Document:

EXHIBIT 10.2

 

GUARANTY
AGREEMENT

 

THIS GUARANTY AGREEMENT, (the “Agreement”) is
made as of March 31, 1989 between NTS Mortgage Income Fund (the “Fund”)
and NTS Guaranty Corporation (the “Guarantor”). 
All capitalized terms used herein shall have the meaning set forth in
the Fund’s Registration Statement No. 33-25217, as amended, filed with the
Securities and Exchange Commission on Form S-11.

 

WITNESSETH

 

                WHEREAS, the Fund has filed the Registration Statement, covering its
shares of common stock, par value $0.001 per share, to be offered to the
public, and the Fund may thereafter sell additional securities or otherwise
raise additional capital; and

 

                WHEREAS, the Fund intends to qualify as a “real estate investment
trust,” as defined in the Code, and to invest its funds in investments
permitted in the Prospectus and Sections 856-860 of the Code; and

 

                WHEREAS, the Fund intends to make Mortgage Loans to, among others,
Affiliated Borrowers; and

 

                WHEREAS, the Fund is willing to make such Mortgage Loans only on the
condition, among others that the Guarantor execute and deliver these Guatanties
described herein.

 

                NOW, THEREFORE, in consideration of the premises and the covenants
hereinafter contained, it is agreed as follows:

 

                A.  Escrow Guaranty.  The Guarantor has agreed to pay the Fund’s
subscribers, directly or indirectly, the amount necessary to supplement the
cash generated by investing the Fund’s Gross Proceeds in the escrow account or
in temporary investments so as to provide subscribers with a return on their
Original Capital Contributions equal to an 8.0% per annum, noncompounded, for
the period from the date the subscriber’s proceeds were deposited in the escrow
account through the 89th day following the Initial Closing Date or,
if the Minimum Number of Shares are not sold through the date on which the
proceeds are released from the escrow account. 
To the extent the Fund’s investments yield more than such an 8.0% return
to the subscribers, the excess will be applied to amounts otherwise due under
the Cash Flow Guaranty.  Any amount so
provided pursuant to the Escrow Guaranty will be repaid in the event funds are
available after satisfaction of the Cash Flow Guaranty and the requirements of
the Code relating to REIT qualification.

 

                B.  Cash Flow Guaranty.  The Guarantor will provide the Affiliated
Borrowers with funds sufficient to make any payments of Supplemental Interest
necessary to enable the Fund to make quarterly distributions to Stockholders
equal to an annual 12% noncompound return on their Original Capital
Contributions for the period beginning on the 90th day following the
Initial Closing Date and terminating upon the later of two years thereafter or
one year from the Offering Termination Date. 
The Fund agrees that in the event the Guarantor pays any money pursuant
to the Cash Flow Guaranty, such amounts will be credited against 50% of the
amounts later due by the Affiliated Borrowers as Incentive or Gross Receipts
Interest, thereby reducing the amount of Incentive or Gross Receipts the Fund will
receive from Affiliated Borrowers in later years.

 

                C.  Junior Mortgage Loan
Guaranty.  The Guarantor hereby
unconditionally and irrevocably guarantees to the Fund, and its successors,
endorsees, transferees and assigns, that, in the event any Junior or Temporary
Mortgage Loan made to any Affiliated Borrower should become a Defaulted Junior
or Temporary Mortgage Loan (as defined below), the Guarantor will make payment
to the Fund of the Principal amount of the Junior or Temporary Mortgage Loan.  The Guarantor’s obligation hereunder is
limited to the Principal balance outstanding on the Junior or Temporary
Mortgage Loan and does not include the Interest Reserve.  A “Defaulted Mortgage Loan” is a Junior or
Temporary Mortgage Loan on which an Affiliated Borrower has defaulted on the
repayment of Principal when due, or defaults on the payment of interest or
other payment which default gives rise to the acceleration of such Junior or
Temporary Mortgage Loan.  The Guarantor
shall make payment on any such Defaulted Junior or Temporary Mortgage Loan
within ten days after written demand to do so by the Fund.

 

 

                D.  Purchase Price Guaranty.   The Guarantor has guaranteed that
Stockholders will receive during the life of the Fund aggregate distributions
from all sources in an amount at least equal to their Original Capital
Contributions without regard to the source of characterization of such cash
flow.  Any amount due pursuant to the
Purchase Price Guaranty will be paid promptly after the complete dissolution
and liquidation of the Fund and the distribution of the proceeds from the sale
of its assets to Stockholders.

 

                E.  Limitation.  The Escrow Guaranty, the Cash Flow Guaranty,
the Junior Mortgage Loan Guaranty and the Purchase Price Guaranty are binding
on the Guarantor, but are limited to its assets.

 

                F.  Delegation.  The Guarantor shall have the right to
delegate and be released from its obligations under this Agreement; provided,
however:  (i) that no delegation
shall be effective to release the Guarantor from its obligations hereunder
unless the delegate shall have a net worth at least equal to $10,000,000 and (ii) a
majority of the Independent Directors of the Fund shall consent to such
delegation and release.

 

                G.  Termination.   If the Advisory Agreement is terminated
without the consent of the Advisor, the obligations of the Guarantor under this
Agreement will immediately terminate, but will remain in effect with regard to
any Junior or Temporary Mortgage Loan having been made by the Fund to an
Affiliated Borrower as of the date of such termination.

