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SEVENTH AMENDMENT TO AGREEMENT IJ....'J. tJI JJ\LV"",, 'J"'i.V l'l'J L UU, l LUll' l 'JOL', u L O~ ILJU'vIJl 'JvJ l/tJJ I. VVl MOYLE, FLANIGANjKATz., KOLINS, RAYMOND 4 SHEEHAN, P.A. A rrORNEYS AT LA W 625 North Fl.gler Drive - 9. floor We$t Palm Beach, florida 33401-4025 P.O. 80)(, USI West Palm Beach. FJorida33402-3888 TelephDne: (561) 659-7S00 facsimile: (S61) 659.1789 MARX E. RA VAlOND Direct Line: (S61) 822-0380 E-mail: mraymond@moyleJaw.eom Tallahassee Office (ISO) 681-3&21 FAX TRANSMISSION COVER SHEET NAME (; We..A FAX NUMBER 1J-I.,6V~-~O~1 RICI'VlD nEe 0,"7 1999 CITY ATTORNEY Sender: Direct Line: Fax Number: Mark Raymond (561) 822-0380 (561) 659-1789 Date: File Name and Number: Total Number of Pages ancluding Cover Page): G:\U56IlS\M YIIIONClM\FAX COVCllSHetr...,. /.. ~' ~ ,t I I PREPARED BY AND RETURN TO: MARK E. RAYMOND, ESQ. MOYLE, FLANIGAN , KATZ, KOUNS, RAYMOND & SHEEHAN, P.A. PO BOX 3888 WE~T PALM BEACH, FL 33042 SEVENTH AMENDMENT TO AGREEMENT WITH CHI CHI RODRIGUEZ YOUTH FOlJ!IDATION, INC. This Seventh Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, Inc. (this "Seventh Amendment") is made as of the pI day of August, 1998, by and between the City of Clearwater, Florida, a municipal corporation (the "City") and Chi Chi Rodriguez Youth Foundation, Inc., a Florida corporation not-for-profit (the "Foundation"). WHEREAS, the City and the Foundation have heretofore entered into that certain "Agreement," dated November 12,1985, as amended by the "Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, Inc., " dated March 5, 1987, the "Amendment to Agreement, " dated February 16, 1988 , the "Third Amendment to Agreement," dated November 20, 1989, the "Fourth Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, Inc." dated November 1, 1990 and the "Fifth Amendment with Chi Chi Rodriguez Youth Foundation, Inc.," dated March 30, 1992 and the "Sixth Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, Inc." dated May 21, 1993 (collectively, the "Original Agreement"); and WHEREAS, pursuant to the Original Agreement the City leased certain property to the Foundation; and WHEREAS, the Foundation is, of even date herewith, incurring liabilities to NationsBank, N.A. pursuant to that certain Reimbursement and Loan Agreement dated as of August 1, 1998 by and between the Fou,ndation and NationsBank, N.A. (the "Bank"), a copy of which is attached hereto as Exhibit A (the "Reimbursement Agreement"); and WHEREAS, the parties desire to further amend the Original Agreement; NOW, THEREFORE, in consideration of the premises and other consideration, the receipt and sufficiency is hereby acknowledged by the parties hereto, the parties heretodo hereby agree as follows: Section 1. The City acknowledges that the loan made by the City to the Foundation pursuant to paragraph 1 of the Third Amendment to Agreement which added paragraph 36 of the Original Agreement has been paid in full and accordingly, paragraph 36 of the Original Agreement is hereby deleted in its entirety. I I Section 2. Paragraph 11 of the Original Agreement is hereby amended by adding thereto the following language: In addition to, and not in limitation of, the foregoing, the City hereby consents to the leasehold mortgage granted by the Foundation to the Bank and Pinellas County Industry Council pursuant to that certain "Mortgage and Security Agreement" in form attached hereto as Exhibit B. Section 3. The City and the Foundation agree that for purposes of paragraph 35 of the Original Agreement created by Section 2 of the Amendment to Agreement dated March 5, 1987, amounts owing by the Foundation to the Bank pursuant to the Reimbursement Agreement (including the "Note" referred to therein), shall be deemed to be amounts owing pursuant to a "loan", the Bank shall be deemed to be a "Lender" and the obligation of the Foundation to pay the Bank amounts under the Reimbursement Agreement shall be deemed "loan repayment" obligations. In addition, the City and the Foundation agree that for so long as any amounts are owing to the Bank pursuant to the Reimbursement Agreement, the Bank shall be the only "Lender" within the meaning of paragraph 35 of the Original Agreement. Section 4. The City and the Foundation agree that for purposes of paragraph 7 of the Fifth Amendment of Agreement with Chi Chi Rodriguez Youth Foundation, Inc. the Bank shall be deemed to be the "Lender" and the phrase "all unpaid principal, accrued interest, costs, fees and additional sums expended for the preservation and protection of the Lender's collateral" shall include all amounts due by the Foundation to the Bank pursuant to the Reimbursement Agreement (including the Note referred to therein). Section 5. All of the terms and conditions of the Original Agreement which are not expressly amended hereby shall continue in full force and effect and are incorporated by reference as if set forth herein in full. Section 6. The Foundation hereby agrees to pay all costs, fees and expenses of the City and its counsel incurred in connection with the preparation and adoption of this Amendment. [Signatures on next page] 2 ; . , . I I IN WITNESS WHEREOF, the undersigned parties have set their hands as of the day and year first above written. Countersigned: CITY OF CLEARWATER, FLORIDA By: 1l Michael J. Roberto, City Manager AZLr fonn: Pamela K. ~kin, City Attorney Attest: CHI CHI RODRIGUEZ YOUTH FOUNDATION, INC. By: Polly Bateman, Executive Vice President 3 .', >{ I I . . , .' STATE OF FLORIDA ) COUNTY OF PINELLAS ) The foregoing instrument was acknowledged before me this 3rd day of August, 1998, by Michael J. Roberto, as City Manager, Rita Garvey, as Mayor Commissioner and Cynthia E. Goudeau, as City Clerk of the City of Clearwater, Florida, a Florida municipality, on behalf of the City, and they are personally known to me. STATE OF FLORIDA ) ~t1.QA-~ No Public l~l:':or.~'~\ JANIS M. PRZYWARA :'i :'s MY cor.t.VSSION , CC406877 EXPIRES ~. . ~"i SlIpIemIler 18 1998 ..;a'..~,~~;.. IOHIlED TIIlU TNlY FAIl i.suwo:. ltC, (NOTARY STAMP) COUNTY OF PINELLAS ) The foregoing instrument was acknowledged before me this 5th day of August, 1998, by Polly Bateman, as Executive Vice-President of Chi Chi Rodriguez Youth Foundation, Inc., a Florida corporation not-for-profit, on behalf of the corporation, and she is personally known to me. Notary Public (NOTARY STAMP) 4 c.eA ~ J.. {I\ p..r ~ ~/ d).L/. q (~(i : {}l ~ CLu\ k- It's t/.A..~ A~ORC!TM CERTIFICATE OF LIABILITY INSURAN4E Acordia SE, Central Fla Divsn P.O. Box 31666 Tampa, FL 33631-3666 727-796-6666 DATE IMMIDDIYYI 02/23/99 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. PRODUCE:!; . INSURERS AFFORDING COVERAGE INSURED Chi Chi Rodriguez Youth Foundation, Inc. 3030 McMullen Booth Road Clearwater FL 33761 COVERAGES INSURER A: INSURER B: INSURER C: INSURER 0: INSURER E: Travelers Indemnity Co, Travelers Indemnity Co, of III THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. I~i': TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS A ~ERAL LIABILI~Y.._~_ Y660607G5167 2/01/99 2/01/00 EACH OCCURRENCE $ 1000000 . -- ----- -- --- X COMMERCIAL GENERAL LIABILITY FIRE DAMAGE (Anyone fire) $ 50000 I CLAIMS MADE W OCCUR MED EXP (Anyone person) $ 5000 PERSONAL & ADV INJURY $ 1000000 GENERAL AGGREGATE $ 2000000 ~'L AGGREn LIMIT APn PER: PRODUCTS - COMP/OP AGG $ 2000000 POLICY ~~9~ LOC B ~TOMOBILE LIABILITY Y810861K8196 2/01/99 2/01/00 COMBINED SINGLE LIMIT (Ea accident) $ 1000000 - ANY AUTO ALL OWNED AUTOS BODILY INJURY - $ L SCHEDULED AUTOS I Per person) HIRED AUTOS BODILY INJURY - $ --K.. NON-OWNED AUTOS (Per accident) PROPERTY DAMAGE $ (Per accident) GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ ~ ANY AUTO OTHER THAN EA ACC $ AUTO ONLY: AGG $ EXCESS LIABILITY EACH OCCURRENCE $ ::J.OCCUR D CLAIMS MADE AGGREGATE $ $ ~ DEDUCTIBLE $ RETENTION $ .. -- $ B WORKERS COMPENSATION AND UB290K7260 2/01/99 2/01/00 I T'1.~H~~~;, I IOJ~- EMPLOYERS' LIABILITY E,L. EACH ACCIDENT $ 100000 E.L. DISEASE - EA EMPLOYEE $ 100000 E,L. DISEASE - POLICY LIMIT $ 500000 OTHER DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS CERTIFICATE HOLDER IS ADDITIONAL INSURED, GLEN OAKS GOLF COURSE AT 1345 COURT ST, CLEARWATER, FL & CHI CHI RODRIGUEZ GOLF COURSE AT 3030 MCMULLEN BOOTH RD, CLEARWATER,FL CERTIFICATE HOLDER I X I ADDITIONAL INSURED; INSURER LETTER: CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION CITY OF CLEARWATER DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL ~ DAYS WRITTEN ATTN: DEBBIE RICHTER NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL P. O. BOX 4748 IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR CLEARWATER, FL 33758 REPRES!NTATIVES. /j AOTHORIiED REPRESENT:;::; ( ~. I \ //.?~/? ~ -A ACORD 25-S (7/97) 7- 50 (7 / @ACORD CORPORATION 1988 .. ~ ...,' .. IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 25-8 (7/97) E~h'\ b,.-\- (\- r;:::;:' t'f:;W~:); \l.jj~~~r REIMBURSEMENT AND LOAN AGREEMENT Dated as of August 1, 1998 By and Between (" - "" , ,,"~I: .......... CHI CHI RODRIGUEZ YOUTH FOUNDATION, INC. and NATIONSBANK, N.A. T ABLE OF CONTENTS (This Table of Contents is for ease of reference only and should not be considered a part of the document) Eage SECTION 1 DEFINITIONS 1.1 DefInitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 SECTION 2 AMOUNT AND TERMS OF THE LETTER OF CREDIT AND THE NOTE 2. 1 The Letter of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.2 Reimbursement.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.3 Letter of Credit Fee .....................-................ 10 2.4 Capital Adequacy. . . ; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 2.6 Obligations Absolute. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2.7 Time and Payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 SECTION 3 CONDITIONS PRECEDENT 3.1 Conditions Precedent .................................... 12 ~ SECTION 4 COVENANTS, REPRESENTATIONS AND WARRANTIES 4.1 Covenants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 4.2 Representations.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 SECTION 5 EVENTS OF DEFAULT 5.1 Events of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 5.2 Acceleration; Remedies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 5.3 Rights Not Exclusive ..................................... 22 5.4 Subrogation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 SECTION 6 COLLA TERAL 6.1 Grant of Security Interest in the Pledged Bonds. .................. 23 6.2 Mortgage and Security Agreement. . . . . . . :. . . . . . . . . . . . . . . . . . . . 23 6.3 Agreements relating to Pledged Collateral. . . . . . . . . . . . . . . . . . . . . . . 23 6.4 Remedies...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 6.5 Application of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 SECTION 7 MISCELLANEOUS 7.1 Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 <]i'I;;,", ;<.'I];:R,..:. I l~tV:: ' {~'.;;J;;i - 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 EXHIBIT A EXHIBIT B EXHIBIT C EXHIBIT D EXHIBIT E Amendments, Etc. ...................................... 26 No Waiver; Remedies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Right of Set-off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Indemnification ............................... . . . . . . . . . 26 Continuing Obligation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Transfer of Letter of Credit ....................;.......... . 27 Limited Liability of the Lender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Costs, Expenses and Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Satisfaction Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Governing Law ........................................ 29 Arbitration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 No Oral Agreement ..................................... 29 Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Headings ............................................ 29 Form of Letter of Credit Form of Note Payment Schedule First Amendment to Guaranty Seventh Amendment to Lease REIMBURSEMENT AND LOAN AGREEMENT ~;~,:~,;", .~~tl:'~It' it~l.l: Tms REIMBURSEMENT AND LOAN AGREEMENT dated as of August 1, 1998 (this "Reimbursement Agreement"), is by and between cm cm RODRIGUEZ YOUTH FOUNDATION, INC., a Florida not-for-profit corporation with its principal place of business at 3030 North McMullen Booth Road, Clearwater, Florida 33761 (the "Borrower"), and NATIONSBANK, N.A., a national banking association with a place of business at 400 North Ashley Drive, 2nd Floor, Tampa, Florida 33631 (the "Bank" or the "Lender"). WITNESSETH: WHEREAS, the Pinellas County Industry Council, a public body corporate and politic duly organized and existing under the laws of the State of Florida (the "Issuer"), has authorized the issuance and sale of $2,100,000 in aggregate principal amount of its Variable Rate Demand Revenue Bonds (Chi Chi Rodriguez Youth Foundation Project), Series 1998 (the "Bonds"), pursuant to the terms of that certain Trust Indenture and Assignment of Mortgage dated as of even date (as hereafter amended and supplemented, the "Indenture"), between the Issuer and Norwest Bank Minnesota, N.A., as Trustee thereunder (the "Trustee"); ( [, - WHEREAS, the Issuer and the Borrower have entered into a Loan Agreement dated as of even date (as hereafter amended and supplemented, the "Loan Agreement") whereby the Issuer shall loan to the Borrower the proceeds of the Bonds (the "Loan") to be used by the Borrower to (i) refinance certain indebtedness incurred by the Borrower to finance capital projects for the Borrower as described in the Loan Agreement and (ii) pay costs of issuance of the Bonds and other related costs, which Loan Agreement and the rights thereunder (other than certain rights of the Issuer as specified in the Indenture) have been assigned by the Issuer to the Trustee for the benefit of the holders of the Bonds; WHEREAs, as security for the repayment of the Loan and the Bonds and in accordance with the terms of the Indenture,the< BOI'Iow~rhas requested that the Bank issue the Letter of Credit (as heremafter defined) pursuant to the terms of this Reimbursement Agreement; and WHEREAS, the Bank is willing to issue the Letter of Credit on the terms and conditions hereinafter set forth; WHEREAS, the Borrower has requested that the Bank make a loan to the Borrower in the amount of $172,420.00 in order to finance costs of issuance of the Bonds that cannot be financed with proceeds of the Bonds and to accept in evidence thereof the Borrower's promissory note, dated August 6, 1998, in the principal amount of $172,420.00 (the "Note"); and WHEREAS, the Bank is willing to make the loan to the Borrower evidenced by the Note (the "Bank Loan") on the terms and conditions hereinafter set forth; NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Bank and the Borrower agree as follows: SECTION 1 ~~ DEFINITIONS 1.1 DefInitions. As used herein, the following terms shall have the meanings herein specified unless the context otherwise requires. Terms used but not otherwise defined herein shall have the meanings provided in the Indenture. All accounting terms utilized herein, unless otherwise specified, shall have the meanings generally ascribed thereto by generally accepted accounting principles, as in effect from time to time, consistently applied. "Anniversary Date" means the same day and month as the Date of Issuance occurring in any subsequent year. "Available Amount" means the face amount of the Letter of Credit, initially equal to $2,124,164.38, representing a $2,100,000 principal portion and a $24,164.38 interest portion to cover thirty-five (35) days' interest on the Bonds at the Maximum Rate, as such amount is reduced and reinstated from time to time pursuant to the terms of the Letter of Credit. hereto. "Bank" or "Lender" shall have the meaning assigned to such term in the Recitals "Bank Loan" shall have the meaning assigned to such term in the Recitals hereto. (jw "Bankruptcy Default" means the occurrence of any event or condition of the types described in Sections 5.1 (f) or 5.1 (g) of this Reimbursement Agreement. "Bond Documents" means the Indenture, the Loan Agreement, the Bonds, the Placement Agreement and the Remarketing Agreement, collectively or individually, as appropriate, each as amended, modified and extended from time to time. "Bonds" shall,have the ~eaning assi~ned to 'such term in the Recitals hereto. "Borrower" shall have the meaning assigned to such term in the Recitals hereto. "Business Day" means any day except (i) a Saturday or Sunday, (ii) a day on which the Trustee, the Remarketing Agent or the paying office of the Bank is lawfully closed, or (iii) a day on which the New York Stock Exchange or DTC is closed. For purposes of this definition, "paying office of the Bank" means the Bank office responsible for making payments under any Letter of Credit. "Cash Flow Coverage Ratio" means, as to any Fiscal Year, the ratio of (a) the sum of the change in unrestricted net assets of the Borrower, plus depreciation, plus interest expense plus amortization (excluding amortization of any discount on any land lease receivable) to (b) the sum of interest expense plus the current maturities of Long-Term Debt plus current capital lease obligations . 