Document:

DEED AND SETTLEMENT AGREEMENT

 

THIS DEED AND SETTLEMENT AGREEMENT is made as of the 7th day of May, 2015 (this “Agreement”) by, between, and among Sheldon A. Mayer, LLC, a Minnesota limited liability company (“Borrower”), Sheldon A. Mayer (“Guarantor”), and Pro-Dex Sunfish Lake, LLC, a Delaware limited liability company (“Lender”).

 

WITNESSETH:

 

A.       Borrower owns fee simple title to the real estate and the improvements thereon located at 14280 Sunfish Lake Boulevard NW, Ramsey, Minnesota 55303, and legally described on Exhibit A attached hereto (“Property”).

 

B.       On or around July 24, 2006, Vermillion State Bank (“Vermillion”) made a loan to Borrower in the original principal amount of $1,200,000.00 (“Loan”). The Loan was designated as Loan No. 57400701. In connection with the Loan, Borrower and Guarantor executed and/or delivered the following documents in favor of Vermillion, among others:

	  	  	  
	  	
  1.

	
Promissory Note, dated July 24, 2006, in the principal amount of $1,200,000, executed by Borrower in favor of Vermillion, which was subsequently renewed on January 31, 2007, and on February 28, 2007, and on March 1, 2010, and on March 17, 2011, and on August 15, 2011, and on December 22, 2011, and on June 22, 2012, and on March 8, 2013, and on July 19, 2013, and on October 4, 2013, and on June 20, 2014 (collectively, with renewal notes, the “Note”).

	  	  	  
	  	
  2.

	
Mortgage, dated July 24, 2006, executed by Borrower in favor of Vermillion, securing the maximum principal amount of up to $1,200,000, recorded against the Property with the Office of the Registrar of Titles of Anoka County, Minnesota as Document No. 488446.007 (“Mortgage”).

	  	  	  
	  	
  3.

	
Commercial Security Agreement dated March 1, 2010, executed by Borrower in favor of Vermillion (“Security Agreement”), granting Vermillion a security interest in all of Borrower’s accounts and other rights to payment, inventory, equipment, instruments and chattel paper, general intangibles, documents, investment property, and deposit accounts as is more fully set forth on the UCC-1 Financing Statement filed with the Minnesota Secretary of State on March 17, 2010, which is designated as filing number 201019518473 (“UCC Financing Statement,” and collectively with the Note and Mortgage, the “LLC Loan Documents”).

	  	  	  
	  	
  4.

	
Guaranty of Guarantor, dated July 24, 2006, in favor of Vermillion, personally guaranteeing Borrower’s obligations under the Note (“Guaranty”). Under the Guaranty, Guarantor also personally guaranteed all debt owing by Riverside Manufacturing, Inc. (“Riverside”) to Vermillion, including that debt evidenced by a Promissory Note, dated December 15, 2010, in the principal amount of $431,858.25, executed by Riverside in favor of Vermillion, which was subsequently renewed several times (“Riverside Loan”).

 

    	  

    	 

    
 

 

	  	  	  
	  	
  5.

	
Mortgage, dated September 14, 2007, executed by Guarantor and his now ex-wife, Melinda Mayer, in favor of Vermillion, securing the maximum principal amount under the Guaranty of up to $150,000, recorded with the Office of the Registrar of Titles of Anoka County, Minnesota as Document No. 1996002.008 (“Mayer Mortgage”). The Mayer Mortgage affects certain real property commonly known as 9124 Collins Drive, Ramsey, Minnesota, and legally described as Lot 11, Block 2, Itasca Heights.

 

C.        On November 21, 2014, Pro-Dex Sunfish Lake, LLC acquired from Vermillion all rights under, among other documents, the LLC Loan Documents, all loan and security documents relating to the Riverside Loan, the Guaranty, and the Mayer Mortgage. All documents necessary to assign and transfer the rights under the foregoing documents were executed by the relevant parties and filed with the respective county and state offices, as the case may be.

 

D.        Borrower is currently in default under the terms of the LLC Loan Documents by virtue of, among other things, Borrower’s failure to pay the Note in full when it came due.

 

E.        Guarantor is currently in default under the terms of the Guaranty by virtue of, among other things, Guarantor’s failure to satisfy his obligations under the Guaranty when they became due.

 

F.        As of the date of this Agreement, the total amount due and owing under the Note is $1,182,257.63, plus attorneys’ fees and costs provided for under the LLC Loan Documents.

 

G.        As of the date of this Agreement, the amount of past due real estate taxes on the Property, including penalties and fees, totals approximately $148,893.51.

 

H.        Since constructing the improvements on the Property, Borrower has leased on a month to month basis certain space at the Property to various tenants, including, but not limited to, Riverside. Borrower represents that Riverside is in arrears on its rent obligations, in an unknown amount (“Receivables,” which term includes any and all other receivables owing to Borrower by any other third-party). Borrower represents that it has received no tenant deposits or prepaid rent. In addition to the foregoing, Borrower represents that it owns various equipment, machinery, fixtures, and other items of tangible personal property located at the Property (“Personal Property”), which is subject to the Security Agreement.

