Document:

Guaranty of Recourse Obligations

 Exhibit 10.7 

 
  

GUARANTY OF RECOURSE OBLIGATIONS 

made by 

JOSEPH DANESHGAR, 

as guarantor, 
 in
favor of 
 IXIS REAL ESTATE CAPITAL INC. 

Dated as of September 19, 2005 
  

 

 GUARANTY OF RECOURSE OBLIGATIONS 

This GUARANTY (this “Guaranty”), dated as of September 19, 2005, made by JOSEPH
DANESHGAR, having an address at 433 North Camden Drive #900, Beverly Hills, California 90210 (“Guarantor”), in favor of IXIS REAL ESTATE CAPITAL INC., a New York corporation, having an address at 9 West
57th Street, New York, New York 10019 (together with its
successors and assigns, “Lender”). 
 R E C I T A L S:

 A. Pursuant to that certain Loan Agreement dated as of the date hereof (as the same may be amended, modified, supplemented,
restated or replaced from time to time, the “Loan Agreement”) between West Oahu Mall Associates LLC, a Hawaii limited liability company (“Borrower”) and Lender, Lender has agreed to make a loan (the
“Loan”) to Borrower in an aggregate principal amount not to exceed $22,200,000.00, subject to the terms and conditions of the Loan Agreement; 

B. As a condition to Lender’s making the Loan, Lender is requiring that Guarantor execute and deliver to Lender this Guaranty; and

 C. Guarantor hereby acknowledges that it owns direct or indirect ownership interests in Borrower and, accordingly, Guarantor
will materially benefit from Lender’s agreeing to make the Loan; 
 NOW, THEREFORE, in consideration of the premises
set forth herein and as an inducement for and in consideration of the agreement of Lender to make the Loan pursuant to the Loan Agreement, Guarantor hereby agrees, covenants, represents and warrants to Lender as follows: 

1. Definitions. 

(a) All capitalized terms used and not defined herein shall have the respective meanings given such terms in the Loan Agreement.

 (b) The term “Guaranteed Obligations” means (i) Borrower’s Recourse Liabilities and
(ii) from and after the date that any Springing Recourse Event occurs, payment of all the Debt. 
 2. Guaranty. 

 (a) Guarantor hereby irrevocably, absolutely and unconditionally guarantees to Lender the full, prompt and complete payment
when due of the Guaranteed Obligations. 

 (b) All sums payable to Lender under this Guaranty shall be payable on demand and without
reduction for any offset, claim, counterclaim or defense. 
 (c) Guarantor hereby agrees to indemnify, defend and save harmless
Lender from and against any and all costs, losses, liabilities, claims, causes of action, expenses and damages, including reasonable attorneys’ fees and disbursements, which Lender may suffer or which otherwise may arise in connection with the
enforcement by Lender of the Loan Documents and/or by reason of Borrower’s failure to pay any of the Guaranteed Obligations when due, irrespective of whether such costs, losses, liabilities, claims, causes of action, expenses or damages are
incurred by Lender prior or subsequent to (i) Lender’s declaring the Principal, interest and other sums evidenced or secured by the Loan Documents to be due and payable, (ii) the commencement or completion of a judicial or
non-judicial foreclosure of the Mortgage or (iii) the conveyance of all or any portion of the Property by deed-in-lieu of foreclosure. 

(d) Guarantor agrees that no portion of any sums applied (other than sums received from Guarantor in full or partial satisfaction of its
obligations hereunder), from time to time, in reduction of the Debt shall be deemed to have been applied in reduction of the Guaranteed Obligations until such time as the Debt has been paid in full, or Guarantor shall have made the full payment
required hereunder, it being the intention hereof that the Guaranteed Obligations shall be the last portion of the Debt to be deemed satisfied. 

3. Representations and Warranties. Guarantor hereby represents and warrants to Lender as follows (which representations and
warranties shall be given as of the date hereof and shall survive the execution and delivery of this Guaranty): 
 (a)
Execution. This Guaranty has been duly executed and delivered by Guarantor. 
 (b) Enforceability. This Guaranty
constitutes a legal, valid and binding obligation of Guarantor, enforceable against Guarantor in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally. 
 (c) No Violation. The execution, delivery and
performance by Guarantor of its obligations under this Guaranty does not and will not violate any law, regulation, order, writ, injunction or decree of any court or governmental body, agency or other instrumentality applicable to Guarantor, or
result in a breach of any of the terms, conditions or provisions of, or constitute a default under, or result in the creation or imposition of any mortgage, lien, charge or encumbrance of any nature whatsoever upon any of the assets of Guarantor
pursuant to the terms of any mortgage, indenture, agreement or instrument to which Guarantor is a party or by which it or any of its properties is bound. Guarantor is not in default under any other guaranty which it has provided to Lender.

