Document:

Exhibit 10.88

 

DEMAND PROMISSORY NOTE

 

	
  $2,000,000.00

  	
  May 20, 2003

  

 

FOR VALUE RECEIVED,
Horizon Group Properties, Inc., a Maryland corporation (“Maker”),
promises to pay on DEMAND to Pleasant Lake Apts. Limited Partnership, an Ohio
limited partnership, and Pleasant Lake Apts. Corp., an Ohio corporation
(collectively, “Payee”), in lawful money of the United States of
America, the principal sum of Two Million Dollars ($2,000,000.00).

 

1.                                      PAYMENTS

 

1.1       PRINCIPAL

 

The principal
amount of this Note shall be due and payable upon Maker’s receipt of a written
demand for payment from Payee (the “Payment Date”).  Interest shall accrue on the unpaid balance at the rate of five
percent (5%) per annum, based on a yearly three hundred sixty-five (365)
days.  All payments made by Maker under
this Note shall be applied first to the payment of interest and then to the
payment of principal.

 

MAKER
ACKNOWLEDGES THAT THIS NOTE IS A DEMAND NOTE AND THE UNPAID PRINCIPAL BALANCE
HEREUNDER, TOGETHER WITH ALL INTEREST THEREON, SHALL BE DUE AND PAYABLE ON
DEMAND.

 

1.2       MANNER
OF PAYMENT

 

All payments
of principal and interest on this Note shall be made either by wire transfer as
directed by Payee or by check to the following address:

 

Pleasant Lake
Apts. Ltd. Partnership

23811 Chagrin Blvd., #200

Beachwood, Ohio 44122

Attention:        Howard Amster

 

If any payment of principal or
interest on this Note is due on a day that is not a Business Day, such payment
shall be due on the next succeeding Business Day.  “Business Day” means any day other than a Saturday, Sunday
or legal holiday in the State of Illinois.

 

1.3       PREPAYMENT

 

Maker may
without premium or penalty, prepay all or any portion of the accrued interest
and outstanding principal balance due under this Note upon five (5) days’ prior
written notice to Payee.

 

 

2.                                      DEFAULTS

 

2.1       EVENTS
OF DEFAULT

 

The occurrence
of any one (1) or more of the following events with respect to Maker shall
constitute an event of default hereunder (“Event of Default”):

 

(a)          If
Maker fails to pay this Note within two (2) days after demand.

 

(b)         If,
pursuant to or within the meaning of the United States Bankruptcy Code or any
other federal or state law relating to insolvency or relief of debtors (a “Bankruptcy
Law”), Maker shall (i) commence a voluntary case or proceeding; (ii)
consent to the entry of an order for relief against it in an involuntary case;
(iii) consent to the appointment of a trustee, receiver, assignee, liquidator
or similar official; (iv) make an assignment for the benefit of its creditors;
or (v) admit in writing its inability to pay its debts as they become due.

 

(c)          If
a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that (i) is for relief against Maker in an involuntary case;
(ii) appoints a trustee, receiver, assignee, liquidator or similar official for
Maker or substantially all of Maker’s properties; or (iii) orders the
liquidation of Maker, and in each case, the order or decree is not dismissed
within sixty (60) days.

 

(d)         The
breach by Maker of any covenant, agreement, term or provision under that
certain letter agreement between Maker and Payee dated this date relating to
the loan evidenced by this Note.

 

2.2       NOTICE
BY MAKER

 

Maker shall
notify Payee in writing within two (2) days after the occurrence of any Event
of Default described in Section 2.1(b), (c) or (d) of which Maker has actual
knowledge without any investigation or inquiry.

 

2.3       REMEDIES

 

Upon the
occurrence of an Event of Default hereunder (unless all Events of Default have
been cured or waived by Payee), Payee may exercise any and all rights and
remedies available to it under applicable law, including, without limitation,
the right to collect from Maker all sums due under this Note.  Maker shall pay all reasonable costs and
expenses incurred by or on behalf of Payee in connection with Payee’s exercise
of any or all of its rights and remedies under this Note, including, without
limitation, reasonable attorneys’ fees.

 

3.                                      MISCELLANEOUS

 

3.1       WAIVER

 

The rights and
remedies of Payee under this Note shall be cumulative and not alternative.  No waiver by Payee of any right or remedy
under this Note shall be effective unless in a writing signed by Payee.  Neither the failure nor any delay in
exercising any right, power or privilege under 

 

2

 

this Note shall operate as a
waiver of such right, power or privilege; and no single or partial exercise of
any such right, power or privilege by Payee shall preclude any other or further
exercise of such right, power or privilege or the exercise of any other right,
power or privilege.  To the maximum
extent permitted by applicable law, (a) no claim or right of Payee arising out
of this Note can be discharged, in whole or in part, by a waiver or renunciation
of the claim or right unless in a writing signed by Payee; (b) no waiver that
may be given by Payee shall be applicable except in the specific instance for
which it is given; and (c) no notice to or demand on Maker shall be deemed to
be a waiver of any obligation of Maker or of the right of Payee to take further
action without notice or demand as provided in this Note.  Maker hereby waives presentment, demand,
protest and notice of dishonor and protest.

 

3.2       NOTICES

 

Any notice
required or permitted to be given hereunder shall be sufficient if in writing
and delivered in person, by facsimile with confirmation or sent via registered
or certified United States mail, return receipt requested, postage prepaid, or
by recognized courier services, addressed as follows:

 

If to Maker:

 

Horizon Group
Properties, Inc.

77 West Wacker Drive, Suite 7700

Chicago, IL 60601

Attention:        Gary Skoien

 

If to Payee:

 

Pleasant Lake
Apts. Ltd. Partnership and

Pleasant Lake Apts. Corp.

23811 Chagrin Blvd. #200

Beachwood, OH 44122

Attention:        Howard Amster

 

or such other address as either
party may designate in writing.  A
notice shall be deemed received:  (a) if
by telecopy, on the date confirmed; (b) if by mail, two (2) days after mailing;
and (c) if by overnight courier service, on the date delivered.

 

3.3       SEVERABILITY

 

If any
provision in this Note is held invalid or unenforceable by any court of
competent jurisdiction, the other provisions of this Note shall remain in full
force and effect.  Any provision of this
Note held invalid or unenforceable only in part or degree shall remain in full
force and effect to the extent not held invalid or unenforceable.

