Document:

Exhibit
10.36

 

	
  

  	
  LOAN AND
  SECURITY AGREEMENT THIS LOAN AND SECURITY AGREEMENT (the “Agreement”) is made
  and effective as of the 30th day of September, 2010, by and between PEOPLE’S
  UNITED BANK, a federal savings bank having an office at 850 Main Street, Bridgeport,
  Connecticut (the “Lender”) and WU/LH 15 PROGRESS L.L.C., a Delaware limited
  liability company, with a mailing address of 60 Hempstead Avenue, Suite 718,
  West Hempstead, New York 11552 (the “Borrower”), PAUL A. COOPER, an
  individual with a mailing address of 46 Rose Lane, East Rockaway, New York
  11518, JEFFREY D. RAVETZ, an individual with a mailing address of 498 West
  End Avenue, Apt. 7A, New York, New York 10024, LOUIS E. SHEINKER, an
  individual with a mailing address of 19 The Glenada, Roslyn, New York 11577,
  and JEFFREY WU (a/k/a Myint J. Kyaw), an individual with a mailing address of
  56-72 49th Place, Maspeth, New York 11378 (the foregoing individuals are
  hereinafter collectively referred to as the “Guarantor”). WITNESSETH:
  WHEREAS, the Borrower has made a request to the Lender for a permanent loan
  in the amount of TWO MILLION SEVEN HUNDRED THOUSAND AND 00/100 DOLLARS ($2,700,000.00)
  (the “Loan”). The Lender desires to make the Loan, and the Borrower desires
  to enter into the Loan, all upon the terms and conditions hereinafter set
  forth. NOW, THEREFORE, the parties mutually agree, represent and warrant as
  follows: ARTICLE I THE LOAN 1.1 Type and Amount of Loan. Subject to the
  satisfaction of the terms and conditions hereof and at the discretion of the
  Lender, and in reliance on the representations and warranties contained
  herein and in the other Loan Documents as defined below, the Lender agrees to
  furnish a permanent mortgage loan to the Borrower in the amount of TWO
  MILLION SEVEN HUNDRED THOUSAND AND 00/100 DOLLARS ($2,700,000.00), to be
  secured by, among other things, a first mortgage on the real property
  commonly known as 15 Progress Drive and 30 Commerce Drive, Shelton,
  Connecticut and being more particularly described in Schedule A hereto attached
  hereto and made a part hereof (the “Property”). The Loan shall be used to (a)
  fund the Tenant Improvements (as hereinafter defined) and (b) pay related
  closing expenses. 1.2 Interest and Repayment of Principal of Loan. The
  promissory note evidencing the Loan (the “Note”) is attached hereto as
  Schedule B, and contains all the terms relative to the repayment of
  principal, the payment of interest and the rate at which interest shall
  accrue. 1.3 Guaranty. Each Guarantor shall unconditionally and jointly and
  severally guaranty lien free completion of the Tenant Improvements and the
  payment and performance of all of Borrower’s obligations under the Loan and
  the Loan Documents (collectively, the “Obligations”), including, without
  limitation. (i) repayment of all amounts due under the Loan, and (ii) lien
  free completion of the Tenant Improvements, pursuant to the terms of a
  guaranty (the “Guaranty”) in form and substance acceptable to the Lender.

  

 

	
  

  	
  1.4 Commercial
  Checking Account. Throughout the term of the Loan, the Borrower shall
  maintain a “Commercial Checking Account” in the name of the Borrower at the
  Lender into which Borrower shall deposit all advances under the Loan, all
  proceeds of sale from the sale of portions of the Property and all other
  income and profits derived from the Property. Without limiting the generality
  of the foregoing, the Borrower shall direct that all income and profits
  derived or received from the operation of the Property, including, without
  limitation, all rents and incomes received under any lease, including the
  Required Lease (as hereinafter defined), for all or any portion of the
  Property be directly deposited into said account. In furtherance thereof,
  Borrower will execute and deliver a notice to Required Tenant (as hereinafter
  defined) directing that the Required Tenant make all rent payments and all
  other payments required under the Required Lease to the Commercial Checking
  Account. Borrower hereby authorizes and directs Lender to automatically debit
  the Commercial Checking Account each calendar month during the term of the
  Loan in an amount equal to the sum of the following: (i) the amount necessary
  to establish and maintain an escrow account for annual estimated real estate
  taxes on the Property, insurance premiums and other charges and assessments
  which may accrue against the Property in accordance with the terms of the
  Mortgage; (ii) the next occurring installment of principal and interest due
  under the Note; and (iii) the next occurring Monthly Leasing Reserve Deposit
  (as hereinafter defined). 1.5 Reserve Escrow. (a) Commencing on the first day
  of the first month following the eighth (8th) anniversary of the Note (i.e.
  October 1, 2018) (the “Leasing Reserve Commencement Date”) and the first day
  of each month thereafter during the remaining term of Loan, Borrower shall be
  required to deposit, or direct the deposit, of the cash sum of Five Hundred
  Thousand and 00/100 Dollars ($500,000.00) (the “Leasing Reserve”). The
  Leasing Reserve shall be deposited with Lender in substantially equal monthly
  installments of Thirteen Thousand Nine Hundred Sixteen and 67/100 Dollars
  ($13,916.67) commencing with the first payment of principal and interest due
  under the Note on the first day of the first month following the Leasing
  Reserve Commencement Date (each a “Monthly Leasing Reserve Deposit”) until
  such time as the initial Leasing Reserve of Five Hundred Thousand and 00/100
  Dollars ($500,000.00) has been deposited. Notwithstanding the foregoing, the
  Borrower may pre-pay all or part of the Leasing Reserve provided that the
  aggregate sum deposited into the Leasing Reserve Account (as hereinafter
  defined) shall at all times be equal to or greater than the aggregate sum of
  the required Monthly Leasing Reserve Deposits which would have become payable
  on a monthly basis absent’ the pre-payment. All Monthly Leasing Reserve
  Deposits shall be paid to the Lender at the same time and in the same manner
  as the required monthly payment of principal, interest, tax and insurance
  escrow and shall be deposited by the Lender in an account (the “Leasing
  Reserve Account”) to be maintained at the Lender. The Leasing Reserve and all
  Monthly Leasing Reserve Deposits shall be deposited into the Leasing Reserve
  Account and shall not constitute a trust fund and may be commingled with
  other escrow monies held by Lender. The Borrower shall have no ability to
  withdraw any sums from the Leasing Reserve Account except for such
  disbursements as are authorized to be made by the Lender as set forth herein.
  Borrower shall execute and deliver to Lender a Pledge Agreement in form and
  substance acceptable to the Lender whereby the Borrower shall, inter alio’,
  pledge, assign and grant a security interest to Lender, as additional
  security for Loan, in all of Borrower’s right, title and interest in and to
  the Leasing Reserve Account, the funds contained therein and all 2

  

 

	
  

  	
  interest earned
  or accrued thereon, if any. During the existence of an Event of Default
  hereunder or under any other Loan Document, Lender may apply any sums then present
  in the Leasing Reserve Account to the payment of the Loan in any order in its
  sole discretion. (b) Except as set forth herein, the Lender shall retain the
  Leasing Reserve in the Leasing Reserve Account as additional collateral for
  the Loan. Once the Borrower has met the Leasing Requirements to the
  satisfaction of the Lender, the Lender shall disburse the funds from the
  Leasing Reserve Account as necessary but subject to the sole but reasonable
  discretion of the Lender and the terms of this Section 1.5, to fund or
  reimburse the Borrower for the Leasing Costs (as hereafter defined) upon
  presentation of an invoice or paid receipt and/or to fund debt service
  payments under the Loan in the event that rental payments under the Required
  Lease terminate prior to the Maturity Date (as defined in the Note). The
  Lender shall have no obligation to make any disbursements from the Leasing
  Reserve Account prior to the Borrower’s satisfaction of the Leasing
  Requirements or during the existence of an Event of Default, or there remains
  insufficient funds in the Leasing Reserve Account for disbursement. During
  the existence of an Event of Default, an event or condition exist that but
  for the giving of notice or the passage of time, or both, would constitute an
  Event of Default, or after depletion of the Leasing Reserve Account the
  Borrower shall pay all Leasing Costs out of its own, non- borrowed funds. (c)
  All advances from the Leasing Reserve Account shall be subject to the
  following additional conditions: (i) Upon ten (10) days prior written request
  from Borrower and satisfaction of the requirements set forth in herein,
  Lender shall disburse amounts from the Leasing Reserve to fund the actual
  Leasing Costs incurred by Borrower, or, in the event Borrower has paid such costs,
  reimburse Borrower for the actual Leasing Costs incurred by Borrower. Each
  request for disbursement from the Leasing Reserve shall be on a form provided
  or approved by Lender and shall include such information and additional
  documentation as Lender may require, in form and substance reasonably
  satisfactory to Lender. (ii) Lender shall have no obligation to make any
  advance if there exists an Event of Default, or any condition, circumstance
  or occurrence which but for the giving of notice or passage of time would
  constitute an Event of Default, under the Note, the Mortgage, or any other
  Loan Documents, or Borrower is in default under any lease, contract or
  obligation affecting the Property and such default under a lease, contract or
  obligation is material and adverse to Lender’s security, as determined by
  Lender in its sole but reasonable discretion. (iii) Notwithstanding anything
  contained herein to the contrary, Borrower shall not make a request for
  disbursement from the Leasing Reserve more frequently than once in any
  calendar month. (d) As used herein: 3

  

 

	
  

  	
  ((1)) “Leasing
  Requirements” shall mean the (A) renewal of the Required Lease for the entire
  Building (as hereinafter defined) for the first five (5) year renewal term
  provided for under the Required Lease or (ii) execution of a new lease with a
  new tenant or tenants for no less than ninety percent (90%) of the rentable
  area of the Building on terms and conditions acceptable to the Lender with a
  tenant or tenants whose credit is acceptable to the Lender, which leases will
  provide a debt service coverage ratio of not less than 1.40 to 1 for not less
  than a five (5) year term commencing upon scheduled expiration date for the
  Required Lease. (ii) “Leasing Costs” shall mean (A) the costs reasonably incurred
  by the Borrower to perform, or cause to be performed, tenant improvements
  required under any replacement lease or modification, renewal or extension of
  the Required Lease; and (B) the costs of leasing commissions incurred by
  Borrower in connection with the leasing of the Building or any portion
  thereof, provided that (x) such leasing commissions are reasonable and
  customary for properties similar to the Property and the portion of the
  Property leased for which such leasing commission is due, and (y) the amounts
  of such leasing commissions are determined pursuant to arm’s length
  transactions between Borrower and any leasing agent to which a leasing
  commission is due, and excluding any leasing commissions which shall be due
  any member, general partner or shareholder of Borrower or any affiliate of
  Borrower, except that Lender acknowledges (i) that an affiliate of Borrower
  may receive a “co-broker” commission of one percent (1%) in excess of the
  brokerage commission otherwise payable to CBRE (or any broker retained by
  Borrower to replace CBRE) pursuant to its listing agreement with Borrower and
  (ii) if Borrower’s leasing agent affiliate is the sole procuring broker
  Borrower’s affiliate can receive a market rate commission. 1.6 Initial Debt
  Service Reserve. Simultaneously with the execution of this Agreement, the
  Borrower shall deposit the sum of Thirty-Two Thousand Five Hundred Twenty-
  Seven and 30/100 Dollars ($32,527.30) (the “Initial Debt Service Reserve”)
  into a restricted reserve account in the Borrower’s name maintained at the
  Lender (the “IDS Reserve Account”). As security for full payment of the Loan
  and timely performance of Borrower’s obligations under the Loan Documents and
  this Agreement, Borrower hereby pledges, transfers, assigns and sets over to
  Lender, and grants to Lender a continuing security interest in and to, the
  Initial Debt Service Reserve and the IDS Reserve Account, all money deposited
  therein from time to time, and all profits and proceeds thereof. Borrower
  agrees to execute, acknowledge, deliver, file or do, at its sole expense, all
  other acts, assignments, notices, agreements or other instruments as Lender
  may reasonably require in order to perfect the foregoing security interest,
  pledge and assignment or otherwise to fully effectuate the rights granted to
  Lender by this Section. This Agreement also constitutes a “deposit account”
  and a “security agreement” within the meaning of Article 9 of the UCC (as
  hereinafter defined). In addition to all other rights and remedies provided
  for herein or otherwise available at law or in equity, Lender shall have all
  rights of a secured party under Article 9 of the UCC with respect to the
  Deposit Account and funds deposited therein. The Lender shall disburse the
  sums in the IDS Reserve Account to pay the monthly debt service (inclusive of
  monthly tax escrow) due under the Note as and when the same becomes payable
  unless (i) the Release Conditions (as hereinafter defined) are satisfied to
  the satisfaction of the Lender; (ii) there remains insufficient funds in the
  IDS Reserve Account; or (iii) there has been an Event of Default or event or
  condition which with the passage of time or 4

  

 

