Document:

Exhibit 10.3

 

GUARANTY

 

GUARANTY (as the same may
be amended, supplemented or otherwise modified from time to time, this “Guaranty”), dated as
of September 29, 2003, by and among each of the Subsidiaries listed on
Schedule I hereto (collectively, the “Subsidiary Guarantors”) and FLEET NATIONAL BANK, as
administrative agent  (in such capacity,
the “Administrative Agent”)
on behalf of the Lenders under and as defined in the Loan Agreement
(hereinafter defined).

 

RECITALS

 

I.                                         Reference
is made to the Secured Term Loan Agreement, dated as of September 29,
2003, by and among New Plan Excel Realty Trust, Inc., a Maryland corporation,
the Lenders party thereto, and the Administrative Agent (as the same may be
amended, supplemented or otherwise modified from time to time, the “Loan Agreement”).

 

II.                                     The
Administrative Agent and the Lenders have made it a condition precedent to the
effectiveness of the Loan Agreement that each Subsidiary Guarantor execute and
deliver this Guaranty.

 

III.                                 Each
Subsidiary Guarantor expects to derive substantial benefit from the Loan
Agreement and the transactions contemplated thereby and, in furtherance
thereof, has agreed to execute and deliver this Guaranty.

 

Therefore, in
consideration of the Recitals, the terms and conditions herein contained and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, each of the Subsidiary Guarantors and the Administrative
Agent hereby covenant and agree as follows:

 

1.                                       Defined
Terms

 

(a)                                  Capitalized
terms used herein which are not otherwise defined herein shall have the
respective meanings ascribed thereto in the Loan Agreement.

 

(b)                                 When
used in this Guaranty, the following capitalized terms shall have the
respective meanings ascribed thereto as follows:

 

“Borrower Obligations” means all
present and future obligations and liabilities, whether deemed principal,
interest, additional interest, fees, expenses or otherwise of the Borrower to
the Administrative Agent and the Lenders, including, without limitation, all
obligations under (i) the Loan Agreement, (ii) the Notes, and (iii) all other
Loan Documents.

 

“Guarantor Obligations” means, with
respect to each Subsidiary Guarantor, all of the obligations and liabilities of
such Subsidiary Guarantor hereunder, whether fixed, contingent, now existing or
hereafter arising, created, assumed, incurred or acquired.

 

2.                                       Guarantee

 

(a)                                  Subject
to Section 2(b), each Subsidiary Guarantor hereby absolutely, irrevocably
and unconditionally guarantees the full and prompt payment when due (whether at

 

 

stated maturity, by acceleration or otherwise) of the Borrower
Obligations.  The agreements of each
Subsidiary Guarantor in this Guaranty constitute a guarantee of payment, and no
Credit Party shall have any obligation to enforce any Loan Document or exercise
any right or remedy with respect to any collateral security thereunder by any
action, including making or perfecting any claim against any Person or any
collateral security for any of the Borrower Obligations prior to being entitled
to the benefits of this Guaranty.  The
Administrative Agent may, at its option, proceed against the Subsidiary
Guarantors, or any one or more of them, in the first instance, to enforce the
Guarantor Obligations without first proceeding against the Borrower or any
other Person, and without first resorting to any other rights or remedies, as
the Administrative Agent may deem advisable. 
In furtherance hereof, if any Credit Party is prevented by law from collecting
or otherwise hindered from collecting or otherwise enforcing any Borrower
Obligation in accordance with its terms, such Credit Party shall be entitled to
receive hereunder from the Subsidiary Guarantors after demand therefor, the
sums which would have been otherwise due had such collection or enforcement not
been prevented or hindered.

