Common use of Security Instrument Clause in Contracts

Security Instrument. If Lessor becomes the grantor under a security instrument or a deed of trust securing the payment of a promissory note of Lessee to an approved lender to assist with the financing of a transaction (that will benefit Lessor and Lessee) evidencing a lien on up to 100 acres of the Property (“Security Instrument”), Lessee will pay Lessor an annual fee, due on January 2 of each year, as follows: * January 2, 2012 No fee payable; * January 2, 2013 $800.00 per acre of the Leased Premises under the Security Instrument; * January 2, 2014 $600.00 per acre of the Leased Premises under the Security Instrument; * January 2, 2015 $400.00 per acre of the Leased Premises under the Security Instrument; * January 2, 2016 $200.00 per acre of the Leased Premises under the Security Instrument. (herein called “Security Instrument Payments”). Lessee hereby agrees to have the Security Instrument released on or before January 2, 2016, and Lessee shall deliver to Lessor a release in recordable form that is reasonably acceptable in form and substance to Lessor and thereby relinquishes all rights Lessee’s lender has in the above-referenced 100 acres. Notwithstanding the foregoing, in the event the Security Instrument is released at any time prior to January 2, 2016, Lessee’s obligation to make Security Interest Payments pursuant to this Section 28 shall cease as of the date of such release, provided that if the Security Instrument is released during a partial year, the applicable Security Instrument Payment shall be prorated and paid to Lessor within ten (10) days of the Release of the Security Instrument. Lessee agrees to indemnify and, within five (5) business days after demand by Lessor, reimburse Lessor for all amounts expended or debts incurred by Lessor as a result of Lessor’s undertaking to cure any defaults under the Security Instrument or under the debt secured by the Security Instrument, to protect Lessor’s interests in the Property. On or before April 14, 2012, Lessor shall cause any and all mortgages, liens, pledges, charges, security interests of any kind or character against the Leased Premises in favor of any holder of indebtedness for borrowed money, other than PlainsCapital Bank, (collectively, the “Lessor Lender Encumbrances”) to be (i) unconditionally released; or (ii) expressly subordinated to those mortgages, liens, pledges, charges, security interests of any kind or character against the Leased Premises in favor of PlainsCapital Bank pursuant to the Security Instrument and/or any loan documents executed in connection therewith (collectively, the “Lessee Lender Encumbrances”) in accordance with the terms of a subordination agreement, or, alternatively, pursuant to the terms of a non-disturbance agreement, in form and substance reasonably acceptable to PlainsCapital Bank and Lessee. On or prior to April 14, 2012, Lessor shall deliver to Lessee evidence of any such release or subordination in form and substance reasonably acceptable to PlainsCapital Bank and Lessee.

Security Instrument. If Section 28 to the Lease Agreement is hereby deleted in its entirety and replaced with the following: As long as Lessor becomes is the grantor under a security instrument or a deed of trust securing the payment of a promissory note of Lessee to an approved lender to assist that is assisting with the financing of a transaction (that will benefit Lessor and Lessee) evidencing a lien on up to 100 approximately 150 acres of the Property in Hood County, Texas as shown in Exhibit “C” (“Security Instrument”), Lessee will pay Lessor an annual fee, due on January 2 of each year, as follows: * • January 2, 2012 No fee payable; * • January 2, 2013 $800.00 per acre of the Leased Premises under the Security Instrument; * • January 2, 2014 $800.00 per acre of the Leased Premises under the Security Instrument; • January 2, 2015 $600.00 per acre of the Leased Premises under the Security Instrument; * and • January 2, 2015 2016 $600.00 per acre of the Leased Premises under the Security Instrument; • January 2, 2017 $400.00 per acre of the Leased Premises under the Security Instrument; * and • January 2, 2016 2018 $200.00 per acre of the Leased Premises under the Security Instrument. Instrument (herein called “Security Instrument Payments”). Lessee hereby agrees to have the Security Instrument released on or before January 2December 28, 2016, 2018; and Lessee shall deliver to Lessor a release in recordable form that is reasonably acceptable in form and substance to Lessor and thereby relinquishes all rights Lessee’s lender has in the above-referenced 100 150 acres. Notwithstanding the foregoing, in the event the Security Instrument is released at any time prior to January 2December 28, 20162018, Lessee’s obligation to make Security Interest Payments pursuant to this Section 28 shall cease as of the date of such release, provided that if the Security Instrument is released during a partial year, the applicable Security Instrument Payment shall be prorated and paid to Lessor within ten (10) days of the Release of the Security Instrument. Lessee agrees to indemnify and, within five (5) business days after demand by Lessor, reimburse Lessor for all amounts expended or debts incurred by Lessor as a result of Lessor’s undertaking to cure any defaults under the Security Instrument or under the debt secured by the Security Instrument, to protect Lessor’s interests in the Property. On or before April 14, 2012, Lessor shall cause any and all mortgages, liens, pledges, charges, security interests of any kind or character against the Leased Premises in favor of any holder of indebtedness for borrowed money, other than PlainsCapital Bank, (collectively, the “Lessor Lender Encumbrances”) to be (i) unconditionally released; or (ii) expressly subordinated to those mortgages, liens, pledges, charges, security interests of any kind or character against the Leased Premises in favor of PlainsCapital Bank pursuant to the Security Instrument and/or any loan documents executed in connection therewith (collectively, the “Lessee Lender Encumbrances”) in accordance with the terms of a subordination agreement, or, alternatively, pursuant to the terms of a non-disturbance agreement, in form and substance reasonably acceptable to PlainsCapital Bank and Lessee. On or prior to April 14, 2012, Lessor shall deliver to Lessee evidence of any such release or subordination in form and substance reasonably acceptable to PlainsCapital Bank and Lessee.

