Document:

Guaranty

 EXHIBIT 10.5 
 FHLMC Loan No. 487784626 
 GUARANTY 
 MULTISTATE 
 (for use in all
jurisdictions except California) 
 REVISION DATE 05/06/05 
 This Guaranty (“Guaranty”) is entered into to be effective as of January 11, 2008, by the undersigned person(s) (the
“Guarantor” jointly and severally if more than one), for the benefit of NorthMarq Capital, Inc., a Minnesota corporation (the “Lender”). 
 RECITALS 
 A. KC Retreat Associates, LLC, a Delaware limited liability company (the
“Borrower”) has requested that Lender make a loan to Borrower in the amount of $13,600,000.00 (the “Loan”). The Loan will be evidenced by a Multifamily Note from Borrower to Lender dated effective as of the
effective date of this Guaranty (the “Note”). The Note will be secured by a Multifamily Mortgage, Assignment of Rents and Security Agreement dated effective as of the effective date of the Note (the “Security
Instrument”), encumbering the Mortgaged Property described in the Security Instrument. 
 B. As a condition to making the
Loan to Borrower, Lender requires that the Guarantor execute this Guaranty. 
 NOW, THEREFORE, in order to induce Lender to make the Loan to
Borrower, and in consideration thereof, Guarantor agrees as follows: 
  

	1.	Defined Terms. “Indebtedness,” “Loan Documents” and “Property Jurisdiction” and other capitalized terms used but not defined in
this Guaranty shall have the meanings assigned to them in the Security Instrument. 

  

	2.	Scope of Guaranty. 

  

	 	(a)	Guarantor hereby absolutely, unconditionally and irrevocably guarantees to Lender: 

  

	 	(i)	the full and prompt payment when due, whether at the Maturity Date or earlier, by reason of acceleration or otherwise, and at all times thereafter, of each of the following:

  

	 	(A)	a portion of the Indebtedness equal to zero percent (0%) of the original principal balance of the Note (the “Base Guaranty”); and 

  

	 	(B)	in addition to the Base Guaranty, all other amounts for which Borrower is personally liable under Sections 9(c), 9(d) and 9(f) of the Note; and 

	 	

	 	

	 	

	 	

	 	(C)	all costs and expenses, including reasonable Attorneys’ Fees and Costs incurred by Lender in enforcing its rights under this Guaranty; and 

  

	 	(ii)	the full and prompt payment and performance when due of all of Borrower’s obligations under Section 18 of the Security Instrument. 

  

	 	(b)	If the Base Guaranty stated in Section 2(a)(i)(A) is 100 percent of the original principal balance of the Note, then (i) the Base Guaranty shall mean and include the full
and complete guaranty of payment of the entire Indebtedness and the performance of all Borrower’s obligations under the Loan Documents; and (ii) for so long as the Base Guaranty remains in effect (there being no limit to the duration of
the Base Guaranty unless otherwise expressly provided in this Guaranty), the obligations guaranteed pursuant to Sections 2(a)(i)(B), 2(a)(i)(C) and Section 3 shall be part of, and not in addition to or in limitation of, the Base Guaranty.

 If the Base Guaranty stated in Section 2(a)(i)(A) is less than 100 percent of the original principal balance of the
Note, then this Section 2(b) shall be completely inapplicable and shall be treated as if not a part of this Guaranty. 
  

	 	(c)	If Guarantor is not liable for the entire Indebtedness, then all payments made by Borrower with respect to the Indebtedness and all amounts received by Lender from the enforcement
of its rights under the Security Instrument and the other Loan Documents (except this Guaranty) shall be applied first to the portion of the Indebtedness for which neither Borrower nor Guarantor has personal liability. 

  

	3.	Additional Guaranty Relating to Bankruptcy. 

  

	 	(a)	Notwithstanding any limitation on liability provided for elsewhere in this Guaranty, Guarantor hereby absolutely, unconditionally and irrevocably guarantees to Lender the full and
prompt payment when due, whether at the Maturity Date or earlier, by reason of acceleration or otherwise, and at all times thereafter, the entire Indebtedness, in the event that: 

  

	 	(i)	Borrower voluntarily files for bankruptcy protection under the United States Bankruptcy Code; or 

  

	 	(ii)	Borrower voluntarily becomes subject to any reorganization, receivership, insolvency proceeding, or other similar proceeding pursuant to any other federal or state law affecting
debtor and creditor rights; or 

  

	 	(iii)	an order of relief is entered against Borrower pursuant to the United States Bankruptcy Code or other federal or state law affecting debtor and creditor rights in any involuntary
bankruptcy proceeding initiated or joined in by a “Related Party.” 

  

			
		  	

	 	(b)	For purposes of this Section, the term “Related Party” means: 

  

	 	(i)	Borrower or Guarantor; and 

  

	 	(ii)	any person or entity that holds, directly or indirectly, any ownership interest in or right to manage Borrower or Guarantor, including without limitation, any shareholder, member or
partner of Borrower or Guarantor; and 

  

	 	(iii)	any person or entity in which any ownership interest (direct or indirect) or right to manage is held by Borrower, Guarantor or any partner, shareholder or member of, or any other
person or entity holding an interest in, Borrower or Guarantor; and 

  

	 	(iv)	any other creditor of Borrower that is related by blood, marriage or adoption to Borrower, Guarantor or any partner, shareholder or member of, or any other person or entity holding
an interest in, Borrower or Guarantor. 

