Document:

Exhibit 10.114

 

FIRST MODIFICATION
AGREEMENT

 

THIS  FIRST
MODIFICATION AGREEMENT (this “Agreement”) is made and entered into this 19th
day of  August, 2003, by and among
MONROE OUTLET CENTER, LLC, a Michigan limited liability company (“Borrower),  HORIZON GROUP PROPERTIES, INC., a Maryland
corporation (“HGPI”), HORIZON GROUP PROPERTIES, L.P., a Delaware limited
partnership (“HGPLP”; HGPI and HGPLP and Prime are herein collectively referred
to as the “Guarantors”), and BEAL BANK, S.S.B., a savings bank organized under
the laws of the State of Texas (“Lender”).

 

W I T N E S S E T H:

 

A.            Lender has heretofore made a loan in
the maximum principal amount of $7,000,000.00 (the “Loan”) to Borrower, which
Loan is evidenced by that certain Promissory Note I, in the stated principal
amount of $3,000,000.00 and that certain Promissory Note II, in the stated
principal amount of $4,000,000.00 (collectively, the “Notes”), each dated as of
July 10, 2002, each executed and delivered by Borrower and each payable to the
order of Lender.

 

B.            The Loan and the Notes are secured
by, among other things,  those certain Commercial Mortgages (the
“Mortgages”), each dated as of July 10, 2002, each executed and delivered by
Borrower for the benefit of Lender, which encumber, among other things, certain
real property located in Monroe and Muskegan Counties, Michigan and more
particularly described in the Mortgages and all improvements and fixtures
thereon (the “Property”), and which have been recorded, respectively in Liber
2254, beginning at Page 83 in the Register of Deeds of Monroe County,
Michigan  and in Liber 3457, beginning
at Page 506 in the Register of Deeds of Muskegan County, Michigan.

 

C.            The (and Prime Retail, L.P.) have
guaranteed the payment and performance of the obligations of Borrower in regard
to the Loan pursuant to that certain Guaranty Agreement, dated July 10, 2002,
executed by Guarantors (and Prime Retail, L.P.) for the benefit of Lender.

 

D.            Borrower has requested that Lender
agree to release a portion of the Property from the Mortgages and the other
Loan Documents, as such term is defined in the Mortgages and Lender has agreed
to do so provided certain conditions are satisfied.  One of such conditions is that this Agreement is entered into.

 

NOW, THEREFORE,
for and in consideration of the premises, the mutual covenants and agreements
herein contained, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged and confessed by each of the
parties hereto, the parties hereto hereby agree as follows:

 

1.             The Notes, the Mortgages and the
other Loan Documents are hereby modified to provide that the occurrence of an
Event of Default, as such term is defined in that certain Adjustable Rate
Mortgage, Security Agreement and Assignment of Leases and Rents, dated as of
October 27, 1999, executed by Huntley Development Limited Partnership (“HDLP”),
an affiliate of Borrower, for the benefit of Lender and which has been recorded
as Document No. 1999K103679 in the Records of Kane

 

1

 

County, Illinois, and in
that certain Mortgage, Security Agreement and Assignment of Leases and Rents,
of even date herewith, executed by HDLP for the benefit of Lender and which is
to be recorded in the Records of Kane County, Illinois, and which secures the
Loan, will constitute an Event of Default under the Note, the Mortgages and the
other Loan Documents.

 

2.             As of the date hereof, the unpaid
principal balance of the Loan and the Notes (prior to the application of the
$2,000,000.00 principal prepayment being made by Borrower as a result of the
sale of the portion of the Property which is being released by Lender) is
$7,000,000.00. Borrower has no right to request or receive, and Lender has no
obligation to make, any additional advance or readvance of any proceeds of the
Loan.

