HomeMy WebLinkAbout938636
WHEN RECORDED AND FILED, RETURN TO:
John A. Beckstead, Esq.
Holland & Hart LLP
60 E. South Temple, Suite 2000
Salt Lake City, Utah 84111-1031
RECEIVED 5/1/2008 at 10:43 AM
RECEIVING # 938636
BOOK: 693 PAGE: 434
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
000434
LEASEHOLD MORTGAGE WITH
ASSIGNMENT OF RENTS
(Store # 276, THAYNE, Wyoming Property)
FROM
-4
MA VERIK, INC.
a Wyoming corporation, individually and
doing business as Maverik Country Store,
Mortgagor
, \ ~
\
TO
ZIONS FIRST NATIONAL BANK,
a national banking association,
Mortgagee
Dated as of April~ 2008
Loan Amount: $90,000,000.00
THIS INSTRUMENT SECURES, IN PART, CERTAIN REVOLVING CREDIT
INDEBTEDNESS IN AN AGGREGATE PRINCIPAL AMOUNT OUTSTANDING WHICH
SHALL NOT AT ANY ONE TIME EXCEED U.S. $62,500,000.00, AND THE PRINCIPAL
INDEBTEDNESS OUTSTANDING AND UNPAID THEREON AND SECURED BY THIS
INSTRUMENT MAY DECREASE OR INCREASE FROM TIME TO TIME.
THIS INSTRUMENT ALSO SECURES, IN PART, CERTAIN TERM LOAN
INDEBTEDNESS IN AN AGGREGATE PRINCIPAL AMOUNT OF $27,500,000.00.
THIS INSTRUMENT ALSO SECURES PAYMENT OF DISCRETIONARY FUTURE
ADVANCES AND FUTURE OBLIGATIONS, AND THE PARTIES INTEND THAT THIS
INSTRUMENT SHALL ALSO SECURE SUCH DISCRETIONARY FUTURE ADVANCES.
THE MORTGAGED PROPERTY INCLUDES GOODS ("FIXTURES") WHICH ARE OR
ARE TO BECOME AFFIXED TO OR FIXTURES RELATED TO THE REAL PROPERTY
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000435
DESCRIBED ON PAGE 1 HEREOF, AND THIS INSTRUMENT IS INTENDED BY THE
PARTIES TO ALSO BE EFFECTIVE AS A FINANCING FILED AS A FIXTURE FILING.
THIS FINANCING STATEMENT IS TO BE FILED FOR RECORD AND INDEXED,
AMONG OTHER PLACES, IN THE REAL ESTATE RECORDS OF EACH COUNTY IN
WHICH SAID REAL PROPERTY IS LOCATED.
THE MORTGAGOR AND DEBTOR IS THE OWNER OF A RECORD INTEREST IN THE
REAL PROPERTY CONCERNED.
THIS INSTRUMENT ALSO COVERS PROCEEDS OF THE MORTGAGED PROPERTY.
THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS.
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LEASEHOLD MORTGAGE
WITH ASSIGNMENT OF RENTS
(Store # 276, THAYNE, Wyoming Property)
000436
This Leasehold Mortgage ("Mortgage") is made and entered into thi~ day of April,
2008, by and between Maverik, Inc., a Wyoming corporation, fonnerly known as Maverik
Country Stores, Inc., individually and· doing business as Maverik Country Store, whose address
is 880 West Center Street, North Salt Lake, Utah 84054 ("Mortgagor") and Zions First National
Bank, whose address is Commercial Banking Division, One South Main Street, Suite 200, Salt
Lake City, Utah 84111, Attention: Jim C. Stanchfield, Vice President, ("Mortgagee").
This Mortgage is made pursuant to a Fourth Restated and Amended Loan Agreement
dated Apri~ 2008 (the "Effective Date") between Mortgagor and Mortgagee (the "Loan
Agreement").
Mortgagor hereby mortgages, warrants, conveys, transfers, pledges and assigns to
Mortgagee, WITH STATUTORY POWER OF ADVERTISEMENT AND_ SALE, Mortgagor's leasehold estate
and all other right, title and interest in and to the property described on Exhibit A hereto, which
is incorporated herein by reference, situated in Lincoln County, State of Wyoming, commonly
known as 160 North Main, and known internally to Mortgagor as Store No. 276 (the "Real
Property"), including all of right, title and interest of Mortgagor in that certain Ground Lease,
dated March 31, 1997 (as amended, if applicable, the "Store Lease", from Terry 1. and Pam W.
Titensor ("Lessor").
Together with all buildings, fixtures, and improvements thereon; all waters and water
rights on, relating, or appertaining thereto; all easements, licenses and rights of way relating or
appertaining thereto; all rents, issues, royalties, income and profits appertaining thereto; all
awards made for taking by eminent domain or any proceeding or purchase in lieu thereof; the
proceeds of any insurance with regard thereto; all tenements, hereditaments, rights, privileges,
and appurtenances belonging or relating thereto or any improvements thereon; and including any
of the foregoing now existing or created or arising in the future (collectively, with the Real
Property, the "Property").
Mortgagor further agrees, represents, and covenants as follows:
1. Obligations Secured. This Mortgage secures (a) Promissory Note - Non-
Convertible Revolving Line of Credit dated the Effective Date executed by Mortgagor in favor
of Mortgagee in the maximum principal amount of fifteen million dollars ($15,000,000.00), with
a maturity date of April~, 2013, and all renewals, extensions, modifications and replacements
thereof (including any which increase the original principal amount), (b) Promissory Note -
Convertible Revolving Line of Credit dated the Effective Date executed by Mortgagor in favor
of Mortgagee in the maximum principal amount of forty-seven million five hundred thousand
dollars ($47,500,000.00), with a maturity date of April~, 2018, and all renewals, extensions,
modifications and replacements thereof (including any which increase the original principal
amount), (c) Promissory Note - Amortizing Tenn Loan dated the Effective 'executed by
Mortgagor in favor of Mortgagee in the maximum principal amount of twenty-seven million five
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000437
hundred thousand dollars ($27,500,000.00), with a maturity date ofApril;¿y'. 2015, and all
renewals, extensions, modifications and replacements thereof (including any ~ch increase the
original principal amount), (d) all obligations of Mortgagor arising from or relating to any
Interest Rate Management Transaction for the Loan (as such terms are defined in the Loan
Agreement) or any portion thereof, (e) all obligations of Mortgagor under the Loan Documents
(as defined in the Loan Agreement), including, without limitation, this Mortgage (but excluding
those obligations expressly excluded pursuant to Section 7, Hazardous Materials, below), and (f)
transactions in which the documents evidencing the indebtedness which are executed by
Mortgagor refer to this Mortgage as providing security therefor.