 

3.4       GOVERNING
LAW AND JURISDICTION

 

This Note
shall be governed by and construed under the laws of the State of Ohio without
regard to conflicts-of-laws principles that would require the application of
any other law; and any action on this Note may at the option of Payee, be
instituted and enforced in the Courts of the State

 

3

 

of Ohio or the U.S. District
Court for the Northern District of Ohio and Maker waives any objection to the
jurisdiction of such Courts.

 

3.5       PARTIES
IN INTEREST

 

This Note
shall not be assigned or transferred by Payee without the prior written consent
of Maker, other than to an entity owned or controlled by Howard Amster.  This Note shall be binding in all respects
upon Maker and its successors and assigns, and shall inure to the benefit of
Payee and its successors and permitted assigns.

 

3.6       SECTION
HEADINGS; CONSTRUCTION

 

The headings
of Sections in this Note are provided for convenience only and shall not affect
its construction or interpretation.  All
references to “Section” or “Sections” refer to the corresponding Section or
Sections of this Note unless otherwise specified.  All words used in this Note shall be construed to be of such
gender or number as the circumstances require. 
Unless otherwise expressly provided, the words “hereof” and “hereunder”
and similar references refer to this Note in its entirety and not to any
specific section or subsection hereof, the words “including” or “includes” do
limit the preceding words or terms and the word “or” is used in the inclusive
sense.

 

IN WITNESS WHEREOF,
Maker has duly executed and delivered this Note as of the date first stated
above.

 

	
   

  	
  HORIZON GROUP PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
   

  

 

4Exhibit 10.89

 

	

  RECORDING

  REQUESTED BY AND

  	

   

  	

  )

  
	

  WHEN

  RECORDED MAIL TO:

  	

   

  	

  )

  
	

   

  	

   

  	

  )

  
	

  Anderson,

  McCoy & Orta, P.C.

  	

   

  	

  )

  
	

  100 N.

  Broadway, Suite 2650

  	

   

  	

  )

  
	

  Oklahoma

  City, Oklahoma 73102

  	

   

  	

  )

  
	

  Loan No.

  14027

  	

   

  	

  )

  

 

SPACE ABOVE THIS LINE

FOR RECORDER’S USE

 

 

CONSENT

AND ASSUMPTION AGREEMENT

 

This Consent

and Assumption Agreement (“Assumption Agreement”) is dated as of the 22nd day

of May, 2003 (“Closing Date”), between and among WELLS FARGO BANK MINNESOTA,

N.A., AS SUCCESSOR IN INTEREST TO NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION,

AS TRUSTEE FOR  J. P. MORGAN COMMERCIAL

MORTGAGE FINANCE CORP., MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2000-C9 (the

“Noteholder”), whose Special Servicer 

is ARCap Servicing, Inc. (“ARCap”), having an address of 5605 N.

MacArthur Blvd., Suite 950, Irving, Texas 

75038, TULARE OUTLET CENTER L.P., a Delaware limited partnership (the

“Assumptor”), having its address at 5000 Hakes Drive, Norton Shores, MI 49441,

DALEVILLE, SOMMERSET, TULARE OUTLET CENTERS, L.P., a Delaware limited

partnership  (“Borrower”), having its

address at 77 West Wacker Drive, Suite 4200, Chicago, Illinois 60601, and

HORIZON GROUP PROPERTIES, INC., a Maryland corporation (the “Guarantor”).

 

RECITALS:

 

A.                                   On

or about July 9, 1999, MORGAN GUARANTY TRUST COMPANY OF NEW YORK (“Original

Lender”) made a certain loan and extended credit in the amount of NINE MILLION

THREE HUNDRED TWENTY FIVE THOUSAND AND NO/100 DOLLARS ($9,325,000.00) (the

“Loan”) to Borrower, evidenced by a certain Tulare Note (herein defined),

security agreements, deeds of trust, mortgages, and other documents and

instruments executed by Borrower and others from time to time (collectively,

the “Tulare Loan Documents”), including, but not limited to, those listed on Exhibit

“A” attached hereto and incorporated herein for all purposes.

 

B.                                     Noteholder

is the current owner and holder of the Loan, the Tulare Note and the Tulare

Loan Documents.

 

C.                                     Borrower,

Guarantor and Assumptor have agreed to the assumption by Assumptor of the

liabilities and obligations of Borrower under the Tulare Note and the other

Tulare Loan Documents.

 

D.                                    Borrower,

Guarantor and Assumptor have requested that Noteholder approve and

 

 

consent to the assumption by

Assumptor of the liabilities and obligations of Borrower under the Tulare Note

and the other Tulare Loan Documents.

 

E.                                      Upon

the conditions set forth herein, Noteholder is willing to approve and consent

to the assumption by Assumptor of the liabilities and obligations of Borrower

under the Tulare Note and the other Tulare Loan Documents.

 

AGREEMENT

 

In furtherance

of the foregoing, Borrower, Guarantor, Assumptor and Noteholder do hereby agree

as follows:

 

1.                                       Assumption

by Assumptor.  Assumptor

hereby assumes and agrees, for the benefit of Noteholder and its successors and

assigns, to be bound by, observe and perform, all past (to the extent

unsatisfied), present and future liabilities, terms, provisions, covenants and

obligations of Borrower under the Tulare Note and the other Tulare Loan

Documents.  Assumptor agrees that it

will be bound by all of such terms and provisions, promptly pay all such

liabilities and promptly observe and perform all such covenants and

obligations, with the same force and effect as if Assumptor had originally

executed and delivered the Tulare Note and other Tulare Loan Documents instead

of Borrower and as if Borrower has and/or had never been released of any

obligation and/or liability under the Tulare Note and other Tulare Loan

Documents.  For the period of time for

the inception of time up to and including the Closing Date, a reference in any

Loan Document, including the Tulare Note, to Borrower, therefore, shall also be

deemed a reference to Assumptor.  For

the period of time from and after the Closing Date, a reference in any Loan

Document to Borrower, shall be deemed a reference to only Assumptor.  Assumptor hereby consents to the release by

Noteholder, effective as of the date hereof, of Borrower’s future obligations

and liabilities under the Tulare Loan Documents; Assumptor hereby acknowledges

that any such release of Borrower shall not affect Assumptor’s obligations and

liabilities under the Tulare Loan Documents.

 

2.                                       Payment

of the Tulare Note.  The

parties hereby acknowledge and agree that the principal balance of the Tulare

Note as of April 1, 2003, is $8,983,886.24, with accrued and unpaid interest in

the amount of $447,577.21; these amounts have been determined after taking into

account the payment received by Noteholder due for September 1, 2002.