 

I.         Borrower, Guarantor, and Lender now desire to partially resolve Lender’s rights under the LLC Loan Documents, the Guaranty, and the Mayer Mortgage, as provided herein.

 

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

 

1.         Incorporation. The recitals to this Agreement are true and accurate and fully incorporated herein by this reference thereto with the same force and effect as though restated herein.

 

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2.      Guarantor’s and Borrower’s Representations. Guarantor, in his individual capacity and for Borrower, represents and warrants to Lender that he is the sole member of Borrower and has full and complete authority to take actions on behalf of Borrower, such as entering into this Agreement. In addition, Guarantor and Borrower represent that there are no unpaid fees or costs or unperformed obligations relating to any improvement on the Property that may give rise to a claim against the Property, including, but not limited to, a mechanic’s lien. Guarantor and Borrower also represent and warrant that no hazardous substances have been generated, stored, released, or disposed of on or about the Property in violation of any applicable laws or rules and Guarantor and Borrower have not received any written notice from any governmental agency concerning any hazardous substance discharge at the Property.

 

3.      Delivery of and Recording the Deed. In consideration of the recharacterization of a portion of the debt under the Note and the releases described in more detail in Paragraph 6, Borrower agrees to execute and deliver to Lender the deed attached hereto as Exhibit B (the “Deed”), and Lender acknowledges receipt of the Deed. Borrower and Lender agree that Lender is entitled to immediately record the Deed, without any further action or obligations of any party hereto.

 

4.
     Delivery of Assignment and Bill of Sale. In consideration of the recharacterization
of a portion of the debt under the Note and the releases described in more detail in Paragraph 6, Borrower agrees to (a) transfer
and assign to Lender all Receivables, of any type and in any amount owed by any third-party to Borrower, including, but not limited
to, all rent owing on account of any occupancy by Riverside or any other tenant of the Property; and (b) transfer to Lender all
Borrower’s right, title and interest in the Personal Property. Borrower shall deliver an executed Assignment and Bill of
Sale contemporaneously with the execution of this Agreement, in the form attached hereto as Exhibit C.

 

5.      Payment by Guarantor. In consideration of the releases described in more detail in Paragraph 6, Guarantor agrees to pay $2,000 in certified funds to Lender contemporaneously with the execution of this Agreement.

 

6.      Reclassification of Debt and Release of Guarantor and Mayer Mortgage. Lender’s act of recording the Deed shall result in $1,000,000 of the debt under the Note to be reclassified as non-recourse debt against Borrower. Lender’s sole remedy with respect to this non-recourse portion of the debt under the Note is to foreclose the Mortgage on the Property, at Lender’s sole discretion. Lender retains the right to enforce its rights under the LLC Loan Documents against Borrower with respect to the remaining amount of recourse debt under the Note. In addition, subject to the terms and conditions hereof, when Lender records the Deed the Guarantor and the Mayer Mortgage will be released.

 

Lender reserves the right, within 10 business days of the date the Deed is recorded, to verify that no liens or encumbrances have been placed upon the title to the Property prior to the recording of the Deed, other than the permitted encumbrances described in the Deed. In the event a lien or encumbrance is discovered, other than the permitted encumbrances, the reclassification of debt and the releases described above may be deemed ineffective by Lender and Lender shall not deliver the same. If no new liens or encumbrances are discovered, Lender agrees to execute a Satisfaction of Mortgage relating to the Mayer Mortgage and deliver the same to Guarantor within 5 business days of the expiration of the 10-day period described above.

 

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7.      Default. If at any time the Guarantor’s representations contained in this Agreement, including, but not limited to, Paragraph 2, prove untrue, Lender may revoke the releases provided for herein.

 

7.      No Merger and Absolute Conveyance. It is the intent of the parties to this Agreement that the conveyance of the Property to Lender as provided herein will be an absolute conveyance of all of Borrower’s right, title, and the interest in and to the Property and was not and is not intended as a Mortgage, Trust Conveyance, Deed of Trust, or Security Instrument of any kind and the consideration for the conveyance is set forth herein, and the Borrower has no further interest (including rights of redemption) or claims in and to the Property or to the rents, proceeds and profits that may be derived thereof of any kind whatsoever. With the Lender recording the Deed, the indebtedness evidenced by the Mortgage shall not be cancelled, shall survive the closing, delivery of the Deed and/or release, and shall remain in full force and effect after the transaction contemplated by this Agreement has been consummated, except as provided in Paragraph 6 of this Agreement. It is the express intention of each of the parties hereto (and all the conveyances provided in this Agreement shall so recite), that such interest of Lender in the Property secured by the Mortgage shall not merge, but be and remain at all times separate and distinct, notwithstanding any union of said interest in Lender at any time by purchase, termination or otherwise and that the lien of the Mortgage on the Property shall be at all times herein a valid and continuous lien on the Property until and unless released of record by Lender or its successors and assigns.