  

	 	(c)	If Borrower, Guarantor or any Related Party has solicited creditors to initiate or participate in any proceeding referred to in this Section, regardless of whether any of the
creditors solicited actually initiates or participates in the proceeding, then such proceeding shall be considered as having been initiated by a Related Party. 

  

	4.	Guarantor’s Obligations Survive Foreclosure. The obligations of Guarantor under this Guaranty shall survive any foreclosure proceeding, any foreclosure sale, any
delivery of any deed in lieu of foreclosure, and any release of record of the Security Instrument, and, in addition, the obligations of Guarantor relating to Borrower’s obligations under Section 18 of the Security Instrument shall survive
any repayment or discharge of the Indebtedness. Notwithstanding the foregoing, if Lender has never been a mortgagee-in-possession of or held title to the Mortgaged Property, Guarantor shall have no obligation under this Guaranty relating to
Borrower’s obligations under Section 18 of the Security Instrument after the date of the release of record of the lien of the Security Instrument as a result of the payment in full of the Indebtedness on the Maturity Date or by voluntary
prepayment in full. 

  

	5.	Guaranty of Payment and Performance. Guarantor’s obligations under this Guaranty constitute an unconditional guaranty of payment and performance and not merely a
guaranty of collection. 

  

	6.	No Demand by Lender Necessary; Waivers by Guarantor. The obligations of Guarantor under this Guaranty shall be performed without demand by Lender and shall be unconditional
regardless of the genuineness, validity, regularity or enforceability of the Note, the Security Instrument, or any other Loan Document, and without regard to any other circumstance which might otherwise constitute a legal or equitable discharge of a
surety, a guarantor, a borrower or a mortgagor. Guarantor hereby waives, to the fullest extent permitted by applicable law: 

  

	 	(a)	the benefit of all principles or provisions of law, statutory or otherwise, which are or might be in conflict with the terms of this Guaranty and agrees that Guarantor’s
obligations shall not be affected by any circumstances, whether or not referred to in this Guaranty, which might otherwise constitute a legal or equitable discharge of a surety, a guarantor, a borrower or a mortgagor; 

  

			
		  	

	 	(b)	the benefits of any right of discharge under any and all statutes or other laws relating to a guarantor, a surety, a borrower or a mortgagor, and any other rights of a surety, a
guarantor, a borrower or a mortgagor under such statutes or laws; 

  

	 	(c)	diligence in collecting the Indebtedness, presentment, demand for payment, protest, all notices with respect to the Note and this Guaranty which may be required by statute, rule of
law or otherwise to preserve Lender’s rights against Guarantor under this Guaranty, including, but not limited to, notice of acceptance, notice of any amendment of the Loan Documents, notice of the occurrence of any default or Event of Default,
notice of intent to accelerate, notice of acceleration, notice of dishonor, notice of foreclosure, notice of protest, and notice of the incurring by Borrower of any obligation or indebtedness; 

  

	 	(d)	all rights to cause a marshalling of the Borrower’s assets or to require Lender to: 

  

	 	(i)	proceed against Borrower or any other guarantor of Borrower’s payment or performance under the Loan Documents (an “Other Guarantor”); 

  

	 	(ii)	proceed against any general partner of Borrower or any Other Guarantor if Borrower or any Other Guarantor is a partnership; 

  

	 	(iii)	proceed against or exhaust any collateral held by Lender to secure the repayment of the Indebtedness; or 

  

	 	(iv)	pursue any other remedy it may now or hereafter have against Borrower, or, if Borrower is a partnership, any general partner of Borrower; 

  

	 	(e)	any right to object to the timing, manner or conduct of Lender’s enforcement of its rights under any of the Loan Documents; and 

  

	 	(f)	any right to revoke this Guaranty as to any future advances by Lender under the terms of the Security Instrument to protect Lender’s interest in the Mortgaged Property.

  

	7.	Modification of Loan Documents. At any time or from time to time and any number of times, without notice to Guarantor and without affecting the liability of Guarantor, Lender
may: 

  

	 	(a)	extend the time for payment of the principal of or interest on the Indebtedness or renew the Indebtedness in whole or in part; 

  

			
		  	

	 	(b)	extend the time for Borrower’s performance of or compliance with any covenant or agreement contained in the Note, the Security Instrument or any other Loan Document, whether
presently existing or hereinafter entered into, or waive such performance or compliance; 

  

	 	(c)	accelerate the Maturity Date of the Indebtedness as provided in the Note, the Security Instrument, or any other Loan Document; 

  

	 	(d)	with Borrower, modify or amend the Note, the Security Instrument, or any other Loan Document in any respect, including, but not limited to, an increase in the principal amount;
and/or 

  

	 	(e)	modify, exchange, surrender or otherwise deal with any security for the Indebtedness or accept additional security that is pledged or mortgaged for the Indebtedness.