 

(b)                                 Notwithstanding
anything to the contrary contained herein, the maximum aggregate amount of the
obligations of each Subsidiary Guarantor hereunder shall not, as of any date of
determination, exceed the lesser of  the
greatest amount that is valid and enforceable against such Subsidiary Guarantor
under principles of New York State contract law and  the greatest amount that would not render such Subsidiary
Guarantor’s liability hereunder subject to avoidance as a fraudulent transfer
or conveyance under Section 548 of Title 11 of the United States Code or
any provisions of applicable state law (collectively, the “Fraudulent Transfer
Laws”), in each case after giving effect to all other liabilities of such Subsidiary
Guarantor, contingent or otherwise, that are relevant under the Fraudulent
Transfer Laws (specifically excluding, however, any liability (A) in respect of
intercompany indebtedness to the Borrower or any Affiliate or Subsidiary of the
Borrower, to the extent that such intercompany indebtedness would be discharged
to the extent payment is made by such Subsidiary Guarantor hereunder, and (B)
under any guarantee of (1) senior unsecured indebtedness or (2) indebtedness
subordinated in right of payment to any Borrower Obligation, in either case
which contains a limitation as to maximum liability similar to that set forth
in this Section 2(b) and pursuant to which the liability of such
Subsidiary Guarantor hereunder is included in the liabilities taken into
account in determining such maximum liability) and after giving effect as
assets to the value (as determined under the applicable provisions of the
Fraudulent Transfer Laws) of any rights to subrogation, contribution,
reimbursement, indemnity or similar rights of such Subsidiary Guarantor
pursuant to applicable law or any agreement providing for an equitable
allocation among such Subsidiary Guarantor and other Affiliates or Subsidiaries
of the Borrower of obligations arising under guarantees by such parties.

 

(c)                                  Each
Subsidiary Guarantor agrees that the Guarantor Obligations may at any time and
from time to time exceed the maximum aggregate amount of the obligations of
such Subsidiary Guarantor hereunder without impairing this Guaranty or
affecting the rights and remedies of any Credit Party hereunder.

 

3.                                       Absolute
Obligation

 

Except as provided
by Section 8.2 of the Loan Agreement, no Subsidiary Guarantor shall be
released from liability hereunder unless and until the Commitments of the
Lenders have terminated and either (i) the Borrower shall have paid in full the
outstanding principal balance of

 

2

 

the Loans, together with all accrued and unpaid interest thereon, and
all other amounts then due and owing under the Loan Documents, or (ii) the
Guarantor Obligations of such Subsidiary Guarantor shall have been paid in full
in cash.  Each Subsidiary Guarantor
acknowledges and agrees that (a) no Credit Party has made any representation or
warranty to such Subsidiary Guarantor with respect to the Borrower, any of its
Subsidiaries, any Loan Document, or any agreement, instrument or document
executed or delivered in connection therewith, or any other matter whatsoever,
and (b) such Subsidiary Guarantor shall be liable hereunder, and such liability
shall not be affected or impaired, irrespective of (A) the validity or
enforceability of any Loan Document, or any agreement, instrument or document
executed or delivered in connection therewith, or the collectability of any of
the Borrower Obligations, (B) the preference or priority ranking with respect
to any of the Borrower Obligations, (C) the existence, validity, enforceability
or perfection of any security interest or collateral security under any Loan
Document, or the release, exchange, substitution or loss or impairment of any
such security interest or collateral security, (D) any failure, delay, neglect
or omission by any Credit Party to realize upon or protect any direct or
indirect collateral security, indebtedness, liability or obligation, any Loan
Document, or any agreement, instrument or document executed or delivered in
connection therewith, or any of the Borrower Obligations, (E) the existence or
exercise of any right of set-off by any Credit Party, (F) the existence,
validity or enforceability of any other guarantee with respect to any of the
Borrower Obligations, the liability of any other Person in respect of any of
the Borrower Obligations, or the release of any such Person or any other
guarantor of any of the Borrower Obligations, (G) any act or omission of any
Credit Party in connection with the administration of any Loan Document or any
of the Borrower Obligations, (H) the bankruptcy, insolvency, reorganization or
receivership of, or any other proceeding for the relief of debtors commenced by
or against, any Person, (I) the disaffirmance or rejection, or the purported
disaffirmance or purported rejection, of any of the Borrower Obligations, any
Loan Document, or any agreement, instrument or document executed or delivered
in connection therewith, in any bankruptcy, insolvency, reorganization or
receivership, or any other proceeding for the relief of debtor, relating to any
Person, (J) any law, regulation or decree now or hereafter in effect which
might in any manner affect any of the terms or provisions of any Loan Document,
or any agreement, instrument or document executed or delivered in connection
therewith or any of the Borrower Obligations, or which might cause or permit to
be invoked any alteration in the time, amount, manner or payment or performance
of any of the Borrower’s obligations and liabilities (including the Borrower
Obligations), (K) the merger or consolidation of the Borrower into or with any
Person, (L) the sale by the Borrower of all or any part of its assets, (M) the
fact that at any time and from time to time none of the Borrower Obligations
may be outstanding or owing to any Credit Party, (N) any amendment or
modification of, or supplement to, any Loan Document, or (O) any other reason or
circumstance which might otherwise constitute a defense available to or a
discharge of the Borrower in respect of its obligations or liabilities
(including the Borrower Obligations) or of such Subsidiary Guarantor in respect
of any of the Guarantor Obligations (other than by the performance in full
thereof).