	
  

  	
  giving of
  notice, or both, would constitute an Event of Default hereunder or under any
  other Loan Documents. Provided that there exists no Event of Default, or fact
  or condition which with the passage of time or giving of notice, or both,
  would constitute an Event of Default, Lender shall disburse all funds then
  present in the IDS Reserve Account to Borrower following satisfaction of the
  Release Conditions. Upon the occurrence of an Event of Default, Lender may
  apply any sums then present in the IDS Reserve Account to the payment of the
  Loan in any order in its sole discretion. As used herein, the term “Release
  Conditions” shall mean that all of the following conditions have been
  satisfied to the full satisfaction of the Lender: (i) no Event of Default
  shall exist and remain uncured, or event or condition exist that but for the
  giving of notice or the passage of time, or both, would constitute an Event
  of Default hereunder or under any other Loan Documents; (ii) the Required
  Tenant has taken possession of the Building pursuant to the Required Lease
  and commenced the payment of rent thereunder; and (iii) the Required Tenant
  has executed and delivered to Lender an estoppel certificate certifying,
  among other things, (1) that the Required Tenant has taken occupancy of the
  Building and the Tenant Improvements have been completed and accepted by the
  Required Tenant, (2) that the payment of rent under the Required Lease has
  commenced as of January 1, 2011, (3) that no event of default or event or
  condition which with the passage of time or giving of notice, or both, would
  constitute an event of default has occurred or is continuing under the
  Required Lease, (4) that the Required Tenant has no current defenses or
  claims aginst the Borrower or rights of offset against any rents payable to
  the Borrower under the Required Lease or otherwise, and (5) as to such other
  matters as reasonably requested by the Lender. ARTICLE II COLLATERAL 2.1
  Collateral. In addition to other items of collateral or security as provided
  elsewhere herein, or in the Commitment Letter dated September 13, 2010
  between, inter alia, Borrower and the Lender (the “Commitment Letter”), the
  Loan shall be secured by: (a) Mortgage. An open-end mortgage deed and
  security agreement (the “Mortgage”) which shall be a first and valid mortgage
  lien upon Borrower’s fee simple interest in the Property, which Property is
  improved with an office/flex/warehouse building (the “Building”) containing
  53,164 square feet of gross building area, together with all appurtenances to
  the Property and all buildings and improvements now or hereafter erected
  thereon, including, but not limited to, parking sufficient to satisfy
  applicable zoning requirements. (b) Security Agreement. (i) As security for
  the payment of the Loan and the performance by the Borrower of its
  obligations hereunder and the other Loan Documents, the Borrower hereby
  mortgages, pledges and assigns to the Lender, and gives and grants to the
  Lender, security interests in all of its assets, including, without
  limitation, all of its personal property and fixtures which are now or
  hereafter installed, located on or used in connection with the Property and
  all of its right, title and interest in and to the items and types of
  property, described or referred to below, whether now owned or hereafter
  acquired and which are now or hereafter installed, located on or used in
  connection with the Property, and the proceeds and products thereof, (all of
  which property is herein collectively called the “UCC Collateral”), which
  security interest is and shall remain 5

  

 

	
  

  	
  first and prior
  and which UCC Collateral shall remain free and clear of all mortgages,
  pledges, security interests, liens, and other encumbrances and restrictions
  on the transfer thereof except liens permitted hereunder. (A) All of Borrower
  right, title and interest in and to all appliances, machinery and equipment
  owned by the Borrower now or hereafter installed, located on or used in
  connection with the Property, including but not limited to gas and electric
  fixtures, radiators, heaters, engines and machinery, boilers, ranges,
  elevators, escalators, incinerators, motors, dynamos, sinks, disposals,
  dishwashers, water closets, basins, medicine chests, pipes, faucets and other
  plumbing and heating fixtures, ventilating apparatus, dryers,
  air-conditioning equipment and units, paneling, refrigerating plant,
  refrigerators, whether mechanical or otherwise, fire prevention and
  extinguishing apparatus, shades, awnings, screens, blinds, carpeting, wall
  cabinets, furniture and equipment, and such other goods and chattels and
  personal property as are ever used or furnished in letting or operating
  buildings similar to the buildings, structures and improvements now or
  hereafter placed or located on the Property or in connection with the
  activities conducted therein, whether or not the same are or shall be
  attached to the Property in any manner, and also any and all other fixtures
  and articles of personal property owned by the Borrower now or hereafter
  attached to, or used in connection with, the Property. (B) All rents, income,
  profits, security deposits and other benefits to which the Borrower may now
  or hereafter be entitled from the leases of the Property, and/or the income
  generated from the business operations conducted at or from the Property. (C)
  All of the Borrower’s “Receivables” relating to the Property or the operation
  thereof which now exist or which hereafter arise, or in which the Borrower
  now has or may hereafter acquire any rights, which term shall include all
  accounts, contract rights, instruments, documents, chattel paper, general
  intangibles and all other forms of obligations owing to the Borrower,
  including, but not limited to, retainages, security deposits and insurance
  proceeds, and all proceeds of all such Receivables and all rights to any
  goods which are represented thereby. (D) All instruments, drafts,
  acceptances, documents, chattel paper, contract rights, general intangibles,
  securities, deposit accounts, certificates of deposit and notes, relating to
  the Property or the operation thereof under which the Borrower now has or in
  the future acquires any rights and all proceeds of all of the foregoing. (E)
  All of the Borrower’s right, title and interest in and to all intangible
  property and rights relating to the Property or the operation 6

  

 

	
  

  	
  thereof, or
  used in connection therewith, including but not limited to all names under or
  by which the Property or any present or future improvements on the Property
  may at any time be operated or known, and all rights to carry on business
  under any such names, or any variant thereof, and all trade names and
  trademarks, licenses and franchises relating in any way to the Property, and
  good will in any way relating to the Property. (F) All of the Borrower’s
  right, title and interest in and to proceeds of casualty and other insurances
  relating to the Property and all causes of action, claims, compensation and
  recoveries for any damage, condemnation or taking of the Property, or for any
  conveyance in lieu thereof, whether direct or consequential, or for any
  damage or injury to the Property, or for any loss or diminution in value of
  the Property. (G) All of the right, title and interest of Borrower in and to
  all refunds and rebates of taxes and assessments of every kind and nature
  imposed upon the Property. (H) The foregoing collateral includes all
  additions, replacements and substitutions thereof and thereto and all
  proceeds of all of the foregoing, as these terms are used and defined in the
  Uniform Commercial Code as adopted in the State of Connecticut (“UCC”). (I)
  All of the Borrower’s right, title and interest in and to the Commercial
  Deposit Account, the IDS Reserve Account, the Initial Debt Service Reserve,
  the Leasing Reserve Account and the Leasing Reserve. (J) All Proceeds (as
  such term is defined in Article 9 of the UCC), including without limitation
  all proceeds and all products of all UCC Collateral described above and any
  collateral described in any financing statement filed in connection with the
  transaction contemplated hereby. The security interest described herein
  continues in all UCC Collateral, notwithstanding sale, exchange or other
  disposition thereof by the Borrower. (ii) Authorization Re: Financing
  Statements. (A) The Lender may at any time and from time to time file
  financing statements, continuation statements and amendments thereto that
  describe the UCC Collateral and which contain any other information required
  by Lender or by Part 5 of Article 9 of the UCC for the sufficiency or filing
  office acceptance of any financing statement, continuation statement or
  amendment, including whether the Borrower is an organization, the type of
  organization and any organization identification number issued to the
  Borrower. The Borrower shall furnish any such identification number issued
  promptly to the Lender. 7

  

 

	
  

  	
  (B) The
  Borrower shall at any time and from time to time take such steps as the
  Lender may reasonably request for the Lender: (1) to obtain an
  acknowledgment, in form and substance satisfactory to the Lender of any
  bailee having possession of any of the UCC Collateral that the bailee holds
  such UCC Collateral for the Lender, (2) to obtain “control” of any investment
  property, deposit accounts, letter-of-credit rights or electronic chattel
  paper maintained at Lender (as such terms are defined in Article 9 of the UCC
  with corresponding provisions in §§ 9-104, 9-105, 9-106 and 9-107 relating to
  what constitutes “control” for such items of UCC Collateral), with any
  agreements establishing control to be in form and substance satisfactory to
  the Lender, and (3) otherwise to insure the continued perfection and priority
  of the Lender’s security interest in any of the UCC Collateral and of the
  preservation of its rights therein. (C) Nothing contained herein shall be
  construed to narrow the scope of the security interest granted hereby in any
  of the UCC Collateral or the perfection or priority thereof or to impair or
  otherwise limit any of the rights, powers, privileges or remedies of the
  Lender hereunder except as (and then only to the extent) specifically
  mandated by Article 9 of the UCC to the extent then applicable.
  Notwithstanding the foregoing, the parties agree that Lender’s security
  interest hereunder shall not extend to any Hazardous Substances (as
  hereinafter defined) or Hazardous Waste (as hereinafter defined) or devices
  utilized primarily for the storage of Hazardous Substances or Hazardous
  Waste. (c) Rents and Leases. (i) Lender shall be provided with a general
  assignment of rents and leases (the “Assignment of Leases”), in form and
  substance satisfactory to Lender of all leases (each. a “Lease” and
  collectively the “Leases”) and rents now existing or arising in the future
  with respect to the Property. The form and content of all Leases shall be
  acceptable to Lender and its counsel. Each and every Lease or rental
  agreement involving any part of the Property must be subordinate to the
  Mortgage and any and all modifications, renewals, extensions and/or
  replacements of said Mortgage. Lender’s title insurance shall insure such
  subordination. Borrower shall not enter into any Lease, sublease or other
  rental agreement without Lender’s prior written approval of said Lease or
  rental agreement, and in no event shall any Lease or rental agreement contain
  any option or rights of first refusal to purchase the Property or any portion
  thereof. Any tenant and/or occupant whose Lease is not automatically
  subordinate to the Mortgage on terms and conditions acceptable to the Lender
  shall duly execute and deliver to the Lender a subordination, ratification
  and attornment agreement, which agreement shall be satisfactory in form and
  substance to the Lender and shall provide, among other terms, that (A) tenant
  acknowledges the assignment of its Lease or rental agreement to the Lender;
  (B) upon notification from the Lender, the tenant and/or occupant shall pay,
  without set off or deduction, all rent and other sums due under its Lease
  and/or rental agreement directly to the Lender or its designee regardless of
  whether or not said tenant 8

  

 

	
  

  	
  or occupant
  receives a notice to the contrary from the Borrower; (C) the Lender shall not
  be responsible for refunding any security deposits unless the Lender has
  actually received said deposits; (D) that the parties will not modify, amend,
  cancel, surrender, or pledge or assign the Lease without the Lender’s
  consent; and (E) that the tenant will not terminate the Lease by reason of
  landlord’s default without at least ten (10) days’ written notice to the
  Lender and an opportunity to cure the default; and containing such other
  provisions as the Lender may reasonably require. If any lease approved by the
  Lender provides that the tenant under that Lease is entitled to a
  non-disturbance agreement from the Lender, the Lender agrees to issue such
  non-disturbance agreement from the Lender, the Lender agrees to issue such
  non-desturbance agreement as long as such tenant is not in any way affiliated
  with or owned or controlled by Borrower. If the Lender should so require, the
  written lease subordination, non-disturbance and attornment agreements
  described hereinabove shall be recorded in the Shelton Land Records. (ii)
  Lender shall be authorized to notify lessees of the existence of such
  assignments. Lender agrees, however, not to exercise any such assignments
  until such time as an Event of Default exists hereunder or under the Loan
  Documents. (d) Additional Security. In addition, the Loan shall be secured by
  such additional collateral documents relating to the Property and the
  improvements thereon as the Lender may require. (e) Loan Documents. All of
  the foregoing, and all other documents executed by Borrower or Guarantor in
  connection with the Loan being collectively referred to as the “Loan
  Documents”. ARTICLE III REPRESENTATIONS AND WARRANTIES To induce the Lender
  to enter into this Agreement and make the advances provided for herein, the
  Borrower and Guarantor (where indicated) hereby represent and warrant as of
  the date hereof and further represent and warrant throughout the term of this
  Agreement as follows: 3.1 Organization. Borrower is a limited liability
  company, duly organized, validly existing and in good standing under the laws
  of the State of Delaware; and Borrower has the power and authority to own its
  own properties and assets and to carry on its business as now being conducted
  and is qualified to do business in every jurisdiction wherein such
  qualification is necessary. 3.2 Authority of Borrower. Borrower has the power
  and authority to execute, deliver and perform this Agreement and to borrow
  hereunder, and to execute and deliver all documents and instruments required
  to be furnished by the Borrower hereunder, and the execution, delivery and
  performance of this Agreement, and all documents and instruments as may be
  required and any borrowings hereunder have been duly authorized by all
  requisite action. 3.3 Binding Effect. Borrower is not obligated under any
  contract or agreement or subject to any charter or other restriction which
  materially and adversely affects its respective business, properties, assets,
  or financial condition. The execution, delivery and performance of this
  Agreement, and all such other agreements and documents and instruments as may
  be 9

  

 

	
  

  	
  required
  hereunder and any covenant or condition contained herein or therein will not
  violate any provision of law, any order of any court or any rule, regulation
  or order of any governmental agency, the Operating Agreement of the Borrower,
  any agreement or other instrument to which the Borrower is a party, or by
  which the Borrower or any of its properties or assets are bound; and will not
  conflict with, result in a breach of or constitute a default under any
  indenture, agreement or other instrument, or result in the creation or
  imposition of any lien, charge or encumbrance of any nature whatsoever upon
  any of the properties or assets of the Borrower or any subsidiary or
  constitute grounds for the acceleration of any performance or compliance
  obligation of the Borrower or any subsidiary under any such indenture,
  agreement or instrument. When so executed and delivered, this Agreement, and
  all such other agreements and documents described herein will constitute the
  legal, valid and binding obligation of the Borrower enforceable in accordance
  with their terms. 3.4 Absence of Adverse Change; Financial Statements. There
  has been no material adverse change in the Borrower’s or any Guarantor’s
  financial condition or operations since the date of the most recent financial
  statements of the Borrower and each Guarantor which has been delivered to the
  Lender (the “Financial Statements”). The Financial Statements are correct and
  complete and accurately present the financial condition and operations of the
  Borrower and any subsidiary and each Guarantor as of the date thereof, and
  for the period then ended, and to the Borrower’s and each Guarantor’s best
  knowledge, were prepared in accordance with generally accepted accounting
  principles applied on a consistent basis with prior fiscal years. 3.5 Absence
  of Liens. All of the properties and assets of the Borrower and each Guarantor
  are free and clear of mortgages, pledges, liens, charges and other
  encumbrances except such as are described in the Financial Statements and the
  Borrower and each Guarantor have good and marketable title to their
  respective assets and properties. 3.6 Litigation. Except as described in
  Schedule 3.6, there is no litigation or administrative investigation or
  proceeding pending or, to the Borrower’s and each Guarantor’s actual
  knowledge, threatened against the Borrower or any Guarantor, whether or not
  covered by insurance, and neither the Borrower nor any Guarantor is in
  default with respect to any outstanding judgment, writ, order or decree
  issued by any court or governmental agency. 3.7 Absence of Default. Neither
  the Borrower nor any Guarantor is in default in any material respect in the
  performance of or compliance with any covenant or condition of any material
  agreement or obligation to which the Borrower or any Guarantor is a party or
  by which any of them is bound. 3.8 Taxes. The Borrower and each Guarantor
  have filed or caused to be filed all federal, state, local and foreign tax
  returns which are required to be filed, and have paid or caused to be paid
  all taxes as shown on such returns or on any assessment received by the
  Borrower or each Guarantor to the extent that such taxes have become due, and
  the Borrower and each Guarantor have no knowledge of any material liability
  (or basis therefor) for any tax to be imposed on the Borrower or any
  Guarantor or any of their respective assets or properties for which adequate
  provision has not been made in the Financial Statements. 10

