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HomeMy WebLinkAbout05-345 (2) Resolution No. 05-345 RESOLUTION AUTHORIZING EXECUTION OF A CITY OF ELGIN CENTER CITY SPECIAL BUSINESS LOAN AGREEMENT WITH SOTOMAYOR ENTERPRISES, LLC FOR BUILDING IMPROVEMENTS AT 169 E. CHICAGO STREET BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,and Dolonna Mecum,City Clerk,be and are hereby authorized and directed to execute a City of Elgin Center City Special Business Loan Agreement on behalf of the City of Elgin with Sotomayor Enterprises,LLC for building improvements at 169 E.Chicago Street, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: December 21, 2005 Adopted: December 21, 2005 Omnibus Vote: Yeas: 5 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk CITY OF ELGIN CENTER CITY SPECIAL BUSINESS LOAN AGREEMENT THIS AGREEMENT is hereby made and entered into this day of 2005, by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as the "City" ) , and Sotomayor Enterprises, LLC an Illinois limited liability company (hereinafter referred to as the "Owner" ) . " WHEREAS, the City has established a City of Elgin Center City Special Business Loan Program for building improvements in the Center City area in an effort to stimulate expansion, reinvestment and business retention, a copy of such Center City Special Business Loan Program for building improvements being attached hereto and made a part hereof as Exhibit A (hereinafter referred to as the "Program" ) ; and WHEREAS, the Program contemplates the City paying a portion of financing costs for eligible building improvements; and WHEREAS, Owner is the owner of the property commonly known as 169 E. Chicago Street, Elgin, Illinois, (hereinafter referred to as the "Subject Property" ) which is located in the Center City area as described in Program hereto; and WHEREAS, Owner has applied for and obtained approval for a loan agreement to finance the cost of the proposed building improvements on the subject property, a copy of the subject loan agreement being attached hereto and made a part hereof as Exhibit B (hereinafter referred to as the "Subject Loan Agreement" ) ; and WHEREAS, Owner has completed an application for participation in the subject Program which identifies the proposed improvements to the Subject Property, a copy of Owner' s application for participation in the Subject Program being attached hereto and made a part hereof as Exhibit C. NOW, THEREFORE, for and in consideration of the mutual promises, covenants and undertakings contained herein, and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto agree as follows : 1 . That the foregoing recitals are hereby incorporated into this agreement in their entirety. 2 . That Owner ' s application for participation in the Program is hereby approved. 3 . That as long as the Owner continues to make regularly scheduled loan payments on the Subject Loan Agreement and otherwise complies with the terms of this agreement City shall pay an interest subsidy on the Subject Loan Agreement consisting of monthly reimbursement payments to Owner in the amount equal to 90% of the first year ' s interest, 80% of the second year' s interest, 70% of the third year' s interest, 60% of the fourth year' s interest, and 50% of the fifth and final year' s interest, commencing January 11, 2006, upon receipt of verification of payment from lender and pursuant to the amortization and payment schedules attached herto and made a part hereof as exhibit D. 4 . In no event shall the interest rate exceed fifteen (15%) percent . In no event shall the total loan amount exceed 2 ' $200 , 000 . The Owner shall make all other principal and interest payments and all other payments on the Subject Loan Agreement . It is expressly agreed and understood that the City is not and shall not be deemed to be a party to the Subject Loan Agreement or an obligor or obligee thereunder. This agreement in general, and the City' s agreement to make interest payments hereunder in particular, shall not be construed, and shall not be relied upon by any party, including, but not limited to, the lender in the subject loan agreement or any successor or assign thereof, to require the repayment of any principal loan amounts, the execution of any mortgage loan documents, or to otherwise act as a guarantor on any loan agreements under any circumstances . Additionally, the provisions of this agreement shall not be construed so as to create any obligations as to City based on any theory of equitable estoppel . 5 . In the event the owner conveys any of its interest in Subject Property prior to November 11 , 2010 , owner shall refund all payments made by city pursuant to this agreement no later than 30 days after such conveyance . 6 . That the terms, requirements and conditions of the Program as set forth in Exhibit A hereto are hereby incorporated into this agreement in their entirety. The City' s obligations under this agreement including but not limited to the City' s obligations to make continued interest payments are subject to Owner' s ongoing compliance with all terms and requirements of the 3 program and this agreement . 7 . That upon completion of the improvements, and for a period of five (5) years thereafter, Owner shall properly maintain the improvements in their finished form, without alteration or change thereto. 8 . That nothing herein is intended to limit , restrict or prohibit the Owner from undertaking other work in or about the Subject Property which is unrelated to the improvements provided for in this agreement . 9 . That this agreement may not be assigned without the prior written consent of the City. 10 . Owner hereby agrees to hold harmless, defend and indemnify the City from and against any and all causes of action, suits, claims for damages and any and all other liability which may arise out of or in connection with the proposed improvements or other work at the Subject Property, or which may arise out of or in connection with Owner' s or Owners ' agents, employees' , contractors' and assigns' negligent performance of any of the terms of this agreement . In the event the provisions of this paragraph are invoked, counsel for City shall be of City' s choosing. The terms and provisions of this paragraph shall survive any termination and/or expiration of this agreement . 11 . That this agreement shall not be construed to create a partnership, joint venture or employment relationship between the parties hereto. 4 12 . Owner shall also pay when due all other obligations for the subject property including but not limited to payments on any other loans, real estate taxes and insurance . 13 . That this agreement shall be subject to and governed by the laws of the State of Illinois . Venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with this agreement shall be in the Circuit Court of Kane County, Illinois . 14 . That the terms of this agreement shall be severable . In the event that any of the terms or provisions of this agreement are deemed to be void or otherwise unenforceable for any reason, the remainder of this agreement shall remain in full force and effect . 15 . That notices regarding in this agreement shall be sent to the parties at the following addresses : To : City of Elgin 150 Dexter Court Elgin, IL 60120-5555 Attention: City Manager (with a copy to Corporation Counsel) To : Sotomayor Enterprises, LLC 100 E . Chicago Street Suite 605 Elgin, IL 60120 16 . This agreement constitutes the only agreement between the parties hereto . There are no other agreements, either oral or implied, in existence between the parties hereto . The terms and provisions of this agreement shall not be amended unless such amendments are in writing and, are properly executed by the 5 parties hereto. 17 . In the event of Owner' s breach of any of the terms of this agreement, Owner shall refund to City the full amount of any payments made by City to Owner or to any other entity on Owner' s behalf, including but not limited to, any lender, upon thirty (30) days written demand. City shall thereafter be entitled to any and all other rights and remedies as may be available to it by law. 18 . This agreement shall terminate on °'►, J , City may terminate this agreement for any or no reason upon fourteen (14) days written notice . In the event City terminates this agreement, City shall be under no further obligations pursuant to this agreement, and Owner shall be entitle to no further relief pursuant to this agreement . IN WITNESS WHEREOF, the parties hereto have entered into and executed this agreement the day and year first written above . CITY OF ELGIN Sotomayor Enterprises, LLC O ufemi Folarin Shirty Sa jadt So4omayO/‘ ity Manager .--) Attest : Attest : City Clerk 6 I; itI VZ '6H1/ UFAR CITY OF ELGIN Center City Special Business Loan Program PURPOSE STATEMENT: The City of Elgin and the Elgin financial institutions have established a special loan program for building improvements and business development in Center City Elgin in an effort to stimulate expansion, reinvestment and business retention. LOAN TERMS: 1 . Borrowers interest rate on their loan may not exceed 15%. 2 . The maximum loan is up to $200, 000 per building project . 3 . The term of the loan shall be based on a ten year amortization. 4 . The interest rate for the loan must be at or above the Prime rate of interest 5 . The loan proceeds shall be used only for the acquisition or lease of operating facilities, the purchase of equipment or fixtures, space built out or inventory. 6 . Interest payments by the City shall be at the following rates payable over a period of five years : 1st year - 90% of first year interest costs 2nd year - 80% of second year interest costs 3rd year - 70% of third year interest costs 4th year - 60% of fourth year interest costs 5th year - 50% of fifth year interest costs Notwithstanding anything to the contrary in this loan program the maximum amount of interest payments by the City for any loan shall be in the maximum amount of $92 , 365 . 29 . 7 . Separate bill from the lending institution shall be sent to the borrower for principal payments plus the applicable interest and to the City for the applicable interest rate . 8 . The financial obligations of this agreement shall be subject to available budgeted funds . 11-24-03 ELIGIBILITY REQUIREMENTS: To be eligible to apply for this special loan program, the applying business must satisfy both of the following criteria: 1 . Geographic : The business must be located in Center City Elgin, in the areas outlined in Appendix A. 2 . Type of Business : The business must be engaged in retailing, wholesaling, distribution, professional services, technology industry and other types of general commercial and retail lines of business consistent with those business uses identified as desirable in the adopted Riverfront/Center City Master Plan. GENERAL REQUIREMENTS: 1 . This program does not include financing for furniture, standard office equipment (i .e . personal computers and related equipment) or operating capital . 2 . Building improvements must be done by an independent contractor. Agreement with contractor must be supported by two different contractor bids . 3 . Any business which is approved and is to receive benefits under this Center City Special Business Loan Program must execute a written agreement with the City in a form as directed by the City which shall include the terms necessary to comply with the provisions of the program requirements and which shall include an agreement by such business to complete building improvements within a specified time period and to thereafter remain in business at the specified location for a period of not less that three years . If the business is required to vacate the Center City location due to action directed or supported by the City, the business must relocate within the Center City in order to retain the benefits of the Business Loan Program. 4 . Participants in the Center City Special Loan Program must provide annual financial statements to the City during participation in the program. QUALIFYING STANDARDS : 1 . Applicant business and owner must have an acceptable credit history with a record of timely loan payments . 2 . Business profits and cash flow must be sufficient to support loan payments in accordance with the customary loan (with the loan to value ratio not to exceed 75% to 80%) unless other collateral or financial strength is provided. APPLICATION PROCESS: 1 . Eligible businesses should complete the loan program application form and submit it to the bank, savings and loan official , or other pre-approved lending program. 2 . Once the loan is conditionally approved and structured by the lending institution, the lender shall complete a loan proposal for submission to the City of Elgin for final approval . 3 . Approval by the City of Elgin will be conditioned upon (1) available funds, (2) compatibility with Center City development plans, (3) adherence to the objectives and regulations of the program and (4) entry into a program agreement with the City in the form as directed by the City. 4 . The lending institution and business applicant may elect to proceed with a conventional market rate loan in the event that the City of Elgin denies the special loan program application. SUPPLEMENTAL LOAN AMOUNTS : If a lending institution approves subsequent increases in the original loan amount approved for a project under this program, application can be made for an interest subsidy on the increment . Provision of the subsidy is subject to approval by the City of Elgin. The City of Elgin is under no obligation to provide benefit beyond that previously approved. ADDITIONAL TERMS AND CONDITIONS: The City shall make monthly interest payments so long as the borrower continues to make the regular scheduled loan payments and otherwise complies with the terms of the agreement to be entered into between the City and the borrower. If the borrower fails to pay all required loan payments or otherwise fails to comply with the terms of the agreement to be entered into with the City, the City will cease paying. NO VESTED RIGHTS: The provisions of this program are intended to provide guidelines for considering applications for businesses that are seeking to participate in the Center City Special Business Loan Program. The City Council of the City of Elgin, in its sole and exclusive discretion, shall determine whether to provide any of the incentives contemplated in this program after duly considering the costs incurred by the City of Elgin for providing the incentives and after considering the relative gain derived by the public from those incentives . The City Council of the City of Elgin further expressly reserves the right and option to decide at any time whether or not to provide continued or additional funding for this program. The creation or existence of this program shall not be construed to create or provide any vested rights in any person or organization to obtain approval of a program application, a program agreement or any incentive, grant, rebates or funding thereunder. q�OFF�C 1 Agenda Item No. �` °°° 1�tik City of Elgin Ems. L u .. G ¢ , December 2, 2005 ECONOMIC GROWTH TO: Mayor and Members of the City Council FROM: Olufemi Folarin, City Manager Cherie Murphy, Economic Dev opment Coordinator SUBJECT: Application for Participation in the Center City Business Loan Program for Sotomayor Enterprises, LLC. PURPOSE The purpose of this memorandum is to provide information to the Mayor and City Council members in order to consider subsidizing interest on a loan for equipment, fixtures, and build out costs made by Sotomayor Enterprises, LLC., located at 169 E. Chicago Street, through American Chartered Bank. RECOMMENDATION It is recommended that the City Council approve participation in the Special Business Loan Program by Sotomayor Enterprises in the amount of$37,732.49 BACKGROUND As a partner with lending institutions in the Center City Business Loan Program, the City of Elgin has subsidized interest on loans made to Center City area businesses. At present, the City has been involved in thirteen such loans made for projects undertaken by Center City businesses. In order to participate in the program, the applicant must seek financing through and receive approval from a lending institution and file an application for the interest subsidy with the City. If approved, the City agrees to pay an interest subsidy on the loan agreement to the lender on a monthly basis. The terms of the current Center City Business Loan Program are as follows: 1. Borrowers' interest rates on their loans may not exceed 15%. 2. The maximum loan is up to $200,000 per building project. 3. The term of the loan shall be based on a ten year amortization. 4. The interest rate for the loan must be at or above the prime rate of interest. Center City Business Loan Program December 2, 2004 Page 2 5. The loan proceeds shall be used only for the acquisition or lease of operating facilities, the purchase of equipment or fixtures, space build-out, or inventory. 6. Interest payments by the City shall be at the following rates payable over a period of five years: 1st year—90% of the first year interest costs 2nd year— 89% of the second year interest costs 3rd year—70% of the third year interest costs 4th year—60% of the forth year interest costs 5th year— 50% of the fifth year interest costs Sotomayor Enterprises, LLC is using the proceeds from their $200,000 loan to finance build-out costs and building improvements for the building located at 169 E Chicago Street. The finished product will be home to a law office on the second floor and a Latin/Caribbean restaurant on the first floor. All information required by the loan program has been provided (attachment).The initial payment schedule was calculated at a 6.5% interest rate. Based upon information provided by American Chartered Bank, the interest subsidy to be provided by the City of Elgin to the bank on behalf of Sotomayor Enterprises, LLC is as follows: ANNUAL INTEREST CITY % of INTEREST CITY YEAR PAYMENT PAYMENT PAYMENT 1 $12,567.23 90% $11,310.51 2 $11,583.49 80% $ 9,266.79 3 $10,564.26 70% $ 7,394.98 4 $ 9,415.98 60% $ 5,649.59 5 $ 8,221.23 50% $ 4,110.62 $52,352.19 $37,732.49 As indicated above, the interest rate subsidy payable by the City of Elgin for the five year period is $37,732.49. It should be noted that the City will make the monthly interest payments as long as the borrower continues to make timely, regularly scheduled loan payments and otherwise complies with the terms of the agreement to be entered in between the City and the borrower. If the borrower fails to pay all required loan payments or otherwise fails to comply with the terms of the proposed agreement, the City will cease paying. Center City Business Loan Program December 2, 2004 Page 3 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED American Chartered Bank ,/1FINANCIAL IMPACT 1, ... There are sufficient funds available in the Riverboat Fund, account number 275-0000-791.80-27, Economic Development Incentives, to enter into this $37,732.49 agreement with Sotomayor Enterprises, LLC. In 2005, $355,230 was budgeted for this account. To date $227,357.40 has been expended or encumbered from this account. Following an approval of this expenditure, $90,140.11 remains available. LEGAL IMPACT \ANW None ALTERNATIVES 1. The Council could choose to approve the application by Sotomayor Enterprises, LLC to participate in the Special Business Loan Program for building improvements in the amount of$37,732.49. 2. The Council could choose to deny the application for participation in the Special Business Loan Program for building improvements and equipment by Sotomayor Enterprises, LLC. Respectfully submitted for Council consideration. CLM Attachments Ekt-E B WHEN RECORDED MAIL TO: American Chartered Bank 955 National Parkway Suite 60 Schaumburg, IL 60173 FOR RECORDER'S USE ONLY This Mortgage prepared by: American Chartered Bank 1199 E. Higgins Road Schaumburg, IL 60173 MORTGAGE MAXIMUM LIEN. At no time shall the principal amount of Indebtedness secured by the Mortgage, not including sums advanced to protect the security of the Mortgage, exceed $200,000.00. THIS MORTGAGE dated October 11, 2005, is made and executed between Sotomayor Enterprises, LLC (referred to below as "Grantor") and American Chartered Bank, whose address is 1199 E. Higgins Rd., Schaumburg, IL 60173 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor mortgages, warrants. and conveys to Lender al! of Grantor's right, title, and interest in and to the following described real property, together with all existirc c' subsequently erected or affixed buildings, improvements and fixtures; all easements, rights of way. arc appurtenances; all water, water rights, watercourses and ditch rights (including stock in utilities with dit:- irrigation rights); and all other rights, royalties, and profits relating to the real property, including wit`,o..: limitation all minerals, oil, gas, geothermal and similar matters, (the "Real Property") located in Kane County, State of Illinois: THE EASTERLY 21.5 FEET OF THE WESTERLY 22 FEET OF LOT 2 (EXCEPT THE SOUTH 15 FEET) IN BLOCK 15 IN THE ORIGINAL TOWN OF ELGIN ON THE EAST SIDE OF THE FOX RIVER, IN THE CITY OF ELGIN, KANE COUNTY, ILLINOIS. The Real Property or its address is commonly known as 165 East Chicago Avenue, Elgin, IL 60120-5523. The Real Property tax identification number is 06-14-434-007. CROSS-COLLATERALIZATION. In addition to the Note, this Mortgage secures all obligations, debts arc liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, as well as all claims by Lender against Grantor or any one or more of them, whether now existing or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated whether Grantor -nay be liable individually or jointly with others, whether obligated as guarantor, surety, accommodation party or otherwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations, and whether the obligation to repaysuch amounts may y be or hereafter may become otherwise MORTGAGE Loan No: 11672601 (Continued) Page 2 .,nenforceabie. Grantor presently assigns to Lender all of Grantor's right, title, and interest in and to all present and future leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Grantor shall pay to Lender at' amounts secured by this Mortgage as they become due and shall strictly perform all of Grantor's obligations Jnoer this Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the following provisions: Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; (2) use, operate or manage the Property; and (3) collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the perioc of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage, zreat,mer.t, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or from the Property; and (b) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Mortgage. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws; and (2) agrees to indemnify and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Mortgage, including the obligation to indemnify, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition of any interest in the Property, whether by foreclosure or otherwise, Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any MORTGAGE Loan No: 11672601 (Continued) Page 3 timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lencer s prior written consent. Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real P-oce•ty without Lender's prior written consent. As a condition to the removal of any Improvements, Lencer ~a'. require Grantor to make arrangements satisfactory to Lender to replace such Improvements ',••r:- Improvements of at least equal value. Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real P oce•-: at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes Grantor's compliance with the terms and conditions of this Mortgage. Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances. and regulations, now or 'hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, the Americans With Disabilities Act. Grantor mma‘, contest in good faith any such law, ordinance, or regulation and withhold compliance dunr:c proceeding, including appropriate appeals, so long as Grantor has notified Lender in writing prior to co:rc so and so long as, in Lender's sole opinion, Lender's interests in the Property are not Jeopardized. Lencer may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Le-ce•. :z protect Lender's interest. Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shai: do ai: other acts, in addition to those acts set forth above in this section, which from the character and use o' :-e Property are reasonably necessary to protect and preserve the Property. DUE ON SALE - CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payao+e all sums secured by this Mortgage upon the sale or transfer, without Lender's prior written consent, of ail or any part of the Real Property, or any interest in the Real Property. A "sale or transfer" means the conveyance of Real Property or any right, title or interest in the Real Property; whether legal, beneficiai or equi:ao'e: whether voluntary or involuntary; whether by outright sale, deed, installment sale contract. land cr.)-:-act. contract for deed, leasehold interest with a term greater than three (3) years, lease-option contract, or by sale. assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real Property, or oy any other method of conveyance of an interest in the Real Property. If any Grantor is a corooratior. partnership or limited liability company, transfer also includes any change in ownership of more :-.ar twenty-five percent (25%) of the voting stock, partnership interests or limited liability company interests. as the case may be, of such Grantor. However, this option shall not be exercised by Lender if such exercise .s prohibited by federal law or by Illinois law. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Mortgage: Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes. special taxes, assessments, water charges and sewer service charges levied against or on account of :ne Property, and shall pay when due all claims for work done on or for services rendered or material furnishes to the Property. Grantor shall maintain the Property free of any liens having priority over or equal to tr,e interest of Lender under this Mortgage, except for those liens specifically agreed to in writing by Lencer. and except for the lien of taxes and assessments not due as further specified in the Right to Contest paragraph. • Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with; a good faith dispute over the obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor shall within fifteen (1 5) days after the lien arises or, if a lien is filed, within fifteen (15) days after Grantor has notice of the filing, secure the discharce of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs anc attorneys' fees, or other charges that could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any adverse judgment before MORTGAGE Loan No: 11672601 (Continued) Page 4 enforcement against the Property. Grantor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property. Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials and the cost exceeds $10,000.00. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage: Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Lender being named as additional insureds in such liability insurance policies. Additionally, Grantor shall maintain such other insurance, including but not limited to hazard, business interruption and boiler insurance as Lender may require: Policies shall be written by such insurance companies and in such form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage from each insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum of ten (10) days' prior written notice to Lender and not containing any disclaimer of the insurer's liability for failure to give such notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. Shouid the Real Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property if the estimated cost of repair or replacement exceeds $10,000.00. Lender may make proof of loss if Grantor fails to do so within fifteen (1 5) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Mortgage. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after in full of payment the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear. Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish to Lender a report on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insure. 3( ? the amount of the policy; (4) the property insured, the then current replacement value or such property, and the manner of determining that value; and (5) the expiration date of the policy. Grantor shall, upon request of Lender, have an independent appraiser satisfactory to Lender • MORTGAGE Loan No: 11672601 (Continued) Page 5 determine the cash value replacement cost of the Property. LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lenoer s interest in the Property or if Grantor fails to comply with any provision of this Mortgage or any Relates Documents, including but not limited to Grantor's failure to discharge or pay when due any amounts Grantor .s required to discharge or pay under this Mortgage or any Related Documents, Lender or, Grantor's behalf Tav (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the Property. Ail s.:c- expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged unde• t-e Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses '.\•i become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B; be aodec to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note: or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Mortgage a:sc will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to w-,c- Lender may be entitled upon Default. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part o' this Mortgage: Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Prooerrry in =ee simple, free and clear of all liens and encumbrances other than those set forth in me Real Proper:. description or in any title insurance policy, title report, or final title opinion issued in favor of, and assured by, Lender in connection with this Mortgage, and (b) Grantor has the full right, power, and authority to execute and deliver this Mortgage to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend .the title to the Property against the lawful claims of all persons. In the event any action o- proceeding is commenced that questions Grantor's title or the interest of Lender under this Mortgace.• Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in s .c- proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in t-e proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property compies with all existing applicable laws, ordinances, and regulations of governmental authorities. Survival of Representations and Warranties. All representations, warranties, and agreements made by Grantor in this Mortgage shall survive the execution and deliuery of this Mortgage, shall be continuinc nature, and shall remain in full force and effect until such time as Grantor's Indebtedness shall be paid 'r full. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Mortgage: Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in v\'r:tinc, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation. Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election reau:re that all or any portion of the net proceeds of the award be applied to the Indebtedness or the reoair or restoration of the Property. The net proceeds of the award shall mean the award after payment of oil reasonable costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation. MORTGAGE Loan No: 11672601 (Continued) Page 6 IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions •elating to governmental taxes, fees and charges are a part of this Mortgage: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Mortgage or upon all or any part of the Indebtedness secured by this Mortgage; (2) a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note: and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Grantor. Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Mortgage. this event shall have the same effect as an Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor either (1) pays the tax before it becomes delinquent, or (2) contests the tax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this Mortgage: Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property. In addition to recording this Mortgage in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest. Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law. Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security interest granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Mortgage. FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relating to further assurances and attorney-in-fact are a part of this Mortgage: Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate; complete, perfect, continue, or preserve (1) Grantor's obligations under the Note, this Mortgage, and the Related Documents, and (2) the liens and security interests created by this Mortgage as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse MORTGAGE Loan No: 11672601 (Continued) Page 7 Lender for all costs and expenses incurred in connection with the matters referred to in this pa agrapn. Attorney-in-Fact. If Grantor fails to do any of the things referred to in the preceding paragraph. Lence• '-a, do so for and in the name of Grantor and at Grantor's expense. For such purposes, Grantor he-coy irrevocably appoints Lender as Grantor's attorney-in-fact for the purpose of making, executing, deliver'nc filing, recording, and doing all other things as may be necessary or desirable, in Lender's soie o01n1o7 t_ accomplish the matters referred to in the preceding paragraph. • FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs ail -`-e obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a s�itaoie satisfaction of this Mortgage and suitable statements of termination of any financing statement or- f:le evidencing Lender's security interest in the Rents and the Personal Property. Grantor will pay, if permitted b,' applicable law, any reasonable termination fee as determined by Lender from time to time. REINSTATEMENT OF SECURITY INTEREST. If payment is made by Grantor, whether voluntarily or othe-w!se. or by guarantor or by any third party, on the Indebtedness and thereafter Lender is forced to remit the amo..--t of that payment (A) to Grantor's trustee in bankruptcy or to any similar oerson under any federai or state bankruptcy law or law for the relief of debtors, (B) by reason of any judgment, decree or order of acy court o- administrative body having jurisdiction over Lender or any of Lender's property, or IC) by reason of any settlement or compromise of any claim made by Lender with any claimant (including without limitation. Grantor), the Indebtedness shall be considered unpaid for the purpose of enforcement of this Mortgage and --;s Mortgage shall continue to be effective or shall be reinstated, as the case may be, notwithstandinc any cancellation of this Mortgage or of any note or other instrument or agreement evidencing the Indebtedness arc the Property will continue to secure the amount repaid or recovered to the same extent as if that amount neve- had been originally received by Lender, and Grantor shall be bound by any judgment, decree, order, settlement or compromise relating to the Indebtedness or to this Mortgage. EVENTS OF DEFAULT. Each of the following, at Lender's option, shall constitute an Event of Default once• this Mortgage: Payment Default. Grantor fails to make any payment when.due under the Indebtedness. Default on Other Payments. Failure of Grantor within the time required by this Mortgage to make a-'. payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discna'ce of any lien. Environmental Default. Failure of any party to comply with or perform when due any term, obiicatio-. covenant or condition contained in any environmental agreement executed in connection with the Property. Other Defaults. Grantor fails to comply with or to perform any other term, obligation, covenant o- condition contained in this Mortgage or in any of the Related Documents or to comply with or to perform. any term, obligation, covenant or condition contained in any other agreement between Lender and Grantor. Default in Favor of Third Parties. Should Grantor default under any loan, extension of credit, secur:t ' agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Grantor's property or Grantor's ability to repay the Indebtedness or Grantor's ability to perform Grantor's obligations under this Mortgage or any related document. False Statements. Any warranty, representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Mortgage or the Related Documents is false or misleading in any matey:a: respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Defective Collateralization. This Mortgage or any of the Related Documents ceases to be in full force a-:c effect (including failure of any collateral document to create a valid and perfected security interest or lien at any time and for any reason. Death or Insolvency. The dissolution of Grantor's (regardless of whether election to continue is made member withdraws from the limited liability company, or any other termination of Grantor's existence as a going business or the death of any member, the insolvency of Grantor, the appointment of a receiver =cr MORTGAGE Loan No: 11672601 (Continued) Page 8 any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any governmental agency against any property securing the Indebtedness. This includes a garnishment of any of Grantor's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or later. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. Adverse Change. A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. Insecurity. Lender in good faith believes itself insecure. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and at any time thereafter, Lender, at Lender's option, may exercise any one or more of the following rights and remedies, in aedition to any other rights or remedies provided by law: Accelerate Indebtedness. Lender shall have the right at its option without notice to Grantor to declare the entire Indebtedness immediately due and payable, including any prepayment penalty which Grantor would be required to pay. UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents. Lender shall have the right, without notice to Grantor, to take possession of the Property and collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness. In furtherance of this right, Lender may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor's attorney-in-fact to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person, by agent, or through a receiver. Mortgagee in Possession. Lender shall have the right to be placed as mortgagee in possession or to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The mortgagee in possession or receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or any part of MORTGAGE Loan No: 11672601 (Continued) Page 9 the Property. Deficiency Judgment. If permitted by applicable law, Lender may obtain a judgment for any deficiency remaining in the Indebtedness due to Lender after application of all amounts received from the exercise c= the rights provided in this section. Other Remedies. Lender shall have all other rights and remedies provided in this Mortgage or the No:e available at law or in equity. Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all rig-: r� have the Property marshalled. In exercising its rights and remedies, Lender shall be free to sell al! or ary part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to oic at any public sale on all or any portion of the Property. Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of :re Personal Property or of the time after which any private sale or other intended disposition of the Persor.a. Property is to be made. Reasonable notice shall mean notice given at least ten (10) days before the time o= the sale or disposition. Any sale of the Personal Property may be made in conjunction with any sale o' :he Real Property. Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit o= any o:-e- remedy, and an election to make expenditures or to take action to perform an obligation of Grantor unce- this Mortgage, after Grantor's failure to perform, shall not affect Lender's right to declare a default arc exercise its remedies. Nothing under this Mortgage or otherwise shall be construed so as to limit or restrict the rights and remedies available to Lender following an Event of Default, or in any way to limit or restrict • the rights and ability of Lender to proceed directly against Grantor and or against any other co-maker. guarantor, surety or endorser and/or to proceed against any other collateral directly or indirectly secu• rc the Indebtedness. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of :ris Mortgage, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys fees at trial and upon any appeal. Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any : --e for the protection of its interest or the enforcement of its rights shall become a part of the Incebtedness payable on demand and shall bear interest at the Note rate from the date of the expenditure untii recaic. Expenses covered by this paragraph include, without limitation, however subject to any limits ur.cer applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit. including attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services, the cost of searching re.cords, obtaining title reports (including foreclosure reports), surveyors' reports, and appraise! fees and title insurance, to the extent permitted by applicable law. Grantor also will pay any court costs, .r addition to all other sums provided by law. NOTICES. Any notice required to be given under this Mortgage, including without limitation any notice c- default and any notice of sale shall be given in writing, and shall be effective when actually delivered, wner actually received by telefacsimile (unless otherwise required by law), when deposited with a na:ionaw,' recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certifies or registered mail postage prepaid, directed to the addresses shown near the beginning of this Mortgage. Ail copies of notices of foreclosure from the holder of any lien which has priority over this Mortgage shall be sent to Lender's address, as shown near the beginning of this Mortgage. Any party may change its address for notices. under this.Mortgage by giving formal written notice to the other parties, specifying that the purpose c' the notice is to change the party's address. For notice purposes, Grantor agrees to keep Lender informed at ai times of Grantor's current address. Unless otherwise provided or required by law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. MORTGAGE Loan No: 11672601 (Continued) Page 10 MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: Amendments. This Mortgage, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Mortgage. No alteration of or amendment to this Mortgage shall be effective unless given in writing and signed by the party or parties sought to be cnarged or bound by the alteration or amendment. Annual Reports. If the Property is used for purposes other than Grantor's residence, Grantor shall furnish to Lender, upon request, a certified statement of net operating income received from the Property during Grantor's previous fiscal year in such form and detail as Lender shall require. "Net operating income" shall mean all cash receipts from the Property less all cash expenditures made in connection with the operation of the Property. Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to interpret or define the provisions of this Mortgage. Governing Law. This Mortgage will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Illinois without regard to its conflicts of law provisions. This Mortgage has been accepted by Lender in the State of Illinois. Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of Cook County, State of Illinois. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Mortgage unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Mortgage shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Mortgage. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Mortgage, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. Severability. If a court of competent jurisdiction finds any provision of this Mortgage to be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending provision cannot be so modified, it shall be considered deleted from this Mortgage. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Mortgage shall not affect the legality, validity or enforceability of any other provision of this Mortgage. Merger. There shall be no merger of the interest or estate created by this Mortgage with any other interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. Successors and Assigns. Subject to any limitations stated in this Mortgage on transfer of Grantor's interest, this Mortgage shall be binding upon and inure to the benefit of the parties, their successors and assigns. If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Mortgage and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Mortgage or liability under the Indebtedness. Time is of the Essence. Time is of the essence in the performance of this Mortgage. Waive Jury. All parties to this Mortgage hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any party against any other party. MORTGAGE Loan No: 11672601 (Continued) Page 11 Waiver of Homestead Exemption. Grantor hereby releases and waives all rights and benefits o= homestead exemption laws of the State of Illinois as to all Indebtedness secured by this Mortgage. Waiver of Right of Redemption. NOTWITHSTANDING ANY OF THE PROVISIONS TO THE CONTRA2N. CONTAINED IN THIS MORTGAGE, GRANTOR HEREBY WAIVES, TO THE EXTENT PERMITTED UNCE=. 735 ILCS 5/15-1601(b) OR ANY SIMILAR LAW EXISTING AFTER THE DATE OF THIS MORTGAGE. ANY AND ALL RIGHTS OF REDEMPTION ON GRANTOR'S BEHALF AND ON BEHALF OF ANY OTHER PERSONS PERMITTED TO REDEEM THE PROPERTY. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used it :-'s ' Mortgage. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts i- lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise definec ,r this Mortgage shall have the meanings attributed to such terms in the Uniform Commercial Code: Borrower. The word "Borrower" means Sotomayor Enterprises, LLC and includes all co-signers a co-makers signing the Note. Default. The word "Default" means the Default set forth in this Mortgage in the section titled "Defauu Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local stat.::es. regulations and ordinances relating to the protection of human health or the environment, including wit •o : limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorzat cn Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et sec.. p- other applicable state or federal laws, rules, or regulations adopted pursuant thereto. Event of Default. The words "Event of Default" mean any of the events of default se: forth it s Mortgage in the events of default section of this Mortgage. Grantor. The word "Grantor" means Sotomayor Enterprises, LLC. Guarantor. The word "Guarantor" means any guarantor, surety, or accommodation par:y of any or a c- the Indebtedness. Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender, including without limi:a: on a guaranty of all or part of the Note. Hazardous Substances. The words "Hazardous Substances" mean materials that, because of :-eir quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of. generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are .:sec in their very broadest sense and include without limitation any and all hazardous or toxic substances. materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Improvements. The word "Improvements" means all existing and future improvements, buiidinos. structures, mobile homes affixed on the Real Property, facilities, additions, replacements and otner construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts. costs arc expenses payable under the Note or Related Documents, together with all renewals of, extensions o= modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this Mortgage, together with interest on such amounts as provide: r this Mortgage. Specifically, without limitation, Indebtedness includes all amounts that may be indirec Ilv secured by the Cross-Collateralization provision of this Mortgage. MORTGAGE Loan No: 11672601 (Continued) Page 12 Lender. Tne word "Lender" means American Chartered Bank, its successors and assigns. Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender. Note. The word "Note" means the promissory note dated October 11, 2005, in the original principal amount of S200,000.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. The interest rate on the Note is 6.500%. Payments on the Note are to be made in accordance with the following payment schedule: one principal and interest payment of $4,483.33 on January 11, 2006, with interest calculated on the unpaid principal balances at an interest rate of 6.500% per annum; 58 monthly consecutive principal and interest payments of $2,280.55 each, beginning February 11, 2006, with interest calculated on the unpaid principal balances at an interest rate of 6.500% per annum; and one principal and interest payment of $1 18,567.04 on December 11, 2010, with interest calculated on the unpaid principal balances at an interest rate of 6.500% per annum. This estimated final payment is based on the assumption that all payments will be made exactly as scheduled; the actual final payment will be for all principal and accrued interest not yet paid, together with any other unpaid amounts under this Mortgage. Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word "Property" means collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the real property, interests and rights, as further described in this Mortgage. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties. ser.urity AnrPP.mentc mnrtnanne racarlo ,.f tr,', securty deeds, collateral mortgages, and all other i or hereafter existing, executed in connection with th Rents. The word "Rents" means all present and fu MSUMMIT and other benefits derived from the Property. ACADEMY www.summitelgin.org 847-468-0490 GRANTOR ACKNOWLEDGES HAVING READ ALL THE AGREES TO ITS TERMS. GRANTOR: SOTOMAYOR ENTERPRISES, LLC B y_ µ t '-•r Shirley Sadjali-Sotoyitayor, Mafaager of Sotomayor E LLC 1� \, By: rC{C Wilde „;„,.Soto 'ayor, Maj ages o tomayor Enterprises, LLC MORTGAGE Loan No: 11672601 (Continued) Page 13 LIMITED LIABILITY COMPANY ACKNOWLEDGMENT STATE OF SS COUNTY OF On this day of before me. the undersigned No:a-y Public, personally appeared Shirley Sadjadi-Sotomayor, Manager; Wilde R. Sotomayor, Manager of Sotomayor Enterprises, LLC, and known to me to be members or designated agents of the limited liability :-a: executed the Mortgage and acknowledged the Mortgage to be the free and voluntary ac: and ceed o :- e limited liability company, by authority of statute, its articles of organization or its operating agreement, for the uses and purposes therein mentioned, and on oath stated that they are authorized to execute this Nler:cace and in fact executed the Mortgage on behalf of the limited liability company. By Residing at Notary Public in and for the State of My commission expires WHEN RECORDED MAIL TO: American Chartered Bank 955 National Parkway Suite 60 Schaumburg, IL 60173 FOR RECORDER'S USE ONLY This ASSIGNMENT OF RENTS prepared by: American Chartered Bank 1199 E. Higgins Road Schaumburg, IL 60173 ASSIGNMENT OF RENTS THIS ASSIGNMENT OF RENTS dated October 11, 2005, is made and executed between Sotomayor Enterprises, LLC (referred to below as "Grantor") and American Chartered Bank, whose address is 1199 E. Higgins Rd., Schaumburg, IL 60173 (referred to below as "Lender'). ASSIGNMENT. For valuable consideration, Grantor hereby assigns, grants a continuing security interest in, and conveys to Lender all of Grantor's right, title, and interest in and to the Rents from the following described Property located in Kane County, State of Illinois: THE EASTERLY 21.5 FEET OF THE WESTERLY 22 FEET OF LOT 2 (EXCEPT THE SOUTH 15 FEET) IN BLOCK 15 IN THE ORIGINAL TOWN OF ELGIN ON THE EAST SIDE OF THE FOX RIVER, IN THE CITY OF ELGIN, KANE COUNTY, ILLINOIS. The Property or its address is commonly known as 165 East Chicago Avenue, Elgin, IL 60120-5523. The Property tax identification number is 06-14-434-007. CROSS-COLLATERALIZATION. In addition to the Note, this Assignment secures all obligations, debts arc liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, as well as all claims by Lender against Grantor or any one or more of them, whether now existing or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated whether Grantor -rav be liable individually or jointly with others, whether obligated as guarantor, surety, accommodation party o- otherwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute c* limitations, and whether the obligation to repay such amounts may be or hereafter may become otherwise unenforceable. THIS ASSIGNMENT IS GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND 121 PERFORMANCE OF ANY AND ALL OBLIGATIONS OF GRANTOR UNDER THE NOTE, THIS ASSIGNMENT, AND THE RELATED DOCUMENTS. THIS ASSIGNMENT IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: ASSIGNMENT OF RENTS Loan No: 11672601 (Continued) Page 2 PAYMENT AND PERFORMANCE. Except as otherwise provided in this Assignment or any Related Documents, Grantor shall pay to Lender all amounts secured by this Assignment as they become due, and shall strictly perform all of Grantor's obligations under this Assignment. Unless and until Lender exercises its right to collect the Rents as provided below and so long as there is no default under this Assignment, Grantor may remain in possession and control of and operate and manage the Property and collect the Rents, provided that the granting of the rignt to collect the Rents shall not constitute Lender's consent to the use of cash collateral in a oankruotcy proceeding. GRANTOR'S REPRESENTATIONS AND WARRANTIES. Grantor warrants that: Ownership. Grantor is entitled to receive the Rents free and clear of all rights, loans, liens, encumbrances, and claims except as disclosed to and accepted by Lender in writing. Right to Assign. Grantor has the full right, power and authority to enter into this Assignment and to assign and convey the Rents to Lender. No Prior Assignment. Grantor has not previously assigned or conveyed the Rents to any other person by any rs--..men' now in force. No Further Transfer. Grantor will not sell, assign, encumber, or otherwise dispose of any of Grantor's rights in the Rents except as provided in this Assignment. LENDER'S RIGHT TO RECEIVE AND COLLECT RENTS. Lender shall have the right at any time, and even though. no default shall have occurred under this Assignment, to collect and receive the Rents. For this purpose. Lender is hereby given and granted the following rights, powers and authority: Notice to Tenants. Lender may send notices to any and all tenants of the Property advising them of this Assignment and directing all Rents to be paid directly to Lender or Lender's agent. Enter the Property. Lender may enter upon and take possession of the Property; demand, collect and receive from the tenants or from any other persons liable therefor, all of the Rents; institute and carry on all legal proceedings necessary for the protection of the Property, including such proceedings as may be necessary to recover possession of the Property; collect the Rents and remove any tenant or tenants or other persons from the Property. Maintain the Property. Lender may enter upon the Property to maintain the Property and keep the same in repair; to pay the costs thereof and of all services of all employees, including their equipment, and of all continuing costs and expenses of maintaining the Property in proper repair and condition, and also to pay all taxes, assessments and water utilities, and the premiums on fire and other insurance effected by Lender on the Property. Compliance with Laws. Lender may do any and all things to execute and comply with the laws of the State of Illinois and also all other laws, rules, orders, ordinances and requirements of all other governmental agencies affecting the Property. Lease the Property. Lender may rent or lease the whole or any part of the Property for such term or terms and on such conditions as Lender may deem appropriate. Employ Agents. Lender may engage such agent or agents as Lender may deem appropriate, either in Lender's name or in Grantor's name, to rent and manage the Property, including the collection and application of Rents. . Other Acts. Lender may do all such other things and acts with respect to the Property as Lender may deem appropriate and may act exclusively and solely in the place and stead of Grantor and to have all of the powers of Grantor for the purposes stated above. No Requirement to Act. Lender shall not be required to do any of the foregoing acts or things, and the fact that Lender shall have performed one or more of the foregoing acts or things shall not require Lender to do any other specific act or thing. ASSIGNMENT OF RENTS Loan No: 11672601 (Continued) Page 3 APPLICATION OF RENTS. All costs and expenses incurred by Lender in connection with the Property shah be for Grantor's account and Lender may pay such costs and expenses from the Rents. Lender, in its sole discretion, shall determine the application of any and all Rents received by it; however, any such Rents received by Lender which are not applied to such costs and expenses shall be applied to the Indebtedness. A ' expenditures made by Lender under this Assignment and not reimbursed from the Rents shall become a cart c= the Indebtedness secured by this Assignment, and shall be payable on demand, with interest at the Note rare from date of expenditure until paid. FULL PERFORMANCE. If Grantor pays all of the Indebtedness when due and otherwise performs al' the obligations imposed upon Grantor under this Assignment, the Note, and the Related Documents, Lender snail execute and deliver to Grantor a suitable satisfaction of this Assignment and suitable statements of terminat•on of any financing statement on file evidencing Lender's security interest in the Rents and the Property. Ary termination fee required by law shall be paid by Grantor, if permitted by applicable law. ,REINSTATEMENT OF SECURITY INTEREST. If payment is made by Grantor, whether voluntarily or otherwise. or by guarantor or by any third party, on the Indebtedness and thereafter Lender is forced to remit the ame.:rt of that payment (A) to Grantor's trustee in bankruptcy or to any similar person under any federal or state bankruptcy law or law for the relief of debtors, (B) by reason of any judgment, decree or order of any court. o• administrative body having jurisdiction over Lender or any of Lender's property, or (C) by reason of any settlement or compromise of any claim made by Lender with any claimant (including witnout limitar,o-: Grantor), the Indebtedness shall be considered unpaid for the purpose of enforcement of this Assignment and this Assignment shall continue to be effective or shall be reinstated, as the case may be, notwithstandinc any cancellation of this Assignment or of any note or other instrument or agreement evidencing the Indebtedness and the Property will continue to secure the amount repaid or recovered to the same extent as if that amount never had been originally received by Lender, and Grantor shall be bound by any judgment, decree, orcer. settlement or compromise relating to the Indebtedness or to this Assignment. LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if Grantor fails to comply with any provision of this Assignment or any Re:atec Documents, including but not limited to Grantor's failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Assignment or any Related Documents, Lender on Grantor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate. including but not limited discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Rents or the Property and paying all costs for insuring, maintaining and preserving the PropeTv. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charoec under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will IA) be payable on demand: be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Assignment also will secure payment of these amounts. Such right shall be in addition to all other rights anc remedies to which Lender may be entitled upon Default. DEFAULT. Each of the following, at Lender's option, shall constitute an Event of Default under :his Assignment: Payment Default. Grantor fails to make any payment when due under the Indebtedness. Other Defaults. Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Assignment or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Grantor. Default on Other Payments. Failure of Grantor within the time required by this Assignment to maize an',' payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discnarce of any lien. Default in Favor, of Third Parties. Grantor defaults under any loan, extension of credit, security agreemen:. ASSIGNMENT OF RENTS Loan No: 11672601 (Continued) Page 4 purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Grantor's property or Grantor's ability to perform Grantor's obligations under this Assignment or any of the Related Documents. Environmental Default, Failure of any party to comply with or perform when due any term, obligation, covenant or condition contained in any environmental agreement executed in connection with the Property. False Statements. Any warranty, representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Assignment or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Defective Collateralization. This Assignment or any of the Related Documents ceases to be in full force and effect iincluding failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Death or Insolvency. The dissolution of Grantor's (regardless of whether election to continue is made), any member withdraws from the limited liability company, or any other termination of Grantor's existence as a going business or the death of any member, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any governmental agency against the Rents or any property securing the Indebtedness. This includes a Garnishment of any of Grantor's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. Property Damage or Loss. The Property is lost, stolen, substantially damaged, sold, or borrowed against. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. Adverse Change. A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. Insecurity. Lender in good faith believes itself insecure. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default and at any time thereafter, Lender may exercise any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law: Accelerate Indebtedness. Lender shall have the right at its option without notice to Grantor to declare the entire Indebtedness immediately due and payable, including any prepayment penalty which Grantor would be required to pay. Collect Rents. Lender shall have the right, without notice to Grantor, to take possession of the Property and collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness. In furtherance of this right, Lender shall have all the rights provided for in the Lender's Right to Receive and Collect Rents Section, above. If the Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor's attorney-in-fact to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person, by agent, or through a receiver. ASSIGNMENT OF RENTS Loan No: 11672601 (Continued) Page 5 Mortgagee in Possession. Lender shall have the right to be placed as mortgagee in possession or to have a receiver appointed to take possession of all or any part of the Property, with the power to o'otect arc preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents f'an- the Property and apply the proceeds, over and above the cost of the receivership, against t-e Indebtedness. The mortgagee in possession or receiver may serve without bond if permitter by ia'.,'. . Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Fore-:, exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disquaii=y a•persc- from serving as a receiver. Other Remedies. Lender shall have all other rights and remedies provided in this Assignment or the Note or by law. Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any otne- remedy, and an election to make expenditures or to take action to perform an obligation of Grantor ..rode• this Assignment, after Grantor's failure to perform, shall not affect Lender's right to declare a default anc exercise its remedies. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Assignment, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or not any court action is involved, and to toe ex:e--: not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary. a: ar,. time for the protection of its interest or the enforcement of its rights shall become a part of :-e Indebtedness payable on demand and shall bear interest at the Note rate from the date of the expenc;: ;-e until repaid. Expenses covered by this paragraph include, without limitation, however subject to any ir^i:s under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees and expenses for bankruptcy proceedings (including efforts to modi=v or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services: the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, a-d appraisal fees, title insurance, and fees for the Trustee, to the extent permitted by applicable law. Grar:o- also will pay any court costs, in addition to all other sums provided by law. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Assignment: Amendments. This Assignment, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Assignment. No alteration c' or amendment to this Assignment shall be effective unless given in writing and signed by the party o- parties sought to be charged or bound by the alteration or amendment. Caption Headings. Caption headings in this Assignment are for convenience purposes only and are not to be used to interpret or define the provisions of this Assignment. Governing Law. This Assignment will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Illinois without regard to its conflicts of law provisions. This Assignment has been accepted by Lender in the State of Illinois. Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdic-nor of the courts of Cook County, State of Illinois. Merger. There shall be no merger of the interest or estate created by this assignment with any Diner interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. Interpretation. (1) In all cases where there is more than one Borrower or Grantor, then all words used in. this Assignment in the singular shall be deemed to have been used in the plural where the context and construction so require. (2) If more than one person signs this Assignment as "Grantor," the obligations of each Grantor are joint and several. This means that if Lender brings a lawsuit, Lender may sue any one or more of the Grantors. If Borrower and Grantor are not the same person, Lender need not sue Borrower first, and that Borrower need not be joined in any lawsuit. (3) The names given to paragraphs or sections ASSIGNMENT OF RENTS Loan No: 11672601 (Continued) Page 6 in this Assignment are for convenience purposes only. They are not to be used to interpret or define the provisions of this Assignment. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Assignment unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Assignment shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Assignment. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Assignment, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. Notices. Any notice required to be given under this Assignment shall be given in writing, and shall be effective wnen actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Assignment. Any party may change its address for notices under this Assignment by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise provided or required by law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. Powers of Attorney. The various agencies and powers of attorney conveyed on Lender under this Assignment are granted for purposes of security and may not be revoked by Grantor until such time as the same are renounced by Lender, Severability. If a court of competent jurisdiction finds any provision of this Assignment to be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending provision cannot be so modified, it shall be considered deleted from this Assignment. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Assignment shall not affect the legality, validity or enforceability of any other provision of this Assignment. Successors and Assigns. Subject to any limitations stated in this Assignment on transfer of Grantor's interest, this Assignment shall be binding upon and inure to the benefit of the parties, their successors and assigns. If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Assignment and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Assignment or liability under the Indebtedness. Time is of the Essence. Time is of the essence in the performance of this Assignment. Waive Jury. All parties to this Assignment hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any party against any other party. WAIVER OF HOMESTEAD EXEMPTION. Grantor hereby releases and waives all rights and benefits of the homestead exemption laws of the State of Illinois as to all Indebtedness secured by this Assignment. WAIVER OF RIGHT OF REDEMPTION. NOTWITHSTANDING ANY OF THE PROVISIONS TO THE CONTRARY CONTAINED IN THIS ASSIGNMENT, GRANTOR HEREBY WAIVES ANY AND ALL RIGHTS OF REDEMPTION FROM SALE UNDER ANY ORDER OR JUDGMENT OF FORECLOSURE ON GRANTOR'S BEHALF AND ON BEHALF OF EACH AND EVERY PERSON, EXCEPT JUDGMENT CREDITORS OF GRANTOR, ACQUIRING ANY INTEREST IN OR TITLE TO THE PROPERTY SUBSEQUENT TO THE DATE OF THIS ASSIGNMENT. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this ASSIGNMENT OF RENTS Loan No: 11672601 (Continued) Page 7 Assignment. Unless specifically stated to the contrary, all references to dollar amounts shall mean amou^:s ,r• lawful money of the United States of America. Words and terms used in the singular shall include the oru-a. and the plural shall include the singular, as the context may require. Words and terms not otherwise define:: this Assignment shall have the meanings attributed to such terms in the Uniform Commercial Code: Assignment. The word "Assignment" means this ASSIGNMENT OF RENTS, as this ASSIGNMENT OF RENTS may be amended or modified from time to time, together with all exhibits and schedules attached to this ASSIGNMENT OF RENTS from time to time. Borrower. The word "Borrower" means Sotomayor Enterprises, LLC. Default. The word "Default" means the Default set forth in this Assignment in the section titled "De=at...: Event of Default. The words "Event of Default" mean any of the events of default set fort~ it .t-Hs Assignment in the default section of this Assignment. Grantor. The word "Grantor" means Sotomayor Enterprises, LLC. Guarantor. The word "Guarantor" means any guarantor, surety, or accommodation party of any or ai the Indebtedness. Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note. Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs ar-c expenses payable under the Note or Related Documents, together with 'all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lence• to enforce Grantor's obligations under this Assignment, together with interest on such amounts as provided in this Assignment. Specifically, without limitation, Indebtedness includes all amounts that may oe :ndi-ect y secured by the Cross-Collateralization provision of this Assignment. Lender. The word "Lender" means American Chartered Bank, its successors and assigns. Note. The word "Note" means the promissory note dated October 11, 2005, in the original principal amount of $200,000.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. The interest rate on the Note is 6.500%. Payments on the Note are to be made in accordance with the following payment schedule: one principal and interest payment of $4,483.33 on January 11, 2006, with interest • calculated on the unpaid principal balances at an interest rate of 6.500% per annum; 58 monthly consecutive principal and interest payments of $2,280.55 each, beginning February 11, 2006, with interest calculated on the unpaid principal balances at an interest rate of 6.500% per annum; and one principal and interest payment of $118,567.04 on December 11, 2010, with interest calculated on the unpaid principal balances at an interest rate of 6.500% per annum. This estimated final payment is based on the assumption that all payments will be made exactly as scheduled; the actual final payment will be for all principal and accrued interest not yet paid, together with any other unpaid amounts under this Assignment. Property. The word "Property" means all of Grantor's right, title and interest in and to all the Property as described in the "Assignment" section of this Assignment. