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+ incurre~ce as used in the preceding aentence shall be conatrued
to include any extension and•renew~l of fund~d debt.
c. The mortgagor represents that its stockholder's equity (total
assets less total liabilities) is not less Chan $604,000.00
on the date hereof, and agrees to improve its stockholder's
equiCy at the rate of at least $50,000.00 per year until ;
such time that stockholder's equity reaches $1,000,000.00. ;
! Thereafter, mortgagor agrees to maintain its stockholder's
' equity at•a level of not less than $1,000,000.00 at all
times prior to the payment in full of the indebtedness secured
~ hereby. In the event that mortgagor issues additional stock
1 during the term hereof, said stockholder's equity shall be ~ '
i increased on a pro-rata basis with the issuance of such
~ additional stock.
E d. Other than the indebtedness secured by this mortgage, mortgagor
~ ~ ahall not incu'r any funded debt as the same is defined in sub-
paragraph b. above without the prior written approval of the
mortgagee, provided that in the event of future acquisitions
~ of assets which are not to be included in the property se.cured
hereby, funded debt which daes not exceed 75y. of the actual
; cost of such assets may be incurred by the mortgagor. During
the term.hereof, the mortgagor may incur short-term debts
(debts payable within three (3) years) in'the ordinary course
of n?ortgagor's busiaess, unsecured, or secured by accounts
~ receivable and inventories.
• e. In operating the property secured hereby as a citrua processing
plant, the mortgagor shall be permitted to engage in the practice
of "hedging" as conmmonly practiced in the citrus processing
industry. Mortgagor shall not at anq time engage in specula-
tion of any tqpe.
~
~ f. Mortgagor shall, at all~times prior to the payment in full
of the indebtedness secured hereby, remain a corporation duly ~
incorporated and validly existing in good standing under the
laws of the State of Florida aind mortgagor shall not enter
into a merger or consolidation agreement with any other coY-
~
; . poration, forefgn or domestic, without the prior written
~ consent of the mortgagee. Additionallq, at all times during
~ the term hereof, fifty-one percent (51X) or more, in the ~
; aggregate, of the ownership of the voting stock of the ~
; mortgagor shall be held by Edwin Andrews, Richard E. Becker,
~ John J. Bricker, and Richard Ordway, or any combination of the
aame, and such ownership shall not be transferred to other
' individuals or entities at any time during the term of this
mortgage.
~ 20.Mort or sha11 furnish to mart ee as o
888 gag so n as practicable after
~ the end of each fiscal year, and, in any event, within ninety (90) days
? thereafter, an audited financial statement prepared and certified, at
mortgagor's expense, by an independent certified public accountant selected by
mortgagor who is a member of the American Institute of Public Accountants
together with a certificate from such accountant stating that he is familiar with
the financial provisions of this mortgage and whether or not his examination has
disclosed the existence of any default hereunder, specifying the nature and
period of anq default which he has discovered. The mortgagee and its repres-
entatives shall have the right to inspect all books of account relating to the
snortgaged premises (and to make copies or extracts therefrom) and to cause such
books to be audited by such independent public accountants selected by the
mortgagee, as often as may be reasonably requested, provided however, that
such inspectiun and audit shall be at the mortgagee's expense. The mortgagor
sha21 promptly forward internal weekly or monthly profit and loss sheets to
the mortgagee whenever requested by the mortgagee.
,
~ 21. This mortgage is personal to the mortgagor herein, and no sale, lease,
, eneumbrance, or other transfer or corneyance shall be made by mortgagor of the
property or premises herein descri.bed or any part thereof without first obtaining
t the prior written consent of the mortgagee. In the event mortgagee gives this
; written consent in a sale transaction, the grantee named in the conveyance shall
assume and agree to pay the obligation evidenced by the promissory note secured
~ hereby. Any conveyance of the property herein described or any part t~ereof in
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~ -4- n R 7 ~ 1938
gG~K s..1 Pl:~c
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