 

3.             Lender hereby confirms and agrees
that upon its unconditional receipt of the $2,000,000.00 principal prepayment
described in Section 2 above (which will reduce the outstanding principal
balance of the Loan to $5,000,000.00), Prime Retail, L.P. will have no further
liability under the Guaranty.  Borrower
and the Guarantors confirm their agreement that Prime Retail, L.P. will have no
further liability under the Guaranty upon such reduction of the outstanding
principal balance of the Loan to $5,000,000.00, and that the failure of Prime
Retail, L.P. to join in the execution hereof does not affect their liability or
obligations in regard to the Loan or the validity, enforceability or binding effect
of this Agreement.

 

4.             As a material inducement to Lender
to enter into this Agreement, Borrower and Guarantors, each on behalf of itself
and its successors, assigns, legal representatives and constituents (whether or
not a party hereto) (Borrower, Guarantors and such successors, assigns, legal
representatives and constituents being referred to herein collectively and
individually, as “Obligors, et al.”), hereby fully, finally and completely
RELEASE and FOREVER DISCHARGE Lender and its successors, assigns, affiliates,
subsidiaries, parents, officers, shareholders, directors, employees, attorneys
and agents, past, present and future, and their respective heirs, successors
and assigns (collectively and individually, “Lender, et al.”) of and from any
and all claims, controversies, disputes, liabilities, obligations, demands,
damages, expenses (including, without limitation, reasonable attorneys’ fees),
debts, liens, actions and causes of action of any and every nature whatsoever
and WAIVE and RELEASE any defense, right of counterclaim, right of set-off
or deduction to the payment of the indebtedness evidenced by the Notes and/or
the Mortgages and/or the Guaranty and/or any of the other Loan Documents which
Obligors, et al. now have or may claim to have against Lender, et al. arising
out of, connected with or relating to any and all acts, omissions or events
occurring prior to the execution of this Agreement.

 

5.             As an additional material
inducement to Lender to enter into this Agreement, Borrower and Guarantors
hereby represent and warrant to Lender that:

 

(a)                                  as
of the date hereof, the Notes, the Mortgages, the Guaranty and the other Loan
Documents, as modified hereby, are in full force and effect and are not in
default and as of the date hereof, there is no default or failure to perform on
the part of the Lender in regard to the Loan and neither Borrower nor any
Guarantor has any defense, counterclaim or offset to either Note, either
Mortgage, the Guaranty or any of the other Loan Documents, as modified hereby;

 

(b)                                 the
representations and warranties of Borrower and/or Guarantors set forth in the
Notes, the Mortgages, the Guaranty and/or any of the other Loan Documents are
true and correct

 

2

 

in all
material respects as of the date hereof and are hereby reaffirmed as if such
representations and warranties had been made on the date hereof and shall
continue in full force and effect; and

 

(c)                                  this
Agreement constitutes the legal, valid and binding obligation of Borrower and
each Guarantor enforceable against Borrower and each Guarantor in accordance
with the terms hereof, except as such enforceablility may be effected by
bankruptcy and other debtor relief laws.

 

The
representations and warranties of Borrower and Guarantors contained in this
Agreement shall survive the consummation of the transactions contemplated by
this Agreement.

 

6.             On demand, Borrower shall pay to
Lender all closing costs and fees and expenses incurred by Lender in connection
with this Agreement and the transactions contemplated hereby, including,
without limitation, Lender’s reasonable attorneys’ fees and expenses.  In addition, Borrower will cause to be
issued to Lender concurrently with the execution and delivery hereof, an
endorsement (in form acceptable to Lender) to the loan policy of title
insurance (the “Policy”) issued to Lender in connection with the Loan and
insuring the first priority status of the Mortgages, confirming that such
Policy remains in effect in regard to the Mortgages,as modified hereby.  The cost of such endorsement to the Policy
shall be paid by Borrower.

 

7.             In
addition to the documents, instruments and acts described in this Agreement and
which are to be executed and/or delivered and/or taken pursuant to this
Agreement, Borrower and Guarantors agree to execute and deliver from time to
time upon request by Lender such other documents and instruments, and take such
other action, as Lender may reasonably request or require to more fully and
completely evidence and carry out the transactions contemplated by this
Agreement, including, without limitation, an opinion of counsel for Borrower
and Guarantors in form and substance satisfactory to Lender and all necessary
partnership, limited liability company and/or corporate organization and
authorization documents in form and substance satisfactory to Lender.