  

	8.	Joint and Several Liability. The obligations of Guarantor (and each party named as a Guarantor in this Guaranty) and any Other Guarantor shall be joint and several. Lender,
in its sole and absolute discretion, may: 

  

	 	(a)	bring suit against Guarantor, or any one or more of the parties named as a Guarantor in this Guaranty, and any Other Guarantor, jointly and severally, or against any one or more of
them; 

  

	 	(b)	compromise or settle with Guarantor, any one or more of the parties named as a Guarantor in this Guaranty, or any Other Guarantor, for such consideration as Lender may deem proper;

  

	 	(c)	release one or more of the parties named as a Guarantor in this Guaranty, or any Other Guarantor, from liability; and 

  

	 	(d)	otherwise deal with Guarantor and any Other Guarantor, or any one or more of them, in any manner, and no such action shall impair the rights of Lender to collect from Guarantor any
amount guaranteed by Guarantor under this Guaranty. 

  

	9.	Subordination of Borrower’s Indebtedness to Guarantor. Any indebtedness of Borrower held by Guarantor now or in the future is and shall be subordinated to the
Indebtedness and Guarantor shall collect, enforce and receive any such indebtedness of Borrower as trustee for Lender, but without reducing or affecting in any manner the liability of Guarantor under the other provisions of this Guaranty.

  

	10.	Waiver of Subrogation. Guarantor shall have no right of, and hereby waives any claim for, subrogation or reimbursement against Borrower or any general partner of Borrower by
reason of any payment by Guarantor under this Guaranty, whether such right or claim arises at law or in equity or under any contract or statute, until the Indebtedness has been paid in full and there has expired the maximum possible period
thereafter during which any payment made by Borrower to Lender with respect to the Indebtedness could be deemed a preference under the United States Bankruptcy Code. 

  

			
		  	

	11.	Preference. If any payment by Borrower is held to constitute a preference under any applicable bankruptcy, insolvency, or similar laws, or if for any other reason Lender is
required to refund any sums to Borrower, such refund shall not constitute a release of any liability of Guarantor under this Guaranty. It is the intention of Lender and Guarantor that Guarantor’s obligations under this Guaranty shall not be
discharged except by Guarantor’s performance of such obligations and then only to the extent of such performance. 

  

	12.	Financial Statements. Guarantor, from time to time upon written request by Lender, shall deliver to Lender such financial statements as Lender may reasonably require.

  

	13.	Assignment. Lender may assign its rights under this Guaranty in whole or in part and upon any such assignment, all the terms and provisions of this Guaranty shall inure to
the benefit of such assignee to the extent so assigned. The terms used to designate any of the parties herein shall be deemed to include the heirs, legal representatives, successors and assigns of such parties, and the term “Lender” shall
also include any lawful owner, holder or pledgee of the Note. Reference in this Guaranty to “person” or “persons” shall be deemed to include individuals and entities. 

  

	14.	Complete and Final Agreement. This Guaranty and the other Loan Documents represent the final agreement between the parties and may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements. There are no unwritten oral agreements between the parties. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Guaranty and
the other Loan Documents. Guarantor acknowledges that Guarantor has received a copy of the Note and all other Loan Documents. Neither this Guaranty nor any of its provisions may be waived, modified, amended, discharged, or terminated except by a
writing signed by the party against which the enforcement of the waiver, modification, amendment, discharge, or termination is sought, and then only to the extent set forth in that writing. 

  

	15.	Governing Law. This Guaranty shall be governed by and enforced in accordance with the laws of the Property Jurisdiction, without giving effect to the choice of law principles
of the Property Jurisdiction that would require the application of the laws of a jurisdiction other than the Property Jurisdiction. 

  

	16.	Jurisdiction; Venue. Guarantor agrees that any controversy arising under or in relation to this Guaranty may be litigated in the Property Jurisdiction, and that the state and
federal courts and authorities with jurisdiction in the Property Jurisdiction shall have jurisdiction over all controversies which shall arise under or in relation to this Guaranty. Guarantor irrevocably consents to service, jurisdiction and venue
of such courts for any such litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise. However, nothing herein is intended to limit Lender’s right to bring any suit, action or
proceeding relating to matters arising under this Guaranty against Guarantor or any of Guarantor’s assets in any court of any other jurisdiction. 

  

			
		  	

	17.	Guarantor’s Interest in Borrower. Guarantor represents to Lender that Guarantor has a direct or indirect ownership or other financial interest in Borrower and/or will
otherwise derive a material financial benefit from the making of the Loan. 

  

	18.	STATE-SPECIFIC PROVISIONS: N/A. 

  

	19.	Residence; Community Property Provision. 

  

	 	(a)	Guarantor represents and warrants that his state of residence is Missouri. 

  

	 	(b)	Guarantor warrants and represents that he is: 

  

	 	 ̈	single 

  

	 	x	married 

  

	20.	GUARANTOR AND LENDER EACH (A) AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS GUARANTY OR THE RELATIONSHIP BETWEEN THE PARTIES AS GUARANTOR
AND LENDER THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH
PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL. 

