Document:

Exhibit
10.508

 

ASSIGNMENT,
ASSUMPTION, MODIFICATION AND 

RELEASE AGREEMENT

 

THIS ASSIGNMENT,
ASSUMPTION, MODIFICATION AND RELEASE AGREEMENT (hereinafter referred to as this
“Agreement”) is made as of the 7th day of December, 2004, by and between INLAND WESTERN CORAM PLAZA, L.L.C., a
Delaware limited liability company (hereinafter referred to as “Borrower”).  INLAND
WESTERN RETAIL REAL ESTATE TRUST, INC., a Maryland corporation
(hereinafter referred to as “Guarantor”), CORAM
PROPERTY DEVELOPMENT LLC, a Delaware limited liability company
(hereinafter referred to as “Original Borrower”), LOUIS L. CERUZZI, JR. and TERESE
CERUZZI, husband and wife (hereinafter collectively referred to as “Original
Guarantors”) and SKY BANK (hereinafter
referred to as “Lender”).

 

WITNESSETH:

 

WHEREAS, Original
Borrower executed and delivered to Lender: (i) that certain Building Loan
Promissory Note dated June 12, 2003 (hereinafter referred to as the “Building
Loan Note”) in the original principal amount of $10,551,190, (ii) that certain
Project Loan Promissory Note dated June 12, 2003 (hereinafter referred to
as the “Project Loan Note”) in the original principal amount of $761,773 and
(iii) that certain Amended and Restated Acquisition Loan Promissory Note dated June 12,
2003 (hereinafter referred to as the “Acquisition Loan Note”) in the original
principal amount of $9,447,037; and

 

WHEREAS, the Building
Loan Note, the Project Loan Note and the Acquisition Loan Note are sometimes
hereinafter collectively referred to as the “Note” and the loans evidenced by
the Note are hereinafter collectively referred to as the “Loan”; and

 

WHEREAS, the outstanding
principal amount of the Loan as of the date hereof is $20,760,000; and

 

WHEREAS, as security for
the Note, Original Borrower executed and delivered to Lender: (i) that certain
Building Loan Mortgage and Security Agreement dated as of June 12, 2003
(hereinafter referred to as the “Building Loan Mortgage”), recorded in the
Suffolk County Clerk Records Office in Liber M00020598, page 360, and
encumbering certain real property and the improvements thereon erected commonly
known as Coram Plaza, situate in the Hamlet of Coram, Town of Brookhaven,
Suffolk County, New York, all as more particularly described in the Building
Loan Mortgage (hereinafter referred to as the “Mortgaged Property”), (ii) that
certain Project Loan Mortgage and Security Agreement dated as of June 12,
2003 (hereinafter referred to as the “Project Loan Mortgage”), recorded in the
Suffolk County Clerk Records Office in Liber M00020598, page 361 and
encumbering the Mortgaged Property and (iii) that certain Amended, Restated and
Consolidated Acquisition Loan Mortgage and Security Agreement dated as of June 12,
2003 (hereinafter referred to as the “Acquisition Loan Mortgage”), recorded in
the Suffolk County Clerk Records Office in Liber M00020597, page 864 and
encumbering the Mortgaged Property; and

 

 

WHEREAS, the Building
Loan Mortgage, the Project Loan Mortgage and the Acquisition Loan Mortgage are
sometimes hereinafter collectively referred to as the “Mortgage”; and

 

WHEREAS, as additional
security for the Note,  Original Borrower
executed and delivered to Lender: (i) that certain Building Loan Assignment of
Rents, Leases and Lease Guaranty dated as of June 12, 2003 (hereinafter
referred to as the “Building Loan Assignment”), recorded in the Suffolk County
Clerk Records Office in Liber D         ,
page          and encumbering
the Mortgaged Property, (ii) that certain Project Loan Assignment of Rents,
Leases and Lease Guaranty dated as of June 12, 2003 (hereinafter referred
to as the “Project Loan Assignment”), recorded in the Suffolk County Clerk
Records Office in Liber D00012290, page 506 and encumbering the Mortgaged
Property, and (iii) that certain Acquisition Loan Assignment of Rents, Leases
and Lease Guaranty dated as of June 12, 2003 (hereinafter referred to as
the “Acquisition Loan Assignment”), recorded in the Suffolk County Clerk
Records Office in Liber D00012290, page 507 and encumbering the Mortgaged
Property; and

 

WHEREAS, the Building
Loan Assignment, the Project Loan Assignment and the Acquisition Loan
Assignment are sometimes hereinafter collectively referred to as the “Assignment”;
and

 

WHEREAS, the lien of the
Mortgage is further evidenced by UCC-1 Financing Statements from Original
Borrower to Lender (hereinafter collectively referred to as the “Financing
Statements”); and

 

WHEREAS, Lender and
Original Borrower entered into those three (3) certain Loan Agreements dated as
of June 12, 2003 and evidencing the Loan (sometimes hereinafter
collectively referred to as the “Loan Agreement”); and

 

WHEREAS, Original
Guarantors executed and delivered to Lender: (i) that certain Guaranty and
Suretyship Agreement dated as of June 12, 2003 (the “Payment Guaranty”)
and (ii) that certain Completion Guaranty dated as of June 12, 2003 (the “Completion
Guaranty”); and

 

WHEREAS, Original
Borrower and Original Guarantors executed and delivered to Lender that certain
Environmental Indemnity Agreement dated as of June 12, 2003 (hereinafter
referred to as the “Environmental Indemnity”); and

 

