WHEN RECORDED RETURN TO:
Ajay Raju, Esquire
Reed Smith LLP
2500 One Liberty Place
1650 Market Street
Philadelphia, PA 19103
Capmark Loan No. 99-1074777
DEED OF TRUST, NOTE AND OTHER LOAN
DOCUMENT
ASSUMPTION AND RELEASE AGREEMENT
THIS DEED OF TRUST, NOTE AND OTHER
LOAN DOCUMENT ASSUMPTION AND RELEASE AGREEMENT (this “
Agreemen t”) is entered into this ___ day of November,
2006, by and among SPI Willow Pass, L.P., a California limited
partnership, having its principal place of business at 650
California Street, Suite 1288, San Francisco, California 94108
(“ Original Obligor ”), Montgomery Realty
Group, LLC, a Delaware limited liability company, having its
principal place of business at 400 Oyster Point Blvd., Suite 415,
So. San Francisco, California 94080 (“ New Obligor
”), LaSalle Bank National Association, as Trustee for the
Registered Holders of J.P. Morgan Chase Commercial Mortgage
Securities Corp., Commercial Mortgage Pass-Through Certificates,
Series 2005-LDP5 (“ Lender ”), with a mailing
address at c/o Capmark Finance Inc., 200 Witmer Road, Horsham,
Pennsylvania 19044 (“ Capmark ”), Dennis J.
Wong, an individual, whose address is 650 California Street, Suite
1288, San Francisco, California 94108 (“ Original
Guarantor ” and together with the Original Obligor, the
“ Original Indemnitors ”), and Dinesh Maniar, an
individual, whose mailing address is 400 Oyster Point Blvd., Suite
415, So. San Francisco, California 94080 (the “ New
Guarantor ” and together with the New Obligor, the
“ New Indemnitors ”).
RECITALS
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The following recitals are a
material part of this Agreement:
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A. Eurohypo
AG, New York Branch, the New York branch of a German banking
corporation (the “ Original Lender ”) made a
$12,400,000.00 real estate loan (the “ Loan ”)
to Original Obligor, which Loan is evidenced by a certain
Promissory Note dated December 7, 2005 from Original Obligor in the
original principal amount of $12,400,000.00 (the “
Note ”) and a certain Loan Agreement between Original
Obligor and Original Lender dated as of December 7, 2005 (the
“ Loan Agreement ”). The Loan is secured by,
inter alia, a certain (i) Deed of Trust and Assignment or
Rents and Fixture Filing (the “ Deed of Trust ”)
dated December 7, 2005, from Original Obligor to Original Lender,
encumbering the property located at 1675 Willow Pass Road, Concord,
California 94520, as more particularly described in the Deed of
Trust (the “ Property ”), and recorded on
December 7, 2005 from Original Obligor to Original Lender and
recorded as Instrument No. 2005-470738 in the land records of
Contra Costa County, California (the “ Recorder’s
Office ”), and (ii) Assignment of Leases and Rents (the
“ Assignment of Leases ”) dated December 7, 2005
from Original Obligor to Original Lender and recorded as Instrument
No. 2005-470739 in the Recorder’s Office. In addition to the
Note, the Deed of Trust and the Assignment of Leases, the Loan is
evidenced by, and is subject to, the terms and conditions of: (i) a
certain Guaranty of Recourse Obligations dated December 7, 2005
from Original Guarantor in favor of Original Lender (the “
Original Guaranty ”); (ii) Environmental Indemnity
Agreement dated December 7, 2005 from Original Obligor in favor of
Original Lender (the “ Original Environmental
Indemnity ”); and (iii) all other documents and
instruments executed in connection with the Loan or pursuant to
this Agreement (such documents, together with the Note, the Loan
Agreement, the Deed of Trust, the Assignment of Leases, the
Original Guaranty and the Original Environmental
Indemnity, being hereinafter
referred to as the “ Loan Documents ”). The Loan
and all of the then-existing Loan Documents were subsequently
assigned to Lender.