 ATTACHED EXHIBIT. The following
Exhibit is attached to this Guaranty: 
 |X| Exhibit A Modifications to Guaranty 
 [The remainder of this page intentionally left blank; signature page follows.] 
  

			
		  	

 IN WITNESS WHEREOF, Guarantor has signed and delivered this Guaranty under seal or has caused this
Guaranty to be signed and delivered under seal by its duly authorized representative. 
  

	
	 /s/ JAMES E. LIPPERT

	 James E. Lippert

  

					
	STATE OF MISSOURI	  	)	  	
		  	)	  	ss.

							
	COUNTY OF	 	  
	  	)	  	

 On this      day of January, in the year 2008, before me, a Notary
Public in and for said State, personally appeared James E. Lippert, known to me to be the person who executed the within instrument, and acknowledged to me that he executed the same for the purposes therein stated. 
  

	
	  

	Official Signature
	
	  

	Official Seal

  

			
	 Name and Address of Guarantor:

		
	 Name:
	 	James E. Lippert
	 Address:
	 	 2300 Main Street, Suite 910
 Kansas City, Missouri
64108

  

			
	Signature Page – Retreat of Shawnee – Guaranty	  	PAGE S-1

 EXHIBIT A 
 MODIFICATIONS TO GUARANTY 
 The following modifications are made to the text of the Guaranty that precedes this Exhibit:

 NONE. 
  

			
		  	PAGE A-1Repair Escrow Agreement

 EXHIBIT 10.6 
 FHLMC Loan No. 487784626 
 REPAIR ESCROW AGREEMENT 
 (REVISION DATE 01-31-2003) 
 This
REPAIR ESCROW AGREEMENT (“Agreement”) is made and entered into, to be effective as of January 11, 2008, by and between KC Retreat Associates, LLC, a Delaware limited liability company (“Borrower”), and NorthMarq Capital,
Inc., a Minnesota corporation (“Lender”) and its successors and assigns. 
 WITNESSETH: 
 WHEREAS, Lender has agreed to make and Borrower has agreed to accept the Loan, which is to be evidenced by the Note and secured by the Security
Instrument encumbering the Land described on Exhibit “A” attached to this Agreement; 
 WHEREAS, as a condition of making
the Loan, Lender is requiring Borrower to make the Repairs to the Improvements, which Repairs are generally described in the Schedule of Work attached to this Agreement as Exhibit “B”; and 
 WHEREAS, in order to assure that the Repairs are made and paid for in a timely manner, Lender is requiring Borrower to establish the Repair Escrow Fund
with Lender pursuant to the terms of this Agreement. 
 NOW, THEREFORE, for and in consideration of the Loan, the mutual promises and
covenants herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lender and Borrower agree as follows: 
  

	1.	Definitions. The following terms used in this Agreement shall have the meanings set forth below in this Section. Any term used in this Agreement and not defined shall have
the meaning given to that term in the Security Instrument. 

  

	 	(a)	“Completion Date” means the date that is 180 days after the effective date of this Agreement “Immediate Repairs” described on Exhibit “B” and
two (2) years after the effective date of this Agreement for the “GFI Replacement Repairs” described on Exhibit “B”. 

  

	 	(b)	“Disbursement Request” means Borrower’s written requests to Lender in the form attached to this Agreement as Exhibit “C” for the disbursement of
money from the Repair Escrow Fund pursuant to Section 3 below, which requests shall not be made more often than once every thirty (30) days during the term of this Agreement. 

  

	 	(c)	“Improvements” means the buildings and improvements situated upon the Land, currently constituting a multifamily apartment project known as Retreat of Shawnee.

	 	(d)	“Loan” means the loan from Lender to Borrower in the original principal amount of Thirteen Million Six Hundred Thousand and No/100 Dollars ($13,600,000.00), as evidenced
by the Note and secured by the Security Instrument. 

  

	 	(e)	“Minimum Disbursement Request Amount” means Twenty Five Thousand and No/100 Dollars ($25,000.00). 

  

	 	(f)	“Property” means the Land and Improvements. 

  

	 	(g)	“Repairs” means the repairs to be made to the Property, as described on the Schedule of Work or as otherwise required by Lender in accordance with this Agreement.

  

	 	(h)	“Repair Escrow Deposit” means the sum of Four Hundred Twenty Eight Thousand Nine Hundred Seventy Nine and No/100 Dollars ($428,979.00) deposited into escrow with Lender as
of the effective date of this Agreement, together with interest, if any, to be held in accordance with the provisions of this Agreement. 

  

	 	(i)	“Repair Escrow Fund” means the account established by this Agreement into which the Repair Escrow Deposit is deposited. 

  

	 	(j)	“Schedule of Work” means the schedule of work for the Repairs attached to this Agreement as Exhibit “B”. 

  

	 	(k)	“Security Instrument” means the mortgage, deed of trust, deed to secure debt, or other similar security instrument encumbering the Property and securing Borrower’s
performance of its Loan obligations. 