WHEREAS, the Mortgage,
the Assignment and the Financing Statements are hereinafter collectively
referred to as the “Loan Documents”; and

 

WHEREAS, Borrower desires
to amend and restate the Note and to substitute in lieu thereof: (i) that
certain Amended and Restated Building Loan Promissory Note of even date
herewith in the amount of $10,551,190 (hereinafter referred to as the “Restated
Building Loan Note”), (ii) that certain Amended and Restated Project Loan
Promissory Note of even date herewith in the amount of $761,773 (hereinafter
referred to as the “Restated Project Loan Note”) and (iii) that certain Amended
and Restated Acquisition Loan Promissory Note of even date

 

2

 

herewith in the amount of
$9,447,037 (hereinafter referred to as the “Restated Acquisition Loan Note”);
and

 

WHEREAS, the Restated
Building Loan Note, the Restated Project Loan Note and the Restated Acquisition
Loan Note are sometimes hereinafter collectively referred to as the “Restated
Note”); and

 

WHEREAS, Guarantor has
executed and delivered to Lender that certain Guaranty Agreement of even date
herewith (the “New Guaranty”) pursuant to which Guarantor guaranteed Borrower’s
payment of all amounts due and owing under the Restated Note and the Loan
Documents; and

 

WHEREAS, Original
Borrower desires to: (i) assign all of its rights, title and interest in and to
the Loan and all of its rights, liabilities, duties and obligations under the
Loan Documents and the Environmental Indemnity to Borrower and (ii) be released
from all such liabilities, duties and obligations; and

 

WHEREAS, Borrower desires
to assume all of Original Borrower’s liabilities, duties and obligations under
the Loan Documents and the Environmental Indemnity; and

 

WHEREAS, Guarantor
desires to assume all of Original Guarantors’ liabilities, duties and
obligations under the Environmental Indemnity; and

 

WHEREAS, Lender has: (i)
consented to Original Borrower’s assignment of the Loan and all of its rights,
liabilities, duties and obligations under the Loan Documents and the
Environmental Indemnity to Borrower, (ii) consented to Borrower’s assumption of
all of Original Borrower’s liabilities, duties and obligations under the Loan
Documents and the Environmental Indemnity, (iii) agreed to release Original
Borrower from such liabilities, duties and obligations, (iv) consented to
Guarantor’s assumption of Original Guarantors’ liabilities, duties and
obligations under the Environmental Indemnity and (v) agreed to release
Original Guarantors from all liabilities, duties and obligations under the
Environmental Indemnity, the Payment Guaranty and the Completion Guaranty.

 

NOW THEREFORE, for good
and valuable consideration, the receipt and legal sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound hereby,
agree as follows:

 

1.                                       Preambles.  The foregoing preambles are incorporated
herein by reference.

 

2.                                       Assignment. Original Borrower hereby assigns and
transfers to Borrower, from and after the date hereof, all of Original Borrower’s
rights, title and interest in and to the Loan and all of Original Borrower’s
rights, liabilities, duties and obligations under the Loan Documents and the
Environmental Indemnity, all as modified hereunder.  Original Guarantors hereby assign and transfer
to Guarantor, from and after the date hereof, all of Original Guarantors’
rights, liabilities, duties and obligations under the Environmental Indemnity.

 

3

 

3.                                       Assumption.  Borrower hereby: (i) accepts the assignment
from Original Borrower, (ii) assumes, from and after the date hereof, all of
Original Borrower’s liabilities, duties and obligations under the Loan
Documents and the Environmental Indemnity, all as modified hereunder, and (iii)
agrees to fully and faithfully perform, for the benefit of Lender and as of the
date hereof, all of the duties and obligations of Original Borrower under the
Loan Documents and the Environmental Indemnity, all as modified hereunder, to
the extent and degree as if Borrower had been the original mortgagor under the
Mortgage and the original assignor, debtor or other respective obligor under
the other Loan Documents and the Environmental Indemnity.  It is understood and agreed that Borrower is
not and shall not be responsible for liabilities, duties and obligations under
the Loan Documents and the Environmental Indemnity, which, pursuant to the
terms of the Loan Documents, were to be performed prior to the date hereof, or
which arise out of events which occurred prior to the date hereof.

 

Guarantor hereby: (i)
accepts the assignment from Original Guarantors, (ii) assumes, from and after
the date hereof, all of Original Guarantors’ liabilities, duties and
obligations under the Environmental Indemnity and (iii) agrees to fully and
faithfully perform, for the benefit of Lender and as of the date hereof, all of
the liabilities, duties and obligations of Original Guarantors under the
Environmental Indemnity, to the extent and degree as if Guarantor had been the
original indemnitor under the Environmental Indemnity.  It is understood and agreed that Guarantor is
not and shall not be responsible for liabilities, duties and obligations under
the Environmental Indemnity, which, pursuant to the terms thereof, were to be
performed prior to the date hereof, or which arise out of events which occurred
prior to the date hereof.

 

4.                                       Release.  Lender hereby fully and forever releases
Original Borrower, as of the date hereof, from all of Original Borrower’s
liabilities, duties and obligations under the Loan Documents and the
Environmental Indemnity, which pursuant to the terms of the Loan Documents and
the Environmental Indemnity are to be performed on or after the date hereof, or
which arise out of events which occur on or after the date hereof.  It is understood and agreed that Original
Borrower is not and shall not be released from liabilities, duties and
obligations under Paragraph 5 of the Mortgage and under the Environmental
Indemnity which, pursuant to the terms of the Loan Documents and the
Environmental Indemnity, survive repayment of the Loan, assumption of the Loan
or transfer of the Mortgaged Property.

