Document:

EX-10.59

 

Exhibit 10.59

Summary of Compensation

for

Directors of R. G. Barry Corporation

     Directors who are employees of R. G. Barry Corporation (the “Company”) receive no additional
compensation for their service as a director. Each director of the Company who is not an employee
(a “Non-Employee Director”) receives $20,000 annually for his or her services as a director. In
addition, each Non-Employee Director receives $1,000 for each regularly scheduled meeting and $500
for each telephonic meeting of the Board of Directors attended. All members of standing committees
of the Board receive a fee of $500 for each committee meeting attended that occurs on the same day
as a Board meeting, a fee of $1,000 for attending a committee meeting that does not occur on the
same day as a Board meeting and a fee of $500 for participating in a telephonic meeting of a
committee. In addition, the Chairman of the Board and the recording secretary for the meeting
receive $500 for each committee meeting attended, regardless whether they serve on the committee.

     The Chairman of the Board and the Chairs of the Audit Committee, the Compensation Committee
and the Nominating and Governance Committees each receive an additional annual retainer of $5,000.

     In 2005, the Company began granting equity awards to the Non-Employee Directors on an annual
basis as part of director compensation. In March 2005, the Company granted non-qualified stock
options to Messrs. Lauer, Lautzenhiser, Stan and Weinberg and Ms. Page to purchase 10,000 common
shares at an exercise price of $3.80, the fair market value of the Company’s common shares on the
grant date. These options have terms of five years and become exercisable in three equal annual
installments. In June 2005, the Company granted non-qualified stock options to Nicholas P. DiPaolo
and David L. Nichols to purchase 10,000 common shares at an exercise price of $4.50, the fair
market value of the Company’s common shares on the grant date. These options have terms of five
years and become exercisable in three equal annual installments.

     In May 2006, the Company granted to each of Messrs. DiPaolo, Lautzenhiser, Lauer, Nichols,
Stan, Weinberg and Zacks and to Ms. Page 5,633 restricted stock units. These restricted stock
units will vest in full on the first anniversary of the date of the award and, upon vesting, will
be settled in an equivalent number of common shares of the Company.EX-10.1.8

 

Exhibit 10.1.8

SIXTH AMENDMENT TO

LOAN AGREEMENT,

SECURED PROMISSORY NOTE

AND

SECURITY AGREEMENT

     THIS SIXTH AMENDMENT TO LOAN AGREEMENT, SECURED PROMISSORY NOTE AND SECURITY AGREEMENT (“this
Sixth Amendment”), is made and effective as of September                     , 2006 (the “Effective Date), by WAYNE
R. HELLMAN (“Hellman”), and ADVANCED LIGHTING TECHNOLOGIES, INC. (“ADLT”).

BACKGROUND

     A. Hellman and ADLT entered into a Loan Agreement dated as of October 8, 1998 (the “Original
Loan Agreement”), pursuant to which ADLT advanced Hellman $9,000,000 (the “Original Advance”).

     B. Pursuant to the Original Loan Agreement, the Original Advance was evidenced by a Secured
Promissory Note dated October 8, 1998 (the “Original Note”) and secured pursuant to (i) a Security
Agreement dated as of October 8, 1998 (the “Original Security Agreement”), (ii) the Real Estate
Mortgages recorded as follows: June 30, 1999 Geauga County Ohio No 1245 page 39, June 30, 1999,
Portage County Ohio No. 441 Page 202 and No. 441 Page 214 (such mortgages in Portage County being
referred to as the “Portage Mortgages”), and August 24, 1999 Lee County Florida Book 3160 Page 1096
(collectively, such four mortgages are referred to as the “Mortgages”), (iii) the Collateral
Assignment of Contract dated as of October 8, 1998 (the “Assignment”), and (iv) Allonge No. 2 to
Promissory Note From 24 Karat Street, Inc. with delivery of the referenced note the (the “Karat
Note”).

     C. Effective November 22, 2000, the Loan, the Note and the Security Agreement were amended
pursuant to the First Amendment to Loan Agreement, Secured Promissory Note and Security Agreement
(“First Amendment”) to provide for additional loans, up to a maximum additional principal amount of
$1,900,000, for the purpose of reducing the Margin Loans held by Bear Stearns and Raymond James,
the then current Margin Lenders, in satisfaction of then-existing margin calls.

     D. Effective March 15, 2001, the Loan, the Note and the Security Agreement
were amended pursuant to the Second Amendment to Loan Agreement, Secured Promissory Note and
Security Agreement (“Second Amendment”) to provide for additional loans, for the purpose of
reducing the Margin Loans held by Bear Stearns and Raymond James, in satisfaction of then-existing
margin calls.

     E. On March 15, 2001 and thereafter, Advanced Lighting made Additional

Page 1 of 16

 

 

Advances pursuant to the Second Amendment in the aggregate principal amount of
$1,889,350.

