Document:

Exhibit 10.125

 

Loan No. V   44053

 

FIXED RATE NOTE

 

$39,650,000

 

June       ,
2004

 

FOR VALUE
RECEIVED, A S 60 HWY 75 LOY LAKE, L.P., a Texas limited partnership
(hereinafter referred to as “Borrower”),
promises to pay to the order of JPMORGAN CHASE BANK, a New York banking
corporation, its successors and assigns (hereinafter referred to as “Lender”), at the office of Lender or its
agent, designee, or assignee at 270 Park Avenue, New York, New York 10017,
Attention: Loan Servicing, or at such place as Lender or its agent, designee,
or assignee may from time to time designate in writing, the principal sum of
THIRTY-NINE MILLION SIX HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($39,650,000)
in lawful money of the United States of America, with interest thereon to be
computed on the unpaid principal balance from time to time outstanding at the
Applicable Interest Rate (hereinafter defined) at all times prior to the
occurrence of an Event of Default (as defined in the Security Instrument
[hereinafter defined]), and to be paid in installments as set forth below.
Unless otherwise herein defined, all initially capitalized terms shall have the
meanings given such terms in the Security Instrument.

 

1. PAYMENT TERMS

 

Principal and
interest due under this Note shall be paid as follows:

 

(a)       A
payment of interest only on the date hereof for the period from the date hereof
through June 30, 2004, both inclusive; and

 

(b)       A
constant payment of principal and interest in the amount of $211,639.80 on the
first day of August, 2004 and on the first day of each calendar month
thereafter up to and including the first day of June, 2014;

 

with payments under this
Note to be applied as follows:

 

(i)        First,
to the payment of interest and other costs and charges due in connection with
this Note or the Debt, as Lender may determine in its sole discretion; and

 

(ii)       The
balance shall be applied toward the reduction of the principal sum;

 

and the balance of said
principal sum, together with accrued and unpaid interest and any other amounts
due under this Note shall be due and payable on the first day of July, 2014 or
upon earlier maturity hereof whether by acceleration or otherwise (the “Maturity Date”). Interest on the principal
sum of this Note shall be calculated on the basis of a three hundred sixty
(360) day year and paid for the actual number of days elapsed. All amounts due
under this Note shall be payable without setoff, counterclaim or any other
deduction whatsoever.

 

 

2.
INTEREST

 

The term “Applicable Interest Rate” means from the
date of this Note through and including the Maturity Date, a rate of 4.95% per
annum.

 

3. SECURITY

 

This Note is
secured by, and Lender is entitled to the benefits of, the Security Instrument,
the Assignment, the Environmental Indemnity, and the other Loan Documents
(hereinafter defined). The term “Security
Instrument” means the Deed of Trust and Security Agreement dated the
date hereof given by Borrower for the use and benefit of Lender covering the
estate of Borrower in certain premises as more particularly described therein
(which premises, together with all properties, rights, titles, estates and
interests now or hereafter securing the Debt and/or other obligations of
Borrower under the Loan Documents, are collectively referred to herein as the “Property”). The term “Assignment” means the Assignment of Leases
and Rents of even date herewith executed by Borrower in favor of Lender. The
term “Environmental Indemnity”
means the Environmental Indemnity Agreement of even date herewith executed by
Borrower in favor of Lender. The term “Guaranty”
means that certain Guaranty of even date herewith executed by Steven D. Alvis,
Jay K. Sears, H. Dean Lane, Jr. and Kyle D. Lippman in favor of Lender The term
“Loan Documents” refers
collectively to this Note, the Security Instrument, the Assignment, the
Environmental Indemnity, the Guaranty and any and all other documents executed
in connection with this Note or now or hereafter executed by Borrower and/or
others and by or in favor of Lender, which wholly or partially secure or
guarantee payment of this Note or pertain to the indebtedness evidenced by this
Note.

 

4. LATE FEE

 

If any installment
payable under this Note (including the final installment due on the Maturity
Date) is not received by Lender prior to the seventh (7th) calendar day after the same
is due (without regard to any applicable cure and/or notice period), Borrower
shall pay to Lender upon demand an amount equal to the lesser of (a) five
percent (5%) of such unpaid sum or (b) the maximum amount permitted by applicable
law to defray the expenses incurred by Lender in handling and processing such
delinquent payment and to compensate Lender for the loss of the use of such
delinquent payment, and such amount shall be secured by the Loan Documents.

 

5. DEFAULT AND ACCELERATION

 

So long as an
Event of Default exists Lender may, at its option, without notice or demand to
Borrower, declare the Debt immediately due and payable. All remedies hereunder,
under the Loan Documents and at law or in equity shall be cumulative. In the
event that it should become necessary to employ counsel to collect the Debt or
to protect or foreclose the security for the Debt or to defend against any
claims asserted by Borrower arising from or related to the Loan Documents,
Borrower also agrees to pay to Lender on demand all reasonable costs of
collection or defense incurred by Lender, including reasonable attorneys’ fees
for the services of counsel whether or not suit be brought.

 

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6.
DEFAULT INTEREST

 

So long as an
Event of Default exists, Borrower shall pay interest on the then unpaid
principal sum and any other unpaid amounts due under the Loan Documents at the
rate equal to the lesser of (a) the maximum rate permitted by applicable law, or
(b) the greater of (i) five percent (5%) above the Applicable Interest Rate or
(ii) five percent (5%) above the Prime Rate (hereinafter defined), in effect at
the time of the occurrence of the Event of Default (the “Default Rate”). The term “Prime Rate” means the prime rate reported
in the Money Rates section of The Wall
Street Journal. In the event that The
Wall Street Journal should cease or temporarily interrupt
publication, the term “Prime Rate”
shall mean the daily average prime rate published in another business
newspaper, or business section of a newspaper, of national standing and general
circulation chosen by Lender. In the event that a prime rate is no longer
generally published or is limited, regulated or administered by a governmental
or quasi-governmental body, then Lender shall select a comparable interest rate
index which is readily available and verifiable to Borrower but is beyond
Lender’s control. The Default Rate shall be computed from the occurrence of the
Event of Default until the actual receipt and collection of a sum of money
determined by Lender to be sufficient to cure the Event of Default. Amounts of
interest accrued at the Default Rate shall constitute a portion of the Debt,
and shall be deemed secured by the Loan Documents. This clause, however, shall
not be construed as an agreement or privilege to extend the date of the payment
of the Debt, nor as a waiver of any other right or remedy accruing to Lender by
reason of the occurrence of any Event of Default.