  

	2.	Repair Escrow Fund. 

  

	 	(a)	Establishment. Lender acknowledges that Borrower has established the Repair Escrow Fund by depositing the amount of the Repair Escrow Deposit with Lender. Borrower and Lender
agree that all moneys deposited into the Repair Escrow Fund shall be held by Lender in an interest bearing account if Lender estimates that the Repairs will require longer than ninety (90) days to complete. Lender shall not be required to hold
the Repair Escrow Deposit in an interest bearing account if the Repairs are required to be completed in ninety (90) days or less. Any interest earned on such moneys shall be added to the principal balance of the Repair Escrow Fund and disbursed
in accordance with the provisions of this Agreement. Lender shall be entitled to deduct from the Repair Escrow Fund a one- time fee in the amount Five Hundred and No/100 Dollars ($500.00) for establishing the Repair Escrow Fund. Lender shall not be
responsible for any losses resulting from investment of moneys in the Repair Escrow Fund or for obtaining any specific level or percentage of earnings on such investment. 

  

 PAGE 2 

	 	(b)	Use. The Repair Escrow Deposit shall, except as otherwise stated in this Agreement, be used for the purpose of paying, or reimbursing Borrower for, the costs of the Repairs.

  

	3.	Disbursements. From time to time, as construction and completion of the Repairs progresses, upon Borrower’s submission of a Disbursement Request in the form attached to
this Agreement as Exhibit C, and provided that Borrower is in full compliance with all the applicable conditions set forth in this Agreement and in the other Loan Documents, Lender shall make disbursements from the Repair Escrow Fund for
payment or reimbursement of the actual costs of the Repairs. Borrower must sign the Borrower’s Disbursement Request and Borrower must include with its Disbursement Request a report setting out the progress of the Repairs and any other reports
or information relating to the construction of the Repairs that may be reasonably requested by Lender. Borrower must include with each Disbursement Request copies of any applicable invoices and/or bills and appropriate lien waivers for the prior
period for which disbursement was made, executed by all contractors and suppliers supplying labor or materials for the Repairs. Unless waived by Lender in writing, Borrower must also include a report prepared by the professional engineer employed by
Lender as to the status of the Repairs. Except for the final Disbursement Request, no Disbursement Request shall be for an amount less than the Minimum Disbursement Request Amount. 

  

	4.	Reporting Requirements; Completion. Prior to receiving the final disbursement from the Repair Escrow Fund, Borrower must deliver to Lender, in addition to the information
required by Section 3 above, the following: 

  

	 	(a)	Contractor’s Certificate. A certificate signed by each major contractor and supplier of materials, as reasonably determined by Lender, engaged to provide labor or
materials for the Repairs to the effect that such contractor or supplier has been paid in full for all work completed and that the portion of the Repairs provided by such contractor or supplier has been fully completed in accordance with the plans
and specifications (if any) provided to it by Borrower and that such portion of the Repairs is in compliance with all applicable building codes and other rules and regulations promulgated by applicable regulatory or governmental authorities;

  

	 	(b)	Borrower’s Certificate. A certificate signed by Borrower to the effect that the Repairs have been fully paid for, that all money disbursed hereunder has been used for
the Repairs and no claim or claims exist against the Borrower or against the Property out of which a lien based on furnishing labor or material exists or might ripen. Borrower may except from the certificate described in the preceding sentence any
claim or claims that Borrower intends to contest, provided that any such claim or claims are described in Borrower’s certificate and Borrower certifies to Lender that the money in the Repair Escrow Fund is sufficient to make payment of the full
amount which might in any event be payable in order to satisfy such claim or claims. If required by Lender, Borrower also shall certify to Lender that such portion of the Repairs is in compliance with all applicable zoning ordinances;

  

 PAGE 3 

	 	(c)	Engineer’s Certificate. A certificate signed by the professional engineer employed by Lender to the effect that the Repairs have been completed in a good and workmanlike
manner in compliance with the Schedule of Work and all applicable building codes, zoning ordinances and other rules and regulations promulgated by applicable regulatory or governmental authorities; and 

  

	 	(d)	Other Certificates. Any other certificates of approval, acceptance or compliance required by Lender from or by the city, county, state or federal governmental authorities
having jurisdiction over the Property and the Repairs. 

  

	5.	Indirect and Excess Disbursements. Lender, in its sole judgment, is authorized to hold, use and disburse from the Repair Escrow Fund to pay any and all costs, charges and
expenses whatsoever and howsoever incurred or required in connection with the construction and completion of the Repairs, or in the payment or performance of any obligation of Borrower to Lender. If Lender, for purposes specified in this
Section 5, shall elect to pay any portion of the money in the Repair Escrow Fund to parties other than Borrower, then Lender may do so, at any time and from time to time, and the amount of advances to which Borrower shall be entitled under this
Agreement shall be correspondingly reduced. 

  

	6.	Schedule of Work. All disbursements from the Repair Escrow Fund shall be limited to the costs of those items set forth on the Schedule of Work attached to this Agreement as
Exhibit “B”. 

