Document:

Exhibit 10.11

 

	
 
    	
2004K163571
    
	
 
    	
 
    
	
 
    	
SANDY WEGMAN
    
	
 
    	
RECORDER
    
	
 
    	
KANE COUNTY, IL
    
	
 
    	
 
    
	
 
    	
RECORDED ON
    
	
 
    	
12/22/2004 10:35AM
    
	
 
    	
 
    
	
 
    	
REC FEE: 29.00
    
	
 
    	
PAGES: 8
    

 

This Amendment to Mortgage Was Prepared By 
 And After Recordation This Mortgage Should 
 Be Returned To

 

Oscar A Zamora, Esquire

c/o Teachers Insurance and Annuity

Association of America

730 Third Avenue

New York, New York 10017

 

AMENDMENT TO MORTGAGE

 

AAA-3831 / 000576200

 

This Amendment to Mortgage (this “Amendment”) is entered into as of December 16, 2004 between TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA (“Lender”), a New York corporation having offices at 730 Third Avenue, New York, New York 10017 and (ii) Algonquin Phase I Associates LLC and Algonquin Commons, LLC, each an Illinois limited liability company (collectively, “Borrower”) each having an office c/o Jeffrey R Anderson Real Estate, Inc, Rookwood Tower, 3805 Edwards Road, Suite 700, Cincinnati, Ohio 45209

 

RECITALS

 

A                                       Lender has made and Borrower, has accepted a loan (the “Loan”) in the maximum principal amount of $77,300,000 00, as evidenced by a Promissory Note dated October 29, 2004 (the “Note”) in the principal amount of SEVENTY-SEVEN MILLION, THREE HUNDRED THOUSAND AND NO/100 DOLLARS ($77,300,000 00) The Note is being amended contemporaneously herewith to establish that a default under the Phase II Loan (defined below) will constitute a default under the Note and the other Loan Documents As so amended and as it may be from time to time be amended, modified or restated, the Note is referred to as the “Amended Note”

 

 

B                                       The Note is secured by, among other things, that certain Open-End Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing Statement dated as of October 29, 2004, recorded in the Recorder’s Office of Kane County, Illinois as document number 2004K145149 from Borrower to Lender and (the “Mortgage”), encumbering certain real property described in Exhibit A Capitalized terms used in this Amendment and not otherwise defined herein shall have the meaning they are given in the Mortgage

 

C                                       Contemporaneously herewith, Lender is making an additional loan to certain affiliates of the Borrower in the amount of $21,000,000 00 (the “Phase II Loan”) It is a condition to the Lender’s willingness to make the Phase II Loan that the Mortgage be modified such that an event or circumstance constituting a default under the documents evidencing or securing the Phase II Loan will constitute an Event of Default under the Note

 

D                                       The Borrower and Lender desire to amend the Mortgage to reflect the making of the Phase II Loan and to confirm that the Mortgage, as amended hereby, secures the Amended Note

 

AGREEMENT

 

NOW THEREFORE, in consideration of the foregoing Recitals, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Borrower and Lender agree as follows

 

1                                         Incorporation of Recitals The foregoing Recitals are true and accurate

 

2                                         Amendment of the Mortgage The Mortgage is hereby amended in the following respects

 

(a)                                                 All references in the Mortgage to the “Note” shall mean the Amended Note

 

(b)                                                 For purposes of the Mortgage, (i) the term “Phase II Loan” means the Phase II Loan, as defined above in this Amendment,

 

(ii) the term “Phase II Loan Documents” shall mean any and all documents evidencing or securing the Phase II Loan as the same may be amended, modified or restated from time to time, and

 

(iii) the term “Phase II Mortgage” shall mean a certain Mortgage, Assignment of Leases and Rents, Security Agreement And Fixture Filing Statement securing the Phase II Loan, as the same may be amended, modified or restated from time to time

 

(c)                                                  Section 12 3 of the Mortgage is hereby amended by adding the following clause (xiv) thereto

 

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“(xiv)                                                 The property encumbered by the Phase II Mortgage shall simultaneously be conveyed to the same transferee and the transferee shall assume the Phase II Loan so as to maintain the cross default and cross collateralization of the Phase II Loan and the Loan”

 

(d)                                                 Section 14 1 of the Mortgage (“Events of Default”) is amended by inserting the following immediately at the end of clause (viii)

 

“, or

 

(ix) if, with respect to the Phase II Loan Documents, any ‘Event of Default’ (as defined in any such document) shall occur”

 

3                                         Priority Nothing contained herein shall in any manner affect or impair the priority of the lien of any of the Loan Documents as to the indebtedness secured thereby prior to giving effect to this Amendment, nor affect any other security held by Lender to secure repayment or performance of the obligations referred to herein The Borrower confirms that the Mortgage as amended hereby secures the Debt and also secure both the timely payment of the Debt as and when required and the timely performance of all other Obligations

 

4                                         Reaffirmation Borrower hereby repeats, reaffirms and remakes all representations, warranties, covenants and agreements contained in the Mortgage as of the date of this Amendment

 

