Document:

Exhibit 10.121

 

TIAA Investment ID #AAA4527

M - 0005970

 

PROMISSORY NOTE

 

	
  $161,000,000.00

  	
   

  	
  New York, New York

  December 15, 2004

  

 

FOR VALUE RECEIVED, 80 SOUTH EIGHTH L.L.C. (“Borrower”), a Delaware limited
liability company having its principal place of business at c/o Buck Management
Group, L.L.C., 80 S. Eighth Street, Suite 3450, Minneapolis, Minnesota
55402, promises to pay to TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
(“Lender”), a New York
corporation, or order, at Lender’s offices at 730 Third Avenue, New York, New
York 10017 or at such other place as Lender designates in writing, the
principal sum of One Hundred Sixty One Million and no/100 DOLLARS
($161,000,000.00) (the principal sum or so much of the principal sum as may be
advanced and outstanding from time to time, the “Principal”), in lawful money of the United States of
America, with interest on the Principal from the date of this Promissory Note
(this “Note”) through and
including January 1, 2010 (the “Maturity
Date”) at the fixed rate of Five and 00/100 percent (5.0%) per
annum (the “Fixed Interest Rate”).

 

This Note is secured by, among other things, the Mortgage, Assignment
of Leases and Rents, Security Agreement and Fixture Filing Statement (the “Mortgage”), dated the date of this Note
made by Borrower for the benefit of Lender as security for the Loan. All
capitalized terms not expressly defined in this Note will have the definitions
set forth in the Mortgage.

 

Section 1. Payments of
Principal and Fixed Interest.

 

(a)           Borrower will make
monthly installment payments (“Debt
Service Payments”) as follows:

 

(i)            At Closing, a stub
payment of interest only on the Principal at the Fixed Interest Rate
representing interest from the date of disbursement through and including the
balance of the month of December 2004; and

 

(ii)           On February 1,
2005 and on the first day of each succeeding calendar month through and
including December 1, 2009, payments in the amount of Six Hundred Seventy
Thousand Eight Hundred Thirty Three and 33/100 Dollars ($670,833.33), each of
which will be applied to accrued interest on the Principal at the Fixed
Interest Rate.

 

(b)           On the Maturity Date,
Borrower will pay the Principal in full together with accrued interest at the
Fixed Interest Rate and all other amounts due under the Loan Documents.

 

 

Section 2. Prepayment
Provisions.

 

(a)           This Note may not
be prepaid in full or in part before January 1, 2007. Commencing January 1,
2007, provided there is no Event of Default, Borrower may prepay this Note
in full, but not in part, on the first day of any calendar month, upon 60 days
prior notice to Lender and upon payment in full of the Debt which will include
a payment (the “Prepayment Premium”)
equal to the product of (i) 3% times the Principal if such prepayment
occurs on or after January 1, 2007 and before January 1, 2008, (ii) 2%
times the Principal if such prepayment occurs on or after January 1, 2008
and before January 1, 2009, and (iii) 1 % times the Principal if such
prepayment occurs on or after January 1, 2009 and before October 1,
2009. Provided there is no Event of Default, this Note may be prepaid in
full without payment of the Prepayment Premium during the last 90 days of the
Term. This Note may not be prepaid without simultaneous prepayment of any
other notes secured by the Loan Documents.

 

(b)           After an Acceleration
or upon any other prepayment not permitted by the Loan Documents, any tender of
payment of the amount necessary to satisfy the Debt accelerated, any judgment
of foreclosure, any statement of the amount due at the time of foreclosure
(including foreclosure by power of sale) and any tender of payment made during
any redemption period after foreclosure, will include a payment (the “Evasion Premium”) equal to the product
of (i) 3% plus 300 basis points times the Principal if such tender of
payment is made before January I, 2008, (ii) 2% plus 300 basis points
times the Principal if such tender of payment occurs on or after January 1,
2008 and before January 1, 2009, and (iii) 1% plus 300 basis points
times the Principal if such tender of payment occurs on or after January 1,
2009 and before October 1, 2009.

 

(c)           Borrower acknowledges
that:

 

(i)            a prepayment will
cause damage to Lender;

 

(ii)           the Evasion Premium is
intended to compensate Lender for the loss of its investment and the expense
incurred and time and effort associated with making the Loan, which will not be
fully repaid if the Loan is prepaid;

 

(iii)          it will be extremely
difficult and impractical to ascertain the extent of Lender’s damages caused by
a prepayment after an Event of Default or any other prepayment not permitted by
the Loan Documents; and

 

(iv)          the Evasion Premium
represents Lender and Borrower’s reasonable estimate of Lender’s damages for
the prepayment and is not a penalty.

 

2

 

Section 3. Events of
Default:

 

(a)           It is an “Event of Default” under this Note:

 

(i)            if Borrower fails to
pay any amount due, as and when required, under this Note or any other Loan
Document and the failure continues for a period of 5 days; or

 

(ii)           if an Event of Default
occurs under any other Loan Document.

 

(b)           If an Event of Default
occurs, Lender may declare all or any portion of the Debt immediately due
and payable (“Acceleration”)
and exercise any of the other Remedies.

 

Section 4. Default Rate. Interest on the
Principal will accrue at the Default Interest Rate from the date an Event of
Default occurs until such Event of Default is cured as permitted by the Loan
Documents.

 

Sections 5. Late Charges.

 

(a)           If
Borrower fails to pay any Debt Service Payment when due and the failure
continues for a period of 5 days or more or fails to pay any amount due under
the Loan Documents on the Maturity Date, Borrower agrees to pay to Lender an
amount (a “Late Charge”) equal to five cents ($.05) for each one
dollar ($1.00) of the delinquent payment

 

(b)           Borrower
acknowledges that:

 

(i)            a delinquent payment
will cause damage to Lender;

 

(ii)           the Late Charge is
intended to compensate Lender for loss of use of the delinquent payment and the
expense incurred and time and effort associated with recovering the delinquent
payment;

 

(iii)          it will be extremely
difficult and impractical to ascertain the extent of Lender’s damages caused by
the delinquency; and

 

(iv)          the Late Charge represents
Lender and Borrower’s reasonable estimate of Lender’s damages from the
delinquency and is not a penalty.

 

Section 6. Limitation of Liability. This Note
is subject to the limitations on liability set forth in the Article of the
Mortgage entitled “Limitation of Liability”.

