for such Event of Default.
4.08 WAIVER OF REDEMPTION, NOTICE, MARSHALLING, ETC. NOTWITHSTANDING
ANYTHING HEREIN CONTAINED TO THE CONTRARY, TO THE EXTENT PERMITTED BY LAW, THE
TRUSTOR ACKNOWLEDGING THAT IT IS AWARE OF AND HAS HAD THE ADVICE OF COUNSEL OF
ITS CHOICE WITH RESPECT TO ITS RIGHTS HEREUNDER; (A) WILL NOT (I) AT ANY TIME
INSIST UPON, OR PLEAD, OR IN ANY MANNER WHATSOEVER, CLAIM OR TAKE ANY BENEFIT OR
ADVANTAGE OF ANY STAY OR EXTENSION OR MORATORIUM LAW, PRESENT OR FUTURE STATUTE
OF LIMITATIONS, ANY LAW RELATING TO THE ADMINISTRATION OF ESTATES OF DECEDENTS,
APPRAISEMENT, VALUATION, REDEMPTION, STATUTORY RIGHT OF REDEMPTION, OR THE
MATURING OR DECLARING DUE OF THE WHOLE OR ANY PART OF THE OBLIGATIONS, NOTICE OF
INTENTION OF SUCH MATURING OR DECLARING DUE, OTHER NOTICE (WHETHER OF DEFAULTS,
ADVANCES, THE CREATION, EXISTENCE, EXTENSION OR RENEWAL OF ANY OF THE
OBLIGATIONS OR OTHERWISE, EXCEPT FOR RIGHTS TO NOTICES EXPRESSLY GRANTED HEREIN
OR IN THE CREDIT DOCUMENTS), SUBROGATION, ANY SET-OFF RIGHTS, HOMESTEAD OR ANY
OTHER EXEMPTIONS FROM EXECUTION OR SALE OF THE TRUST PROPERTY OR ANY PART
THEREOF, WHEREVER ENACTED, NOW OR AT ANY TIME HEREAFTER IN FORCE, WHICH MAY
AFFECT THE COVENANTS AND TERMS OF PERFORMANCE OF THIS DEED OF TRUST, OR (II)
CLAIM, TAKE OR INSIST UPON ANY BENEFIT OR ADVANTAGE OR ANY LAW NOW OR HEREAFTER
IN FORCE PROVIDING FOR THE VALUATION OR APPRAISAL OF THE TRUST PROPERTY OR ANY
PART THEREOF, PRIOR TO ANY SALE OR SALES THEREOF WHICH MAY BE MADE PURSUANT TO
ANY PROVISION HEREOF, OR PURSUANT TO THE DECREE, JUDGMENT OR ORDER OF ANY COURT
OF COMPETENT JURISDICTION; OR (III) AFTER ANY SUCH SALE OR SALES, CLAIM OR
EXERCISE ANY RIGHT UNDER ANY STATUTE HERETOFORE OR HEREAFTER ENACTED TO REDEEM
THE TRUST PROPERTY SO SOLD OR ANY PART THEREOF; AND (B) COVENANTS NOT TO HINDER,
DELAY OR IMPEDE THE EXECUTION OF ANY POWER HEREIN GRANTED OR DELEGATED TO THE
TRUSTEE OR BENEFICIARY, BUT TO SUFFER AND PERMIT THE EXECUTION OF EVERY POWER AS
THOUGH NO SUCH LAW OR LAWS HAD BEEN MADE OR ENACTED. THE TRUSTOR, FOR ITSELF AND
ALL WHO MAY CLAIM UNDER IT, WAIVES, TO THE EXTENT THAT IT LAWFULLY MAY, ALL
RIGHT TO HAVE THE TRUST PROPERTY MARSHALLED UPON ANY FORECLOSURE HEREOF.
4.09 Expenses of Enforcement. In connection with any action to enforce
any remedy of the Beneficiary under this Deed of Trust, the Trustor agrees to
pay all costs and expenses which may be paid or incurred by or on behalf of the
Beneficiary or the Trustee, including, without limitation, reasonable attorneys'
fees, receiver's fees, appraiser's fees, outlays for documentary and expert
evidence, stenographer's charges, publication costs, and costs (which may be
estimated as to items to be expended after entry of the decree) of procuring all
such abstracts of title, title searches and examinations, title insurance
policies and similar data and assurances with respect to title and value as the
Beneficiary may deem necessary or
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desirable, and neither the Beneficiary nor any other Person shall be required to
accept tender of any portion of the Obligations unless the same be accompanied
by a tender of all such expenses, costs and commissions. All of the costs and
expenses described in this Section 4.09, and such expenses and fees as may be
incurred in the protection of the Trust Property and the maintenance of the Lien
of this Deed of Trust, including the reasonable fees of any attorney employed by
the Beneficiary or the Trustee in any litigation or proceeding, including
appellate proceedings, affecting this Deed of Trust or the Trust Property
(including, without limitation, the occupancy thereof or any construction work
performed thereon), including probate and bankruptcy proceedings, or in
preparation for the commencement or defense of any proceeding or threatened suit
or proceeding whether or not an action is actually commenced, shall be
immediately due and payable by the Trustor, with interest thereon at the rate of
interest set forth in the Credit Documents and shall be part of the Obligations
secured by this Deed of Trust.