5                                         Representations Borrower represents and warrants that (i) no Event of Default currently exists under the Mortgage as amended hereby or any of the other Loan Documents, (ii) no condition exists which with the giving of notice or the passage of time, or both, would result in an Event of Default, (iii) each of the foregoing RECITALS is correct, and (iv) there has been no material adverse change in the financial condition of Borrower from that shown in the financial statements most recently furnished to Lender in connection with the loans referred to herein

 

6                                         Full Force and Effect All of the provisions, rights, powers and remedies contained in the Mortgage as amended hereby and all of the other Loan Documents shall stand and remain unchanged and in full force and effect, except to the extent specifically amended hereby, and shall be applicable to all of the properties, rights and privileges subject to the lien of the Loan Documents

 

7                                         References No reference to this Amendment need be made in any instrument or document at any time referring to the Mortgage, and any reference in any such instrument or document to the Mortgage shall be deemed to be a reference to the Mortgage as amended hereby

 

8                                         Governing Law This Amendment shall be construed in accordance with and governed by the internal laws of the state where the Property is located

 

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9                                         Time of the Essence Time is of the essence with respect to the payment and performance of the all obligations to be performed under the Mortgage as amended hereby

 

10                                  Successors and Assigns The Mortgage as amended hereby binds Borrower and successors, assigns, heirs, administrators, executors, agents and representatives and inures to the benefit of Lender and its successors, assigns, heirs, administrators, executors, agents and representatives

 

11                                  Counterparts This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument

 

12                                  Amendments No provision of this Amendment may be modified, amended or waived except by a writing executed by the party sought to be bound thereby No consent or approval of Lender shall be given or deemed to have been given except to the extent expressly set out in a writing executed and delivered by Lender to Borrower

 

13                                  Amendment as Loan Instrument This Amendment shall be considered a “Loan Document” and shall be construed in conjunction with the other Loan Documents

 

14                                  WAIVERS. BORROWER HEREBY REPEATS, REAFFIRMS AND REMAKES ALL WAIVERS CONTAINED IN THE MORTGAGE AS OF THE DATE OF THIS AMENDMENT, INCLUDING WITHOUT LIMITATION, THE WAIVER OF JURY TRIAL CONTAINED IN THE MORTGAGE.

 

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IN WITNESS WHEREOF, this Amendment has been duly executed effective as of the date first written above

 

LENDER.

 

TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA

 

 

	
 
    	
By 
    	
/s/ Faye J. Friedman
    
	
 
    	
Name 
    	
FAYE J. FRIEDMAN
    
	
 
    	
Title 
    	
DIRECTOR
    

 

 

	
STATE OF NEW YORK
    	
)
    	
 
    
	
 
    	
) SS
    	
 
    
	
COUNTY OF NEW YORK
    	
)
    	
 
    

 

ACKNOWLEDGMENT

 

The foregoing instrument was acknowledged before me on December 14, 2004 by Faye Friedman, who is the Director of TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA, a New York corporation, on behalf of the corporation

 

	
 
    	
/s/ Donna J Phillips Slatus
    
	
 
    	
Notary Public, Cook County, Illinois
    
	
 
    	
 
    	
 
    
	
 
    	
My Commission Expires
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DONNA J PHILLIPS SLATUS
    
	
 
    	
NOTARY PUBLIC STATE OF NEW   YORK
    
	
 
    	
01PH4919935
    
	
 
    	
QUALIFIED IN KINGS COUNTY
    
	
 
    	
CERTIFICATE FILED IN NEW   YORK COUNTY 
   COMMISSION EXPIRES FEB 28 2006
    
					

 

 

	
BORROWER:
    	
 
    
	
 
    	
 
    
	
ALGONQUIN PHASE I   ASSOCIATES LLC, an Illinois limited liability company
    
	
 
    	
 
    
	
By
    	
Jeffrey R Anderson Real Estate, Inc an Ohio corporation and its   authorized agent
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
/s/ Jeffrey R Anderson
    	
 
    
	
 
    	
Printed Name Jeffrey R Anderson
    
	
 
    	
Title President
    
	
 
    	
 
    
	
 
    	
 
    
	
ALGONQUIN COMMONS, LLC, an   Illinois limited liability company
    
	
 
    	
 
    
	
By
    	
Jeffrey R Anderson Real Estate, Inc an Ohio corporation and its   authorized agent
    
	
 
    	
 
    
	
 
    	
 
    
	
BY
    	
/s/ Jeffrey R Anderson
    	
 
    
	
 
    	
Printed Name Jeffrey R Anderson
    
	
 
    	
Title President
    
				

 

[ACKNOWLEDGMENTS ON NEXT PAGE]

 

 

	
STATE OF OHIO
    	
)
    	
 
    
	
 
    	
) ss
    	
 
    
	
COUNTY OF HAMILTON
    	
)
    	
 
    

 

Before me, the undersigned authority, a Notary in and for said State, on this day personally appeared Jeffrey R Anderson, known to me to be the person whose name is subscribed to the foregoing instrument and known to me to be the president of Jeffrey R Anderson Real Estate, Inc, authorized agent for Algonquin Phase I Associates LLC, an Illinois limited liability company, and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Directors, and acknowledged that he/she executed the said instrument for the uses, purposes and consideration therein expressed on behalf of said Algonquin Phase I Associates, LLC