 

8.      No Obligations to Third-Parties. Borrower agrees that the Lender’s act of recording the Deed same shall not create any obligations on the part of Lender to third-party claims of any kind whatsoever against Borrower with respect to the Property, and Lender does not assume or agree to discharge any liabilities pertaining to the Property except as otherwise agreed to in writing by the Lender.

 

9.      Entire Agreement. The Agreement contains the sole and entire understanding between the parties hereto, there being no other collateral or outside agreements, promises, or undertakings between the parties to this Agreement relating to the subject matter thereof, and the terms of the Agreement may be modified only by a writing that has been signed by all parties hereto.

 

10.    Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, and their respective heirs, administrators, executors, personal representatives, successors, and assigns of the parties hereto.

 

11.    Authority. Each of the parties hereto represent and warrant that the respective undersigns have the right and legal authority to execute this Agreement, are authorized to sign this Agreement on behalf of their respective entity, and have not sold, assigned, transferred, conveyed, or otherwise disposed of any of the rights, interests, claims, obligations, or causes of action relating to the subject matter of this Agreement.

 

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12.    Counsel. The Parties have carefully read the Agreement, have had the opportunity to seek the advice of counsel regarding its contents, know and understand the contents thereof, and sign the Agreement as their own free act and deed.

 

13.    Enforceability. If any one or more of the provisions of the Agreement are deemed to be invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions contained in the Agreement shall not be affected or impaired.

 

14.    Choice of Law. The Agreement shall be construed and interpreted in accordance with the laws of the State of Minnesota.

 

15.    Captions. The captions, section numbers, and article numbers appearing in this Agreement are inserted only as a matter of convenience and do not define, limit, construe, or describe the scope or intent of such paragraphs or articles of this Agreement nor in any way affect this Agreement.

 

IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto have executed this Agreement as of the day and year first above written.

	 	 	 	 	 	 
	

	 	BORROWER: 

SHELDON A. MAYER, LLC	 
	 	 	 	 
	 	By: 		 
	 	 	 	 
	 	Name: 	Sheldon A. Mayer	 
	 	 	Its: 	Chief Manager	 
	 	 	 	 	 
	 	 	
LENDER:

PRO-DEX SUNFISH LAKE, LLC

	 
	 	 	 	 	 
	 	 	
By: 

		 
	 	 	 	 	 
	 	 	Name:	Richard L. Van Kirk	 
	 	 	
Its: 

	President	 
	 	 	 	 	 
	

	 	
GUARANTOR:

	 
	 		 
	 	Sheldon A. Mayer	 

 

    	5

    	 

    
 

 

EXHIBIT A

 

Legal Description

 

    	  

    	 

    
 

 

The East 500 feet of the South 200 feet (as measured along the East and South lines respectively) of the Northeast Quarter of the Southeast Quarter (NE 1/4 of SE 1⁄4) of Section numbered Twenty-seven (27), Township Thirty-two (32) North of Range Twenty-five (25) West.

 

Subject to an easement for Road purposes over the North 33 feet thereof and over the East 92 feet thereof.

 

RESERVING FOR THE BENEFIT OF THE GRANTOR, ITS SUCCESSORS AND ASSIGNS THE FOLLOWING DRAINAGE AND UTILITY AND INGRESS/EGRESS EASEMENTS

 

A permanent easement for drainage and utility purposes over, under and across the East 500 feet of the South 200 feet (as measured along the East and South lines respectively) of the Northeast Quarter of the Southeast Quarter (NE 1/4 of SE 1⁄4) of Section numbered Twenty-seven; Township Thirty-two North of Range Twenty-five West described as follows:

 

Commencing at the Southwest Corner of said East 500 feet of the South 200 feet; thence on an assumed bearing of North 00 degrees 25 minutes 08 seconds East, along the West line of said East 500 feet of the South 200 feet, a distance of 27.50 feet to the point of beginning; thence South 89 degrees 34 minutes 52 seconds East a distance of 56.00 feet; thence North 00 degrees 25 minutes 08 seconds East a distance of 53.00 feet; thence North 47 degrees 31 minutes 00 seconds West a distance of 28.00 feet; thence North 14 degrees 24 minutes 00 seconds West a distance of 24.00 feet; thence North 06 degrees 00 minutes 00 seconds East a distance of 78.20 feet to the North line of said East 500 feet of the South 200 feet; thence South 89 degrees 58 minutes 11 seconds West, along said North line, a distance of 36.68 feet to the Northwest Corner of said East 500 feet of the South 200 feet; thence South 00 degrees 25 minutes 08 seconds West, along said West line, a distance of 172.50 feet to the point of beginning.