 

4.                                       Representations
and Warranties

 

(a)                                  Each
of the Subsidiary Guarantors represents and warrants as to itself that all
representations and warranties relating to it contained in the Loan Agreement are
true and correct.

 

3

 

(b)                                 Each
of the Subsidiary Guarantors represents and warrants as to itself that it has
full legal power and authority to enter into, execute, deliver and perform the
terms of this Guaranty, all of which have been duly authorized by all proper
and necessary corporate or trust action.

 

(c)                                  Each
of the Subsidiary Guarantors represents and warrants as to itself that this
Guaranty constitutes the valid and legally binding obligations of such
Subsidiary Guarantor, and is enforceable in accordance with its terms, except
as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, or other similar laws affecting the enforcement of creditors’
rights generally; and that the execution, delivery and performance by such
Subsidiary Guarantor of this Guaranty does not violate the provisions of any
applicable statute, law, rule or regulation of any Governmental Authority.

 

(d)                                 Each
of the Subsidiary Guarantors represents and warrants as to itself that no
consent, authorization or approval of, filing with, notice to, or exemption by,
stockholders, any Governmental Authority or any other Person not obtained is
required to be obtained by such Subsidiary Guarantor to authorize, or is
required in connection with, the execution, delivery and performance of this
Guaranty or is required to be obtained by such Subsidiary Guarantor as a
condition to the validity or enforceability of this Guaranty.

 

5.                                       Notices

 

Except as
otherwise specifically provided herein, all notices, requests, consents,
demands, waivers and other communications hereunder shall be in writing
(including facsimile) and shall be given in the manner set forth in
Section 11.2 of the Loan Agreement (i) in the case of the Administrative
Agent, to the address set forth in Section 11.2 of the Loan Agreement,
(ii) in the case of a Subsidiary Guarantor, to the address set forth in
Schedule I hereto, or (iii) in the case of each party hereto, to such
other addresses as to which the Administrative Agent may be hereafter notified
by the respective parties hereto.

 

6.                                       Expenses

 

Each Subsidiary
Guarantor agrees that it shall, promptly after demand, pay to the
Administrative Agent any and all reasonable out-of-pocket sums, costs and
expenses, which any Credit Party may pay or incur defending, protecting or
enforcing this Guaranty (whether suit is instituted or not), reasonable
attorneys’ fees and disbursements.  All
sums, costs and expenses which are due and payable pursuant to this Section shall
bear interest, payable on demand, at the highest rate then payable on the
Borrower Obligations.