2 "Casualty Loss" shall have the meaning assigned to such term in Section 4.1(c) hereof. "Code" means the Vniform Commercial Code in effect from time to time in the applicable jurisdiction. "Collateral" shall have the meaning assigned to such term in Section 6.2 hereof. "Date of Issuance" means the date on which the Letter of Credit is issued and becomes effective. "Default" means any event which, with notice or lapse of time, or both, would become an Event of Default. "Default.Rate't means the Prime Rate plus four percent (4%) per annum, but in no event in excess of the maximum lawful rate. - ) "Environmental Laws" means all laws relating to environmental matters, including, without limitation, those relating to fmes, orders, injunctions, penalties, damages, contribution, cost recovery compensation, losses or injuries resulting from the release or threatened release of Hazardous Materials and to the generation, use, storage, transportation, or disposal of Hazardous Materials, in any manner applicable to the Borrower or the Project, including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act (42 V.S.C. ~9601 et seq.), the Hazardous Material Transportation Act (49 V.S.C. ~1801 et seq.), the Resource Conservation and Recovery Act (42 V.S.C. ~6901 et seq.), the Federal Water Pollution Control Act (33 V.S.C. ~1251 et seq.), the Clean Air Act (42 V.S.C. ~7401 et seq.), the Toxic Substances Control Act (15 V.S.C. ~260l et seq.), the Occupational Safety and Health Act (29 V.S.C. ~651 et seq.) and the Emergency Planning and Community Right-to-Know Act (42 V.S.C. ~11001 et seq.), each as amended or supplemented, and any analogous future or present local, state and federal statutes and regulations promulgated pursuant thereto, each as in effect as of the date of determination. "ERISA" means the Employee Retirement Income Security Act of 1974, as the same may be amended from time to time. "Event of Default" shall have the meaning a.ssigned to such term in Section 5.1 hereof. "First Amendment to Continuing and Uncomijtional Guaranty" means the First Amendment to Continuing and Vnconditional Guaranty dated as of August I, 1998, made by the City of Clearwater, Florida, and consented to by the Bank and the Borrower, in the form attached hereto as Exhibit D. "Fiscal Year" means, with respect to the Borrower, the fiscal year of the Borrower, jft]} which shall end on each successive June 30 unless consented to the contrary by the Bank. 3 "Governmental Authorities" means all governmental and quasi-governmental (including health and environmental) offices, officers and officials with jurisdiction over the Lender, the Borrower, any portion of the Collateral or any aspect of the Borrower I s operations. "Hazardous Materials" means (i) any chemical, material or substance defmed as or included in the definition of "hazardous substances," "hazardous wastes," "hazardous materials," "toxic substances" or words of similar import under any applicable Environmental Laws, (ii) any oil, petroleum or petroleum derived substance, any drilling fluids, produced waters and other wastes associated with the exploration, development or production of crude oil, any flammable substances or explosives, any radioactive materials, any hazardous wastes or substances, any toxic wastes or substances or any other materials or pollutants which (a) pose a material hazard to any property of the Borrower or to persons on or about such property, or (b) cause such property to be in violation of any Environmental Laws, (iii) asbestos in any form which is or could become friable, urea formaldehyde foam insulation, electrical equipment which contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of fifty parts per million, and (iv) any other chemical, material or substance, exposure to which is prohibited, limited or regulated by any governmental authority or mayor could pose a hazard to the health and safety of the owners, occupants or any persons surrounding the Premises. - ) "Indebtedness" means, as to any Person (a) all indebtedness for borrowed money or for notes, debentures, on other debt securities, (b) notes payable and drafts accepted representing extensions of credit whether or not representing obligations for borrowed money, ( c) liabilities for all or any part of the deferred purchase price of property or services, (d) liabilities secured by any lien on any property or asset owned or held by such Person regardless of whether the indebtedness secured thereby shall have been assumed by or is a primary liability of such Person, (e) capitalized lease obligations, and (f) liability as surety or guarantor for Indebtedness of another Person. "Indemnitee" shall have the meaning assigned to such term in Section 7.5 hereof. "Indenture" shall have the meaning assigned to such term in the Recitals hereto. "Issuer" shall mean Pinellas County Industry Council. "Letter of Credit" shall have the meaning assigned to such term in Section 2.1 hereof. "Letter of Credit Documents" means this Reimbursement Agreement, the Pledge Agreement, the Mortgage and Security Agreement, the First Amendment to Continuing and Unconditional Guaranty, the Seventh Amendment to Lease, the Note, all related fmancing statements, the Letter of Credit and all other documents evidencing, securing or otherwise relating . ~:[U\,;;) '0 4 to the Obligations collectively or individually, as appropriate, each as amended, substituted, replaced, modified and extended from time to time. "Letter of Credit Fee" shall have the meaning assigned to such term in Section 2.3 hereof.' "Liquidity Advance" shall have the meaning assigned to such term in Section 2.2(b) hereof. "Loan" shall have the meaning assigned to such term in the Recitals hereto. "Loan ~greement" shall have the meaning assigned to such term in the Recitals hereto. "Long Term Debt" means Indebtedness payable more than one year after the creation thereof. "Maximum Rate" means twelve percent (12 %) per annum. "Mortgage and Security Agreement" means the Mortgage and Security Agreement dated as of August 1, 1998 between the Borrower, the Issuer and the Bank. .- ) "Note" shall mean the Promissory Note, dated August 6, 1998, in the principal amount of $172,420.00, made by the Borrower payable to the Bank, and the form attached hereto as Exhibit B. "Obligations" means, at any time, the sum of (i) the maximum amount which is, or at any time thereafter may become, available to be drawn under the Letter of Credit, assuming compliance with all requirements for drawings thereunder, plus (ii) the aggregate amount of all drawings under the Letter of Credit honored by the Bank but not theretofore reimbursed, plus (iii) all amounts owing by the Borrower pursuant to the Note, plus (iv) any interest, fees or other obligations or amounts owing by the Borrower to the Bank under this Reimbursement Agreement, the other Letter of Credit Documents or the other Transaction Documents. "Optional Tender Drawing" shall have the meaning assigned to such term in Section 2.2(b) hereof. "Permitted Encumbrances" shall have the meaning ascribed thereto pursuant to the Mortgage and Security Agreement. "Permitted Liens" means: (i) Liens arising by reason of good faith deposit with the Borrower in connection with tenders, leases of real estate, bids or contracts (other than contracts for the payment of money), deposits by the Borrower to secure public or statutory obligations, or to .~:, '.:" tI.~-... :.~: i-ii:i 5 secure, or in lieu of, surety, stay or appeal bonds, and deposits as security for the payment of taxes or assessments or other similar charges; (ii) Any lien arising by reason of deposits to enable the Borrower to maintain self-insurance or to participate in any funds established to cover any insurance risks or in connection with worker's compensation, unemployment insurance, old age pensions or other social security, or to share in the privileges or benefits required for companies participating in such arrangements; (iii) Any judgment lien against the Borrower so long as such judgment is being contested and execution thereon is stayed, and so long as such lien or contest shall not materially impair the ability of the Borrower to meet its obligations under this Reimbursement Agreement; -\ ) (iv) (A) Rights reserved to or vested in any municipality or public authority by the terms of any right, power, franchise, grant, license, permit or provision of law, affecting any property, to (1) terminate such right, power, franchise, grant, license or permit, provided thatthe exercise of such right would not materially impair the use of such property or materially and adversely affect the value thereof, or (2) purchase, condemn, appropriate or recapture, or designate a purchaser of, such property, provided that the exercise of such right would not materially impair the use of such property or materially and adversely affect such property; (B) any liens on any property for taxes, assessments, levies, fees, water and sewer rents, and other governmental and similar charges and any liens of mechanics, materialmen and laborers for work or services performed or materials furnished in connection with such property, which are not due and payable or which are not delinquent or which, or the amount or validity of which, are being contested and execution thereon is stayed or, with respect to liens of mechanics, materialmen and laborers, have been due for less than 31 days; (C) easements, rights-of-way, servitudes, restrictions and other minor defects, encumbrances, and irregularities in the title of any such property which do not materially impair the use of such property or which do not materially and adversely affect the value thereof; (D) rights reserved to or vested in any municipality or public authority to control or regulate any property or to use such property in any manner, which rights do not materially impair the use of such property or materially and adversely affect the value thereof; (v) Any other lien with respect to property acquired after the date of this Reimbursement Agreement which lien either secures the purchase price of that property or is a lien to which that property is subject at the time of its acquisition; (vi) Any lien or restriction on use, expressed or implied, on property of the Borrower received as a gift, pursuant to the terms of such gii!; and (vii) Any other lien or liens consented to in writing by the Bank. "Person" means any individual, corporation, partnership, joint venture, association, joint stock company, trust, trustee(s) of a trust, unincorporated organization or government or governmental authority, agency or political subdivision thereof. ,:B 6 "Placement Agreement" means that certain Placement Agreement dated August 1, 1998, among the Issuer, the Borrower and NationsBank, N.A., as placement agent. "Pledge Agreement" shall mean the Pledge Agreement dated as of August 1, 1998, among the Borrower, the Bank and Norwest Bank Minnesota, N.A., as fiscal agent. hereof. "Pledged Bond(s)" shall have the meaning assigned to such term in Section 6.1 hereof. "Pledged Collateral" shall have the meaning assigned to such term in Section 6.2 Agreement. "Premises" means the "Real Property," as defined in the Mortgage and Security .- ) "Prime Rate" means the rate of interest per annum publicly announced from time to time by the Bank as its prime rate, adjusted daily; each change in the Prime Rate shall be effective on the date such change is publicly announced as effective. The Borrower acknowledges that the Prime Rate is not necessarily the best or lowest rate of interest offered by the Bank. If the Prime Rate changes, the interest rate shall be adjusted on the day of each change in the Prime Rate during the term of this Reimbursement Agreement.. If the Bank ever fails to have or declare a prime rate, the term Prime Rate as used herein shall mean the highest prevailing prime rate published for the applicable period by The Wall Street Journal. The rate of interest charged on unreimbursed drawings under the Letter of Credit and on other amounts payable under the Transaction Documents shall not exceed applicable legal limits. "Scheduled Termination Date" shall have the meaning assigned to such term in Section 2.1 hereof. "Secured Obligations" means (i) all indebtedness, obligations and liabilities of the Borrower to the Lender under. or in connection with the Loan Agreement, this Reimbursement Agreement, the Note or any other of the Transaction Documents, whether or not existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held or acquired, and (ii) all expenses and charges, legal and otherwise, reasonably incurred in collecting or enforcing any of such indebtedness, obligations and liabilities or in realizing on or protecting any security therefor, including without limitation the security afforded hereunder, together with any and all modifications, extensions, renewals and/or substitutions thereof. "Seventh Amendment to Lease" means that "Seventh Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, Inc." dated as of August 1, 1998 between the City of Clearwater, Florida and the Borrower, in the form attached hereto as Exhibit E. "Transaction Documents" means, collectively, the Bond Documents and the Letter :.'......~...il.\.i\.! of eredl't Documents. ..~u, 7 "Trustee" shall have the meaning assigned to such term in the Recitals hereto. SECTION 2 AMOUNT AND TERMS OF THE LETTER OF CREDIT AND THE NOTE 2.1 The Letter of Credit. The Bank agrees, on the terms and conditions hereinafter set forth, to issue and deliver a letter of credit to secure and support the Loan and the Bonds (as amended, modified, extended, renewed or replaced from time to time, as provided therein, herein and in the Indenture, the "Letter of Credit") in favor of the Trustee in the Available Amount. The Letter of Credit will be in substantially the form of Exhibit A attached hereto. The Letter of Credit is initially scheduled to expire on August 15, 2003 (such date, or any later date to which the Letter of Credit may fr~m time to time be extended, as provided in the Letter of Credit, is herein referred to as the "Scheduled Termination Date"), unless earlier terminated as provided in the Letter of Credit. At least one (1) month prior to the Scheduled Tennination Date, the Bank shall notify the Borrower as to whether. the Bank intends to extend the term of the Letter of Credit and the tenns and conditions of any such extension. No course of dealing or other circumstance shall require the Bank to extend beyond the Scheduled Termination Date. ,- J 2.2 Reimbursement. (a) Except as otherwise provided in (b) below, in the event of any drawing under the Letter of Credit, the Borrower unconditionally agrees to pay to the Bank, immediately after the Bank's honoring of such drawing and upon demand by the Bank and in immediately available funds, the full amount of each such drawing with interest thereon, if applicable, as hereinafter provided. Except as otherwise provided in Section 2.2(b) hereof, if the Borrower shall not reimburse the Bank for such drawing on the same day of such drawing or if the Borrower shall otherwise fail to reimburse the Bank as herein provided, the umeimbursed amount of the drawing shall bear interest at a per annum rate equal to the Prime Rate. Any such interest owing on account of any such unreimbursed drawing shall be due and payable at the time of payment of the reimbursement obligations or, if earlier, on demand. (b) If the Bank shall make any payment of that portion of the purchase price corresponding to principal of and interest on the Bonds drawn under the Letter of Credit pursuant to an "Optional Tender Drawing" in the form of Annex B attached to the Letter of Credit (~n "Optional Tender Drawing") arid the conditions set forth in (c) below all have been fulfilled, such payment shall constitute a liquidity advance made by the Bank to the Borrower on the date and in the amount of such payment (a "Liquidity Advance") payable as provided in (d) below; provided that if the conditions set forth in (c) below have not been fulfilled, the amount so drawn pursuant to the Optional Tender Drawing shall be