Document:

Exhibit 10.7(b)

 

One Financial Place

 

PROMISSORY
NOTE B

 

Note Amount:                                                                $25,000,000.00

 

Maturity Date:                                                              The
Payment Date in August, 2011.

 

THIS
PROMISSORY NOTE B (this “Note”), is made as of July 13, 2006 by the
undersigned, as borrower (“Borrower”), in favor of WACHOVIA BANK,
NATIONAL ASSOCIATION and its successors or assigns, as lender (“Lender”).

 

R  E
C  I  T  A  L  S:

 

A.                                   Borrower
is indebted to Lender with respect to a loan (the “Original Loan”)in the
original principal amount of ONE HUNDRED EIGHTY-EIGHT MILLION SIX HUNDRED
THOUSAND AND NO/100 DOLLARS ($188,600,000.00) which is secured by the lien and
security interest created, among other things, by that certain Mortgage,
Security Agreement, Assignment of Rents and Fixture Filing dated as of July 13,
2006, as amended by that certain Modification Agreement dated as of even date
herewith by and between Borrower and Lender (as so amended and as the same may
hereafter be amended, modified or supplemented, the “Security Instrument”)
from Borrower, as borrower, in favor of and for the benefit of Lender, as
lender, as security for the Loan and the other Loan Documents;

 

B.                                     The
Original Loan is evidenced by that certain promissory note in the original
principal sum of $188,600,000 from Borrower to Lender dated as of July 13, 2006
(the “Original Note”);

 

C.                                     The
current outstanding principal balance due under the Original Loan is
$188,600,000;

 

D.                                    Borrower
and Lender have severed the Original Note pursuant to the terms of that certain
note severance agreement between Borrower and Lender dated as of the date
hereof (the “Severance Agreement”) into two (2) separate and distinct
obligations in substitution for the Original Note represented by this Note in
the amount of $25,000,000 and that certain Promissory Note A in the amount of
$163,600,000 (the “Substitute Note A”) and

 

E.                                      Borrower
and Lender intend these Recitals to be a material part of this Note.

 

NOW,
THEREFORE, FOR VALUE RECEIVED, Borrower does hereby covenant and promise to pay
to the order of Lender, without any counterclaim, setoff or deduction
whatsoever, on the Maturity Date (as hereinafter defined), in immediately
available funds, at Commercial Real Estate Services, 8739 Research Drive URP 4,
NC 1075, Charlotte, North Carolina 28262 or at such other place as Lender may
designate to Borrower in writing from time to time, in legal tender of the
United States of America, the Loan B Loan Amount and all other amounts due or
becoming due hereunder, to the extent not previously paid in accordance
herewith, together with all interest accrued and unpaid thereon through the
date Loan B is repaid in full, at the rate of 7.48% per annum (the “Interest
Rate”) to be computed on the

 

 

basis of the actual number of days elapsed in a 360
day year, on so much of the Loan B Loan Amount as is from time to time
outstanding on the first day of the applicable Interest Accrual Period (as
hereinafter defined).

 

SECTION 1                                   DEFINITIONS

 

Defined terms in this Note shall include in the
singular number the plural and in the plural number the singular. All
capitalized terms not otherwise defined herein shall have the meaning ascribed
to them in the Security Instrument.

 

SECTION 2                                   PAYMENTS
AND LOAN TERMS

 

Section 2.1                                      Interest and
Principal Payments.

 

(a)                                  Interest
on the unpaid Principal Amount of Loan B for the first Interest Accrual Period
computed at the Interest Rate shall be payable, without any counterclaim,
setoff or deduction whatsoever, on the First Payment Date, and for each
subsequent Interest Accrual Period on each Payment Date thereafter until this
Note is paid in full on the Maturity Date or otherwise. The entire outstanding
principal balance, to the extent not theretofore paid, together with all
accrued but unpaid interest thereon and any other amounts due hereunder shall
be due and payable on the Payment Date in August, 2011 (the “Maturity Date”).

 

(b)                                 To
the extent any Interest Shortfall shall occur, except as otherwise provided in
Section 3.2 hereof, such Interest Shortfall shall accrue additional interest at
the Interest Rate.

 

(c)                                  To
the extent Payments (as hereinafter defined), other than Payments hereunder due
on a Payment Date, are or become due and payable under this Note or under any
of the other Loan Documents on a day (the “Due Date”) which is not a
Business Day, such Payments are and shall be due and payable on the first
Business Day immediately preceding the Due Date for such Payments. In the event
that any Payment is received after 2:00 p.m. Eastern Time on any day, it shall
be deemed received and paid on the subsequent Business Day.

 

Section 2.2                                      Application of
Payments.

 

(a)                                  Each
and every payment (a “Payment”) made by Borrower to Lender in accordance
with the terms of this Note and/or the terms of any one or more of the other
Loan Documents and all other proceeds received by Lender with respect to the
Debt, shall be applied as follows:

 

(1)                                  Payments
other than Unscheduled Payments shall be applied (i) first, to all Late
Charges, Default Rate Interest or other sums due and payable hereunder or under
the other Loan Documents (other than those sums included in clause (ii) of this
Section 2.2(a)(l)) in such order and priority as determined by Lender in its
sole discretion, (ii) second, to all interest (other than Default Rate
Interest) which shall be due and payable with respect to the Loan B Loan Amount
pursuant to the terms hereof as of the date the Payment is received (including
any Interest Shortfalls and interest thereon to the extent permitted by

 

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applicable law) and (iii) third, on the Maturity Date,
to the Loan B Loan Amount until the Loan B Loan Amount has been paid in full.

 

(2)                                  Unscheduled
Payments shall be applied at the end of the Interest Accrual Period in which
such Unscheduled Payments are received as a principal prepayment of the Loan B
Loan Amount to amortize the Loan B Loan Amount.