 

Lender hereby fully and
forever releases Original Guarantors, as of the date hereof, from all of
Original Guarantors’ liabilities, duties and obligations under the
Environmental Indemnity which, pursuant to the terms thereof, are to be
performed on or after the date hereof, or which arise out of events which occur
on or after the date hereof.  It is
understood and agreed that Original Guarantors are not and shall not be
released from liabilities, duties and obligations under the Environmental
Indemnity which, pursuant to the terms thereof, survive repayment of the Loan,
assumption of the Loan or transfer of the Mortgaged Property.

 

4

 

5.                                       Termination
of Loan Agreement.  Lender and
Original Borrower hereby agree that the Loan Agreement and all of the parties’
respective rights, duties, liabilities and obligations thereunder are hereby
terminated and shall be null and void and of no further force and effect.

 

6.                                       Termination
of Payment Guaranty and Completion Guaranty.  Lender and Original Guarantors hereby agree
that the Payment Guaranty and the Completion Guaranty and all of the parties’
respective rights, duties, liabilities and obligations thereunder are hereby
terminated and shall be null and void and of no further force and effect.

 

7.                                       Modification
of Loan Documents.

 

A.                                   References
to Note.  The Building Loan Mortgage
and the Building Loan Assignment are hereby modified and amended so that all
references therein to the term “Note” shall mean the Restated Building Loan
Note instead of the Building Loan Note.  The
Project Loan Mortgage and the Project Loan Assignment are hereby modified and
amended so that all references therein to the term “Note” shall mean the
Restated Project Loan Note instead of the Project Loan Note.  The Acquisition Loan Mortgage and the Acquisition
Loan Assignment are hereby modified and amended so that all references therein
to the term “Note” shall mean the Restated Acquisition Loan Note instead of the
Acquisition Loan Note.  In addition, the
Mortgage is hereby further amended so that all references therein to the term “Other
Facility Notes” shall mean the respective Restated Notes.  The Environmental Indemnity is hereby modified
and amended so that all references therein to the term “Note” shall mean the
Restated Note instead of the Note.

 

B.                                     References
to Borrower.  The Mortgage, the
Assignment and the Environmental Indemnity are hereby modified and amended so
that all respective references therein to the terms Borrower, Mortgagor,
Assignor and any other respective term for the obligor thereunder shall mean
Borrower, as defined in this Agreement.

 

C.                                     References
to Loan Documents.  The Mortgage, the
Assignment and the Environmental Indemnity are hereby modified and amended so that
all references therein to those Loan Documents shall mean those documents as modified
by this Agreement.

 

D.                                    Borrower’s
Address.  The Loan Documents are
hereby modified and amended by deleting all references therein to Original
Borrower’s address and substituting the following address for Borrower in lieu
thereof:

 

2901 Butterfield Road

Oak Brook, Illinois 60523

Attention:  Steven Grimes,

Principal Financial
Officer

 

E.                                      References
to Loan Agreement.  The Mortgage and
the Assignment are hereby modified and amended by deleting all references
therein to the Loan Agreement.

 

5

 

8.                                       Full
Force and Effect.  The Mortgage, the
Assignment and the Environmental Indemnity, as specifically assigned, assumed
and modified hereby, shall remain otherwise unaffected and in full force and effect
and, except as specifically set forth herein, this Agreement shall not limit,
waive or modify any of Lender’s rights or Borrower’s liabilities, duties and
obligations thereunder.

 

9.                                       Declaration
of No Set-Offs.  As of the date
hereof, Original Borrower and Borrower hereby certify that there are no
set-offs, claims or defenses of any kind or nature, which they have or may have
against Lender that would reduce any of Borrower’s liabilities, duties and
obligations under the Loan Documents.

 

10.                                 Borrower’s
Affirmation and Certification.  Borrower hereby affirms each and every one of
Borrower’s liabilities, obligations and duties under the Loan Documents, all as
assigned, assumed and modified hereby, and hereby agrees, acknowledges and
certifies to Lender: (i) that Borrower is authorized and empowered to execute,
acknowledge and deliver this Agreement; (ii) that this Agreement, the Restated
Note and all of the Loan Documents constitute the valid and binding obligations
of Borrower, legally enforceable in accordance with their respective terms;
(iii) that all of the representations and warranties set forth in the Loan
Documents are hereby adopted by Borrower as its own (except for representations
and warranties relating solely to Original Borrower), are and shall be the
representations and warranties of Borrower to the extent and degree as if
Borrower had been the original maker of such representations and warranties,
and are true and correct in all material respects on and as of the date hereof;
and (iv) that the execution and delivery of this Agreement by Borrower will
not, to the best of Borrower’s knowledge, information and belief, result in a
conflict or be in conflict with, or constitute a default under any instrument,
document, decree, order, statute, rule or governmental regulation applicable to
Borrower.

 

11.                                 Guarantor’s
Affirmation and Certification. 
Guarantor hereby affirms each and every one of Guarantor’s liabilities,
obligations and duties under the Environmental Indemnity, all as assigned,
assumed and modified hereby, and hereby agrees, acknowledges and certifies to
Lender: (i) that Guarantor is authorized and empowered to executed, acknowledge
and deliver the New Guaranty and this Agreement, (ii) that, the New Guaranty,
this Agreement and the Environmental Indemnity constitute the valid and binding
obligations of Guarantor, legally enforceable in accordance with their
respective terms and (iii) that the execution and delivery of this Agreement by
Guarantor will not, to the best of Guarantor’s knowledge, information and
belief, result in a conflict or be in conflict with, or constitute a default
under any instrument, document, decree, order, statute, rule or governmental
regulation applicable to Guarantor.