 

7. PREPAYMENT

 

(a)       Except
as otherwise expressly provided in this Section 7, the principal balance
of this Note may not be prepaid in whole or in part (except with respect to the
application of casualty or condemnation proceeds) prior to the Maturity Date.
If during the existence of any Event of Default, Borrower shall tender any
payment to Lender (other than regularly scheduled payment of principal and
interest) or Lender shall receive proceeds (whether through foreclosure or the
exercise of the other remedies available to Lender under the Security
Instrument or the other Loan Documents), which shall constitute a full or
partial prepayment of the principal balance of this Note, such payment or
receipt of proceeds shall constitute a prepayment in violation of the
provisions of this Section 7, and Borrower shall pay in addition to
interest accrued and unpaid on the principal balance of this Note and all other
sums then due under this Note and the other Loan Documents, a prepayment
consideration in an amount equal to the greater of (A) one percent (1%) of the
outstanding principal balance of this Note at the time such prepayment is
tendered or received, or (B) (x) the present value as of the date such
prepayment is tendered or received of the remaining scheduled payments of
principal and interest from the date such prepayment is tendered or received
through the Maturity Date (including any balloon payment) determined by
discounting such payments at the Discount Rate (as hereinafter defined), less
(y) the amount of the prepayment tendered or received. The term “Discount Rate” means the rate which, when
compounded monthly, is equivalent to the Treasury Rate (as hereinafter
defined), when compounded semi-annually. The term “Treasury Rate” means the yield calculated by the linear
interpolation of the yields, as reported in Federal Reserve Statistical Release
H.15-Selected Interest Rates under the heading “U.S. Government
Securities/Treasury Constant Maturities” for the week ending prior to the date
the payment or such proceeds are received, of U.S. Treasury constant maturities
with maturity dates (one longer and one shorter)

 

3

 

most nearly approximating
the Maturity Date. In the event Release H.15 is no longer published, Lender
shall select a comparable publication to determine the Treasury Rate. Lender
shall notify Borrower of the amount and the basis of determination of the
required prepayment consideration, which shall be conclusive, except in the
case of manifest error. Notwithstanding the foregoing, Borrower shall have the
additional privilege to prepay the entire principal balance of this Note
(together with any other sums constituting the Debt) on any scheduled payment
date occurring on or after that date which is three (3) months preceding the
Maturity Date without any fee or prepayment consideration for such privilege.

 

(b)       If
the prepayment results from the application to the Debt of the casualty or
condemnation proceeds from the Property, no prepayment consideration will be
imposed. Partial prepayments of principal resulting from the application of
casualty or condemnation proceeds to the Debt shall not change the amounts of
subsequent monthly installments nor change the dates on which such installments
are due, unless Lender shall otherwise agree in writing.

 

(c)       (i)        Notwithstanding
any provision of this Section 7 to the contrary, at any time after the
earlier of (1) the date which is two (2) years after the “startup day,” within
the meaning of Section 860G(a)(9) of the Internal Revenue Code of 1986, as
amended from time to time, or any successor statute (the “Code”), of a “real
estate mortgage investment conduit,” within the meaning of Section 860D of the
Code, that holds this Note, and (2) a regularly scheduled payment date on or
after that date which is four (4) years after the date of the first monthly
payment due under Section 1(b), and provided no Event of Default (or any event
which with the passage of time or the giving of notice, or both, could become
an Event of Default) has occurred under the Security Instrument or under any of
the Loan Documents and is still continuing, Borrower may cause the release of
the Property (in whole but not in part) from the lien of the Security
Instrument and the other Loan Documents upon the satisfaction of the following
conditions precedent:

 

(A)      the
delivery of not less than sixty (60) days prior written notice to Lender
specifying a regularly scheduled payment date (the “Release Date”) on which the
Defeasance Deposit (hereinafter defined) is to be made;

 

(B)       the
payment to Lender of interest accrued and unpaid on the principal balance of
this Note to and including the Release Date;

 

(C)       the
payment to Lender of all other unpaid sums, not including scheduled interest or
principal payments, due under this Note, the Security Instrument and the other
Loan Documents;

 

(D)      the
payment to Lender of the Defeasance Deposit; and

 

(E)       the
delivery to Lender of:

 

(1)        a
security agreement, in form and substance satisfactory to Lender, creating a
first priority lien on the Defeasance Deposit and the U.S. Obligations
(hereinafter defined) purchased on behalf of Borrower with the Defeasance
Deposit in accordance with this subparagraph (the “Security Agreement”);

 

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(2)        a
release of the Property from the lien of the Security Instrument (for execution
by Lender) in a form appropriate for the jurisdiction in which the Property is
located;

 

(3)        an
officer’s certificate of Borrower certifying that the requirements set forth in
this Subsection (c)(i)
have been satisfied;

 

(4)        an
opinion of counsel in form satisfactory to Lender stating, among other things,
that defeasance of this Note will not cause any adverse consequences to any
REMIC holding the Loan or the holders of any securities issued by the REMIC or
result in a taxation of the income from the Loan to such REMIC or cause a loss
of REMIC status, and that Lender has a perfected first priority security
interest in the Defeasance Deposit and the U.S. Obligations purchased by Lender
on behalf of Borrower;

 

(5)        an
opinion of a certified public accountant acceptable to Lender to the effect
that the Defeasance Deposit is adequate to provide payment on or prior to, but
as close as possible to, all successive scheduled payment dates after the
Release Date upon which interest and principal payments are required under this
Note (including the amounts due on the Maturity Date) and in amounts equal to
the scheduled payments due on such dates under this Note;

 

(6)        evidence
in writing from the applicable Rating Agencies to the effect that such release
will not result in a re-qualification, reduction or withdrawal of any rating in
effect immediately prior to such defeasance for any Securities;

 

(7)        payment
of all of Lender’s expenses incurred in connection with the defeasance
including, without limitation, reasonable attorneys fees; and

 

(8)        such
other certificates, documents or instruments as Lender may reasonably request.