 (d) No Litigation. There are no actions, suits or proceedings at law or in equity, pending or, to
Guarantor’s knowledge, threatened against or affecting Guarantor or which 
  

 2 

 
involve or might involve the validity or enforceability of this Guaranty or which might materially adversely affect the financial condition of Guarantor or the ability of Guarantor to perform any
of its obligations under this Guaranty. Guarantor is not in default beyond any applicable grace or cure period with respect to any order, writ, injunction, decree or demand of any Governmental Authority which might materially adversely affect the
financial condition of Guarantor or the ability of Guarantor to perform any of its obligations under this Guaranty. 
 (e)
Consents. All consents, approvals, orders or authorizations of, or registrations, declarations or filings with, all Governmental Authorities (collectively, the “Consents”) that are required in connection with the valid
execution, delivery and performance by Guarantor of this Guaranty have been obtained and Guarantor agrees that all Consents required in connection with the carrying out or performance of any of Guarantor’s obligations under this Guaranty will
be obtained when required. 
 (f) Financial Statements and Other Information. All financial statements of Guarantor
heretofore delivered to Lender are true and correct in all material respects and fairly present the financial condition of Guarantor as of the respective dates thereof, and no materially adverse change has occurred in the financial conditions
reflected therein since the respective dates thereof. None of the aforesaid financial statements or any certificate or statement furnished to Lender by or on behalf of Guarantor in connection with the transactions contemplated hereby, and none of
the representations and warranties in this Guaranty contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained therein or herein not misleading. Guarantor is not insolvent
within the meaning of the United States Bankruptcy Code or any other applicable law, code or regulation and the execution, delivery and performance of this Guaranty will not render Guarantor insolvent. 

(g) Consideration. Guarantor is the owner, directly pr indirectly, of legal and beneficial ownership interests in Borrower.

 4. Financial Statements. Guarantor shall deliver to Lender, (a) within ninety (90) days after the end of each
fiscal year of Guarantor, a complete copy of Guarantor’s annual financial statements certified by Guarantor and a public accountant reasonably acceptable to Lender, (b) twenty (20) days after request by Lender, such other financial
information with respect to Guarantor as Lender may reasonably request. 
 5. Unconditional Character of Obligations of
Guarantor. 
 (a) The obligations of Guarantor hereunder shall be irrevocable, absolute and unconditional, irrespective of
the validity, regularity or enforceability, in whole or in part, of the other Loan Documents or any provision thereof, or the absence of any action to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any
judgment against Borrower, Guarantor or any other Person or any action to enforce the same, any failure or delay in the enforcement of the obligations of Borrower under the other Loan Documents or Guarantor under this Guaranty, or any setoff or
counterclaim, and irrespective of any other circumstances which might otherwise limit recourse against Guarantor by Lender or constitute a legal or equitable discharge or 

 

 3 

 
defense of a guarantor or surety. Lender may enforce the obligations of Guarantor under this Guaranty by a proceeding at law, in equity or otherwise, independent of any loan foreclosure or
similar proceeding or any deficiency action against Borrower or any other Person at any time, either before or after an action against the Property or any part thereof, Borrower or any other Person. This Guaranty is a guaranty of payment
and performance and not merely a guaranty of collection. Guarantor waives diligence, notice of acceptance of this Guaranty, filing of claims with any court, any proceeding to enforce any provision of any other Loan Document against Guarantor,
Borrower or any other Person, any right to require a proceeding first against Borrower or any other Person, or to exhaust any security (including, without limitation, the Property) for the performance of the Guaranteed Obligations or any other
obligations of Borrower or any other Person, or any protest, presentment, notice of default or other notice or demand whatsoever (except to the extent expressly provided to the contrary in this Guaranty). 

(b) The obligations of Guarantor under this Guaranty, and the rights of Lender to enforce the same by proceedings, whether by action at
law, suit in equity or otherwise, shall not be in any way affected by any of the following: 
 (i) any
insolvency, bankruptcy, liquidation, reorganization, readjustment, composition, dissolution, receivership, conservatorship, winding up or other similar proceeding involving or affecting Borrower, the Property or any part thereof, Guarantor or any
other Person; 
 (ii) any failure by Lender or any other Person, whether or not without fault on its part, to
perform or comply with any of the terms of the Loan Agreement, or any other Loan Documents, or any document or instrument relating thereto; 

(iii) the sale, transfer or conveyance of the Property or any interest therein to any Person, whether now or hereafter
having or acquiring an interest in the Property or any part thereof and whether or not pursuant to any foreclosure, trustee sale or similar proceeding against Borrower or the Property or any interest therein; 

(iv) the conveyance to Lender, any Affiliate of Lender or Lender’s nominee of the Property or any interest therein
by a deed-in-lieu of foreclosure; 
 (v) the release of Borrower or any other Person from the performance or
observance of any of the agreements, covenants, terms or conditions contained in any of the Loan Documents by operation of law or otherwise; or 

(vi) the release in whole or in part of any collateral for any or all Guaranteed Obligations or for the Loan or any
portion thereof. 
 (c) Except as otherwise specifically provided in this Guaranty, Guarantor hereby expressly and irrevocably
waives all defenses in an action brought by Lender to enforce this Guaranty based on claims of waiver, release, surrender, alteration or compromise and all setoffs, reductions, or impairments, whether arising hereunder or otherwise. 