     F. Effective April 25, 2002, the Loan, the Note and the Security Agreement were amended
pursuant to the Third Amendment to Loan Agreement, Secured Promissory Note and Security Agreement
(“Third Amendment”) to prohibit any pledge of shares of ADLT stock owned by Hellman without consent
of ADLT as long as the Loan was outstanding, to amend the interest rate payable on the Loan and to
provide adequate time for Hellman to pay the principal of, and interest on, the Loan.

     G. The Loan, the Note and the Security Agreement were amended pursuant to the Fourth Amendment
to Loan Agreement, Secured Promissory Note and Security Agreement dated as of January 5, 2004
(“Fourth Amendment”) to reflect the Settlement Agreement, as defined below.

     H. The Loan, the Note and the Security Agreement were amended pursuant to the Fifth Amendment
to Loan Agreement, Secured Promissory Note and Security Agreement dated February 19, 2004 (“Fifth
Amendment”) to reflect the First Amendment to the Settlement Agreement, as defined below. The
Original Loan Agreement, the Original Note and the Original Security Agreement, each as amended by
the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment and the Fifth
Amendment, are referred to herein as the Loan Agreement, the Note and the Security Agreement,
respectively.

     I. For purposes of this Sixth Amendment, the Loan Agreement, the Note, the Security Agreement,
the Florida Second Mortgage (as defined below), the Assignment and the Karat Note are included in
the “Loan Documents” as defined in the Loan Agreement, and the Mortgages are not “Loan Documents.”
For purposes of this Sixth Amendment, the term “Loan Documents” also includes the First, Second,
Third, Fourth and Fifth Amendments, and the Settlement Agreement, as defined below. All initially
capitalized terms that are used but not defined herein have the meaning ascribed to them in the
Loan Documents.

     K. The principal amount of the outstanding loan under the Loan Agreement has been reduced
substantially and Hellman and ADLT anticipate that it will paid in accordance with its terms from
the net after-tax proceeds of bonuses paid to Hellman by ADLT in accordance with the terms of the
Loan Agreement.

AGREEMENT

     NOW THEREFORE, as an inducement to and in consideration of the agreement by ADLT to substitute
the Florida Second Mortgage for the Portage Mortgages, Hellman and ADLT agree as follows:

     1. The Loan Agreement is hereby amended to (a) delete the property subject
to the Portage Mortgages (the “Ohio Property”) from the definition of “Collateral” and to include
the residence of Hellman and Diane Hellman in Lee County, Florida (the

Page 2 of 16

 

 

“Florida Property”) in the
definition of “Collateral”; and (b) to provide that all liens, encumbrances and mortgages held by
ADLT in and to the Ohio Property be released and cancelled. The Loan Agreement and the Note are
hereby amended to provide that the principal and interest on the Loan shall be payable on demand or
July 30, 2007, whichever shall first occur. The parties expressly acknowledge that the
effectiveness of this Sixth Amendment is subject to receipt by ADLT of (A) a legal, valid and
binding mortgage on the Florida Property in substantially the form of Annex A hereto (the “Florida
Second Mortgage”) for filing in Lee County, Florida and (B) payment of $785,727 in respect of the
Loan, and that it will not be valid or enforceable against any party absent such delivery and such
payment.

     2. Hellman acknowledges and agrees that (i) (a) the Security Interest granted in the Security
Agreement, (b) the liens granted in the Florida Second Mortgage, (c) the rights of ADLT under the
Assignment and Karat Note and (d) all other rights and instruments that now or hereafter secure the
Loan and Hellman’s Obligations with respect thereto, secure the Additional Advances as amounts
advanced to Hellman under the Loan Documents and (ii) in addition to, and without limiting the
descriptions of Collateral contained in any of the Loan Documents, the Collateral includes all
choses in action in which Hellman is directly or indirectly the plaintiff and the proceeds from all
choses in action, and Hellman shall immediately notify ADLT of any such choses in action and take
all necessary action to enable ADLT to perfect its interest in such choses in action. Hellman
expressly acknowledges, agrees and reaffirms the validity and enforceability of all of the Loan
Documents as modified by this Sixth Amendment and the Settlement Agreement, and waives any and all
defenses that he has asserted or could assert to defeat ADLT’s right to enforce the Loan Documents,
as so modified.

     3. Hellman represents and warrants to ADLT that on the date hereof (i) he is not in breach of
any covenant in any Loan Document and (ii) all representations and warranties in the Loan Documents
are true and correct except as has been disclosed to ADLT in writing.

     4. Hellman acknowledges and agrees that he will make immediate payments of the outstanding
principal and interest on the Loan in the amount of (i) the after-tax proceeds of any bonuses
payable by ADLT or any affiliate, which after-tax proceeds will be subject to an express right of
offset by ADLT, (ii) the after-tax proceeds of any sales of any and all Collateral, and any other
amounts received by Hellman in respect of such Collateral and (iii) the after-tax proceeds of any
Margin Shares.