B. The
Loan and the Loan Documents are subject to and a part of that
certain Pooling and Servicing Agreement dated December 1, 2005
regarding J.P. Morgan Chase Commercial Mortgage Securities Corp.,
Commercial Mortgage Pass-Through Certificates, Series
2005-LDP5.
C. Pursuant
to that certain Purchase and Sale Agreement dated as of August 14,
2006, and subsequently amended four (4) times, New Obligor is
purchasing from Original Obligor a two-tenant retail building,
commonly known as Concord Park & Shop and more fully described
in the Deed of Trust (defined above as, the “ Property
”). New Obligor desires to assume the Loan in connection with
such purchase, and Lender has agreed, pursuant to the terms hereof,
to consent to such purchase and assumption and to release Original
Obligor partially from liability under the Loan Documents, subject
to the assumption by New Obligor of all of the liabilities and
obligations under the Loan Documents and the satisfaction of the
other conditions set forth herein.
D. Unless
the context requires otherwise, references in this Agreement to the
Note, the Deed of Trust, the Assignment of Leases and the other
Loan Documents shall be deemed to refer to such documents as
amended by this Agreement, and as such documents may be further
amended, modified, extended or replaced from time to
time.
CONTRACTUAL
PROVISIONS
NOW, THEREFORE, in consideration of
the Recitals, which are incorporated herein, as if set forth below
in full, and the mutual promises contained herein and for other
good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as
follows:
(a) As
of the date of this Agreement, New Obligor hereby assumes and
agrees to pay and perform all of the past (to the extent
unsatisfied), present and future liabilities and payment and
performance obligations of Original Obligor under and as set forth
in the Loan Documents and agrees to keep and observe all of the
covenants, terms and conditions required to be kept, observed and
performed pursuant to the Note, the Deed of Trust and all of the
other Loan Documents, to the same effect as if New Obligor were the
original maker of, and a party to, the Loan Documents including,
but not limited to, payment of all sums presently outstanding under
the Note. The obligations of New Obligor under this Agreement shall
not be affected by any failure of Original Obligor to perform any
covenants running from Original Obligor to New Obligor or any
breach of Original Obligor’s representations and warranties
to New Obligor.
(b) Lender
and New Obligor confirm and acknowledge that the outstanding
principal balance under the Note as of the date hereof is
$12,400,000.00 and the balances of all reserve accounts required
under the Loan Documents are set forth on Schedule I ,
attached hereto and made a part hereof. New Obligor declares and
acknowledges, for the specific reliance and benefit of Lender, that
the outstanding balance of the Loan as agreed and acknowledged in
this Agreement is correct and that New Obligor has no right, claim,
defense or right of offset of any kind or in any amount to the
Note, the Deed of Trust or any of the other Loan Documents. The
foregoing acknowledgement of New Obligor includes, without
limitation, anything that would reduce the principal balance of the
Loan or any interest or any other sums owed to Lender in connection
therewith. New Obligor acknowledges and agrees that no amounts paid
by New Obligor or Original Obligor to Lender pursuant to or in
connection
with the execution and delivery of
this Agreement shall be applied to or set off against the principal
balance of the Note.
(c) New
Obligor hereby agrees to pay to Lender on the date hereof the sum
of $31,000.00 as consideration for allowing the transfer of the
Property to, and the assumption of the Loan by, New
Obligor.
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2.
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Consent to Transfer; Conditions
Precedent .
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(a) Subject
to satisfaction of the requirements set forth in this Agreement
including, without limitation, Section 2(b) below, Lender hereby
consents to the transfer of the Property to New Obligor and to this
assignment and assumption of the Loan and waives its right to
accelerate the Loan pursuant to any provision of any of the Loan
Documents which might otherwise provide such right to Lender solely
on account of such transfer and assignment and assumption.
Lender’s consent to the transfer of the Property to New
Obligor and the assumption of the Loan is not intended to be and
shall not be construed as a consent to any subsequent transfer or
assumption which requires Lender’s consent pursuant to the
terms of the Deed of Trust or any other Loan Document.