 

7.                                       Repayment
in Bankruptcy, etc.

 

If, at any time or
times subsequent to the payment of all or any part of the Borrower Obligations
or the Guarantor Obligations, any Credit Party shall be required to repay any
amounts previously paid by or on behalf of the Borrower or any Subsidiary
Guarantor in reduction thereof by virtue of an order of any court having
jurisdiction in the premises, including as a result of an adjudication that
such amounts constituted preferential payments or fraudulent conveyances, the
Subsidiary Guarantors unconditionally agree to pay to the Administrative Agent,
within 10 days after demand, a sum in cash equal to the amount of such
repayment, together with interest on such amount from the date of such
repayment by such Credit Party to

 

4

 

the date of payment to the Administrative Agent at the applicable
after-maturity rate set forth in the Loan Agreement.

 

8.                                       Miscellaneous

 

(a)                                  Except
as otherwise expressly provided in this Guaranty, each Subsidiary Guarantor
hereby waives presentment, demand for payment, notice of default,
nonperformance and dishonor, protest and notice of protest of or in respect of
this Guaranty, the other Loan Documents and the Borrower Obligations, notice of
acceptance of this Guaranty and reliance hereupon by any Credit Party, and the
incurrence of any of the Borrower Obligations, notice of any sale of collateral
security or any default of any sort.

 

(b)                                 No
Subsidiary Guarantor is relying upon any Credit Party to provide to such
Subsidiary Guarantor any information concerning the Borrower or any of its
Subsidiaries, and each Subsidiary Guarantor has made arrangements satisfactory
to such Subsidiary Guarantor to obtain from the Borrower on a continuing basis
such information concerning the Borrower and its Subsidiaries as such
Subsidiary Guarantor may desire.

 

(c)                                  Each
Subsidiary Guarantor agrees that any statement of account with respect to the
Borrower Obligations from any Credit Party to the Borrower which binds the
Borrower shall also be binding upon such Subsidiary Guarantor, and that copies
of said statements of account maintained in the regular course of or such
Credit Party’s business may be used in evidence against such Subsidiary
Guarantor in order to establish its Guarantor Obligations.

 

(d)                                 Each
Subsidiary Guarantor acknowledges that it has received a copy of the Loan
Documents and has approved of the same. 
In addition, each Subsidiary Guarantor acknowledges having read each
Loan Document and having had the advice of counsel in connection with all
matters concerning its execution and delivery of this Guaranty.

 

(e)                                  This
Guaranty shall be binding upon each Subsidiary Guarantor and its successors and
inure to the benefit of, and be enforceable by the Administrative Agent,
Lenders and their respective successors, transferees and assigns.  No Subsidiary Guarantor may assign any
right, or delegate any duty, it may have under this Guaranty.

 

(f)                                    Subject
to the limitations set forth in Section 2(b), the Guarantor Obligations
shall be joint and several.

 

(g)                                 This
Guaranty is the “Guaranty” referred to in the Loan Agreement, and is subject
to, and should be construed in accordance with, the provisions thereof.  Each of the parties hereto acknowledges and
agrees that the following provisions of the Loan Agreement are made applicable
to this Guaranty and all such provisions are incorporated by reference herein
as if fully set forth herein, including Sections 1 (Definitions), 2.11 (Taxes; Net
Payments), 9.1 (Events of Default), 11.1 (Amendments
and Waivers), 11.3 (No Waiver; Cumulative Remedies), 11.5 (Payment of
Expenses and Taxes), 11.7 (Successors and Assigns), 11.9 (Counterparts),
11.12 (Indemnity),
11.13 (Governing
Law), 11.14, (Headings Descriptive), 11.15 (Severability),
11.16 (Integration),
11.17 (Consent
to Jurisdiction), 11.18 (Service of Process), 11.19 (No
Limitation on Service or Suit) and 11.20 (WAIVER OF TRIAL BY JURY)
thereof.