 

In connection with
the conditions set forth in Subsection (c)(i)(E) above, Borrower hereby
appoints Lender as its agent and attorney-in-fact for the purpose of using the
Defeasance Deposit to purchase U.S. Obligations which provide payment on or
prior to, but as close as possible to, all successive scheduled payment dates
after the Release Date upon which interest and principal payments are required
under this Note (including the amounts due on the Maturity Date) and in amounts
equal to the scheduled payments due on such dates under this Note (the “Scheduled
Defeasance Payments”). Borrower, pursuant to the Security Agreement or
other appropriate document, shall authorize and direct that the payments
received from the U.S. Obligations may be made directly to Lender and applied
to satisfy the obligations of the Borrower under this Note.

 

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(ii)       Upon
compliance with the requirements of this Subsection (c), the Property shall be released from
the lien of the Security Instrument and the pledged U.S. Obligations shall be
the sole source of collateral securing this Note. Any portion of the Defeasance
Deposit in excess of the amount necessary to purchase the U.S. Obligations
required by Subsection (c)(i) above and satisfy the Borrower’s
obligations under this Subsection (c) shall be remitted to the Borrower with the release of the Property
from the lien of the Security Instrument.

 

(iii)      For
purposes of this Subsection (c), the following terms shall have the
following meanings:

 

(A)      The
term “Defeasance Deposit” shall mean an
amount equal to 100% of the remaining unpaid principal amount of this Note, the
Yield Maintenance Premium, any reasonable costs and expenses incurred or to be
incurred in the purchase of the U.S. Obligations necessary to meet the
Scheduled Defeasance Payments and any revenue, documentary stamp or intangible
taxes or any other tax or charge due in connection with the transfer of this
Note or otherwise required to accomplish the agreements of this Subsection
(c);

 

(B)       The
term “Yield Maintenance Premium”
shall mean the amount (if any) which, when added to the remaining unpaid
principal amount of this Note, will be sufficient to purchase U.S. Obligations
providing the required Scheduled Defeasance Payments; and

 

(C)       The
term “U.S. Obligations” shall mean direct non-callable obligations
of the United States of America.

 

(iv)      Upon
the release of the Property in accordance with this Subsection (c),
Borrower shall, at Lender’s request, assign all its obligations and rights
under this Note, together with the pledged Defeasance Deposit, to a successor
special purpose entity designated by Borrower and approved by Lender in its
reasonable discretion. Such successor entity shall execute an assumption
agreement in form and substance reasonably satisfactory to Lender pursuant to which
it shall assume Borrower’s obligations under this Note and the Security
Agreement. In connection with such assignment and assumption, Borrower shall
(x) deliver to Lender an opinion of counsel in form and substance and delivered
by counsel satisfactory to Lender in its reasonable discretion stating, among
other things, that such assumption agreement is enforceable against Borrower
and such successor entity in accordance with its terms and that this Note, the
Security Agreement and the other Loan Documents, as so assumed, are enforceable
against such successor entity in accordance with their respective terms, and
(y) pay all costs and expenses incurred by Lender or its agents in connection
with such assignment and assumption (including, without limitation, the review
of the proposed transferee and the preparation of the assumption agreement and
related documentation). In connection with such assignment and assumption,
Borrower and any Guarantor shall be released of all personal liability under
the Note and the other Loan Documents, but only as to acts or events occurring
after the closing of such assignment and assumption.

 

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(v)       Upon
the release of the Property in accordance with this Subsection (c),
Borrower shall have no further right to prepay this Note pursuant to the other
provisions of this Section 7 or otherwise.

 

8. SAVINGS CLAUSE

 

This Note is
subject to the express condition that at no time shall Borrower be obligated or
required to pay interest on the principal balance due hereunder at a rate which
could subject Lender to either civil or criminal liability as a result of being
in excess of the maximum interest rate which Borrower is permitted by
applicable law to contract or agree to pay. If by the terms of this Note,
Borrower is at any time required or obligated to pay interest on the principal
balance due hereunder at a rate in excess of such maximum rate, the Applicable
Interest Rate or the Default Rate, as the case may be, shall be deemed to be immediately
reduced to such maximum rate and all previous payments in excess of the maximum
rate shall be deemed to have been payments in reduction of principal and not on
account of the interest due hereunder. All sums paid or agreed to be paid to
Lender for the use, forbearance, or detention of the Debt, shall, to the extent
permitted by applicable law, be amortized, prorated, allocated, and spread
throughout the full stated term of this Note until payment in full so that the
rate or amount of interest on account of the Debt does not exceed the maximum
lawful rate of interest from time to time in effect and applicable to the Debt
for so long as the Debt is outstanding. Notwithstanding anything to the
contrary contained herein or in any of the other Loan Documents, it is not the
intention of Lender to accelerate the maturity of any interest that has not
accrued at the time of such acceleration or to collect unearned interest at the
time of such acceleration.

