Document:

exhibit106.htm

    

      
        
           

        

         

        
           

          
            EXHIBIT
10.6

          

        

      

      MULTI-PARTY
AGREEMENT

      

      

      THIS MULTI-PARTY AGREEMENT (this
"Agreement") is made as of  October 15, 2008 by and among SAYREVILLE
SEAPORT ASSOCIATES, L.P., a Delaware limited partnership ("Borrower");
SAYREVILLE SEAPORT ASSOCIATES ACQUISITION COMPANY, LLC, a Delaware limited
liability company and general partner of the Borrower (the "General Partner");
OPG PARTICIPATION, LLC, a Pennsylvania limited liability company and limited
partner of the Borrower ("OPG"); J. BRIAN O'NEILL, a Pennsylvania resident,
("O'Neill"); NL INDUSTRIES, INC., a New Jersey corporation ("NL INDUSTRIES"); NL
ENVIRONMENTAL MANAGEMENT SERVICES, INC. (“NLEMS” and, collectively with NL
INDUSTRIES, “Lender”); THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, an insurance
company organized under the laws of the State of  New Jersey acting
solely on behalf of, for the benefit of, and with its liability limited to the
assets of its insurance company separate account known as PRISA II (such
insurance company separate account being referred to herein as "PRISA II"),
except as expressly provided in Section 18 below (“Prudential”); SAYREVILLE
PRISA II LLC, a Delaware limited liability company and a wholly owned subsidiary
of Prudential (referred to herein as "Sayreville LLC”).  The General
Partner, OPG and O'Neill are sometimes referred to individually as a "Developer
Partner" and collectively as the "Developer Partners".  Borrower and
each and all of the Developer Partners are sometimes referred to individually
and collectively as the "Developer".

      

      RECITALS

      

      A.           Borrower
is the ground lessee of those certain parcels of real property more particularly
described on Exhibit A attached hereto and incorporated herein by this reference
(the "Premises").

      

      B.    Borrower was
formed as a Delaware limited partnership pursuant to the filing of a Certificate
of Limited Partnership with the Secretary of the State of Delaware on or about
November 1, 2007 and the execution and delivery by Developer Partners, as all of
the partners of Borrower, of that certain Agreement of Limited Partnership of
Sayreville Seaport Associates, L.P., dated as of November 1, 2007.

      

      C.           Pursuant
to that certain Mortgage Note of even date herewith (the “Note”) in the original
principal amount of $15,000,000.00 from  Borrower to Lender, Lender
has agreed to accept the Note as a credit against the Initial Payment as defined
in that certain Reinstated and Amended Settlement Agreement and Release dated
June 26, 2008 among Borrower, Lender, the Sayreville Economic and Redevelopment
Agency (“SERA”) and the County of Middlesex, New Jersey (the “County”), as
amended in that certain Amendment to Reinstated and Amended Settlement and
Release dated as of September 25, 2008 (as amended, the “Settlement Agreement
and Release”) due under the Settlement Agreement and Release.

      

      D.           In
connection with Lender’s acceptance of the Note, Developer Partners and
Sayreville LLC have entered into that certain Amended and Restated Agreement of
Limited Partnership of Sayreville Seaport Associates, L.P. dated of even date
herewith (the "Partnership Agreement"), pursuant to which Sayreville LLC became
a limited partner of Borrower in return for the agreement of Sayreville LLC to
make a capital contribution in and to Borrower in an amount equal to the "Loan
Pay-off  Capital Contribution", defined below.

      

      E.           Developer,
Sayreville LLC and Prudential acknowledge by their execution and delivery of
this Agreement that without Prudential executing and delivering this Agreement
and agreeing to make and fund, for and on behalf of Sayreville LLC, the Loan
Pay-off Capital Contribution, Lender would not accept the Note from
Borrower.  Developer Partners, Sayreville LLC and Prudential
acknowledge and agree that they benefit from Lender accepting the Note from
Borrower.

      

      F.           At
the time of the infusion of the Loan Pay-off Capital Contribution to Borrower by
Sayreville LLC, by means of Prudential making a capital contribution to
Sayreville LLC, the Loan Pay-off Capital Contribution will be used (i) in
repayment of the outstanding principal amount of the Note, to a maximum sum of
$15,000,000.00, whereupon, Lender  will cause the liens and the
security interests created by that certain Leasehold Mortgage, Assignment,
Security Agreement and Fixture Filing against the Premises (the “Mortgage”) to
be discharged of record or, at the option of Prudential, assigned to Sayreville,
LLC or Prudential, all as further provided for herein.

      

      G.           Lender
has required that this Agreement be executed as a condition to Lender’s
obligation to accept the Note from Borrower.  All parties hereto
desire to enter into this Agreement to evidence the agreements and
understandings hereinafter set forth.  Unless otherwise defined
herein, capitalized terms shall have the meanings given in Exhibit C attached
hereto and incorporated herein.

      

      AGREEMENTS

      

      NOW, THEREFORE, with reference to the
foregoing Recitals, all of which are incorporated herein by this reference, and
in order to induce Lenders to enter into the Loan Agreement and make the Loan
and the advances thereunder, and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties hereto
covenant and agree as follows:

      

      1.           Recitals.  The
foregoing Recitals are true and correct and are incorporated into this Agreement
by reference.

      

      2.           Prudential's Obligation to
Make the Loan Pay-off Capital Contribution.

      

      (a)           Developer,
Sayreville, LLC and Prudential hereby agree that, (A) upon maturity of the Note,
whether due to scheduled maturity or earlier acceleration, as a result of the
occurrence of a default (beyond any applicable notice and/or cure periods) under
the Note, the Mortgage or any of the loan documents executed in connection with
the Note and the Mortgage; (B) the bankruptcy of the Borrower or any partner of
Borrower or the death of J. Brian O’Neill or the condemnation of a material
portion of the Premises; (C) the date that Prudential’s long term credit rating
falls below Baa2 as rated by Moody’s Investors Service or BBB as rated by
Standard and Poor’s (or if Moody’s Investors Service or Standard and Poor’s no
longer exists or provides rating services, an equivalent rating by a rating
agency reasonably acceptable to Lender); (D) the date on which PRISA II fails to
be in compliance with the covenants set forth in Sections 19.1, 19.2, 19.3 or
19.4 of this Agreement; or (E) upon the occurrence of a default (beyond any
applicable notice and cure periods) under that certain Loan Agreement (the “Loan
Agreement”) dated of even date by and between Borrower and Bank of America as
administrative agent (“Administrative Agent”) in connection with that certain
$70,000,000 loan being made by Administrative Agent and those other lenders set
forth in the Loan Agreement (the “Bank Group Loan”) or under any other Loan
Documents (as described in the Loan Agreement); then upon written demand by
Lender to Prudential and Developer Partners, notwithstanding anything to the
contrary in the Partnership Agreement, as the same may be modified or amended,
Prudential shall, upon demand of Lender, contemporaneously: (i)  pay
to Lender, in immediately available funds, an amount sufficient to pay-off in
full the outstanding principal amount of the Note and any and all sums due and
owing to Lender under the Note, not to exceed $15,000,000.00 in the aggregate
(the "Loan Pay-off Capital Contribution").

      

      (b)           The
obligations of Prudential pursuant to section 2(a) above are absolute,
irrevocable and unconditional, regardless of whether, without
limitation,  (i) a default under the Partnership Agreement has
occurred or is occurring or any partner of the Borrower acts in breach or
violation of the Partnership Agreement, as the same may be modified or amended,
(ii) Sayreville, LLC, any of the Developer Partners or any other partners of
Borrower assigns, sells, transfers, conveys or abandons, by operation of law or
otherwise, in whole or part, its partnership interests in the Borrower,
including, without limitation, an abandonment pursuant to section 10.3 of the
Partnership Agreement, (iii) dissolution, bankruptcy, merger or termination of
Lender, Borrower or any partner of Borrower, or the death of O'Neill, (iv)
amendment, modification or restatement of the Partnership Agreement, in whole or
part, (v)  replacement or substitution of any general partner of
Borrower, (vi) any liens have affected title to the Premises or other title
conditions exist with respect to the Premises, (vii) Borrower, Sayreville, LLC,
Prudential or any Developer Partner fails to obtain and/or close the
"Construction Loan" (as defined in the Partnership Agreement), execute and
deliver the "Transaction Agreement" (as defined in the Partnership Agreement) or
fails to obtain any refinancing of the Loan or (viii) any environmental
condition at or of the Premises and/or any other land forming a part of the
redevelopment project (or if Borrower fails to obtain any funds needed for the
completion of required environmental remediation work at the Premises
).

      

      (c)           Notwithstanding
anything contained in this Agreement to the contrary, upon the payment by
Prudential to Lender of the Loan Pay-off Capital Contribution, Lender shall,
concurrently with such payment, at the written direction of Prudential, either
(i) cause the liens and security interest created by the Mortgage to be
discharged of record as to the Premises and shall cause Borrower (but not any
guarantor or indemnitor, including, without limitation, O'Neill) to be released
from any surviving obligations under the Note, the Mortgage and any other loan
documents executed in connection therewith or (ii) sell and assign to Prudential
(or its designee), for the Loan Pay-off Capital Contribution, all of its right,
title and interest (except for the rights of the Lender under and pursuant to
the Mortgage as to indemnification, defense and hold harmless to which Lender
is  entitled and the rights of the Lender which are hereby reserved by
Lender), without representation, warranty or recourse (other than a
representation of Lender that the Note and Mortgage have not been assigned,
transferred or encumbered), in and to the Note, the Mortgage and the Premises,
if any.

