Document:

exv10w85

 

Exhibit 10.85

MORTGAGE NOTE

	 	 	 
	$640,000.00	 	
September  , 2003

Chicago, Illinois

     FOR VALUE RECEIVED, the undersigned, ELECTRIC CITY CORP., a Delaware
corporation, and GREAT LAKES CONTROLLED ENERGY CORPORATION, a Delaware
corporation (collectively, “Borrowers”) hereby promise to pay to the order of
AMERICAN CHARTERED BANK, an Illinois state banking association (“Bank”), in
immediately available funds, on February 1, 2005, or such earlier maturity date
as provided for herein, the principal sum of $640,000.00 (the “Loan”), as
follows:

ARTICLE I

     1.1 Repayment of Principal and Interest. Borrowers shall jointly and
severally make equal consecutive monthly principal installments of $3,000.00,
plus monthly payments of all accrued and unpaid interest. The monthly
principal and interest payments shall be due on the first day of each month
(commencing October 1, 2003) until February 1, 2005 (“Maturity Date”). A
final payment of all outstanding principal and all accrued and unpaid interest
shall be due and payable on February 1, 2005, unless such maturity date is
accelerated in accordance with the terms hereof.

     1.2 Interest Rate. The outstanding principal balance of this Note shall
bear interest a per annum rate equal to the “Prime Rate” (as hereinafter
defined) plus .50% (“Mortgage Interest Rate”). Interest on the outstanding
principal amount hereunder shall be computed on the basis of the actual number
of days elapsed on the basis of a year of 360 days at the Mortgage Interest
Rate from time to time in effect.

     As used herein, the term “Prime Rate” shall mean the rate which, at any
time and from time to time, shall be the rate of interest then most recently
announced by the Bank as its prime rate, which is not intended to be the Bank’s
lowest or most favorable rate of interest at any one time. The effective date
of any change in the Prime Rate shall be the date the rate is changed by the
Bank. The Bank shall not be obligated to give notice of any change in the
Prime Rate. Interest on the unpaid principal balance of the Loan shall be
payable, in arrears, beginning on October 1, 2003, and continuing of the last
day of each month thereafter, and on the Maturity Date.

     1.3 Prepayment. Borrowers shall be permitted to make prepayment of the
indebtedness evidenced by this Note, in whole or in part, from time to time as
the Borrowers may desire without penalty or premium.

ARTICLE II

     2.1 Security for Payment; Loan Documents. This Note is secured by a
certain

 

 

Mortgage, Assignment of Leases and Rents and Security Agreement securing the
property commonly known as 1280 Landmeier Road, Elk Grove Village, Illinois
(the “Mortgage”) and the other “Loan Documents” referred to therein. Reference
is hereby made to the Mortgage, Security Agreements and the other Loan
Documents, which are incorporated herein by this reference as fully and with
the same effect as if set forth herein at length.

     2.2 Event of Default. Borrowers, without notice or demand of any kind,
shall be in default hereunder if:

          (a) any amount payable on this Note or on any other liability or
obligation of the Borrowers to the Bank, howsoever created, arising or
evidenced, and howsoever owned, held or acquired, whether now or hereafter
existing, whether now due or to become due, whether direct or indirect, or
absolute or contingent, and whether several, joint or joint and several,
including, without limitation any guaranty executed by the Borrowers for the
benefit of the Bank (all of which liabilities and obligations, including this
Note, are hereinafter called the “Obligations”) is not paid when due; or

          (b) Borrowers shall otherwise fail to perform any of the promises to be
performed by the Borrowers hereunder or under any other security agreement or
other agreement with the Bank, including, but not limited to the obligations
set forth in Article IV herein and such failure shall continue beyond any grace
period applicable thereto; or

          (c) the Borrowers or any other party liable with respect to the
Obligations, or any guarantor or accommodation endorser or third party pledgor,
shall make any assignment for the benefit of creditors, or there shall be
commenced any bankruptcy, receivership, insolvency, reorganization, dissolution
or liquidation proceedings by or against, or the entry of any judgment, levy,
attachment, garnishment or other process, or the filing of any lien against the
Borrowers or any guarantor, or any other party liable with respect to the
Obligations, or accommodation endorser or third party pledgor for any of the
Obligations, or against any of the Collateral (as defined below) or any of the
collateral under a separate security agreement signed by any one of them; or

