Document:

Exhibit 10.19 Management Agreement - Highland Pointe

    
      

    

    

    

    

    

    

    M
      A N A G E M E N T   A G R E E M E N T

    

    

    

    

    

    

    OWNER:    West
      OKC Highland Pointe Associates, L.L.C.

    

    

    AGENT:     Maxus
      Properties, Inc.

    

    

    PREMISES:   Highland
      Pointe
      Apartments 

           
      500 Pointe Parkway Blvd.

            Yukon,
      OK 73099

    

    

    

    BEGINNING:  January
      11,
      2007

    

    

    ENDING:    January
      10,
      2012

    
      
        
        

      

      
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    IN
      CONSIDERATION of the covenants herein contained, West OKC Highland Pointe
      Associates, L.L.C. (hereinafter referred to as AOwner@),
      and
      Maxus Properties, Inc. (hereinafter referred to as AAgent@),
      agree
      as follows:

    

    1. The
      Owner
      hereby
      employs the Agent
      exclusively to rent and manage the property known as Highland Pointe Apartments
      (hereinafter referred to as the APremises@)
      upon
      the terms and conditions hereinafter set forth, for a term of five (5) years
      beginning on January 11, 2007, and ending on January 10, 2012, and thereafter
      for yearly periods from time-to-time, unless on or before sixty (60) days prior
      to the date last above-mentioned or on or before sixty (60) days prior to the
      expiration of any such renewal period, either party hereto shall notify the
      other in writing that it elects to terminate this Agreement, in which case
      this
      Agreement shall be thereby terminated on said last mentioned date. (See also
      Paragraph 6.3 below.)

    

    2. THE
      AGENT
      AGREES:

    

    2.1 To
      accept
      the management of the Premises, to the extent, for the period, and upon the
      terms herein provided and agrees to furnish the services of its organization
      for
      the rental operation and management of the Premises.

    

    2.2 To
      prepare a monthly statement of receipts and disbursements and to remit, on
      a
      monthly basis, the net cash flow generated by the Premises after payment of
      all
      operating expenses, debt service and escrow payments if applicable, to the
      following party:

    

    West
      OKC
      Highland Pointe Associates, L.L.C.

    104
      Armour Road

    North
      Kansas City, Missouri 64116

    

    In
      the
      event total monthly disbursements are in excess of total monthly receipts,
      the
Owner
      shall
      promptly provide funds to cover such shortfalls. Nothing contained herein shall
      obligate the Agent
      to
      advance its own funds on behalf of the Owner
      to cover
      any shortfalls.

    

    2.3 To
      cause
      all employees of the Agent
      who
      handle or are responsible for the safekeeping of any monies of the Owner
      to be
      covered by a fidelity bond in an amount and with a company determined by the
      Agent.

    

    3. THE
      OWNER
      AGREES:

    

    To
      give
      the Agent
      the
      following authority and powers (all or any of which may be exercised in the
      name
      of the Owner)
      and
      agrees to assume all expenses in connection therewith:

    

    3.1 To
      advertise the Premises or any part thereof; to display signs thereon and to
      rent
      the same; to cause references of prospective tenants to be investigated; to
      sign
      leases for terms not in excess of one year and to renew and/or cancel the
      existing leases and prepare and execute the new leases without additional charge
      to the Owner;
      provided; however, that the Agent
      may
      collect from tenant all or any of the following: a late rent administrative
      charge, a non-negotiable check charge, credit report fee, a subleasing
      administrative charge and/or broker's commission and need not 

    
      
        
        

      

      
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    account
      for such charges and/or commission to the Owner;
      to
      terminate tenancies and to sign and serve such notices as are deemed needful
      by
      the Agent;
      to
      institute and prosecute actions to oust tenants and to recover possession of
      the
      Premises; to sue for and recover rent; and, when expedient, to settle,
      compromise, and release such actions or suits, or reinstate such tenancies.
      Owner
      shall
      reimburse Agent
      for all
      expenses of litigation including attorneys' fees, filing fees, and court costs
      which Agent
      does not
      recover from tenants. Agent
      may
      select the attorney of its choice to handle such litigation.