  

	7.	Repairs. Borrower covenants and agrees with Lender as follows: 

  

	 	(a)	Commencement of Work. Except as set forth on Exhibit D, prior to the recordation of the Security Instrument, no work of any kind has been or will be commenced or performed
upon the Property and no materials or equipment have been or will be delivered to or upon the Property. In the event that any work of any kind has been commenced or performed upon the Property, or in the event that any materials or equipment have
been ordered or delivered to or upon the Property, then (i) prior to the execution of the Security Instrument the Borrower shall fully disclose in writing to the title insurance company issuing the mortgagee title insurance policy insuring the
lien of the Security Instrument that work has been commenced or performed on the Property, or materials or equipment have been ordered or delivered to or upon the Property, (ii) prior to the execution of the Security Instrument Borrower shall
have obtained and delivered to Lender and the title company issuing the mortgagee title insurance policy insuring the lien of the Security Instrument lien waivers from all contractors, subcontractors, suppliers, or any other applicable party,
pertaining to all work commenced or performed on the Property, or materials or equipment ordered or delivered to or upon the Property, and (iii) the final mortgagee’s title insurance policy insuring the lien of the Security Instrument
shall take no exception from coverage for any mechanics or materialmen’s liens. 

  

	 	(b)	 Construction. Borrower will commence the Repairs as soon as practicable after the date of this Agreement and will diligently proceed with and complete the
Repairs 

  

 PAGE 4 

	 	 
on or before the Completion Date in a workmanlike manner and in accordance with the Schedule of Work, good building practices and all applicable laws,
ordinances, rules and regulations. 

  

	 	(c)	Changes in Schedule of Work. Without the prior written consent of Lender, Borrower will make no departures from or alterations to the Schedule of Work.

  

	 	(d)	Inspections. Borrower will permit Lender or any person designated by Lender (including without limitation a professional inspection engineer) and any interested governmental
authority, at any time and from time to time, to inspect the Repairs and Improvements and to examine and copy all of Borrower’s books and records and all contracts and bills pertaining to the Repairs and Improvements. Lender shall be entitled
to deduct from the Repair Escrow Fund reasonable fees for performing any such inspections and/or an amount sufficient to reimburse Lender for all fees and expenses charged by any professional inspection engineer employed by Lender in connection with
any such inspection. Borrower agrees to cause the replacement of any material or work that is defective, unworkmanlike, does not comply with any applicable law, ordinance, rule or regulation, or does not comply with the requirements of this
Agreement, as determined by Lender. Prior to and as a condition of the final disbursement of funds from the Repair Escrow Fund, Lender shall inspect or cause to be inspected the Repairs and the Improvements to determine that all Repairs, including
but not limited to interior and exterior repairs, have been completed in a manner acceptable to Lender. 

  

	 	(e)	Purchases. Without the prior written consent of Lender, no materials, machinery, equipment, fixtures or any other part of the Repairs shall be purchased or installed under
conditional sale contracts or lease agreements, or any other arrangement wherein title to such Repairs is retained or subjected to a purchase money security interest, or the right is reserved or accrues to anyone to remove or repossess any such
Repairs, or to consider them as personal property. 

  

	8.	Lien Protection. Borrower shall promptly pay or cause to be paid, when due, all costs, charges and expenses incurred in connection with the construction and completion of the
Repairs, and shall keep the Property free and clear of any and all liens other than the lien of the Security Instrument and any other junior lien which may be consented to by Lender. 

  

	9.	Adverse Claims. Borrower shall promptly advise Lender in writing of any litigation, liens, or claims affecting the Property and of all complaints and charges made by any
governmental authority or any governmental department, bureau, commission or agency exercising supervision or control over Borrower or its business, which may delay or adversely affect the Repairs. 

  

	10.	Compliance With Laws; Insurance Requirements. 

  

	 	(a)	 Compliance With Laws. All Repairs shall comply with all applicable laws, ordinances, rules and regulations of all governmental authorities having
jurisdiction 

  

 PAGE 5 

	 	 
over the Property, and with all applicable insurance requirements including, without limitation, applicable building codes, special use permits,
environmental regulations, and requirements of insurance underwriters. 

  

	 	(b)	Insurance Requirements. In addition to any insurance required under the Loan Documents, Borrower shall provide or cause to be provided workers’ compensation,
builder’s risk (if required by Lender), and public liability insurance and other insurance required under applicable law in connection with any of the Repairs. All such policies shall be in form and amount satisfactory to Lender. All such
policies that can be endorsed with standard mortgage clauses making losses payable to Lender or its assigns shall be so endorsed. The originals of such policies shall be deposited with Lender. 

  

	11.	Use of Repair Escrow Fund. Borrower will accept disbursements from the Repair Escrow Fund in accordance with the provisions of this Agreement and will use, or cause to be
used, each such disbursement solely to pay for materials, labor and services, or to pay costs and expenses for which such disbursement is requested. 

  

	12.	Conditions Precedent. Lender shall not be obligated to make any disbursement from the Repair Escrow Fund to or for the benefit of Borrower unless at the time of each
Disbursement Request all of the following conditions prevail: 

  

	 	(a)	No Default. There shall exist no condition, event or act that would constitute a default (with or without notice and/or lapse of time) under this Agreement or any other Loan
Document. 

  

	 	(b)	Representations and Warranties. All representations and warranties of Borrower set forth in this Agreement and in the Loan Documents are true. 