 

 4 

 (d) Lender may deal with Borrower and Affiliates of Borrower in the same manner and as
freely as if this Guaranty did not exist and shall be entitled, among other things, to grant Borrower or any other Person such extension or extensions of time to perform any act or acts as may be deemed advisable by Lender, at any time and from time
to time, without terminating, affecting or impairing the validity of this Guaranty or the obligations of Guarantor hereunder. 

(e) No compromise, alteration, amendment, modification, extension, renewal, release or other change of, or waiver, consent, delay,
omission, failure to act or other action with respect to, any liability or obligation under or with respect to, or of any of the terms, covenants or conditions of, the Loan Documents shall in any way alter, impair or affect any of the obligations of
Guarantor hereunder, and Guarantor agrees that if any Loan Document is modified with Lender’s consent, the Guaranteed Obligations shall automatically be deemed modified to include such modifications. 

(f) Lender may proceed to protect and enforce any or all of its rights under this Guaranty by suit in equity or action at law, whether
for the specific performance of any covenants or agreements contained in this Guaranty or otherwise, or to take any action authorized or permitted under applicable law, and shall be entitled to require and enforce the performance of all acts and
things required to be performed hereunder by Guarantor. Each and every remedy of Lender shall, to the extent permitted by law, be cumulative and shall be in addition to any other remedy given hereunder or now or hereafter existing at law or in
equity. 
 (g) No waiver shall be deemed to have been made by Lender of any rights hereunder unless the same shall be in
writing and signed by Lender, and any such waiver shall be a waiver only with respect to the specific matter involved and shall in no way impair the rights of Lender or the obligations of Guarantor to Lender in any other respect or at any other
time. 
 (h) At the option of Lender, Guarantor may be joined in any action or proceeding commenced by Lender against Borrower
in connection with or based upon any other Loan Documents and recovery may be had against Guarantor in such action or proceeding or in any independent action or proceeding against Guarantor to the extent of Guarantor’s liability hereunder,
without any requirement that Lender first assert, prosecute or exhaust any remedy or claim against Borrower or any other Person, or any security for the obligations of Borrower or any other Person. 

(i) Guarantor agrees that this Guaranty shall continue to be effective or shall be reinstated, as the case may be, if at any time any
payment is made by Borrower or Guarantor to Lender and such payment is rescinded or must otherwise be returned by Lender (as determined by Lender in its sole and absolute discretion) upon insolvency, bankruptcy, liquidation, reorganization,
readjustment, composition, dissolution, receivership, conservatorship, winding up or other similar proceeding involving or affecting Borrower or Guarantor, all as though such payment had not been made. 

(j) In the event that Guarantor shall advance or become obligated to pay any sums under this Guaranty or in connection with the
Guaranteed Obligations or in the event that 
  

 5 

 
for any reason whatsoever Borrower or any subsequent owner of the Property or any part thereof is now, or shall hereafter become, indebted to Guarantor, Guarantor agrees that (i) the amount
of such sums and of such indebtedness and all interest thereon shall at all times be subordinate as to lien, the time of payment and in all other respects to all sums, including principal and interest and other amounts, at any time owed to Lender
under the Loan Documents, and (ii) Guarantor shall not be entitled to enforce or receive payment thereof until the Debt has been indefeasibly paid in full. Nothing herein contained is intended or shall be construed to give Guarantor any right
of subrogation in or under the Loan Documents or any right to participate in any way therein, or in the right, title or interest of Lender in or to any collateral for the Loan, notwithstanding any payments made by Guarantor under this Guaranty,
until the actual and irrevocable receipt by Lender of payment in full of all of the Debt. If any amount shall be paid to Guarantor on account of such subrogation rights at any time when any such sums due and owing to Lender shall not have been fully
paid, such amount shall be paid by Guarantor to Lender for credit and application against such sums due and owing to Lender. 

(k) Guarantor’s obligations hereunder shall survive a foreclosure, deed-in-lieu of foreclosure or similar proceeding involving the
Property and the exercise by Lender of any of all of its remedies pursuant to the Loan Documents. 
 6. Covenants.

 (a) As used in this section 6, the following terms shall have the respective meanings set forth below: 

(i) “Net Worth” shall mean, as of a given date, (x) the total assets of Guarantor as of such date
less (y) Guarantor’s total liabilities as of such date, determined in accordance with the account method used by Borrower. 

(b) Until all of the Guaranteed Obligations have been paid in full, Guarantor (i) shall maintain a Net Worth in excess of
$5,000,000.00 and (ii) shall not sell, pledge, mortgage or otherwise transfer any of its assets, or any interest therein, on terms materially less favorable than would be obtained in an arms-length transaction. 

(c) Guarantor shall not, at any time while a default in the payment of the Guaranteed Obligations has occurred and is continuing, either
(i) enter into or effectuate any transaction with any Affiliate which would reduce the Net Worth of Guarantor or (ii) sell, pledge, mortgage or otherwise transfer to any Person any of Guarantor’s assets, or any interest therein.