 

Commencing

with the loan payment due for May 1, 2003 and thereafter in accordance with the

terms of the Tulare Note, Assumptor shall pay the amounts specified under the

Tulare Note.  Such amounts under the

Tulare Note include, absent an Event of Default (as defined in the Tulare Deed

of Trust), a constant monthly payment of $74,836.23.  Beginning with the loan payment due for July 1, 2003, Noteholder

shall forgive, upon the receipt of each monthly loan payment, accrued interest

in amount of $149,192.40, for the loan payments due for July 1, 2003, August 1,

2003 and September 1, 2003, such that the accrued interest in the amount of

$149,192.40 will be forgiven for each of 

three (3) consecutive months upon the receipt of each monthly loan

payment beginning with the loan payment due for June 1, 2003.  Noteholder shall not be required to forgive

accrued interest if there is an Event of Default under the Tulare Loan

Documents or an act or occurrence, which with the passage of time or the giving

of notice, would be an Event of Default under the Tulare Loan Documents, nor

shall Noteholder be required to forgive any accrued interest which exceeds the

aggregate sum of $447,577.21. Nothing contained herein shall reduce or affect

the amount

 

2

 

Assumptor shall pay to Noteholder

the amounts due under the Escrow Agreement, and Assumptor shall pay such

amounts under the Escrow Agreement (including a deposit in the On-going

Replacement Reserve in the monthly amount of $2,079.71) commencing with the

loan payment due for May 1, 2003; provided, however, Borrower and Assumptor

shall not be required to make any reserve or escrow deposits pursuant to the

Escrow Agreement for the loan payments which were due for October 1, 2002 to

and including April 1, 2003.  Commencing

with the loan payment due for May 1, 2003, Assumptor shall comply with the

reserve and escrow requirements of the Tulare Loan Documents.

 

Upon payment

of the May 1, 2003 loan payment and satisfaction of the conditions contained

herein, Noteholder hereby waives any default interest and/or similar penalties

which have accrued on the Note.

 

Notwithstanding

any other provision of the Tulare Note to the contrary, Assumptor shall have

the right to prepay the Tulare Note, in whole but not in part, on or before

August 28, 2003.  Although Borrower

shall be required to pay all accrued interest under the Note in connection with

any prepayment in whole on or before August 28, 2003, Borrower shall not be

required to pay any prepayment charge, prepayment yield or prepayment premium

in connection with a prepayment in whole on or before August 28, 2003.

 

3.                                       Amendments

to Daleville Loan Documents and to Sommerset Loan Documents.  The Borrower is indebted to Noteholder

pursuant to (i) that certain promissory note (the “Sommerset Note”) dated July

9, 1999, in the original principal sum of $2,650,000.00 (the “Sommerset Loan”)

and evidenced and/or secured by a certain Mortgage and Security Agreement

recorded on July 15, 1999, in Volume 1465, Page 489, with the Office of the

Recorder of Deeds of Somerset County, Pennsylvania (the “Sommerset Mortgage”),

encumbering the property described therein (the “Sommerset Property”), and

certain documents and/or instruments executed by Borrower and others from time

to time (the Sommerset Note, the Sommerset Mortgage and such other documents

and instruments are collectively, the “Sommerset Loan Documents”), and (ii)

that certain promissory note (the “Daleville Note”) dated July 9, 1999, in the

original principal sum of $10,875,000.00 (the “Daleville Loan”) and evidenced

and/or secured by a certain Mortgage and Security Agreement recorded on July

15, 1999, in MIS1999, Page 28785, of the Office of the County Recorder of

Delaware County, Indiana (the “Daleville Mortgage”), encumbering the property

described therein (the “Daleville Property”), and certain documents and/or

instruments executed by Borrower and others from time to time (the Daleville

Note, the Daleville Mortgage and such other documents and instruments are

collectively, the “Daleville Loan Documents”). 

As a condition of the effectiveness of this Assumption Agreement,

Borrower shall cause the Daleville Loan, the Daleville Loan Documents, the

Sommerset Loan and the Sommerset Loan Documents to be purchased from Noteholder

for the total sum of $1,980,000.00.  The

Guaranty (herein defined), the Environmental Agreement (herein defined), the

Clearing Account Agreement (herein defined) and the Escrow Agreement (herein

defined) shall be amended as provided herein and shall not, at the time of the

transfer of the Daleville Loan Documents and the Sommerset Loan Documents from

Noteholder to a designee of Borrower, be a part of the Daleville Loan Documents

and the Sommerset Loan Documents.

 

The Daleville

Loan Documents are hereby amended, with such amendment to take effect

immediately prior to the transfer of the Daleville Loan Documents from

Noteholder to a designee

 

3

 

of Borrower, to the effect that

the Daleville Loan Documents are no longer cross-collateralized or cross-defaulted

with the Sommerset Loan Documents and the Tulare Loan Documents.  The Sommerset Loan Documents are hereby

amended, with such amendment to take effect immediately prior to the transfer

of the Sommerset Loan Documents from Noteholder to a designee of Borrower, to

the effect that the Sommerset Loan Documents are no longer cross-collateralized

or cross-defaulted with the Daleville Loan Documents and the Tulare Loan

Documents.  The Tulare Loan Documents

are hereby amended to the effect that (i) the Tulare Loan Documents are no

longer cross-collateralized or cross-defaulted with the Sommerset Loan

Documents and the Daleville Loan Documents, and (ii) the Tulare Loan Documents

only secure the Tulare Note and the obligations of  Assumptor under the Tulare Loan Documents.

 

The Guaranty,

the Environmental Agreement, the Clearing Account Agreement and the Escrow

Agreement are hereby amended, with such amendment to take effect immediately

prior to the transfer of the Daleville Loan Documents and the Sommerset Loan

Documents from Noteholder to a designee of Borrower and only for the period of

time after such transfer, to delete all references to the Sommerset Loan, the

Sommerset Note, the Daleville Loan and the Daleville Note. The Guaranty, the

Environmental Agreement, the Clearing Account Agreement and the Escrow

Agreement, as of the moment immediately preceding the transfer of the Daleville

Loan Documents and the Sommerset Loan Documents, shall not be a part of the

Daleville Loan Documents and the Sommerset Loan Documents.  Effective immediately prior to the transfer

of the Daleville Loan Documents and the Sommerset Loan Documents from

Noteholder to a designee of Borrower, Borrower is hereby released from further

liability under the Environmental Agreement, the Clearing Account Agreement and

the Escrow Agreement insofar and only insofar as the

Environmental Agreement, the Clearing Account Agreement and the Escrow

Agreement relate to the Sommerset Property, the Sommerset Loan, the Sommerset

Loan Documents, the Daleville Property, the Daleville Loan and the Daleville

Loan Documents, with the intention of the parties to have Assumptor liable

under the Environmental Agreement, the Clearing Account Agreement and the

Escrow Agreement only to the extent such agreements relate to the Tulare Loan,

the Tulare Loan Documents and the Tulare Property; pursuant to the provisions

of Section 6 below, Borrower shall remain liable under the Tulare Loan

Documents only for any acts or events occurring or obligations arising prior to

or simultaneously with the Closing Date. 