 

12.                                 Fees
and Charges.  Borrower shall pay or
cause to be paid to Lender, contemporaneously with the execution hereof, such
fees and charges as may be required in connection with the transaction
evidenced hereby, including without limitation: (i) an assumption fee in the
amount of $12,500, (ii) any fees or premiums due in connection with the
issuance of a substitute title policy in form and substance satisfactory to
Lender and insuring the lien of the Mortgage, (iii) attorneys’ fees for Lender’s
counsel, and (iv) recording and notary fees.

 

6

 

13.                                 Successors
and Assigns.  This Agreement and the
terms and conditions hereof, shall be binding upon and shall inure to the
benefit of the parties hereto and their respective heirs, personal
representatives, successors and assigns.

 

14.                                 Lien
Priority.  Nothing in this Agreement
shall alter the lien priority created by the Mortgage.

 

15.                                 Applicable
Law.  This Agreement (i) is and shall
be deemed made under, governed by and construed and enforced in accordance with
the internal law of the Commonwealth of Pennsylvania, except to the extent that
the procedural laws of the State of New York shall apply to any action
commenced by Lender in pursuit of its remedies hereunder or otherwise, (ii) is
and shall be enforceable only in the State Courts of said Commonwealth with an
action commenced in the Court of Common Pleas of Allegheny County, and/or in
the Federal Courts of said Commonwealth with an action commenced in the United
States District Court for the Western District of Pennsylvania, except to the
extent that any action commenced by Lender in pursuit of its remedies hereunder
or otherwise shall be enforceable in the State Courts and/or Federal Courts of
the State of New York.

 

16.                                 Modifications.  This Agreement may not be changed, modified
or amended, in whole or in part, except in writing, signed by all parties.

 

17.                                 Captions.  The captions preceding the text of the
paragraphs of this Agreement are inserted only for convenience of reference and
shall not constitute a part of this Agreement, nor shall they in any way affect
its meaning, construction or effect.

 

18.                                 Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.

 

19.                                 Note
to Recorder.  The Suffolk County
Clerk is hereby requested and directed to note the recording of this Agreement
in the margins of the Mortgages and the Assignments described in the recitals
of this Agreement.

 

[SIGNATURES
SET FORTH ON THE FOLLOWING PAGE]

 

7

 

IN WITNESS WHEREOF, this
Agreement has been duly signed and delivered by the undersigned as of the day
and year first above written.

 

	
   

  	
   

  	
  LENDER:

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  SKY BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
  By:

  	
   /s/ John D. Fetsko

  
	
   

  	
   

  	
   

  	
  John D. Fetsko, Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BORROWER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INLAND WESTERN CORAM
  PLAZA, L.L.C.,

  a Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  By: 

  	
  INLAND WESTERN RETAIL
  REAL

  ESTATE TRUST, INC., a Maryland

  corporation and its sole member

  
	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
  By:

  	
  /s/
  Valerie Medina

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Valerie
  Medina

  
	
   

  	
   

  	
   

  	
  Title:

  	
    Asst.
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GUARANTOR:

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  INLAND WESTERN RETAIL
  REAL ESTATE

  TRUST, INC., a Maryland corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
  By:

  	
  /s/
  Valerie Medina

  
	
   

  	
   

  	
  Name:

  	
  Valerie
  Medina

  
	
   

  	
   

  	
  Title:

  	
    Asst.
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ORIGINAL
  BORROWER:

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  CORAM PROPERTY
  DEVELOPMENT LLC,

  a Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
  By:

  	
  /s/  Louis L. Ceruzzi, Jr.

  
	
   

  	
   

  	
   

  	
  Louis L. Ceruzzi, Jr.,
  President

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  ORIGINAL
  GUARANTORS:

  
	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
  /s/  Louis L. Ceruzzi, Jr.

  
	
   

  	
   

  	
  Louis L. Ceruzzi, Jr.

  
	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
  /s/ Terese Ceruzzi

  
	
   

  	
   

  	
  Terese Ceruzzi

  
										

 

8

 

	
  STATE OF ILLINOIS

  	
  )

  
	
   

  	
  )   SS:

  
	
  COUNTY OF DUPAGE

  	
  )

  

 

On this 21st day
of December, A.D., 2004, before me, a Notary Public in and for said State, the
undersigned officer, personally appeared Valerie Medina, the Asst. Secretary of
INLAND WESTERN RETAIL REAL ESTATE TRUST,
INC., a Maryland corporation and the sole member of INLAND WESTERN CORAM PLAZA, L.L.C., a Delaware limited liability company, known to me,
or proved to me on the basis of satisfactory evidence, to be the person whose
name is subscribed to the within instrument and acknowledged that he as such
officer, being authorized to do so, executed the foregoing instrument as the
Asst. Secretary of INLAND WESTERN RETAIL REAL
ESTATE TRUST, INC., in its capacity as the sole member of INLAND WESTERN CORAM PLAZA, L.L.C., for the purposes therein
contained, and that by his signature on the instrument, INLAND
WESTERN CORAM PLAZA, L.L.C. executed the instrument.

 

IN WITNESS WHEREOF, I
hereunto set my hand and official seal.