2. Representations and Warranties.
Mortgagee that:
Mortgagor represents and warrants to
a. Mortgagor is the owner of the leasehold estate in and to the Property.
b. The Store Lease is a valid and subsisting lease, is in full force and effect in
accordance with the terms thereof and has not been modified except as herein set forth.
All of the rents and other charges payable under the Store Lease prior to the execution
hereof have been paid, all of the terms, conditions and agreements contained in the Store
Lease have been performed and no default exists under the Store Lease. This Mortgage
is lawfully executed and delivered in conformity with the Store Lease and is, and will be
kept, a valid lien on the interests of the Mortgagor therein. There are currently no
assignments or subleases of the Store Lease by Mortgagor.
c. Mortgagor's leasehold estate in the Property and created pursuant to the
Store Lease is free and clear of any liens, claims, encumbrances, restrictions,
encroachments and interests whatsoever in favor of any third party, except (1) current
taxes and assessments which are not yet due and payable, and (2) rights of way,
easements, and licenses which are recorded and of public record.
3. Maintenance and Preservation of Property; Maintenance of Lease. Mortgagor
shall (a) maintain the Property in good condition and repair; (b) not commit or allow any waste
of the Property; ( c) complete promptly and in good and workmanlike manner any building,
fixture, or improvement which may be constructed on the Property; (d) except to the extent that
insurance proceeds are applied by Mortgagee to the satisfaction of the obligations secured by this
Mortgage, restore promptly and in good and workmanlike manner any of the Property which
may be damaged or destroyed; (e) comply at all times with all laws, ordinances, regulations,
covenants, and restrictions in any manner affecting the Property; (f) not commit or allow any act
upon the Property in violation of law; and (g) do all acts which by reason of the character or use
of the Property may be reasonably necessary to maintain and care for the Property.
Mortgagor is authorized to remodel, remove and modify any buildings, fixtures, or
improvements upon the Property in the ordinary course of Mortgagor's business as Mortgagor
deems necessary or prudent pursuant to Mortgagor's business operations and on-going business
plans for the Property, consistent with the terms of the Store Lease, and Mortgagor covenants
that any such actions taken by Mortgagor will not materially reduce or impair the fair market
value or utility of the Property.
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With regard to the Store Lease, Mortgagor covenants and agrees as follows:
000438
(i) Mortgagor hereby assigns to Mortgagee all of Mortgagor's right, title and
interest in and to the Store Lease (and all renewals, extensions, modifications, and replacements
thereof, including, without limitation, any security deposits made by Mortgagor). Upon an Event
of Default, in addition to the other rights and remedies hereunder, Lender may elect, by written
notice to Lessor and Mortgagor, to succeed to the interests of Mortgagor under the Store Lease.
(ii) The Mortgagor will promptly pay, or cause to be paid, all rents, charges
and other sums or amounts required to be paid by the Mortgagor under the terms of the Store
Lease, will further timely and fully keep and perform all of the covenants, terms, conditions and
provisions of the Store Lease required to be performed and complied with by the tenant
thereunder, and will not do or suffer to be done anything the doing of which, or refrain from
doing anything the omission of which, will impair the security of this Mortgage, unless
authorized by this Mortgage. The Mortgagor shall provide evidence of such payments
immediately upon the request of Mortgagee. The Mortgagor shall at all times do, or cause to be
done, all things necessary to prevent any default under the Store Lease. After the occurrence of
an event of default under this Mortgage, the Mortgagor shall do, or cause· to be done, all things-
necessary to preserve and keep unimpaired the rights of the Mortgagor as lessee under the Store
Lease and to prevent any termination, surrender, cancellation, forfeiture or impairment thereof.
(iii) At all times, Mortgagor shall not encumber, mortgage, or place a lien on
the Store Lease without the prior written consent of Mortgagee, which consent shall not be
unreasonably withheld. After the occurrence of an event of default under this Mortgage,
Mortgagor shall not terminate, modify, surrender, or materially amend the Store Lease, or waive
any terms or conditions of the Store Lease without the prior written consent of Mortgagee, which
consent shall not be unreasonably withheld. Mortgagor shall not sublet the Store Lease, nor
agree to any subordination of the Store Lease, except in favor of Mortgagee, without the prior
written consent of Mortgagee, which consent shall not be unreasonably withheld. The
Mortgagor also covenants that it will promptly notify the Mortgagee of any breach by the Lessor
under the Store Lease and of any inability of such Lessor to perform its obligations under the
Store Lease and will enforce the obligations of the Lessor under the Store Lease, to the end that
Mortgagor may enjoy all of the rights granted to it as lessee under the Store Lease. The
Mortgagor assigns to the Mortgagee the proceeds of any claim the Mortgagor may have against
such Lessor for such breach or inability. The Mortgagor shall, at its expense, diligently pursue
enforcement of its rights as lessee under the Store Lease, and shall deliver to the Mortgagee
copies of all papers and documents generated in connection therewith and shall consult and
cooperate with the Mortgagee.
(iv) The Mortgagor shall give the Mortgagee immediate notice of any material
default by the Mortgagor under the Store Lease or of the receipt by it of any notice of default
from the Lessor thereunder or notice of termination of the Store Lease pursuant to the provisions
thereof and shall furnish to the Mortgagee immediately any and all information which the
Mortgagee may reasonably request concerning the performance by the Mortgagor of the
covenants of the Store Lease or of this Mortgage. The Mortgagor shall permit forthwith the
Mortgagee or its representatives at all reasonable times to make investigation or examination
concerning the performance by the Mortgagor of the covenants of the Store'Lease or of this
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000439
Mortgage, and upon notice of any uncured material default by the Mortgagor under the Store
Lease, Mortgagee may, in its sole discretion and without any duty to do so, perfonn any duty or
obligation of Mortgagor under the Store Lease. Any such payments advanced by Mortgagee
shall be repaid by Mortgagor upon demand, together with interest thereon from the date of
advance until repaid, both before and after judgment, at the rate provided in the Non-Convertible
Line of Credit Note.