  

	 	(c)	Continuing Compliance. Borrower shall be in full compliance with the provisions of this Agreement, the other Loan Documents and any request or demand by Lender permitted
hereby. 

  

	 	(d)	No Lien Claim. No lien or claim based on furnishing labor or materials has been filed or asserted against the Property, unless Borrower has properly provided bond or other
security against loss in accordance with applicable law. 

  

	 	(e)	Approvals. All licenses, permits, and approvals of governmental authorities required for the Repairs as completed to the applicable stage have been obtained.

  

	 	(f)	Legal Compliance. The Repairs as completed to the applicable stage do not violate any laws, ordinances, rules or regulations, or building lines or restrictions applicable to
the Property. 

  

	13.	 Right to Complete Repairs. If Borrower abandons or fails to proceed diligently with the Repairs or otherwise is in default under this Agreement, Lender shall
have the right (but not 

  

 PAGE 6 

	 	 
the obligation) to enter upon the Property and take over and cause the completion of the Repairs. Any contracts entered into or indebtedness incurred upon
the exercise of such right may be in the name of Borrower, and Lender is hereby irrevocably appointed the attorney in fact of Borrower, such appointment being coupled with an interest, to enter into such contracts, incur such obligations, enforce
any contracts or agreements made by or on behalf of Borrower (including the prosecution and defense of all actions and proceedings in connection with the Repairs and the payment, settlement, or compromise of all claims for materials and work
performed in connection with the Repairs) and do any and all things necessary or proper to complete the Repairs including signing Borrower’s name to any contracts and documents as may be deemed necessary by Lender. In no event shall Lender be
required to expend its own funds to complete the Repairs, but Lender may, in Lender’s sole discretion, advance such funds. Any funds advanced shall be added to the outstanding balance of the Note, secured by the Security Instrument and payable
to Lender by Borrower in accordance with the provisions of the Security Instrument pertaining to the protection of Lender’s security and advances made by Lender. Borrower waives any and all claims it may have against Lender for materials used,
work performed or resultant damage to the Property. 

  

	14.	Insufficient Account. If Lender determines in its reasonable discretion that the money in the Repair Escrow Fund is insufficient to pay for the Repairs, Lender shall so
notify Borrower, in writing, and as soon as possible (but in no event later than twenty (20) days after such notice) Borrower shall pay to Lender an amount, in cash, equal to such deficiency, which amount shall be placed in the Repair Escrow
Fund by Lender. 

  

	15.	Security Agreement. To secure Borrower’s obligations under this Agreement and to further secure Borrower’s obligations under the Note, Security Instrument and other
Loan Documents, Borrower hereby conveys, pledges, transfers and grants to Lender a security interest pursuant to the Uniform Commercial Code of the Property Jurisdiction and other applicable laws in and to all money in the Repair Escrow Fund as such
may increase or decrease from time to time and all interest and dividends thereon and all proceeds thereof. 

  

	16.	Post Default. If Borrower defaults in the performance of its obligations under this Agreement or under the Note, Security Instrument or any other Loan Document, Lender shall
have all remedies available to them under Article 9 of the Uniform Commercial Code of the Property Jurisdiction and under any other applicable laws and, in addition, may retain all moneys in the Repair Escrow Fund, including interest, and in
Lender’s discretion, may apply such amounts, without restriction and without any specific order of priority, to the payment of any and all indebtedness or obligations of Borrower set forth in the Note, Security Instrument or other Loan
Documents, including, but not limited to, principal, interest, taxes, insurance, reasonable attorneys’ fees actually incurred and/or repairs to the Property. 

  

	17.	 Termination. This Agreement shall terminate upon the completion of the Repairs in accordance with this Agreement and Lender’s satisfaction, and the full
disbursement by Lender of the Repair Escrow Fund. In the event there are funds remaining in the Repair Escrow Fund after the Repairs have been completed in accordance with this Agreement, 

  

 PAGE 7 

	 	 
and provided no default by Borrower exists under this Agreement or under any other Loan Documents, such funds remaining in the Repair Escrow Fund shall be
refunded by Lender to the Borrower. 

  

	18.	No Amendment. Nothing contained in this Agreement shall be construed to amend, modify, alter, change or supersede the terms and provisions of the Note, Security Instrument or
any other Loan Document and, if there shall exist a conflict between the terms and provisions of this Agreement and those of the Note, Security Instrument or other Loan Documents, then the terms and provisions of the Note, Security Instrument and
other Loan Documents shall control. 

  

	19.	Release; Indemnity. 

  

	 	(a)	Release. Borrower covenants and agrees that, in performing any of its duties under this Agreement, none of Lender, and Loan Servicer or any of their respective agents or
employees, shall be liable for any losses, costs or damages which may be incurred by any of them as a result thereof, except that no party will be released from liability for any losses, costs or damages arising out of the willful misconduct or
gross negligence of such party. 

  

	 	(b)	Indemnity. Borrower hereby agrees to indemnify and hold harmless Lender, Loan Servicer, and their respective agents and employees, against any and all losses, claims,
damages, liabilities and expenses including, without limitation, reasonable attorneys’ fees and costs, which may be imposed or incurred by any of them in connection with this Agreement, except that no such party will be indemnified from any
losses, claims, damages, liabilities and expenses arising out of the willful misconduct or gross negligence of such party. 