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust. security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. Rents. The word "Rents" means all of Grantor's present and future rights, title and interest in, to anc . under any and all present and future leases, including, without limitation, all rents, revenue, income, issues. royalties, bonuses, accounts receivable, cash or security deposits, advance rentals, profits and proceeas ASSIGNMENT OF RENTS Loan No: 11672601 (Continued) Page 8 from the Property, and other payments and benefits derived or to be derived from such leases of every kind and nature, whether due now or later, including without limitation Grantor's right to enforce such leases and to receive and collect payment and proceeds thereunder. THE UNDERSIGNED ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS ASSIGNMENT, AND NOT PERSONALLY BUT AS AN AUTHORIZED SIGNER, HAS CAUSED THIS ASSIGNMENT TO BE SIGNED AND EXECUTED ON BEHALF OF GRANTOR ON OCTOBER 11, 2005. GRANTOR: SOTOMAYOR ENTERPRISES, LLC By ��L� Shirley Sad '- otomayor, anager of Sotomayor Enterprises, LLC � By: Wilde FE'f ' ' ornaynr I \ager of Sotomayor Enterprises, LLC LIMITED LIABILITY COMPANY ACKNOWLEDGMENT STATE OF ) SS COUNTY OF On this day of before me, the undersigned Notary Public, personally appeared Shirley Sadjadi-Sotomayor, Manager; Wilde R. Sotomayor, Manager of Sotomayor Enterprises, LLC, and known to me to be members or designated agents of the limited liability company that executed the ASSIGNMENT OF RENTS and acknowledged the Assignment to be the free and voluntary act and deed of the limited liability company, by authority of statute, its articles of organization or its operating agreement, for the uses and purposes therein mentioned, and on oath stated that they are authorized to execute this Assignment and in fact executed the Assignment on behalf of the limited liability company. By Residing at Notary Public in and for the State of My commission expires =5::.='.0_a �r,.:, :.: S.0 _oo...a,lanc=nan ciai Soiunons.Inc.1997.2005. All flg7ss Peae,,,d. .IL %:ICfl1LPLIGI a,fc TR.1 j55i PN IS LIMITED LIABILITY COMPANY RESOLUTION TO BORROW I GRANT COLLATERAL Principal Loan•Date Maturity Loan No caii l fioi1 • ACf:i�IMI #? .,,;.�1�,<'�:riCtl le $QO.000.00 10-11-2005 12-11-2010 11672601 too t864 5192 ila References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or Item. Any item above containing has been omitted due to text length limitations. Company: Sotomayor Enterprises.LLC(TIN: 20-1985148) Lender: American Chartered Bank 1386 Angle Tarn 1199 E.Higgins Rd. West Dundee,IL 80118 Schaumburg,IL 80173 1847)517-5400 WE,THE UNDERSIGNED.DO HEREBY CERTIFY THAT: THE COMPANY'S EXISTENCE. The complete and correct name of the Company is Sotomeyor Enterprises,LLC I-Company"). The Company is a limited liability company which is, and at all times shall be,duly organized,validly existing,end in good standing under and by virtue of the laws of the State of Illinois. The Company is duly authorized to transact business in all other states in which the Company is doing business, having obtained all necessary filings,governmental licenses and approvals for each state in which the Company is doing business. Specifically, the Company is,and at all times shall be,duly qualified as a foreign limited liability company in all states in which the failure to so qualify would have a material adverse effect on its business or financial condition. The Company has the full power and authority to own its properties and to transact the business in which it is presently engaged or presently proposes to engage. The Company maintains an office at 1386 Angle Tarn, West Dundee, IL 60118. Unless the Company hes designated otherwise in writing,the principal office is the office at which the Company keeps its books and records. The Company will notify Lender prior to any change in the location of The Company's state of organization or any change in The Company's name. The Company shall do all things necessary to preserve end to keep In full force and effect its existence,rights and privileges.and shall comply with all regulations,rules,ordinances,statutes.orders and decrees of any governmental or quasi-governmental authority or court applicable to the Company and The Company's business activities. RESOLUTIONS ADOPTED. At a meeting of the members of the Company,duly called end held on October 11.2005, at which a quorum was present and voting.or by other duly authorized action in lieu of a meeting,the resolutions set forth in this Resolution were adopted. MANAGERS. The following named persons are managers of Sotomayor Enterprises,LLC: NAMES TITLES AUTHORIZED ACTU L SIGNATURES • Shirley Sadjadi-Sotomayor Manager • Y XC —� Wilda R.Sotomayor Manager Y ACTIONS AUTHORIZED. Any two (2)of the authorized persons listed above may ant r in g,a y nests ature with Lender, and those agreements will bind the Company. Specifically, but without limitation, any wo 12) of suc authorized persons are authorized, empowered,and directed to do the following for end on behalf of the Company: • Borrow Money. To borrow,as a cosigner or otherwise,from time to time from Lender,on such terms as may be agreed upon between the Company and Lender,such sum or sums of money as in their judgment should be borrowed,without limitation. Execute Notes. To execute and deliver to Lender the promissory note or notes, or other evidence of the Company's credit accommodations,on Lender's forms,at such rates of interest and on such terms as may be agreed upon,evidencing the sums of money so borrowed or any of the Company's indebtedness to Lender,and also to execute and deliver to Lender one or more renewals,extensions, modifications,refinancings,consolidations,or substitutions for one or more of the notes,any portion of the notes,or any other evidence of credit accommodations. Grant Security. To mortgage,pledge,transfer,endorse,hypothecate,or otherwise encumber and deliver to Lender any property now or hereafter belonging to the Company or in which the Company'now or hereafter may have an interest.including without limitation all of the Company's real property and all of the Company's personal property(tangible or intangible), as security for the payment of any loans or credit accommodations so obtained, any promissory notes so executed (including any amendments to or modifications, renewals, and extensions of such promissory notesl,or any other or further indebtedness of the Company to Lender at any time owing,however the same may be evidenced. Such-property may be mortgaged,pledged,transferred,endorsed,hypothecated or encumbered at the time such loans are obtained or such indebtedness is incurred,or at any other time or times, and may be either in addition to or in lieu of any property theretofore mortgaged,pledged,transferred,endorsed,hypothecated or encumbered. Execute Security Documents. To execute and deliver to Lender the forms of mortgage, deed of trust, pledge agreement, hypothecation agreement, and other security agreements and financing statements which Lender may require end which shall evidence the terms and conditions under end pursuant to which such liens and encumbrances,or any of them,are given;and also to execute and deliver to Lender any other written instruments,any chattel paper,or any other collateral,of any kind or nature,which Lender may deem necessary or proper in connection with or pertaining to the giving of the liens and encumbrances. Notwithstanding the foregoing, any one of the above ' authorized persons may execute,deliver,or record financing statements. Confession of Judgment. The Company hereby irrevocably authorizes and empowers any attorney-at-law to appear in any court of record and to confess judgment against the Company for the unpaid amount of this Resolution as evidenced by an affidavit signed by en officer of Lender setting forth the amount then due,attorneys' fees plus costs of suit,and to release all errors,and waive all rights of appeal. If a copy of this Resolution, verified by an affidavit, shall have been filed in the proceeding, it will not be necessary to file the original as a warrant of attorney. The Company waives the right to any stay of execution and the benefit of all exemption laws now or hereafter in effect. No single exercise of the foregoing warrant and power to confess judgment will be deemed to exhaust the power,whether or not any such exercise shall be held by any court to be invalid,voidable,or void;but the power will continue undiminished and may be exercised from time to time as Lender may elect until all amounts owing on this Resolution have been paid In full. The Company hereby waives and releases any and ell claims or causes of action which the Company might have against any attorney acting under the terms of authority which the Company has granted herein arising out of or connected with the confession of judgement hereunder. Negotiate Items. To draw, endorse, and discount with Lender all drafts, trade acceptances, promissory notes, or other evidences of indebtedness payable to or belonging to the Company or in which the Company may have an interest, and either to receive cash for the same or to cause such proceeds to be credited to the Company's account with Lender,or to cause such other disposition of the proceeds derived therefrom as they may deem advisable. Further Acts. In the case of lines of credit, to designate additional or alternate individuals as being authorized to request advances under such lines. and in all cases,to do and perform such other acts and things,to pay any and all fees and costs,and to execute and deliver such other documents and agreements, including agreements waiving the right to a trial by jury and confessing judgment against the Company,as the managers may in their discretion deem reasonably necessary or proper in.order to carry into effect the provisions of this Resolution. • ASSUMED BUSINESS NAMES. The Company has filed or recorded all documents or filings required by law relating to all assumed business names used by the Company. Excluding the name of the Company,the following is a complete list of all assumed business names under which the Company does business: None. NOTICES TO LENDER. The Company will promptly notify Lender in writing at Lender's address shown above (or such other addresses as Lender may designate from time to time)prior to any IAI change in the Company's name: IBl change In the Company's assumed business namelsl: ICI change in the management or in the Managers of the Company: (D) change in the authorized signerisi; (El change in the Company's principal office address; IF) change in the Company's state of organization; (G) conversion of the Company to a new or different type of business entity; or IHI change in any other aspect of the Company that directly or indirectly relates to any agreements between the Company and Lender. No change in the Company's name or state of organization will take effect until after Lender has received notice. CERTIFICATION CONCERNING MANAGERS AND RESOLUTIONS. The managers named above are duly elected,appointed,or employed by or for the Company,es the case may be,and occupy the positions set opposite their respective names. This Resolution now stands of record on the books of the Company,is in full force and effect,and has not been modified or revoked In any manner whatsoever. CONTINUING VALIDITY. Any and all acts authorized pursuant to this Resolution and performed prior to the passage of this Resolution are hereby ratified and approved. This Resolution shall be continuing, shall remain in full force and effect and Lender may rely on it-until written notice of its revocation shall have been delivered to and received by Lender at Lender's address shown above(or such addresses as Lender may designate from time to time). Any such notice shall not affect any of the Company's agreements or commitments in effect at the time notice is given. IN TESTIMONY WHEREOF,we have hereunto set our hand and attest that the signatures set opposite the names listed above are their genuine LIMITED LIABILITY COMPANY RESOLUTION TO BORROW / GRANT COL LATERAL No: 11672601 (Continued) Page 2 signatures. We each have read all the provisions of this Resolution, and we each personally end on behalf of the Company certify that all statements end representations made in this Resolution ere true and correct. This Limited Liability Company Resolution to Borrow/Grant Collateral Is dated October 11. 2005. CERTIFIED TO AND ATTESTED BY: III `, ice• ^' X 11• a TTT�111 4 t•:�� S t r ey S•Tager of otomayor Enterer es,0311 ra.0 40 .7 Liiiiittin't :'ar tt.ger of Sotomayor Enterpri::.,1 LC NOT F it me Tanagers srgia.rg IN,Resausron are designated by the Par egorng document as ore of the managers aufhorfeed to act on the Company's babel'.It Is advisable to hey,thla Resolution speed h,at feast ex.....am ro.reeo rnanpry of the Company • Nel..eo t..w.a r..a]>an—C...w...a.....,.a.O•...,1 rMe,lase ..seer.a.....a a atcanrnrcrarc nrfaa.r.ra AM ERICAN CbND PROMISSORY NOTE Principal Login Data Matlrrity • LoAn Nfa t pllfvnU A f r�ti�t� ` ., gyp' ei $200,000.00 10-11-2005 12-11-201Q 11672601`' References in the shaded area are for lender's use only and do not limit the applicability of this document to any particular loan or Item. Any item above containing"•'•"has been omitted due to text length limitations. Borrower: Sotomeyor Enterprises,LLC(TIN: 20.1985146) Lender: American Chartered Bank 1366 Angle Tarn 1199 E.Higgins Rd. West Dundee,IL 60118 Schaumburg,IL 80173 (847)617-6400 Principal Amount: 5200,000.00 Date of Note: October 11, 2005 PROMISE TO PAY. Sotomayor Enterprises,LLC I"Borrower"i promisee to pay to American Chartered Bank("Lender"),or order,in lawful money of the United States of America,the principal amount of Two Hundred Thousand&00/100 Dollars($200,000.00(,together with Interest on the unpaid principal balance from October 11,2006.until paid in full. PAYMENT. Borrower will pay this loan in accordance with the following payment schedule: one principal and Interest payment of$4,483.33 on January 11, 2006. with interest calculated on the unpaid principal balances at en interest rate of 8.500% per annum; 58 monthly consecutive principal and interest payments of 82,280.55 each,beginning February 11.2008. with Interest calculated on the unpaid principal balances at an interest rate of 6.500% per annum; end one principal end interest payment of $118,567.04 on December 11, 2010, with interest calculated on the unpaid principal balances at an interest rate of 6.500% per annum. This estimated final payment Is based on the assumption that all payments will be made exactly as scheduled;the actual final payment will be for all principal end accrued Interest not yet paid.together with any other unpaid amounts under this Note. Unless otherwise agreed or required by applicable law,payments will be applied first to any accrued unpaid interest;then to principal;then to any unpaid collection costs;and then to any late charges. The annual interest rate for this Note is computed on a 365/360 basis;that is,by applying the ratio of the annual interest rate over a year of 360 days,multiplied by the outstanding principal balance,multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject Is rebind upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing.Borrower may pay without penalty all or a portion of the amount owed earlier than It is due. Early payments will not,unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in Borrower's making fewer payments. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment. Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes 'payment in full'of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: American Chartered Bank,955 National Parkway Suite 60 Schaumburg,IL 60173. LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled payment or$100.00,whichever is greater. INTEREST AFTER DEFAULT. Upon default,including failure to pay upon final maturity,Lender,at its option,may,If permitted under applicable law, increase the interest rate on this Note 5.000 percentage points. The interest rate will not exceed the maximum rate permitted by applicable law. DEFAULT. Each of the following shall constitute an event of default("Event of Default")under this Note: Payment Default. Borrower fails to make any payment when due under this Note. Other Defaults. Borrower fails to comply with or to perform any other term,obligation,covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term,obligation,covenant or condition contained in any other agreement between Lender and Borrower. Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan,extension of credit, security agreement, purchase or sales agreement,or any other agreement,in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents. Environmental Default. Failure of any party to comply with or perform when due any term,obligation,covenant or condition contained in any environmental agreement executed in connection with any loan. False Statements. Any warranty,representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect,either now or at the time made or furnished or becomes false or misleading at any time thereafter. Death or Insolvency. The dissolution of Borrower (regardless of whether election to continue is made), any member withdraws from Borrower, or any other termination of Borrower's existence as a going business or the death of any member, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property,any assignment for the benefit of creditors,any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower's accounts,including deposit accounts,with Lender. However,this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which Is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note. Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. Insecurity. Lender in good faith believes itself insecure, LENDER'S RIGHTS. Upon default. Lender may declare the entire unpaid principal balance on this Note and all accrued unpaid interest immediately due.and then Borrower will pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount, This includes,subject to any limits under applicable law,Lender's attorneys'fees and Lender's legal expenses,whether or not there is a lawsuit, including attorneys' fees,expenses for bankruptcy proceedings(including efforts to modify or vacate any automatic stay or injunction),and appeals. If not prohibited by applicable law,Borrower also will pay any court costs,in addition to all other sums provided by law. JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action,proceeding,or counterclaim brought by either Lender or Borrower against the other. GOVERNING LAW. This Note will be governed by federal law applicable to Lender and,to the extent not preempted by federal law,the laws of the State of Illinois without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of Illinois. CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Cook County, State of Illinois. CONFESSION OF JUDGMENT. Borrower hereby irrevocably authorizes and empowers any attorney-at-law to appear in any court of record and to confess judgment against Borrower for the unpaid amount of this Note as evidenced by an affidavit signed by an officer of Lender setting forth the amount then due, attorneys' fees plus costs of suit, and to release all errors, and waive all rights of appeal. If a copy of this Note, PROMISSORY NOTE Loan No: 11672601 (Continued) Page 2 • verified by an allidavit. shall have been filed In the proceeding, it will not be necessary to file the original as a warrant of attorney. Borrower waives the right to any stay of execution and the benefit of all exemption laws now or hereafter In effect. No single exercise of the foregoing warrant end power to confess judgment will be deemed to exhaust the power,whether or not any such exercise shall be held by any court to be invalid. voidable, or void; but the power will continue undiminished and may be exercised from time to time as Lender may elect until all amounts owing on this Note have been paid in full. Borrower hereby waives and releases any and all claims or causes of action which Borrower might have against any attorney acting under the terms of authority which Borrower has granted herein arising out of or connected with the confession of judgement hereunder. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $27.00 if Borrower makes a payment on Borrower's loan and the check or ()reauthorized charge with which Borrower pays is later dishonored. RIGHT OF SETOFF. To the extent permitted by applicable law,Lender reserves a right of setoff in all Borrower's accounts with Lender(whether checking,savings,or some other account). This includes all accounts Borrower holds jointly with someone else end all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender,to the extent permitted by applicable law,to charge or setoff all sums owing on the indebtedness against any and all such accounts. • LENDER'S REMEDIES.In addition to other remedies, the Lender shall have all remedies available to it under any Related Documents executed in conjunction with this Agreement. RELATED DOCUMENTS. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements. guaranties, security agreements, mortgages. deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents,whether now or hereafter existing,executed in connection with the loan. OTHER PROVISIONS.In the event that the Borrower fails to make any payment when due under this Note,or any other Note with the Lender,in addition to all the other remedies which the Lender may have available to it,whether at law or In equity, the Lender shall have the immediate right to deduct from any account standing in the name of the Borrower with the Lender,held either individually or jointly with another account holder, the amount of such past due payment, as well as any and all remaining payments due under this Note, or any other Note with the Lender, regardless of whether the Borrower is in default of such future payment obligations. If the funds in such account or accounts are insufficient to cover any payment. Lender shall not be obligated to advance funds to cover the cost of such payment. At any time and for any reason,the Lender may voluntarily agree to terminate such automatic payments. AUTOMATIC PAYMENT. Borrower hereby authorizes Lender automatically to deduct from account numbered 1200741, or any replacement account of the Borrower with the Lender,the amount of any loan payment. If the funds in the account are insufficient to cover any payment, Lender shall not be obligated to advance funds to cover the payment. FINANCIAL REPORTING REQUIREMENTS.Borrower covenants and agrees with Lender that,so long as this Note remains in effect,Borrower will furnish Lender with the following financial statements: Guarantors Personal Financial Statements. Personal Financial Statements of ell guarantors are required to be provided annually as requested by Lender. All financial reports required under this agreement shall be prepared in accordance with GAAP, applied on a consistent basis, and certified by Borrower as being true and correct. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns.and shall inure to the benefit of Lender and its successors and assigns. GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment,demand for payment, and notice of dishonor. Upon any change in the terms of this Note,and unless otherwise expressly stated in writing,no party who signs this Note, whether as maker,guarantor,accommodation maker or endorser,shall be released from liability. All such parties agree that Lender may renew or extend(repeatedly and for any length of time)this loan or release any party or guarantor or collateral;or impair,fail to realize upon or perfect Lender's security interest in the collateral;and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. ILLINOIS INSURANCE NOTICE. Unless Borrower provides Lender with evidence of the insurance coverage required by Borrower's agreement with Lender,Lender may purchase insurance at Borrower's expense to protect Lender's Interests in the collateral. This insurance may,but need not,protect Borrower's interests. The coverage that Lender purchases may not pay any claim that Borrower makes or any claim that Is made against Borrower in connection with the collateral. Borrower may later cancel any insurance purchased by Lender, but only after providing Lender with evidence that Borrower has obtained insurance as required by their agreement. If Lender purchases Insurance for the collateral, Borrower will be responsible for the costs of that insurance,including interest and any other charges Lender may impose in connection with the placement of the insurance,until the effective date of the cancellation or expiration of the insurance. The costs of the insurance may be added to Borrower's total outstanding balance or obligation. The costs of the insurance may be more than the cost of insurance Borrower may be able to obtain on Borrower's own. PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. BORROWER: • SOTOMAYOR INTERPRISES,LLC By: Shirley Sadjad otom or, snag of So omayor Wilde R. �6to ayp Mager of Sotomayor Enterprises,LLB Enterprise""u``��.S��J " ��S]R RRO l,..e�R.v,..5.]>.CONS Co,-.R✓wa r..✓,:,I So4�lo",.,,,.,�991.]005. •R�Rn„R..✓rrY. Il R.rCiRlRl�O]O.rf iR,]56,fit�I WHEN RECORDED MAIL TO: American Chartered Bank 955 National Parkway Suite 60 Schaumburg, IL 60173 FOR RECORDER'S USE ONLY This Hazardous Substances Agreement prepared by: American Chartered Bank 1199 E. Higgins Road Schaumburg, IL 60173 HAZARDOUS SUBSTANCES CERTIFICATE AND INDEMNITY AGREEMENT THIS HAZARDOUS SUBSTANCES AGREEMENT dated October 11, 2005, is made and executed among Sotomayor Enterprises, LLC; 1366 Angle Tarn; West Dundee, IL 60118 (sometimes referred to below as "Borrower" and sometimes as "Indemnitor"); and American Chartered Bank, 1199 E. Higgins Rd., Schaumburg, IL 60173 (referred to below as "Lender"). For good and valuable consideration and to induce Lender to make a Loan to Borrower, each party executing this Agreement hereby represents and agrees with Lender as follows: PROPERTY DESCRIPTION. The word "Property" as used in this Agreement means the following Real Property located in Kane County, State of Illinois: THE EASTERLY 21.5 FEET OF THE WESTERLY 22 FEET OF LOT 2 (EXCEPT THE SOUTH 15 FEET) IN BLOCK 15 IN THE ORIGINAL TOWN OF ELGIN ON THE EAST SIDE OF THE FOX RIVER, IN THE CITY OF ELGIN, KANE COUNTY, ILLINOIS. The Real Property or its address is commonly known as 165 East Chicago Avenue, Elgin, IL 60120-5523. The Real Property tax identification number is 06-14-434-007. REPRESENTATIONS. The following representations are made to Lender, subject to disclosures made and accepted by Lender in writing: Use of Property. After due inquiry and investigation, Indemnitor has no knowledge, or reason to believe, that there has been any use, generation, manufacture, storage, treatment, refinement, transportation, disposal, release, or threatened release of any Hazardous Substance by any person on, under, or about the Property. Hazardous Substances. After due inquiry and investigation, Indemnitor has no knowledge, or reason to believe, that the Collateral, whenever and whether owned by previous Occupants, has ever contained asbestos, PCB or other Hazardous Substances, whether used in construction or stored on the Collateral. No Notices. Indemnitor has received no summons, citation, directive, letter or other communication, written or oral, from any agency or department of any county or state or the U.S. Government concerning any intentional or unintentional action or omission on, under, or about the Property which has resulted in the releasing, spilling, leaking, pumping, pouring, emitting, emptying or dumping of Hazardous Substances into any waters or onto any lands or where damage may have resulted to the lands, waters, fish, shellfish, wildlife, biota, air or other natural resources. AFFIRMATIVE COVENANTS. Subject to disclosures made and accepted by Lender in writing, Indemnitor covenants with Lender as follows: Use of Property. Indemnitor will not use and does not intend to use the Property to generate, manufacture, refine, transport, treat, store, handle or dispose of any Hazardous Substances. Compliance with Environmental Laws. Indemnitor shall cause the Collateral and the operations conducted on it to comply with any and all Environmental Laws and orders of any governmental authorities having jurisdiction under any Environmental Laws and shall obtain, keep in effect and comply with all governmental permits and authorizations required by Environmental Laws with respect to such Collateral or operations. Indemnitor shall furnish Lender with copies of all such permits and authorizations and any amendments or renewals of them and shall notify Lender of any expiration or revocation of such permits or authorizations. Preventive, Investigatory and Remedial Action. Indemnitor shall exercise extreme care in handling HAZARDOUS SUBSTANCES AGREEMENT Loan No: 11672601 (Continued) Page 2 Hazardous Substances if Indemnitor uses or encounters any. Indemnitor, at Indemnitor's expense, shall undertake any and all preventive, investigatory or remedial action (including emergency response, removal, containment and other remedial action) (a) required by any applicable Environmental Laws or orders by any governmental authority having jurisdiction under Environmental Laws, or (b) necessary to prevent or minimize property damage (including damage to Occupant's own property), personal injury or damage to the environment, or the threat of any such damage or injury, by releases of or exposure to Hazardous Substances in connection with the Property or operations of any Occupant on the Property. In the event Indemnitor fails to perform any of Indemnitor's obligations under this section of the Agreement, Lender may (but shall not be required to) perform such obligations at Indemnitor's expense. All such costs and expenses incurred by Lender under this section and otherwise under this Agreement shall be reimbursed by Indemnitor to Lender upon demand with interest at the Loan default rate, or in the absence of a default rate, at the Loan interest rate. Lender and Indemnitor intend that Lender shall have full recourse to Indemnitor for any sum at any time due to Lender under this Agreement. In performing any such obligations of Indemnitor, Lender shall at all times be deemed to be the agent of Indemnitor and shall not by reason of such performance be deemed to be assuming any responsibility of Indemnitor under any Environmental Law or to any third party. Indemnitor hereby irrevocably appoints Lender as Indemnitor's attorney-in-fact with full power to perform such of Indemnitor's obligations under this section of the Agreement as Lender deems necessary and appropriate. Notices. Indemnitor shall immediately notify Lender upon becoming aware of any of the following: (1) Any spill, release or disposal of a Hazardous Substance on any of the Property, or in connection with any of its operations if such spill, release or disposal must be reported to any governmental • authority under applicable Environmental Laws. (2) Any contamination, or imminent threat of contamination, of the Property by Hazardous Substances, or any violation of Environmental Laws in connection with the Property or the operations conducted on the Property. (3) Any order, notice of violation, fine or penalty or other similar action by any governmental authority relating to Hazardous Substances or Environmental Laws and the Property or the operations conducted on the Property. (4) Any judicial or administrative investigation or proceeding relating to Hazardous Substances or Environmental Laws and to the Property or the operations conducted on the Property. (5) Any matters relating to Hazardous Substances or Environmental Laws that would give a reasonably prudent Lender cause to be concerned that the value of Lender's security interest in the Property may be reduced or threatened or that may impair, or threaten to impair, Indemnitor's ability to perform any of its obligations under this Agreement when such performance is due. Access to Records. Indemnitor shall deliver to Lender, at Lender's request, copies of any and all documents in Indemnitor's possession or to which it has access relating to Hazardous Substances or Environmental Laws and the Property and the operations conducted on the Property, including without limitation results of laboratory analyses, site assessments or studies, environmental audit reports and other consultants' studies and reports. • Inspections. Lender reserves the right to inspect and investigate the Property and operations on it at any time and from time to time, and Indemnitor shall cooperate fully with Lender in such inspection and investigations. If Lender at any time has reason to believe that Indemnitor or any Occupants of the Property are not complying with all applicable Environmental Laws or with the requirements of this Agreement or that a material spill, release or disposal of Hazardous Substances has occurred on or under the Property, Lender may require Indemnitor to furnish Lender at Indemnitor's expense an environmental audit or a site assessment with respect to the matters of concern to Lender. Such audit or assessment shall be performed by a qualified consultant approved by Lender. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to any Indemnitor or to any other person. INDEMNITOR'S WAIVER AND INDEMNIFICATION. Indemnitor hereby indemnifies and holds harmless Lender and Lender's officers, directors, employees and agents, and Lender's successors and assigns and their officers, directors, employees and agents against any and all claims, demands, losses, liabilities, costs and expenses (including without limitation attorneys' fees at trial and on any appeal or petition for review) incurred by such person (a) arising out of or relating to any investigatory or remedial action involving the Property, the operations conducted on the Property or any other operations of Indemnitor or any Occupant and required by Environmental Laws or by orders of any governmental authority having jurisdiction under any Environmental Laws, or (b) on account of injury to any person whatsoever or damage to any property arising out of, in connection with, or in any way relating to (i) the breach of any covenant contained in this Agreement, (ii) the violation of any Environmental Laws, (iii) the use, treatment, storage, generation, manufacture, transport, release, spill disposal or other handling of Hazardous Substances on the Property, (iv) the contamination of any of the Property by Hazardous Substances by any means whatsoever (including without limitation any presently existing contamination of the Property), or (v) any costs incurred by Lender pursuant to this Agreement. In addition to this indemnity, Indemnitor hereby releases and waives all present and future claims against Lender for indemnity or contribution in the event Indemnitor becomes liable for cleanup or other costs under any Environmental Laws. PAYMENT: FULL RECOURSE TO INDEMNITOR. Indemnitor intends that Lender shall have full recourse to HAZARDOUS SUBSTANCES AGREEMENT Loan No: 11672601 (Continued) Page 3 Indemnitor for Indemnitor's obligations under this Agreement as theybecome due to Lender. Such liabilities, 8 losses, claims, damages and expenses shall be reimbursable to Lender as Lender's g p d s obligations to make payments with respect thereto are incurred, without any requirement of waiting for the ultimate outcome of any litigation, claim or other proceeding, and lndemnitor shall pay such liability, losses, claims, damages and x en e p ses to Lender as so incurred within thirty (30) days after written notice from Lender. Lender's notice shall contain a brief itemization of the amounts incurred to the date of such notice. In addition to anyremedy Y available for failure to pay periodically such amounts, such amounts shall thereafter bear interest at the Loan default rate, or in the absence of a default rate, at the Loan interest rate. SURVIVAL. The covenants contained in this Agreement shall survive (Al the repayment of the Indebtedness, (B) any foreclosure, whether judicial or nonjudicial, of the Property, and (C) any delivery of a deed in lieu of foreclosure to Lender or any successor of Lender. The covenants contained in this Agreement shall be for the benefit of Lender and any successor to Lender, as holder of any security interest in the Property or the indebtedness secured thereby, or as owner of the Property following foreclosure or the delivery of a deed in lieu of foreclosure. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Agreement: Amendments. This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Agreement. No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Agreement, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, end appraisal fees and title insurance, to the extent permitted by applicable law. Indemnitor also will pay any court costs, in addition to all other sums provided by law. Caption Headings. Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or define the provisions of this Agreement. Governing Law. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Illinois without regard to its conflicts of law provisions. This Agreement has been accepted by Lender in the State of Illinois. Choice of Venue. If there is a lawsuit, Indemnitor agrees upon Lender's request to submit to the jurisdiction of the courts of Cook County, State of Illinois. • Joint and Several Liability. All obligations of Indemnitor under this Agreement shall be joint and several, and all references to lndemnitor shall mean each and every Indemnitor. This means that each Indemnitor signing below is responsible for all obligations in this Agreement. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Agreement shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing between Lender and Indemnitor, shall constitute a waiver of any of Lender's rights or of any of Indemnitor's obligations as to any future transactions. Whenever the consent of Lender is required under this Agreement, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. Indemnitor hereby waives notice of acceptance of this Agreement by Lender. • Notices. Any notice required to be given under this Agreement shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Agreement. Any party may change its address for notices under this Agreement by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Indemnitor agrees to keep Lender informed at all times of Indemnitor's current address. Unless otherwise provided or required by law, if there is more than one Indemnitor, any notice given by Lender to any Indemnitor is deemed to be notice given to all lndemnitors. Severability. If a court of competent jurisdiction finds any provision of this Agreement to be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible, the offending provision shall be considered HAZARDOUS SUBSTANCES AGREEMENT Loan No: 11672601 (Continued) Page 4 • modified so that it becomes legal, valid and enforceable. If the offending provision cannot be so modified, it shall be considered deleted from this Agreement. Unless otherwise required by law, the Illegality, invalidity, or unenforceability of any provision of this Agreement shall not affect the legality, validity or enforceability of any other provision of this Agreement. Successors and Assigns. Subject to any limitations stated in this Agreement on transfer of Indemnitor's interest, this Agreement shall be binding upon and inure to the benefit of the parties, their successors and assigns. If ownership of the Collateral becomes vested in a person other than Indemnitor, Lender, without notice to Indemnitor, may deal with Indemnitor's successors with reference to this Agreement and the Indebtedness by way of forbearance or extension without releasing Indemnitor from the obligations of this Agreement or liability under the Indebtedness. Time is of the Essence. Time is of the essence in the performance of this Agreement. Waive Jury. All parties to this Agreement hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any party against any other party. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Agreement. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code: Agreement. The word "Agreement" means this Hazardous Substances Agreement, as this Hazardous Substances Agreement may be amended or modified from time to time, together with all exhibits and schedules attached to this Hazardous Substances Agreement from time to time. Collateral. The word "Collateral" means all of Indemnitor's right, title and interest in and to all the Collateral as described in the Collateral Description section of this Agreement. Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto. Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts„costs and expenses payable under the Note or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Indemnitor's obligations or expenses incurred by Lender to enforce Indemnitor's obligations under this Agreement, together with interest on such amounts as provided in this Agreement. Lender. The word "Lender" means American Chartered Bank, its successors and assigns. Occupant. The word "Occupant" means individually and collectively all persons or entities occupying or utilizing the Collateral, whether as owner, tenant, operator or Other occupant. Property. The word "Property" means all of Indemnitor's right, title and interest in and to all the Property as described in the "Collateral Description" section of this Agreement. Real Property. The words "Real Property" mean the real property, interests and rights, as further described in this Agreement. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. EACH PARTY TO THIS AGREEMENT ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT, AND EACH AGREES TO ITS TERMS. NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS AGREEMENT EFFECTIVE. THIS AGREEMENT IS DATED OCTOBER 11, 2005. HAZARDOUS SUBSTANCES AGREEMENT Loan No: 11672601 (Continued) Page 5 BORROWER: SOTOMAYOR ENTERPRISES, LLC • By: �Shirl y S • .. `otorfayor, Manager'of Sotomayor Enterprises, LLC !.►+►- B i3_ri iM1111 .�. 1 Wild- •No a ayor, Man..er of Sotomayor Enterprises, LLC LENDER: AMERICAN CHARTERED BANK X Authorized Signer LIMITED LIABILITY COMPANY ACKNOWLEDGMENT STATE OF SS COUNTY OF • ) On this day of before me, the undersigned Notary Public, personally appeared Shirley Sadjadi-Sotomayor, Manager; Wilde R. Sotomayor, Manager of Sotomayor Enterprises, LLC, and known to me to be members or designated agents of the limited liability company that executed the Hazardous Substances Agreement and acknowledged the Agreement to be the free and voluntary act and deed of the limited liability company, by authority of statute, its articles of organization or its operating agreement, for the uses and purposes therein mentioned, and on oath stated that they are authorized to execute this Agreement and in fact executed the Agreement on behalf of the limited liability company. By Residing at Notary Public in and for the State of My commission expires HAZARDOUS SUBSTANCES AGREEMENT Loan No: 11672601 (Continued) Page 6 LENDER ACKNOWLEDGMENT STATE OF _ 1 1 SS COUNTY OF On this _ day of before me, the undersigned Notary Public, personally appeared and known to me to be the , authorized agent for the Lender that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the said Lender, duly authorized by the Lender through its board of directors or otherwise, for the uses and purposes therein mentioned, and on oath stated that he or she is authorized to execute this said instrument and that the seal affixed is the corporate seal of said Lender. By Residing at Notary Public in and for the State of My commission expires ---- I♦SFR PRO"nag, .1e 5 2,C0005 Cau M✓I..+d Fnan:u.5:41hont.Inc 1997.2005. Ad Ripht,Raluvad. •IL %:ICFI\lPl\G210.FC TR•1256a Pa-IN CHART COMMERCIAL GUARANTY Principal Loan No 1 I Loan Date I Maturity I eau,col( ... A;rc,__ tt#t 1 ,� ) I• 1901864 578.48 �Itttgll References in the shaded area are for Lender's use only and do not limit the applicability of this document to any �o Any item above containing has been omitted due to text length limitations, particular loan or Item. Borrower: Sotomsyor Enterprises.LLC(TIN: 20.1985146) 1366 Angle Tarn Lander: American Chartered Bank West Dundee,IL 60118 1199 E.Higgins Rd. Schaumburg,II. 60173 Guarantor! Shirley Sadjadi-Sotomsyor ISSN: 361-68-6102) (847)517-5400 1366 Angle Tarn West Dundee,IL 60118 AMOUNT OF GUARANTY. The amount of this Guaranty Is Unlimited. CONTINUING UNLIMITED GUARANTY. For good and valuable consideration, Shirley Sediadf-Sotomayor ("Guarantor") absolutely and unconditionally guarantees and promises to pay to American Chartered Bank("Lender")or Its order. In legal tender of the United States of America. the Indebtedness(as that term is defined herein)of Sotomayor Enterprises,LLC("Borrower')to Lender on the terms and conditions set forth in this Guaranty. This Guaranty is a guaranty of payment and not a guaranty of collection. Under this Guaranty, the Nobility of Guarantor is unlimited and the obligations of Guarantor ere continuing. INDEBTEDNESS GUARANTEED. The Indebtedness guaranteed by this Guaranty includes any and all of Borrower's indebtedness to Lender and is used in the most comprehensive sense and means and includes any and all of Borrower's liabilities, obligations and debts to Lender, now existing or hereinafter incurred or created,including,without limitation,all loans,advances,interest,costs,debts,overdraft Indebtedness,credit card indebtedness.lease obligations,other obligations,and liabilities of Borrower,or any of them, and any present or future judgments against Borrower, or any of them; and whether any such Indebtedness is voluntarily or involuntarily incurred,due or not due,absolute or contingent, liquidated or unliquidated, determined or undetermined; whether Borrower may be liable individually or jointly with others, or primarily or secondarily,or as guarantor or surety;whether recovery on the Indebtedness may be or may become barred or unenforceable against Borrower for any reason whatsoever;and whether the Indebtedness arises from transactions which may be voidable on account of infancy,insanity,ultra vires.or otherwise. DURATION OF GUARANTY. This Guaranty will take effect when received by Lender without the necessity of any acceptance by Lender,or any notice to Guarantor or to Borrower.and will continue in lull force until all Indebtedness incurred or contracted before receipt by Lender of any notice of revocation shall have been fully and finally paid and satisfied and all of Guarantor's other obligations under this Guaranty shall have been performed in full. II Guarantor elects to revoke this Guaranty, Guarantor may only do so in writing. Guarantor's written notice of revocation must he mailed to Lender,by certified mail,at Lender's address listed above or such other place as Lender may designate in writing. Written revocation of this Guaranty will apply only to advances or new Indebtedness created after actual receipt by Lender of Guarantor's written revocation. For this purpose and without limitation, the term"new Indebtedness"does not include Indebtedness which at the time of notice of revocation is contingent.unliquidated,undetermined or not due and which later becomes absolute,liquidated,determined or due. This Guaranty will continue to bind Guarantor for all Indebtedness incurred by Borrower or committed by Lender prior to receipt of Guarantor's written notice of revocation,including any extensions,renewals,substitutions or modifications of the Indebtedness. All renewals,extensions, • substitutions, and modifications of the Indebtedness granted after Guarantor's revocation, are contemplated under this Guaranty and, specifically will not be considered to be new Indebtedness. This Guaranty shell bind Guarantor's estate as to Indebtedness created both before and alter Guarantor's death or incapacity, regardless of Lender's actual notice of Guarantor's death. Subject to the foregoing, Guarantor's executor or administrator or other legal representative may terminate this Guaranty in the same manner In which Guarantor might have terminated it and with the same effect. Release of any other guarantor or termination of any other guaranty of the Indebtedness shall not affect the liability of Guarantor under this Guaranty. A revocation Lender receives from any one or more Guarantors shall not affect the liability of any remaining Guarantors under this Guaranty. It is anticipated that fluctuations may occur in the aggregate amount of Indebtedness covered by this Guaranty,and Guarantor specifically acknowledges and agrees that reductions in the amount of Indebtedness,even to zero dollars($0.00),prior to Guarantor's written revocation of this Guaranty shall not constitute a termination of this Guaranty. This Guaranty is binding upon Guarantor and Guarantor's heirs,successors and assigns so long as any of the guaranteed Indebtedness remains unpaid and even though the Indebtedness guaranteed may from time to time be zero dollars i$O.00(. GUARANand without lessening TOR'S AUTHORIZATION TO LENDER- Guarantor authorizes Lender, either before or after any revocation hereof, without notice or Guaranty,from time to one ordmore additional secured or aunseculredntor's ill ans ity dto Borer rower. to lease equipment me:or(the prior goodsAl t revocation as set otherwiseorh above,to mend additional credit to Borrower: WI to alter,compromise,renew,extend.accelerate,or otherwise change one or mo a times the time forto payment or other terms of the Indebtedness or any part of the Indebtedness, including increases and decreases of the rate of interest on the Indebtedness:extensions may be repeated and may be for longer than the original loan term; (Cl to take end hold security for the payment of this Guaranty or the Indebtedness,and exchange,enforce,waive,subordinate,fail or decide not to perfect,end release any such security,with or without the substitution of new collateral; ID) to release,substitute,agree not to sue,or deal with any one or more of Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; (El to determine how, when and what application of payments and credits shall be made on the Indebtedness; (F) to apply such security and direct the order or manner of sale thereof,including without limitation,any nonjudiciaf sale permitted by the terms of the controlling security agreement or deed of trust,as Lender in its discretion may determine; (G1 to sell, transfer, assign or grant participations in all or any part of the Indebtedness;and (HI to assign or transfer this Guaranty in whole or in part. GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A) no representations or agreements of any kind have been made to Guarantor which would limit or qualify in any way the terms of this Guaranty; (8) this Guaranty is executed at Borrower's request and not at the request of Lender; ICI Guarantor has full power,right and authority to enter into this Guaranty; 'DI the provisions of this Guaranty do not conflict with or result in a default under any agreement or other Instrument binding upon Guarantor and do not result in a violation of any law,regulation,court decree or order applicable to Guarantor; (E( Guarantor has not and will not,without the prior written consent of Lender, sell, lease, assign, encumber, hypothecate, transfer, or otherwise dispose of all or substantially all of Guarantor's assets.or any interest therein; IF) upon Lender's request.Guarantor will provide to Lender financial and credit information in form acceptable to Lender,and all such financial information which currently has been,and all future financial information Lender is and will be true and correct in all material respects and fairlyswhich dates be provided financialto information is provided: IGI no material adverse change has occurred nrGuarantor's financial condition ncial since tion the dats of eofathe most recet financial statements provided to Lender and no event has occurred which may materially adversely affect Guarantor's financial condition; (HI no litigation, claim, investigation,administrative proceeding or similar action(including those for unpaid taxes)against Guarantor is pending or threatened; Ill Lender has made no representation to Guarantor as to the creditworthiness of Borrower; and 0) Guarantor has established adequate means of obtaining front Borrower on a continuing basis information regarding Borrower's financial condition. Guarantor agrees to keep adequately informed from such means of any facts, events,or circumstances which might In any way affect Guarantor's risks under this Guaranty, and Guarantor further agrees that, absent a request for information,Lender shall have no obligation to disclose to Guarantor any information or documents acquired by Lender in the course of its relationship with Borrower. GUARANTOR'S FINANCIAL STATEMENTS. Guarantor agrees to furnish Lender with the following: Additional Requirements. Guarantors Personal Financial Statements. Personal Financial Statements of all guarantors are required to be provided annually as requested by Lender. All financial reports required to be provided under this Guaranty shall be prepared in accordance with GAAP,applied on a consistent basis,and certified by Guarantor as being true and correct. GUARANTOR'S WAIVERS. Except as prohibited by applicable law, Guarantor waives any right to require Lender IA) to continue lending money or to extend other credit to Borrower; 1131 to make any presentment,protest,demand,or notice of any kind, including notice of any nonpayment of the Indebtedness or of any nonpayment related to any collateral,or notice of any action or nonaction on the part of Borrower, Lender, any surety,endorser, or other guarantor in connection with the Indebtedness or in connection with the creation of new or additional loans or obligations; ICI to resort for payment or to proceed directly or at once against any person,including Borrower or any other guarantor; (DI. to proceed directly against or exhaust any collateral held by Lender from Borrower, any other guarantor,or any other person; (E) to give notice of the terms, time,and place of any public or private sale of personal ornnerty _ COMMERCIAL GUARANTY Loan No: 11672601 (Continued) Page 2 any other applicable provisions of the Uniform Commercial Code; WI to pursue any other remedy within Lender's power;or (G) to commit any act or omission of any kind.or at any time,with respect to any matter whatsoever. In addition to the waivers set forth herein.if now or hereafter Borrower is or shall become Insolvent end the Indebtedness shall not at all times until paid be fully secured by collateral pledged by Borrower,Guarantor hereby forever waives and gives up In favor of Lender and Borrower,and Lender's and Borrower's respective successors, any claim or right to payment Guarantor may now have or hereafter have or acquire against Borrower, by subrogation or otherwise, so that at no time shell Guarantor be or become a "creditor" of Borrower within the meaning of 11 U.S.C.section 5471b1,or any successor provision of the Federal bankruptcy laws. Guarantor also waives any and all rights or defenses based on suretyship or impairment of collateral including,but not limited to.any rights or defenses arising by reason of (A) any "one action" or "anti-deficiency" law or any other law which may prevent Lender from bringing any action. including a claim for deficiency, against Guarantor, before or after Lender's commencement or completion of any foreclosure action, either judicially or by exercise of a power of sale; IBI any election of remedies by Lender which destroys or otherwise adversely effects Guarantor's subrogation rights or Guarantor's rights to proceed against Borrower for reimbursement, Including without limitation, any loss of rights Guarantor may sutler by reason of any law limiting,qualifying,or discharging the Indebtedness; ICI any disability or other defense of Borrower,of any other guarantor,or of any other person,or by reason of the cessation of Borrower's liability from any cause whatsoever,other than payment in full in legal tender, of the Indebtedness; 1D1 any right to claim discharge of the Indebtedness on the basis of unjustified impairment of any collateral IOr the Indebtedness; IEI any stature of limitations, II at any time any action or suit brought by Lender against Guarantor is commenced, there is outstanding Indebtedness of Borrower to Lender which is not barred by any applicable statute of limitations; or IFI any defenses given to guarantors at law or in equity other than actual payment and performance of the Indebtedness. If payment is made by Borrower, whether voluntarily or otherwise,or by any third party,on the Indebtedness and thereafter Lender is forced to remit the amount of that payment to Borrower's trustee in bankruptcy or to any similar person under any federal or state bankruptcy law or law for the relief of debtors.the Indebtedness shall be considered unpaid for the purpose of the enforcement of this Guaranty. Guarantor further waives and agrees not to assert or claim at any time any deductions to the amount guaranteed under this Guaranty for any claim of setoll. counterclaim, counter demand, recoupment or similar right, whether such claim, demand or right may be asserted by the Borrower,the Guarantor,or both. GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS.•Guarantor warrants and sprees that each of the waivers set forth above Is made with Guarantor's full knowledge of its significance and consequences end that,under the circumstances,the waivers are reasonable and not contrary to public policy or law. If any such waiver is determined to be contrary to any applicable law or public policy,such waiver shell be effective only to the extent permitted by law or public policy. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Guarantor's accounts with Lender (whether checking, savings,or some other account). This includes all accounts Guarantor holds jointly with someone else and all accounts Guarantor may open in the future. However,this does not include any IRA or Keogh accounts,or any trust accounts for which setoff would be prohibited by law. Guarantor authorizes Lender,to the extent permitted by applicable law,to hold these funds if there is a default,end Lender may apply the funds in these accounts to pay what Guarantor owes under the terms of this Guaranty. SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness of Borrower to Lender, whether now existing or hereafter created,shall be superior to any claim that Guarantor may now have or hereafter acquire against Borrower,whether or not Borrower becomes insolvent. Guarantor hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account whatsoever.to any claim that Lender may now or hereafter have against Borrower. In the event of insolvency and consequent liquidation of the assets of Borrower, through bankruptcy, by an assignment for the benefit of creditors, by voluntary liquidation, or otherwise, the assets of Borrower applicable to the payment of the claims of both Lender and Guarantor shall be paid to Lender and shall be first applied by Lender to the Indebtedness of Borrower to Lender. Guarantor does hereby assign to Lender all claims which it may have or acquire against Borrower or against any assignee or trustee in bankruptcy of Borrower;provided however, that such assignment shall be effective only for the purpose of assuring to Lender full payment in legal tender of the Indebtedness. If Lender so requests,any notes or credit agreements now or hereafter evidencing any debts or obligations of Borrower to Guarantor shall be marked with a legend that the same are subject to this Guaranty and shell be delivered to Lender. Guarantor agrees, and Lender is hereby authorized, in the name of Guarantor, from time to time to file financing statements and continuation statements and to execute documents and to take such other actions as Lender deems necessary or appropriate to perfect,preserve and enforce its rights under this Guaranty. CONFESSION OF JUDGMENT. Guarantor hereby irrevocably authorizes and empowers any attorney-at-law to appear in any court of record end to confess judgment against Guarantor for the unpaid amount of this Guaranty as evidenced by an affidavit signed by an officer of Lender setting north the amount then due,attorneys' lees plus costs of suit,and to release all errors,and waive all rights of appeal. If a copy of this Guaranty, verified by an affidavit,shall have been filed in the proceeding,it will not be necessary to file the original as a warrant of attorney. Guarantor waives the right to any stay of execution and the benefit of all exemption laws now.or hereafter In effect. No single exercise of the foregoing warrant and power to confess judgment will be deemed to exhaust the power,whether or not any such exercise shall be held by any court to be invalid,voidable,or void;but the power will continue undiminished and may be exercised from time to time as Lender'may elect until all amounts owing on this Guaranty have been paid in lull. Guarantor hereby waives and releases any and all claims or causes of action which Guarantor might have against any attorney acting under the terms of authority which Guarantor has granted herein arising out of or connected with the confession of judgement hereunder. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty: Amendments. This Guaranty,together with any Related Documents,constitutes the entire understanding and agreement of the parties as to the matters set forth in this Guaranty. No alteration of or amendment to this Guaranty shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Attorneys' Fees;Expenses. Guarantor agrees to pay upon demand all of Lender's costs and expenses,including Lender's attorneys' fees and Lender's legal expenses,incurred in connection with the enforcement of this Guaranty. Lender may hire or pay someone else to help enforce this Guaranty, and Guarantor shall pay the costs end expenses of such enforcement. Costs and expenses include Lender's attorneys' lees and legal expenses whether or not there is a lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings )including efforts to modify or vacate any automatic stay or injunction), appeals,and any anticipated post-judgment collection services. Guarantor also shall pay all court costs and such additional fees as may be directed by the court. Caption Headings. Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define the provisions of this Guaranty. Governing Law. This Guaranty will be governed by federal law applicable to Lender and,to the extent not preempted by federal law,the laws of the State of Illinois without regard to its conflicts of law provisions. Thts Guaranty has been accepted by Lender in the State of Illinois. Choice of Venue. If there is a lawsuit,Guarantor agrees upon Lender's request to submit to the jurisdiction of the courts of Cook County. State of Illinois. Integration. Guarantor further agrees that Guarantor has read and fully understands the terms of this Guaranty; Guarantor has had the opportunity to be advised by Guarantor's attorney with respect to this Guaranty;the Guaranty fully reflects Guarantor's intentions and parol evidence is not required to interpret the terms of this Guaranty. Guarantor hereby indemnifies and holds Lender harmless from all losses, claims,damages,and costs(including Lender's attorneys'fees)suffered or incurred by Lender as a result of any breach by Guarantor of the warranties,representations and agreements of this paragraph. Interpretation. In all cases where there is more than one Borrower or Guarantor,then all words used in this Guaranty in the singular shall Ire deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower named in this Guaranty or when this Guaranty is executed by more than one Guarantor, the words "Borrower" and "Guarantor" respectively shall mean all and any one or more of them. The words"Guarantor," "Borrower,"and"Lender"include the heirs,successors, assigns,and transferees of each of them. If a court finds that any provision of this Guaranty is not valid or should not be enforced,that fact by itself will not mean that the rest of this Guaranty will not be valid or enforced. Therefore, a court will enforce the rest of the provisions of this Guaranty even if a provision of this Guaranty may be found,to be invalid or unenforceable. If any one or more of Borrower or Guarantor are corporations,partnerships,limited liability companies,or similar entities,it is not necessary for Lender to Inquire into the powers of Borrower or Guarantor or of the officers,directors,partners, managers,or other agents acting or purporting to act on their behall,and any indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed under this Guaranty. Notices. Any notice required to be given under this Guaranty shall be given in writing,and,except for revocation notices by Guarantor, shall be effective when actually delivered,when actually received by telefacsimile(unless otherwise required by law),when deposited with a nationally recognized overnight courier,or,if mailed,when deposited in the United States mail,as first class,certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Guaranty. All revocation notices by Guarantor shall be in writing and shall be effective upon delivery to Lender as provided in the section of this Guaranty entitled "DURATION OF GUARANTY." COMMERCIAL GUARANTY Loan No: 11672601 (Continued) Page 3 Any party may change its address for notices under this Guaranty by giving formal written notice to the other parties,specifying that the purpose of the notice is to change the party's address. For notice purposes, Guarantor agrees to keep Lender Informed at all times of Guarantor's current address. Unless otherwise provided or required by law,if there Is more than one Guarantor,any notice given by Lender to any Guarantor is deemed to be notice given to all Guarantors. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Guaranty unless such waiver is given in writing and signed try Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender,nor any course of dealing between Lender and Guarantor,shall constitute a waiver of any of Lender's rights or of any of Guarantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Guaranty,the granting of such consent by Lender in any instance.shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. Successors and Assigns. Subject to any limitations stated in this Guaranty on transfer of Guarantor's Interest, this Guaranty shall be binding upon and inure to the benefit of the parties,their successors and assigns. Waive Jury. Lender and Guarantor hereby waive the right to any jury trial In any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. THE FOLLOWING NOTICE IS REQUIRED BY ILLINOIS LAW: Unless Guarantor provides Lender with evidence of the insurance coverage required by Guarantor's agreement with Lender, Lender may purchase insurance at Guarantor's expense to protect Lender's interests in the collateral. This insurance may, but need not, protect Guarantor's interests. The coverage that Lender purchases may not pay any claim that Guarantor makes or any claim that is made against Guarantor in connection with the collateral. Guarantor may later cancel any Insurance purchased by Lender. but only after providing Lender with evidence that Guarantor has obtained insurance as required by their agreement. If Lender purchases insurance for the collateral. Guarantor will be responsible for the costs of that Insurance, Including interest and any other charges Lender may impose in connection with the placement of the insurance,until the effective date of the cancellation or expiration of the Insurance. The costs of the insurance may be added to Guarantor's total outstanding balance or obligation. The costs of the insurance may be more than the cost of insurance Guarantor may be able to obtain on Guarantor's own. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Guaranty. Unless specifically stated to the contrary,all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural,and the plural shall include the singular,as the context may require. Words and terms not otherwise defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial Code: Borrower. The word"Borrower"means Sotomayor Enterprises,LLC and includes all co-signers and co-makers signing the Note. GAAP. The word"GAAP"means generally accepted accounting principles. Guarantor. The word "Guarantor" means each and every person or entity signing this Guaranty, including without limitation Shirley Sadjarii Sotomayor. Guaranty. The word"Guaranty" means the guaranty from Guarantor to Lender,including without limitation a guaranty of all or part of the Note. Indebtedness. The word 'Indebtedness"means Borrower's indebtedness to Lender as more particularly described in this Guaranty. Lender. The word'Lender"means American Chartered Bank.its successors and assigns. Note. The word "Note" means and includes without limitation all of Borrower's promissory notes and/or credit agreements evidencing Borrower's loan obligations in favor of Lender,together with all renewals of,extensions of,modifications of,refinancings of,consolidations of anti substitutions for promissory notes or credit agreements. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental • agreements, guaranties. security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents,whether now or hereafter existing,executed in connection with the Indebtedness. EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR'S EXECUTION AND DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION TITLED'"DURATION OF GUARANTY". NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY IS DATED OCTOBER 11,2005. • GUARANTOR: • Shirley Sadjarii-Sotol'tayor • .-sek ..• a „as .,.aw,.....,..n- «..use.mos. Al e:ro..n...,..a. •It.:.em.muorc mg".mill AGREEMENT TO PROVIDE INSURANCE Principal Loan Date Maturity Loan No call I Goll . Account Z1�IC9M :`I�ttt �e $200,000.00 l 10-11.2005 I12-11-2010 I 11672601 11)0 1 BB4 References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or Item. Any item above containing has been omitted due to text length limitations. Lender: American Chartered Bank 1 Grantor: SotomayorEnterprises.LLC(TIN: 20-1966146) 1199 E.Higgins Rd. test66AnAnie Tern Schaumburg.IL 60173 West Dundee.l IL 60118 08471 517.6400 INSURANCE REQUIREMENTS. Grantor,Sotomayor Enterprises,LLC i'Grantor"),understands that Insurance coverage Is required In connection with the extending of a loan or the providing of other financial accommodations to Grantor by Lender. These requirements are set forth in the security documents for the loan. The following minimum insurance coverages must be provided on the following described collateral (the 'Collateral"): Collateral: 165 East Chicago Avenue.Elgin,IL 60120.5523. Type: Fire and extended coverage. Amount: Full Insurable Value. Basis: Replacement value. Endorsements: Mortgagee; and lurther stipulating that coverage will not be cancelled or diminished without a minimum of 1 0 days prior written notice to Lender,and without disclaimer of the insurer's liability for failure to give such notice. Deductibles: $1,000.00. Latest Delivery Date: By the loan closing date. INSURANCE COMPANY. Grantor may obtain insurance from any insurance company Grantor may choose that is reasonably acceptable to Lender. Grantor understands that credit may not be denied solely because insurance was not purchased through Lender. FLOOD INSURANCE. Flood Insurance for the Collateral securing this loan is described as follows: Real Estate at 165 East Chicago Avenue,Elgin.IL 60120.5523. The Collateral securing this loan is not currently located in an area identified as having special flood hazards. Therefore,no special flood hazard insurance is necessary at this time. Should the Collateral at any time be deemed to be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance.it available.within 45 days after notice is given by Lender that the Collateral is located in a special flood hazard area,for the full unpaid principal balance of the loan and any prior liens on the property securing the loan,up to the maximum policy limits set under the National Flood Insurance Program. or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Flood insurance may be purchased under the National Flood Insurance Program or from private insurers. AM BEST RATING.Lender defines a reasonably acceptable insurance company as any insurance company that is"AM Best"rated B+ or better. FAILUREPROVIDE INSURANCE. e wit Grantor tcrt , stated nsures vdbo ,with an effectve dae of October 11, 2005 or earlier. UNLESS GRANTORPROV DES LENDER WITH EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY GRANTOR'S AGREEMENT WITH LENDER, LENDER MAY PURCHASE INSURANCE AT GRANTOR'S EXPENSE TS IN THE GRANTOR'S NTERESTS.OTHE OCO ERAGEDTHAT LENDER S COLLATERAL. PURCHASES MAY NOT PAY ANY CLAIM THAT GRANTOR MAKES,OR ANY CLAIM THAT IS MADE AGAINST GRANTOR IN CONNECTION WITH THE COLLATERAL. GRANTOR MAY LATER CANCEL ANY INSURANCE PURCHASED BY LENDER, BUT ONLY AFTER PROVIDING LENDER WITH EVIDENCE THAT GRANTOR HAS OBTAINED INSURANCE AS REUIREDCOSTS OFBTH TEI INSURANCE, INCLUDING RIN ERESTS AND NANY AOTHER CHARGES COLLATERAL,LENDER MAY nIMPO ITOR MPOSE INLL CONNECTION RESPONSIBLEE PURCHAES CONNECTIONWITH THE PLACEMENT OF THE INSURANCE,UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE MAY BE ADDED TO GRANTOR'S TOTAL OUTSTANDING BALANCE OR OBLIGATION. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF INSURANCE GRANTOR MAY BE ABLE TO OBTAIN ON GRANTOR'S OWN. IN ADDITION,THE INSURANCE MAY NOT PROVIDE ANY PUBLIC LIABILITY OR PROPERTY DAMAGE INDEMNIFICATION AND MAY NOT MEET THE REQUIREMENTS OF ANY FINANCIAL RESPONSIBILITY LAWS. AUTHORIZATION. For purposes of insurance coverage on the CollattelGr�horhtor auter horizes ding Lenderh Collateral,to pvie to the loyanp (i or ncluding al insurance agent or company) all information Lender deems appropriate, accommodations,or both. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT TO PROVIDE INSURANCE AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED OCTOBER 11.2005. GRANTOR: • SOTQ)1AY,OR NTERPRISES,LLC • � By: By: Mans er of Sotomayor Shirley Sadjrtli-Sotomayor, ana W e oto r of Sotomayor Enterp�. Enterprises. LC FOR LENDER USE ONLY INSURANCE VERIFICATION PHONE DATE: __..----- — AGENT'S NAME: AGENCY: _ INSURANCE COMPANY: POLICY NUMBER: EFFECTIVE DATES: COMMENTS: • CHARTER D ANK.� ALTA LOAN AND EXTENDED COVERAGE POLICY STATEMENT Principal Loan Date Maturity Loan No Call!Coil ACPOW1t: y���+ya S200,000.00 10-11-2005 12-11.2010 11672601 160l88A 51928 #Ylf'ia References in the shaded area ere for Lender's use only and do not limit the applicability of this document to any particular loan or Item. Any item above containing.......has been omitted due to text length limitations. Grantor: Sotomeyor Enterprises.LLC(TIN: 20-1985146) Lender: American Chartered Bank 1366 Angle Tern 1199 E.Higgins Rd. West Dundee,IL 60118 Schaumburg,IL 60173 (8471 517-5400 POLICY COMMITMENT NUMBER: LOAN NUMBER: 11672601 With respect to the land described in the above commitment number, the signatories herein make the following statements for the purpose of inducing the following named title insurance company to issue the subject title policies: Name of Title Insurance Company: Statement Of Seller(s) • Tire selierlsl certify that for the past two years no building permit has Issued nor have any improvements to the subject land been made which could result in an increase in the assessed tax valuation of the subject land. • Statement of Seller(s)end Mortgagor(s) The sellerlsl and mortgagorlsl certify that. to the best of their knowledge and belief, no contracts for the furnishing of any labor or material to the land or the improvements thereon,and no security agreements or leases in respect to any goods or chattels that have or ere to become attached to the land or any improvements thereof as fixtures,have been given or are outstanding that have not been fully performed and satisfied: and that no unrecorded leases to which the land may be subject are for more that a three-year term or contain an option to purchase.right of renewal or other unusual provisions,except as follows(if none,state"none";use reverse side If necessary): Statement Of Mortgegorls) The mortgagorlsl certifies that the mortgage and the principal obligations it secures are good end valid and Tree from all defenses;that any person purchasing the mortgage and the obligations it secures,or otherwise acquiring any interest therein, may do so in reliance upon the truth of the matters herein recited;and that this certification is made for the purpose of better enabling the holder or holders,from time to time, of the above mortgage and obligations to sell, pledge or otherwise dispose of the same freely at any time, and to insure the purchasers or pledgees thereof against any defenses thereto by the mortgagor or the mortgagor's heirs,personal representative or assigns. Date: • Individual Sellerls) Individual Mortgagor(s) (Seal) (Seal) (Seal) (Seal) • Corporate Seller(s) Corporate Mortgegorls) IN WITNESS WHEREOF has caused these IN WITNESS WHEREOF _ has caused these presents to be signed by its President and presents to be signed by its _ President and attested by its Secretary under its corporate attested by its Secretary under its corporate seal on the al date _ seal on the above date. BY: A BY: Presidw5 I"\Ci(la !( President • ATTEST: L ATTEST: - - ` seroeruy secretary Lender's Disbursement Statement The undersigned hereby certifies that the proceeds of the loan secured by the mortgage to be Insured under the loan policy to be issued pursuant to the above commitment number were fully disbursed to or on the order of the mortgagor on ;and,to the hest knowledge and belief of the undersigned, the proceeds are not to be used to finance the making of future improvements or repairs on the land. Date: Signature: - ,sr+r+0,,.a..+. ..s it N COI C..n.w.e r.,.,,-,Sir,,...r•,. ssr.lees. •r+y.,."...,.r. -K+.eCi5LKrGAO.ii re ins,M Ir • • • CUAAR E D liN ALTA LOAN AND EXTENDED COVERAGE POLICY STATEMENT Principal Loan Date Maturity Loan No • Cill/Cell ACCpuYlt fitCd� C r I�Ilt�a(6 5200,000.00 10-11-2005 12.11-2010 11672601 19A f 864 References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or Item. Any item above containing.......has been omitted due to text length limitations. Grantor: Sotomayor Enterprises,LLC(TIN: 20.1985146) Lender: American Chartered Bank 1366 Angle Tarn 1199 E.Higgins Rd. West Dundee,IL 60118 Schaumburg,IL 80173 (847)617.5400 POLICY COMMITMENT NUMBER: LOAN NUMBER: 11672601 With respect to the land described in the above commitment number, the signatories herein make the following statements for the purpose of inducing the following named title insurance company to issue the subject title policies: Name of Title Insurance Company: Statement Of Sellers) The sellerlsl certify that for the past two years no building permit has issued nor have any improvements to the subject land been made which could result in an increase in the assessed tax valuation of the subject land. Statement of Seller(s)end Mortgagor(s) The sellerlsl and mortgagorlsl certify that, to the best of their knowledge end belief, no contracts for the furnishing of any labor or material to the land or the improvements thereon, and no security agreements or leases In respect to any goods or chattels that have or are to become attached to the land or any improvements thereof as fixtures,have been given or are outstanding that have not been fully performed and satisfied; and that no unrecorded leases to which the land may be subject are for more that a three-year term or contain an option to purchase.right of renewal or other unusual provisions,except as lollows(if none,state"none";use reverse side if necessary): Statement Of Mortgagor(s) The mortgagorlsl certifies that the mortgage and the principal obligations it secures are good and valid and free from all defenses;that any person purchasing the mortgage and the obligations it secures,or otherwise acquiring any interest therein,may do so in reliance upon the truth of the matters herein recited;and that this certification is made for the purpose of better enabling the holder or holders,from time to time, of the above mortgage and obligations to sell, pledge or otherwise dispose of the same freely at any time, end to insure the purchasers or pledgees thereol against any defenses thereto by the mortgagor or the mortgagor's heirs,personal representative or assigns. Date: Individual Seller(s) Individual Mortgagor(s) (Seal) (Seal) (Seat) (Seal) Corporate Seller(s) Corporate Mortgagor(s) IN WITNESS WHEREOF has caused these IN WITNESS WHEREOF has caused these presents to he signed by its _ President and presents to be signed by its President and attested by its Secretary under its corporate attested by its Secretary under its corporate seal on t ov date. seal on the above date. 8Y _ 1 BY: \ President ATTEST: ATTEST: —-- — Stcreiry_ secretary ivL'Uay..V, Lender's Disbursement Statement The undersigned hereby certifies that the proceeds of the loan secured by the mortgage to be insured under the loan policy to be issued pursuant to the above commitment number were fully disbursed to or on the order of the mortgagor on ;and,to the best knowledge and belief of the undersigned, the proceeds are not to be used to finance the making of future improvements or repairs on the land. Date: Signature: • 1 HHAMERIC CDANK, COMMERCIAL GUARANTY Principal Loan Date Maturity Loan No Call f Coll Account Officer Initiate 190 t 864 51928 MFR' Reterences in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or Item. Any item above containing......ties been omitted due to text length limitations. Borrower: Sotomayor Enterprises.LLC(TIN: 20.19851461 Lender: American Chartered Bank 1366 Angle Tarn 1199 E.Higgins Rd. ' West Dundee,IL 60118 Schaumburg,IL 60173 • 1847)517-6400 Guarantor: Wilds R.Sotomayor ISSN; 214-11.40741 1366 Angle Tarn West Dundee,IL 60118 AMOUNT OF GUARANTY. The amount of this Guaranty Is Unlimited. CONTINUING UNLIMITED GUARANTY. For good and valuable consideration,Wilde R.Sotomayor("Guarantor")absolutely end unconditionally guarantees and promises to pay to American Chartered Bank ("Lender ) or its order, In legal tender of the United States of America, the Indebtedness las that term Is defined herein)of Sotomayor Enterprises,LLC("Borrower")to Lander on the terms and conditions set forth In this Guaranty. This Guaranty is a guaranty of payment and not a guaranty of collection. Under this Guaranty.the liability of Guarantor is unlimited and the obligations of Guarantor are continuing. INDEBTEDNESS GUARANTEED. The Indebtedness guaranteed by this Guaranty includes any and all of Borrower's Indebtedness to Lender and is used in the most comprehensive sense and means and includes any and all of Borrower's liabilities,obligations and debts to Lender, now existing or hereinafter incurred or created.including,without limitation,all loans,advances,interest,costs,debts,overdraft indebtedness,credit card indebtedness, lease obligations,other obligations,and liabilities of Borrower,or any of them,and any present or future judgments against Borrower. or any of them; and whether any such Indebtedness is voluntarily or involuntarily incurred, due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined; whether Borrower may be liable individually or jointly with others, or primarily or secondarily,or as guarantor or surety; whether recovery on the Indebtedness may be or may become barred or unenforceable against Borrower for any reason whatsoever;and whether the Indebtedness arises Iron transactions which may be voidable on account of infancy,insanity,ultra vires.or otherwise. DURATION OF GUARANTY. This Guaranty will take effect when received by Lender without the necessity of any acceptance by Lender,or any notice to Guarantor or to Borrower, and will continue in full force until all Indebtedness incurred or contracted before receipt by Lender of any notice of revocation shall have been fully and finally paid and satisfied and all of Guarantor's other obligations under this Guaranty shall have been performed in lull. If Guarantor elects to revoke this Guaranty, Guarantor may only do so in writing. Guarantor's written notice of revocation must be mailed to Lender,by certified mail,at Lender's address listed above or such other place as Lender may designate in writing. Written revocation of this Guaranty will apply only to advances or new Indebtedness created after actual receipt by Lender of Guarantor's written revocation. For this purpose and without limitation,the term"new Indebtedness"does not include Indebtedness which at the time of notice of revocation is contingent.unliquidated,undetermined or not due and which later becomes absolute,liquidated,determined or due. This Guaranty will continue to bind Guarantor for all Indebtedness incurred by Borrower or committed by Lender prior to receipt of Guarantor's written notice of revocation,including any extensions,renewals,substitutions or modifications of the Indebtedness. All renewals,extensions, substitutions. and modifications of the Indebtedness granted after Guarantor's revocation, are contemplated under this Guaranty and, specifically will not be considered to be new Indebtedness. This Guaranty shall bind Guarantor's estate as to Indebtedness created both before and alter Guarantor's death or incapacity, regardless of Lender's actual notice of Guarantor's death. Subject to the foregoing, Guarantor's executor or administrator or other legal representative may terminate this Guaranty in the same manner In which Guarantor might have terminated it and with the same effect. Release of any other guarantor or termination of any other guaranty of the Indebtedness shall not affect the liability of Guarantor under this Guaranty. A revocation Lender receives from any one or more Guarantors shall not affect the liability of any remaining Guarantors under this Guaranty. It is anticipated that fluctuations may occur In the aggregate amount of Indebtedness covered by this Guaranty,and Guarantor specifically acknowledges end agrees that reductions in the amount of Indebtedness,even to zero dollars($0.00),prior to Guarantor's written revocation of this Guaranty shall not constitute a termination of this Guaranty. This Guaranty Is binding upon Guarantor and Guarantor's heirs,successors and assigns so long as any of the guaranteed Indebtedness remains unpaid and even though the Indebtedness guaranteed may from time to time be zero dollars(50.00). GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before or after any revocation hereof, without notice or demand and without lessening Guarantor's liability under this Guaranty,from time to time: IA) prior to revocation as set forth above,to make one or more additional secured or unsecured loans to Borrower, to lease equipment or other goods to Borrower, or otherwise to extend additional credit to Borrower; 1131 to alter,compromise,renew,extend,accelerate,or otherwise change one or more times the time for payment or other terms of the Indebtedness or any part of the Indebtedness, including increases and decreases of the rate of interest on the Indebtedness;extensions may be repeated and may be for longer than the original loan term; (Cl to take end hold security for the payment of this Guaranty or the Indebtedness,and exchange,enforce,waive,subordinate,fail or decide not to perfect,and release any such security,with or without the substitution of new collateral; ID) to release.substitute,agree not to sue,or deal with any one or more of Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; (El to determine how, when and what application of payments and credits shall be made on the Indebtedness; IF) to apply such security and direct the order or manner of sale thereof,including without limitation,any nonjudicial sale permitted by the terms of the controlling security agreement or deed of trust,as Lender in its discretion may determine: IG1 to sell. transfer, assign or grant participations In all or any part of the Indebtedness; and IHI to assign or transfer this Guaranty in whole or In part. GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that IA) no representations or agreements of any kind have been made to Guarantor which would limit or qualify in any way the terms of this Guaranty; (B) this Guaranty Is executed at Borrower's request and not at the request of Lender; ICI Guarantor-has full power,right and authority to enter Into this Guaranty; MI the provisions of this Guaranty do not conflict with or result in a default under any agreement or other instrument binding upon Guarantor and do not result in a violation of any law,regulation,court decree or order applicable to Guarantor; 1E) Guarantor has not and will not,without the prior written consent of Lender, sell, lease, assign, encumber, hypothecate, transfer, or otherwise dispose of all or substantially all of Guarantor's assets,or any interest therein; IFI upon Lender's request,Guarantor will provide to Lender financial and credit information in form acceptable to Lender, and all such financial information which currently has been,and all future financial information which will be provided to Lender is and will be true and correct in all material respects and fairly present Guarantor's financial condition as of the dates the financial information is provided; (GI no material adverse change has occurred in Guarantor's financial condition since the date of the most recent financial statements provided to Lender and no event has occurred which may materially adversely affect Guarantor's financial condition; IH) no litigation,claim, investigation, administrative proceeding or similar action(including those for unpaid taxes) against Guarantor Is pending or threatened: Ill Lender has made no representation to Guarantor as to the creditworthiness of Borrower; and WI Guarantor has established adequate means of obtaining from Borrower on a continuing basis information regarding Borrower's financial condition. Guarantor agrees to keep adequately informed from such means of any facts,events,or circumstances which might in-any way affect Guarantor's risks under this Guaranty. and Guarantor further agrees that, absent a request for information, Lender shall have no obligation to disclose to Guarantor any information or documents acquired by Lender in the course of Its relationship with Borrower. GUARANTOR'S FINANCIAL STATEMENTS. Guarantor agrees to furnish Lender with the following: Additional Requirements. • Guarantors Personal Financial Statements. Personal Financial Statements of all guarantors are required to be provided annually as requested by Lender. All financial reports required to be provided under this Guaranty shall be prepared in accordance with GAAP,applied on a consistent basis,and certified by Guarantor as being true and correct. GUARANTOR'S WAIVERS. Except as prohibited by applicable law, Guarantor waives any right to require Lender (Al to continue lending money or to extend other credit to Borrower; 161 to make any presentment,protest,demand,or notice of any kind, including notice of any nonpayment of the Indebtedness or of any nonpayment related to any collateral,or notice of any action or nonaction on the part of Borrower, Lender, any surety, endorser, or other guarantor in connection with the Indebtedness or in connection with the creation of new oradditional loans or obligations; ICI to resort for payment or to proceed directly or at once against any person,including Borrower or any other guarantor; IDI to proceed directly against or exhaust any collateral held by Lender from Borrower,any other guarantor,or any other person; (El to give notice of the terms, lime,and place of any public or private sale of personal property security held by Lender from Borrower or to comply with COMMERCIAL GUARANTY Loan No: 11672601 (Continued) Page 2 any other applicable provisions of the Uniform Commercial Code: (F) to pursue any other remedy within Lender's power;or (G) to commit any act or omission of any kind,or at any time,with respect to any matter whatsoever. In addition to the waivers set forth herein.if now or hereafter Borrower is or shall become Insolvent and the Indebtedness shell not at all times until paid be fully secured by collateral pledged by Borrower.Guarantor hereby forever waives end gives up in favor of Lender and Borrower,and Lender's and Borrower's respective successors, any claim or right to payment Guarantor may now have or hereafter have or acquire against Borrower, by subrogation or otherwise, so that at no time shall Guarantor be or become a "creditor" of Borrower within the meaning of 11 U.S.C.section 5471b1.or any successor provision of the Federal bankruptcy laws. Guarantor also waives any and all rights or defenses based on suretyship or impairment of collateral including,but not limited to,any rights or defenses arising by reason of IA) any "one action" or "anti-deficiency" law or any other law which may prevent Lender from bringing any action, including a claim for deficiency, against Guarantor, before or alter Lender's commencement or completion of any foreclosure action, either judicially or by exercise of a power of sale; IBI any election of remedies by Lender which destroys or otherwise adversely affects Guarantor's subrogation rights or Guarantor's rights to proceed against Borrower for reimbursement, including without limitation, any loss of rights Guarantor may suffer by reason of any law limiting.qualifying,or discharging the Indebtedness; ICI any disability or other defense of Borrower,of any other guarantor,or of any other person,or by reason of the cessation of Borrower's liability from any cause whatsoever,other than payment in lull in legal lender, of the Indebtedness; (DI any right to claim discharge of the indebtedness on the basis of unjustified impairment of any collateral for the Indebtedness; (El any statute of limitations, if at any time any action or suit brought by Lender against Guarantor is commenced, there is outstanding Indebtedness of Borrower to Lender which Is not barred by any applicable statute of limitations; or IFI any defenses given to guarantors at law or in equity other than actual payment and performance of the Indebtedness. If payment Is made by Borrower, whether voluntarily or otherwise, or by any third party, on the Indebtedness and thereafter Lender Is forced to remit the amount of that payment to Borrower's trustee in bankruptcy or to any similar person under any federal or state bankruptcy law or law for the relief of debtors,the Indebtedness shall be considered unpaid for the purpose of the enforcement of this Guaranty. Guarantor further waives and agrees not to assert or claim at any lime any deductions to the amount guaranteed under this Guaranty for any claim of setoll. counterclaim, counter demand, recoupment or similar right, whether such claim, demand or right may be asserted by the Borrower,the Guarantor,or both. GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the waivers set forth above is made with Guarantor's lull knowledge of its significance and consequences and that,under the circumstances,the waivers are reasonable and not contrary to public policy or law. II any such waiver is determined to be contrary to any applicable law or public policy,such waiver shall be effective only to the extent permitted by law or public policy. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Guarantor's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Guarantor holds jointly with someone else end all accounts Guarantor may open in the future. However,this does not include any IRA or Keogh accounts,or any trust accounts for which setoff would be prohibited by law. Guarantor authorizes lender.to the extent permitted by applicable law,to hold these funds if there is a default,and Lender may apply the funds in these accounts 10 pay what Guarantor owes under the terms of this Guaranty. SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness of Borrower to Lender, whether now existing or hereafter created,shall be superior to any claim that Guarantor may now have or hereafter acquire against Borrower,whether or not Borrower becomes insolvent. Guarantor hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account whatsoever,to any claim that Lender may now or hereafter have against Borrower. In the event of insolvency and consequent liquidation of the assets of Borrower, through bankruptcy, by an assignment for the benefit of creditors, by voluntary liquidation, or otherwise, the assets of Borrower applicable to the payment of the claims of both Lender and Guarantor shall be paid to Lender and shall be first applied by Lender to the indebtedness of Borrower to Lender. Guarantor does hereby assign to Lender all claims which it may have or acquire against Borrower or against any assignee or trustee in bankruptcy of Borrower;provided however, that such assignment shall be effective only for the purpose of assuring to Lender lull payment in legal tender of the Indebtedness- If Lender so requests,any notes or credit agreements now or hereafter evidencing any debts or obligations of Borrower to Guarantor shall be marked with a legend that the same are subject to this Guaranty and shall be delivered to Lender. Guarantor agrees, and Lender is hereby authorized, in the name of Guarantor, from time to time to file financing statements and continuation statements and to execute documents and to take such other actions as Lender deems necessary or appropriate to perfect,preserve and enforce its rights under this Guaranty. CONFESSION OF JUDGMENT. Guarantor hereby irrevocably authorizes and empowers any attorney-at-law to appear in any court of record and to confess judgment against Guarantor for the unpaid amount of this Guaranty as evidenced by an affidavit signed by an officer of Lender setting forth the amount then due:attorneys' fees plus costs of suit.and to release all errors,and waive all rights of appeal. If a copy of this Guaranty, verified by an affidavit,shall.have been filed in the proceeding,it will not be necessary to file the original as a warrant of attorney. Guarantor waives the right to any stay of execution and the benefit of all exemption laws now or hereafter in effect. No single exercise of the foregoing warrant and power to confess judgment will be deemed to exhaust the power,whether or not any such exercise shall be held by any court to be invalid,voidable,or void;but the power will continue undiminished and may be exercised from time to time as Lender may elect until all amounts owing on this Guaranty have been paid in full. Guarantor hereby waives and releases any and all claims or causes of action which Guarantor might have against any attorney acting under the terms of authority which Guarantor has granted herein arising out of or connected with the confession of judgement hereunder. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty: • Amendments. This Guaranty, together with any Related Documents,constitutes the entire understanding and agreement of the parties as to the matters set forth in this Guaranty. No alteration of or amendment to this Guaranty shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Attorneys' Fees;Expenses. Guarantor agrees to pay upon demand all of Lender's costs and expenses,including Lender's attorneys' fees and Lender's legal expenses,incurred in connection with the enforcement of this Guaranty. Lender may hire or pay someone else to help enforce this Guaranty, and Guarantor shall pay the costs and expenses of such enforcement. Costs and expenses include Lender's attorneys' lees and legal expenses whether or not there is a lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings(including efforts to modify or vacate any automatic stay or injunction),appeals,and any anticipated post-judgment collection services. Guarantor also shall pay all court costs and such additional fees as may be directed by the court. • Caption Headings. Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define the provisions of this Guaranty. • Governing Law. This Guaranty will be governed by federal law applicable to Lender and,to the extent not preempted by federal law,the laws of the State of Illinois without regard to its conflicts of law provisions. This Guaranty has been accepted by Lender in the State of Illinois. Choice of Venire. If there is a lawsuit.Guarantor agrees upon Lender's request to submit to the.jurisdiction of the courts of Cook County, Slate of Illinois. Integration. Guarantor further agrees that Guarantor has read and fully understands the terms of this Guaranty; Guarantor has had the opportunity to be advised by Guarantor's attorney with respect to this Guaranty;the Guaranty fully reflects Guarantor's intentions and perot • evidence is not required to interpret the terms of this Guaranty. Guarantor hereby indemnifies and holds Lender harmless from all losses, claims,damages,and costs(including Lender's attorneys'fees)suffered or incurred by Lender as a result of any breach by Guarantor of the warranties,representations and agreements of This paragraph. Interpretation. In all cases where there is more than one Borrower or Guarantor,then ell words used in this Guaranty in the singular shall be deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower named in this Guaranty or when this Guaranty is executed by more than one Guarantor, the words "Borrower" and "Guarantor" respectively shall mean all and any one or more of them. The words"Guarantor," "Borrower,"and"Lender"include the heirs,successors, assigns.and transferees of each of them. If a court-finds that any provision of this Guaranty is not valid or should not be enforced,that fact by itself will not mean that the rest of this Guaranty will not be valid or enforced. Therefore, a court will enforce the rest of the provisions of this Guaranty even if a provision of this Guaranty may be found to be Invalid or unenforceable. If any one or more of Borrower or Guarantor are corporations,partnerships,limited liability companies,or similar entities,it is not necessary for Lender to inquire into the powers of Borrower or Guarantor or of the officers,directors, partners,managers,or other agents acting or purporting to act'on their behalf,and any indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed under this Guaranty. • Notices. Any notice required to be given under this Guaranty shall be given in writing,end,except for revocation notices by Guarantor, shall be effective when actually delivered,when actually received by tetefecsimile(unless otherwise required by law),when deposited with a nationally recognized overnight courier,or,if mailed,when deposited in the United States mail,as first class,certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Guaranty. All revocation notices by Guarantor shall be in • writing and shall be effective upon delivery to Lender as provided in the section of this Guaranty entitled "DURATION OF GUARANTY." Loan No: 71672601 COMMERCIAL GUARANTY (Continued) Page 3 purposeny rtof the ny may toticeeIS to change its address fothe party's address. For arnott cey giving formal written notice to the other parties, specifying that the Guarantor's current address. Unless otherwise provided or required by law,If there Is moreethnone Guarantor,any notice givenurposes, Guarantor s to keep Lender Informed atibylLender to any Guarantor is deemed to be notice given to all Guarantors. of • No Waiver by Lender. Lender shall not he deemed to have waived any rights under this Guaranty unless such waiver Is given In writing and signed by Lender. No delay or omission on the part of Lender In exercising any right shell operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a waiver of Lender's right otherwise to demand • • • strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender and Guarantor,shall constitute a waiver of any of Lender's rights or of any of Guarantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Guaranty,the granting of such consent by Lender in any Instance shall not constitute transactions. sole consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in rho sole discretion of Lender. • Successors and Assigns. Subject to any limitations stated in this Guaranty on transfer of Guarantor's interest, this Guaranty shall be • binding upon and inure to the benefit of the parties,their successors and assigns. Waive Jury. Lender and Guarantor hereby waive the right to any jury trial In any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. THE FOLLOWING NOTICE IS REQUIRED BY ILLINOIS LAW: Unless Guarantor provides Lender with evidence of the Insurance coverage required by Guarantor's agreement with Lender, Lender may purchase insurance at Guarantor's expense to protect al. This insurance may. but need not, protect Guarantor's interests. The coverage that Lander purchases maynot makes or any claim that is made against Guarantor in connection with the collateral. Guarantor may cancel rany Insurance purchased by Lender, but only after providing Lender with evidence that Guarantor has obtained insurance as required by pay their any agreement.e thatf Guarantorender purchases Insurance for the collateral, Guarantor will be responsible for the costs of that Insurance, including Interest end any other charges Lender may impose in connection with the placement of the insurance,until the effective date of the cancellation or expiration of the Insurance The costs of the insurance may be added to Guarantor's total outstanding balance or obligation. The costs of the insurance may be more than the cost of insurance Guarantor may be able to obtain on Guarantor's own. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Guaranty. stated to the contrary.all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural,and the plural shall include the singular,as the context may require. Words and terms not otherwise defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial Code: Borrower. The lord"Borrower"means Sotomayor Enterprises,LLC and includes all co-signers and co-makers signing the Note. GAAP. The wont"GAAP"means generally accepted accounting principles. Guarantor. The word "Guarantor' means each and every person or entity signing this Guaranty, including without limitation Wilde R. Sotomayor. Guaranty. The word 'Guaranty" means the guaranty from Guarantor to Lender,including without limitation a G guaranty of all or part of the Indebtedness. The word"Indebtedness"means Borrower's indebtedness to Lender as more particularly described in this Guaranty. Lender. The vtord"Lender"means American Chartered Bank,its successors and assigns. Note. The word "Note' means and includes without limitation all of Borrower's promissory notes and/or credit agreements evidencing Borrower's loan obligations in favor of Lender,together with all renewals of,extensions of,modifications of,refinancings of,consolidations of and substitutions for promissory notes or credit agreements. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements. guaranties. security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents,whether now or hereafter existing,executed in connection with the Indebtedness. EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR'S EXECUTION AND DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION TITLED "DURATION OF GUARANTY". NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY IS DATED OCTOBER 11.2005. GUARANTOR: X Wilde So r _ rasl•Ea�r"'r"'••,>ta CAI u5 Car.rra,rarn.nnw>akwane.4.a r»a.a.. •a'N'r lrer�w tt xACRelR1Et0.EC TR n>Ee 11r.11 AAIERICAN C HA RTE b RED 41, DISBURSEMENT REQUEST AND AUTHORIZATION Principal Loan Date Maturity Loan No .:Graf Coll ntdtg'le 5200,000.00 10-11-2005 12-11-2010 11672601 180180.' S�98 M References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or Item, Any item above containing.......has been omitted due to text length limitations. Borrower: Sotomayor Enterprises,LLC(TIN: 20.1985146) Lender: American Chartered Bank 1366 Angle Tarn 1199 E.Higgins Rd. West Dundee,IL 60118 Schaumburg,IL 80173 (847)617-5400 LOAN TYPE. This is a Fixed Rate 16.500%initial rate)Nondisclosable Loan to a Limited Liability Company for 9200,000.00 due on December 11. 