(v) This Mortgage, and the assignment of interests of Mortgagor in and to the
Store Lease to Mortgagee, shall apply and be effective with respect to any and all future and
additional leases entered into by Mortgagor and Lessor concerning the Property.
4. Insurance. Mortgagor shall secure and at all times maintain, at Mortgagor's
expense, the insurance coverages required by the Loan Agreement and the Store Lease.
In the event of any loss or damage to the Property, Mortgagor shall immediately give
Mortgagee written notice thereof.
5. Taxes and Assessments. Mortgagor shall pay when due all taxes, assessments,
and governmental charges and levies on the Property, except such as are being contested in good
faith by proper proceedings and as to which adequate reserves are maintained.
6. Utilities. Mortgagor shall pay when due all utility charges for gas, electricity,
water, sewer, garbage collection, or other services provided to the Property.
7. Hazardous Materials. "Hazardous Materials" means (a) "hazardous waste" as
defined by the Solid Waste Disposal Act, as amended by the Resource Conservation and
Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.), including any future amendments
thereto, and regulations promulgated thereunder, and as the tenn may be defined by any
contemporary state counterpart of such act; (b) "hazardous substance" as defined by the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C.
Section 9601 et seq.), including any future amendments thereto, and regulations promulgated
thereunder, and as the tenn may be defined by any contemporary state counterpart of such act;
(c) asbestos; (d) polychlorinated biphenyls; (e) underground or above ground storage tanks,
whether empty or filled or partially filled with any substance; (f) any substance the presence of
which is or becomes prohibited by any federal, state, or local law, ordinance, rule, or regulation;
and (g) any substance which under any federal, state, or local law, ordinance, rule, or regulation
requires special handling or notification in its collection, storage, treatment, transportation, use or
disposal.
"Environmental Condition" means any condition involving or relating to Hazardous
Materials and/or the environment affecting the Property, whether or not yet discovered, which
could or does result in any damage, loss, cost, expense, claim, demand, order, or liability to or
against Mortgagor or Mortgagee by any third party (including, without limitation, any
government entity), including, without limitation, any condition involving or relating to
Hazardous Materials affecting the Property resulting from the operation of Mortgagor's business
and/or operations and any activity or operation conducted by any third party in the vicinity of the
Property.
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000440
"Environmental Health and Safety Law" means any legal requirement that requires or
relates to:
a. advising appropriate authorities, employees, or the public of intended or
actual releases of Hazardous Materials, violations of discharge limits or other
prohibitions, and of the commencement of activities, such as resource extraction or
construction, that do or could have significant impact on the environment;
b. preventing or reducing to acceptable levels the release of Hazardous
Materials into the environment;
c. reducing the quantities, preventing the release, or minimizing the
hazardous characteristics of wastes that are generated;
d. assuring that products are designed, fonnulated, packaged, and used so
that they do not present unreasonable risks to human health or the environment when
used or disposed of;
e. protecting resources, species, or ecological amenities;
f. use, storage, transportation, sale, or transfer of Hazardous Materials or
other potentially hannful substances; .
g. cleaning up Hazardous Materials that have been released, preventing the
threat of release, and/or paying the costs of such clean up or prevention; or
h. making responsible parties pay for damages done to the health of others or
the environment or pennitting self-appointed representatives of the public interest to
recover for injuries done to public assets.
Mortgagor represents and warrants that, to the best of Mortgagor's knowledge, except for
petroleum products and packaged products held for sale and as Mortgagee has been otherwise
previously advised by Mortgagor in writing, no Hazardous Materials are now located on, in, or
under the Property, nor is there any Environmental Condition on, in, or under the Property and,
to the best of Mortgagor's knowledge, neither Mortgagor nor any other person has ever caused or
pennitted any Hazardous Materials to be placed, held, used, stored, released, generated, located
or disposed of on, in or under the Property, or any part thereof, nor caused or allowed an
Environmental Condition to exist on, in or under the Property, which may have a material impact
or effect upon the financial or other condition of Mortgagor or Mortgagor's operations.
Mortgagor further represents and warrants that, to the best of Mortgagor's knowledge, no
investigation, administrative order, consent order and agreement, litigation or settlement with
respect to Hazardous Materials and/or an Environmental Condition is proposed, threatened,
anticipated or in existence with respect to the Property, which may have a material impact or
effect upon the financial or other condition of Mortgagor or Mortgagor's operations.
Mortgagor will:
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000441.
a. Not pennit the presence, use, disposal, storage or release of any Hazardous
Materials on, in, or under the Property, except in the ordinary course of Mortgagor's
business under conditions that are generally recognized to be appropriate and safe and
that are in material compliance with all applicable Environmental Health and Safety
Laws.
b. Not pennit any substance, activity or Environmental Condition on, in,
under or affecting the Property which is in material violation of any Environmental
Health and Safety Laws.
c. Comply with the material provisions of all Environmental Health and
Safety Laws.
d. Promptly after learning of the same, notify Mortgagee of any material
discharge of Hazardous Materials, Environmental Condition, or environmental complaint
or notice received from any governmental agency or any other party.
e. Upon any material discharge of Hazardous _Materials or upon the
occurrence or discovery of any material Environmental Condition, promptly address the
same in material compliance with all Environmental Health and Safety Laws, promptly
pursue any responsible third parties, promptly pay any fine or penalty assessed in
connection therewith, or diligently contest in good faith, and promptly notify Mortgagee
of such events and of the actions being taken by Mortgagor to address and remedy the
same.
f. From time to time upon request of Mortgagee, provide copies of all
environmental inspections and reports in the possession of or available to Mortgagor
concerning the Property.
g. Pennit Mortgagee, at Mortgagee's expense, to inspect the Property for
Hazardous Materials and Environmental Conditions, to conduct tests thereon, and to
inspect all books, correspondence, and records pertaining thereto. Any such testing shall
be done without unreasonable disruption of Mortgagor's business and testing will be
done only upon reasonable grounds or after an Event of Default.
h. If there has been a material spill or discharge of a Hazardous Material on
the Property, upon Mortgagee's request, and at Mortgagor's expense, provide a report
(including all validated and unvalidated data generated for such reports) satisfactory to
Mortgagee in scope, fonn, and content, and provide to Mortgagee such other and further
assurances reasonably satisfactory to Mortgagee, that Mortgagor is in compliance with
these covenants concerning Hazardous Materials and Environmental Conditions, and that
the violation thereof has been corrected in compliance with all applicable Environmental
Health and Safety Laws. Mortgagee may also obtain an additional report from an
independent environmental engineer selected by Mortgagee (the "Independent Report").