 

(b)                                 To
the extent that Borrower makes a Payment or Lender receives any Payment or
proceeds for Borrower’s benefit, which are subsequently invalidated, declared
to be fraudulent or preferential, set aside or required to be repaid to a
trustee, debtor in possession, receiver, custodian or any other party under any
bankruptcy law, common law or equitable cause, then, to such extent, the
obligations of Borrower hereunder intended to be satisfied shall be revived and
continue as if such Payment or proceeds had not been received by Lender.

 

Section 2.3                                      Prepayments.

 

The
Debt may not be prepaid, in whole or in part, except as set forth in Article XV
of the Security Instrument.

 

SECTION 3                                   DEFAULTS

 

Section 3.1                                      Events of
Default.

 

This
Note is secured by, among other things, the Security Instrument which specifies
various Events of Default, upon the happening of which all or portions of the
sums owing under this Note may be declared immediately due and payable as more
specifically provided therein. Each Event of Default under the Security
Instrument or any one or more of the other Loan Documents shall be an Event of
Default hereunder.

 

Section 3.2                                      Remedies.

 

If an
Event of Default shall exist hereunder or under any other Loan Document,
interest on the Principal Amount and, to the extent permitted by applicable
law, all accrued but unpaid interest on the Principal Amount shall, commencing
on the date of the occurrence of such Event of Default, at the option of
Lender, immediately and without notice to Borrower, accrue interest at the
Default Rate until such Event of Default is cured or, if not cured or such cure
is not accepted by Lender, until the repayment of the Debt. The foregoing
provision shall not be construed as a waiver by Lender of its right to pursue
any other remedies available to it under the Security Instrument, or any other
Loan Document, nor shall it be construed to limit in any way the application of
the Default Rate.

 

SECTION 4                                   EXCULPATION

 

Section 4.1                                      Exculpation.

 

Notwithstanding
anything to the contrary contained in this Note or the other Loan Documents,
the obligations of Borrower hereunder shall be non-recourse except with respect
to

 

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the Property, and as otherwise provided in Section
18.32 of the Security Instrument, the terms of which are incorporated herein.

 

SECTION 5                                   MISCELLANEOUS

 

Section 5.1                                      Further
Assurances.

 

Borrower
shall execute and acknowledge (or cause to be executed and acknowledged) and
deliver to Lender all documents, and take all actions, reasonably required by
Lender from time to time to confirm the rights created or now or hereafter
intended to be created under this Note and the other Loan Documents, to protect
and further the validity, priority and enforceability of this Note and the
other Loan Documents, to subject to the Loan Documents any property of Borrower
intended by the terms of any one or more of the Loan Documents to be encumbered
by the Loan Documents, or otherwise carry out the purposes of the Loan
Documents and the transactions contemplated thereunder; provided, however,
that no such further actions, assurances and confirmations shall vary the terms
of or increase Borrower’s obligations under this Note or any of the other Loan
Documents.

 

Section 5.2                                      Modification,
Waiver in Writing.

 

No
modification, amendment, extension, discharge, termination or waiver (a “Modification”)
of any provision of this Note, the Security Instrument or any one or more of
the other Loan Documents, nor consent to any departure by Borrower therefrom,
shall in any event be effective unless the same shall be in a writing signed by
the party against whom enforcement is sought, and then such waiver or consent
shall be effective only in the specific instance, and for the purpose, for
which given. Except as otherwise expressly provided herein, no notice to, or
demand on, Borrower shall entitle Borrower to any other or future notice or
demand in the same, similar or other circumstances. Lender does not hereby
agree to, nor does Lender hereby commit itself to, enter into any Modification.
However, in the event Lender does ever agree to a Modification, such
Modification shall only be upon the terms and conditions set forth in the Security
Instrument.

 

Section 5.3                                      Costs of
Collection.

 

Borrower
agrees to pay all costs and expenses of collection incurred by Lender, in
addition to principal, interest and late or delinquency charges (including,
without limitation, reasonable attorneys’ fees and disbursements), incurred in
connection with the pursuit by Lender of any of its rights or remedies referred
to in Section 3 hereof or its rights or remedies referred to in any of the Loan
Documents or the protection of or realization of collateral or in connection
with any of Lender’s collection efforts, whether or not suit on this Note, on
any of the other Loan Documents or any foreclosure proceeding is filed, and all
such costs and expenses shall be payable on demand, together with interest at
the Default Rate thereon, and also shall be secured by the Security Instrument
and all other collateral at any time held by Lender as security for Borrower’s
obligations to Lender.

 

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Section 5.4                                      Maximum Amount.

 

(a)                                  It
is the intention of Borrower and Lender to conform strictly to the usury and
similar laws relating to interest and the collection of other charges from time
to time in force, and all agreements between Borrower and Lender, whether now
existing or hereafter arising and whether oral or written, are hereby expressly
limited so that in no contingency or event whatsoever, whether by acceleration
of maturity hereof or otherwise, shall the amount paid or agreed to be paid in
the aggregate to Lender as interest or other charges hereunder or under the
other Loan Documents or in any other security agreement given to secure the
Debt, or in any other document evidencing, securing or pertaining to the Debt,
exceed the maximum amount permissible under applicable usury or such other laws
(the “Maximum Amount”). If under any circumstances whatsoever
fulfillment of any provision hereof, or any of the other Loan Documents, at the
time performance of such provision shall be due, shall involve transcending the
Maximum Amount, then ipso facto, the obligation to be fulfilled shall be
reduced to the Maximum Amount. For the purposes of calculating the actual
amount of interest or other charges paid and/or payable hereunder, in respect
of laws pertaining to usury or such other laws, all charges and other sums paid
or agreed to be paid hereunder to the holder hereof for the use, forbearance or
detention of the Debt, outstanding from time to time shall, to the extent
permitted by applicable law, be amortized, prorated, allocated and spread from
the date of disbursement of the proceeds of this Note until payment in full of
all of the Debt, so that the actual rate of interest on account of the Debt is
uniform through the term hereof. The terms and provisions of this Section 5.4
shall control and supersede every other provision of all agreements between
Borrower or any endorser and Lender.

