Guaranty by C. Preston Butcher



 Exhibit 10.16 
 Freddie Mac Loan Number: 534384196 
 Dakota Hill at Valley Ranch Apartments

 GUARANTY 
 MULTISTATE 
 (for use in all Property jurisdictions except California)

 REVISION DATE 05/06/05 
 This Guaranty (“Guaranty”) is entered into to be effective as of October 26, 2010, by the undersigned person(s) (the “Guarantor” jointly and severally if more than
one), for the benefit of FEDERAL HOME LOAN MORTGAGE CORPORATION (the “Lender”). 
 RECITALS 

A.         DAKOTA HILL PROPERTIES, A TEXAS LIMITED PARTNERSHIP, a Texas limited partnership (the
“Original Borrower”), previously obtained a loan from CBRE Capital Markets, Inc. (“Original Lender”) in the amount of $23,475,000.00 (the “Loan”). The Loan was evidenced by a Multifamily Note from
Original Borrower to Original Lender dated February 1, 2010 (the “Note”). The Note was secured by a Multifamily Deed of Trust, Assignment of Rents and Security Agreement and Fixture Filing dated the same date as the Note (the
“Security Instrument”), encumbering the real property described in the Security Instrument (the “Mortgaged Property”). The Original Lender sold the Note, assigned its rights in the Security Instrument and
transferred the Loan to Lender, which is now the holder of the Note and the owner of the Loan. 
 B.
        As a condition to allowing the Original Borrower to transfer the Mortgaged Property to KBS LEGACY PARTNERS DAKOTA HILL LLC, a Delaware limited liability company (the “New Borrower”),
and to allow New Borrower to assume the Loan, Lender has required that C. PRESTON BUTCHER, Individually, and C. PRESTON BUTCHER, as Trustee of the Preston Butcher Legacy Partners Business Assets Revocable Trust under declaration of trust dated
May 12, 2003, execute this Guaranty. 
 C.         All references to Borrower in this Guaranty will
be deemed to refer to the New Borrower. 
 NOW, THEREFORE, to induce Lender to consent to the transfer of the Mortgaged Property
to Borrower, and in consideration thereof, Guarantor agrees as follows: 
 1.     Defined Terms.
“Indebtedness,” “Loan Documents” and “Property Jurisdiction” and other capitalized terms used but not defined in this Guaranty shall have the meanings assigned to them in the Security Instrument.

 2.     Scope of Guaranty. 

(a)  Guarantor hereby absolutely, unconditionally and irrevocably guarantees to Lender: 

 

	 	(i)	the full and prompt payment when due, whether at the Maturity Date or earlier, by reason of acceleration or otherwise, and at all times thereafter, of each of the
following: 


  
  

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	 	(A)	a portion of the Indebtedness equal to zero percent (0%) of the original principal balance of the Note (the “Base Guaranty”); and



	 	(B)	in addition to the Base Guaranty, all other amounts for which Borrower is personally liable under Sections 9(c), 9(d) and 9(f) of the Note; and



	 	(C)	all costs and expenses, including reasonable Attorneys’ Fees and Costs incurred by Lender in enforcing its rights under this Guaranty; and


  

	 	(ii)	the full and prompt payment and performance when due of all of Borrower’s obligations under Section 18 of the Security Instrument. 


(b)  In addition to the Base Guaranty, all other amounts for which Borrower is personally liable under Sections 9(c) through
(f) of the Note; and 
 If the Base Guaranty stated in Section 2(a)(i)(A) is less than 100 percent of the original
principal balance of the Note, then this Section 2(b) shall be completely inapplicable and shall be treated as if not a part of this Guaranty. 
 (c)  If Guarantor is not liable for the entire Indebtedness, then all payments made by Borrower with respect to the Indebtedness and all amounts received by Lender from the enforcement of its rights
under the Security Instrument and the other Loan Documents (except this Guaranty) shall be applied first to the portion of the Indebtedness for which neither Borrower nor Guarantor has personal liability. 