          (d) there be any deterioration or impairment of any of the Collateral
hereunder or any of the collateral under any security agreement executed by the
Borrowers or any other party liable with respect to the Obligations, or any
guarantor or accommodation endorser or third party pledgor for any of the
Obligations, or any decline or depreciation in the value or market price
thereof (whether actual or reasonably anticipated), which causes said
Collateral or collateral in the sole opinion of the Bank acting in good faith,
to become unsatisfactory as to value or character, or which causes the Bank to
reasonably believe that it is insecure and that the likelihood for repayment of
the Obligations is or will soon be impaired, time being of the essence; or

          (e) if this Note is secured by an additional or separate security
agreement, then, the occurrence of any default thereunder; or

          (f) there is a discontinuance by any guarantor of any guaranty of
Obligations hereunder; or the determination by the Bank that a material adverse
change has occurred in the financial condition of the Borrowers from the
condition set forth in the most recent financial statement of the Borrowers
furnished to the Bank, or from the financial condition of the Borrowers most
recently disclosed to the Bank in any manner; or

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          (g) any oral or written warranty, representation, certificate or
statement of the Borrowers to the Bank is untrue in any material respect; or

          (h) the failure to do any act necessary to preserve and maintain the
value and collectability of the Collateral; or

          (i) failure of the Borrowers after request by the Bank to furnish
financial information or to permit inspection by the Bank of the Borrowers’
books and records; or

          (j) any guarantor of this Note or of any of the other Obligations shall
contest the validity of such guaranty; or

          (k) [covered by (f) above]

     2.3 Acceleration of Maturity. At any time after the occurrence of any
Event of Default which is continuing, Bank has the option, without demand or
notice, to declare the unpaid principal of this Note, together with all accrued
interest and other sums evidenced by or secured by the Mortgage or any other of
the Loan Documents, at once due and payable to the extent permitted by law; to
foreclose the Mortgage and the liens or security interests securing the payment
of this Note; and to exercise any and all other rights and remedies available
at law or in equity or under the Mortgage or any of the other Loan Documents.

     2.4 Remedies. No delay on the part of the Bank in exercising any right
under this Note, the Loan Documents or other undertaking securing or affecting
this Note, shall operate as a waiver of such right or any other right under
this Note, nor shall any omission in exercising any right on the part of the
Bank under this Note operate as a waiver of any other right.

     2.5 Default Interest Rate. While any Event of Default exists, interest on
the unpaid principal balance of the Loan from time to time will accrue at an
annual rate (“Default Rate”) equal to the Mortgage Interest Rate plus 3.0%, and
Borrowers shall pay such interest upon demand, or if no such demand is made,
then at the times installments of interest and/or principal are due as provided
herein.

     2.6 Costs. Borrowers shall pay all costs and expenses of Bank, including
reasonable attorneys’ fees and costs incurred by the Bank in enforcing this
Note.

ARTICLE III

     3.1 Notices. Any notice, demand, request or other communication which any
party may be required or may desire to give will be deemed to have been given
if made in accordance with the terms of the Mortgage.

     3.2 Governing Law. The validity, enforcement and interpretation of this
Note shall for all purposes be governed by and construed in accordance with the
laws of the State of Illinois, without regard to its conflicts of law
principles, and applicable United States federal law, and is intended to be
performed in accordance with, and only to the extent permitted by, such laws.

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Borrowers hereby irrevocably submit generally and unconditionally for Borrowers
and in respect of Borrowers’ property to the jurisdiction of any local court,
or any United States federal court, sitting in Cook County, State of Illinois,
over any suit, action or proceeding arising out of or relating to this Note or
the Loan. Borrowers hereby irrevocably waive, to the fullest extent permitted
by law, any objection that Borrowers may now or hereafter have to the laying of
venue in any such court and any claim that any such court is an inconvenient
forum. Nothing herein shall affect the right of Bank to serve process in any
manner permitted by law or limit the right of Bank to bring proceedings against
Borrowers in any other court or jurisdiction.