 

(b)                                 If
under any circumstances Lender shall ever receive an amount which would exceed
the Maximum Amount, such amount shall be deemed a payment in reduction of the
Loan B Loan Amount owing hereunder and any other obligation of Borrower in
favor of Lender, and shall be so applied in accordance with Section 2.2 hereof,
or if such excessive interest exceeds the unpaid balance of the Loan B Loan
Amount and any other obligation of Borrower in favor of Lender, the excess
shall be deemed to have been a payment made by mistake and shall be refunded to
Borrower.

 

Section 5.5                                      Waivers.

 

To the
extent permitted by law, and except as expressly provided herein or in any of
the other Loan Documents, Borrower hereby expressly and unconditionally waives
presentment, demand, protest, notice of protest or notice of any kind,
including, without limitation, any notice of intention to accelerate and notice
of acceleration, and, in connection with any suit, action or proceeding brought
by Lender on this Note, any and every right it may have to (a) a trial by jury,
(b) interpose any counterclaim therein (other than a counterclaim which can
only be asserted in the suit, action or proceeding brought by Lender on this
Note and cannot be maintained in a separate action) and (c) have the same
consolidated with any other or separate suit, action or proceeding.

 

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Section 5.6                                      Governing Law.

 

This
Note and the obligations arising hereunder shall be governed by, and construed
in accordance with, the laws of the State of Illinois applicable to contracts
made and performed in such State and any applicable law of the United States of
America.

 

Section 5.7                                      Headings.

 

The
Section headings in this Note are included herein for convenience of reference
only and shall not constitute a part of this Note for any other purpose.

 

Section 5.8                                      Assignment.

 

Lender
shall have the right to transfer, sell and assign this Note, the Security
Instrument and/or any of the other Loan Documents or any interest therein, and
the obligations hereunder, to any Person. All references to “Lender” hereunder
shall be deemed to include the assigns of the Lender.

 

Section 5.9                                      Severability.

 

Wherever
possible, each provision of this Note shall be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Note
shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Note.

 

Section 5.10                                Joint and Several.

 

If
Borrower consists of more than one Person or party, the obligations and
liabilities of each such Person or party hereunder shall be joint and several.

 

Section 5.11                                Substitute Note.

 

This
Note is “Substitute Note B” executed and delivered pursuant to the Severance
Agreement. The principal indebtedness evidenced hereby is a portion of the
principal indebtedness previously evidenced by the Original Note in the
original principal sum of $188,600,000 made by Borrower to Lender.

 

[THE REMAINDER OF
THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

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IN
WITNESS WHEREOF, this Note has been duly executed by the Borrower the day and
year first written above.

 

	
   

  	
  BORROWER:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ONE FINANCIAL PLACE PROPERTY LLC,

  	
   

  
	
   

  	
  a Delaware limited liability company

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BCSP IV Illinois Manager LLC,

  
	
   

  	
   

  	
  a Delaware limited liability company,

  
	
   

  	
   

  	
  its manager

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  BCSP IV U.S. Investments, L.P.,

  
	
   

  	
   

  	
  a Delaware limited partnership,

  
	
   

  	
   

  	
  its sole member

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  BCSP REIT IV, Inc.,

  
	
   

  	
   

  	
  a Maryland corporation,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:
  Nancy J. Broderick

  
	
   

  	
   

  	
  Title:
  Managing DirectorExhibit 10.8

 

GUARANTY OF RECOURSE OBLIGATIONS

 

This GUARANTY  OF RECOURSE OBLIGATIONS (this “Guaranty”)
is executed as of January 30, 2006, by BEACON
CAPITAL STRATEGIC PARTNERS IV, L.P., a Delaware limited partnership (whether
one or more collectively referred to as “Guarantor”),
for the benefit of LEHMAN BROTHERS BANK FSB,
a federal stock savings bank having an address at 399 Park Avenue, 8th
Floor, New York, New York 10022 (“Lender”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to that
certain Promissory Note dated of even date herewith, executed by 200 SOUTH WACKER PROPERTY LLC, a Delaware limited liability
company (“Borrower”) and payable to the order of Lender
in the principal amount of Ninety-Five Million Five Hundred Thousand and No/100
Dollars ($95,500,000.00) (together with all renewals, modifications, increases
and extensions thereof, the “Note”),
Borrower has become indebted, and may from time to time be further indebted, to
Lender with respect to a loan (the “Loan”)
which is made pursuant to that certain Loan Agreement, dated of even date
herewith, between Borrower and Lender (the “Loan
Agreement”);

 

WHEREAS, Lender is not willing
to make the Loan, or otherwise extend credit, to Borrower unless Guarantor
unconditionally guarantees payment and performance to Lender of the Guaranteed
Obligations (as herein defined); and

 

WHEREAS, Guarantor is the owner
of a direct or indirect interest in Borrower, and Guarantor will directly
benefit from Lender’s making the Loan to Borrower.

 

NOW, THEREFORE, as an inducement
to Lender to make the Loan to Borrower and to extend such additional credit as
Lender may from time to time agree to extend under the Loan Documents, and for
other good and valuable consideration, the receipt and legal sufficiency of
which are hereby acknowledged, the parties do hereby agree as follows:

 

ARTICLE I

 

NATURE AND SCOPE OF
GUARANTY

 

1.1                               Guaranty
of Obligation. Guarantor (but not its members, partners, employees,
shareholders, agents, directors or officers) hereby irrevocably and unconditionally
guarantees to Lender and its successors and assigns the payment and performance
of the Guaranteed Obligations as and when the same shall be due and payable,
whether by lapse of time, by acceleration of maturity or otherwise. Guarantor
(but not its members, partners, employees, shareholders, agents, directors or
officers) hereby irrevocably and unconditionally covenants and agrees that it
is liable for the Guaranteed Obligations as a primary obligor.