ARTICLE V
ADDITIONAL COLLATERAL
5.01 Additional Collateral. (a) The Trustor acknowledges and agrees
that the Obligations are secured by the Trust Property and various other
collateral including, without limitation, at the time of execution of this Deed
of Trust certain personal property of the Trustor described in the Credit
Documents. The Trustor specifically acknowledges and agrees that the Trust
Property, in and of itself, if foreclosed or realized upon would not be
sufficient to satisfy the outstanding amount of the Obligations. Accordingly,
the Trustor acknowledges that it is in the Trustor's contemplation that the
other collateral pledged to secure the Obligations may be pursued by the
Beneficiary in separate proceedings in the various States, counties and other
countries where such collateral may be located and additionally that the Trustor
liable for payment of the Obligations will remain liable for any deficiency
judgments in addition to any amounts the Beneficiary may realize on sales of
other property or any other collateral given as security for the Obligations.
Specifically, and without limitation of the foregoing, it is agreed that it is
the intent of the parties hereto that in the event of a foreclosure of this Deed
of Trust, the Indebtedness evidencing the Obligations shall not be deemed merged
into any judgment of foreclosure, but rather shall remain outstanding. It is the
further intent and understanding of the parties that the Beneficiary, following
a Noticed Event of Default, may pursue all of its collateral with the
Obligations remaining outstanding and in full force and effect notwithstanding
any judgment of foreclosure or any other judgment which the Beneficiary may
obtain.
(b) The Trustor acknowledges and agrees that the Trust Property and the
property which may from time to time be encumbered by the other Credit Documents
may be located in more than one State or country and therefore the Trustor
waives and relinquishes any and all rights it may have, whether at law or
equity, to require the Beneficiary to proceed to enforce or exercise any rights,
powers and remedies it may have under the Credit Documents in any particular
manner, in any particular order, or in any particular State or other
jurisdiction. Furthermore, the Trustor acknowledges and agrees that the
Beneficiary shall be allowed to enforce payment and performance of the
Obligations and to exercise all rights and powers provided under this Deed of
Trust, or the other Credit Documents or under any provision of law, by one or
more proceedings, whether contemporaneous, consecutive or both in any one or
more
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States in which the security is located. Neither the acceptance of this Deed of
Trust, or any Credit Document nor its enforcement in one State, whether by court
action, power of sale, or otherwise, shall prejudice or in any way limit or
preclude enforcement of the Credit Documents through one or more additional
proceedings, in that State or in any other State or country.
(c) The Trustor further agrees that any particular remedy or
proceeding, including, without limitation, foreclosure through court action (in
a state or federal court) or power of sale, may be brought and prosecuted in the
local or federal courts of any one or more States as to all or any part of the
Trust Property or the property encumbered by the Credit Documents, wherever
located, without regard to the fact that any one or more prior or
contemporaneous proceedings have been situated elsewhere with respect to the
same or any other part of the Trust Property and the property encumbered by the
Credit Documents.
(d) The Beneficiary may resort to any other security held by the
Beneficiary for the payment of the Obligations in such order and manner as the
Beneficiary may elect.
(e) Notwithstanding anything contained herein to the contrary, the
Beneficiary shall be under no duty to the Trustor or others, including, without
limitation, the holder of any junior, senior or subordinate mortgage on the
Trust Property or any part thereof or on any other security held by the
Beneficiary, to exercise or exhaust all or any of the rights, powers and
remedies available to the Beneficiary.
ARTICLE VI
MISCELLANEOUS
6.01 Governing Law. The provisions of this Deed of Trust 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 Trust Property is located. All other provisions of this Deed of Trust 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 choice of laws provisions.
6.02 Limitation on Interest. It is the intent of the Trustor and the
Beneficiary in the execution of this Deed of Trust and all other instruments
evidencing or securing the Obligations to contract in strict compliance with
applicable usury laws. In furtherance thereof, the Beneficiary and the Trustor
stipulate and agree that none of the terms and provisions contained in this Deed
of Trust shall ever be construed to create a contract for the use, forbearance
or retention of money requiring payment of interest at a rate in excess of the
maximum interest rate permitted to be charged by relevant law. If this Deed of
Trust or any other instrument evidencing or securing the Obligations violates
any applicable usury law, then the interest rate payable in respect of the Loans
shall be the highest rate permissible by law.
