RFF Family Partnership, LP v. Link Development, LLC et al

Filing 1

COMPLAINT Verified Complaint against Robert V Wallace, Jeffrey B. Karll, Link Development, LLC, Russell and Associates LLC Filing fee: $ 350, receipt number 0101-3432030 (Fee Status: Filing Fee paid), filed by RFF Family Partnership, LP. (Attachments: # 1 Civil Cover Sheet, # 2 Civil Cover Sheet Category, # 3 Exhibit A - Certificate of Organization, # 4 Exhibit B - Foreclosure Deed, # 5 Exhibit C - Desert Pine Mortgage, # 6 Exhibit D- Certificate of Organization, # 7 Exhibit E - Managers Cert, Cert of Manager, # 8 Exhibit F - Desert Palm Mortgage, # 9 Exhibit G - BD Mortgage, # 10 Exhibit H - Amendment of Mortgage, # 11 Exhibit I - Certificate of Organization, # 12 Exhibit J - Superior Court Complaint, # 13 Exhibit K - Link Land Court Complaint, # 14 Exhibit L - Note, # 15 Exhibit M - Loan Agreement and mortgage, # 16 Exhibit N - Guaranty, # 17 Exhibit O - subordination agreements, # 18 Exhibit P - Assignment, # 19 Exhibit Q - Settlement Agreement, # 20 Exhibit R - Russell Land Court Complaint, # 21 Exhibit S - Land Court Decision, # 22 Exhibit T - Memorandum of Sale, # 23 Exhibit U - redacted P&S)(Briansky, Richard)

EXHIBIT L

PROMISSORY NOTE
$I

1-

,400,000.00

ffiffipY
October 15, 2007
Boston, Massachusefts

Principal.
For value received, in installments as herein provided, LINK DEVELOpMENT, LLC, a
Massachusetts limited liability company ("Maker"), promises to pay to the order of RFF
FAMILY PARTNERSHTP LTMITED PARTNERSHIp, a catifomia limired partrrership
("Holder"), c/o Robert F. Freedman, 226 23'ó st.eet, santa Monica, cA 90402, or at sucir
other place as the Holder hereof may from time to time designate in writing, the principal
sum of one Million Fou¡ Hundred rhousand Dollars ($ 1,400,000.00), orso Ãrch tir"reoi""
shall from time to time be outstanding hereundeç ûogether with accrued interest from the date
of disbu¡sement on the unpaid prin"¡"I ut o
*r"
"q""i;o?,ft;;;Ë;;ii5r")
(the "Interest Rate'). This.Note is referred to as the Note in that certain l-oan Agreemànt of
even date between Maker and Holder (the "Loan A,greement"). capitalized'terms used
herein without definition shall have the meanings set forth in the Loan Agreement. Maker
acknowledges that Th¡ee Hundred rhousand Dollars ($300,000.00) has previously been
advanced to Maker hereunder_

p"i-,i*

Mâturity Date.
The unpaid principal balance hereof, together with all unpaid inr.erest accrued thereorq ifany,
and all other arn{unts payable by Maker.undertåe terrns õf the Loan Documents, sh4llbe d;;
and payable on March 15, 2008 (the "trnitiat Maturity Date"). If the Initial Maturity.Date or
Extended M¿turity Date (as defined below) shoutd d.tl on a day that is not a busiiess day,
payment ofthe outstanding prinoipal shalt þe made on the next succeedilg businçs:day and
such extension of time shall be included in computing any interest ù respect of-iuch
payment.
Provided no Default or Event of Defautt has occurred, and frúher provided. that the Maker
has received all necessary Approvals for the development of the Þroject, and all appeaþ
periods for súch Approvals have expired without appeal being takerL ãr if in Hotderii sote
discretion, satisfactory progress has been m¿de toward obtaining such Approvals .for the
Project, then Maker may, by giving llolder written notice at least thirty (30)ììys prior to the
Initial Maturiry Date, exrend the Initial Maturity Date for one (l) addiìio;d rix
1o¡ .oott
period, such thar all amounts due under the torms of the Lo¿n Documents sha[ bà ãue and
payable on october 15, 2008 (the "Extended Maturity Date"); provided, however, in the
event a Defaul( or Event of Default shall have occurred subsequent to delivery of.Maker,s
written notice to Holder prior to the hitial Maturity Date, zuch w¡itten notice shall be

ffi,,

revoked and the Initiat Maturity Date sha[ not be deemed
extended to the Extended Maturity
Date.