 

Given under my hand and seal of office this 14th day of December, 2004

 

	
 
    	

    	
KIMBERLEA RAMSEY 
   Notary Public
   In and for the State of Ohio
   My Commission Expires

November 11, 2007
    
	
/s/ Kimberlea Ramsey 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Notary Public in and for   the State of Ohio
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
My commission expires 11-11-2007
    
	
 
    	
 
    
	
 
    	
 
    
	
STATE OF OHIO 
    	
)
    	
 
    
	
 
    	
) ss
    	
 
    
	
COUNTY OF HAMILTON
    	
)
    	
 
    
						

 

Before me, the undersigned authority, a Notary in and for said State, on this day personally appeared Jeffrey R Anderson, known to me to be the person whose name is subscribed to the foregoing instrument and known to me to be the president of Jeffrey R Anderson Real Estate, Inc, authorized agent for Algonquin Commons, LLC, an Illinois limited liability company, and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Directors, and acknowledged that he/she executed the said instrument for the uses, purposes and consideration therein expressed on behalf of said Algonquin Commons, LLC

 

Given under my hand and seal of office this 14th day of December, 2004

 

	
 
    	

    	
KIMBERLEA RAMSEY

Notary Public

In and for the State of   Ohio

My Commission Expires

November 11, 2007

 
    
	
/s/ Kimberlea Ramsey 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Notary Public in and for the State of Ohio
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
My Commission Expires 11-11-2007
    
					

 

 

EXHIBIT A

 

Legal Description

 

PARCEL 1

 

THAT PART OF FRACTIONAL SECTION 6, TOWNSHIP 42 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS COMMENCING AT THE SOUTHWEST CORNER OF THE EAST HALF OF THE NORTHEAST QUARTER OF SAID SECTION 6, THENCE NORTH 00° 27’ 16” WEST ALONG THE WEST LINE OF THE EAST HALF OF SAID NORTHEAST QUARTER, 152 90 FEET FOR THE POINT OF BEGINNING, THENCE CONTINUING NORTH 00° 27’ 16” WEST ALONG SAID WEST LINE, 1596 19 FEET, THENCE NORTH 89° 39’ 00” EAST PARALLEL WITH THE NORTH LINE OF SAID NORTHEAST QUARTER, 335 00 FEET, THENCE NORTH 00° 27’ 16” WEST PARALLEL WITH THE WEST LINE OF THE EAST HALF OF SAID NORTHEAST QUARTER, 30 00 FEET, THENCE NORTH 89° 39’ 00” EAST PARALLEL WITH THE NORTH LINE OF SAID NORTHEAST QUARTER, 495 00 FEET, THENCE SOUTH 00° 17’ 50” WEST PARALLEL WITH THE WEST LINE OF RANDALL ROAD (ACCORDING TO DOCUMENT NO 97KO73506, RECORDED OCTOBER 28, 1997), 209 70 FEET, THENCE NORTH 89° 57’ 05” EAST PARALLEL WITH THE SOUTH LINE OF THE NORTH HALF OF THE NORTHEAST QUARTER OF SAID NORTHEAST QUARTER, 353 00 FEET, THENCE NORTH 00° 17’ 50” EAST PARALLEL WITH SAID WEST LINE OF RANDALL ROAD, 62 61 FEET, THENCE NORTH 89° 57’ 05” EAST PARALLEL WITH THE SOUTH LINE OF SAID NORTH HALF, 100 59 FEET TO SAID WEST LINE OF RANDALL ROAD, THENCE SOUTH 00° 17’ 50” WEST ALONG SAID WEST LINE, 1179 75 FEET, THENCE SOUTH 89° 42’ 10” WEST, 145 76 FEET, THENCE SOUTH 45° 17’ 50” WEST, 54 95 FEET, THENCE SOUTH 00° 17’ 50” WEST PARALLEL WITH SAID WEST LINE OF RANDALL ROAD, 162 16 FEET, THENCE SOUTH 05° 55’ 32” WEST, 225 19 FEET, THENCE SOUTH 26° 46’ 48” WEST, 113 07 FEET, THENCE SOUTH 88° 36’ 15” WEST, 569 09 FEET TO A POINT OF CURVATURE, THENCE WESTERLY AND NORTHWESTERLY, BEING A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 445 00 FEET, AN ARC LENGTH OF 348 99 FEET, A CHORD BEARING OF NORTH 68° 55’ 44” WEST AND A CHORD DISTANCE OF 340 11 FEET, THENCE NORTH 46° 27’ 42” WEST, 162 30 FEET TO THE POINT OF BEGINNING, IN THE VILLAGE OF ALGONQUIN, DUNDEE TOWNSHIP, KANE COUNTY, ILLINOIS

 

PARCEL 2.