6.03 Notices. All notices and other communications provided for
hereunder shall be in writing (including telegraphic, telex, facsimile
transmission or cable communications) and mailed, telegraphed, telexed,
telecopied, cabled or delivered (including by way of overnight courier):
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(i) if to the Trustor, at;
▇.▇. ▇▇▇▇▇▇▇▇ Tobacco Company
▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇▇▇▇▇-▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
(ii) if to the Beneficiary, at:
JPMorgan Chase Bank
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attn.: ▇▇▇▇ ▇▇▇▇▇
Tel. No.: ▇▇▇-▇▇▇-▇▇▇▇
Fax. No.: ▇▇▇-▇▇▇-▇▇▇▇
(iii) if to any Lender (other than the Beneficiary), at such
address as such Lender shall have specified in the Credit Agreement;
(iv) if to any Hedging Creditor, at such address as such
Hedging Creditor shall have specified in writing to the Trustor and the
Beneficiary;
(v) if to any New Senior Notes Creditor, at such address of
the New Senior Notes Trustee as the New Senior Notes Trustee shall have
specified in writing to the Trustor and the Beneficiary;
(vi) if to any Refinancing Senior Notes Creditor, at such
address of the Refinancing Senior Notes Trustee as the Refinancing
Senior Notes Trustee shall have specified in writing to the Trustor and
the Beneficiary;
or at such other address as shall have been furnished in writing by any Person
described above to the party required to give notice hereunder. Except as
otherwise expressly provided herein, all such notices and communications shall
be deemed to have been duly given or made (i) in the case of any Secured
Creditor, when received and (ii) in the case of the Trustor, when delivered to
the Trustor in any manner required or permitted hereunder.
6.04 Captions. The captions or headings at the beginning of each
Article and Section hereof are for the convenience of the parties and are not a
part of this Deed of Trust.
6.05 Amendment. None of the terms and conditions of this Deed of Trust
may be changed, waived, modified or varied in any manner whatsoever unless in
writing duly signed by the Trustor and the Beneficiary (with the consent of (x)
if prior to the CA Termination Date, the Required Lenders or, to the extent
required by Section 12.12 of the Credit Agreement, all of the Lenders and (y) if
on and after the CA Termination Date, the holders of at least a majority of the
outstanding principal amount of the Obligations remaining outstanding), provided
that (i) no such change, waiver, modification or variance shall be made to
Section 4.04 hereof or this Section 6.05 without the consent of each Secured
Creditor adversely affected thereby and (ii) that any change, waiver,
modification or variance affecting the rights and benefits of a single Class of
Secured Creditors (and not all Secured Creditors in a like or similar manner)
shall
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require the written consent of the Requisite Creditors of such Class of Secured
Creditors. For the purpose of this Agreement, the term "Class" shall mean each
class of Secured Creditors, i.e., whether (w) the Lender Creditors as holders of
the Credit Document Obligations, (x) the Hedging Creditors as holders of the
Hedging Obligations, (y) the New Senior Notes Creditors as holders of the New
Senior Notes Obligations, and (z) the Refinancing Senior Notes Creditors as
holders of the Refinancing Senior Notes Obligations. For the purpose of this
Agreement, the term "Requisite Creditors" of any Class shall mean each of (w)
with respect to each of the Credit Document Obligations, the Required Lenders,
(x) with respect to the Hedging Obligations, the holders of at least a majority
of all Secured Hedging Obligations outstanding from time to time, (y) with
respect to the New Senior Notes Obligations, the holders of at least a majority
of the outstanding principal amount of the New Senior Notes, (z) with respect to
the Refinancing Senior Notes Obligations, the holders of at least a majority of
the outstanding principal amount of the Refinancing Senior Notes.
6.06 Obligations Absolute. The Obligations of the Trustor hereunder
shall remain in full force and effect without regard to, and shall not be
impaired by, (a) any bankruptcy, insolvency, reorganization, arrangement,
readjustment, composition, liquidation or the like of the Trustor; (b) any
exercise or non-exercise, or any waiver of, any right, remedy, power or
privilege under or in respect of this Deed of Trust, any other Credit Document,
any Secured Hedging Agreement, any New Senior Notes Document or any Refinancing
Senior Notes Document; or (c) any amendment to or modification of any Credit
Document, any Secured Hedging Agreement, any New Senior Notes Document or any
Refinancing Senior Notes Document or any security for any of the Obligations;
whether or not the Trustor shall have notice or knowledge of any of the
foregoing.