 

 

	
   

  	
  /s/ Elizabeth Ann
  Irving

  
	
   

  	
   

  	
  Notary Public

  

 

	
  MY COMMISSION EXPIRES:

  	
  OFFICIAL SEAL

  ELIZABETH ANN IRVING

  NOTARY PUBLIC, STATE OF ILLINOIS

  MY COMMISSION EXPIRES 11-14-2008

  	
   

  

 

 

	
  STATE OF ILLINOIS

  	
  )

  
	
   

  	
  )   SS:

  
	
  COUNTY OF DUPAGE

  	
  )

  

 

On this 21st
day of December, A.D., 2004, before me, a Notary Public in and for said State,
the undersigned officer, personally appeared Valerie Medina, the Asst.
Secretary of INLAND WESTERN RETAIL REAL
ESTATE TRUST, INC., a Maryland corporation, personally known to me,
or proved to me on the basis of satisfactory evidence, to be the person whose
name is subscribed to the within instrument and acknowledged that he as such
officer, being authorized to do so, executed the foregoing instrument as the
Asst. Secretary of INLAND WESTERN RETAIL REAL
ESTATE TRUST, INC., for the purposes therein contained, and that by his
signature on the instrument, INLAND WESTERN
RETAIL REAL ESTATE TRUST, INC. executed
the instrument.

 

IN WITNESS WHEREOF, I
hereunto set my hand and official seal.

 

 

	
   

  	
  /s/ Elizabeth Ann
  Irving

  
	
   

  	
   

  	
  Notary Public

  

 

	
  MY COMMISSION EXPIRES:

  	
  OFFICIAL SEAL

  ELIZABETH ANN IRVING

  NOTARY PUBLIC, STATE OF ILLINOIS

  MY COMMISSION EXPIRES 11-14-2008

  	
   

  

 

 

	
  STATE OF CONNECTICUT

  	
  )

  
	
   

  	
  )   SS:

  
	
  COUNTY OF FAIRFIELD

  	
  )

  

 

On this 23 day of
December, A.D., 2004, before me, a Notary Public in and for said State, the
undersigned officer, personally appeared LOUIS  L. CERUZZI, JR., the President of CORAM  PROPERTY DEVELOPMENT
LLC, a Delaware limited liability company, personally known to me,
or proved to me on the basis of satisfactory evidence, to be the person whose
name is subscribed to the within instrument and acknowledged that he as such officer, being authorized to do so,
executed the foregoing instrument as the President of CORAM PROPERTY DEVELOPMENT LLC, for the
purposes therein contained, and that by his signature on the instrument, CORAM PROPERTY DEVELOPMENT LLC executed the
instrument.

 

IN WITNESS WHEREOF, I
hereunto set my hand and official seal.

 

 

	
   

  	
  /s/ Melany Rizzo

  
	
   

  	
   

  	
  Notary Public

  

 

	
  MY COMMISSION EXPIRES:

  	
  MELANY RIZZO

  NOTARY PUBLIC

  MY COMMISSION EXPIRES APR. 30, 2005

  	
   

  

 

 

	
  COMMONWEALTH OF
  PENNSYLVANIA

  	
  )

  
	
   

  	
  )   SS:

  
	
  COUNTY OF ALLEGHENY

  	
  )

  

 

On this 22nd
day of December, A.D., 2004, before me, a Notary Public in and for said State,
the undersigned officer, personally appeared JOHN
D. FETSKO, a Senior Vice President of SKY BANK, personally known to me or proved to me on the basis
of satisfactory evidence to be the person whose name is subscribed to the
within instrument and acknowledged that he executed the same as a Senior Vice
President of SKY BANK for the
purposes therein contained, and that by his signature on the instrument,  SKY BANK executed
the instrument.

 

IN WITNESS WHEREOF, I
hereunto set my hand and official seal.

 

 

	
   

  	
  /s/ Paul R. Ketter, Jr.

  	
   

  
	
   

  	
   

  	
  Notary Public

  
				

 

	
  MY COMMISSION EXPIRES:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Notarial Seal

  Paul R. Ketter, Jr., Notary Public

  City of Pittsburgh, Allegheny County 

  My Commission Expires Aug. 10, 2008

  Member, Pennsylvania Association Of Notaries

  	
   

  

 

 

	
  STATE OF CONNECTICUT

  	
  )

  
	
   

  	
  )   SS:

  
	
  COUNTY OF FAIRFIELD

  	
  )

  

 

On this 23 day of
December, A.D., 2004, before me, a Notary Public in and for said State, the
undersigned officer, personally appeared LOUIS
L. CERUZZI, JR., personally known to
me or proved to me on the basis of satisfactory evidence to be the person whose
name is subscribed to the within instrument and acknowledged that he executed
the same for the purposes herein contained.

 

IN WITNESS WHEREOF, I
have hereunto set my hand and official seal.

 

 

	
   

  	
  /s/ Melany Rizzo

  	
   

  
	
   

  	
   

  	
  Notary Public

  
				

 

	
  MY COMMISSION EXPIRES:

  	
  

  

  MELANY RIZZO

  NOTARY PUBLIC

  MY COMMISSION EXPIRES APR. 30, 2005

  	
   

  

 

 

 

	
  STATE OF CONNECTICUT

  	
  )

  
	
   

  	
  )   SS:

  
	
  COUNTY OF FAIRFIELD

  	
  )

  

 

On this 23rd
day of December, A.D., 2004, before me, a Notary Public in and for said State,
the undersigned officer, personally appeared TERESE
CERUZZI, personally known to me or
proved to me on the basis of satisfactory evidence to be the person whose name is
subscribed to the within instrument and acknowledged that she executed the same
for the purposes herein contained.

 

IN WITNESS WHEREOF, I
have hereunto set my hand and official seal.