 

EASEMENTS FOR ROADWAYS, WATERMAIN, SANITARY SEWER, STORM SEWER AND DETENTION FACILITY FOR THE BENEFIT OF PARCEL ONE AS SET FORTH AND DEFINED IN DECLARATION OF EASEMENTS, RESTRICTIONS AND MAINTENANCE AGREEMENT DATED OCTOBER 08, 2003 AND RECORDED NOVEMBER 04, 2003 AS DOCUMENT 2003K194483

 

PFN 03-06-200-018

 

Commonly known as SW corner of County line Rd. & Randall Rd Algonquin, IL.

 

	
 
    	
POOR ORIGINAL
   Recorder Not Responsible
   For ReproductionsExhibit 10.12

 

GUARANTY OF PAYMENT

 

l.  The Guaranty.

 

1.1  Guarantors’ Agreement.  JEFFREY R. ANDERSON, an individual, (hereinafter called “Guarantor”) having an office c/o Jeffrey R. Anderson Real Estate, Inc., Rookwood Tower, 3805 Edwards Road, Suite 700, Cincinnati, Ohio 45209 hereby unconditionally and irrevocably, guarantees (the “Guaranty”) to TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA, 730 Third Avenue, New York, New York 10017 (the “Lender”) to pay and perform when due the Liabilities (defined below) and to pay on demand the Expenses (defined below). This Guaranty is absolute, independent and continuing under all circumstances, and is a guaranty of payment and performance, not of collection. Guarantor acknowledges that the Lender has given sufficient consideration for this Guaranty by entering into that certain Construction Loan Disbursement Agreement dated of even date herewith (the “Loan Agreement”) with ALGONQUIN COMMONS, LLC, an Illinois limited liability company, ALGONQUIN PHASE II ASSOCIATES LLC, an Illinois limited liability company, JRA ANDERSON OFFICE PARK, LLC, an Ohio limited liability company, JRA BEECHMONT TWINS, LLC, an Ohio limited liability company, JRA FAMILY LIMITED LIABILITY COMPANY, an Ohio limited liability company, MFF ASSOCIATES, LLC, an Ohio limited liability company; and TGH ASSOCIATES, LLC, an Ohio limited liability company (collectively, “Borrower”) and agreeing to make the loan (the “Loan”) to Borrower under the Loan as evidenced by that certain Promissory Note, dated of even date herewith, in the original principal amount of $21,000,000 made by Borrower in favor of Lender, (as the same may from time to time be amended, modified or restated, the “Note”) and under which there is now due and owing the principal sum of $21,000,000.00, and Guarantor acknowledges that the Lender is agreeing to make the Loan in reliance on each of the terms of this Guaranty.

 

1.2  Liabilities.  For all purposes of this Guaranty, the term “Liabilities” shall mean all obligations of the Borrower to the Lender of any kind whatsoever, howsoever created, arising or evidenced, whether pursuant to a covenant, representation, warranty, indemnity or other agreement of any kind, whether direct or indirect, absolute or contingent, “recourse” or “non-recourse”, or now or hereafter existing, or due or to become due, under the Loan Agreement, the Note, the Mortgage or any other Loan Document. The “Mortgage” shall mean that certain Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Financing Statement from Borrower in favor of Lender, dated of even date herewith, and the “Loan Documents” shall mean the Loan Agreement, the Mortgage, the Note, and all guaranties, security agreements and other documents defined as “Loan Documents” under the Loan Agreement or which are furnished at any time to the Lender pursuant to the Loan Agreement. Liabilities under the Loan Documents shall include the obligation to pay interest under the Note, including any interest at the post-maturity or default rate set forth in the Note (the “Default Rate”)

 

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(whether or not such obligations survive payment in full of the Note). Each Guarantor acknowledges that the amount of the Liabilities may exceed the amount necessary to pay in full the Note and all Expenses.

 

Notwithstanding the foregoing, it is acknowledged and agreed that the obligations of the Guarantor on account of principal under the Loan shall be determined without reference to the fact that the Phase II Property also serves as collateral for the Phase I Loan.

 

Notwithstanding the foregoing, upon the satisfaction of all conditions to Release of Guaranty (as expressed below in Section 1.4 hereof) the Guarantor shall have  no further liability under this Guaranty  and this Guaranty shall be of no further force and effect. Upon request from the Guarantor, Lender shall promptly certify that the Guarantor has no further obligations under this Guaranty, if such be the case.

 

1.3  Expenses.  For all purposes of this Guaranty, the term “Expenses” shall mean all attorneys’ fees, court costs, and other legal expenses and all other costs and expenses of any kind which the Lender may at any time reasonably pay or incur in attempting to collect, compromise or enforce in any respect the Liabilities or this Guaranty, whether or not suit is ever filed, and whether or not in connection with any insolvency, bankruptcy, reorganization, arrangement or other similar proceeding involving any Guarantor provided Lender is successful in the action for which such costs were incurred. If the Lender pays any such cost or expense, “Expenses” shall also include interest at the Default Rate on any such payment from the date thereof until repayment of the Lender in full.