payable in accordance with the terms of (a) above. (c) Each payment made by the Bank under the Letter of Credit pursuant to an Optional Tender Drawing shall constitute a Liquidity Advance hereunder only if on the date of such payment the following statements shall be true: Won e' ~~ ~;k 8 (i) The representations and warranties contained in the Letter of Credit Documents are correct on and as of the date of such Liquidity Advance as though made on and as of such date except as otherwise disclosed in writing to the Bank on or before such date; and (ii) No event has occurred and is continuing or would result from such Liquidity Advance, which constitutes a Default or an Event of Default. (d) Except as otherwise provided in Section 2.2(b) hereof, the Borrower shall pay interest on the unpaid amount of each Liquidity Advance from the date of such Liquidity Advance until such amount is paid in full, payable monthly, in arrears, on the fIrst day of each month during the term of each Liquidity Advance and on the date such amount is paid in full, at a per annum rate equal to the Prime Rate. Any amounts received by the Lender as interest payments on Pledged Bonds shall be credited against the Borrower's obligation to pay interest under this paragraph in accordance with the terms of Section 6.3(a) hereof. (e) Notwithstanding any other provision hereof, the Borrower shall repay in full the unpaid amount of each Liquidity Advance, together with all unpaid interest thereon on the earliest to occur of (i) such date as Bonds purchased pursuant to an Optional Tender Drawing are resold as provided in (g) below or (ii) the 180th day after the date of the Liquidity Advance. ........;;. J (f) The Borrower may prepay on any day the outstanding amount of any Liquidity Advance in whole or in part, together with accrued interest to the date of such prepayment on the date such amount is prepaid. The Borrower shall notify the Bank prior to 11 :00 a.m., Tampa, Florida time, on the date of such prepayment of the amount to be prepaid. (g) Prior to or simultaneously with the resale of Pledged Bond(s) resulting from any Optional Tender Drawing, the Borrower shall repay the then outstanding Liquidity Advances (in the order in which they were made) by paying to the Bank an amount equal to the sum of (i) the amounts advanced by the Bank pursuant to the corresponding Optional Tender Drawings relating to such Bonds and (ii) the aggregate amount of accrued and unpaid interest on such Liquidity Advances. Such payment shall be applied by the Bank in reimbursement of such drawings (and as prepayment of Liquidity Advances resulting from such drawings in the manner described herein), and the Borrower hereby irrevocably authorizes the Bank to reinstate the Letter of Credit with respect to such remarketed Bonds in accordance with the terms hereof and thereof. . . . Funds held by the Remarketing Agent or the Tender Agent as a result of sales of the Pledged Bond(s) by the Remarketing Agent shall be paid to the Bank to be applied to the amounts owing by the Borrower to the Bank pursuant to this paragraph, and any excess resulting from optional prepayments shall be paid to the Borrower so long as no Default or Event of Default exists. Upon payment to the Bank of the amount of such Liquidity Advance to be prepaid, together with accrued interest on such Liquidity Advance to the date of such prepayment on the amount to be prepaid, the principal amount outstanding of Liquidity Advances shall be reduced by the amount of such prepayment and interest shall cease to accrue on the amount prepaid. "...'.'.....'.'1."\ ~.:,lV ~w 9 I~' .- (h) Notwithstanding the foregoing, if the Letter of Credit is drawn in full, either at the Stated Termination Date or through an acceleration of the amounts due with respect to the Bonds, the entire amount outstanding under the Letter of Credit and hereunder, together with interest thereon, shall be due and payable upon demand by the Bank. 2.3 Letter of Credit Fee. In addition to any other fees payable to the Bank hereunder, for as long as the Letter of Credit is in effect, the Borrower agrees to pay to the Bank an annual letter of credit fee (the "Letter of Credit Fee") equal to (a) for the period from the Date of Issuance through August 15, 2003, one and 15/100ths percent (1.15%) oftbe available amount of the Letter of Credit in effect on the Date of Issuance and on each Anniversary Date (except that no payment shall be due on August 6, 2003, the payment made on August 6, 2002 being for the period beginning on such date through August 15, 2003), and (b) thereafter, in the event the Bank has elected to extend the Letter of Credit as described in Section 2.1, the amount agreed to by the Bank and the Borrower in writing. The Letter of Credit Fee is non-refundable. The Letter of Credit Fee will be payable in advance on the Date of Issuance and on each Anniversary Date on which the Letter of Credit is in effect. The Borrower also shall pay the Bank upon each transfer or amendment of the Letter of Credit in accordance with its terms, such amount as shall at the time of any transfer or amendment then be the charge which the Bank is customarily making for transfers or amendments of similar letters of credit. ....a.i.l.. 2.4 Capital Adequacy. If after the date hereof, the Bank has determined that the ) adoption or effectiveness of any applicable law, rule or regulation regarding capital adequacy, or any change therein, or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by the Bank with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, has or would have the effect of reducing the rate of return on the Bank's capital or assets as a consequence of its commitments or obligations hereunder to a level below that which the Bank could have achieved but for such adoption,. effectiveness, change or compliance (taking into consideration the Bank's policies with respect to capital adequacy), then from time to time, within fifteen (15) days after demand by the Bank, the Borrower shall pay to the Bank such additional amount or amounts as will compensate the Bank for such reduction. Upon determining in good faith that any additional amounts will be payable pursuant to this Section, the Bank will give prompt written notice thereof to the Borrower, which notice shall set forth the basis of the calculation of such additional amounts, although the failure to give any such notice shall not release or diminish any of the Borrower's obligations to pay additional amounts pursuant to this Section. Determination by the Bank of amouqts owing under this Section shall, absent manifest error, be final and conclusive and binding on the parties hereto. Failure on the part of the Bank to demand compensation for any period hereunder shall not constitute a waiver of the Bank's right to demand any such compensation in such period or in any other period. 2.5 The Note. The Bank agrees, on the terms and conditions hereinafter set forth, to l[~ lend to the Borrower the amount of $172,420.00 (the "Bank Loan"). Proceeds of the Bank Loan 10 shall be used by the Borrower to pay costs of issuance of the Bonds in excess of the amount permitted to be paid from proceeds of the Bonds under the Internal Revenue Code of 1986. The terms and conditions of the Bank Loan shall be as set forth in the Note. 2.6 Obligations Absolute. The obligations of the Borrower under this Reimbursement Agreement and the Note shall be absolute, unconditional and irrevocable, and shall be paid and performed strictly in accordance with the respective terms thereof, under all circumstances whatsoever, including, without limitation, the following circumstances: (a) any lack of validity or enforceability of the Letter of Credit or any of the Transaction Documents; (b) any amendment or waiver of or any consent to departure from all or any of the Transaction Documents; (c) the existenceof~any 'cla4JI, setoff" defense or other rights which the Borrower may have at any time against the Trustee, the lssuer, any beneficiary or any transferee of the Letter of Credit (or any persons or entities for whom the Trustee, any such beneficiary or any such transferee may be acting), the Bank (other than the defense of payment to the Bank in accordance with the terms of this Reimbursement Agreement) or any other person or entity, whether in connection with this . Reimbursement Agreement, any of the other Transaction Documents or any unrelated transaction; ~ ) (d) any statement or any other document presented under the Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect whatsoever; (e) payment by the Bank under the Letter of Credit against presentation of a sight draft or certificate which does not strictly comply with the terms of the Letter of Credit; (t) payment by the Bank under the Letter of Credit notwithstanding: (i) any instructions of the Borrower given after the Letter of Credit is issued not to make payment thereunder; (ii) the occurrence of any event, including, without limitation, the commencement of legal proceedings to prohibit payment under the Letter of Credit; or (iii) the issuance of any order by any government agency, governing body or court whether or not having jurisdiction in the prelll1ses prohibiting payment under the Letter of Credit; and (g) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing. ;....;'.....fi\i., .]U1 11 2.7 Time and Payment. All payments by the Borrower to the Bank hereunder or under the Note shall be made by 2:00 p.m., Tampa, Florida time, on the date due in lawful currency of the United States in immediately available funds to the Bank. Any payment made after such time shall be deemed to be made on the next following Business Day. Interest and the Letter of Credit Fee payable hereunder shall be computed on the basis of actual number of days elapsed over a year of 365/366 days. Whenever any payment under this Reimbursement Agreement or under the Note is dueon a day which is not a Business Day, the date of payment thereof shall be extended to the next succeeding Business Day. If the due date for any such payment is so extended or extended for any other reason, including by operation of law, such interest and fees shall accrue and be payable to the date of payment thereof. If any amount required to be paid by the Borrower to the Bank under this Reimbursement Agreement, the Note or any Letter of Credit Document remains unpaid after such amount is due (whether because of operation of law or otherwise), the Borrower shall pay interest on such past due amount from the date due until such amount is paid in full at the Default Rate. AU such interest shall be due and payable on demand. SECTION 3 CONDITIONS PRECEDENT 3.1 Conditions Precedent. The obligation of the Bank to issue the Letter of Credit and to make the Bank Loan is subject to satisfaction of the following conditions (in form and substance ~) acceptable to the Bank in its sole discretion) on the Date of Issuance: (a) Executed Transaction Documents. Receipt by the Bank of fully executed originals of this Reimbursement Agreement and the other Letter of Credit Documents, together with fully executed copies of the other Transaction Documents. (b) No Default; Representations and Warranties. At the time of issuance of the Letter of Credit and after giving effect thereto (i) there shall exist no Default or Event of Default, and (ii) all representations and warranties contained herein or in the other Transaction Documents then in effect shall be true and correct in all material respects. '1 I i (c) Opinion of Counsel. Receipt by the Bank of an opinion, or opinions, in form and substance satisfactory to the Bank, addressed to the Bank from counsel to the Borrower relating to, among other things, the due authorization, execution, delivery and enforceability of this Reimbursement Agreement and the other Letter of Credit Documents, and to the validity and enforceability of the Bank's mortgage and security interest in the Collateral. (d) Corporate Documents. Receipt by the Bank of the following: ) (i) Articles of Incorporation. Copies of the articles of incorporation of the Borrower certified to be true and complete as of a recent date by the Secretary of State of Florida. 12 / - (ii) Resolutions. Copies of resolutions of the Board of Directors of the Borrower approving and adopting this Reimbursement Agreement and the other Transaction Documents, as applicable, and the transactions contemplated therein and authorizing execution and delivery thereof, and each certified by a secretary or assistant / secretary as of the Date of Issuance to be true and correct and in force and effect as of such date. (iii) Bylaws. Copies of the bylaws certified by a secretary or assistant secretary of the Borrower as of the Date of Issuance to be true and correct and in force and effect as of such date. (iv) Good Standing Certificates. Copies of certificates of good standing, existence or its equivalent certified as of a recent date by the appropriate governmental authorities of the state of incorporation and each other state in which the failure to so qualify and be in good standing would have a material adverse effect on its business or operations in such state. (e) Insurance. Receipt by the Bank of satisfactory evidence of the insurance required to be maintained pursuant to Section 4.1(c) hereof. ) <L-,~' (f) Title Insurance. Receipt by the Bank of an ALTA mortgagee leasehold title insurance policy insuring the lien of the mortgage pursuant to the Mortgage and Security Agreement, issued by Attorneys' Title Insurance Fund, Inc., naming the Bank as the insured, in an amount not less than $2,296,584.38, identifying the Borrower as the holder of a leasehold in that portion of the Collateral as constitutes real property and subject only to Permitted Encumbrances. (g) Rating. Receipt by the Bank of satisfactory evidence that Moody's Investors Service is maintaining a rating on general obligation bonds of the City of Clearwater, Florida of not less than Baal. (h) Miscellaneous. Receipt by the Bank of all other loan documents or items that are customarily provided to lenders in transactions of this type. SECTION 4 COVENANTS, REPRESENTATIONS AND WARRANTIES 4.1 Covenants. The Borrower covenants to the Lender the following: (a) Payment. The Borrower shall pay when due the Obligations including without limitation all sums owing to the Lender under this Reimbursement Agreement, the Note, the Pledge Agreement and the other Letter of Credit Documents. JD'/i~".'" ,~-.; '1 ~ . [.:> 13 (b) Further Assurances. On demand of the Lender, the Borrower shall do any act, or execute any additional documents reasonably required by the Lender to confirm the lien on the Collateral and the mortgage and security interest granted in the Mortgage and Security Agreement, herein, in the Pledge Agreement, including, but not limited to, executing additional fmancing statements or continuation statements, new or replacement agreements supplementing, extending or otherwise modifying this Reimbursement Agreement and/or the Pledge Agreement. (c) Insurance. The Borrower shall maintain insurance with responsible insurance companies on each of its properties, in such amounts, against such risks (specifically to include flood insurance (if obtainable), fire and extended coverage insurance covering all assets, business interruption insurance, workers' compensation insurance and liability insurance), with such companies and otherwise as is satisfactory to the Bank and providing for at least 30 days prior notice to the Bank of any cancellation thereof. Satisfactory evidence of such insurance will be supplied to the Bank on the Date of Issuance and no later than the date of each policy renewal. In the event the Borrower fails to maintain insurance as required hereunder, the Bank has the right to procure such insurance whether or not the Borrower I s failure to maintain such insurance constitutes an Event of Default or an event or condition which, upon the giving of notice or the passage of time, or both, would constitute an Event of Default. Any amounts paid by the Bank for insurance shall be due and payable to the Bank upon demand and shall be secured hereby. ) In the event of a casualty loss in excess of the deductible or retained limit under the terms of the applicable insurance policy (each, a "Casualty Loss"), the Borrower shall give prompt notice thereof to the insurance carrier. Proceeds of insurance in the amount of $50,000 or more from any Casualty Loss shall be promptly applied by the Borrower to the redemption of Bonds if not promptly applied to the acquisition or rebuilding of property damaged or destroyed. (d) Taxes and Insurance. Upon the request of the Lender, the Borrower shall submit