 

5

 

(h)                                 Each
Subsidiary Guarantor agrees that (i) the execution and delivery of a Guaranty
by any Required Additional Guarantor after the date hereof shall not affect the
obligations of the Subsidiary Guarantors hereunder, and (ii) the Subsidiary
Guarantors and each such Required Additional Guarantor shall, subject to
Section 2(b), be jointly and severally liable for all of the Borrower
Obligations.

 

(i)                                     If,
notwithstanding the provisions of Section 8(g) above, this Guaranty is
deemed to be governed by California law, then the following shall apply but
shall not in any way limit the generality of any other provisions contained in
this Guaranty.

 

The Subsidiary
Guarantors hereby waive (a) any defense of the Subsidiary Guarantors based upon
a Credit Party’s election of any remedy against the Subsidiary Guarantors or
Borrower or both; (b) any defense based upon a Credit Party’s failure to
disclose to the Subsidiary Guarantors any information concerning Borrower’s
financial condition or any other circumstances bearing on Borrower’s ability to
pay all sums payable under the Loan Documents; (c) any defense based upon
any statute or rule of law which provides that the obligation of a surety must
be neither larger in amount nor in any other respects more burdensome than that
of a principal; (d) any defense based upon a Credit Party’s election, in
any proceeding instituted under Title 11, U.S.C.A., as amended from time to
time or any successor thereto (the “Bankruptcy Code”), of the application of
Section 1111(b)(2) of the Bankruptcy Code or any successor statute;
(e) any right of subrogation, any right to enforce any remedy which a
Credit Party may have against Borrower and any right to participate in, or
benefit from, any security for any of the Loan Documents now or hereafter held
by the Credit Parties; and (f) benefit of any statute of limitations
affecting the liability of the Subsidiary Guarantors hereunder or the
enforcement hereof.  Without limiting
the generality of the foregoing or any other provision hereof, the Subsidiary
Guarantors expressly waive any and all benefits which might otherwise be
available to the Subsidiary Guarantors under Sections 2787 to 2855, inclusive,
of the California Civil Code, including without limitation, Sections 2809,
2810, 2819, 2839, 2845, 2849 and 2850, and all benefits which might otherwise
be available to the Subsidiary Guarantors under Sections 2899 and 3433 of the
California Civil Code and the California Code of Civil Procedure Sections 580a,
580b, 580d and 726, or any of such sections. 
Furthermore, without limitation of any waiver otherwise set forth
herein, the Subsidiary Guarantors waive all rights and defenses arising out of
an election of remedies by the Credit Parties even though that election of
remedies, such as a nonjudicial foreclosure with respect to the security for a
guaranteed obligation, has destroyed the Subsidiary Guarantors’ rights of
subrogation and reimbursement against the principal by operation of
Section 580d of the California Code of Civil Procedure or otherwise.

 

[SIGNATURES COMMENCE ON FOLLOWING PAGE]

 

6

 

IN EVIDENCE of the
agreement by the parties hereto to the terms and conditions herein contained,
each such party has caused this Guaranty to be duly executed on its behalf.

 

	
   

  	
  NEW PLAN REALTY TRUST,
  a

  Massachusetts business trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
  Title:

  	
        EVP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXCEL REALTY TRUST –
  ST, INC., a

  Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
  Title:

  	
  EVP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NEW PLAN FACTORY MALLS,
  INC., a

  Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
  Title:

  	
  EVP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  	
   

  
	
   

  	
  CA NEW PLAN ASSET
  PARTNERSHIP IV,

  L.P., a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  CA New Plan Asset,
  Inc., a Delaware

  corporation, its sole general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
  Title:

  	
  EVP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [CORPORATE SEAL]

  
									

 

7

 

	
   

  	
  EXCEL REALTY TRUST –
  NC, a North

  Carolina general partnership

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  NC Properties #1 Inc.,
  a Delaware

  corporation, its managing Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
  Title:

  	
  EVP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  	
   

  
	