      

      (d)           Borrower
hereby authorizes and directs Prudential to pay to Lender the Loan Pay-off
Capital Contribution upon direction from Lender and agrees that no further
authorization is required for Prudential to make such payment.  The
Developer Partners acknowledge and agree that as between them and each of
Sayreville LLC and Prudential, the Loan Pay-off Capital Contribution is an
Initial Capital Contribution, pursuant to section 4.1(b) of the Partnership
Agreement and Developer Partners are unconditionally and irrevocably obligated
to contribute on a pro-rata basis to the Loan Pay-off Capital Contribution,
provided that nothing herein or under the Partnership Agreement shall limit
Prudential's obligations to Lender for the payment in full of the Loan Pay-off
Capital Contribution, notwithstanding any Developer Partner's failure to
contribute to the same.

      

      (e)           In
no event shall this Agreement, the Note, the Mortgage nor any exercise by Lender
of any of the Lender’s rights or remedies hereunder or thereunder, release,
relieve or affect in any way the obligations of Developer Partners to
Sayreville, LLC and Prudential under the Partnership Agreement, including
without limitation, any liabilities or claims of Sayreville, LLC and Prudential
against Developer Partners.  Notwithstanding anything contained in
this Agreement, the Note or the Mortgage to the contrary, unless and until the
Note is paid in full and, all of the liens in connection with the Mortgage have
been released by Lender, Prudential shall be obligated only to deal solely and
directly with Lender in connection with the rights and obligations contemplated
by this Agreement.

      

      (f)           Sayreville
LLC and Prudential each acknowledge and agree that under no circumstances shall
Lender be obligated to seek to collect any sums due Lender from Borrower
including O'Neill, or to realize or seek to realize on an collateral prior to
making demand upon Prudential for payment pursuant to Section 2(a) above and
Prudential's obligations and liabilities under Section 2(a) above shall be
independent of any and all rights and remedies available to Lender pursuant to
the Note or the Mortgage.

      

      3.           Intention of
Parties.  Notwithstanding any contrary provisions of this
Agreement, Lender expressly acknowledges that (i) except for Prudential's
obligation under this Agreement to make payment to Lender of the Loan Pay-off
Capital Contribution pursuant to Section 2(a) above, Prudential does not have
any personal liability under the Note.  It is further understood that,
so long Prudential makes payment to Lender of the Loan Pay-off Capital
Contribution, Lender, shall, concurrently with such payment, at the written
direction of Prudential, either:   (i) cause the liens and
security interests created by the Mortgage to be discharged of record as to the
Premises and shall cause Borrower (but not any guarantor under any guaranty of
the Note, if any, including, without limitation, O'Neill) to be released from
any surviving obligations to Lender under the Note and the Mortgage or (ii) sell
and assign to Prudential (or its designee), without representation, warranty or
recourse (other than a representation by Lender that the Note and the Mortgage
have not been assigned, transferred or encumbered), all of Lender's right, title
and interest in and to the Note, the Mortgage and the Premises, if any;
provided, however, that the rights of the Lender under and pursuant to the Note
and Mortgage as to indemnification, defense and hold harmless to which Lender is
entitled and the rights of the Lender under any and all guarantees, including a
guaranty of O'Neill, if any, shall be reserved by Lender and the liability of
any guarantor, if any, shall be retained by Lender and nothing herein contained
shall obligate Lender to release any guarantor who may be liable obligations
that expressly survive the payment in full of all sums due under the Note and/or
the discharge of record of the liens and security interests affecting the
Premises under the Mortgage or release any guarantor, from liability for payment
of any sums due and payable under the Note or the Mortgage, which remain
outstanding.  In connection with any sale or assignment to Prudential
of any interest of Lender in and to the Premises, any deed, transfer or sales
tax shall be the responsibility of Prudential and not of
Lender.  Notwithstanding anything to the contrary hereinabove, the
terms of this Section 3 shall not amend, modify or waive any of the rights and
obligations of Borrower and Lender under the Settlement Agreement and
Release.

      

      4.           Representations Regarding
PRISA II and Status of Partnership Agreement.

      

      (a)           Prudential
hereby confirms, represents and covenants to Lender that:

       

      (i)           PRISA
II is a "separate account" (i) designated "PRISA II", (ii) established by
Prudential, in accordance with and pursuant to Section 17­B:28 of the New
Jersey Statutes Annotated, for the benefit of the Contract Holders and (iii) to
which income and gains or losses, realized or unrealized, are credited or
charged and are accounted for separately from income, gains or losses of
Prudential.  The contracts with the Contract Holders are variable
contracts without any guaranty, including any index guaranty of the dollar
amounts of benefits or other payments thereunder or of the value of such
contract.

       

      (ii)           Assets
of PRISA II held by Prudential, whether in Prudential's name or in the name of
PRISA II, are not subject to general creditors of Prudential and are subject
only to liabilities specifically incurred by Prudential with respect to PRISA
II, and the rights of the Contract Holders under their respective contracts are
in all respects subject and subordinate to the rights of the Administrative
Agent and Lenders to demand that Prudential make payment to Administrative Agent
of the Loan Pay-off Capital Contribution.

       

      (iii)           PRISA
II is a "separate account" as defined in Section 3(17) of ERISA.  All
assets included in such separate account are owned by PRISA II for the benefit
of the Contract Holders.  The contracts with the Contract Holders
expressly provide that assets held in PRISA II shall not be chargeable with any
liabilities arising out of any other business of Prudential.  The
consummation of this Agreement and the payment of the Loan-Pay-off Capital
Contribution to Administrative Agent pursuant to this Agreement are within the
business purposes of PRISA II.

       

      (iv)           PRISA
II is not a separate legal entity for the purposes of ERISA and as such has no
employees and does not sponsor or participate in any Plan.

       

      (b)           Prudential
represents and warrants, to the best of its knowledge, that as of the date
hereof:

      

      (i)           the
Partnership Agreement (with attached exhibits) represents all the legal
instruments and documents evidencing the binding commitment of Sayreville, LLC
with respect to the acquisition by Sayreville, LLC of the partnership interests
in Borrower and the infusion by Developer and Sayreville, LLC of capital in
Borrower (which obligation of Sayreville, LLC is hereby assumed by Prudential as
to Administrative Agent and Lenders only) ;

      

      (ii)           no
default by Sayreville, LLC has occurred and no event has occurred which, with
the passage of time or the giving of notice or both, would constitute a default
by Sayreville, LLC under the Partnership Agreement; and

      

                 (iii)           the
Partnership Agreement is in full force and effect.

      

      (c)           Developer
represents and warrants, to the best of its knowledge, that as of the date
hereof:

      

      (i)           the
Partnership Agreement (with attached exhibits) represents all the legal
instruments and documents evidencing the binding commitment of Developer with
respect to the acquisition by Sayreville, LLC of the partnership interests in
Borrower and the infusion by Developer and Sayreville, LLC of capital in
Borrower;

      

      (ii)           no
default by Developer has occurred and no event has occurred which, with the
passage of time or the giving of notice or both, would constitute a default by
Developer under the Partnership Agreement; and

      

      (iii)           the
Partnership Agreement is in full force and effect.

      

      (d)           Prudential
and Sayreville, LLC each hereby acknowledge to Lender that each is familiar with
the environmental condition of the Premises.

      

      5.           Amendment of Partnership
Agreement/Transfer of Partnership Interests.  Sayreville LLC
and Developer acknowledge and agree that so long as any amount of the Note
remains outstanding, no material changes (which shall include, without
limitation, (i) any changes with respect to the direct or indirect ownership
interest of the Developer Partners or Sayreville LLC in and to the Borrower,
except as otherwise permitted under this Section 5, and (ii) the obligations of
either the Developer Partners or Sayreville LLC to make any capital
contributions as required thereunder) in the Partnership Agreement shall be made
without the prior written consent of Lender, which may be granted or withheld in
its sole discretion. Sayreville LLC and Developer Partners acknowledge and agree
that so long as any amount of the Note remain outstanding, except as may be
permitted under the Mortgage, no assignment, collateral assignment, pledge,
conveyance, transfer or other disposition of any partnership interests in and to
Borrower shall be made without Lender’s prior written consent, which may be
granted or withheld in its sole discretion.  Notwithstanding anything
to the contrary herein or in the Partnership Agreement, no assignment by
Sayreville LLC of its interest in the Partnership shall release Prudential from
its obligations to Lender under or pursuant to this Agreement.

      

      6.           Developer's
Consent.  Developer hereby consents and agrees to the terms and
conditions of this Agreement; provided that nothing contained herein shall, as
between Developer on one hand and Sayreville, LLC on the other, modify the terms
of the Partnership Agreement.  Furthermore, the parties hereto hereby
acknowledge and agree that, except as otherwise expressly set forth in Section 2
hereof, the acknowledgements, agreements and covenants on the part of
Sayreville, LLC and/or Prudential herein contained are for the benefit of Lender
and shall not be deemed to constitute a modification of the Partnership
Agreement.

