Document:

Exhibit 10.3

 

NON-RECOURSE CARVE OUT GUARANTY

 

THIS NONRECOURSE CARVE OUT GUARANTY (this “Guaranty”) dated as of July 31, 2014, executed and delivered by NEWREAL, INC., a Massachusetts corporation (the “Guarantor”) in favor of (a) KEYBANK NATIONAL ASSOCIATION, in its capacity as Administrative Agent (the “Agent”) for the Lenders under that certain Credit Agreement dated as of even date herewith, by and among NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP, a Massachusetts limited partnership (the “Borrower”), the financial institutions party thereto and their assignees in accordance therewith (the “Lenders”), and the Agent (as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with its terms, the “Credit Agreement”) and (b) the Lenders. Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Credit Agreement.

 

WHEREAS, pursuant to the Credit Agreement, the Lenders have made available to the Borrower certain financial accommodations on the terms and conditions set forth in the Credit Agreement;

 

WHEREAS, the Guarantor acknowledges that it will receive direct and indirect benefits from the Agent and the Lenders making such financial accommodations available to Borrower under the Credit Agreement and, accordingly, the Guarantor is willing to guarantee the Loan Parties’ obligations to the Agent and the Lenders on the terms and conditions contained herein; and

 

WHEREAS, the Guarantor’s execution and delivery of this Guaranty is one of the conditions precedent to the Agent and the Lenders making the Loan to Borrower.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Guarantor, the Guarantor agrees as follows:

 

Section 1. Guaranty. The Guarantor hereby absolutely and unconditionally guaranties the due and punctual payment and performance of all of the following when due (collectively referred to as the “Obligations”):

 

A.            Guaranty Event; Resulting Obligations. Any loss, damage or liability actually paid or incurred by Agent or the Lenders, to the extent the same arises as a direct result of any of the following which occurs with the knowledge, consent or approval of the Guarantor or any officer, director or employee of the Guarantor (hereinafter, a “Guaranty Event”):

 

(i)                                     Fraud by any Loan Party in connection with the Collateral, the making of the Loan, or any certificates or documents provided in connection therewith;

 

(ii)                                  Material misrepresentation or intentional breach of warranty by any Loan Party in connection with the development or operation of the Collateral, the making of the Loan, or any certificates or documents provided in connection therewith, which misrepresentation or breach of warranty constitutes common law fraud or legal fraud, fraud, deceit or fraudulent deceit under the applicable laws of the Commonwealth of

 

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Massachusetts (“Massachusetts Law”);

 

(iii)                               Material misrepresentation or intentional breach of warranty by Borrower or any Subsidiary of Borrower which was known by the Guarantor to be materially false when made, in connection with the development or operation of the Collateral, the making of the Loan, or any certificates or documents provided in connection therewith, which misrepresentation or breach of warranty constitutes common law fraud or legal fraud, fraud, deceit or fraudulent deceit under Massachusetts Law;

 

(iv)                              Retention by any Loan Party of any income arising with respect to the Collateral that is in the possession or under the control of Borrower or any Subsidiary of Borrower at the time of, or are received after, the occurrence of any Potential Default which, under the terms of the Loan Documents, should have been paid to the Agent or the Lenders;

 

(v)                                 The material breach by any Loan Party of the provisions limiting Restricted Payments, distributions or cash flow from any Collateral as set forth the Credit Agreement

 

B.                                    Trigger Event; Resulting Obligations. Upon the occurrence of a Trigger Event (as defined hereunder), and notwithstanding the provisions set forth above, the Guarantor guarantees to the Agent and the Lenders the prompt and full payment (and not merely the collectibility), performance and observance of all of the obligations, terms and conditions to be paid, performed or observed by any Loan Party under the Credit Agreement, the Note, any Guaranty and each other Loan Document, each as the same may be hereafter amended, modified, extended, renewed or recast, including, but not limited to the payment of the entire amount of all then outstanding principal balance of the Loan, together with interest and other charges thereon as provided for in the Credit Agreement or Note. As used herein, the term “Trigger Event” shall mean and refer to the occurrence of any of the following events:

 

(i)                                     Any voluntary filing by any Loan Party of a petition or application for relief, extension, moratorium or reorganization under any bankruptcy, insolvency or debtor’s relief law, or the making of a voluntary assignment for the benefit of creditors, or the appointment of a receiver of any property of any Loan Party in any action initiated by, or consented to, by any Loan Party, unless Guarantor has given the Agent reasonable prior written notice of the intent of such Loan Party to file such proceeding;

 

(ii)                                  The filing of an involuntary petition against any Loan Party under any bankruptcy, insolvency or debtor’s relief law by any other Person with whom any Loan Party colludes or consents, and/or any Loan Party solicits or causes to be solicited petitioning creditors for any involuntary petition against any Loan Party by any Person unless Guarantor has given the Agent reasonable prior written notice of the intent of such Loan Party to take such action, provided, however, the foregoing event shall not constitute a Trigger Event if Agent or any Lender is one of the creditors filing an involuntary petition or solicits other

 

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creditors to do so; or

 

(iii)                               The contesting or opposition by any Loan Party of any motion for relief from the automatic stay filed by the Lender in any involuntary bankruptcy proceeding of any Loan Party; or

 

(iv)                              Any intentional or willful acts of any Loan Party taken with the intent to solely hinder, delay or interfere with the exercise by the Agent of it’s rights and remedies under the Loan Documents after the occurrence of an Event of Default, which intentional or willful act(s) continues for five (5) Business Days after written notice from the Agent; provided, however, the foregoing shall not restrict a Loan Party from raising a legitimate defense to such action.

 

Upon the occurrence and during the continuation of any Event of Default, Guaranty Event or Trigger Event, Agent and the Lenders may at their option proceed directly and at once, without further notice, against Guarantor hereunder, without proceeding against any Loan Party or any other Person or other Collateral for the obligations secured by this Guaranty. Any sums payable by the Guarantor hereunder shall bear interest at the Default Rate from the date of demand until the date paid. If any Loan Party or the Guarantor, if so required, shall fail or refuse to perform or continue performance of any of the Obligations of the Credit Agreement on the part of Borrower to be kept and performed, or under any guaranty to be kept and performed, then, if an Event of Default exists on account thereof under the Loan Documents, in addition to any other rights and remedies which Agent and the Lenders may have hereunder or elsewhere, and not in limitation thereof, Agent at Agent and the Lenders’ option, may exercise any or all of its rights and remedies under the Credit Agreement and each other Loan Document. This Guaranty shall survive and continue in full force and effect beyond and after the payment and satisfaction of the Obligations and the obligations of Borrower in the event Lender is required to disgorge or return any payment or property received as a result of any laws pertaining to preferences, fraudulent transfers or fraudulent conveyances.

 

Section 2.  Guaranty of Payment and Not of Collection. This Guaranty is a guaranty of payment, and not of collection, and a debt of the Guarantor for its own account. Accordingly, the Lenders and the Agent shall not be obligated or required before enforcing this Guaranty against the Guarantor: (a) to pursue any right or remedy the Lenders or the Agent may have against any Loan Party, any other guarantor or any other Person or commence any suit or other proceeding against any Loan Party, any other guarantor or any other Person in any court or other tribunal; (b) to make any claim in a liquidation or bankruptcy of any Loan Party, any other guarantor or any other Person; or (c) to make demand of any Loan Party, any other guarantor or any other Person or to enforce or seek to enforce or realize upon any collateral security held by the Lenders or the Agent which may secure any of the Obligations. In this connection, Guarantor hereby waives its right to require any holder of the Obligations to take action against any Loan Party as provided by any legal requirement of any Governmental Authority.