6.07 Further Assurances. The Trustor shall, upon the request of the
Beneficiary and at the expense of the Trustor: (a) promptly correct any defect,
error or omission which may be discovered in the contents of this Deed of Trust
or any UCC financing statements filed in connection herewith; (b) promptly
execute, acknowledge, deliver and record or file such further instruments
(including, without limitation, further mortgages, deeds of trust, security
deeds, security agreements, financing statements, continuation statements and
assignments of rents or leases) and promptly do such further acts as may be
necessary, desirable or proper to carry out more effectively the purposes of
this Deed of Trust and to subject to the liens and security interests hereof any
property intended by the terms hereof to be covered hereby, including
specifically, but without limitation, any renewals, additions, substitutions,
replacements or appurtenances to the Trust Property; and (c) promptly execute,
acknowledge, deliver, procure and record or file any document or instrument
(including specifically any financing statement) deemed advisable by the
Beneficiary to protect, continue or perfect the liens or the security interests
hereunder against the rights or interests of third persons.
6.08 Partial Invalidity. If any of the provisions of this Deed of Trust
or the application thereof to any person, party or circumstances shall to any
extent be invalid or unenforceable, the remainder of this Deed of Trust, or the
application of such provision or provisions to persons, parties or circumstances
other than those as to whom or which it is held invalid or unenforceable, shall
not be affected thereby, and every provision of this Deed of Trust shall be
valid and enforceable to the fullest extent permitted by law.
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6.09 Partial Releases. No release from the Lien of this Deed of Trust
of any part of the Trust Property by the Beneficiary shall in any way alter,
vary or diminish the force or effect of this Deed of Trust on the balance of the
Trust Property or the priority of the Lien of this Deed of Trust on the balance
of the Trust Property.
6.10 Priority. This Deed of Trust is intended to and shall be valid and
have priority over all subsequent liens and encumbrances, including statutory
liens, excepting solely taxes and assessments levied on the real estate, to the
extent of the maximum amount secured hereby.
6.11 Covenants Running with the Land. All Obligations are intended by
the Trustor and the Beneficiary to be, and shall be construed as, covenants
running with the Trust Property. As used herein, the "Trustor" shall refer to
the party named in the first paragraph of this Deed of Trust and to any
subsequent owner of all or any portion of the Trust Property. All persons who
may have or acquire an interest in the Trust Property shall be deemed to have
notice of, and be bound by, the terms of the Credit Agreement and the other
Credit Documents; provided, however, that no such party shall be entitled to any
rights thereunder without prior written consent of the Beneficiary.
6.12 Successors and Assigns. This Deed of Trust shall be binding upon
and inure to the benefit of the Beneficiary and the Trustor and their respective
successors and assigns. Except as otherwise permitted by Credit Agreement, the
Trustor shall not, without the prior written consent of the Beneficiary, assign
any rights, duties, or obligations hereunder.
6.13 Purpose of Loans. The Trustor hereby represents and agrees that
the Loans, New Senior Notes and Refinancing Senior Notes are being obtained or
issued for business or commercial purposes, and the proceeds thereof will not be
used for personal, family, residential, household or agricultural purposes.
6.14 No Joint Venture or Partnership. The relationship created
hereunder and under the other Credit Documents, the Secured Hedging Agreements,
the New Senior Notes Documents and the Refinancing Senior Notes Documents is
that of creditor/debtor. The Beneficiary does not owe any fiduciary or special
obligation to the Trustor and/or any of the Trustor's, officers, partners,
agents, or representatives. Nothing herein or in any other Credit Document, any
Secured Hedging Agreement, any New Senior Notes Document or any Refinancing
Senior Notes Document is intended to create a joint venture, partnership,
tenancy-in-common or joint tenancy relationship between the Trustor and the
Beneficiary.
6.15 The Beneficiary as Collateral Agent for Secured Creditors. It is
expressly understood and agreed that the rights and obligations of the
Beneficiary as holder of this Deed of Trust and as Collateral Agent for the
Secured Creditors and otherwise under this Deed of Trust are only those
expressly set forth in this Deed of Trust and in the Credit Agreement. The
Beneficiary shall act hereunder pursuant to the terms and conditions set forth
herein and in Annex M to the Security Agreement, the terms of which shall be
deemed incorporated herein by reference as fully as if same were set forth
herein in their entirety (for such purpose, treating each reference to the
"Security Agreement" as a reference to this Agreement, each reference to
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the "Collateral Agent" as a reference to the Beneficiary and each reference to
an "Assignor" as a reference to a "Trustor").
6.16 Full Recourse. This Deed of Trust is made with full recourse to
the Trustor (including as to all assets of the Trustor, including the Trust
Property and the Secured Property).
