Document:

EXHIBIT
10.18

PURCHASE
AND SALE AGREEMENT

(Existing Center)

(Preston Royal Village Shopping Center, Dallas, Texas)

          THIS
AGREEMENT is made as of the 12th day of October, 2012, between PRESTON
ROYAL REALTY COMPANY, a Texas joint venture (“Seller”), and AMREIT REALTY
INVESTMENT CORPORATION, a Texas corporation (“Buyer”).

Background

          Buyer
wishes to purchase Seller’s interest in a shopping center located at the
northwest and northeast corners of the intersection of Preston Road and Royal
Lane in the City of Dallas, County of Dallas, State of Texas, known as Preston
Royal Village Shopping Center (the “Shopping Center”); 

          Seller
wishes to sell the Seller’s interest in the Shopping Center to Buyer;

          In
consideration of the mutual agreements herein, and other good and valuable
consideration, including the sum of One Hundred Dollars ($100.00) paid to
Seller by Buyer, the receipt of which is hereby acknowledged, Seller agrees to
sell to Buyer and Buyer agrees to purchase the Seller’s interest in the
Shopping Center, subject to the following terms and conditions:

1. DEFINITIONS

          As used in
this Agreement, the following terms shall have the following meanings:

          1.1       Agreement
means this Purchase and Sale Agreement, which shall supersede all prior
agreements and understandings between Buyer and Seller concerning the sale and
purchase of the Seller’s interest in the Property.

          1.2       Assignment
and Assumption Agreement means an Assignment and Assumption Agreement in the
form attached hereto as Exhibit 1.2, assigning the Existing Leases and Assigned
Existing Agreements from Seller to Buyer.

          1.3       Assignment
and Assumption Agreement of Ground Lease means an Assignment and Assumption
Agreement of Ground Lease in the form attached hereto as Exhibit 1.3, assigning
Seller’s leasehold interest and estate in the Leasehold Parcel existing under,
and by virtue of, the Ground Lease from Seller to Buyer, subject to the
Permitted Exceptions affecting the Leasehold Parcel. 

          1.4       Assigned
Existing Agreements means the service contracts, agreements and other
instruments concerning the ownership, operation and leasing of the Property
identified on Exhibit 1.4.

          1.5       Audit
Representation Letter means the form of audit representation letter
attached hereto as Exhibit 1.5.

          1.6       Bill
of Sale means a Bill of Sale in the form attached hereto as Exhibit 1.6,
conveying the Personal Property from Seller to Buyer.

          1.7       Buyer’s
Broker means the real estate brokerage firm listed as Broker on Exhibit 1.7
of this Agreement. Participating broker(s), if any, are also identified on
Exhibit 1.7.

          1.8       Buyer’s
Notice has the meaning ascribed to such term in Section 2.2.

          1.9       Closing
means generally the execution and delivery of those documents and funds
necessary to effect the purchase and sale of the Property. 

          1.10     Closing
Date has the meaning ascribed to such term in Section 2.4(a).

          1.11     Code
has the meaning ascribed to such term in Section 2.4(b).

          1.12     Continuation
Notice has the meaning ascribed to such term in Section 14(e).

          1.13     Earnest
Money Deposit means the deposit delivered by Buyer to Escrow Agent under
Section 2.2 of this Agreement, together with the earnings thereon, if any. 

          1.14     Effective
Date means the means the day and year first written above. 

          1.15     Environmental
Law means any current legal requirement pertaining to (a) the protection of
health, safety, and the indoor or outdoor environment, (b) the conservation,
management, protection or use of natural resources and wildlife, (c) the
protection or use of source water and groundwater, (d) the management, manufacture,
possession, presence, use, generation, transportation, treatment, storage,
disposal, release, threatened release, abatement, removal, remediation or
handling of, or exposure to, any Hazardous Material or (e) pollution (including
any release to air, land, surface water, and groundwater); and includes,
without limitation, the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended by the Superfund Amendments and
Reauthorization Act of 1986, 42 USC §§9601 et seq., Solid Waste Disposal Act, as
amended by the Resource Conservation Act of 1976 and Hazardous and Solid Waste
Amendments of 1984, 42 USC §§6901 et seq., Federal Water Pollution Control
Act, as amended by the Clean Water Act of 1977, 33 USC §§1251 et seq.,
Clean Air Act of 1966, as amended, 42 USC §§7401 et seq., Toxic Substances
Control Act of 1976, 15 USC §§2601 et seq., Hazardous Materials
Transportation Act, 49 USC App. §§1801, Occupational Safety and Health Act of
1970, as amended, 29 USC §§651 et seq., Oil Pollution Act of 1990, 33 USC
§§2701 et
seq., Emergency Planning and Community Right-to-Know Act of 1986, 42
USC App. §§11001 et seq., National Environmental Policy Act of 1969, 42 USC
§§4321 et
seq., Safe Drinking Water Act of 1974, as amended by 42 USC §§300(f)
et seq.,
and any similar, implementing or successor law, any amendment, rule,
regulation, order or directive, issued thereunder.