     3.3 Waivers. Borrowers and each Obligor waive any and all presentment,
demand, notice of dishonor, protest, and all other notices and demands in
connection with the enforcement of the Bank’s rights hereunder. No default
shall be waived by the Bank except in writing. No delay on the part of the
Bank in the exercise of any right or remedy shall operate as a waiver thereof,
and no single or partial exercise by the Bank of any right of remedy shall
operate as a waiver thereof, and no single or partial exercise by the Bank of
any right or remedy shall preclude other or further exercise thereof, or the
exercise of any other right or remedy. This Note: (i) is valid, binding and
enforceable in accordance with its provisions, and no conditions exist to the
legal effectiveness of this Note; (ii) contains the entire agreement between
the Borrower and the Bank; (iii) taken with the Mortgage and the other Loan
Documents, is the final expression of their intentions; and (iv) supersedes all
negotiations, representations, warranties, commitments, offers, contracts (of
any kind or nature, whether oral or written) prior to or contemporaneous with
the execution hereof. Other than as set forth in the Mortgage and the other
Loan Documents, no prior or contemporaneous representations, warranties,
understanding, offers or agreements of any kind or nature, whether oral or
written, have been made by the Bank or relied upon by the Borrowers in
connection with the execution hereof. No modification, discharge, termination
or waiver of any of the provisions hereof shall be binding upon the Bank,
except as expressly set forth in a writing duly signed and delivered on behalf
of the Bank.

     3.4 Construction. The validity and construction of this Note and all
matters pertaining thereto are to be determined and construed according to the
laws of the State of Illinois, without regard to its conflicts of law
principles. The captions and headings of this Note are for convenience only
shall be disregarded in construing it.

     3.5 Business Loan. Borrowers hereby represents that: (a) the proceeds of
the Loan will be used for the purposes specified in 815 ILCS 205/4(1)(a) or (c)
of the Illinois Compiled Statutes, as amended; (b) the Loan constitutes a
“business loan” within the purview of those Sections; and (c) the proceeds of
the Loan will not be used for the purchase of registered equity securities
within the purview of Regulation “U” issued by the Board of Governors of the
Federal Reserve System.

     3.6 Severability. In the event any provision (or any part of any
provision) contained in this Note shall for any reason be finally held by a
court of competent jurisdiction to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other provision (or remaining part of the affected provision) of this Note; but
this Note shall be construed as if such invalid, illegal or unenforceable
provision (or part thereof) had never been contained herein, but only to the
extent it is invalid, illegal or unenforceable.

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     3.7 Usury. Notwithstanding any provisions of this Note or any instrument
securing payment of the indebtedness evidenced by this Note to the contrary, it is
the intent of Bank that Bank shall never be entitled to receive, collect or
apply, as interest on principal of the indebtedness, any amount in excess of
the maximum rate of interest permitted to be charged by applicable law; and if
under any circumstance whatsoever, fulfillment of any provision of this Note,
at the time performance of such provision shall be due, shall involve
transcending the limit of validity prescribed by applicable law, then the
obligation to be fulfilled shall be reduced to the limit of such validity; and
in the event Bank ever receives, collects or applies as interest any such
excess, such amount which would be excess interest will be deemed a permitted
partial prepayment of principal without penalty or premium and treated as such;
and if the principal amount secured hereby is paid in full, any remaining
excess funds shall forthwith be paid to Borrowers. In determining whether or
not interest of any kind payable hereunder, under any specific contingency,
exceeds the highest lawful rate, Borrowers and Bank will, to the maximum extent
permitted under applicable law, (1) characterize any non-principal payment as
an expense, fee or premium rather than as interest and (2) amortize, prorate
and allocate such payment so that the interest on account of such indebtedness
does not exceed the maximum amount permitted by applicable law. Bank shall not
be subject to any penalties provided by any laws for contracting for, charging
or receiving interest in excess of the maximum lawful rate.

     3.8 Successors and Permitted Assigns. This Note shall inure to and bind
(i) Borrowers and Borrowers’ successors and permitted assigns, and (ii) Bank
and Bank’s successors and assigns. Without limitation of the foregoing,
Borrowers expressly acknowledge that, after the closing of the Loan, Bank may
assign and transfer all rights and interests of the Bank hereunder to an
assignee to be identified by Bank, and acknowledge and agree that, upon
execution and delivery of the assignment in relation thereto, such assignee
shall hold all of the rights and interests of Bank hereunder.