  

 

	
  

  	
  3.9 ERISA
  Compliance. The Borrower and each Guarantor are in compliance with the
  applicable provisions of the Employee Retirement Income Security Act of 1974
  (“ERISA”). Neither the Borrower, any Guarantor nor any subsidiary has
  incurred any unremedied accumulated funding deficiency within the meaning of
  ERISA or any unsatisfied liability to the Pension Benefit Guaranty
  Corporation established under ERISA in connection with any employee pension
  plan established or maintained by the Borrower or any Guarantor under the
  jurisdiction of ERISA. No Reportable Event or Prohibited Transaction (as
  defined in Section 4043 of ERISA) has occurred with respect to any plan
  administered by the Borrower, any Guarantor or any subsidiary, or to the
  knowledge of the Borrower or any subsidiary, any other plan under the
  jurisdiction of ERISA. 3.10 Contracts, Permits and Approvals. All required
  permits, contracts and approvals required in connection with the current use
  and occupancy of the Property by all municipal, state and federal ordinances,
  regulations, laws and authorities have been acquired and are in full force
  and effect and are not in violation as of the date hereof. 3.11 Absence of
  Material Liabilities. There are no material liabilities, obligations or
  indebtedness of, the Borrower, any Guarantor or any subsidiary, which were
  not adequately disclosed or reflected fully in the Financial Statements.
  Since the date of the most recent Financial Statements, neither the Borrower,
  any Guarantor nor any subsidiary has incurred, assumed or had asserted
  against any of them any material liabilities, obligations or claims of any
  nature other than: (a) Liabilities, obligations or claims adequately
  disclosed in the Financial Statements; (b) Indebtedness incurred and
  contractual obligations assumed under purchase orders and sales orders
  arising in the ordinary course of business; (c) Standard product warranties;
  and (d) Obligations arising under this Agreement, or all other agreements,
  instruments or documents required hereunder. 3.12 Indebtedness and Leases.
  All existing indebtedness of the Borrower and each Guarantor, other than
  obligations to the Lender (i) for money borrowed under any credit agreement,
  loan agreement, promissory note, mortgage or similar agreement or (ii) under
  any guaranty, are described in the Financial Statements. The Financial
  Statements also contain a list and description of all leases and similar
  agreements or arrangements (including commitments classified as capital
  leases under generally accepted accounting principles) to which the Borrower
  or any Guarantor are a party, if any. Except as described in the Financial
  Statements, the Borrower and each Guarantor have no material lease or
  contract of any kind. All parties (including the Borrower and any Guarantor)
  to each such material lease or contract have complied with the provisions of
  such lease, contract or other commitment; no party is in default under any
  term or provision thereof, and no event has occurred which, but for the
  giving of notice or the passage of time, or both, would constitute a default.
  11

  

 

	
  

  	
  3.13 Other
  Material Agreements. The Borrower and each Guarantor are not a party to, nor
  are they bound by, any contract, agreement or instrument, or subject to any
  restrictions, materially affecting their ability (financial or otherwise) to
  perform any of their respective obligations under this Agreement, or any
  other agreement or instrument required hereunder. 3.14 Compliance with Laws.
  The Borrower and Guarantor have complied with all applicable laws with
  respect to (i) use and occupancy of the Property; (ii) the conduct of its
  business; and (iii) the use, maintenance and operation of the real and
  personal properties owned or leased by the Borrower and Guarantor in the
  conduct of their respective businesses. 3.15 No Finder’s Fee. Borrower represents
  that the only broker involved in this loan on behalf of Borrower is M. Robert
  Goldman & Co. and Borrower agrees to pay any and all commission due to
  such broker (the “Brokerage Commission”). No brokerage commission or
  compensation (whether to M. Robert Goldman & Co. or anyone else) is to be
  paid by the Lender in connection with the Loan; provided, however, that
  Borrower may use loan proceeds to pay the Brokerage Commission. Borrower
  hereby agrees to indemnify and hold the Lender harmless against any claim or
  any other such fees for a brokerage commission or compensation, including,
  without limitation, the Brokerage Commission. Lender and Borrower each
  warrant and represent to the other that they have not dealt with any broker
  with regard to this transaction except as expressly set forth in this
  Section. 3.16 Bankruptcy. As of the date hereof, no proceeding in bankruptcy,
  or for reorganization of the Borrower or any Guarantor, or the readjustment
  of any of their respective debts under the Bankruptcy Code, as amended, or
  any part thereof, or under any other laws, whether state or federal, for the
  relief of debtors has been commenced by the Borrower or any Guarantor or has
  been commenced against the Borrower or any Guarantor. As of the date hereof,
  no receiver or trustee has been appointed for the Borrower or any Guarantor,
  or for any substantial part of the assets of the Borrower or any Guarantor,
  and no proceeding has been instituted for the dissolution or the full or
  partial liquidation of the Borrower. 3.17 Accuracy of Disclosure. No schedule
  attached to this Agreement or written information supplied by or
  representation or warranty made by the Borrower or any Guarantor in this
  Agreement, and no statement or document given or to be given to the Lender pursuant
  hereto or with respect to the transactions contemplated herein, contains or
  will contain any untrue statement of material fact, or omits to state or will
  omit to state any material fact necessary to make the statements therein not
  misleading. 3.18 Leases. On the date hereof, the lease (the “Required Lease”)
  to Lex Products Corp. (“Required Tenant”) and all other leases described in
  the Rent Roll (as hereinafter defined) shall be in full force and effect. (i)
  Attached hereto as Schedule C is a true and accurate rent roll of tenants
  currently occupying any portion of the Property (the “Rent Roll”). 3.19
  Margin Stock. The Borrower is not engaged principally or as one of its
  activities in the business of extending credit for the purpose of purchasing
  or carrying any margin stock (as each such term is defined or used in
  Regulation U of Federal Reserve Board). No part of the proceeds of the Loan
  will be used for purchasing or carrying margin stock or for any purpose which
  violates the provisions of Regulation T, U or X of such Federal Reserve
  Board. 12

  

 

	
  

  	
  3.20 Government
  Regulation. The Borrower is not an investment company or a company controlled
  by an investment company (as each such term is defined or used in the
  Investment Company Act of 1940, as amended), and the Borrower is not, or
  after giving effect to the Loan will not be, subject to regulation under any
  other applicable law which limits its ability to incur or consummate the
  transactions contemplated hereby. 3.21 Foreign Assets Control Regulations.
  Neither the borrowing by Borrower nor the use of the proceeds thereof will
  violate the Foreign Assets Control Regulations, the Foreign Funds Control
  Regulations, the Transactions Control Regulations, the Cuban Assets Control
  Regulations, the Iranian Assets Control Regulations or any other transaction
  or asset control regulations of the United States Treasury Department (31
  C.F.R. Subtitle B, Chapter V, as amended). 3.22 Survival of Representations.
  All representations made in connection herewith shall be deemed to be relied
  upon by the Lender, notwithstanding any investigation hereinbefore or
  hereinafter made and shall survive as long as any amounts are owed hereunder.
  Upon full payment of all obligations of the Borrower to the Lender and the
  termination of the Loan, whether arising under this Agreement or any other
  agreement with the Lender, the representations and warranties and covenants
  and other continuing agreements of the Borrower and each Guarantor shall
  terminate and be of no force and effect. By making a request to the Lender
  for a loan or advance hereunder, including any advances or disbursements from
  the Leasing Reserve Account and/or the IDS Reserve Account, the Borrower
  shall be deemed to warrant that all of the representations and warranties contained
  in this Agreement are true and correct as of the date of such request.
  ARTICLE IV COVENANTS AND CONTINUING AGREEMENTS 4.1 Affirmative Covenants. The
  Borrower hereby covenants and agrees that from the date hereof and until
  payment in full of the principal of and the interest on the Loan and the
  termination of this Agreement, unless the Lender shall otherwise consent in
  writing, the Borrower will perform and observe the following covenants and
  agreements: (a) Punctual Payment. Pay the principal of and interest on the
  Loan at the place and in the manner stated in the Note. (b) Payment of Taxes,
  etc. Pay all taxes, assessments, governmental charges or levies imposed upon
  the Borrower or upon its income or profits or upon the Property prior to the
  date on which interest or penalties attach thereto, and all lawful claims
  which, if unpaid, might become a lien or charge upon the Property; provided
  that the Borrower shall not be required to pay any such tax, assessment,
  charge, levy or claim which is being contested in good faith and by proper
  proceedings and for which it shall have set aside on its books such reserves
  as the Lender may deem necessary with respect to any such tax, assessment,
  charge, levy or claim so contested. (c) Notice of Default. Notify the Lender
  in writing as soon as possible and in any event within ten (10) business days
  after obtaining knowledge of the occurrence of an Event of Default or any
  event which, with the giving of notice or passage of time or both, could 13

  

 

	
  

  	
  become an Event
  of Default, as defined in this Agreement by providing the Lender with a
  statement of the Borrower setting forth the details of such Event of Default.
  (d) Change of Ownership. Immediately notify the Lender of any change of
  ownership of the Borrower and any change of ownership affecting the control
  of the Borrower. (e) Commercial Checking Accounts. Maintain the Borrower’s
  bank account with the Lender in accordance with Section 1.4 hereof. (f) Inspection
  by Lender. The Borrower shall allow any representative of the Lender to visit
  and inspect the Property, to examine the books of account and other records
  and files of the Borrower, to make copies thereof and to discuss the affairs,
  business, finances and accounts of the Borrower with its officers and employees,
  all at reasonable times during Borrower’s regular business hours and as often
  as the Lender may request, but in no event more frequently than twice in any
  calendar month. (g) Financial Statements. Borrower and each Guarantor shall
  furnish or cause to be furnished to Lender the following: (i) within one
  hundred and twenty (120) days after the close of each fiscal year of Borrower
  that ends during the life of the Loan, financial statements with respect to
  the Property showing the annual rent roll, other income, and the detailed
  operating expenses of the Property prepared and certified by the Borrower,
  all in such detail as the Lender may reasonably require; (ii) at the same
  time as such the financial statements described in clause (i) above are to be
  furnished, financial statements of the Borrower, each Guarantor, and the
  Required Tenant in such form and detail as the Lender may require; (iii)
  within (15) days of filing, copies of all federal, state, and local tax
  returns together with all supporting schedules thereto for the Borrower, each
  Guarantor and the Required Tenant, and (iv) such other financial information
  in such detail as the Lender may reasonably require within ten (10) days of
  the Lender’s request for same. Notwithstanding the foregoing, if Borrower
  provides the Lender with complete signed copies of federal and state income
  tax returns there shall be no obligation to provide a separate financial
  statement of the Borrower. (h) Loan to Value Ratio. Prior to the closing of
  the Loan, the amount of the Loan may not exceed seventy percent (70%) of the
  “as is” appraised value of the Property (the “Loan to Value Ratio”). (i) Debt
  Service Coverage Ratio. Prior to closing the Property must maintain a debt
  service coverage ratio of not less than 1.88 to 1 (the “Starting DSCR”) based
  on the rental that will be payable under the Required Lease when such rent
  payments commence as scheduled on January 1, 2011. Throughout the term of the
  Loan, the Property must maintain debt service coverage ratio of not less than
  1.40 to 1 (the “Ongoing DSCR”) (the Starting DSCR and Ongoing DSCR shall be
  collectively referred to as the “Debt Service Coverage Ratio”). The Debt
  Service Coverage Ratio shall be determined by the Lender in its sole but
  reasonable discretion based upon the net operating income from the Property
  compared to total debt service under the Loan. Notwithstanding the foregoing
  in the event the Borrower fails to meet the Ongoing DSCR requirement at any
  time during the term of the Loan, such failure will not be an Event of
  Default hereunder if within thirty (30) days of demand by the Lender the
  Borrower establishes an account with the Lender (the “Debt Service Account”)
  with a cash balance equal 14

  

 

	
  

  	
  to the
  aggregate monthly debt service and tax escrow requirements for the twelve
  (12) month period following the date of such demand. The Lender may determine
  the adequacy of the balance of the Debt Service Account at any time and from
  time to time and if the Lender determines that such balance in inadequate, in
  its sole but reasonable discretion, the Lender may require the Borrower, within
  thirty (30) days of demand, to deposit such additional funds into the Debt
  Service Account as the Lender reasonably deems appropriate but in no event
  greater than an amount equal to the aggregate monthly debt service and tax
  escrow requirements for the twelve (12) month period following the date of
  such demand. The Debt Service Account will be pledged to the Lender as
  additional collateral for the Loan and held until maturity or until the
  Borrower obtains sufficient rental income to comply with the Ongoing DSCR
  requirement. From and after establishment of the required Debt Service
  Account the Lender shall debit the Debt Service Account on a monthly basis to
  pay monthly debt service and tax escrow amounts as the same become due and
  payable pursuant to the terms of the Note. (i) Environmental. Borrower shall
  diligently prosecute and complete the remaining remediation activities
  described in the Remedial Action Plan prepared by HRP Associates and dated
  June 2010 (including but not limited to the required additional rounds of
  groundwater monitoring) and completion of the Verification Reporting which
  Borrower represents is due to be completed by February 2011. 4.2 Negative
  Covenants. The Borrower covenants that from the date hereof until payment in
  full of the principal of and interest on the Loan and the termination of this
  Agreement, unless the Lender shall otherwise consent in writing, the Borrower
  shall not directly or indirectly: (a) Liens. Incur, create, assume or permit
  to exist any mortgage, lien, pledge, security interest or other encumbrance
  upon or in respect of the Property, whether now owned or hereafter acquired,
  other than the Mortgage or mortgages, liens, pledges, security interests and
  encumbrances in favor of the Lender. (b) Transfer of Property. Sell, transfer
  or convey any interest in the Property except as permitted herein or in the
  Mortgage. (c) Change in Control. Sell, transfer ownership or otherwise change
  the majority ownership interests, or change the management or control of
  Borrower; provided however that Lender’s consent to any such requested change
  in control of Borrower shall not be unreasonably withheld. Notwithstanding
  the foregoing the Lender will not withhold its consent to transfers of
  membership interests in the Borrower (i) between the existing members in
  Borrower or (ii) from the existing members of the Borrower to members of
  their immediate family (or trusts for benefit of such family members) for
  estate planning purposes provided that one or more of the Guarantors at all
  times retains management control of the Borrower. The Borrower shall give
  prior written notice to the Lender of any such proposed sale, conveyance,
  transfer, change or encumbrance. 4.3 Survival. All covenants and continuing
  agreements contained in this Article 4 shall survive as long as any amounts
  are due and owing under the Note, the Mortgage or any Loan Document. 15