 

1.4  Release of Guaranty.  Lender has heretofore made a loan to Algonquin Commons, LLC and Algonquin Phase I Associates LLC (collectively, the “Phase I Borrower”) which are affiliates of the Guarantor and the Borrower, such loan being in the amount of $77,300,000.00 (the “Phase I Loan”). The Phase I Loan is evidenced by a promissory note dated October      , 2004, in the amount of $77,300,00.00 from the Phase I Borrower to the Lender (the “Phase I  Note”) and is further evidenced and secured by various “Loan Documents” as defined in the Phase I Note (all such documents being referred to herein as the “Phase I Loan Documents”). The Phase I Loan is secured by, among other things an Open-End Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Financing Statement from Phase I Borrower in favor of Lender, encumbering real property that is contiguous to property encumbered by the Mortgage the (“Phase I Property”).

 

This Guaranty shall cease and determine at such date, if any, as (i) 95% of the rentable square footage of the improvements to be constructed upon and included within the real property encumbered by the Mortgage (the “Phase II Property”), including any improvements erected on any portion of the Phase II Property ground leased to a third party, is leased with tenants in occupancy and actually paying rent and (ii) the annual rents (excluding security deposits) under leases (including ground leases) in effect on

 

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such date are providing debt service coverage for the annual Debt Service Payments of 1.44 after payment of annual Insurance Premiums, Impositions (each such term as defined in the Mortgage, but with reference to the combined Phase I Property and Phase II Property) and operating expenses of the Property (including ground rent, if any payable by the Borrower or the Phase I Borrower). As used herein, the term “Debt Service Payments” shall have the meaning given such term in the Mortgage (but determined with reference to the Phase I Loan and the Loan combined).

 

Without limiting the obligations of the Guarantor hereunder, it is understood and agreed that (i) the indebtedness and Debt Service Payments under the Loan shall be measured, and the foregoing debt service coverage test applied after giving effect to any prepayment of the Loan made pursuant to Section 6.8 of the Loan Agreement, and (ii) the 95% rentable square footage shall be measured, and the associated test applied with reference to such of the improvements constructed upon the Phase II Property with the proceeds of the Loan as to which construction shall have been commenced as of the Completion Date (as defined in the Loan Agreement).

 

2.  Representations and Warranties.  Guarantor hereby represents and warrants to the Lender as follows:

 

2.1  Review of Guaranty and Loan Documents.  Guarantor has reviewed with the benefit of its legal counsel the terms of this Guaranty, the Mortgage, the Note and each other of the loan documents relating to the Loan and the Phase I Loan;

 

2.2  Financial Benefit to Guarantor.  Guarantor is deriving a material financial benefit from the making of the Loan to Borrower.

 

2.3  Organization; Authorization.  Intentionally omitted;

 

2.4  Enforceability.  Each obligation under this Guaranty is legal, valid, binding and enforceable against Guarantor in accordance with its terms;

 

2.5  Intentionally left blank.

 

2.6  No Existing Defaults and No Litigation.  Guarantor is not in default under any agreement, the effect of which could materially adversely affect performance of its obligations under this Guaranty. There are no actions, suits or proceedings pending or, to the best of its knowledge, threatened against Guarantor before any court or any other governmental authority of any kind which could materially adversely affect performance of its obligations under this Guaranty;

 

2.7  Guaranty Will Cause No Violations of Law or Other Defaults.  Neither the execution and delivery of this Guaranty nor compliance with its terms will violate any presently existing law, regulation, order, writ, injunction or decree of any court or other

 

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governmental authority of any kind, or result in any default by Guarantor under any other document or agreement of any kind;

 

2.8  No Misstatements or Omissions.  This Guaranty does not contain any untrue statement of fact.

 

2.9  ERISA.  Guarantor is not an “employee benefit plan” (within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended from time to time (“ERISA”)) to which ERISA applies and Guarantor’s assets do not constitute assets of any such plan; and

 

2.10  Solvency.  Guarantor (i) is solvent on the date hereof and will not become insolvent as a result of the obligations incurred under this Guaranty; (ii) is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which the property of Guarantor is an unreasonably small capital; and (iii) has not intended to incur, does not intend to incur, and does not believe that it is incurring, obligations that would be beyond Guarantor’s ability to pay as such obligations mature.

 

3.  Agreements.  Guarantor agrees as follows:

 

3.1  Intentionally left blank.

 

3.2  Intentionally left blank.

 

3.3  Rescinded, Avoided or Returned Payments.  If at any time any part of any payment previously applied by the Lender to any of the Liabilities is rescinded, avoided or returned by the Lender for any reason, including the insolvency, bankruptcy or reorganization of any of the Guarantor or any other party, such Liabilities shall be deemed to have continued in existence to the extent that such payment is rescinded, avoided or returned, and this Guaranty shall be reinstated as to such Liabilities as though such prior application by the Lender had not been made.