     3.9 Time of Essence. Time shall be of the essence as to each and every
provision of this Note.

     3.10 Waiver of Jury Trial. TO THE MAXIMUM EXTENT PERMITTED BY LAW,
BORROWERS AND BANK HEREBY EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY
ACTION, CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING ARISING UNDER OR WITH
RESPECT TO THIS NOTE, OR IN ANY WAY CONNECTED WITH, RELATED TO OR INCIDENTAL TO
THE DEALING OF BORROWERS AND BANK WITH RESPECT TO THIS NOTE, OR THE
TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE. TO THE MAXIMUM
EXTENT PERMITTED BY LAW, BORROWERS AND BANK HEREBY AGREE THAT ANY SUCH ACTION,
CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING SHALL BE DECIDED BY A COURT TRIAL
WITHOUT A JURY AND THAT BANK OR BORROWERS MAY FILE AN EXECUTED COPY OF THIS
NOTE WITH ANY COURT OR OTHER TRIBUNAL AS WRITTEN EVIDENCE OF THE CONSENT OF
EACH OF BORROWERS AND BANK TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. IT IS
AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF
ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTION OR PROCEEDINGS, INCLUDING CLAIMS
AGAINST PARTIES WHO ARE NOT PARTIES TO THIS NOTE. THIS WAIVER IS KNOWINGLY,
WILLINGLY AND VOLUNTARILY MADE BY BORROWERS, AND BORROWERS HEREBY REPRESENTS

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THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO
INDUCE THIS WAIVER OF TRIAL BY JURY, THAT THEY HAVE BEEN REPRESENTED IN THE
SIGNING OF THIS NOTE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL
COUNSEL SELECTED BY BORROWERS OF THEIR OWN FREE WILL, AND THAT THEY HAVE HAD
THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

ARTICLE IV

     4.1 Security. As security for the payment of this Note and any and all
other liabilities and Obligations of the Borrowers to the Bank, the Borrowers
do hereby pledge, assign, transfer and deliver to the Bank and does hereby
grant to the Bank a continuing security interest in and to any property of the
Borrowers of any kind or description, tangible or intangible, now or hereafter
assigned, transferred or delivered to or left in or coming into the possession,
control or custody of, or in transit to, the Bank or any agent or bailee for
the Bank, by or for the account of the Borrowers, whether expressly as
collateral security or for any other purpose, including, without limitation,
all property left with the Bank whether held in a general or special account or
for safekeeping or otherwise, all dividends, interest, or other rights in
connection with any securities included in said property left with the bank
whether held in a general or special account or for safekeeping or otherwise,
all dividends, interest, or other rights in connection with any securities
included in said property coming into the possession of the Bank in any way and
any property covered by a security agreement signed or assigned by the
Borrowers in favor of the Bank, including, but not limited to the cash,
accounts, inventory, negotiable instruments, documents of title, chattel paper,
certificates of deposit, securities, deposit accounts, other cash equivalents
and all other property of whatever description of the Borrowers, or any one of
them, whether now existing or hereafter acquired, and now or hereafter in the
possession or control of or assigned to the Bank, and the products and proceeds
therefrom, including the proceeds of insurance thereon; and the additional
property of the Borrowers, whether no existing or hereafter arising or
acquired, together with any substitutions therefore, accessions thereto, or
products and proceeds therefrom, including the proceeds of insurance thereon,
but excluding in all events any personal property of Electric City Corp. and
proceeds as to which a security interest has been granted by Electric City
Corp. in favor of Laurus Master Fund, Ltd. (“Laurus Collateral”).

     All of the aforesaid property and the products and proceeds therefrom,
including the proceeds of insurance thereon, other than the Laurus Collateral,
are herein collectively called the “Collateral.” The terms used herein to
identify the Collateral shall have the respective meanings assigned to such
terms in the Illinois Uniform Commercial Code, as in effect from time to time.
The cancellation or surrender of this Note, upon payment or otherwise, shall
not affect the right of the Bank to retain the Collateral for any other of the
Obligations.