     5. Hellman will take all actions and execute all instruments as requested by ADLT, in order to
perfect, and keep perfected, all liens in any of the Collateral granted to ADLT, including in any
after acquired Collateral and to perfect rights with respect to the Additional Advances.

     6. This Sixth Amendment shall be governed by and construed in accordance with the laws of Ohio
without regard to conflict of laws principles (except to the extent
the Collateral is situated in a state other than Ohio and in that case any laws of such state which
are required to control mortgages granted on such property shall apply).

Page 3 of 16

 

 

     7. This Sixth Amendment inures to the benefit of and is binding upon Hellman, and his estate,
heirs, executors, administrators and personal representatives, successors and assigns and ADLT and
its successors and assigns. Hellman may not assign or delegate this Amendment, any Loan Document or
any of his rights or obligations thereunder.

     8. This Sixth Amendment may be executed in any number of counterparts, each of which shall be
regarded as an original and all of which shall constitute but one and the same instrument; it shall
not be necessary in proving this Agreement to produce or account for more than one such
counterpart. A faxed executed counterpart of this Amendment will be considered an original for
evidentiary purposes.

     9. This Sixth Amendment only modifies the Loan Documents to the extent provided for herein,
and the Loan Documents otherwise remain in full force and effect without interruption. This Sixth
Amendment may not be amended, changed, modified, altered or terminated and no performance may be
waived except in writing executed by both parties.

     13. This Sixth Amendment and the Loan Documents, including, without limitation, the Settlement
Agreement, constitute the entire agreement between the parties with respect to the Loan Documents
and all prior and contemporaneous agreements or discussions, written or oral, with respect thereto
have no force or effect whatsoever. If any amendment of the terms of the Loan Documents contained
in this Sixth Amendment shall be contrary to applicable law, such amendment shall be of no force or
effect and the Loan Documents shall remain in full force and effect without any such amendment.

     IN WITNESS WHEREOF, Hellman and ADLT have caused this Sixth Amendment to be duly executed and
delivered as of the Effective Date.

	 	 	 	 	 	 	 
	 	 	/s/ Wayne R. Hellman	 	 
	 	 	 	 	 
	 	 	WAYNE R. HELLMAN	 	 
	 
	 	 	 	 	 	 
	 	 	ADVANCED LIGHTING TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Wayne J. Vespoli	 	 
	 

	 	 	 	 	 	 

Page 4 of 16

 

 

ANNEX A

Form of Second Mortgage (attached)

Page 5 of 16

 

 

	 	 	 	 	 
	RECORDATION REQUESTED BY:	 	 
	 

	 	Advance Lighting Technologies, Inc.	 	 
	 

	 	32000 Aurora Road	 	 
	 

	 	Solon, Ohio 44139	 	 
	 
	 	 	 	 
	WHEN RECORDED MAIL TO:	 	 
	 

	 	Wayne Vespoli	 	 
	 

	 	Chief Financial Officer	 	 
	 

	 	Advance Lighting Technologies, Inc.	 	 
	 

	 	32000 Aurora Road	 	 
	 

	 	Solon, Ohio 44139	 	 

FOR RECORDER’S USE ONLY

REAL ESTATE SECOND MORTGAGE

MAXIMUM LIEN. The maximum principal amount of loan indebtedness secured by this Second Mortgage is
$785,727.00.

     As an inducement to and in consideration of the amendment of the terms of a loan to the
undersigned, WAYNE R. HELLMAN (“Hellman”) by ADVANCED LIGHTING TECHNOLOGIES, INC., (“Mortgagee”),
an Ohio corporation having its principal offices at 32000 Aurora Road, Solon, Ohio 44139, pursuant
to the Loan Agreement dated as of October 8, 1998, as amended, by and between Hellman and Mortgagee
(the “Agreement”), and evidenced by the Secured Promissory Note dated as of October 8, 1998, as
amended, with a maturity date of July 31, 2007, made by Hellman to Mortgagee (the “Note”), and
further evidenced by the Security Agreement and the Collateral Assignment of Contract both dated as
of October 8, 1998, and both as amended, by and between Hellman and Mortgagee (respectively, the
“Security Agreement” and the “Assignment”), and for other valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Hellman and DIANE HELLMAN (Hellman and Diane Hellman
are referred to collectively as “Mortgagors”), having their principal residence at
                                        , hereby grant, bargain, sell, convey, mortgage, assign and grant a security
interest in and transfers unto Mortgagee, its successors and assigns, to have and to hold forever,
all right, title and interest of Mortgagors in and to the real property described in EXHIBIT A,
together with all other real properties now or hereafter made subject to the lien of this Mortgage
by supplemental mortgage or otherwise, and (i) in and to the buildings and other improvements now
or hereafter situated thereon; (ii) all privileges and appurtenances thereto; (iii) all fixtures
now or hereafter attached to and used in connection therewith; (iv) all renewals or replacements
thereof or articles in substitution therefor; (v) all proceeds of any of the foregoing or from any
insurance payable with respect thereto (from whatever source), or payments from any taking under
power of eminent domain of all or any portion thereof; and (vi) all rents, issues and profits or
other amounts due Mortgagors in respect thereof (collectively, the “Mortgaged Property”). This
Mortgage is made subject to all restrictions and easements of record, current taxes and
assessments.