 

 

	
   

  	
  /s/ Melany Rizzo

  	
   

  
	
   

  	
   

  	
  Notary Public

  
				

 

	
  MY COMMISSION EXPIRES:

  	
  

  

  MELANY RIZZO

  NOTARY PUBLIC

  MY COMMISSION EXPIRES APR. 30, 2005Exhibit
10.509

 

INTERIM
SECURED PROMISSORY NOTE

LOAN NO. 754183

 

	
  $48,427.76

  	
   

  	
  January 26,
  2005

  

 

1.                                       FOR
VALUE RECEIVED, INLAND WESTERN CORAM PLAZA, L.L.C., a Delaware limited
liability company, as “Borrower” (“Borrower” to be construed as “Borrowers”
if the context so requires), hereby promises to pay to the order of PRINCIPAL
LIFE INSURANCE COMPANY, an Iowa corporation (as “Lender”), having a
principal place of business and post office address at c/o Principal Real
Estate Investors, LLC, 801 Grand Avenue, Des Moines, Iowa 50392-1450, or at
such other place as Lender may designate, the principal sum of Forty Eight
Thousand Four Hundred Twenty Seven and 76/100 Dollars ($48,427.76) (the “Loan
Amount”) or so much thereof as shall from time to time have been advanced,
together with interest on the unpaid balance of said sum from the Closing Date,
at the rate set forth in the Consolidated Note (hereinafter defined).

 

Reference is made
to that certain Consolidated, Amended and Restated Secured Promissory Note (the
“Consolidated Note”) of even date herewith in the principal amount of
$20,755,300.00 executed by Borrower and payable to the order to Lender.  Capitalized terms not otherwise defined herein
shall have the same meaning as set forth in the Consolidated Note.  This Note is one of the Existing Notes as
defined in the Consolidated Note.  The
Loan Amount shall bear interest prior to the Maturity Date at the rate or rates
and shall be payable as set forth in the Consolidated Note.  This Note is secured by, inter alia, the Amended, Restated and
Consolidated Mortgage and Security Agreement of even date herewith executed by
Borrower in favor of Lender and to be recorded in the County Clerk’s Office of
Suffolk County, New York.

 

2.                                       No
privilege is reserved by Borrower to prepay any principal of this Note prior to
the Maturity Date, except in strict accordance with the provisions of the Loan
Agreement.

 

3.                                       Borrower
agrees that if Lender accelerates the whole or any part of the principal sum
evidenced hereby, after the occurrence of an Event of Default or applies any
proceeds pursuant to the provisions of the Loan Documents, Borrower waives any
right to prepay said principal sum in whole or in part without premium and
agrees to pay, as yield maintenance protection and not as a penalty, the Make
Whole Premium.

 

Notwithstanding the
above, in the event any proceeds from a casualty or Taking of the Premises are
applied to reduce the principal balance hereof, such reduction shall be made
without a Make Whole Premium, provided no Event of Default then exists under
the Loan Documents.

 

4.                                       If
any payment of principal, interest, Make Whole Premium, or other Indebtedness
is not made when due, damages will be incurred by Lender, including additional
expense in handling overdue payments, the amount of which is difficult and
impractical to ascertain.  Borrower
therefor agrees to pay, upon demand, the sum of four cents ($.04) for each one
dollar ($1.00) of

 

1

 

each said payment which
becomes overdue (“Late Charge”) as a reasonable estimate of the amount
of said damages, subject, however, to the limitations contained in paragraph 6
hereof.

 

Notwithstanding anything
hereinabove to the contrary, the Late Charge assessed on any amount due on the
Maturity Date but not then paid, whether or not by acceleration, shall not be
four cents for each one dollar as described above, but shall instead be a sum
equal to the interest which would have accrued on the principal balance then
outstanding from the date the payment is made to the end of the month in which
the Maturity Date occurs.  Such Late
Charge shall be in addition to interest otherwise accruing under this Note.

 

5.                                       If
any Event of Default has occurred and is continuing under the Loan Documents,
the entire principal balance of the Loan, interest then accrued, and Make Whole
Premium, and all other Indebtedness whether or not otherwise then due, shall at
the option of Lender, become immediately due and payable without demand or
notice, and whether or not Lender has exercised said option, interest shall
accrue on the entire principal balance, interest then accrued, Make Whole
Premium and any other Indebtedness then due, at a rate equal to the Default
Rate until fully paid

 

6.                                       Notwithstanding
anything herein or in any of the other Loan Documents to the contrary, no
provision contained herein or therein which purports to obligate Borrower to
pay any amount of interest or any fees, costs or expenses which are in excess
of the maximum permitted by applicable law, shall be effective to the extent it
calls for the payment of any interest or other amount in excess of such
maximum.  All agreements between Borrower
and Lender, whether now existing or hereafter arising and whether written or
oral, are hereby limited so that in no contingency, whether by reason of demand
for payment or acceleration of the maturity hereof or otherwise, shall the
interest contracted for, charged or received by Lender exceed the maximum
amount permissible under applicable law.  If, from any circumstance whatsoever, interest
would otherwise be payable to Lender in excess of the maximum lawful amount,
the interest payable to Lender shall be reduced to the maximum amount permitted
under applicable law; and if from any circumstance Lender shall ever receive
anything of value deemed interest by applicable law in excess of the maximum
lawful amount, an amount equal to any excessive interest shall, at the option
of Lender, be refunded to Borrower or be applied to the reduction of the
principal hereof, without a Make Whole Premium and not to the payment of
interest or, if such excessive interest exceeds the unpaid balance of principal
hereof such excess shall be refunded to Borrower.  This paragraph shall control all agreements
between Borrower and Lender.