  

 

	
  

  	
  ARTICLE V
  ENVIRONMENTAL PROVISIONS 5.1 Notification of the Lender. The Borrower shall
  immediately notify the Lender in writing of the occurrence of any of the
  following: (a) any release, discharge, spillage, emanation, uncontrolled loss
  or seepage of any Hazardous Substance on or from any real property owned or
  operated by the Borrower; (b) any order, notice of violation or other action
  by the State of Connecticut Department of Environmental Protection (the
  “DEP”), the United States Environmental Protection Agency (the “EPA”) or any
  similar entity pertaining to any alleged violation of any Environmental Law
  (as that term is defined in Section 5.4 hereof) by the Borrower or any
  alleged violation of any Environmental Law occurring on any real property
  owned or operated by the Borrower; or (c) any action by any party seeking to
  enforce any Environmental Law or seeking damages or other relief based on the
  Borrower’s alleged violation of any Environmental Law or any pollution or
  contamination caused by the Borrower or located on or emanating from any real
  property owned or operated by the Borrower. The Borrower shall provide the
  Lender with copies of all notices, orders, summonses, correspondence and
  other similar items delivered to or served upon the Borrower pertaining to
  any of the foregoing. Upon request, the Borrower shall furnish to the Lender
  or its designee, copies of all correspondence from the DEP, the EPA or any
  similar entity to the Borrower (other than routine mass informational
  mailings) and, shall direct such entity to send copies of all such
  correspondence directly to the Lender. Upon request, the Borrower shall
  furnish to the Lender copies of all correspondence from the Borrower to the
  DEP, the EPA, or any similar entity, copies of all periodic reports required
  by any Environmental Law or any Permit (as that term is defined in Section
  5.4 hereof) and copies of all records, forms and documents which the Borrower
  is required to produce or maintain pursuant to any Environmental Law or any
  Permit. 5.2 Remediation of Contamination. In the event that any real estate
  owned or operated by the Borrower is presently or in the future contaminated
  by Hazardous Substances or there occurs or has occurred any release, leakage,
  spillage, emanation, uncontrolled loss, or seepage of any Hazardous Substance
  on any real property owned or operated by the Borrower for which the State of
  Connecticut or the United States of America requires remediation, the
  Borrower, at its sole cost and expense, shall immediately take all actions
  required by the State or the federal government to mitigate the effects
  thereof. 5.3 Indemnification. The Borrower and each Guarantor agrees to
  indemnify the Lender against, to hold the Lender harmless from, and to
  reimburse the Lender for, any losses, claims, demands, damages, fines,
  penalties, liabilities (joint or several), costs and expenses (including,
  without limitation, reasonable fees and expenses of legal counsel for the
  Lender, consultant fees and expenses of investigation and laboratory costs)
  to which the Lender may be subjected, or which the Lender may pay, incur or
  sustain, in consequence of 16

  

 

	
  

  	
  (a) any
  presence, discharge, spillage, emanation, uncontrolled loss, seepage or
  filtration of any Hazardous Substance upon the Property in violation of any
  Environmental Law, (b) the violation of any law, statute, ordinance,
  regulation or similar standard related to environmental protection, pollution
  control, hazardous waste or other waste by the Borrower or occurring upon the
  Property, which violation has a material adverse effect on the financial
  condition of the Borrower or upon the Property, or (c) any personal injury
  (including wrongful death) or damage to property (whether real or personal)
  caused, directly or indirectly, by an occurrence described in (a) or (b)
  above. The provisions of this paragraph shall be in addition to any other
  obligations of the Borrower or any Guarantor to the Lender whether arising by
  contract, at law, in equity or by statute. The provisions of this paragraph
  shall survive payment of the Loan, foreclosure or release of any mortgages or
  security interests securing the Loan and termination of this Agreement. 5.4
  Operations of the Borrower. There shall be no material change in the
  operations or activities conducted on the Property without the Lender’s
  express prior written consent. The Borrower shall not use or store, and shall
  not permit any other party to use or store on the Property any hazardous
  wastes except in compliance with all applicable Environmental Laws (as
  hereafter defined). The Borrower shall not, and shall not permit any other
  party to, use or maintain the Property in a manner or conduct any operations
  or cause any occurrence thereon which would constitute a violation of any
  applicable laws, statutes, ordinances, regulations or similar standards,
  including, but not limited to, those relating to environmental protection,
  pollution control, hazardous wastes and other wastes (collectively referred
  to as “Environmental Laws”). The Borrower shall not permit any use of the
  Property or any event or occurrence thereon which could lead to the
  imposition of a lien or encumbrance against the Property pursuant to any
  Environmental Laws. If the activities conducted by the Borrower or by any
  other party on the Property require any permit, license or similar grant of
  governmental permission or approval (collectively referred to as “Permits”)
  pursuant to any Environmental Law, the Borrower shall apply for such Permits,
  or shall cause such. Permits to be applied for in a timely fashion. The
  Borrower shall take or cause to be taken all necessary actions to cause the
  timely renewal of all applicable Permits. All operations and activities
  conducted by the Borrower on the Property and all conditions on the Property
  shall be in accordance with, shall not exceed any limits or restrictions contained
  in, and shall not be violative of, any applicable Permit. “Hazardous Wastes”
  shall be defined as set forth in The Resource Conservation and Recovery Act
  as amended (42 U.S.C. §6901, et seq.) “Hazardous Substances” shall be defined
  as any substance which poses a present or potential hazard to human health or
  the environment when improperly disposed of, treated, stored or managed and
  shall include, but not be limited to, those substances classified as
  “hazardous substances”, “hazardous materials”, “hazardous wastes” and
  “hazardous chemical substances and mixtures” under the Environmental Laws. 17

  

 

	
  

  	
  ARTICLE VI
  DEFAULT 6.1 Events of Default. The occurrence of any one or more of the
  following events shall constitute an Event of Default hereunder and under the
  Note and Mortgage: (a) Failure to Pay. The Borrower shall fail to pay when
  due any installment of principal or interest due under the Note or pay any
  other amount due to the Lender under this Agreement or any document,
  agreement or instrument delivered pursuant to this Agreement or otherwise, or
  as a condition of making advances hereunder, or any other instrument
  evidencing indebtedness due to the Lender by the Borrower, and such failure
  shall continue beyond any applicable grace or cure period. (b) Failure to
  Perform. The Borrower shall fail to observe or perform any other term,
  covenant or agreement to be observed or performed by it under this Agreement,
  any other agreements or instruments or documents required hereunder, or as a
  condition to making advances hereunder if Borrower has not cured the same
  within thirty (30) days following notice from Lender to the Borrower,
  provided, however, that said notice and cure period shall not apply to any
  other failure which constitutes an Event of Default under any other
  sub-section of this Section 6.1. (c) Default in Other Instrument. An Event of
  Default shall exist under the terms of the Note, Mortgage, Guaranty or any
  other Loan Document to which the Borrower or any Guarantor is a party
  delivered to the Lender as required by this Agreement. (d) Failure by Other
  Party. Any subsidiary or affiliate of Borrower or any Guarantor shall fail to
  observe or perform any term, covenant or agreement contained in any
  agreement, document or instrument required to be executed and delivered by
  such party under this Agreement, and such failure shall continue for a period
  of thirty (30) days following notice from the Lender. (e) Cross Default.
  Intentionally Omitted. (f) False or Misleading Financial Statement or Other
  Statement. The Financial Statements or any other written statement,
  information, representation, warranty or certificate made or furnished by or
  on behalf of the Borrower, or any Guarantor in connection with this Agreement
  or as an inducement to the Lender to enter into this Agreement, shall prove
  to have been materially false or misleading when made. (g) Voluntary
  Insolvency. The Borrower or any Guarantor of the Loan shall become insolvent
  or admit its inability to pay its debts as they mature or shall make an assignment
  for the benefit of its or any of its creditors. (h) Bankruptcy. A proceeding
  in bankruptcy or for reorganization of the Borrower or any Guarantor or the
  readjustment of any of their respective debts under the Bankruptcy Code, as
  amended, or any part thereof, or under any other Laws, whether state or
  federal, for the relief of debtors now or hereafter existing, shall be
  commenced by the Borrower or any Guarantor or shall be commenced against the
  Borrower or any Guarantor; provided that if 18

  

 

	
  

  	
  such an action
  is instituted against the Borrower, it shall not be an Event of Default if
  such action is discharged within ninety (90) days after the commencement
  thereof. (i) Receiver. A receiver or trustee shall be appointed for the
  Borrower or any Guarantor or for any substantial part of its respective
  assets, or any proceeding shall be instituted for the dissolution or the full
  or partial liquidation of the Borrower or any Guarantor, and such receiver or
  trustee shall not be discharged within sixty (60) days of his appointment, or
  such proceeding shall not be discharged within sixty (60) days of its
  commencement; provided that the thirty (30) day period provided herein shall
  not apply to appointments or actions instituted by the Borrower or any
  Guarantor. (j) Validity. The validity or enforceability of this Agreement, or
  any note, mortgage, guaranty or other agreement, document or instrument
  contemplated hereunder shall be contested by the Borrower, any subsidiary,
  any Guarantor or affiliate, or any of such entities or individuals shall deny
  any further liability or obligation hereunder or thereunder or the Lender
  determines there is a commercially reasonable basis for such a contention.
  (k) Change in Business. The Borrower shall discontinue business or materially
  change the nature of its business. (1) Guarantor. There shall occur the death
  of or incapacity of the Guarantor. Notwithstanding the foregoing, the death
  of any one (1) Guarantor shall not be an Event of Default hereunder if the
  remaining Guarantors in the aggregate have (i) Liquidity (as hereinafter
  defined), as indicated on the Guarantors’ bank statements or other evidence
  reasonably satisfactory to the Lender, of not less than the greater of (1)
  Eight Hundred Forty-Two Thousand and 00/100 Dollars ($842,000.00); or (2)
  four (4) times the annual debt service under the Loan; and (ii) a Minimum Net
  Worth (as hereinafter defined) of not less than Five Million Four Hundred
  Thousand and 00/100 Dollars ($5,400,000.00). As used herein, the term
  “Liquidity” shall mean cash held in the name of Guarantor at any financial
  institution insured by the FDIC and/or cash equivalents (which are deemed to
  be certificates of deposit or similar instruments with maturities of less
  than thirty (30) days), including short term municipal and/or federal
  obligations, or readily marketable and publicly traded stocks or bonds, the
  identity and quality of which must be acceptable to the Lender in its sole
  discretion. As used herein, the term “Minimum Net Worth” is defined as all
  personal assets of each Guarantor less all personal liabilities of such
  Guarantor, each as reasonably estimated by the Lender based upon the same
  standards used by Lender to estimate the Minimum Net Worth of each party
  hereto upon origination of the Loan. Notwithstanding the foregoing, in the
  event that any Guarantor’s Liquidity is comprised, in whole or in part, by
  readily marketable and publicly traded stocks or bonds. the Lender reserves
  the right to review the Liquidity of Guarantor as and when reasonably determined
  by the Lender. If, as a result of any such review, it is determined by Lender
  in its sole but reasonable discretion that such stocks or bonds have
  decreased in value such that the Guarantor no longer complies with the
  Liquidity covenant herein contained, the Lender may require that the
  Guarantor supplement its Liquidity to satisfy the covenant hereinbefore
  described. (m) Adverse Change. The occurrence of a material adverse change in
  the condition, financial or otherwise, of the Borrower or any Guarantor of
  all or any portion of the 19

  

 

	
  

  	
  Loan provided
  that the same shall not be an Event of Default hereunder if the Guarantors
  shall have a Liquidity and Minimum Net Worth in the amounts required under
  Section 6.1(1) above. (n) Environmental. The occurrence of any of the events
  described in Section 5.3(a), (b) or (c) hereof if Borrower has not cured the
  same within ten (10) days following notice of such default by Lender to the
  Borrower, or within the time periods allowed by regulation, or by the appropriate
  regulating authorities, whichever period is longer. 6.2 Acceleration. During
  the existence of an Event of Default specified in Section 6.1 above, all
  obligations of the Borrower to the Lender, whether hereunder or otherwise,
  shall immediately become due and payable without further action of any kind,
  and any and all promissory notes of the Borrower to the Lender shall become
  due and payable, both as to principal and interest, without presentment,
  demand or other notice, all of which are expressly waived by the Borrower.
  6.3 Payments After Acceleration. The Lender shall have the right to accept
  any payments made with respect to the Loan following acceleration thereof,
  regardless of whether the Borrower has received notice of such acceleration.
  Such payment shall not cure any Event of Default, unless and until all
  obligations of the Borrower to the Lender are paid in full. The Lender’s
  acceptance of such payment shall not constitute a waiver of any right of the
  Lender nor shall acceptance of such payment constitute an agreement by the
  Lender to forbear from seeking collection of the Loan. ARTICLE VII GENERAL
  PROVISIONS 7.1 Amendments, Etc. No amendment, modification, termination, or
  waiver of any provision of this Agreement or any agreement, instrument or other
  document contemplated hereby, nor consent to any departure by the Borrower
  therefrom, shall in any event be effective unless the same shall be in
  writing and signed by the Lender, and then such waiver or consent shall be
  effective only in the specific instance and for the specific purpose for
  which given. No notice to or demand on the Borrower or any Guarantor in any
  case shall entitle the Borrower or Guarantor to any other or further notice
  or demand in similar or other circumstances. 7.2 Survival of Covenants. All
  covenants, agreements, representations and warranties made in this Agreement
  and in any certificates delivered pursuant to this Agreement shall survive
  until all obligations of the Borrower to the Lender are paid in full. 7.3
  Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
  GOVERNED BY THE LAWS OF THE STATE OF CONNECTICUT, WITHOUT REGARD TO
  PRINCIPLES OF CONFLICTS OF LAWS. Any action or proceeding to enforce or
  defend any rights under this Agreement or under any agreement, instrument or
  other document contemplated hereby or related hereto; directly or indirectly
  related to or connected with the Loan or the negotiation, administration or
  enforcement thereof; or arising from the debtor/creditor relationship of the
  Borrower and the Lender shall be brought either in the Superior Court of
  Connecticut or the United States District Court for the District of
  Connecticut; provided, however, that any action or suit on this Agreement,
  the Mortgage or Assignment of Leases or other collateral agreement securing
  the Loan may, at 20