ARTICLE V

     5.1 Tangible Net Worth. Commencing as of the date hereof and for each
calendar quarter thereafter, Borrower’s Tangible Net Worth shall not at any
time be less than the sum of One Million Seven Hundred Fifty Thousand and
00/100 Dollars ($1,750,000.00). The term “Tangible Net Worth”

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shall mean the sum of the excess of total assets of Borrower over total
liabilities of Borrower. For purposes hereof, total assets and total
liabilities shall each be determined in accordance with GAAP consistently
applied, deducting, however, from the determination of total assets, all
prepaid expenses and all assets which would be classified as intangible assets
under GAAP including, without limitation, goodwill, patents, trademarks, trade
names, copyrights, franchises and deferred charges (such as unamortized debt
discount and expense, organization costs and deferred research and development
expense) and similar assets and excluding therefrom the write-up of assets
above cost and any and all assets created by loans to shareholders, directors,
officers, employees and agents of Borrower or Affiliates of Borrower.

     5.2 Borrowers’ Accounts. Each Borrower shall maintain all of its
operating, cash management, depository, payment, lock box, remittance and
investment accounts with Bank and shall collectively maintain balances in such
accounts as are necessary to compensate Bank for any service charges on such
accounts. Each Borrower shall deposit into such accounts all amounts necessary
to pay any service charges payable to Bank immediately following notice from
Bank of the amount by which such service charges exceed the balance in such
accounts.

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     IN WITNESS WHEREOF, Borrowers have caused this Note to be executed and
delivered as of the date first stated above.

	 	 	 	 	 
	 	 	ELECTRIC CITY CORP., a Delaware
corporation
	 	 	 	 	 
	 	 	
By:
	 	/s/ Jeffrey Mistarz
	 	 	 	 	

	 	 	
Its:
	 	Chief Financial Officer & Treasurer
	 	 	 	 	

	 	 	 	 	 
	 	 	GREAT LAKES CONTROLLED

ENERGY CORPORATION, a Delaware

corporation
	 	 	 	 	 
	 	 	
By:
	 	/s/ Jeffrey Mistarz
	 	 	 	 	

	 	 	
Its:
	 	Treasurer
	 	 	 	 	

8exv10w86

 

Exhibit 10.86

THIS DOCUMENT PREPARED BY

AND WHEN RECORDED MAIL

TO:

Jeffrey A. Hechtman, Esq.

Horwood Marcus & Berk Chtd.

180 North LaSalle Street

Suite 3700

Chicago, Illinois 60601

ASSIGNMENT OF LEASES AND RENTS

     This ASSIGNMENT OF LEASES AND RENTS (“Assignment”) is made as of the 30th
day of September, 2003, by and between Electric City Corp., a Delaware
corporation (“Assignor”) to American Chartered Bank, an Illinois banking
association (“Assignee”). Assignor is the sole owner of the real property and
improvements commonly known as 1280 Landmeier Road, Elk Grove Village, Illinois
and legally described on Exhibit A, attached hereto and by this reference made
a part hereof (the “Premises”).

     WHEREAS, Assignee has agreed to make a loan to Assignor and its
subsidiary, Great Lakes Controlled Energy Corporation, a Delaware corporation
(“Great Lakes”), to provide a $640,000.00 Mortgage Loan (“Note”);

     WHEREAS, payment of the Note is secured by, among other things, that
certain Mortgage, Assignment of Leases and Rents and Security Agreement dated
the date hereof as amended, modified or restated from time to time (“Mortgage”)
from Assignor, securing the Premises, as well as other security; and

     WHEREAS, the execution and delivery of this Agreement is a condition
precedent to Assignee’s obligation to make the loan.

     NOW THEREFORE, Assignor, for good and valuable consideration, the receipt
of which is hereby acknowledged, to secure the Secured Indebtedness (as defined
in the Mortgage) does hereby bargain, sell, transfer, assign, convey, set over
and deliver unto Assignee all right, title and interest of the Assignor in, to
and under all present leases of the Premises together with all future leases
hereinafter entered into affecting the Premises or any portion thereof, and all
guarantees, amendments, extensions and renewals of said leases and each of them
(all of which are hereinafter collectively referred to as the “Leases” and
individually, as the “Lease”) and all rents, income and profits which may now
or hereafter be or become due or owing under the Leases and each of them, or on
account of the use of the Premises or any portion thereof.

     Assignor covenants and agrees with Assignee that:

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	1.
	 	There are no Leases which now affect the Premises. Assignor shall not
enter into any Lease without the prior written consent of Assignee.