Page 6 of 16

 

 

     1. This Mortgage secures the payment of principal in the amount of Seven Hundred Eighty Five
Thousand Seven Hundred Twenty Seven Dollars ($785,727.00), together with all interest thereon and
any other amounts now or hereafter owing from Hellman to Mortgagee hereunder, under the Note or the
Agreement, and under the Security Agreement and the Assignment and all other agreements entered
into by Hellman in connection therewith and Mortgagors in connection herewith, and the performance
of all other obligations of Mortgagors hereunder and thereunder (collectively, the “Obligations”).

     2. Mortgagors represent and warrant to Mortgagee that Mortgagors (i) are lawfully seized with
good and marketable title, in fee simple, to the real property included in the Mortgaged Property
and have good title to all personal property included in the Mortgaged Property, subject only to
Permitted Encumbrances (defined herein); (ii) have full right and authority to grant the interests
to Mortgagee as provided herein; and (iii) will warrant and defend to Mortgagee such title to the
Mortgaged Property and the lien and interest of Mortgagee therein and thereon against all claims
and demands whatsoever and will, except as otherwise herein expressly provided, maintain the
priority of the lien of, and the security interest granted by, this Mortgage upon the Mortgaged
Property until Mortgagors shall be entitled to defeasance as provided herein.

     3. Mortgagee, at its expense, shall cause this Mortgage, any instruments supplemental hereto,
financing statements, including all necessary amendments, supplements and appropriate continuation
statements to be recorded, registered and filed, and to be kept recorded, registered and filed, in
such manner and in such places as may be required in order to establish, preserve and protect the
lien of this Mortgage as a valid mortgage lien, subject only to Permitted Encumbrances (defined
herein).

     4. All property of every kind acquired by Mortgagors after the date hereof, which by the terms
hereof is intended to be subject to the lien of this Mortgage, shall immediately upon the
acquisition thereof by Mortgagors, and without further mortgage, conveyance or assignment, become
subject to the lien of this Mortgage as fully as though now owned by Mortgagors and specifically
described herein. Nevertheless, Mortgagors shall take such actions and execute and deliver such
additional instruments as Mortgagee shall reasonably require to further evidence or confirm the
subjection to the lien of this Mortgage of any such property.

     5. Mortgagors shall not sell, rent, convey, assign or transfer the Mortgaged Property or any
part or interest therein without the prior written consent of Mortgagee, which shall not be
unreasonably withheld. Mortgagors shall not directly or indirectly create or permit to remain, and
will promptly discharge, any mortgage, lien, encumbrance or charge on, pledge of, security interest
in or conditional sale or other title retention agreement with respect to the Mortgaged Property or
any part thereof or the interest of Mortgagors or Mortgagee therein or any revenues, income or
profit or other sums arising from the Mortgaged Property or any part thereof, (including, without
limitation, any lien, encumbrance or charge arising by operation of law) other than: (i) the lien
of this Mortgage and any other liens or rights of Mortgagee granted in any of the Loan Documents;
(ii) the lien of any lender identified in EXHIBIT A (the “Senior Lender”); (iii) liens for taxes,
assessments and other governmental charges which are not at the

Page 7 of 16

 

 

time required to be paid; (iv) liens of mechanics, materialmen, suppliers or vendors or rights
thereto for amounts which at the time are not required to be paid; and (v) purchase money security
interests in property purchased on credit or with borrowed money and which secures the repayment of
such credit or borrowed money (collectively, the “Permitted Encumbrances”).

     6. This Mortgage is also a security agreement and creates a security interest in and to the
Mortgaged Property to secure payment and performance of the Obligations. Hellman has executed and
delivered to Mortgagee a Security Agreement, dated as of even date herewith. To the extent the
Mortgaged Property is covered by both this Mortgage and said Security Agreement, the provisions of
both shall apply, but in the event of a conflict, the provisions of this Mortgage shall govern as
to all portions of the Mortgage Property as constitutes real property and fixtures and interests
therein, and the provisions of the Security Agreement shall govern as to all portions of the
Mortgaged Property as constitutes personal property.