6.17 Reduction of Secured Amount. In the event the amount secured by
this Deed of Trust is less than the aggregate Obligations, then the amount
secured hereby shall be reduced only by the last and final sums that the Trustor
or the Borrower repays with respect to the Obligations and shall not be reduced
by any intervening repayments of the Obligations. So long as the balance of the
Obligations exceeds the amount secured hereby, any payments of the Obligations
shall not be deemed to be applied against, or to reduce, the portion of the
Obligations secured by this Deed of Trust. Such payments shall instead be deemed
to reduce only such portions of the Obligations as are secured by other
collateral located outside of the state in which the Trust Property is located
or are unsecured.
6.18 Acknowledgment of Receipt. The Trustor hereby acknowledges receipt
of a true copy of this Deed of Trust.
6.19 Release Payment. (a) After the Termination Date (as defined
below), this Deed of Trust shall terminate (provided that all indemnities set
forth herein shall survive any such termination) and the Beneficiary, at the
request and expense of the Trustor, will execute and deliver to the Trustor a
proper instrument or instruments acknowledging the satisfaction and termination
of this Deed of Trust. As used in this Deed of Trust, (i) "CA Termination Date"
shall mean the date upon which the Total Commitment has been terminated, no
Letter of Credit or Note under the Credit Agreement is outstanding and all other
Credit Document Obligations have been paid in full in cash (other than arising
from indemnities for which no request for payment has been made) and (ii)
"Termination Date" shall mean the date upon which (x) the CA Termination Date
shall have occurred and (y) if (but only if) a Notified Non-Credit Agreement
Event of Default (as defined below) shall have occurred and be continuing on the
CA Termination Date (and after giving effect thereto), either (I) such Notified
Non-Credit Agreement Event of Default shall have been cured or waived by the
requisite holders of the relevant Obligations subject to such Notified
Non-Credit Agreement Event of Default or (II) all Secured Hedging Agreements (if
any) giving rise to a Notified Non-Credit Agreement Event of Default shall have
been terminated and all Obligations subject to such Notified Non-Credit
Agreement Event of Default shall have been paid in full (other than arising from
indemnities for which no request for payment has been made). As used herein
"Notified Non-Credit Agreement Event of Default" means (i) the acceleration of
the maturity of any New Senior Notes or Refinancing Senior Notes or the failure
to pay at maturity any New Senior Notes or Refinancing Senior Notes, or the
occurrence of any bankruptcy or insolvency Event of Default under the New Senior
Notes Indenture or the Refinancing Senior Notes Indenture, or (ii) any Event of
Default under a Secured Hedging Agreement, in the case of any event described in
clause (i) or (ii) to the extent the New Senior Notes Trustee, the Refinancing
Senior Notes Trustee or the relevant Hedging Creditor, as the case may be, has
given written notice to the Beneficiary that a "Notified Non-Credit Agreement
Event of Default" exists; provided that such written notice may only be given if
such Event of Default is continuing and, provided further, that any such
Notified Non-Credit Agreement Event of Default shall cease to exist (I) once
there is no longer any Event of
-25-
Default under the New Senior Notes Indenture, the Refinancing Senior Notes
Indenture or the respective Secured Hedging Agreement, as the case may be, in
existence, (II) in the case of an Event of Default under the New Senior Notes
Indenture or the Refinancing Senior Notes Indenture, after all New Senior Notes
Obligations or Refinancing Senior Notes Obligations, as the case may be, have
been repaid in full, (III) in the case of an Event of Default under a Secured
Hedging Agreement, such Secured Hedging Agreement has been terminated and all
Hedging Obligations thereunder repaid in full, (IV) in the case of an Event of
Default under the New Senior Notes Indenture or the Refinancing Senior Notes
Indenture, if the New Senior Notes Creditors or the Refinancing Senior Notes
Creditors, as the case may be, holding at least a majority of the aggregate
principal amount of the outstanding new Senior Notes or the Refinancing Senior
Notes, as the case may be, at such time have rescinded such written notice and
(V) in the case of an Event of Default under a Secured Hedging Agreement, the
requisite Hedging Creditors with Hedging Obligations thereunder at such time
have rescinded such written notice.