 

Section 7. WAIVERS. IN ADDITION TO THE WAIVERS
SET FORTH IN THE ARTICLE OF THE MORTGAGE ENTITLED “WAIVERS”,
BORROWER WAIVES PRESENTMENT FOR PAYMENT, DEMAND, DISHONOR AND, EXCEPT AS
EXPRESSLY SET FORTH IN THE LOAN DOCUMENTS, NOTICE OF ANY OF THE

 

3

 

FOREGOING.
BORROWER FURTHER WAIVES ANY PROTEST, LACK OF DILIGENCE OR DELAY IN COLLECTION
OF THE DEBT OR ENFORCEMENT OF THE LOAN DOCUMENTS. BORROWER AND ALL INDORSERS,
SURETIES AND GUARANTORS OF THE OBLIGATIONS CONSENT TO ANY EXTENSIONS OF TIME,
RENEWALS, WAIVERS AND MODIFICATIONS THAT LENDER MAY GRANT WITH RESPECT TO
THE OBLIGATIONS AND TO THE RELEASE OF ANY SECURITY FOR THIS NOTE AND AGREE THAT
ADDITIONAL MAKERS MAY BECOME PARTIES TO THIS NOTE AND ANY ORIGINAL
INDORSER, SURETY OR GUARANTOR. ADDITIONAL INDORSERS, GUARANTORS OR SURETIES MAY BE
ADDED WITHOUT NOTICE AND WITHOUT AFFECTING THE LIABILITY OF THE ORIGINAL MAKER
OR ANY ORIGINAL INDORSER, SURETY OR GUARANTOR.

 

Section 8. Commercial Loan.
The Loan is made for the purpose of carrying on a business or commercial
activity or acquiring real or personal property as an investment or carrying on
an investment activity and not for personal or household purposes.

 

Section 9. Usury Limitations.
Borrower and Lender intend to comply with all Laws with respect to the charging
and receiving of interest. Any amounts charged or received by Lender for the
use or forbearance of the Principal to the extent permitted by Law, will be
amortized and spread throughout the Term until payment in full so that the rate
or amount of interest charged or received by Lender on account the Principal
does not exceed the Maximum Interest Rate. If any amount charged or received
under the Loan Documents that is deemed to be interest is determined to be in
excess of the amount permitted to be charged or received at the Maximum
Interest Rate, the excess will be deemed to be a prepayment of Principal when
paid, without premium, and any portion of the excess not capable of being so
applied will be refunded to Borrower. If during the Term the Maximum Interest
Rate, if any, is eliminated, then for purposes of the Loan, there will be no
Maximum Interest Rate.

 

Section 10. Applicable Law.
This Note is governed by and will be construed in accordance with the Laws of
the State of New York.

 

Section 11. Time of the
Essence. Time is of the essence with respect to the payment and performance
of the Obligations.

 

Section 12. Cross-Default.
A default under any other note now or hereafter secured by the Loan Documents
or under any loan document related to such other note constitutes a default
under this Note and under the other Loan Documents. When the default under the
other note constitutes an Event of Default under that note or the related loan
document, an Event of Default also will exist under this Note and the other
Loan Documents.

 

Section 13. Construction.
Unless expressly provided otherwise in this Note, this Note will be construed
in accordance with the Exhibit attached to the Mortgage entitled “Rules of

 

4

 

Construction”.

 

Section 14. Mortgage
Provisions Incorporated. To the extent not otherwise set forth in this
Note, the provisions of the Articles of the Mortgage entitled “Expenses and
Duty to Defend”, “Waivers”, “Notices”, and “Miscellaneous” are applicable to
this Note and deemed incorporated by reference as if set forth at length in
this Note.

 

Section 15. Joint and
Several Liability; Successors and Assigns. If Maker consists of more than
one entity, the obligations and liabilities of each such entity will be joint
and several. This Note binds Borrower and successors, assigns, heirs,
administrators, executors, agents and representatives and inures to the benefit
of Lender and its successors, assigns, heirs, administrators, executors, agents
and representatives.

 

Section 16. Absolute
Obligation. Except for the Section of this Note entitled “Limitation
of Liability”, no reference in this Note to the other Loan Documents and no
other provision of this Note or of the other Loan Documents will impair or
alter the obligation of Borrower, which is absolute and unconditional, to pay
the Principal, interest at the Fixed Interest Rate and any other amounts due
and payable under this Note, as and when required.

 

SIGNATURE PAGE TO FOLLOW.

 

5

 

IN WITNESS WHEREOF, Borrower has executed and delivered this Note as of
the date first set forth above.

 

	
   

  	
   

  	
  80
  SOUTH EIGHTH L.L.C., 

  a Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  JBC
  Opportunity Fund II, LP., 

  a Delaware limited partnership, 

  its Managing Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Buck
  Investors II, L.L.C., 

  a Delaware limited liability

  company, its General Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Kent A. Swanson

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Kent
  A. Swanson

  
	
   

  	
   

  	
   

  	
   

  	
  Its:

  	
  Authorized
  Person

  
							

 

 

ASSUMPTION OF NOTE

 

THIS
ASSUMPTION OF NOTE (this “Assumption”), dated, for reference purposes only, as
of August      , 2006, is made by and among 80
SOUTH EIGHTH L.L.C., a Delaware limited liability company (“Seller”), MB MINNEAPOLIS 8th
STREET, L.L.C., a Delaware limited liability company (“Buyer”), and TEACHERS INSURANCE AND
ANNUITY ASSOCIATION OF AMERICA, a New York corporation (“Lender”).

 

RECITALS :

 

A.            Seller executed that certain Note
dated December 15, 2004 in the principal amount of ONE HUNDRED SIXTY-ONE
MILLION AND N0/100 DOLLARS ($161,000,000.00) to Lender (the “Note”). All capitalized words and
phrases herein are defined, except as otherwise expressly provided, in
accordance with the definitions set forth in the Note.

 

B.            Pursuant to the terms of that
certain Assumption Agreement of even date herewith executed by Seller, Buyer
and Lender (the “Assumption Agreement”),
Buyer desires and intends to assume Seller’s obligations under the Note, as of
the Closing Date, as defined below.

 

NOW, THEREFORE,
the parties hereby agree as follows:

 

A.            The above recitals are hereby
incorporated within this Assumption as if fully set forth herein.

 

B.            As of the date the Assumption and
Amendment of Mortgage and the Assumption of Assignment of Leases and Rents, each
of even date herewith, by and among Seller, Buyer and Lender, is recorded in
the Office of the Register of Titles, Hennepin County, Minnesota (the “Closing Date”), Buyer hereby accepts,
assumes and agrees to perform all obligations of “Borrower” under the Note,
which is incorporated herein by this reference as if fully set forth herein.

 

C.            For the purposes of the first
paragraph of the Note, the address of Buyer, as Borrower thereunder, shall be
as follows:

 

MB Minneapolis
8th Street, L.L.C.

c/o The Inland
Real Estate Group, Inc.

2901
Butterfield Road

Oak Brook,
Illinois  60523

 

D.            This instrument is executed pursuant
to the terms of the Assumption Agreement, which is incorporated herein by this
reference.

 

E.             This Assumption may be executed in
any number of counterparts, each of which shall be deemed to be an original,
but all of which shall constitute one instrument.

