Document:

Exhibit 10.9

 

EXECUTION COPY

 

JOINT AND SEVERAL COMPLETION GUARANTY

 

THIS JOINT AND SEVERAL COMPLETION GUARANTY (this “Guaranty”), dated as of February 3, 2012, is made on a joint and several basis by TEACHERS VILLAGE SCHOOL QALICB URBAN RENEWAL, LLC, a New Jersey limited liability company having an address at c/o RBH Group, 89 Market Street, 8th Floor, Newark, New Jersey 07102 (the “Borrower”), and RBH-TRB NEWARK HOLDINGS, LLC, a New York limited liability company,  having an address at c/o RBH Group, 89 Market Street, 8th Floor, Newark, New Jersey 07102 (“RBH”, and together with Borrower, the “Guarantors” and each a “Guarantor”), to TD BANK, N.A., national banking association having an address at 317 Madison Avenue, 2nd Floor, New York, New York 10017, acting in its capacity as administrative agent (the “Administrative Agent”); GATEWAY SUB-CDE I, LLC, a New Jersey limited liability company, having an address of c/o Gateway CDE LLC, 2 Gateway Center, 5th Floor, Newark, New Jersey 07102 (“Gateway Lender”); and NJCC CDE ESSEX LLC, a New Jersey limited liability company having an address at c/o New Jersey Community Capital, 108 Church Street, 3rd Floor, New Brunswick, NJ 08901 (“NJCC Lender”) and together with Gateway Lender, the “Lenders” and each a “Lender”).

 

WHEREAS, NJCC Lender has agreed to make a loan in the original aggregate principal amount of up to Nine Million Seven Hundred Thousand and No/100 Dollars ($9,700,000.00) (collectively, the “NJCC Loan”) to Borrower, which NJCC Loan will be evidenced by the Loan A-1 Note, Loan A-2 Note, Loan B-1 Note, Loan B-2 Note, Loan C-1 Note, Loan C-2 Note, Loan D-1 Note, and Loan D-2 Note, which will be secured by the Mortgage; and Gateway Lender has agreed to make a loan in the original aggregate principal amount of up to Fifty Million and No/100 Dollars ($50,000,000.00) (collectively, the “Gateway Loan”, and together with the NJCC Loan, the “Loan”) to Borrower, which Gateway Loan will be evidenced by the Loan A-3 Note, Loan A-4 Note, Loan B-3 Note, Loan B-4 Note, Loan C-3 Note, Loan C-4 Note, Loan D-3 Note, and Loan D-4 Note, which will also be secured by the Mortgage; and each of the Loans shall be advanced pursuant to the terms and provisions of the Loan Agreement (all as described and defined in Exhibit A attached hereto), and will be used to finance the costs of Borrower’s acquisition of its leasehold interest in the Premises and the construction of the Improvements (all as described and defined in Exhibit A attached hereto);

 

WHEREAS, the Lenders are willing to make the Loan to the Borrower only if the Guarantors execute and deliver this Guaranty; and

 

WHEREAS, the Guarantors will derive benefit from the making of the Loan;

 

NOW, THEREFORE, in consideration of the recitals set forth above and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, and to induce the Lenders to make the Loan, the Guarantors hereby acknowledge, agree and confirm that all of the above recitals are true, correct and complete and hereby agree with the Administrative Agent on behalf of itself and the Lenders as follows:

 

1.                                      The provisions of the Loan Agreement and the other documents executed in connection with the Loan (collectively, the “Loan Documents”) are hereby incorporated herein and made a part of this Guaranty with the same force and effect as if fully set forth herein;

 

 

provided, however, that the exculpation provisions relieving the Borrower from personal liability for payment of the Loan or any other obligations under the Loan Documents shall not in any manner affect or limit the liability of the Guarantors arising hereunder.  All terms not defined herein but defined in the Loan Agreement and used herein shall have the meanings assigned to them therein.

 

2.                                      The Guarantors, jointly and severally, absolutely, irrevocably and unconditionally guaranty to Administrative Agent and the Lenders, together and individually, that:

 

(a)                                 the Borrower shall construct, equip and complete the construction of the Improvements pursuant to the terms of the General Contracts, as the same may be modified in accordance with the provisions of the Loan Agreement and with payment and disbursements therefor made in accordance with the provisions of the Loan Agreement and shall pay all costs and expenses incurred in connection therewith, including, but not limited to, any Shortfall Amount (as such term is defined in the Loan Agreement);

 

(b)                                 the Borrower shall cause the completion of the construction of alterations, fixtures or other work to meet the requirements of any tenant, subtenant or other occupant of the Improvements, in accordance with the Plans, and shall pay all costs and expenses incurred in connection therewith, limited, however, to alterations, fixtures and other work agreed to be done by the Borrower at the Borrower’s sole cost and expense pursuant to the provisions of any lease, sublease or other occupancy agreement now or hereafter entered into by the Borrower with respect to Improvements to be occupied by such tenant, subtenant or other occupant; and

 

(c)                                  the Guarantors shall remove within thirty (30) days (by bonding or as otherwise approved by the Administrative Agent) any lien caused by the Borrower’s failure to comply with the provisions of the Loan Agreement or arising from the completion of the construction of the Improvements (including, without limitation, alterations, fixtures or work referred to in clause (b) of this section) whether equal or prior in lien or other priority or subordinate to the lien of the Mortgage and irrespective of whether the validity, priority or enforceability thereof has been adjudicated by a court of competent jurisdiction or otherwise.

 

The Guarantors covenant and agree that if the Borrower shall fail to perform any of the above, the Guarantors shall, at the request of the Administrative Agent on behalf of any or both Lenders, do any and all of the foregoing.

 

3.                                      If the Borrower and/or the Guarantors do not take and complete the actions specified in clauses (a), (b) and (c) of Section 2 of this Guaranty (collectively, the “Work”) on or before the time such matters are to be done by the Borrower in accordance with the provisions of the Loan Agreement after any applicable grace and cure periods under the Loan Agreement, and written notice thereof is sent by the Administrative Agent to the Guarantors, the Guarantors shall reimburse the Administrative Agent and/or any and each Lender, as may be applicable, within ten (10) days upon demand, for all costs and expenses (including, but not limited to, attorneys’ fees and disbursements of Administrative Agent’s and/or any and each Lender’s counsel, whether in-house staff, retained firms or otherwise (collectively, “Legal Fees”)), to the extent not otherwise reimbursed to Administrative Agent and/or any and each Lender by the Borrower, in connection with and shall cause the following to occur:

 

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(a)                                 completing the construction of the Improvements substantially in accordance with the Plans, as set forth in the Loan Documents;

 

(b)                                 completing the construction of alterations, fixtures or other work to comply with the Plans; and

 

(c)                                  the removal of any lien (by bonding or otherwise) caused by the Borrower’s failure to comply with the provisions of the Loan Documents or arising from the construction and equipping of the Improvements, as the case may be, whether equal or prior in lien or other priority or subordinate to the lien of the Mortgage and irrespective of whether the validity, priority or enforceability thereof has been adjudicated by a court of competent jurisdiction or otherwise.

 

Such reimbursement shall be made to the Administrative Agent for its own account or on behalf of the Lender(s), as may be applicable, by the Guarantors as hereinabove set forth, for such costs and expenses incurred by Administrative Agent and/or any Lender regardless of whether they are incurred prior or subsequent to the Debt (as such term is defined in Exhibit A attached hereto) being declared immediately due and payable or the occurrence of any other event described in Section 10 below and even though Administrative Agent and/or any Lender(s) may not have an allowed claim for any of the same against the Borrower as a result of any bankruptcy or insolvency proceeding.

 

4.                                      The Guarantors agree that they shall indemnify, defend and hold harmless Administrative Agent and each Lender at each Guarantor’s sole cost and expense against any damage, loss, liability, cost or expense (including, but not limited to, all Legal Fees), and all claims, actions, procedures and suits arising out of or in connection with:

 

(a)                                 the failure of the Borrower to take and complete the actions specified in clauses (a), (b) and (c) of Section 2 of this Guaranty in accordance with the provisions of the Loan Documents and within the time periods set forth therein;

 

(b)                                 any matters arising out of this Guaranty and any document or instrument now or hereafter executed and/or delivered by the Guarantors in connection herewith, including, but not limited to, any amendment to, or restructuring of, this Guaranty or the obligations of the Guarantors hereunder (the “Guaranty Documents”); and

 

(c)                                  any and all lawful action that may be taken by Administrative Agent (on behalf of itself and any Lender) and/or each and any Lender in connection with the enforcement of the provisions of this Guaranty after one or more of the events described in Section 10 below occur, or of any of the other Guaranty Documents and the obligations of the Guarantors thereunder, whether or not suit is filed in connection with the same, or in connection with the Borrower, any of the Guarantors and/or any partner, member, joint venture or shareholder thereof becoming a party to a voluntary or involuntary federal or state bankruptcy, insolvency or similar proceeding.

 

All sums expended by Administrative Agent and/or each Lender shall be payable within ten (10) days after demand and, until reimbursed by the Guarantors pursuant hereto, shall bear interest at the Involuntary Rate (as defined in  the Mortgage).