  

 

	
  

  	
  Lender’s
  option, be brought either in any State or Federal court located within the
  County in which the property securing this Loan is located or any other
  Connecticut Court properly having jurisdiction. The parties hereto agree that
  any proceeding instituted in either of such courts shall be of proper venue,
  and waive any right to challenge the venue of such courts or to seek the
  transfer or relocation of any such proceeding for any reasons. The parties hereto
  further agree that such courts shall have personal jurisdiction over the
  parties. Any judgment or decree obtained in any such action or proceeding may
  be filed or enforced in any other appropriate court. 7.4 Waivers. THE
  BORROWER AND GUARANTORS ACKNOWLEDGE THAT THE TRANSACTIONS TO WHICH THIS LOAN
  AGREEMENT RELATE ARE COMMERCIAL TRANSACTIONS. THE BORROWER AND GUARANTOR
  HEREBY VOLUNTARILY AND KNOWINGLY WAIVE THEIR RIGHTS TO NOTICE AND HEARING
  UNDER CHAPTER 903a OF THE CONNECTICUT GENERAL STATUTES, AS AMENDED AND IN
  EFFECT ON THE DATE HEREOF, OR AS OTHERWISE ALLOWED BY ANY STATE OR FEDERAL
  LAW WITH RESPECT TO ANY PREJUDGMENT REMEDY OR OTHER RIGHT OR REMEDY THAT THE
  LENDER MAY ELECT TO USE OR OF WHICH IT MAY AVAIL ITSELF. THE BORROWER AND
  GUARANTORS FURTHER WAIVE, TO THE GREATEST EXTENT PERMITTED BY LAW, THE
  BENEFITS OF ALL PRESENT AND FUTURE VALUATION, APPRAISEMENT, EXEMPTION, STAY,
  REDEMPTION AND MORATORIUM LAWS. THE BORROWER AND GUARANTORS FURTHER WAIVE ANY
  REQUIREMENT THAT LENDER OBTAIN A BOND OR OTHER SIMILAR DEVICE IN CONNECTION
  WITH THE EXERCISE OF ANY REMEDY OR THE ENFORCEMENT OF ANY RIGHT HEREUNDER.
  7.5 Severability. In ease any one or more of the provisions contained in this
  Agreement, or any of the documents or agreements contemplated hereby, should
  be invalid, illegal or unenforceable in any respect, the validity, legality,
  and enforceability of the remaining provisions contained herein shall not in
  any way be affected or impaired thereby. 7.6 Counterparts. This Agreement may
  be executed in any number of counterparts, each of which shall be deemed to
  be an original, but all of which together shall constitute but one and the
  same agreement. 7.7 Captions. The articles and section captions are inserted
  herein only as a matter of convenience and for reference, and in no way
  define, limit or describe the scope or intent of any such article or section,
  nor in any way affect this Agreement. 7.8 Prior Agreements Superseded. This
  Agreement, together with all agreements and documents concurrently executed,
  constitutes the entire understanding and agreement between the parties hereto
  and thereto pertaining to the subject matter hereof and thereof and
  completely and fully supersedes all prior and contemporaneous understandings
  or agreements, both written and oral, between the Lender and the Borrower
  relating to the subject matter hereof, excluding, however, the Commitment
  Letter executed in anticipation of the execution of this Agreement which
  shall survive to the extent that it is not inconsistent with this Agreement,
  the Mortgage, the Note or any other Loan Document. 21

  

 

	
  

  	
  7.9 Recovery of
  Payments. In the event that all or any part of any payments made to the
  Lender shall be rescinded, avoided or recovered from the Lender for any
  reason whatsoever, including, but not limited to, proceedings in connection
  with the insolvency or bankruptcy of the Borrower or the paying party, the
  amount of such rescinded, avoided or recovered payment shall be added to the
  obligations of the Borrower to the Lender and all representations, warranties
  and covenants of the Borrower shall remain in full force and effect and the
  Borrower shall remain liable to the Lender for the amount of such rescinded,
  avoided or recovered payments in accordance with this Agreement. 7.10 No
  Commitment to Extend or Refinance. The Borrower acknowledges that it is
  Borrower’s responsibility to pay the Loan as required hereunder. Except as
  otherwise specifically provided herein, the Lender is under no obligation to
  extend the maturity date of or refinance the Loan or to provide additional
  financing to the Borrower. The Borrower acknowledges that, as of the date
  hereof, the Lender has not made any commitment or representations pertaining
  to the further extension or refinancing of the Loan or the provision of
  additional financing to the Borrower. The Borrower further acknowledges that
  no oral representations or commitments by the Lender or any officer or
  employee thereof pertaining to the further extension or refinancing of the
  Loan or the provision of additional financing shall be binding upon the
  Lender. 7.11 Jurisdiction and Venue. Any action or proceeding to enforce or
  defend any rights under this Agreement or under any agreement, instrument or
  other document contemplated hereby or related hereto; directly or indirectly
  related to or connected with the Loan or the administration or enforcement
  thereof; or arising from the debtor/creditor relationship of the Borrower and
  the Lender shall be brought only in the Superior Court of Connecticut or the
  United States District Court for the District of Connecticut. The parties
  hereto agree that any proceeding instituted in either of such courts shall be
  of proper venue, that such courts shall have personal jurisdiction over the
  parties and that any and all pleadings, summons, motions and other process in
  such proceeding shall be fully and effectively served when transmitted by
  United States Mail (registered or certified), postage and registry fees
  prepaid. Any judgment or decree obtained in any such action or proceeding may
  be filed or enforced in any other appropriate court. 7.12 Mutual Agreement.
  Each and every provision of this Agreement has been mutually negotiated,
  prepared and drafted. Each party hereto has been represented by legal counsel
  or has had the opportunity to be represented by legal counsel. In connection
  with the construction or interpretation of any provision hereof or deletions
  therefrom, no consideration shall be given to the issue of which party
  actually prepared, drafted, requested or negotiated any provision or
  deletion. This Agreement shall not be construed more severely against any one
  party hereto than against any other party hereto. 7.13 Relationship of the
  Parties. Nothing contained in this Agreement or in the transactions
  contemplated hereby shall be deemed or construed to create the relationship
  of partner or joint venturer as between the Lender and the Borrower, it being
  agreed and understood that the only relationship between the parties is that
  of lender and borrower. Borrower agrees to indemnify Lender and hold Lender
  harmless from any damages and expenses resulting from any construction of the
  relationship between the parties as a partnership or joint venture. 22

  

 

	
  

  	
  7.14 Right to
  Charge Account. The Lender, at its option, may effect the payment of any
  amount due hereunder by charging any of the Borrower’s accounts with the
  Lender. This right does not affect the Borrower’s obligation hereunder to
  make timely payments or require the Lender to exercise such option. 7.15
  Waiver of Jury Trial. THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN
  ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT
  OR UNDER ANY AGREEMENT, INSTRUMENT OR OTHER DOCUMENT CONTEMPLATED HEREBY OR
  RELATED HERETO AND IN ANY ACTION DIRECTLY OR INDIRECTLY RELATED TO OR
  CONNECTED WITH THE LOANS PROVIDED FOR HEREIN, OR ANY CONDUCT RELATING TO THE
  ADMINISTRATION OR ENFORCEMENT OF SUCH LOAN OR ARISING FROM THE
  DEBTOR/CREDITOR RELATIONSHIP OF THE PARTIES HERETO. THE BORROWER ACKNOWLEDGES
  THAT THIS WAIVER MAY DEPRIVE IT OF AN IMPORTANT RIGHT AND THAT SUCH WAIVER
  HAS KNOWINGLY BEEN AGREED TO BY THE BORROWER. 7.16 Notices, Any notice or
  demand which is made hereunder shall be delivered by personal service, by
  registered or certified mail. return receipt requested, or by recognized
  overnight courier, at the address herein set forth or at such other address
  which either party may give the other notice of in writing in the manner
  provided in this section and such delivery shall be deemed upon receipt or
  refusal to accept. Notice to the Lender hereunder shall be directed to the
  attention of the Commercial Mortgage Department. Any notice from Lender to
  Borrower concerning an Event of Default hereunder shall be provided to each
  Guarantor at their addresses first set forth above and otherwise in
  accordance with this Section 7.16. 7.17 Patriot Act Compliance. Borrower will
  use its good faith and commercially reasonable efforts to comply with the
  Patriot Act (as defined below) and all applicable requirements of governmental
  authorities having jurisdiction of the Borrower and the Property, including
  those relating to money laundering and terrorism. The Lender shall have the
  right to audit the Borrower’s compliance with the Patriot Act and all
  applicable requirements of governmental authorities having jurisdiction of
  the Borrower and the Property, including those relating to money laundering
  and terrorism. In the event that the Borrower fails to comply with the
  Patriot Act or any such requirements of governmental authorities, then the
  Lender may, at its option, cause the Borrower to comply therewith and any and
  all reasonable costs and expenses incurred by the Lender in connection
  therewith shall be secured by the Mortgage and the other Loan Documents and
  shall be immediately due and payable. For purposes hereof, the term “Patriot
  Act” means the Uniting and Strengthening America by Providing Appropriate
  Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of
  2001, as the same may be amended from time to time, and corresponding
  provisions of future laws. Neither the Borrower nor any partner in the
  Borrower or member of such partner nor any owner of a direct or indirect
  interest in the Borrower nor any Guarantor (a) is listed on any Government
  Lists (as defined below), (b) is a person who has been determined by
  competent authority to be subject to the prohibitions contained in
  Presidential Executive Order No. 13224 (Sept. 23, 2001) or any other similar
  prohibitions contained in the rules and regulations of OFAC (as defined
  below) or in any enabling legislation or other Presidential Executive Orders
  in 23

  

 

	
  

  	
  respect
  thereof, (c) has been previously indicted for or convicted of any felony
  involving a crime or crimes of moral turpitude or for any Patriot Act Offense
  (as defined below), or (d) is not currently under investigation by any
  governmental authority for alleged criminal activity. For purposes hereof,
  the term “Patriot Act Offense” means any violation of the criminal laws of
  the United States of America or of any of the several states, or that would
  be a criminal violation if committed within the jurisdiction of the United
  States of America or any of the several states, relating to terrorism or the
  laundering of monetary instruments, including any offense under (a) the
  criminal laws against terrorism; (b) the criminal laws against money
  laundering, (c) the Lender Secrecy Act, as amended, (d) the Money Laundering
  Control Act of 1986, as amended, or (e) the Patriot Act. “Patriot Act
  Offense” also includes the crimes of conspiracy to commit, or aiding and
  abetting another to commit, a Patriot Act Offense. For purposes hereof, the
  term “Government Lists” means (i) the Specially Designated Nationals and
  Blocked Persons Lists maintained by Office of Foreign Assets Control
  (“OFAC”), (ii) any other list of terrorists, terrorist organizations or
  narcotics traffickers maintained pursuant to any of the Rules and Regulations
  of OFAC that Lender notified Borrower in writing is now included in
  “Governmental Lists”, or (iii) any similar lists maintained by the United
  States Department of State, the United States Department of Commerce or any
  other governmental authority or pursuant to any Executive Order of the
  President of the United States of America that Lender notified Borrower in
  writing is now included in “Governmental Lists”. 7.18 Usury Savings Clause.
  It is the intent of Lender and Borrower to comply at all times with
  applicable usury laws. If at any time such laws would render usurious any
  amounts called for under any of the Loan Documents, then it is Borrower’s and
  Lender’s express intention that such excess amount be immediately credited on
  the principal balance of the Note (or, if the Note has been fully paid,
  refunded by Lender to Borrower, and Borrower shall accept such refund), and
  the provisions hereof and thereof be immediately deemed to be reformed and
  the amounts thereafter collectible hereunder reduced to comply with the then
  applicable laws, without the necessity of the execution of any further
  documents, but so as to permit the recovery of the fullest amount otherwise
  called for hereunder and thereunder. Any such crediting or refund shall not
  cure or waive any default by Borrower under any of the Loan Documents. If at
  any time following any such reduction in the interest rate payable by
  Borrower, there remains unpaid any principal amounts under the Note and the
  maximum interest rate permitted by law is increased or eliminated, then the
  interest rate payable hereunder shall be readjusted, to the extent permitted
  by applicable law, so that the total dollar amount of interest payable
  hereunder shall be equal to the dollar amount of interest which would have
  been paid by Borrower without giving effect to the reduction in interest
  resulting from compliance with the applicable usury laws theretofore in
  effect. Borrower agrees, however, that in determining whether or not any
  interest payable under any of the Loan Documents is usurious, any
  non-principal payment (except payments specifically stated in the Note or in
  any other Loan Documents to be interest), including, without limitation,
  prepayment fees and late charges, shall be deemed to the extent permitted by
  law, to be an expense, fee, premium or penalty rather than interest. 7.19
  Assignment, Syndication and Participation. The Lender reserves the right to
  assign all or any portion of the Loan to other lenders (with a corresponding
  reduction in Lender’s share of the Loan) or to participate out all or any
  portion of the Loan. The Borrower and Guarantor grants to the Lender the
  right to distribute to potential investors, assignees and participants,
  without further notice to the Borrower or Guarantor, and at the Lender’s sole
  24

  

 