Upon transfer of the Daleville Loan Documents and the Sommerset Loan

Documents from Noteholder to a designee of Borrower, Noteholder shall have no

further claims against Borrower with respect to the Sommerset Loan, the

Sommerset Loan Documents, the Daleville Loan and the Daleville Loan Documents,

with the effect that any claims under the Sommerset Loan, the Sommerset Loan

Documents, the Daleville Loan and the Daleville Loan Documents shall only be

exercised by the assignee of the Sommerset Loan Documents and the Daleville

Loan Documents (which assignee shall be a designee of Borrower).  Borrower, Assumptor and Noteholder hereby

agree to cooperate with all reasonable requests of any of such parties to

execute such documents as may be required to have all tenant payments made

pursuant to the Clearing Account Agreement as it relates to the Sommerset Loan,

the Sommerset Loan Documents, the Daleville Loan and the Daleville Loan

Documents, forwarded to Borrower.

 

4.                                       Escrow and

Reserve Balances. 

Effective immediately prior to the transfer of the Daleville Loan

Documents and the Sommerset Loan Documents from Noteholder to a designee of

Borrower, all impound, escrow and reserve balances maintained with Noteholder

under for the Daleville Loan and the Sommerset Loan shall be transferred to the

corresponding impound, escrow

 

4

 

and reserve accounts maintained

with Noteholder under the Tulare Loan Documents.  All impound, reserve and/or escrow accounts for the Tulare Loan,

the Sommerset Loan and the Daleville Loan and all amounts held by Noteholder in

suspense for the Tulare Loan, the Sommerset Loan and the Daleville Loan are

hereby assigned by Borrower to Assumptor. 

Borrower and Assumptor hereby authorize Noteholder to utilize all

impound, escrow and reserve balances and any suspended funds (resulting from

operations of the Tulare Property, the Daleville Property and the Sommerset

Property) with respect to the Tulare Loan, the Daleville Loan, the Sommerset

Loan, the Tulare Loan Documents, the Daleville Loan Documents and the Sommerset

Loan Documents to pay all advances of Noteholder for property taxes in

connection with the Tulare Loan, the Sommerset Loan and the Daleville Loan.  Upon such application by Noteholder within

five (5) days after the Closing Date, Assumptor shall have no balances in any

impound, escrow or reserve accounts or suspended accounts.

 

5.                                       Consent

to Transfer.  Subject to

the conditions contained herein, Noteholder hereby consents to the transfer of

the Tulare Property (defined below) to Assumptor.

 

6.                                       Release

of Borrower.  Subject to

the terms of this Assumption Agreement and as set forth below, Noteholder

hereby releases Borrower from further liability under the Tulare Note and the

other Tulare Loan Documents for any acts or events occurring or obligations

arising after the Closing Date which are not caused by, or do not arise out of,

any acts or events occurring or obligations arising prior to or simultaneously with

the Closing Date; provided, however, the provisions of this paragraph shall not

(i) constitute a waiver, release or impairment of any obligation under the

Tulare Note or the Tulare Loan Documents of Borrower for any acts or events

occurring, or obligations arising, prior to or simultaneously with, the Closing

Date; (ii) impair the right of Noteholder to name Borrower, for purposes of

extinguishing Borrower’s interest in the Tulare Property (which term shall have

the same definition herein as assigned to such term in the Tulare Deed of

Trust) as a party defendant in any action or suit for judicial foreclosure and

sale under the Tulare Deed of Trust; (iii) impair the right of Noteholder to

obtain the appointment of a receiver with respect to the Tulare Property; (iv)

impair the enforcement of the Assignment of Leases executed in connection with

the Tulare Deed of Trust; and (v) impair the right of Noteholder to bring suit

against Borrower for any acts or events occurring, or obligations arising,

prior to or simultaneously with the Closing Date.  Nothing contained in this section shall (1) be deemed to be a

release or impairment of the indebtedness evidenced by the Tulare Note or the

lien of the Tulare Loan Documents upon the Tulare Property, or (2) preclude Noteholder

from foreclosing the Tulare Loan Documents in case of any default, not cured

within any applicable notice and/or cure period, or from enforcing any of the

other rights of Noteholder except as stated in this paragraph.  Upon transfer of the Daleville Loan

Documents and the Sommerset Loan Documents from Noteholder to a designee of

Borrower,  Noteholder shall have no

further claims against Borrower with respect to the Sommerset Loan, the

Sommerset Loan Documents, the Daleville Loan and the Daleville Loan Documents,

with the effect that any claims under the Sommerset Loan, the Sommerset Loan

Documents, the Daleville Loan and the Daleville Loan Documents shall only be

exercised by the assignee of such Sommerset Loan, the Sommerset Loan Documents,

the Daleville Loan and the Daleville Loan Documents (which assignee shall be a

designee of Borrower).

 

7.                                       No

Release of Guarantor. 

Noteholder does not release Guarantor from any

liability under the Guaranty, the Environmental Agreement and the other Tulare

Loan Documents.  Guarantor hereby

ratifies its liabilities under the Guaranty, as amended in Section 3 hereof,

the Environmental

 

5

 

Agreement, as amended in

Section 3 hereof, and the other Tulare Loan Documents, as amended by Section 3

hereof, and Guarantor hereby acknowledges that such liabilities shall remain in

full force and effect after the effectiveness of this Assumption Agreement.