If the findings and conclusions in the Independent Report are materially different from
those contained in the report provided by Mortgagor, all costs and expenses incurred with
respect to the Independent Report shall be paid by Mortgagor. If the findings and
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000442
conclusions contained in the Independent Report are substantially similar to those
contained in the report provided by Mortgagor, then all costs and expenses incurred with
respect to the Independent Report shall be paid by Mortgagee.
i. Promptly advise Mortgagee of any additional, supplemental, new, or other
infonnation concerning any Hazardous Materials or Environmental Conditions that could
have a material adverse effect upon the value or marketability of the Property.
Upon the spill or discharge of Hazardous Materials and/or the occurrence or discovery of
an Environmental Condition on the Property, Mortgagor shall provide to Mortgagee a good faith
estimate of the costs of clean-up and remediation of the spill, discharge, or occurrence within one
hundred eighty (180) days of the spill, discharge, occurrence or discovery. If either (i) the
estimated costs of clean-up and remediation for the Property exceed two hundred fifty thousand
dollars ($250,000.00), or (ii) Mortgagor fails to timely provide such estimate and such failure is
not remedied by providing such estimate within twenty (20) days of written notice by Mortgagee
to Mortgagor of such failure, then in either case the Mortgagee may, in the discretion of
Mortgagee, classify the Property as "Non-Confonning Collateral," as defined in the Loan
Agreement, and may eliminate the EBITDA (as defined in-the Loan Agreement) from the
Property for purposes of calculating [mancial covenants and the Applicable Margins (as defined
in the Loan Agreement) that are derived from the calculation ofEBITDA.
The spill or discharge of Hazardous Materials, and/or the occurrence or discovery of an
Environmental Condition, on the Property, and failure to timely provide an estimate of the costs
of clean-up and remediation shall not constitute an event of default under this Mortgage or an
Event of Default (as defined in the Loan Agreement).
Mortgagor shall indemnify Mortgagee for any and all claims and liabilities, and for
damages which may be awarded or incurred by Mortgagee, and for all reasonable attorneys fees,
legal expenses, and other out-of-pocket expenses, arising from or related in any manner, directly
or indirectly, to (a) Hazardous Materials located on, in, or under the Property; (b) any
Environmental Condition on, in, or under the Property; (c) violation of or non-compliance with
any Environmental Health and Safety Law; (d) any breach or violation of the representations,
warranties, and covenants contained in this Section 7, Hazardous Materials; and/or (e) any
activity or omission, whether occurring on or off the Property, whether prior to or during the
tenn of the obligations secured hereby, and whether by Mortgagor or any other person or entity,
relating to Hazardous Materials or an Environmental Condition affecting the Property. The
indemnification obligations of Mortgagor under this Section 7, Hazardous Materials, shall
survive any release, or foreclosure of this Mortgage, any transfer in lieu of foreclosure, and
satisfaction of the obligations secured hereby.
Notwithstanding the foregoing, (a) the indemnification obligations of Mortgagor shall not
extend to any claims between Mortgagee and/or any Participant Lender (as defined in the Loan
Agreement), and (b) in the event Mortgagor is detennined to not be liable for the amounts
asserted by Mortgagee and/or any Participant Lender pursuant to this Section, Mortgagor shall
not be liable to indemnify Mortgagee and/or any Participant Lender for attorneys fees, legal
expenses or other out-of-pocket expenses incurred by Mortgagee and/or any Participant Lender
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000443
in defending such claims for which indemnification IS requested or in asserting such
indemnification obligations.
So long as no event of default under this Mortgage or an Event of Default (as defmed in
the Loan Agreement) has occurred which is not timely cured or waived, Mortgagor shall have
the sole and complete control of the defense of any such claims. Mortgagor is authorized to
settle or otherwise compromise any such claims as Mortgagor in good faith detennines shall be
in its best interests. Upon the occurrence of an event of default under this Mortgage or an Event
of Default (as defined in the Loan Agreement) and the expiration of any time allowed for cure of
such event of default or Event of Default, Mortgagee may, at its option, elect to take over
defense of any such claims and upon notice to Mortgagor of such election, the rights of
Mortgagor set forth in the two preceding sentences shall immediately tenninate and thereafter
Mortgagee shall have the sole and complete control of the defense of any such claims.
Mortgagee is authorized to settle or otherwise compromise any such claims as Mortgagee in
good faith detennines shall be in its best interests.
Notwithstanding anything to the contrary in this Mortgage, any indemnification amount
owing to Mortgagee pursuant to this Section 7, Hazardous Materials, shall not be secured by the
Property.
8. Defense of Title. Mortgagor shall keep the Property free and clear of any liens for
the supplying of services, labor or materials, unless Mortgagor is diligently contesting the
validity of such lien by timely and appropriate procedures and adequate cash reserves for such
lien have been set aside. Mortgagor shall promptly release any lien, mortgage, or other
encumbrance upon the Property which has or may have priority over or equality with this
Mortgage. Upon request of Mortgagee, Mortgagor shall appear in and defend any action or
proceeding purporting to affect the security hereof, the Property, or the rights or powers of
Mortgagee. Should Mortgagee elect to appear in or defend any such action or proceeding,
Mortgagor shall pay all costs and expenses, including costs of evidence of title and reasonable
attorneys fees and legal expenses, incurred by Mortgagee.