 

Section 3.  Guaranty Absolute. The Guarantor guarantees that the Obligations will be paid strictly in accordance with the terms of the documents evidencing the same, regardless of any legal requirement now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Agent or the Lenders with respect thereto. The liability of the Guarantor under this Guaranty shall be absolute and unconditional in accordance with its terms and shall remain

 

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in full force and effect without regard to, and shall not be released, suspended, discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever (other than the full and final payment and performance of the Obligations), including, without limitation, the following (whether or not Guarantor consents thereto or has notice thereof):

 

(a)                                 (i) any change in the amount, interest rate or due date or other term of any of the Obligations; (ii) any change in the time, place or manner of payment of all or any portion of the Obligations; (iii) any amendment or waiver of, or consent to the departure from or other indulgence with respect to, the Credit Agreement, any other Loan Document, or any other document or instrument evidencing or relating to any Obligations; or (iv) any waiver, renewal, extension, addition, or supplement to, or deletion from, or any other action or inaction under or in respect of, the Credit Agreement, any of the other Loan Documents, or any other documents, instruments or agreements relating to the Obligations or any other instrument or agreement referred to therein or evidencing any Obligations or any assignment or transfer of any of the foregoing;

 

(b)                                 any lack of validity or enforceability of the Credit Agreement, any of the other Loan Documents, or any other document, instrument or agreement referred to therein or evidencing any Obligations or any assignment or transfer of any of the foregoing;

 

(c)                                  any furnishing to the Agent or the Lenders of any security for the Obligations, or any sale, exchange, release or surrender of, or realization on, any collateral security for the Obligations;

 

(d)                                 any settlement or compromise of any of the Obligations, any security therefor, or any liability of any other party with respect to the Obligations, or any subordination of the payment of the Obligations to the payment of any other liability of any Loan Party;

 

(e)                                  any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to any Loan Party or any other Person, or any action taken with respect to this Guaranty by any trustee or receiver, or by any court, in any such proceeding;

 

(f)                                   any nonperfection of any security interest or other Lien on any of the Collateral;

 

(g)                                  any act or failure to act by any Loan Party or any other Person which may adversely affect Guarantor’s subrogation rights, if any, against any Loan Party to recover payments made under this Guaranty;

 

(h)                                 any application of sums paid by any Loan Party or any other Person with respect to the liabilities of any Loan Party to the Agent or the Lenders, regardless of what liabilities of the Borrower or any Subsidiary of the Borrower remain unpaid;

 

(i)                                     any defect, limitation or insufficiency in the borrowing powers of the Borrower or in the exercise thereof; or

 

(j)                                    any other circumstance which might otherwise constitute a defense available to, or a discharge of, the Guarantor hereunder.

 

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Section 4.  Action with Respect to Obligations.  The Lenders and the Agent may in accordance with the Credit Agreement, at any time and from time to time, without the consent of, or notice to, Guarantor, and without discharging Guarantor from its obligations hereunder take any and all actions described in Section 3 and may otherwise: (a) amend, modify, alter or supplement the terms of any of the Obligations, including, but not limited to, extending or shortening the time of payment of any of the Obligations or the interest rate that may accrue on any of the Obligations; (b) amend, modify, alter or supplement the Credit Agreement or any other Loan Document; (c) sell, exchange, release or otherwise deal with all, or any part, of any Collateral; (d) release any Person liable in any manner for the payment or collection of the Obligations; (e) exercise, or refrain from exercising, any rights against the Borrower or any other Person (including, without limitation, any other guarantor); and (f) apply any sum, by whomsoever paid or however realized, to the Obligations in such order as the Lenders or the Agent shall elect in accordance with the Credit Agreement.

 

Section 5.  Representations and Warranties.  The Guarantor hereby makes to the Agent and the Lenders all of the representations and warranties made by the Borrower with respect to or in any way relating to Guarantor in the Credit Agreement and the other Loan Documents, as if the same were set forth herein in full.

 

Section 6.  Covenants.  The Guarantor will comply with all covenants which the Borrower is to cause Guarantor to comply with under the terms of the Credit Agreement or any other Loan Documents.

 

Section 7.  Waiver.  The Guarantor, to the fullest extent permitted by applicable law, hereby waives notice of acceptance hereof or any presentment, demand, protest or notice of any kind, and any other act or thing, or omission or delay to do any other act or thing, which in any manner or to any extent might vary the risk of the Guarantor or which otherwise might operate to discharge the Guarantor from its obligations hereunder.

 

Section 8.  Inability to Accelerate Loan.  If the Agent and/or the Lenders are prevented from demanding or accelerating payment thereof by reason of any automatic stay or otherwise, the Agent and/or the Lenders shall be entitled to receive from Guarantor, upon demand therefor, the sums which otherwise would have been due had such demand or acceleration occurred.

 

Section 9.  Reinstatement of Obligations.  The Guarantor agrees that this Guaranty shall continue to be effective or be reinstated, as the case may be, with respect to any Obligations if at any time payment of any such Obligations is rescinded or otherwise must be restored by the Agent and/or the Lenders upon the bankruptcy or reorganization of any Loan Party or any other guarantor or otherwise.

 

Section 10.  Subrogation.  Until all of the Obligations shall have been indefeasibly paid in full, any right of subrogation the Guarantor may have shall be subordinate to the rights of Agent and the Lenders and the Guarantor hereby waives any right to enforce any remedy which the Agent and/or the Lenders now have or may hereafter have against any Loan Party, and the Guarantor hereby waives any benefit of, and any right to participate in, any security or collateral given to the Agent and the Lenders to secure payment or performance of any of the Obligations.

 

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Section 11.  Payments Free and Clear.  All sums payable by the Guarantor hereunder shall be made free and clear of and without deduction for any tax or other charge; provided that if the Guarantor shall be required by applicable law to deduct any taxes or other charge from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section), the Agent or any Lender (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made; (ii) Guarantor shall make such deductions; and (iii) Guarantor shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law.

 

Section 12.  Other Guarantees.  This Guaranty is independent of (and shall not be limited by) any other guaranty now existing or hereafter given. Further, Guarantor’s liability under this Guaranty is in addition to any and all other liability Guarantor may have in any other capacity, including without limitation, any other lending facilities between and among Administrative Agent, Lenders and Guarantor.

 

Section 13.  Subordination.  The Guarantor hereby expressly covenants and agrees for the benefit of the Agent and the Lenders that all obligations and liabilities of any Loan Party, or any other guarantor to such guarantor of whatever description, including without limitation, all intercompany receivables of such guarantor from any Loan Party, or any other guarantor (collectively, the “Junior Claims”) shall be subordinate and junior in right of payment to all Obligations; provided, however, that payment thereof may be made so long as no Event of Default shall have occurred and be continuing. If an Event of Default shall have occurred and be continuing, then no Guarantor shall accept any direct or indirect payment (in cash, property, securities by setoff or otherwise) from any Loan Party or any other guarantor on account of or in any manner in respect of any Junior Claim until all of the Obligations have been indefeasibly paid in full.

 

Section 14.  Avoidance Provisions.  It is the intent of the Guarantor, the Agent and the Lenders that in any Insolvency Proceeding, Guarantor’s maximum obligation hereunder shall equal, but not exceed, the maximum amount which would not otherwise cause the obligations of Guarantor hereunder (or any other obligations of Guarantor to the Agent and the Lenders) to be avoidable or unenforceable against Guarantor in such Insolvency Proceeding as a result of applicable law, including without limitation, (a) Section 548 of the Bankruptcy Code of 1978, as amended (the “Bankruptcy Code”) and (b) any state fraudulent transfer or fraudulent conveyance act or statute applied in such Insolvency Proceeding, whether by virtue of Section 544 of the Bankruptcy Code or otherwise. The applicable laws under which the possible avoidance or unenforceability of the obligations of Guarantor hereunder (or any other obligations of Guarantor to the Agent and the Lenders) shall be determined in any such Insolvency Proceeding are referred to as the “Avoidance Provisions.” Accordingly, to the extent that the obligations of the Guarantor hereunder would otherwise be subject to avoidance under the Avoidance Provisions, the maximum Obligations for which Guarantor shall be liable hereunder shall be reduced to that amount which, as of the time any of the Obligations are deemed to have been incurred under the Avoidance Provisions, would not cause the obligations of the Guarantor hereunder (or any other obligations of Guarantor to the Agent and the Lenders), to be subject to avoidance under the Avoidance Provisions. This Section is intended solely to preserve the rights of the Agent and the Lenders hereunder to the maximum extent that would not cause the obligations of the Guarantor

 

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hereunder to be subject to avoidance under the Avoidance Provisions, and no Guarantor nor any other Person shall have any right or claim under this Section as against the Agent and the Lenders that would not otherwise be available to such Person under the Avoidance Provisions.