	2.
	 	The sole ownership of the entire landlord’s interest in the Leases is
vested in the Assignor. Assignor shall not: (a) perform any act or
execute any other instrument which might prevent Assignee from fully
exercising its rights under any term, covenant or condition of this
Assignment; (b) execute any assignment or pledge of rents, income, profits
on the Leases except an assignment or pledge securing the Secured
Indebtedness secured hereby; (c) accept any payment of any installment of
rent more than thirty (30) days before the date thereof; or (d) make any
Lease of the Premises or any portion thereof except for actual occupancy
by the tenant thereunder.

	3.
	 	No Lease will be altered, modified, amended, terminated, cancelled,
renewed or surrendered nor will any term or condition thereof be waived in
any manner whatsoever, except as heretofore approved in writing by
Assignee.

	4.
	 	There is no default now existing under the Leases and there exists no
state of fact which, with the giving of notice or lapse of time or both,
would constitute a default under the Leases; and that Assignor will
fulfill and perform each and every covenant and condition of the Leases by
the landlord thereunder to be fulfilled or performed and, at the sole cost
and expense of Assignor, enforce (excluding termination of the Leases) the
performance and observance of each and every covenant and condition of all
the Leases by the tenants thereunder to be performed and observed.

	5.
	 	Assignor shall give prompt notice to Assignee of each notice received by
Assignor claiming that a default has occurred under the Leases on the part
of the landlord, together with a complete copy of each such notice.
Without Assignee’s prior written consent in each case, Assignor will not
suffer or permit the Leases to become subordinate to any lien other than
the lien of (i) the Mortgage; (ii) this Assignment; and (iii) general real
estate taxes not delinquent.

	6.
	 	This Assignment is absolute and is effective immediately; however, until
notice, in writing, is sent by Assignee to the Assignor that an Event of
Default has occurred under the Note, the Mortgage or any of the other Loan
Documents (as defined in the Mortgage) (each such notice is hereafter
called a “Notice”), Assignor may receive, collect and enjoy the rents,
income and profits accruing from the Premises.

	7.
	 	If any Event of Default occurs at any time under the Note, the Mortgage,
or any of the other Loan Documents, Assignee may, at its option, after
service of a Notice, or otherwise in accordance with law, receive and
collect when due all such rents, income and profits from the Premises and
under the Leases of all or any part of the Premises. Assignee shall
thereafter continue to receive and collect all such rents, income and
profits until such event of default is cured and during the pendency of
any foreclosure proceedings, and, if there is a deficiency, during the
redemption period, to the extent that the waiver of such redemption period
cannot legally be effected.

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	8.
	 	The Assignor hereby irrevocably appoints Assignee its true and lawful
attorney-in-fact, with full power of substitution and with full power for
Assignee, in its own name and capacity or in the name and capacity of
Assignor, (from and after the service of a Notice), to demand, collect,
receive and give complete acquittances for any and all rents, income and
profits occurring from the Premises, and, at Assignee’s discretion, to
file any claim or take any other action or proceeding and make any
settlement in its own name or in the name of Assignor or otherwise, which
Assignee may deem necessary or desirable in order to collect and enforce
the payment of the rents, income and profits. All present and future
tenants of the Premises are hereby expressly authorized and directed to
pay to Assignee, or to such nominee as Assignee may designate in a writing
delivered to and received by such tenants, all amounts due Assignor or any
of them pursuant to the Leases. All present and future tenants are
expressly relieved of all duty, liability or obligation to Assignor and
each of them in respect of all payments so made to Assignee or such
nominee.

	9.
	 	After service of a Notice, Assignee is hereby vested with full power to
use all measures, legal and equitable, deemed by it necessary or proper to
enforce this Assignment and to collect the rents, income and profits
assigned hereunder, including the right of Assignee or its designee to
enter upon the Premises, or any part thereof, with or without force and
with or without process of law, and take possession of all or any part of
the Premises together with all personal property, fixtures, documents,
books, records, papers and accounts of Assignor relating thereto, and may
exclude the Assignor and its agents wholly therefrom. Assignor hereby
grants full power and authority to Assignee to exercise all rights,
privileges and powers herein granted at any and all times, after service
of a Notice, without further notice to Assignor, with full power to use
and apply all of the rents and other income herein assigned to payment of
the costs of managing and operating the Premises and to payment of all
Indebtedness and liability of Assignor to Assignee, including but not
limited to: (a) the payment of taxes, special assessments, insurance
premiums, damage claims, the costs of maintaining, repairing, rebuilding
and restoring the improvements on the Premises or of making the same
rentable, attorneys’ fees incurred in connection with the enforcement of
this Assignment; and (b) principal and interest payments and all other
sums due from Assignor to Assignee under the Note, the Mortgage or the
other Loan Documents; all in such order and for such time as Assignee may
determine.