3.     Additional Guaranty Relating to Bankruptcy. 

(a)  Notwithstanding any limitation on liability provided for elsewhere in this Guaranty, Guarantor hereby absolutely,
unconditionally and irrevocably guarantees to Lender the full and prompt payment when due, whether at the Maturity Date or earlier, by reason of acceleration or otherwise, and at all times thereafter, the entire Indebtedness, in the event that:

  

	 	(i)	Borrower voluntarily files for bankruptcy protection under the United States Bankruptcy Code; or 


	 	(ii)	Borrower voluntarily becomes subject to any reorganization, receivership, insolvency proceeding, or other similar proceeding pursuant to any other federal or state law
affecting debtor and creditor rights; or 


	 	(iii)	an order of relief is entered against Borrower pursuant to the United States Bankruptcy Code or other federal or state law affecting debtor and creditor rights in any
involuntary bankruptcy proceeding initiated or joined in by a “Related Party.” 

 (b)  For
purposes of this Section, the term “Related Party” means: 
  

	 	(i)	Borrower or Guarantor; and 


	 	(ii)	any person or entity that holds, directly or indirectly, any ownership interest in or right to manage Borrower or Guarantor, including without limitation, any
shareholder, member or partner of Borrower or Guarantor; and 


  
  

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	 	(iii)	any person or entity in which any ownership interest (direct or indirect) or right to manage is held by Borrower, Guarantor or any partner, shareholder or member of, or
any other person or entity holding an interest in, Borrower or Guarantor; and 


	 	(iv)	any other creditor of Borrower that is related by blood, marriage or adoption to Borrower, Guarantor or any partner, shareholder or member of, or any other person or
entity holding an interest in, Borrower or Guarantor. 

 (c)  If Borrower, Guarantor or any Related Party has
solicited creditors to initiate or participate in any proceeding referred to in this Section, regardless of whether any of the creditors solicited actually initiates or participates in the proceeding, then such proceeding shall be considered as
having been initiated by a Related Party. 
 4.     Guarantor’s Obligations Survive Foreclosure.
The obligations of Guarantor under this Guaranty shall survive any foreclosure proceeding, any foreclosure sale, any delivery of any deed in lieu of foreclosure, and any release of record of the Security Instrument, and, in addition, the
obligations of Guarantor relating to Borrower’s obligations under Section 18 of the Security Instrument shall survive any repayment or discharge of the Indebtedness. Notwithstanding the foregoing, if Lender has never been a
mortgagee-in-possession of or held title to the Mortgaged Property, Guarantor shall have no obligation under this Guaranty relating to Borrower’s obligations under Section 18 of the Security Instrument after the date of the release of
record of the lien of the Security Instrument as a result of the payment in full of the Indebtedness on the Maturity Date or by voluntary prepayment in full. 
 5.     Guaranty of Payment and Performance. Guarantor’s obligations under this Guaranty constitute an unconditional guaranty of payment and performance and not merely a
guaranty of collection. 
 6.     No Demand by Lender Necessary; Waivers by Guarantor. The
obligations of Guarantor under this Guaranty shall be performed without demand by Lender and shall be unconditional regardless of the genuineness, validity, regularity or enforceability of the Note, the Security Instrument, or any other Loan
Document, and without regard to any other circumstance which might otherwise constitute a legal or equitable discharge of a surety, a guarantor, a borrower or a mortgagor. Guarantor hereby waives, to the fullest extent permitted by applicable law:

 (a)  the benefit of all principles or provisions of law, statutory or otherwise, which are or might be in conflict with
the terms of this Guaranty and agrees that Guarantor’s obligations shall not be affected by any circumstances, whether or not referred to in this Guaranty, which might otherwise constitute a legal or equitable discharge of a surety, a
guarantor, a borrower or a mortgagor; 
 (b)  the benefits of any right of discharge under any and all statutes or other
laws relating to a guarantor, a surety, a borrower or a mortgagor, and any other rights of a surety, a guarantor, a borrower or a mortgagor under such statutes or laws; 
 (c)  diligence in collecting the Indebtedness, presentment, demand for payment, protest, all notices with respect to the Note and this Guaranty which may be required by statute, rule of law or
otherwise to preserve Lender’s rights against Guarantor under this Guaranty, including, but not limited to, notice of acceptance, notice of any amendment of the Loan Documents, notice of the occurrence of any default or Event of Default, notice
of intent to accelerate, notice of acceleration, notice of dishonor, 