 

 

1.2                               Definition
of Guaranteed Obligations. As used herein, the term “Guaranteed Obligations” means the
obligations or liabilities of Borrower to Lender for which Borrower shall be
personally liable under the provisions of Section 11.22 of the Loan
Agreement (other than (A) the events described in subsection (c) thereof
with respect to environmental matters and (B) subsection (h) thereof).

 

1.3                               Nature
of Guaranty. This Guaranty is an irrevocable, absolute, continuing
guaranty of payment and performance and not a guaranty of collection. This
Guaranty may not be revoked by Guarantor and shall continue to be effective
with respect to any Guaranteed Obligations arising or created after any
attempted revocation by Guarantor and after (if Guarantor is a natural person)
Guarantor’s death (in which event this Guaranty shall be binding upon Guarantor’s
estate and Guarantor’s legal representatives and heirs). The fact that at any
time or from time to time the Guaranteed Obligations may be increased or
reduced shall not release or discharge the obligation of Guarantor to Lender
with respect to the Guaranteed Obligations. This Guaranty may be enforced by
Lender and any subsequent holder of the Note and shall not be discharged by the
assignment or negotiation of all or part of the Note.

 

1.4                               Guaranteed
Obligations Not Reduced by Offset. The Guaranteed Obligations and the
liabilities and obligations of Guarantor to Lender hereunder shall not be
reduced, discharged or released because or by reason of any existing or future
offset, claim or defense of Borrower or any other party against Lender or
against payment of the Guaranteed Obligations, whether such offset, claim or
defense arises in connection with the Guaranteed Obligations (or the
transactions creating the Guaranteed Obligations) or otherwise.

 

1.5                               Payment
By Guarantor. If all or any part of the Guaranteed Obligations shall
not be punctually paid when due (beyond any and all notice, grace or cure
periods), whether at demand, maturity, acceleration or otherwise, Guarantor
shall, within five (5) Business Days of demand by Lender and without
presentment, protest, notice of protest, notice of non-payment, notice of
intention to accelerate the maturity, notice of acceleration of the maturity or
any other notice whatsoever, pay in lawful money of the United States of
America, the amount due on the Guaranteed Obligations to Lender at Lender’s
address as set forth herein. Such demand(s) may be made at any time coincident
with or after the time for payment of all or part of the Guaranteed Obligations
and may be made from time to time with respect to the same or different items
of Guaranteed Obligations. Such demand shall be deemed made, given and received
in accordance with the notice provisions hereof.

 

1.6                               No
Duty To Pursue Others. It shall not be necessary for Lender (and Guarantor
hereby waives any rights which Guarantor may have to require Lender), in order
to enforce the obligations of Guarantor hereunder, first to (i) institute
suit or exhaust its remedies against Borrower or others liable on the Loan or
the Guaranteed Obligations or any other person, (ii) enforce Lender’s
rights against any collateral which shall ever have been given to secure the
Loan, (iii) enforce Lender’s rights against any other guarantors of the
Guaranteed Obligations, (iv) join Borrower or any others liable on the
Guaranteed Obligations in any action seeking to enforce this Guaranty, (v) exhaust
any remedies available to Lender against any collateral which shall ever have
been given to secure the Loan, or (vi) resort to any other means of
obtaining payment of the Guaranteed Obligations. Lender shall not be required
to mitigate damages or take any other action to reduce, collect or enforce the
Guaranteed Obligations.

 

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1.7                               Waivers.
Guarantor agrees to the provisions of the Loan Documents and hereby waives
notice of (i) any loans or advances made by Lender to Borrower, (ii) acceptance
of this Guaranty, (iii) any amendment or extension of the Note, the
Mortgage, the Loan Agreement or of any other Loan Documents, (iv) the
execution and delivery by Borrower and Lender of any other loan or credit
agreement or of Borrower’s execution and delivery of any promissory notes or
other documents arising under the Loan Documents or in connection with the
Property, (v) the occurrence of any breach by Borrower or an Event of
Default, (vi) Lender’s transfer or disposition of the Guaranteed
Obligations, or any part thereof, (vii) sale or foreclosure (or posting or
advertising for sale or foreclosure) of any collateral for the Guaranteed
Obligations, (viii) protest, proof of non-payment or default by Borrower,
or (ix) any other action at any time taken or omitted by Lender and,
generally, all demands and notices of every kind (other that those specifically
required hereunder) in connection with this Guaranty, the Loan Documents, any
documents or agreements evidencing, securing or relating to any of the
Guaranteed Obligations and the obligations hereby guaranteed.

 

1.8                               Payment
of Expenses. In the event that Guarantor should breach or fail to
timely perform any provisions of this Guaranty, Guarantor shall, immediately
upon demand by Lender, pay Lender all costs and expenses (including court costs
and reasonable attorneys’ fees) incurred by Lender in the enforcement hereof or
the preservation of Lender’s rights hereunder. The covenant contained in this Section shall
survive the payment and performance of the Guaranteed Obligations.

 

1.9                               Effect
of Bankruptcy. In the event that pursuant to any insolvency,
bankruptcy, reorganization, receivership or other debtor relief law or any
judgment, order or decision thereunder, Lender must rescind or restore any
payment or any part thereof received by Lender in satisfaction of the
Guaranteed Obligations, any prior release or discharge from the terms of this
Guaranty given to Guarantor by Lender shall be without effect and this Guaranty
shall remain in full force and effect. It is the intention of Borrower and
Guarantor that Guarantor’s obligations hereunder shall not be discharged except
by Guarantor’s performance of such obligations and then only to the extent of
such performance.

 

1.10                        Waiver
of Subrogation, Reimbursement and Contribution. Notwithstanding
anything to the contrary contained in this Guaranty, until the Debt is paid in
full, Guarantor hereby unconditionally and irrevocably waives, releases and
abrogates any and all rights it may now or hereafter have under any agreement,
at law or in equity (including, without limitation, any law subrogating the
Guarantor to the rights of Lender), to assert any claim against or seek
contribution, indemnification or any other form of reimbursement from Borrower
or any collateral for any or all of the Guaranteed Obligations for any payment
made by Guarantor under or in connection with this Guaranty or otherwise.