     7. This Mortgage is intended to be effective under the Uniform Commercial Code as a financing
statement filed as a fixture filing, and, in compliance therewith, the following information is set
forth:

	 	(a)	 	The name and address of the record owner/debtor is:
	 
	 	 	 	Wayne R. Hellman

Diane Hellman
	 
	 	 	 	                                        
	 
	 	 	 	                                        
	 
	 	(b)	 	The name and address of the secured party is:
	 
	 	 	 	Advanced Lighting Technologies, Inc.

32000 Aurora Road

Solon, Ohio 44139

     (c) The property covered hereby is described in detail in EXHIBIT A, attached hereto.

     8. Mortgagors hereby authorize and empower Mortgagee, at its option, to do all things
authorized or required to be done by Mortgagee, as a mortgagee, under the laws of the state of
Florida and, if different, the state in which the Mortgaged Property is located, to protect its
interests in the Mortgaged Property.

     9. Nothing contained in this Mortgage shall constitute any request by Mortgagee, express or
implied, for the performance of any labor or services or the furnishing of any materials or other
property in respect of the Mortgaged Property or any part thereof, or be construed to give
Mortgagors any right, power or authority to contract for or permit the performance of any labor or
services or the furnishing of any materials or other property in such fashion as would provide the
basis for any claim either against Mortgagee or that any lien based

Page 8 of 16

 

 

on the performance of such labor or services or the furnishing of any such materials or other
property is prior to the lien of this Mortgage.

     10. Without affecting the liability of any other person liable for the payment of any
obligation herein mentioned, and without affecting the lien or charge of this Mortgage upon any
portion of the Mortgaged Property not then or theretofore released as security for the full amount
of all unpaid obligations, Mortgagee may, from time to time and without notice, (a) release any
person so liable; (b) extend the maturity or alter any of the terms of any such obligation; (c)
grant other indulgences; (d) release or reconvey, or cause to be released or reconveyed at any time
at Mortgagee’s option any parcel, portion or all of the Mortgaged Property; (e) take or release any
other or additional security for any obligation herein mentioned; or (f) make compositions or other
arrangements with debtors in relation thereto.

     11. Mortgagors shall pay promptly when due, and before penalty or interest accrue thereon, all
taxes, assessments, whether general or special, all other governmental charges and all public or
private utility charges of any kind whatsoever foreseen or unforeseen, ordinary or extraordinary
that now or may at any time hereafter be assessed, levied or imposed against or with respect to the
Mortgaged Property or any part thereof which, if not paid, may become or be made a lien on the
Mortgaged Property, or any part thereof.

     12. Mortgagors shall keep the real and personal property included in the Mortgaged Property
continuously insured with risk and liability insurance in such amounts as Mortgagee reasonably
requires. All insurance shall be obtained and maintained either by means of policies with generally
recognized, responsible insurance companies. Mortgagors shall furnish Mortgagee with a certificate
of insurance for each policy setting forth the coverage, the limits of liability, the name of the
carrier, the policy number and the expiration date. Each policy of insurance shall be written so as
not to be subject to cancellation or substantial modification which phrase shall include any
reduction in the scope or limits of coverage upon less than thirty (30) days advance written notice
to Mortgagee. All policies of insurance shall contain standard mortgage clauses requiring all
proceeds resulting from any claim for loss or damage to be paid to Mortgagee.

     13. Mortgagors, at their expense, shall comply with all laws with respect to the Mortgaged
Property, and shall keep (or cause to be kept) the Mortgaged Property in good order and condition
(ordinary wear and tear excepted) and shall make or cause to be made all necessary or appropriate
repairs, replacements and renewals thereof, interior, exterior, structural and non-structural,
ordinary and extraordinary, foreseen and unforeseen unless Mortgagee otherwise consents in writing.
Mortgagors shall not do, or permit to be done, any act or thing which might materially impair the
value or usefulness of the Mortgaged Property or any part thereof, shall not commit or permit any
waste of the Mortgaged Property or any part thereof, and shall not permit any unlawful use or
occupation of the Mortgaged Property or any part thereof.

     14. Mortgagors further covenant and agree with Mortgagee that neither Mortgagors nor any of
their agents, employees, independent contractors, invitees, licensees, successors, assignees,
tenants or subtenants will store, release or dispose of or permit the storage,

Page 9 of 16

 

 

release or disposal of any hazardous or toxic substances or hazardous waste on the Mortgaged
Property at any time from and after the effective date of this Mortgage (“Environmental Issues”).

     15. Mortgagors will protect, indemnify and save harmless Mortgagee from and against all
liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses
(including, without limitation, reasonable attorneys’ fees and expenses as may be limited by law or
judicial order or decision entered in any action brought to recover monies under this Section)
imposed upon, incurred by or asserted against Mortgagee by reason of (a) ownership of any interest
in the Mortgaged Property or any part thereof; (b) any accident, injury to or death of persons or
loss of or damage to property occurring on or about the Mortgaged Property or any part thereof or
the adjoining sidewalks, curbs, vaults and vault space, if any, streets or ways; (c) any use,
disuse or condition of the Mortgaged Property or any part thereof, or the adjoining sidewalks,
curbs, vaults and vault space, if any, streets or ways, including any Environmental Issues; (d) any
failure on the part of Mortgagors to perform or comply with any of the terms hereof; (e) any
necessity to defend any of the rights, title or interest conveyed by this Mortgage; or (f) the
performance of any labor or services or the furnishing of any materials or other property in
respect of the Mortgaged Property or any part thereof.

