Mortgage

We have a mortgage loan with German American Capital Corporation and Wells Fargo Bank, which had a ten year initial term. On March 24, 2016, we extended and amended our mortgage loan, with the Seventeenth Amendment. The mortgage is secured by substantially all of the Company’s owned distribution facilities.

The Seventeenth Amendment extended the maturity of the mortgage to July 1, 2019, subject to a $60.0 million principal payment due no later than July 1, 2017, and a $55.0 million principal payment due no later than July 1, 2018. Except as otherwise permitted in the Seventeenth Amendment, the proceeds from any owned properties sold by us must be used to pay mortgage principal, and these proceeds will be included in the aforementioned principal payments. The mortgage requires monthly interest-only payments at an interest rate of 6.35%. Subject to certain exceptions, as defined in the Seventeenth Amendment, the net proceeds from any owned properties sold by us must exceed certain minimum release prices (unless otherwise agreed to by the lender) and be used to pay mortgage principal. As a condition to the amendment to the mortgage agreement, the lender under the mortgage loan received a first priority pledge of the equity in the Company’s subsidiaries which hold the real property that secures the mortgage loan.

The previously required cash collateral account is no longer required by the amended mortgage terms, and the lender committed to return the $3.1 million remaining account balance to us promptly after March 24, 2016.



	Principal Payments
	(In thousands)
2016	$	637
2017	60,000
2018	55,000
2019	52,563
Total	$	168,200