to the Lender such receipts and other statements which shall evidence, to the satisfaction of the Lender, that all taxes, assessments and insurance premiums have been paid in full. (e) Financial Statements and Budget. The Borrower shall: (i) As soon as practicable, and in any event within forty-five (45) days after the end of each of the first three quarterly periods of each Fiscal Year, deliver to the Bank a balance sheet of the Borrower as at the end of such quarterly period, and related statements of income, results of operations and changes in financial position for the period from the beginning of the then current Fiscal Year to the end of such quarterly period, together with consolidated and consolidating statements and all in reasonable detail and certified by an appropriate officer of the B~rrower to have been prepared in accordance with generally accepted accounting principles consistently applied; (ii) As soon as practicable and in any event within one hundred fifty (150) days after the end of each Fiscal Year, deliver to Bank a balance sheet of the Borrower as at the 14 end of the Fiscal Year, and related statements of income, results of operations and changes in financial condition for such Fiscal Year, together with consolidated and consolidating statements and setting forth in each case in comparative form corresponding figures from the preceding annual report, all in reasonable detail and satisfactory in scope to the Bank and prepared in accordance with generally accepted accounting principles consistently applied, and accompanied by an unqualified audit report of an independent certified public accountant acceptable to the Bank, and a letter or certificate, specifying any and all Defaults and Events of Default of which said certified public accountant shall have knowledge, together with any management letters issued by said certified public accountant; (Hi) With reasonable promptness, deliver to the Bank such additional [mancial or other data as Bank may reasonably request in respect of the Borrower. (f) Hazardous Materials. The Borrower warrants and represents to the Bank (and its successors and assigns) that the Premises have not been, are not now being, and will not be used in violation of any federal, state or local Enviromnental Law, ordinance or regulation, that no proceedings have been commenced, or notice(s) received, concerning any alleged violation of any such enviromnentallaw, ordinance or regulation, and that the Premises are free of Hazardous Materials the removal of which is required by any federal, state or local agency, authority or governmental unit. The Borrower covenants that it shall comply with all such laws, ordinances and regulations. <J The Borrower shall reimburse the Lender (and its successors and assigns) for and hold the Lender (and its successors and assigns) harmless from all fines or penalties made or levied against the Lender (or its successors and assigns) by any governmental agency or authority as a result of or in connection with the Premises or the Collateral and the use, generation, storage, transportation, discharge, release or handling of any Hazardous Materials or any other material the use, generation, storage, transportation, discharge, release or handling of which is regulated by any federal, state or local statute, law, rule, regulation, ordinance or order at any time. The Borrower also agrees that it shall reimburse the Lender (and its successors and assigns) for and indemnify and hold the Lender (and its successors and assigns) harmless from any and all costs, expenses, (including reasonable attorney's fees) and for all civil judgments or penalties incurred, entered, assessed, or levied against the Lender (and its successors and assigns) as a result of the use of the Premises or as a result of any release of any Hazardous Materials associated with the Premises. Such reimbursement or indemnification shall include but not be limited to any and all judgments or penalties to recover the cost of cleanup of any such release by the Borrower associated with the Premises and all expenses incurred by the Lender (and its successors and assigns) as a result of such a civil action, including but not limited to reasonable attorneys' fees. The Borrower's obligations hereunder shall survive the teimination of this Reimbursement Agreement. (g) Taxes and Liens. The Borrower shall promptly pay, or cause to be paid, all taxes, assessments or other governmental charges which may lawfully be levied or assessed Hf[l;') upon the income or profits of the Borrower, or upon any property, real, personal or mixed, 15 belonging to the Borrower, or upon any part thereof and also any lawful claims for labor, material and supplies which, ifunpaid, might become a lien or charge against any such property; provided, however, the Borrower shall not be required to pay any such tax, assessment, charge, levy or claim so long as the validity thereof shall be actively contested in good faith by proper proceedings; but provided further that any such tax, assessment, charge, levy or claim shall be paid forthwith upon the commencement of proceedings to foreclose any lien securing the same unless the Borrower obtains and delivers to the Bank a surety bond satisfactory to the Bank. (h) Business, Existence and Qualification. The Borrower shall qualify to do business in all jurisdictions where the Borrower I s activities require it to do so and do or cause to be done all things necessary to preserve and to keep in full force and effect the existence of the Borrower in its current form and all of Borrower's rights and franchises, trade name, patents, trademarks, licenses, leases, permits, copyrights, trade secrets and other proprietary information. (i) Maintain Property. The Borrower shall maintain its properties in good order and repair (ordinary wear and, tear ex~epte~) apd,.. from time to time, make all needful and proper repairs, renewals, replacements, additions and improvements thereto. (j) Right of Inspection. The Borrower shall permit any person designated by the Bank, on twenty-four hours prior notice by the Bank, to visit and inspect the properties, the books and records and the financial books, records, statements and reports of the Borrower (other than records required by law to be held confidential) and to discuss its affairs, finances and accounts with its officers, all at such reasonable times and as often as the Bank may reasonably request. 1 ) (k) Observe All Laws. The Borrower shall conform to and duly observe all laws, regulations and other valid requirements of any regulatory authority, public or private, with respect to the conduct of the Borrower I s business. (1) ERISA. The Borrower shall comply with all requirements of ERISA applicable to it and furnish to the Bank as soon as possible and in any event within thirty (30) days after the Borrower or the duly appointed administrator of a Plan of the Borrower (as defmed in ERISA) knows or has reason to know that any Reportable Event (as defined in ERISA) has occurred, the statement of the chief financial officer of the Borrower describing in reasonable detail such Reportable Event and any action which the Borrower proposes to take with respect thereto, together with a copy of the notice of such Reportable Event given to the Pension Benefit Guaranty Corporation or a statement that said notice will be filed with the annual report to the United States Department of Labor with respect to such Plan if such filing has been authorized. (m) Accounting Methods and Financial Records. The Borrower shall maintain a system of accounting, and keep such books, records and accounts (which shall be true and complete), as may be required or necessary to permit the preparation of financial statements in accordance with generally accepted accounting principles consistently applied. '~'" i.:".H,<" ';,W ~ 16 (n) Adverse Conditions or Events. The Borrower shall, with reasonable promptness (but in no event later than ten (10) days after a responsible officer of the Borrower acquires knowledge of one of the following states of affairs), give written notice to the Bank of (i) the occurrence of any Event of Default hereunder, (ii) an event which would constitute such an Event of Default but for the requirement that notice be given or time elapse or bother hereunder, (Hi) a monetary default of $25,000 or more or any other event of default under any other obligation of the Borrower, (iv) any fine exceeding $25,000, assessment exceeding $25,000, or other disciplinary action threatened or levied against the Borrower, (v) any developments or other information which would have a material adverse effect on the business, operations or [mancial condition of the Borrower or the Bank's rights under the Letter of Credit Documents, (vi) any litigation filed by or against Borrower or (vii) any uninsured or partially insured loss through casualty or theft in excess of $100,000, specifying in each case the nature thereof, the period of existence thereof and what action is proposed to be taken with respect thereto. (0) Suits or Other Proceedings. The Borrower shall promptly give Bank written notice of any pending or threatened action, suit, arbitration or other proceeding not previously disclosed pursuant to Section 4.1(n) hereof against or otherwise adversely affecting the Borrower involving amounts in excess of $100,000 or of any attachment, levy, execution, or other process being instituted against any assets of the Borrower pursuant to such claims. (p) Condemnation. The Borrower shall promptly notify the Bank of any actual or threatened initiation of any eminent domain proceeding (each, a "Governmental Taking") as to any part of the Project and shall deliver to the Bank copies of any and all papers served in connection with such proceedings. The Borrower shall promptly apply the proceeds of any such condemnation or taking in the amount of $100,000 or more to the redemption of Bonds if not promptly applied to the restoration of the Project or the acquisition of assets having a similar function and market value to the property taken or condemned. (q) Consolidation or Merger. The Borrower shall not enter into any merger or consolidation, or transfer control or ownership of the Borrower or acquire any affiliate, without the prior written consent of the Bank. (r) Sale of Assets, Etc. The Borrower shall not sell, assign, lease, or otherwise dispose of or transfer or contribute any assets of the Borrower, except in the no~a1 course of its business or with the prior written consent of the Bank. (s) Loans. Without the prior written consent of the Bank, the Borrower shall not make or permit to remain outstanding any loan or advance other than pursuant to the . Transaction Documents. . (t) Limitation on Liens. Except for Permitted Encumbrances and Permitted Liens, the Borrower shall not, without the prior written consent of the Bank, incur, create, assume or permit to exist any mortgage, pledge, security interest, encumbrance, lien or charge of any kind upon any of its assets now owned or hereafter acquired, including those arising under conditional sales or other title retention agreements. The Borrower shall not, without the prior written consent ,'il!l~' ~~f.;~;~~H .JillII-~' ,~ 17 of the Bank, incur, create, assume or. permit to exist any mortgage, pledge, security interest, encumbrance, lien or charge of any kind upon the Collateral, the site thereof or any portion thereof, or upon any cash or marketable securities of the Borrower. (u) Guaranties. The Borrower shall not guarantee, assume, endorse or otherwise become or remain liable in connection with the obligations of any other person except with the prior written consent of the Bank. (v) Financial Condition. The Borrower shall maintain for each Fiscal Year a Cash Flow Coverage Ratio, using the fmancial information (as determined using generally accepted accounting principles consistently applied) shown on the reports and statements submitted pursuant to Section 4.1 (e )(ii) hereof, of not less than 1.35: 1.0. (w) Indebtedness. Without the prior written consent of the Bank, the Borrower shall not incur liability in any form for any Indebtedness other than: (i) Indebtedness to the Bank, (ii) normal trade debts incurred in the ordinary course of Borrower's business, and ") """."., (iii) Indebtedness in existence on the date hereof and disclosed to the Bank in writing by the Borrower and acknowledged by the Bank in writing. (x) Character of Business. The Borrower shall not change the general character of its business as conducted at the date hereof, or engage in any type of business not reasonably related to its business as presently conducted. (y) Sinking Fund Payments. The Borrower shall make payments to the Trustee on the first day of each month commencing September 1, 1998, ~or ~eposit into the Retirement Fund created pursuant to the Indenture, in accordance. with th~ schedule attached hereto as Exhibit C. If, on or before August 1, 2002'- the Borrower shall not have provided the Bank with evidence reasonably satisfactory to the Bank that the term of the Lease has been extended until at least June 30, 2025, then beginning September 1, 2002, the scheduled payments set forth on Exhibit C shall be modified by the Lender to provide for monthly payments by Borrower for deposit to the Retirement Fund in such amounts as shall provide funds for the retirement of the Bonds then outstanding through approximately level monthly payments of principal and interest (calculated based upon the interest rate on the Bonds as of August 1, 2002) over a period from September 1, 2002 to and including August 1, 2010 such that1h.e Bonds shall have been retired by August 1, 2010. Upon preparation of a revised Exhibit C, the Lender shall provide a copy thereof to the Borrower. The Lender's calculation of the revised payment schedule shall be final, conclusive and binding on the parties hereto absent manifest error. '.;;!ili0 ~L,"-__.L~.iJ 18 The schedule attached as Exhibit C may also be modified by the Borrower and the Lender at any time, subject in each such case to receipt of an opinion of nationally recognized bond counsel to the effect that such modification will not adversely affect the exclusion of interest on the Bonds from gross income for federal income tax purposes. 