 7. Entire Agreement/Amendments. This instrument represents the entire agreement between the parties with
respect to the subject matter hereof. The terms of this Guaranty shall not be waived, altered, modified, amended, supplemented or terminated in any manner whatsoever except by written instrument signed by Lender and Guarantor. 

 

 6 

 8. Successors and Assigns. This Guaranty shall be binding upon Guarantor, and
Guarantor’s estate, heirs, personal representatives, successors and assigns, may not be assigned or delegated by Guarantor and shall inure to the benefit of Lender and its successors and assigns. 

9. Applicable Law and Consent to Jurisdiction. This Guaranty shall be governed by, and construed and enforced in accordance with,
the substantive laws of the State of California. Guarantor irrevocably (a) agrees that any suit, action or other legal proceeding arising out of or relating to this Guaranty may be brought in a court of record in the State of California or in
the Courts of the United States of America located in the State of California, (b) consents to the jurisdiction of each such court in any such suit, action or proceeding and (c) waives any objection which it may have to the laying of venue
of any such suit, action or proceeding in any of such courts and any claim that any such suit, action or proceeding has been brought in an inconvenient forum. Guarantor irrevocably consents to the service of any and all process in any such suit,
action or proceeding by service of copies of such process to Guarantor at its address provided in Section 14 hereof. Nothing in this Section 9, however, shall affect the right of Lender to serve legal process in any other manner permitted
by law or affect the right of Lender to bring any suit, action or proceeding against Guarantor or its property in the courts of any other jurisdictions. 

10. Section Headings. The headings of the sections and paragraphs of this Guaranty have been inserted for convenience of reference
only and shall in no way define, modify, limit or amplify any of the terms or provisions hereof. 
 11. Severability. Any
provision of this Guaranty which may be determined by any competent authority to be prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by applicable law,
Guarantor hereby waives any provision of law which renders any provision hereof prohibited or unenforceable in any respect. 

12. WAIVER OF TRIAL BY JURY. GUARANTOR HEREBY WAIVES THE RIGHT OF TRIAL BY JURY IN ANY LITIGATION, ACTION OR PROCEEDING ARISING
HEREUNDER OR IN CONNECTION HEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY GUARANTOR, AND IS INTENDED TO ENCOMPASS EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE.
LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER OF TRIAL BY JURY BY GUARANTOR. 

13. Other Guaranties. The obligations of Guarantor hereunder are separate and distinct from, and in addition to, the obligations
of Guarantor now or hereafter arising under any other guaranties, pursuant to which Guarantor has guaranteed payment and performance of certain other obligations of Borrower described therein. 

 

 7 

 14. Notices. All notices, demands, requests, consents, approvals or other
communications (collectively called “Notices”) required or permitted to be given hereunder to Lender or Guarantor or which are given to Lender or Guarantor with respect to this Guaranty shall be in writing and shall be sent by
United States registered or certified mail, return receipt requested, postage prepaid, addressed as set forth below, or personally delivered with receipt acknowledged to such address, or in either case, to such other address( es) as the party in
question shall have specified most recently by like Notice. 
 If to Lender, to: 

IXIS Real Estate Capital Inc. 

9 West
57th Street 

New York, New York 10019 

Attention: Real Estate Administration (Gary DiGiuseppe) 

with a copy to: 

Kilpatrick Stockton LLP 

Hearst Tower, Suite 2500 

214 North Tryon Street 

Charlotte, North Carolina 28202 

Attention: Jonathan J. Nugent, Esq. 

If to Guarantor, to: 

Joseph Daneshgar 

433 North Camden Drive, Suite 900 

Beverly Hills, California 90210 

with a copy to: 

Mancini, Welch & Geiger 

33 Lono Avenue, Suite 470 

Kahului, Maui, Hawaii 96732 

Attention: Paul Mancini, Esq. 

Notices which are given in the manner aforesaid shall be deemed to have been given or served for all purposes hereunder (i) on the date on which
such notice shall have been personally delivered as aforesaid, (ii) on the date of delivery by mail as evidenced by the return receipt therefor, or (iii) on the date of failure to deliver by reason of refusal to accept delivery or changed
address of which no Notice was given. 
 15. Guarantor’s Receipt of Loan Documents. Guarantor by its execution
hereof acknowledges receipt of true copies of all of the Loan Documents, the terms and conditions of which are hereby incorporated herein by reference. 
  

 8 

 16. Interest; Expenses. 

(a) If Guarantor fails to pay all or any sums due hereunder upon demand by Lender, the amount of such sums payable by Guarantor to
Lender shall bear interest from the date of demand until paid at the Default Rate in effect from time to time. 
 (b) Guarantor
hereby agrees to pay all costs, charges and expenses, including reasonable attorneys’ fees and disbursements, that may be incurred by Lender in enforcing the covenants, agreements, obligations and liabilities of Guarantor under this Guaranty.