9. Right to Perfonn for Mortgagor. If not paid or discharged when due, and upon
the failure by Mortgagor to payor discharge within thirty (30) days of its receipt of notice from
Mortgagee of its intent to payor discharge the same, Mortgagee may, in its sole discretion and
without any duty to do so, (a) elect to discharge taxes, assessments, liens, mortgages, or other
encumbrances upon the Property which have or may have priority over or equality with this
Mortgage, (b) perfonn any duty or obligation of Mortgagor, or (c) pay recording, insurance or
other charges payable by Mortgagor or provide insurance if Mortgagor fails to do so. Any such
payments advanced by Mortgagee shall be reimbursed by Mortgagor upon demand, together
with interest thereon from the date of the advance until repaid, both before and after judgment, at
the default rate provided in the Line of Credit Notes (as defined in the Loan Agreement).
10. Further Assurance. Mortgagor shall execute and deliver such further instruments
and documents and do such further acts as may be necessary or as may be reasonably requested
by Mortgagee to carry out the purposes of this Mortgage and to subject to the lien and mortgage
created or intended to be created hereby any property, rights, or interests covered or intended to
be covered by this Mortgage.
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000444
11. Attornment. All future lease agreements, to the extent subleasing is allowed
under the Store Lease, entered into by Mortgagor, as sub-lessor, which pertain to the Property
shall contain a covenant on the part of the tenant, enforceable by Mortgagee, obligating such
tenant, upon request of Mortgagee, to attorn to and become a tenant of Mortgagee or any
purchaser or through foreclosure of this Mortgage, for the unexpired tenn of, and subject to the
tenns and conditions of, such future lease agreements.
12. Condemnation Awards. Subject to any provisions in the Store Lease regarding
Condemnation of the Property, if the Property, the improvements thereon, or any portion thereof
should be taken or damaged by reason of any public improvement or condemnation proceeding,
Mortgagee shall be entitled to all of Mortgagor's rights in and to compensation, awards, and
other payments and relief therefor, and shall be entitled, at Mortgagee's option, to commence,
appear in, and prosecute in Mortgagee's own name any action or proceeding, and to make any
compromise or settlement, in connection with such taking. Mortgagor shall promptly give notice
to Mortgagee of any condemnation proceeding or any taking for public improvement. All such
compensation, awards, and other payments and relief are hereby assigned to Mortgagee.
After deducting all costs and expenses, including reasonable attorneys fees and legal
expenses, incurred by Mortgagee in connection with such compensation, awards, and other
payments and relief, Mortgagee may, in its sole discretion and without any duty to do so, release
such compensation or apply such compensation, or any portion thereof, on any of the obligations
secured by this Mortgage, whether or not then due. Mortgagee shall have no obligation to apply
such compensation to restore or repair damage to the Property, regardless of whether such taking
has a significant adverse impact on the operation of the remaining portion of the Property.
13. No Further Encumbrances. Mortgagor shall not further encumber, mortgage or
place any lien upon the Property, nor cause or allow by operation of law the encumbrance of the
Property without the written consent of Mortgagee, even though such encumbrance may be
junior to this Mortgage.
14. Evidence of Title. Upon an Event of Default hereunder (which continues uncured
beyond applicable cure periods), and upon the request of Mortgagee, Mortgagor shall deliver and
pay for a title insurance policy with respect to the Property in a fonn and an amount satisfactory
to Mortgagee, insuring Mortgagor's leasehold title ownership in the Property, ftee of any prior
liens or encumbrances on the leasehold estate.
15. Access. Mortgagee and Mortgagee's representatives are hereby authorized and
shall have the right, at all reasonable times during the existence of this Mortgage, to enter upon
the Property to inspect the Property and to perfonn any of the acts authorized under this
Mortgage.
16. Assignment of Rents. As additional security for the obligations secured by this
Mortgage, Mortgagor hereby assigns to Mortgagee, during the time until this Mortgage is
released, all rents, issues, royalties, income and profits of the Property. Until the occurrence of
any default under this Mortgage or on any obligation secured hereby, Mortgagor shall have the
right to collect and retain all rents, issues, royalties, income and profits of the Property. Uponethe occurrence of any default under this Mortgage or on any obligation secured hereby, at the
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000445
election of Mortgagee, the right of Mortgagor to collect and retain such rents, issues, royalties,
income and profits shall cease and Mortgagee shall have the right, with or without taking
possession of the Property, to collect and retain all such rents, issues, royalties, income and
profits. Any sums so collected, after the deduction of all costs and expenses of operation and
collection, including reasonable attorneys fees and legal expenses, shall be applied toward the
payment of the obligations secured by this Mortgage. Such right of collection shall obtain both
before and after the exercise of the power of sale provisions of this Mortgage, the foreclosure of
this Mortgage and throughout any period of redemption.
The rights granted under this Section 16, Assignment of Rents, shall in no way be
dependent upon and shall apply without regard to whether all or a portion of the Property is in
danger of being lost, removed, or materially injured, or whether the Property or any other
security is adequate to discharge the obligations secured by this Mortgage. Mortgagee's failure
or discontinuance at any time to collect any of such rents, issues, royalties, income and profits
shall not in any manner affect the right, power, and authority of Mortgagee thereafter to collect
the same.
Neither any provision contained herein, nor Mortgagee's exercise of its right to collect
such rents, issues, royalties, income and profits, shall be, or be construed to be, an affirmation by
Mortgagee of any tenancy, lease, sublease, option, or other interest in the Property, or an
assumption of liability under, or a subordination of this Mortgage to, any tenancy, lease,
sublease, option, or other interest in the Property. All tenants, lessees, sub lessees and other
persons who have any obligation to make any payment to Mortgagor in connection with the
Property are hereby authorized and directed to make such payments directly to Mortgagee upon
the demand of Mortgagee. Mortgagee's receipt of such rents, issues, royalties, income, and
profits shall be a discharge of the obligation of the tenant or other person' obligated to make the
payment.
Collection by Mortgagee of such rents, issues, royalties, income, and profits shall not
cure or waive any default under this Mortgage.
17. Assignment of Leases. Mortgagor hereby assigns to Mortgagee all right, title and
interest of Mortgagor in and to any lease agreements entered into by Mortgagor as lessee for the
acquisition of furnishings, goods or equipment for use on or in connection with the Property.