	10.
	 	Assignee shall be under no obligation to exercise or prosecute any of the
rights or claims assigned to it hereunder or to perform or carry out any
of the obligations of any landlord under the Leases. Assignee does not
hereby assume any of the liabilities in connection with or arising or
growing out of the covenants and agreements of Assignor under the Leases.
This Assignment shall not operate to place responsibility for the control,
care, management or repair of the Premises, or parts thereof, upon
Assignee, nor shall it operate to make Assignee liable for the

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performance or observance of any term, condition, covenant or
agreement contained in the Leases, or for any waste of the Premises
by any tenant under the Leases or any other person, or for any
dangerous or defective condition of the Premises or for any
negligence in the management, upkeep, repair or control of the
Premises resulting in loss, injury or death to any tenant, occupant,
licensee, employee or stranger.

	11.
	 	Assignor hereby covenants and agrees to indemnify Assignee and to hold
Assignee harmless from any liability, loss or damages including, without
limitation, reasonable attorneys’ fees which may or might be incurred by
Assignee under the Leases or by reason of this Assignment, and from any
and all claims and demands whatsoever which may be asserted against
Assignee by reason of any alleged obligation or undertaking on its part to
perform or discharge any term, covenant or agreement contained in the
Leases.

	12.
	 	Assignee may: (a) take or release any party primarily or secondarily
liable for any of the Secured Indebtedness; (b) grant extensions, renewals
or indulgences with respect to such Secured Indebtedness; and (c) apply
any other security therefor held by Assignee to the satisfaction of such
Secured Indebtedness; in each case without prejudice to any of Assignee’s
other rights hereunder or under any other security given to secure the
Secured Indebtedness.

	13.
	 	Assignee may, at its option, although it shall not be obligated to do so,
perform any Lease covenant for and on behalf of the Assignor and each of
them, and all monies expended in so doing shall be chargeable to the
Assignor, with interest thereon at the Default Rate, as defined and set
forth in the Note and shall be added to the Secured Indebtedness, and
shall be immediately due and payable.

	14.
	 	The waiver of, or acquiescence by Assignee in, any default by the
Assignor, or failure of the Assignee to insist upon strict performance by
the Assignor of any covenant, condition or agreement in this Assignment or
otherwise, shall not constitute a waiver of any subsequent or other
default or failure, whether similar or dissimilar.

	15.
	 	The rights, remedies and powers of Assignee under this Assignment are
cumulative and are not in lieu of, but are in addition to, all other
rights, remedies and powers which Assignee has under the Note, the
Mortgage the other Loan Documents, and at law and in equity.

	16.
	 	If any provision contained in this Assignment or its application to any
entity or circumstances is to any extent invalid or unenforceable, the
remainder of this Assignment and the application of such provisions to
persons or circumstances (other than those as to which it is invalid or
unenforceable) shall not be affected, and each term of this Assignment
shall be valid and enforceable to the fullest extent permitted by law.

4

 

	17.
	 	All communications provided for herein shall be in writing and shall be
deemed to have been given or made when delivered personally, three days
after deposited in the United States mail (certified mail, postage
prepaid) or one day after deposited with a nationally recognized overnight
courier (delivery prepaid), or upon receipt of a confirmation of a
facsimile transmission, addressed as follows:

	 	 	 	 	 
	 	 	
To Assignee:
	 	William D. Provan
	 	 	 	 	American Chartered Bank
	 	 	 	 	1119 East Higgins Road
	 	 	 	 	Schaumburg, Illinois 60173
	 	 	 	 	Telecopier Number: 847-517-2848
	 	 	 	 	 
	 	 	
With a copy to:
	 	Jeffrey A. Hechtman, Esq.
	 	 	 	 	Horwood Marcus & Berk Chartered
	 	 	 	 	180 North LaSalle Street, Suite 3700
	 	 	 	 	Chicago, Illinois 60601
	 	 	 	 	Telecopier Number: 312-606-3232
	 	 	 	 	 