 17. Joint and Several Obligations. If Guarantor consists of more than one Person, each such Person shall have joint
and several liability for the obligations of Guarantor hereunder. 
 18. Specific Limitation on Guaranty and Indemnity
Obligations. Guarantor and Lender hereby confirm that it is the intention of Guarantor and Lender that this Guaranty not constitute a fraudulent transfer or fraudulent conveyance (a “Fraudulent Conveyance”) under the Bankruptcy
Code, the Uniform Fraudulent Conveyance Act or any other debtor relief law or insolvency law (whether statutory, common law, case law or otherwise) or any jurisdiction whatsoever (collectively, the “Bankruptcy Laws”). To give effect
to the foregoing intention of Guarantor and Lender, each of such parties hereby irrevocably agrees that the Guaranteed Obligations shall be limited to (but shall not be less than) such maximum amount as will, after giving effect to the maximum
amount of such obligations and all other liabilities (whether contingent or otherwise) of Guarantor that are relevant under such Bankruptcy Laws, result in the Guaranteed Obligations not constituting a Fraudulent Conveyance under the Bankruptcy
Laws, as of the date of execution and delivery of this Guaranty. 
 19. Certain Matters Relating to the State of California.
Notwithstanding anything contained herein to the contrary, the following shall control: 
 (a) Guarantor hereby knowingly,
voluntarily, and irrevocable waives and relinquishes any and all benefits that might otherwise be available to guarantors under California Civil Code Sections 2809, 2810, 2819, 2839, 2845, 2849, 2850, 2899 and 3433, and under any similar statute or
rule of law now in effect or hereafter enacted or adopted to supplement, replace, or supersede any of such sections. Guarantor represents and warrants to Lender that Guarantor is not a principal or obligor or the alter ego of a principal obligor
with respect to the Loan obligations, and Guarantor will remain liable hereon notwithstanding any judicial or nonjudicial foreclosure under the Deed of Trust or Lender’s acceptance of any deed in lieu of foreclosure. 

(b) Additionally, Guarantor hereby knowingly, voluntarily, and irrevocably waives and relinquishes all rights, remedies, and defenses
that Guarantor may have by reason of protection afforded to Borrower or Guarantor pursuant to any anti-deficiency, one-action, security first, or other statute or rule of law that operates to limit or discharge the Loan obligations or

  

 9 

 
Guarantor’s liabilities and obligations hereunder, and Guarantor agrees not to assert or take advantage of any such rights, remedies, or defenses, including the following: 

(i) CCP Sections 580a and 726: Fair Market Value. Any right, remedy, or defense based upon California Code of
Civil Procedure (“CCP”) Section 580a, CCP Section 726, or any other successor statute or rule of law. 

(ii) CCP Sections 580a and 726: Three Month Limitation. Any right, remedy, or defense based upon CCP
Section 580a, CCP Section 726, or any other successor statute or rule of law that requires that any hearing, proceeding or action to recover a judgment from Borrower or Guarantor be applied for or commenced within three months after any
judicial or nonjudicial foreclosure sale or within any other period of time. 
 (iii) CCP Section 580d:
Nonjudicial Foreclosure Sale. Any right, remedy, or defense based upon CCP Section 580d or any other statute or rule of law that bars the recovery from Borrower or Guarantor of any judgment following a sale of the Property conducted under
the trustee under Lender’s Deed of Trust pursuant to the power of sale contained therein or conducted by Lender pursuant to the power of sale contained in the Deed ofTrust; and 

(iv) Defense Under Union Bank v. Gradsky. The defense recognized in Union Bank v. Gradsky, 265 Cal. App.2d 40
(1968), and other similar judicial decisions. Guarantor hereby knowingly, voluntarily, and irrevocably waives and relinquishes the foregoing defense and consents in advance to any election by Lender to cause a nonjudicial foreclosure sale to be held
under the Deed of Trust. Guarantor waives all rights and defenses arising out of an election of remedies by the creditor (Lender), even though that election of remedies, such as a nonjudicial foreclosure with respect to security for a loan
obligation, has destroyed Guarantor’s rights of subrogation and reimbursement against the principal (Borrower) by the operation of Section 580d of the Code of Civil Procedure or otherwise. Nothing herein shall be construed to require that
(1) any judicial or nonjudicial foreclosure sale be conducted under the Deed of Trust as a condition precedent to Lender’s recovery from Guarantor of the sums payable by Guarantor hereunder, or (2) Lender offers to sell the Loan and
assign Lender’s security for the Loan to Guarantor before holding any judicial or nonjudicial foreclosure sale or at any other time. 

[NO FURTHER TEXT ON THIS PAGE] 
  

 10 

 IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the date first above
written. 
  

