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866
RECEIVED
LINC, OL~'! COUNTY CLERK
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THIRD $UPPLEMENT TO MORTGAGE AND SECURITY AGREEMENT
WITH ASSIGNMENT OF RENTS
Dated as of May /~;, 2003
From
NORTHERN FOOD AND DAIRY, INC.
(the "Company")
To
HARRIS TRUST AND SAVINGS BANK
(the "Mortgagee ")
(Wyoming)
This instrument was prepared
by:
Daniel W. Baker
Chapman and Cutler
111 West Monroe Street
Chicago, Illinois 60603
(312) 845-3790
1502957.01.07
1550193
[199 West 2"'~ Avenue
Afton, Wyoming 83110]
THIRD SUPPLEMENT TO MORTGAGE
AND SECURITY AGREEMENT WITH ASSIGNMENT OF RENTS
This Third Supplement to Mortgage and Security Agreement with Assignment of Rents
dated as of May / ~, 2003 (the "Supplement") from Northern Food and Dairy, Inc., a Minnesota
corporation with its principal place of business and mailing address at 2214 Geneva Road, N.E.,
Alexandria, Minnesota 56308 (hereinafter referred to as the "Mortgagor") to Harris Trust and
Savings Bank, an Illinois banking corporation with its principal place of business and mailing
address at 111 West Monroe Street, Chicago, Illinois 60690 (hereinafter referred to as the
"Mortgagee ");
WITNESSETH THAT:
WHEREAS, Mortgagor did heretofore execute and deliver to Mortgagee that' certain
Mortgage and Security Agreement with Assignment of Rents dated as of March 15, 2002 and
recorded in the Recorder's Office of Lincoln County, Wyoming on April 8, 2002 as Document
No. 880158, Book 486, Page 840, as supplemented by that certain First Supplement to Mortgage
and Security Agreement with Assignment of Rents dated as of November 25, 2002 and recorded
in the Recorder's Office of Lincoln County, Wyoming on January 8, 2003 as Document No.
886757, Book 509, Page 116, and as supplemented by that certain Second Supplement to
Mortgage and Security Agreement with Assignment of Rents dated as of February 21, 2003 and
recorded in the Reco'rder's Office of Lincoln County, Wyoming, on lqarch 10 , 2003 as
Document No. 888294 , Book 514PR, Page 549 (collectively the "Mortgage"),
encumbering the property described on Schedule I attached hereto, in order to secure certain
indebtedness, whether now outstanding or hereafter incurred, of Sunrich Food Group, Inc.
("SunRich"), Stake Technology Ltd. ("Stake"), and Stake Tech LP ("LP") (SunRich, Stake, and
LP being collectively referred to as the "Borrowers") owing to Bank of Montreal, Mortgagee
and certain other lenders from time to time party to the Credit Agreement as hereinafter defined
(collectively, the "Lenders"); and
WHEREAS, the Mortgage currently secures, among other things, the obligations of (a)
Stake under a demand revolving credit in an aggregate principal amount not to exceed Canadian
$5,000,000 (the "Canadian Revolving Credit") in the form of loans, letters of credit and letters
of guaranty payable on demand with interest payable at the times and in the amounts set forth in
the Amended and Restated Credit Agreement dated as of February 21, 2003 (said Credit
Agreement, as the same may be amended, supplemented or restated, including restatements in its
entirety, being hereinafter referred to as the "Credit Agreement"), (b) SunRich under a
committed revolving credit facility in an aggregate principal amount not to exceed U.S.
$9,000,000 (the "U.S. Revolving Credit") in the form of loans and letters of credit payable no
later than February 28, 2004, the final maturity thereof, with interest payable at the times and in
the amounts set forth in the Credit Agreement, and (c) LP under a committed non-revolving
reducing term credit facility in the aggregate principal amount not to exceed U.S. $21,700,000
("Facilit)J C") payable at the times and in the amounts set forth in the Credit Agreement with a
final payment of all principal not sooner paid due on FebrUary 28, 2005, the final maturity
thereof, with interest payable at the times and in the amounts set forth in the Credit Agreement;
and
1502957.01.07
1550193
WHEREAS, the Borrowers have entered into that certain First Amending Agreement dated
as of May l~ , 2003 (the "First Amendment") pursuant to which the Lenders have agreed to
increase the Canadian Revolving Credit from $5,000,000 to $7,500,000;
WHEREAS, as a condition precedent to entering into the First Amendment and making
certain other financial accommodations to the Borrowers, Mortgagee requires the Mortgagor,
and to accommodate that requirement Mortgagor desires by this Supplement, to confirm and
assure that all the real estate and other properties, rights, interests and privileges of Mortgagor
which are currently subject to the lien of the Mortgage be and constitute collateral security for
the obligations of the Borrowers under the Credit Agreement as amended by the First
Amendment;
NOW, THEREFORE, for and in consideration of the execution and delivery by Mortgagee
and the other Lenders of the First Amendment, and other good and valuable consideration,
receipt whereof is hereby acknowledged, Mortgagor and Mortgagee do hereby mutually promise
and agree as follows, to wit:
1. It is hereby agreed that all the obligations of the Borrowers under the Credit
Agreement as amended by the First Amendment shall continue to be secured by the Mortgage in
the same manner as if such indebtedness had been specifically described therein as indebtedness
secured thereby. .