(b) As
a condition precedent to the granting and effectiveness of the
consent set forth in Section 2(a) above, New Obligor shall deliver,
or cause to be delivered, to Lender: (i) a Guaranty from New
Guarantor in favor of Lender (the “ New Guaranty
”); (ii) an Environmental Indemnity Agreement from New
Indemnitors in favor of Lender (the “ New Environmental
Indemnity ”); (iii) an Assignment of the Management
Agreement and Subordination of Management Fees by and among New
Obligor, Diversified Investment and Management Corporation and
Lender (the “ Assignment of Management Agreement
”); and (iv) such other documents and instruments as may be
reasonably required by Lender, all of which documents and
instruments shall be included in the definition of Loan
Documents.
(c) New
Obligor shall pay, or cause to be paid at closing: (i) all costs
and expenses incident to the preparation, execution and recordation
hereof and the consummation of the transaction contemplated hereby,
including, but not limited to, recording fees, filing fees,
surveyor fees, broker fees, transfer or mortgage taxes, rating
agency confirmation fees, application fees, all third party fees,
transfer fees, inspection fees, title insurance policy or
endorsement premiums or other charges of Title Company (as defined
herein) and the fees and expenses of legal counsel to Lender and
any applicable rating agency and (ii) an assumption fee to Lender
in the amount of $31,000.00 being one quarter of one percent
(0.25%) of the outstanding principal balance of the Note as of the
date of the transfer and assumption contemplated by this Agreement,
the next regularly scheduled monthly payment due in the amount of
$58,690.58 and the other fees and expenses outlined in the
beneficiary statement distributed to the parties by
Lender.
(d)
Replacement Policy . At Lender’s discretion, New
Obligor shall either (A) cause the title company (the “
Title Company ”) that issued the original
mortgagee’s title policy (the “ Policy ”)
to Original Lender to issue a “bring down” or similar
endorsement (the “ Endorsement ”) to the Policy,
which endorsement shall: (i) reflect the current ownership of the
Property; (ii) reflect the Lender as the owner of the Loan
Documents; (iii) be effective as of the date of delivery of this
Agreement; (iv) continue to insure the Deed of Trust as a first
lien on the Property; (v) show no new title exceptions unacceptable
to Lender; and (vi) otherwise be in form and content acceptable to
Lender, in its sole discretion; or (B) cause the Title Company to
issue a replacement loan policy covering the Property in
substantially the same form as the Policy (the “ New
Policy ”), which New Policy shall insure the lien of the
Deed of Trust, and shall: (i) be in form and content acceptable to
Lender, in its sole discretion; (ii) be effective as of the date of
delivery of this Agreement; (iii) reflect the current ownership of
the Property and the Loan; (iv) contain the same endorsements and
affirmative coverages
as the Policy; and (v) contain only
such exceptions as may be acceptable to Lender in its sole
discretion.
(e)
Loan Documents . New Obligor shall execute and deliver to
Lender (i) UCC-1 and/or UCC-3 financing statements, as may be
required by Lender, with New Obligor as debtor and Lender as
secured party, covering the property which is covered by the
financing statements, for filing as a personal property filing with
the Recorder’s Office and the Office of the Secretary of
State of the State of Delaware and as a fixture filing with the
Recorder’s Office, and (ii) a Consent and Subordination of
Property Management Agreement. New Obligor and Original Obligor
shall execute such other agreements, instruments, documents and
other writings as may be requested by Lender to maintain the
perfection of Lender’s security interest in the Property and
to consummate the transactions contemplated by or in the Loan
Documents and this Agreement.
(f)
Recordation . Upon execution hereof by Lender, New Obligor
and Original Obligor shall cause this Agreement to be recorded in
the Recorder’s Office, and New Obligor shall cause a
certified file stamped copy of the recorded original hereof and a
certified file stamped copy of the recorded Deed conveying the
Property to New Obligor to be delivered to Lender within thirty
(30) days from the execution date hereof.
(g)
Insurance . New Obligor shall deliver to Lender a copy of
Original Obligor’s insurance policies or insurance
certificate evidencing that the Property is insured in accordance
with the requirements of the Loan Documents and that the Lender is
named as an additional insured under such i