 

 

IN WITNESS
WHEREOF, this Assumption has been executed as of the day and year set forth
above.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  80 SOUTH
  EIGHT L.L.C.,

  
	
   

  	
  a Delaware
  limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  JBC
  Opportunity Fund II, L.P.,

  
	
   

  	
   

  	
  a Delaware
  limited partnership,

  
	
   

  	
   

  	
  its Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Buck
  Investors II, L.L.C., a

  
	
   

  	
   

  	
   

  	
  Delaware
  limited liability

  
	
   

  	
   

  	
   

  	
  company, its
  General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Its:

  	
  A Member

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [SIGNATURES CONTINUED ON NEXT PAGE.]

  
							

 

2

 

	
  [SIGNATURES CONTINUED FROM PREVIOUS PAGE]

  
	
   

  	
   

  
	
   

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
  MB
  MINNEAPOLIS 8TH STREET, L.L.C., a

  
	
   

  	
  Delaware
  limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Minto
  Builders (Florida), Inc.,

  
	
   

  	
   

  	
  a Florida
  corporation, its sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
  [SIGNATURES CONTINUED ON NEXT PAGE.]

  
							

 

3

 

	
  [SIGNATURE CONTINUED FROM PREVIOUS PAGE]

  
	
   

  
	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  TEACHERS
  INSURANCE AND ANNUITY

  
	
   

  	
  ASSOCIATION
  OF AMERICA, a New York

  
	
   

  	
  corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
						

 

4Exhibit
10.122

 

CLOSING AGREEMENT

 

(Sherman Town Center)

 

THIS CLOSING AGREEMENT (this
“Agreement”) made as of July           ,
2006 (the “Effective Date”), by and between A-S 60 HWY 75-LOY LAKE, L.P., a Texas limited partnership (“Seller”), and MB SHERMAN TOWN CENTER LIMITED
PARTNERSHIP, an Illinois
limited partnership (“Purchaser”).

 

W I  T  N E S S E T H:

 

WHEREAS, Seller and
Purchaser are parties to that certain letter agreement (as heretofore modified,
amended and extended, the “LOI”) dated May
18, 2005, setting forth the basic terms and conditions pursuant to which
Purchaser will purchase from Seller and Seller will sell to Purchaser certain
real property and improvements, including, without limitation, the Property (as
defined below). Capitalized terms used but not defined herein shall have the
meanings ascribed thereto in the LOI;

 

WHEREAS, contemporaneously
herewith, Seller desires to sell to Purchaser, and Purchaser desires to
purchase from Seller, the Property (as defined below), upon and subject to the
terms and conditions hereinafter set forth;

 

NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

 

1.             Purchase and Sale. Subject to the terms of this Agreement and
the LOI, Seller hereby agrees to sell and convey, subject to the Permitted
Encumbrances (as defined below), and Purchaser hereby agrees to purchase and
pay for, notwithstanding the Permitted Encumbrances, the following property:

 

(a)       that certain tract of land and easement
estates (collectively, the “Land”) situated
in Grayson County, Texas, as more particularly described on Exhibit A hereto, together
with all rights and appurtenances pertaining to such Land, and all right, title
and interest of Seller in and to (i) all streets, alleys, easements, and
rights of way in, on, across, in front of, abutting or adjoining the Land; and
(ii) all oil, gas and other minerals in, on or under the Land;

 

(b)       all improvements situated on the Land and all
fixtures and other property affixed thereto (collectively, the “Improvements”);

 

(c)       any furniture, furnishings, equipment,
systems, facilities and machinery, and conduits to provide life safety, heat,
ventilation, air conditioning, electrical power, lighting, plumbing, security,
gas, sewer and water thereto, to the extent owned by Seller and now located on
or within the Land and the Improvements and used in connection therewith,
including a maintenance vehicle (the “Maintenance

 

 

Vehicle”) used by Seller in connection with the
management of the Property (collectively, the “Personal
Property”);

 

(d)       all of Seller’s right, title and interest as
landlord in the leases, as amended, described on Exhibit B
hereto for space situated within the Land and Improvements (collectively, the “Leases”), and to the extent paid to Seller, all prepaid
rents under the Lease applicable to the period from and after the Closing (as
defined below), and security and other deposits under the Leases;

 

(e)       all of Seller’s right, title and interest
(but without warranty as to assignability) in all written contracts (if any) relating
solely to the improvement, maintenance or operation of, or the provision of
services or supplies solely to, the Land or the Improvements (such as trash
removal or elevator, HVAC or landscaping maintenance contracts, and development
and common area maintenance agreements) (collectively, the “Service Contracts”);

 

(f)        all of Seller’s right, title and interest
(but without warranty as to assignability) in any unexpired warranties,
guaranties and bonds (including manufacturers’ warranties on Personal Property
and contractors’ warranties for tenant finish work) (if any) attributable to
the Improvements or Personal Property (the “Warranties”);

 

(g)       all of Seller’s right, title and interest
(but without warranty as to assignability) in all governmental permits,
licenses, certificates and authorizations, including, without limitation,
water, wastewater and other utility rights, allocation, availability and/or
capacity and certificates of occupancy, (if any) attributable to the Land,
Improvements or Personal Property (the “Permits”);

 

(h)       all of Seller’s right, title and interest
(but without warranty as to assignability) in and to all trade names
(excluding, however, the name “NewQuest Properties”), logos and other
intangible rights with respect to the Property (the “Intangibles”); and,

 

(i)        all of Seller’s right, title and interest
(but without warranty as to assignability) in and to all escrow and impound
accounts held by the Lender (as hereinafter defined) with respect to the
Property (the “Impounds”).

 

The matters described in items (a) through (i) above are
hereinafter collectively referred to as the “Property.”  To the extent that any of the personal
property described in clause (c) above is owned by occupants of space at
the Property or owned by any service provider pursuant to any of the Service
Contracts or owned by a utility pursuant to one or more Permitted Encumbrances,
it shall be excluded from the definition of the term Property and from the term
Personal Property as used in this Agreement.

 

2.           Purchase Price.

 

(a)       The total purchase price (the “Purchase Price”) to be paid by Purchaser to Seller for the
Property is SIXTY MILLION FIFTY-SIX THOUSAND

 

2

 

ONE HUNDRED TWENTY-NINE AND
NO/100 DOLLARS ($60,056,129.00). The Purchase Price is to be paid by Purchaser
as follows:

 

(i)            The
assumption by Purchaser and promise to pay, according to the terms and subject
to the limitations on personal liability thereof, all principal and interest
remaining unpaid as of the Effective Date on the Existing Indebtedness
(hereinafter defined); and

 

(ii)           The
balance of the Purchase Price (i.e., an amount equal to the Purchase Price less
the principal balance owing on the Existing Indebtedness as of the Effective
Date) shall be payable in cash or other immediately available funds at Closing
as set forth herein below.