 

3.4  Certain Permitted Actions of the Lender.  The Lender may from time to time, in its sole discretion and without notice to any Guarantor, take any of the following actions without in any way affecting the obligations of any Guarantor: (a) obtain a security interest in any property to secure any of the Liabilities or any obligation hereunder; (b) obtain the primary or secondary obligation of any additional obligor or obligors with respect to any of the Liabilities; (c) extend, modify, subordinate, exchange or release any of the Liabilities; (d) modify, subordinate, exchange or release its security interest in any part of any property securing any of the Liabilities or any obligation hereunder, or extend, modify, subordinate, exchange or release any obligations of any obligor with respect to any such property; (e) alter the manner or place of payment of the Liabilities; (f) enforce this Guaranty against Guarantor for payment of any of the Liabilities, whether or not the Lender shall have (A) proceeded against any other

 

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Guarantor or any other party primarily or secondarily obligated with respect to any of the Liabilities or (B) resort to or exhaust any other remedy or any other security or collateral; (g) foreclose on, take possession of or sell any of the collateral or security for the Liabilities or enforce any other rights under the Note, the Mortgage or any of the other Loan Documents and (h) any of the foregoing actions with respect to the Phase I Loan or the Phase I Loan Documents.

 

3.5  Lender’s Option to Release Any Guarantor.  The Lender may from time to time in its sole discretion release any of the Guarantor from any of its obligations hereunder or release any other obligor from any of the Liabilities without notice to any other Guarantor or any other party and without in any way releasing or affecting the liability of the other Guarantor.

 

3.6  Application of Payments.  The Lender may apply any payment made on account of the Liabilities toward such of the Liabilities, and in such order, as the Lender may from time to time elect in its sole discretion.

 

3.7  Intentionally left blank.

 

3.8  Certain Events Not Affecting Obligations of Guarantor.  The obligations of the Guarantor hereunder shall not be affected by any of the following: (a) the release or discharge of any other Guarantor in any creditors’, receivership, bankruptcy, reorganization, insolvency, or other proceeding; (b) the rejection or disaffirmance in any such proceeding of any of the Liabilities; (c) the impairment or modification of any of the Liabilities, or of any remedy for the enforcement thereof, or of the estate of any other Guarantor in bankruptcy, resulting from any present or future federal or state bankruptcy law or any other law of any kind or from the decision or order of any court or other governmental authority; (d) any disability or defense of any other Guarantor; (e) the cessation of the liability of any other Guarantor for any cause whatsoever; (f) any sale, assignment, transfer or other conveyance (including any conveyance in lieu of foreclosure or any collateral sale pursuant to the Uniform Commercial Code) of any of the security for any of the Liabilities, regardless of the amount received by the Lender in connection therewith; or (g) any disability or defense of any kind now existing of any Guarantor with respect to any provision of this Guaranty. However, in the event of a sale of the Property conforming with the provisions of Section 12.3 of the Mortgage, this Guaranty shall be released as to liability first arising after such a sale.

 

3.9  No Obligation of Lender Regarding Security Interest.  The Lender shall have no obligation to obtain, perfect or retain a security interest in any property to secure any of the Liabilities or this Guaranty, or to protect or insure any such property.

 

3.10  Filing of Certain Claims.  Guarantor shall promptly file in any bankruptcy or other proceeding in which the filing of claims is required by law all claims and proofs of such claims which Guarantor may have against any other Guarantor, and will

 

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collaterally assign to the Lender or its nominee all rights of Guarantor thereunder. If any Guarantor does not so file, Guarantor hereby irrevocably authorizes the Lender or its nominee to do so, either (in the Lender’s discretion) as attorney-in-fact for Guarantor, or in the name of the Lender or the Lender’s nominee. In all such cases, any party authorized to pay such claim shall pay to the Lender or its nominee the full amount thereof.

 

3.11  ERISA.  For so long as this Guaranty shall be continuing pursuant to Paragraph 5.1 hereof, Guarantor hereby covenants to the Lender that, for the duration of the term of this Guaranty, Guarantor will not be an “employee benefit plan” (within the meaning of Section 3(3) of ERISA) to which ERISA applies and Guarantor’s assets will not constitute assets of any such plan.

 

4.  Waivers. Guarantor hereby expressly waives:

 

4.1  Notices.  Notice of the acceptance by the Lender of this Guaranty, notice of the existence or creation of any of the Liabilities, presentment, demand, notice of dishonor, protest, notice of protest, notice of acceleration, notice of intent to accelerate, under this Guaranty and all other notices except any specifically required by this Guaranty;

 

4.2  Disclosures About Any Other Guarantor.  Guarantor hereby waives any obligation the Lender may have to disclose to Guarantor any facts the Lender now or hereafter may know or have reasonably available to it regarding any other Guarantor or its financial condition, whether or not the Lender has a reasonable opportunity to communicate such facts or has reason to believe that any such facts are unknown to Guarantor or materially increase the risk to Guarantor beyond the risk Guarantor intends to assume hereunder. Guarantor shall be fully responsible for keeping informed of the financial condition of each and every other Guarantor and of all other circumstances bearing on the risk of non-payment or non-performance of the Liabilities;

 

4.3  Diligence in Collection.  All diligence in collection of any of the Liabilities, any obligation hereunder, or any guaranty or other security for any of the foregoing;

 

4.4  Benefit of Certain Laws.  The benefit of all appraisement, valuation, marshalling, forbearance, stay, extension, redemption, homestead, exemption and moratorium laws now or hereafter in effect;