 

AND

 

A 20 foot wide permanent easement for drainage and utility purposes over, under and across said East 500 feet of the South 200 feet (as measured along the East and South lines respectively) of the Northeast Quarter of the Southeast Quarter of Section numbered Twenty-seven, Township Thirty-two North of Range Twenty-five West. The centerline of said easement is described as follows:

 

Commencing at the Southwest Corner of said East 500 feet of the South 200 feet; thence on an assumed bearing of North 00 degrees 25 minutes 08 seconds East, along the West line of said East 500 feet of the South 200 feet, a distance of 98.19 feet; thence North 33 degrees 01 minutes 23 seconds East a distance of 58.49 feet to the point of beginning of the centerline to be described; thence continue North 33 degrees 01 minutes 23 seconds East a distance of 60.85 feet; thence North 89 degrees 58 minutes 08 seconds East a distance of 159.77 feet; thence South 78 degrees 01 minutes 47 seconds East a distance of 176.04 feet to a point hereinafter referred to as “Point A”; thence South 12 degrees 1l minutes 51 seconds East a distance of 164.00 feet and said centerline there terminating.

 

    	  

    	 

    
 

 

TOGETHER WITH a 20 foot wide permanent easement for drainage and utility purposes over, under and across said East 500 feet of the South 200 feet (as measured along the East and South lines respectively) of the Northeast Quarter of the Southeast Quarter of Section numbered Twenty-seven, Township Thirty-two North of Range Twenty-five West. The centerline of said easement is described as follows:

 

Beginning at the aforedescribed “Point A”; thence North 87 degrees 23 minutes 53 seconds East a distance of 55.00 feet and said described centerline there terminating.

 

AND

 

A
permanent 24 foot wide easement for ingress and egress purposes over, under and across the East 500 feet of the South 200 feet
(as measured along the East and South lines respectively) of the Northeast Quarter of the Southeast Quarter of Section numbered
Twenty-seven, Township Thirty-two North of Range Twenty-five West. The centerline of said easement is described as follows:

 

Commencing at the Northeast Corner of said East 500 feet of the South 200 feet; thence on an assumed bearing of South 00 degrees 25 minutes 08 seconds West, along the East line of said East 500 feet of the South 200 feet, a distance of 35.00 feet to the point of beginning of the centerline to be described; thence South 89 degrees 58 minutes 11 seconds West a distance of 163.27 feet; thence North 45 degrees 47 minutes 57 seconds West a distance of 32.97 feet; thence South 89 degrees 58 minutes 11 seconds West a distance of 277.42 feet and said centerline there terminating.

 

    	  

    	 

    
 

 

EXHIBIT B

 

Form of Deed

 

    	  

    	 

    
 

 

	 	  
	
(Top 3 inches reserved for recording data)

	
WARRANTY DEED

	  
	  	  
	
eCRV number: 344500

	  
	  	  
	
DEED TAX DUE: $1.65

	
DATE: May 8, 2015

 

FOR VALUABLE CONSIDERATION, Sheldon A. Mayer, LLC, a Minnesota limited liability company (“Grantor”), hereby conveys and warrants to Pro-Dex Sunfish Lake, LLC, a Delaware limited liability company (“Grantee”), real property in Anoka County, Minnesota, legally described as follows: See attached Exhibit A.

 

together with all hereditaments and appurtenances belonging thereto, subject to the following exceptions: (1) Delinquent real estate taxes payable in the year 2013; (2) delinquent real estate taxes payable in the year 2014; (3) Real Estate Mortgage executed by Sheldon A. Mayer, LLC, a Minnesota limited liability company, dated July 24, 2006, recorded July 27, 2006, as Document No. 488446.007, in favor of Vermillion State Bank, a Minnesota banking corporation, which mortgage was assigned to Pro-Dex Sunfish Lake, LLC, a Delaware limited liability company, by Assignment of Mortgage recorded December 5, 2014, as Document No. 527165.005; (4) Combination Mortgage, Security Agreement and Fixture Financing Statement executed by Sheldon A. Mayer, LLC, a Minnesota limited liability company, dated August 15, 2012, recorded September 10, 2012, as Document No. 510474.012, in favor of Heron Enterprises, LLC, a Minnesota limited liability company; and (5) Assignment of Leases and Rents executed by Sheldon A. Mayer, LLC, a Minnesota limited liability company, dated August 15, 2012, recorded September 10, 2012, as Document No. 510474.013, in favor of Heron Enterprises, LLC, a Minnesota limited liability company.

	  	  	  	  	  
	Check here if all or part of the described real property is Registered (Torrens) ☒
	Check applicable box:
	 	 	  	 
	
☒

	
The Seller certifies that the Seller does not know of any wells on the described real property.

	 	Grantor

Sheldon A. Mayer, LLC, a Minnesota limited liability company
	
☐

	
A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number:_____.)

	 	 	 
	
☐

	
I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate.