 

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5.                                      The Guarantors acknowledge and agree that it will be impossible to accurately measure the damages to Administrative Agent and any Lender resulting from a breach of the covenants to complete or to cause the completion of the construction and equipping of the Improvements, as set forth in Sections 2 and 3 hereof, that such a breach will cause irreparable injury to Administrative Agent and the Lender(s) and that neither Administrative Agent nor any Lender has an adequate remedy at law in respect of such breach and, as a consequence, agrees that such covenant shall be specifically enforceable against the Guarantors, and the Guarantors hereby waive and agree not to assert any defense based on the denial of any of the foregoing in an action for specific performance of such covenant.

 

6.                                      The Guarantors each hereby represent and warrant that all financial statements of the Guarantors heretofore delivered to Administrative Agent and each Lender by or on behalf of the Guarantors are true and correct in all material respects and fairly present the financial condition of the Guarantors as of the respective dates thereof, and no material adverse change has occurred in the financial conditions reflected therein since the respective dates thereof.  In addition, the Guarantors covenant that so long as the Loan remains outstanding and unpaid, the Guarantors will, unless otherwise consented to in writing by Administrative Agent:

 

(a)                                 furnish to Administrative Agent and Lenders, as soon as available, but in any event within ninety (90) days next following the end of each fiscal year of the Guarantors, annual audited financial statements in the same form of financial statements delivered to Administrative Agent prior to the date hereof, for such fiscal year, containing a fully itemized statement of profit and loss and of surplus and an audited balance sheet, and otherwise in form and substance satisfactory to Administrative Agent, such statement accompanied by a certificate signed by the Guarantors certifying on the date thereof that:  (i) such financial statement is true, correct and complete in all material respects and (ii) either that no default nor event which upon notice or lapse of time or both would constitute a default under the Loan Documents has occurred hereunder or, if such default exists, the nature thereof and the period of time it has existed (a “Certification”); and

 

(b)                                 furnish to Administrative Agent, within fifteen (15) days after request, such further detailed financial and other information (including, but not limited to, financial statements) as may be reasonably requested by Administrative Agent or any Lender with respect to the Guarantors, or any affiliate of, or entity controlled by any or all of the Guarantors which are involved in the Project, as of a date not earlier than that specified by Administrative Agent in such request, together with a Certification with respect thereto.

 

7.                                      In addition to any right available to Administrative Agent and/or Lenders under applicable law or any other agreement, the Guarantors hereby give to Administrative Agent on behalf of the Lenders continuing liens on, security interest in and right of set-off against all moneys, securities and other property of the Guarantors and the proceeds thereof, now on deposit or now or hereafter delivered, remaining with or in transit in any manner to the Administrative Agent and/or each Lender, their correspondents, participants or agents from or for the Guarantors, whether for safekeeping, custody, pledge, transmission, collection or otherwise or coming into possession of the Administrative Agent and/or any Lender in any way, and also, any balance of any deposit account and credits of the Guarantors with, and any and all claims of the Guarantors against the Administrative Agent and/or either Lender at any time existing, as

 

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collateral security for all of the obligations of the Guarantors under this Guaranty, including fees, contracted with or acquired by the Administrative Agent and/or any Lender, whether joint, several, absolute, contingent, secured, matured or unmatured (collectively, the “Liabilities”), hereby authorizing Administrative Agent (on behalf of each Lender) and/or each Lender at any time or times upon the occurrence and continuance of an Event of Default, without prior notice, to apply such balances, credits or claims, or any part thereof, to the obligations of the Guarantors hereunder in such amounts as it may select, whether contingent, unmatured or otherwise and whether any collateral security therefor is deemed adequate or not.  The collateral security described herein shall be in addition to any collateral security described in any separate agreement executed by any or all of the Guarantors.  The Administrative Agent (on behalf of each Lender) and each Lender, in addition to any right available to the Administrative Agent and/or each Lender under applicable law or any other agreement, shall have the right, upon the occurrence and during the continuance of an Event of Default, at its option, to immediately set off against any obligations of the Guarantors hereunder all monies owed by Administrative Agent and/or each Lender in any capacity to any or all of the Guarantors, whether or not due, and Administrative Agent (on behalf of itself and each Lender) and each Lender shall, at the option of the Administrative Agent and/or such Lender, as may be applicable, be deemed to have exercised such right to set off and to have made a charge against any such money immediately upon the occurrence of any events of default set forth below, even though such charge is made or entered on the books of Administrative Agent and/or any Lender subsequent to those events.

 

8.                                      The Guarantors hereby expressly agree that this Guaranty is independent of, and in addition to, all collateral granted, pledged or assigned under the Loan Documents, and the Guarantors hereby consent that from time to time, before or after any default by the Borrower or the maturity of the Loan, with or without further notice to or assent from any of the Guarantors, Administrative Agent (on behalf of any Lender) and/or any Lender may:

 

(a)                                 accelerate (only after any Event of Default by the Borrower), settle, exchange, surrender or release any security at any time held by or available to Administrative Agent (for the benefit of either Lender) and/or either Lender for any obligation of the Borrower, or any security at any time held by or available to Administrative Agent (for the benefit of the Lender(s)) and/or either Lender for any obligation of any other person or party primarily, secondarily or otherwise liable for all or any portion of the Debt, any other Liabilities and/or any other obligation or any other person or party (other than Administrative Agent or any Lender) under any of the Loan Documents (“Other Obligations”), including any guarantor of the Debt, the Liabilities and/or any of such Other Obligations;

 

(b)                                 amend, by written agreement or otherwise with the Borrower or any guarantor of the Debt and/or the Borrower’s obligations under the Loan Documents (an “Other Guarantor”), any provision of the Plans or the Loan Documents, including any change in the interest rate therein or any change in the time or manner of payment thereunder;

 

(c)                                  make any agreement with the Borrower or any Other Guarantor for the extension, payment, compounding, modification, compromise, discharge or release of any provision of the Loan Documents or for the modification of the terms thereof; and/or

 

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(d)                                 extend further credit in any manner whatsoever to the Borrower or any Other Guarantor, and generally deal with the Borrower or any Other Guarantor or any of the security, deposit account or credit on its books or any other person or party as Administrative Agent and/or either Lender, as applicable, may see fit;

 

and the Guarantors shall remain bound in all respects under this Guaranty without any loss of any rights by Administrative Agent and/or any Lender and without affecting the liability of the Guarantors.  Without limiting the generality of the foregoing, Administrative Agent (on behalf of Lenders) and each Lender are expressly authorized to surrender to the Borrower or any Other Guarantor, or to deal with, realize or not realize upon, or modify the form of, any security which Administrative Agent (on behalf of Lenders) and/or each Lender may at any time hold to secure the performance of any obligation hereby guaranteed, and the guaranties herein made by the Guarantor shall not be impaired or affected by any of the foregoing.  In addition, all moneys available to Administrative Agent and/or any Lender for application in payment or reduction of the Debt, the Liabilities and/or the Other Obligations may be applied by Administrative Agent and/or any Lender in such manner and in such amounts and at such time or times and in such order, priority and proportions as Administrative Agent and/or such Lender, as may be applicable, may see fit.

 

9.                                      Each of the Guarantors hereby waives:

 

(a)                                 notice of acceptance of this Guaranty;

 

(b)                                 protest and notice of dishonor or default to any or all of the Guarantors or to any other person or party with respect to any obligations hereby guaranteed;

 

(c)                                  all other notices to which any or all of the Guarantors might otherwise be entitled;

 

(d)                                 any demand under this Guaranty except under Section 3 hereof;

 

(e)                                  any requirement of diligence on the part of any person or entity;

 

(f)                                   the benefits of any statutory provision limiting the liability of a surety; and

 

(g)                                  any requirement to exhaust any remedies or mitigate the damages resulting from any default.

 

10.                               If any of the following events should occur:

 

(a)                                 default under any of the Loan Documents occasioned, either directly or indirectly, by any of the Guarantors, and its continuance beyond any applicable notice and/or grace periods therein contained;

 

(b)                                 any or all of the Guarantors violate any provision of this Guaranty and such violation continues and remains uncured for a period of ten (10) days after written notice thereof is sent to the Guarantor;

 

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(c)                                  any or all of the Guarantors commence any case, proceeding or other action under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, or seeks to have an order for relief entered with respect to it, or seeks to be adjudicated a bankrupt or insolvent, or seeks reorganization, arrangement, adjustment, liquidation, dissolution, composition or other relief with respect to it or its debts, or seeks the appointment of a receiver, trustee, custodian or other similar official for it or for all or any substantial part of their property;

 

(d)                                 any or all of the Guarantors make a general assignment for the benefit of creditors;

 

(e)                                  there is commenced against any or all of the Guarantors, any case, proceeding or other action of a nature referred to in subsection (c) above or seeking the issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of their property, which case, proceeding or other action results in the entry of an order for relief or remains undismissed, undischarged or unbonded for a period of thirty (30) days;

 

(f)                                   any or all of the Guarantors take any action indicating its consent to, approval of, or acquiescence in, or in furtherance of, any of the acts set forth in subsections (c) and (d) above;

 

(g)                                  any or all of the Guarantors admit in writing their inability to pay its debts as they mature;

 

(h)                                 any or all of the Guarantors terminate or dissolve or suspend their usual business activities or convey, sell, lease, transfer or otherwise dispose of all or a substantial part of their property, business or assets other than in the ordinary course of business; or

 

(i)                                     any or all of the Guarantors attempts to repudiate its obligations under this Guaranty;

 

then, and in such event, Administrative Agent on behalf of the Lenders may declare the Liabilities to be, and the same shall become, immediately due and payable.