4.2 following: Representations. The Borrower represents and warrants unto the Lender the (a) Due Authorization. The Borrower (i) has the requisite corporate power and authority to execute, deliver .and perform this Reimbursement Agreement and each of the other Transaction Documents to which it is a party and to incur and perform the obligations herein and therein provided for, and (ii) is duly authorized under all applicable provisions of law, and has taken all necessary corporate action on its part required, to execute, deliver and perform this Reimbursement Agreement and each of the Transaction Documents to which it is a party. ) (b) No Conflicts. Neither the execution and delivery of the Transaction Documents to which the Borrower is a party, nor the consummation of the transactions contemplated therein, nor performance of and compliance with the terms and provision thereof will (i) violate or conflict with any provision of the articles of incorporation or by laws of the Borrower, (ii) violate, contravene or materially conflict with any law, regulation, order, writ, judgment, injunction, decree or permit applicable to the Borrower, (iii) violate, contravene or materially conflict with any contractual provisions of, or cause an event of default under, any indenture, loan agreement, mortgage, deed of trust, contract or other agreement or instrument to which the Borrower is a party or by which the Borrower may be bound, or (iv) result in or require the creation of any lien, security interest or other charge or encumbrance (other than those contemplated in or in connection with the Transaction Documents) upon o.r with respect to the properties of the Borrower. (c) Consents. No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance of this Reimbursement Agreement or any of the other Transaction Documents. (d) Enforceable Obligations. This Reimbursement Agreement and the other Transaction Documents have been duly executed and delivered and constitute legal, valid and binding obligations of the Borrower, enforceable in accordance with their respective terms, except as may be limited by bankruptcy or insolvency laws or similar laws affecting creditors I rights generally. (e) Good Standing. The Borrower is a. not-for-profit corporation, duly organized, validly existing and in good standing under the laws of the State of Florida and has the power and authority to own its property and to carry on its business in each jurisdiction in which the Borrower does business and has all necessary licenses and permits to efficiently conduct its business. .....l.,.....li.hl'h. ;-;:fi"-'W 19 (f) Litigation. There is no proceeding involving the Borrower pending, or to /-. the knowledge of the Borrower, threatened before any court or governmental authority, agency or arbitration authority, except as disclosed to the Bank in writing and acknowledged by the Bank. (g) Ownership of Assets. The Borrower has good title to its assets and its assets are free and clear of liens, except those granted pursuant to the Transaction Documents, Permitted Liens and Permitted Encumbrances. (h) Financial Condition. All [mancial information concerning the Borrower provided to the Bank was true, correct and complete as of its date and there has been no material and adverse change in the financial condition or results of operations of the Borrower since June 30, 1997. SECTION 5 EVENTS OF DEFAULT 5.1 Events of Default. Each of the following specified events (unless specifically waived by the Lender pursuant to Section 7.2 hereof) shall constitute an Event of Default hereunder: ) (a) If the Borrower defaults in any payment of the Obligations when and as the same shall become due (whether at maturity or by reason of acceleration or notice of prepayment or otherwise); or (b) If the Borrower defaults in the performance or observance of any covenant or agreement contained in this Reimbursement Agreement or any of the Letter of Credit Documents (other than those con~ined in ~ubsection (a) above) and fails to cure the same within thirty (30) days, provided that such thirty (30) day period will be extended by the Bank if in the Bank's reasonable judgment .the default can be cured in a longer period of time, the Borrower is diligently attempting to cure the default and the Bank will not be adversely affected by such extension; or (c) The occurrence of an "Event of Default" or a default (which is not cured within applicable time periods, if any) under any of the Letter of Credit Documents, the Lease or any other current or future agreement between the Bank or any affiliate or subsidiary of NationsBank Corporation and the Borrower; or (d) If the Borrower defaults, beyond any period of grace provided with respect thereto, in the payment of principal when due, whether by acceleration or otherwise, or interest or other amount payable in respect of any other indebtedness, or in the performance of any other agreement, term or condition contained in any agreement under which any such obligation is created, if the effect of such default is to cause, or permit the holder or holders of such obligation 20 (or a trustee for such holder or holders) to cause, such obligation to become due prior to its stated maturity; or (e) If any representation or warranty made by the Borrower in the Letter of Credit Documents or in any writing furnished by the Borrower in connection with the Obligations or pursuant to this Reimbursement Agreement shall have been false, misleading or incomplete in any material respect on the date as of which made; or (f) Liquidation or dissolution of the Borrower or suspension of the business of, or the filing by the Borrower of a voluntary petition in bankruptcy or a voluntary petition or an answer seeking reorganization, arrangement, readjustment of its debts or for any other relief under the United States Bankruptcy Code, as amended, or under any other insolvency act or law, state or federal, now or hereafter existing, or any other action of the Borrower indicating its consent to, approval of, or acquiescence in any such petition or proceeding; or the application for, or the appointment of, a receiver or a trustee for the Borrower, the application for, or the consent to or acquiescence in, an assignment for the benefit of creditors of the Borrower of its inability to pay its debts as they mature; or ' ;4,) (g) Filing of an involuntary petition against the Borrower in bankruptcy or seeking reorganization, arrangement, readjustment of its debts or for any other relief under the Bankruptcy Code, as amended, or under any other insolvency act or law, state or federal, now or hereafter existing; or the involuntary appointment of a receiver or trustee for the Borrower or for all ora substantial part of the property of the Borrower; the issuance of a warrant of attachment, execution or similar process against any substantial part of the property of the Borrower and the continuance of any of such events or conditions for ninety (90) days undismissed or undischarged; or (h) If a final judgment, which with other outstanding fmal judgments against the Borrower exceed an aggregate of $100,000, shall be rendered against the Borrower (separately or collectively) and if within thirty (30) days after entry thereof, such judgment shall not have been discharged or execution thereof stayed pending appeal, or if within thirty (30) days after the expiration of any such stay such judgment shall not have been discharged; (i) If any right to income or other form of equity interest in the Borrower shall be transferred, whether by operation of law or otherwise, or shall become subject to a lien, security interest or encumbrance, whether by attachment or otherwise, voluntary or involuntary, in favor of any entity other than the Bank; or (j) The general obligation bond rating assigned to the City of Clearwater, Florida by Moody's Investors Service shall be less than Baal. 5.2 Acceleration; Remedies. Upon the occurrence of an Event of Default, and at any time thereafter unless and until such Event of Default has been waived by the Lender or cured to the satisfaction of the Lender, the Lender shall be entitled to take any action permitted by "'1) <!;~.. --~ 21 applicable law, including the following actions, without prejudice to the rights of the Lender to enforce its claims against the Borrower, except as otherwise specifically provided for herein: (a) Acceleration of Obligations. Declare all unreimbursed drawings in respect of the Obligations and any and all other indebtedness or obligations of any and every kind owing by the Borrower to the Lender hereunder to be due, whereupon the same shall be inunediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower. (b) Enforcement of Rights. Enforce any and all rights and interests created and existing hereunder or under any of the other Transaction Documents and all rights of set-off. (c) Draw on Letter of Credit. The Lender may, at its option, direct the Trustee to either accelerate the principal and interest due on the Bonds pursuant to Section 8.01(d) of the Indenture or direct the Trustee to call Bonds for redemption or to purchase the Bonds in lieu of redemption pursuant to Sections 3.01(d) and (h) of the Indenture and to draw on the Letter of Credit, in accordance with the provisions of the Indenture. If the Bonds are purchased rather than repaid with the proceeds of such a drawing under the Letter of Credit, such Bonds shall be held as Pledged Bonds for the benefit of the Lender in accordance with the terms hereof, of the Pledge Agreement and of the terms of the Indenture. Notwithstanding the foregoing, if a Bankruptcy Default shall occur, then all Obligations, all accrued interest in respect thereof, all accrued and unpaid fees and other indebtedness or obligations owing to the Lender hereunder shall immediately become due and payable without the giving of any notice or other action by the Lender. ) 5.3 Rights Not Exclusive. The rights provided for in this Reimbursement Agreement and the other Transaction Documents are cumulative and are not exclusive of any other rights, powers, privileges or remedies provided by law or in equity, or under any other instrument, document or agreement now existing or hereafter arising. 5.4 Subrogation. If an Event of Default shall have occurred and be continuing and there shall be outstanding all or any part of any unreimbursed Letter of Credit payment(s) or any other Obligation hereunder, the Borrower agrees that the Lender shall be subrogated to any and all rights of the Borrower against the beneficiary of the Letter of Credit, and the Borrower agrees that, upon request of the Lender, the Borrower will promptly do such further acts and execute, acknowledge and deliver such documents as the Lender may reasonably request in order to implement the assignment to the Lender of such rights of the Borrower against the beneficiary of the Letter of Credit. 22 SECTION 6 COLLATERAL 6.1 Grant of Security Interest in the Pledged Bonds. To secure the prompt payment or performance in full when due, whether by lapse of time, acceleration or otherwise, of the Secured Obligations, the Borrower hereby pledges, assigns, hypothecates, transfers and delivers to the Lender all right, title and interest in Bonds which are purchased with the proceeds of a draw under the Letter of Credit so long as such Bonds are held by the Lender's designee and not remarketed (the "Pledged Bond(s) ") and hereby grants to the Lender a security interest in and to the Pledged Bond(s), the interest thereon and all proceeds thereof as collateral security for the prompt and complete payment when due of all amounts due the Lender in respect of the Letter of Credit, this Reimbursement Agreement or any other of the Letter of Credit Documents. The Borrower shall enter into the Pledge Agreement to further evidence the pledge granted hereunder. 6.2 Mortgage and Security Agreement. Pursuant to the Mortgage and Security Agreement the Borrower is granting the Bank a mortgage on and security interest in certain real and personal property to secure amounts owing by Borrower to Bank hereunder (such real and personal property, together with the Pledged Bonds, being referred to herein as the "Collateral" or the "Pledged Collateral"). 6.3 Agreements relating to Pledged Collateral. 'i") , (a) Payments Received on Pledged Bond(s). If the Borrower shall become entitled to receive or shall receive any principal, interest or othe~ payment in respect of the Pledged Bond(s), the Borrower agrees to accept the same as the Lender's agent and to hold the same in trust on behalf of the Lender and to deliver the same forthwith to the Lender. All sums of money so paid in respect of the Pledged Bond(s) which are received by the Borrower and paid to the Lender shall be credited against the obligations of the Borrower to the Lender. . . (b) ReleaSe of Plectged.Bond(s) on Remarketing. If the Borrower makes or causes to be made a payment or prepayment in respect of its reimbursement obligations under the Reimbursement Agreement or such a payment or prepayment is proposed to be made on behalf of the Borrower as a result of a remarketing of the Pledged Bond(s), the Lender agrees to release the Pledged Bond(s) which are the subject of such a remarketing from the lien hereof, and deliver to the Remarketing Agent, the Borrower or the Trustee, as appropriate, for resale in accordance with the terms of the Indenture, as the case may be, Pledged Bond(s), and the Lender will notify its designee of the release of its lien in such Pledged Bond(s) promptly following receipt of notice that the Remarketing Agent has received the purchase price in the form of remarketing proceeds with respect to such Pledged Bond(s). (c) Negative Pledge. The Borrower shall not, without the prior written consent of the Lender, sell, assign, transfer, exchange, or otherwise dispose of, or grant any option with respect to, the Pledged Collateral, nor shall it create, incur or permit to exist any pledge, lien, mortgage, hypothecation, security interest, charge, option or any other encumbrance with respect 23 ,., to any of the Pledged Collateral, or any interest therein, or any proceeds thereof, except for the (i) lien and security interest provided herein in the Pledge Agreement and in the Mortgage and Security Agreement in favor of the Lender, and (ii) the sale of the Pledged Bond(s) pursuant to the Indenture. (d) Unavailability of Letter of Credit. The Letter of Credit shall not be available to pay principal of, or interest on, any Pledged Bond(s), whether at maturity, upon acceleration, redemption, purchase or otherwise. 6.4 Remedies. J (a) General Remedies. Upon the occurrence of an Event of Default and at any time thereafter, the Lender shall have in addition to the rights and remedies provided herein, in the Transaction Documents or by law, the rights and remedies of a mortgagee and of a secured party under the Code (regardless of whether the Code is the law of the jurisdiction where the rights and remedies are asserted and regardless of whether the Code applies to the affected Collateral), and, to the extent permitted by law, the Lender may with or without judicial process or the aid and assistance of others and without demand and without advertisement, notice, hearing or process of law, all of which the Borrower hereby waives to the extent permitted by law, at any place and time or times, sell and deliver any or all Collateral held by or for it at public or private sale, by one or more contracts, in one or more lots, for cash, upon credit or otherwise, at such prices and upon such tenns as the Lender deems advisable, in its sole discretion, provided that said disposition complies with any and all mandatory legal requirements. In addition to all other sums due the Lender hereunder, the Borrower shall pay the Lender all reasonable costs and expenses incurred by the .Lender, including reasonable attorneys' fees and court costs, in obtaining or liquidating the Collateral, in enforcing payment of the Secured Obligations, or in the prosecution or defense of any action or proceeding by or against the Lender or the Borrower. concerning any matter arising out of or connected with this Reimbursement Agreement or the Collateral or the Secured Obligations, including without limitation in connection with appellate proceedings or any of the foregoing arising in, arising under or related to a case under the United States Bankruptcy Code, as amended. To- the extent the.rights of notice cannot be legally waived hereunder, the Borrower agrees that any requirement of reasonable notice shall be met if such notice is personally served on or mailed, postage prepaid, to the Borrower in accordance with Section 7.1 of this Reimbursement Agreement at least ten (10) days before the time of sale or other event giving rise ta the requirement of such notice. The Lender shall not be obligated to make any sale or other disposition .of the Collateral regardless of notice having been given. To the extent permitted by applicable law, the Lender may be the purchaser at any such sale. To the extent permitted by applicable law, the Borrower hereby waives all of its rights of redemption from any such sale. Subject to the provisions of applicable law, the Lender may postpone or cause the postponement of the sale of all or any portion of the Collateral by announcem~nt at the time and place to which the sale was postponed or the Lender may further postpone such sale by announcement made at such time and place. (b) Additional Remedies Relating to the Pledged Bonds. Upon the occurrence .of an Event of Default and to the extent permitted by law, the Lender may immediately (i) have 24 the right to vote such Pledged Bond(s), and (ii) cause all or any of the Pledged Bond(s) to be transferred to it or registered in the name of its nominee(s). (c) Nonexclusive Nature of Remedies. Failure by the Lender to exercise any right, remedy or option under this Reimbursement Agreement or any other agreement between the Borrower and the Lender or provided by law, or delay by the Lender in exercising the same, shall not operate as a waiver; no waiver hereunder shall be effective unless it is in writing, signed by the party against whom such waiver is sought to be enforced and then only to the extent specifically stated, which in the case of the Lender shall only be granted as provided in Section 7.2 of this Reimbursement Agreement. To the extent permitted by applicable law, neither the Lender nor any party acting as attorney for the Lender, shall be liable hereunder for any acts or omissions or for any error of judgment or mistake of fact or law other than their negligence, willful misconduct or unlawful conduct hereunder. The rights and remedies of the Lender under this Reimbursement Agreement shall be cumulative and not exclusive of any other right or remedy which the Lender may have. ) 6.5 Application of Proceeds. Upon the occurrence, and during the continuance, of an Event of Default, any payments in respect of the Secured Obligations and any proceeds of the Collateral, when received by the Lender in cash or its equivalent, will be applied in reduction of the Secured Obligations in such order and manner as the Lender may direct in its sole discretion, and the Borrower irrevocably waives the right to direct the application of such payments and proceeds and acknowledges and agrees that the Lender shall have the continuing and exclusive right to apply and reapply any and all such payments and proceeds in its sole discretion, notwithstanding any entry to the contrary upon any of its books and records. The Borrower shall remain liable to the Lender for any deficiency. Any surplus remaining after the full payment and satisfaction of the Secured Obligations shall be returned to the Borrower or to whomsoever a court of competent jurisdiction shall determine to be entitled thereto. SECTION 7 MISCELLANEOUS 7.1 Notices. Except as otherw~se expressly provided herein, all notices and other communications shall have been duly given and shall be effective (a) when delivered, (b) when transmitted via telecopy (or other facsimile device) to the number set forth below, (c) the day following the day on which the same has been delivered prepaid to a reputable national overnight air courier service, or (d) the third Business Day following the day on which the same is sent by certified or registered mail, postage prepaid, in each case to the respective parties at the address set forth below, or at such other address as such party may sp~cify by written notice to the other parties hereto: 25 If to the Borrower: Chi Chi Rodriguez Youth Foundation, Inc. 3030 North McMullen Booth Road Clearwater, FL 33761 Attn.: Chief Financial Officer Telephone: (813) 726-8829 Facsimile: (813) 726-8553 If to the Lender: NationsBank, N.A. 400 North Ashley Drive 2nd Floor Tampa, FL 33602 Attn: Commercial Loan Department Telephone: (813)224-5975 Telecopy: (813)224-3944 7.2 Amendments, Etc. No amendment or waiver of any proVIsIon of this Reimbursement Agreement or consent to any departure by either party hereto therefrom shall in any event be effective unless the same shall be in writing and signed by the other party hereto, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. q,J 7.3 No Waiver; Remedies. No failure on the part of the other party hereto to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided in any Transaction Document or now or hereafter existing at law or in equity. 