 

1.11                        Borrower.
The term “Borrower” as used herein shall
include any new or successor corporation, association, partnership (general or
limited), limited liability company joint venture, trust or other individual or
organization formed as a result of any merger, reorganization, sale, transfer,
devise, gift or bequest of Borrower or any interest in Borrower.

 

3

 

ARTICLE II

 

EVENTS AND CIRCUMSTANCES NOT REDUCING

OR DISCHARGING GUARANTOR’S OBLIGATIONS

 

Guarantor hereby consents and agrees to each of the
following and agrees that Guarantor’s obligations under this Guaranty shall not
be released, diminished, impaired, reduced or adversely affected by any of the
following and waives any common law, equitable, statutory or other rights
(including without limitation rights to notice) which Guarantor might otherwise
have as a result of or in connection with any of the following:

 

2.1                               Modifications.
Any renewal, extension, increase, modification, alteration or rearrangement
of the Note, the Mortgage, the Loan Agreement, the other Loan Documents or any
other document, instrument, contract or understanding between Borrower and
Lender or any other parties pertaining to the Loan or any failure of Lender to
notify Guarantor of any such action.

 

2.2                               Adjustment.
Any adjustment, indulgence, forbearance or compromise that might be granted
or given by Lender to Borrower or any Guarantor.

 

2.3                               Condition
of Borrower or Guarantor. The insolvency, bankruptcy, arrangement, adjustment,
composition, liquidation, disability, dissolution or lack of power of Borrower,
Guarantor or any other party at any time liable for the payment of all or part
of the Guaranteed Obligations; or any dissolution of Borrower or Guarantor or
any sale, lease or transfer of any or all of the assets of Borrower or
Guarantor or any changes in the shareholders, partners or members of Borrower
or Guarantor; or any reorganization of Borrower or Guarantor.

 

2.4                               Invalidity
of Guaranteed Obligations. The invalidity, illegality or
unenforceability of all or any part of the Guaranteed Obligations or any
document or agreement executed in connection with the Guaranteed Obligations
for any reason whatsoever, including without limitation the fact that (i) the
Guaranteed Obligations or any part thereof exceeds the amount permitted by law,
(ii) the act of creating the Guaranteed Obligations or any part thereof is
ultra  vires, (iii) the officers or representatives executing
the Note, the Mortgage, the Loan Agreement or the other Loan Documents or
otherwise creating the Guaranteed Obligations acted in excess of their
authority, (iv) the Guaranteed Obligations violate applicable usury laws, (v) the
Borrower has valid defenses, claims or offsets (whether at law, in equity or by
agreement) which render the Guaranteed Obligations wholly or partially
uncollectible from Borrower, (vi) the creation, performance or repayment
of the Guaranteed Obligations (or the execution, delivery and performance of
any document or instrument representing part of the Guaranteed Obligations or
executed in connection with the Guaranteed Obligations or given to secure the
repayment of the Guaranteed Obligations) is illegal, uncollectible or
unenforceable, or (vii) the Note, the Mortgage, the Loan Agreement or any
of the other Loan Documents have been forged or otherwise are irregular or not
genuine or authentic, it being agreed that Guarantor shall remain liable hereon
regardless of whether Borrower or any other person be found not liable on the
Guaranteed Obligations or any part thereof for any reason.

 

4

 

2.5                               Release
of Obligors. Any full or partial release of the liability of Borrower
on the Guaranteed Obligations or any part thereof, or of any co-guarantors, or
any other Person now or hereafter liable, whether directly or indirectly,
jointly, severally, or jointly and severally, to pay, perform, guarantee or
assure the payment of the Guaranteed Obligations, or any part thereof, it being
recognized, acknowledged and agreed by Guarantor that Guarantor may be required
to pay the Guaranteed Obligations in full without assistance or support of any
other party, and Guarantor has not been induced to enter into this Guaranty on
the basis of a contemplation, belief, understanding or agreement that other
parties will be liable to pay or perform the Guaranteed Obligations, or that
Lender will look to other parties to pay or perform the Guaranteed Obligations.

 

2.6                               Other
Collateral. The taking or accepting of any other security, collateral
or guaranty, or other assurance of payment, for all or any part of the
Guaranteed Obligations.

 

2.7                               Release
of Collateral. Any release, surrender, exchange, subordination,
deterioration, waste, loss or impairment (including without limitation
negligent, willful, unreasonable or unjustifiable impairment) of any
collateral, property or security at any time existing in connection with, or
assuring or securing payment of, all or any part of the Guaranteed Obligations.

 

2.8                               Care
and Diligence. The failure of Lender or any other party to exercise
diligence or reasonable care in the preservation, protection, enforcement, sale
or other handling or treatment of all or any part of any collateral, property
or security, including but not limited to any neglect, delay, omission, failure
or refusal of Lender (i) to take or prosecute any action for the
collection of any of the Guaranteed Obligations or (ii) to foreclose, or
initiate any action to foreclose, or, once commenced, prosecute to completion
any action to foreclose upon any security therefor, or (iii) to take or
prosecute any action in connection with any instrument or agreement evidencing
or securing all or any part of the Guaranteed Obligations.

 

2.9                               Unenforceability.
The fact that any collateral, security, security interest or lien
contemplated or intended to be given, created or granted as security for the
repayment of the Guaranteed Obligations, or any part thereof, shall not be
properly perfected or created, or shall prove to be unenforceable or
subordinate to any other security interest or lien, it being recognized and
agreed by Guarantor that Guarantor is not entering into this Guaranty in
reliance on, or in contemplation of the benefits of, the validity,
enforceability, collectibility or value of any of the collateral for the
Guaranteed Obligations.

 

2.10                        Offset.           The Note, the
Guaranteed Obligations and the liabilities and obligations of the Guarantor to
Lender hereunder shall not be reduced, discharged or released because of or by
reason of any existing or future right of offset, claim or defense of Borrower
against Lender, or any other party, or against payment of the Guaranteed
Obligations, whether such right of offset, claim or defense arises in
connection with the Guaranteed Obligations (or the transactions creating the
Guaranteed Obligations) or otherwise.