 

11.                               Each reference herein to Administrative Agent and/or any Lender(s) shall be deemed to include their successors and assigns, in whose favor the provisions of this Guaranty shall also inure.  Each reference herein to the Guarantors shall be deemed to include the heirs, executors, administrators, legal representatives, successors and assigns of the Guarantors, all of whom shall be bound by the provisions of this Guaranty; provided, however, that the Guarantors shall in no event nor under any circumstance have the right, without obtaining the prior written consent of Administrative Agent and any applicable Lender, to assign or transfer the Guarantors’ obligations and liabilities under this Guaranty, in whole or in part, to any other person, party or entity.

 

12.                               The term “Guarantors” as used herein shall, if this Guaranty is signed by more than one party, unless otherwise stated herein, mean the “Guarantors and each of them” and each undertaking herein contained shall be their joint and several undertaking. Administrative Agent and any Lender may proceed against none, one or more of the Guarantor at one time or

 

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from time to time as it sees fit in its sole and absolute discretion.   If any party hereto shall be a partnership, the agreements and obligations on the part of the Guarantors herein contained shall remain in force and application notwithstanding any changes in the individuals composing the partnership and the term “Guarantors” shall include any altered or successive partnerships, but the predecessor partnerships and their partners shall not thereby be released from any obligations or liability hereunder.  If any party hereto shall be a limited liability company, the agreements and obligations on the part of the Guarantors herein contained shall remain in force and application notwithstanding any changes in the individuals composing the limited liability company and the term “Guarantors” shall include any altered or successive limited liability companies, but the predecessor limited liability companies and their members shall not thereby be released from any obligations or liability hereunder.  If any party hereto shall be a corporation, the agreements and obligations on the part of the Guarantors herein contained shall remain in force and application notwithstanding the merger, consolidation, reorganization or absorption thereof, and the term “Guarantors” shall include such new entity, but the old entity shall not thereby be released from any obligations or liabilities hereunder.

 

13.                               No delay on the part of Administrative Agent and/or any Lender in exercising any right or remedy under this Guaranty or failure to exercise the same shall operate as a waiver in whole or in part of any such right or remedy.  No notice to or demand on any or all of the Guarantors shall be deemed to be a waiver of the obligations of any or all of the Guarantors or of the right of Administrative Agent and/or any Lender to take further action without notice or demand as provided in this Guaranty.  No course of dealing between any of the Guarantors and Administrative Agent and/or any Lender shall change, modify or discharge, in whole or in part, this Guaranty or any obligations of the Guarantor hereunder.

 

14.                               This Guaranty may only be modified, amended, changed by an agreement in writing signed by Administrative Agent, each Lender and the Guarantors.  No waiver of any term, covenant or provision of this Guaranty shall be effective unless given in writing by Administrative Agent and if so given by Administrative Agent shall only be effective in the specific instance in which given.  The execution and delivery hereafter to Administrative Agent for the benefit of the Lenders by any or all of the Guarantors of a new instrument of guaranty or any reaffirmation of guaranty, of whatever nature, shall not terminate, supersede or cancel this instrument, unless expressly so provided therein, and all rights and remedies of Administrative Agent and/or the Lender(s) hereunder or under any instrument of guaranty hereafter executed and delivered to Administrative Agent and/or such Lender(s) by any or all of the Guarantors shall be cumulative and may be exercised singly or concurrently.

 

15.                               Each of the Guarantors acknowledge that this Guaranty and the Guarantors’ obligations under this Guaranty are and shall at all times continue to be absolute, irrevocable and unconditional in all respects, and shall at all times be valid and enforceable irrespective of any other agreements or circumstances of any nature whatsoever which might otherwise constitute a defense to this Guaranty and the obligations of any or all of the Guarantors under this Guaranty or the obligations of any other person or party (including, without limitation, the Borrower) relating to this Guaranty or the obligations of any or all of the Guarantors hereunder or otherwise with respect to the Debt, including, but not limited to, a foreclosure of the Mortgage or the realization upon any other collateral given, pledged or assigned as security for all or any portion of the Debt, or the filing of a petition under Title 11 of the United States Code with regard to the

 

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Borrower or any or all of the Guarantors, or the commencement of an action or proceeding for the benefit of the creditors of the Borrower or the Guarantors, or the obtaining by Administrative Agent (on behalf of Lenders) or each Lender of title to, respectively, the premises encumbered by the Mortgage or any other collateral given, pledged or assigned as security for the Debt by reason of the foreclosure or enforcement of the Mortgage or any other pledge or security agreement, the acceptance of a deed or assignment in lieu of foreclosure or sale, or otherwise.  This Guaranty sets forth the entire agreement and understanding of Administrative Agent, each Lender and the Guarantors with respect to the matters covered by this Guaranty and the Guarantors acknowledge that no oral or other agreements, understandings, representations or warranties exist with respect to this Guaranty or with respect to the obligations of the Guarantors under this Guaranty, except those specifically set forth in this Guaranty.

 

16.                               This Guaranty has been validly authorized, executed and delivered by the Guarantors.  The Guarantors each represent and warrant to Administrative Agent and each Lender that they have the power to do so and to perform their obligations under this Guaranty and this Guaranty constitutes the legally binding obligation of the Guarantors fully enforceable against each of the Guarantors in accordance with the terms hereof.  The Guarantors each further represent and warrant to Administrative Agent and each Lender that, to the best of their knowledge:

 

(a)                                 neither the execution and delivery of this Guaranty nor the consummation of the transactions contemplated hereby nor compliance with the terms and provisions hereof will violate any applicable provision of law or any applicable regulation or other manifestation of governmental action; and

 

(b)                                 all necessary approvals, consents, licenses, registrations and validations of any governmental regulatory body, including, without limitation, approvals required to permit the Guarantors to execute and carry out the provisions of this Guaranty, for the validity of the obligations of the Guarantors hereunder and for the making of any payment or remittance of any funds required to be made by the Guarantors under this Guaranty, have been obtained and are in full force and effect.

 

17.                               Notwithstanding any payments made by any or all of the Guarantors pursuant to the provisions of this Guaranty, the Guarantors irrevocably waive all rights to enforce or collect upon any rights which they now have or may acquire against the Borrower either by way of subrogation, indemnity, reimbursement or contribution for any amount paid under this Guaranty or by way of any other obligations whatsoever of the Borrower to any or all of the Guarantors while the Loan is outstanding, nor shall any or all of the Guarantors file, assert or receive payment on any claim, whether now existing or hereafter arising, against the Borrower in the event of the commencement of a case by or against the Borrower under Title 11 of the United States Code.  In the event either a petition is filed under said Title 11 of the United States Code with regard to the Borrower or the commencement of an action or proceeding for the benefit of the creditors of the Borrower, this Guaranty shall at all times thereafter remain effective in regard to any payments or other transfers of assets to Administrative Agent (on behalf of each Lender) or each Lender received from or on behalf of the Borrower prior to termination or notice of termination of this Guaranty and which are or may be held voidable on the grounds of preference or fraud, whether or not the Debt has been paid in full or the expansion and renovation of the

 

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Premises and construction and equipping of the Improvements has been completed in accordance with the Loan Agreement and the Plans.  Any payment on account of or reacknowledgment of the Debt by the Borrower, or any other party liable therefor, or action taken, or payment or reacknowledgment made, of any of the obligations of the Borrower to take and complete the actions specified in clauses (a), (b) and (c) of Section 2 of this Guaranty shall be deemed to be taken or made on behalf of the Guarantors and shall serve to start anew the statutory period of limitations applicable to the Borrower with respect to said clauses (a), (b) and (c) of Section 2 hereof or the Guarantors hereunder.  The provisions of this Section 17 shall survive the term of this Guaranty and the payment in full of the Debt any other Liabilities and/or any Other Obligations.

 

18.           All notices required or permitted hereunder shall be given to the addresses set forth below in the manner as provided in the Loan Agreement:

 

If to Administrative Agent:                                                TD Bank, N.A. 
 317 Madison Avenue, 2nd Floor
 New York, NY 10017            
 Attention: Matthew Schatz

 

with a copy to:                                                                                                                 Windels Marx Lane & Mittendorf, LLP
 156 West 56th Street 
 New York, New York 10019
 Attention: Michele Arbeeny

 

And with a copy to:                                                                                      Gateway Sub-CDE I, LLC

2 Gateway Center, 5th Floor

Newark, New Jersey 07102

Attention: Wendy Houston

 

with a copy to:                                                                                                                 Nixon Peabody LLP

401 9th Street, NW

Washington, DC  20004

Attention:  Michael J. Goldman, Esq.

 

And with a copy to:                                                                                      NJCC CDE Essex LLC 
 New Jersey Community Capital

108 Church Street, 3rd Floor

New Brunswick, NJ 08901
 Attention: Marie Mascherin

 

and to:                                                                                                                                                           Duane Morris LLP
 30 South 17th Street
 Philadelphia, PA 19103-4196
 Attention: Arthur Momjian, Esq.

 

If to the Guarantors:                                                                                     Teachers Village School QALICB Urban Renewal, LLC

RBH-TRB Newark Holdings, LLC

 

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c/o RBH Group

89 Market Street, 8th Floor

Newark, New Jersey 07102
 Attention:  Mr. Ron Beit

 

And:                                                                                                                                                                     McManimon & Scotland, LLC
 1037 Raymond Boulevard, Suite 400 
 Newark, New Jersey 07102
 Attention:  Glenn F. Scotland, Esq.