      

            7.                      Notices. Each notice
request, demand and other communication hereunder will be in writing and will be
deemed given (a) if given by mail, four (4) days after deposit in United States
Certified Mail, postage prepaid, return receipt requested or (b) if given by
personal delivery, when delivered, or (c) if given by reputable overnight next
business day courier service, on the next business day after delivery to such
service, in each case addressed to the parties as follows (or to such other
address as a party may designate by notice to the others):

      

      
        	
                 
      

              	
                If
      to Lender:

              

      

      

      If to
Prudential and/or Sayreville, LLC (notice to either Prudential or Sayreville,
LLC shall constitute notice to both Prudential and Sayreville):

      

      c/o
Prudential Real Estate Investors

      8 Campus
Drive

      Parsippany,
New Jersey 07054

      Attn:
Steven B. LaBold

      

      with a
copy to:

      

      PAMG-RE
Law Department

      8 Campus
Drive, 4th Floor

      Arbor
Circle South

      Parsippany,
New Jersey 07054

      Attn: Law
Department

      

      with a
copy to:

      

      
        	
                 
      

              	
                Goodwin|Procter
      LLP

              

      

      
        	
                 
      

              	
                Exchange
      Place

              

      

      
        	
                 
      

              	
                Boston,
      Massachusetts  02109

              

      

      
        	
                 
      

              	
                Attn:  Minta
      E. Kay, Esq.

              

      

      

      
        	
                 
      

              	
                If
      to Developer:

              

      

      

      c/o
O'Neill Properties Group, L.P.

      2701
Renaissance Boulevard

      4th
Floor

      King of
Prussia, Pennsylvania  19406

      Attn:  J.
Brian O'Neill

      

      with a
copy to:

      

      Sean
Mitchell, Esq.

      Macartney,
Mitchell & Campbell, LLC

      2701
Renaissance Boulevard

      Fourth
Floor

      King of
Prussia, Pennsylvania  19406

      

      if to
Lender:

      

      NL
Industries, Inc.

      5430 LBJ
Freeway

      Suite
1700

      Dallas,
TX  75240

      Attention:  General
Counsel

      

      with a
copy to:

      

      Christopher
R. Gibson, Esq.

      Archer
& Greiner, P.C.

      One
Centennial Square

      Haddonfield,
NJ  08033

      

                  8.           Waiver. No waiver of
any of the terms or conditions of this Agreement, and no waiver of any default
or failure of compliance, shall be effective unless in writing, and no waiver
furnished in writing shall be deemed to be a waiver of any other term or
provision or any future conditions of this Agreement.

      

      9.           Modification.  This
Agreement may not be changed, terminated or modified orally or in any other
manner except by an agreement in writing signed by all parties
hereto.

      

      10.           Time. Time is of the
essence of this Agreement.

      

      11.           Binding
Effect.  This Agreement shall be binding upon and shall inure
to the benefit of the parties hereto and their respective heirs, successors and
assigns.

      

      12.           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of New Jersey.

      

      13.           Severability.  The
invalidity or unenforceability of any provision in this Agreement will not
affect any other provision.

      

      14.           Attorneys'
Fees.  In the event that any suit or action is brought to
enforce this Agreement, the prevailing party or parties will be entitled to
reasonable attorneys' fees in amount to be fixed by the applicable
court.

      

      15.           Survival.  The
terms, conditions and provisions hereof and all obligations and duties of the
parties hereto shall survive the closing of the transaction described in this
Agreement.

      

      16.           Counterparts.  This
Agreement may be executed simultaneously in two or more counterparts, each of
which shall be deemed an original, and all of which together shall constitute a
single agreement.

      

      17.           Remedies.  Each
party hereto acknowledges and agrees that its only remedy against any other
party for breach of this Agreement shall be to seek and obtain specific
performance of such other party's obligations here­under, and that in no
event shall any party have any liability for damages as a result of breach of
this Agreement, provided however, Developer and Prudential acknowledge and agree
that Lender (or a wholly-owned subsidiary of Lender, but not any third party
purchaser at a foreclosure sale) may maintain an action for assumpsit, damages
(but such action for damages shall be solely for recovery of the unpaid amount
of the Loan Pay-Off Capital Contribution and payment of such amount as provided
in Section 14 above) or specific performance for payment of the Loan Pay-off
Capital Contribution, as the case may be, and payment of such amount as provided
for in Section 14 above.

      

      18.           Prudential's Limited
Liability.  The obligation of Prudential under this Agreement
to make payment of the Loan Pay-off Capital Contribution is fully recourse to
PRISA II's assets and all other assets now or hereafter held by Prudential for
PRISA II but the obligation of Prudential under this Agreement to make payment
of the Loan Pay-off Capital Contribution, or any portion thereof, will be
non-recourse to Prudential and to Prudential's other assets (i.e., any assets
that are not now or hereafter held for PRISA II), except that Prudential (and
all of its assets held for its general account) shall be fully liable to the
Lender for each of the following:

      

      (a)           any
loss, cost or damage incurred by Lender to the extent that such loss, cost or
damage, together with the Loan Pay-off Capital Contribution or any portion
thereof  cannot be recovered by Lender from PRISA II, and which loss,
cost or damage relates to or arises out of:

       

      

      (i)           fraud
or any intentional material misrepresentation by PRISA II regarding the
financial performance or condition of PRISA II or any information contained in
any certificates given on behalf of PRISA II hereunder;

      

      (ii)           any
material misrepresentation by PRISA II which relates to (A) the existence of
PRISA II, (B) the existence of any asset of PRISA II, (C) PRISA II's ownership
of any such asset, (D) the due authorization of Prudential or the legal power or
authority of Prudential to act for PRISA II, to enter into this Agreement on
behalf of PRISA II or to pay, perform and observe its obligations thereunder, or
(E) any of the matters set forth in Sections 4(a)(i), (ii) (iii)
and (iv) and 19.6 or 19.7 of this
Agreement;

      

      (iii)           any
misapplication or misappropriation by Prudential of any funds belonging to PRISA
II;

      

      (iv)           any
Improper Distributions; or

      

      (v)           any
legal determination that PRISA II (for any reason whatsoever) has failed to
qualify as, or to maintain its status as, a "separate account" under applicable
law thus resulting in PRISA II's assets being subject to the claims of general
creditors of Prudential;

      

      (b)           the
Loan Pay-off Capital Contribution, or any unpaid part or portion thereof, in the
event that any effort by Lender to obtain a judgment against PRISA II with
respect to this Agreement or to attach, execute or otherwise realize upon any
asset of PRISA II is impeded in any material way by any claim or assertion that
is made by PRISA II or Prudential (or by any of their Affiliates, successors or
assigns or any agent or employee of any of the foregoing) which (i) challenges
the existence of PRISA II as a "separate account" under applicable law, (ii)
challenges the due authorization or legal power or authority of Prudential to
act for PRISA II, to enter into the this Agreement on behalf of PRISA II or to
pay, perform and observe its obligations hereunder, or (iii) challenges the
enforceability of this Agreement against PRISA II on the basis of any matter
described in clauses (i) or (ii) of Section 18(a);
and

      

      (c)           the
Loan Pay-off Capital Contribution, or any unpaid part or portion thereof, in the
event that any effort by Lender to obtain a judgment against PRISA II with
respect to the Loan Pay-off Capital Contribution, or any unpaid part or portion
thereof, or to attach, execute or otherwise realize upon any asset of PRISA II
is impeded in any material way by any claim or assertion that is made by any
other party with respect to any of the matters set forth in clauses (i) or (ii)
of Section 18(a)
and Prudential fails to take all reasonable steps, at its sole cost and
expense, to defend against any such claim or assertion;

      

      (d)           the
Loan Pay-off Capital Contribution, or any unpaid part or portion thereof, in the
event that, after Lender has obtained a final non-appealable judgment in a court
action against PRISA II with respect to the Loan Pay-off Capital Contribution,
or any unpaid part or portion thereof, PRISA II or Prudential (or any of their
Affiliates, successors or assigns, or any agent or employee or any of the
foregoing) intentionally takes any action which impedes in any material way
Lender’s efforts to satisfy such judgment by execution, levy, sale or other
action against or with respect to any of the assets of PRISA II;
and/or

      

      (e)           any
sums due under or pursuant to Section 14 above.

      

      19.           Covenants Regarding PRISA
II.  During the term of this Agreement, unless the Lender, in
its sole discretion, shall otherwise consent in writing:

       

      19.1           Net Asset Value.  PRISA II will at all times
maintain a minimum value of Net Assets of $1,500,000,000.

      

      19.2           Coverage Ratio.  PRISA II and its Consolidated
Entities on a consolidated basis, shall not, as of any date, permit Total
Outstanding Indebtedness to exceed forty percent (40%) of Adjusted Total
Assets.

      

      19.3           Fixed Charge
Coverage.  PRISA II and its
Consolidated Entities on a consolidated basis, shall not, as of any date, permit
the ratio of Net Investment Income plus Interest Expense plus all ground lease
rental expense included in Fixed Charges for the most recent four prior fiscal
quarters to Fixed Charges for such period to be less than 2.5 to
1.

      

      19.4           Maintenance of Investment
Advisor Role.  Prudential (or one or more entities controlled
by Prudential) shall at all times serve as the sole investment advisor of PRISA
II and all of its assets (unless Lender, in its sole discretion, give their
prior written approval of one or more professional investment advisors as
replacements for Prudential), provided, however, that from time to time
Prudential may appoint an independent fiduciary for the purpose of resolving
conflicts of interest.