 

“Existing Indebtedness”
means the indebtedness evidenced by that certain promissory note (as heretofore
amended, extended or modified, the “Existing Note”)
executed by Seller, originally payable to the order of JPMORGAN CHASE BANK,
N.A. (ALender”), dated June 15, 2004, and being in the original
principal amount of $39,650,000, such Existing Note having been assigned to
Wells Fargo Bank, N.A., as Trustee for the Registered Holders of J.P. Morgan
Chase Commercial Mortgage Securities Corp., Commercial Pass-Through
Certificates, Series 2004-C3, by instrument filed of record in Volume 3830,
Page 203 of the Official Public Records of Grayson County, Texas. The Existing
Note is secured, in part, by that certain Deed of Trust from Seller to Reno
Hartfiel, as Trustee for Lender, of even date with the Existing Note, filed of
record in Volume 3680, Page 231 of the Official Public Records of Grayson
County, Texas (as heretofore amended, extended or modified the AExisting Mortgage@) and encumbering the Property. The
Existing Note, the Existing Mortgage and all other documents, instruments and
agreements evidencing or securing the Existing Indebtedness are hereinafter
sometimes collectively referred to as the “Existing Loan Documents.”

 

(b)       The
Purchase Price set forth in Section 2(a) above is the total price to be paid to
Seller based upon the Existing Indebtedness being presently defeasible, and
assuming Seller has paid all costs and expenses associated with the defeasance
of the Existing Indebtedness. Since the Existing Indebtedness on the Property
is not defeasible as of the Effective Date, only a portion (the “Cash at Closing”) of the balance of the Purchase Price
described in Section 2(a)(ii) above (that portion being $21,307,189.59) is
being paid by Purchaser to Seller as of the Closing. The difference between the
balance of the Purchase Price described in Section 2(a)(ii) above and the Cash
at Closing shall be referred to herein as the “Loan Earnout.”  The date upon which the Existing Indebtedness
first becomes defeasible shall be referred to herein as the “Initial Defeasance Date.” 
Seller shall have the option to designate an actual defeasance date (the
“Designated Defeasance Date”), which
Designated Defeasance Date must be no later than six (6) months following the
Initial Defeasance Date, by providing Purchaser at least fifteen (15) business
days prior written notice of such Designated Defeasance Date (the “Defeasance Notice”). In the event Seller fails to designate
a date within such six (6) month period, the Designated Defeasance Date

 

3

 

shall be deemed to be the last day of such six (6)
month period. At least three (3) business days prior to the Designated
Defeasance Date, Seller and/or Purchaser shall request and obtain a final defeasance closing statement
(the “Defeasance Closing Statement”),
assuming a Designated Defeasance Date settlement date, from Commercial
Defeasance LLC (“Commercial Defeasance”), 11121
Carmel Commons Blvd, Suite 250, Charlotte, NC 28226, (704) 248-2608, Attn:
Joseph Parry. Purchaser has previously approved the form of defeasance
documents utilized by Commercial Defeasance and covenants and agrees to use its
best efforts to cause the defeasance of the Existing Indebtedness to be
completed on the Designated Defeasance Date. Seller shall be responsible for paying,
from the Loan Earnout Escrow, all fees, expenses, penalties and other costs
incurred in connection with such defeasance, including, without limitation, all
legal and accounting fees associated with such defeasance; provided, however,
in no event shall Seller’s responsibility for such costs and expenses exceed
the amount of the Loan Earnout Escrow. Upon
successful defeasance of the Existing Indebtedness, the total amount of costs
and expenses in connection with such defeasance, as reflected on the Defeasance
Closing Statement, shall be released from the Loan Earnout Escrow to pay the
costs of the defeasance, and all remaining Loan Earnout Escrow Funds in
the Loan Earnout Escrow, if any, shall be released to Purchaser. In the event
the amount of available funds in the Loan Earnout Escrow is insufficient to pay
all costs and expenses associated with such defeasance, Purchaser shall be
responsible for any amount by which the costs and expenses exceed such
available amount. Notwithstanding anything to the contrary contained herein or
in the LOI, Purchaser shall be solely responsible for the payment of all
principal and interest on the Existing Indebtedness after the Effective Date of
this Agreement.

 

(c)       Pursuant to the provisions of the Loan
Earnout Escrow Agreement referred to in Section 5(n) hereinafter, $300,000 (the
“Loan Earnout Escrow Funds”) has been
placed in escrow (the “Loan Earnout Escrow”)
by Purchaser to secure the payment of the Loan Earnout. The Loan Earnout Escrow
Funds shall be placed in an interest bearing account, and all interest thereon
shall be paid to Seler upon receipt thereof by the escrow holder. Funds in the
Loan Earnout Escrow shall be distributed as set forth hereinabove to satisfy
the obligations of Seller under this Section 2 and Paragraph 1 of the LOI.

 

3.             Seller’s Deliveries.

 

Prior to the Effective Date,
Seller has delivered to or made available to Purchaser, originals or true,
correct, complete copies of the following:

 

(a)       a current title insurance commitment issued
by American Title Company of Houston as agent on behalf of Chicago Title
Insurance Company (“Title Company”),
including copies of all recorded exceptions to title referred to therein
(collectively, the “Title Commitment”),
showing the status of title to the Land and Improvements according to the Title
Company. Purchaser and Seller agree that those exceptions shown on Exhibit F
attached hereto shall be “Permitted Exceptions”
hereunder;

 

4

 

(b)       Seller’s existing surveys of the Land and Improvements, together with
updates of the same prepared in accordance with Purchaser’s instructions (collectively,
the “Survey”);

 

(c)       a rent roll of the Property, together with copies
of the Leases;

 

(d)       copies of all written Services Contracts,
Warranties and Permits;

 

(e)       copies of any and all third-party inspection
reports, including without limitation, soil tests, environmental studies, and
engineering reports in Seller’s possession; but with no warranty as to the
accuracy or completeness thereof; and,

 

(f)        copies of the Existing Loan Documents and any
documents necessary to consummate the assignment by Seller, and assumption by Purchaser,
of the Existing Indebtedness (collectively, the “Assumption
Documents”).

 

4.             Investigation. Prior to the Effective Date, Purchaser has
had the opportunity to investigate the Property and all matters relevant to its
acquisition, ownership and operation.

 

5.             The Closing.

 

The consummation of the
transaction contemplated by this Agreement (the “Closing”)
shall take place through an escrow with Chicago Title & Trust Company (the “Escrow Agent”) contemporaneously herewith. Unless waived by
the party entitled to the benefit thereof, the obligations of either party to
close under this Agreement shall be subject to the performance by the other
party of all of the material covenants, agreements and obligations required to
be performed by such party under this Agreement on or before the Closing. At
the Closing, the following shall occur:

 

(a)       Seller shall deliver to Purchaser a duly
executed and acknowledged Special Warranty Deed (collectively, the “Deed”) in substantially the form attached hereto as Exhibit C.