 

8.                                       Conditions.  It shall be a condition to the effectiveness

of this Assumption Agreement that on or before the Closing Date, (i) fee simple

title to the Tulare Property shall have been conveyed by Borrower to Assumptor,

with the conveyance instrument recorded with the land records recording officer

of Tulare County, California, (ii) the Assumptor shall cause to be delivered to

the Noteholder an opinion of counsel, satisfactory to the Noteholder, in its

sole discretion, as to form, substance and rendering attorney, opining to the

validity and enforceability of this Assumption Agreement and the terms and

provisions hereof, and any other agreement executed in connection with the

transactions contemplated hereby, the authority of the Assumptor and any

constituents of the Assumptor, to execute and deliver this Assumption Agreement

and perform their obligations under the Tulare Note and other Tulare Loan

Documents, and such other matters as reasonably requested by the Noteholder,

(iii) Assumptor and Borrower shall cause to be delivered to Noteholder, at

Borrower’s and Assumptor’s expense, a lender’s title policy, or an endorsement

to an existing lender’s policy, insuring the Tulare Deed of Trust as modified

by this Assumption Agreement as a valid first lien on the Tulare Property,

naming the Noteholder as the insured thereunder, and naming the Assumptor as

owner of the Tulare Property, which policy shall insure that, as of the date of

the recording of this Assumption Agreement, the Tulare Property shall not be

subject to any additional exceptions or liens other than those conditions in the

original title policy insuring the lien of the Tulare Deed of Trust and

delivered in connection with the Tulare Deed of Trust, (iv) Assumptor shall

obtain, and provide Noteholder with proof thereof satisfactory to Noteholder,

insurance for the Tulare Property which satisfies the requirements of the

Tulare Deed of Trust, and (v) Assumptor shall deliver to Noteholder such other

documents as Noteholder shall reasonably request such as new financing

statements or amendments to existing financing statements.  Noteholder, at any time, may in its sole

discretion and in writing, waive the requirements of this section and upon such

waiver, this Assumption Agreement shall be effective, as Noteholder’s election,

as of the Closing Date or as of the date of such writing.

 

9.                                       Substitution

of Persons under Tulare Loan Documents.  All references to “Bank”, “Lender”, “Payee”,

“Secured Party”, “Mortgagee”, “Assignee” or “Beneficiary” set forth in the Note

or any of the Tulare Loan Documents shall be, as of January 1, 2000, deemed to

be references to Noteholder.

 

10.                                 Ratifications.  Borrower, Guarantor and Assumptor, hereby

agree as follows:

 

(a)                                  The

terms and provisions set forth in this Assumption Agreement shall modify and

supersede all inconsistent terms and provisions set forth in the Tulare Note

and the Tulare Loan Documents and except as expressly modified and superseded

by this Assumption Agreement, the terms and provisions of the Tulare Note and

the Tulare Loan Documents are ratified and confirmed and shall continue in full

force and effect.  Borrower, Guarantor

and Assumptor agree that the Tulare Note and the Tulare Loan Documents, as

amended hereby, shall continue to be legal, valid, binding and enforceable in

accordance with their respective terms; and

 

(b)                                 Borrower

and Assumptor hereby ratify, confirm, and to the extent it will not

 

6

 

release,

terminate, interfere with or otherwise do away with any and all existing liens,

security interests or encumbrances securing the Tulare Note, grant and regrant

to Noteholder any and all liens, security interests and encumbrances created

thereby (to the extent collateral covered by the Tulare Loan Documents has not

previously been released in writing by the beneficiary of the liens, security

interests and encumbrances), and agree that: (i) same shall be for the benefit

of and to secure the Tulare Note, as amended hereby, and all other indebtedness

described in the Tulare Loan Documents, (ii) the assumption by Assumptor of the

Tulare Note and the Tulare Loan Documents shall in no manner affect or impair

the liens, security interests or encumbrances securing the Tulare Note, (iii)

said liens, security interests or encumbrances shall not in any manner be

waived, the purpose of this Assumption Agreement being to permit Assumptor to

assume the obligations of Borrower under the Tulare Note and the Tulare Loan

Documents, and (iv) the liens, security interests and encumbrances created by

the Tulare Loan Documents are acknowledged by Borrower and Assumptor to be

valid and subsisting as security for and for the benefit of the Tulare Note and

all other indebtedness described in the Tulare Loan Documents.

 

11.                                 Representations

and Warranties.

 

(a)                                  Each

of Borrower, Guarantor and Assumptor (each as to itself only) hereby represents

and warrants to Noteholder that the execution, delivery and performance of this

Assumption Agreement and any and all other documents executed and/or delivered

in connection herewith have been authorized by all requisite company,

partnership or corporate action and do not and will not violate its charter,

its partnership agreement, its articles of organization and operating

agreement, or its bylaws and articles of incorporation, its trust agreement, as

the case may be.

 

(b)                                 Without

limiting the provisions of this Assumption Agreement and the Tulare Loan

Documents, Assumptor hereby represents, warrants and covenants unto Noteholder

as of the date hereof that Assumptor complies and will comply with Section 9.04

of the Tulare Deed of Trust.

 

(c)                                  Assumptor

and Guarantor hereby represent and warrant to Noteholder that all funds

provided by Assumptor’s constituents to Assumptor are in the form of capital

contributions and are not loans to Assumptor. 

Assumptor and Guarantor hereby represent and warrant to Noteholder that,

except for the Tulare Deed of Trust, neither the Tulare Property nor the

partnership interests in Assumptor have been pledged or encumbered in

connection with the acquisition of the Tulare Property by Assumptor.

 

(d)                                 Noteholder

hereby represents and warrants to Borrower and Assumptor that, after giving

effect to the terms of the Assumption Agreement and all payments are made as

required hereunder, the Noteholder has waived all events of default under the

Tulare Loan Documents for failure to make payments under the Note as and when

due prior to May 1, 2003.  Noteholder

hereby represents and warrants to Borrower and Assumptor that Noteholder has no

actual knowledge of an uncured non-monetary event of default under the Tulare

Loan Documents.

 

12.                                 Event of

Default.  A breach of any

term of this Assumption Agreement by either

 

7

 

Guarantor or Assumptor shall be

an Event of Default (as defined in the Tulare Deed of Trust) under the Tulare

Deed of Trust, and Noteholder shall have such remedies as are available under

the law and/or Tulare Deed of Trust.

 

13.                                 Insurance.

At all times, Assumptor shall comply with all terms of the Tulare Loan

Documents, including the insurance requirements of the Tulare Deed of

Trust.  Although Noteholder may accept

certain evidence of insurance for purposes of closing the loan assumption,

Noteholder does not waive any of the insurance provisions of the Tulare Deed of

Trust.