 

7.                                       Borrower
and any endorsers or guarantors waive presentment, protest and demand, notice
of protest, demand and dishonor and nonpayment, and agree the Maturity Date of
this Note or any installment may be extended without affecting any liability hereunder,
and further promise to pay all reasonable costs and expenses, including but not
limited to, reasonable attorney’s fees incurred by Lender in connection with
any default or in any proceeding to interpret and/or enforce any provision of
the Loan Documents.  No release of
Borrower from liability hereunder shall release any other maker, endorser or
guarantor hereof.

 

8.                                       This
Note is secured by the Loan Documents creating among other things legal and
valid encumbrances on and an assignment of all of Borrower’s interest in any
Leases of the Premises

 

2

 

located in the county of
Suffolk, state of New York.  Capitalized
terms used herein and not otherwise defined shall have those meanings given to
them in the Loan Documents.  In no event
shall such documents be construed inconsistently with the terms of this Note,
and in the event of any discrepancy between any such documents and this Note,
the terms hereof shall govern.  The
proceeds of this Note are to be used for business, commercial, investment or
other similar purposes, and no portion thereof will be used for any personal,
family or household use.  This Note shall
be governed by and construed in accordance with the laws of the State where the
Premises is located, without regard to its conflict of law principles.

 

9.                                       Notwithstanding
any provision to the contrary in this Note or the Loan Documents and except as
otherwise provided for below, the liability of Borrower under the Loan
Documents shall be limited to the interest of Borrower in the Premises and the
Rents.  In the event of foreclosure of
the liens evidenced by the Loan Documents, no judgment for any deficiency upon
the Indebtedness evidenced by the Loan Documents shall be sought or obtained by
Lender against Borrower.  Nothing herein
shall in any manner limit or impair (i) the lien or enforcement of the Loan
Documents pursuant to the terms thereof or (ii) the obligations of any
indemnitor or guarantor, if any.

 

Notwithstanding any
provision hereinabove to the contrary, Borrower shall be personally liable to
Lender for:

 

(a)                                  any
loss or damage to Lender arising from (i) the sale or forfeiture of the
Premises resulting from Borrower’s failure to pay any of the taxes, assessments
or charges specified in the Loan Documents or (ii) Borrower’s failure to insure
the Premises in compliance with the provisions of the Loan Documents;

 

(b)                                 any
event or circumstance for which Borrower indemnifies Lender under the
Environmental Indemnity;

 

(c)                                  nonpayment
of taxes, assessments, insurance premiums and utilities for the Premises and
any penalty or late charge associated with nonpayment thereof;

 

(d)                                 material
failure to manage, operate, and maintain the Premises in a commercially
reasonable manner for similar property types in the surrounding geographic
area;

 

(e)                                  any
sums expended by Lender in fulfilling the obligations of Borrower as lessor
under any Lease of the Premises prior to a sale of the Premises pursuant to
foreclosure or power of sale, a bona fide sale (permitted by the terms of
paragraph 2(f) of the Mortgage (it being agreed that “Mortgage” as used herein
shall be construed to mean “mortgage” or “deed of trust” or “trust deed” as the
context so requires) or consented to in writing by Lender) to an unrelated third
party or upon conveyance to Lender of the Premises by a deed acceptable to
Lender in form and content (each of which shall be referred to as a “Sale” for
purposes of this paragraph) or expended by Lender after a Sale of the Premises
for obligations of Borrower which arose prior to a Sale of the Premises;

 

3

 

Borrower’s personal
liability for items specified in (c), (d) and (e) above shall be limited to the
amount of rents, issues, proceeds and profits from the Premises (“Rents and
Profits”) received by Borrower for the twelve (12) months preceding an Event of
Default and thereafter; but less any such Rents and Profits applied to (A)
payment of principal, interest and other charges when due under the Loan Documents,
or (B) payment of expenses for the operation, maintenance, taxes, assessments,
utility charges and insurance of the Premises including sufficient reserves for
the same or replacements or renewals thereof (“Operation Expense(s)”) provided
that (x) Borrower has furnished Lender with evidence reasonably satisfactory to
Lender of the Operation Expenses and payment thereof, and (y) any payments to
parties related to Borrower shall be considered an Operation Expense only to
the extent that the amount expended for the Operation Expense does not exceed
the then current market rate for such Operation Expense.

 

(f)                                    any
rents or other income regardless of type or source of payment or other
considerations in lieu thereof (including, but not limited to, common area
maintenance charges, lease termination payments, refunds of any type,
prepayment of rents, settlements of litigation, or settlements of past due
rents) from the Premises which Borrower has received or will receive after an
Event of Default under the Loan Documents which are not applied to (A) payment
of principal, interest and other charges when due under the Loan Documents or
(B) payment of Operation Expenses provided that (x) Borrower has furnished
Lender with evidence reasonably satisfactory to Lender of the Operation
Expenses and payment thereof, and (y) any payments to parties related to
Borrower shall be considered an Operation Expense only to the extent that the
amount expended for the Operation Expense does not exceed the then current
market rate for such Operation Expense;

 

(g)                                 any
security deposits of tenants not otherwise applied in accordance with the terms
of the Lease(s), together with any interest on such security deposits required
by law or the leases, not turned over to Lender upon conveyance of the Premises
to Lender pursuant to foreclosure or power of sale or by a deed acceptable to
Lender in form and content;

 