 

9. WAIVERS

 

(a)       Except
as specifically provided in the Loan Documents, Borrower and any endorsers,
sureties or guarantors hereof jointly and severally waive presentment and
demand for payment, notice of intent to accelerate maturity, notice of
acceleration of maturity, protest and notice of protest and non-payment, all
applicable exemption rights, valuation and appraisement, notice of demand, and
all other notices in connection with the delivery, acceptance, performance,
default or enforcement of the payment of this Note and the bringing of suit and
diligence in taking any action to collect any sums owing hereunder or in
proceeding against any of the rights and collateral securing payment hereof.
Borrower and any surety, endorser or guarantor hereof agree that any or all of
the following events may occur without notice to them and without in any manner
affecting their liability under or with respect to this Note: (i) the time for
any payments hereunder may be extended from time to time without notice and
consent, (ii) the acceptance by Lender of further collateral, (iii) the release
by Lender of any existing collateral for the payment of this Note, (iv) any and
all renewals, waivers or modifications that may be granted by Lender with
respect to the payment or other provisions of this Note, and/or (v) additional
Borrowers, endorsers, guarantors or sureties may become parties hereto. No
extension of time for the payment of this Note or any installment hereof shall
affect the liability of Borrower under this Note or any endorser or guarantor
hereof even though the Borrower or such endorser or guarantor is not a party to
such agreement.

 

(b)       Failure
of Lender to exercise any of the options granted herein to Lender upon the
happening of one or more of the events giving rise to such options shall not
constitute a waiver

 

7

 

of the right to exercise
the same or any other option at any subsequent time in respect to the same or
any other event. The acceptance by Lender of any payment hereunder that is less
than payment in full of all amounts due and payable at the time of such payment
shall not constitute a waiver of the right to exercise any of the options
granted herein to Lender at that time or at any subsequent time or nullify any
prior exercise of any such option without the express written acknowledgment of
the Lender.

 

10. EXCULPATION

 

(a)       Notwithstanding
anything in the Loan Documents to the contrary, but subject to the
qualifications below, Lender and Borrower agree that:

 

(i)        Borrower
shall be liable upon the Debt and for the other obligations arising under the
Loan Documents to the full extent (but only to the extent) of Borrower’s
interest in the Property; provided,  however, that in the event
(A) of fraud, willful misconduct or material misrepresentation by Borrower, its
general partners, if any, its members, if any, its principals, if any, or by
any Guarantor in connection with the loan evidenced by this Note, (B) of a
breach or default under Section 4.3 or Article 8 of the Security
Instrument, or (C) the Property or any part thereof becomes an asset in a
voluntary bankruptcy or insolvency proceeding, the limitation on recourse set
forth in this Subsection 10(a) will be null and void and completely
inapplicable, and this Note shall be with full recourse to Borrower.

 

(ii)       If
an Event of Default occurs and is continuing, Lender shall not enforce the
liability and obligation of Borrower to perform and observe the obligations
contained in this Note or the Security Instrument by any action or proceeding
wherein a money judgment shall be sought against Borrower, except that Lender
may bring a foreclosure action, action for specific performance or other
appropriate action or proceeding to enable Lender to enforce and realize upon
the Security Instrument or any of the Other Loan Documents and the interest in
the Property, the Rents and any other collateral for which a lien or security
interest has been granted in favor of Lender under the Security Instrument and
the Other Loan Documents; provided,  however, that any judgment in
any action or proceeding shall be enforceable against Borrower only to the
extent of Borrower’s interest in the Property, in the Rents and in any other
collateral for which a lien or security interest has been granted in favor of
Lender under the Security Instrument and the other Loan Documents. Lender, by
accepting this Note and the Security Instrument, agrees that it shall not,
except as otherwise herein provided (and only to the extent herein provided),
sue for, seek or demand any deficiency judgment against Borrower in any action
or proceeding, under or by reason of or in connection with this Note, the Other
Loan Documents or the Security Instrument.

 

(iii)      The provisions of this Subsection 10(a)
shall not (A) constitute a waiver, release or impairment of any obligation
evidenced or secured by this Note, the Other Loan Documents or the Security
Instrument; (B) impair the right of Lender to name Borrower as a party
defendant in any action or suit for judicial foreclosure and sale under the
Security Instrument; (C) affect the validity or enforceability of any
indemnity, guaranty, master lease or similar instrument made in connection with
this Note, the Security Instrument, or the Other Loan Documents; (D) impair the
right of Lender to obtain the appointment of a receiver; (E) impair the
enforcement of the Assignment executed in connection herewith; (F) impair the
right of Lender

 

8

 

to enforce the
provisions of Article 11 of the Security Instrument; or (G) impair the
right of Lender to obtain a deficiency judgment or judgment on this Note
against Borrower if necessary to obtain any insurance proceeds or condemnation
awards to which Lender would otherwise be entitled under the Security
Instrument; provided, however, Lender shall only enforce such judgment
against the insurance proceeds and/or condemnation awards.

 

(iv)      Notwithstanding
the provisions of this Article to the contrary, Borrower shall be personally
liable to Lender for the Losses (as defined under the Guaranty) Lender incurs
due to: (A) the misapplication or misappropriation of Rents by Borrower or
Guarantor; (B) the misapplication or misappropriation of insurance proceeds or
condemnation awards by Borrower or Guarantor; (C) Borrower’s failure to return
or to reimburse Lender for all Personal Property taken from the Property by or
on behalf of Borrower and not replaced with Personal Property of substantially
the same utility and of substantially the same or greater value; (D) any act of
intentional waste or arson by Borrower, any principal, general partner or
member thereof or by any Guarantor; (E) any fees or commissions paid by
Borrower to any principal, affiliate, general partner or member of Borrower or
any Guarantor in violation of the terms of this Note, the Security Instrument
or the Other Loan Documents; (F) Borrower’s failure to comply with the
environmental indemnification provisions of Article 11 of the Security
Instrument; or (G) any breach of the Environmental Indemnity.

 

(b)       Nothing
herein shall be deemed to be a waiver of any right which Lender may have under
Sections 506(a), 506(b), 111l (b) or any other provisions of the Bankruptcy
Code to file a claim for the full amount of the Debt or to require that all
collateral shall continue to secure all of the Debt, owing to Lender in
accordance with this Note, the Security Instrument and the Other Loan
Documents.

 

11. AUTHORITY

 

Borrower (and the
undersigned representative of Borrower, if any) represents that Borrower has
full power, authority and legal right to execute, deliver and perform its
obligations pursuant to this Note and the other Loan Documents and that this
Note and the other Loan Documents constitute legal, valid and binding
obligations of Borrower. Borrower further represents that the loan evidenced by
the Loan Documents was made for business or commercial purposes and not for
personal, family or household use.