Security Instrument. If As long as Lessor becomes is the grantor under a security instrument or a deed of trust securing the payment of a promissory note of Lessee to an approved lender to assist that is assisting with the financing of a transaction (that will benefit Lessor and Lessee) evidencing a lien on up to 100 approximately 150 acres of the Property in Hood County, Texas as shown in Exhibit “C” (“Security Instrument”), Lessee will pay Lessor an annual fee, due on January 2 of each year, as follows: * January 2, 2012 No fee payable; * January 2, 2013 $800.00 per acre of the Leased Premises under the Security Instrument; * January 2, 2014 $600.00 800.00 per acre of the Leased Premises under the Security Instrument; * January 2, 2015 $400.00 800.00 per acre of the Leased Premises under the Security Instrument; and * January 2, 2016 $200.00 800.00 per acre of the Leased Premises under the Security Instrument. ; and * January 2, 2017 $800.00 per acre of the Leased Premises under the Security Instrument * January 2, 2018 $800.00 per acre of the Leased Premises under the Security Instrument * January 2, 2019 $800.00 per acre of the Leased Premises under the Security Instrument (herein called “Security Instrument Payments”). Lessee hereby agrees to have the Security Instrument released on or before January 2July 13, 2016, 2019; and Lessee shall deliver to Lessor a release in recordable form that is reasonably acceptable in form and substance to Lessor and thereby relinquishes all rights Lessee’s lender has in the above-referenced 100 150 acres. Notwithstanding the foregoing, in the event the Security Instrument is released at any time prior to January 2July 13, 20162019, Lessee’s obligation to make Security Interest Payments pursuant to this Section 28 shall cease as of the date of such release, provided that if the Security Instrument is released during a partial year, the applicable Security Instrument Payment shall be prorated and paid to Lessor within ten (10) days of the Release of the Security Instrument. Lessee agrees to indemnify and, within five (5) business days after demand by Lessor, reimburse Lessor for all amounts expended or debts incurred by Lessor as a result of Lessor’s undertaking to cure any defaults under the Security Instrument or under the debt secured by the Security Instrument, to protect Lessor’s interests in the Property. On or before April 14, 2012, Lessor shall cause any and all mortgages, liens, pledges, charges, security interests of any kind or character against the Leased Premises in favor of any holder of indebtedness for borrowed money, other than PlainsCapital Bank, (collectively, the “Lessor Lender Encumbrances”) to be (i) unconditionally released; or (ii) expressly subordinated to those mortgages, liens, pledges, charges, security interests of any kind or character against the Leased Premises in favor of PlainsCapital Bank pursuant to the Security Instrument and/or any loan documents executed in connection therewith (collectively, the “Lessee Lender Encumbrances”) in accordance with the terms of a subordination agreement, or, alternatively, pursuant to the terms of a non-disturbance agreement, in form and substance reasonably acceptable to PlainsCapital Bank and Lessee. On or prior to April 14, 2012, Lessor shall deliver to Lessee evidence of any such release or subordination in form and substance reasonably acceptable to PlainsCapital Bank and Lessee.