  
  

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notice of foreclosure, notice of protest, and notice of the incurring by Borrower of any obligation or indebtedness; 
 (d)  all rights to cause a marshalling of the Borrower’s assets or to require Lender to: 
  

	 	(i)	proceed against Borrower or any other guarantor of Borrower’s payment or performance under the Loan Documents (an “Other Guarantor”);



	 	(ii)	proceed against any general partner of Borrower or any Other Guarantor if Borrower or any Other Guarantor is a partnership; 


	 	(iii)	proceed against or exhaust any collateral held by Lender to secure the repayment of the Indebtedness; or 


	 	(iv)	pursue any other remedy it may now or hereafter have against Borrower, or, if Borrower is a partnership, any general partner of Borrower; 


(e)  any right to object to the timing, manner or conduct of Lender’s enforcement of its rights under any of the Loan
Documents; and 
 (f)  any right to revoke this Guaranty as to any future advances by Lender under the terms of the
Security Instrument to protect Lender’s interest in the Mortgaged Property. 
 7.     Modification
of Loan Documents. At any time or from time to time and any number of times, without notice to Guarantor and without affecting the liability of Guarantor, Lender may: 
 (a)  extend the time for payment of the principal of or interest on the Indebtedness or renew the Indebtedness in whole or in part; 

(b)  extend the time for Borrower’s performance of or compliance with any covenant or agreement contained in the Note, the
Security Instrument or any other Loan Document, whether presently existing or hereinafter entered into, or waive such performance or compliance; 
 (c)  accelerate the Maturity Date of the Indebtedness as provided in the Note, the Security Instrument, or any other Loan Document; 

(d)  with Borrower, modify or amend the Note, the Security Instrument, or any other Loan Document in any respect, including, but not
limited to, an increase in the principal amount; and/or 
 (e)  modify, exchange, surrender or otherwise deal with any
security for the Indebtedness or accept additional security that is pledged or mortgaged for the Indebtedness. 
 8.
    Joint and Several Liability. The obligations of Guarantor (and each party named as a Guarantor in this Guaranty) and any Other Guarantor shall be joint and several. Lender, in its sole and absolute discretion, may:

 (a)  bring suit against Guarantor, or any one or more of the parties named as a Guarantor in this Guaranty, and any
Other Guarantor, jointly and severally, or against any one or more of them; 

  
  

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 (b)  compromise or settle with Guarantor, any one or more of the parties named as a
Guarantor in this Guaranty, or any Other Guarantor, for such consideration as Lender may deem proper; 
 (c)  release one
or more of the parties named as a Guarantor in this Guaranty, or any Other Guarantor, from liability; and 
 (d)  otherwise
deal with Guarantor and any Other Guarantor, or any one or more of them, in any manner, and no such action shall impair the rights of Lender to collect from Guarantor any amount guaranteed by Guarantor under this Guaranty. 

9.     Subordination of Borrower’s Indebtedness to Guarantor. Any indebtedness of Borrower held by
Guarantor now or in the future is and shall be subordinated to the Indebtedness and Guarantor shall collect, enforce and receive any such indebtedness of Borrower as trustee for Lender, but without reducing or affecting in any manner the liability
of Guarantor under the other provisions of this Guaranty. 
 10.     Waiver of Subrogation. Guarantor
shall have no right of, and hereby waives any claim for, subrogation or reimbursement against Borrower or any general partner of Borrower by reason of any payment by Guarantor under this Guaranty, whether such right or claim arises at law or in
equity or under any contract or statute, until the Indebtedness has been paid in full and there has expired the maximum possible period thereafter during which any payment made by Borrower to Lender with respect to the Indebtedness could be deemed a
preference under the United States Bankruptcy Code. 
 11.     Preference. If any payment by Borrower
is held to constitute a preference under any applicable bankruptcy, insolvency, or similar laws, or if for any other reason Lender is required to refund any sums to Borrower, such refund shall not constitute a release of any liability of Guarantor
under this Guaranty. It is the intention of Lender and Guarantor that Guarantor’s obligations under this Guaranty shall not be discharged except by Guarantor’s performance of such obligations and then only to the extent of such
performance. 
 12.     Financial Statements. Guarantor, from time to time upon written request by
Lender, shall deliver to Lender such financial statements as Lender may reasonably require. 
 13.
    Assignment. Lender may assign its rights under this Guaranty in whole or in part and upon any such assignment, all the terms and provisions of this Guaranty shall inure to the benefit of such assignee to the extent so
assigned. The terms used to designate any of the parties herein shall be deemed to include the heirs, legal representatives, successors and assigns of such parties, and the term “Lender” shall also include any lawful owner, holder
or pledgee of the Note. Reference in this Guaranty to “person” or “persons” shall be deemed to include individuals and entities. 
 14.     Complete and Final Agreement. This Guaranty and the other Loan Documents represent the final agreement between the parties and may not be contradicted by evidence of
prior, contemporaneous or subsequent oral agreements. There are no unwritten oral agreements between the parties. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this
Guaranty and the other Loan Documents. Guarantor acknowledges that Guarantor has received a copy of the Note and all other Loan Documents. Neither this Guaranty nor any of its provisions may be waived, modified, amended, discharged, or terminated
except by a writing signed by 