  

	20.	Choice of Law. This Agreement shall be construed and enforced in accordance with the laws of the Property Jurisdiction. 

  

	21.	Successors and Assigns. Lender may assign its rights and interests under this Agreement in whole or in part and upon any such assignment, all the terms and provisions of this
Agreement shall inure to the benefit of such assignee to the extent so assigned. The terms used to designate any of the parties herein shall be deemed to include the heirs, legal representatives, successors and assigns of such parties; and the term
“Lender” shall also include any lawful owner, holder or pledgee of the Note. Reference herein to “person” or “persons” shall be deemed to include individuals and entities. Borrower may not assign its rights,
interests, or obligations under this Agreement without first obtaining Lender’s prior written consent. 

  

	22.	Attorneys’ Fees. In the event that Lender shall engage the services of an attorney at law to enforce the provisions of this Agreement against Borrower, then Borrower
shall pay all costs of such enforcement, including any reasonable attorneys’ fees and costs (including those of Lender’s in-house counsel) actually incurred. 

  

 PAGE 8 

	23.	Remedies Cumulative. In the event of Borrower’s default under this Agreement, Lender may exercise all or any one or more of its rights and remedies available under this
Agreement, at law or in equity. Such rights and remedies shall be cumulative and concurrent, and may be enforced separately, successively or together, and Lender’s exercise of any particular right or remedy shall not in any way prevent Lender
from exercising any other right or remedy available to Lender. Lender may exercise any such remedies from time to time as often as may be deemed necessary by Lender. 

  

	24.	Determinations by Lender. In any instance where the consent or approval of Lender may be given or is required, or where any determination, judgment or decision is to be
rendered by Lender under this Agreement, the granting, withholding or denial of such consent or approval and the rendering of such determination, judgment or decision shall be made or exercised by Lender (or its designated representative) at its
sole and exclusive option and in its sole and absolute discretion. 

  

	25.	Completion of Repairs. Lender’s disbursement of moneys in the Repair Escrow Fund or other acknowledgment of completion of any Repair in a manner satisfactory to Lender
shall not be deemed a certification by Lender that the Repair has been completed in accordance with applicable building, zoning or other codes, ordinances, statutes, laws, regulations or requirements of any governmental authority or agency. Borrower
shall at all times have the sole responsibility for insuring that all Repairs are completed in accordance with all such governmental requirements. 

  

	26.	No Agency or Partnership. Nothing contained in this Agreement shall constitute Lender as a joint venturer, partner or agent of Borrower, or render Lender liable for any
debts, obligations, acts, omissions, representations or contracts of Borrower. 

  

	27.	Entire Agreement. This Agreement and the other Loan Documents represent the final agreement between the parties and may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements. There are no unwritten oral agreements between the parties. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and
the other Loan Documents. Neither this Agreement nor any of its provisions may be waived, modified, amended, discharged, or terminated except in writing signed by the party against which the enforcement of the waiver, modification, amendment,
discharge, or termination is sought, and then only to the extent set forth in that writing; provided, however, that in the event of a Transfer requiring Lender’s consent under the terms of the Security Instrument, any one or more, or all, of
the Modifications to Agreement set forth in Exhibit “E” (if any) may be modified or rendered void by Lender at Lender’s option by notice to Borrower/transferee. 

  

	28.	Counterparts. This Agreement may be executed in multiple counterparts, each of which shall constitute an original document and all of which together shall constitute one
agreement. 

  

 PAGE 9 

 ATTACHED EXHIBITS. The following Exhibits are attached to this Agreement: 
  

					
	x	  	Exhibit A	 	Legal Description of Land (required)
			
	x	  	Exhibit B	 	Schedule of Work (required)
			
	x	  	Exhibit C	 	Disbursement Request (required)
			
	x	  	Exhibit D	 	Work Performed or Commenced and Material or Equipment Ordered (required, if none, state “NONE”)
			
	x	  	Exhibit E	 	Modifications to Agreement

 [The remainder of this page intentionally left blank; signature page follows.] 
  

 PAGE 10 

 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above
written. 
  

					
	BORROWER:
	
	 KC Retreat Associates, LLC,
 a Delaware
limited liability company

		
	By:	 	 JTL Asset Management, Inc.,
 a Missouri
corporation

	Its:	 	Operating Member
			
		 	By:	 	 /s/ JAMES E. LIPPERT

		 	Name:	 	James E. Lippert
		 	Its:	 	Managing Member

 [The remainder of this page intentionally left blank; signature page follows.] 

			
	Signature Page – Retreat of Shawnee – Repair Escrow Agreement	  	PAGE S-1

			
	 LENDER:

	
	 NorthMarq Capital, Inc.,
 a Minnesota corporation

		
	By:	 	 /s/ PAUL W. CAIRNS

		 	Paul W. Cairns
	Its:	 	Vice President

			
	Signature Page – Retreat of Shawnee – Repair Escrow Agreement	  	PAGE S-2

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