 

12. NOTICES

 

All notices or
other communications required or permitted to be given pursuant hereto shall be
given in the manner and be effective as specified in the Security Instrument,
directed to the parties at their respective addresses as provided therein.

 

13. TRANSFER

 

Lender shall have
the unrestricted right at any time or from time to time to sell this Note and
the loan evidenced by this Note and the Loan Documents or participation
interests therein. Borrower shall execute, acknowledge and deliver any and all
instruments reasonably requested by Lender to satisfy such purchasers or
participants that the unpaid indebtedness evidenced by this Note is outstanding
upon the terms and provisions set out in this Note and the other Loan

 

9

 

Documents. To the extent,
if any, specified in such assignment or participation, such assignee(s) or
participant(s) shall have the rights and benefits with respect to this Note and
the other Loan Documents as such assignee(s) or participant(s) would have if
they were the Lender hereunder.

 

14. WAIVER
OF TRIAL BY JURY

 

BORROWER
HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY
JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH
RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS NOTE OR THE OTHER LOAN
DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION
THEREWITH INCLUDING, BUT NOT LIMITED TO, THOSE RELATING TO (A) ALLEGATIONS THAT
A PARTNERSHIP EXISTS BETWEEN LENDER AND BORROWER; (B) USURY OR PENALTIES OR
DAMAGES THEREFOR; (C) ALLEGATIONS OF UNCONSCIONABLE ACTS, DECEPTIVE TRADE
PRACTICE, LACK OF GOOD FAITH OR FAIR DEALING, LACK OF COMMERCIAL
REASONABLENESS, OR SPECIAL RELATIONSHIPS (SUCH AS FIDUCIARY, TRUST OR
CONFIDENTIAL RELATIONSHIP); (D) ALLEGATIONS OF DOMINION, CONTROL, ALTER EGO,
INSTRUMENTALITY, FRAUD, REAL ESTATE FRAUD, MISREPRESENTATION, DURESS, COERCION,
UNDUE INFLUENCE, INTERFERENCE OR NEGLIGENCE; (E) ALLEGATIONS OF TORTIOUS
INTERFERENCE WITH PRESENT OR PROSPECTIVE BUSINESS RELATIONSHIPS OR OF
ANTITRUST; OR (F) SLANDER, LIBEL OR DAMAGE TO REPUTATION. THIS WAIVER OF RIGHT
TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER, AND IS
INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE
RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED TO
FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS
WAIVER BY BORROWER.

 

15.
APPLICABLE LAW

 

This Note shall be governed by and construed in accordance with the
laws of the state in which the Land encumbered by the Security Instrument is
located (without regard to any conflict of laws or principles) and the
applicable laws of the United States of America.

 

16.
JURISDICTION

 

BORROWER HEREBY IRREVOCABLY SUBMITS TO THE
JURISDICTION OF ANY COURT OF COMPETENT JURISDICTION LOCATED IN THE STATE IN
WHICH THE PROPERTY IS LOCATED IN CONNECTION WITH ANY PROCEEDING ARISING OUT OF
OR RELATING TO THIS NOTE.

 

17. NO ORAL
CHANGE

 

The provisions of this Note and the Loan Documents may be amended or
revised only by an instrument in writing signed by the Borrower and Lender.
This Note and all the other Loan Documents embody the final, entire agreement
of Borrower and Lender and supersede any and

 

10

 

all
prior commitments, agreements, representations and understandings, whether
written or oral, relating to the subject matter hereof and thereof and may not
be contradicted or varied by evidence of prior, contemporaneous or subsequent
oral agreements or discussions of Borrower and Lender. There are no oral
agreements between Borrower and Lender.

 

11

 

This FIXED RATE NOTE is
executed as of the day and year first above written.

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  A-S
  60 HWY 75-LOY LAKE, L.P., a Texas limited

  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Sherman
  GP, LLC, a Delaware limited liability

  company, its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Steven D. Alvis

  
	
   

  	
   

  	
  Title:

  	
  Member-ManagerExhibit
10.126

 

Loan Number
                    

 

GUARANTY

 

THIS GUARANTY
(“Guaranty”) is executed as of
June       , 2006, by MINTO BUILDERS (FLORIDA), INC., a Florida corporation (“Guarantor”), for the benefit of WELLS FARGO BANK, N.A., as Trustee under that certain Pooling and
Servicing Agreement dated as of November 23, 2004, for the Registered Holders
of J.P. Morgan Chase Commercial Mortgage Securities Corp., Commercial Mortgage
Pass-Through Certificates, Series 2004-CIBC10 (“Lender”).

 

A.            A-S 60 HWY 75-Loy Lake, L.P., a Texas
limited partnership (“Original  Borrower”), is indebted to Lender with
respect to a loan (“Loan”)
evidenced by that certain Fixed Rate Note dated June 15, 2004, executed by
Original Borrower and payable to the order of JPMorgan Chase Bank, a New York
banking corporation (“Original Lender”),
in the original principal amount of $39,650,000.00 (together with all renewals,
modifications, increases and extensions thereof, the “Note”), which Note is
secured by the liens and security interests in and to the Property created by
and granted under that certain Deed of Trust and Security Agreement, dated June
15, 2004 (the “Security Instrument”),
executed by Original Borrower for the benefit of Original Lender and further
evidenced, secured or governed by the other Loan Documents (as defined in the
Note); and

 

B.            All
of the Original Lender’s rights and interest under the Loan and the Loan
Documents (as defined in the Note) have been duly assigned to Lender.

 

C.            The
Original Borrower desires to transfer (the “Transfer”)
the Property (as defined in the Security Instrument) and assign all its rights
and obligations under the Loan and the Loan Documents to MB Sherman Town Center Limited Partnership, an Illinois limited
partnership (the “Borrower”),
and the Borrower desires to purchase the Property and to assume all of the
rights and obligations of the Original Borrower under the Loan and the Loan
Documents (the “Assumption”).