    

    3.2 To
      hire,
      discharge, and pay all managers, engineers, janitors and other employees; to
      make or cause to be made all ordinary repairs and replacements necessary to
      preserve the Premises in its present condition and for the operating efficiency
      thereof and all alterations required to comply with lease requirements, and
      to
      do decorating on the Premises; to negotiate contracts for non-recurring items
      not exceeding $5,000.00, and to enter into agreements for all necessary repairs,
      maintenance, minor alterations, and utility services; and to purchase supplies
      and pay bills. Agent
      shall
      secure the approval of the Owner
      for
      items, except monthly or recurring operating charges and emergency repairs
      in
      excess of the maximum, if, in the opinion of the Agent,
      such
      repairs are necessary to protect the property from damage or to maintain
      services to the tenants as called for by their tenancy.

    

    3.3 To
      collect rents and/or assessments and other items due or to become due and give
      receipts therefore and to deposit all funds collected hereunder in the
Agent=s
      custodial account.

    

    3.4 Agent
      agrees
      to collect all tenant security deposits. Owner
      instructs Agent
      to
      deposit all security deposits in the general operating accounts of the property.
      Agent
      is not
      to segregate the security deposits into a separate account or into an escrow
      account.

    

    3.5 To
      execute and file all returns and other instruments and do and perform all acts
      required of the Owner
      as an
      employer with respect to the Premises under the Federal Insurance Contributions
      Acts, the Federal Unemployment Tax Act and Subtitle C of the Internal Revenue
      Code of 1954 with respect to wages paid by the Agent
      on
      behalf of the Owner
      and
      under any similar federal and state law now or hereafter in force (and in
      connection therewith the Owner
      agrees
      upon request to promptly execute and deliver to the Agent
      all
      necessary powers of attorney, notices of appointment, and the
      like).

    

    3.6 The
      Agent
      shall
      not be required to advance any monies for the care or management of said
      property, and the Owner
      agrees
      to advance all monies necessary therefore. If the Agent
      shall
      elect to advance any money in connection with the property, the Owner
      agrees
      to reimburse the Agent
      forthwith and hereby authorizes the Agent
      to
      deduct such advances from any monies due the Owner.
      The
Agent,
      shall,
      upon instruction from the Owner,
      impound
      reserves each month for the payment of real estate taxes, insurance, or any
      other special expenditure. 

    

    
      	 	
              4.

            	
              THE
                OWNER
                FURTHER AGREES:

            

    

    

    4.1 To
      indemnify, defend, and save the Agent
      harmless
      from all suits in connection with the Premises and from liability for damage
      to
      property and injuries to or death of any employee or other person whomsoever,
      and to carry at its own expense public liability, elevator liability (if

    
      
        
        

      

      
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    elevators
      are part of the equipment of the Premises), and workmen=s
      compensation insurance naming the Owner
      and
Agent,
      adequate to protect their interests in form, substance, and amounts reasonably
      satisfactory to the Agent,
      and to
      furnish to the Agent
      certificates evidencing the existence of such insurance. Unless the Owner
      shall
      provide such insurance and furnish such certificate within thirty (30) days
      from
      the date of this Agreement, the Agent
      may, but
      shall not be obligated to, place said insurance and charge the cost thereof
      to
      the account of the Owner.
      All
      such insurance policies shall provide that the Agent
      shall
      receive thirty (30) days=
      written
      notice prior to cancellation of the policy.

    

    4.2 To
      pay
      all expenses incurred by the Agent,
      including, but not limited to, reasonable attorneys=
      fees and
Agent=s
      costs
      and time in connection with any claim, proceeding, or suit involving an alleged
      violation by the Agent
      or the
Owner,
      or
      both, of any law pertaining to fair employment, fair credit reporting,
      environmental protection, rent control, taxes, or fair housing, including,
      but
      not limited to, any law prohibiting, or making illegal, discrimination on the
      basis of race, sex, creed, color, religion, national origin, or mental or
      physical handicap; provided, however, that the Owner
      shall
      not be responsible to the Agent
      for any
      such expenses in the event the Agent
      is
      finally adjudicated to have personally, and not in a representative capacity,
      violated any such law. Nothing contained herein shall obligate the Agent
      to
      employ counsel to represent the Owner
      in any
      such proceeding or suit, and the Owner
      may
      elect to employ counsel to represent the Owner
      in any
      such proceeding or suit. The Owner
      also
      agrees to pay reasonable expenses (or an apportioned amount of such expenses
      where other employers of Agent
      also
      benefit from the expenditure) incurred by the Agent
      in
      obtaining legal advice regarding compliance with any law affecting the premises
      or activities related thereto.