	
  

  	
  discretion, any
  information relative to the Borrower, including, but not limited to,
  preliminary budgets, pro forma statements and financial statements. The
  rights conferred upon the Lender by this Agreement shall be automatically
  extended to and vested in any assignee or transferee of the Lender upon the
  Borrower’s receipt of notice of such assignment or transfer; provided,
  however, that no such assignment or transfer shall enlarge or modify the
  obligations of the Borrower or Guarantor hereunder. 7.20 Appraisals. From
  time to time, Borrower shall permit the Lender to obtain additional appraisals
  of all or any portion of the Property, and if an appraisal is required by
  law, is made to ascertain the value of the Property upon considering a loan
  extension, or is commissioned following an Event of Default, then Borrower
  shall pay to the Lender within ten (10) business days of demand all costs of
  such appraisal. Appraisals shall be the property of the Lender but provided
  the Borrower is not in default hereunder, the Lender shall provide copies of
  any appraisals to Borrower or any Guarantor upon Borrower’s request provided
  the Borrower and any receiving Guarantor signs the Lender’s standard
  appraisal release letter. No Further Text On This Page — Signature Page
  Follows 25

  

 

	
  

  	
  IN WITNESS
  WHEREOF, the parties hereto have duly executed this Agreement as of the day
  and year first above written. Signed, sealed and delivered in the presence
  of: PEOPLE’S UNITED BANK By: Suzanne G. Wakeen Its Vice President BORROWER:
  WU/LH 15 PROGRESS L.L.C., a Delaware limited liability company By: Lighthouse
  100 William Operating LLC Its: Manager By: Its Duly Authorized GUARANTORS:
  PAUL A. COOPER JEFFREY D. RAVETZ ( LOUIS E. SHEINKER JEFFREY WU (a/k/a Myint
  J. Kyaw) 26

  

 

	
  

  	
  IN WITNESS
  WHEREOF, the parties hereto have duly executed this Agreement as of the day
  and year first above written. Signed, sealed and delivered in the presence
  of: PEOPLE’S UNITED BANK By: Suzanne G. Wakeen Its Vice President BORROWER:
  WU/LH 15 PROGRESS L.L.C., a Delaware limited liability company By: Lighthouse
  100 William Operating LLC Its: Manager By: Its Duly Authorized GUARANTORS:
  PAUL A. COOPER JEFFREY D. RAVETZ ( LOUIS E. SHEINKER JEFFREY WU (a/k/a Myint
  J. Kyaw) 26

  

 

	
  

  	
  IN WITNESS
  WHEREOF, the parties hereto have duly executed this Agreement as of the day
  and year first above written. Signed, sealed and delivered in the presence
  of: PEOPLE’S UNITED BANK By: Suzanne G. Wakeen Its Vice President BORROWER:
  WU/LH 15 PROGRESS L.L.C., a Delaware limited liability company By: Lighthouse
  100 William Operating LLC Its: Manager By: Its Duly Authorized GUARANTORS:
  PAUL A. COOPER JEFFREY D. RAVETZ ( LOUIS E. SHEINKER JEFFREY WU (a/k/a Myint
  J. Kyaw) 26

  

 

	
  

  	
  STATE OF
  CONNECTICUT ) ) ss, Brid geport COUNTY OF FAIRFIELD ) On this the 30th day of
  September, 2010, before me, the undersigned officer, personally appeared
  Suzanne G. Wake n, who acknowledged herself to be a Vice President of
  PEOPLE’S UNITED BANK, a federal savings bank, and that she, as such officer,
  being authorized so to do, executed the foregoing instrument for the purposes
  therein contained by signing the name of the federal savings bank by herself
  as such officer. IN WITNESS WHEREOF, I hereunto set my hand Commissioner of
  the Superior Court Notary Public My Commission Expires: STATE OF NEW YORK ) )
  ss: COUNTY OF NASSAU ) On the 28th day of September in the year 2010 before me,
  the undersigned, a Notary Public in and for the State of New York, personally
  appeared LOUIS SHEINKER personally known to me or proved to me on the basis
  of satisfactory evidence to be the individual whose name is subscribed to the
  within instrument and acknowledged to me that he executed the same in his
  capacity and that by his signature on the instrument, the individual, or the
  person upon behalf of which the individual( acted, executed the instrument.
  IN WITNESS WHEREOF, I hereunto set my hand. Notary Public My Commission
  Expires: January 11, 2014 FRANCES M. PEPE NOTARY PUBLIC, State of New York
  No. 01 PE4915564 Qualified in Queens County Commission Expires Jan. 11, 2014
  27

  

 

	
  

  	
  STATE OF NEW
  YORK ) ) ss: COUNTY OF NASSAN ) On the 28th day of September in the year 2010
  before me, the undersigned, a Notary Public in and for the State of New York,
  personally appeared PAUL A. COOPER personally known to me or proved to me on
  the basis of satisfactory evidence to be the individual whose name is
  subscribed to the within instrument and acknowledged to me that he executed
  the same in his capacity, and that by his signature on the instrument, the
  individual, or the person upon behalf of which the individual acted, executed
  the instrument. IN WITNESS WHEREOF, I hereunto set my hand. Notary Public My
  Commission Expires: January 11, 2014. STATE OF NEW YORK ) ) ss: COUNTY OF )
  FRANCES M. PEPE NOTARY PUBLIC, State of New York No. 01PE4915564 Qualified in
  Queens County Commission Expires Jan. 11, 2014 On the day of in the year 2010
  before me, the undersigned, a Notary Public in and for the State of New York,
  personally appeared JEFFREY D. RAVETZ personally known to me or proved to me
  on the basis of satisfactory evidence to be the individual whose name is
  subscribed to the within instrument and acknowledged to me that he executed
  the same in his capacity, and that by his signature on the instrument, the
  individual, or the person upon behalf of which the individual acted, executed
  the instrument. IN WITNESS WHEREOF, I hereunto set my hand. Notary Public My
  Commission Expires: 28

  

 

	
  

  	
  STATE OF NEW
  YORK ) ) ss: COUNTY OF ) On the day of in the year 2010 before me, the
  undersigned, a Notary Public in and for the State of New York, personally
  appeared PAUL A. COOPER personally known to me or proved to me on the basis
  of satisfactory evidence to be the individual whose name is subscribed to the
  within instrument and acknowledged to me that he executed the same in his
  capacity, and that by his signature on the instrument, the individual, or the
  person upon behalf of which the individual acted, executed the instrument. IN
  WITNESS WHEREOF, I hereunto set my hand. Notary Public My Commission Expires:
  STATE OF NEW YORK ) ) ss: COUNTY OF New York ) On the 29th day of September
  in the year 2010 before me, the undersigned, a Notary Public in and for the
  State of New York, personally appeared JEFFREY D. RAVETZ personally known to
  me or proved to me on the basis of satisfactory evidence to be the individual
  whose name is subscribed to the within instrument and acknowledged to me that
  he executed the same in his capacity, and that by his signature on the
  instrument, the individual, or the person upon behalf of which the individual
  acted, executed the instrument. IN WITNESS WHEREOF, I hereunto set my hand.
  Notary Public My Commission Expires: January 11, 2014 FRANCES M. PEPE NOTARY
  PUBLIC, State of New York No. 01PE4915564 Qualified in Queens County
  Commission Expires Jan. 11, 2014 28

  

 

	
  

  	
  STATE OF NEW
  YORK ) ) ss: COUNTY OF NASSAN ) On the 28th day of September in the year 2010
  before me, the undersigned, a Notary Public in and for the State of New York,
  personally appeared LOUIS E. SHEINKER personally known to me or proved to me
  on the basis of satisfactory evidence to be the individual whose name is
  subscribed to the within instrument and acknowledged to me that he executed
  the same in his capacity, and that by his signature on the instrument, the
  individual, or the person upon behalf of which the individual acted, executed
  the instrument. IN WITNESS WHEREOF, I hereunto set my hand. Notary Public My
  Commission Expires: January 11, 2014 FRANCES M. PEPE NOTARY PUBLIC, State of
  New York No. 01PE4915564 Qualified in Queens County Commission Expires Jan,
  11, 2014 STATE OF NEW YORK ) ) ss: COUNTY OF ) On the day of in the year 2010
  before me, the undersigned, a Notary Public in and for the State of New York,
  personally appeared JEFFREY WU, also known as Myint J. Kyaw personally known
  to me or proved to me on the basis of satisfactory evidence to be the
  individual whose name is subscribed to the within instrument and acknowledged
  to me that he executed the same in his capacity, and that by his signature on
  the instrument, the individual, or the person upon behalf of which the individual
  acted, executed the instrument. IN WITNESS WHEREOF, I hereunto set my hand.
  Notary Public My Commission Expires: 29

  

 

	
  

  	
  STATE OF NEW
  YORK ) ) ss: COUNTY OF ) On the day of in the year 2010 before me, the
  undersigned, a Notary Public in and for the State of New York, personally
  appeared LOUIS E. SHEINKER personally known to me or proved to me on the
  basis of satisfactory evidence to be the individual whose name is subscribed
  to the within instrument and acknowledged to me that he executed the same in
  his capacity, and that by his signature on the instrument, the individual, or
  the person upon behalf of which the individual acted, executed the
  instrument. IN WITNESS WHEREOF, I hereunto set my hand. Notary Public My
  Commission Expires: STATE OF NEW YORK ) ) ss: COUNTY OF QUEENS ) On the 28th
  day of September in the year 2010 before me, the undersigned, a Notary Public
  in and for the State of New York, personally appeared JEFFREY WU, also known
  as Myint J. Kyaw personally known to me or proved to me on the basis of
  satisfactory evidence to be the individual whose name is subscribed to the
  within instrument and acknowledged to me that lie executed the same in his
  capacity, and that by his signature on the instrument, the individual, or the
  person upon behalf of which the individual acted, executed the instrument. IN
  WITNESS WHEREOF, I hereunto set my hand. Notary Public My Commission Expires:
  LILING YUNG Notary Public, State of New York No. 01 YU5004939 Qualified in
  Suffolk County Term Expires November 30, 2010 29

  

 

	
  

  	
  SCHEDULE A
  LEGAL DESCRIPTIOIN All that certain piece or parcel of land located in the
  City of Shelton, County of Fairfield and State of Connecticut known as Parcel
  land Parcel 2 on a certain map entitled, Perimeter Survey of Property Located
  at 15 Progress Drive & 30 Commerce Drive, Shelton, Connecticut Prepared
  for ” Baker Properties Limited Partnership “by XXX - Tiso & Co LLC, dated
  October 16, 2007, Seate [” =40’ on file as Map No. 4293 in the Office of the
  Town Clerk for the City of Shelton said parcel being bounded and described as
  follows: AS TO 30 COMMERCE DRIVE: Commencing of a point on the southerly
  street line of Commerce Drive, Said point being the northeasterly corner of
  land now or formerly of Second Treetops, LLC, said point also being the
  northwesterly corner of the parcel herein described: thence in a
  southeasterly direction along the southerly street line of Commerce Drive,
  the following two courses 5 84’ 36’ 00” E 282.28 feet and along XXX curve to
  the left having XXX radius of 136 00 feet, an interior angle of 5’09’ 51”,
  and on are length of 66.34 feet to a point: thence in a southeasterly
  direction along the intersection of the southerly street line of Commerce
  Drive with the westerly street line of Progress Drive, along XXX curve to the
  right having a radius of 50,00 feet, an interior angle of 54’ 42’09”. And XXX
  are length of 47,”4 feet to a point; thence S 01’03’XXX” E along the westerly
  street line of Progress Drive, a distance of 510.00 feet to a point; thence N
  84’ 01’ 29’ XXX southerly by other land now or XXX of Baker Properties
  Limited Partnership a distance of 428.50 feet to a point; thence N 05’ 04’
  41” E, bounded westerly by land now or XXX of Second XXX LLC, a distance of
  537.65 feet to the period of commencement. AS TO 15 PROGRESS DRIVE:
  Commencing at a point on the westerly street line of Progress Drive, said
  point being the northeasterly corner of land now or formerly of John P.
  McCue, said point also being the southeasterly corner of the parcel herein
  described; thence S 88’ 56’ 12” W, bounded southerly by land now or formerly
  of John P. McCue, a distance of 477 60 feet to a point; thence N 12’ 29’ 52”
  W, bounded southwesterly by land now or formerly of 6 Research Drive, LLC, a
  distance of 465,70 feet to a point; thence S 84’ 01’ 29” E, bounded northerly
  by other land of Baker Properties Limited Partnership, a distance of 574,25
  feet to a point; thence S 01’ 03’ 48” E along the westerly street line of
  Progress , a distance of 388.09 feet to the point of commencement.

  

 

	
  

  	
  SCHEDULE B
  PROMISSORY NOTE See Attached 31

  

 

	
  

  	
  Promissory Note
  Bridgeport, Connecticut $2,700,000.00 September 30, 2010 FOR VALUE RECEIVED,
  the undersigned, WU/LH 15 PROGRESS L.L.C., a Delaware limited liability
  company, having an address of 60 Hempstead Avenue, Suite 718, West Hempstead,
  New York 11552 (hereinafter called “Borrower”), promises to pay to the order
  of PEOPLE’S UNITED BANK, a federal savings bank having an office at 850 Main
  Street, Bridgeport, Connecticut 06604 (the “Lender”), the principal sum of
  TWO MILLION SEVEN HUNDRED THOUSAND AND 00/100 ($2,700,000.00), plus interest,
  payable at the rate and in the manner provided in paragraphs 1 and 2 of this
  Note, together with all taxes assessed upon said sum against the holder
  hereof, and any costs and expenses, including reasonable attorneys’ fees,
  incurred in the collection of this Note, the foreclosure of the Open- End
  Mortgage Deed and Security Agreement from Borrower to Lender and dated of
  even date herewith (the “Mortgage”) securing, inter alia, this Note or in
  enforcing the terms and conditions of that certain Loan and Security
  Agreement entered into by and between the Borrower and the Lender and dated
  of even date herewith (the “Loan Agreement”) or in protecting or sustaining
  the lien of said Mortgage. Said amounts of principal, interest, fees, costs
  and expenses are collectively referred to in this Note as the “Entire Note
  Balance”. 1. INTEREST RATE. (a) The outstanding principal balance of this
  Note shall bear interest at a rate per annum equal to five and
  twenty-three-hundredths percent (5.23%) commencing on the date hereof and
  continuing until the Maturity Date (as hereinafter defined) or the sooner
  imposition of the Default Rate (as hereinafter defined) (b) Upon the
  occurrence of any Event of Default, as defined in this Note, the Mortgage or
  the Loan Agreement, the entire principal amount of this Note and all interest
  and other sums due thereon, at the option of Lender shall become immediately
  due and payable. Should an Event of Default occur, the outstanding balance of
  the loan shall bear interest at the rate set forth above plus five percent
  (5%) per annum (the “Default Rate”). 2. PAYMENTS. (a) Commencing on November
  1, 2010 and on the first day of each successive month thereafter through and
  including the Maturity Date, principal and interest shall be payable in equal
  monthly installments in arrears in an amount equal to the sum necessary to
  fully amortize the loan at the interest rate then in effect over an assumed
  term of twenty five (25) years (the “Amortization Period”). Accordingly,
  commencing on November 1, 2010 and on the first day of each month thereafter
  through and including the Maturity Date, principal and interest shall be
  payable in successive equal monthly installments of Sixteen Thousand Two
  Hundred Sixty-Three and 65/100 Dollars ($16,263.65). On even date herewith,
  Borrower has prepaid interest that will accrue on the Note during the month
  of September, 2010. (b) All interest shall be computed on a daily basis and calculated
  on the basis of a three hundred sixty (360) day year for the actual number of
  days elapsed, to be payable in arrears on the unpaid principal balance
  outstanding.