 

D.            The
Original Borrower has requested Lender’s consent to the Transfer and
Assumption, as required under the Loan Documents.

 

E.             Lender
is not willing to consent to the Transfer and Assumption unless Guarantor
unconditionally guarantees payment and performance to Lender of the Guaranteed
Obligations (as hereinafter defined); and

 

F.             Guarantor
is the owner of a direct or indirect interest in Borrower, and Guarantor will
directly benefit from Lender’s consent to the Transfer and Assumption.

 

NOW,
THEREFORE, as an inducement to Lender to consent to the Transfer and
Assumption, 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:

 

1

 

ARTICLE 1

NATURE AND SCOPE OF GUARANTY

 

Section 1.1             GUARANTY
OF OBLIGATIONS. Guarantor hereby absolutely, 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 of the Note
or otherwise. Guarantor hereby absolutely, irrevocably and unconditionally
covenants and agrees that it is liable for the Guaranteed Obligations as a
primary obligor, and that Guarantor shall fully perform each and every term and
provision hereof.

 

Section 1.2             DEFINITION
OF GUARANTEED OBLIGATIONS. As used herein, the term “Guaranteed Obligations” shall (i) mean each
of the obligations of Borrower under the Environmental Indemnity (as defined in
the Security Instrument), including without limitation the indemnification
provisions contained therein, and (ii) be deemed to include, and Guarantor shall
also be liable for, and shall indemnify, defend and hold Lender harmless from
and against, any and all Losses (as hereinafter defined) incurred or suffered
by Lender to the extent, but only the extent, such Losses arise out of or in
connection with the matters listed below:

 

(a)           the
misapplication or misappropriation of Rents (as defined in the Security
Instrument) by Borrower or Guarantor;

 

(b)           the
misapplication or misappropriation of insurance proceeds or condemnation awards
by Borrower or Guarantor;

 

(c)           Borrower’s
failure to return or to reimburse Lender for all Personal Property (as defined
in the Security Instrument) taken from the Property (as defined in the Security
Instrument) by or on behalf of Borrower and not replaced with Personal Property
of substantially the same utility and of substantially the same or greater
value;

 

(d)           any act of
intentional waste or arson by Borrower, any principal, general partner or
member thereof or by any Indemnitor (as defined in the Security Instrument) or
Guarantor;

 

(e)           any fees
or commissions paid by Borrower to any principal, general partner or member of
Borrower, any Indemnitor or Guarantor in violation of the terms of this
Guaranty, the Security Instrument or the other Loan Documents;

 

(f)            Borrower’s
failure to comply with the environmental indemnification provisions of Section
11 of the Security Instrument; or

 

(g)           any offset by Hobby Lobby Creative
Center (“Hobby Lobby”) pursuant to
Section 4.2 of that certain lease dated September 12, 2003 between Original Borrower
and Hobby Lobby.

 

In addition,
in the event (i) of any fraud, willful misconduct or material misrepresentation
by Borrower, its general partners, if any, its members, if any, its principals,
if any or by any Guarantor or Indemnitor in connection with the Loan, (ii) of a
breach or default under Section 4.3

 

2

 

or Section 8.2 of the Security Instrument, or (iii) the Property
or any part thereof becomes an asset in a voluntary bankruptcy or insolvency proceeding,
then the Guaranteed Obligations shall also include the then unpaid principal
balance of the Debt (as defined in the Security Instrument).

 

For purposes
of this Guaranty, the term “Losses”
includes any and all claims, suits, liabilities (including, without limitation,
strict liabilities), actions, proceedings, obligations, debts, actual damages,
losses, costs, expenses, diminutions in value, fines, penalties, charges, fees,
judgments, awards, amounts paid in settlement, litigation costs and reasonable
attorneys’ fees of whatever kind or nature, and whether or not incurred in
connection with any judicial or administrative proceedings.

 

Section 1.3             NATURE
OF GUARANTY. This Guaranty is an irrevocable, absolute, continuing guaranty
of payment and performance and is not a guaranty of collection. This Guaranty
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.

 

Section 1.4             GUARANTEED
OBLIGATIONS NOT REDUCED BY OFFSET. The Note, 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.

 

Section 1.5             PAYMENT
BY GUARANTOR. If all or any part of the Guaranteed Obligations shall not be
punctually paid when due, whether at maturity or earlier by acceleration or
otherwise, Guarantor shall, immediately upon 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 unpaid 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.

 

Section 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 this Guaranty against Guarantor, first to (i) institute suit or
exhaust its remedies against Borrower or others liable on the Loan or the
Guaranteed Obligations or against 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

 

3

 

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.

 

Section 1.7             WAIVERS.
Guarantor agrees to the provisions of the Loan Documents, and hereby waives
notice of (i) any other loans or additional advances made by Lender to
Borrower, (ii) acceptance of this Guaranty, (iii) any amendment or extension of
the Note 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 Event of Default (as defined in the Security
Instrument), (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, except as otherwise required under applicable law, (viii) protest,
proof of non-payment or default by Borrower, or (ix) any other action at any
time taken or omitted by Lender.

 

Section 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 reasonable 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.

 

Section 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, as
set forth herein, 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.

 

Section 1.10           DEFERMENT
OF RIGHTS OF SUBROGATION AND REIMBURSEMENT.

 

(a)           Notwithstanding
any payment or payments made by Guarantor hereunder, Guarantor will not assert
or exercise any right of Lender or of Guarantor against Borrower to recover the
amount of any payment made by Guarantor to Lender by way of subrogation,
reimbursement, contribution, indemnity, or otherwise arising by contract or
operation of law, and Guarantor shall not have any right of recourse to or any
claim against assets or property of Borrower, whether or not the obligations of
Borrower have been satisfied, all of such rights being herein expressly waived
by Guarantor until the Obligations (as hereinafter defined) have been paid in
full. Until the Obligations have been paid in full, the provisions of this
paragraph shall survive the termination of this Guaranty, and any satisfaction
and discharge of Borrower by virtue of any payment, court order or any
applicable law.