	
	 /s/ Joseph Daneshgar

	JOSEPH DANESHGARJoinder By and Agreement of New Indemnitor

 Exhibit 10.8 

JOINDER BY AND AGREEMENT OF NEW INDEMNITOR 

The undersigned, TNP STRATEGIC RETAIL OPERATING PARTNERSHIP, L.P. a Delaware limited partnership (the “TNP Operating
Partnership”), TNP STRATEGIC RETAIL TRUST, INC., a Maryland corporation (the “TNP REIT”), TNP PROPERTY MANAGER, LLC, a Delaware limited liability company, (“Project Manager”) and ANTHONY
THOMPSON (“Thompson,” together with the TNP Operating Partnership, the TNP REIT, the TNP Property Manager sometimes collectively referred to herein “New Indemnitor”), being collectively and individually the New
Indemnitor referred to in the Note and Mortgage Assumption Agreement (the “Agreement”) to which this Joinder (the “New Indemnitor Joinder”) is attached, intending to be legally bound under the terms and provisions
of the Guaranty and pursuant to the provisions of this New Indemnitor Joinder, hereby jointly and severally (except as provided below), represents and warrants to and acknowledges and agrees with Lender the following: 

1. Defined Terms. All capitalized terms used in this New Indemnitor Joinder, unless defined herein, shall have the meanings
given such terms in the Agreement. 
 2. Benefit to New Indemnitor. Each New Indemnitor, owning a direct and/or
indirect interest in New Borrower (other than Project Manager) as a result of the Requested Actions, shall receive a substantial benefit from Lender’s consent to the Requested Actions. 

3. Additional Payment Guaranty. In addition to, and not in substitution for or modification or amendment of the
Guaranty, New Indemnitor (other than Project Manager), jointly and severally, hereby absolutely, unconditionally and irrevocably guarantee to Lender the full and prompt payment of the Loan Obligations (as defined in the Security Instrument), when
due, whether at stated maturity, upon acceleration, or otherwise, and at all times thereafter, provided, however, liability under the provisions of this Section 3 shall not exceed ten percent (10%) of the outstanding principal balance of
the Loan upon the occurrence of an Event of Default under the Loan Agreement, plus any cost incurred by Lender in connection with the enforcement of this additional payment guaranty and/or the Loan Documents, which costs shall include, but not be
limited to, attorneys fees and costs incurred by Lender at all levels of appeal and in bankruptcy of New Borrower and/or New Indemnitor (collectively, “Additional Payment Guaranty”). 

4. Assumption by New Indemnitor of Guaranty. From and after the Acquisition Date, New Indemnitor hereby, jointly and
severally, assumes and agrees to be liable and responsible for and bound by all of Original Indemnitor’s obligations, agreements and liabilities, including but not limited to the jury waiver and other waivers set forth therein, under the
Guaranty as fully and completely as if the New Indemnitor had originally executed and delivered such Guaranty as the guarantor thereunder. From and after the Acquisition Date, New Indemnitor further agrees to pay, perform and discharge each and
every obligation of payment and performance of any guarantor under, pursuant to and as set forth in the Guaranty at the time, in the manner and otherwise in all respects as therein provided. With respect to the Environmental Indemnity Obligations
Under Guaranty, the liability of New Indemnitor shall be joint and several with that of New Borrower and shall not be limited to the Environmental Indemnity Obligations Under Guaranty occurring from and after the Acquisition Date. From and after the
date hereof, the Guaranty is amended to provide that all references to the term 

 
“Borrower” used in the Guaranty shall mean and refer to the New Borrower and the term “Guarantor” used in the Guaranty shall mean and refer to the New
Indemnitor. Except as modified by the terms of this New Indemnitor Joinder, the Guaranty remains unmodified and in full force and effect. 

5. Confirmation of Representations. By its execution hereof, New Indemnitor confirms the representations and
warranties and agrees to the covenants regarding New Indemnitor set forth in the Agreement. 
 6. Representations
by New Indemnitor. 
 a. Each New Indemnitor represents that the execution and delivery of this New Indemnitor Joinder,
and performance by each New Indemnitor under the New Indemnitor Joinder and the Guaranty will not (i) violate any provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect
having applicability to New Indemnitor or (ii) result in a breach of or constitute or cause a default under any indenture, agreement, lease or instrument to which New Indemnitor is a party or by which the Project may be bound or affected.

 b. Each of the TNP REIT and Thompson agrees to timely comply with all financial reporting or any other covenants or
requirements relating to any guarantor of the Loan in any of the Loan Documents, including but not limited to those set forth in Section 6.3 of the Loan Agreement, as modified by the terms of the Agreement. 

c. New Indemnitors represent and agree that, in the aggregate, New Indemnitor has and will maintain throughout the term of the Loan a Net
Worth of at least Twenty Five Million Dollars and 00/100 ($25,000,000.00) (“Minimum Net Worth”). “Net Worth” shall mean, as of any date, the difference between (i) the total assets (not including the Project
and not counting the value of the same assets more than once, i.e. the value of the TNP REIT’s interest in the TNP Operating Partnership and the value of the TNP Operating Partnership’s interest in New Borrower) of the Person (as such term
is defined in the Loan Agreement) whose Net Worth is being determined that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP (as such term is defined in the Loan Agreement), and (ii) such
Person’s total liabilities, including, without limitation, any obligations under direct or indirect guarantees and obligations (contingent or otherwise) to purchase or otherwise acquire, or otherwise to assure a creditor against loss, in either
instance in respect of obligations of others, that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP. Failure of New Indemnitor to maintain the Minimum Net Worth at all times during the term of Loan
shall constitute an Event of Default under the Loan Documents and the Guaranty. 
 d. New Indemnitor (other than Property
Manager) acknowledges and agrees to the terms of Section 1.2(k) of the Agreement and further represents and warrants to Lender the following 