 

8.             Borrower and Guarantors hereby
affirm and confirm each of the covenants and agreements of Borrower and/or
Guarantors contained in the Notes,  the
Mortgages, the Guaranty and the other Loan Documents, as each is amended
hereby.

 

9.             Borrower and Guarantors hereby
affirm, confirm, ratify, renew and extend the debts, duties, obligations,
liabilities, rights, titles, security interests, liens, powers and privileges
created or arising by virtue of the Notes, the Mortgages, the Guaranty and the
other Loan Documents,  as each has been
amended hereby, until all of the Indebtedness, as such term is defined in the
Mortgages, has been paid and performed in full.  Borrower and Guarantors confirm that Lender has not released,
forgiven, discharged, impaired, waived or relinquished, and does not hereby
release, forgive, discharge, impair, waive or relinquish any rights, titles,
interests, liens, security interests, collateral, parties, remedies or any
other matter with respect to the Loan, either Note, either Mortgage, the
Guaranty and the other Loan Documents, but rather Lender is expressly retaining
and reserving the same to their fullest extent.

 

10.           Except as expressly provided herein,
all the terms, provisions, debts, duties, obligations, liabilities,
representations, warranties, rights, titles, security interests, liens, powers
and privileges

 

3

 

existing by virtue of the
Notes, the Mortgages, the Guaranty and any other Loan Documents shall be and
continue in full force and effect and are hereby acknowledged by Borrower and
Guarantors to be legal, valid, binding and enforceable in accordance with their
terms.

 

11.           This Agreement shall be binding upon
the parties hereto and their respective successors and assigns.  Nothing contained in this paragraph shall
act to amend or modify any of the provisions of the Notes, the Mortgages, the
Guaranty or any other Loan Documents which restrict or prohibit assignment or
transfer.

 

12.           Neither this Agreement nor any
provision of either Note, either Mortgage, the Guaranty or any other Loan
Document may be waived, modified or amended, except by an instrument in writing
signed by the party against which the enforcement of such waiver, modification
or amendment is sought, and then only to the extent set forth in such
instrument.

 

13.           THIS AGREEMENT AND THE OTHER  DOCUMENTS ENTERED INTO IN REGARD TO THE LOAN
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES.  THERE ARE NO ORAL AGREEMENTS
AMONG THE PARTIES.

 

 

EXECUTED
as of the day and year first above written.

 

4

 

	
   

  	
   

  	
  BORROWER:

  
	
   

  
	
   

  	
   

  	
  MONROE OUTLET CENTER, LLC,

  
	
   

  	
   

  	
  a Michigan
  limited liability company

  
	
   

  	
   

  	
  By: Horizon
  Group Properties, L.P., its Manager

  
	
   

  	
   

  	
   

  	
  By: Horizon
  Group Properties, Inc., its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  	
   

  	
  GUARANTORS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HORIZON GROUP PROPERTIES,L.P.,

  
	
   

  	
   

  	
  a Delaware
  limited partnership

  
	
   

  	
   

  	
   

  	
  By: Horizon
  Group Properties, Inc.,  its General
  Partner

  
	
   

  
	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
    Name: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
    Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HORIZON GROUP PROPERTIES, INC.,

  	
   

  
	
   

  	
   

  	
  a Maryland
  corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
    Name: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
    Title:

  	
   

  	
   

  
													

 

5

 

	
   

  	
   

  	
  LENDER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BEAL BANK, S.S.B.,

  
	
   

  	
   

  	
  a savings
  bank organized under the laws of the State of  Texas

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:  William T. Saurenmann

  
	
   

  	
   

  	
  Title:     Senior
  Vice President

  

 

6Exhibit 10.115

 

FIFTH MODIFICATION AGREEMENT

 

THIS FIFTH MODIFICATION
AGREEMENT (this “Agreement”) is made and entered into this 19th day of August,
2003, by and among HUNTLEY DEVELOPMENT LIMITED PARTNERSHIP, an Illinois limited
partnership (“Borrower), HORIZON GROUP PROPERTIES, INC., a Maryland corporation
(the “Guarantor”) and BEAL BANK, S.S.B., a savings bank organized under the
laws of the State of Texas (“Lender”).