(b) So long as no Notified Non-Credit Agreement Event of Default has
occurred and is continuing, in the event that (x) prior to the CA Termination
Date, (i) any part of the Trust Property is sold or otherwise disposed of in
connection with a sale or other disposition permitted by Section 8.02 of the
Credit Agreement (it being agreed for such purposes that a release will be
deemed "permitted by Section 8.02 of the Credit Agreement" if the proposed
transaction is not prohibited by the Credit Agreement) or (ii) all or any part
of the Trust Property is otherwise released at the direction of the Required
Lenders (or all the Lenders if required by Section 12.12 of the Credit
Agreement), and the proceeds of such sale or disposition or from such release
are applied in accordance with the terms of the Credit Agreement to the extent
required to be so applied (it being understood and agreed by Trustor, Trustee
and Beneficiary that so long as no Noticed Event of Default has occurred and is
continuing, Trustor may use such proceeds as Trustor may reasonably determine)
or (y) on and after the CA Termination Date, any part of the Trust Property is
sold or otherwise disposed of without violating the New Senior Notes Documents,
the Refinancing Senior Notes Documents and the Secured Hedging Agreements, the
Beneficiary, at the request and expense of the Trustor, will release such Trust
Property from this Deed of Trust in the manner provided in clause (a) above (it
being understood and agreed that upon the release of all or any portion of the
Trust Property by the Beneficiary at the direction of the Lenders as provided
above, the Lien on the Trust Property in favor of the Hedging Creditors, the New
Senior Notes Creditors and the Refinancing Senior Notes Creditors shall
automatically be released).
(c) In addition to the foregoing, all Trust Property shall be
automatically released (subject to reinstatement upon the occurrence of a new
Trigger Event) in accordance with the provisions of the last sentence of Section
7.11(b) of the Credit Agreement.
(d) At any time that the Trustor desires that the Beneficiary take any
action to give effect to any release of Trust Property pursuant to the foregoing
Section 6.19(a), (b) or (c), it shall deliver to the Beneficiary a certificate
signed by an authorized officer describing the Trust Property to be released and
certifying its entitlement to a release pursuant to the applicable provisions of
Sections 6.19(b) or (c) and in such case the Beneficiary, at the request and
expense of the Trustor, will execute such documents (without recourse and
without any representation or warranty) as required to duly release such Trust
Property. The Beneficiary shall have no liability
-26-
whatsoever to any Secured Creditor as the result of any release of Trust
Property by it as permitted by (or which the Beneficiary in the absence of gross
negligence or willful misconduct believes to be permitted by) this Section 6.19.
Upon any release of Trust Property pursuant to Section 6.19(a), (b) or (c), so
long as no Noticed Event of Default is then in existence, none of the Secured
Creditors shall have any continuing right or interest in such Trust Property, or
the proceeds thereof (subject to reinstatement rights upon the occurrence of a
new Trigger Event in the case of a release pursuant to Section 6.19(c)(i)).
6.20 Time of the Essence. Time is of the essence of this Deed of Trust.
6.21 The Beneficiary's Powers. Without affecting the liability of any
other Person liable for the payment and performance of the Obligations and
without affecting the Lien of this Deed of Trust in any way, the Beneficiary
(acting at the direction of the requisite holders of the relevant Obligations
affected thereby) may, from time to time, regardless of consideration and
without notice to or consent by the holder of any subordinate Lien, right, title
or interest in or to the Trust Property, (a) release any Persons liable for the
Obligations, (b) extend the maturity of, increase or otherwise alter any of the
terms of the Obligations, (c) modify the interest rate payable on the principal
balance of the Obligations, (d) release or reconvey, or cause to be released or
reconveyed, all or any portion of the Trust Property, or (e) take or release any
other or additional security for the Obligations.
6.22 Rules of Usage. The following rules of usage shall apply to this
Deed of Trust unless otherwise required by the context:
(a) Singular words shall connote the plural as well as the
singular, and vice versa, as may be appropriate.
(b) The words "herein", "hereof" and "hereunder" and words of
similar import appearing in each such document shall be construed to
refer to such document as a whole and not to any particular section,
paragraph or other subpart thereof unless expressly so stated.
(c) References to any Person shall include such Person and its
successors and permitted assigns.
(d) Each of the parties hereto and their counsel have reviewed
and revised, or requested revisions to, such documents, and the usual
rule of construction that any ambiguities are to be resolved against
the drafting party shall be inapplicable in the construction and
interpretation of such documents and any amendments or exhibits
thereto.
(e) Unless an express provision requires otherwise, each
reference to "the Trust Property" shall be deemed a reference to "the
Trust Property or any part thereof", and each reference to "Secured
Property" shall be deemed a reference to "the Secured Property or any
part thereof".
6.23 No Off-Set. All sums payable by the Trustor shall be paid without
counterclaim, other compulsory counterclaims, set-off, or deduction and without
abatement, suspension,
-27-
deferment, diminution or reduction, and the Obligations shall in no way be
released, discharged or otherwise affected (except as expressly provided herein
or in the Credit Agreement) by reason of: (i) any damage or any condemnation of
the Trust Property or any part thereof; (ii) any title defect or encumbrance or
any eviction from the Trust Property or any part thereof by title paramount or
otherwise; or (iii) any bankruptcy, insolvency, reorganization, composition,
adjustment, dissolution, liquidation or other like proceeding relating to the
Beneficiary or the Trustor, or any action taken with respect to this Deed of
Trust by any agent or receiver of the Beneficiary. The Trustor waives, to the
extent permitted by law, all rights now or hereafter conferred by statute or
otherwise to any abatement, suspension, deferment, diminution or reduction of
any of the Obligations.