 

Section 15.  Information.  The Guarantor assumes all responsibility for being and keeping itself informed of the financial condition of the Loan Parties and of all other circumstances bearing upon the risk of nonpayment of any of the Obligations and the nature, scope and extent of the risks that Guarantor assumes and incurs hereunder, and agrees that none of the Agent or any Lender shall have any duty whatsoever to advise the Guarantor of information regarding such circumstances or risks.

 

Section 16.  Governing Law.  THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS.

 

Section 17.  Jurisdiction; Venue; JURY WAIVER.

 

(a)                                 The party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the state and federal courts in Boston, Massachusetts, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Guaranty or any other Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such Commonwealth or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Guaranty shall affect any right that the Agent or any Lender may otherwise have to bring any action or proceeding relating to this Guaranty or any other Loan Document against the Guarantor or its properties in the courts of any jurisdiction.

 

(b)                                 Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Guaranty or any other Loan Document in any court referred to in paragraph (a) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

(c)                                  WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS GUARANTY, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS

 

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REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

Section 18.  Loan Accounts.  The Agent may maintain books and accounts setting forth the amounts of principal, interest and other sums paid and payable with respect to the Obligations, and in the case of any dispute relating to any of the outstanding amount, payment or receipt of Obligation or otherwise, the entries in such account shall be binding upon Guarantor as to the outstanding amount of such Obligations and the amounts paid and payable with respect thereto absent manifest error. The failure of the Agent to maintain such books and accounts shall not in any way relieve or discharge the Guarantor of any of its obligations hereunder.

 

Section 19.  Waiver of Remedies.  No delay or failure on the part of the Agent or the Lenders in the exercise of any right or remedy it may have against the Guarantor hereunder or otherwise shall operate as a waiver thereof, and no single or partial exercise by the Agent or the Lenders of any such right or remedy shall preclude other or further exercise thereof or the exercise of any other such right or remedy.

 

Section 20.  Successors and Assigns.  Each reference herein to the Agent or the Lenders shall be deemed to include such Person’s respective successors and assigns (including, but not limited to, any holder of the Obligations) in whose favor the provisions of this Guaranty also shall inure, and each reference herein to the Guarantor shall be deemed to include the Guarantor’s successors and assigns, upon whom this Guaranty also shall be binding. The Lenders and the Agent may, in accordance with the applicable provisions of the Credit Agreement, assign, transfer or sell any Obligation, or grant or sell participation in any Obligations, to any Person or entity without the consent of, or notice to, the Guarantor and without releasing, discharging or modifying Guarantor’s obligations hereunder. Guarantor hereby consents to the delivery by the Agent or any Lender to any assignee, transferee or participant of any financial or other information regarding the Borrower or the Guarantor. Guarantor may not assign or transfer its obligations hereunder to any Person.

 

Section 21.  Amendments.  This Guaranty may not be amended except as provided in the Credit Agreement.

 

Section 22.  Payments.  All payments made by the Guarantor pursuant to this Guaranty shall be made in Dollars, in immediately available funds to the Agent at the place and time provided for in the Credit Agreement on the date three (3) Business Days after written demand therefor to Guarantor by the Agent.

 

Section 23.  Notices.  All notices, requests and other communications hereunder shall be in writing and shall be given as provided in the Credit Agreement. Guarantor’s address for notice is set forth below its signature hereto.

 

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Section 24. Severability. In case any provision of this Guaranty shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 25. Headings. Section headings used in this Guaranty are for convenience only and shall not affect the construction of this Guaranty.

 

Section 26. Definitions. (a) For the purposes of this Guaranty:

 

“Insolvency Proceeding” means any of the following: (i) a voluntary or involuntary case concerning any Loan Party shall be commenced under the Bankruptcy Code or any other applicable bankruptcy laws; (ii) a custodian (as defined in the Bankruptcy Code or any other applicable bankruptcy laws) is appointed for, or takes charge of, all or any substantial part of the property of any Loan Party; (iii) any other proceeding under any applicable law, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding-up or composition for adjustment of debts, whether now or hereafter in effect, is commenced relating to any Loan Party; (iv) any Loan Party is adjudicated insolvent or bankrupt; (v) any order of relief or other order approving any such case or proceeding is entered by a court of competent jurisdiction; (vi) any Loan Party makes a general assignment for the benefit of creditors; (vii) any Loan Party shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; (viii) any Loan Party shall call a meeting of its creditors with a view to arranging a composition or adjustment of its debts; (ix) any Loan Party shall by any act or failure to act indicate its consent to, approval of or acquiescence in any of the foregoing; or (x) any corporate action shall be taken by any Loan Party for the purpose of effecting any of the foregoing.

 

(b) Terms not otherwise defined herein are used herein with the respective meanings given them in the Credit Agreement.

 

[End of Text. Signatures on Following Page]

 

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

 

	
 
    	
NEWREAL, INC., a Massachusetts corporation
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ronald Brown
    
	
 
    	
Name:
    	
Ronald Brown
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address for Notices:
    
	
 
    	
 
    
	
 
    	
39 Brighton Avenue
    
	
 
    	
Boston, Massachusetts 02134
    
	
 
    	
 
    
	
 
    	
With a simultaneous copy to:
    
	
 
    	
 
    
	
 
    	
Saul Ewing LLP
    
	
 
    	
131 Dartmouth Street, Suite 501
    
	
 
    	
Boston, Massachusetts 02116
    
	
 
    	
Attention: Sally Michael, Esq.
    

 

[Signature Page to Non-Recourse Carveout Guaranty]Exhibit 10.4

 

OWNERSHIP INTEREST PLEDGE AND SECURITY AGREEMENT

 

THIS OWNERSHIP INTEREST PLEDGE AND SECURITY AGREEMENT (this “Pledge Agreement”) dated effective as of the 31st day of July, 2014 by and between NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP, a Massachusetts limited partnership (the, “Pledgor”) and KEYBANK, NATIONAL ASSOCIATION, a national banking association having an address at 225 Franklin Street, Boston, Massachusetts 02110, as administrative agent (KeyBank National Association, in such capacity as administrative agent, hereinafter referred to as the “Administrative Agent”) for a syndicate of lenders (singly and collectively, the “Lenders”) as specifically provided in the Credit Agreement (as defined below).

 

WITNESSETH

 

WHEREAS, pursuant to that certain Credit Agreement dated as of even date hereof (as same may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) entered into by and among Pledgor, Administrative Agent and the Lenders, Administrative Agent and the Lenders may make loans to the Borrower (as defined in the Credit Agreement) up to the aggregate principal amount of $25,000,000.00 outstanding at any time (singly and collectively, the “Loan”) upon the terms and subject to the conditions set forth therein.

 

WHEREAS, Pledgor holds the ownership interests reflected in Schedule 1 attached hereto in the entities described thereon (collectively, the “Subsidiaries”).

 

WHEREAS, as a further condition to extending the Loan, Administrative Agent and the Lenders have required Pledgor to execute and deliver this Pledge Agreement to secure Pledgor’s obligations under the Credit Agreement.