  

 

	
  

  	
  (c) All monthly
  payments of principal and/or interest required pursuant to the terms of this
  Note shall, at Lender’s option, be made together with one-twelfth (1/12) of
  the annual real estate taxes, insurance premiums and other charges and
  assessments which may accrue against the property if the same are being
  escrowed pursuant to the Mortgage. 3. MATURITY. The Entire Note Balance, if
  not sooner paid, shall be due and payable without notice or demand on October
  1, 2020 (the “Maturity Date”). 4. PREPAYMENT PENALTY. Borrower may prepay
  this Note in whole or in part at any time only upon thirty (30) days prior
  notice (which may be revoked by the Borrower) to Lender (the “Prepayment
  Notice”) and the payment to Lender of a prepayment fee (the “Prepayment
  Fee”). The Prepayment Fee shall be equal the Net Loss (as defined below). As
  used herein, the term “Net Loss” means the economic loss the Lender sustains
  or incurs as a result of such prepayment, and the Borrower and the Lender
  agree that said economic loss shall be calculated as follows: (a) The Lender
  shall first determine the Index Rate. The “Index Rate” shall mean the index
  used to determine the interest rate payable by Borrower on the Prepayment
  Date. For purposes of this Note, the Index Rate shall be three and
  twenty-three-hundredths percent (3.23%). (b) Utilizing the Index Rate, the Lender
  shall then calculate the monthly interest amount payable from the Prepayment
  Date to the “Termination Date”, defined as the Maturity Date. The result is
  the “Monthly Index Payment”. (c) Utilizing the Reinvestment Rate (defined
  below), the Lender shall then calculate the monthly interest that would be
  earned by reinvesting the principal amount being prepaid for each month
  remaining until the Termination Date. The result is the “Monthly Reinvestment
  Payment”. The “Reinvestment Rate” shall be defined as the rate (as of the
  date Lender accepts the Borrower’s voluntary or involuntary prepayment or
  accelerates the indebtedness) available to Lender for the investment in U.S.
  Treasury Obligations (“Treasury Obligation”) with a maturity closest to, or
  co-terminus with, the Termination Date. If the Lender identifies more than
  one Treasury Obligation having the same maturity date, the Treasury
  Obligation having a coupon interest rate closest to the interest rate payable
  under the Loan as of the Prepayment Date shall be used. (d) Each Monthly
  Reinvestment Payment shall then be subtracted from the corresponding Monthly
  Index Payment; the result, if positive, is the “Monthly Payment
  Differential”. The Monthly Payment Differential shall in no event be less
  than zero. (e) Each Monthly Payment Differential shall then be discounted to
  present value at the Reinvestment Rate. The result is the “Discounted Monthly
  Payment Differential”. (f) All of the Discounted Monthly Payment Differential
  amounts shall then be added together, and such aggregated amount shall
  constitute the “Net Loss”. 2

  

 

	
  

  	
  Notwithstanding
  the Prepayment Fee specified above, there will be no Prepayment Fee or
  prohibition against prepayment during the period thirty (30) days prior to
  the Maturity Date. The Borrower shall be responsible, in addition to any
  Prepayment Fee, for the payment of any reasonable out-of-pocket third party
  administrative costs incurred by Lender in connection with such prepayment.
  If this Note shall be accelerated for any reason whatsoever, the applicable
  Prepayment Fee in effect as of the date of such acceleration shall be paid.
  All partial prepayments of principal shall be accompanied by and applied
  first to the payment of costs and expenses thereto unpaid late charges, then
  to accrued and unpaid interest and the balance on account of the unpaid
  principal in the inverse order of maturity. Partial prepayments shall not
  affect the Borrower’s obligation to make the regular installments of
  principal and interest required under the terms of this Note. 5. APPLICATION
  OF PAYMENTS. Payments will be applied first to fully pay costs and expenses
  incurred by holder in collecting this Note or in sustaining and/or enforcing
  any security granted to secure this Note, then to fully pay any outstanding late
  charges or prepayment, then to fully pay accrued interest and the remainder
  will be applied to principal. 6. LATE CHARGE. Borrower shall pay the holder
  of this Note a late charge of five percent (5%) of any monthly installment
  not received by the holder within ten (10) days after the installment is due,
  to cover the additional expenses involved in handling such overdue
  installment. This charge shall be in addition to, and not in lieu of, any
  other remedy the holder of this Note may have and is in addition to any
  reasonable fees and charges of any agents or attorneys which the holder of
  this Note is entitled to employ in the Event of Default hereunder, whether
  authorized herein or by law. Borrower will pay this late charge promptly but
  only once for each late payment. 7. DEFAULT. During the existence of any
  Event of Default (as hereinafter defined), the Entire Note Balance shall, at
  the option of the holder hereof, become immediately due and payable without
  notice or demand. An “Event of Default” is defined as any one of the
  following: (i) default in the payment of any interest, principal, or other
  amounts due hereunder during the term of this loan and such default
  continuing for a period of ten (10) days after the due date thereof; (ii)
  default in the payment of any principal or other amounts due upon the
  Maturity Date; (iii) an Event of Default in the performance of any of the
  other conditions or stipulations of this Note, the Loan Agreement or any
  other document evidencing an obligation to the Lender; (iv) the existence of
  any Event of Default as defined in the Mortgage or the breach of any
  provision of any other instrument securing this Note; or (v) any sale,
  conveyance or transfer of any interest in the property securing this Note in
  violation of the Loan Agreement. 8. PREJUDGMENT REMEDY WAIVER. BORROWER
  ACKNOWLEDGES AND REPRESENTS THAT THE LOAN EVIDENCED BY THIS NOTE IS A
  COMMERCIAL TRANSACTION AND THAT THE PROCEEDS OF THE LOAN SHALL NOT BE USED
  FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES. THE BORROWER AND EACH ENDORSER,
  CO-BORROWER AND GUARANTOR HEREOF HEREBY VOLUNTARILY WAIVE ANY RIGHTS TO
  NOTICE OR HEARING UNDER CHAPTER 903a OF THE CONNECTICUT GENERAL STATUTES AS
  NOW OR HEREAFTER AMENDED, OR AS 3

  

 

	
  

  	
  OTHERWISE
  REQUIRED BY ANY LAW WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE HOLDER
  MAY ELECT TO USE. 9. DELAY IN ENFORCEMENT. The liability of Borrower or any
  co-Borrower, endorser or guarantor under this Note is unconditional and shall
  not be affected by any extension of time, renewal, waiver or any other
  modification whatsoever, granted or consented to by the holder. Any failure
  by the holder to exercise any right it may have under this Note is not a
  waiver of the holder’s right to exercise the same or any other right at any
  other time. 10. CHANGES. No agreement by the Lender to change, waive or
  release the terms of this Note will be valid unless it is in writing and
  signed by Borrower and the Lender. 11. WAIVER, JURY TRIAL WAIVER. BORROWER
  AND EACH CO-BORROWER, ENDORSER AND GUARANTOR WAIVES PRESENTMENT, DEMAND FOR
  PAYMENT AND NOTICE OF DISHONOR. BORROWER AND EACH CO-BORROWER, ENDORSER AND
  GUARANTOR WAIVE A TRIAL BY JURY IN ANY ACTION WITH RESPECT TO THIS NOTE AND
  AS TO ANY ISSUES ARISING RELATING TO THIS NOTE OR TO TIIE INSTRUMENTS
  SECURING THIS NOTE. 12. CONNECTICUT LAW. The provisions of this Note shall be
  governed by the laws of the State of Connecticut. 13. JURISDICTION AND VENUE.
  Any action or proceeding to enforce or defend any rights under this Note or
  under any agreement, instrument or other document contemplated hereby or
  related hereto; directly or indirectly related to or connected with the Loan
  or the administration or enforcement thereof; or arising from the
  debtor/creditor relationship of the Borrower and the Lender shall be brought
  only in the Superior Court of Connecticut or the United States District Court
  for the District of Connecticut. The parties hereto agree that any proceeding
  instituted in either of such courts shall be of proper venue, that such
  courts shall have personal jurisdiction over the parties and that any and all
  pleadings, summons, motions and other process in such proceeding shall be
  fully and effectively served when transmitted by United States Mail
  (registered or certified), postage and registry fees prepaid. Any judgment or
  decree obtained in any such action or proceeding may be filed or enforced in
  any other appropriate court. 14. RIGHT OF SET-OFF. Upon the occurrence of any
  Event of Default as defined in this Note, the Lender shall have the right to
  set-off all or any part of Borrower’s or any Guarantors’ (as defined in the
  Loan Agreement) deposits, credit and property now or hereafter in the
  possession or control of the Lender, its agent or bailee or in transit to it
  and may apply the same, or any part thereof, to the Entire Note Balance
  without prior notice or demand. 15. INVALIDITY. If any provision of this Note
  or the application of any provision to any person or circumstance shall be
  invalid or unenforceable, neither the balance of this Note nor the
  application of the provision to other persons or circumstances shall be
  affected. 16. JOINT AND SEVERAL LIABILITY, BINDING EFFECT. This Note and all
  obligations hereunder, to the extent signed by more than one party, shall be
  the joint and several obligations of all Borrowers, endorsers and other
  accommodation parties, and each provision 4

  

 

	
  

  	
  hereof shall
  apply to each and all jointly and severally. The provisions of this Note are
  binding on the heirs, executors, administrators, assigns and successors of
  the Borrower and shall inure to the benefit of the Lender, its successors and
  assigns and to subsequent holders of this Note. 17. NOTE SECURED BY MORTGAGE.
  This Note is secured by an Open-End Mortgage Deed and Security Agreement of
  even date herewith executed and delivered by the Borrower to the Lender,
  conveying certain real estate and property therein described and to be duly
  recorded on the applicable land records where such real estate and property
  is located. 18. INTERPRETATION. Captions and headings used in this Note are
  for convenience only. The term “Borrower” and any pronoun referring thereto
  as used herein shall be construed in the masculine, feminine or neuter as the
  context may require. The singular includes the plural and the plural includes
  the singular. “Any” means any and all. 19. OTHER OBLIGATIONS. To the extent
  the Entire Note Balance is reduced or paid in full by reason of any payment
  to the Lender by any accommodation Borrower, endorser or guarantor, the
  amount of such rescinded, avoided or returned payment shall be added to or,
  in the event this Note has been previously paid in full, shall revive the
  principal balance of this Note upon which interest may be charged at the
  applicable rate set forth in this Note and shall be considered part of the
  Entire Note Balance and all terms and provisions herein shall thereafter
  apply to same. No Further Text On This Page — Signature Follows 5

  

 

	
  

  	
  IN WITNESS
  WHEREOF, the Borrower has hereunto set its hand and seal this the day and
  year first written above. BORROWER: WU/LH 15 PROGRESS L.L.C., a Delaware
  limited liability company By: Lighthouse 100 William Operating LLC Its:
  Manager By: Its Duly Authorized [Signature Page — Promissory Note] 6

  

 

	
  

  	
  SCHEDULE C RENT
  ROLL RENT ROLL 15 Progress Drive Shelton, Connecticut Tenant Commencement
  Date Rent Commencement Date Expiration Date RSF Annual Base Rent Monthly Base
  Rent LEX Products Corp 10/1/2010 1/1/2011 12/31/2020 53,164 398,661.25
  33,221.77 Yr 2 409,028.23 34,085 69 Yr 3 419,706.22 34,975.52 Yr 4 430.704.55
  35,892.05 Yr 5 442,032.83 36,836.07 Yr 6 453,700.95 37,80841 Yr 7 465,719.13
  38,809.93 Yr 8 478,097.84 39,841.49 Yr 9 490,847.92 40,903.99 Yr 10 503,980.50
  41,998.38 32

  

 

	
  

  	
  SCHEDULE 3.06
  LITIGATION a lawsuit entitled “Josh Segal individually and derivatively on
  behalf of Lighthouse Real Estate Advisors, LLC v. Paul Cooper, Jeff Ravetz,
  Louis Sheinker and Lighthouse Real Estate Management, LLC” filed in the
  Supreme Court for the State of New York and County of New York as disclosed
  in that certain report prepared by United Corporate Services, Inc. dated
  February 23, 2009. a possible claim against Paul Cooper, Louis Sheinker and
  Jeff Ravetz (the “Defaulted Loan Guarantors”) in connection with their
  guaranty of a certain loan (the “Defaulted Loan”) from State Street Bank &
  Trust Company (as successor in interest to Lehman Brothers Holdings, Inc.)
  (“State Street”) to LH 1440 L.L.C. (the “Defaulted Borrower”), which loan is
  alleged to be currently in default for the reasons more particularly set
  forth in a certain letter from State Street to LH 1440 L.L.C. and dated July
  14, 2010 (the “Default Letter”). The Defaulted Loan Guarantors represent that
  the construction of all improvements contemplated by the Defaulted Loan have
  been completed with the exception of asphalt and paving as contemplated by
  the Project Schedule (as defined in the Default Letter) and that the cost of
  completing the asphalt and paving work is no greater than $800,000.00. The
  Defaulted Loan Guarantors also represent that (i) the claims described in the
  Default Letter are without merit for the following reasons: (i) neither State
  Street nor its predecessor in interest fulfilled its obligations under the
  documents evidencing and/or securing the above referenced loan insofar as
  they failed to fund/advance monies to which LH 1440 L.L.C. was entitled to
  receive under the loan (which issue is currently being appealed from the
  District Court for the Southern District of New York; and (ii) the
  obligations of the Defaulted Loan Guarantors under their guaranty of the Defaulted
  Loan is limited to completion of the asphalt and paving work described above
  and, accordingly, the maximum possible liability exposure of the Defaulted
  Loan Guarantors is, in the aggregate, not more than $800,000.00; and (2) that
  no enforcement action, whether by foreclosure, power or sale or otherwise,
  has been commenced by State Street or any other party with respect to the
  Defaulted Loan. 33Exhibit 10.37

 

Promissory Note

 

Bridgeport, Connecticut

 

	
$2,700,000.00
    	
September 30, 2010
    

 

FOR VALUE RECEIVED, the undersigned, WU/LH 15 PROGRESS L.L.C., a Delaware limited liability company, having an address of 60 Hempstead Avenue, Suite 718, West Hempstead, New York 11552 (hereinafter called “Borrower”), promises to pay to the order of PEOPLE’S UNITED BANK, a federal savings bank having an office at 850 Main Street, Bridgeport, Connecticut 06604 (the “Lender”), the principal sum of TWO MILLION SEVEN HUNDRED THOUSAND AND 00/100 ($2,700,000.00), plus interest, payable at the rate and in the manner provided in paragraphs 1 and 2 of this Note, together with all taxes assessed upon said sum against the holder hereof, and any costs and expenses, including reasonable attorneys’ fees, incurred in the collection of this Note, the foreclosure of the Open-End Mortgage Deed and Security Agreement from Borrower to Lender and dated of even date herewith (the “Mortgage”) securing, inter alia, this Note or in enforcing the terms and conditions of that certain Loan and Security Agreement entered into by and between the Borrower and the Lender and dated of even date herewith (the “Loan Agreement”) or in protecting or sustaining the lien of said Mortgage. Said amounts of principal, interest, fees, costs and expenses are collectively referred to in this Note as the “Entire Note Balance”.