      

      19.5           Financial
Reporting.  PRISA II will maintain, for itself and each
Consolidated Entity, a system of accounting established and administered in
accordance with Agreement Accounting Principles, and furnish to
Lender:

      

      (i)           As
soon as available, but in any event not later than 45 days after the close of
each fiscal quarter, for PRISA II and its Consolidated Entities, an unaudited
consolidated balance sheet as of the close of each such period and the related
unaudited consolidated statements of operations and of cash flows of PRISA II
and its Consolidated Entities for such period and the portion of the fiscal year
through the end of such period, setting forth in each case in comparative form
the figures for the previous year, all certified by PRISA II's Senior Portfolio
Manager or Senior Accounting Manager;

      

      (ii)           As
soon as available, but in any event not later than 120 days after the close of
each fiscal year, for PRISA II and its Consolidated Entities, audited financial
statements, including a consolidated balance sheet as the end of such year and
the related consolidated statements of operations and of cash flows for such
year, setting forth in each case in comparative form the figures for the
previous year, reported on by PricewaterCoopers LLP (or another comparable firm
of independent certified public accountants) without a "going concern" or like
qualification or exception, or qualification arising out of the scope of the
audit;

      

      (iii)           Together
with the quarterly and annual financial statements required hereunder, a
compliance certificate in substantially the form of Exhibit B hereto
signed by a senior executive of the PRISA II account, showing the calculations
and computations necessary to determine compliance with this Agreement, stating
that no Default or Unmatured Default exists, or if any Default or Unmatured
Default exists, stating the nature and status thereof, updating Schedule 1 as of
the end of preceding quarter; and

      

      (iv)           Not
less than 10 business days prior to the effective date thereof, an updated
Exhibit reflecting (i) the proposed admission of any new Over 10% Contract
Holder or (ii) any existing Contract Holder which will become an Over 10%
Contract Holder on such date.

      

      19.6           PRISA II's Contract
Holders.  PRISA II shall not consent to any material
modifications to PRISA II's separate account agreements with the Contract
Holders, other than changes in the ordinary course of business which do not
increase the rights of such Contract Holders to terminate such agreements or to
withdraw funds from PRISA II and do not adversely affect the priority of PRISA
II's obligations under this Agreement over the claims of the Contract Holders,
without the prior written consent of Lender, which consent will not be
unreasonably withheld or delayed.  PRISA II shall not enter into a
separate account agreement with a Contract Holder that does not give PRISA II
rights substantially the same as or better than those created by the form of
agreement in use as of the date hereof, without the prior written consent of
Lender, which consent will not be unreasonably withheld or delayed.

      

      19.7           Maintenance of Separate
Account Status.  PRISA II shall at all times take all steps
necessary to maintain, and refrain from any act or omission that would eliminate
or in any way diminish its status as a separate account of Prudential under
applicable New Jersey law such that the assets of the Consolidated Group are not
subject to the claims of Prudential's creditors for Prudential's obligations
unrelated to the Consolidated Group.  If there shall be any changes of
fact or law that may reasonably be expected to cause any change in PRISA II's
status as a separate account of Prudential under applicable New Jersey law,
Prudential shall, at the request of Lender from time to time, deliver to Lender
an updated opinion of counsel to PRISA II addressing such changes.

      

      20.           Waiver of Trial By
Jury.  DEVELOPER, LENDER, SAYREVILLE, LLC, AND PRUDENTIAL EACH
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY RELATED HERETO.
THIS PROVISION IS A MATERIAL INDUCEMENT FOR ENTERING INTO THIS
AGREEMENT.  THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE
BY DEVELOPER, LENDER, SAYREVILLE, LLC, AND PRUDENTIAL, AND DEVELOPER, LENDER,
SAYREVILLE, LLC, AND PRUDENTIAL  HEREBY REPRESENT THAT NO
REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY PERSON OR ENTITY TO
INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS
EFFECT. DEVELOPER, LENDER, SAYREVILLE, LLC, AND PRUDENTIAL ARE EACH HEREBY
AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE
EVIDENCE OF THIS WAIVER OF JURY TRIAL. DEVELOPER, LENDER, SAYREVILLE, LLC, AND
PRUDENTIAL EACH FURTHER REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN
THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT
LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL
COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO
DISCUSS THIS WAIVER WITH COUNSEL.

       

      

      
        	
                SIGNATURES
      ON FOLLOWING PAGES

              

      

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      INTENDING
TO BE LEGALLY BOUND HEREBY, EXECUTED AND SEALED as of the day and year first
above written.

      

      WITNESS/ATTEST:                                                                           BORROWER:

      

      SAYREVILLE
SEAPORT ASSOCIATES, L.P.,

      a
Delaware limited partnership

      

      
        	
                 
      

              	
                By:

              	
                Sayreville
      Seaport Associates Acquisition

              

      

      Company,
LLC, its general partner

      

      

      ________________________                                                                       By:
____________________________(SEAL)

      
        	
                 
      

              	
                Name:
      Jon Robinson

              

      

      
        	
                 
      

              	
                Title:  Vice-President

              

      

      

      

      WITNESS/ATTEST:                                                                           GENERAL
PARTNER:

      

      SAYREVILLE
SEAPORT ASSOCIATES

      ACQUISITION
COMPANY, LLC,

      a
Delaware limited liability company

      

      

      _________________________                                                                By:  ______________________________(SEAL)

      Name: Jon
Robinson

      Title:  Vice
President

      

      

      WITNESS/ATTEST:                                                                           OPG:

      

      OPG PARTICIPATION, LLC,

      a Pennsylvania limited liability
company

      

      

      ___________________________                                                                               By:  __________________________(SEAL)

              Name:
Jon Robinson

       Title:  Vice
President

      

      

      WITNESS/ATTEST:                                                                             O'NEILL:

      

      

      ____________________________                                                                                                ________________________________(SEAL)

      J. Brian O'Neill,
individually

      

      [Signature
Page 1 of 3 - Multi-Party Agreement]

      
        
          
             

            

          

           

        

        
           

          
            

          

        

        
           

        

      

      

      WITNESS/ATTEST:                                                                LENDER:

      

      

      NL
INDUSTRIES, INC.

      a New
Jersey corporation

      

      

      __________________________                                                                           By:  ______________________(SEAL)

      Name:

      Title:

      

      

      NL ENVIRONMENTAL MANAGEMENT SERVICES,
INC., a New Jersey Corporation

      

      By:___________________________________

      Name:________________________________

      Title:_________________________________

      

      

      SAYREVILLE
LLC:

      

      SAYREVILLE
PRISA II LLC, a Delaware limited liability company

      

      
        	
                 
      

              	
                By:

              	
                THE
      PRUDENTIAL INSURANCE COMPANY OF AMERICA, an insurance company organized
      under the laws of the State of New Jersey, acting solely on behalf of and
      for the benefit of its insurance company separate account, PRISA II, its
      sole member

              

      

      

      

      By:_________________________________

      Name:                      Steven
B. LaBold

      Title:                      Vice
President

      

      

      

      

      

      

      [Signature
Page 2 of 3 - Multi-Party Agreement]

      

      
        
          
             

            

          

           

        

        
           

          
            

          

        

        
           

        

      

      PRUDENTIAL:

      

      THE
PRUDENTIAL INSURANCE COMPANY

      OF
AMERICA, an insurance company organized under the laws of the State of New
Jersey, acting solely on behalf of and for the benefit of, and with its
liability limited to the assets of, its insurance company separate account,
PRISA II (except as expressly provided in Section 18 hereof)

      

      By:                                                                           

      Name:______________________________

      Title:_______________________________

      

      [Signature
Page 3 of 3 - Multi-Party Agreement]exhibit107.htm

                                                                                                                                                                                                                                      
Exhibit 10.7

    

    GUARANTY
AGREEMENT

    

    

    

    THIS GUARANTY AGREEMENT (this
"Guaranty") is
made as of the 15th day of October, 2008 by J. BRIAN O'NEILL, (individually
"Guarantor") in
favor of  NL INDUSTRIES, INC., a New Jersey corporation (“NL
Industries”) and NL ENVIRONMENTAL MANAGEMENT SERVICES, INC. (“NLEMS” and,
collectively with NL Industries, “Lender”) and their
respective successors and assigns.  Capitalized terms not otherwise
defined herein shall have the definitions ascribed to them in that certain
Reinstated and Amended Settlement Agreement and Release dated June 26, 2008
among Lender, Borrower, the Sayreville Economic and Redevelopment Agency
(“SERA”) and the County of Middlesex, New Jersey (the “County”), as amended by
that Amendment to Reinstated and Amended Settlement Agreement and Release dated
as of September 25, 2008 (as amended, the “Settlement Agreement and
Release”).

    

    PRELIMINARY
STATEMENTS

    

    (1)           Sayreville
Seaport Associates, L.P., a Delaware limited partnership ("Borrower"), has
delivered a Mortgage Note (the “Note”) to Lender of
even date herewith in the original principal amount of $15,000,000.00 which Note
has been accepted by Lender as a credit against the Initial Payment (as defined
in the Settlement Agreement and Release).

    

    (2)           The
Note is or will be secured by a Leasehold Mortgage, Assignment, Security
Agreement and Fixture Filing dated of even date herewith executed by Borrower in
favor of Lender covering the Property as described in the Mortgage (such
mortgage, as it may hereafter be renewed, extended, supplemented, increased or
modified and in effect from time to time, and any other mortgage or other
document given in substitution therefor, or in modification, renewal, or
extension thereof, in whole or in part, are herein called the "Mortgage").

    

    (3)           A
condition precedent to Lender accepting the Note from Borrower at the Initial
Closing is Guarantor's execution and delivery to Lender of this
Guaranty.