(i) That the Key Bank Credit Facility is not secured by (a) all or any portion of the TNP Operating Partnership’s interest in
New Borrower or any other assets of New Borrower, (b) a mortgage, deed of trust or other security interest in the Project, or (c) a pledge or any other direct or indirect security or other interest in the general partnership interest in
the Operating Partnership, currently held by the TNP REIT; 

 (ii) That the Key Bank Credit Facility is secured by a pledge of no greater than a 49%
interest of the TNP REIT’s limited partnership interests in the TNP Operating Partnership with no additional rights in the TNP Operating Partnership, including any right to profits or proceeds, other than those rights to which a 49% limited
partner of the TNP Operating Partnership is entitled under the Limited Partnership Agreement of in the TNP Operating Partnership; 

(iii) That the Project Manager is not a party to the Key Bank Credit Facility and has not provided any security or collateral therefore;

 (iv) That in the event of a default by the Operating Partnership under the Key Bank Credit Facility, Key Bank has no right
to directly or indirectly control the REIT, the Operating Partnership, the Project Manager or New Borrower; 
 (v) That in the
event of a default by New Borrower under any of the Loan Documents, Key Bank has no right to consent to or approve any modifications to the Loan Documents in connection with a workout of the Loan or otherwise; 

(vi) That there is no prohibition in the Key Bank Credit Facility Loan Documents that prohibits or restricts the TNP Operating
Partnership or the TNP REIT from being a guarantor of the Loan, including, under certain circumstances, a guarantor of the entire principal balance of the Loan and all other sums due under the Loan Documents; and 

e. The TNP REIT has immediately available funds to contribute to the Operating Partnership to contribute to New Borrower to purchase the
Project and has not borrowed such funds from any Person. 
 New Indemnitor (other than Property Manager) acknowledges and agrees that any
modifications or amendments to the terms of the Key Bank Facility which causes any of the foregoing statements to be untrue or incorrect without first obtaining the Lender written consent shall constitute an Event of Default under the Loan Documents
and shall constitute a Springing Recourse Event under Section 10.1 of the Loan Agreement and Section 1(b) of the Guaranty. In addition, if any of the representations in this subsection (d) are untrue and incorrect as of the date
hereof, it shall also constitute an Event of Default under the Loan Documents and a Springing Recourse Event under Section 10.1 of the Loan Agreement and Section 1(b) of the Guaranty. 

f. Thompson represents that all of the assets shown on Thompson’s Financial Statements are community property assets under the laws
of the State of California or owned by him individually as his separate property and were acquired during his marriage to his current spouse (and not during a period when they were living apart before a judgment of dissolution of marriage or legal
separation of the parties). Thompson further represents that all of the assumptions (other than those relating to Lender) in that certain legal opinion issued by the Law Offices of Michael Sitzer to Lender, dated as of the date hereof, are true and
correct. A breach of any of the representations made in this paragraph shall constitute a Springing Recourse Event under Section 10.1 of the Loan Agreement and Section 1(b) of the Guaranty, but solely with respect to Thompson. 

7. Notices to New Indemnitor. From and after the Acquisition Date, Lender shall deliver any notices to New Indemnitor which
are required to be delivered pursuant to the 

 
Guaranty, or are otherwise delivered by the Lender thereunder at Lender’s sole discretion, to the New Indemnitor at the following address: 

TNP Strategic Retail Operating Partnership, L.P. 

TNP Strategic Retail Trust, Inc. 

c/o Thompson National Properties, LLC 

1900 Main Street, Suite 700 

Irvine, California 92614 

Attn: Stephen Corea 

Facsimile: (949) 252-0212 

Anthony Thompson 

TNP Property Manager, LLC 

c/o Thompson National Properties, LLC 

1900 Main Street, Suite 700 

Irvine, California 92614 

Attn: Anthony Thompson 

Facsimile:
                         

With a copy to: 

Gregory Kaplan, PLC 

7 East Second Street 

Richmond, Virginia 23224 

Attn: Joseph J. McQuade, Esq. 

Facsimile: (804) 916-9127 

All notices to be sent by New Indemnitor to Lender under the Guaranty and Loan Documents shall be sent to Lender in the manner set forth in and at the
address shown in Section 4.6 of the Agreement to which this New Indemnitor Joinder is attached. 
 8. Joint and
Several Liability. If New Indemnitor consists of more than one person or party, the obligations and liabilities of each such person or party shall be joint and several, except with regard to paragraph 3 as to Project Manager and the
representations made by only one New Indemnitor, in which case, any liability applicable to such representation shall relate to the party who made such representation. 