6.24 Consent to Jurisdiction and Service of Process; Waiver of Jury
Trial. (a) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS DEED OF TRUST OR
ANY OTHER CREDIT DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK
OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION
AND DELIVERY OF THIS AGREEMENT, THE TRUSTOR HEREBY IRREVOCABLY ACCEPTS FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS. THE TRUSTOR HEREBY IRREVOCABLY DESIGNATES,
APPOINTS AND EMPOWERS ▇▇▇▇▇▇▇▇-▇▇▇▇ CORPORATION SYSTEM, INC., WITH OFFICES ON
THE DATE HEREOF AT ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇-▇▇▇▇ AS ITS DESIGNEE,
APPOINTEE AND AGENT TO RECEIVE, ACCEPT AND ACKNOWLEDGE FOR AND ON ITS BEHALF,
AND IN RESPECT OF ITS PROPERTY, SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS,
NOTICES AND DOCUMENTS WHICH MAY BE SERVED IN ANY SUCH ACTION OR PROCEEDING. IF
FOR ANY REASON SUCH DESIGNEE, APPOINTEE AND AGENT SHALL CEASE TO BE AVAILABLE TO
ACT AS SUCH, THE TRUSTOR SHALL DESIGNATE A NEW DESIGNEE, APPOINTEE AND AGENT IN
THE STATE OF NEW YORK ON THE TERMS AND FOR THE PURPOSES OF THIS PROVISION
SATISFACTORY TO THIS DEED OF TRUST. THE TRUSTOR FURTHER IRREVOCABLY CONSENTS TO
THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH
ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED
MAIL, POSTAGE PREPAID, TO THE TRUSTOR AT ITS ADDRESS FOR NOTICES PURSUANT TO
SECTION 6.03 HEREOF, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH
MAILING. THE TRUSTOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF
PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY
ACTION OR PROCEEDING COMMENCED HEREUNDER OR ANY OTHER CREDIT DOCUMENT THAT
SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE. NOTHING HEREIN SHALL
AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT UNDER THE CREDIT AGREEMENT, ANY
LENDER OR THE HOLDER OF ANY NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED
BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY CREDIT
PARTY IN ANY OTHER JURISDICTION.
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(b) THE TRUSTOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY
NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR
PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS DEED OF TRUST OR ANY OTHER
CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY
FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT
THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN
AN INCONVENIENT FORUM.
(c) EACH OF THE PARTIES TO THIS DEED OF TRUST HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING
OUT OF OR RELATING TO THIS DEED OF TRUST, THE OTHER CREDIT DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
6.25 Statute Inapplicable. The provisions of N.C. Gen. Stat. Sec.
45-45.1 or any similar statute hereafter enacted in replacement or substitution
thereof shall be inapplicable to this Deed of Trust.
6.26 Future Advances. This Deed of Trust is given to secure the
Trustor's obligations under, or in respect of, the Credit Documents, the New
Senior Notes Documents and the Refinancing Senior Notes Documents to which the
Trustor is "party" and shall secure not only obligations with respect to
presently existing indebtedness under the foregoing documents and agreements but
also any and all other indebtedness now owing or which may hereafter be owing by
the Trustor or the Borrower, as the case may be, to the Secured Creditors,
however incurred, whether interest, discount or otherwise, and whether the same
shall be deferred, accrued or capitalized, including future advances and
re-advances, pursuant to the Credit Agreement, whether such advances are
obligatory or to be made at the option of the Lenders, or otherwise, to the same
extent as if such future advances were made on the date of the execution of this
Deed of Trust. The lien of this Deed of Trust shall be valid as to all
indebtedness secured hereby, including future advances, from the time of its
filing for record in the recorder's office of the county in which the Property
is located. This Deed of Trust is intended to and shall be valid and have
priority over all subsequent liens and encumbrances, including statutory liens,
excepting solely taxes and assessments levied on the real estate, to the extent
of the maximum amount secured hereby, and Permitted Encumbrances. Although this
Deed of Trust is given wholly or partly to secure all future obligations which
may be incurred hereunder and under the other Secured Debt Agreements, whether
obligatory or optional, the Trustor and the Beneficiary hereby acknowledge and
agree that the Beneficiary and the other Secured Creditors are obligated by the
terms of the Secured Debt Agreements to make certain future advances, including
advances of a revolving nature, subject to the fulfillment of the relevant
conditions set forth in the Secured Debt Agreements. The amount of present
obligations secured is $2,072,000,000, and the maximum principal amount,
including present and future obligations, which may be secured hereby at any one
time is $3,072,000,000. The period within which such future obligations may be
incurred commences on the date of this Deed of Trust and ends on the date
fifteen (15) years from the date hereof.