    

    STATEMENT OF
AGREEMENTS

    

    For good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, and as a material
inducement to Lender to accept the Note from Borrower, Guarantor hereby
guarantees to Lender and agrees to act as surety for the prompt and full payment
and performance of the indebtedness and obligations described below in this
Guaranty, this Guaranty being upon the following terms and
conditions:

    

    Section
1                      Payment
Obligations.

    

    (a)           Interest
Obligations.   Guarantor hereby,
unconditionally and irrevocably guarantees to Lender the punctual payment when
due, whether by lapse of time, by acceleration of maturity, or otherwise, of all
interest (including any related fees, late charges and interest accruing at the
Past Due Rate and/or after the commencement of any bankruptcy or insolvency
proceeding by or against Borrower, whether or not allowed in such proceeding)
now or hereafter due and owing, or which Borrower is obligated to pay, pursuant
to the terms of the Note or the Mortgage.

    

    (b) Amounts not included in
Prudential Obligations to Lender.  Guarantor hereby,
unconditionally and irrevocably guarantees to Lender the payment of any and all
amounts due under and pursuant to the Note and which amounts are not included as
a part of the Loan Pay-Off Capital Contribution (as such term is defined in the
Multi-Party Agreement) payable to Lender by PICA (The Prudential Insurance
Company of America, Inc.) under and pursuant to the terms of that certain
Multi-Party Agreement of even date herewith by and among Mortgagor, Sayreville
Seaport Associates Acquisition Company, LLC, OPG Participation, LLC, J. Brian
O’Neill, Mortgagee, Sayreville PRISA II LLC and The Prudential Insurance Company
of America, an insurance company organized under the laws of the State of New
Jersey acting solely on behalf of, for the benefit of, and with its liability
limited to the assets of its insurance company separate account known as PRISA
II, except as expressly provided in Section 18 of the Multi-Party
Agreement.

    

    The
liability and obligations under this Section 1 shall not
be limited or restricted by the existence of, or any terms of, the guaranty of
specific obligations under Section 2
below

    

    Section
2                      Guaranty of Specific
Obligations.

    

    Guarantor
hereby unconditionally and irrevocably guarantees the payment of, and agrees to
protect, defend, indemnify and hold harmless Lender for, from and against, any
and all losses, damages or liability which may be suffered or incurred by,
imposed on or awarded against Lender as a result of:

    

    (a)           Fraud
by Borrower or Guarantor in connection with (i) the acquisition of the
Borrower's interest in the Property (as defined in the Mortgage) or the
management, leasing or operation thereof or (ii) the making or disbursement of
the Loan or any certificates or documents provided in connection
therewith;

    

    (b)           Material
misrepresentation or breach of warranty by Guarantor in connection with the
acquisition of Borrower's interest in the Property or the management, leasing or
operation thereof; (ii) the remediation and/or redevelopment Property or (iii)
the making or disbursement of the Loan or any certificates or documents provided
in connection therewith;

    

    (c)           Material
misrepresentation or breach of warranty by Borrower in connection with the
acquisition of Borrower's interest in the Property or the management, leasing or
operation thereof; (ii) the remediation and/or redevelopment of the Property or
(iii) the making or disbursement of the Loan or any certificates or documents
provided in connection therewith;

    

    (d)           After
the occurrence and during the continuance of a Default, distributions to the
members, partners or shareholders of Borrower or Guarantor (or to any
beneficiary or trustee if Borrower or Guarantor is a trust) of any Rents,
security deposits, or other income arising with respect to any property covered
by the Mortgage which should have been applied against costs and expenses
associated with such property or paid to Lender pursuant to the Note and the
Mortgage;

    

    (e)           The
misapplication by Borrower or Guarantor of any insurance proceeds or
condemnation awards attributable to any property covered by the Mortgage which,
under the terms thereof, should have been applied otherwise or paid to
Lender;

    

    (f)           Any
filing by Borrower or any general partner of Borrower of a bankruptcy petition,
or the making by Borrower or any general partner of Borrower of an assignment
for the benefit of creditors, or the appointment of a receiver of any property
of Borrower or any general partner of Borrower in any action initiated by, or
consented to by, Borrower or such general partner; or

    

    (g)           Any
acts of Borrower or Guarantor taken in bad faith with the intent to hinder,
delay or interfere with the exercise by Lender of any rights and remedies under
the Note or the Mortgage after the occurrence of and during the continuance of a
Default.

    

    The
obligations guaranteed under Section 1 and this
Section 2 are
collectively referred to herein as the "Guaranteed
Obligations".  In addition to the Guaranteed Obligations,
Guarantor hereby agrees to pay to Lender all costs and expenses incurred by
Lender in seeking to enforce Lender's rights and remedies with respect to such
Guarantee Obligations or any of them, including, without limitation, court
costs, costs of alternative dispute resolution and reasonable attorneys' fees,
whether or not suit is filed or other proceedings are initiated
thereon.  The guaranty of Guarantor as set forth in Section 1 and this Section 2 is a
continuing guaranty of payment and not a guaranty of collection.

    

    Notwithstanding
anything set forth in this Section 2, the terms
of this Section 2 shall in no way amend, modify or waive any rights or
obligations of Borrower or Lender under the Settlement Agreement and
Release.

    

    Section
3                      Primary Liability of
Guarantor.

    

    (a)           This
Guaranty is an absolute, irrevocable and unconditional guaranty of payment and
performance, and Guarantor shall be liable for the payment and performance of
the Guaranteed Obligations as a primary obligor.  This Guaranty shall
be effective as a waiver of, and Guarantor hereby expressly waives, any right to
which Guarantor may otherwise have been entitled, whether existing under
statute, at Law or in equity, to require Lender to take prior recourse or
proceedings against any collateral, security or person.  It shall not
be necessary for Lender, in order to enforce such payment or performance by
Guarantor, first to institute suit or pursue or exhaust any rights or remedies
against Borrower or other person liable on such indebtedness or for such
performance, or to enforce any rights against any security given to secure such
indebtedness or performance, or to join Borrower or any other person liable for
the payment or performance of the Guaranteed Obligations or any part thereof in
any action to enforce this Guaranty, or to resort to any other means of
obtaining payment or performance of the Guaranteed Obligations; provided,
however, that nothing herein contained shall prevent Lender from suing on the
Note or foreclosing the Mortgage.

    

    (b)           It
shall not be necessary for Lender, in order to enforce such payment or
performance by Guarantor, first to institute suit or pursue or exhaust any
rights or remedies against Borrower or other person liable on such indebtedness
or for such performance, or to enforce any rights against any security given to
secure such indebtedness or performance, or to join Borrower or any other Person
liable for the payment or performance of the Guaranteed Obligations or any part
thereof in any action to enforce this Guaranty, or to resort to any other means
of obtaining payment or performance of the Guaranteed Obligations; provided,
however, that nothing herein contained shall prevent Lender from suing on the
Note or foreclosing the Mortgage and if such foreclosure or other remedy is
availed of, only the net proceeds therefrom, after deduction of all charges and
expenses of every kind and nature whatsoever, shall be applied in reduction of
the amount due on the Note and the Mortgage, and Lender shall not be required to
institute or prosecute proceedings to recover any deficiency as a condition of
payment hereunder or enforcement hereof.  At any sale of Borrower's
interest in the Property or other collateral given for the indebtedness due
under the Note (the “Indebtedness”) or any
part thereof, whether by foreclosure or otherwise, Lender may at its discretion
purchase all or any part of Borrower's interest in the Property or collateral so
sold or offered for sale for its own account and may, in payment of the amount
bid therefor, deduct such amount from the balance due it pursuant to the terms
of the Note.

    

    (c) Suit may
be brought or demand may be made against Borrower or against any or all parties
who have signed this Guaranty or any other guaranty covering all or any part of
the Guaranteed Obligations, or against any one or more of them, separately or
together, without impairing the rights of Lender against any party hereto. Any
time that Lender is entitled to exercise its rights or remedies hereunder, it
may in its discretion elect to demand payment and/or performance.  If
Lender elects to demand performance, it shall at all times thereafter have the
right to demand payment until all of the Guaranteed Obligations have been paid
and performed in full.  If Lender elects to demand payment, it shall
at all times thereafter have the right to demand performance until all of the
Guaranteed Obligations have been paid and performed in full.

     

    Section
4.                      Certain Agreements and
Waivers by Guarantor.