 

NOW, THEREFORE, in consideration of the premises and to induce the Lenders to make the Loan under the Credit Agreement, Pledgor hereby agrees with Administrative Agent and the Lenders as follows:

 

1.                                      Defined Terms.  Unless otherwise defined herein, terms which are defined in the Credit Agreement and used herein are so used as so defined, and the following terms shall have the following meanings:

 

“Administrative Agent”:  as defined in the first paragraph of this Pledge Agreement.

 

“Article 8 Matter”:  means any action, decision, determination or election by any Subsidiary or its owner(s), that the ownership interests in such Subsidiary, or any of them, be a “security” as defined in and governed by Article 8 of the UCC, and all other matters related to any such action, decision, determination or election.

 

“Collateral”:  means (i) with respect to the each of the Subsidiaries identified on Schedule I hereto as pledging a class of equity interests identified as a “Partnership Interest” or an “LLC Interest”, the Ownership Interests and all Proceeds thereof (an “Ownership Interests

 

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Pledge”), and (ii) with respect to the each of the Subsidiaries identified on Schedule 1 hereto as pledging a class of equity interests identified as an “Economic Interest”, Proceeds of any such economic interest (an “Economic Interests Pledge”).

 

“Credit Agreement”: as defined in the recitals of this Pledge Agreement.

 

“Economic Interests Pledge”: as defined in the definition of Collateral.

 

“Lenders”: as defined in the first paragraph of this Pledge Agreement.

 

“Loan”: as defined in the recitals of this Pledge Agreement.

 

“Obligations”:  means all indebtedness, obligations and liabilities of Pledgor to the Administrative Agent and/or any of the Lenders, whether now existing or hereafter arising, direct or indirect, absolute or contingent, under any one or more of: (i) this Pledge Agreement; (ii) the Credit Agreement, the Notes or any other Loan Document; and (iii) each of the same as hereafter modified, amended, extended or replaced, including, without limitation, the Obligation (as defined in the Credit Agreement).

 

“Ownership Interests”:  means all right, title and interest of Pledgor, whether now owned or hereafter acquired, as a member, limited partner or other holder solely to the extent of that portion of the ownership interests specified on Schedule 1 hereto in the Subsidiaries reflected on such Schedule 1, and all other property, rights and instruments of any description at any time issued or issuable as an addition to or in substitution for such equity interests, together with (i) all interests, certificates, options or rights of any nature whatsoever which may be issued or granted to in respect of such specified interests, (ii) all accounts and general intangibles arising out of, or in connection with, the interests in each Subsidiary now owned or hereafter acquired by Pledgor, (iii) any and all moneys or property due and to become due to Pledgor now or in the future in respect of such interests in each Subsidiary, or to which Pledgor may now or in the future be entitled in its capacity as a member, partner, shareholder or other equity holder of such Subsidiary, whether by way of a dividend, distribution, return of capital or otherwise, (iv) all other claims which Pledgor now has or may in the future acquire in its capacity as a member, partner, shareholder or other equity holder of each Subsidiary against each Subsidiary and its property, and (v) all rights of Pledgor under each Subsidiary’s organizational documents and under applicable law (and all other agreements, if any, to which Pledgor is a party from time to time which relate to its ownership of the subject interests in such Subsidiary) including, without limitation, all voting and consent rights, management rights, control rights, rights to information and review of each Subsidiary’s books and records, arising thereunder or otherwise in connection with Pledgor’s ownership of such interests in each Subsidiary.

 

“Ownership Interests Pledge”:  as defined in the definition of Collateral.

 

“Pledge Agreement”:  means this Ownership Interest Pledge and Security Agreement, as amended, supplemented or otherwise modified from time to time.

 

“Proceeds”:  means (i) Pledgor’s right, title and interest in and to all distributions,

 

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monies, fees, payments, compensations and proceeds now or hereafter payable in respect of the Ownership Interests, whether payable as profits, distributions, asset distributions, repayment of loans or capital or otherwise and including all “proceeds” as such term is defined in Section 9-102(a)(64) of the UCC (as defined herein); (ii) all books, records, electronically stored data and information relating to the Ownership Interests and all rights of access to such books, records and information; (iii) all contract rights, general intangibles, claims, powers, privileges, benefits and remedies of relating to the foregoing; (iv) all additions to the Ownership Interests, all substitutions therefor and all replacements thereof; and (v) all cash or non-cash proceeds of any of the foregoing.

 

“UCC”:  means the Uniform Commercial Code from time to time in effect in the Commonwealth of Massachusetts; provided, however, that if by mandatory provisions of law, the perfection or the effect of perfection or non-perfection of the security interest granted hereunder in the Collateral is governed by the Uniform Commercial Code of a jurisdiction other than Massachusetts, “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of provisions hereof relating to such perfection or effect of perfection or non-perfection.

 

2.                                      Pledge; Grant of Security Interest.  As security for the full and punctual payment and performance of the Obligations when due and payable (whether upon stated maturity, by acceleration or otherwise), Pledgor hereby transfers, assigns, grants, bargains, sells, conveys, hypothecates, pledges, sets over, endorses over and delivers to Administrative Agent all of the Ownership Interests, and Pledgor hereby grants, pledges, hypothecates, transfers and assigns to Administrative Agent a continuing lien on and security interest in all of the Collateral.

 

3.                                      Delivery of Certificates, Instruments, Etc.  Pledgor shall deliver to Administrative Agent all original certificates, instruments and other documents, if any, evidencing or representing the Collateral (except for collateral which this Pledge Agreement specifically permits the Borrower to retain), concurrently with the execution and delivery of this Pledge Agreement.

 

4.                                      Powers and Transfer Instruments.  Concurrently with the delivery to Administrative Agent of this Pledge Agreement and each certificate, if any, representing the Collateral, Pledgor shall deliver a duly executed consent from each Subsidiary in the form of Exhibit A attached hereto (the “Consent”).

 

5.                                      Representations and Warranties.  Pledgor represents and warrants that:

 

(a)                                 except for any consents as may be required in connection with any disposition of any portion of the Collateral by laws affecting the offering and sale of securities generally or as otherwise contemplated by the Credit Agreement, no consent of any other person or entity (including, without limitation, any owner or creditor of Pledgor), and no license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing (other than the filing of financing statements under the UCC in order to perfect a security interest in that portion of the Collateral in which a security interest is perfected by filing) or declaration with any governmental instrumentality is required in connection with (i) the execution, delivery, performance, validity or enforceability of this Pledge Agreement, (ii) the perfection or maintenance of the security interest created hereby (including the first priority nature of such

 

3

 

security interest), or (iii) the exercise by Administrative Agent of any rights provided for in this Pledge Agreement;

 

(b)                                 to the extent applicable, all the Ownership Interests have been duly and validly issued and are fully paid. No certificate or other instrument has been issued at any time to evidence the Collateral. None of the ownership interests comprising the Collateral are dealt in or traded on securities exchanges or in securities markets, and none by its terms expressly provides that it is a security governed by Article 8 of the UCC or that it is an investment company security, and none is held in a securities account (as defined in Section 8-501 of the UCC);

 

(c)                                  Pledgor is the sole holder of record and sole beneficial owner of, and has good and valid title to, the Ownership Interests, free of any and all liens or options in favor of, or claims of, any other Person, except the lien created by this Pledge Agreement and Permitted Liens;

 

(d)                                 upon the filing of the UCC-1 financing statements referred to in Section 13 hereof, the lien granted pursuant to this Pledge Agreement will constitute a valid, perfected first priority lien on such Ownership Interests and related Collateral with respect to that portion of the Collateral in which a security interest is perfected by the filing of a financing statement, enforceable as such against all creditors of Pledgor and any Persons purporting to purchase any Ownership Interests and related Collateral from Pledgor; and

 

(e)                                  there are no restrictions on the transfer of the Collateral to Administrative Agent hereunder, or with respect to any subsequent transfer thereof or realization thereupon by Administrative Agent and/or the Lenders (or, if there are any such restrictions, such transfer restrictions have been duly waived by all required parties), and, as set forth in the Consent, Pledgor has obtained all consents needed in connection with any such transfer or subsequent transfer, subject to matters resulting from the operation of law.