  
  

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the party against which the enforcement of the waiver, modification, amendment, discharge, or termination is sought, and then only to the extent set forth in that writing. 

15.     Governing Law. This Guaranty shall be governed by and enforced in accordance with the laws of the
Property Jurisdiction, without giving effect to the choice of law principles of the Property Jurisdiction that would require the application of the laws of a jurisdiction other than the Property Jurisdiction. 

16.     Jurisdiction; Venue. Guarantor agrees that any controversy arising under or in relation to this
Guaranty may be litigated in the Property Jurisdiction, and that the state and federal courts and authorities with jurisdiction in the Property Jurisdiction shall have jurisdiction over all controversies which shall arise under or in relation to
this Guaranty. Guarantor irrevocably consents to service, jurisdiction and venue of such courts for any such litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise. However, nothing
herein is intended to limit Lender’s right to bring any suit, action or proceeding relating to matters arising under this Guaranty against Guarantor or any of Guarantor’s assets in any court of any other jurisdiction. 

17.     Guarantor’s Interest in Borrower. Guarantor represents to Lender that Guarantor has a direct or
indirect ownership or other financial interest in Borrower and/or will otherwise derive a material financial benefit from the making of the Loan. 
 18.     STATE-SPECIFIC PROVISIONS: 
 In addition to the
waivers set forth elsewhere in this Guaranty, 
 (a)  Guarantor waives the benefit of any right of
discharge under Chapter 34 of the Texas Business and Commerce Code and all other rights of sureties and guarantors under such Chapter; and 
 (b)  Guarantor waives all rights or defenses arising under Rule 31 of the Texas Rules of Civil Procedure, Section 17.001 of the Texas Civil Practice and Remedies Code, Chapter 34 of
the Texas Business and Commerce Code, or any other statute or law, common law, in equity, under contract or otherwise, or under any amendments, recodifications, supplements or any successor statute or law of or to any such statute or law; and all
rights under Sections 51.003, 51.004 and 51.005 of the Texas Property Code and under any amendments, recodifications, supplements or any successor statute or law of or to any such statute or law. 

19.     Residence; Community Property Provision. 

(a)       Guarantor represents and warrants that his/her state of residence is California. 

(b)       Guarantor warrants and represents that s/he is: 

[        ] single 
 [x] married 
 (c)       Guarantor is a married
individual residing in California. Guarantor acknowledges that this Guaranty is with recourse against the separate property and assets of such individual and against the marital community property and assets of such individual and his or her spouse.


  
  

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 20.     GUARANTOR AND LENDER EACH (A) AGREES NOT TO ELECT A
TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS GUARANTY OR THE RELATIONSHIP BETWEEN THE PARTIES AS GUARANTOR AND LENDER THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE
EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL. 

ATTACHED EXHIBIT. The following Exhibit is attached to this Guaranty: 

|X|     Exhibit A     Modifications to Guaranty 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
  

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 IN WITNESS WHEREOF, Guarantor has signed and delivered this Guaranty under seal or
has caused this Guaranty to be signed and delivered under seal by its duly authorized representative. 
  