7.4 Right of Set-off. In addition to any rights now or hereafter granted under applicable law and not by way of limitation of any such rights, dur.ing the continuance of any Event of Default hereunder the Lender is hereby authorized at any'time and from time to time, without notice to the Borrower or to any other person or entity, any such notice being hereby expressly waived by the Borrower, to set-off and to appropriate and apply any and all deposits (general or special) and any other indebtedness at any time held or owing by the Lender to or for the credit or the account of the Borrower against and on account of the Obligations of the Borrower, irrespective of whether or not the Lender shall have made any demand hereunder.. and although said obligations, liabilities or claims, or any of them, shall be contingent or unmatured. 7.5 Indemnification. The Borrower hereby indemnifies and holds hamiless the Lender, its officers, directors and employees (each such Person herein referred to as an "Indemnitee") from and against any and all claims, damages, losses, liabilities, costs or expenses whatsoever which any such Indemnitee may incur (or which may be claimed against such Indemnitee by any person or entity whatsoever) by reason of or .in connection with (a) the execution and delivery or transfer of, or payment or failure to pay under, the Letter of Credit, (b) the issuance and sale of the Bonds; provided that the Borrower shall not be required to indemnify or hold harmless any Indemnitee for any claims, damages, losses, liabilities, costs or 26 expenses to the extent, but only to the extent, caused by (i) the willful misconduct or negligence of such Indemnitee, or (ii) such Indemnitee's willful failure to pay under the Letter of Credit after the presentation to it by the Trustee of a sight draft and certificate complying with the terms and conditions of the Letter of Credit. Nothing in this Section is intended to limit the reimbursement obligations of the Borrower contained in Section 2.2 hereof. In case any action or proceeding is brought against any Indemnitee in respect of which indemnity may be sought under this Reimbursement Agreement, such Indemnitee shall give notice of any such action or proceeding to the Borrower and shall afford the Borrower a reasonable opportunity to participate or intervene in any such action or proceeding, and may require the Borrower, upon such notice, to assume the defense of the action or proceeding; provided that failure of any Indemnitee to give such notice shall not relieve the Borrower from any of its obligations under this Section. Upon receipt of notice from any such Indemnitee, the Borrower shall resist and defend such action or proceeding at the Borrower's expense. The Indemnitee shall permit the Borrower to appeal any adverse judgment at the Borrower's expense. The Borrower shall not be required to indemnify any Indemnitee for any settlement not approved by the Borrower provided that the Borrower shall post security reasonably determined by the Il1demnitee ~o be adequate to protect the Indemnitee against a result less favorable to the Indemnitee than any proposed settlement which is not approved by the Borrower. The obligations. of the Borrower under this Section shall survive the payment of the Bonds and/or any Obligations and the termination of this Reimbursement Agreement. 7.6 Continuing Obligation. This Reimbursement Agreement is a continuing obligation and shall (a) be binding upon the Borrower, its successors and assigns, and (b) inure to the benefit of and be enforceable by the Lender and its successors, transferees and assigns; provided that the Borrower may not assign all or any part of this Reimbursement Agreement without the prior written consent of the Lender. The Lender may assign, negotiate, pledge or otherwise hypothecate all or any portion of this Reimpursement Agreement, or grant participation herein, in the Letter of Credit or in any of its rights hereunder. No such assignment or participation by the Lender, however, will relieve the Lender of its obligation under the Letter of Credit. In connection with any assignment or participation, the Lender may disclose to the proposed assignee or participant any information that the Borrower is required to deliver to the Lender pursuant to this Reimbursement Agreement. 7.7 Transfer of. Letter of Credit. The Letter of Credit may be transferred in accordance with the provisions set forth therein. 7.8 Limited Liability of the Lender. The Borrower assumes all risks of the actsor omissions of the Trustee and any transferee of the Letter of Credit with respect to its use of the Letter of Credit. Neither the Lender nor any of its officers, directors or employees shall be liable or responsible for: (a) the use which may be made of the Letter of Credit or for any acts or omissions of the Trustee; (b) as to any party other than the Lender, the validity, sufficiency or genuineness of documents, or of any endorsement(s) thereon, even if such documents should in fact prove to be in any or all respects invalid, insufficient, fraudulent or forged; (c) payment by the Lender against presentation of documents which do not comply with the terms of the Letter of Credit, including failure of any documents to bear any reference or adequate reference to the !m,;:b Letter of Credit; or (d) any other circumstances whatsoever in making or failing to make payment 27 under the Letter of Credit, except only that the Borrower shall have a claim against the Lender, and the Lender shall be liable to the Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential, damages suffered by the Borrower which the Borrower proves were caused by (i) the Lender's willful misconduct or negligence in determining whether documents presented under the Letter of Credit comply with the terms of the Letter of Credit, or (ii) the Lender's willful failure to pay under the Letter of Credit after the presentation to it by the Trustee of a sight draft and certificate complying with the terms and conditions of the Letter of Credit. In furtherance and not in limitation of the foregoing (but subject to the exception at the end of the immediately preceding sentence), the Lender may accept documents and certificates that appear on their face to be in order, without responsibility for further investigation, regardless of any knowledge or notice to the Lender that the information contained therein is or may be inaccurate or false. 7.9 Costs, Expenses and Taxes. The Borrower agrees to pay on demand all reasonable costs and expenses in connection with the preparation, execution, delivery and administration of this Reimbursement Agreement, the Transaction Documents and any other documents which may be delivered in connection with this Reimbursement Agreement, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Lender with respect thereto and with respect to advising the Lender as to its rights and responsibilities under this Reimbursement Agreement and all reasonable costs and expenses, if any, in connection with (a) the change in terms, maintenance, renewal or cancellation of the Letter of Credit, (b) any and all amounts which the Lender has paid relative to the Lender's curing of any Event of Default resulting from the acts or omissions of the Borrower under this Reimbursement Agreement or any Transaction Document, (c ) the enforcement of this Reimbursement Agreement or any other Transaction Document, or (d) any action or proceeding relating to a court order, injunction, or other process or decree restraining or seeking to restrain the Lender from paying any amount under the Letter of Credit. In addition, the Borrower shall pay any and all stamp and other similar taxes and fees payable or determined to be payable in connection with the execution, delivery, filing and recording of the Letter of Credit, this Reimbursement Agreement, any other Transaction Document, or any other document which may be delivered in connection with this Reimbursement Agreement, and agrees to save the Lender harmless from and against any 'and all liabilities with respect to or resulting from any delay by the Borrower in paying or ,oniission to pay such taxes and fees. 7.10 Severability. Any provision of this Reimbursement' Agreement which is prohibited.. unenforceable or not authorized in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition, unenforceability or non-authorization without invalidating the remaining provisions hereof or affecting the validity, enforceability or legality of such provision in any other jurisdiction. 7.11 Satisfaction Requirement. If any agreement, eertificate or other writing, or any action taken or to be taken, is by the term of this Reimbursement Agreement required to be satisfactory to the Lender, the determination of such satisfaction shall be made by the Lender in 'its sole and exclusive judgment exercised in good faith. 28 7.12 Governing Law. This Reimbursement Agreement is being delivered and is intended to be performed in the State of Florida, and shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of such State. 7.13 Arbitration. Any controversy or claim between the parties hereto including but not limited to those arising out of or relating to this Reimbursement Agreement or any related instruments, agreements or documents, including the Mortgage and Security Agreement, including any claim based on or arising from an alleged tort, shall be determined by binding arbitration in accordance with the Federal Arbitration Act (or if not applicable, the applicable state law), the rules of Practice and Procedure for the Arbitration of Commercial Disputes of J.A.M.S.lEndispute and any successor thereof (l.A.M.S.), and the "Special Rules" set forth below. In the event of any inconsistency, the Special Rules shall control. Judgment upon any arbitration award may be entered in any court having jurisdiction. Either party to this Reimbursement Agreement may bring an action, including a summary or expedited proceeding, to compel arbitration of any controversy or claim to which this Reimbursement Agreement applies in any court having jurisdiction over such action. (a) Special Rules. The arbitration shall be conducted in Pinellas County, Florida and administered by J.A.M.S. who will appoint an arbitrator; if J.A.M.S. is unable or legally precluded from administering the arbitration, then the American Arbitration Association will serve. All arbitration hearings will be commenced within 90 days of the demand for arbitration; further, the arbitrator shall only, upon a showing of cause, be permitted to extend the commencement of such hearing for up to an additional 60 days. ) (b) Reservation of Rights. Nothing in this Reimbursement Agreement shall be deemed to (i) limit the applicability of any otherwise applicable statutes of limitation or repose and any waivers contained in this Reimbursement Agreement; or (ii) be a waiver by the Bank of the protection afforded to it by 12 U.S.C. Sec. 91 or any substantially equivalent state law. 7.14 No Oral Agreement. FLORIDA LAW PROVIDES THAT ANY AGREEMENT ASSERTED AS A CLAIM OR DEFENSE IN AN ACTION RELATED TO THIS TRANSACTION MUST BE IN WRITING AND SIGNED BY THE PARTIES, ORAL AGREEMENTS ARE NOT ENFORCEABLE. THE BORROWER MA Y RELY ONLY ON A WRITTEN AGREEMENT. 7.15 Counterparts. This Reimbursement Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, and it shall not be necessary in making proof of this Reimbursement Agreement to produce or account for more than one such counterpart. . 7.16 Headings. Section headings in this Reimbursement Agreement are included herein for convenience of reference only and shall not constitute a part of this Reimbursement Agreement for any other purpose. 29 ''\ 'i,~,.",v) IN WITNESS WHEREOF, the Bank and the Borrower have caused a counterpart of this Reimbursement Agreement to be duly executed and delivered as of the date ftrst above written by their respective duly authorized officers. G:\l4184\22\Rcimbursemem Agr(4).wpcI CHI CHI RODRIGUEZ YOUTH FOUNDATION, INC. By: ~. ~ ~~ Title: Executive Vice-President NATIONSBANK, N.A. By: . titl:c:~t: '-".1 30 ~ .. J ). ~.~:_: - PREPARED BY/RETURN TO: Moyle, Flanigan, Katz, Kolins Raymond & Sheehan, P.A. Mark E. Raymond, Esquire P.O. Box 3888 West Palm Beach, FL 33402 8kl b.~+- ~ CHI CHI RODRIGUEZ YOUTH FOUNDATION, INC. as Mortgagor AND PINELLAS COUNTY INDUSTRY COUNCIL " AND NATIONSBANK, N.A. as Mortgagees MORTGAGE AND SECURITY AGREEMENT Dated August 1, 1998 This Mortgage and Security Agreement and the obligations secured hereby are exempt, in part, from the excise tax on documents and the intangible personal property tax of the State of Florida pursuant to Section 159.31, Florida Statutes. The amount of indebtedness secured hereby which is not exempt from the excise tax on documents and the intangible personal property tax is $172,420.00. G:\14184\22\Mon 8< See Agr(5).wpd MORTGAGE AND SECURITY AGREEMENT THIS MORTGAGE AND SECURITY AGREEMENT (the "Mortgage"), dated as of August 1,1998, is made by cm cm RODRIGUEZ YOUTH FOUNDATION, INC., a Florida not-for-profit corporation, as mortgagor (hereinafter called "Mortgagor" or "Corporation") in favor of NATIONSBANK, N.A., (and its successors and assigns, including any issuer of a Substitute Letter of Credit [as defined in the herein described Indenture], the "Credit Facility Provider") and PINELLAS COUNTY INDUSTRY COUNCIL, a political subdivision of the State of Florida (sometimes referred herein as the "Issuer") as mortgagees (the Issuer and the Credit Facility Provider are collectively referred to herein as the "Mortgagees"). D E FIN I T I ON S: All capitalized terms used herein shall have the same meaning as in the Reimbursement Agreement or the Indenture as the case may be, unless otherwise defined herein. "Bonds" shall mean the $2,100,000 Pinellas County Industry Council Variable Rate Demand Revenue Bonds (Chi Chi Rodriguez Youth Foundation Project), Series 1998. "Indenture" shall mean the Trust Indenture and Assignment of Mortgage dated as of August 1, 1998, between the Issuer and the Trustee, pursuant to which the Bonds have been issued. ~ ) "Issuer" shall mean Pinellas County Industry Council. "Lease" shall mean that certain Agreement, dated November 12, 1985 by and between the City of Clearwater, Florida and the Corporation, a copy of which is recorded in Official Records Book 6531, Page 2357 et. seq. Public Records of Pinellas County, Florida, as amended by an "Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, Inc." dated March 5, 1987, a copy of which is recorded in Official Records Book 6531, Page 2353 et. seq. Public Records of Pinellas County, Florida, an "Amendment t.o~Agreement" dated February 16, 1988, a copy of which is recorded in Official RecOrds Book 7920, Page 1647 et. seq. Pub}ic Records of Pinellas County, Florida, a "Third Amendment to Agreement" dated November 20, 1989, a copy of which is recorded in Official Records Book 7920, Page 1653 et. seq. Public Records of Pinellas County, Florida, a "Fourth Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, Inc." dated November 1, 1990, a copy of which is recorded in Official Records Book 7920, Page 1,655 et. seq. Public Records of Pine lIas County, Florida, a "Fifth Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, Inc." dated March 30, 1992, a copy of which is recorded in Official Records Book 7920, Page 1658 et. seq. Public Records of Pinellas County, Florida, an unrecorded "Sixth Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, Inc." dated May 21, 1993, and a "Seven Amendment to Agreement with Chi Chi Rodriguez Youth Foundation, Inc." dated August 1, 1998, a copy of which is recorded in Official Records Book _, Page _ et. seq. Public Records of Pine lIas County, Florida. ;')'.. '......... G:\14184\22\MORT & SEe AGR(5) REDUNE AU::; 05 'Cj:=1 Cl1 :.