 

(b)       Seller and Purchaser shall execute and
deliver a Bill of Sale, Assignment and Assumption of Contracts (“Bill of Sale”) in the form of Exhibit E
hereto, conveying to Purchaser the Personal Property, Service Contracts,
Warranties and Intangibles.

 

(c)       Purchaser shall pay the balance of the
Purchase Price as provided in Section 2(a)(ii) hereof, and the parties
shall execute settlement statements reflecting the Purchase Price and the
prorations, adjustments and closing costs described in Section 6 hereof.

 

(d)       Seller and Purchaser shall enter into an
Assignment and Assumption of Leases in substantially the form attached hereto
as Exhibit D, whereby Seller shall
deliver as provided in this Agreement and assign to Purchaser the landlord’s
interest in the (i) Leases and (ii) any and all deposits under the Leases
and not

 

5

 

previously applied and
whereby Purchaser shall assume all of the obligations of the landlord under the
Leases arising from and after the Closing, including any obligation to account
for the security deposits assigned to Purchaser.

 

(e)       Seller shall deliver to Purchaser originals
(or to the extent originals are not in Seller’s possession, copies) of the Leases,
Service Contracts, Warranties, Permits, plans and specifications of the
Improvements, tenant files and certificates of occupancy (if applicable) relating
to the Property within Seller’s possession.

 

(f)        The parties shall execute a blank form written
notice addressed to tenants under the Leases notifying such tenants of the
acquisition of the Property by Purchaser, which shall be delivered to Purchaser
at Closing.

 

(g)       Pursuant to the terms and conditions of this
Agreement, possession of the Property shall be delivered to Purchaser at
Closing.

 

(h)       Seller shall deliver to Purchaser all keys to
all locks on the Property within Seller’s possession (or the possession of its
agents).

 

(i)        Seller shall deliver to Purchaser a “non-foreign affidavit” acknowledging that Seller is not a
nonresident alien within the meaning of Section 1445 of the Internal
Revenue Code of 1986, as amended.

 

(j)        Seller and Purchaser shall each execute and
deliver to the other party such disclosures as may be required by applicable
law.

 

(k)       Seller shall deliver, or cause to be
delivered, to Purchaser (or shall provide evidence that the Title Company is
unconditionally prepared to issue to Purchaser) a TLTA Form B Owner’s Policy of
Title Insurance (the “Title
Policy”) with respect to the Property, together with those
endorsements set forth in Section 6(l) of this Agreement, and insuring any appurtenant
easements in the amount of the Purchase Price, insuring Purchaser’s fee simple
title to the Property to be good and indefeasible subject to the terms of such
Title Policy and the exceptions specified therein.

 

(l)        Each party shall deliver to the other party
such documentary and other evidence as may be reasonably required by the Title
Company including, without limitation, such documents evidencing its existence
and/or good standing and the authority of the person or persons who are
executing the various documents on its behalf in connection with this
Agreement, and a certificate confirming such party’s representations and
warranties and, in the case of Seller, Seller will execute customary affidavits
of debts, liens, and possession required by the Title Company, including,
including, without limitation, those required to limit any exception for “parties
in possession” to the rights of tenants, as tenants only, under the Leases
delivered to Purchaser in accordance with Section 3.

 

6

 

(m)      The Purchaser and NewQuest Properties shall
execute and deliver to the other party a Leasing Agreement in form and
substance reasonably acceptable to Purchaser and NewQuest Properties.

 

(n)       Each party shall execute and deliver to the
other party the escrow agreement (the “Loan Earnout Escrow
Agreement”) relating to the escrow of certain funds contemplated to
be used to pay all costs, premiums and penalties to defease the Existing
Indebtedness, as contemplated by Section 2 hereof and Paragraph 1 of the LOI.

 

(o)       Each party shall execute and deliver to the
other party such agreements as may be reasonably required as contemplated by
Paragraph 17 of the LOI, including, to the extent applicable, any required REA
or Sign Agreement contemplated therein.

 

(p)       Purchaser shall execute and deliver the Assumption
Documents.

 

6.             Prorations.

 

(a)       Taxes. General real estate and personal property taxes and assessments
relating to the Property shall be prorated and shall be assumed at Closing by Purchaser.
The proration for such taxes and assessments shall be based upon, at Purchaser’s
option, the greater of (i) one hundred ten percent (110%) of the most recently
issued tax bill for the Property, or (ii) the estimated assessment for calendar
year 2006 utilizing the local tax assessor’s method of assessment. If the most
recent tax bill is not for the current tax year, then the parties shall
reprorate within thirty (30) days of the receipt of the tax bill for the
current tax year. Purchaser shall receive a credit at Closing equal to the
prorated amount of such taxes through Closing. Seller shall be responsible for
all “roll-back” taxes assessed against the Property for any period before or
after the Closing. After Closing, Purchaser shall have sole authority to
control the progress of, and to make all decisions with respect to, any
proceedings for the reduction of the assessed valuation of the Property. All
net tax refunds and credits attributable to any period prior to the Closing
Date which Seller has paid or for which Seller has given a credit to Purchaser
shall belong to and be the property of Seller, provided, however, that any such
refunds and credits that are the property of tenants under Leases shall be
promptly remitted directly to such tenants. All net tax refunds and credits
attributable to any period subsequent to the Closing Date shall belong to and
be the property of Purchaser.

 

(b)       Fixed, Minimum and Base Rents. Subject to Section 6(g) below, Seller
shall be entitled to fixed, minimum and base rents which are due or past due or
not yet due but accrued under the terms of the Leases, prorated to 11:59 p.m.
of the day prior to the Closing, regardless of when such payments are actually
made. At Closing, rents for the month of Closing will be prorated as provided
below. “Delinquent Amounts”, as defined in Section 6(j) below, shall be handled
in the manner provided in Section 6(j) below). All scheduled payments of fixed,
minimum or base rents received by Seller or Purchaser for the month of Closing
shall be prorated based upon the

 

7

 

number of days in that month
occurring before the Closing. If, as of the Closing, any scheduled payment of
fixed, minimum or base rents has not been paid by a tenant for the month of
Closing (such amount being referred to as the “Current
Unpaid Rent” for such tenant), than any subsequent payments made by
such tenant after Closing shall first be applied to (but only to the extent of)
the Current Unpaid Rent for such tenant. If after the Closing, Seller receives
any payment from a tenant with Current Unpaid Rent, Seller shall be entitled to
retain from any such payment the amount of the Current Unpaid Rent for such
tenant (with the balance of any such payment being treated as a “Delinquent
Amount” and disposed of pursuant to the provisions of Section 6(j) below, or if
Purchaser receives any such payment from a tenant with Current Unpaid Rent,
Purchaser shall promptly remit to Seller from any such payment the amount of the
Current Unpaid Rent for such tenant (with the balance of any such payment being
treated as a “Delinquent Amount” and disposed of pursuant to the provisions of
Section 6(j) below.