	 	
By:

	
	 	 	 	 	
Sheldon A. Mayer

	 	 	 	 	
Its: Chief Manager

	 	 	 	 	5-11-15
	 	 	 	 	Bonnie K McClain
	 	 	 	 	 
	 	 	 	 	

 

    	  

    	 

    
 

 

State of Minnesota, County of Anoka

 

This instrument was acknowledged before me on the 11 day of May, 2015, by Sheldon A. Mayer as Chief Manager of Sheldon A. Mayer, LLC, a Minnesota limited liability company, on behalf of the limited liability company.

	  	  	  	  
	(Stamp)	 	 	5-11-15

	 	 	 	 	 
		 	
	 	
(signature of notarial officer)

	 	 	 	 
	 	
Title (and Rank):

	Notary Public
	  	 	  
	  	
My commission expires:

	Jan 31-2020

	 	 	(month/day/year)
	  	  	  
	
THIS INSTRUMENT WAS DRAFTED BY:

	  	
TAX STATEMENTS FOR THE REAL PROPERTY DESCRIBED IN 

	  	  	
THIS INSTRUMENT SHOULD BE SENT TO:

	
BEST & FLANAGAN LLP

	  	  
	
225 South Sixth Street, Suite 4000

	  	
Pro-Dex Sunfish Lake, LLC

	
Minneapolis, Minnesota 55402

	  	
Attn: Richard L. Van Kirk, President

	
612.339.7121

	  	
2361 McGaw Avenue

	  	  	
Irvine, California 92614

 

    	  

    	 

    
 

 

 

 

EXHIBIT A

 

    	  

    	 

    
 

 

The East 500 feet of the South 200 feet (as measured along the East and South lines respectively) of the Northeast Quarter of the Southeast Quarter (NE 1/4 of SE 1⁄4) of Section numbered Twenty-seven (27), Township Thirty-two (32) North of Range Twenty-five (25) West.

 

Subject to an easement for Road purposes over the North 33 feet thereof and over the East 92 feet thereof.

 

RESERVING FOR THE BENEFIT OF THE GRANTOR, ITS SUCCESSORS AND ASSIGNS THE FOLLOWING DRAINAGE AND UTILITY AND INGRESS/EGRESS EASEMENTS

 

A permanent easement for drainage and utility purposes over, under and across the East 500 feet of the South 200 feet (as measured along the East and South lines respectively) of the Northeast Quarter of the Southeast Quarter (NE1/4 of SE 1⁄4) of Section numbered Twenty-seven; Township Thirty-two North of Range Twenty-five West described as follows:

 

Commencing at the Southwest Corner of said East 500 feet of the South 200 feet; thence on an assumed bearing of North 00 degrees 25 minutes 08 seconds East, along the West line of said East 500 feet of the South 200 feet, a distance of 27.50 feet to the point of beginning; thence South 89 degrees 34 minutes 52 seconds East a distance of 56.00 feet; thence North 00 degrees 25 minutes 08 seconds East a distance of 53.00 feet; thence North 47 degrees 31 minutes 00 seconds West a distance of 28.00 feet; thence North 14 degrees 24 minutes 00 seconds West a distance of 24.00 feet; thence North 06 degrees 00 minutes 00 seconds East a distance of 78.20 feet to the North line of said East 500 feet of the South 200 feet; thence South 89 degrees 58 minutes I1 seconds West, along said North line, a distance of 36.68 feet to the Northwest Corner of said East 500 feet of the South 200 feet; thence South 00 degrees 25 minutes 08 seconds. West, along said West line, a distance of 172.50 feet to the point of beginning.

 

AND

 

A
20 foot wide permanent easement for drainage
and utility purposes over, under and across said East 500 feet of the South 200 feet (as measured along the East and South
lines respectively) of the Northeast Quarter of the Southeast Quarter of Section numbered Twenty-seven, Township Thirty-two
North of Range Twenty-five West. The centerline of said easement is described as follows:

 

Commencing at the Southwest Corner of said East 500 feet of the South 200 feet; thence on an assumed bearing of North 00 degrees 25 minutes 08 seconds East, along the West line of said East 500 feet of the South 200 feet, a distance of 98.19 feet; thence North 33 degrees 01 minutes 23 seconds East a distance of 58.49 feet to the point of beginning of the centerline to be described; thence continue North 33 degrees 01 minutes 23 seconds East a distance of 60.85 feet; thence North 89 degrees 58 minutes 08 seconds East a distance of 159.77 feet; thence South 78 degrees 01 minutes 47 seconds East a distance of 176.04 feet to a point hereinafter referred to as “Point A”; thence South 12 degrees l1 minutes 51 seconds East a distance of 164.00 feet and said centerline there terminating.

 

    	  

    	 

    
 

 

TOGETHER WITH a 20 foot wide permanent easement for drainage and utility purposes over, under and across said East 500 feet of the South 200 feet (as measured along the East and South lines respectively) of the Northeast Quarter of the Southeast Quarter of Section numbered Twenty-seven, Township Thirty-two North of Range Twenty-five West. The centerline of said easement is described as follows:

 

Beginning at the aforedescribed “Point A”; thence North 87 degrees 23 minutes 53 seconds East a distance of 55.00 feet and said described centerline there terminating.