+:..F-i" !1(" I_~~. FU-4il' .,:.;ri.. E~,. :~c p -;:',"":;> . . 1.-/ L... "Loan Agreemc:rn" rneans the L)(1.l~ Agreemenj d;1.~ed as 01 August 1, 1998, b.::rween the Corporation and the Issuer. "Mortgaged PlOpeny" shall. have rht' mtar,lng hereafter ascribed ther.etO. "Note" shall meaH the Pfomis~(Jry Note inthc- original principal amount of $185,981.00 dated August 6, 1993. maturing AUg....1St I, 2003 and made by the Mortgagor payable to the Credit Facility Provider. "Permitted Encu..-nbrances;' ~hail mean chose: maCtrs idc:ntiiied on Schedule EII of Attorney's Title Insuran(;~ Fond Co:mnirmem No. C-24l1049, dated July 14, ] 998, and nu...rnbered 5, 7, 8, 9, 10. 11, 12, 13; 14, 15 and 16. "Real Propenv" shall meau [he land d~s":ribeJ on Exhibit '; A" attached hereto and made' a and all appunenanct$, easements and dghrs thereto. "Reimbursemem Agreement" shall mean collectively, (i) the Reimbursement and Loan Agreement dated Au~'Ust I, 1998 ;,Unong the Credit Fatil.jey Provider and me Mortgagor and (ii) the Master Agreement dated as of March 9, 1998 between NarionsBank, N.A. and the Corporation, as amended, ~ , ) "Tmstee" shall mt4iil Non.ve~t RlIlk ~~.JinneSOti, N.A., in its capaciry as Trustee under the Indenture. WITN ESSETH: ThaI in consideration of the premises and in Qrdtl to secure, on a pari passu basis, the payment of the principal of and interest OIl the Bonds and Note and all fees, expenses and any other sums of any type or nature payable to the Credit Facility Provider under the Reimbursement Agreement, and all sums of any natUle or type payable under the Loan Agreemenr, and all amounts due under this Mortgage and rhe performance and observance of all of the prOVisions hereof and of said Rejmbursement Agreement and Loan Agreement, Mortgagor hereby grants, sells, warrants, conveys, assigns, traIlsf~rs, mortgages and sets over, confirms and grants a lien upon and security interest unto ~'loItgagees (without preference or priority), all of Mortgagor's estate, right, title and interest in, to and under: All of the Real Property, including, wirhout limitarion, 11orrgagor's leasehold inrerest therein pursuant to the l.ease. TOGETHER WITH all improvements now or hereafter locared on said Real Property and all fixtures and articles of personal property of what50ever kind and nature and renewals and replacements thereof now or hereafter affIxed to, attached to, placed or located upon, or used in any way in cO.anection with the complete and comfortable use, occupancy, or operation of the Real h~.: ~J ,': ,:.: r'A '.1-.1......... O:'.14::S':\2Z',M\.!t(.x $~:': Att(~.I.""l>(J .") .... ........~..~~'.- Property (the "Improvements"), all licenses and permits used, useful or required in connection with the use of said Real Property and the Improvements, and all rents, issues, proceeds, revenues and profits accruing from said Real Property and the Improvements and together with all proceeds of the conversion, voluntary or involuntary of any of the foregoing into cash or liquidated claims, including without limitation, proceeds of insurance and condemnation awards and all products of any of the foregoing (the foregoing said real property, fixtures and tangible and intangible personal property hereinafter referred to collectively as the "Mortgaged Property"). Mortgagor hereby grants to Mortgagees a security interest in the foregoing described fixtures and tangible and intangible personal property. TO HAVE AND TO HOLD the Mortgaged Property, together with all and singular the tenements, hereditaments and appurtenances thereunto belonging or in anywise appertaining and the reversion and reversions thereof and all the estate, right, title, interest, homestead, dower and right of dower, separate estate, possession, claim and demand whatsoever, as well in law as in equity, of Mortgagor and unto the same, and every part thereof, with the appurtenances of Mortgagor in and to the same, and every part and parcel thereof unto Mortgagees. Mortgagor warrants that Mortgagor has a valid leasehold estate in the Real Property comprising a portion of the Mortgaged Property, and has valid title to the remaining Mortgaged Property, subject to no lien, charge or encumbrance except Permitted Encumbrances and Permitted Liens and Mortgagor covenants that this Mortgage is and will remain a valid and enforceable mortgage on and security interest in the Mortgaged Property subject only to the exceptions herein ,~~~;~) provided. Mortgagor has full power and lawful authority to encumber the Mortgaged Property in the manner and form herein done or intended hereafter to be done. Mortgagor will preserve such title and will forever warrant and defend the same to Mortgagees and will forever warrant and defend the validity and priority of the lien hereof against the claims of all persons and parties whomsoever. Mortgagor will, at the cost of Mortgagor, and without expense to Mortgagees, do, execute, acknowledge and deliver all and every such further acts, deeds, conveyances, mortgages,.. assignments, notices of~ssignment,....transfers and assuraD.ce~asMortgag~es shall from time to time require in order to preserve the 'priority of the' lien of this Mortgage or to facilitate the performance of the terms hereof. PROVIDED, HOWEVER, that if Mortgagor shall pay to Mortgagees all such amounts as may from time to time remain outstanding and owing under the Reimbursement Agreement and the Loan Agreement together with interest as may accrue and upon the terms as provided therein, and together with all other sums advanced by Mortgagees, or either of them, to or on behalf of Mortgagor (including, without limitation, any disbursements made for the payment of taxes, levies and insurance related to the Mortgaged Property) or otherwise due from Mortgagor pursuant to the Reimbursement Agreement or Loan Agreement or this Mortgage, and shall perform all other covenants and conditions of the Reimbursement Agreement and Loan Agreement and this Mortgage, all of the terms of which are incorporated herein by reference as though set forth fully ~ 'Ii) ,.~ G:114184\22\MORT & SEe AGR(S) REDUNE 3 herein, and of any renewal, extension or modification thereof and of this Mortgage, then this Mortgage and the estate hereby created shall cease and terminate. In the event that the Bonds issued under the Indenture shall be discharged, directly or indirectly, through payments made by the Credit Facility Provider under the Letter of Credit, the rights and interest of the Indenture for the benefit of the holders or owners of such Bonds shall terminate and all such rights and interest shall automatically and without the need for assignment or other agreement shall inure to the benefit of the Credit Facility Provider, which shall be subrogated to the rights hereunder of the Trustee and the holders or owners of such Bonds. Mortgagor further covenants and agrees with Mortgagees as follows: 1. To pay all sums, including principal, interest and other charges, fees, costs, and expenses secured hereby when due, as provided for in the Reimbursement Agreement and the Loan Agreement and any renewal, extension or modification thereof and in this Mortgage, and in any documents or agreements entered into pursuant thereto, all such sums to be payable in lawful money of the United States of America as provided such documents. 4 2. To comply with all terms, conditions, warranties, and representations of the Reimbursement Agreement and the Loan Agreement and any documents and agreements executed or delivered by Mortgagor pursuant thereto. The terms of the Loan Agreement and the Reimbursement Agreement (the "Basic Documents") are specifically incorporated into and made a part of this Mortgage. Where a specific term of one Basic Document may be inconsistent with the term of another Basic Document or with the terms of this Mortgage, the more stringent requirement on the Mortgagor shall govern. 3. To promptly pay and discharge, or cause to be paid and discharged, all taxes, assessments and governmental charges or levies imposed upon the Mortgaged Property before the same shall become in default in accordance with the requirements of the Basic Documents. 4. To not remove or demolish any building, or other improvement now or hereafter erected on the Real Property,' ot alter thearr~ge;ll1ent, d.esign or.character thereof in any manner that is prohibited by the Reimbursement Agreement or the Loan Agreement. 5. If Mortgagor fails to keep the Mortgaged Property in repair, or shall commit or permit waste, or if there be commenced any action or proceeding affecting the Mortgaged Property or the title thereto, or the interest of Mortgagees therein, including, but not limited to, eminent domain (subject to the terms of the Indenture) and bankruptcy or reorganization proceedings, then Mortgagees, or either of them, at their or its option, may, but shall not be required to, make such repairs and take such reasonable steps as reasonably advisable-to prevent or cure such waste, and may appear in any such action or proceeding and retain counsel therein, and take such action therein as Mortgagees, or either of them, deem reasonably advisable, and for any of such purposes Mortgagees, or either of them, may, but shall not be required to, advance such sums of money, including all costs, reasonable attorney's fees and other items of expense as they deem necessary. ....'..) .L~~ G:\14184\22\MORT & SEe AGR(5) REDLlNE 4 6. Mortgagor will pay to Mortgagees, promptly and without demand, all sums of money advanced by Mortgagees, or either of them, to protect the security hereof pursuant to this Mortgage, including all costs, reasonable attorney's fees and other items of expense, together with interest on each such advancement at the greater of the default rate of interest provided by the Reimbursement Agreement or the Loan Agreement, and all such sums and interest thereon shall be secured hereby. 7. Upon the occurrence of an "Event of Default" as such term is used in the Reimbursement Agreement or the Loan Agreement, or upon Mortgagor's failure to perform any of its obligations, covenants or agreements hereunder beyond any applicable cure period, all of the indebtedness secured hereby shall become and be immediately due and payable at the option of Mortgagees, without demand, which is hereby expressly waived, but with such notice as may be required in the Reimbursement Agreement, the Indenture or the Loan Agreement, in which event Mortgagees may avail themselves of all rights and remedies, at law or in equity, and this Mortgage may be foreclosed with all rights and remedies afforded by the laws of Florida, and Mortgagor shall pay all costs, charges and expenses thereof, ip.cluding a reasonable attorney's fee, including all such costs, expenses and'attorney's fees for any retrial, rehearing or appeals. The indebtedness secured hereby shall bear interest at the greater of the rate for defaults set forth in the Reimbursement Agreement and the rate for defaults set forth in the Loan Agreement from and after the date of any such default of Mortgagor. 8. If there occurs an "Event of Default" as such term is used in the Reimbursement ~. ) Agreement, the Loan Agreement or the Indenture, or a failure to perform any of Mortgagor's obligations, covenants or agreements hereunder beyond any applicable cure period, in addition to other rights of Mortgagees at law or in equity or under the Basic Documents and to the extent penriitted by applicable law: (a) Mortgagees are authorized at any time, without notice, in their sole discretion, to enter upon and take possession of the Mortgaged Property or any part thereof, to perform any acts Mortgagees deem necessary or proper to conserve the security and to collect and receive allrents, issues-and profits thereof, including those past due'as well as those accruing thereafter; (b) Mortgagees are authorized to take or exercise all rights and remedies granted a secured party by the Florida Uniform Commercial Code; and (c) Mortgagees shall be entitled, as a matter of strict right, without notice and ex parte. and without regard to the value or occupancy of the security, or the solvency of Mortgagor, or the adequacy of the Mortgaged Property as security for the Reimbursement Agreement and the Loan Agreement, to have a receiver appointed to enter upon and take possession of the Mortgaged Property, collect the rents and profits therefrom and apply the same as the court may direct, such receiver to have all the rights and powers permitted under the laws of Florida. ) ,_./ G:\14184\22\MORT & SEe AGR(S) REDLlNE 5 -- , In any such case, Mortgagees or the receiver may also take possession of, and for these purposes use, any and all personal property which is a part of the Mortgaged Property and used by Mortgagor in the rental or leasing thereof or any part thereof. The expense (including receiver's fees, counsel fees, costs and agent's compensation) incurred pursuant to the powers herein contained shall be secured hereby. Mortgagees shall (after payment of all costs and expenses incurred) apply such rents, issues and profits as they may receive to the indebtedness secured hereby in such order as Mortgagees determine. The right to enter and take possession of the Mortgaged Property, to manage and operate the same, and to collect the rents, issues and profits thereof, whether by a receiver or otherwise, shall be cumulative to any other right or remedy hereunder or afforded by law, and may be exercised concurrently therewith or independently thereof. Mortgagees shall be liable to account only for such rents, issues and profits actually received by Mortgagees. The foregoing rights are in addition to any rights provided under.law, including but not limited to the rights of a mortgagee under Florida Statutes Section 697.07. 9. If the indebtedness secured hereby is now or hereafter further secured by chattel mortgages, security interests, financing statements, pledges, contracts of guaranty, assignments of leases, or other securities, or if the Mortgaged Property hereby encumbered consists of more than one parcel of real property, Mortgagees may at their option exhaust anyone or more of said securities and security hereunder, or such parcels or portions of the security hereunder, either concurrently or independently, and in such order as they may determine. l;~>':'l:~'i ) 10. No delay by Mortgagees, or either of them, in exercising any right or remedy hereunder, or otherwise afforded by law, shall operate as a waiver thereof or preclude the exercise thereof during the continuance of any default hereunder. No waiver by Mortgagees, or either of them, of any default shall constitute a waiver of or consent to subsequent defaults. No failure of Mortgagees, or either of them, to exercise any option herein given to accelerate maturity of the debt hereby secured, no forbearance by Mortgagees, or either of them, before or after the exercise of such option and no withdrawal or abandonment of foreclosure. proceedings by Mortgagees, or either of them, shall be taken or. cons~ed. as ~ waiver . ~f their ,or its right to exercise such option or to accelerate the.maturity of the debt hereby secured by reasori of any past, present or future default on the part of Mortgagor; and, in like manner, the procurement of insurance or the payment of taxes or other liens or charges by Mortgagees, or either of them, shall not be taken or construed as a waiver of their or its right to accelerate the maturity of the debt hereby secured. 