 

4.5  Certain Defenses.  Any defense based on the incapacity, lack of authority, death or disability of any other person or entity or the failure of the Lender to file or enforce a claim against the estate of any other person or entity in any administrative, bankruptcy or other proceeding;

 

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4.6  Election of Remedies Defense.  Any defense based on an election of remedies by the Lender, whether or not such election may affect in any way the recourse, subrogation or other rights of Guarantor against any other Guarantor or any other person in connection with the Liabilities;

 

4.7  Defenses Relating to Collateral Sale.  Any defense based on the failure of the Lender to (a) provide notice to the Guarantor of a sale or other disposition (including any collateral sale pursuant to the Uniform Commercial Code) of any of the security for any of the Liabilities, or (b) conduct such a sale or disposition in a commercially reasonable manner;

 

4.8  Defenses Relating to Loan Administration.  Any defense based on the negligence of the Lender in administering the Loan or the Phase I Loan, or taking or failing to take any action in connection therewith; and

 

4.9 Rights of Subrogation, Contribution, Etc.  Until payment by Guarantor of all amounts claimed under this Guaranty by Lender, any rights arising because of Guarantor’s payment of any of the Liabilities, (a) against any other Guarantor, by way of subrogation of the rights of the Lender or otherwise, or (b) against any other Guarantor or any other party obligated to pay any of the Liabilities, by way of contribution or reimbursement or otherwise.

 

5.  Miscellaneous.

 

5.1  Continuing Guaranty.  Subject to the provisions of Section 1.4 of this Guaranty, this Guaranty shall in all respects be a continuing guaranty, remaining in full force and effect until all of the following have occurred: (a) all of the Liabilities have been satisfied in full, (b) all of the Guarantor’s obligations hereunder have been satisfied in full, and (c) the Loan has been repaid in full. No notice of discontinuance or revocation shall affect any of the obligations of Guarantor hereunder or any other obligor under any of the Liabilities. The Lender shall not be obligated to accept at any time any deed in lieu of foreclosure, and all obligations of Guarantor hereunder shall survive any foreclosure, reinstatement, period of redemption or any deed in lieu of foreclosure which the Lender may accept, to the extent any of the Liabilities remain unsatisfied or otherwise survive. Lender shall acknowledge that there is no further obligation under this Guaranty where (a) (b) and (c) above have occurred.

 

5.2  Joint and Several Obligations; Successors and Assigns.  All obligations under this Guaranty are joint and several to any other party which hereafter guarantees any portion of the Liabilities, and shall be binding upon each of them and their respective heirs, legal representatives, successors and assigns.

 

5.3  Assignment by the Lender.  The Lender may from time to time, without notice to any Guarantor, assign or transfer any interest in any of the Liabilities by loan

 

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participation or otherwise, and notwithstanding such assignment or transfer, such Liabilities shall remain Liabilities for purposes of this Guaranty. Each immediate and successive assignee or transferee of any interest in any of the Liabilities and this Guaranty shall, to the extent of such interest, be entitled to the benefits of this Guaranty to the same extent as if such assignee or transferee were the Lender. The Lender may deliver to any such assignee or transferee any financial statements delivered by any Guarantor in connection with this Guaranty.

 

5.4  Legal Tender of United States.  All payments hereunder shall be made in coin or currency which at the time of payment is legal tender in the United States of America for public and private debts.

 

5.5  Time of Essence. Time is of the essence of this Guaranty.

 

5.6  Definitions; Captions; Gender.  Any capitalized term not defined herein but defined in the Note shall have the same meaning herein as it has in the Note. With respect to any reference in this Guaranty to any defined term: (a) if such defined term refers to a person, or a trust, corporation, partnership or other entity, then it shall also mean all heirs, personal representatives, successors and assigns of such person or entity; and (b) if such defined term refers to a document, instrument or agreement, then it shall also include any replacement, extension or other modification thereof. Captions contained in this Guaranty in no way define, limit or extend the scope or intent of their respective provisions. Use of the masculine, feminine or neuter gender and of singular and plural shall not be given the effect of any exclusion or limitation herein.

 

5.7  Including Means Without Limitation.  The use in this Guaranty of the term “including”, and related terms such as “include”, shall in all cases mean “without limitation”.

 

5.8  Notices.  Any notice or demand provided for in this instrument shall be in writing, addressed as provided below, and shall be delivered personally, sent by certified mail, return receipt requested or sent by reputable, national overnight delivery service, charges prepaid. Notice is deemed given on the earlier of (i) actual receipt; or (ii) three days after mailing if mailed or one day after delivery to the overnight service if a service is used. All notices and demands must include reference to the application number and the mortgage number referred to in this instrument.

 

	
If to Guarantor:
    	
Jeffrey R. Anderson Real Estate, Inc.
    