 

it being understood and agreed that each party will use reasonable efforts to send copies of any notices to the addresses marked “With a copy to” hereinabove set forth; provided, however, that failure to deliver such copy or copies shall have no consequence whatsoever to the effectiveness of any notice made to any of the Guarantors or the Administrative Agent.  Each party to this Guaranty may designate a change of address by notice given, as herein provided, to the other party fifteen (15) days prior to the date such change of address is to become effective.

 

19.           This Guaranty is, and shall be deemed to be, a contract entered into under and pursuant to the laws of the State of New Jersey and shall be in all respects governed, construed, applied and enforced in accordance with the laws of the State of New Jersey without regard to principles of conflicts of laws.

 

20.           The Guarantors agree to submit to personal jurisdiction in the State of New Jersey in any action or proceeding arising out of this Guaranty.  In furtherance of such agreement, the Guarantors hereby agree and consent that without limiting other methods of obtaining jurisdiction, personal jurisdiction over the Guarantors in any such action or proceeding may be obtained within or without the jurisdiction of any court located in New Jersey and that any process or notice of motion or other application to any such court in connection with any such action or proceeding may be served upon the Guarantors by registered or certified mail to, or by personal service at, the last known address of the Guarantors, whether such address be within or without the jurisdiction of any such court.  The Guarantors hereby further agree that the venue of any litigation arising in connection with the Debt or in respect of any of the obligations of the Guarantors under this Guaranty, shall, to the extent permitted by law, be in the City of Newark, New Jersey.

 

21.           The Guarantors absolutely, unconditionally and irrevocably waive any and all right to assert or interpose any defense except the defense that payment and performance was actually made hereunder, setoff, counterclaim or crossclaim of any nature whatsoever with respect to this Guaranty or the obligations of the Guarantors under this Guaranty, other than a compulsory counterclaim, or the obligations of any other person or party (including without limitation, the Borrower) relating to this Guaranty, or the obligations of the Guarantors hereunder or otherwise with respect to the Loan in any action or proceeding brought by Administrative Agent and/or any Lender to collect on the Debt, or any portion thereof, or to enforce the obligations of the Borrower or any other party under the Loan Agreement or any of the other Loan Documents, including those of the Guarantors under this Guaranty (provided, however, that the foregoing shall not be deemed a waiver of the right of the Guarantors to assert any compulsory counterclaim maintained in a court of the United States, or of the State of New

 

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Jersey if such counterclaim is compelled under local law or rule of procedure, nor shall the foregoing be deemed a waiver of the right of the Guarantors to assert any claim which would constitute a defense, setoff, counterclaim or crossclaim of any nature whatsoever against Administrative Agent and/or any Lender in any separate action or proceeding).  The Guarantors hereby undertake and agree that this Guaranty shall remain in full force and effect for all of the obligations and liabilities of the Guarantors hereunder, notwithstanding the maturity of the Loan, whether by acceleration, scheduled maturity or otherwise.

 

22.           No exculpatory provisions contained in any of the Loan Documents shall in any event or under any circumstances be deemed or construed to modify, qualify, or affect in any manner whatsoever the obligations and liabilities of the Guarantors under this Guaranty.

 

23.           The obligations and liabilities of the Guarantors under this Guaranty are in addition to the obligations and liabilities of the Guarantors under the Other Guaranties (as hereinafter defined).  The discharge of any or all of the Guarantors’ obligations and liabilities under any one or more of the Other Guaranties by the Guarantors or by reason of operation of law or otherwise shall in no event or under any circumstance constitute or be deemed to constitute a discharge, in whole or in part, of the Guarantors’ obligations and liabilities under this Guaranty.  Conversely, the discharge of any or all of the Guarantors’ obligations and liabilities under this Guaranty by the Guarantors or by reason of operation of law or otherwise shall in no event or under any circumstance constitute or be deemed to constitute a discharge, in whole or in part, of the Guarantors’ obligations and liabilities under any of the Other Guaranties.  The term “Other Guaranties” as used herein shall mean any other guaranty of payment, guaranty of performance, completion guaranty, indemnification agreement or other guaranty or instrument creating any obligation or undertaking of any nature whatsoever (other than this Guaranty) now or hereafter executed and delivered by any or all of the Guarantors to Administrative Agent (on behalf of each Lender) and/or each Lender in connection with the Loan.

 

24.           This Guaranty may be executed in one or more counterparts by some or all of the parties hereto, each of which counterparts shall be an original and all of which together shall constitute a single agreement of guaranty.  The failure of any party listed below to execute this Guaranty, or any counterpart hereof, or the ineffectiveness for any reason of any such execution, shall not relieve the other signatories from their obligations hereunder nor shall any implication arise from the failure of any of the original guarantors to sign this Guaranty that such non-signing guarantor, or any other guarantor, is released from any of his/her/its respective obligations under the original guaranty.

 

25.           The Guarantors hereby irrevocably and unconditionally waive, and Administrative Agent on behalf of itself and each Lender by its acceptance of this Guaranty irrevocably and unconditionally waives, any and all right to trial by jury in any action, suit or counterclaim arising in connection with, out of or otherwise relating to this Guaranty.

 

26.           In no event shall this Guaranty be deemed to constitute a guaranty of the payment of the principal or the interest evidenced by each Note and secured by the Mortgage.  The foregoing is not intended, and shall not be deemed, to impair or affect any guaranties herein made by the Guarantors.

 

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27.           This Guaranty shall automatically terminate upon completion of the expansion and renovation of the Premises and the construction and equipping of the Improvements and receipt of a permanent certificate of occupancy for the Premises and all of the Improvements.

 

28.           If the Administrative Agent is removed in accordance with Article 9 of the Loan Agreement, then the replacement administrative agent appointed pursuant to the Loan Agreement shall succeed to the rights of the Administrative Agent set forth herein.  If any Lender does not appoint a replacement administrative agent, then each Lender shall have the rights of the Administrative Agent hereunder.

 

[Signature Pages Follow]

 

13

 

IN WITNESS WHEREOF, the undersigned have duly executed this Joint and Several Completion Guaranty the day and year first above set forth.

 

	
 
    	
 
    	
GUARANTORS:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
TEACHERS   VILLAGE SCHOOL QALICB URBAN RENEWAL, LLC, a New Jersey limited   liability company
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Ron Beit-Halachmy
    
	
 
    	
 
    	
 
    	
Ron   Beit-Halachmy
    
	
 
    	
 
    	
 
    	
Authorized   Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
RBH-TRB NEWARK HOLDINGS, LLC, a New York limited liability company
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Ron Beit-Halachmy
    
	
 
    	
 
    	
 
    	
Ron Beit-Halachmy
    
	
 
    	
 
    	
 
    	
Authorized Signatory
    

 

Signature Page

QLICI Completion Guaranty

 

 

	
STATE OF
    	
   )
    
	
 
    	
 ss.:
    
	
COUNTY OF
    	
   )
    

 

On the        day of                    in the year 2012 before me, the undersigned, a notary public in and for said state, personally appeared           , 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 s/he executed the same in his/her capacity and that by his/her signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notary Public
    
	
 
    	
 
    
	
STATE OF
    	
   )
    
	
 
    	
 ss.:
    
	
COUNTY OF
    	
   )
    

 

On the        day of                    in the year 2012 before me, the undersigned, a notary public in and for said state, personally appeared               , 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 s/he executed the same in his/her capacity and that by his/her signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notary Public
    

 

Signature Page

QLICI Completion Guaranty

 

 

EXHIBIT A

 

Debt:  The term “Debt” as used in this Guaranty shall mean an amount equal to the aggregate of all outstanding principal, interest, additional interest (including specifically all interest accruing from and after the commencement of any case, proceeding or action under any existing or future laws relating to bankruptcy, insolvency or similar matters with respect to the Borrower), Loan fees and other sums of any nature whatsoever which may or shall become due and payable pursuant to the provisions of the Loan Documents (all of the above unaffected by modification thereof in any bankruptcy or insolvency proceeding), and even though Administrative Agent and/or any Lender may not have an allowed claim for the same against the Borrower as a result of any bankruptcy or insolvency proceeding.

 

Improvements:  The term “Improvements” as used in this Guaranty shall mean the expansion of the development located on the Premises.

 

Loan Agreement:  The term “Loan Agreement” as used in this Guaranty shall mean that certain Building Loan Agreement dated as of the date hereof, entered into among the Borrower, Administrative Agent and each Lender.

 

Mortgage:  The term “Mortgage” as used in this Guaranty shall mean, collectively, (i)that certain Leasehold Mortgage, Assignment of Leases and Rents and Security Agreement in the aggregate sum of $27,000,000.00, dated as of the date hereof, given by the Borrower to each Lender and Administrative Agent for the benefit of the Lenders constituting a lien on the fee simple interest of the Borrower in the Premises, the Improvements and intended to be duly recorded in Essex County, Newark, New Jersey, and (ii) that certain Leasehold Mortgage, Assignment of Leases and Rents and Security Agreement in the aggregate sum of $32,700,000.00, dated as of the date hereof, given by the Borrower to each Lender and Administrative Agent for the benefit of the Lenders constituting a lien on the fee simple interest of the Borrower in the Premises, the Improvements and intended to be duly recorded in Essex County, Newark, New Jersey.