 

AND

 

A permanent 24 foot wide easement for ingress and egress purposes over, under and across the East 500 feet of the South 200 feet (as measured along the East and South lines respectively) of the Northeast Quarter of the Southeast Quarter of Section numbered Twenty-seven, Township Thirty-two North of Range Twenty-five West. The centerline of said easement is described as follows:

 

Commencing at the Northeast Corner of said East 500 feet of the South 200 feet; thence on an assumed bearing of South 00 degrees 25 minutes 08 seconds West, along the East line of said East 500 feet of the South 200 feet, a distance of 35.00 feet to the point of beginning of the centerline to be described; thence South 89 degrees 58 minutes 11 seconds West a distance of 163.27 feet; thence North 45 degrees 47 minutes 57 seconds West a distance of 32.97 feet; thence South 89 degrees 58 minutes 11 seconds West a distance of 277.42 feet and said centerline there terminating.

 

    	  

    	 

    
 

 

EXHIBIT C

 

Assignment and Bill of Sale

 

    	  

    	 

    
 

 

ASSIGNMENT AND BILL OF SALE

 

 

Date: May 7, 2015.

 

Sheldon A. Mayer, LLC, a Minnesota limited liability company, for good and valuable consideration, the receipt of which is acknowledged, hereby sells, assigns and transfers to Pro-Dex Sunfish Lake, LLC, a Delaware limited liability company, all of its rights, title and interest in and to the following property pursuant to that certain Deed and Settlement Agreement between Sheldon A. Mayer. LLC and Pro-Dex Sunfish Lake, LLC dated May 4, 2015 (the “Agreement”):

	  	  	  
	  	
 (a)

	
All receivables, of any type and in any amount owed by any third-party to Sheldon A. Mayer, LLC, including, but not limited to, all rent owing on account of any occupancy by Riverside Manufacturing, Inc. or any other tenant at the real property located at 14280 Sunfish Lake Boulevard NW, Ramsey, Minnesota 55303 (the “Property”); and

	  	  	  
	  	
 (b)

	
All equipment, machinery, fixtures, and other items of tangible personal property located at the Property.

 

This Assignment and Bill of Sale is made pursuant to the Agreement, and all limitations, representations, warranties and covenants contained in the Agreement are incorporated into this Assignment and Bill of Sale by this reference.

 

Sheldon A. Mayer, LLC shall cooperate with Pro-Dex Sunfish Lake, LLC and execute such additional documents as may reasonably be necessary to carry out the purposes and intent of this Assignment and Bill of Sale.

 

This Assignment and Bill of Sale shall inure to the benefit of Pro-Dex Sunfish Lake, LLC and its successors and assigns.

 

This Assignment is executed by Sheldon A. Mayer, LLC as of the date set forth above.

	  	  	  	  	  
	

	  	
SHELDON
A. MAYER, LLC:

 

	  
	  	  	  	  
	  	
By:

	
Sheldon A. Mayer

	  
	  	
Its:

	
Chief ManagerEX-4.1

 Exhibit 4.1 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 UNLESS AND UNTIL THIS CERTIFICATE IS EXCHANGED IN WHOLE OR IN PART
FOR NOTES IN CERTIFICATED FORM, THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH
SUCCESSOR. 
  

			
	 REGISTERED

NO. 001
		 REGISTERED

PRINCIPAL AMOUNT

		
	 CUSIP No. 26884A BD4
		$450,000,000

 ERP OPERATING LIMITED PARTNERSHIP 

3.375% Notes due June 1, 2025 

ERP Operating Limited Partnership, an Illinois limited partnership (the “Issuer,” which term includes any successor under the
Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co. or registered assigns, the principal sum of Four Hundred Fifty Million Dollars on June 1, 2025 (the “Maturity Date”), and to pay
interest thereon from May 14, 2015 (or from the most recent Interest Payment Date to which interest has been paid or duly provided for), semi annually in arrears on June 1 and December 1 of each year (each, an “Interest Payment
Date”), commencing on December 1, 2015, and on the Maturity Date, at the rate of 3.375% per annum, until payment of said principal sum has been made or duly provided for. 