 

14.                                 Releases,

Covenants Not to Litigate, and Assignments.  For the period of the inception of the Loan

to and through the Closing Date, and in consideration for Noteholder’s consent

to the assumption of the Tulare Note and Tulare Loan Documents described

herein, Borrower, Guarantor and Assumptor, jointly and severally, hereby,

hereby fully and finally acquit, quitclaim, releases and discharge each of

Noteholder, ARCap (and their respective officers, directors, shareholders,

representatives, employees, servicers, agents and attorneys) of and from any

and all obligations, claims, liabilities, damages, demands, debts, liens,

deficiencies or cause or causes of action (including claims and causes of

action for usury) to, of or for the benefit (whether directly or indirectly) of

Borrower, Guarantor and Assumptor, or any or all of them, at law or in equity,

known or unknown, contingent or otherwise, whether asserted or unasserted,

whether now known or hereafter discovered, whether statutory, in contract or in

tort, as well as any other kind or character of action now held, owned or

possessed (whether directly or indirectly) by the Borrower, Guarantor and

Assumptor, or any or all of them, on account of, arising out of, related to or

concerning, whether directly or indirectly, proximately or remotely, the Tulare

Loan Documents, the Sommerset Loan Documents, the Daleville Loan Documents, or

any of the properties described in such loan documents. Borrower, Guarantor and

Assumptor, jointly and severally, hereby specifically waive the provisions of Section

1542 of the California Civil Code which provides as follows:

 

“A general

release does not extend to claims which the creditor does not know or suspect

to exist in his favor at the time of executing the release, which if known by

him must have materially affected his settlement with the debtor.”

 

Borrower, Guarantor and

Assumptor hereby agree that the release provided for herein shall apply to all

unknown or unanticipated results of the transactions described in this

Assumption Agreement, as well as those known and anticipated.  Borrower, Guarantor and Assumptor execute

this release voluntarily, with full knowledge of its significance and with the

express intention of extinguishing, for the period of the inception of the Loan

to and through the Closing Date, all claims related to the Tulare Loan

Documents, the Sommerset Loan Documents, the Daleville Loan Documents, or any

of the properties described in such loan documents.

 

15.                                 Survival

of Representations and Warranties. 

All representations and warranties made in this Assumption Agreement

or any other document executed in connection herewith, shall survive the

execution and delivery of this Assumption Agreement and any other documents

executed in connection herewith, and no investigation by Noteholder for any

closing shall affect the representations and warranties or the right of

Noteholder to rely upon them.

 

16.                                 Notices.  All notices or other communications required

or permitted to be given shall be given and effective in accordance with the

Tulare Note and the other Tulare Loan

 

8

 

Documents. 

For purposes of notices, the addresses of the parties shall be as

follows:

 

 

	

  NOTEHOLDER:

  	

   

  	

  WELLS FARGO

  BANK MINNESOTA, N.A., AS SUCCESSOR IN INTEREST TO NORWEST BANK MINNESOTA,

  NATIONAL ASSOCIATION, AS TRUSTEE FOR 

  J. P. MORGAN COMMERCIAL MORTGAGE FINANCE CORP., MORTGAGE PASS-THROUGH

  CERTIFICATES, SERIES 2000-C9

  
	

   

  	

   

  	

  c/o ARCap

  Servicing, Inc.

  
	

   

  	

   

  	

  5605 N.

  MacArthur Blvd., Suite 950

  
	

   

  	

   

  	

  Irving,

  Texas  75038

  
	

   

  	

   

  	

  Attn: John Lloyd

  
	

   

  	

   

  	

  Telecopy:

  972-580-3888

  
	

   

  	

   

  	

   

  
	

  ASSUMPTOR

  AND GUARANTOR:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  c/o Tulare

  Finance Company, Inc.

  
	

   

  	

   

  	

  5000 Hakes

  Drive

  
	

   

  	

   

  	

  Norton

  Shores, MI 49441

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  with a copy

  to:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  David A.

  Grossberg, Esq.

  
	

   

  	

   

  	

  Schiff

  Hardin & Waite

  
	

   

  	

   

  	

  311 South

  Wacker Drive, Suite 5125

  
	

   

  	

   

  	

  Chicago,

  Illinois 60606-6622

  
	

   

  	

   

  	

  Telephone:

  312-258-5764

  
	

   

  	

   

  	

  Telecopy:

  312-554-3115

  
	

   

  	

   

  	

   

  
	

  BORROWER:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  DALEVILLE,

  SOMMERSET, TULARE OUTLET CENTERS, L.P.

  
	

   

  	

   

  	

  77 West

  Wacker Drive, Suite 4200

  
	

   

  	

   

  	

  Chicago,

  Illinois 60601

  

 

17.                                 Intentionally deleted.

 

18.                                 Severability.  Any provision of this Assumption Agreement

held by a court of competent jurisdiction to be invalid or unenforceable shall

not impair or invalidate the remainder of this Assumption Agreement and the

effect thereof shall be confined to the provision so held to be invalid or

unenforceable.

 

19.                                 APPLICABLE

LAW.  THIS

ASSUMPTION AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE

LAWS OF THE STATE FOR WHICH THE TULARE LOAN DOCUMENTS PROVIDE THAT THE

 

9

 

TULARE

LOAN DOCUMENTS ARE TO BE GOVERNED BY AND CONSTRUED WITH.

 

20.                                 Counterparts.  This Assumption Agreement may be executed in

one or more counterparts, each of which when so executed shall be deemed to be

an original, but all of which when taken together shall constitute one and the

same instrument.

 

21.                                 Headings.  The headings, captions and arrangements used

in this Assumption Agreement are for convenience only and do not affect the

interpretations of this Assumption Agreement.

 

22.                                 Effect of

Waiver.  No failure on

the part of Noteholder to exercise and no delay in exercising, and no course of

dealing with respect to, any right, power or privilege under this Assumption

Agreement shall operate as a waiver thereof, nor shall any single or partial

exercise of any right, power or privilege under this Assumption Agreement

preclude any other right, power or privilege. 

The rights and remedies provided for in this Assumption Agreement, the

Tulare Note and the other Tulare Loan Documents are cumulative and not

exclusive of any rights and remedies provided by law.

 

23.                                 Further

Assurances.  Borrower,

Guarantor and Assumptor agree that Noteholder may file an original or photocopy

of this Assumption Agreement as a mortgage or deed of trust or as amendment to

a mortgage or deed of trust wherever deemed appropriate by Noteholder.  Borrower, Guarantor and Assumptor agree to

execute and deliver to Noteholder such security agreements, financing statements,

deeds of trust, mortgages, assignments (and supplemental deeds of trust,

mortgages, assignments, security agreements and financing statements) and other

documents and instruments and to do such other things as Noteholder may

reasonably request or deem necessary in order to perfect and maintain the

security interests, liens and encumbrances created and confirmed hereunder, or

to further implement the provisions of this Assumption Agreement.

