EXHIBIT 10.19
LOAN NO.: 26-5950380 THE MAYFLOWER
CONSENT AND AGREEMENT OF MANAGER
The Undersigned acknowledges an assignment of documents contained in
that certain Deed of Trust and Security Agreement (the "Deed of Trust") to be
executed and delivered by CRIT-VA, Inc., a Virginia corporation ("Borrower") to
FIRST UNION NATIONAL BANK, a national banking association ("Lender"), in
connection with that certain loan (the "Loan") of Ten Million Five Hundred
Thousand and No/100 Dollars ($10,500,000.00) being made by Lender to Borrower to
finance certain real property and improvements located in the County of Virginia
Beach, Commonwealth of Virginia, and more particularly described in the Deed of
Trust (the "Premises").
The Undersigned has agreed to perform or supply certain services in
connection with the management of the Premises pursuant to that certain
Management Agreement dated as of December 12, 2000 (the "Contract") attached
hereto. The Undersigned does hereby (a) warrant and represent that the Contract
contains all agreements between the Undersigned and Borrower relating to
property management of the Premises; (b) acknowledge and consent to the
assignment of the Contract as set forth in the Deed of Trust by Borrower for the
benefit of Borrower and to any further assignment thereof by Lender; (c) warrant
and represent that as of the date hereof, to Manager's knowledge no default
exists under the terms of any agreement between Borrower and Manager; and (d)
acknowledge that Borrower as of the date hereof, to the Undersigned's knowledge
Borrower has satisfied all conditions precedent to commencement of performance
by the Undersigned under the Contract.
The Undersigned does hereby agree that: (i) in the event of either (a)
any material default by Borrower under the terms of the Loan Documents and the
taking of control of the Premises by Lender or (b) the foreclosure of the Deed
of Trust or transfer of title to the Premises by conveyance in lieu thereof,
then, the Contract shall be terminable at the option of Lender upon thirty days'
notice; and (ii) the rights of the Undersigned under the Contract to receive any
compensation reimbursement of costs and expenses or other payments in
consideration for its management services for the premises shall be and remain
subordinate in all respects to the Lender's rights under Loan Documents.
The Undersigned represents that it is looking solely to Borrower, and
not to Lender, for payment under the Contract, except as provided in Clause (i)
above or except for payments incurred after Lender elects not to terminate the
Contract when entitled to do so. Lender acknowledges that upon an Event of
Default under the Contract, the Undersigned shall be entitled to receive from
Borrower all fees commissions or other amounts payable to the Undersigned under
the Contract.
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At such time as the Loan is paid in full and the Deed of Trust is
released of record, this Consent and Agreement of Manager and all of Lender's
right, title and interest with respect to the Contract shall terminate.
Lender may sell, transfer and deliver the Loan Documents to one or more
investors in the secondary mortgage market. In connection with such sale, Lender
may retain or assign responsibility for servicing the debt secured by the Deed
of Trust or may delegate some or all of such responsibility or obligations to a
servicer, including, but not limited to, any subservicer or master servicer, on
behalf of the investors.
This Consent and Agreement of Manager is given by the Undersigned for
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the Undersigned, and is intended to induce Lender to make the
Loan to Borrower.
[THE BALANCE OF THIS PAGE WAS LEFT BLANK INTENTIONALLY]
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WITNESS the hand and seal of the Undersigned, as of December 12, 2000.
CORNERSTONE REALTY INCOME TRUST,
INC., a Virginia corporation
By: /s/ Stanley J. Olander. Jr.
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Name: Stanley J. Olander, Jr.
Title: Vice President