 

W I T N E S S E T H:

 

A.            Lender has heretofore made a loan in
the maximum principal amount of $11,712,177.00 (the “Loan”) to Borrower, which
Loan is now evidenced by that certain Amended, Restated and Increased
Promissory Note (the “Note”), dated as of January 30, 2002, in the stated
principal amount of $11,712,177.00, executed and delivered by Borrower and
payable to the order of Lender.

 

B.            The Loan and the Note are secured
by, among other things,  that certain Adjustable Rate Mortgage, Security
Agreement and Assignment of Leases and Rents 
(as previously modified and extended, the “Mortgage”), dated as of
October 27, 1999, executed and delivered by Borrower for the benefit of Lender,
which encumbers, among other things, certain real property located in Kane
County, Illinois and more particularly described in the Mortgage and all
improvements and fixtures thereon (the “Property”), and which has been recorded
as Document No. 1999K103679 in the Records of 
Kane County, Illinois.  The
Mortgage has been amended pursuant to (i) that certain First Amendment to
Mortgage, Security Agreement and Assignment of Leases and Rents and Related
Documents, dated December 29, 1999, by and among Borrower,  The Prime Group, Inc. (“Prime”) and Lender
and which has been recorded under Document No. 1999K122257 in the Records of
Kane County, Illinois , (ii) that certain Second Modification and Extension
Agreement, dated as of October 31, 2000, by and among Borrower,  Prime and Lender and which has been recorded
as Document No. 2000K089267 in the Records of Kane County, Illinois,  (iii) that certain Third Modification and
Extension Agreement, dated January 30, 2002, by and among Borrower, Prime and
Lender and which has been recorded under Document No. 2002K025149 in the
Records of Kane County, Illinois and (iv) that certain Fourth Modification
Agreement (the “Fourth Modification”), dated June 13, 2003, by and among
Borrower, Guarantor, Prime and Lender and which has been recorded under
Document No.2003K 119049 in the Records of Kane County, Illinois.

 

C.            The Guarantor has guaranteed the
payment and performance of the obligations of Borrower in regard to the Loan
pursuant to that certain Guaranty Agreement (the “Original Guaranty”), dated
June 13, 2003, executed by Guarantor for the benefit of Lender.

 

D.            The Borrower is affiliated with
Monroe Outlet Center, LLC (“Monroe”) by virtue of the fact that the owners
(whether direct or indirect) of Borrower are also the owners (whether direct or
indirect) of Monroe.  Monroe has
obtained a loan in the maximum principal amount of $7,000,000.00 (the “Monroe
Loan”) from Lender, which is secured by, among other things, liens and security
interests encumbering certain property located in the State of Michigan.  Monroe desires to sell a portion of the
property which secures the Monroe Loan and has requested that Lender agree to
release such property

 

1

 

from Lender’s liens and
security interests securing the Monroe Loan. 
In consideration for such agreement of Lender to so release a portion of
the property which secures the Monroe Loan, Monroe has offered to pledge to
Lender $3,000,000.00 of the proceeds from the sale of such property as security
for the Loan.  In addition, Borrower has
requested that Lender grant to Borrower an option to extend the term of the
Loan for an additional one (1) year period. 
Lender has agreed to so release a portion of the property which secures
the Monroe Loan and grant to Borrower an option to extend the term of the Loan
for one (1) year provided, among other things, (i) the Loan and the Monroe Loan
are cross-defaulted, (ii) Borrower grants to Lender a mortgage (the “New
Mortgage”) (subordinate to the Mortgage) encumbering the Property as security
for the Monroe Loan, (iii) a portion of the proceeds from the sale of the
portion of the property securing the Monroe Loan are paid to Lender as a
principal prepayment on the Monroe Loan, (iv) $3,000,000.00 of the proceeds
from the sale of the portion of the property which secures the Monroe Loan are
pledged to Lender as security for the Loan and the Monroe Loan and (v)  the owners of Monroe cause Laughlin Outlet
Center, LLC, an affiliate of Borrower and Monroe, to pledge as security for the
Monroe Loan, certain proceeds arising from Laughlin Outlet Center, LLC and the
property it owns.