     16. In case of any damage to or destruction of any buildings, fixtures or personal property
included in the Mortgaged Property, or any part thereof, Mortgagors will promptly give written
notice thereof to Mortgagee generally describing the nature and extent of such damage or
destruction. Any insurance or other proceeds from any such damage or destruction shall be paid to
Mortgagee, unless Mortgagee otherwise consents in writing to Mortgagors’ use of such proceeds to
repair or replace the damaged or destroyed property, which consent will not be unreasonably
withheld.

     17. If title to or the temporary use of the Mortgaged Property, or any part thereof, shall be
taken under the exercise of the power of eminent domain by any governmental body or by any person,
firm or corporation acting under any governmental body or by any person, firm or corporation acting
under governmental authority, Mortgagors will promptly give written notice thereof to Mortgagee
describing the nature and extent of such taking. Any proceeds received from any award made in such
eminent domain proceedings shall be paid to Mortgagee.

     18. If Mortgagors shall fail to make any payment or perform any act required to be made or
performed hereunder or under the Agreement or the Note, Mortgagee, without notice or demand upon
Mortgagors and without waiving or releasing any obligation or default, may, but shall be under no
obligation to, make such payment or perform such act for the account and at the expense of
Mortgagors and may enter upon the Mortgaged Property or any part thereof for such purpose and take
all such action thereon as, in its sole opinion, may be necessary or appropriate therefor. All
payments so made by Mortgagee and all costs, fees and expenses incurred in connection therewith or
in connection with the performance by Mortgagee of any such act, together with interest thereon at
eight percent (8%) per annum shall, together with such interest, be additional indebtedness secured
by this Mortgage and shall be paid by Mortgagors to Mortgagee on demand. In any action brought to
collect such indebtedness, or to foreclose this Mortgage, Mortgagee shall be entitled to the
recovery of such expenses in such action except as limited by law or judicial order or decision
entered in such proceedings.

Page 10 of 16

 

 

     19. Any default by Mortgagors of any obligation hereunder, any Default under the Note, and any
Event of Default under the Agreement, the Security Agreement or the Assignment or any default of
any of the other Obligations shall be an “Event of Default” under this Mortgage.

     20. If an Event of Default shall have occurred and be continuing, Mortgagee, at any time, at
its election, may exercise any or all or any combination of the remedies conferred upon or reserved
to it under this Mortgage, the Agreement, the Note, the Security Agreement, the Assignment, or any
instrument collateral thereto, or now or hereafter existing at law, or in equity or by statute.
Without limitation, Mortgagee may (a) declare the entire unpaid principal balance of the Note and
all other indebtedness secured hereby immediately due and payable, without notice or demand, the
same being expressly waived by Mortgagors, subject to any cure periods provided for in the Note for
non-monetary defaults; (b) proceed at law or equity to collect all indebtedness secured by this
Mortgage due hereunder, whether at maturity or by acceleration; (c) foreclose the lien of this
Mortgage as against all or any part of the Mortgaged Property; and (d) exercise any rights, powers
and remedies it may have as a secured party under the Uniform Commercial Code, or other similar
laws in effect, including, without limitation, the option of proceeding as to both personal
property and fixtures in accordance with Mortgagee’s rights with respect to real property.

     21. Mortgagors do hereby waive to the full extent they may lawfully do so, the benefit of all
appraisement, valuation, stay and extension laws now or hereafter in force and all rights of
marshaling of assets in the event of any sale of the Mortgaged Property, any part thereof or any
interest therein and any court having jurisdiction to foreclose the lien thereof may sell the
Mortgaged Property in part or as an entirety.

     22. All amounts (including, without limitation, the proceeds of any sale of the Mortgaged
Property, any part thereof or any interest therein) received by Mortgagee hereunder shall be
applied to amounts due to it from Mortgagors hereunder and Hellman under the Note, the Agreement,
the Security Agreement, the Assignment, and the other Obligations, and shall be applied as follows:

     First: the payment of all costs incurred in the collection thereof (including, without
limitation, reasonable attorneys’ fees and expenses except as may have been limited by law or by
judicial order or decision entered in any action to foreclose this Mortgage);

     Second: the payment of indebtedness secured by this Mortgage owing to Mortgagee, other than
indebtedness with respect to the Note at the time outstanding; and

     Third: the payment to Mortgagee for the payment of all amounts payable under the Note in the
order provided for therein.