2. Mortgagor hereby represents and warrants to Mortgagee that as of the date hereof
each of the representations and warranties set forth in the Mortgage as supplemented hereby are
true and correct and that no Event of Default (as such term is defined in the Mortgage), or any
other event which with the lapse of time or the giving of notice, or both, would constitute such an
Event of Default, has occurred and is continuing or shall result after giving effect to this
Supplement. Mortgagor hereby repeats and reaffh:ms all covenants and agreements contained in
the Mortgage, each and all of which shall be applicable to all of the indebtedness secured by the
Mortgage as supplemented hereby. The Mortgagor repeats and reaffirms its covenant that all the
indebtedness secured by the Mortgage as supplemented hereby will be promptly paid as and
when the same becomes due and payable.
3. All capitalized terms used herein without definition shall have the same meanings
herein as they have in the Mortgage. The definitions provided herein of any capitalized terms
shall apply to such capitalized terms as the same appear in the Mortgage as supplemented
hereby, all to the end that any capitalized terms defined herein and used in the Mortgage as
supplemented hereby shall have the same meanings in the Mortgage as supplemented hereby as
are given to such capitalized terms herein. Without limiting the foregoing, all references in the
Mortgage to the term "indebtedness hereby secured" shall be deemed references to all the
indebtedness; obligations and liabilities secured by the Mortgage as supplemented hereby.
4. This Supplement is supplementary to said Mortgage. All provisions of the
Mortgage, the Credit Agreement, and the First Amendment, including the right to declare the
principal and accrued interest due thereon for any cause specified therein, shall remain in full
force and effect, it being the expressed intent of the parties that the indebtedness heretofore
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described is not discharged but merely extended pursuant to the terms of this Supplement. The
provisions of this Supplement shall bind the heirs, personal representatives, successors and
assigns of the Mortgagor.
5. This Supplement may be executed in any number of counterparts and by different
parties hereto on separate counterpart signature pages, each of which when so executed shall be
an original but all of which to constitute one and the same instrument.
6. No reference to this Supplement need be made in any note, instrument or other
document making reference to the Mortgage, any reference to the Mortgage in any of such to be
deemed to be a reference to the Mortgage as amended and extended hereby. This instrument
shall be construed and governed by and in accordance with the laws of the state where the
property described on Schedule I hereto is located.
[SIGNATURE PAGE TO FOLLOW]
-3-
$70
IN WITNESS WHEREOF, Mortgagor has caused these presents to be signed and sealed the
day and year first above written in Chicago, Illinois.
NORTHERN FOOD AND DAIRY, INC., a
Minnesota corporation
By
Accepted and agreed to as of the date first above written.
HARRIS TRUST AND SAVINGS BANK, as
Mortgagee
By
Name:
Title:
-4-
IN WITNESS WHEREOF, Mortgagor has caused these presents to be signed and sealed the
day and year first above written in Chicago, Illinois.
NORTHERN FOOD AND DAIRY, INC., a
Minnesota corporation
By
Name:
Title:
Accepted and agreed to as of the date first above written.
HARRIS TRUST AND SAVINGS BANK, as
Mortgagee
Name: ~hane l~oonce
Title: Vice President
-4-
COUNTY OF
)
)
.)
SS.
572
I The for~.going ~st~ent was acknow~dged before me this ay of May, 2003, by
y.l-~r-< '~ ]%Z.- --UtA'.,{' , the /~e~' of Northern Food and Dairy, Inc., a
Minnesota &~oration, on behalf of the co~oration.
-;. Notary Public
';.
': (Ty or Print Name)
Seal)
Con~ssion Expires:
This Instrument was
Drafted By:
Daniel W. Baker
Chapman and Cutler
111 West Monroe Street
Chicago, Illinois 60603
1502957.01.06.B
1550193
S73
STATE OF ILLINOIS
COUNTY OF COOK
)
) ss.
)
I, the undersigned, Notary Public in and for said CountY, in the State aforesaid~ do hereby
certify that Shane Koonce, Vice President of Harris Trust and Savings Bank, an Illinois banking
corporation, who is personally known to me to be the same person whose name is subscribed to
the foregoing instrument as such Vice President, appeared before me this day in person and
acknowledged that he/she signed and delivered the said instrument as his/her own free and
voluntary act and as the free and voluntary act and deed of said corporation for the uses and
purposes therein set forth.
Given under my hand and notarial seal, as of this 2D'l'~'day of May, 2003.
I'~ ~tary Public
(Notarial Seal)
OFHCIAL SEA L
NANCY J SKODA
NOTARY PUBLIC STATE OF ILLINOI~
),:~ COMMtSA'S. ION EXP. NOV. 2,2004
(Type or Print Name)
Commission Expires
SCHEDULE I
LEGAL DESCRIPTION
S74
Part of Section 25, T32N RllgW of the 6~h P.M., Lincoln County, Wyoming
being more particularly described as follows:
COMMENCING at a point which is 1475 feet West and 200 feet North of the
E~ corner of said Section 25, and runnin~ thence N 90o W, 483 35 feet;
thence N 0° W, 250 feet; ·
thence N 90° E, 483.35 feet;
thence S 0° E, 250 feet to the pOINT OF BEGINNING.