 

Premises:  The term “Premises” as used in this Guaranty shall mean the real property located in Essex County, Newark, New Jersey, identified in the Mortgage.Exhibit 10.10

 

Execution Version

 

GUARANTY OF

NEW MARKETS TAX CREDITS

 

THIS GUARANTY OF NEW MARKETS TAX CREDITS (this “Guaranty”), is made as of February 3, 2012, by TEACHERS VILLAGE SCHOOL QALICB URBAN RENEWAL, LLC, a New Jersey Urban Renewal limited liability company, and RBH-TRB NEWARK HOLDINGS, LLC, a New York limited liability company (each a “Guarantor” and collectively, the “Guarantors”, jointly and severally) for the benefit of GSB NMTC INVESTOR LLC, a Delaware limited liability company, its successors and assigns and any transferees of its interest in the Fund (as hereinafter defined) (collectively, the “Investor”).

 

RECITALS

 

WHEREAS, Gateway CDE, LLC, a Delaware limited liability company (“Gateway Allocatee”), has received an allocation of NMTCs (as hereinafter defined) under Section 45D of the Code (as hereinafter defined), in the amount of $50,000,000 (the “Gateway Allocation”); and

 

WHEREAS, on the date hereof, Gateway Allocatee will make a sub-allocation of the Gateway Allocation to Gateway Sub-CDE I, LLC, a Delaware limited liability company (the “Gateway Sub-CDE”), in the amount of $50,000,000 (the “Gateway Sub-Allocation”); and

 

WHEREAS, Community Loan Fund of New Jersey, Inc., a New Jersey not-for-profit corporation (“NJCC Allocatee” and together with Gateway Allocatee, collectively, the “Allocatee”), has received an allocation of NMTCs under Section 45D of the Code, in the amount of $35,000,000 (the “NJCC Allocation” and together with the Gateway Allocation, collectively, the “Allocation”); and

 

WHEREAS, NJCC Allocatee will make a sub-allocation of the NJCC Allocation to NJCC CDE Essex, LLC, a New Jersey limited liability company (the “NJCC Sub-CDE” and together with the Gateway Sub-CDE, collectively, the “Sub-CDE”), in the amount of $10,000,000 (the “NJCC Sub-Allocation” and together with the Gateway Sub-Allocation, collectively, the “Sub-Allocation”); and

 

WHEREAS, the Investor has made or agreed to make equity investments in GS Halsey NMTC Investment Fund LLC, a Delaware limited liability company (the “Fund”), in the amounts of $30,000,000, $5,689,766 and $2,500,234 (collectively, the “Fund Capital Contribution”) (although it is not certain that the equity investment in the amount of $9,158,368 shall occur and if such equity investment does not occur, all references to the Fund Capital Contributions shall refer to only the amount of the Fund Capital Contributions that have been made) in exchange for a 100.00% ownership interest in the Fund; and

 

WHEREAS, the Fund will obtain a loan from RBH-TRB East Mezz Urban Renewal Entity, LLC, a New Jersey urban renewal limited liability company (the “Senior

 

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Leverage Lender”), in the amount of $27,795,619 (the “Senior Leverage Loan”), which shall be evidenced by two promissory notes, one in the amount of $17,550,000 and one in the amount of $10,245,619; and

 

WHEREAS, the Fund will obtain a loan from Goldman Sachs Bank USA, a New York banking corporation (the “First Subordinate Leverage Lender”), in the amount of $8,400,000 (the “First Subordinate Leverage Loan”);

 

WHEREAS, the Fund will obtain a second subordinate leverage loan from RBH-TRB Newark Holdings, LLC (the “Second Subordinate Leverage Lender”), in the amount of $766,248 (the “Second Subordinate Leverage Loan” and together with the Senior Leverage Loan and the First Subordinate Leverage Loan, collectively, the “Leverage Loan”); and

 

WHEREAS, the Fund will use the proceeds of the Fund Capital Contribution and Leverage Loan to make capital contributions to the NJCC Sub-CDE in the amount of $5,000,000 and to the Gateway Sub-CDE in the amount of $15,841,632 (each such capital contribution, a “QEI” and collectively the capital contributions shall be referred to as the “QEIs”) in exchange for a 99.99% equity interest in the NJCC Sub-CDE and a 100% equity interest in the Gateway Sub-CDE; and

 

WHEREAS, on or before May 4, 2012, the following may occur: (i) the Fund will obtain a leverage loan from the Senior Leverage Lender, in the aggregate principal amount of $6,658,133 (the “Second Senior Leverage Loan”); and (ii) the Fund will use the proceeds of the Second Senior Leverage Loan to (a) make a second equity investment in the NJCC Sub-CDE in the amount of $5,000,000 and a third equity investment in the Gateway Sub-CDE in the amount of $4,158,368 (each such capital contribution shall be a QEI, although it is not certain that such capital contributions shall occur), and (b) pay certain operating expenses of the Fund.  If such capital contributions do not occur, all the references to QEIs shall refer to the QEIs made on the date hereof; and

 

WHEREAS, the Sub-CDE is expected to designate any QEI which it receives as a “qualified equity investment” as defined under Section 45D of the Code; and

 

WHEREAS, the Sub-CDE will use substantially all of the proceeds of the QEIs to make certain loans (collectively, the “Project Loan”) to Teachers Village School QALICB Urban Renewal, LLC, a New Jersey urban renewal limited liability company (in such capacity, the “Borrower”); and

 

WHEREAS, Borrower is a QALICB (as defined herein); and

 

WHEREAS, the Project Loan is expected to constitute a QLICI (as defined herein); and

 

WHEREAS, as a result of the transactions described in these recitals the Investor’s investment in the Fund is expected to generate NMTCs pursuant to Section 45D of the Code; and

 

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WHEREAS, the Guarantors will receive certain benefits in connection with the QEIs, the Leverage Loan, and the Project Loan; and

 

WHEREAS, the parties hereto now desire to enter into this Guaranty as hereinafter provided.

 

NOW, THEREFORE, in consideration of the foregoing, of the mutual promises of the parties hereto, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Guarantors hereby covenant and agree as follows:

 

1.                                      Definitions.

 

“Accountants” means The Reznick Group, P.C., or such other firm of independent certified public accountants as may be engaged by the Fund with the consent of the Investor.

 

“Affiliate” means, when used with reference to a specified Person; (a) any Person that, directly or indirectly, through one or more intermediaries, controls or is controlled by or is under common control with the specified Person, including by means of a non-member manager; (b) any Person that is an officer or director of, partner in, or trustee of, or serves in a similar capacity with respect to the specified Person or of which the specified Person is an officer, director, partner, or trustee, or with respect to which the specified Person serves in a similar capacity; (c) any Person that, directly or indirectly, is the beneficial owner of, or controls, ten percent (10%) or more of any class of equity securities of, or otherwise has a substantial beneficial interest (ten percent (10%) or more) in, the specified Person, or of which the specified Person is directly or indirectly the owner of ten percent (10%) or more of any class of equity securities, or in which the specified Person has a substantial beneficial interest (ten percent (10%) or more); and (d) any relative or spouse of the specified Person.

 

“After-Tax Basis” means, with respect to any payment to be received by the Investor, the amount of such initial payment supplemented by a further payment or payments so that, after deducting from such payments the amount of all income taxes imposed on the Investor by any governmental authority with respect to such payments, the remaining balance of such payments shall be equal to the amount of the initial payment.

 

“Allocatee” has the meaning set forth in the Recitals.

 

“Allocation” has the meaning set forth in the Recitals.

 

“Allocation Agreement” means, collectively, the Gateway Allocation Agreement and the NJCC Allocation Agreement.

 

“Borrower” has the meaning set forth in the Recitals.

 

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“CDFI Fund” means the Community Development Financial Institutions Fund of the United States Department of Treasury, or any successor agency charged with oversight responsibility for the NMTC program.

 

“Certification Application” means the Community Development Entity Certification Application of the CDE, as the same may have been supplemented or amended, together with the notice issued by the CDFI Fund of the certification of the CDE as a “qualified community development entity” as such term is defined in Section 45D of the Code and the Treasury Regulations and Guidance thereunder.

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Entity” means any general partnership, limited partnership, limited liability company, corporation, joint venture, trust, business trust, cooperative, association, foreign trust or foreign business organization.

 

“Financial Projections” means those certain financial projections prepared by the Accountants dated February 3, 2012 and attached hereto as Exhibit A.

 

“First Subordinate Leverage Lender” has the meaning set forth in the Recitals.

 

“First Subordinate Leverage Loan” has the meaning set forth in the Recitals.

 

“Fund” has the meaning set forth in the Recitals.

 

“Fund Agreement” means the Operating Agreement of the Fund, dated as of even date herewith, by and between the Investor, as investor member, and Community Loan Fund of New Jersey, Inc., as non-member manager, as amended from time to time.

 

“Fund Capital Contribution” has the meaning set forth in the Recitals.

 

“Gateway Allocation Agreement” means, collectively, that certain New Markets Tax Credit Program Allocation Agreement (Control Number: 07NMA003142), with a Notice of Allocation date of September 20, 2007, by and among the Gateway Allocatee, the Gateway Sub-CDE, other Subsidiary Allocatees of the Gateway Allocatee, and the CDFI Fund, governing the Allocation and Sub-Allocation, dated February 24, 2008, as such agreement may be further amended from time to time.