 

2.11                        Merger.
The reorganization, merger or consolidation of Borrower into or with any
other Person.

 

5

 

2.12                        Preference.
Any payment by Borrower to Lender is held to constitute a preference under
bankruptcy laws or for any reason Lender is required to refund such payment or
pay such amount to Borrower or someone else.

 

2.13                        Other
Actions Taken or Omitted. Any other action taken or omitted to be taken
with respect to the Loan Documents, the Guaranteed Obligations, or the security
and collateral therefor, whether or not such action or omission prejudices
Guarantor or increases the likelihood that Guarantor will be required to pay
the Guaranteed Obligations pursuant to the terms hereof, it is the unambiguous
and unequivocal intention of Guarantor that Guarantor shall be obligated to pay
the Guaranteed Obligations when due, notwithstanding any occurrence,
circumstance, event, action, or omission whatsoever, whether contemplated or
uncontemplated, and whether or not otherwise or particularly described herein,
which obligation shall be deemed satisfied only upon the full and final payment
and satisfaction of the Guaranteed Obligations.

 

ARTICLE III

 

REPRESENTATIONS AND
WARRANTIES

 

To induce Lender to enter into the Loan Documents and
extend credit to Borrower, Guarantor represents and warrants to Lender as
follows:

 

3.1                               Benefit.
Guarantor is an Affiliate of Borrower, is the owner of a direct or indirect
interest in Borrower, and has received, or will receive, direct or indirect
benefit from the making of this Guaranty with respect to the Guaranteed
Obligations.

 

3.2                               Familiarity
and Reliance. Guarantor is familiar with, and has independently reviewed
books and records regarding, the financial condition of the Borrower and is
familiar with the value of any and all collateral intended to be created as
security for the payment of the Note or Guaranteed Obligations; however,
Guarantor is not relying on such financial condition or the collateral as an
inducement to enter into this Guaranty.

 

3.3                               No
Representation By Lender. Neither Lender nor any other party has made
any representation, warranty or statement to Guarantor in order to induce the
Guarantor to execute this Guaranty.

 

3.4                               Guarantor’s
Financial Condition. As of the date hereof, and after giving effect to
this Guaranty and the contingent obligation evidenced hereby, Guarantor is and
will be solvent and has and will have assets which, fairly valued, exceed its
obligations, liabilities (including contingent liabilities) and debts, and has
and will have property and assets sufficient to satisfy and repay its
obligations and liabilities.

 

3.5                               Legality.
The execution, delivery and performance by Guarantor of this Guaranty and
the consummation of the transactions contemplated hereunder do not and will not
contravene or conflict with any law, statute or regulation whatsoever to which
Guarantor is subject or constitute a default (or an event which with notice or
lapse of time or both would constitute a default) under, or result in the
breach of, any indenture, mortgage, charge, lien, or any contract, agreement or
other instrument to which Guarantor is a party or which may be 

 

6

 

applicable to Guarantor. This Guaranty is a legal and binding
obligation of Guarantor and is enforceable in accordance with its terms, except
as limited by bankruptcy, insolvency or other laws of general application
relating to the enforcement of creditors’ rights.

 

3.6                               Survival.
All representations and warranties made by Guarantor herein shall survive
the execution hereof.

 

ARTICLE IV

 

SUBORDINATION OF CERTAIN
INDEBTEDNESS

 

4.1                               Subordination
of All Guarantor Claims. As used herein, the term “Guarantor
Claims” shall mean all debts and liabilities of Borrower to
Guarantor, whether such debts and liabilities now exist or are hereafter
incurred or arise, or whether the obligations of Borrower thereon be direct,
contingent, primary, secondary, several, joint and several, or otherwise, and
irrespective of whether such debts or liabilities be evidenced by note,
contract, open account, or otherwise, and irrespective of the person or persons
in whose favor such debts or liabilities may, at their inception, have been, or
may hereafter be created, or the manner in which they have been or may
hereafter be acquired by Guarantor. The Guarantor Claims shall include without
limitation all rights and claims of Guarantor against Borrower (arising as a
result of subrogation or otherwise) as a result of Guarantor’s payment of all
or a portion of the Guaranteed Obligations. After the occurrence and during the
continuance of an Event of Default or the occurrence and during the continuance
of a payment default which would, with the giving of notice or the passage of
time, or both, constitute an Event of Default, Guarantor shall not receive or
collect, directly or indirectly, from Borrower any amount upon the Guarantor
Claims.

 

4.2                               Claims
in Bankruptcy. In the event of receivership, bankruptcy,
reorganization, arrangement, debtor’s relief, or other insolvency proceedings
involving Guarantor as debtor, Lender shall have the right to prove its claim
in any such proceeding so as to establish its rights hereunder and receive
directly from the receiver, trustee or other court custodian dividends and
payments which would otherwise be payable upon Guarantor Claims. Guarantor
hereby assigns such dividends and payments to Lender. Should Lender receive,
for application against the Guaranteed Obligations, any dividend or payment
which is otherwise payable to Guarantor and which, as between Borrower and
Guarantor, shall constitute a credit against the Guarantor Claims, then, upon
payment to Lender in full of the Guaranteed Obligations, Guarantor shall become
subrogated to the rights of Lender to the extent that such payments to Lender
on the Guarantor Claims have contributed toward the liquidation of the
Guaranteed Obligations, and such subrogation shall be with respect to that proportion
of the Guaranteed Obligations which would have been unpaid if Lender had not
received dividends or payments upon the Guarantor Claims.

 

4.3                               Payments
Held in Trust. In the event that, notwithstanding anything to the
contrary in this Guaranty, Guarantor should receive any funds, payment, claim
or distribution which is prohibited by this Guaranty, Guarantor agrees to hold
in trust for Lender an amount equal to the amount of all funds, payments,
claims or distributions so received, and agrees that it shall have absolutely
no dominion over the amount of such funds, payments, claims or 

 

7

 

distributions so received except to pay them promptly to Lender, and
Guarantor covenants promptly to pay the same to Lender.