 

E.   The
parties hereto desire to enter into this Agreement to set forth certain of
their agreements concerning the Loan and the Monroe Loan.

 

NOW, THEREFORE,
for and in consideration of the premises, the mutual covenants and agreements
herein contained, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged and confessed by each of the
parties hereto, the parties hereto hereby agree as follows:

 

1.             The Note, the Mortgage and the
other Loan Documents, as such term is defined in the Mortgage, are hereby
amended to provide that the occurrence of an Event of Default, as such term is
defined in those certain Commercial Mortgages, each dated July 10, 2002,
executed by Monroe, for the benefit of Lender, as security for the Monroe Loan,
and which have been recorded respectively, in Liber 2254, beginning at Page 83
in the Register of Deeds of Monroe County, Michigan and in Liber 3457,
beginning at Page 506 in the Register of Deeds of Muskegan County, Michigan
will constitute an Event of Default under the Note, the Mortgage and the other
Loan Documents.

 

2.             In addition to the right granted by
Borrower in Section 17 of the Note to extend the term of the Loan and the Note
for one (1) year beyond its current Final Maturity Date, as such term is
defined in the Note, of October 31, 2003, Lender hereby grants to Borrower an
option to further extend the Final Maturity Date of the Note for an additional
one (1) year period, so that such Final Maturity Date becomes October 31, 2005
provided (i) Borrower timely and promptly exercises its existing right to set
forth in Section 17 of the Note to extend the Final Maturity Date of the Note
to October 31, 2004, (ii) no Event of Default or event or condition which, with
the giving of notice, the passage of time, or both, could mature into such an
Event of Default, exists either at the time the notice of Borrower’s exercise
of the option to extend the Final Maturity Date to October 31, 2005 is so given
by Borrower to Lender or at the time the documents by which the term of the
Note is so extended are executed and delivered, (iii) Borrower provides to
Lender written notice of its election to so extend the term of this Note at
least thirty (30) days, but not more than sixty (60) days, prior to October 31,
2004,  (iv) Borrower pays to Lender at
the time such notice of extension is given a loan extension fee of $75,000.00
and (v) Borrower executes and/or delivers to Lender and causes such other
persons and entities as Lender may require (including, without limitation, each
Guarantor of all or any part of the Loan) to execute and/or deliver to Lender
such extension documents and related documents (including a title policy
endorsement) as Lender may require

 

2

 

and pay all costs and expenses
relating to such extension, including, without limitation, Lender’s reasonable
attorney’s fees.

 

3.             Pursuant to that certain Assignment
of Account and Security Agreement (the “Account Pledge”), of even date
herewith, by and among Monroe, Lender and Borrower, Monroe is pledging and
delivering to Lender, and granting to Lender a first priority, and the only,
security interest in, $3,000,000.00 of the proceeds of the sale of the portion
of the property which secures the Monroe Loan which Lender is releasing from
its liens and security interests, as collateral for the Loan.  The proceeds and funds so pledged to Lender
may be used to pay a portion of the interest that hereafter accrues on the Loan
and certain Lender approved costs and expenses relating to the Property as
provided in the Account Pledge.

 

4.             As of the date hereof, the unpaid
principal balance of the Loan and the Note is $10,706,151.75.  In addition, Borrower and the Guarantor
agree that the amount of Approved Contributions, as defined in the NPI
Agreement, as such term is defined in the Fourth Modification, currently
outstanding is $11,426,661.75.