 

25.                                 Transferability.  Notwithstanding anything contained in the

Tulare Loan Documents to the contrary, Noteholder shall have the right to

assign or transfer all or part of its rights, duties and obligations under the

Tulare Loan Documents to a transferee who may or may not be a holder of the

Tulare Note and such transferee shall be entitled to all of the rights and

benefits of Noteholder under the Tulare Loan Documents.

 

26.                                 Furnishing

Information.  Borrower,

Guarantor and Assumptor agree that Noteholder may furnish any financial or

other information concerning any such persons heretofore or hereafter provided

by any such persons to Noteholder, to any prospective or actual purchaser of

any participation or other interest in the Loans or to any prospective or

actual purchaser of any securities issued or to be issued by Noteholder, or to

any rating agencies.

 

27.                               ENTIRE

AGREEMENT.  THIS ASSUMPTION

AGREEMENT AND THE TULARE LOAN DOCUMENTS AND ALL OTHER INSTRUMENTS, DOCUMENTS

AND AGREEMENTS EXECUTED AND DELIVERED IN CONNECTION WITH THIS ASSUMPTION

AGREEMENT EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND

SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND

UNDERSTANDINGS, WHETHER WRITTEN

 

10

 

OR ORAL, RELATING TO THIS ASSUMPTION

AGREEMENT, AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR,

CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES

HERETO.  THERE ARE NO ORAL AGREEMENTS

AMONG THE PARTIES HERETO.  ASSUMPTOR AND

GUARANTOR(S) HAVE EXAMINED THE TULARE DEED OF TRUST, THE INDEMNITY, THE

ENVIRONMENTAL AGREEMENT, AND THE TULARE LOAN DOCUMENTS AND ACKNOWLEDGE THAT

SUCH DOCUMENTS HAVE PROVISIONS IN THEM WHICH INCLUDE INDEMNIFICATION OF

NOTEHOLDER, INCLUDING INDEMNIFICATION FOR NOTEHOLDER’S OWN NEGLIGENCE.

 

WITHOUT LIMITING ANY PROVISION HEREIN OR IN

THE GUARANTY, THE ENVIRONMENTAL AGREEMENT OR IN THE OTHER TULARE LOAN

DOCUMENTS, GUARANTOR EXPRESSLY WAIVES ANY AND ALL BENEFITS OR DEFENSES WHICH

OTHERWISE MIGHT BE AVAILABLE TO GUARANTOR UNDER CALIFORNIA CIVIL CODE SECTIONS

2799, 2809, 2810, 2815, 2819, 2820, 2821, 2822, 2838, 2839, 2845, 2849, 2850,

2856, 2899 AND 3433.

 

THE GUARANTOR WAIVES

ALL RIGHTS AND DEFENSES THAT THE GUARANTOR MAY HAVE BECAUSE THE ASSUMPTOR’S

DEBT IS SECURED BY REAL PROPERTY.  THIS

MEANS, AMONG OTHER THINGS: (1) THE NOTEHOLDER MAY COLLECT FROM THE GUARANTOR

WITHOUT FIRST FORECLOSING ON ANY REAL OR PERSONAL PROPERTY COLLATERAL PLEDGED

BY THE ASSUMPTOR. (2) IF THE NOTEHOLDER FORECLOSES ON ANY REAL PROPERTY

COLLATERAL PLEDGED BY THE ASSUMPTOR: (A) THE AMOUNT OF THE DEBT MAY BE REDUCED

ONLY BY THE PRICE FOR WHICH THAT COLLATERAL IS SOLD AT THE FORECLOSURE SALE,

EVEN IF THE COLLATERAL IS WORTH MORE THAN THE SALE PRICE. (B) THE NOTEHOLDER

MAY COLLECT FROM THE GUARANTOR EVEN IF THE NOTEHOLDER, BY FORECLOSING ON THE

REAL PROPERTY COLLATERAL, HAS DESTROYED ANY RIGHT THE GUARANTOR MAY HAVE TO

COLLECT FROM THE ASSUMPTOR.  THIS IS AN

UNCONDITIONAL AND IRREVOCABLE WAIVER OF ANY RIGHTS AND DEFENSES THE GUARANTOR

MAY HAVE BECAUSE THE ASSUMPTOR’S DEBT IS SECURED BY REAL PROPERTY. THESE RIGHTS

AND DEFENSES INCLUDE, BUT ARE NOT LIMITED TO, ANY RIGHTS OR DEFENSES BASED UPON

SECTION 580a, 580b, 580d, or 726 OF THE CALIFORNIA CODE OF CIVIL PROCEDURE.

 

THE GUARANTOR WAIVES

ALL RIGHTS AND DEFENSES ARISING OUT OF AN ELECTION OF REMEDIES BY THE

NOTEHOLDER, EVEN THOUGH THAT ELECTION OF REMEDIES, SUCH AS A NONJUDICIAL

FORECLOSURE WITH RESPECT TO SECURITY FOR A GUARANTEED OBLIGATION, HAS DESTROYED

THE GUARANTOR=S RIGHTS OF SUBROGATION AND REIMBURSEMENT AGAINST THE PRINCIPAL

BY THE OPERATION OF SECTION 580d OF THE CALIFORNIA CODE OF CIVIL PROCEDURE OR

OTHERWISE.

 

[SIGNATURE PAGES TO FOLLOW]

 

11

 

EXECUTED as of

the date first written above.

 

	

   

  	

  NOTEHOLDER:

  
	

   

  	

   

  
	

   

  	

  WELLS FARGO

  BANK MINNESOTA, N.A., AS SUCCESSOR IN INTEREST TO NORWEST BANK MINNESOTA,

  NATIONAL ASSOCIATION, AS TRUSTEE FOR 

  J. P. MORGAN COMMERCIAL MORTGAGE FINANCE CORP., MORTGAGE PASS-THROUGH

  CERTIFICATES, SERIES 2000-C9

  
	

   

  	

   

  
	

   

  	

  By:

  	

  ARCap

  Servicing, Inc.(f/k/a ARCap Special

  Servicing, Inc.), its Special Servicer

  
	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

   

  	

  Name: John

  Lloyd

  
	

   

  	

   

  	

  Title:

  Director

  

 

12

 

	

   

  	

  ASSUMPTOR:

  
	

   

  	

   

  
	

   

  	

  TULARE

  OUTLET CENTER L.P., a Delaware limited

  partnership

  
	

   

  	

   

  
	

   

  	

  By:

  	