    

    (a)           Guarantor
agrees that neither Lender’s rights or remedies nor Guarantor’s obligations
under the terms of this Guaranty shall be released, diminished, impaired,
reduced or affected by any one or more of the following events, actions, facts,
or circumstances, and the liability of Guarantor under this Guaranty shall be
absolute, unconditional and irrevocable irrespective of:

     

    i. any limitation on the liability of, or
recourse against, any other person in the Note or the Mortgage or arising under
any Law;

     

    ii. any claim or defense that this Guaranty
was made without consideration or is not supported by adequate consideration or
that the obligations of Guarantor hereunder exceed or are more burdensome than
those of Borrower under the Note or the Mortgage;

     

    iii. the taking or accepting of any other
security or guaranty for, or right of recourse with respect to, any or all of
the Guaranteed Obligations;

     

    iv. the operation of any statutes of
limitation or other laws regarding the limitation of actions, all of which are
hereby waived as a defense to any action or proceeding brought by Lender against
Guarantor, to the fullest extent permitted by Law;

     

    v. any homestead exemption or any other
exemption under applicable law;

     

    vi. any release, surrender, abandonment,
exchange, alteration, sale or other disposition, subordination, deterioration,
waste, failure to protect or preserve, impairment, or loss of, or any failure to
create or perfect any lien or security interest with respect to, or any other
dealings with, any collateral or security at any time existing or purported,
believed or expected to exist in connection with any or all of the Guaranteed
Obligations, or any impairment of Guarantor’s recourse against any person or
collateral;

     

    vii. whether express or by operation of law,
any partial release of the liability of Guarantor hereunder (except to the
extent expressly so released) or any complete or partial release of Borrower or
any other person liable, directly or indirectly, for the payment or performance
of any or all of the Guaranteed Obligations;

     

    viii. the death, insolvency, bankruptcy,
disability, dissolution, liquidation, termination, receivership, reorganization,
merger, consolidation, change of form, structure or ownership, sale of all
assets, or lack of corporate, partnership or other power of Borrower or any
other person at any time liable for the payment or performance of any or all of
the Guaranteed Obligations;

     

    ix. either with or without notice to or
consent of Guarantor, any renewal, extension, modification, supplement,
subordination or rearrangement of the terms of any or all of the Guaranteed
Obligations and/or the Note or the Mortgage, including without limitation,
material alterations of the terms of payment (including changes in maturity
date(s) and interest rate(s)) or performance or any other terms thereof, or any
waiver, termination, or release of, or consent to departure from, the Note or
the Mortgage or any other guaranty of any or all of the Guaranteed Obligations,
or any adjustment, indulgence, forbearance, or compromise that may be granted
from time to time by Lender to Borrower or any other person at any time liable
for the payment or performance of any or all of the Guaranteed
Obligations;

     

    x. any neglect, lack of diligence, delay,
omission, failure, or refusal of Lender to take or prosecute (or in taking or
prosecuting) any action for the collection or enforcement of any of the
Guaranteed Obligations, or to foreclose or take or prosecute any action to
foreclose (or in foreclosing or taking or prosecuting any action to foreclose)
upon any security therefor, or to exercise (or in exercising) any other right or
power with respect to any security therefor, or to take or prosecute (or in
taking or prosecuting) any action in connection with the Note or the Mortgage,
or any failure to sell or otherwise dispose of in a commercially reasonable
manner any collateral securing any or all of the Guaranteed
Obligations;

     

    xi. any failure of Lender to notify
Guarantor of any creation, renewal, extension, rearrangement, modification,
supplement, subordination, or assignment of the Guaranteed Obligations or any
part thereof, or of the Note or Mortgage, or of any release of or change in any
security, or of the occurrence or existence of any default, or of any other
action taken or refrained from being taken by Lender against Borrower or any
security or other recourse, or of any new agreement between Lender and Borrower,
it being understood that Lender shall not be required to give Guarantor any
notice of any kind under any circumstances with respect to or in connection with
the Guaranteed Obligations, any and all rights to notice Guarantor may have
otherwise had being hereby waived by Guarantor, and Guarantor shall be
responsible for obtaining for itself information regarding Borrower, including,
but not limited to, any changes in the business or financial condition of
Borrower, and Guarantor acknowledges and agrees that Lender shall have no duty
to notify Guarantor of any information which Lender may have concerning
Borrower;

     

    xii. if for any reason Lender is required to
refund any payment by Borrower to any other party liable for the payment or
performance of any or all of the Guaranteed Obligations or pay the amount
thereof to someone else;

     

    xiii. the making of advances by Lender to
protect its interest in the collateral for the Indebtedness, preserve the value
of such collateral or for the purpose of performing any term or covenant
contained in the Note or the Mortgage;

     

    xiv. the existence of any claim,
counterclaim, set-off or other right that Guarantor may at any time have against
Borrower, Lender, or any other person, whether or not arising in connection with
this Guaranty, the Note or the Mortgage;

     

    xv. the unenforceability of all or any part
of the Guaranteed Obligations against Borrower, whether because the Guaranteed
Obligations exceed the amount permitted by Law or violate any usury law, or
because the act of creating the Guaranteed Obligations, or any part thereof, is
ultra vires, or
because the officers or persons creating the Guaranteed Obligations acted in
excess of their authority, or because of a lack of validity or enforceability of
or defect or deficiency in any of the Loan Documents, or because Borrower has
any valid defense, claim or offset with respect thereto, or because Borrower’s
obligation ceases to exist by operation of law, or because of any other reason
or circumstance, it being agreed that Guarantor shall remain liable hereon
regardless of whether Borrower or any other person be found not liable on the
Guaranteed Obligations, or any part thereof, for any reason (and regardless of
any joinder of Borrower or any other party in any action to obtain payment or
performance of any or all of the Guaranteed Obligations);

     

    xvi. any order, ruling or plan of
reorganization emanating from proceedings under Title 11 of the United States
Code with respect to Borrower or any other Person, including any extension,
reduction, composition, or other alteration of the Guaranteed Obligations,
whether or not consented to by Lender, or any action taken or omitted by Lender
in any such proceedings, including any election to have Lender’s claim allowed
as being secured, partially secured or unsecured, any extension of credit by
Lender in any such proceedings or the taking and holding by Lender of any
security for any such extension of credit;

     

    xvii. any other condition, event, omission,
action or inaction that would in the absence of this paragraph result in the
release or discharge of the Guarantor from the performance or observance of any
obligation, covenant or agreement contained in this Guaranty or any other
agreement;

     

    xviii. any early termination of any of the
Guaranteed Obligations; or

     

    xix. Lender’s enforcement or forbearance
from enforcement of the Guaranteed Obligations on a net or gross
basis.

     

    (b)           In
the event any payment by Borrower or any other Person to Lender is held to
constitute a preference, fraudulent transfer or other voidable payment under any
bankruptcy, insolvency or similar Law, or if for any other reason Lender is
required to refund such payment or pay the amount thereof to any other party,
such payment by Borrower or any other party to Lender shall not constitute a
release of Guarantor from any liability hereunder, and this Guaranty shall
continue to be effective or shall be reinstated (notwithstanding any prior
release, surrender or discharge by Lender of this Guaranty or of Guarantor), as
the case may be, with respect to, and this Guaranty shall apply to, any and all
amounts so refunded by Lender or paid by Lender to another person (which amounts
shall constitute part of the Guaranteed Obligations), and any interest paid by
Lender and any reasonable attorneys’ fees, costs and expenses paid or incurred
by Lender in connection with any such event.

     

    (c)           It
is the intent of Guarantor and Lender that the obligations and liabilities of
Guarantor hereunder are absolute, irrevocable and unconditional under any and
all circumstances and that until the Guaranteed Obligations are fully and
finally paid and performed, and not subject to refund or disgorgement, the
obligations and liabilities of Guarantor hereunder shall not be discharged or
released, in whole or in part, by any act or occurrence that might, but for the
provisions of this Guaranty, be deemed a legal or equitable discharge or release
of a guarantor.

     

    (d)           Guarantor’s
obligations shall not be affected, impaired, lessened or released by loans,
credits or other financial accommodations now existing or hereafter advanced by
Lender to Borrower in excess of the Guaranteed Obligations.  All
payments, repayments and prepayments of the Indebtedness, whether voluntary or
involuntary, received by Lender from Borrower, any other person or any other
source (other than from Guarantor pursuant to a demand by Lender hereunder), and
any amounts realized from any collateral for the Loan, shall be deemed to be
applied first to any portion of the Note which is not covered by this Guaranty,
and last to the Guaranteed Obligations, and this Guaranty shall bind Guarantor
to the extent of any Guaranteed Obligations that may remain owing to
Lender.  Lender shall have the right to apply any sums paid by
Guarantor to any portion of the Note in Lender’s sole and absolute
discretion.

     

    (e)           If
acceleration of the time for payment of any amount payable by Borrower under the
Note, the Mortgage is stayed or delayed by any Law or tribunal, all such amounts
shall nonetheless be payable by Guarantor on demand by Lender.

     

    Section
5                      Subordination.

    

    If, for
any reason whatsoever, Borrower is now or hereafter becomes indebted to
Guarantor:

     

    (a)           such
indebtedness and all interest thereon and all liens, security interests and
rights now or hereafter existing with respect to property of Borrower securing
such indebtedness shall, at all times, be subordinate in all respects to the
Guaranteed Obligations and to all liens, security interests and rights now or
hereafter existing to secure the Guaranteed Obligations;

    

    (b)           Guarantor
shall not be entitled to enforce or receive payment, directly or indirectly, of
any such indebtedness of Borrower to Guarantor until the Guaranteed Obligations
have been fully and finally paid and performed; provided, however, that so long
as no default shall have occurred and be continuing, Guarantor shall not be
prohibited from receiving such (i) reasonable management fees or reasonable
salary from Borrower as Lender may find acceptable from time to time in its sole
and absolute discretion, and (ii) distributions from Borrower in an amount equal
to any income taxes imposed on Guarantor which are attributable to Borrower’s
income from the Property;

    

    (c)           Guarantor
hereby assigns and grants to Lender a security interest in all such indebtedness
and security therefor, if any, of Borrower to Guarantor now existing or
hereafter arising, including any dividends and payments pursuant to debtor
relief or insolvency proceedings referred to below.  In the event of
receivership, bankruptcy, reorganization, arrangement or other debtor relief or
insolvency proceedings involving Borrower as debtor, Lender on behalf of itself
and each and every other Lender shall have the right to prove its claim in any
such proceeding so as to establish its rights hereunder and shall have the right
to receive directly from the receiver, trustee or other custodian (whether or
not a default shall have occurred or be continuing under the Note or the
Mortgage), dividends and payments that are payable upon any obligation of
Borrower to Guarantor now existing or hereafter arising, and to have all
benefits of any security therefor, until the Guaranteed Obligations have been
fully and finally paid and performed.  If, notwithstanding the
foregoing provisions, Guarantor should receive any payment, claim or
distribution that is prohibited as provided above in this Section 4, Guarantor
shall pay the same to Lender immediately, Guarantor hereby agreeing that it
shall receive the payment, claim or distribution in trust for Lender and shall
have absolutely no dominion over the same except to pay it immediately to
Lender; and

    

    (d)           Guarantor
shall promptly upon request of Lender from time to time execute such documents
and perform such acts as Lender may require to evidence and perfect its interest
and to permit or facilitate exercise of its rights under this Section 5, including,
but not limited to, execution and delivery of proofs of claim, further
assignments and security agreements, and delivery to Lender of any promissory
notes or other instruments evidencing indebtedness of Borrower to
Guarantor.  All promissory notes, accounts receivable ledgers or other
evidences, now or hereafter held by Guarantor, of obligations of Borrower to
Guarantor shall contain a specific written notice thereon that the indebtedness
evidenced thereby is subordinated under and is subject to the terms of this
Guaranty.