The interest so payable and punctually paid or duly provided for on any Interest Payment Date and on the Maturity Date will be paid to the
Holder in whose name this Note (or one or more predecessor Notes) is registered at the close of business on the “Record Date” for such payment, which will be the May 15 or November 15 next preceding such Interest Payment Date, or
the Maturity Date, as the case may be. Any interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Record Date, and shall be paid to the Holder in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on a subsequent record date for the payment of such defaulted interest (which shall be not more than 15 days and not less than 10 days) prior to the date of the payment of such defaulted
interest) established by notice given by mail by or on behalf of the Issuer to the Holders of the Notes not less than ten days preceding such subsequent record date. Interest on this Note will be computed on the basis of a 360-day year of twelve
30-day months. 
 The principal of this Note payable on the Maturity Date will be paid against presentation and surrender of this Note at
the office or agency of the Issuer maintained for that purpose in the Borough of Manhattan, the City of New York. The Issuer hereby initially designates the Corporate Trust Office of the Trustee in the City of Chicago, and the office or agency of
the Trustee in the Borough of Manhattan, the City of New York, as the offices to be maintained by it where Notes may be presented for payment, registration of transfer or exchange and where notices or demands to or upon the Issuer in respect of the
Notes or the Indenture referred to on the reverse hereof may be served. 
 Interest payable on this Note on any Interest Payment Date and on
the Maturity Date, as the case may be, will be the amount of interest accrued from and including the immediately preceding Interest Payment Date (or from and including May 14, 2015, in the case of the initial Interest Payment Date) to but
excluding the applicable Interest Payment Date or the Maturity Date, as the case may be. If any Interest Payment Date other than the Maturity Date would otherwise be a day that is not a Business Day (as defined below), such Interest Payment Date
will be postponed to the 

 
succeeding Business Day. If the Maturity Date falls on a day that is not a Business Day, principal and interest payable on the Maturity Date will be paid on the succeeding Business Day with the
same force and effect as if it were paid on the date such payment was due, and no interest will accrue on the amount so payable for the period from and after the Maturity Date. “Business Day” means any day, other than a Saturday or Sunday,
that is neither a legal holiday nor a day on which banking institutions in the City of New York or the City of Chicago are authorized or required by law, regulation or executive order to close. 

Payments of principal and interest in respect of this Note will be made to the registered Holder of this Note in such coin or currency as at
the time of payment is legal tender for the payment of public and private debts. 
 Reference is made to the further provisions of this Note
set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though fully set forth at this place. 

This Note shall not be entitled to the benefits of the Indenture referred to on the reverse hereof or be valid or become obligatory for any
purpose until the certificate of authentication hereon shall have been signed by the Trustee under such Indenture. 

*    *    *    *    * 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed manually or by facsimile
by its duly authorized officers. 
  

							
	Dated:             , 2015				ERP OPERATING LIMITED PARTNERSHIP, as Issuer
				
					By:		EQUITY RESIDENTIAL,
							not individually but as General Partner
				
					By:		  

							Mark J. Parrell
					Its:		Executive Vice President and Chief Financial Officer
				
					By:		  

							Bruce C. Strohm
					Its:		Executive Vice President, General Counsel and Corporate Secretary

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated herein referred to in the within-mentioned Indenture. 

 

							
	Dated:             , 2015				THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
				
					By:		  

							Authorized Signatory

 [REVERSE OF NOTE] 

ERP OPERATING LIMITED PARTNERSHIP 

3.375% Notes due June 1, 2025 

This Note is one of a duly authorized issue of debentures, notes, bonds, or other evidences of indebtedness of the Issuer (hereinafter called
the “Securities”) of the series hereinafter specified, all issued or to be issued under and pursuant to (i) an Indenture dated as of October 1, 1994 as supplemented from time to time (herein called the “Indenture”),
duly executed and delivered by the Issuer to The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.) (as successor to J.P. Morgan Trust Company, National Association, as successor to Bank One
Trust Company, N.A., as successor to The First National Bank of Chicago) as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture with respect to the series of Securities of which this Note is
a part), and (ii) an Officers’ Certificate dated the date hereof (the “Officers’ Certificate”), duly executed by authorized officers of the Issuer, pursuant to Section 301 of the Indenture to which Officers’
Certificate and Indenture and all Indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties, and immunities thereunder of the Trustee, the Issuer, and the Holders of the
Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. The Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at
different times, may bear interest (if any) at different rates, may be subject to different redemption provisions (if any), and may otherwise vary as provided in the Indenture. This Note is one of a series designated as the 3.375% Notes due
June 1, 2025 of the Issuer (the “Notes”). Subject to being increased by the Issuer pursuant to an Officers’ Certificate, the Notes are limited in aggregate principal amount to $450,000,000 (except as provided in the Indenture).

 If an Event of Default with respect to the Notes occurs and is continuing, the principal hereof and Make-Whole Amount (if any) may be
declared, and upon such declaration shall become, due and payable, in the manner, with the effect, and subject to the conditions provided in the Indenture. 