  Tulare

  Finance Company, Inc., a Delaware

  corporation

  
	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

   

  	

  Name:

  	

   

  	

   

  
	

   

  	

   

  	

  Title:

  	

   

  	

   

  
	

   

  
	

   

  	

  BORROWER:

  
	

   

  	

   

  
	

   

  	

  DALEVILLE,

  SOMMERSET, TULARE OUTLET

  CENTERS, L.P., a Delaware limited partnership

  
	

   

  	

   

  
	

   

  	

  By:

  	

  Daleville,

  Sommerset, Tulare Finance Company, Inc.,

  a Delaware corporation, its general partner

  
	

   

  	

   

  
	

   

  	

   

  	

  By: 

  	

   

  	

   

  
	

   

  	

   

  	

  Name: 

  	

   

  	

   

  
	

   

  	

   

  	

  Title: 

  	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  GUARANTOR:

  
	

   

  	

   

  
	

   

  	

  HORIZON GROUP PROPERTIES, INC., a Maryland

  corporation

  
	

   

  	

   

  
	

   

  	

   

  	

  By: 

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Name: 

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Title: 

  	

   

  	

   

  
												

 

13

 

ACKNOWLEDGMENT

FOR NOTEHOLDER

 

	

  STATE OF

  TEXAS

  	

   

  	

  ’

  
	

   

  	

   

  	

  ’

  
	

  COUNTY OF

  DALLAS

  	

   

  	

  ’

  

 

This

instrument was ACKNOWLEDGED before me, on the

          day of

            , 2003,

by John Lloyd, as Director, for ARCAP SERVICING, INC., as Special Servicer for

and on behalf of WELLS FARGO BANK MINNESOTA, N.A., AS SUCCESSOR IN INTEREST TO

NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, AS TRUSTEE FOR J. P. MORGAN

COMMERCIAL MORTGAGE FINANCE CORP., MORTGAGE PASS-THROUGH CERTIFICATES, SERIES

2000-C9.

 

	

  [ S E A L ]

  	

   

  	

   

  
	

   

  	

  Notary

  Public, State of Texas

  
	

  My

  Commission Expires:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Printed Name

  of Notary Public

  
				

 

14

 

ACKNOWLEDGMENT

FOR ASSUMPTOR

 

	

  STATE OF 

  	

   

  	

  ’

  
	

   

  	

   

  	

  ’

  
	

  COUNTY OF

  	

   

  	

  ’

  

 

On this

      day of

              ,

2003, before me,

                           ,

a Notary Public in and for said state, personally appeared

                                 ,

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 to me that he executed the same in his authorized capacity, and

that by his signature on the instrument, the person, or the entity upon behalf

of which the person acted, executed the instrument.

 

WITNESS my

hand and official seal.

 

	

   

  	

   

  	

   

  
	

   

  	

  Notary Public in and for said state

  	

   

  

 

15

 

ACKNOWLEDGMENT

FOR BORROWER

 

	

  STATE OF 

  	

   

  	

  ’

  
	

   

  	

   

  	

  ’

  
	

  COUNTY OF 

  	

   

  	

  ’

  

 

On this

      day of

              ,

2003, before me,

                           ,

a Notary Public in and for said state, personally appeared

                               ,

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 to me that he executed the same in his authorized capacity, and

that by his signature on the instrument, the person, or the entity upon behalf

of which the person acted, executed the instrument.

 

WITNESS my

hand and official seal.

 

	

   

  	

   

  	

   

  
	

   

  	

  Notary Public in and for said state

  	

   

  

 

ACKNOWLEDGMENT

FOR GUARANTOR:

 

	

  STATE OF 

  	

   

  	

  ’

  
	

   

  	

   

  	

  ’

  
	

  COUNTY OF 

  	

   

  	

  ’

  

 

On this

      day of

              ,

2003, before me,

                            ,

a Notary Public in and for said state, personally appeared

                              ,

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 to me that he executed the same in his authorized capacity, and

that by his signature on the instrument, the person, or the entity upon behalf

of which the person acted, executed the instrument.

 

WITNESS my

hand and official seal.

 

	

   

  	

   

  	

   

  
	

   

  	

  Notary Public in and for said state

  	

   

  

 

16

 

EXHIBIT

“A”

To

Consent and Assumption Agreement

 

The following

described Tulare Loan Documents which, if recorded, are recorded as

indicated below:

 

1.                                       Fixed

Rate Note dated as of July 9, 1999, in the original principal amount of

$9,325,000.00 from Borrower payable to the order of Original Lender (the

“Tulare Note”).

 

2.                                       Deed

of Trust, Security Agreement and Fixture Filing dated as of  July 9, 1999, from Borrower to Fidelity

National Title Insurance Company, Trustee for the benefit of Original Lender,

which was recorded in the Official Records of the County Recorder of Tulare

County, California, on July 15, 1999 as Document No. 99-0053799 (the “Tulare

Deed of Trust”) covering the following described real property (the “Premises”)

as follows:

 

See Exhibit

A-1 attached hereto and made a part hereof for all purposes;

 

and the property described in

the Tulare Deed of Trust (collectively, the “Tulare Property”).

 

3.                                       Assignment

of Leases and Rents (“Assignment of Leases”) dated as of July 9, 1999, executed

by Borrower for the benefit of Original Lender which was recorded on July 15,

1999 as Document No. 99-0053800, in the Official Records of Tulare County,

California.

 

4.                                       Financing

Statement from Borrower in favor of Original Lender which was recorded on July

15, 1999, in the Official Records of Tulare County, California as Document No.

99-0053801.

 

5.                                       Financing

Statement from Borrower in favor of Original Lender which was filed with the

California Secretary of State on March 15, 2000 as File No. 0007760457.

 

6.                                       Guaranty

Agreement (“Guaranty”) dated as of July 9, 1999, executed by Guarantor in favor

of Original Lender.

 

7.                                       Environmental

Indemnity Agreement (“Environmental Agreement”) dated as of July 9, 1999,

executed by Borrower and Guarantor in favor of Original Lender.

 

8.                                       Escrow

Agreement For Reserves and Impounds (“Escrow Agreement”) dated as of July 9,

1999, executed by Borrower in favor of Original Lender.

 

9.                                       Clearing

Account Agreement (“Clearing Account Agreement”) dated as of July 9, 1999,

executed by Borrower and LaSalle Bank National Association for the benefit of

Original Lender.

 

17

 

EXHIBIT

“A-1”

To

Consent and Assumption Agreement

 

[Legal description of the

Premises]

 

18

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