     23. Each right, power and remedy of Mortgagee, provided for in this Mortgage, in the
Agreement, the Note, the Security Agreement, the Assignment, or now or hereafter existing at law or
in equity or by statute or otherwise, shall be cumulative and concurrent and shall be in

Page 11 of 16

 

 

addition to every other right, power or remedy provided for in this Mortgage, in the Agreement, the
Note, the Security Agreement, the Assignment, or now or hereafter existing at law or in equity or
by statute or otherwise, and the exercise or beginning of the exercise or partial exercise by
Mortgagee of any one or more of such rights, powers or remedies shall not preclude the simultaneous
or later exercise by Mortgagee of any or all such other rights, powers or remedies.

     24. All rights, powers and remedies provided herein may be exercised only to the extent that
the exercise thereof does not violate any applicable law, and are intended to be limited to the
extent necessary so that they will not render this Mortgage invalid, unenforceable or not entitled
to be recorded, registered or filed under any applicable law.

     25. No failure by Mortgagee to insist upon the strict performance of any term hereof or to
exercise any right, power or remedy consequent upon an Event of Default, shall constitute a waiver
of any such term or of any such Event of Default. No waiver of any Event of Default shall affect or
alter this Mortgage, which shall continue in full force, and shall not effect a waiver with respect
to any subsequent such Event of Default or to any other then existing or subsequent breach.

     26. In case Mortgagee shall have proceeded to enforce any right, power or remedy under this
Mortgage by foreclosure, entry or otherwise, and such proceedings shall have been discontinued or
abandoned for any reason, or shall have been determined adversely to Mortgagee, then and in every
case Mortgagors and Mortgagee shall be restored to their former positions and rights hereunder, and
all rights, power and remedies of Mortgagee shall continue as if no such proceeding had been taken.

     27. Mortgagee shall have no liability for any loss, damage, injury, cost or expense resulting
from any act or omission to act by it or its representatives whether or not negligent, which was
taken or omitted pursuant to this Mortgage.

     28. Without notice to or consent of Mortgagors and without impairment of the lien and rights
created by this Mortgage, Mortgagee may accept from Mortgagors or from any other person or persons,
additional security for the indebtedness secured by this Mortgage. Neither the giving of this
Mortgage nor the acceptance of any such additional security shall prevent Mortgagee from resorting
first to such additional security or to the security created by this Mortgage, in either case
without affecting the lien hereof and the rights conferred hereunder.

     29. If all sums then due and payable under this Mortgage, the Note and the Agreement by
Mortgagors shall have been paid and Mortgagors shall have complied with all the terms, conditions
and requirements hereof and thereof, then this Mortgage shall be null and void and of no further
force and effect.

     Upon the written request and at the expense of Mortgagors, Mortgagee will execute and deliver
such proper instruments of release and discharge as may reasonably be requested to evidence such
defeasance, release and discharge.

Page 12 of 16

 

 

     30. Mortgagee and its representatives are hereby authorized to enter upon and inspect the
Mortgaged Property at reasonable times, and so long as Mortgagee does not unreasonably interfere
with Mortgagors’ use and enjoyment of the Mortgaged Property.

     31. Mortgagors shall, to the extent permitted by law, immediately upon demand pay or reimburse
Mortgagee for all reasonable attorneys’ fees, costs and expenses incurred by Mortgagee in any
proceedings involving the estate of a decedent, an insolvent or a debtor under federal bankruptcy
law, or in any action, proceeding or dispute of any kind in which Mortgagee is made a party, or
appears as an intervener or party plaintiff or defendant, affecting or relating to the Note, this
Mortgage or the Agreement, the Security Agreement, the Assignment, Mortgagors or any of the
Mortgaged Property, including, but not limited to, the foreclosure of this Mortgage, any
condemnation action involving the Mortgaged Property, or any action to protect the security hereof,
and any such amounts paid by Mortgagee shall, except as may be limited by law or judicial order or
decision entered in any action to foreclose this Mortgage, be added to the indebtedness secured
hereby and secured by the lien and security interest of this Mortgage and shall bear interest at
eight percent (8%) per annum.

     32. It being the desire and intention of the parties hereto that this Mortgage and the lien
created hereby do not merge in fee simple title to the Mortgaged Property, it is hereby understood
and agreed that should Mortgagee acquire any additional or other interests in or to the Mortgaged
Property or the ownership thereof, then, unless a contrary intent is manifested by Mortgagee as
evidence by an appropriate document duly recorded, this Mortgage and the lien hereof shall not
merge in the fee simple title, toward the end that this Mortgage may be foreclosed as if owned by a
stranger to the fee simple title.