 

“Gateway Sub-CDE Agreement” means that certain First Amended and Restated Operating Agreement of the Gateway Sub-CDE, effective as of the date hereof, by and between Gateway Allocatee, as manager, and the Fund, as investor member, as amended from time to time.

 

“Guarantor” and “Guarantors” each has the meaning set forth in the preamble.

 

“Guaranty” has the meaning set forth in the preamble.

 

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“Indemnified Matters” has the meaning set forth in Section 2(a).

 

“Internal Rate of Return”  or “IRR”  means, with respect to the Investor’s Fund Capital Contribution, the discount rate that causes the sum of net present value of all cash inflows from the Investor (i.e., Capital Contributions) and the net present value of all cash distributions and other cash outflows to the Investor resulting from the investment (including the After-Tax Basis of tax credits, the tax liabilities allocated to the Investor by the Fund and distributions from the Fund to the Investor, whether from operating cash flow or capital transaction proceeds) to equal zero dollars ($0).  The Investor will be deemed to receive a specified Internal Rate of Return, with respect to any Capital Contributions, when the Investor has received net After Tax benefits equal to a return of all those Capital Contributions plus a cumulative, annually compounded, return on those Capital Contributions at the specified annual rate, calculated commencing on the date or dates those Capital Contributions are made and compounded annually to the extent the return is not paid on a current basis, taking into account the timing and amounts of all previous distributions, benefits and detriments made (or deemed made) or allocated to the Investor by the Fund.  For purposes of computing the Internal Rate of Return, (i) all cash in-flows, cash out-flows, benefits and detriments will be discounted to present value using monthly measuring periods and (ii) the calculation of Internal Rate of Return will be made using Microsoft Excel XIRR or similar calculation.

 

“Investor” has the meaning set forth in the preamble.

 

“IRS” means the United States Internal Revenue Service.

 

“Leverage Loan” has the meaning set forth in the Recitals.

 

“Leverage Loan Documents” means, collectively, the documents evidencing and/or securing the Leverage Loan.

 

“Loan Agreement” means that certain Loan Agreement by and among Gateway Sub-CDE, NJCC Sub-CDE, and Teachers Village School QALICB Urban Renewal, L.L.C, a New Jersey urban renewal limited liability company, dated as of the date hereof.

 

“NJCC Allocation Agreement” means, collectively, that certain New Markets Tax Credit Program Allocation Agreement (Control Number: 08NMA000129), by and among the NJCC Allocatee, the NJCC Sub-CDE, other Subsidiary Allocatees of the NJCC Allocatee, and the CDFI Fund, governing the Allocation and Sub-Allocation, dated March 18, 2009, as amended by those certain Amendments of NMTC Allocation Agreement dated December 23, 2009, December 17, 2010, and October 27, 2011, as such agreement may be further amended from time to time.

 

“NJCC Sub-CDE Agreement” means that certain Amended and Restated Operating Agreement of the NJCC Sub-CDE, dated as of even date herewith, by and between NJCC Allocatee, as managing member and the Fund, as investor member, as amended from time to time.

 

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“NMTCs” means New Market Tax Credits as provided in Section 45D of the Code.

 

“NMTC Program Requirements” means, collectively, the provisions of Section 45D of the Code, the Treasury Regulations and Guidance, and the Allocation Agreements.

 

“NMTC Recapture Amount” means the amount equal, on an After-Tax Basis, to the sum, as determined by the Accountants, necessary to be paid to the Investor to cause the Internal Rate of Return to the Investor on its Fund Capital Contribution through and including the date of the notice of the applicable NMTC Recapture Event to equal the Target Rate of Return.  For purposes of determining the NMTC Recapture Amount, all assumptions and methods (including but not limited to, timing of tax credit recognition and IRR) will conform to those used in the Financial Projections.  All tax benefits and obligations, as determined by the Accountants, realized by the Investor as a result of its Fund Capital Contribution plus any interest and penalties resulting from the NMTC Recapture Event will be considered in the determination of the NMTC Recapture Amounts.

 

“NMTC Recapture Event” means a recapture or disallowance of any Tax Credits attributable to the QEIs made by the Fund in the Sub-CDE to the extent that is caused by or results from, in whole or in part, (a) any failure of the Borrower to satisfy the requirements for being and continuing to be a qualified active low income business under Section 45D(d)(2) of the Code and Treasury Regulation 1.45D-1(d)(4), unless such failure is a result of the change in the Code or Treasury Regulations with which the Borrower is unable to comply without unreasonable effort or expense, (b) prepayment of any principal on the Project Loan caused by a breach by Borrower under the Project Loan Documents, whether voluntarily, involuntarily, through foreclosure or other exercise of remedies by the Sub-CDE or otherwise, (c) the failure of any of Borrower’s tenants or subtenants under any lease or sublease, if any, to comply with the requirements for lessees under Section 1.45D-1(d)(5)(ii) of the Treasury Regulations, (d) failure of the Borrower to meet the non-qualified financial property test under Section 1.45D-1(d)(4)(i)(E) of the Treasury Regulations, (e) any other recapture or disallowance of Tax Credits arising from the fraud, gross negligence, willful misconduct, malfeasance, misrepresentation, or violation of law of the Borrower or its Affiliates or any breach of any provision of the Transaction Documents that the Borrower or any Guarantor is a party to by the Borrower or its Affiliates or any breach by the Borrower or its Affiliates of any of the representations or warranties of the Borrower in the Transaction Documents that the Borrower or any Guarantor is a party to, or (f) any other act by or failure to act when action is required by or within the control of any of the Guarantors or any of their Affiliates.

 

“Payment Date” means, with respect to any NMTC Recapture Amount or NMTC Recapture Event, (i) the date of filing of a federal income tax return with respect to Investor’s activities that reflects an amount payable by reason of recapture or disallowance of Tax Credits; (ii) the date of entry into a closing agreement or other

 

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settlement with the IRS which reflects a disallowance or recapture of Tax Credits; (iii) the expiration of ninety days from the date of the issuance of a statutory notice or similar demand of payment from the Internal Revenue Service that asserts a disallowance or recapture of Tax Credits, unless the Investor determines (in its sole discretion) to seek review through the IRS Appeals Division or a determination by a court of competent jurisdiction; (iv) the expiration of thirty days after a decision by the IRS Appeals Division that upholds a disallowance or recapture of Tax Credits, unless the Investor determines (in its sole discretion) to seek review by a court of competent jurisdiction; or (v) the date of entry of judgment by a court of competent jurisdiction upholding a disallowance of recapture of Tax Credits, whether or not such decision is subject to appeal.

 

“Person(s)” means any individual or Entity, and the heirs, executors, administrators, legal representatives, successors, and assigns of such “Person” where the context so permits.

 

“Project Loan” has the meaning set forth in the Recitals.

 

“Project Loan Documents” means, collectively, the documents evidencing and/or securing the Project Loan.

 

“QALICB” means a “qualified active low-income community business” as such term is defined in Section 45D(d)(4) of the Code and the Treasury Regulations and Guidance.

 

“QEI” and “QEIs” each has the meaning set forth in the Recitals.

 

“QLICI” means a “qualified low income community investment” as such term is defined in Section 45D(d)(1) of the Code and the Treasury Regulations and Guidance.

 

“Refunded Credit Amount” has the meaning set forth in Section 2(b).

 

“Rights and Obligations” has the meaning set forth in Section 23.

 

“Satisfied Obligations” has the meaning set forth in Section 2(b).

 

“Second Subordinate Leverage Lender” has the meaning set forth in the Recitals.

 

“Second Senior Leverage Loan” has the meaning set forth in the Recitals.

 

“Second Subordinate Leverage Loan” has the meaning set forth in the Recitals.

 

“Senior Leverage Lender” has the meaning set forth in the Recitals.

 

“Senior Leverage Loan” has the meaning set forth in the Recitals.

 

“Sub-Allocation” has the meaning set forth in the Recitals.

 

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“Sub-CDE” has the meaning set forth in the Recitals.

 

“Sub-CDE Agreement” means, collectively, the Gateway Sub-CDE Agreement and the NJCC Sub-CDE Agreement.

 

“Target Rate of Return” means a projected, after-tax Internal Rate of Return to the Investor on account of its Fund Capital Contribution (and the Fund’s QEIs in the Sub-CDE) equal to 7.61%, taking into account the dates and amount of such Fund Capital Contribution, all cash distributions, Tax Credits and other tax benefits, and any offsetting tax detriments, as shall be determined under the Financial Projections, and utilizing the methodology contained in the Financial Projections.

 

“Tax Credits” means New Market Tax Credits.

 

“Transaction Documents” means the Fund Agreement, the Sub-CDE Agreement, the Leverage Loan Documents, the Project Loan Documents, and all related documents executed and delivered in connection therewith.

 

“Treasury Regulations” or “Treas. Reg.” means any temporary or final regulations promulgated from time to time under the Code.

 

“Treasury Regulations and Guidance” means the Treasury Regulations and any guidance, rule, or procedure published by the CDFI Fund or the U.S. Department of Treasury, including without limitation the Certification Application and the Allocation Agreements.