Prepayment.
Maker sh¿ll have the right to prepay the l-oari; in whole
or in part, at any time prior to either
the I¡ritial Maturity Dare, or if exrended, prior ro
the Extended Mat*ityb;ì;,
with the terms hereof without incrrrring uoy p."puy."nt premium,
penalty or fee; provided,

il;";;;"

however, notwirhstanding
Amount a@,

4¿

arfhing to û,å

conøined nå."rn, ti"' rritiåiä;;;;"
..*' ^**'
"ont.á.y shall
if paid,
b" .ro.r_."n_,rr¿uùi".

Payments.

Prior to the ea¡lier to occrr of the kritiar Mahrrity Date, or
if extended pirrsuant to ttre
provisions of section 2 above,. the Extended Maturi
ty Dáte, or accereration of this Not.
payments of inrerest only, accrued a*he Interesr
Rate ån ,h";;il;;;õ;ì;ffi;*;
Note, shall be due and payable as follows:

(1) on the date hereof, f.he rnitiar Interest Amount (as defined in the loan
'-'""' '-"
- * Agreement)
shall be deemed eamed, due and payabre and shall
be pþaid ø r¡rr¿"ì.
All

payrnents hereunder sharl be applied first to
interest, fees and expenses then due and
thebalance, if any, ro principal. Inrerest payable
basis of a th¡ee.hund¡ed sixty (360) day yeir counring
the actuar r"ru".ã?ã"yî"äprø.
In no event shall the Maker be required tb pay any inTerest
or other fe".
:
excess of the maximum permitted Uy apptic"út"

t*"*¿*"triib.;;;äñ"--

tuw.

..;h;;;il-

-

(b) I¡ the event the Maker extends fhe Initiar Maturity Date in accordance with
the
provisions of secrion 2- of rhis Nors rn"
oT:-",-"10 rn be due and payable and this Note shalr not be deemed extended
unress and
ll
unnl the Extended I¡teresL Amount shall have been received
by Holder.

B*t""¿Jnr"r"riil"""rää;äï ü"-;

("1

All paynents ofprincipal and interest due hereunder shafl be made
with¡ut deduction
of anypresenr and future taxes, levies, imposts, deductio*,

;;;idrl"i¿1"*-äääî

on payments due Êom Maker (excluding raxarion
"nrrg",
ofthe overail nãt iirco-" ãrI.{oldä)l*d";
amounts shall be paid by Maker. Maker will pay the arnounts
necessary suc.t tlrultt ã gros,
amount of the principal and interest received by-Hordçr
is not ress

thanil;ä;à;;il;

lq nonvithstanding the foregoing, Horder pa¡æ such raxes, Maker wi:lr reimúuo.
Holder for the amount paid. Maker wil fumish HoHá officiat
ofpayment ofall taxes-

Yî'

*.*rffi.orit"rääi;

0l128t64

"$P:'

Lawful Money.

5.

Principal and interest are payable in lawfur
money of the united states orAmerica.
6.

Applications of payments; Late Charges.
(n)

Any pa)'ments received by Holder pursuant to
the terms hereofshallbe

appried first
to sums, other than principal and interest; due Holder
pursuant to the l-oan
Oo:Trn:nT,

next to the paynent of all interesi accrued to iL"
¿"te of su"h paymenr,
ifany, to the payment ofprincipal.

and the balance,

(b)

Maker acknowledges tåat the rate payment of any
amount due hereunder
Holder to tose rhe use of such money and incur;r;-J;;;;;ä;Ä;","ä; will caLrse
gnder the l¡an Documen4 inctuaing, *itrro*t
li",ìt"ii-"n, adminiòhative and
collection cosfs and processing and ac"uunüng
th;;;"ä;#;i;#"i
rs extremely difñcult to ascertain. Therefore, "*p"n""¡,
ifany instaltmeni ñ;;;;
i]äï
received bvuolderon rhe .r'e dare rhereof,
¡t .r ir Jáiúî"ä
'upon Holder pu's¡rant to Pa¡aeraph
l0 hereof and the other
amount due and unpaid shall bear interest
at the lesser oiit" t igt
which mav lawtu[v be charged and cottectea
""t
unaerapplicau;
evidenced by rhis Nor€ or an ¿'-uar ¡ate w¡ich
shatt ui'nìJiercent (5%)
Int:ït Rare plus one percent (lZ") per month (rh" ;da""d Rate,,),higher rhan
:he
computed
trom the date on which tbe amount was due and payable;;il
paid.

däåää.äJ#:i
l;il;;;ï;
,""";i,r;
il""ä":iörrt;

Evènt of DefaulL
The occu¡rence ofany ofthe folrowing shafi
be deemed to be an event ofdefault(,iEvent
of
Default") hereunder:

(Ð

in the pâ1ment of any payment of principar or interest
when due pu,Ëu¿nt to
the terms hereof;

(b)

default in the perfonnÀce o. observance of
or compliance with any covéna¡it or
condition of this Note, any orher Lo- no"u-"ni
oi*y
than the payrnent provisions refenea to in
"it ".îUË"1", î.',n"î
subparatafi r"liu"""i*r,rlt'irì"ì
yit|rh_$" stafed cure period rherefore, i.¿ ii"å .r"t
then wÍthin rhirfy (30).days following rhe
initi"f ¿"t" ofioli "*"
¿"f*ft;

a defaúlt

î*d

iläî, ,;iä,

0l1282'64

B&L@

8.