 

6.                                      Covenants. Pledgor covenants and agrees with Administrative Agent and the Lenders that from and after the date of this Pledge Agreement until this Pledge Agreement shall be terminated:

 

(a)                                 If Pledgor shall, as a result of its ownership of the Ownership Interests, receive additional ownership interests in a Subsidiary, Pledgor shall, subject to the proviso in Section 2 hereof, pledge such interests to Administrative Agent hereunder as additional security for the Obligations, provided the total percentage interests pledged in such Subsidiary shall not exceed the percentage initially pledged.

 

(b)                                 Without the prior written consent of Administrative Agent, Pledgor will not, directly or indirectly if prohibited by the Credit Agreement, sell, assign, transfer, exchange or otherwise dispose of, or grant any option with respect to, the Collateral. Pledgor will defend the right, title and interest of Administrative Agent in and to the Collateral against the claims and demands of all Persons whomsoever.

 

(c)                                  At any time and from time to time, upon the written request of Administrative

 

4

 

Agent, and at the sole expense of Pledgor, Pledgor will promptly and duly execute and deliver such further instruments and documents and take such further actions as Administrative Agent may reasonably request for the purposes of obtaining or preserving the full benefits of this Pledge Agreement and of the rights and powers herein granted. If any amount payable under or in connection with any of the Collateral shall be or become evidenced by any promissory note, other instrument or chattel paper, such note, instrument or chattel paper shall be promptly delivered to Administrative Agent, duly endorsed in a manner satisfactory to Administrative Agent, to be held as Collateral pursuant to this Pledge Agreement.

 

(d)                                 Pledgor shall not exercise any right with respect to the Collateral which would materially adversely affect Administrative Agent’s rights in the Collateral.

 

(e)                                  Notwithstanding any other provision contained in this Pledge Agreement:

 

(i)                                     Pledgor hereby covenants and agrees with the Administrative Agent and the Lenders that from and after the date of this Pledge Agreement until this Pledge Agreement shall be terminated: (i) it will take no action of any nature whatsoever for any of the equity interests in any Subsidiary to be treated as “securities” within the meaning of, or governed by, Article 8 of the UCC; (ii) it will take no action of any nature whatsoever to issue any “securities” within the meaning of, or governed by, Article 8 of the UCC, whether certificated or uncertificated; (iii) it will take no action of any nature whatsoever to issue any equity interests or voting rights to any person other than the Pledgor or the Lenders; (iv) it will take no action of any nature whatsoever to enter into, acknowledge or agree to a control agreement with respect to the equity interests in any Subsidiary; and (v) it will not consent to or permit the filing of financing statements with respect to equity interests in any Subsidiary except for financing statements filed by the Administrative Agent; and

 

(ii)                                  with respect to Article 8 Matters, Pledgor hereby irrevocably grants and appoints Administrative Agent, from the date of this Pledge Agreement until the termination of this Pledge Agreement in accordance with its terms, as Pledgor’s true and lawful proxy, for and in Pledgor’s name, place and stead to vote the Ownership Interests in any Subsidiary by Pledgor, whether directly or indirectly, beneficially or of record, now owned or hereafter acquired, only with respect to such Article 8 Matters. The proxy granted and appointed in this Section shall include the right to sign Pledgor’s name (as, as applicable, a member or partner of such Subsidiary) to any consent, certificate or other document relating to an Article 8 Matter and the Ownership Interests that applicable law may permit or require, to cause the Ownership Interests to be voted in accordance with the preceding sentence. Pledgor hereby represents and warrants that there are no other proxies and powers

 

5

 

of attorney with respect to an Article 8 Matter and the Ownership Interests that Pledgor may have granted or appointed. Pledgor will not give a subsequent proxy or power of attorney or enter into any other voting agreement with respect to the Ownership Interests with respect to any Article 8 Matter and any attempt to do so with respect to an Article 8 Matter shall be void and of no effect.

 

(iii)                               THE PROXIES AND POWERS GRANTED BY PLEDGOR PURSUANT TO THIS AGREEMENT ARE COUPLED WITH AN INTEREST AND ARE GIVEN TO SECURE THE PERFORMANCE OF PLEDGOR’S OBLIGATIONS UNDER THIS AGREEMENT.

 

7.                                      Cash Dividends; Distributions; Voting Rights. Unless an Event of Default shall have occurred and be continuing, Pledgor shall be permitted to exercise all voting rights with respect to the Ownership Interests and to receive all distributions and other economic benefits with respect to the Ownership Interests; provided, however, that Pledgor shall not, without the prior written consent of Administrative Agent in each instance, which consent shall not be unreasonably withheld, but subject in all instances to the rights granted to Borrower under Section 5.03 of the Credit Agreement with respect to the financing of individual assets, vote the Collateral in favor of, or consent to, any resolution or action which does or might:

 

(a)                                 impose any restrictions upon the sale, transfer or disposition of the Collateral other than restrictions, if any, the application of which is waived to the full satisfaction of Administrative Agent as to the Collateral; or

 

(b)                                 result in the issuance of any additional interest in the Subsidiaries, or of any class or series of security, on a non-pro rata basis; or

 

(c)                                  vest additional powers, privileges, preferences or priorities to any other class or series of interest in the Subsidiaries to the detriment of the value of, or rights accruing to, the Collateral.

 

For purposes of clarification, with respect to Ownership Interests identified in Schedule I as “Economic Interests”, Borrower shall retain at all times, including, without limitation, after an Event of Default has occurred or while an Event of Default is continuing, the right to exercise all voting rights.

 

8.                                      Rights of Administrative Agent.

 

(a)                                 If an Event of Default shall have occurred and be continuing, Administrative Agent shall have the right to receive any and all cash dividends or other payments paid in respect of the Collateral and make application thereof to the Obligations, in such order as Administrative Agent, in its sole discretion, may elect. In connection therewith, if an Event of Default shall have occurred and be continuing, Administrative Agent shall have the right to direct the issuer(s)

 

6

 

of the Ownership Interests to pay all such cash dividends or other payment directly to Administrative Agent or as otherwise directed by Administrative Agent.

 

(b)                                 If an Event of Default shall have occurred and be continuing, then all such Ownership Interests, at Administrative Agent’s option, shall be registered in the name of Administrative Agent or its nominee, and Administrative Agent or its nominee may thereafter exercise (x) all voting and other rights pertaining to such Ownership Interests and (y) any and all rights of conversion, exchange, subscription and any other rights, privileges or options pertaining to such Ownership Interests as if Administrative Agent were the absolute owner thereof (including, without limitation, the right to exchange at its discretion any and all of the Ownership Interests upon the merger, consolidation, reorganization, recapitalization or other fundamental change in the organizational structure of Pledgor, or upon the exercise by Pledgor or Administrative Agent of any right, privilege or option pertaining to such Ownership Interests, and in connection therewith, the right to deposit and deliver any and all of the Ownership Interests with any committee, depositary, transfer agent, registrar or other designated agency upon such terms and conditions as it may determine), all without liability except to account for property actually received by it, but Administrative Agent shall have no duty to exercise any such right, privilege or option and shall not be responsible for any failure to do so or delay in so doing. For purposes of clarity, this Subsection 8(b) shall only apply to Ownership Interests Pledges.