			
	 Names and Address of Guarantor:
  

C. PRESTON BUTCHER, Individually and as trustee of the
Preston Butcher Legacy Partners Business Assets Revocable
Trust under declaration of trust
dated May 12, 2003
 c/o Legacy Partners Residential Realty LLC
 4000 E. Third Avenue, Sixth Floor
 Foster City, California 94404

 
 With a copy to:
 c/o Legacy Partners Residential Realty LLC
 4000 E. Third Avenue, Sixth Floor

Foster City, California 94404
 Attn: W. Dean
Henry/ Guy K. Hays
	  	  
 /s/ C. Preston Butcher

C. PRESTON BUTCHER, Individually and as trustee of the
Preston Butcher Legacy Partners Business Assets Revocable
Trust under declaration of trust
dated May 12, 2003



  
  

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 THE STATE OF CALIFORNIA § 
                                   
                              § 
 COUNTY OF San Mateo             § 
 On October 15, 2010 before me, Sylvia Stein, a notary public, personally appeared Preston Butcher, who proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/ her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument. 
 I certify under PENALTY OF PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct. 
 WITNESS my hand and official seal. 

/s/ Sylvia
Stein                                (seal) 

Signature of Notary 

  
  

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 EXHIBIT A 
 MODIFICATIONS TO GUARANTY 
 The following modifications are made to the text of the Guaranty that
precedes this Exhibit: 
  

	 	1.	Section 17 of the Guaranty is deleted in its entirety and replaced with the following revised provision: 


17.     Guarantor’s Interest in Borrower. Guarantor represents to Lender that Guarantor has a direct or
indirect ownership or other financial interest in Borrower and/or will otherwise derive a material financial benefit from the assumption of the Loan. 
  

	2.	The following new Section 21 is added to the end of the Guaranty after the last numbered section: 


21.     Limitation of Liability to Business Assets. 

(a)       Notwithstanding anything herein to the contrary, any recourse against Guarantor
under the Guaranty under or in connection with any other Loan Document shall be limited to the respective Business Assets (as defined below) owned by Guarantor at the time of enforcement of the Guaranty. In no event, except for cash and cash
equivalents which are included in the Business Assets, will any tangible or intangible real and personal property assets not specifically included in the Business Assets, including without limitation cash, cash equivalents, jewelry, works of art,
securities (including the OP Units (as defined below)) or similar intangible personal property, or any tangible or intangible proceeds (whether from disposition of, or borrowings secured by, such assets) of any of the foregoing assets, be available
to pay or satisfy any obligations of Guarantor under the Guaranty. The Business Assets available at the time of enforcement of any recourse obligations of the Guarantor shall be deemed to include any assets that would otherwise have constituted
Business Assets but for the transfer thereof with the intent to hinder, delay or defraud creditors or but for a transfer that would otherwise constitute a fraudulent conveyance or avoidable transfer under applicable laws. This provision shall apply
only so long as the Borrower is KBS Legacy Partners Dakota Hill LLC, a Delaware limited liability company, or is owned and controlled directly or indirectly by Guarantor individually or through a trust for the benefit of family members. 

(b)       For purposes of this Section 21, the following terms shall have the meaning
set forth below: 
 (i)       “Business Assets” means the net
equity of Guarantor as reflected in the Statements of Net Equity in the Legacy Partners Organization dated as of December 31, 2009 and December 31, 2008 and owned by Guarantor at the time of enforcement of the Guaranty; provided, however,
that Business Assets shall exclude the Designated REIT Assets (as defined below). 

  
  