    

    4.3 To
      indemnify, defend, and save the Agent
      harmless
      from all claims, investigations, and suits, or from actions or failures to
      act
      of the Owner,
      with
      respect to any alleged or actual violation of state or federal labor laws,
      it
      being expressly agreed and understood that as between the Owner
      and the
Agent,
      all
      persons employed in connection with the Premises are employees of the
Owner,
      not the
Agent.
      However, it shall be the responsibility of the Agent
      to
      comply with all applicable state or federal labor laws. The Owner's
      obligation under this paragraph 4.3 shall include the payment of all
      settlements, judgments, damages, liquidated damages, penalties, forfeitures,
      back pay awards, court costs, litigation expense, and attorneys=
      fees.

    

    4.4 To
      give
      adequate advance written notice to the Agent
      if the
Owner
      desires
      that the Agent
      make
      payment, out of the proceeds from the premises, or mortgage indebtedness,
      general taxes, special assessments, or fire, steam boiler, or any other
      insurance premiums. In no event shall the Agent
      be
      required to advance its own money in payment of any such indebtedness, taxes,
      assessments, or premiums.

    

    5. THE
      OWNER
      AGREES
      TO PAY THE AGENT
      EACH
      MONTH:

    

    5.1 MANAGEMENT:
      Owner
      agrees
      to pay Agent
      for the
      ordinary management of the Premises Four
      Percent (4.0%) of
      the
      monthly gross receipts from the operation of the Premises during the period
      this
      Agreement remains in full force and effect. Gross receipts are all amounts
      received from the operation of the Premises, including, but not limited to,
      rents, parking fees, deposits, laundry income, and fees.

    
      
        
        

      

      
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    5.2 OTHER
      ITEMS OF MUTUAL AGREEMENT: In the event
      Owner
      requests
      and Agent
      agrees
      to perform services outside the scope of ordinary management of the Premises,
      the parties will agree to a fee and payment structure for these services prior
      to commencement of the work.

    

    6. IT
      IS
      MUTUALLY AGREED THAT:

    

    6.1 The
      Owner
      expressly withholds from the Agent
      any
      power or authority to make any structural changes in any building or to make
      any
      other major alterations or additions in or to any such building or equipment
      therein, or to incur any expense chargeable to Owner
      other
      than expenses related to exercising the express powers above vested in
Agent
      without
      the prior written direction of an authorized representative of Owner.
      Agent
      is
      granted the authority to make structural changes or major alterations if such
      actions are required because of danger to life or which are immediately
      necessary for the preservation and safety of the Premises or the safety of
      the
      occupants thereof or are required to avoid the suspension of any necessary
      service to the Premises.

    

    6.2 The
      Agent
      does not
      assume and is given no responsibility for compliance of any building on the
      Premises or any equipment therein with the requirements of any statute,
      ordinance, law, or regulation of any governmental body or of any public
      authority or official thereof having jurisdiction, except to notify the
Owner
      promptly
      or forward to the Owner
      promptly
      any complaints, warnings, notices, or summonses received by it relating to
      such
      matters. The Owner
      represents that to the best of its knowledge the Premises and such equipment
      comply with all such requirements and authorizes the Agent,
      its
      representatives, servants, and employees, of and from all loss, cost, expense,
      and liability whatsoever which may be imposed on them or any of them by reason
      of any present or future violation or alleged violation of such laws,
      ordinances, statutes, or regulations.