 

(c)       Percentage Rents. Any percentage rents due or paid under any
of the Leases (“Percentage Rent”) shall be prorated between Purchaser
and Seller outside of escrow as of the Closing Date on a LeaseBbyBLease basis, as follows;  (a) Seller shall be entitled to receive
the portion of the Percentage Rent under each Lease for the Lease Year in which
Closing occurs, which portion shall be the ratio of the number of days of said
Lease Year in which Seller was Landlord under the Lease to the total number of
days in the Lease Year, and (b) Purchaser shall receive the balance of
Percentage Rent paid under each Lease for the Lease Year. As used herein, the
term “Lease Year” means the twelve
(12) month period as to which annual Percentage Rent is owed under each Lease. Upon
receipt by either Seller or Purchaser of any gross sales reports (“Gross Sales Reports”) and any full or
partial payment of Percentage Rent from any tenant of the Property, the party
receiving the same shall provide to the other party a copy of the Gross Sales
Report and a check for the other party’s proBrata share of the Percentage Rent within five
(5) days of the receipt thereof. In the event that the tenant only remits a
partial payment, then the amount to be remitted to the other party shall be its
proBrata share of the partial payment. Nothing contained herein shall be
deemed or construed to require either Purchaser or Seller to pay to the other
party its proBrata share of the Percentage Rent prior to receiving the Percentage
Rent from the tenant, and the acceptance or negotiation of any check for
Percentage Rent by either party shall not be deemed a waiver of that party’s
right to contest the accuracy or amount of the Percentage Rent paid by the
tenant.

 

(d)       Utilities Charges and Deposits. Water and sewer service charges, telephone,
cable television and charges for all other utilities, including, without
limitation, steam, electricity and gas shall be prorated to the date of Closing.
Seller shall cause all utility meters to be read on the Closing Date and Seller
shall pay to Purchaser (or furnish evidence of prior payment) an amount equal
to utility charges incurred or accrued up to the reading of such utility meters.
Seller shall retain the right to any security deposits on deposit with any
utility companies, and Purchaser shall be required to deposit with any such
utility companies security deposits for its own account. If final readings and
billings cannot be obtained as of the Closing Date, the

 

8

 

final bills when received
shall be prorated based upon the number of days Seller owned the Subject
Properties in such final billing period.

 

(e)       Rent Concessions, Tenant Improvements and
Commissions. Purchaser shall
be credited at Closing with the amount of any and all rent concessions (except
for those, if any, that are reflected in Paragraph 18 and Paragraph 19 of the
LOI, as to which no credit shall be given to Purchaser) given by Seller to any
tenant of the Property for any period beyond the Closing Date. Seller shall be
responsible for all leasing commissions and all tenant improvement costs,
refurbishment allowances and other tenant inducements, which relate to the
Leases which were entered into by or on behalf of Seller or any prior owner of
the Property prior to the Effective Date hereof, whether or not payment for
such item is due before or after the Closing. With respect to any Leases
entered into after the Effective Date of this Agreement, Purchaser shall be
responsible for any such expenses.

 

(f)        Lender Escrow Accounts and Impounds. At Closing, Seller shall be credited for
the full amount of any escrow accounts and impounds maintained by the Lender
with respect to the Property, Seller’s interest in such escrow accounts and
impounds having been assigned by Seller to Purchaser contemporaneously with the
Closing.

 

(g)       Other Items of Expense or Receipt. All other customarily prorated items of
expense or receipt (excluding those items previously addressed in this Section
6 above) shall be prorated between the Seller and Purchaser as of the Closing,
except to the extent certain expenses are payable by tenants under the Leases
on a annual basis after Closing, in which event such expenses shall be not be
prorated and shall be assumed in their entirety by Purchaser. To the extent Purchaser
will assume any obligations which are attributable to periods of time prior to
the Closing Date, Purchaser shall receive a credit for such amount at Closing. The
Seller shall retain (and the Assignment of Leases shall reserve to Seller) all
receivables from tenants for common area maintenance, taxes and insurance for 2006
and previous years and Seller shall have the right to pursue and collect such
receivables from all tenants after the Closing; provided, Seller shall have no
right to sue any current tenant under the Leases. Purchaser shall cooperate
with Seller in the collection of such receivables. Purchaser shall have no
obligation to take any enforcement action, but if any such amounts are paid to Purchaser,
they shall be paid immediately to Seller by Purchaser. If the apportionment of
any payments relating to common area maintenance charges for calendar year 2006
(which have, as of the Closing, been billed, but not collected, by Seller)
received by Purchaser after the date of Closing from a tenant under any of the
Leases on account of periods prior to Closing and on account of sums which are
attributable to expenses incurred by the lessor/landlord for periods of time
prior to Closing (and which are not reimbursed or credited by Purchaser to
Seller pursuant to any other provision of this Agreement), cannot be precisely
determined at the time of Closing, such sums shall be apportioned on a cash
basis at closing pro-rata between Purchaser and Seller on a per diem basis as
of the date of Closing. A post closing adjustment shall be made, if necessary, between
Purchaser and Seller for such apportioned items (including specifically,
without limitation, the payment by Purchaser

 

9

 

to Seller of common area
maintenance charges for calendar year 2006 to the extent collected by Purchaser
from and after the Closing Date) within thirty (30) days after the sums can be
precisely determined. The provisions hereof shall expressly survive the Closing.
Except with respect to items prorated at the Closing, Seller shall be
responsible for payment of any and all bills or charges incurred on or prior to
the Closing for work, services, supplies or materials relating to the Property,
and Purchaser shall be responsible for payment of any and all bills or charges
incurred after the Closing for work, services, supplies or materials relating
to the Property for which Purchaser has engaged the party performing or
delivering such items or has expressly assumed such obligations pursuant to an
express provision herein or in a separate document executed at Closing.

 

(h)       Adjustments. Prorations shall be accomplished by an adjustment in the Purchase
Price due Seller on the Closing, except as otherwise expressly provided in this
Agreement.

 

(i)        Post-Closing Adjustments. Seller and Purchaser shall, on or before
the Closing, agree upon and furnish to the Escrow Agent an agreed schedule of
the foregoing prorations. To the extent possible, the amount of any adjustment
described in this section shall be estimated and paid at the Closing based upon
the best information available to Purchaser and Seller at the time, and shall
be adjusted as soon thereafter as may be reasonably practicable when final
billings are available or when such amounts may be determined with reasonable
certainty. In the event any adjustments pursuant to this Section 6 are,
subsequent to Closing, found to be erroneous, then either party hereto who is
entitled to additional monies shall invoice the other party for such additional
amounts as may be owing, and such amount shall be paid within ten (10) days
from receipt of the invoice. This covenant shall expressly survive Closing.