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 (ii)       “Designated REIT
Assets” shall mean (i) any assets or the proceeds thereof (whether from disposition of, or borrowings secured by, such assets) related to and/or received in consideration for the properties (including management contracts) sold or
contributed to and/or the properties owned by entities involved in a merger with ERP Operating Limited Partnership and its affiliates (collectively, “Equity Residential”) as part of the Equity Residential merger/contribution
transaction with affiliates of Guarantor, (ii) any assets or the proceeds thereof (whether from disposition of, or borrowings secured by, such assets) related to and/or received in consideration for the properties contributed to AMB Property
L.P. and its affiliates (collectively, “AMB”) as part of the AMB contribution transaction with affiliates of Guarantor, (iii) any assets or the proceeds thereof (whether from disposition of, or borrowings secured by, such assets)
related to and/or received in consideration for the properties contributed to Spieker Properties, L.P. and its affiliates which has since merged with or into Equity Office Properties Trust or its affiliates (collectively, “Equity Office”)
as part of the Equity Office contribution transaction with affiliates of Guarantor, (iv) any assets or the proceeds thereof (whether from disposition of, or borrowings secured by, such assets) related to and/or received in consideration for the
properties contributed to Essex Portfolio, L.P. and its affiliates (collectively, “Essex”) as part of the Essex contribution transaction with affiliates of Guarantor and/or (v) any assets or the proceeds thereof (whether from
disposition of, or borrowings secured by, such assets) related to and/or received in consideration for the property(ies) contributed to Archstone Smith Operating Trust and its affiliates (collectively, “ASOT”) as part of the ASOT
contribution transaction with affiliates of Guarantor. 
 (iii)       “OP
Units” shall mean any units of limited partnership interest and/or shares of beneficial interest issued by Equity Residential, AMB, Equity Office, Essex and/or ASOT to Guarantor and/or any entity in which Guarantor has a direct or indirect
ownership interest in connection with the Equity Residential merger/contribution transaction, the AMB contribution transaction, the Equity Office contribution transaction, the Essex contribution transaction and/or the ASOT contribution transaction.

  

	3.	The following new provision is added as Section 22: 

  

	 	22.	Release of Individual Guaranty. Lender will release new Guarantors C. Preston Butcher and the Preston Butcher Legacy Partners Business Assets Revocable
Trust dated 5/12/2003 (the “Butcher Guarantors”) from their respective Guaranty obligations upon full satisfaction of each of the following conditions: 


 

	 	(a)	Lender’s review of audited financial statements for Guarantor KBS Legacy Partners Properties LLC, a Delaware limited liability company (the “Legacy
Guarantor”) which statements isolate and demonstrate to Lender’s satisfaction that (A) the net worth of the Legacy Guarantor is not less than $30 million, and (B) the minimum liquidity of the Legacy Guarantor is not less than $3
million. 


  
  

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	 	(b)	The Borrower submits to Lender rent rolls, in form satisfactory to Lender, demonstrating that the Mortgaged Property has been at least 90 percent occupied for a
minimum of six consecutive months at the time of the request for release of the Butcher Guarantors. 

  

	 	(c)	The Borrower submits to Lender operating statements for the Mortgaged Property demonstrating to Lender’s satisfaction that the average debt coverage ratio for the
Mortgaged Property, as determined by Lender, has been at least 1.3x for 12 consecutive months and in each of the final 3 months of that 12 month period, based on the maximum 7.25% interest rate for Loan, applied to the declining unpaid principal
balance of the Loan. 

  

	 	(d)	The Loan must not be on any version of Lender’s watchlist. 

  

	4.	The following provision is added as Section 23: 

  

	 	23.	Guarantor Minimum Net Worth. For purposes of this Section, “Guarantor” shall mean collectively C. Preston Butcher, the Preston Butcher Legacy Partners
Business Assets Revocable Trust under declaration of trust dated May 12, 2003 and KBS Legacy Partners Properties LLC, a Delaware limited liability company. 


	 	(a)	Guarantor shall maintain a minimum joint net worth of $30 million, with liquid assets of at least $3 million (the “Minimum Net Worth Requirement”).



	 	(b)	Annually, within 60 days after the end of each fiscal year of Guarantor, Guarantor will provide Lender a written certification of the net worth of Guarantor,
derived in accordance with customarily acceptable accounting practices, which shall be certified, under penalty of perjury, by the Guarantor. This certification is in addition to any financial statements required to be delivered by the terms of the
Guaranty. 


	 	(c)	It will be an Event of Default under the Security Instrument if Guarantor fails to maintain the Minimum Net Worth Requirement or provide the annual net worth reporting
requirements contained in this Guaranty. Lender’s remedies for such an Event of Default shall include, but shall not be limited to, requiring a letter of credit or a partial paydown of the Mortgage. 


  
  

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