 

4

 

(b)           Notwithstanding
the provisions of Section 1.10(a), Guarantor shall have and be entitled
to all rights of subrogation otherwise provided by applicable law in respect of
any payment it may make or be obligated to make under this Guaranty and to
assert and enforce same, on and after, but at no time prior to, the date (the “Subrogation Trigger Date”) which is 9l days
after the date on which all sums owed to Lender under the Loan Documents (the “Obligations”) have been paid in full, if
and only if (x) no Event of Default of the type described in Section 9.1(d)
or Section 9.1(e) of the Security Instrument with respect to Borrower or
Guarantor has existed at any time on and after the date of this Guaranty up to
and including the Subrogation Trigger Date and (y) the existence of Guarantor’s
rights under this Section 1.10(6) would not make such Guarantor a
creditor (as defined in the Bankruptcy Code, as such term is hereinafter
defined) of Borrower or Guarantor in any insolvency, bankruptcy, reorganization
or similar proceeding commenced on or prior to the Subrogation Trigger Date.

 

Section 1.11           BANKRUPTCY
CODE WAIVER. It is the intention of the parties that the Guarantor shall
not be deemed to be a “creditor” or “creditors” (as defined in Section 101 of
the United States Bankruptcy Code) of Borrower, or any other guarantor, by
reason of the existence of this Guaranty, in the event that Borrower or any
other guarantor, becomes a debtor in any proceeding under the Bankruptcy Code,
and in connection herewith, Guarantor hereby waives any such right as a “creditor”
under the Bankruptcy Code. This waiver is given to induce Lender to consent to
the Transfer and Assumption. After the Loan is paid in full and there shall be
no obligations or liabilities under this Guaranty outstanding, this waiver
shall be deemed to be terminated.

 

Section 1.12           “BORROWER”
The term “Borrower” as used herein
shall include any new or successor corporation, association, partnership
(general or limited), 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.

 

ARTICLE 2

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:

 

Section 2.1             MODIFICATIONS.
Any renewal, extension, increase, modification, alteration or rearrangement of
all or any part of the Guaranteed Obligations, Note, Loan Documents, or other
document, instrument, contract or understanding between Borrower, Lender, or
any other parties with respect to the Guaranteed Obligations.

 

Section 2.2             ADJUSTMENT.
Any adjustment, indulgence, forbearance or compromise that might be granted or
given by Lender to Borrower or Guarantor in connection with the Guaranteed
Obligations.

 

5

 

Section 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.

 

Section 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, exceed 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 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) 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 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 may be found not liable on the Guaranteed Obligations or any part
thereof for any reason.

 

Section 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 or entity 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.

 

Section 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.

 

Section 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.

 

6

 

Section 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 such 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.

 

Section 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.

 

Section 2.10           MERGER.
The reorganization, merger or consolidation of Borrower into or with any other
corporation or entity.

 

Section 2.11           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.

 

Section 2.12           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 or not
contemplated, 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 3

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:

 

Section 3.1             BENEFIT.
Guarantor is the owner of an 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.

 

Section 3.2             FAMILIARITY
AND RELIANCE. Guarantor is familiar with, and has independently reviewed
books and records regarding, the financial condition of Borrower and is
familiar with the value of any and all collateral intended to be created as
security for the payment

 

7

 

of the Note or
Guaranteed Obligations; provided, however, Guarantor is not relying on such
financial condition or the collateral as an inducement to enter into this
Guaranty.

 

Section 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 Guarantor
to execute this Guaranty.

 

Section 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.

 

Section 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 material default (or an event which with notice
or lapse of time or both would constitute a default) under, or result in the
material breach of, any indenture, mortgage, deed of trust, charge, lien, or
any contract, agreement or other instrument to which Guarantor is a party or by
which Guarantor is bound. 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.

 

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

 

Section 3.7             REVIEW
OF DOCUMENTS. Guarantor has examined the Note and all of the Loan
Documents.

 

Section 3.8             LITIGATION.
As of the date hereof and except as otherwise disclosed to Lender, there are no
proceedings against Guarantor pending or, to Guarantor’s current, actual
knowledge, threatened before any court or administrative agency which, if
decided adversely to Guarantor, would materially adversely affect the financial
condition of Guarantor or the authority of Guarantor to enter into this
Guaranty or the validity or enforceability of this Guaranty.

 

Section 3.9             TAX
RETURNS. Guarantor has filed all required federal, state and local tax
returns (or any extensions thereof, if applicable) and has paid all taxes as
shown on such returns as they have become due. No claims have been assessed and
are unpaid with respect to such taxes.

 

ARTICLE 4

SUBORDINATION OF CERTAIN INDEBTEDNESS

 

Section 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 are
direct, contingent, primary, secondary, several, joint and several, or
otherwise, and irrespective of whether such debts or liabilities be evidenced
by a note, contract, open account, or otherwise, and irrespective of the person
or persons in whose favor such

 

8

 

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 to the extent the provisions of Section 1.10 hereof are
unenforceable. Any indebtedness of Borrower to Guarantor now or hereafter
existing (including, but not limited to, any rights to subrogation Guarantor
may have as a result of any payment by Guarantor under this Guaranty), together
with any interest thereon, shall be, and such indebtedness is, hereby deferred,
postponed and subordinated to the prior payment in full of the Debt. Until
payment in full of the Debt (and including interest accruing on the Note after
the commencement of a proceeding by or against Borrower under the Bankruptcy
Reform Act of 1978, as amended, 11 U.S.C. Sections 101 et  seq.,
and the regulations adopted and promulgated pursuant thereto (collectively, the
“Bankruptcy Code”) which interest
the parties agree shall remain a claim that is prior and superior to any claim
of Guarantor notwithstanding any contrary practice, custom or ruling in cases
under the Bankruptcy Code generally), Guarantor agrees not to accept any
payment or satisfaction of any kind of indebtedness of Borrower to Guarantor
and hereby assigns such indebtedness to Lender, including the right to file
proof of claim and to vote thereon in connection with any such proceeding under
the Bankruptcy Code, including the right to vote on any plan of reorganization.