This assignment shall be effective upon the occurrence of any default under this Mortgage or the
obligations secured hereby and written acceptance of this assignment by Mortgagee.
18. Default. Time is of the essence of this Mortgage. The occurrence of anyone of
the following shall constitute an event of default:
a. Any representation or warranty made by or on behalf of Mortgagor in this
Mortgage is materially false or materially misleading when made;
b. Mortgagor fails in the payment or performance of any obligation,
covenant, agreement or liability created by or contemplated by this Mortgage or secured
by this Mortgage; or
c.
An Event of Default (as defined in the Loan Agreement) occurs; or
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000446
d. There is any default or breach by Mortgagor, or any sublessee of
Mortgagor, under the tenns of the Store Lease.
No course of dealing or any delay or failure to assert any default shall constitute a waiver
of that default or of any prior or subsequent default.
19. Notice of Default; Acceleration: Remedies. In order to exercise any remedies
following an event of default hereunder or under the Loan Agreement, Mortgagee shall give
written notice to Mortgagor specifically describing the event of default and stating what must be
done in order to cure such default. If Mortgagor fails, within thirty (30) days following the date
such notice is given (notice will be deemed given when placed in the United States Mail,
certified, return receipt requested, addressed to Mortgagor at its last address furnished to
Mortgagee), to make any payment demanded, or, if the default involves a breach other than the
payment of money, to reasonably and immediately undertake to cure such default in a reasonable
and expeditious manner, then Mortgagee shall have the right, without further notice to
Mortgagor, to accelerate the obligations secured by this Mortgage and treat the same as being
immediately due and payable forthwith, and Mortgagee may proceed to foreclose this Mortgage
either by advertisement and sale of the Property as provided and pennitted by Wyoming law,
with statutory POWER OF ADVERTISEMENT AND SALE being expressly given, or by an
action in equity or at law. Out of the proceeds of any foreclosure sale, whether foreclosure by-
advertisement and sale or by judicial proceeding, Mortgagee shall retain or receive all sums due
to it hereunder, including the costs of foreclosure and sale, including attorneys fees in a
reasonable amount. All excess funds shall be paid to Mortgagor. Moreover, upon the
occurrence of an event of default under this Mortgage, Mortgagee shall have the right of access
to the Property to the extent necessary to perfonn under and preserve the Store Lease prior to a
trustee's sale or judicial foreclosure.
20. Surrender of Possession. To the extent pennitted by applicable law, if possession
has not previously been surrendered by Mortgagor, Mortgagor shall surrender possession of the
Property to the purchaser immediately after any sale.
21. UCC Remedies. Notwithstanding anything to the contrary herein, with regard to
all fixtures and personal property in which security interests are granted to Mortgagee by this
Mortgage, Mortgagee shall have the right, at the option of Mortgagee, to exercise any and all
rights and remedies available to Mortgagee as a secured party under the applicable Unifonn
Commercial Code and any and all rights and remedies available to Mortgagee at law, in equity,
or by statute. Upon written demand from Mortgagee, Mortgagor shall, at Mortgagor's expense,
assemble such fixtures and personal property and make them available to Mortgagee at a
reasonably convenient place designated by Mortgagee.
22. Receiver. If an event of default occurs under this Mortgage, Mortgagee shall
have the right, without regard to the then value of the Property or the interest of Mortgagor
therein, upon notice to Mortgagor, to apply to any court having jurisdiction to appoint a receiver
of the Property. Mortgagor hereby irrevocably consents to such appointment and further
consents to and approves Mortgagee as such receiver. Any such receiver shall have all the usual
powers and duties of a receiver and shall continue as such and exercise all such powers until
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000447
completion of the sale of the Property or the foreclosure proceeding, unless the receivership is
sooner tenninated.
23. Deficiency. Mortgagor agrees to pay any deficiency arising ITom any cause, to
which Mortgagee may be entitled after applications of the proceeds of any sale, and Mortgagee
may commence suit to collect such deficiency in accordance with Wyoming law.
24. No Remedy Exclusive. The rights and remedies herein conferred are cumulative
and not exclusive of any other rights and remedies and shall be in addition to every other right,
power and remedy herein specifically granted or hereafter existing at law, in equity, or by statute
which Mortgagee might otherwise have, and any and all such rights and remedies may be
exercised :&om time to time and as often and in such order as Mortgagee may deem expedient.
No delay or omission in the exercise of any such right, power or remedy or in the pursuance of
any remedy shall impair any such right, power or remedy or be construed to be a waiver thereof
or of any default or to be an acquiescence therein.
25. Due on Sale. If Mortgagor shall either sell, conveyor transfer the Property, or
any part thereof, without the prior written consent of Mortgagee, or be divested of title in any
manner except by proceedings in eminent domain, whether voluntarily or involuntarily, the
obligations secured by this Mortgage shall, at the option of Mortgagee and without demand or
notice, immediately accelerate and become due and payable in full. If Mortgagee exercises this
option to accelerate, Mortgagee shall give Mortgagor written notice of such acceleration. Such
notice shall provide a period of not less than thirty (30) days :&om the date the notice is given
within which Mortgagor may pay the sums declared due. If Mortgagor fails to pay such sums
within such period, Mortgagor shall· be in default and Mortgagee may exercise its remedies
hereunder.
26. Other Collateral. The obligations secured by this Mortgage may also be secured
by other collateral not identified in this Mortgage.
27. Attorneys Fees and Legal Expenses. In the event of default under this Mortgage,
Mortgagor agrees to pay all reasonable attorneys fees and legal expenses incurred by or on
behalf of Mortgagee in enforcement of this Mortgage, in exercising any rights and remedies
arising :&om such default, or otherwise related to such default.
Regardless of default, Mortgagor agrees to pay all expenses, including reasonable
attorneys fees and legal expenses, incurred by Mortgagee in any bankruptcy proceedings in
which Mortgagor is the debtor or the Property or any interest therein is property of the
bankruptcy estate including, without limitation, expenses incurred in modifying or lifting the
automatic stay, assuming or rejecting leases, detennining adequate protection, use of cash
collateral, or relating to any plan of reorganization.