 

5.             As a material inducement to Lender
to enter into this Agreement, Borrower and the Guarantor, each on behalf of
itself and its successors, assigns, 
legal representatives and constituents (whether or not a party hereto)
(Borrower, the Guarantor, and such successors, assigns,  legal representatives and constituents being
referred to herein collectively and individually, as “Obligors, et al.”), hereby
fully, finally and completely RELEASE and FOREVER DISCHARGE Lender and its
successors, assigns, affiliates, subsidiaries, parents, officers, shareholders,
directors, employees, attorneys and agents, past, present and future, and their
respective heirs, successors and assigns (collectively and individually,
“Lender, et al.”) of and from any and all claims, controversies, disputes,
liabilities, obligations, demands, damages, expenses (including, without
limitation, reasonable attorneys’ fees), debts, liens, actions and causes of
action of any and every nature whatsoever and WAIVE and RELEASE any defense,
right of counterclaim, right of set-off or deduction to the payment of
the indebtedness evidenced by the Note and/or the Mortgage and/or the NPI
Agreement and/or any of the other Loan Documents which Obligors, et al. now
have or may claim to have against Lender, et al. arising out of, connected with
or relating to any and all acts, omissions or events occurring prior to the
execution of this Agreement.

 

6.             As an additional material
inducement to Lender to enter into this Agreement, Borrower, and  the 
Guarantor  hereby represent and
warrant to Lender that:

 

(a)                                  the
Note, the Mortgage, the NPI Agreement and the other Loan Documents, as modified
hereby, are in full force and effect, 
as of the date hereof, there is no default or failure to perform on the
part of the Lender in regard to the Loan or the NPI Agreement and neither
Borrower nor Guarantor  has any defense,
counterclaim or offset to the Note, the Mortgage, the NPI Agreement or any of
the other Loan Documents, as modified hereby;

 

(b)                                 the
representations and warranties of Borrower and/or the  Guarantor set forth in the Note, the Mortgage, the NPI Agreement
and/or any of the other Loan Documents are true and correct in all material
respects as of the date hereof and are hereby reaffirmed as if such
representations and warranties had been made on the date hereof and shall
continue in full force and effect; and

 

3

 

(c)                                  this
Agreement constitutes the legal, valid and binding obligation of Borrower, and
the  Guarantor, enforceable against
Borrower and the  Guarantor in
accordance with the terms hereof, except as such enforceablility may be
effected by bankruptcy and other debtor relief laws.

 

The
representations and warranties of Borrower and the Guarantor contained in this
Agreement shall survive the consummation of the transactions contemplated by
this Agreement.

 

7.             On demand, Borrower shall pay to
Lender  all closing costs and fees and
expenses incurred by Lender in connection with this Agreement and the
transactions contemplated hereby, including, without limitation, Lender’s
reasonable attorneys’ fees and expenses. 
In addition, Borrower will cause to be issued to Lender concurrently
with the execution and delivery hereof, (i) an endorsement to the loan policy
of title insurance (the “Policy”) issued to Lender in regard to the Loan, as
previously increased and modified, confirming that such Policy continues to
insure the first priority status of the Mortgage, as modified hereby and (ii) a
new loan policy of title insurance (the “New Policy”) issued by Chicago Title
Insurance Company, in the amount of $5,000,000.00, insuring the lien of the New
Mortgage being granted by Borrower to Lender concurrently herewith, as security
for the Monroe Loan. The cost of such endorsement and New Policy shall be paid
by Borrower.

 

8.             In
addition to the documents, instruments and acts described in this Agreement and
which are to be executed and/or delivered and/or taken pursuant to this
Agreement, Borrower and Guarantor agree to (i) provide to Lender a consent to
this Agreement and the New Mortgage and the transactions effected hereby and by
the New Mortgage,  executed by the current
beneficiary of that certain Amended and Restated Mortgage and Security
Agreement, dated October 27, 1999, executed by Borrower for the benefit of U.S.
Bank Trust Company which has been recorded as Document No.  1999K122255 
in the records of Kane County, Illinois and which encumbers a portion of
the Property and (ii) execute and/or deliver from time to time upon request by
Lender such other documents and instruments, and take such other action, as
Lender may reasonably request or require to more fully and completely evidence
and carry out the transactions contemplated by this Agreement, including,
without limitation, an opinion of counsel for Borrower and the  Guarantor, 
in form and substance reasonably satisfactory to Lender and all
necessary partnership, trust and/or corporate organization and authorization
documents in form and substance satisfactory to Lender.