	 	 	
To Assignor:
	 	Electric City Corp.
	 	 	 	 	Jeff Mistarz, CFO
	 	 	 	 	1280 Landmeier Road
	 	 	 	 	Elk Grove Village, Illinois 60007
	 	 	 	 	Telecopier Number: 847-437-4969
	 	 	 	 	 
	 	 	
With a copy to:
	 	Andrew H. Connor, Esq.
	 	 	 	 	Schwartz Cooper Greenberg & Krauss
	 	 	 	 	180 North LaSalle Street
	 	 	 	 	Suite 2700
	 	 	 	 	Chicago, Illinois 60601
	 	 	 	 	Telecopier Number: 312-782-8416

	17.
	 	The term “Assignor” and “Assignee” shall be construed to include the
successors and assigns thereof to the extent so permitted.

	18.
	 	This Assignment may not be amended, modified or changed nor shall any
waiver of any provision hereof be effective, except only by an instrument
in writing and signed by the party against whom enforcement of any waiver,
amendment, change, modification or discharge is sought.

5

 

     IN WITNESS WHEREOF, the said Assignor has caused this Assignment of Leases
and Rents to be signed and sealed as of the date first above written.

	 	 	 	 	 
	 	 	ASSIGNOR:
	 	 	 	 	 
	 	 	ELECTRIC CITY CORP, a Delaware corporation
	 	 	 	 	 
	 	 	
By:
	 	/s/ Jeffrey Mistarz
	 	 	 	 	

	 	 	
Name:
	 	Jeffrey Mistarz
	 	 	 	 	

	 	 	
Its:
	 	Chief Financial Officer
	 	 	 	 	

	 	 	 	 	 
	 	 	ASSIGNEE:
	 	 	 	 	 
	 	 	AMERICAN CHARTERED BANK
	 	 	 	 	 
	 	 	
By:
	 	/s/ William Provan
	 	 	 	 	

	 	 	
Name:
	 	William Provan
	 	 	 	 	

	 	 	
Its:
	 	Senior Vice President
	 	 	 	 	

6

 

STATE OF ILLINOIS    )

                                          ) SS.

COUNTY OF COOK      )

     I, the undersigned, a Notary Public, in and for the County and State
aforesaid, DO HEREBY CERTIFY, that                               , personally
known to me to be the                      of Electric City Corp., a Delaware
corporation, appeared before me this day in person and acknowledged that as
such duly authorized member of the company, he signed and delivered the said
instrument as his free and voluntary act, and as the free and voluntary act and
deed of said corporation, for the uses and purposes therein set forth.

     Given under my hand and official seal this            day of September, 2003.

	 	 	 
	 	 	 
	 	 	

	 	 	
Notary Public
	 	 	 
	 	 	
My commission expires:
	 	 	

 

 

STATE OF ILLINOIS    )

                                          ) SS.

COUNTY OF COOK      )

     I, the undersigned, a Notary Public, in and for the County and State
aforesaid, DO HEREBY CERTIFY, that                               , personally known to
me to be the                      of AMERICAN CHARTERED BANK, an Illinois state banking
corporation, a national banking association, appeared before me this day in
person and acknowledged that as such duly authorized member of the company, he
signed and delivered the said instrument as his free and voluntary act, and as
the free and voluntary act and deed of said company, for the uses and purposes
therein set forth.

     Given under may hand and official seal this day of September, 2003.

	 	 	 
	 	 	 
	 	 	

	 	 	
Notary Public
	 	 	 
	 	 	
My commission expires:
	 	 	

 

 

EXHIBIT A

LEGAL DESCRIPTION

LOT 9 IN GULLO INTERNATIONAL CONTEMPORARY PARK, BEING A RESUBDIVISION OF LOT
230 IN HIGGINS INDUSTRIAL PARK UNIT 165, BEING A SUBDIVISION IN THE SE 1/4 OF
SECTION 27, TOWNSHIP 41 NORTH, RANGE 11, EAST OF THE THIRD PRINCIPAL MERIDIAN
(EXCEPTING THEREFROM THE NORTH 220.00 FEET OF THE EAST 420.00 FEET) IN COOK
COUNTY, ILLINOIS.

 

 

EXHIBIT B

EXISTING LEASES AFFECTING THE PREMISES

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