	
 
    	
Rookwood Tower
    
	
 
    	
3805 Edwards Road, Suite 700
    
	
 
    	
Cincinnati, Ohio 45209
    
	
 
    	
Attn:  Jeffrey R. Anderson
    
	
 
    	
Application No.: AAA-3831
    
	
 
    	
Authorization ID #000576200
    

 

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With a copy to:
    	
Dinsmore   & Shohl LLP
    
	
 
    	
1900   Chemed Center
    
	
 
    	
255   East Fifth Street
    
	
 
    	
Cincinnati,   Ohio 45202
    
	
 
    	
Attention:    Thomas J. Sherman, Esq.
    
	
 
    	
Application   No.: AAA-3831
    
	
 
    	
Authorization   ID #000576200
    
	
 
    	
 
    
	
If to Lender:
    	
Teachers   Insurance and Annuity
    
	
 
    	
Association   of America
    
	
 
    	
730   Third Avenue
    
	
 
    	
New   York, New York 10017
    
	
 
    	
Attention:
    	
Managing   Director/Portfolio
    
	
 
    	
 
    	
Mortgage   and Real Estate Division
    
	
 
    	
Region:
    	
Midwest/Southwest
    
	
 
    	
Application   No.: AAA-3831
    
	
 
    	
Authorization   ID # 000576200
    
	
 
    	
 
    
	
with a copy to:
    	
Teachers   Insurance and Annuity
    
	
 
    	
Association   of America
    
	
 
    	
730   Third Avenue
    
	
 
    	
New   York, New York 10017
    
	
 
    	
Attention:
    	
Managing   Counsel — New York
    
	
 
    	
 
    	
Investment   Management Law
    
	
 
    	
Application   No.: AAA-3831
    
	
 
    	
Authorization   ID # 000576200
    

 

5.9  Entire Agreement.  This Guaranty constitutes the entire agreement of the Guarantor for the benefit of the Lender and supersedes any prior agreements with respect to the subject matter hereof.

 

5.10  No Modification Without Writing.  This Guaranty may not be terminated or modified in any way nor can any right of the Lender or any obligation of any Guarantor be waived or modified, except by a writing signed by the Lender and Guarantor.

 

5.11  Independent Obligations.  The obligations of Guarantor hereunder are independent of the obligations of any other Guarantor. In the event of any default hereunder, the Lender may institute a separate action against any Guarantor with or without joining or instituting a separate action against any other Guarantor or other obligor.

 

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5.12  Severability.  Each provision of this Guaranty shall be interpreted so as to be effective and valid under applicable law, but if any provision of this Guaranty shall in any respect be ineffective or invalid under such law, such ineffectiveness or invalidity shall not affect the remainder of such provision or the remaining provisions of this Guaranty.

 

5.13  Cumulative.  The obligations of Guarantor hereunder are in addition to any other obligations it may now or hereafter have to the Lender, and shall not be affected in any way by the delivery to the Lender by Guarantor or any other guarantor of any other guaranty, or any combination thereof. All rights and remedies of the Lender and all obligations of Guarantor under this Guaranty are cumulative. In addition, the Lender shall have all rights and remedies available to it in law or equity for the enforcement of this Guaranty.

 

5.14  Effect of Lender’s Delay or Action.  No delay by the Lender in the exercise of any right or remedy shall operate as a waiver thereof, and no single or partial exercise by the Lender of any right or remedy shall preclude any other exercise thereof or the exercise of any other right or remedy. No action of the Lender permitted hereunder shall in any way impair or otherwise affect any right of the Lender or obligation of Guarantor under this Guaranty. The Lender shall not be liable in any way for any decrease in the value or marketability of any property securing any of the Liabilities which may result from any action or omission of the Lender in enforcing any part of this Guaranty, the Note, the Mortgage or any other of the loan documents securing the Loan.

 

5.15  Governing Law.  THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF ILLINOIS WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES.

 

5.16  ENTIRE AGREEMENT.  THIS GUARANTY, TOGETHER WITH THE NOTE, MORTGAGE, AND THE OTHER LOAN DOCUMENTS SECURING THE LOAN, REPRESENTS THE ENTIRE FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE TRANSACTIONS CONTEMPLATED HEREIN AND CANNOT BE MODIFIED, SUPPLEMENTED, AMENDED, RESCINDED OR CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES, EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES HERETO.

 

5.17  WAIVER OF JURY TRIAL.  GUARANTOR AND THE LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHTS THAT GUARANTOR OR LENDER MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION ARISING IN ANY WAY IN CONNECTION WITH

 

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THIS GUARANTY, THE NOTE, THE MORTGAGE OR ANY OF THE OTHER LOAN DOCUMENTS EXECUTED BY GUARANTOR, OR IN CONNECTION WITH ANY OTHER STATEMENTS OR ACTIONS OF THE LENDER OR GUARANTOR.

 

5.18  Counterparts.  This Guaranty may be executed in one or more counterparts, each of which shall be deemed to be a duplicate original.

 

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IN WITNESS WHEREOF, the undersigned has executed this Guaranty as of this               day of December, 2004.

 

 

	
 
    	
GUARANTOR:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ JEFFREY R. ANDERSON
    
	
 
    	
 
    	
Name:
    	
JEFFREY R. ANDERSON
    

 

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