2010. PRIMARY PURPOSE OF LOAN. The primary purpose of this loan is for: ❑Personal.Family,or Household Purposes or Personal Investment. ®Business. SPECIFIC PURPOSE. The specific purpose of this loan is: Refinance of commercial building. FLOOD INSURANCE. As reflected on Flood Map No. 17089C0166F dated 12-20-2002, for the community of City of Elgin, the property that will secure the loan is not located in an area that has been identified by the Director of the Federal Emergency Management Agency as en area having special flood hazards. Therefore.although flood insurance may be available for the property,no special flood hazard insurance protecting property not located in an area having special flood hazards is required by law for this loan at this time. DISBURSEMENT INSTRUCTIONS. Borrower understands that no loan proceeds will be disbursed until all of Lender's conditions for making the loan have been satisfied. Please disburse the loan proceeds of S200,000.00 as follows: Other Disbursements: S 197,035.00 $197,035.00 Solomayor Enterprises,LLC • Other Charges Financed: $2,383.00 $1,800.00 Appraisal Fee to Robert E.Kenney SRA $500.00 Title Insurance to Chicago Title Insurance Company $83.00 Recording Fees to Chicago Title insurance Company Total Financed Prepaid Finance Charges: $582.00 $500.00 Documentation Fee to American Chartered Bank $1 3.00 Life of Loan Flood Determination to LSI Flood Services $69.00 Tax Monitoring Fee to LandAmerica Note Principal: S200,000.00 FINANCIAL CONDITION. BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND WARRANTS TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND THAT THERE HAS BEEN NO MATERIAL ADVERSE CHANGE IN BORROWER'S FINANCIAL CONDITION AS DISCLOSED IN BORROWER'S MOST RECENT FINANCIAL STATEMENT TO LENDER. THIS AUTHORIZATION IS DATED OCTOBER 11,2005. BORROWER: SOTOMAY RANPRISES LLC ` By: t '' �- By: Shir ey adjadi-Sotomayor, Manager."of S mayor Wilde R aria of `Sotomayor • Enterprises,LLC Enterprise , 1 SOTOMAYOR ENTERPRISES, LLC 100 E. Chicago Street, Suite 605 Elgin, Illinois 60120 (847) 622-2429 October 26, 2005 Mr. Ray Moller Director of Economic Development CITY OF ELGIN 150 Dexter Court Elgin, Illinois 60120 RE: Center City Building Improvement Loan Application 169 E. Chicago Street Dear Mr. Moller: Sotomayor Enterprises respectfully requests the City of Elgin to grant its application for the Center City Special Business Loan Program. Specifically, Sotomayor Enterprises has obtained a $200,000 loan from American Chartered Bank to remodel the interior of the above-referenced property and would like to obtain the generous assistance of the City of Elgin pursuant to its program. The finished project will be home to a law office on the second floor and a Latin/Caribbean restaurant on the first floor. In support of this request, we have enclosed the following: 1. Loan Application 2. Loan.Documents from American Chartered Bank. Although the program guidelines indicate that only a loan proposal is required, our bank issued this loan quickly based on our history with them and personal financial situation. 3. 2004 Tax Returns for Shirley and Wilde Sotomayor. Inasmuch as Sotomayor Enterprises was only recently created in December 2004, solely to administer the building ownership and improvements (for now), and to the fact that it is a subchapter S corporation, we have included our personal tax returns. 4. Building Appraisal 5. Contractor Estimates I Ji Thank you for your favorable consideration of our request. We are quite excited about our investment in Elgin's future and look forward to working with the city. Sincerely, 1 l Shirley Sadj ' Soto ayor Loan Amount Requested: ;2CUJZ-01) Total Project Cost: $2CID,C)C42I3- Company Name: SJCAAANO( . E LU Address: 169 uvuwiso , , (,0\2b . Phone: Casa 1 Owner' s Name (s) : 6h%rhl e n,J rUMAv'U(2- k -11 we ,,�� . t 1 Type of Business : 3 ,1c b,.ic44-p M7)-en k bL-c-1--ta-k-Af Purpose of Loan: to(d n nke yen,( )aw 6 e 2 A AA-05Ol , duoi-at atAk 0-11 90j5C51 Does this loan represent an addition o a loan previously approved for this project? YES 4 NO If yes, please indicate original amount, date approved and total loan amount with proposed increment. N I Original loan approved: $ Date Approved: Total loan with proposed increment: $ BREAKDOWN OF PROJECT AMOUNT CONTRACTOR DESCRIPTION OF WORK 1 . $ CF'°1 2 K M f412C e at .t F l c. 2 . $ 2-C64 2Lo Gheb H VA C- C t Atwit 3 . $ Y � v-P MeC rLc,d4- 4 . $ . t - C: 1.�\ �ky�i , ato, OTHER CONTRACTOR BIDS OBTAINED Revised 2005 DESCRIPTION OF PROPERTY: (Size & Description) APPRAISED VALUE:112,1) f )� C&'2 (� // �� ' I ���`p�'Ve'M��"�S OWNER IN TITLE: ti94/67 E- t/TAti3-(4 , LLe EXISTING MORTGAGE ON PROPERTY: ZOOpOO �n �� � 110 c)' ' (v 6 f"p"`-,y,„ . OTHER INFORMATION REQUIRED INITIALLY: 1 . Business Year end Financial Statements - last two years. 2. Business Interim Financial Statement - current year-to-date. 3 . Personal Financial Statement - current. 4 . Copy of Contractor Estimates. 5. Corporate and/or Personal Tax Returns may be required. 6. Appraisal of property may be required. The undersigned applicant hereby certifies that the loan funds obtained shall be used for the purposes outlined in this application. DATE '1 2747c Applicant Business Owner Please deliver this completed application to the bank or savings and loan official of your . choice. They will process your credit application and submit a loan proposal to the City of Elgin for final approval. Revised 11-24-03 Revised 2005 MARQUEZ PI l N1? IN( i. IN( PROPOSAL 10/19/05 Juan Marquez 273 Carla Drive South Elgin, IL 60177 847-695-9268 To: Shirley Sadjadi Job Name: 169 E. Chicago St. 100 E. Chicago St., Ste.605 s Elgin. IL 60120 Elgin, IL 60120 Fax# 847-741-6159 We hereby submit specifications and estimates for: Installation of an ADA bathroom&kitchen sink w/dishwasher hook-up on second floor. Demolition of existing plumbing included. 1 - 12 gallon electric water heater 1 -Dayton SS kitchen sink 1 - Moen#7460 kitchen faucet (chrome) 1 - Crane ADA toilet(white) 1 - Church elongated seat (white) 1 - Crane wall hung lavatory sink 1 -Moen#L4621 lavatory faucet(chrome) 1 - Crane urinal 1 - Sloane urinal valve WE PROPOSE hereby to furnish material and labor - complete in accordance with above specifications, for the sum of: Six Thousand Nine Hundred Twenty Eight and 00/100 dollars S6,928.00 Payment to be made as follows: after rough-in: $4000.00 after completion : $2928.00 Authorized Signature Proposal Accepted By CHESTER JOHNSON ELECTRIC CO. 20:3S DATE 6 -2C -if JOB OR-BLDG. 7 'e 3f cSQA700..Z' LOCATION //qE. CAk/e.444, , ' BID TO ADDRESS 'car N in/ /Nad/oes ; P$' A.LQ� Seirc, ,E5 d rs y � � � �Lc. 0��2 /oRoviO� ocviv PHONE NO. SCALE SHEET NO. MATERIAL I QUANTITY MAUN TAL EXTENSION 1 LABOR EXTENSION of Inn!!. iUHnnlnnl ;nnnn■ _nn■Innl ■n 0 20 _a, - c - ; ' - i ,i• I11n11_i1 nl� _ __ i�innn�■nui inInnnn! 0 Zo ,11e :.i. - _ • - our, Innnrn nn lnnnlnn ►nnnnn inINIII e�' Innn/2■ nnnn!n•. 1 u d IBBMnrinnnnnn� -�- 11111111111111 Innnn■_innninnn1n elo :- ���. _ 1 u n11 nnn nnn nnin Unnn n111nnnnn VP _ oar a L� _ t w s. 1nnn,:nl_inn11nnn■ . in�R©��—nnnnnn;nnn ��nnn.nnninn MINN ' 1111111111111! 1 I 4� . -. �� - - - 2/mm s MAW ' 11111111111. I I i , lnn I= 11111111111111111i - zx # . ixT UEFAinnnnn nnnl u i nn nn■n1111111nnnnn1n r. InnFn� Inn nnnni ,nnnnnnn © _ -v D- - _ ... Co X. Bey,. Inn I n.n��innn;nn inn 1111111 11E11 • MUM 0 6•" bivcd,/D. C4A/ Ar. . IH. II 11111111111111111111 i nnnnn'n� nnninnnlIMO w,#u., scoAic ars HRFJI__Hn nt_lnnn va- - Innn= 111111111111 i ■n nnnn n n nnnnn1111111111111/? er arrz�r , it ti nr innnnE N �1�rn BIM IIICO �c UNIT' �- T sr�T nnnn� i�nu;nn�nn ;nnnnn_ nn`nnnn�n unn nn■�I�un 'nnnn���u€nnnlnnn -� _ : , . �nnnnnnnlr n,nnn.nnn nn�nn11N1nnn 14111111111K11111111111111111110011 nnnInnnn 11111 11111 ! �1 1 ■ l _[fit nl � f I Jul 13 05 06: 15a John flmbrogio 630 876 3194 p . z • VP flecks i-at Estimate 3N 110 Ridgeview St. West Chicago, IL 60185 I Date Estimate# 7/1.31200.5 1190 Name/Address Project Sotoxnayor Enterprises Attn:Wither 1366 Artgleta n west l)undee.IL60118 1st floor kitchen build out Terms Rop good for GU days John Description Total Provide and install the following: 38,2()0 00 (2)Lennox 135,00(1 I31U rurnflccs 80% (2)Lennox 5 ton cased coils (2)Lenox 5 ton fiS29 condenser coils with electrical(reheat) complete supply and return air register package Job includes all ncazszry duct work W complete(2)5 ton t IVAC systems,venting,line sets,low voltage wiring and gas Pipe• Also included is all necencnry duct work to complete 3,000 elan make-up air system. Note:Line voltage wiring,coring and any carpentry work done by others. • If required to fire wrap existing black iron add an additional$5,300.00 Thank you for the opportunity to bid this job. Plouse call with any questions. i Tota I x.3>t,200.00 If this estimate meets your approval please sign and return it to us via fax or mail. Customer Signature 1 ' Phone# Fax# E-mail 630-876-3420 6304176-3194 vpmochanical(o?comeast.nct • • • r.a � rS350 CENTER ST. GRAYSLAKE,IL 60030 0 'PH(847)223-4500 FAx(647)223-6444 Date 9/14/2005 Project Name: SPECIFICATIONS Quote No. SP1899 Law Offices of Shirley Sadjadi Framework All horizontal and vertical skylight framing components shall Incorporate an integral condensate control gutter system with weepholes at the sill condition for positive drainage to the exterior. The skylight system(s)shall Incorporate flush silicone sealant joints at the horizontal framing components. The skylight framing components,including the glass,shall be designed In accordance with following requirements: a.30 PSF Live or Snow Load acting vertically b.20 PSF Wind Load acting horizontally c.A Dead Load as applicable to the framing and glass d.The support structure and adjacent construction must support the transfer of all loads,including horizontal and vertical,exerted by the skylight system(s). The deflection of the framing member in a direction normal to the plane of the glass,when subjected to a uniform load deflection test in accordance with ASTM E330 and per the above specified loads,shall not exceed L/175 or 3/4",whichever is less,for the unsupported span. Principal Supporting Members:1/8"minimum thickness,extruded aluminum,tubular,6063-T5,6063-T6 or 6005-T5 alloy and temper per ASTM 8221.Sizes,shapes and profiles as per GSI standard shapes. Sheet metal flashing and closures shall be shop formed to profile in loft.lengths.When lengths exceed loft.,field trimming to length and field forming the ends is necessary to suit field conditions.Sheet metal overlaps are to be 6",set in sealant and aluminum pop riveted as required. The principal skylight framing components shall be factory assembled in whole or in part,identified and shipped knocked down for final assembly at the Job site.Construct the skylight(s)using extruded aluminum members. Locate weepholes in the sill adapter,at each rafter connection,to positively drain condensation to the exterior of the skylight(s). Installation Skylight(s)shall be install in one phase unless otherwise noted.The skylight manufacturer's installer shall examine the support structure and adjacent construction to determine that they are properly prepared,dimensionally correct and ready to receive the skylight work included herein.Any deviations from the approved skylight shop drawings shall be brought to the immediate attention of the General Contractor.No installation work shall begin until all such deviations have been satisfactorily corrected at the expense of the responsible party(s). The skylight manufacturer and the skylight manufacturer's installer exclude all field measuring,demolition,removal,replacement,and/or rework of any existing material unless otherwise noted. Erect the skylight materials plumb and true and in proper alignment and relation to the established lines and grades as shown on the approved shop drawings.Anchor the skylight materials to the support structure in strict accordance with the approved shop drawings. Any temporary covering and weatherproofing of the skylight opening(s),if so required by the General Contractor,and removal of same during and after the completion of the installation is excluded by the skylight manufacturer and the skylight manufacturer's installer.Any temporary coverings that may be required are not to obstruct or interfere with the skylight installation in any way. Clean the glass and framework at the time of the installation.Final cleaning,if so required,subsequent to the completion of the installation, shall be the responsibility of the General Contractor. The skylight manufacturer does not provide nor include any temporary protection to the skylight materials after the completion of the installation.Protection of the skylight from ongoing work by other trades shall be the responsibility of the General Contractor.The skylight manufacturer is responsible only for the damage caused by the personnel under his control and responsibility. Accepted By: Date: • • PROPOSAL AND ORDER FORM f'C' S Wi re 350 CENTER ST. GRAYSLAKE, IL 60030 PH (847) 223-4500 FAx (847) 223-6444 CUSTOMER NAME / ADDRESS PROPOSAL No. SP1899 NAME: Sotomayor Enterprises,LLC DATE DATE REQ FOR INSTALL/DEL 9/14/2005 TBD ADDRESS: MODEL NUMBER aUOTED BY CITY: Elgin ST:IL ZIP: SS-130 DOMINIC A. PHONE 847-845-7445 FAx: wrsll@comcast.n SALESMAN APPROVED BY SHAWN CONTACT NAME: Wilde Sotomayor PROJECT ®COD ®Deposit Required PROJECT NAME / ADDRESS TERMS El Net 30 El Project Draw ❑Contract NAME: Law Offices of Shirley Sadjadi Deposit Requirment 50% ADDRESS: 169 E. Chicago Street Interest at 1.5%per month will begin on the first day after the due date of all invoices. CITY: Elgin STATE: IL ZIP: Terms subject to credit approval. DIMENSIONS GLAZING FINISH INSTALL FABRICATION O.D.CURB WIDTH 6'-0" ❑GLASS ❑POLYCARBONATE. PAINT OTHERS ASSEMBLED ❑ACRYLIC ❑FIBERGLASS ANODIZED `GSI _UNGLAZED O.D.CURB LENGTH WN -. _.. 1"INSULATED SAFETY GLASS MILL _UNION =_FIELD ASSEMBLEDKNOCK-DO PITCH 6/12 1/4"CLEAR TEMP.W/LOW-E#2 FINISH COLOR 1/2"AIRSPACE STANDARD HEIGHT 18" 1/4"CLEAR LAMINATED GLASS PAINT FINISH CALLS REQUIRED NO QTY DESCRIPTION UNIT PRICE TOTAL PRICE 1 SS-130 STRUCTURAL GLASS PYRAMID SKYLIGHT $7,163.73 $7,163.73 6'-0"x 6'-0"OUTSIDE CURB DIMENSIONS -PLEASE ADD$311.79 FOR TAX IF CERTIFICATE IS NOT PROVIDED. TOTAL $7,163.73 BID INCLUDES DELIVERY&INSTALLATION SKETCH AND SPECIAL CONDITIONS Also included in this bid, Standard mounting hardware,delivery, installation,and a full set of shop drawings. / -----,_ Not included in this bids j/ \ Independent testing,tax, interior tarping,or any .., interior finishing work. Clarifications • Adjacent and support construction must support _---- forces imposed by skylights. Support curb must be"plumb/square"for proper installation. Lead time is based after approval of shop drawings with guaranteed dimensions. Bid is based on ;9\ crane accessibility. Paint finish to be a standard -\ / color provided by Morton or DuPont. \ l Approx. Lead Time 7-9 weeks Price good for(30) Days Warranty Period 5 years Subject to price upon receipt of architectural plans and specs if none were available at time of bid. These prices are F.O.B Grayslake, IL Freight estimates are not guaranteed. All prices do not Include tax unless otherwise noted. If paint is desired the units shall be electrostatic powdercoat paint standard by Dupont/Morton. If the units are anodized the standard is 204-R1 finish. Warranty covers design, workmanship,material,and uncontrolled water leaks. Lead Times are based after approval of shop drawings. Terms and conditions of sale form must accompany this Proposal. Accepted By: Date: PROPOSAL VALID FOR 30 • uo)., DAYS FROM BELOW DATE ���• 350 Center St. Grayslake, IL 60030 S Ph (847) 223-4500 Fax(847) 223-6444 Date: 9/27/2005 PROPOSAL AND ORDER FORM PROPOSAL it CP8831 NAME: SOTOMAYOR ENTERPRISES, LLC PROJECT NAME: ADDRESS: LAW OFFICES, ELGIN CITY: ELGIN STATE: IL ZIP: PHONE: 847-845-7445 FAX: CONTACT: WILDE SOTOMAYOR THE FOLLOWING CHECKED DESCRIPTIONS APPLY; ❑ACRYLIC GLAZING DIMENSION DESCRIPTION ❑THERMAL BREAK ❑INSIDE CURB DIMENSION "BB" ❑POLYCARBONATE GLAZING OUTSIDE CURB DIMENSION "CC" ❑TEMPERED GLASS L INSIDE MOUNTING FLANGE "DD" ❑LAMINATED GLASS ❑.REPLACMENT BUBBLE ❑Low E Note: Picture is for dimension reference only' ❑CURB MOUNT SKYLIGHT ❑SEL.F-FLASHING SKYLIGHT �- ❑PYRAMID SHAPED OUTER DOME ❑FACTORY MUTUAL RATED DROP OUT VENT lI - - ❑ENCLOSED DRAWING IS PART OF THIS QUOTE +� ` ❑FLASHING PACKAGE - - GLAZING: OUTER GLAZING ®CLEAR ❑WHITE ❑BRONZE GRAY INNER GLAZING ®CLEAR ❑WHITE ❑BRONZE i GRAY _NONE ALUMINUM FINISH: ❑MILL ❑ANODIZED ®POWDER COAT PAINT COLOR: TBD QTY DESCRIPTION WIDTH X LENGTH UNIT TOTAL 1 FG-610 Curb Mount Pyramid/Bubble Skylight 72"x 72" $1,200.00 51,200 00 -warranty= 10 years -lead time-7-10 business days -GSI"CC"dimensions=outside curb dimensions -please verify curb dimensions prior to order DELIVERY ADDRESS/NOTES delivery included: SUBTOTAL $1,200.00 169 E. Chicago Street 6.50% TAX $78.00 Elgin, IL. DELIVERY $50.00 GRAND TOTAL $1,328.00 REP: CUSTOMER ORDER# CREDIT TERMS 150/50 COD SHAWN M. DEPOSIT PERCENT 500/0 AMOUNT $664.00 GSI APPROVED: ------- _--- _-.---_.—.. CONTRACTOR SIGNATURE DATE FG-610 CURB MOUNT PYRAMID OVER BUBBLE PROJECT NAME:LAW OFFICES, ELGIN PROPOSAL# CP883 1 THERMOFORMED ACRYLIC PYRAMID THERMOFORMED ACRYLIC BUBBLE SILICONE SEALANT i' (G028)EXTRUDED ALUM. /� CLAMPING A7JGLE MIG WELDED AT THE CORNERS ���� (I-a/4"X I-a/4"X I/1 ) i (GGO7)CONT.SANTOPRENE -��� GLAZING GASKET P7M.1111 ,�M 1 O PP WEEP BAFFLES si+�•�!Oa' @ CORNERS ;I1,,na_ # 1 OX a/o"P.A.S. (BB) INSIDE CURB DIMENSION @ VAR ON CENTER OPTIONAL THERMAL-BREAK i(CC) OUTSIDE CURB DIMENSION ,I, ,,,,. INCLUDING ROOFING MATERIALS # I OX I I/2"P.A S. I i(DD) INSIDE MOUNTING FLANGE DIMENSION @ VAR ON CENTER ff L. S, (CO 17)EXTRUDED , ll ALUM.SILL MEMBER A BB ROOFING MATERIALS i cc AND STRU RJRAL CURB WAII1 (BY CrTHtIb) DD %- TOP OF ROOF Specifications: Double Dome thermoformed insulating acrylic skylights shall be by GSI. Each unit shall be factory glazed and sealed with a full silicone seal, interior santoprene seat gaskets,glazed with two thermoformed bubbles. Sill framing and clamping angle shall be extruded aluminum with an average thickness of.098. All mitered corners in both sections shall be tig-welded with full penetration welds. Clamping angle shall be mechanically fastened to the sill to hold the glazing materials in place and maintain the water control of the system. System shall be designed to fit over a 2+wide curb and anchored to the sill from the roof. Skylights shall be designed to support a 401b.live load. Units are not designed for life support of humans. If life support is required, use of the"Security Guard"system should be considered. (Acrylic double glazed units can not be hermetically sealed,therefor are subject to formation of condensation between surfaces under certain conditions.) 411 iv i.!- ,'S 350 Center St. Grayslake,IL 60030 Ph(847)223-4500 Fax(847)223-6444 PROPOSAL AND ORDER FORM • S��- 350 CENTER ST. GRAYSLAKE, IL 60030 PH(847) 223-4500 FAX(847) 223-6444 CUSTOMER NAME / ADDRESS PROPOSAL No. SP1899 NAME: Sotomayor Enterprises, LLC DATE DATE REQ FOR INSTAL DEL 9/27/2005 TBD ADDRESS: MODEL NUMBER QUOTED BY Crrv: Elgin ST:IL ZIP: SS-130 DOMINIC A. SALESMAN APPROVED BY PHONE 847-845-7445 Fax: wrs11 icomcast.n SHAWN CONTACT NAME: Wilde Sotomayor PROJECT ®COD ®Deposit Required PROJECT NAME / ADDRESS TERNS ❑Net 30 ❑ Project Draw ❑Contract NAME: Law Offices of Shirley Sadjadi Deposit Requirment 50% ADDRESS: 169 E. Chicago Street Interest at 1.5%per month will begin on the first day after the due date of all Invoices. Cm: Elgin STATE: IL ZIP: Terms subject to credit approval. DIMENSIONS GLAZING FINISH '"INSTALL FABRICATION O.D.CURB WIDTH 6'-0" =GLASS i POLYCARBONATE. ❑PAINT ❑OTHERS ❑ASSEMBLED ACRYLIC ❑-FIBERGLASS ❑ANODIZED ❑GSI ❑UNGLAZED O.D.CURE LENGTH ❑MILL ❑UNION ❑KNOCK-DOWN 1"INSULATED SAFETY GLASS ❑FIELD ASSEMBLED PITCH 6/12 1/4"CLEAR TEMP.W/LOW-E*2 FINISH Come 1/2"AIRSPACE STANDARD HEIGHT 18" 1/4".CLEAR LAMINATED GLASS PAINT FINISH CAI.CS REQUIRED NO QTT DESCRIPTION — UNIT PRICE TOTAL PRICE 1 SS-130 STRUCTURAL GI AS PYRAMID SKYUGHT $7,163.73 $7,163.73 6'-0"x 6'-0"OUTSIDE CURB DIMENSIONS -PI FeSE ADD$311.79 FOR TAX IF CERTIFICATE IS NOT PROVIDED. -SUBTRACT<1,445.00> FOR 16MM. POLYCARBONATE GLAZING 5,7 i, BID INCLUDES DELIVERY&INSTALLATION TOTAL - #7,163.73 INSTALLATION NUMBERS ARE NOT GUARANTEED SKETCH AND SPECIAL CONDITIONS Also included in this bid, Standard mounting hardware,delivery, installation,and a full set of shop drawings. Not included in this bid. Independent testing,tax, interior tarping,or any interior finishing work. .. Clarification Adjacent and support construction must support forces imposed by skylights. Support curb must be'pi based after for proper installation. Lead time i5 Cased after approval of shop drawings with guaranteed dimensions. Bid is based on crane accessibility. Paint finish to be a standard odor provided by Morton or DuPont. Approx. Lead Time 7-9 weeks Price good for(30) Days Warranty Period 5 years Subject to price upon receipt of architectural plans and specs if none were available at time of bid. These prices are F.O.B Grayslake,IL Freight estimates are not guaranteed. All prices do not include tax unless otherwise noted. If paint is desired the units shall be electrostatic powdercoat paint standard by Dupont/Morton. If the units are anodized the standard is 204-R1 finish. Warranty covers design, workmanship,material,and uncontrolled water leaks. Lead Times are based after approval of shop drawings. Terms and conditions of sale form must accompany this Proposal. Accepted By: Date: • ;ate. ... O. Estimate a, Traditional DATE ESTIMATE NO. Construction 5%92005 1077 and Design, Inc. MO L Chicago St.,Soh 1104,130,1 60120 Cell.847-81Z-9055,Office•847-760.6848 Roo-Ill 31 15020,Fax-841-760-6858 NAME/ADDRESS Shirley Sadjadi 169 E.Chicago St. Elgin,IL 60120 P.O. NO. TERMS Project Comm.Renov. DESCRIPTION QTY COST TOTAL Dumpsters 2.100.00 2.100.00 PortoJon 350.00 350.00 Patch and repair roof to buy time till future tear off. 5.250.00 5.250.00 Rough Carpentry 41,900.00 41.900.00 t Trim carpentry,installation of doors,includes$4500.00 for 22.800.00 22.800.00 cabinetry. i Doors as per plan 9.424.20 9.424.20 Electrical as per plan 26.300.00 26.300.00 Insulate 3.100.00 3.100.00 Plumbing 11.640.00 11.640.00 New roof top unit,duct work run inside soffits 18,700.00 18.700.00 Masonry-cutting open for new door in place of existing window, 1.350.00 1.350.00 new window in place of existing 2nd floor doors. Tuckpoint a repair on facade of building-(optional) 2.400.00 2.400.00 ' Window Allowance 4.000.00 4.000.00 3,'U , t Drywall and finishing 20.625.00 20,625.00 Please contact me with questions or to proceed. TOTAL SIGNATURE Page 1 L.o Estimate Traditional DATE ESTIMATE NO. Construction � 9200> 1077 and Design, Inc. 100 F.Clicago St.,Stile 804,Elgin,It 60120 Ce8-847.812-9055,Office•847-760-6848 Ratio•I0.31'15020,Fax-847-760-6858 j NAME/ADDRESS Shirley Sadjadi 169 E.Chicago St. Elgin,IL 60120 P.O. NO. TERMS Project Comm.Renov. DESCRIPTION QTY COST TOTAL Painting 4.700.00 4.700.00 • Supply and Install Hardwood Floor 9.800.00 9.800.00 Carpet Alternative$1500.00 0.00 VCT 440.00 440.00 Fire Extinguishers-2 in basement,2 on main,3 on 2nd floor 7 60.00 420.00 Life Safety System 9.000.00 9.000.00 Permit for Project 5.500.00 5.500.00 Profit,Overhead,and Project Management 30.000.00 30.000.00 Please contact me with questions or to proceed. TOTAL 8229.799.20 SIGNATURE Page 2 7/12/2005 6:39 PM FROM: Fax TO: 18478435065 PAGE: 002 OF 002 nF DUNLAP HOME IMPLOVEMENTS Afar, & SON DECICItiSULLECTOLS m?'S' 7263 Goeke Rd. ihiA Pecatonica IL. 61063 COMPLETE tie Offee-847-888-2280 Cell 847-321-8657 HOME REPAIRS 0 Fax 815-239-2147 Home 815-239-1815 Res. &Com.Maintenance a� `` CUSTOM MILL WORK gskii rt` &CABINETRY Certified Wohnan®Contractor Date Job Name Invoice # Phone July 12,2005 Shirley Sadjadi Estimate 847-843-5063 169 Chicago St. Fax 847-843-5065 Elgin IL. 60120 ESTIMATE FOR BUILD OUT OF OFFICE: Price below is for Materials & Labor with some exclusions. Excluded: • Ski-lite & crane (if needed) (no info faxed to me) • Bamboo flooring & labor (no info provided) • Demo on any structures (Except front windows) • Permits /Any fee's by City or State. • Carpeting ( Not enough info provided ) Included: Electrical /HVAC /Plumbing/Carpentry Rough & Finish / Drywall/Painting/Vinyl Flooring/ Cabinets / Windows / Doors /Stairs /Dumpster Cost for build out $274,436.28 V0/44/LVV7 14.Vr rnA eVV. /VVo IIA ' Id CARPENiimaiTER CUNT INC. 1t �E I:tme,\ Illr.r,r, I'�ul�.' I;,a� '! (t;I' l,!,,,� /(0),; ;••I n, . • May 24, 2005 Page 2 EDI Interior Architecture 169 Chicago Street,Elgin Attn: Wilde Sotomayor No Work is Figured on I"Floor Level or Basement Level Permits&Access to Dumpsters Must be Provided Phone&Data by Others. j'RICING IS NOT GUARANTEED IF PROPOSAL IS NOT ACCEPTED WITHIN 30 DAYS We hereby PROPOSE to furnish labor and material —completely in agreement with the above specifications for the sum of S312,120.00. Payment to be made as follows: Upon progress Invoicing. Payment must be Received Within 10 Days Of Invoice. ANY LEGAL OR COLLECTION FEE PAYABLE BY ADDRESSEE. All work to be completed in a substantial work manner according to the specifications submitted per standard practices. Any Alteration or deviation from above specifications involving extra labor will be executed only upon written orders, and will become an extra charge over and above the estimate at S75.00 per man-hour. Extra work orders for labor costs incurred due to material availability. Owner is to carry fire, tornado and other necessary insuran Our wor are fully covered by Worker's Compensation Insurance. David Alexander,Vice President ACCEPTANCE OF PROPOSAL—The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. Date of Acceptance Authorized Signature 05/24/2005 14:06 FAX 4)002/003 • Avid CARPENTER CONTRACTORS INC. ?.\ Ilh" r. I'V.IN�� I'I ON, .1 r,tlli I/•f„)r;•I>il ;I,„ ;;1/r„)„ i1', • May 24, 2005 EDI Interior Architecture Attn: Wilde Sotomayor 1475 E. Woodfield Road, Suite 104 Schaumburg, IL 60173 Phone: 847-843-5026 Fax: 847-843-5065 Dear Sir: RE: 169 Chicago Street,Elgin Bid ALLOWANCES Includes: 50 Mil. White PVC Sheet w/Standard Coping $ 29,850.00 Dumpster for Roof&Skylight $ 450.00 NO Demolition of Roof Material is Figured $ 0.00 Reframe Skylight&Install two(2)Velux 4'x4' Skylights $ 3,000.00 Miscellaneous Framing for Roof Rcpair $ 3,150.00 Removal of Insulation $ 1,000.00 Removal of Grid Ceiling $ 1,040.00 Dumpster for Insulation&Grid Ceiling $ 450.00 Terminate Electrical $ 900.00 Cap Plumbing $ 720.00 Removal of Walls, Drywall&Carpet S 8.000.00 Dumpster for Walls,Drywall&Carpet $ 3,600.00 Framing $ 58,000,00 New Plumbing $ 21 000.00 New Heating $ 18,600.00 New Electrical $ 19,500.00 Replace Windows $ 13,000.00 New Insulation $ 2,800.00 Stair Rails $ 1,500.00 New Drywall&Paint $ 29,500.00 New Flooring S 27,600.00 Interior Trim $ 4,900.00 Glass Doors&Interior Doors $ 14,580,00 Replace Exterior Deck @ Rear of Building $ 7,200.00 Cabinets&Countertops S 17,600.00 Level Floors $ 5,200.00 Replace Door on 1st Floor Level @ Exterior Deck $ 2,400.00 Remove&Replace Front Awning 16,580.00 TOTAL ALLOWANCES $312,120.00 Zf • Amber Co.nstrnctioo,Inc. 11 N060 Peplow Road-Hampshire,Illinois 60140 Phone f-a47--8839311 June 29, 2005 Proposal to : Architect - A4r. Wilde Sotomayor 1-84-7-g45-7446 Contact person - Wife; Mrs. Shirley 1-847-622-2429 Proposal fur Remodeling of 169 Chiragn Street, Flga n,. LL— 60120 Work included : Provide General Contract to create new- law- offices for Shirley Sadladi. Description of work: tin r3emn11t10r - nG TPmnerA1 0,L rlemolitinn rontrartnL rlehrj. . pemnl ttjon contractor hired by owner at owners expense. Pe-rmi t s Carpentry framing,_ materials and labor. Work performed as ordered on construction drawings. trim. Primed popular base and casing, stained oak doors. Plumbing w/ specifications : _ # PPC-1544 . _-- THIS CONTRACT SUBJECT TO PRICE CHANGES AFTER A THIRTY-DAY PERIOD. WORK MUST COMMENCE NINETY DAYS AFTER THE DATE CONTRACT IS SIGNED. CUSTOMER ACKNOWLEDGES THAT SHADING AND COLOR MAY VARY FROM SAMPLES TO ACTUAL PRODUCTS USED. ALL WORK TO BE INSTALLED IN A PROFESSIONAL MANNER ACCORDING TO LOCAL PLUMBING CODES. ALL PERMIT FEES,INSPECTIONS FEES,ETC.TO BE SECURED BY OTHERS. WE AGREE TO CARRY WORKMEN'S COMP.AND PUBLIC LIABILITY INSURANCE. ANY ALTERATIONS FROM THE SPECS INVOLVING EXTRA COST OF MATERIAL AND/OR LABOR MUST BE NEGOTIATED BEFORE WORK PROCEEDS. ONCE SELECTIONS HAVE BEEN MADE AND WORK HAS BEGUN THERE WILL BE A S50.00 SERVICE. CHARGE.PER CHANGE ORDER AS WELL AS,AJ Y 1 ""'`, CHANGES MUST BE CONFIRMED WITH A SIGNED WORK ORDER. ROUGH PAYMENTS MUST BE RECEIVED BEFORE TRIM WORK PROCEEDS. WE PROPOSE TO FURNISH AND INSTALL THE ROUGH AND TRIM PLUMBING INCLUDING THE FOLLOWING: 2"Floor Remodel Bathroom White/Chrome 1 —Mansfield 137-160R water closet with anti-microbial open front seat,stop and supply I —42"handicap bar I —36"handicap bar I —Mansfield 2018HB wall hung lay with Moen 8430 faucet,offset grid waste,Watts USGB temperature control,stops,supplies,trap and insulation kit I —Mansfield 412 Cascade urinal with Mansfield 190-0 urinal flush valve I —EEMAX model SP2412 electric instantaneous water heater(electric by others) Kitchen Stainless/Chrome 1 —Moen 22223 K-2522-4 stainless steel sink with Moen 7430 chrome faucet,strainer, stops,supplies and trap(top and cabinet by others) 1 —EEMAX model SP2412 electric instantaneous water heater(electric by others) Remove existing cast iron stack from top of 151 floor-through roof;replace with pvc • Remove existing 2"DWV copper vent;move back into wall of new layout Rework existing 4"pvc from top of Is'floor to basement due to no hub coupling leaking • down wall(opening and patching of wall by others) New waste and vent lines to be pvc New l"copper water line from basement to top of 1S1 floor All water pipe to by Type L copper Gas pipe From existing meter run I '''A"gas pipe through building up and out roof to new roof top unit.New pitch pod and repair of roof by others .. Heating w/ specifications . RE: Heating and Air Conditioning install for the Law Offices of Shirley Sadjad,169 East Chicago St.,Elgin,IL. We will provide and install the following: 2 Air-Ease 4 Ton/ 125,00BTU roof top units,3 phase,230V,with economizer 2 Curbs 1 bath fan venting 2 Thermostats,and low voltage wiring for same. All supply air and return air grills. • All duct work and sheet metal. Initial balancing of system per engineering calculations. 1 year warranty on mechanical and labor. Note: 1.We will supply a crane to place units on the roof.We will require the use of the parking lot on the East Side of the building. 2. We will set the curbs,cut of roof and waterproofing by others. 3. All line voltage supplied by others. 4. All duct work will be round and insulated above ceiling per engineered print. 5.All natural gas piping by others,with minimum 1"supply with shut off to each roof top unit. 6.Conduit from each roof top unit to thermostat locations,by others. We Propose to furnish labor and material,complete in accordance with above specifications,and subject to conditions found on both sides of the agreement, for the sun of:Thirty Thousand Eight Hundred and 00/100 Dollars($30,800.00). Payment to be made as follows: A draw by the 10th of the month on labor and material. Electrical provide : The change of - • second_ floor. Rein ttao amp main ua _one S. 12 switches, 29 receptacles, 2 emergency lights, 55 can lights provided by owner, 3 light fixtures provided by owner, 8 - 3/4" conduit stubs and boxes 1 - T V stuh, 2 attic. keyless lights (_not shown), 1 switch for attic light ( not shown }. # Phone and T V cabling by others {_ not part of this contract} # All fixtures provided for electiona inatallatinn by Architect. Insulation provide i Tnsularinn and drywall on_front tipper walls where demolition was done by mistake in order to make, repairs. Install R-ll 24" instrlatiorr be-tweeir offices for sound reduction. Drywall and tape i a/a" Drywall an_ 24" 0.L- 2-0. and 25- ,ja"gn-patal studs. Painting provide : one coat latex enamel over primed trim. Stain, seal, and varnis-h- oak dears-. Primed-walls- and ceilings with one coat latex paint. Floo-ring _ Allowance (-p-rice included is contract} -----^-_-.�................,,.. _-»..-ate Roofing w/ specifications : Re: Flat roof Replacement job @ 169 E. Chicago Ave.Elgin,IL We hereby agree to furnish all labor,materials and expenses necessary to perform work as specified below and as per the conditions hereof. This proposal shall be incorporated in and made a part of any additional documents. Modified Bitumen Flintlastic Roof System. The manner in which this work would be performed is as follows: 1. We will remove the existing roofing to deck all dirt and debris will be removed from the roof and premises. 2. Deck replacement or rotten wood will be replaced on a time and material basis. 3. A Flintlastic base sheet will then be installed over the existing deck and will be attached with a round cap nail. 4. Flintlastic mid-ply will then be installed over the base ply. 5. Supply and install lead flashing on the soil pipes. 6. New base flashing will be installed at all HVAC units. 7. To the mid-ply sheet Flintlastic modified cap sheet will be self adhered. 8. New flashing will be installed at the base of the parapet walls. The above work to be completed for the sum of(tax inc.): ,6 21,932.00 Note: not included in our proposal the following items:Sheet metal coping on top of wall,wall repair of bricks if needed,rotten lumber,curbs,or skylights. Insurance We buy Public Liability,Business Auto,Umbrella and Worker's Compensation Insurance. License License with the State of Illinois Department of Registration and Education as a Roofing Contractor License No. 104-005597. MEMBER CHICAGO ROOFING CONTRACTORS ASSOCIATION Cabinets and tops : allowance 1. price included in contract) $11,.000.00 # Labor for installation included in price allowance Rubbish : Rubbish disposal bins shall be provided at all times. Access shall be provided in lot to the East during construction with written approvaL from bank. Payments : According to normal pay-out procedures for multiple pay-outs as work progresses. T�rat puce $ 21.II,000_0a Two Hurdred and ten rbousArd del 1ars. Thank you, Arland a. Prestidge (9Z PXN161I C, ' Department of the Treasury— Internal Revenue Service Form 1 040 U.S. Individual Income Tax Return 2004 (99) IRS Use Only not wn;ecrs;apiz -,^ss-a-e For the year Jan 1 -Dec 31,2004,or other tax year beginning ,2004,ending ,20 OMB No. s45•X'e. Label Your first name MI Last name Your social security number (See instructions.) WILDE SOTOMAYOR 214-11-4074 If a joint return,spouse's first name MI Last name Spouse's social security number Use the IRS label. SHIRLEY SADJADI SOTOMAYOR 361-66-6102 Otherwise, Home address(number and street).If you have a P.O.box,see instructions. Apartment no. please print i Important! or type. 1366 ANGLE TARN You must enter your social City,town or post office.If you have a foreign address,see instructions. State ZIP code security number(s) above. Presidential WEST DUNDEE, IL 60118 • Election Campaign , Note:Checking 'Yes'will not change your tax or reduce your refund. You Spouse (See instructions.) Do ou, or your spouse if filing a joint return, want $3 to go to this fund? 1". Yes Yes X No n Yes X• No Filing Status 1 Single 4 U Head of household (with qualifying person). (See 2 X Married filing jointly(even if only one had income) instructions.) If the qualifying person s a chile but not your dependent, enter this child's Check only 3 Married filing separately.Enter spouse's SSN above&full name here. ► one box. name here. ► 5 n Qualifying widow(er)with dependent child(see instructions) Exemptions 6a X Yourself. If someone can claim you as a dependent, do not check box 6a _ andon6as` 6bed • 2 b X.Spouse — No.of children (2)Dependent's (3)Dependent's (4)✓,f on 6c who: c Dependents: social security relationship qualifying • lived number to you child for cn,id with you . 2 tax credit • did not (1) First name Last name (see instrs) live with you GABRIELA SOTOMAYOR 344-94-4726 DAUGHTER I^I d separation NATHAN SOTOMAYOR 326-98-1423 SON n (see instrs) If more than `� Dependents four de endents, 7 enter on er ed notabove p See instructions. 1�1 Add numbers d Total number of exemptions claimed on lines above 1►I 4 7 Wages, salaries, tips, etc. Attach Form(s)W-2 7 180, 650 . Income 8a Taxable interest. Attach Schedule B if required 8a 485 . b Tax-exempt interest. Do not include on line 8a I 8/al Attach Form(s) 9a Ordinary dividends. Attach Schedule B if required 9a 12, 771 . W-2 here.Also b(Oseeua insivs) I 9 bI 12, 771 . attach Forms 10 Taxable refunds,credits,or offsets of state and local income taxes(see W-2G and 1099-R instructions) 10 635 . if tax was withheld. 