 

2.                                      Indemnification and Payment.

 

(a)                                 In the event a NMTC Recapture Event shall occur and the Guarantors have received written notice thereof from Investor indicating that a Payment Date has occurred, the Guarantors hereby absolutely and unconditionally agree, notwithstanding any standstill provisions that may exist with respect to any other Loan Documents (as such term is defined in the Loan Agreement), to pay to the Investor the NMTC Recapture Amount within ten (10) days after receipt of said written notice from Investor, and to indemnify and hold harmless the Investor, from and against any costs, expenses, claims, demands, penalties, fines, liabilities, settlements, losses or damages of whatever kind or nature (including reasonable counsel and attorney’s fees), known or unknown, contingent or otherwise, arising out of or in any way related to any costs, expenses, claims, demands, penalties, fines, liabilities, settlements, losses or damages of whatever kind or nature that shall be incurred by the Investor as a result of the failure of the Guarantor to perform its obligations hereunder (collectively, the “Indemnified Matters”).  If Guarantor has paid the NMTC Recapture Amount with respect to a notice under this Section 2(a) hereof, and there is a subsequent appeal of any court decision leading to such notice in which the Investor or its affiliates recovers all or part of such amounts, the Investor will promptly repay a corresponding portion of the amount paid by Guarantor to Guarantor.  In addition, to prevent a double recovery, if the Investor has been paid by Guarantors the maximum amount that could be due to Investors hereunder

 

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(reflecting a full disallowance of all Tax Credits contemplated for the QEIs for all years and all amounts payable with respect to such Tax Credits), and Investor later receives any cash amounts with respect to its capital contributions to the Fund (whether from distributions or upon sale of its interest), Investor shall return such amounts to the Guarantors in proportion to and to the extent of the amounts previously paid to Investor by such Guarantors.

 

(b)                                 If the Borrower has fully satisfied its obligation to pay a NMTC Recapture Amount pursuant to Section 2(a) hereof (the “Satisfied Obligations”), and the Investor shall have been allowed tax credits attributable to any Recaptured Credits or Disallowed Credits (a “Refunded Credit Amount”), whether due to changes in the Code or Treasury Regulations, or otherwise, the Investor shall pay to the Guarantors within thirty (30) days after Investor has recognized the Refunded Credit Amount for tax purposes an amount equal to the lesser of: (i) the Refunded Credit Amount, or (ii) the Satisfied Obligations.

 

(c)                                  In addition to the foregoing, the Guarantors shall also be obligated to pay, notwithstanding any standstill provisions that may exist with respect to any other Loan Documents (as such term is defined in the Loan Agreement): (i) all reasonable legal, accounting, and other fees and costs incurred by the Investor in connection with any tax audit, litigation or other proceedings challenging the Investor’s entitlement to the Tax Credits as a result of an actual or alleged NMTC Recapture Event; (ii) interest and any penalties on the NMTC Recapture Amount unpaid from time to time, if any, at the rate of two percent (2%) over the long-term applicable federal rate (as prescribed under Section 1274(d) of the Code) at the end of the calendar month preceding the date on which the specified NMTC Recapture Event occurs (payable on the later of (A) the tenth (10th) calendar day following the receipt of notice from the Lender of the amount of any such interest and penalties, or (B) the date on which the NMTC Recapture Amount is required to be paid), until paid in full; and (iii) all reasonable legal, accounting, and other fees and costs incurred by the Investor in connection with the enforcement of its rights under this Agreement.

 

3.                                      Representations.

 

(a)                                 Execution of this Guaranty has been duly authorized by each Guarantor. The consummation of all transactions contemplated herein and in any agreement incident to the transactions described above to be performed by the Guarantors does not and will not result in any breach or violation of, or default under any agreements by which the Guarantors or any of their respective property is bound, or under any applicable law, administrative regulation, or court decree, the effect of which will impair performance by such Guarantor of its obligations hereunder.  This Guaranty is enforceable against the Guarantors in accordance with its terms.

 

(b)                                 Each Guarantor further covenants, represents and warrants to and for the benefit of the Investor as follows:

 

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(i)                         there are no facts or circumstances of any kind or nature whatsoever of which it is aware that could in any way impair or prevent it from performing its obligations under this Guaranty;

 

(ii)                      any and all financial information with respect to it that it has given to the Investor in connection with the transactions contemplated by this Guaranty fairly and accurately presents its financial condition as of the respective dates thereof and for the respective dates indicated therein, and, since the respective dates thereof, there has been no adverse change in its financial condition;

 

(iii)                   with the assistance of counsel of its choice, it has read and reviewed this Guaranty and such other documents as it and its counsel deemed necessary or desirable to read;

 

(iv)                  each representation made by it or in any of the documents evidencing or securing any QLICI to which it is a party is true and correct in all respects and the Investor may rely thereon;

 

(v)                     each Guarantor covenants and agrees to provide to the Investor (i) within 120 days of the end of the calendar year its audited financial statements prepared by a certified public accountant in accordance with generally accepted accounting practice, (ii) within 10 days of filing the same, its Federal tax returns prepared by a certified public accountant in accordance with generally accepted accounting practice, (iii) within 60 days of the end of each fiscal quarter, quarterly unaudited financial statements (including a balance sheet, income statement and operating statement for such fiscal quarter) and (iv) such other financial information as the Investor shall reasonably request within twenty (20) days of any such request; and

 

(vi)                  it acknowledges receipt of valid and sufficient consideration for providing this Guaranty.

 

(c)                                  Each Guarantor further covenants and agrees to immediately notify the Investor of any change in its financial condition that adversely affects its ability to perform hereunder.

 

4.                                      Intended Beneficiary.  The parties intend that the Investor, and its successors and assigns (including, without limitation, successors, assigns and transferees of the Investor’s interest in the Fund), is a direct beneficiary of this Guaranty and that the Investor, and its successors, assigns and transferees of the Investor’s interest in the Fund, shall have the right to directly enforce the Guarantors’ obligations hereunder.  No person other than the Investor (and its successors, assigns and transferees of the Investor’s interest in the Fund), may directly or indirectly rely upon or enforce the provisions of this Guaranty, whether as a third party beneficiary or otherwise.

 

5.                                      Burden and Benefit.  This Guaranty and each covenant and agreement contained herein shall be binding on, and the term “Guarantor” or “Guarantors”, as used herein, shall include the heirs, personal representatives, successors, assigns, legal representatives and other transferees of the Guarantors, including, without limitation,

 

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successors by consolidation. This Guaranty shall inure to the benefit of the Investor and its respective successors and assigns.  The Guarantors shall not have the right to assign their respective obligations hereunder without the prior written consent of the Investor.

 

6.                                      Severability of Provisions.  Each provision of this Guaranty shall be considered severable, and if for any reason any provision that is not essential to the effectuation of the basic purposes of this Guaranty is determined to be invalid and contrary to any existing or future law, such invalidity shall not impair the operation of or affect those provisions of this Guaranty that are valid.

 

7.                                      No Continuing Waiver.  None of the parties hereto shall be deemed to have waived any rights hereunder unless such waiver shall be in writing and signed by such party.  The waiver by any party of any breach of this Guaranty shall not operate or be construed to be a waiver of any subsequent breach.

 

8.                                      Governing Law.  This Guaranty shall be construed and enforced in accordance with the laws of the State of New York without regard to principles of conflicts of laws, and cannot be modified, amended or terminated orally.

 

9.                                      Headings.  All headings in this Guaranty are for convenience of reference only and are not intended to qualify the meaning of any provision of this Guaranty.

 

10.                               Terminology.  All personal pronouns used in this Guaranty, whether used in the masculine, feminine, or neuter gender, shall include all other genders, the singular shall include the plural, and vice versa as the context may require.

 

11.                               Counterparts.  This Guaranty may be executed in several counterparts, each of which shall be deemed to be an original copy, and all of which together shall constitute one agreement binding on all parties hereto, notwithstanding that all the parties shall not have signed the same counterpart.

 

12.                               Payment and Performance Guaranty.  Guarantors hereby agree that this is a guaranty of payment and performance, not collection, and that this Guaranty is an unconditional, irrevocable primary guaranty and may be enforced by the Investor directly against Guarantors without first resorting to or exhausting any other right or remedy.  Guarantors further covenant that this Guaranty shall remain and continue in full force and effect, notwithstanding any assignment, modification, extension, compromise or renewal of the Project Loan Documents, the Sub-CDE Agreement, the Fund Agreement, or any other document associated with the transactions contemplated herein, or the release or exchange of any real or personal property or other collateral security for any of the obligations of the QLICIs, and notwithstanding any amendment or modification of the Project Loan Documents, the Sub-CDE Agreement, the Fund Agreement, or any other document associated with the transactions contemplated herein, and notwithstanding that indulgences or forbearance may be granted under any or all of such documents, all of which may be made, done, or suffered without notice to or further consent of the Guarantors.  Guarantors agree and confirm that their liability hereunder shall not be affected, impaired, or reduced in any way by any action taken under the foregoing

 

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provisions, or any other provisions hereof, or by any delay, failure or refusal of the Investor to exercise any right or remedy it may have against any other Guarantor.  Guarantors agree that this Guaranty, and such Guarantor’s liability hereunder, shall not be affected or impaired by reason of the existence of any indemnity or guaranty of any other party covering the same or similar obligations or by reason of the Investor exercising any rights or remedies against any such other party.  Each Guarantor acknowledges that it is capable of informing itself with respect to NMTC Recapture Events.  It shall not be a condition of the obligations of the Guarantors under this Guaranty that Guarantors have notice of any NMTC Recapture Event.