 

(j)        Collections and Application of Payments after
the Closing. After the
Closing, Purchaser shall bill the tenants for all amounts due under Leases,
including amounts accruing prior to the Closing but only with respect to the
calendar year of Closing. Any amounts or charges payable by the tenants on or
after the Closing with respect to which Seller is entitled to receive a share
under this Agreement, which are not paid within thirty (30) days after the due
date, and any amount due and owing Seller before the Closing by tenants under
the Leases which are unpaid as of the Closing, are collectively herein called “Delinquent Amounts”. Notwithstanding the foregoing or any
direction from tenants to the contrary, (i) Current Unpaid Rent shall not be
considered to be a Delinquent Amount for purposes of this Section 6(j), and (ii)
rental and other payments received by Purchaser or Seller from the tenants (other
than Current Unpaid Rent, which shall be handled in the manner provided in
Section 6(b) above) shall be first applied toward rent and other charges
(including, without limitation, costs of collection) due for any period after Closing,
then toward Delinquent Amounts for periods prior to the calendar month of
Closing, and any excess monies received shall be applied toward any other
amounts due to Purchaser.

 

10

 

(k)       Service Contract Charges. Amounts due and payable under any Service
Contract assigned to Purchaser at Closing shall be prorated as of the Closing,
and, at the Closing, Seller or Purchaser, as the case may be, shall pay to the
other any amount required as a result of such adjustment, and this covenant
shall not merge with the deed delivered hereunder but shall survive the
Closing.

 

(l)        Closing Costs. Any escrow fee and expenses charged by the
Title Company shall be paid equally by Seller and Purchaser. Seller shall pay
(i) all costs for the Title Commitment and the basic premium for the Title
Policy; (ii) all costs for title curative matters to the extent required
by this Agreement or the LOI; (iii) its share of the prorations described
above, (iv) one-half (1/2) of the costs of the updated Survey, and (v) all fees
and expenses incurred in connection with the assumption by Purchaser of the
Existing Indebtedness, including, without limitation, all legal and
accounting fees associated with such assumption. Purchaser shall pay (i) the cost of recording the Deed for the
Real Property; (ii) one-half (1/2) of the costs of the updated Survey;
(iii) all premiums for any modifications or endorsements to the Title Policy,
including any premium charged to obtain the T-19.1, T-23 and T-25 Endorsements
and the “shortages in area” deletion and any inspection fee imposed by the
Title Company in order to issue the Title Policy without any exception for
rights of parties in possession (except for rights of tenants under written
leases described in the certified rent roll to be delivered by Seller to
Purchaser at Closing); and (iv) its proportionate share of the prorations
described above. Each party shall be responsible for the payment of its own
attorneys’ fees incurred in connection with this Agreement and all other
expenses which such party incurs. Additionally, any expenses, charges and fees
of closing, not specifically allocated herein or incurred by a specific party,
shall be borne by the parties in accordance with general custom in the county
where the Property is located, or, if no such custom exists, shall be borne
equally between the parties.

 

(m)      Survival. Unless otherwise expressly provided herein, this Section 6 shall
survive until the first anniversary of the Closing.

 

7.             Remedies; Post-Closing Defaults. Notwithstanding anything to the contrary
contained herein, if after the Closing a party (the “Defaulting
Party”) breaches an obligation under this Agreement which is
expressly stated to survive the termination of this Agreement or the Closing,
as the case may be, the Defaulting Party shall be liable to the other party
(the “Non-Defaulting Party”) for the actual
damages incurred by the Non-Defaulting Party as a direct result of such breach,
subject to the terms and provisions contained herein. The Non-Defaulting Party
shall also have the right to pursue any remedy available to it in law or in
equity in the event of a breach by the Defaulting Party of any covenant or
agreement contained herein. However, in no event shall the Non-Defaulting Party
be entitled to recover from the Defaulting Party any punitive, consequential or
speculative damages.

 

8.             Real Estate Commissions.

 

Each party hereto represents
to the other that it has not authorized any broker or finder to act on its
behalf in connection with the sale and purchase of the Property and that such

 

11

 

party
has not dealt with any broker or finder purporting to act on behalf of any
other party. Each party hereto agrees to indemnify and hold harmless the other
party from and against any and all losses, liens, claims, judgments,
liabilities, costs, expenses or damages (including reasonable attorneys’ fees
and disbursements and court costs) of any kind or character arising out of or
resulting from any agreement, arrangement or understanding alleged to have been
made or dealing by such party or on its behalf with any broker or finder in
connection with this Agreement or the transaction contemplated hereby.

 

9.             Notice.

 

Any notice required
hereunder must be given in writing (by a party or by such party’s attorney),
sent by (a) personal delivery, (b) overnight delivery service with
proof of delivery, (c) United States Postal Service, postage prepaid,
registered or certified mail, return receipt requested, or (d) telecopy,
except as otherwise expressly provided in this Agreement, addressed as follows:

 

If to Purchaser:

 

MB SHERMAN TOWN CENTER LIMITED
PARTNERSHIP

2901 Butterfield Road

Oak Brook, Illinois  60523

Attn: Lori Faust

Telephone: (630) 218-8000

Telecopy: (630) 645-7242

 

With a copy to:

 

The Inland Real Estate
Group, Inc.

2901 Butterfield Road

Oak Brook, Illinois 60523

Attn: Dennis K. Holland, Associate
Counsel

Telephone: (630) 218-8000

Telecopy: (630) 218-4900

 

If to Seller:

 

8807 W. Sam Houston Pkwy.
North

Suite 200

Houston, Texas  77040

Attn:  Steven D. Alvis

Telephone:  (281) 477-4310

Telecopy:  (281)
477-4311

 

12

 

with a copy to:

 

Nathan Sommers Jacobs

A Professional Corporation

2800 Post Oak Boulevard, 61st
Floor

Houston, Texas 77056

Attention: Louis B. Sullivan
III, Esq.

Telephone: (713) 892-4830

Telecopy: (713) 892-4840

 

Any such notice shall be
deemed to have been given and received either, in the case of personal
delivery, at the time of personal delivery; in the case of delivery service, as
of the date of the first attempted delivery at the address and in the manner
provided herein; in the case of mailing, the earlier of actual receipt or three
(3) business days after depositing with the U.S. Postal Service; or in the case
of telecopy, upon transmission; provided, however, that if the last date
permitted for notice shall be the business day before the Closing or the
Closing, then such notice must be given so that it is actually received on such
day. E-mail or electronic mail is not sufficient notice.

 

10.           Post
Closing Obligations.

 

(a)       Hobby
Lobby Payments. Seller and
Purchaser acknowledge and agree that, pursuant to the terms and provisions of
the Lease with Hobby Lobby, the tenant thereunder has the right to offset the
monthly minimum rent payable thereunder by 50% of the rent and triple net
charges that are payable under its sublease with The Kroger Co. at the tenant’s
former location in the City of Sherman. For so long as Hobby Lobby has the
right under its Lease to offset the monthly minimum rent payable thereunder and
actually exercises such offset rights, Seller shall pay to Purchaser, on a
monthly basis at the time and in the manner that the minimum rent is due under
the Hobby Lobby Lease, the amount that Hobby Lobby properly offsets against the
minimum rent that is payable to the landlord under its Lease. The covenants and
obligations of Seller contained in this Section 10(a) shall survive Closing,
and such obligations shall be jointly and severally guaranteed by Steven D.
Alvis, Jay K. Sears, H. Dean Lane, Jr., and Kyle D. Lippman.