(h)                                 misapplication
or misappropriation of tax reserve accounts, tenant improvement reserve
accounts, security deposits, prepaid rents or other similar sums paid to or
held by Borrower or any other entity or person in connection with the operation
of the Premises;

 

(i)                                     any
insurance or condemnation proceeds or other similar funds or payments applied
by Borrower in a manner other than as expressly provided in the Loan Documents;

 

(j)                                     any
loss or damage to Lender arising from any fraud or willful misrepresentation by
or on behalf of Borrower, Interest Owner or any guarantor regarding the
Premises, the making or delivery of any of the Loan Documents or in any
materials or

 

4

 

information provided by
or on behalf of Borrower, Interest Owner or guarantor, if any, in connection
with the Loan; and

 

(k)                                  any
loss or damage to Lender arising from the existence of the sanitary sewer lines
or any easement relating thereto (either actual or implied) located under the
building constructed on the Land.

 

Notwithstanding anything
contained in paragraphs 9(a)(i) and 9(c) hereinabove as it relates solely to taxes,
assessments and insurance premiums, to the extent Lender is impounding for
taxes, assessments and insurance premiums in accordance with the Loan Documents
and Borrower has fully complied with all terms and conditions of the Loan
Documents relating to impounding for the same, then Borrower shall not be
personally liable for Lender’ s failure to apply any of said impound amounts
held by Lender in accordance with the Loan Documents.

 

Notwithstanding anything
to the contrary in the Loan Documents, the limitation on liability contained in
the first paragraph of this paragraph 9 SHALL BECOME NULL AND VOID and shall be
of no further force and effect in the event of any breach or violation of
paragraph 2(f) (due on sale or encumbrance) of the Mortgage, other than (i) the
filing of a nonmaterial mechanic’s lien affecting the Premises or a mechanic’s
lien affecting the Premises for which Borrower has complied with the provisions
of paragraph l(e) of the Mortgage, or (ii) the granting of any utility or other
nonmaterial easement or servitude burdening the Premises, or (iii) any transfer
or encumbrance of a nonmaterial economic interest in the Premises not otherwise
set forth in (i) or (ii).

 

10.                                 If
more than one, all obligations and agreements of Borrower are joint and
several.

 

11.                                 This
Note may not be changed or terminated orally, but only by an agreement in
writing and signed by the party against whom enforcement of any waiver, change,
modification or discharge is sought.  All
of the rights, privileges and obligations hereunder shall inure to the benefit
of the heirs, successors and assigns of Lender and shall bind the heirs and
permitted successors and assigns of Borrower.

 

12.                                 If
any provision of this Note shall, for any reason, be held to be invalid or
unenforceable, such invalidity or unenforceability shall not affect any other
provision hereof, but this Note shall be construed as if such invalid or
unenforceable provision had never been contained herein.

 

13.                                 This
Note may be executed in counterparts, each of which shall be deemed an
original; and such counterparts when taken together shall constitute but one
agreement.

 

14.                               AFTER
CONSULTING WITH COUNSEL AND CAREFUL CONSIDERATION, BORROWER AND LENDER (BY ITS
ACCEPTANCE HEREOF) KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE THE RIGHT
EITHER OF THEM MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION
ARISING OUT OF THIS NOTE OR ANY OTHER INSTRUMENT OR AGREEMENT BY WHICH THIS

 

5

 

NOTE IS,
OR MAY HEREAFTER BE, SECURED, OR OUT OF ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (ORAL OR WRITTEN), OR ACTIONS OF BORROWER OR LENDER. THIS
WAIVER IS A MATERIAL INDUCEMENT TO THE LENDER’S ACCEPTANCE OF THIS NOTE.

 

15.                                 Borrower
consents to the personal jurisdiction over Borrower by any federal or state
court situated in the State of New York and consents to the laying of venue in
any jurisdiction over Borrower by any federal or state court situated in the
State of New York.  Borrower irrevocably
appoints Gail Gress, having an address c/o Inland Mortgage Corporation, 2901
Butterfield Road, Oak Brook Illinois 60523, as Borrower’s agent for receipt of
service of process on Borrower’s behalf in connection with any suit, writ,
attachment, execution or discovery of supplementary proceedings in connection
with the enforcement of this Note (collectively, an “Action”).  Service in any Action and any notice of sale
or other notices required under Article 14 of the New York Real Property
Actions and Proceedings Law shall be effected by any means permitted by the
court in which any Action is filed, with a copy sent by certified mail, return
receipt requested, to Borrower at its address as hereinbefore stated or at such
other address as shall be designated from time to time by Borrower.  Borrower or its agent for receipt of process
may designate a change of address or may substitute another agent for the
service of process who shall be acceptable to Lender in its sole but reasonably
discretion, by written notice to Lender by certified mail, return receipt
requested, at least ten (10) days before such change of address is to become
effective.  In the event of any
inconsistencies between the terms and conditions of the foregoing paragraphs
and this paragraph, the terms of this paragraph shall control and be binding.

 

 

REMAINDER OF PAGE
INTENTIONALLY BLANK

 

(Signatures on
next page)

 

6

 

IN WITNESS WHEREOF,
Borrower has caused this Note to be duly executed and delivered as of the date
first set forth above.

 

 

	
   

  	
  INLAND WESTERN CORAM
  PLAZA, L.L.C., a

  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  INLAND WESTERN RETAIL REAL

  ESTATE TRUST, INC., a Maryland

  corporation, Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Valerie Medina

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Valerie
  Medina

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Asst.
  Secretary

  	
   

  
							

 

7

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