     33. This Mortgage shall be deemed to be made under the laws of the state of Florida and for
all purposes shall be governed by and construed in accordance with the laws of Florida without
regard to conflict of laws principals and shall inure to the benefit of and be binding upon
Mortgagors and their respective estates, heirs, executors, administrators and personal
representatives, successors and assigns and Mortgagee and its successors and assigns. If any term
or provision of this Mortgage shall be held to be invalid, illegal or unenforceable, the validity
of the remaining provisions hereof shall in no way be affected thereby. The captions or headings
herein shall be solely for convenience of reference and in no way define, limit or describe the
scope or intent of any provisions or sections of this Mortgage. This Mortgage may be executed in
any number of counterparts, each of which shall be regarded as an original and all of which shall
constitute but one and the same instrument; it shall not be necessary in proving this Mortgage to
produce or account for more than one such counterpart.

     34. This Mortgage may not be effectively amended, changed, modified, altered or terminated
except as provided herein without the prior written consent of Mortgagors and Mortgagee.

     35. All sums payable by Mortgagors hereunder shall be paid without notice, demand,
counterclaims, setoff, deduction or defense, and without abatement, suspension, deferment,
diminution or reduction, and the obligations and liabilities of Mortgagors hereunder shall in no
way be released, discharged or otherwise affected (except as expressly provided

Page 13 of 16

 

 

herein) by reason of (a) any damage to or destruction of or any condemnation or similar taking of
the Mortgaged Property or any part thereof; (b) any restriction or prevention of or interference
with any use of the Mortgaged Property or any part thereof; (d) any bankruptcy, insolvency,
reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating
to Mortgagors or any action taken with respect to this Mortgage by any trustee or receiver of
Mortgagors, or by any court in such proceeding; (e) any claim which Mortgagors have or might have
against Mortgagee; (f) any default or failure on the part of Mortgagee to perform or comply with
any of the terms hereof or of any other agreements pertaining to the loan on the Mortgaged Property
with Mortgagors; or (g) any other occurrence whatsoever, whether similar or dissimilar to the
foregoing, whether or not Mortgagors shall have notice or knowledge of any of the foregoing.
Except as expressly provided herein, Mortgagors waive all rights now or hereafter conferred by
statute or otherwise to any abatement, suspension, deferment, diminution or reduction of any sum
secured hereby and payable by Mortgagors.

     36. All notices, certificates, requests or other communications hereunder shall be in writing
and shall be deemed to be sufficiently given when mailed by registered or certified mail, postage
prepaid, and addressed to the addresses set forth in the granting clause. Mortgagors and Mortgagee
may, by notice given hereunder, designate any further or different addresses to which subsequent
notices, certificates, requests or other communications shall be sent.

     37. In the event of litigation concerning this document or any related document(s), all costs,
charges and expenses, including reasonable attorneys’ fees, shall be awarded to the prevailing
party. As used herein and all related loan documents, attorneys’ fees shall include, but not be
limited to, fees incurred in all matters of collection and enforcement, construction and
interpretation, before, during or after trial, proceedings and appeals, as well as appearances
connected with bankruptcy proceedings.

     IN WITNESS WHEREOF, Mortgagors have executed this Mortgage as of the date written below.

Signed and Acknowledged in the Presence of:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	MORTGAGORS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	/s/ Wayne R. Hellman	 	 
	 	 	 	 	 	 	 
	 	 	 	 	WAYNE R. HELLMAN	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	/s/ Diane Hellman	 	 
	 	 	 	 	 	 	 
	 	 	 	 	DIANE HELLMAN	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Page 14 of 16

 

 

	 	 	 	 	 	 	 	 	 
	STATE OF OHIO

	 	 	)

)	 	 	SS:
	 	 
	COUNTY OF CUYAHOGA

	 	 	)	 	 	 	 	 

     The foregoing instrument was executed before me this 8th day of September, 2006, by Wayne R.
Hellman and Diane Hellman who are personally known to me and who did swear that the same was done
of their own free will.

	 	 	 	 	 
	 	 	 	 	 
	 

	 	Notary Public	 	 

Prepared by:

James S. Hogg, Esq.

Cowden Humphrey Nagorney & Lovett, Co. LPA

50 Public Square, Suite 1414

Cleveland, OH 44113

(216) 241-2880

Page 15 of 16

 

 

EXHIBIT A — MORTGAGED PROPERTY

REAL ESTATE MORTGAGE

WAYNE R. HELLMAN/ADVANCED LIGHTING TECHNOLOGIES, INC.

	 	 	 
	PROPERTY ADDRESS

	 	27261 Hidden River Court
	 

	 	Bonita Springs, Florida 34134-2638
	 
	 	 
	PARCEL NUMBER

	 	47-25-32-09-0000C-003
	 
	 	 
	SENIOR LENDER

	 	Colonial Bank, NA
	LEGAL DESCRIPTION

	 	LOT 3, BLOCK C, BONITA BAY UNIT 10, according to the
map or plat thereof, as recorded in Plat Book 45, Pages
44 through 51, inclusive, Public Records of Lee County,
Florida

Page 16 of 16

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