Remedies.

upon the occurrence ofan Event of Default and the expiration ofâny cure period therefore,
if
any, then at the option of Hordeç the entire barance of principal tãgether with
a[ accrued
interest thereon shall, without demand or notice, immàdiat"iy bec-ome due and payable.
upon the occurrence of an Event of Default (and so long as such Event of Defauri shart
continue), the entire balance ofprincipal together with all àccrued and unpaid interest
shall
bear interest at the Agreed Rate. No delay or omission on the part of the horder
hereof in
exercising any righf under this Note or under any of the other t oan Documents
hereofshall
operate as a waiver ofsuch right.

9.

Waiver.
Maker hereby waives di ligence, presentment, protest and demand, notice ofprotest, dishonor
TÍ.:onplll:+, olthis Nore, and expressly ãgrees rhat, wirhour in *y *ry "ff""ting rh"
liability of Maker hereunder, Holder may extend any maturitydate or the-t-. ø. p;y-"ï
ãr
any installment due hereunder, accept a¡ditionat security, release any paqr
liable hereunder
and release any security now or hereafter securing this Note.

10.

Attorneys'

Fees.

If this Note is not paid when due or if any Event ofDefaurt occurs, Maker promises to pay
all
reasonable costs of enforcement and co[ectior¡ incruding but ngt fimite¿
io, *u¡t coss ;¿

reasonable attomeys' fees, whetbqr or not any action or pioceeding is
brougût to enforce the
provisions hereof. As used in this Note, "attorneys' fees; and ,,attomeys' feei
aud costs. shalt
-have the mea¡ings given to such terms in the fìan Agreemen

r-

11.

'-

.severabitity.
Every-provision of this Note is i¡tended to be sever¿ble. In the event any term or provision
he¡eof is decla¡ed bya couf ofcompetent jurisdictior¡ to be iltegaior irií"ri¿.ø.
whatsoever, such illegality or invatidity shall not affect the-balance of the -v." ""
ær-. - provisions hereof, which tenns and provisions shall remain binding and enforceabte. ""¿

12.

Interest Rate Limitation.

It is the intent of Maker and Horder in the execution
of this Note and aü other instruments
securing this Note that the loanevidenced
hereby b.
to- tt
i"tion orth" *r.y
laws of rhe com¡rionwearth of Massachusetts.
"*"*pt Maker ",.rt
Holder aird
stipurate and agree that
none of the terms and provisions contained
herein or in any ofthe roân instruments sha[ ever
be construed to create a contract for the use,
forbearance or detention ofmoney requiring
paFnent of interest at a rate in excess of the
maximum interest râte pe.mittø to íe ci{ea
by the laws of rhe commonwearth of Massa"t
*"nr. m.,."h event, if any Holder of this
Note shall collect monies which are deemed
to
i.rte."., *ilñ"ru
ä;;i;
increase the effective interest rate on this
"orrstit.te
Note to a rate in excess.irÀ"
îåä
permitted to be charged by the raws ofrhe
"r*ro'î*
commonwearth of Mass*rrr."*l"ri'r'rJt ."ä,
deemed to consfitufe interest in excess ofsuch
maxi*om .rte
æ the option ofHorder,
--^be credited to the payment of the sums due
"hau,
h"."u.,i"i o..",u-ø i" pr.t"rl
13.

Number and Gender.
ln this Note the singular shall include the plural
and the masculine sha¡ include the feminine
and neuter gender,'and vice versa, if the ;ontext
so ."qtti."r.

14.

Headings.

of each

paragraph of this Note are
intended solely for
construed to be a part of this Note.

numbered
::T,j:gj-i:,ï,bf8r1rnfsto be deemed or
convemence a¡id are not

15.

Choice of Law.

THIS NOTE SIIALL BE CÐVERNED BY, AND
SIIALL BE CONSTRUED AND
"ffiBnx¿r

-wni,

irñ
lyglg-E3_w AccoRDñóÈ
C€MMONWEATTH OFMASSACHUSETTS,
LAWS PRINCIPLES.

WruO{.rIREGARD

LAws oF rHE

TO CONFLICTS OF

B-Ábçt

IN W.TNESS WHEREOF, Maker
of the date first above written.

has executed and derivered this Note
under sear as

LINKDEVELOPMENT, LLC,
a Massachusetts limited

tiability company

otl2E264

ot

128261

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