 

13.                               Joint and Several.  The obligations under the term of this Guaranty are joint and several obligations of the Guarantors.

 

14.                               JURY TRIAL.  THE GUARANTORS HEREBY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING RELATING TO THIS GUARANTY, OR ANY OTHER DOCUMENT DELIVERED HEREUNDER OR IN CONNECTION HEREWITH, OR ANY TRANSACTION ARISING FROM OR CONNECTED TO ANY OF THE FOREGOING.  THE GUARANTORS REPRESENT THAT THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY GIVEN.

 

15.                               ENTIRETY.  THIS GUARANTY EMBODIES THE FINAL, ENTIRE AGREEMENT OF THE GUARANTORS AND THE INVESTOR WITH RESPECT TO THE GUARANTORS’ GUARANTY OF THE INDEMNIFIED MATTERS AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF.  THIS GUARANTY IS INTENDED BY THE GUARANTORS AND THE INVESTOR AS A FINAL AND COMPLETE EXPRESSION OF THE TERMS OF THE GUARANTY, AND NO COURSE OF DEALING BETWEEN ANY GUARANTOR AND THE INVESTOR, NO COURSE OF PERFORMANCE, NO TRADE PRACTICES, AND NO EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE OF ANY NATURE SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS GUARANTY.  THERE ARE NO ORAL AGREEMENTS BETWEEN THE GUARANTORS AND THE INVESTOR.

 

16.                               No Discharge; Successive Actions.  The Guarantors acknowledge that all of their obligations under this Guaranty are primary, absolute, irrevocable and unconditional and that their liability shall not be limited or affected by any release or discharge of any other Guarantor, whether by operation of law or otherwise, or by any other legal or factual matter, unless and until all guarantied obligations have been paid and performed in full, regardless of whether or not notice has then been given to the Guarantors.  The Investor may maintain successive actions for defaults hereunder.  The Investor’s rights hereunder shall not be exhausted by its exercise of any of its rights or remedies or by any such action or by any number of successive actions until and unless

 

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all obligations guarantied hereunder have been irrevocably paid in full.  In amplification, and not in limitation, of the provisions set forth above, the Guarantors hereby waive and agree not to assert or take advantage of:

 

(a)                                  any right to require the Investor to proceed against any other person;

 

(b)                                 the defense of the statute of limitations in any action hereunder or in any action for the collection or the performance of any obligations guaranteed hereby;

 

(c)                                  any defense that may arise by reason of the incapacity, lack of authority, death or disability of any other person or persons or the failure of the Investor to file or enforce a claim against the estate (in administration, bankruptcy or any other proceeding) of any other person or persons;

 

(d)                                 any defense based upon an election of remedies by the Investor, or the right of Guarantors to proceed against the Investor;

 

(e)                                  any duty or obligation on the part of the Investor to protect, not impair, retain or enforce any security for the payment of the obligations guaranteed hereby; and

 

(f)                                    any defense related to receipt or sufficiency of consideration for the Guarantors guaranteeing the obligations under this Guaranty.

 

17.                               Notice.  All notices, demands, requests or other communications to be sent by one party to the other hereunder or required by law shall be in writing and shall be deemed to have been validly given or served by delivery of same in person to the addressee or by depositing same with Federal Express for next Business Day delivery or by depositing same in the United States mail, postage prepaid, registered or certified mail, return receipt requested, addressed as follows:

 

	
If to the Investor:
    	
 
    	
c/o Goldman Sachs Bank USA
    
	
 
    	
 
    	
200 West Street
    
	
 
    	
 
    	
New   York, New York 10282
    
	
 
    	
 
    	
Attn:   Margaret Anadu
    
	
 
    	
 
    	
 
    
	
With   a copy to:
    	
 
    	
Goldman   Sachs Bank USA
    
	
 
    	
 
    	
200   West Street
    
	
 
    	
 
    	
New   York, New York 10282
    
	
 
    	
 
    	
Attn:   Andrea Gift
    
	
 
    	
 
    	
 
    
	
and   another copy to:
    	
 
    	
Jones   Day
    
	
 
    	
 
    	
222   East 41st Street
    
	
 
    	
 
    	
New   York, New York 10017
    
	
 
    	
 
    	
Attn:   Steven C. Koppel, Esq.
    

 

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If   to Guarantors:
    	
 
    	
c/o   RBH Group
    
	
 
    	
 
    	
89   Market Street, 8th Floor
    
	
 
    	
 
    	
Newark,   New Jersey 07102
    
	
 
    	
 
    	
Attn:   Ron Beit-Halachmy
    
	
 
    	
 
    	
 
    
	
with   a copy to:
    	
 
    	
McManimon &   Scotland, LLC
    
	
 
    	
 
    	
1037   Raymond Boulevard, Suite 400
    
	
 
    	
 
    	
Newark,   New Jersey 07102
    
	
 
    	
 
    	
Attn:   Glenn Scotland, Esq.
    

 

18.                               Fees and Costs.  Guarantors agree that, in the event this Guaranty is placed in the hands of an attorney for enforcement following notice of demand for payment as required herein, Guarantors will reimburse the Investor seeking such enforcement for all expenses incurred in enforcing this Guaranty, including, without limitation, reasonable attorneys’ fees and expenses (whether or not suit is brought hereon) and all such expenses incurred in connection with any trial, appeal, arbitration or bankruptcy proceedings.

 

19.                               Interest. All amounts due under this Guaranty which are not timely paid by Guarantors shall bear interest from and after the date due until paid in full, at an annual rate equal to the Target Rate of Return.

 

20.                               Defenses Not Valid; No Offset.  The Guarantors further agree that the validity of this Guaranty and the obligations of the Guarantors hereunder shall in no way be terminated, affected, or impaired (a) by reason of the assertion by the Investor of any rights or remedies under or with respect to the Transaction Documents, or any other instruments executed in connection therewith, against any Person obligated thereunder, (b) by reason of any failure to exercise, or delay in exercising, any such right or remedy or any right or remedy hereunder or in respect to this Guaranty, or (c) by reason of the adjudication in bankruptcy of this Guaranty or any Guarantor or any Person obligated under the Project Loan Documents, or the filing of a petition for any relief under any federal, state, or local bankruptcy law by any Guarantor or any such Person.  No Guarantor shall have the right to offset any of the obligations guaranteed hereunder against any amount otherwise owed or alleged to be owed by the Investor to such Guarantor.

 

21.                               Continuing Guaranty.  It is expressly understood and agreed that this is a primary, continuing guaranty and that the obligations of Guarantors hereunder are and shall be absolute under any and all circumstances, without regard to the validity, regularity or enforceability of the Project Loan Documents, the Fund Agreement, the Sub-CDE Agreement, or any other instruments executed in connection therewith or otherwise in connection with the transactions contemplated herein.  Notwithstanding the foregoing, however, this guaranty shall automatically terminate upon the expiration of the relevant income tax statutes of limitation applicable with respect to the Investor for all taxable years for which NMTCs with respect to the QEIs could be disallowed or recaptured.

 

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22.                               Certain Waivers.  Guarantors hereby waive notice of the acceptance hereof, presentment, demand for payment, protest, notice of protest and any and all notices of nonpayment, non-performance, non-observance, and all other notices of any kind, and other proof, and notice of demand, and Guarantors hereby waive all suretyship defenses and defenses in the nature thereof.

 

23.                               Assignment.  If any or all of the rights and obligations with respect to the Investor’s interest in the Fund (the “Rights and Obligations”) are assigned by the Investor in connection with any assignment of its interest, this Guaranty shall automatically be assigned therewith in whole or in part, as applicable, without the need of any express assignment and when so assigned, the Guarantors shall be bound as set forth herein to each assignee without in any manner affecting the Guarantors’ liability hereunder for any part of the Rights and Obligations retained by the Investor.

 

24.                               Section 3213. Each Guarantor acknowledges and agrees that this Guaranty is and is intended to be, an instrument for the payment of money only, as such phrase is used in Section 3213 of the Civil Practice Law and Rules of the State of New York, and each Guarantor has been fully advised by their counsel of its rights and remedies pursuant to said Section 3213.

 

25.                               Amendments. This Guaranty may be amended only by an instrument in writing executed by the party or an authorized representative of the party against whom such amendment is sought to be enforced.

 

26.                               Recitals. The recital and introductory paragraphs hereof are a part hereof, form a basis for this Guaranty and shall be considered prima  facie evidence of the facts and documents referred to therein.

 

[Signatures contained on following page]

 

15

 

SIGNATURE PAGE

 

GUARANTY OF NEW MARKETS TAX CREDITS

 

IN WITNESS WHEREOF, the Guarantors have caused this Guaranty of New Markets Tax Credits to be duly executed as of the date first above written.

 

	
 
    	
TEACHERS VILLAGE SCHOOL QALICB URBAN RENEWAL, LLC,
    
	
 
    	
a   New Jersey Urban Renewal limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Ron Beit-Halachmy
    
	
 
    	
 
    	
Name:   Ron Beit-Halachmy
    
	
 
    	
 
    	
Title:   Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
RBH-TRB NEWARK HOLDINGS, LLC,
    
	
 
    	
a   New York limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Ron Beit-Halachmy
    
	
 
    	
 
    	
Name:   Ron Beit-Halachmy
    
	
 
    	
 
    	
Title:   Authorized Signatory
    

 

 

EXHIBIT A

 

FINANCIAL PROJECTIONS

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