 

                H.  Governing Law.  This instrument and the rights and
obligations of all parties hereunder shall be governed by and construed under
the substantive laws of the State of Kentucky, without regard to conflicts of law
or rules.

 

                IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date set forth above.

 

	
  NTS
  GUARANTY CORPORATION

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/    W.D.
  Parr

  
	
   

  	
  W.D. Parr

  
	
   

  	
  Its:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  
	
  NTS
  MORTGAGE INCOME FUND

  
	
   

  	
   

  
	
  By:

  	
  /s/    R.L. Good

  
	
   

  	
  R.L. Good

  
	
   

  	
  Its:

  	
  Executive Vice
  PresidentEXHIBIT 10.3

 

DEMAND PROMISSORY
NOTE

 

	
  $10,000,000.00

  	
   

  	
  Louisville, Kentucky

  
	
   

  	
   

  	
  September 30, 1988

  

 

FOR VALUE RECEIVED, the undersigned Maker,
J.D. NICHOLS, (“Maker”), hereby promises and agrees to pay on demand to the
order of NTS GUARANTY CORPORATION, a Kentucky Corporation (“Payee”), in legal
tender of the United States of America, the principal sum of TEN MILLION
DOLLARS ($10,000,000.00), or so much thereof as may be demanded hereunder from
time to time.

 

All payments made by the Maker to the Payee
hereunder shall represent an additional capital contribution made by the Maker
to the Payee.

 

Failure of the holder hereof to exercise any
of its rights and remedies shall not constitute a Waiver of its right to
exercise the same at that or any other time. 
All rights and remedies of the holder hereof upon default hereunder
shall be cumulative to the greatest extent permitted by law.  Time shall be of the essence in the payment
of the principal due on this Note.

 

This Note has been delivered in, and shall be
governed by, and construed in accordance with, the laws of the Commonwealth of
Kentucky.

 

The Maker hereby waives presentment, demand,
notice of dishonor, protest, notice of protest, and further waives all
exemptions to which it may be now or hereafter be entitled under the laws of
this or any other state or of the United States.

 

IN TESTIMONY WHEREOF, the Maker has executed
and delivered this Note as of the day and year first above written.

 

	
  J.D. Nichols

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/     J.D.
  NicholsExhibit 4.10

 

PROMISSORY NOTE EXTENSION

 

	
  Principal Amount:

  	
  $1,500,000

  	
   

  	
   

  	
  Original Note Date: October 31, 2003

  

 

FOR VALUE
RECEIVED, PHOTONIC PRODUCTS GROUP, INC., a New Jersey corporation (hereinafter
called "Issuer"), hereby promises to pay to the order of CLAREX, Ltd.
and its successors and assigns (hereinafter called the "Holder"), at
such address as the Holder may designate in writing to Issuer, the principal
sum of ONE MILLION FIVE HUNDERED THOUSAND DOLLARS ($1,500,000) plus all accrued
interest owing hereunder in lawful money of the United States of America on or
before the Maturity Date (as defined below). 
For purposes of this Note, "Maturity Date" shall be extended
from December 31, 2008 to April 1, 2009.

 

At the option of
CLAREX, Ltd., the note and all accrued interest owing at the time of maturity
may be repaid in lawful money of the United States of America and/or a
combination of shares of the Common Stock of Photonic Products Group, Inc. as
proscribed under the terms of the Note.

 

IN WITNESS WHEREOF, Issuer has
caused this Note Extension to be signed in its name by its duly authorized
officer and its corporate seal to be affixed hereto.

 

	
   

  	
   

  	
  PHOTONIC PRODUCTS GROUP, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/William J. Foote

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  February 15,
  2008Exhibit 4.11

 

PROMISSORY NOTE EXTENSION

 

	
  Principal
  Amount:

  	
  $1,000,000

  	
   

  	
   

  	
  Original
  Note dated December 31, 2002

  

 

 

FOR VALUE RECEIVED, PHOTONIC
PRODUCTS GROUP, INC., a New Jersey corporation (formerly INRAD, INC.,
hereinafter called "Issuer"), hereby promises to pay to the order of
WELLAND, LTD. and its successors and assigns (hereinafter called the
"Holder"), at such address as the Holder may designate in writing to
Issuer, the principal sum of ONE MILLION DOLLARS ($1,000,000) plus all accrued
interest owing hereunder in lawful money of the United States of America on or
before the Maturity Date (as defined below). 
For purposes of this Note, "Maturity Date" shall be extended
from December 31, 2008 to April 1, 2009.

 

At the option of Holder,
WELLAND, LTD., the note and all accrued interest owing at the time of maturity
may be repaid in lawful money of the United States of America and/or a
combination of shares of the Common Stock of, and Warrants to purchase the
Common Stock of, Photonic Products Group, Inc., as proscribed under the terms
of the Note.

 

Holder shall be entitled to
payment of any or all accrued interest, upon request, in cash or securities at
the option of the Holder, provided notice of such request is delivered to the
issuer with in 45 days prior to the request date.

 

IN WITNESS WHEREOF, Issuer has
caused this Note Extension to be signed in its name by its duly authorized
officer and its corporate seal to be affixed hereto.

 

	
   

  	
   

  	
  PHOTONIC
  PRODUCTS GROUP, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/William
  J. Foote

  
	
   

  	
   

  	
   

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  February 15,
  2008

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