 

4.4                               Liens
Subordinate. Guarantor agrees that any liens, security interests,
judgment liens, charges or other encumbrances upon Borrower’s assets securing
payment of the Guarantor Claims shall be and remain inferior and subordinate to
any liens, security interests, judgment liens, charges or other encumbrances
upon Borrower’s assets securing payment of the Guaranteed Obligations,
regardless of whether such encumbrances in favor of Guarantor or Lender
presently exist or are hereafter created or attach. Without the prior written
consent of Lender, Guarantor shall not (i) exercise or enforce any
creditor’s right it may have against Borrower, or (ii) foreclose,
repossess, sequester or otherwise take steps or institute any action or
proceedings (judicial or otherwise, including without limitation the
commencement of, or joinder in, any liquidation, bankruptcy, rearrangement,
debtor’s relief or insolvency proceeding) to enforce any liens, mortgage, deeds
of trust, security interests, collateral rights, judgments or other
encumbrances on assets of Borrower held by Guarantor.

 

ARTICLE V

 

MISCELLANEOUS

 

5.1                               Waiver.
No failure to exercise, and no delay in exercising, on the part of Lender,
any right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise thereof preclude any other or further exercise thereof or the
exercise of any other right. The rights of Lender hereunder shall be in
addition to all other rights provided by law. No modification or waiver of any
provision of this Guaranty, nor consent to departure therefrom, shall be
effective unless in writing and no such consent or waiver shall extend beyond
the particular case and purpose involved. No notice or demand given in any case
shall constitute a waiver of the right to take other action in the same,
similar or other instances without such notice or demand.

 

5.2                               Notices.    All notices given hereunder
shall be in writing and shall be either hand delivered or mailed, by registered
or certified U.S. mail, Return Receipt Requested, first class postage prepaid,
to the parties at their respective addresses below or at such other address for
any party as such party may designate by notice to the other parties hereto:

 

	
  If to Lender:

  	
  Lehman Brothers
  Bank FSB

  1000 West Street, Suite 200

  Wilmington, Delaware 19801

  Attention: Charles Manna

  Facsimile No. (646) 758-4071

  
	
   

  	
   

  
	
  with a copy to:

  	
  Lehman Brothers
  Holdings Inc.

  399 Park Avenue, 8th Floor

  New York, New York 10022

  Attention: Charles Manna

  Facsimile No. (646) 758-4071

  

 

8

 

	
  with a copy to:

  	
  Cadwalader, Wickersham & Taft LLP

  One World Financial Center

  New York, New York 10281

  Attention: Fredric L. Altschuler, Esq.

  Facsimile No. (212) 504-6666

  
	
   

  	
   

  
	
  If to Guarantor:

  	
  Beacon Capital
  Strategic Partners IV, L.P.

  c/o Beacon Capital Partners, LLC

  One Federal Street

  Boston, Massachusetts 02110

  Attention: General Counsel

  Facsimile No. (617) 457-0499

  
	
   

  	
   

  
	
  with a copy to:

  	
  Goulston &
  Storrs

  400 Atlantic Avenue

  Boston, Massachusetts 02110

  Attention: Robert J. Mack, Esq.

  Facsimile No. (617) 574-6595

  

 

5.3                               Governing
Law. This Guaranty shall be governed by and construed in accordance
with the laws of the State of New York and the applicable laws of the United
States of America. Any legal suit, action or proceeding against Lender or
Guarantor arising out of or relating to this Guaranty may at Lender’s option be
instituted in any Federal or State court in the City of New York, County of New
York, pursuant to Section 5-1402 of the New York General Obligations Law
and Guarantor waives any objections which it may now or hereafter have based on
venue and/or forum non conveniens of any such suit, action or proceeding, and
Guarantor hereby irrevocably submits to the jurisdiction of any such court in
any suit, action or proceeding. Guarantor does hereby designate and appoint:

 

GOULSTON & STORRS,
PC

750 THIRD AVENUE, 22ND FLOOR

NEW YORK, NEW YORK 10017

 

as its authorized agent to accept and acknowledge on
its behalf service of any and all process which may be served in any such suit,
action or proceeding in any Federal or State court in New York, New York, and
agrees that service of process upon said agent at said address and written
notice of said service mailed or delivered to Guarantor in the manner provided
herein shall be deemed in every respect effective service of process upon
Guarantor in any such suit, action or proceeding in the State of New York.

 

5.4                               Invalid
Provisions. If any provision of this Guaranty is held to be illegal,
invalid, or unenforceable under present or future laws effective during the
term of this Guaranty, such provision shall be fully severable and this
Guaranty shall be construed and enforced as if such illegal, invalid or
unenforceable provision had never comprised a part of this Guaranty, and the remaining
provisions of this Guaranty shall remain in full force and effect and shall not
be affected by the illegal, invalid or unenforceable provision or by its
severance from this Guaranty, 

 

9

 

unless such continued effectiveness of this Guaranty, as modified,
would be contrary to the basic understandings and intentions of the parties as
expressed herein.

 

5.5                               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.

 

5.6                               Parties
Bound; Assignment; Joint and Several. This Guaranty shall be binding
upon and inure to the benefit of the parties hereto and their respective successors,
assigns and legal representatives; provided, however, that Guarantor may not,
without the prior written consent of Lender, assign any of its rights, powers,
duties or obligations hereunder. If Guarantor consists of more than one person
or party, the obligations and liabilities of each such person or party shall be
joint and several.

 

5.7                               Headings.
Section headings are for convenience of reference only and shall in no
way affect the interpretation of this Guaranty.

 

5.8                               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.