11 Alimony received 11 If you did not 12 Business income or (loss). Attach Schedule C or C-EZ 12 get a W-2, 13 Capital gain or(loss).Att Sch D if reqd.If not reqd,ck here ► _ 13 2, 296 . see instructions. 14 Other gains or (losses). Attach Form 4797 14 28 . 15a IRA distributions 15a b Taxable amount (see instrs).. 15b 16a Pensions and annuities 16a b Taxable amount (see instrs).. 16b 303 . 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E. 17 —13, 347 . Enclose,but do 18 Farm income or (loss). Attach Schedule F 18 not attach,any 19 Unemployment compensation 19 payment. uselso, 20a Social security benefits 120a1 I b Taxable amount (see instrs).. 20 b Form 1040-V. 21 Other income 21 22 Add the amounts in the far right column for lines 7 through 21. This is your total income ► 22 183, 821 . 23 Educator expenses (see instructions) 23 Adjusted 24 Certain business expenses of reservists,performing artists,and fee-basis Gross government officials.Attach Form 2106 or 2106-EZ 24 Income 25 IRA deduction (see instructions) 25 26 Student loan interest deduction (see instructions) 26 27 Tuition and fees deduction (see instructions) 27 28 Health savings account deduction. Attach Form 8889 28 29 Moving expenses. Attach Form 3903 29 30 One-half of self-employment tax. Attach Schedule SE 30 31 Self-employed health insurance deduction (see instrs) 31 12, 278. 32 Self-employed SEP, SIMPLE, and qualified plans 32 33 Penalty on early withdrawal of savings 33 34a Alimony paid b Recipient's SSN.... ► 34a 35 Add lines 23 through 34a 35 12, 278 . 36 Subtract line 35 from line 22. This is your adjusted gross income ► 36 171, 543 . ' BAA For Disclosure,Privacy Act,and Paperwork Reduction Act Notice,see instructions. FD1A0112L 11/10iO4 Form 1040 (2CO Form'1040 (2004) WILDE AND SHIRLEY SADJADI SOTOMAYOR 214-11-4074 Page 2 Tax and 37 Amount from line 36 (adjusted gross income) 37 171, 543 . Credits 38a Check You were born before January 2, 1940, ^Blind. Total boxes ! if: _Spouse was born before January 2, 1940, Blind. checked ► 38a_ Standard I b If your spouse itemizes on a separate return, or you were a dual-status Deduction L alien, see instructions and check here 1". 38 b for— • People who 39 Itemized deductions(from Schedule A)or your standard deduction(see left margin) 39 12, 372 . checked any box 40 Subtract line 39 from line 37 40 159, 171 . on line whao or 41 If line 37 is$107,025 or less, multiply$3,100 bythe total number of exemptions claimed 38b or who can P Y P be claimed as a on line 6d. If line 37 is over $107,025, see the worksheet in the instructions 41 12, 400 . dependent, see 42 Taxable income.Subtract line 41 from line 40. instructions. If line 41 is more than line 40,enter-0- 42 146, 771 . 43 Tax(see instrs).Check if any tax is from:a �Form(s)8814 b —_Form 4972 43 29, 325 . • All others: 44 Alternative minimum tax(see instructions). Attach Form 6251 44 0 Single or Married 45 Add lines 43 and 44 ► 45 29, 325 . fi$$41 850eparately, 46 Foreign tax credit. Attach Form 1116 if required 46 47 Credit for child and dependent care expenses.Attach Form 2441... 47 1, 2 0 0. Married filing jointly or 48 Credit for the elderlyor the disabled. Attach Schedule R. 48 Qualifying 49 Education credits. Attach Form 8863 49 wi dow(er), $9,700 50 Retirement savings contributions credit. Attach Form 8880 50 51 Child tax credit (see instructions) 51 Head of p household, 52 Adoption credit. Attach Form 8839 52 $7,150 53 Credits from: a 0 Form 8396 b 0 Form 8859 53 54 Other credits. Check applicable box(es): a 0 Form 3800 b 0 Form c Specify 54 8801 55 Add lines 46 through 54. These are your total credits 55 1, 200 . 56 Subtract line 55 from line 45. If line 55 is more than line 45, enter -0- ► 56 28, 125 . 57 Self-employment tax.Attach Schedule SE 57 Other 58 Social security and Medicare tax on tip income not reported to employer.Attach Form 4137 58 Taxes 59 Additional tax on IRAs,other qualified retirement plans,etc.Attach Form 5329 if required 59 30 . 60 Advance earned income credit payments from Form(s)W-2 60 61 Household employment taxes. Attach Schedule H 61 62 Add lines 56-61.This is your total tax. ► 62 28, 155 . Payments 63 Federal income tax withheld from Forms W-2 and 1099 63 16, 285. If you have a L 64 2004 estimated tax payments and amount applied from 2003 return 64 qualifying 65 a Earned income credit(EIC) 65 a child, attach I— b Nontaxable combat pay election ►I 65 b1 Schedule EIC. 66 Excess social security and tier 1 RRTA tax withheld(see instructions) 66 2, 112 . 67 Additional child tax credit. Attach Form 8812 67 68 Amount paid with request for extension to file(see instructions) 68 69 Other pmts from: a ❑Form 2439 b ❑Form 4136 c Form 8885 69 70 Add lines 63,64,65a,and 66 through 69. These are your total payments ► 70 18, 397 . Refund 71 If line 70 is more than line 62,subtract line 62 from line 70.This is the amount you overpaid 71 Direct deposit? 72 a Amount of line 71 you want refunded to you _ 0.- 72 a See instructions ► b Routing number ► c Type: I l Checking Savings and fill in 72b, 72c, and 72d. ► d Account number _ 73 Amount of line 71 you want applied to your 2005 estimated tax ► 73 I Amount 74 Amount you owe.Subtract line 70 from line 62.For details on how to pay,see instructions ► 74 9, 92 9 . You Owe 75 Estimated tax penalty (see instructions) [ 75 I_ 171 . Third Party Do g ewant to allow another person to discuss this return with the IRS(see instructions)? X Yes. CompletePat aenfollowing. `I No Designee name ►PREPARER number(PIN) ► Sign Under penalties of perjury,I declare that I have examined this return and accompanying schedules and statements.and to the best of my knowledge and g belief,they are true,correct,and complete.Declaration of preparer(other than taxpayer)is based on all information of which preparer has any knowledge Here Your signature Date Your occupation Daytme phone Humour . Joint return? See instructions. ARCHITECT 847-622-2429 Keep a copy Spouse's signature.If a joint return,both must sign. Date Spouse's occupation ! for your records. / LAWYER Date Preparers SSN or PTi\ Preparer's — Paid signature / Check if self employed ` P00036312 Preparer's Firm's name PORTE BROWN LLC Use Onlor yours if L self.employed),V 845 OAKTON STREET y EIN 3 6—2 6 6 3 3 5 8 address,and ZIP code ELK GROVE VILLAGE, IL 60007-1904 Phone no. (847) 956-1040 Form 1040 (20Cr'; FDIA0112L 11/10/04 Form 221 0Underpayment ofOMB h� ,� Estimated Tax by Individuals, Estates, and Trusts 2004 Department of the Treasury P. See separate instructions. Internal Revenue Service 10. Attach to Form 1040,1040A,1040NR, 1040NR-EZ, or 1041. 06 Name(s)shown on tax return Identifying number WILDE AND SHIRLEY SADJADI SOTOMAYOR 214-11-4074 Do You Have To File Form 2210? Complete lines 1 through 7 below. Is line 7 less than $1,000? Yes► Do not file Form 2210. You do not owe a penalty. 1No Complete lines 8 and 9 below. Is line 6 equal to or more than line 9? Yes i You do not owe a penalty. Do not file Form 2210 (but if box E below applies, you must file page 1 of Form No 2210 below). You may owe a penalty. Does any box in Part II below apply? Yes ► You must file Form 2210. Does box B,C, or D apply? No No Yes You must figure your penalty. Do not file Form 2210.You are not required to figure your penalty You are not required to figure your penalty because tie because the IRS will figure it and send you a bill for any unpaid IRS will figure it and send you a bill for any unpaid amount. If you want to figure it,you may use Part III or Part IV as a amount. If you want to figure it, you may use Part III or worksheet and enter your penalty amount on your tax return (see Part IV as a worksheet and enter your penalty amount instructions), but do not file Form 2210. on your tax return (see instructions), but file only page 1 of Form 2210. mintnem Required Annual Payment (see instructions) 1 Enter your 2004 tax after credits from Form 1040, line 56(or comparable line of your return) 1 28, 125. 2 Other taxes, including self-employment tax (see instructions) 2 30. 3 Refundable credits. Enter the total of your earned income credit,additional child tax credit, credit for federal tax paid on fuels, and health coverage tax credit for eligible individuals 3 0 . 4 Current year tax. Combine lines 1, 2, and 3 4 28, 155 . 5 Multiply line 4 by 90% (.90) I 5 I 25, 340. 6 Withholding taxes. Do not include estimated tax payments. See instructions 6 18, 397 . 7 Subtract line 6 from line 4. If less than $1,000, you do not owe a penalty; do not file Form 2210 7 9, 758. 8 Maximum required annual payment based on prior year's tax (see instructions) 8 23, 768 . 9 Required annual payment.Enter the smaller of line 5 or line 8 9 23, 768 . Next: Is line 9 more than line 6? No. You do not owe a penalty. Do not file Form 2210 unless box E below applies. X Yes.You may owe a penalty, but do not file Form 2210 unless one or more boxes in Part II below applies. • If box B,C,or D applies,you must figure your penalty and file Form 2210. • If only box A or E (or both) applies, file only page 1 of Form 2210. You are not required to figure your penalty; the IRS will figure it and send you a bill for any unpaid amount. If you want to figure your penalty, you may use Part III or IV as a worksheet and enter our penalty on your tax return (see instructions), but file only page 1 of Form 2210. !VFW . Reasons for Filing. Check applicable boxes. If none apply, do not file Form 2210. A 0 You request a waiver(see instructions)of your entire penalty. You must check this box and file page 1 of Form 2210, but you are not required to figure your penalty. B _You request a waiver(see instructions) of part of your penalty. You must figure your penalty and waiver amount and file Form 2210 C Your income varied during the year and your penalty is reduced or eliminated when figured using the annualized income installment method. You must figure the penalty using Schedule Al and file Form 2210. D �Your penalty is lower when figured by treating the federal income tax withheld from your wages as paid on the dates it was actually withheld, instead of in equal amounts on the payment due dates. You must figure your penalty and file Form 2210. E El You filed or are filing a joint return for either 2003 or 2004, but not for both years, and line 8 above is smaller than line 5 above. You must file page 1 of Form 2210, but you are not required to figure your penalty (unless box B,C, or D applies). BAA For Paperwork Reduction Act Notice,see separate instructions. Form 2210 (2004; FDIZ0313L 01/06/05 • Form 2210 (2004) WILDE AND SHIRLEY SADJADI SOTOMAYOR 214-11-4074 race. 2 n"--16 Short Method You may use the short method if: • You made no estimated tax payments (or your only payments were withheld federal income tax) or • You paid estimated tax in equal amounts on your due dates. You must use the regular method (Part IV) instead of the short method if: • You made any estimated tax payments late, • You checked box C or D in Part II, or • You are filing Form 1040NR or 1040NR-EZ and you did not receive wages as an employee subject to U.S. income tax withholding. Note: If any payment was made earlier than the due date, you may use the short method, but using it may cause you to pay a larger penalty than the regular method. If the payment was only a few days early, the difference is likely to be small. 10 Enter the amount from line 9, Form 2210 10 23, 768 . 11 Enter the amount, if any, from line 6, Form 2210 11 18, 39.7 . 12 Enter the total amount, if any, of estimated tax payments you made 12 13 Add lines 11 and 12 13 18, 397 . 14 Total underpayment for year.Subtract line 13 from line 10. If zero or less, stop here; you do not owe the penalty. Do not file Form 2210 unless you checked box Eon page 1 14 5, 3 71 . 15 Multiply line 14 by.03184 15 171 . 16 •If the amount on line 14 was paid on or after 4/15/05, enter -0-. •If the amount on line 14 was paid before 4/15/05, make the following computation to find the amount to enter on line 16. Amount on Number of days paid line 14 x before 4/15/05 x .00014 16 0 . 17 Penalty.Subtract line 16 from line 15. Enter the result here and on Form 1040, line 75; Form 1040A, line 48; Form 1040NR, line 73; Form 1040NR-EZ, line 26; or Form 1041, line 26, but do not file Form 2210 unless you checked a box in Part II on page 1 o' 17 171 . Form 2210.2CG4; FDIZ0313L 01/06/05 SCHEDULE A Itemized Deductions 0M8 No 1545`V (Form 1040) 2004 Department of the Treasury ' Attach to Form 1040. Internal Revenue Service (99) ' See Instructions for Schedule A(Form 1040). 07 Name(s)shown on Form 1040 Your social security number WILDE AND SHIRLEY SADJADI SOTOMAYOR 214-11-4074 Medical Caution.Do not include expenses reimbursed or paid by others. and 1 Medical and dental expenses(see instructions) 1 Dental 2 Enter amount from Form 1040,line 37 I 2 Expenses 3 Multiply line 2 by 7.5% (.075) 3 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter •0- 4 0 . 5 State and local(check only one box): a X Income taxes, or 5 4, 7 7 9. Taxes You b _General sales taxes (see instructions) Paid 6 Real estate taxes (see instructions) 6 7, 022. (See 7 Personal property taxes 7 instructions.) 8 Other taxes. List type and amount 0- 8 9 Add lines 5 through 8 9 11, 8 01 . Interest 10 Home mtg interest and points reported to you on Form 1098 10 You Paid 11 Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying number, and address 0- (See instructions.) - Note. 11 Personal 12 Points not reported to you on Form 1098.See instrs for spcl rules 12 interest is 13 Investment interest. Attach Form 4952 if re uired. not Q deductible. (See instrs.) 13 14 Add lines 10 through 13 14 0 . Gifts to 15 Gifts by cash or check. If you made any gift of$250 or more, Charity see instructions 15 1, 13 6. If you made 16 Other than by cash or check. If any gift of$250 or a gift and more, see instructions. You must attach Form 8283 if got a benefit over$500 16 300. for it, see instructions. 17 Carryover from prior year 17 18 Add lines 15 through 17 18 1, 4 3 6 . Casualty and Theft Losses 19 Casualty or theft loss(es). Attach Form 4684. (See instructions.) 19 0 . Job Expenses 20 Unreimbursed employee expenses —job travel, union dues, and Most job education, etc. Attach Form 2106 or 2106-EZ if Miscellaneousscr required. (See instructions.) ► 4 Deductions 20 21 Tax preparation fees 21 (See 22 Other expenses — investment, safe deposit box, etc. List instructions.) type and amount ► 22 23 Add lines 20 through 22 23 24 Enter amount from Form 1040,line 37 124 25 Multiply line 24 by 2% (.02) 25 26 Subtract line 25 from line 23. If line 25 is more than line 23, enter -0- 26 0 . Other 27 Other — from list in the instructions. List type and amount 0- Miscellaneous Deductions 27 0 . Total 28 Is Form 1040, line 37, over $142,700 (over$71,350 if MFS)? REDUCTION Itemized Deductions — -865. No. Your deduction is not limited. Add the amounts in the far right column for lines 4 through 27. Also, enter this amount on Form 1040, line 39, — ► 28 12, 372 . X Yes. Your deduction may be limited. See instructions for the amount to enter. BAA For Paperwork Reduction Act Notice,see Form 1040 instructions. FDIA0301L 11/02/04 Schedule A (Form 104C) 2004 Schedule A&B (Form 1040) 2004 OMB No. 1545 0074 Page 2 Name(s)shown on Form 1040. Your social security number WILDE AND SHIRLEY SADJADI SOTOMAYOR 214-11-4074 Schedule B — Interest and Ordinary Dividends 08 Part I 1 List name of payer. If any interest is from a seller-financed mortgage and the buyer used Amount the property as a personal residence, see the instructions and list this interest first. Also, Interest show that buyer's social security number and address AMERICAN CHARTERED _ 71 . (See instructions EFS BANK 241 . for Form 1040, line 8a.) KAYHAN INTERNATIONAL) LIMITED - 17 3 . Note.If you received a Form 1099-INT,Form 1 1099.OID,or substitute statement from a brokerage firm,list the firm's name as the payer and enter the total interest shown on that form. 2 Add the amounts on line 1 2 485 . 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815 3 4 Subtract line 3 from line 2. Enter the result here and on Form 1040, line 8a ► 4 485 . Note.If line 4 is over$1,500,you must complete Part Ill. Amount 5 List name of payer... 1. Part II KAYHAN INTERNATIONAL 12, 771 . Ordinary - Dividends (See - instructions for Form 1040, - line 9a.) Note.If you received a Form 5 1099-DIV or - substitute statement from a brokerage - firm,list the firm's name as the payer and enter the ordinary dividends - shown on that form. 6 Add the amounts on line 5. Enter the total here and on Form 1040, line 9a ► 6 12, 7 71 . Note. If line 6 is over$1,500, you must complete Part III. Part III You must complete this part if you(a)had over$1,500 of taxable interest or ordinary dividends: or (b) had a Foreign foreign account; or(c)received a distribution from, or were a grantor of, or a transferor to, a foreign trust. Yes No Accounts and 7a At any time during 2004, did you have an interest in or a signature or other authority over a financial account Trusts in a foreign country, such as a bank account, securities account, or other financial account? See instructions for exceptions and filing requirements for Form TD F 90-22.1 X (See ructions.) b If'Yes,' enter the name of the foreign country. inst8 During 2004, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If'Yes,'you may have to file Form 3520. See instructions X BAA For Paperwork Reduction Act Notice,see Form 1040 instructions. FDIA0401L 05/24/04 Schedule B (Form 1040) 2004 SCHEDULED OMB No. 1545 0074 (Form 1040) Capital Gains and Losses 2004 ► Attach to Form 1040. ► See Instructions for Schedule D(Form 1040). Department of the Treasury Internal Revenue Service (99) ► Use Schedule D-1 to list additional transactions for lines 1 and 8. 12 Name(s)shown on Form 1040 Your social security number WILDE AND SHIRLEY SADJADI SOTOMAYOR ,214-11-4074 ILl'itaksi Short-Term Capital Gains and Losses — Assets Held One Year or Less (a)Description of (b)Date acquired (C)Date sold (d)Sales puce (e)Cost or other bass (f)Gain or(loss) properly(Example: (Mo,day,yr) (Mo,day,yr) (see instructions) (see instructions) Subtract ie;'c 100 shares XYZ Co) 1 2 Enter your short-term totals, if any, from Schedule D-1, line 2 2 3 Total short-term sales price amounts.Add lines 1 and 2 in column (d) 3 4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 4 5 Net short-term gain or (loss)from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 5 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions 6 7 Net short-term capital gain or(loss).Combine lines 1 through 6 in column (f) 7 (,C :r LI ...J Long-Term Capital Gains and Losses —Assets Held More Than One Year (a)Description of (b)Date acquired (C)Date sold (d)Sales price (e)Cost or other basis (f)Gain or(loss) property(Example: (Mo,day,yr) (Mo,day,yr) (see instructions) (see instructions) Subtract 100 shares XYZ Co) 8 9 Enter your long-term totals, if any, from Schedule D-1, line 9.... 9 10 Total long-term sales price amounts.Add lines 8 and 9 in column (d) 10 11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824 11 2, 296 . 12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 12 13 Capital gain distributions.See instrs 13 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions 14 15 Net long-term ge2 capital gain or(loss).Combine lines 8 through 14 in column (f). Then go to Part Ill on p15 2, 296. BAA For Paperwork Reduction Act Notice,see Form 1040 instructions. Schedule D (Form 1040) 20G: FDIA0612L 11/02/04 Schedule D(Form 1040)2004 WILDE AND SHIRLEY SADJADI SOTOMAYOR 214-11-4074 Page 2 Summary 16 Combine lines 7 and 15 and enter the result. If line 16 is a loss, skip lines 17 through 20, and go to line 21. If a gain,enter the gain on Form 1040, line 13, and then go to line 17 below 16 2, 2 9 6. 17 Are lines 15 and 16 both gains? X Yes.Go to line 18. No.Skip lines 18 through 21, and go to line 22. 18 Enter the amount, if any, from line 7 of the 28%Rate Gain Worksheet in the instructions 18 0 . 19 Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet in the instructions o' 19 2, 2 9 6 . 20 Are lines 18 and 19 both zero or blank? El Yes.Complete Form 1040 through line 42, and then complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040. Do not complete lines 21 and 22 below. X- No.Complete Form 1040 through line 42, and then complete the Schedule D Tax Worksheet in the — instructions. Do not complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Form 1040, line 13, the smaller of: • The loss on line 16 or 21 • ($3,000), or if married filing separately, ($1,500) Note.When figuring which amount is smaller, treat both amounts as positive numbers. . 22 Do you have qualified dividends on Form 1040, line 9b? El Yes.Complete Form 1040 through line 42, and then complete the Qualified Dividends and Capital Gain Tax Worksheet in the Instructions for Form 1040. No. Complete the rest of Form 1040. Schedule D (Form 1040) 2004 FDIA0612L 11/02/04 Schedule E (Form 1040)2004 13 Page 2 Name(s)shown on return.Do not enter name and social security number if shown on Page 1. Your social security number WILDE AND SHIRLEY SADJADI SOTOMAYOR 214-11-4074 Caution:The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-1. _ Income or Loss From Partnerships and S Corporations Note.If you report a loss from an at-risk activity for which any amount is not at risk, you must check column(e)on line 28 and attach Form 6198. See instructions. 27 Are you reporting any loss not allowed in a prior year due to the at•risk or basis limitations, a prior year unallowed loss from a passive activity (if that loss was not reported on Form 8582), or unreimbursed partnership expenses? . . X Yes No If you answered 'Yes,' see instructions before completing this section. • • (b)Enter P (c) Employer (e)Check 28 (a)Name for partnership; f if (d)orenersgn identification any amount S S parthi number is not at ris corporor ation p k. ASEE STATEMENT 1 B C D Passive Income and Loss Nonpassive Income and Loss (f)Passive loss allowed (g)Passive income (h)Nonpassive loss (i)Section 179 (j)Nonpassive (attach Form 8582 if required) from Schedule K-1 from Schedule K-1 expense deduction income from from Form 4562 Schedule K•1 A B C D 29a Totals ?' +Fa " 74 . rf " t t` ' 12, 921 . 500.b Totals , :. 30 Add columns (g)and (j)of line 29a 30 7 4 . 31 Add columns (f), (h), and (i) of line 29b 31 -13, 4 21 . 32 Total partnership and S corporation income or(loss).Combine lines 30 and 31. Enter the result here and include in the total on line 41 below 32 -13, 3 4 7 . PP, II, Income or Loss From Estates and Trusts 33 (a)Name (b)Employer ID no. A B Passive Income and Loss Nonpassive Income and Loss (c)Passive deduction or loss allowed (d)Passive income (e)Deduction or loss (f)Other income (attach Form 8582 if required) from Schedule K-1 from Schedule K-1 from Schedule K-1 A B 34a Totals 4V iri f b Totals 35 Add columns (d)and (f)of line 34a 35 36 Add columns (c)and (e)of line 34b 36 37 Total estate and trust income or(loss).Combine lines 35 and 36. Enter the result here and include in the total on line 41 below 37 pra,Va Income or Loss From Real Estate Mortgage Investment Conduits (REMICs) — Residual Holder 38 (a)Name (b)Employer • (c)Excess inclusion (d)Taxable income (e)Income from from Schedules Q, (net loss) from identification number Schedules Q, line 3b line 2c(see instructions) Schedules Q, line lb 39 Combine columns (d) and (e) only. Enter the result here and include in the total on line 41 below 39 PAW Summary 40 Net farm rental income or (loss) from Form 4835. Also, complete line 42 below 40 41 Total income or(loss).Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Form 1040, line 17 41 -13, 347 . 42 Reconciliation of farming and fishing income. Enter your gross farming and fishing income reported on Form 4835, line 7; Schedule K-1 (Form 1065), box 14, code B; Schedule K-1 (Form 1120S), box 17, code N; and Schedule K 1 (Form 1041), line 14 (see instructions) 42 43 Reconciliation for real estate professionals. If you were a real estate professional (see instructions), enter the net income or (loss) you reported anywhere on Form 1040 from all rental real estate activities in which you materially participated under the passive activity loss rules 43 BAA FDiz2302L 05/12/04 Schedule E (Form 1040) 2004 Form L�-F1rr��//��//�� Child and Dependent Care Expenses OMB Nc ' `•_,� P.Attach to Form 1040. 2004 Department of the Treasury ► See se crate instructions. 21 Internal Revenue Service (99) p Name(s)shown on Form 1040 Your social security number WILDE AND SHIRLEY SADJADI SOTOMAYOR 214-11-4074 Before you begin:You need to understand the following terms. See Definitions in the instructions. • Dependent Care Benefits • Qualifying Person(s) • Qualified Expenses WM Persons or Organizations Who Provided the Care — You must complete this part. (If you need more space, use the bottom of page 2.) 1 (a)Care provider's name (b)Address (c) Identifying no. (d)Amount paid (no., street, apt no., city, state, and ZIP code) (SSN or EIN) (see instructions) 711 WILLOW LANE - KINDERCARE LEARNING CENT SLEEPY HOLLOW, IL 60188 63-0941966 4, 442 . 600 DUNDEE AVE FOX RIVER COUNTRY SCHOOL ELGIN, IL 60120 36-2181971 3, 407 . Did you receive No ► Complete only Part II below. dependent care benefits? Yes ► Complete Part III on page 2 next. Caution. If the care was provided in your home, you may owe employment taxes. See the instructions for Form 1040, line 61. [fiki Credit for Child and Dependent Care Expenses 2 Information about your qualifying person(s). If you have more than two qualifying persons, see the instructions. (a)Qualifying person's name (b)Qualifying person's social (c)Qualified security number expenses you incurred and paid in 2004 for the person First Last listed in column (a) GABRIELA SOTOMAYOR 344-94-4726 1, 427 . NATHAN SOTOMAYOR 326-98-1423 6, 422 . 3 Add the amounts in column (c) of line 2. Do not enter more than $3,000 for one qualifying person or $6,000 for two or more persons. If you completed Part III, enter the amount from line 32 3 6, 000 . 4 Enter your earned income.See instructions 4 58, 296. 5 If married filing jointly, enter your spouse's earned income (if your spouse was a student or was disabled, see the instructions); all others,enter the amount from line 4 5 134, 252 . 6 Enter the smallest of line 3,4, or 5 6 6, 000 . 7 Enter the amount from Form 1040, line 37 7 171, 543 . 8 Enter on line 8 the decimal amount shown below that applies to the amount on line 7 If line 7 is: If line 7 is: But not Decimal But not Decimal Over over amount is Over over amount is $0— 15,000 .35 $29,000—31,000 .27 15,000— 17,000 .34 31,000— 33,000 .26 17,000— 19,000 .33 33,000— 35,000 .25 8 X .20 19,000— 21,000 .32 35,000— 37,000 .24 21,000—23,000 .31 37,000— 39,000 .23 23,000—25,000 .30 39,000—41,000 .22 25,000—27,000 .29 41,000—43,000 .21 27,000— 29,000 .28 43,000— No limit .20 9 Multiply line 6 by the decimal amount on line 8. If you paid 2003 expenses in 2004, see the instructions 9 1, 200 . 10 Enter the amount from Form 1040, line 45, minus any amount on Form 1040; line 46 10 29, 325 . 11 Credit for child and dependent care expenses. Enter the smaller of line 9 or line 10 here and on Form 1040, line 47 11 1, 200 . BAA For Paperwork Reduction Act Notice,see separate instructions. Form 2441 (2004) FDIA3212L 11/16/04 Form 4797 Sales of Business Property °"'B No 154'V1 (Also Involuntary Conversions and Recapture Amounts 2004 Under Sections 179 and 280F(bx2)) Department of the Treasury ► Attach to your tax return. See separate instructions. Internal Revenue Service (99) 27 Name(s)shown on return Identifying number WILDE AND SHIRLEY SADJADI SOTOMAYOR 214-11-4074 1 Enter the gross proceeds from sales or exchanges reported to you for 2004 on Form(s) 1099-B or 1099-S or substitute statement) that you are including on line 2, 10, or 20 (see instructions) 1 , ' Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other Than Casualty or Theft — Most Property Held More Than 1 Year (see instructions) 2 (e)Deprecrahon (f)Cost or otne, (a)Description (b)Date acquired (C)Date sold (d)Gross allowed or bans.plus (g)Gain or(loss) of property (month,day,year) (month,day,year) sales pace allowable since improvements and Subtract acgwsd,on expense of sale sun-,of a,c FROM K-1 2, 324 . 3 Gain, if any, from Form 4684, line 39 3 4 Section 1231 gain from installment sales from Form 6252, line 26 or 37 4 5 Section 1231 gain or (loss) from like-kind exchanges from Form 8824 5 6 Gain, if any, from line 32, from other than casualty or theft 6 7 Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows 7 2, 32 4 . Partnerships(except electing large partnerships)and S corporations.Report the gain or (loss) following the instructions for Form 1065, Schedule K, line 10, or Form 1120S, Schedule K, line 9. Skip lines 8, 9, 11, and 12 below. All others. If line 7 is zero or a loss, enter the amount from line 7 on line 11 below and skip lines 8 and 9. If line 7 is a gain and you did not have any prior year section 1231 losses, or they were recaptured in an earlier year, enter the gain from line 7 as a long-term capital gain on Schedule D and skip lines 8, 9, 11, and 12 below. 8 Nonrecaptured net section 1231 losses from prior years (see instructions) 8 2 8 . 9 Subtract line 8 from line 7. If zero or less, enter -0-. If line 9 is zero enter the gain from line 7 on line 12 below. If line 9 is more than zero, enter the amount from line 8 on line 12 below and enter the gain from line 9 as a long-term capital gain on Schedule D (see instructions) 9 2, 2 9 6 . r -A . , Ordinary Gains and Losses 10 Ordinary gains and losses not included on lines 11 through 16 (include property held 1 year or less): 11 Loss, if any, from line 7 11 12 Gain, if any, from line 7 or amount from line 8, if applicable 12 2 8 . 13 Gain, if any, from line 31 13 14 Net gain or(loss) from Form 4684, lines 31 and 38a 14 15 Ordinary gain from installment sales from Form 6252, line 25 or 36 15 16 Ordinary gain or (loss) from like-kind exchanges from Form 8824 16 17 Combine lines 10 through 16 17 2 8 . 18 For all except individual returns, enter the amount from line 17 on the appropriate line of your return and skip lines a and b below. For individual returns, complete lines a and b below: a If the loss on line 11 includes a loss from Form 4684, line 35, column (b)(ii), enter that part of the loss here. Enter the part of the loss from income-producing property on Schedule A (Form 1040), line 27, and the part of the loss from property used as an employee on Schedule A (Form 1040), line 22. Identify as from 'Form 4797, line 18a.' See instructions 18a b Redetermine the gain or (loss)on line 17 excluding the loss, if any, on line 18a. Enter here and on Form 1040, line 14 18b 28 . BAA For Paperwork Reduction Act Notice,see instructions. Form 4797 ;20:4. FDIZ1001L 10/12/04 Form 5329 0MB No. t 5hs•:2 3 Additional Taxes on Qualified Plans (Including IRAs), and Other Tax-Favored Accounts 2004 ► Attach to Form 1040. Department of the Treasury Internal Revenue Service (99) See separate instructions. 29 Name of individual subject to additional tax.If married filing jointly,see the instructions. Your social security number WILDE SOTOMAYOR 214-11-4074 Fill in Your Address Home address(number and street),or P.O.box if mail is not delivered to your home Apartment number Only If You Are Filing This Form by Itself and Not With Your City,town or post office State ZIP code If this is an amended Tax Return return, check here If you only owe the additional 10% tax on early distributions, you may be able to report this tax directly on Form 1040, line 59, without filing Form 5329. See the instructions for Form 1040, line 59. IFOTAIN Additional Tax on Early Distributions Complete this part if you took a taxable distribution, before you reached age 59-1/2, from a qualified retirement plan (including an IRA)or modified endowment contract (unless you are reporting this tax directly on Form 1040—see above). You also may have to complete this part to indicate that you qualify for an exception to the additional tax on early distributions or for certain Roth IRA distributions (see instructions). 1 Early distributions included in income. For Roth IRA distributions, see instructions 1 303 . 2 Early distributions included on line 1 that are not subject to the additional tax (see instructions). Enter the appropriate exception number from the instructions: 2 3 Amount subject to additional tax. Subtract line 2 from line 1 3 3 0 3 . 4 Additional tax.Enter 10% (.10) of line 3. Include this amount on Form 1040, line 59 4 30 . Caution: If any part of the amount on line 3 was a distribution from a SIMPLE IRA, you may have to include 25% of that amount on line 4 instead of 10% (see instructions). ifaREIN Additional Tax on Certain Distributions From Education Accounts Complete this part if you included an amount in income, on Form 1040, line 21, from a Coverdell education savings account(ESA)or a qualified tuition program (QTP). 5 Distributions included in income from Coverdell ESAs and QTPs 5 6 Distributions included on line 5 that are not subject to the additional tax (see instructions) 6 7 Amount subject to additional tax. Subtract line 6 from line 5 7 8 Additional tax.Enter 10% (.10) of line 7. Include this amount on Form 1040, line 59 8 MOM Additional Tax on Excess Contributions to Traditional IRAs Complete this part if you contributed more to your traditional IRAs for 2004 than is allowable or you had an amount on line 17 of your 2003 Form 5329. 9 Enter your excess contributions from line 16 of your 2003 Form 5329 (see instructions). If zero, go to line 15 9 10 If your traditional IRA contributions for 2004 are less than your maximum allowable contribution, see instructions. Otherwise, enter -0- 10 11 2004 traditional IRA distributions included in income (see instructions) 11 12 2004 distributions of prior year excess contributions(see instructions) 12 13 Add lines 10, 11, and 12 13 14 Prior year excess contributions. Subtract line 13 from line 9. If zero or less, enter -0- 14 15 Excess contributions for 2004(see instructions) 15 16 Total excess contributions. Add lines 14 and 15 16 17 Additional tax.Enter 6% (.06)of the smaller of line 16 or the value of your traditional IRAs on December 31, 2004 including 2004 contributions made in 2005). Include this amount on Form 1040, line 59 17 10111NA, Additional Tax on Excess Contributions to Roth IRAs Complete this part if you contributed more to your Roth IRAs for 2004 than is allowable or you had an amount on line 25 of your 2003 Form 5329. 18 Enter your excess contributions from line 24 of your 2003 Form 5329 (see instructions). If zero, go to line 23. 