   

  	
  NP OF TENNESSEE, L.P.,
  a Delaware limited

  partnership  

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  New Plan of Tennessee,
  Inc., a Delaware

  corporation, its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
  Title:

  	
  EVP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  	
   

  
	
   

  	
  POINTE ORLANDO
  DEVELOPMENT

  COMPANY, a California general partnership

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  ERT Development
  Corporation, a

  Delaware corporation, general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
  Title:

  	
  EVP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  ERT Pointe Orlando,
  Inc., a New York

  corporation, a New York corporation,

  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
  Title:

  	
  EVP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [CORPORATE SEAL]

  
						

 

8

 

	
   

  	
  CA NEW PLAN FLOATING
  RATE

  PARTNERSHIP, L.P., a Delaware limited

  partnership

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  CA New Plan Floating
  Rate SPE, Inc., a

  Delaware corporation, its sole general

  partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
  Title:

  	
  EVP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [CORPORATE SEAL]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HK NEW PLAN EXCHANGE
  PROPERTY

  OWNER I, LLC, a Delaware limited liability

  company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
  Title:

  	
  EVP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NEW PLAN OF ILLINOIS,
  LLC, a Delaware

  limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
  Title:

  	
  EVP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NEW PLAN PROPERTY
  HOLDING

  COMPANY, a Maryland real estate investment

  trust

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Roche

  
	
   

  	
  Name:

  	
  John Roche

  
	
   

  	
  Title:

  	
  EVP & CFO

  
								

 

9

 

	
   

  	
  FLEET NATIONAL BANK, as

  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bill Lamb

  
	
   

  	
  Name:

  	
  Bill Lamb

  
	
   

  	
  Title:

  	
  Vice President

  
					

 

10

 

SCHEDULE I

TO SUBSIDIARY GUARANTY

 

SUBSIDIARY GUARANTORS

 

UNDER GUARANTY DATED
AS OF SEPTEMBER 29, 2003

 

	
  Name

  	
   

  	
  Jurisdiction
  of

  Incorporation or Formation

  	
   

  	
  Address
  for Notices

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New Plan Realty Trust

  	
   

  	
  Massachusetts

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Excel Realty Trust –
  ST, Inc.

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New Plan Factory Malls,
  Inc.

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CA New Plan Asset
  Partnership IV, L.P.

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Excel Realty Trust-NC

  	
   

  	
  North Carolina

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NP of Tennessee, L.P.

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pointe Orlando
  Development Company

  	
   

  	
  California

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  

 

11

 

	
  Name

  	
   

  	
  Jurisdiction
  of

  Incorporation or Formation

  	
   

  	
  Address
  for Notices

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CA New Plan Floating
  Rate Partnership, L.P.

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HK New Plan Exchange
  Property Owner I, LLC

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New Plan of Illinois,
  LLC

  	
   

  	
  Delaware

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New Plan Property
  Holding Company

  	
   

  	
  Maryland

  	
   

  	
  c/o New Plan Excel

  Realty Trust, Inc.

  1120 Avenue of the Americas

  New York, New York 10036

  

 

12Exhibit
10.119

 

November 3, 2003

 

 

Pleasant Lake Apts. Limited Partnership

c/o Ramat Securities

23811 Chagrin Boulevard, #200

Beachwood, Ohio 44122

 

Re:                             Purchase
Agreement dated as of September 29, 2003 (the “Purchase Agreement”) by and
between Horizon Group Properties, L.P., a Delaware limited partnership
(“Horizon Group”), and Pleasant Lake Apts. Limited Partnership (“Pleasant
Lake”)

 

Gentlemen:

 

This letter will confirm our understanding regarding certain issues in
connection with the Purchase Agreement. Pursuant to Section 1(g) of the
Purchase Agreement Horizon Group and Pleasant Lake acknowledged and agreed that
Horizon Group is currently engaged in a restructuring of debt (the
“Restructuring”) at Gretna, Sealy, Traverse City Outlet Centers, LLC, a Delaware
limited liability company (“Gretna”). 
In connection with the Restructuring, Horizon Group and Pleasant Lake
hereby agree that the transaction in which Pleasant Lake will purchase from
Horizon Group a total of forty-nine percent (49%) of the membership interests
in Gretna (the “Gretna Transaction”) shall be completed prior to the closing on
the remaining 49% Membership Interests as contemplated in the Purchase
Agreement.