Prior to March 1, 2025, the Issuer may redeem the Notes, at any time in whole or from time to time in part, at the election of the
Issuer, at a redemption price equal to the sum of (i) the principal amount of the Notes being redeemed plus accrued interest thereon to the Redemption Date and (ii) the Make-Whole Amount, if any, with respect to the Notes. For purposes of
the Notes, the Reinvestment Rate will be determined using 0.20% as specified in the Officers’ Certificate in lieu of the percentage contained in the Indenture. On or after March 1, 2025, the Issuer may redeem the Notes, at any time in
whole or from time to time in part, at the election of the Issuer, at a redemption price equal to the principal amount of the Notes being redeemed plus accrued interest thereon to the Redemption Date. Notice of any optional redemption of any Notes
will be given to Holders at their addresses, as shown in the Security Register, not more than 45 nor less than 15 days prior to the date fixed for redemption. The notice of redemption will specify, among other items, the redemption price and the
principal amount of the Notes held by such Holder to be redeemed. 
 The Indenture contains provisions for defeasance of (i) the entire
indebtedness of the Notes or (ii) certain covenants (specifically including the covenants in the third supplemental indenture dated as of June 4, 2007, by and between the Issuer and the Trustee, as modified by the fourth supplemental
indenture dated as of December 12, 2011, by and between the Issuer and the Trustee) and events of default with respect to the Notes in the Indenture in each case upon compliance with Article Fourteen of the Indenture, which provisions apply to
the Notes. 
 The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of the Holders of not less than a
majority of the aggregate principal amount of all Outstanding Securities affected by such supplemental indenture, to execute supplemental Indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the
Indenture or modifying in any manner the rights of the Holders of Securities under the Indenture; provided, however, that no such supplemental Indenture shall, without the consent of the Holder of each Outstanding Security so affected,
(i) change the stated maturity of the principal of (or premium, if any), or any installment of principal of or interest on, any Security, (ii) reduce the principal amount of, or the rate or amount of interest on, or premium payable upon
the redemption of, any Security, (iii) change the place of payment, or the currency, for payment of principal of any Security or any premium or interest on any Security, (iv) impair the right to institute suit for the

  
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enforcement of any payment on or with respect to any Security on or after the stated maturity thereof (or in the case of redemption, on or after the redemption date), (v) reduce the
above-stated percentage of Outstanding Securities of any series necessary to modify or amend the Indenture, to waive compliance with certain provisions thereof or certain defaults and consequences thereunder or to reduce the quorum or voting
requirements set forth in the Indenture, or (vi) modify any of the foregoing provisions or any provisions relating to the waiver of certain past defaults or certain covenants, except to increase the required percentage to effect such action or
to provide that certain other provisions may not be modified or waived without the consent of the Holders or each Outstanding Security affected thereby. It is also provided in the Indenture that, with respect to certain defaults or Events of Default
regarding the Securities of any series, the Holders of not less than a majority in aggregate principal amount outstanding of the Securities of such series may on behalf of the Holders of all the Securities of such series waive any such past default
or Event of Default and its consequences, prior to any declaration accelerating the maturity of such Securities; or, subject to certain conditions, may rescind a declaration of acceleration and its consequences with respect to such Securities. Any
such consent or waiver by the Holder of this Note (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners of this Note and any securities that may be issued in exchange or
substitution herefor, irrespective of whether or not any notation thereof is made upon this Note or such other securities. 
 No reference
herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and any Make-Whole Amount and interest on this Note in the
manner, at the respective times, at the rate and in the coin or currency herein prescribed. 
 This Note is issuable only in registered form
without coupons in denominations of $1,000 and integral multiples thereof. Securities may be exchanged for a like aggregate principal amount of Securities of this series of other authorized denominations at the office or agency of the Issuer
maintained for that purpose at the Corporate Trust Office of the Trustee in the City of Chicago, and the office or agency of the Trustee in the Borough of Manhattan, the City of New York, in the manner and subject to the limitations provided in the
Indenture, but without the payment of any service charge except for any tax or other governmental charge imposed in connection therewith. 

Upon due presentment for registration of transfer of Securities at the office or agency of the Issuer maintained for that purpose at the
Corporate Trust Office of the Trustee in the City of Chicago, or the office or agency of the Trustee in the Borough of Manhattan, the City of New York, a new Security or Securities of the same series of authorized denominations in an equal aggregate
principal amount will be issued to the transferee in exchange therefor, subject to the limitations provided in the Indenture, without charge except for any tax or other governmental charge imposed in connection therewith. 

The Issuer, the Trustee, and any authorized agent of the Issuer or the Trustee may deem and treat the Person in whose name this Note is
registered as the absolute owner of this Note (whether or not this Note shall be overdue and notwithstanding any notation of ownership or other writing hereon), for the purpose of receiving payment of, or on account of, the principal hereof and
Make-Whole Amount, if any, and subject to the provisions on the face hereof, interest hereon, and for all other purposes, and neither the Issuer nor the Trustee nor any authorized agent of the Issuer or the Trustee shall be affected by any notice to
the contrary. 
 The Issuer is the sole obligor under the Notes and neither Equity Residential nor any subsidiary of the Issuer has any
obligation for payment (principal, interest, premium, if any, or other) on the Notes. 
 The Indenture and each Security shall be deemed to
be a contract under the laws of the State of New York, and for all purposes shall be governed by and construed in accordance with the law of the State of New York. 

Terms used herein that are defined in the Indenture shall have the respective meanings assigned thereto in the Indenture. 

  
 5

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