11. Without affecting the liability of Mortgagor or any other person (except any person expressly released in writing) for payment of any indebtedness secured hereby or for performance of any obligation contained herein, and without affecting the rights of Mortgagees with respect to any security not expressly released in writing, Mortgagees may, at any time and from time to time, either before or after the maturity date of this Mortgage, and without notice or consent: G:\14184\22\MORT & SEe AGR(5) REDUNE 6 (a) Release any person liable for payment of all or any part of the indebtedness or for performance of any obligation; (b) Make any agreement extending the time or otherwise altering the terms of payment of all or any part of the indebtedness, or modifying or waiving any obligation, or subordinating, modifying or otherwise dealing with the lien or charge hereof; (c) Exercise or refrain from exercising or waive any right Mortgagees may have; (d) Accept additional security of any kind; and (e) Release or otherwise deal with any property, real or personal, securing the indebtedness, including all or any part of the Mortgaged Property. 12. Any agreement hereafter made by Mortgagor and Mortgagees pursuant to this Mortgage, including, without limitation, any amendment hereof or supplement hereto, shall be superior to the rights of the holder of any intervening lien or encumbrance. 13. Mortgagor hereby waives all right of homestead exemption, if any, ill the Mortgaged Property. .lii:'!>! ) 14. In the event of condemnation proceedings of the Mortgaged Property or the payment of insurance proceeds, the award or compensation payable thereunder shall be applied in accordance with the terms of the Reimbursement Agreement. In any such condemnation proceedings, Mortgagees may be represented by counsel selected by Mortgagees. 15. Notwithstanding anything contained in the Indenture, the Loan Agreement, this Mortgage, the Reimbursement Agreement or other documents executed and delivered in connection therewith to the contrary, so long as either (a) the Letter of Credit is in existence and secures the Bonds, and so long as the.Credit Facility Provid~rhas not wrongfully dishonored a draw request thereunder, or. (b) any .amount. t~mains .unpaid linder the Note, then in either case, the Credit Facility Provider ~ without any participation by the Trustee, shall have the sole right to render any consents or approvals required or permitted hereby and exercise or accept the benefits ..of any of the rights or remedies hereunder, and the Trustee shall not, without the prior written consent of the Credit Facility Provider, exercise or accept the benefits and any of the rights or . remedies provided in this Mortgage, it being understood that this covenant shall be binding on all successors and assigns of the Trustee. This provision is for the benefit of the Credit Facility Provider and not the Mortgagor. In the event that all amounts as may from time to time have become outstanding and owing under the Note and the Reimbursement Agreement, together with interest as may have accrued and upon the terms as provided therein, and all other sums advanced by the Credit Facility Provider ii:) "~k -: 11'... ->"-D G:\14184\22\MORT & SEe AGR(S) REDLlNE 7 to or on behalf of Mortgagor or otherwise due from Mortgagor to the Credit Facility Provider pursuant to the Reimbursement Agreement or this Mortgage shall have been paid in full and no other amounts shall be outstanding thereunder, and the term of the Letter of Credit and the Reimbursement Agreement shall have expired or been terminated and the Mortgagor shall perform all other covenants and conditions of the Reimbursement Agreement, the rights and interest of the Credit Facility Provider hereunder shall terminate, and all such rights and interest shall automatically and without the need for assignment or other agreement inure to the benefit of the Trustee~ 16. The obligations represented by this Mortgage, the Loan Agreement and the Reimbursement Agreement are personal to the Mortgagor, and the Mortgagees have entered into such documents based in large part upon the credit of the Mortgagor and the Mortgagees I judgment of the ability of the Mortgagor to repay all sums due under this Mortgage and such other documents, and therefore this Mortgage may not be assumed by any subsequent holder of an interest in the Mortgaged Property. All amounts payable by the Mortgagor to the Mortgagees pursuant to the Note, the Reimbursement Agreement and the Loan Agreement, shall be due and payable upon any sale, tr':lnsfer or conveyance of the Mortgaged Property, or abandonment of the use of the Mortgaged Property for a period exceeding thirty (30) days by the Mortgagor, unless otherwise expressly agreed to in writing by the Mortgagees. J,:i;r,,-, ) 17. In the event anyone or more of the provisions contained in this Mortgage, the Reimbursement. Agreement, the Loan Agreement, or the other Basic Documents shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall, at the option of the Mortgagees, not affect any other provision of this Mortgage, but this Mortgage shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein or therein. The total interest payable pursuant to the Note, the Reimbursement Agreement and the Loan Agreement, the other Basic Documents or this Mortgage shall not in anyone year exceed the highest lawful rate of interest permitted in the State of Florida. 18. If the Credit Facility PrQvider or the riustee shall foreclose the Mortgage or shall accept an assignment of all or part of the Lease in lieu of foreclosure, the Borrower shall fully cooperate with the Credit Facility Provider and the Trustee in connection with the assignment of all necessary licenses, permits and approvals for the operation. of the Mortgaged Property to the Credit Facility Provider and the Trustee or their nominee and shall execute such documents as are reasonably requested by the Credit Facility Provider or the Trustee to carry out the intent of this paragraph. 19. The covenants and agreements herein contained shall bind and the benefits and advantages shall inure to the respective heirs, executors, administrators, successors, and assigns of the parties hereto. Wherever used, the singular number shall include the plural, the plural the singular, and the use of any gender shall be applicable to ail genders. All covenants, agreements and undertakings shall be joint and several. In the event additional numbered covenants or G:1l4184\22\MORT & SEe AGR(5) REDLINE 8 ~ ,:,~j:(,' . ".- .t. ~." '", :-,."!-- paragraphs are for convenience inserted in this Mortgage, such additional covenants shall be read and given effect as though following this covenant in consecutive order. 20. The interest of the Issuer herein is being assigned to the Trustee pursuant to the Indenture. The Corporation and the Credit Facility Provider consent to that assignment. IN WITNESS WHEREOF, Mortgagor has duly executed this Mortgage as of the date fIrst above written. CHI CHI RODRIGUEZ YOUTH FOUNDATION, INC. (SEAL) By: -~ -" Name: Polly Bateman Title: Executive Vice-President ATTEST: ~ t. eea~ Name: Lee E. laney Title: Director of Administration ) ss. COUNTY OF PINELLAS ) STATE OF FLORIDA The foregoing instrument was acknowledged before me this 5th day of August, 1998, by Polly Bateman and Lee E. Clancy of Chi Chi Rodriguez Youth Foundation, Inc., a Florida not-for-profit corporation, on beh~lf of the corpo~atio.n. They are personally known to me. (NOTARY SEAL) ,..UtI, $.';~"'l~ MARK E. RAYMOND ~ . :*~ MY COMMISSION' CC 692991 ~ EXPIRES: February 18. 2002 ... . Bonded llnu Nobuy PIJbIIc lInderwlll8r8 G:\14184\22\MORT & SEe AGR(S) REDLlNE 9 Exhibit A City of Clearwater property on the west side of McMullen Booth Road and North of State Road 580 in Section 20, Township 28 South, Range 16 East and Section 21, Township 28 South, Range 16 East being further described as follows: ~ ':C) PARCEL TWO A parcel of land in Section 20, Township 28 South, Range 16 East, Pinellas County, Florida and,being-more particularly described as follows: Th~ North 1/2 of the Northeast 1/4 of the Southeast 1/4 of said Section 20, and The North 3/4 of the South 1/2' of the Northeast 1/4 of the Southeast 1/4 of said Section 20. and Commence at the East 1/4 corner of said Section 20j thence South 89 deg 54'58M West,' along the East-West Centerline of said Section 20, 495.47 feet to the Point of Beginning; thence continue South 89 deg 54'58M West along said"line 838.64 feet to the Northwest corner of the Northeast 1/4 of the Southeast 1/4 of said Section 20; thence South 00 deg 00'16M West" along the West line of said Northeast 1/4 of the Southeast 1/4, 1,221.50 feet; thence leaving said line South 89 deg 50'51" West, 370.01 feetj thence N6rth 00 deg 00'16" East 635.80 feet to a point of curve; thence along the arc 'of a curve to the right, radius 950.00 feet, arc 1,361.59 feet, chord North 41 deg 03'51" East, 1',248.01 feet to a point"of reverse curvej thence along the arc of "a curve to the left, radius 1,050.00 feet, arc 170.34 feet, chord North 77 deg 28'35M.East 170.16 feet to a point on curve; thence leaving said curve South 19 deg 21'16" East 240.76 feet to a point of curve; thence along the arc of a curve to the left radius' 290.00 feet, arc 222.05 feet, chord South 41 deg 17'23M East 216.67 feet to the Point of Beginning. LESS AND EXCEPTING the Southerly 50.4 feet more or less, platted in Eagle Estates as.recorded in Plat Book 74, Pages 40 and 41 of the Public Records of Pinellas County, Flcirida. Also Less and" Excepting an 80 foot drainage, utility and right-of-way ~~sement described as follows: . Begin at the Northeast corner of the South~ast 1/4 of said Section 20, thence South 00 deg 01'19" West, along the East line of the North~ast 1/4 of the Southeast 1/4 of said Section 20, 80.00 feet; thence North 82 deg 49'46" West 404.16 feet 'to a point of curvature of a curve to the right; thence along the arc of said curve, ~adius 290.00 feet, arc ~9.~3 feet, chord bearing North 73 deg 01'37M West,'chord 98.74 feet to a point on the North line of the Northeast 1/4 of the Southeast 1/4 of said Section '20; thence North 89 deg 54'58M East, along said North line, 495.47 feet to the Point of Beginning. ;ff}'\ ~itl~~ Page 1 of 3 pages Exhibit A PARCEL THREE . A parcel of land in Section 21, Township 28 South, Range 16 East, Pinellas County, Florida, and being more particularly described as follows: ' The West 1/2 of the Southwest 1/4 of said Section 21, LESS AND EXCEPTING an 80 foot drainage, utility and right-of-way easement lying in the North 80 fee~ of the West 1/2 of the Sou~hwest 1/4 of said Section 21, Also LESS AND EXCEPTING the Easterly 100 feet for proposed right-of-way of McMullen Booth Road. Also Less and Excepting the Westerly 101 feet 'of the Easterly 201 feet of the Southerly 121 feet of the West 1/2 of the,Southwest 1/4 of said Section 21. Also LESS. AND EXCEPTING the Westerly 580 feet of the Easterly, 680 feet of the Northerly 930 feet of the West 1/2 of the Southwest '1/4 of said Section 21. .~.";;" : ~- , ~ PARCEL FOUR Commencing at the Southeast corner of Sectiqn 20, Township 28 South, Range 16 East Pinellas County, Florida, run North 0 deg 01 '19" East 334.26 feet for a Point of Beginning; thence South 89 deg 46'45" West, 1,333.40 feet; thence South 0 deg 00!16" West, 395.46 fee~; thence 811.50 feet :along the arc of a curve to the right, radius 100.00 feet, chord'North 33 deg 12'24" West, 766.82 feet; thence 'North' O'deg 00'16- East 87.10 feet; thence North 89 deg 47'55" East, 1,753:51 feet; thence South 0 deg 01 '19" West 334.26 feet to the Point of Beginning, LESS AND EXCEPTING that portion dedicated as right-of-way for Landmark Drive on the plat of Landmark Woods 2nd Addition recorded In Plat Book 77, Pages 29, 30 and 31 Public Records of PInellas County, Florida. LESS :J; ~J " A portion. of the tract, as record~d in Official Record Book 4151, Page 1800, Public Records Pinellas County, . Florida in Section 21, Township 28 South, Range 16 East, Pinellas ~ounty, Florida, being described as follows: Commencing at the Center of said Section.21, run N 89023'18"W along the North line of the Northeast 1/4 of the Southwest 1/4 of said Section 21, for a distance of 1,342.69 feet to the Northwest corner of aforesaid Northeast 1/4 of the Southwest. 1/4 of Section 21; thence continue N 89023'18"W along the North line of the, Northwest 1/4 of said Southwest 1/4 of Section 21, for a distance of 50.00 feet to the POINT OF BEGINNING; thence S 00004'31"E along a line being 50 feet ~est of and parallel with the West line of the Page 2 of 3 pages Exhibit A .If' "\ ) East 1/2 of the Southwest 1/4 of said Section 2~, the same being the Westerly right-of way line of McMullen-Booth Road, for a distance of 2,672.26 feet to a point on the South line of said Section 21; thence N 89031'23uW along said South line, for a distance of 17.37 feet; thence N 01029'20E, for a distance of 240.21 feet to a Point on Curve, aradial.of said point being N 88041'30uE; thence nor~hwardly, 270.53 feet along the arc of a curve, concave to the West, having a radius of 11,359.16 feet, through a central angle of 01021'52u, a chord be4ring N 01059'26uW, 270.52 feet, to a Point of Tangency; thence N 02040'23uW, for a distance of 403.12 feet to a Point of Curvaty:re; thenc~ northwardly, 524.05 feet along the'arcofa curve, concave to the East, having a radius of 11,559.16 feet, through a central angle of 02035'51, a chord bearing N 01022'27uW, 524.0p feet to a Point of Tangency; thence N 00004'31uW along a line being 100 feet west of and parallel with aforesaid West line of the East 1/2 of the Southwest 1/4 of Section 21, for a distance of 1,235.63 feet to a point on aforesaid North line of the Northwest 1/4 of Southwest 1/4 of Section 21; thence S 89023'18uE along said North line, for a distance of 50.00 feet to the POINT OF BEGINNING. ., ) ;r{; '. J!L.. Page 3 of 3 pages PREPARED BY AND RETURN TO: MARK E. RAYMOND Moyle, Flanigan, Katz, KoUns, Raymond & Sheehan, P.A. P.O. Box 3888 West Palm Beach, FL 33402 SATISFACTION OF MORTGAGE AND TERMINA TION OF OTHER DOC1JMENTS This Satisfaction of Mortgage. and Termination of Other Documents is dated as of August 1, 1998 and is made by NationsBank, N;A. (formerly known as "NCNB National Bank of Florida" and as "NationsBank, N.A. (South)" (the "Bank"). The Bank hereby terminates, releases, satisfies and acknowledges discharge of the following documents: 1. Leasehold Mortgage and Security Agreement dated May 28, 1992 from The Chi CW Rodriguez, Youth Foundation, Inc. and recorded in Official Records Book 7922, Page 107, et. seq., Public Records of PinelIas County, Florida; ~) 2. Modification to Mortgage and Notice of Future Advance, dated July 26, 1996, from Chi Chi Rodriguez Youth Foundation, Inc. and recorded in Official Records Book 9418, Page 2025, et. seq., Public Records of PinelIas County, Florida and re-recorded in Official Records Book 9428, Page 1206, et. seq., Public Records of Pine lIas County, Florida and re-recorded in Official Records Book 9433, Page 908, et. seq., Public Records of Pinellas County, Florida; 3. Assignment of Lessor's Interest in Leases, Rents and Profits, dated May 28, 1992, from Chi Chi Rodriguez Youth Foundation, Inc., recorded in Official Records Book 7922, Page 122, et. seq., Public Records of Pinellas County, Florida; 4. Modification of Assignment of Lessor's Interest in Leases, Rents and Profits, dated July 26, 1996 made by CW Chi Rodriguez Youth Foundation, Inc. and recorded in Official Records Book.9418, Page 2029, et. seq., Public Records of Pinellas County, Florida and re- recorded in Official Records Book 9428, Page 1210, et. seq., Public Records of Pinellas County, Florida; and W.r:..: ......it... :f". ~ i J i,)',' i. 5. UCC-l Financing Statement recorded in Official Records Book 7922, Page 126, Public Records of Pinellas County, Florida. NATIONSBANK, N.A. By: ~/~ Its: Vice-President STATE OF FLORIDA ) COUNTY OF PALM BEACH ) The foregoing instrument was acknowledged before me this 5th day of August, 1998, by Edmund O'Carroll, as Vice-President of NationsBank, N.A., a Florida corporation, on behalf of the corporation, and he is personally known to me. $l~ Notary blic ~ /' (NOTARY STAMP) ......... MARK E RAYMOND ~..~~".r~,$'.. . N'oQ,O'::-: MY COMMISSION' CC 692991 ;,,~~~~~":.i EXPIRES: February 18, 2002 "'~p.r..r..~;,., Bonded ThRl Notary PubIc lbIerwIIl8la G:\14184\22\sa1isfal:tlon of mtgo wpd 2