    

    6.3 In
      the
      event it is alleged or charged that any building on the Premises or any
      equipment therein or any act or failure to act by the Owner
      with
      respect to the Premises or the sale, rental, or other disposition thereof fails
      to comply with, or is in violation of, any of the requirements of a
      constitutional provision, statute, ordinance, law, or regulation of any
      governmental body or any order or ruling of any public authority or official
      thereof having or claiming to have jurisdiction thereover, and the Agent,
      in its
      sole and absolute discretion, considers that the action or position of the
      Owner
      or
      registered managing Agent
      with
      respect thereto may result in damage or liability to the Agent,
      the
Agent
      shall
      have the right to cancel this Agreement at any time by written notice to the
      Owner
      of its
      election so to do, which cancellation shall be effective upon the service of
      such notice. Such notice may be served personally or by registered mail, on
      or
      to the person named to receive the Agent=s
      monthly
      statement at the address designated for such person as provided in Paragraph
      2.2
      above, and if service by mail shall be deemed to have been served when deposited
      in the U.S. Mail. Such cancellation shall not release the indemnities of the
      Owner
      set
      forth in Paragraph 4 and 6.2 above and shall not terminate any liability or
      obligation of the Owner
      to the
Agent
      for any
      payment, reimbursement, or other sum of money then due and payable to the
Agent
      hereunder.

    

    7. This
      Agreement may be canceled by Owner
      before
      the termination date specified in Paragraph 1 without cause or cost and with
      30
      days notice.

    
      
        
        

      

      
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    8. The
      Owner
      shall
      pay or reimburse the Agent
      for any
      sums of money due it under this Agreement for service for actions prior to
      termination, notwithstanding any termination of this Agreement. All provisions
      of this Agreement that require the Owner
      to have
      insured or to defend, reimburse, or indemnify the Agent
      (including, but not limited to, Paragraphs 4.1, 4.2, and 4.3) shall survive
      any
      termination and, if Agent
      is or
      becomes involved in any proceeding or litigation by reason of having been the
      Owner=s
      agent,
      such provisions shall apply as if this Agreement were still in effect. The
      parties understand and agree that the Agent
      may
      withhold funds for thirty (30) days after the end of the month in which the
      Agreement is terminated to pay bills previously incurred but not yet invoiced
      and to close accounts.

    

    This
      Agreement shall be binding upon the successors and assigns of the Agent
      and
      their heirs, administrators, executors, successors, and assigns of the
Owner.

    

    IN
      WITNESS THEREOF, the parties hereto have affixed or caused to be affixed their
      respective signatures effective this 11th
      day of
      January 2007.

    

    

    
      	 	
              OWNER: West
                OKC Highland Pointe Associates, L.L.C.

            
	 	 
	 	 
	 	 
	 	
              By:
                 /s/
                David L. Johnson

            
	 	
              David
                L. Johnson, Chairman.

            
	 	 
	 	 
	 	
              AGENT: MAXUS
                PROPERTIES, INC.

            
	 	 
	 	 
	 	 
	 	
              By: /s/
                Michael P. McRobert

            
	 	
                             
Michael
                P.
                McRobert

            
	 	
              CEO

            

    

    
 

     

     

     

     

    6Exhibit 10.1

    
      

    

    Exhibit 10.1

     

     

    [JPMorgan
      Chase Bank Letterhead]

     

    March
      21,
      2007

     

    Our
      L/C
      No.: XXXX-XXXXXX

     

    
      	
               

            	
              Issue
                Date:

            	
              March 21,
                2007

            
	
               

            	
              Expiry
                Date:

            	
              June 19,
                2007

            

    

     

    Merrill
      Lynch Capital, a division of Merrill Lynch

    Business
      Financial Services Inc., as Administrative Agent,

    its
      successors and assigns (“Beneficiary”)

    222
      North
      LaSalle Street, 15th
      Floor

    Chicago,
      Illinois  60601

     

    Ladies
      and Gentlemen:

     

    We
      hereby
      establish our Irrevocable Transferable Letter of Credit in Beneficiary’s favor
      for the account of Clayton Williams Energy, Inc. for the account of
      Larclay, L.P. (“Applicant”), 6 Desta Drive, Suite 6500, Midland, Texas
      79705, in the aggregate amount of USD $5,000,000.00, effective immediately
      and
      expiring at our office with the close of business on the Expiry
      Date.

     

    This
      Credit cannot be modified or revoked without Beneficiary’s consent.