 

(b)       Pylon
Signs. Purchaser agrees to
cooperate in good faith with Seller (or any partnership which Seller or its
affiliates control) to allow Seller (or such controlled partnership) to utilize
any available (meaning that Purchaser (or the Partnership) does not need any
such unused sign panel(s) for vacant space(s) in the Property) space(s) on
pylon or monument signs within the Property for use in connection with an
additional parcel of land owned by Seller (or an affiliate of Seller) comprised
of approximately 16.1 acres located adjacent to the Property.

 

11.           Attorney’s Fees and Legal Expenses.

 

In the event that either
party hereto institutes any action or proceeding in court to enforce or interpret
any provision hereof or for damages by reason of any alleged breach of any

 

13

 

provision
of this Agreement or for any other judicial remedy, the prevailing party shall
be entitled to receive from the losing party all reasonable attorneys’ fees and
disbursements and all court costs in connection with said proceedings.

 

12.           Section Headings; Other Terms.

 

The section headings
contained in this Agreement are for convenience only and shall in no way enlarge
or limit the scope or meaning of the various and several paragraphs hereof. The
words “herein,” “hereof,” “hereto,” “hereunder,” and others of similar import
refer to the Agreement as a whole and not to any particular section, subsection
or clause contained in this Agreement. The singular of a term shall include the
plural and the plural shall include the singular. The terms “includes” and “including”
are not limiting.

 

13.           Entire Agreement.

 

The LOI and this Agreement
embodies the entire agreement between the parties hereto relating to the
subject matter hereof and supersedes any prior understandings or written or
oral agreements between the parties concerning the Property. Further, this
Agreement cannot be varied, modified, amended, altered or terminated except by
the written agreement of the parties.

 

14.           Applicability.

 

The terms and provisions of
this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective permitted successors and assigns, except as expressly
set forth herein.

 

15.           Exhibits.

 

All exhibits and schedules
described herein and attached hereto are fully incorporated into this Agreement
by this reference for all purposes.

 

16.           Applicable Law.

 

THIS AGREEMENT SHALL BE
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF
TEXAS WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAW.

 

17.           Counterparts.

 

This Agreement may be
executed in counterparts, all such executed counterparts shall constitute the
same agreement, and the signature of any party to any counterpart shall be
deemed a signature to, and may be appended to, any other counterpart.

 

18.           Facsimile Signatures.

 

In order to expedite the
transaction contemplated herein, telecopied signatures may be used in place of
original signatures on this Agreement. Seller and Purchaser intend to be bound
by the signatures on the telecopied document, and are aware that the other
party will rely

 

14

 

on
the telecopied signatures, and hereby waive any defenses to the enforcement of
the terms of this Agreement based upon the form of signature. If telecopied
signatures are delivered, Seller and Purchaser will each forward original
counterpart signatures to the other promptly after delivery of the telecopied
signatures as set forth herein.

 

19.           Business Day.

 

As used herein, the term “business day” shall mean all days, excluding Saturdays,
Sundays and all days observed by either the State of Texas or the Federal
Government as legal holidays. In the event that any date for performance falls
on a day other than a business day, then performance shall be postponed until
the next business day.

 

20.           Strict Performance.

 

It is specifically agreed
that “time is of the essence” as to all matters provided for in this Agreement.

 

21.           Additional Notices.

 

(a)       If the Property is situated in a utility or
other statutorily created district providing water, sewer, drainage, or flood
control facilities and services, Chapter 49 of the Texas Water Code requires
Seller to deliver and Purchaser to sign the statutory notice relating to the
tax rate, bonded indebtedness, or standby fee of the district prior to final
execution of this Agreement.

 

(b)       If the
Property is located outside the limits of a municipality, Seller notifies
Purchaser under Section 5.011, Texas Property Code, that the Property may now
or later be included in the extraterritorial jurisdiction of a municipality and
may now or later be subject to annexation by the municipality. Each
municipality maintains a map that depicts its boundaries and extraterritorial
jurisdiction. To determine if the Property is located within a municipality’s
extraterritorial jurisdiction or is likely to be located within a municipality’s
extraterritorial jurisdiction, contact all municipalities located in the
general proximity of the Property for further information.

 

22.           Conflict with LOI.

 

This Agreement is being
entered into pursuant to and in accordance with the terms and provisions of the
LOI. The LOI shall survive the execution of this Agreement. In the event of a
direct conflict between the terms of this Agreement and the terms of the LOI,
the LOI shall control. Notwithstanding the forgoing, the matters set forth in
Section 2 of this Agreement are meant to be construed in conjunction with the
LOI and neither document shall control over the other with respect to such
Section 2.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

15

 

IN
WITNESS WHEREOF, this Agreement is executed in multiple originals by Seller and
Purchaser.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  A-S
  60 HWY 75-LOY LAKE,
  L.P., a Texas

  limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  Sherman
  GP, LLC, a Delaware limited

  liability company, its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Steven D. Alvis

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Manager

  	
   

  

 

The following individuals join in the execution of this Agreement to
acknowledge their obligations pursuant to Section 10(a) of this Agreement.

 

 

	
   

  	
   

  
	
  STEVEN D. ALVIS

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  JAY K. SEARS

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  H. DEAN LANE, JR.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  KYLE D. LIPPMAN

  	
   

  

 

16

 

IN
WITNESS WHEREOF, this Agreement is executed as of the Effective Date by
Purchaser.

 

	
   

  	
   

  	
  PURCHASER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MB SHERMAN TOWN CENTER LIMITED

  PARTNERSHIP, an Illinois limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  MB Sherman Town Center GP, L.L.C.,
  a Delaware limited

  liability company, its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Minto Builders
  (Florida), Inc., a

  Florida corporation, its sole member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
									

 

17

 

EXHIBIT A

 

LEGAL DESCRIPTION OF THE LAND

 

A-1

 

EXHIBIT B

 

RENT ROLL

 

B-1

 

EXHIBIT C

 

DEED

 

C-1

 

EXHIBIT D

 

ASSIGNMENT AND ASSUMPTION OF LEASES

 

D-1

 

EXHIBIT E

 

BILL
OF SALE, ASSIGNMENT AND ASSUMPTION OF SERVICE CONTRACTS,

WARRANTIES, PERM(ITS AND INTANGIBLES

 

E-1

 

EXHIBIT F

 

PERMITTED EXCEPTIONS

 

F-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]