LOAN MODIFICATION AGREEMENT
THIS LOAN MODIFICATION AGREEMENT ("Amendment") is dated effective as of March
15, 2013 by and among HARTMAN PARKWAY LLC, a Texas limited liability company
("Hartman Parkway"), HARTMAN BENT TREE GREEN, LLC, a Texas limited liability
company ("Hartman Bent Tree"), HARTMAN RICHARDSON HEIGHTS PROPERTIES, LLC, a
Texas limited liability company ("Richardson"), HARTMAN SHORT TERM INCOME
PROPERTIES XX, INC., a Maryland corporation ("XX"), and HARTMAN COOPER STREET
PLAZA, LLC, a Texas limited liability company ("Cooper" and, collectively with
Hartman Parkway, Hartman Bent Tree, Richardson and XX, the "Borrower"); and
TEXAS CAPITAL BANK, NATIONAL ASSOCIATION, a national banking association
(together with its successors and assigns, the "Bank").
RECITALS
A.
Bank previously made a revolving loan (the "Loan") in the
principal sum of the lesser of the Borrowing Limit and $30,000,000 evidenced,
governed and secured by, inter alia, that certain Loan Agreement made and
entered into as of May 10, 2012 by Bank, Richardson, XX and Cooper, as amended
by that certain Loan Modification Agreement dated October 16, 2012 by and among
Bank, Richardson, XX, Cooper and Hartman Bent Tree (as amended, the "Loan
Agreement").
B.
Borrower on or about the date hereof, has sold or will sell
the McDonald's Pad Site which will reduce the Borrowing Base by $500,000.
C.
Borrower has requested that Bank (i) take into account the
sale of the McDonald's Pad Site and increase the amount of the Borrowing Base to
$20,500,000 plus the Alamo Construction Reserve Amount for a total Borrowing
Base of $22,500,000; (ii) add Hartman Parkway as a "Borrower" under the Loan,
the Loan Agreement and the other Loan Documents; and (iii) add the Parkway Plaza
I and II Property to the Borrowing Base Properties.
Bank is willing to so
modify the Loan Documents, subject to the terms and conditions set forth herein.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and mutual covenants herein
contained and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged and confessed, the parties, intending to be
legally bound, hereby agree as follows:
ARTICLE I
RECITALS AND DEFINITIONS
SECTION 1.01.
RECITALS.
THE FOREGOING RECITALS ARE HEREBY INCORPORATED INTO
AND MADE A PART OF THIS AMENDMENT FOR ALL PURPOSES.
SECTION 1.02.
DEFINITIONS.
CAPITALIZED TERMS USED IN THIS AMENDMENT, TO THE EXTENT NOT
OTHERWISE DEFINED HEREIN, SHALL HAVE THE SAME MEANING AS IN THE LOAN AGREEMENT.
DEFINITIONS CONTAINED IN THE LOAN AGREEMENT, AS AMENDED HEREBY, AND IN THE OTHER
LOAN DOCUMENTS WHICH IDENTIFY AGREEMENTS, INSTRUMENTS OR DOCUMENTS SHALL BE
DEEMED TO INCLUDE ALL AMENDMENTS AND SUPPLEMENTS TO SUCH AGREEMENTS, INSTRUMENTS
AND DOCUMENTS AND, WITHOUT ANY OBLIGATION ON THE PART OF BANK TO ENTER INTO ANY
FUTURE AMENDMENTS, MODIFICATIONS OR SUPPLEMENTS, ALL FUTURE AMENDMENTS,
MODIFICATIONS, AND SUPPLEMENTS THERETO ENTERED INTO FROM TIME TO TIME.
ARTICLE II
AMENDMENTS
SECTION 2.01.
AMENDMENTS TO LOAN AGREEMENT.
(A)
SECTION 1.1 OF THE LOAN AGREEMENT IS HEREBY AMENDED BY ADDING
THE FOLLOWING DEFINITIONS IN THEIR APPROPRIATE ALPHABETICAL ORDER:
"?March 2013 Loan Modification Agreement' means that certain Loan Modification
Agreement dated