18 19 If your Roth IRA contributions for 2004 are less than your maximum allowable contribution, see instructions. Otherwise, enter -0- 19 20 2004 distributions from your Roth IRAs (see instructions) 20 21 Add lines 19 and 20 21 22 Prior year excess contributions. Subtract line 21 from line 18. If zero or less, enter -0- 22 23 Excess contributions for 2004(see instructions) 23 24 Total excess contributions. Add lines 22 and 23 24 25 Additional tax.Enter 6% (.06) of the smaller of line 24 or the value of your Roth IRAs on December 31, 2004(including 2004 contributions made in 2005). Include this amount on Form 1040, line 59 25 BAA For Paperwork Reduction Act Notice,see separate instructions. FDIA5012L 11/22/04 Form 5329 (2004 thgttC. I I I I Mixed Use Property 169 E. Chicago Street Elgin, Kane County, Illinois As Of September 20, 2005 By Robert E. Kenney, SRA Robert E. Kenney, SRA Real Estate Appraiser Member-Appraisal Institute Illinois Certified General Appraiser 515 East Fairview Street (847)392-0793 Arlington Heights, Illinois 60005 (847)392-5270 Fax September 26, 2005 Mr. Michael Burg Senior Vice President American Chartered Bank 932 West Randolph Street Chicago, Illinois 60607 Dear Mr. Burg: In accordance with your request for an estimate of market value of the property known as: Mixed Use Property 169 E. Chicago Street Elgin, Kane County, Illinois the undersigned submits the following report which describes our method of approach and contains data gathered in our investigation. The appraisal is made in accordance with the Code of Ethics of the Appraisal Institute and conforms to the Uniform Standards of Professional Appraisal Practice as adopted by the Appraisal Standards Board of the Appraisal Foundation, excepting the Departure Provision. The property rights appraised are fee simple estate and financing is available in the metropolitan area for this property type. I I It is my opinion that the "as is" value of the above captioned property, as of September 20, 2005, is $210,000. It is my opinion that the "subject to completion" value of the above captioned property, as of April 6, 2006, will be $370,000. Respectfully submitted, Ro rt E. Ke e S Y� Illinois License No. 153-000913 Executive Summary Property Location 169 E. Chicago Street Elgin, Kane County, Illinois Improvements A mixed use building with first floor commercial and second floor offices each containing 1,720 square feet or 2,440 total. Age 105± years. Site The subject site is a rectangular shaped, inside parcel containing 2,543± square feet. Land to Building Ratio 0.74 to 1 Flood Plain Zone C Zoning CC I, Center City District. Approaches to Value As Is As Complete Cost Approach NA NA Sales Comparison Approach $210,000 $360,000 Income Capitalization Approach NA $370,000 Final Value As Is $210,000 As Complete $370,000 Date of Valuation As Is September 20, 2005 As Complete April 1, 2006 Date of Inspection September 20, 2005 REK Page 11 Premises of the Appraisal Purpose The purpose of this appraisal is to estimate the market value of the fee simple estate of the two-story, mixed use building, located at 169 Chicago Avenue, Elgin, Kane County, Illinois, as of September 20, 2005. This market value appraisal is prepared for the exclusive use of American Charter Bank for financing purposes. Scope The scope of this appraisal included a complete appraisal of the property, with a summary report format. We inspected the subject property and its immediate environs. Various cost, sales and rental data was collected from public and private resources and applied to two of the three approaches to value. Additionally, all improved sales and leases received an external inspection. Property Rights The property rights are fee simple estate. This interest is defined as "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." I I REK Page 12 L Premises of the Appraisal Market Value Definition The Uniform Standards of Professional Practice, as established by the Appraisal Foundation and FIRREA, defines "Market Value" as: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Exposure Time The time needed for market exposure to achieve the appraised value estimate is three to six months. This time frame is based on broker's statements familiar with this market. I REK Page 13 Property Information Legal Description See addenda Zoning The subject property is zoned CCI, Center City District Flood Information According to the Federal Emergency Management Agency, the subject property is in Zone C, an area of minimal flooding, per Department of Housing and Urban Development, Federal Insurance Administration flood map for the community, Panel No. 170087 0070, dated Apri17, 1982. Real Estate Taxes The subject property is identified under the following permanent index number (PIN) Equalized 2004 Real Permanent Assessed Assessed Estate Taxes Index Number Valuation Value (Payable 2005) 06-14-434-007 $44,345 $47,799 $4,255.50 The Kane County Assessor's valuation for industrial building real estate represents 33% of his market value estimate. In the subject's case, this value is $143,397, computed as follows ($47,799 / .3333). Said value is 68% of appraiser's market value estimate, with real estate taxes equaling $1.24 per square foot of building area. Estimated Real Estate Taxes The most similar property as to age and refurbishment is the Leath Building at 162-164 Chicago Street with real estau taxes at full assessment equaling $1.90 per square foot. The subject's present tax assessment value of $143,397 equals 68% of the appraiser's value. Dividing 68% into real estate taxes of $1.24 per square foot equals $1.82 per square foot. The appraiser elects to round up to $1.90 per square foot reflecting the completion of the rehabbing efforts. REK Page 14 Property Information Property History The subject property sold December, 2004 for $200,000 and no seller financing was provided. According to the public records, the subject property had not sold within the previous three years. Environmental Factors The appraiser is not qualified for judging environmental problems. However, a Phase I Environmental Audit is recommended. REK Page 15 I 1 MIMIMMOMMNMNMM=MMMOMMK 1 I I . ii,, I -1.1. 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I 11 rir-PYM ,-,'.:',"•/-L-47:91-0 .•:••11,)if•••••,----.4 - 1 = • --•.__Lr. -,------,,...... .._. - - ----Adarns-St _ r,y-friri•J, i 1--,,--;A._wz,--- 6-=.7ii, ,g,,,N12,1LPT- • -• - --;---0. - --r., = - - -__=_-_-....-z-::---,- ‘,-,.. 1 L t`..-:4iii. .---- 'iT_;-:.!,,.. --..-. -- -• .-...-•,---- 4- ___. _ - ' .171•?! .2-"'"*". 1..... -- ._.... tc-_. a i- .......-•-.-....-,..-.,..-, -,..- - Spartan,.• :',, . Du ooc.)or''';i:,..-,...T:_ •,,;,_,,..E.-.1,. -n6 --__-..„-----77-__„,...z--.... filf-- -----_-_-..---- .,.- la,.-m-i_JDJ ,..i,) - --- V40 .. .: 4!• '- 1 1 • • - -- - 0 2000 Microsoft Corp.and/or rts suppliers.All rights reserved. i . ' . • • I __ Property Location Area Data The subject property is in Elgin, Kane County, a suburb located 35± miles northwest of downtown Chicago. It is located in the north central part of DuPage County. Elgin is an older community incorporated in 1854. It is considered a very large town having 25 square miles. The 2000 population of 94,487 indicates a 23% increase over 1990 and a 48% increase over 1980. The average population age is a low 30.9 years with a high average family size of 3.49 persons. The city's per 100,000 2001 crime rate was 191.6 and 2002 was 223.9, which is lower than the U.S. average of 330.6. According to the 2000 U.S. Census, 67.9% of its housing is single unit construction. Owner occupancy was 72.0%, versus the national average of 67%±. Also, 81.5%± of its housing was constructed before 1990. The NIPC forecasts a 2020 population of 142,648. The median home sale price for the year ending June 2004 was $203,552. This compares to Chicago's 200± suburbs whose mean price was $250,000. Elgin's price reflects a 6.58% increase over one year and 60.18% increase since 1994. Elgin's 2000 median family income of $58,404 compares favorably to its mean housing price, indicating a 3.49:1 ratio. The median monthly rent was $675. Teenagers attend either Larkin or Elgin High Schools, whose average 2004 ACT test scores were 18.7 and 17.5 respectively, versus the state's 20.0 average. Test scores of 250 high schools, representing Chicagoland's 6 Counties. Only four non-Cook County schools are below Elgin's 17.5 score, which is a ranking of 139. Transportation is considered good with 1-90 (NorthWest Tollroad) abutting the north boundary. Route 20 in Elgin is in part a limited access four lane road and connects on the east with the Elgin-O'Hare Expressway. The principle north/south roadways are Routes 25 and 31 which run through the approximate center of town. Randall Road is on the westerly edge which street has become Elgin's principle retail street. Metra commuter trains provide 45± minute express service to downtown Chicago. I i REK Page 16 I Properly Location Brief History of Downtown Elgin's Retail District Elgin became a thriving community based on it served by the Fox River and when the railroad began serving the town in 1847. With the Civil War it became a very strong industrialized city. This environment led to the start of the world famous Elgin Watch Company in 1864. Another well known company was established in 1886, that being Borden's Milk. In 1983 a downward environment blow to Elgin's downtown was noted by the closing of its two department stores — Sears and Spies. These closings helped "jump start" several updating features including razing several dated properties, providing TIF districts and in 1993 the location of its Riverboat Gambling Palace. According to city officers, the Riverboat TIF taxes provide approximately $3,000,000 plus it contributed an additional $22,000,000 in annual fees in 2004. According to various city officials and real estate brokers, the business environment has begun to change. Some of these positive features are several new townhouses and condominium buildings approximately three blocks to the subject's south on Grove Street. The condominiums are reportedly sold out with over 50± townhouses sold. This street parallels and fronts the Fox River on the east side. Also scheduled to start in one month is a large condominium and townhouse development at the southwest corner of Chicago Avenue and Grove Street (former Spies store and parking garage) which is one block west of the subject property. Conversely, several store owners stated business is slow. Immediate Area The subject property is approximately 2± blocks east of the Fox River which side is Elgin's dominant business/retail district. The vast majority of the structures were constructed before the 1929 depression. With the exception of isolated buildings, the majority of the structures are two and three stories. The first floors are either retail or offices with the second floor offices or apartments. Additional efforts to revive the downtown area had the city offering property owners cash to preserve/update their building's fronts. The subject's block is typical of the earlier building descriptions with a vacant parking lot abutting the subject's east boundary, Spring Street. There is also a 30± year old three-story free self-parking garage at Spring Street's northeast corner. It should be noted Chicago Street is one of only four Elgin streets with a bridge crossing the Fox River. REK Page 17 Property Location Value Trends Elgin is an established industrial/residential community. Its near and long term general real estate value trends are assumed to outpace the annual inflation rate. More specifically, its downtown/central business district has begun to be revived. According to the Elgin Township Assessor, seven to ten years ago some downtown properties were purchased with the down payment comprising a "credit card payment". His analysis is the central business district values have increased since then, at a positive 6% to 10% annually. Based on the city's continuing efforts and additional higher income residents purchasing condominiums and townhouses, the central business district's future appears to be brighter. f I I I I REK Page 18 I i Site and Building Sketch swim:a.? -,..v::---,...-1,5„:,.. •- .- t"2.4 isiettnagEna. - ___...,4- • ••-- - . N .. .-1: Zit:t6CCIllanar -,• * (421=1:. •i•, 64 $ •.- 0 lOr _.. :r....vai_ ___..... 4 . • .--WEITIR_IE..C:1= Ejwi 44.4:=5 =415 1....Crl, --121P-4,51102,EJAM-17 Ofig /I , : 2:Malin]11511.1.x,ww.., .:Ff wrf i > ' f ...._, ,. fA k foop• - #4,- - -)• "I'K-1..1 i k,-Imilitel . _._ ,F4 rn . 013 161 / 1 , If • ir I--:: Pi 1 j • .„.„ . 0....., , : ...1 : 1 40?.....triro 1 ----d)4C.: IN-ML•ar"4, Adre Wtolersta•oVr Or + _ .. ...—.........,.................7-7 3211c-IP i -2I.iliti eity.A C...:...) z • I 1 ' 3 ; ... Nt, 1 _ fisztiaint-49. : • 710taCC32 • -dontu.i - ',, _..:mlAzTe- ?,_.___.•.. cl'‘ N Kew," N.-L- .\1 .1.../-1 ---. 1 , it-..4111JAISP ,I*J ____' \ . I I Property Description Site This inside parcel is rectangular in shape. It has 21.5± feet of frontage on the south side of Chicago Avenue and extends back 118.28± feet to a paved alley. The site adjoining 2,543 t square feet. It is level with a � g streets, and is served by all standard utilities. Loading access to the site is from the rear alley. Site Improvements Approximately 800 square feet of predominantly asphalt paving for two cars (one per 1,720 square feet of building area). Land to Building Ratio 0.74 to 1 (2,543 square feet / 3,440 square feet). Building Description A two-story and basement, mixed use property. Age Built circa 1900 (105± years). Size First Floor 1,720 square feet Second Floor 1,720 square feet Total 3,440 square feet Basement 1,720 square feet Construction Data Foundation and Basement Floor Poured reinforced concrete. Exterior Walls Front Face brick. Side The east side is common brick with stucco type finish. Rear Common brick. Sash First Floor The front elevation is single pane in rigid metal frame. Second Floor Double hung 1/2" thermopane in metal frame on three elevations. REK Page 19 Property Description Roof Flat, assumed to be composition cover over rigid insulation on wood joists. Loading Limited to standard doors. Interior Structure Clear span with wood joists supported by exterior load bearing walls. Ceiling Heights Basement 9±' First Floor 14±' Second Floor 12±' Stairs Two sets; one front interior to second floor and one from first floor to basement. Mechanical Data HVAC Presently combination unit of gas fired heat and electric air-conditioning with forced air distributed through concealed ducts. Plumbing Presently gutted but having copper tubing and plastic waste pipes. Sprinkler Note. Electrical Estimated at 100 amperes. Finish Presently gutted. Miscellaneous Skylight; rear wood deck. Quality The base building is good quality with very high ceiling clearances. Condition Exterior The front is very good with the balance average. Interior Gutted. REK Page 20 Property Description Design The base building is rectangular in shape, indicating a slightly low front to depth ratio of 0.27:1. Yet its building depth of 80-feet is considered a positive with many central business district buildings well over 100- feet. The approximately 14-foot and 12-foot ceiling heights are well above average. Proposed Improvements and Interior Finish Flooring Basement Quarry tile floor First Floor Quarry tile entrance; area balance bamboo with kitchen and washroom ceramic tile. Second Floor Bamboo and part slate; ceramic tile in washroom. Walls Painted drywall. Ceilings Basement Dropped acoustic tile or drywall First Floor Decorative tin with attendant and/or sconces Second Floor Dropped acoustic tile with re cessed ecessed fluorescent and/or CAM All outside walls will be insulated as well as the second floor ceiling. Electrical Extensive re-wiring, 400 ampere service and providing new meter locations with three meters reporting; 1) part basement and first floor; 2) second floor; and 3) common areas. HVAC Two units: Gas fired heat and electric air-conditioning. The finished basement and first floor will have exposed decorative ceiling suspended ducts. The second floor will be concealed by ceiling suspended tiles. Each floor will be metered separately. REK Page 21 Property Description Plumbing Four new washrooms. Basement One two-fixtures; toilet and sink. First Floor Two two-fixtures; toilet and sink. Second Floor One two-fixtures; toilet and sink. If the basement is approved for restaurant use, it needs to be sprinklered per Code Department. Second floor offices will have approximately 26 lineal feet of wall and base cabinets with built-in sink. As Completed The approximate front 50% of the basement will be finished as a bar area. The first floor will have front 50%± as seating area with the balance kitchen, washrooms and storage including rear staircase servicing the basement and second floor. The second floor will be first class offices with reception area, built-in reception desk/wall area. There will be a total of seven individual offices (including file area) all having exterior windows plus one washroom. Access is from the front (street elevation) and interior staircase from the first floor. Stairs Basement One set to the basement at the building's northwest corner (new). 1#to 2nd Floor New at the building's approximate southwest corner. Existing A shared staircase with the adjacent property to the west from the street elevation to the second floor. Construction is basically wood frame for all stairs. General Comment The appraiser assumes existing plumbing, heating, air- conditioning and electrical systems will be in acceptable working order. I I REK Page 22 I Highest and Best Use Definition _ _ Highest and best use is described by the Appraisal Institute in The Appraisal of Real Estate, as follows: _ _ The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The purpose of the appraisal is to estimate market value. The highest and best use analysis identifies the most profitable, competitive use to which the property can be put. Therefore, highest and best use is a market driven concept. Procedure In reaching an opinion as to the highest and best use, we have taken into consideration the previously mentioned definition. There are essentially four stages of analysis, the use must be: 1. Legally Permissible. 2. Physically Possible. 3. Financially Feasible. 4. Maximally Productive. Highest and Best Use as if Vacant Physically Possible - The subject site is basically level to street grade. The site has benefit of all municipal and public utilities. Thus, a wide variety of uses would be possible, including residential, commercial, industrial and offices. Legally Permissible - As previously noted, the subject site is zoned CCI, Center City District and the present improvements are considered to be a legal conforming use under this classification. Additionally, this zoning classification allows for numerous mixed uses. Therefore, mixed use types of buildings could be constructed on the subject site. REK Page 23 Highest and Best Use Financially Feasible - In view of other mixed uses in the area that are making a positive contribution to the land, it is my opinion that a mixed use building on the subject site would be financially feasible. Maximally Productive - In view of the surrounding environs, the CCI Center City District classification and extensive downtown industrial type neighborhood improvements, it is my contention that the subject, if vacant, most likely would be best developed with a similar mixed use. Thus the highest and best use of the subject site, as if vacant, which is physically possible, legally permissible, financially feasible and maximally productive, would be a mixed use. Highest and Best Use as Improved The site, as improved, represents the highest and best use in my opinion. A demand exists as evidenced by the immediate area's mixed use occupants. Furthermore, and most importantly, no alternate economic use exists which would warrant demolition of the building improvements. Therefore, it is my opinion that the highest and best use of the subject property is a continuation of its mixed use. I I I I I REK Page 24 Valuation of the Property The valuation of real estate is derived through three basic approaches to value: the Cost Approach, the Sales Comparison Approach and the Income Capitalization Approach. From the indication provided by these analyses to the extent they are applicable and the weight accorded to each, an opinion of value is reached based upon expert judgment within the outline of the appraisal process. The methodology of each approach is summarized below. The Cost Approach The Cost Approach is devoted to an estimate of the physical value of the property. The market value of the land, is estimated by market comparison, to which is added the depreciated value of the improvements on the site. The latter is derived based upon an estimate of the cost of reproducing or replacing the improvements, from which the accrued depreciation is deducted. The Sales Comparison Approach The Sales Comparison Approach is based upon the principle of substitution; that is, when a property is replaceable in the market, its value tends to be set at the cost of acquiring an equally desirable substitute property, assuming no costly delay in making the substitution. Since two properties are rarely identical, the necessary adjustments for such differences in location, quality, size, services and market appeal are a function of appraisal experience and judgment. The Income Capitalization Approach ' The Income Capitalization Approach involves an analysis of the property in terms of its ability to provide a net annual income after payment of operating and fixed expenses. The estimated net annual income is then capitalized (or discounted) at a rate commensurate with its relative I duration and the risk involved in the ownership of the property. Capitalization rates may be estimated through market comparison, alternative investment analysis, or calculated through a built-up rate process. The Reconciliation of Value Indications This section of the report is the final analysis and correlation of the applicable approaches to value, relative to their alternative value indications, and a statement of the final opinion of market value. Appraisal Methodology for the Subject Property In this instance, the subject property contains both land and improvements which contribute to the overall value. There is an active market for this property type which is routinely bought and sold. Yet, older buildings are not well suited for the Cost Approach Analysis and it is not used. The Sales Comparison and Income Approach to Value were employed. I REK Page 25 Cost Approach Definition The reproduction cost approach derives a value indication by adding the market value of the land to the depreciated cost of the improvements. The underlying theory of the cost approach is the principle of substitution which states: that no prudent person will pay more for a property than the amount for which the can purchase a site and construct a building of equivalent desirability and utility. Procedure 1. Estimate the market value of the site as though vacant and utilized at its highest and best use by applying the income capitalization approach. 2. Estimate the current reproduction cost of the existing primary improvements. 3. Estimate the accrued depreciation in the improvements. This step identifies the effective age and remaining economic life of the improvements, and delineates components of accrued depreciation; physical deterioration, functional obsolescence and external obsolescence. 4. Deduct the accrued depreciation from the building's current reproduction cost to derive the estimated depreciated value of the improvements. 5. Estimate the depreciated value of accessory buildings and site improvements and add these values to obtain the total depreciated cost of all improvements. 6. Add the depreciated value of all improvements to the market value of the vacant site to obtain the indicated value of the property. This approach was not used. REK Page 26 Sales Comparison Approach Definition The sales comparison approach is an appraisal technique by which a market value indication is derived by comparing the subject property to current, comparable sales and offerings relative to their respective prices. Variations in comparable properties are analyzed, quantified and adjusted to more closely reflect the features of the subject property. The adjusted values are then correlated to obtain a simulated value of the subject property. The reliability of this technique is dependent upon: 1. The availability of sales data. 2. The degree of comparability of each property with the subject property. — 3. Reliability of sales data. 4. Knowledge and adjustment of unusual conditions effecting price or terms of sale. The sales comparison approach is based upon the principle of substitution. This implies that a prudent person will not pay more to buy or rent a property than it will cost to buy or rent a comparable property. Procedure 1. Conduct research to obtain the most recent and comparable property sales and listings in the subject market area. 2. Analyze and make adjustments to comparable sales - considering all relevant differences including time of sale, location, physical and functional features, financing terms and other pertinent factors that affect value. 3. Analyze and interpret the data on the basis of a common and relevant unit of comparison, such as price per square foot of building area. Correlate the simulated values to obtain a value indication for the subject property. - REK Page 27 OF PROPERTY DESCRIBED AS: The on 21 / Westerly in feet of the Weste 22 Tlgihe on the East side of Fox River, efeeet of Lot 2 (ex pt the South 15 feet) in Block 15 City of Elgin, Ka County, Illinois. of the Original Town of h �o I 7. Proposed Floor Plans • ••111111 •` L I • ® ; ., ..., a .:1 01 li -tt O y II ; T :* Illo M ; f .. jE I•y. 1. ;illi :�;:a.:= : 1 I . • ice. ,•` �� •�; 3/11 1 64 ihr 1 ' 10 .t.frilii:, : I 17,3-ik . 1 j ' i ,r1 aii e e • eee a _�= .. i ::i 1.4 �..� • • I �� 4 :•III i Itg fit I� ¢...._..: o I 4 • I - ...J..L ' •1•�•�e� .. GD .. ... _ .. .. . i _ ... l p . . . 0,9 i1::,, .► n4 o o-, I ill I i j 11 I I ' 1111 < 11/T1`/f11 MINN MO` Ill.ad ItooR �,�, Law Of Nun r D of shtr ley 8adjadl I�NDTERIOR Tea Proposed Floor Plans 14 V ill • b. if 1 in fi NI HI b. fl I i. ilif11llt!•: 1 1 ,1 01 9tl ' a ° 4 II, $ t. • ;:� 7 Il i. a . ;' ` 0 - a s lij a,,,,. ;mug a VI ,I :;1 iiillUMIPIMI IID. . j::, 1 • Pr‘qii _7 r ¢ I Ibl ?9 m® J., p �� 111 f �t a=MBw .. Law Offices of Shrrley Sadj adl EDT INTERIOR ERIOR1s .DATA�,„ meruL Map WO Chicago ea.w ARcarrEcrun Proposed Floor Plans . : : 174 tral 116:,:v IlL:"9 1 n.• > 7 HI I r Y. N. (1 ti-4-; .k C " \ '.: • '(-, —1 ,-..i `�� i 111 Iv, pf JIIIII . , • : ii—p . li 11 I:\:::' 1 . • q' 1 oil . . I= ! ii),.1 II lai 1 f 1441.—riil I 11,0 1.1r 11'W I • • - 3 U�.�7iriI i g I\0 ENB s 11 1� -• a MOP ,., z F N 711 1 3I::" 1:! x 1ST a . a 'gaol ; � 0f� > •:�Y:Y:Y:Y:Y:�Y:Y:Y:Y:Y: i i im 1.: goo /' rii ilf; 3 ` . „vie.: Via W I Et7ff U ! la .. olliNE \- i i 0 _ • {ice _ . ^r k D �'�' wawa inma` c rq of o�.a� Law Orrice* INTERIOR arvATYa15 of Shirley SadJddt �.j nT i,� LL1ARCHITECTURE _ .4 189 E.CHICAGO STREET BUILDING IMPROVEMENTS SCHEDULE CONTRACTOR/SUPPUER: DWAYNE TRAD'L SWANSON MARQUQ _WIC PELLA 81EOLE8 ELM (2d quote)), ELECTRICAL $20,400.00 $28,300.00 $28,260.00 (ind life sfy) HVAC $18,600.00 S18,700.00 $12,850.00 ROUGH CARPENTRY $59,500.00 $41,800.00 TRIM CARPENTRY $4,900.00 $18,300.00 DOORS (Ind.door Instate $14,580.00 $9,500.00 (Ind.instal() CABINETRY $17,800.00 $4,500.00 (Ind.Cntrtps) (attwce) DRYWALL&FINISHING $29,500.00 $20,825.00 (incl.paintg) PLUMBING $21 720 00 $11,840.00 $4,978.00 WINDOWS $13,000.00 $4,000.00 $6,110.00 $4,189.00 INSULATION $2,800.00CS O PAINTING $4,700.00c0 SKYLIGHTS $3,000.00 VCT $440.00 O colHARDWOOD FLOOR $27,600.00 $9,800.00 EXTERIOR DECK $7,200.00 n LIFE SAFETY SYSTEM S11�00, Z yp,tit" 119,ja n O c c XH►611- 1, Date: 10/13/2005 10:16:54 am Page: 1 - ,AMORTIZMION Date Description P&I Payment Principal Payment Principal Balance Interest Earned Interest Payment Simple Insurance Rate 10/11/2005 Initial Loan 200,000.00 6.5000 11/11/2005 Regular Payment 2,271.35 1,167.25 198,832.75 1,104.10 1,104.10 6.5000 12/11/2005 Regular Payment 2,271.35 1,209.10 197,623.65 1,062.25 1,062.25 6.5000 2005 Totals: 4,542.70 2,376.35 2,166.35 2,166.35 01/11/2006 Regular Payment 2,271.35 1,180.36 196,443.29 1,090.99 1,090.99 6.5000 02/11/2006 Regular Payment 2,271.35 1,186.88 195,256.41 1,084.47 1,084.47 6.5000 03/11/2006 Regular Payment 2,271.35 1,297.75 193,958.66 973.60 973.60 6.5000 04/11/2006 Regular Payment 2,271.35 1,200.60 192.758.06 1,070.75 1,070.75 6.5000 05/11/2006 Regular Payment 2,271.35 1,241.55 191,516.51 1,029.80 1,029.80 6.5000 06/11/2006 Regular Payment 2,271.35 1,214.08 190,302.43 1,057.27 1,057.27 6.5000 • 07/11/2006 Regular Payment 2,271.35 1,254.67 189,047.76 1,016.68 1,016.68 6.5000 08/11/2006 Regular Payment 2,271.35 1,227.71 187,820.05 1,043.64 1,043.64 6.5000 09/11/2006 Regular Payment 2,271.35 1,234.49 186,585.56 1,036.86 1,036.86 6.5000 10/11/2006 Regular Payment 2,271.35 1,274.53 185,311.03 996.82 996.82 6.5000 11/11/2006 Regular Payment 2,271.35 1,248.34 184,062.69 1,023.01 1,023.01 6.5000 12/11/2006 Regular Payment 2,271.35 1,288.01 182,774.68 983.34 983.34 6.5000 2006 Totals: 27,256.20 14,848.97 12,407.23 12,407.23 01/11/2007 Regular Payment 2,271.35 1,262.34 181,512.34 1,009.01 1,009.01 6.5000 02/11/2007 Regular Payment 2,271.35 1,269.31 180,243.03 1,002.04 1,002.04 6.5000 03/11/2007 Regular Payment 2,271.35 1,372.61 178,870.42 898.74 898.74 6.5000 04/11/2007 Regular Payment 2,271.35 1,283.89 177,586.53 987.46 987.46 6.5000 05/11/2007 Regular Payment 2,271.35 1,322.60 176,263.93 948.75 948.75 6.5000 06/11/2007 Regular Payment 2,271.35 1,298.28 174,965.65 973.07 973.07 6.5000 07/11/2007 Regular Payment 2,271.35 1,336.61 173,629.04 934.74 934.74 6.5000 08/11/2007 Regular Payment 2,271.35 1,312.83 172,316.21 958.52 958.52 6.5000 09/11/2007 Regular Payment 2,271.35 1,320.08 170,996.13 951.27 951.27 6.5000 10/11/2007 Regular Payment 2,271.35 1,357.81 169,638.32 913.54 913.54 6.5000 11/11/2007 Regular Payment 2,271.35 1,334.86 168,303.46 936.49 936.49 6.5000 12/11/2007 Regular Payment 2,271.35 1,372,20 166,931.26 899.15 899.15 6.5000 • 2007 Totals: 27,256.20 15,843.42 11,412.78 11,412.78 01/11/2008 Regular Payment 2,271.35 1,349.80 165,581.46 921.55 921.55 6.5000 02/11/2008 Regular Payment 2,271.35 1,357.25 164,224.21 914.10 914.10 6.5000 03/11/2008 Regular Payment 2,271.35 1,423.24 162,800.97 848.11 848.11 6.5000 04/11/2008 Regular Payment 2,271.35 1,372.60 161,428.37 898.75 898.75 6.5000 05/11/2008 Regular Payment 2,271.35 1,408.93 160,019.44 862.42 862.42 6.5000 06/11/2008 Regular Payment 2,271.35 1,387.96 158,631.48 883.39 883.39 6.5000 07/11/2008 . Regular Payment 2,271.35 1,423.87 157,207.61 847.48 847.48 6.5000 08/11/2008 Regular Payment 2,271.35 1,403.48 155,804.13 867.87 867.87 6.5000 09/11/2008 Regular Payment 2,271.35 1,411.23 154,392.90 860.12 860.12 6.5000 10/11/2008 Regular Payment 2,271.35 1,446.52 152,946.38 824.83 824.83 6.5000 11/11/2008 Regular Payment 2,271.35 1,427.01 151,519.37 844.34 844.34 6.5000 12/11/2008 Regular Payment 2,271.35 1,461.87 150,057.50 809.48 809.48 6.5000 2008 Totals: 27,256.20 16,873.76 10,382.44 10,382.44 01/11/2009 Regular Payment 2,271.35 1,442.96 148,614.54 828.39 828.39 6.5000 02/11/2009 Regular Payment 2,271.35 1,450.92 147,163.62 820.43 820.43 6.5000 03/11/2009 Regular Payment 2,271.35 1,537.55 145,626.07 733.80 733.80 6.5000 04/11/2009 Regular Payment 2,271.35 1,467,42 144,158.65 803.93 803.93 6.5000 05/11/2009 Regular Payment 2,271.35 1,501.19 142,657.46 770.16 770.16 6.5000 06/11/2009 Regular Payment 2,271.35 1,483.81 141,173.65 787.54 787.54 6.5000 07/11/2009 Regular Payment 2,271.35 1,517.14 139,656.51 754.21 754.21 6.5000 08/11/2009 Regular Payment 2,271.35 1,500.37 138,156.14 770.98 770.98 6.5000 Date: 10/13/2005 10:16:55 am Page:2 `AMORTIZATION(continued) Date Description P&I Payment Principal Payment Principal Balance Interest Earned Interest Payment Simple Insurance Rate 09/11/2009 Regular Payment 2,271.35 1,508.66 136,647.48 762.69 762.69 6.5000 10/11/2009 Regular Payment 2,271.35 1,541.32 135,106.16 730.03 730.03 6.5000 11/11/2009 Regular Payment 2,271.35 1,525.49 133,580.67 745.86 745.86 6.5000 12/11/2009 Regular Payment 2,271.35 1,557.70 132,022.97 713.65 713.65 6.5000 2009 Totals: 27,256.20 18,034.53 9,221.67 9,221.67 01/11/2010 Regular Payment 2,271.35 1,542.52 130,480.45 728.83 728.83 6.5000 02/11/2010 Regular Payment 2,271.35 1,551.03 128,929.42 720.32 720.32 6.5000 03/11/2010 Regular Payment 2,271.35 1,628.47 127,300.95 642.88 642.88 6.5000 04/11/2010 Regular Payment 2,271.35 1,568.58 125,732.37 702.77 702.77 6.5000 05/11/2010 Regular Payment 2,271.35 1,599.63 124,132.74 671.72 671.72 6.5000 06/11/2010 Regular Payment 2,271.35 1,586.07\ 122,546.67 685.28 685.28 6.5000 07/11/2010 Regular Payment 2,271.35 1,616.65 120,930.02 654.70 654.70 6.5000 08/11/2010 Regular Payment 2,271.35 1,603.75 119,326.27 667.60 667.60 6.5000 09/11/2010 Regular Payment 2,271.35 1,612.61 117,713.66 658.74 658.74 6.5000 10/11/2010 Regular Payment 2,271.35 1,642.47 116,071.19 628.88 628.88 6.5000 11/11/2010 Regular Payment 2,271.35 1,630.58 114,440.61 640.77 640.77 6.5000 12/11/2010 Regular Payment 2,271.35 1,659.96 112,780.65 611.39 611.39 6.5000 2010 Totals: 27,256.20 19,242.32 8,013.88 8,013.88 01/11/2011 Regular Payment 2,271.35 1,648.74 111,131.91 622.61 622.61 6.5000 02/11/2011 Regular Payment 2,271.35 1,657.85 109,474.06 613.50 613.50 6.5000 03/11/2011 Regular Payment 2,271.35 1,725.48 107,748.58 545.87 545.87 6.5000 04/11/2011 Regular Payment 2,271.35 1,676.52 106,072.06 594.83 594.83 6.5000 05/11/2011 Regular Payment 2,271.35 1,704.67 104,367.39 566.68 566.68 6.5000 06/11/2011 Regular Payment 2,271.35 1,695.19 102,672.20 576.16 576.16 6.5000 07/11/2011 Regular Payment 2,271.35 1,722.83 100,949.37 548.52 548.52 6.5000 08/11/2011 Regular Payment 2,271.35 1,714.06 99,235.31 557.29 557.29 6.5000 09/11/2011 Regular Payment 2,271.35 1,723.52 97,511.79 547.83 547.83 6.5000 10/11/2011 Regular Payment 2,271.35 1,750.40 95,761.39 520.95 520.95 6.5000 11/11/2011 Regular Payment 2,271.35 1,742.70 94,018.69 528.65 528.65 6.5000 12/11/2011 Regular Payment 2,271.35 1,769,06 92,249.63 502.29 502.29 6.5000 2011 Totals: 27,256.20 20,531.02 6,725.18 6,725.18 01/11/2012 Regular Payment 2,271.35 1,762.09 90,487.54 509.26 509.26 6.5000 02/11/2012 Regular Payment 2,271.35 1,771.81 88,715.73 499.54 499.54 6.5000 03/11/2012 Regular Payment 2,271.35 1,813.19 86,902.54 458.16 458.16 6.5000 04/11/2012 Regular Payment 2,271.35 1,791.61 85,110.93 479.74 479.74 6.5000 05/11/2012 Regular Payment 2,271.35 1,816.65 83,294.28 454.70 454.70 6.5000 06/11/2012 Regular Payment 2,271.35 1,811.52 81,482.76 459.83 459.83 6.5000 07/11/2012 Regular Payment 2,271.35 1,836.04 79,646.72 435.31 435.31 6.5000 08/11/2012 Regular Payment 2,271.35 1,831.66 77,815.06 439.69 439.69 6.5000 09/11/2012 Regular Payment 2,271.35 1,841.77 75,973.29 429.58 429.58 6.5000 10/11/2012 Regular Payment 2,271.35 1,865.47 74,107.82 405.88 405.88 6.5000 11/11/2012 Regular Payment 2,271.35 1,862.24 72,245.58 409.11 409.11 6.5000 12/11/2012 Regular Payment 2,271.35 1,885.39 70,360.19 385.96 385.96 6.5000 2012 Totals: 27,256.20 21,889.44 5,366.76 5,366.76 01/11/2013 Regular Payment 2,271.35 1,882.93 68,477.26 388.42 388.42 6.5000 02/11/2013 Regular Payment 2,271.35 1,893.32 66,583.94 378.03 378.03 6.5000 03/11/2013 Regular Payment 2,271.35 1,939.35 64,644,59 332.00 332.00 6.5000 04/11/2013 Regular Payment 2,271.35 1,914.48 62,730.11 356.87 356.87 6.5000 05/11/2013 Regular Payment 2,271.35 1,936.22 60,793.89 335.13 335.13 6.5000 06/11/2013 Regular Payment 2,271.35 1,935.74 58,858.15 335.61 335.61 6.5000 07/11/2013 Regular Payment 2,271.35 1,956.91 56,901.24 314.44 314.44 6.5000 • ,Date: 10/13/2005 10:16:55 am Page:3 { AMORTIZATION(continued) Date Description P8.1 Payment Principal Payment Principal Balance Interest Earned Interest Payment Simple Insurance Rate 08/11/2013 Regular Payment 2,271.35 1,957.23 54,944.01 314.12 314.12 6.5000 ' 09/11/2013 Regular Payment 2.271.35 1,968.03 52,975.98 303.32 303.32 6.5000 10/11/2013 Regular Payment 2,271.35 1,988.33 50,987.65 283.02 283.02 6.5000 11/11/2013 Regular Payment 2,271.35 1,989.88 48,997.77 281.47 281.47 6.5000 12/11/2013 Regular Payment 2,271.35 2,009.59 46,988.18 261.76 261.76 6.5000 2013 Totals: 27,256.20 23,372.01 3,884.19 3,884.19 01/11/2014 Regular Payment 2,271.35 2,011.95 44,976,23 259.40 259.40 6.5000 02/11/2014 Regular Payment 2,271.35 2,023.06 42,953.17 248.29 248.29 6.5000 03/11/2014 Regular Payment 2,271.35 2,057.18 40,895.99 214.17 214.17 6.5000 04/11/2014 Regular Payment 2,271.35 2,045.59 38,850.40 225.76 225.76 6.5000 05/11/2014 Regular Payment 2,271.35 2,063.80 36,786.60 207.55 207.55 6.5000 06/11/2014 Regular Payment 2,271.35 2,068.27 34,718.33 203.08 203.08 6.5000 07/11/2014 Regular Payment 2,271.35 2,085.87 32,632.46 185.48 185.48 6.5000 08/11/2014 Regular Payment 2,271.35 2,091.21 30,541.25 180.14 180.14 6.5000 09/11/2014 Regular Payment 2,271.35 2,102.75 28,438.50 168.60 168.60 6.5000 10/11/2014 Regular Payment 2,271.35 2,119.42 26,319.08 151.93 151.93 6.5000 11/11/2014 Regular Payment 2,271.35 2,126.06 24,193.02 145.29 145.29 6.5000 12/11/2014 Regular Payment 2,271.35 2,142.10 22,050.92 129.25 129.25 6.5000 2014 Totals: 27,256.20 24,937.26 2,318.94 2,318.94 01/11/2015 Regular Payment 2,271.35 2,149.62 19,901.30 121.73 121.73 6.5000 02/11/2015 Regular Payment 2,271.35 2,161.49 17,739.81 109.86 109.86 6.5000 03/11/2015 Regular Payment 2,271.35 2,182.90 15,556.91 88.45 88.45 6.5000 04/11/2015 Regular Payment 2,271.35 2,185.47 13,371.44 85.88 85.88 6.5000 05/11/2015 Regular Payment 2,271.35 2,199.92 11,171.52 71.43 71.43 6.5000 06/11/2015 Regular Payment 2,271.35 2,209.68 8,961.84 61.67 61.67 6.5000 07/11/2015 Regular Payment 2,271.35 2,223.48 6,738.36 47.87 47.87 6.5000 08/11/2015 Regular Payment 2,271.35 2,234.16 4,504.20 37.19 37.19 6.5000 09/11/2015 Regular Payment 2,271.35 2,246.49 2,257.71 24.86 24.86 6.5000 10/11/2015 Regular Payment 2,269.77 2,257.71 12.06 12.06 6.5000 2015 Totals: 22,711.92 22,050.92 661.00 661.00 Grand Total: 272,560.42 200,000.00 72,560.42 72,560.42