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6.27 Fees. Any reference in this Deed of Trust to "reasonable
attorney's fees" or other similar phraseology shall mean the actual and
reasonable fees incurred at customary and reasonable hourly rates in the
Property location, not pursuant to any statutory formula or percentage
calculation.
ARTICLE VII
CONCERNING THE TRUSTEE
7.01 Covenants of the Trustee. The Trustee, by its acceptance hereof,
covenants faithfully to perform and fulfill the trusts herein created, and
hereby waives any statutory fee and agrees not to require any compensation for
any services rendered by it in accordance with the terms hereof. The Trustee may
consult with counsel upon any matters arising hereunder and shall be fully
protected in relying as to the legal matters or on the advice of counsel. The
Trustee shall not incur any personal liability hereunder except for his gross
negligence or willful misconduct, and the Trustee may rely on any instrument,
document, or signature authorizing or supporting any action taken or proposed to
be taken by him hereunder, believed by him in good faith to be genuine.
7.02 Resignation; Removal of the Trustee. The Trustee may resign at any
time without notice. In the event of the resignation or death or dissolution of
the Trustee, or the Trustee's failure, refusal or inability, for any reason, to
make any sale or to perform any of the trusts herein declared, or, at the option
of the Beneficiary, without cause, the Beneficiary may appoint a substitute
trustee, who shall thereupon succeed to all the estates, titles, rights, powers,
and trusts herein granted to any vested in the Trustee. The instrument of
appointment may, but shall not be required to, be recorded in the recorder's
office(s) in which this Deed of Trust is recorded. If the Beneficiary is a
corporation, such appointment may be made on behalf of such Beneficiary by any
person who is then the president, or a vice-president, assistant vice-president,
treasurer, cashier, secretary, or any other authorized officer or agent of the
Beneficiary. In the event of the resignation or death of any substitute trustee,
or such substitute trustee's failure, refusal or inability to make any such sale
or perform such trusts, or, at the option of the Beneficiary, without cause,
successive substitute trustees may thereafter, from time to time, be appointed
in the same manner.
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IN WITNESS WHEREOF, the Trustor has caused this Deed of Trust to be
duly executed and delivered under seal as of the day and year first above
written.
▇. ▇. ▇▇▇▇▇▇▇▇ TOBACCO COMPANY,
a New Jersey corporation
[SEAL] By: /s/ ▇▇▇▇ ▇. ▇▇▇▇
------------------------------------------
Name: ▇▇▇▇ ▇. ▇▇▇▇
Title: Senior Vice President and Treasurer
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STATE OF ________ )
ss.:
COUNTY OF ________)
I, ▇▇▇▇▇ ▇▇▇▇▇▇▇, certify that ▇▇▇▇ ▇. ▇▇▇▇ personally came before me
this day and acknowledged that she is the Senior Vice President and Treasurer of
▇.▇. ▇▇▇▇▇▇▇▇ Tobacco Company, a New Jersey corporation, and that by authority
duly given and as the act of the corporation, she executed the foregoing
instrument as Senior Vice President and Treasurer of the corporation, for and on
behalf of the corporation.
WITNESS my hand and notarial seal, this 9th day of July, 2003.
/s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇
-------------------------------
Notary Public
My Commission Expires: July 28, 2005
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EXHIBIT "A"
DAVIE COUNTY, NORTH CAROLINA
Being located in Shady Grove Township, Davie County, North Carolina and being
more particularly described as follows:
Being known and designated as lot numbers 1, 2, 4, 6, 7, 10, 12, 13, 14, 15,
15A, 16A, 16B, 17 and 18 as shown on plat entitled Property of ▇.▇. ▇▇▇▇▇▇▇▇
Tobacco Co., by ▇▇▇ ▇. ▇▇▇▇▇, ▇▇. and Associated, dated August 10, 1962,
recorded in Plat Book 3, at Page 121 of the Davie County Registry.
Being all property of ▇.▇. ▇▇▇▇▇▇▇▇ Tobacco Company west of Baltimore Road as
shown on the aforesaid plat and shown on the Davie County Tax Maps as Parcel
Number F700000018.
This property was conveyed to ▇.▇. ▇▇▇▇▇▇▇▇ Tobacco Company by deeds
recorded in Deed Book 65, at Pages 221, 223, 224, 225, 228, 231, 233 and 237,
Davie County Registry.