 

1.             INTEREST RATE.

 

(a)         The outstanding principal balance of this Note shall bear interest at a rate per annum equal to five and twenty-three-hundredths percent (5.23%) commencing on the date hereof and continuing until the Maturity Date (as hereinafter defined) or the sooner imposition of the Default Rate (as hereinafter defined)

 

(b)         Upon the occurrence of any Event of Default, as defined in this Note, the Mortgage or the Loan Agreement, the entire principal amount of this Note and all interest and other sums due thereon, at the option of Lender shall become immediately due and payable. Should an Event of Default occur, the outstanding balance of the loan shall bear interest at the rate set forth above plus five percent (5%) per annum (the “Default Rate”).

 

2.             PAYMENTS.

 

(a)         Commencing on November 1, 2010 and on the first day of each successive month thereafter through and including the Maturity Date, principal and interest shall be payable in equal monthly installments in arrears in an amount equal to the sum necessary to fully amortize the loan at the interest rate then in effect over an assumed term of twenty five (25) years (the “Amortization Period”). Accordingly, commencing on November 1, 2010 and on the first day of each month thereafter through and including the Maturity Date, principal and interest shall be payable in successive equal monthly installments of Sixteen Thousand Two Hundred Sixty-Three and 65/100 Dollars ($16,263.65). On even date herewith, Borrower has prepaid interest that will accrue on the Note during the month of September, 2010.

 

(b)         All interest shall be computed on a daily basis and calculated on the basis of a three hundred sixty (360) day year for the actual number of days elapsed, to be payable in arrears on the unpaid principal balance outstanding.

 

 

(c)          All monthly payments of principal and/or interest required pursuant to the terms of this Note shall, at Lender’s option, be made together with one-twelfth (1/12) of the annual real estate taxes, insurance premiums and other charges and assessments which may accrue against the property if the same are being escrowed pursuant to the Mortgage.

 

3.             MATURITY.  The Entire Note Balance, if not sooner paid, shall be due and payable without notice or demand on October 1, 2020 (the “Maturity Date”).

 

4.             PREPAYMENT PENALTY.  Borrower may prepay this Note in whole or in part at any time only upon thirty (30) days prior notice (which may be revoked by the Borrower) to Lender (the “Prepayment Notice”) and the payment to Lender of a prepayment fee (the “Prepayment Fee”). The Prepayment Fee shall be equal the Net Loss (as defined below).

 

As used herein, the term “Net Loss” means the economic loss the Lender sustains or incurs as a result of such prepayment, and the Borrower and the Lender agree that said economic loss shall be calculated as follows:

 

(a)         The Lender shall first determine the Index Rate. The “Index Rate” shall mean the index used to determine the interest rate payable by Borrower on the Prepayment Date. For purposes of this Note, the Index Rate shall be three and twenty-three-hundredths percent (3.23%).

 

(b)         Utilizing the Index Rate, the Lender shall then calculate the monthly interest amount payable from the Prepayment Date to the “Termination Date”, defined as the Maturity Date. The result is the “Monthly Index Payment”.

 

(c)          Utilizing the Reinvestment Rate (defined below), the Lender shall then calculate the monthly interest that would be earned by reinvesting the principal amount being prepaid for each month remaining until the Termination Date. The result is the “Monthly Reinvestment Payment”. The “Reinvestment Rate” shall be defined as the rate (as of the date Lender accepts the Borrower’s voluntary or involuntary prepayment or accelerates the indebtedness) available to Lender for the investment in U.S. Treasury Obligations (“Treasury Obligation”) with a maturity closest to, or co-terminus with, the Termination Date. If the Lender identifies more than one Treasury Obligation having the same maturity date, the Treasury Obligation having a coupon interest rate closest to the interest rate payable under the Loan as of the Prepayment Date shall be used.

 

(d)         Each Monthly Reinvestment Payment shall then be subtracted from the corresponding Monthly Index Payment; the result, if positive, is the “Monthly Payment Differential”. The Monthly Payment Differential shall in no event be less than zero.

 

(e)          Each Monthly Payment Differential shall then be discounted to present value at the Reinvestment Rate. The result is the “Discounted Monthly Payment Differential”.

 

(f)          All of the Discounted Monthly Payment Differential amounts shall then be added together, and such aggregated amount shall constitute the “Net Loss”.

 

2

 

Notwithstanding the Prepayment Fee specified above, there will be no Prepayment Fee or prohibition against prepayment during the period thirty (30) days prior to the Maturity Date. The Borrower shall be responsible, in addition to any Prepayment Fee, for the payment of any reasonable out-of-pocket third party administrative costs incurred by Lender in connection with such prepayment. If this Note shall be accelerated for any reason whatsoever, the applicable Prepayment Fee in effect as of the date of such acceleration shall be paid. All partial prepayments of principal shall be accompanied by and applied first to the payment of costs and expenses thereto unpaid late charges, then to accrued and unpaid interest and the balance on account of the unpaid principal in the inverse order of maturity. Partial prepayments shall not affect the Borrower’s obligation to make the regular installments of principal and interest required under the terms of this Note.

 

5.             APPLICATION OF PAYMENTS.  Payments will be applied first to fully pay costs and expenses incurred by holder in collecting this Note or in sustaining and/or enforcing any security granted to secure this Note, then to fully pay any outstanding late charges or prepayment, then to fully pay accrued interest and the remainder will be applied to principal.

 

6.             LATE CHARGE.  Borrower shall pay the holder of this Note a late charge of five percent (5%) of any monthly installment not received by the holder within ten (10) days after the installment is due, to cover the additional expenses involved in handling such overdue installment. This charge shall be in addition to, and not in lieu of, any other remedy the holder of this Note may have and is in addition to any reasonable fees and charges of any agents or attorneys which the holder of this Note is entitled to employ in the Event of Default hereunder, whether authorized herein or by law. Borrower will pay this late charge promptly but only once for each late payment.

 

7.             DEFAULT.  During the existence of any Event of Default (as hereinafter defined), the Entire Note Balance shall, at the option of the holder hereof, become immediately due and payable without notice or demand.

 

An “Event of Default” is defined as any one of the following: (i) default in the payment of any interest, principal, or other amounts due hereunder during the term of this loan and such default continuing for a period of ten (10) days after the due date thereof; (ii) default in the payment of any principal or other amounts due upon the Maturity Date; (iii) an Event of Default in the performance of any of the other conditions or stipulations of this Note, the Loan Agreement or any other document evidencing an obligation to the Lender; (iv) the existence of any Event of Default as defined in the Mortgage or the breach of any provision of any other instrument securing this Note; or (v) any sale, conveyance or transfer of any interest in the property securing this Note in violation of the Loan Agreement.

 

8.             PREJUDGMENT REMEDY WAIVER.  BORROWER ACKNOWLEDGES AND REPRESENTS THAT THE LOAN EVIDENCED BY THIS NOTE IS A COMMERCIAL TRANSACTION AND THAT THE PROCEEDS OF THE LOAN SHALL NOT BE USED FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES. THE BORROWER AND EACH ENDORSER, CO-BORROWER AND GUARANTOR HEREOF HEREBY VOLUNTARILY WAIVE ANY RIGHTS TO NOTICE OR HEARING UNDER CHAPTER 903a OF THE CONNECTICUT GENERAL STATUTES AS NOW OR HEREAFTER AMENDED, OR AS

 

3

 

OTHERWISE REQUIRED BY ANY LAW WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE HOLDER MAY ELECT TO USE.

 

9.             DELAY IN ENFORCEMENT.  The liability of Borrower or any co-Borrower, endorser or guarantor under this Note is unconditional and shall not be affected by any extension of time, renewal, waiver or any other modification whatsoever, granted or consented to by the holder. Any failure by the holder to exercise any right it may have under this Note is not a waiver of the holder’s right to exercise the same or any other right at any other time.

 

10.          CHANGES.  No agreement by the Lender to change, waive or release the terms of this Note will be valid unless it is in writing and signed by Borrower and the Lender.

 

11.          WAIVER, JURY TRIAL WAIVER.  BORROWER AND EACH CO-BORROWER, ENDORSER AND GUARANTOR WAIVES PRESENTMENT, DEMAND FOR PAYMENT AND NOTICE OF DISHONOR. BORROWER AND EACH CO-BORROWER, ENDORSER AND GUARANTOR WAIVE A TRIAL BY JURY IN ANY ACTION WITH RESPECT TO THIS NOTE AND AS TO ANY ISSUES ARISING RELATING TO THIS NOTE OR TO THE INSTRUMENTS SECURING THIS NOTE.

 

12.          CONNECTICUT LAW.  The provisions of this Note shall be governed by the laws of the State of Connecticut.

 

13.          JURISDICTION AND VENUE.  Any action or proceeding to enforce or defend any rights under this Note or under any agreement, instrument or other document contemplated hereby or related hereto; directly or indirectly related to or connected with the Loan or the administration or enforcement thereof; or arising from the debtor/creditor relationship of the Borrower and the Lender shall be brought only in the Superior Court of Connecticut or the United States District Court for the District of Connecticut. The parties hereto agree that any proceeding instituted in either of such courts shall be of proper venue, that such courts shall have personal jurisdiction over the parties and that any and all pleadings, summons, motions and other process in such proceeding shall be fully and effectively served when transmitted by United States Mail (registered or certified), postage and registry fees prepaid. Any judgment or decree obtained in any such action or proceeding may be filed or enforced in any other appropriate court.

 

14.          RIGHT OF SET-OFF.   Upon the occurrence of any Event of Default as defined in this Note, the Lender shall have the right to set-off all or any part of Borrower’s or any Guarantors’ (as defined in the Loan Agreement) deposits, credit and property now or hereafter in the possession or control of the Lender, its agent or bailee or in transit to it and may apply the same, or any part thereof, to the Entire Note Balance without prior notice or demand.

 

15.          INVALIDITY.  If any provision of this Note or the application of any provision to any person or circumstance shall be invalid or unenforceable, neither the balance of this Note nor the application of the provision to other persons or circumstances shall be affected.

 

16.          JOINT AND SEVERAL LIABILITY, BINDING EFFECT.  This Note and all obligations hereunder, to the extent signed by more than one party, shall be the joint and several obligations of all Borrowers, endorsers and other accommodation parties, and each provision

 

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hereof shall apply to each and all jointly and severally. The provisions of this Note are binding on the heirs, executors, administrators, assigns and successors of the Borrower and shall inure to the benefit of the Lender, its successors and assigns and to subsequent holders of this Note.

 

17.          NOTE SECURED BY MORTGAGE.  This Note is secured by an Open-End Mortgage Deed and Security Agreement of even date herewith executed and delivered by the Borrower to the Lender, conveying certain real estate and property therein described and to be duly recorded on the applicable land records where such real estate and property is located.

 

18.          INTERPRETATION.  Captions and headings used in this Note are for convenience only. The term “Borrower” and any pronoun referring thereto as used herein shall be construed in the masculine, feminine or neuter as the context may require. The singular includes the plural and the plural includes the singular. “Any” means any and all.

 

19.          OTHER OBLIGATIONS.  To the extent the Entire Note Balance is reduced or paid in full by reason of any payment to the Lender by any accommodation Borrower, endorser or guarantor, and all or any part of such payment is rescinded, avoided or recovered from the Lender for any reason whatsoever, including, without limitation, any proceedings in connection with the insolvency, bankruptcy or reorganization of the accommodation Borrower, endorser or guarantor, the amount of such rescinded, avoided or returned payment shall be added to or, in the event this Note has been previously paid in full, shall revive the principal balance of this Note upon which interest may be charged at the applicable rate set forth in this Note and shall be considered part of the Entire Note Balance and all terms and provisions herein shall thereafter apply to same.

 

No Further Text On This Page — Signature Page Follows

 

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IN WITNESS WHEREOF, the Borrower has hereunto set its hand and seal this the day and year first written above.

 

	
 
    	
BORROWER:
    
	
 
    	
WU/LH 15 PROGRESS L.L.C.,
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
Lighthouse   100 William Operating LLC
    
	
 
    	
 
    	
Its:   Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Louis Sheinker
    
	
 
    	
 
    	
 
    	
Louis   Sheinker
    
	
 
    	
 
    	
 
    	
Its   Member/Manager
    
	
 
    	
 
    	
 
    	
Duly Authorized
    

 

[Signature Page — Promissory Note]

 

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