 

Section 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 upon
the Guaranteed Obligations, any such dividend or payment which is otherwise
payable to Guarantor, and which, as between Borrower and Guarantor, shall
constitute a credit upon 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 portion of the Guaranteed
Obligations which would have been unpaid if Lender had not received dividends
or payments upon the Guarantor Claims.

 

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

 

Section 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,

 

9

 

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, mortgages,
deeds of trust, security interest, collateral rights, judgments or other
encumbrances on assets of Borrower held by Guarantor.

 

ARTICLE 5

FINANCIAL REPORTS

 

(a)           Guarantor
shall keep adequate books and records of account in accordance with methods reasonably
acceptable to Lender, consistently applied, and furnish to Lender:

 

(i)            an annual
balance sheet and income statement of Guarantor in the form required by Lender,
prepared and certified by Guarantor, within one hundred twenty (120) days after
the end of each calendar year of Guarantor;

 

(ii)           copies of
all federal tax returns (or extensions thereof, if applicable) filed by
Guarantor, within ninety (90) days after the filing thereof; and

 

(iii)          such
other financial statements as may, from time to time, be reasonably required by
Lender.

 

(b)           Lender and
its accountants shall have the right to examine the records, books, management
and other papers of Guarantor which reflect upon its financial condition, at
any office regularly maintained by Guarantor where the books and records are
located. Lender and its accountants shall have the right to make copies and
extracts from the foregoing records and other papers. In addition, Lender and
its accountants shall have the right to examine and audit the books and records
of Guarantor pertaining to the income, expenses and operation of the Property
during reasonable business hours at any office of Guarantor where the books and
records are located.

 

ARTICLE 6

MISCELLANEOUS

 

Section 6.1             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.

 

Section 6.2             NOTICES.
All notices or other written communications hereunder shall be deemed to have
been properly given (i) upon delivery, if delivered in person or by facsimile
transmission with receipt acknowledged, (ii) one (1) Business Day (hereinafter
defined) after having been deposited for overnight delivery with any reputable
overnight courier service, or (iii)

 

10

 

three (3) Business
Days after having been deposited in any post office or mail depository
regularly maintained by the U.S. Postal Service and sent by registered or
certified mail, postage prepaid, addressed as follows:

 

	
  If to
  Guarantor:

  	
   

  	
  Minto Builders (Florida), Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile
  No.:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  If to Lender:

  	
   

  	
  Wells Fargo Bank, N.A., as Trustee for the
  Registered Holders of J.P. Morgan Chase Commercial Mortgage Securities Corp.,
  Commercial Mortgage Pass-Through Certificates, Series 2004-CIBC10

  
	
   

  	
   

  	
  c/o
  NorthMarq Capital, Inc.

  
	
   

  	
   

  	
  1 Riverway,
  Suite 2400

  
	
   

  	
   

  	
  Houston,
  Texas 77056

  
	
   

  	
   

  	
  Attn: Loan Number 210404

  
	
   

  	
   

  	
   

  
	
  With a copy
  to:

  	
   

  	
  Kilpatrick
  Stockton LLP

  
	
   

  	
   

  	
  1100
  Peachtree Street, Suite 2800

  
	
   

  	
   

  	
  Atlanta,
  Georgia 30309

  
	
   

  	
   

  	
  Attention:
  Mark Palmer, Esq.

  
	
   

  	
   

  	
  Facsimile
  No.: (404) 541-3327

  
						

 

 

or addressed
as such party may from time to time designate by written notice to the other
parties. For purposes of this Section 6.2, the term “Business Day” shall mean a
day on which commercial banks are not authorized or required by law to close in
New York, New York.

 

Any party by
notice to the other parties may designate additional or different addresses for
subsequent notices or communications.

 

Section 6.3             GOVERNING
LAW: JURISDICTION. This Guaranty shall be governed by and construed in
accordance with the laws of the State in which the real property encumbered by
the Security Instrument is located and the applicable laws of the United States
of America. Guarantor hereby irrevocably submits to the jurisdiction of any
court of competent jurisdiction located in the state in which the Property is
located in connection with any proceeding out of or relating to this Guaranty.

 

Section 6.4             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

 

11

 

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

 

Section 6.5             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.

 

Section 6.6             PARTIES
BOUND: ASSIGNMENT. 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.

 

Section 6.7             HEADINGS.
Section headings are for convenience of reference only and shall in no way
affect the interpretation of this Guaranty.

 

Section 6.8             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.

 

Section 6.9             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
or acknowledgment of, or on behalf of, each party, or that the signature of all
persons required to bind any party, or the acknowledgment of such 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, and the respective acknowledgments of, each of
the parties hereto. Any signature or acknowledgment page to any counterpart may
be detached from such counterpart without impairing the legal effect of the
signatures or acknowledgments thereon and thereafter attached to another
counterpart identical thereto except having attached to it additional signature
or acknowledgment pages.

 

Section 6.10           RIGHTS
AND REMEDIES. If Guarantor becomes liable for any indebtedness owing by
Borrower to Lender under the Loan, 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.

 

Section 6.11           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, 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 

 

12

 

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.

 

Section 6.12           WAIVER OF RIGHT TO TRIAL BY JURY. GUARANTOR
HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY
JURY, AND WAIVES 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 MORTGAGE,
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 IS INTENDED TO ENCOMPASS
INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY
JURY WOULD OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS
PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY GUARANTOR.

 

[NO FURTHER TEXT ON THIS PAGE]

 

13

 

This Guaranty
is executed as of the day and year first above written. 

 

	
   

  	
  GUARANTOR:

  
	
   

  	
   

  
	
  Witnesses:

  	
  MINTO BUILDERS (FLORIDA), INC., a

  Florida corporation

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
   

  
										

 

14

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