    

    Section
6                      Other Liability of Guarantor
or Borrower.

    

    If
Guarantor is or becomes liable, by endorsement or otherwise, for any
indebtedness owing by Borrower to Lender 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 have against Guarantor.  If Borrower is or becomes indebted to
Lender for any indebtedness other than or in excess of the Indebtedness for
which Guarantor is liable under this Guaranty, any payment received or recovery
realized upon such other indebtedness of Borrower to Lender may be applied to
such other indebtedness.  This Guaranty is independent of (and shall
not be limited by) any other guaranty now existing or hereafter
given.  Further, Guarantor’s liability under this Guaranty is in
addition to any and all other liability Guarantor may have in any other
capacity, including without limitation, if applicable, its capacity as a general
partner.

     

    Section
7                      Lender
Assigns.

    

    This
Guaranty is for the benefit of Lender and Lender’s successors and assigns, and
in the event of an assignment of the Guaranteed Obligations, or any part
thereof, the rights and benefits hereunder, to the extent applicable to the
Guaranteed Obligations so assigned, may be transferred with such Guaranteed
Obligations.  Guarantor waives notice of any transfer or assignment of
the Guaranteed Obligations or any part thereof and agrees that failure to give
notice of any such transfer or assignment will not affect the liabilities of
Guarantor hereunder.  Lender may sell or offer to sell the Loan or
interests therein to one or more assignees or participants.  Guarantor
shall execute, acknowledge and deliver any and all instruments reasonably
requested by Lender in connection therewith, and to the extent, if any,
specified in any such assignment or participation, such assignee(s) or
participant(s) shall have the same rights and benefits with respect to the Note
and the Mortgage as such person(s) would have if such person(s) were Lender
hereunder.

     

    Section
8                      Binding Effect; Joint and
Several Liability.

    

    This
Guaranty is binding not only on Guarantor, but also on Guarantor’s heirs,
personal representatives, successors and assigns.  Upon the death of
Guarantor, if Guarantor is a natural person, this Guaranty shall continue
against Guarantor’s estate as to all of the Guaranteed Obligations, including
that portion incurred or arising after the death of Guarantor and shall be
provable in full against Guarantor’s estate, whether or not the Guaranteed
Obligations are then due and payable.  If this Guaranty is signed by
more than one Person, then all of the obligations of Guarantor arising hereunder
shall be jointly and severally binding on each of the undersigned, and their
respective heirs, personal representatives, successors and assigns, and the term
"Guarantor"
shall mean all of such Persons and each of them individually.

     

    Section
9                      Governing Law; Forum;
Consent to Jurisdiction.

    

    The
validity, enforcement, and interpretation of this Guaranty, shall for all
purposes be governed by and construed in accordance with the laws of the State
of New Jersey and applicable United States federal law, and is intended to be
performed in accordance with, and only to the extent permitted by, such
laws.  All obligations of Guarantor hereunder are payable and
performable at the place or places where the Guaranteed Obligations are payable
and performable.  Guarantor hereby irrevocably submits generally and
unconditionally for Guarantor and in respect of Guarantor’s property to the
non-exclusive jurisdiction of any state court, or any United States federal
court, sitting in the State of New Jersey, over any suit, action or proceeding
arising out of or relating to this Guaranty or the Guaranteed
Obligations.  Guarantor hereby irrevocably waives, to the fullest
extent permitted by law, any objection that Guarantor may now or hereafter have
to the laying of venue in any such court and any claim that any such court is an
inconvenient forum.  Final judgment in any such suit, action or
proceeding brought in any such court shall be conclusive and binding upon
Guarantor and may be enforced in any court in which Guarantor is subject to
jurisdiction.  Guarantor hereby agrees and consents that, in addition
to any methods of service of process provided for under applicable law, all
service of process in any such suit, action or proceeding in any state court, or
any United States federal court, sitting in the state specified in the first
sentence of this Section may be made by certified or registered mail, return
receipt requested, directed to Guarantor at the address set forth at the end of
this Guaranty, or at a subsequent address of which Lender receives actual notice
from Guarantor in accordance with the notice provisions hereof, and service so
made shall be complete five (5) days after the same shall have been so
mailed.  Nothing hereon shall affect the right of Lender to serve
process in any manner permitted by law or limit the right of Lender to bring
proceedings against Guarantor in any other court or
jurisdiction.  Guarantor hereby releases, to the extent permitted by
applicable law, all errors and all rights of exemption, appeal, stay of
execution, inquisition, and other rights to which Guarantor may otherwise be
entitled under the laws of the United States of America or any State or
possession of the United States of America now in force or which may hereinafter
be enacted.  The authority and power to appear for and enter judgment
against the Guarantor shall not be exhausted by one or more exercises thereof or
by any imperfect exercise thereof and shall not be extinguished by any judgment
entered pursuant thereto. Such authority may be exercised on one or more
occasions or from time to time in the same or different jurisdiction as often as
the Lender shall deem necessary and desirable.

     

    Section
10                      Invalidity of Certain
Provisions.

    

    If any
provision of this Guaranty or the application thereof to any person or
circumstance shall, for any reason and to any extent, be declared to be invalid
or unenforceable, neither the remaining provisions of this Guaranty nor the
application of such provision to any other person or circumstance shall be
affected thereby, and the remaining provisions of this Guaranty, or the
applicability of such provision to other persons or circumstances, as
applicable, shall remain in effect and be enforceable to the maximum extent
permitted by applicable law.

     

    Section
11                      Costs and Expenses of
Enforcement.

    

    Guarantor
agrees to pay to Lender on demand all costs and expenses incurred by Lender in
seeking to enforce Lender’s rights and remedies under this Guaranty, including,
without limitation, court costs, costs of alternative dispute resolution and
reasonable attorneys’ fees, whether or not suit is filed or other proceedings
are initiated hereon.  All such costs and expenses incurred by Lender
shall constitute a portion of the Guaranteed Obligations hereunder, shall be
subject to the provisions hereof with respect to the Guaranteed Obligations and
shall be payable by Guarantor on demand by Lender.

     

    Section
12                      No
Usury.

    

    It is not
the intention of Lender or Guarantor to obligate Guarantor to pay interest in
excess of that lawfully permitted to be paid by Guarantor under applicable
law.  Should it be determined that any portion of the Guaranteed
Obligations or any other amount payable by Guarantor under this Guaranty
constitutes interest in excess of the maximum amount of interest that Guarantor,
in Guarantor’s capacity as guarantor, may lawfully be required to pay under
applicable law, the obligation of Guarantor to pay such interest shall
automatically be limited to the payment thereof in the maximum amount so
permitted under applicable law.  The provisions of this Section shall
override and control all other provisions of this Guaranty and of any other
agreement between Guarantor and Lender.

     

    Section
13                      Representations, Warranties,
and Covenants of Guarantor.

    

    Guarantor
hereby represents, warrants, and covenants that (a) Guarantor has a financial
interest in Borrower and will derive a material and substantial benefit,
directly or indirectly, from Lender accepting the Note from Borrower and from
the making of this Guaranty by Guarantor; (b) this Guaranty is duly authorized
and valid, and is binding upon and enforceable against Guarantor; (c) Guarantor
is not, and the execution, delivery and performance by Guarantor of this
Guaranty will not cause Guarantor to be, in violation of or in default with
respect to any law or in default (or at risk of acceleration of indebtedness)
under any agreement or restriction by which Guarantor is bound or affected; (d)
Guarantor has full power and authority to enter into and perform this Guaranty;
(e) Guarantor will indemnify the Lender from any loss, cost or expense actually
incurred as a result of any representation or warranty of the Guarantor being
false, incorrect, incomplete or misleading in any material respect; (f) after
giving effect to this Guaranty, Guarantor is solvent, and does not intend to
incur or believe that he will incur debts that will be beyond his ability to pay
as such debts mature; (g) Lender has no duty at any time to investigate or
inform Guarantor of the financial or business condition or affairs of Borrower
or any change therein, and Guarantor will keep fully appraised
of  Borrower's financial and business condition; (h) Guarantor
acknowledges and agrees that Guarantor may be required to pay and perform the
Guaranteed Obligations in full without assistance or support from the Borrower
or any other person; (i) Guarantor has read and fully understands the provisions
contained in the Note and the Mortgage.  Guarantor shall immediately
notify Lender of the occurrence of any material adverse change in the financial
condition of Guarantor.  Guarantor's representations, warranties and
covenants are a material inducement to Lender to accept the Note from Borrower
and shall survive the execution hereof and any bankruptcy, foreclosure, transfer
of security or other event affecting Borrower, Guarantor, any other party, or
any security for all or any part of the Guaranteed Obligations.