 

5.9                               Counterparts.
To facilitate execution, this Guaranty may be executed in as many counterparts
as may be convenient or required. It shall not be necessary that the signature
of, or on behalf of, each party, or that the signature of all persons required
to bind any party, appear on each counterpart. All counterparts shall
collectively constitute a single instrument. It shall not be necessary in
making proof of this Guaranty to produce or account for more than a single
counterpart containing the respective signatures of, or on behalf of, each of
the parties hereto. Any signature page to any counterpart may be detached
from such counterpart without impairing the legal effect of the signatures
thereon and thereafter attached to another counterpart identical thereto except
having attached to it additional signature pages.

 

5.10                        Rights
and Remedies. If Guarantor becomes liable for any indebtedness owing by
Borrower to Lender, by endorsement or otherwise, other than under this
Guaranty, such liability shall not be in any manner impaired or affected hereby
and the rights of Lender hereunder shall be cumulative of any and all other
rights that Lender may ever have against Guarantor. The exercise by Lender of
any right or remedy hereunder or under any other instrument, or at law or in
equity, shall not preclude the concurrent or subsequent exercise of any other
right or remedy.

 

5.11                        Other
Defined Terms. Any capitalized term utilized herein shall have the
meaning as specified in the Loan Agreement, unless such term is otherwise
specifically defined herein.

 

5.12                        Entirety.
THIS GUARANTY EMBODIES THE FINAL, ENTIRE AGREEMENT OF GUARANTOR AND LENDER WITH
RESPECT TO GUARANTOR’S GUARANTY OF THE GUARANTEED OBLIGATIONS AND SUPERSEDES
ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS,
WHETHER WRITTEN OR ORAL, 

 

10

 

RELATING TO THE SUBJECT MATTER HEREOF. THIS
GUARANTY IS INTENDED BY GUARANTOR AND LENDER AS A FINAL AND COMPLETE EXPRESSION
OF THE TERMS OF THE GUARANTY, AND NO COURSE OF DEALING BETWEEN GUARANTOR AND
LENDER, 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 AGREEMENT. THERE ARE NO ORAL AGREEMENTS BETWEEN
GUARANTOR AND LENDER.

 

5.13                        Waiver
of Right To Trial By Jury. GUARANTOR AND LENDER HEREBY AGREE NOT TO ELECT A
TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO
TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER
EXIST WITH REGARD TO THIS GUARANTY, THE NOTE, THE MORTGAGE, THE LOAN AGREEMENT,
OR THE OTHER LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING
IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN
KNOWINGLY AND VOLUNTARILY BY GUARANTOR AND LENDER, AND IS INTENDED TO ENCOMPASS
INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY
JURY WOULD OTHERWISE ACCRUE. GUARANTOR AND LENDER ARE HEREBY AUTHORIZED TO FILE
A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS
WAIVER BY GUARANTOR AND LENDER.

 

5.14                        Cooperation.
Guarantor acknowledges that Lender and its successors and assigns may (i) sell
this Guaranty, the Note and other Loan Documents to one or more investors as a
whole loan, (ii) participate the Loan secured by this Guaranty to one or
more investors, (iii) deposit this Guaranty, the Note and other Loan
Documents with a trust, which trust may sell certificates to investors
evidencing an ownership interest in the trust assets, or (iv) otherwise
sell the Loan or interest therein to investors (the transactions referred to in
clauses (i) through (iv) are hereinafter each referred to as “Secondary Market Transaction”). Guarantor
shall reasonably cooperate with Lender in effecting any such Secondary Market
Transaction and shall reasonably cooperate to satisfy the market standards to
which Lender customarily adheres or which may be reasonably required in the
marketplace or by the Rating Agencies in connection with any Secondary Market
Transaction. Guarantor shall provide such information and documents relating to
Guarantor as Lender may reasonably request in connection with such Secondary
Market Transaction. In addition, Guarantor shall make available to Lender all
information concerning its business and operations that Lender may reasonably
request, provided that, other than with respect to any financial statements of
Guarantor, Lender shall keep confidential any information that Guarantor deems
in good faith to be of a confidential nature. Lender shall be permitted to
share all such information with the investment banking firms, Rating Agencies,
accounting firms, law firms and other third-party advisory firms involved with
the Loan and the Loan Documents or the applicable Secondary Market Transaction.
It is understood that the information provided by Guarantor to Lender may
ultimately be incorporated into the offering documents for the Secondary Market
Transaction and thus various investors may also see some 

 

11

 

or all of the information. Lender and all of the aforesaid third-party
advisors and professional firms shall be entitled to rely on the information
supplied by, or on behalf of, Guarantor in the form as provided by Guarantor,
provided, however, Guarantor shall not be liable for any false information or
failure to disclose a material fact unless such disclosure or failure to
disclose was fraudulent or grossly negligent. Lender may publicize the existence
of the Loan in connection with its marketing for a Secondary Market Transaction
or otherwise as part of its business development. Lender shall reimburse
Guarantor for all reasonable third party fees (including reasonable fees and
disbursements of Guarantor’s attorneys) actually incurred by Guarantor pursuant
to this Section 5.14.

 

5.15                        Reinstatement
in Certain Circumstances. If at any time any payment on account of any
Guaranteed Obligation is rescinded or must be otherwise restored or returned
upon the insolvency, bankruptcy or reorganization of the Borrower or otherwise,
the Guarantor’s obligations hereunder with respect to such payment shall be
reinstated as though such payment has been due but not made at such time.

 

[NO FURTHER TEXT ON THIS PAGE]

 

12

 

EXECUTED as of the day and year first above written.

 

	
  GUARANTOR:

  
	
   

  
	
  BEACON CAPITAL
  STRATEGIC PARTNERS IV, L.P.,

  
	
  a Delaware limited
  partnership,

  
	
   

  
	
  By:

  	
  BCP Strategic Partners
  IV, L.P., a Delaware limited

  partnership, its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BCP Strategic IV GP,
  LLC, a Delaware limited

  liability company, its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Beacon Capital
  Partners, LLC, a Delaware

  limited liability company, its Sole Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

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