     

    Funds
      under this Credit are available to Beneficiary against presentation to us,
      by
      tested telex or authenticated SWIFT, in person, by mail, by messenger delivery
      or by facsimile transmission, to our offices at 300 South Riverside Plaza,
      Mail
      Code IL1-0236, Chicago, IL 60606-0236, Attn:

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Standby
      Letter of Credit Dept., of Beneficiary’s sight draft marked “Drawn Under
      JPMorgan Chase Bank, N.A., Letter of Credit No. XXX-XXXXXX Dated
      ___________” and Beneficiary’s signed and dated statement reading as
      follows:  “We hereby certify that the amount of the drawing represents
      indebtedness owed or other right to draw on as has occurred under that certain
      Term Loan and Security Agreement dated April 21, 2006 (the “Loan
      Agreement”) among Larclay, LP, as Borrower, the Lenders from time to time party
      to the Loan Agreement, and Merrill Lynch Capital, a division of Merrill Lynch
      Business Financial Services, Inc., as Administrative Agent for
      Lenders”.

     

    Drawings
      presented by telefacsimile (“fax”) to fax number 312-954-0203, or alternately to
      fax number 312-954-2457 are acceptable, under telephone pre-advice to
      312-954-1910, or alternately to 1-800-634-1969, Option 1; provided that such
      fax
      presentation is received on or before the expiry date on this instrument in
      accordance with the terms and conditions of this Letter of Credit.

     

    Except
      as
      stated herein, our undertaking is not subject to any requirement or
      qualification. Our obligation under this Credit is our individual obligation
      and
      in no way contingent upon reimbursement with respect thereto, or upon our
      ability to perfect any lien or security interest.

     

    Partial
      and multiple drawings are permitted. The amount available from time to time
      under this irrevocable Credit shall be the original amount set forth above,
      less
      the sum of any drawings honored by us hereunder. All banking charges are the
      responsibility of the Applicant.

     

    This
      irrevocable Credit is transferable to any assigns or successors in title to
      Beneficiary’s interests as Administrative Agent, and any such successor or
      assign shall be deemed the Beneficiary hereunder, and shall be entitled to
      draw
      against the Credit in accordance with the terms hereof. Each letter of credit
      issued upon any such transfer may be successively transferred to any
      successor Administrative Agent. This Letter of Credit is transferable in whole
      but not in part, and except as expressly stated herein, is transferable in
      accordance with the ICC 

     

    

     

    2

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Publication
      No. 500. Any transfer request must be presented to us with the attached
      form together with the original Letter of Credit. Transfers to designated
      foreign nationals and /or specially designated nationals are not permitted
      as
      being contrary to the U.S. Treasury Department or Foreign Assets Control
      Regulations.

     

    We
      hereby
      engage with Beneficiary that drawings in compliance with the terms and
      conditions of this Credit shall be honored by us and payment shall be effected
      in accordance with Beneficiary’s instructions within three business day after
      the date of Beneficiary’s telex/SWIFT or other demand as contemplated herein if
      presented at our office at 300 South Riverside Plaza, Mail Code IL1-0236,
      Standby Letter of Credit
      Unit,
      Chicago, IL 60606-0236 on or before the expiration date of this Letter of
      Credit.

     

    This
      Letter of Credit is subject to the Uniform Customs and Practices for
      Documentary Credits (1993 Revision), International Chamber of Commerce
      Publication No. 500 (the “Uniform Customs”), except that
      Article 13(b) shall not be included in this reference to the
      Uniform Customs. Notwithstanding Article 17 of the
      Uniform Customs, if this Credit expires during an interruption of business
      as described in Article 17, we hereby specifically agree to extend the
      validity of the Credit and thereby undertake to honor drawings and effect
      payment thereof for thirty (30) days after the date of resumption of business.
      and in the event of any conflict, the laws of the State of Illinois will
      control, without regard to principles of conflict of laws.

     

    Please
      address all correspondence regarding this Letter of Credit to the attention
      of
      the Standby Letter of Credit Unit, 300 S. Riverside Plaza, Mail Code IL1-0236,
      Chicago, IL 60606-0236, including the Letter of Credit number mentioned above.
      For telephone assistance, please contact the Standby Client Service Unit at
      1-800-634-1969, select Option 1, and have this Letter of Credit number
      available.

     

     

    

    
      	
               

            	
              Very
                truly yours,

            
	
               

            	
               

            
	
               

            	
              JPMorgan
                Chase Bank, N.A.

            
	
               

            	
               

            
	
               

            	
               

            	
               

            
	
               

            	
              Authorized
                Signature

            

    

     

     

    3

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