28. Indemnification. Mortgagor shall indemnify Mortgagee for any and all claims
and liabilities, and for damages which may be awarded or incurred by Mortgagee, and for all
reasonable attorneys fees, legal expenses, and other out-of-pocket expenses incurred in
defending such claims, arising :&om or related in any manner to the negotiation, execution, or
perfonnance of this Mortgage, but excluding any claims and liabilities based upon breach or
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000448
default by Mortgagee under this Mortgage or gross negligence or misconduct of Mortgagee.
Mortgagor and Mortgagee expressly intend that Mortgagor's indemnification of Mortgagee as
stated in this Section 28 shall include any and all claims, liabilities, and damages, and all
reasonable attorneys fees, legal expenses, and other out-of-pocket expenses incurred in
defending such claims, liabilities, and damages, arising ftom Mortgagee's simple or ordinary
negligence.
Notwithstanding the foregoing, (a) the indemnification obligations of Mortgagor shall not
extend to any claims between Mortgagee and/or any Participant Lender, and (b) in the event
Mortgagor is determined to not be liable for the amounts asserted by Mortgagee and/or any
Participant Lender pursuant to this Section, Mortgagor shall not be liable to indemnify
Mortgagee and/or any Participant Lender for attorneys fees, legal expenses or other out-of-
pocket expenses incurred by Mortgagee and/or any Participant Lender in defending such claims
for which indemnification is requested or in asserting such indemnification obligations.
So long as no event of default under this Mortgage or an Event of Default (as defined in
the Loan Agreement) has occurred which is not timely cured or waived, Mortgagor shall have
the sole and -complete control of the defense of any such claims. Mortgagor is authorized to
settle or otherwise compromise any such claims as Mortgagor in good faith determines shall be
in.its· best interests. Upon the occurrence of an event of default under this Mortgage or an Event
of Default (as defined in the Loan Agreement) and the expiration of any time allowed for cure of
such event of default or Event of Default, Mortgagee may, at its option, elect to take over
defense of any such claims and upon notice to Mortgagor of such election, the rights of
Mortgagor set forth in the two preceding sentences shall immediately terminate and thereafter
Mortgagee shall have the sole and complete control of the defense of any such claims.
Mortgagee is authorized to settle or otherwise compromise any such claims as Mortgagee in
good faith determines shall be in its best interests.
29. Notices. All notices or demands by any party hereto shall be in writing and shall
be sent by certified mail, return receipt requested. Notices so mailed, shall be deemed received
two (2) Banking Business Days after deposit in a United States post office box, postage prepaid,
properly addressed to the mailing addresses set forth below or to such other addresses as
Mortgagor or Mortgagee may ftom time to time specify in writing. Any notice so addressed and
otherwise delivered shall be deemed to be given upon the earlier of (i) two (2) Banking Business
Days after deposit in a United States post office box or (ii) when actually received by the
addressee.
Mortgagor:
Maverik, Inc.
880 West Center Street
North Salt Lake, Utah 84054
Attention: Michael V. Call
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13
with copies to:
000449
Ray, Quinney & Nebeker, P.C.
36 South State Street, Suite 1400
Salt Lake City, Utah 84111
Attention: Douglas M. Monson, Esq.
Mortgagee:
Zions First National Bank
Commercial Banking Division
One South Main Street, Suite 200
Salt Lake City, Utah 84111
Attention: Jim C. Stanchfield
Vice President
with copies to:
Holland & Hart LLP
60 E. South Temple, Suite 2000
Salt Lake City, Utah 84111-1031
Attention: John A. Beckstead, Esq.
30. Mortgagee's Powers. Without affecting the liability of any person liable for the
payment of the obligations secured hereby, and without affecting the lien or charge of this
Mortgage upon any portion of the Property not then or theretofore released as security for the
obligations secured hereby, Mortgagee may, from time to time and without notice: (a) reconvey
any part of said Property, (b) consent in writing to the making of any map or plat thereof, ( c) join
in granting any easement thereon, (d) join in any extension agreement or any agreement
subordinating the lien or charge hereof, ( e) release any person so liable, (f) extend the obligations
secured hereby, (g) grant other indulgences, (h) release or reconvey, or cause to be released or
reconveyed, at any time at Mortgagee's option any parcel, portion or all of the Property, (i) take
or release any other or additional security or any guaranty for any obligation secured hereby, or
0) make compositions or other arrangements with debtors in relation thereto.
31. Redemption Rights of Mortgagor. Mortgagor hereby represents, warrants,
acknowledges and agrees that the Real Property is not "agricultural real estate," as such tenn is
used and defmed in Wyoming Statutes Annotated § 1-18-103(c).
32. Request for Notice. Mortgagor requests that a copy of any notice of default and
of any notice of sale hereunder be mailed to Mortgagor at the address for Mortgagor provided in
Section 29, Notices.
33. Revival Clause. If the incurring of any debt by Mortgagor or the payment of any
money or transfer of property to Mortgagee by or on behalf of Mortgagor or any guarantor
should for any reason subsequently be detennined to be "voidable" or "avoidable" in whole or in
part within the meaning of any state or federal law (collectively "voidable transfers"), including,
without limitation, fraudulent conveyances or preferential transfers under the United States
3825648 3.DOC
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000450
Bankruptcy Code or any other federal or state law, and Mortgagee is required to repay or restore
any voidable transfers or the amount or any portion thereof, or upon the advice of Mortgagee's
counsel is advised to do so, then, as to any such amount or property repaid or restored, including
all reasonable costs, expenses, and attorneys fees of Mortgagee related thereto, the liability of
Mortgagor and any guarantor, and each of them, and this Mortgage, shall automatically be
revived, reinstated and restored and shall exist as though the voidable transfers had never been
made.
34. Release of Lien. Upon payment and perfonnance in full by Mortgagor of all the
obligations secured hereby, Mortgagee shall release the Mortgage as required by Wyoming
Statutes Annotated § 34-1-132.