 

(c)                                  The rights of Administrative Agent hereunder shall not be conditioned or contingent upon the pursuit by Administrative Agent of any right or remedy against Pledgor or against any other Obligations or against any other Collateral security therefor, guarantee thereof or right of offset with respect thereto. Administrative Agent shall not be liable for any failure to demand, collect or realize upon all or any part of the Collateral or for any delay in doing so, nor shall it be under any obligation to sell or otherwise dispose of any Collateral upon the request of Pledgor or any other person or entity or to take any other action whatsoever with regard to the Collateral or any part thereof.

 

9.                                      Actions By Administrative Agent. Pledgor hereby designates Administrative Agent as the attorney-in-fact of Pledgor to, during the continuance of an Event of Default: (a) endorse in favor of Administrative Agent any of the Collateral; (b) cause the transfer of any of the Collateral in such name as Administrative Agent may from time to time determine; (c) cause the issuance of certificates for book entry and/or uncertificated securities; (d) renew, extend or roll over any Collateral; (e) make, demand and initiate actions to enforce any of the Collateral or rights therein; and (f) take any other action to effectuate the terms and provisions of this Pledge Agreement. During the continuance of an Event of Default Administrative Agent may take such action with respect to the Collateral as Administrative Agent may reasonably determine to be necessary to protect and preserve its interest in the Collateral. The within designation and grant of power of attorney is coupled with an interest, is irrevocable until the lien created by this Pledge Agreement is terminated by a written instrument executed by a duly authorized officer of Administrative Agent. The power of attorney shall not be affected by subsequent disability or incapacity of Pledgor. Administrative Agent shall not be liable for any act or omission to act pursuant to this Section 9, except for any act or omission to act which is in bad faith or constitutes gross negligence.

 

7

 

10.                               Remedies. If an Event of Default shall have occurred and be continuing, Administrative Agent may exercise, in addition to all other rights and remedies granted in this Pledge Agreement and in any other instrument or agreement securing, evidencing or relating to the Obligations, all rights and remedies of a secured party under the UCC. Without limiting the generality of the foregoing, Administrative Agent, if an Event of Default shall have occurred and be continuing, without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon Pledgor or any other person or entity (all and each of which demands, presentments, protests, advertisements or notices are hereby waived), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral or any part thereof, and/or may forthwith sell, assign, give option or options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales, in the over-the-counter market, at any exchange, broker’s board or office of Administrative Agent or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk. Administrative Agent shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in Pledgor, which right or equity is hereby waived or released. Administrative Agent shall apply any Proceeds from time to time held by it and the net proceeds of any such collection, recovery, receipt, appropriation, realization or sale, after deducting all reasonable costs and expenses of every kind incurred therein or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of Administrative Agent hereunder, including, without limitation, reasonable attorneys’ fees and disbursements, to the payment in whole or in part of the Obligations, in such order as Administrative Agent may elect, and only after such application and after the payment by Administrative Agent of any other amount required by any provision of law, including, without limitation, Section 9-615(a) of the UCC, need Administrative Agent account for the surplus, if any, to Pledgor. To the extent permitted by applicable law, Pledgor waives all claims, damages and demands it may acquire against Administrative Agent arising out of the exercise by Administrative Agent of any of its rights hereunder, except for any claims, damages and demands any of them may have against Administrative Agent arising from the gross negligence or willful misconduct of Administrative Agent. If any notice of a proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least ten (10) days before such sale or other disposition. Pledgor shall remain liable for any deficiency if the proceeds of any sale or other disposition of Collateral are insufficient to pay the Obligations and the fees and disbursements of any attorneys employed by Administrative Agent to collect such deficiency.

 

11.                               Private Sales.

 

(a)                                 Pledgor recognizes that Administrative Agent may be unable to effect a public sale of any or all the Collateral, by reason of certain prohibitions contained in the Securities Act of 1933, as amended, and applicable state securities laws or otherwise, and may be compelled to resort to one or more private sales thereof to a restricted group of purchasers which will be obliged to agree, among other things, to acquire such securities for their own account for

 

8

 

investment and not with a view to the Distribution or resale thereof. Pledgor acknowledges and agrees that any such private sale may result in prices and other terms less favorable to Administrative Agent than if such sale were a public sale. Administrative Agent shall be under no obligation to delay a sale of any of the Collateral for the period of time necessary to permit Pledgor to register such securities for public sale under the Securities Act of 1933, as amended, or under applicable state securities laws, even if Pledgor would agree to do so.

 

(b)                                 Pledgor further agrees to use its best efforts to do or cause to be done all such other acts as may be necessary to make any sale or sales of all or any portion of the Collateral pursuant to this Section 11 valid and binding and in compliance with any and all other applicable requirements of law; provided, however, with respect to the Ownership Interests Pledges, that Pledgor shall not be under any obligation to register the Ownership Interests for public sale under the Securities Act of 1933, as amended, or under applicable state securities laws. Pledgor further agrees that a breach of any of the covenants contained in this Section 11 will cause irreparable injury to Administrative Agent, that Administrative Agent has no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in this Section 11 shall be specifically enforceable against Pledgor, and Pledgor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants except for a defense that no default has occurred with respect to the Obligations.

 

12.                               Limitation on Duties Regarding Collateral. Administrative Agent’s sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession, under Section 9-207 of the UCC or otherwise, shall be to deal with it in the same manner as Administrative Agent deals with similar securities and property for its own account. Neither Administrative Agent nor any of its directors, officers, employees or agents shall be liable for failure to demand, collect or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of Pledgor or otherwise.

 

13.                               Financing Statements; Other Documents. This Pledge Agreement constitutes an authenticated record, and Pledgor hereby authorizes Administrative Agent to file one or more UCC-1 financing statements, continuation statements and/or other documents with respect to the Collateral, without the signature of Pledgor, and in such filing offices as Administrative Agent shall deem reasonably appropriate. Pledgor agrees to deliver any other document or instrument which Administrative Agent may reasonably request in connection with the administration and enforcement of this Pledge Agreement or with respect to the Collateral for the purposes of obtaining or preserving the full benefits of this Pledge Agreement and of the rights and powers herein granted.

 

14.                               Powers Coupled with an Interest. All authorizations and agencies and powers herein contained with respect to the Collateral are irrevocable and coupled with an interest.

 

15.                               Security Interest Absolute. All rights of Administrative Agent hereunder, the grant of a security interest in the Collateral and all obligations of Pledgor hereunder, shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of the Credit Agreement, any agreement with respect to any of the Obligations or any other agreement or instrument

 

9

 

relating to any of the foregoing, (b) any change in time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the Note or any other agreement or instrument, (c) any exchange, release or non-perfection of any other collateral, or any release or amendment or waiver of or consent to or departure from any guarantee, for all or any of the Obligations, or (d) any other circumstance which might otherwise constitute a defense available to (other than the defense of indefeasible payment), or a discharge of, Pledgor in respect of the Obligations or in respect of this Pledge Agreement.

 

16.                               Fees and Expenses. To the extent provided in the Credit Agreement, Pledgor shall be obligated to, upon demand, pay to Administrative Agent the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts or agents which Administrative Agent or any Lender may incur in connection with (a) the sale of, collection from, or other realization upon, any of the Collateral, or (b) during the continuance of an Event of Default, the exercise or enforcement of any of the rights of Administrative Agent hereunder. Any such amounts payable as provided hereunder or thereunder shall be additional obligations secured hereby and by the other documents or instruments relating to, evidencing or securing the Loan.

 

17.                               Termination. Upon the payment in full of the Obligations, in immediately available funds, including, without limitation, all unreimbursed costs and expenses of Administrative Agent and of each Lender for which Pledgor is responsible, Administrative Agent shall release the Collateral granted to Administrative Agent as provided for herein. However, such release by Administrative Agent shall not be deemed to terminate or release Pledgor from any obligation or liability under this Pledge Agreement which specifically by its terms survives the payment in full of the Obligations.