9. Conflict. In the event that the terms of this New Indemnitor Joinder conflict with the terms of the Guaranty, the Loan
Agreement or the Agreement, the terms of this New Indemnitor Joinder shall control. 
 [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

 The undersigned New Indemnitor has executed and delivered this New Indemnitor Joinder to be
effective as of the date of the Agreement. 
  

									
		 		 	TNP STRATEGIC RETAIL OPERATING PARTNERSHIP, L.P., a Delaware limited partnership
		
	Witnesses:	 	By: TNP Strategic Retail Trust, Inc., a Maryland corporation, its General Partner
				
	 /s/ Mark A. Mercado
	 		 	By:	 	 /s/ Wendy Worcester

	Print Name:	 	Mark A. Mercado	 		 	Name:	 	Wendy Worcester
		 		 		 	Title:	 	CFO
	 /s/ Dalila Bueno
	 		 		 	
	Print Name:	 	Dalila Bueno	 		 		 	

  

							
	STATE OF CALIFORNIA        	  	)	  	
		 		  	)	  	
	COUNTY OF	 	Orange	  	)	  	

 On June 2, 2010 before me, Bhriza Camacho, the undersigned, a Notary Public in and for said State, personally
appeared Wendy Worcester, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her
signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 
 I certify under PENALTY
OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 
 WITNESS my hand and official seal.

  

					
	Signature	 	 /s/ Bhriza Camacho
	 	
			
	Name	 	 Bhriza Camacho
	 	
		 	(typed or printed)	 	(Seal)

 The undersigned New Indemnitor has executed and delivered this New Indemnitor Joinder to be
effective as of the date of the Agreement. 
  

					
		 	 TNP STRATEGIC RETAIL TRUST, INC., a

Maryland corporation

			
		 	By:	 	 /s/ Wendy Worcester

		 	Name:	 	Wendy Worcester
		 	Title:	 	CFO

  

			
	 /s/ Mark A. Mercado

	Print Name:	 	Mark A. Mercado
	
	 /s/ Dalila Bueno

	Print Name:	 	Dalila Bueno

  

							
	STATE OF CALIFORNIA        	  	)	  	
		 		  	)	  	
	COUNTY OF	 	Orange	  	)	  	

 On June 2, 2010 before me, Bhriza Camacho, the undersigned, a Notary Public in and for said State, personally
appeared Wendy Worcester, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her
signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 
 I certify under PENALTY
OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 
 WITNESS my hand and official seal.

  

					
	Signature	 	 /s/ Bhriza Camacho
	 	
			
	Name	 	 Bhriza Camacho
	 	
		 	(typed or printed)	 	(Seal)
		 		 	

  

 The undersigned New Indemnitor has executed and delivered this New Indemnitor Joinder to be
effective as of the date of the Agreement. 
  

									
		 		 	TNP PROPERTY MANAGER, LLC, a Delaware limited liability company (except as to paragraph 3)
			
	Witnesses:	 	By:	 	Thompson National Properties, LLC, its sole member
				
	 /s/ Mark A. Mercado
	 		 	By:	 	 /s/ Wendy Worcester

	Print Name:	 	Mark A. Mercado	 		 	Name:	 	Wendy Worcester
		 		 		 	Title:	 	CAO
	 /s/ Dalila Bueno
	 		 		 	
	 Print Name:
	 	Dalila Bueno	 		 		 	

  

							
	STATE OF CALIFORNIA        	  	)	  	
		 		  	)	  	
	COUNTY OF	 	Orange	  	)	  	

 On June 2, 2010 before me, Bhriza Camacho, the undersigned, a Notary Public in and for said State, personally
appeared Wendy Worcester, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her
signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 
 I certify under PENALTY
OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 
 WITNESS my hand and official seal.

  

					
	Signature	 	 /s/ Bhriza Camacho
	 	
			
	Name	 	 Bhriza Camacho
	 	
		 	(typed or printed)	 	(Seal)

 The undersigned New Indemnitor has executed and delivered this New Indemnitor Joinder to be
effective as of the date of the Agreement. 
  

			
	Witnesses:	 	 /s/ Anthony Thompson

		 	ANTHONY THOMPSON

  

			
	 /s/ Mark A. Mercado

	 Print Name:
	 	Mark A. Mercado

  

			
	 /s/ Dalila Bueno

	 Print Name:
	 	Dalila Bueno

  

					
	STATE OF CALIFORNIA	 	)	  	
		 	)	  	
	COUNTY OF         Orange        	 	)	  	

 On June 2, 2010 before me, Bhriza Camacho, the undersigned, a Notary Public in and for said State, personally
appeared Wendy Worcester, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her
signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 
 I certify under PENALTY
OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 
 WITNESS my hand and official seal.

  

					
	Signature	 	 /s/ Bhriza Camacho
	 	
			
	Name	 	 Bhriza Camacho
	 	
		 	(typed or printed)	 	(Seal)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]