 

9.             Borrower and the Guarantor hereby
affirm and confirm each of the covenants and agreements of Borrower and
Guarantor contained in the Note,  the
Mortgage, the Guaranty, the NPI Agreement and the other Loan Documents, as each
is amended hereby.

 

10.           Borrower and the Guarantor hereby
affirm, confirm,  ratify, renew and
extend the debts, duties, obligations, liabilities, rights, titles, security
interests, liens, powers and privileges created or arising by virtue of the
Note, the Mortgage, the NPI Agreement, the Guaranty and the other Loan
Documents,  as each has been amended
hereby, until all of the Indebtedness and Obligations, as such terms are
defined in the Mortgage, including, without limitation,  all obligations owed to Lender under the NPI
Agreement, have been paid and performed in full.  Borrower and the Guarantor confirm that (except for the release
of  Prime as provided in the Fourth
Modification) Lender has not released, forgiven, discharged, impaired, waived
or relinquished, and does not hereby release, forgive, discharge, impair, waive
or relinquish any rights, titles, interests, liens, security interests,
collateral, parties, remedies

 

4

 

or any other matter with
respect to the Loan, the Note, the Mortgage, the NPI Agreement, the Guaranty
and the other Loan Documents, but rather Lender is expressly retaining and
reserving the same to their fullest extent.

 

11.           Except as expressly provided herein,
all the terms, provisions, debts, duties, obligations, liabilities,
representations, warranties, rights, titles, security interests, liens, powers
and privileges existing by virtue of the Note, the Mortgage, the NPI Agreement,
the Guaranty  and any other Loan
Document shall be and continue in full force and effect and are hereby
acknowledged by Borrower and the  Guarantor
to be legal, valid, binding and enforceable in accordance with their terms.

 

12.           This Agreement shall be binding upon
the parties hereto and their respective successors and assigns.  Nothing contained in this paragraph shall
act to amend or modify any of the provisions of the Note, the Mortgage, the NPI
Agreement, the Guaranty or any other Loan Document which restrict or prohibit
assignment or transfer.

 

13.           Neither this Agreement nor any
provision of the Note, the Mortgage, the NPI Agreement, the Guaranty or any
other Loan Document may be waived, modified or amended, except by an instrument
in writing signed by the party against which the enforcement of such waiver,
modification or amendment is sought, and then only to the extent set forth in
such instrument.

 

14.           THIS AGREEMENT AND THE OTHER  DOCUMENTS ENTERED INTO IN REGARD TO THE LOAN
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES.  THERE ARE NO ORAL AGREEMENTS
AMONG THE PARTIES.

 

5

 

EXECUTED
as of the day and year first above written.

 

	
   

  	
   

  	
   

  	
   

  	
  BORROWER:

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
  HUNTLEY DEVELOPMENT LIMITED PARTNERSHIP,

  
	
   

  	
   

  	
   

  	
   

  	
  an Illinois
  limited partnership

  
	
   

  	
   

  	
   

  	
   

  	
  By: Horizon
  Huntley, LLC, its

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Managing
  General Partner

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By: Horizon
  Group Properties, L.P., its

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Sole
  Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By: Horizon
  Group Properties, Inc., its General Partner

  
	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   By:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
  GUARANTOR:

  
	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
  HORIZON GROUP PROPERTIES, INC.

  
	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:  

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  President

  	
   

  
																

 

6

 

	
   

  	
   

  	
   

  	
   

  	
  LENDER:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  BEAL BANK, S.S.B.,

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  a savings
  bank organized under the laws of the State of  Texas

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:  William T. Saurenmann

  
	
   

  	
   

  	
   

  	
   

  	
  Title:
     Senior Vice President

  
									

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]