 

18.                               Severability. Any provision of this Pledge Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

19.                               Paragraph Headings. The paragraph headings used in this Pledge Agreement are for convenience of reference only and are not to affect the construction, or be taken into consideration in interpreting, this Pledge Agreement.

 

20.                               No Waiver; Cumulative Remedies. Administrative Agent shall not by any act, delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any default or in any breach of any of the terms and conditions hereof. No failure to exercise, nor any delay in exercising, on the part of Administrative Agent, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by Administrative Agent of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which Administrative Agent would otherwise have on any future occasion. The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not

 

10

 

exclusive of any rights or remedies provided by law.

 

21.                               Waivers and Amendments; Successors and Assigns; Governing Law; Venue. None of the terms or provisions of this Pledge Agreement may be waived, amended, or otherwise modified except by a written instrument executed by the party against which enforcement of such waiver, amendment, or modification is sought. This Pledge Agreement shall be binding upon Pledgor and Administrative Agent, and the successors and assigns of each, and shall inure to the benefit of Administrative Agent and the Lenders and their successors and assigns and to the benefit of Pledgor and Pledgor’s successors and permitted assigns; provided that Pledgor shall not have any right to (a) assign this Pledge Agreement or any interest herein, or (b) assign any interest in the Collateral or any part thereof, or otherwise pledge, encumber or grant any option with respect to the Collateral or any part thereof, or any cash or property held by Pledgor as Collateral under this Pledge Agreement if any such assignment, pledge, encumbrance or grant would constitute a violation of the Credit Agreement. The rights of Administrative Agent under this Pledge Agreement shall automatically be transferred to any transferee to whom Administrative Agent transfers the Note and the Credit Agreement pursuant to the terms thereof. The construction, interpretation, validity, enforceability and effect of all provisions of this Pledge Agreement including, but not limited to, the payment of the Obligations and the legality of the interest rate and other charges shall be construed and enforced in accordance with the laws of the Commonwealth of Massachusetts. Pledgor agrees to submit to non-exclusive personal jurisdiction in Suffolk County, in the Commonwealth of Massachusetts in any action or proceeding arising out of this Pledge Agreement and, in furtherance of such agreement, Pledgor hereby agrees and consents that, without limiting other methods of obtaining jurisdiction, personal jurisdiction over Pledgor in any such action or proceeding may be obtained within or without the jurisdiction of any court located in the Commonwealth of Massachusetts 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 Pledgor by registered or certified mail to or by personal service at the last known address of Pledgor, whether such address be within or without the jurisdiction of any such court.

 

22.                               Notices. Notices by Administrative Agent to Pledgor, to be effective, shall be in writing and shall be hand-delivered or sent by Federal Express, or other reputable national overnight courier service, or by postage pre-paid registered or certified mail, return receipt requested, addressed to Pledgor at its address set forth below its signatures hereto, with a copy in each instance to Saul Ewing LLP at the address set forth in the Credit Agreement, and shall be deemed to have been duly given or made (a) when delivered if hand-delivered or sent by Federal Express, or other reputable national overnight courier service, or (b) when delivered if sent by registered or certified mail. Any communications by Pledgor to Administrative Agent may be given in any manner set forth in the immediately preceding sentence, with a copy to Riemer & Braunstein LLP, Attention: Kevin J. Lyons, Esq., to the addresses set forth in the Credit Agreement.

 

23.                               Entire Understanding. Administrative Agent acknowledges that this Pledge Agreement, the Note, and the other Loan Documents and Security Documents set forth the entire agreement and understanding of Administrative Agent and Pledgor with respect to the Loan and that no oral or other agreements, understanding, representation or warranties exist with respect to the Loan,

 

11

 

other than those set forth in this Pledge Agreement, the Note, and the other Loan Documents and Security Documents.

 

24.                               Counterpart Signatures. This Pledge Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one instrument.

 

[SIGNATURE PAGES FOLLOW]

 

12

 

IN WITNESS WHEREOF, the undersigned has caused this Pledge Agreement to be duly executed and delivered as of the date first above written.

 

PLEDGOR:

 

	
 
    	
NEW ENGLAND REALTY ASSOCIATES LIMITED
    
	
 
    	
PARTNERSHIP,   a Massachusetts limited partnership
    
	
Address:
    	
 
    
	
 
    	
 
    
	
 
    	
By: NewReal, Inc., a Massachusetts corporation
    
	
39 Brighton Avenue
    	
 
    
	
Boston, Massachusetts 02134
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
Name: 
    	
Ronald Brown
    
	
 
    	
Title: 
    	
President
    

 

[Signature page to Ownership Interest Pledge and Security Agreement]

 

 

IN WITNESS WHEREOF, the undersigned has caused this Pledge Agreement to be duly executed and delivered as of the date first above written.

 

	
ADMINISTRATIVE AGENT:
    	
KEYBANK, NATIONAL ASSOCIATION,
    
	
 
    	
a national banking association
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Matthew Purtell
    
	
 
    	
Name: 
    	
Matthew Purtell
    
	
 
    	
Title: 
    	
Senior Banker
    

 

[Signature page to Ownership Interest Pledge and Security Agreement]

 

 

SCHEDULE 1

 

OWNERSHIP INTERESTS

 

Description of Ownership Interests of Pledgor:

 

	
 
    	
 
    	
 
    	
 
    	
Percentage
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
of total
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Equity
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Interests
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
of such
    	
 
    	
Percentage
    	
 
    
	
 
    	
 
    	
Class of
    	
 
    	
Subsidiary
    	
 
    	
of Equity
    	
 
    
	
 
    	
 
    	
Equity
    	
 
    	
owned by
    	
 
    	
Interests
    	
 
    
	
Subsidiary
    	
 
    	
Interests
    	
 
    	
Pledgor
    	
 
    	
Pledged
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Boylston Downtown Limited Partnership
    	
 
    	
Partnership Interest
    	
 
    	
100
    	
%
    	
49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Clovelly Apartments Limited   Partnership
    	
 
    	
Economic Interest
    	
 
    	
100
    	
%
    	
49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Commonwealth 1137 Limited Partnership
    	
 
    	
Economic Interest
    	
 
    	
100
    	
%
    	
49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Commonwealth 1144 Limited Partnership
    	
 
    	
Economic Interest
    	
 
    	
100
    	
%
    	
49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Executive Apartments Limited   Partnership
    	
 
    	
Economic Interest
    	
 
    	
100
    	
%
    	
49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Linhart Limited Partnership
    	
 
    	
Partnership Interest
    	
 
    	
100
    	
%
    	
100
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
North Beacon 140 Limited Partnership
    	
 
    	
Economic Interest
    	
 
    	
100
    	
%
    	
49
    	
%
    

 

 

	
Olde English Apartments Limited   Partnership
    	
 
    	
Economic Interest
    	
 
    	
100
    	
%
    	
49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Redwood Hills Limited Partnership
    	
 
    	
Economic Interest
    	
 
    	
100
    	
%
    	
49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
River Drive Limited Partnership
    	
 
    	
Economic Interest
    	
 
    	
100
    	
%
    	
49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Westgate Apartments, LLC
    	
 
    	
LLC Interest
    	
 
    	
100
    	
%
    	
50
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Highland 38 Limited Partnership
    	
 
    	
Economic Interest
    	
 
    	
100
    	
%
    	
49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hamilton WRF 659, LLC
    	
 
    	
LLC Interest
    	
 
    	
100
    	
%
    	
49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
WCB Associates, LLC
    	
 
    	
Economic Interest
    	
 
    	
100
    	
%
    	
49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hamilton Oaks Associates,   LLC
    	
 
    	
Economic Interest
    	
 
    	
100
    	
%
    	
49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
NERA Dean Street Associates,   LLC
    	