 

The Gretna Transaction shall be structured as follows:

 

(i) On November 3, 2003, Pleasant Lake shall pay
One Million Nine Hundred and Sixty Thousand Dollars ($1,960,000) to Horizon
Group for the 49% Membership Interest in Gretna.  Horizon Group shall deliver to Pleasant Lake an Assignment of Membership
Interest evidencing the 49% Membership Interest in Gretna.

 

(ii) On November 3, 2003, Pleasant Lake shall lend Two Million
Forty Thousand Dollars ($2,040,000) to Horizon Group pursuant to a promissory
note (the “Note”).  The unpaid principal
balance on the Note shall accrue interest at an annual rate equal to eight
percent (8%). The Note shall mature on August  3, 2004. The Note shall be
guaranteed by Horizon Group Properties, Inc., the general partner of Horizon
Group.

 

(iii) Upon the completion of the Restructuring, which is
anticipated to occur on or about November 5, 2003,  Pleasant Lake also shall acquire a
forty-nine percent (49%) limited partnership interest in each of Sealy Outlet
Center, L.L.C., a Texas limited liability company (“Sealy”) and Traverse City
Outlet Center, L.L.C., a Delaware limited liability company (“Traverse City”).
Sealy and Traverse City are currently wholly-owned by Gretna.  Horizon Group and/or Gretna shall deliver

 

1

 

to
Pleasant Lake Assignments of Membership Interests, evidencing the forty-nine
percent (49%) limited partnerships in each of Sealy and Traverse City.

 

(iv) Horizon Group and Pleasant Lake acknowledge and agree that Horizon
Group may bid up to $1,600,000 in order to acquire the current note on Sealy.  In the event Horizon Group pays up to
$1,600,000 to acquire the note, each partner agrees to contribute its pro rata
share of any amount required to satisfy such bid.  In the event the acquisition of the note on Sealy is not to the
lender’s satisfaction and Horizon Group does not acquire the current note,
Horizon Group shall distribute all excess funds to the partners on a pro rata
basis.

 

(v)All closing deliveries with respect to Gretna required under the
Purchase Agreement will be delivered by Horizon Group to Pleasant Lake in
connection with the closing of the Gretna Transaction.

 

(vi) Horizon Group and Pleasant Lake acknowledge and agree that on
October 31, 2003 Horizon Group paid $84,000 to obtain its lender’s consent
to terminate the Liz Claiborne lease at Sealy. 
Horizon Group agrees to contribute the $1,956,000 (that is the
$2,040,000 Note less $84,000) and the $1,960,000 into Gretna as a further
capital contribution to maintain its fifty-one percent (51%) interest.

 

This letter agreement shall (a) be binding upon and inure to the
benefit of Horizon Group and Pleasant Lake and their respective successors and
assigns, (b) may be executed in one or more counterparts and each executed copy
shall constitute an original, and (c) shall be governed by and construed in
accordance with the laws of the State of Delaware.

 

If this letter correctly sets forth your understanding with respect to
the foregoing, please indicate your acceptance by signing and dating this
letter below.

 

	
   

  	
  Horizon Group Properties, L.P.,

  A Delaware limited partnership,

  By: Horizon Group Properties, Inc.,

        Its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
  Pleasant Lake Apts. Limited

  Partnership, an Ohio limited partnership,

  By:  Pleasant Lake Apt. Corp.

  Its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Its:

  

 

2

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