    

    Guarantor’s representations, warranties
and covenants are a material inducement to Lender to accept the Note from
Borrower and shall survive the execution hereof and any bankruptcy, foreclosure,
transfer of security or other event affecting Borrower, Guarantor, any other
party, or any security for all or any part of the Guaranteed
Obligations.

    

    Section
14                      Notices.

    

    All
notices, requests, consents, demands and other communications required or which
any party desires to give hereunder or under the Note and the Mortgage shall be
in writing and, unless otherwise specifically provided in the Note or the
Mortgage, shall be deemed sufficiently given or furnished if delivered by
personal delivery, by nationally recognized overnight courier service, or by
certified United States mail, postage prepaid, addressed to the party to whom
directed at the addresses specified in this Guaranty unless changed by similar
notice in writing given by the particular party whose address is to be changed)
or by facsimile (with a confirmatory duplicate copy sent by first class United
States mail).  Any such notice or communication shall be deemed to
have been given either at the time of personal delivery or, in the case of
courier or mail, as of the date of first attempted delivery at the address and
in the manner provided herein, or, in the case of facsimile, upon receipt;
provided that service of a notice required by any applicable statute shall be
considered complete when the requirements of that statute are
met.  Notwithstanding the foregoing, no notice of change of address
shall be effective except upon actual receipt.  This Section shall not
be construed in any way to affect or impair any waiver of notice or demand
provided in this Guaranty or in the Note or the Mortgage or to require giving of
notice or demand to or upon any person in any situation or for any
reason.

     

    Section
15                      Cumulative
Rights.

    

    All of
the rights and remedies of Lender under this Guaranty and the Note and the
Mortgage are cumulative of each other and of any and all other rights at law or
in equity, and the exercise by Lender of any one or more of such rights and
remedies shall not preclude the simultaneous or later exercise by Lender of any
or all such other rights and remedies.  No single or partial exercise
of any right or remedy shall exhaust it or preclude any other or further
exercise thereof, and every right and remedy may be exercised at any time and
from time to time.  No failure by Lender to exercise, nor delay in
exercising, any right or remedy shall operate as a waiver of such right or
remedy or as a waiver of any default.  No notice to or demand on
Guarantor in any case shall of itself entitle Guarantor to any other or further
notice or demand in similar or other circumstances.  No provision of
this Guaranty or any right or remedy of Lender with respect hereto, or any
default or breach, can be waived, nor can this Guaranty or Guarantor be released
or discharged in any way or to any extent, except specifically in each case by a
writing intended for that purpose (and which refers specifically to this
Guaranty) executed and delivered by Lender to Guarantor.

     

    Section
16                      Term of
Guaranty.

    

    This
Guaranty shall continue in effect until all the Guaranteed Obligations and all
of the obligations of Guarantor to Lender under this Guaranty are fully and
finally paid, performed and discharged and are not subject to any bankruptcy
preference period or any other disgorgement.

     

    Section
17                      Subrogation.

     

    Guarantor
shall not have any right of subrogation under any of the Loan Documents or any
right to participate in any security for the Guaranteed Obligations or any right
to reimbursement, exoneration, contribution, indemnification or any similar
rights, until the Guaranteed Obligations have been fully and finally paid,
performed and discharged in accordance with Section 16 above, and
Guarantor hereby waives all of such rights.

     

    Section
18                      Time of
Essence.

    

    Time
shall be of the essence in this Guaranty with respect to all of Guarantor’s
obligations hereunder.

     

    Section
19                      Entire Agreement;
Counterparts; Construction.

    

    This
Guaranty embodies the entire agreement between Lender and Guarantor with respect
to the guaranty by Guarantor of the Guaranteed Obligations.  This
Guaranty supersedes all prior agreements and understandings, if any, with
respect to the guaranty by Guarantor of the Guaranteed
Obligations.  This Guaranty shall be effective upon execution by
Guarantor and delivery to Lender.  This Guaranty may not be modified,
amended or superseded except in a writing signed by Lender and Guarantor
referencing this Guaranty by its date and specifically identifying the portions
hereof that are to be modified, amended or superseded.  This Guaranty
has been executed in a number of identical counterparts, each of which shall be
deemed an original for all purposes and all of which constitute, collectively,
one agreement.  As used herein, the words "include" and "including"
shall be interpreted as if followed by the words "without
limitation."

     

    Section
20                      Forum.

    

    Guarantor
hereby irrevocably submits generally and unconditionally for itself and in
respect of its property to the jurisdiction of any state court or any United
States federal court sitting in the State specified in the governing law section
of this Guaranty and to the jurisdiction of any state court or any United States
federal court sitting in the state in which any of the Property is located, over
any dispute.  Guarantor hereby irrevocably waives, to the fullest
extent permitted by Law, any objection that Guarantor may now or hereafter have
to the laying of venue in any such court and any claim that any such court is an
inconvenient forum.  Guarantor hereby agrees and consents that, in
addition to any methods of service of process provided for under applicable law,
all service of process in any such suit, action or proceeding in any state court
or any United States federal court sitting in the state specified in the
governing law section of this Guaranty may be made by certified or registered
mail, return receipt requested, directed to Guarantor at its address for notice
set forth in this Guaranty, or at a subsequent address of which Lender received
actual notice from Guarantor in accordance with the notice section of this
Guaranty, and service so made shall be complete five (5) days after the same
shall have been so mailed.  Nothing herein shall affect the right of
Lender to serve process in any manner permitted by law or limit the right of
Lender to bring proceedings against Guarantor in any other court or
jurisdiction.  Guarantor hereby releases, to the extent permitted by
applicable law, all errors and all rights of exemption, appeal, stay of
execution, inquisition, and other rights to which Guarantor may otherwise be
entitled under the laws of the United States of America or of any state of
possession of the United States of America now in force and which may
hereinafter be enacted.  The authority and power to appear for and
enter judgment against Guarantor shall not be exhausted by one or more exercises
thereof or by any imperfect exercise thereof and shall not be extinguished by
any judgment entered pursuant thereto.  Such authority may be
exercised on one or more occasions or from time to time in the same or different
jurisdiction as often as Lender shall deem necessary and desirable, for all of
which this Guaranty shall be sufficient warrant.

    

    Section
21                      WAIVER OF JURY
TRIAL.

    

    IT
IS AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY
OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING
CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS GUARANTY.  THIS
WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY GUARANTOR AND LENDER, AND
GUARANTOR AND LENDER HEREBY REPRESENT THAT NO REPRESENTATIONS OF FACT OR OPINION
HAVE BEEN MADE BY ANY PERSON OR ENTITY TO INDUCE THIS WAIVER OF TRIAL BY JURY OR
TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT.  THIS PROVISION IS A
MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THE NOTE AND
MORTGAGE.  GUARANTOR AND LENDER ARE EACH HEREBY AUTHORIZED TO FILE A
COPY OF THIS SECTION IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER OF
JURY TRIAL.  GUARANTOR FURTHER REPRESENTS AND WARRANTS THAT IT HAS
BEEN REPRESENTED IN THE SIGNING OF THIS GUARANTY AND IN THE MAKING OF THIS
WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE
REPRESENTED BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT
IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

    

    THE
NOTE AND MORTGAGE REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES.

     

    SIGNATURE
OF GUARANTOR ON FOLLOWING PAGE

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, Guarantor duly executed this Guaranty under seal as of the date
first written above.

     

    

    GUARANTOR:

    
 

    The
address of Guarantor is:

    
 

    930 Stoke
Road

    Villanova,
Pennsylvania  19085                                                                                     ____________________________________(SEAL)

    Fax No.
(610)
878-7466                                                                                     
J. Brian O'Neill

    

    With a
copy to:

    

    Macartney,
Mitchell & Campbell, LLC

    2701
Renaissance Boulevard

    4th
Floor

    King of
Prussia, PA  19046

    Attn:  Sean
E. Mitchell, Esq.

    Fax
No:  (215) 689-2767

    

    

    Address
of Lender:

    

    NL
Environmental Management Services, Inc.

    NL
Industries, Inc.

    5430 LBJ
Freeway

    Suite
1700

    Dallas,
TX  75240

    Attention:  General
Counsel

    

    with a
copy to:

    

    Christopher
R. Gibson, Esq.

    Archer
& Greiner, P.C.

    One
Centennial Square

    Haddonfield,
NJ  08033

    

    

    

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    COMMONWEALTH
OF PENNSYLVANIA, COUNTY OF ______________, TO WIT:

    

    I HEREBY
CERTIFY, that on this ______ day of ______________, 2008, before me, the
undersigned Notary Public of said State, personally appeared J. Brian O'Neill,
known to me (or satisfactorily proven) to be the person whose name is subscribed
to the within instrument, and acknowledged that he executed the same for the
purposes therein contained.

    

    WITNESS
my hand and Notarial Seal.

    

    

    

    _______________________________________________

    Notary
Public

    

    My
Commission Expires:

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