 
    	
LLC Interest
    	
 
    	
100
    	
%
    	
50
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
School Street 9, LLC
    	
 
    	
LLC Interest
    	
 
    	
100
    	
%
    	
50
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Westgate Apartments Burlington,   LLC
    	
 
    	
LLC Interest
    	
 
    	
100
    	
%
    	
50
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hamilton Linewt Associates,   LLC
    	
 
    	
LLC Interest
    	
 
    	
100
    	
%
    	
100
    	
%
    

 

 

	
Hamilton Cypress, LLC   (formerly Brookline Barn Associates, LLC)
    	
 
    	
LLC Interest
    	
 
    	
100
    	
%
    	
49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hamilton Green Apartments,   LLC
    	
 
    	
LLC Interest
    	
 
    	
100
    	
%
    	
49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hamilton 1025, LLC
    	
 
    	
Economic Interest
    	
 
    	
50
    	
%
    	
49
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hamilton Minuteman, LLC
    	
 
    	
Economic Interest
    	
 
    	
50
    	
%
    	
49
    	
%
    

 

 

Exhibit A

 

ACKNOWLEDGEMENT AND CONSENT

 

On this 31st day of July, 2014, each of the undersigned hereby acknowledge receipt of a copy of the Ownership Interest Pledge and Security Agreement dated as of July 31, 2014 (the “Pledge Agreement”), made by NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP, a Massachusetts limited partnership thereto in favor of KEYBANK NATIONAL ASSOCIATION, as Administrative Agent. Terms not otherwise defined herein have the respective meanings given them in the Pledge Agreement.

 

Each of the undersigned hereby agrees for the benefit of the Administrative Agent and the Lenders as follows:

 

(a)                                 Each of the undersigned will be bound by, and comply with, the terms of the Pledge Agreement applicable to the undersigned, including, without limitation, Section 6(a).

 

(b)                                 Each of the undersigned will notify the Administrative Agent in writing promptly of the occurrence of any of the events described in Section 6(a) of the Pledge Agreement.

 

(c)                                  Each of the undersigned has registered on its books and records the foregoing pledge and security interest in favor of the Administrative Agent.

 

(d)                                 Each of the undersigned agrees that, from and after the date hereof, the Collateral shall, subject to the terms of the Pledge Agreement, be under the exclusive dominion and control of the Administrative Agent.

 

(e)                                  Each of the undersigned hereby agrees, (i) to comply with any and all instructions (within the meaning of Section 8-102(a)(12) of the UCC) originated by the Administrative Agent regarding any or all of the Ownership Interests without further consent by the Pledgor or any other Person, and (ii) subject to the provisions of the Pledge Agreement, (A) not to comply with any instructions regarding any or all of the Ownership Interests originated by any Person other than the Administrative Agent or a court of competent jurisdiction, and (B) to distribute as instructed by the Administrative Agent all interest, redemptions, distributions, dividends and other payments from time to time paid with respect to any Ownership Interests. In the case of any conflict between any instruction originated by the Administrative Agent and any instruction originated by any other Person, the undersigned shall comply only with the instruction originated by the Administrative Agent.

 

[Remainder of Page Intentionally Left Blank]

 

 

IN WITNESS WHEREOF, intending to be legally bound, the undersigned have caused this Acknowledgement and Consent to be executed as an instrument under seal of the date first above written.

 

	
 
    	
SUBSIDIARIES:
    
	
 
    	
 
    
	
 
    	
BOYLSTON DOWNTOWN LIMITED
    
	
 
    	
PARTNERSHIP,
    
	
 
    	
a Massachusetts limited partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
62 Boylston Street, Inc., its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
CLOVELLY APARTMENTS LIMITED
    
	
 
    	
PARTNERSHIP,
    
	
 
    	
a Massachusetts limited partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
Clovelly Apartments, Inc., its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
COMMONWEALTH 1137 LIMITED
    
	
 
    	
PARTNERSHIP,
    
	
 
    	
a Massachusetts limited partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
Commonwealth Gardens, Inc., its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    

 

[Signature page to Acknowledgment and Consent]

 

 

	
 
    	
COMMONWEALTH 1144 LIMITED
    
	
 
    	
PARTNERSHIP,
    
	
 
    	
a Massachusetts limited partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
Commonwealth Apartments, Inc., its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
EXECUTIVE APARTMENTS LIMITED
    
	
 
    	
PARTNERSHIP, a
    
	
 
    	
Massachusetts limited partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
Executive Apartments, Inc., its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
LINHART LIMITED PARTNERSHIP, a
    
	
 
    	
Massachusetts limited partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
Linhart, Inc., its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
NORTH BEACON 140 LIMITED PARTNERSHIP, a
    
	
 
    	
Massachusetts limited partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
Courtyard on North Beacon, Inc., its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    

 

[Signature page to Acknowledgment and Consent]

 

 

	
 
    	
OLDE ENGLISH APARTMENTS LIMITED
    
	
 
    	
PARTNERSHIP, a Massachusetts limited   partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
Olde English Apartments, Inc., its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
REDWOOD HILLS LIMITED PARTNERSHIP, a
    
	
 
    	
Massachusetts limited partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
Redwood Hills, Inc., its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
RIVER DRIVE LIMITED PARTNERSHIP, a
    
	
 
    	
Massachusetts limited partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
River Drive, Inc., its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
WESTGATE APARTMENTS,   LLC, a Delaware
    
	
 
    	
limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
NewReal, Inc., its Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
HIGHLAND 38 LIMITED PARTNERSHIP, a
    
	
 
    	
Massachusetts limited partnership
    
	
 
    	
 
    
	
 
    	
By: 
    	
Highland 38, Inc., its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    

 

[Signature page to Acknowledgment and Consent]

 

 

	
 
    	
HAMILTON WRF 659, LLC, a Delaware
    
	
 
    	
limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
NewReal, Inc., its Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
WCB ASSOCIATES, LLC, a Massachusetts limited
    
	
 
    	
liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
NewReal, Inc., its Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
HAMILTON OAKS ASSOCIATES, LLC, a Delaware
   limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
NewReal, Inc., its Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
NERA DEAN STREET ASSOCIATES, LLC, a
    
	
 
    	
Delaware
    
	
 
    	
limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
NewReal, Inc., its Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
SCHOOL STREET 9, LLC, a Delaware   limited liability
    
	
 
    	
company
    
	
 
    	
 
    
	
 
    	
By: 
    	
NewReal, Inc., its Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    

 

[Signature page to Acknowledgment and Consent]

 

 

	
 
    	
WESTGATE APARTMENTS BURLINGTON, LLC,
    
	
 
    	
a
    
	
 
    	
Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
NewReal, Inc., its Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
HAMILTON LINEWT ASSOCIATES, LLC, a
    
	
 
    	
Massachusetts limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
NewReal, Inc., its Manager
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
HAMILTON CYPRESS, LLC, a Delaware
    
	
 
    	
limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Harold Brown
    
	
 
    	
 
    	
Harold Brown, Manager
    
	
 
    	
 
    
	
 
    	
HAMILTON GREEN APARTMENTS, LLC, a
    
	
 
    	
Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
NewReal, Inc., its Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    
	
 
    	
 
    
	
 
    	
HAMILTON 1025, LLC, a Delaware limited
    
	
 
    	
liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
NewReal, Inc., its Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    

 

[Signature page to Acknowledgment and Consent]

 

 

	
 
    	
HAMILTON MINUTEMAN, LLC, a Delaware   limited
    
	
 
    	
liability company
    
	
 
    	
 
    
	
 
    	
By: 
    	
NewReal, Inc., its Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ronald Brown
    
	
 
    	
 
    	
Ronald Brown, President
    

 

[Signature page to Acknowledgment and Consent]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00233-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00233-of-00352.parquet"}]]