35. Multi-State Real Estate Transaction. Mortgagor acknowledges that this Mortgage
is one of two or more other deeds of trust and mortgages (hereinafter collectively the "Other
Security Documents") which secure the obligations of Mortgagor in whole or in part. Mortgagor
agrees that the lien of this Mortgage shall be absolute and unconditional and shall not in any
manner be affected or impaired by any acts or omissions whatsoever of Mortgagee and, without
limiting the generality of the foregoing, the lien hereof shall not be impaired by any acceptance
by Mortgagee of any security for or guarantees of the obligations of Mortgagor or by any failure,
neglect or omission on the part of Mortgagee to realize upon or protect any of the obligations of
Mortgagor or any collateral security therefor including the Other Security Documents. The lien
hereof shall not in any manner be impaired or affected by any release (except as to the property
released), sale, pledge, surrender, compromise, settlement, renewal, extension, indulgence,
alteration, changing, modification or any disposition of any of the indebtedness secured hereby
or of any of the collateral security therefor, including the Other Security Documents or of any
guarantee thereof Mortgagee may, at its discretion, foreclose, exercise any power of sale or
exercise any other remedy available to it under any or all of the Other Security Documents
without first exercising or enforcing any of its rights and remedies hereunder, or may foreclose,
or exercise any power of sale, or exercise any other right available under this Mortgage without
first exercising or enforcing any of its rights and remedies under any or all of the Other Security
Documents. Such exercise of Mortgagee's rights and remedies under any or all of the Other
Security Documents shall not in any manner impair the indebtedness secured hereby or lien of
the Mortgage, and any exercise of the rights or remedies of Mortgagee hereunder shall not impair
the lien of any of the Other Security Documents or any of Mortgagee's rights and remedies
thereunder. Mortgagor specifically consents and agrees that Mortgagee may exercise its rights
and remedies hereunder and under the Other Security Documents separately or concurrently and
in any order that Mortgagee may deem appropriate.
36. Governing Law.
a. THIS MORTGAGE AND THE OBLIGATIONS ARISING
HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF UTAH WITHOUT REGARD TO CHOICE
OF LAW RULES AND ANY APPLICABLE LAWS OF THE UNITED STATES OF
AMERICA, PROVIDED HOWEVER, THAT THE PROVISIONS FOR THE
CREATION, PERFECTION AND ENFORCEMENT OF THE LIENS CREATED
HEREUNDER WITH RESPECT TO THE REAL PROPERTY AND FOR ANY
3825648JDOC
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000451.
DEFICIENCY FOLLOWING FORECLOSURE OF THIS MORTGAGE SHALL BE
GOVERNED BY THE LAW OF THE STATE IN WHICH THE REAL PROPERTY IS
LOCATED TO THE EXTENT NECESSARY FOR THE VALIDITY AND
ENFORCEMENT THEREOF.
b. EXCEPT AS PROVIDED IN THE ARBITRATION PROVISIONS OF
THE LOAN AGREEMENT, AND EXCEPT FOR ANY LEGAL ACTION OR
PROCEEDING TO FORECLOSE THIS MORTGAGE OR ANY ACTION WHICH IS
REQUIRED BY THE LAWS OF THE STATE OF WYOMING TO BE BROUGHT IN
THE STATE OF WYOMING, WHICH SHALL BE BROUGHT IN THE STATE OF
WYOMING, ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
MORTGAGE AND ANY ACTION FOR ENFORCEMENT OF ANY JUDGMENT IN
RESPECT THEREOF MAY BE BROUGHT IN THE COURTS OF THE STATE OF
UTAH OR OF THE UNITED STATES OF AMERICA FOR THE DISTRICT OF
UTAH.
37. General.
All references in this Agreement to the singular shall be deemed to include the plural and
vice versa. References in the collective or conjunctive shall also include the disjunctive unless
the context otherwise clearly requires a different interpretation.
All agreements, representations, warranties and covenants made by Mortgagor shall
survive the execution and delivery of this Mortgage, the filing and consummation of any
bankruptcy proceedings, and shall continue in effect so long as any obligation to Mortgagee
secured by this Mortgage is outstanding and unpaid. All agreements, representations, warranties
and covenants in this Mortgage shall bind the party making the same and its heirs and
successors, and shall be to the benefit of and be enforceable by each party for whom made and
their respective heirs, successors and assigns.
[Remainder of Page Intentionally Left Blank]
3825648_3.DOC
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16
.000452
IN WITNESS WHEREOF, this Mortgage has been executed the date and year first above
written.
MORTGAGOR:
Maverik, Inc., a Wyoming corporation, individually
and doing business as Maverik Country Store
~Le#-
By:
Spencer C. Hewlett
Secretary
MORTGAGEE:
Zions First National Bank, a national banking
association
By: ~L& ~ -=:>
Jim C. tanchfield ~
Vice President
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17
STATE OF UTAH
)
) ss.
COUNTY OF SALT LAKE )
The foregoing instrument was acknowledged before me thisd day of April, 2008, by
Michael Call and Spencer C. Hewlett, President and Secretary, respectively, of Maverik, Inc., a
Wyoming corporation, individually and doing business as Maverik Country Store.
~1i~~~J
OTARYPUBLIC
000453
MICHELLE FARNSWORTH
~ NOl'AFiY PUBLIC. STATE OF UTAH
~ ao ¡¿A$l' $OUni TEMPLE #2000
SAI. T I.AKe CITY, UT 84111
COMM, expo 811/2009
STATE OF UTAH )
) ss.
COUNTY OF SALT LAKE )
The foregoing instrument was acknowledged before me thisol ~ day of April, 2008, by
Jim C. Stanchfield, Vice President of Zions First National Bank, a national banking association,
in its capacity as Mortgagee.
MICHELLE FARNSWORTH
'; NOl'AFIY PUBLIC' STATE OF UTAH
(,0 E¡~ST souni 'rEMPLE #2000
~,;\LT I.AKE CITY, UT 84111
COMM. EXP. 611/2009
~jtWCðwJ¿
3825648JDOC
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18
EXHIBIT A
000454
Mortgage with Assignment of Rents
(Store #276, LINCOLN County, Wyoming Property)
Legal Description:
Thayne 276
160 North Main
Thayne, Wyoming
Lots 11 through 16 and 27 through 32 in Block 4, VanNoy Park Townsite, all in the Town of
Thayne, Lincoln County, State of Wyoming.
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