          1.16     Escrow
Agent means the Title Company.

          1.17     Existing
Leases has the meaning ascribed to such term in Section 4.

          1.18     Existing
Loan means, collectively, those certain mortgage loans obtained by Seller
from Nationwide Life Insurance Company (“Lender”) in the aggregate original
principal amount of $16,050,000.00.

          1.19     Existing
Loan Documents means those loan documents identified on Exhibit 1.19
attached to this Agreement evidencing and securing the Existing Loan.

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          1.20     Existing
Survey means, collectively, those certain Improvement Surveys of the
Property dated November 23, 2004 and December 9, 2004 (each most recently
revised January 16, 2006), prepared by James Barton Carroll, R.P.L.S. No. 5129.

          1.21     FIRPTA
Certification means a FIRPTA Certification in the form attached hereto as
Exhibit 1.21.

          1.22     Ground
Lease means, collectively, that certain Agreement of Lease dated November
3, 1964, by and between Preston Royal Shopping Center, Inc. (“Original
Landlord”), as landlord, and Trammell Crow and Henry S. Miller, as tenant and
predecessors-in-interest to Seller, a memorandum of which is recorded in Volume
482, Page 931, Deed Records, Dallas County, Texas, as amended by (i) letter
agreement dated January 9, 1990 made and entered into by and among Mixon
Investment Company, Inc. (“Ground Lessor”), successor in interest to Original
Landlord, as landlord, and Henry S. Miller, Jr., an individual, Henri L.
Bromberg, Jr., an individual, Edward S. Bromberg, an individual, Louise W.
Kahn, individually and as Independent Executrix of the Estate of Edmund J.
Kahn, deceased, Dan R. Cullum, an individual, Betsy Cullum Bolin, an
individual, Robert Brooks Cullum, Jr., an individual, and Sally Cullum Holmes,
an individual, collectively, as tenant; (ii) letter agreement dated September
22, 1993, made and entered into by and between Ground Lessor, as landlord, and
Henry S. Miller, Jr. on behalf of tenant, (iii) First Amendment to Short Form Lease
dated January 19, 2006, by and between Ground Lessor, as landlord, and Seller,
as tenant, recorded as Document No. 20006000211974, Deed Records, Dallas
County, Texas; and (iv) Estoppel and Recognition Agreement dated January 19,
2006, by and among Ground Lessor, Seller and Lender.

          1.23     Ground
Lease Estoppel Letter means a letter or other certificate from the Ground
Lessor consenting to the transfer of Seller’s interest in the Ground Lease to
Buyer and certifying as to certain matters regarding the Ground Lease, in
substantially the form attached hereto as Exhibit 1.23.

          1.24     Hazardous
Material means any hazardous or toxic substance as defined in or regulated
by any Environmental Law in effect at the pertinent date or dates. 

          1.25     Improvements
means all buildings, structures or other improvements situated on the Real
Property.

          1.26     Independent
Contract Consideration has the meaning ascribed to such term in Section
2.3.

          1.27     Inspection
Period has the meaning ascribed to such term in Section 14.

          1.28     Leases
means all leases and other occupancy agreements, other than the Ground Lease,
permitting persons to lease or occupy all or any portion of the Property.

          1.29     Lender
Approval has the meaning ascribed to such term in Section 14(c)(iii).

          1.30     Loan
Assumption has the meaning ascribed to such term in Section 14(c).

          1.31     Loan
Assumption Documents has the meaning ascribed to such term in Section
14(c)(i).

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          1.32     Major
Tenants are the tenants identified on the schedule of Major Tenants
attached as Exhibit 1.32 to this Agreement.

          1.33     Materials
means all plans, drawings, specifications, soil test reports, environmental
reports, market studies, surveys and similar documentation, if any, owned by or
in the possession of Seller with respect to the Property and any proposed
improvements to the Property.    

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.34

 	
 New Lease has the meaning ascribed to such
 term in Section 4(a).

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.35

 	
 Permitted Exceptions means only the
 following interests, liens and encumbrances:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 The Ground Lease;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 Subject to adjustment as set forth in the Agreement, taxes and
 assessments which are a lien, but which are not yet billed, or are billed but
 are not yet due and payable on or before Closing; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 Any laws, regulations or ordinances (including, but not limited to,
 zoning, building and environmental matters) as to the use, occupancy,
 subdivision or improvement of the Property adopted or imposed by any
 governmental agency having jurisdiction thereover;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 Any state of facts disclosed by the Existing Survey and/or the Survey
 which have been approved or waived by Buyer as provided herein;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 Any utility company rights,
 easements and franchises for electricity, water, steam, gas, telephone or
 other service or the right to use and maintain poles, lines, wires, cables,
 pipes, boxes, and other fixtures and facilities in, over, under and upon the
 Property, but only to the extent servicing the Property;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 Any liens, encumbrances or
 other title exceptions (and the same shall not constitute title objections
 but shall be deemed Permitted Exceptions) (1) over which the Title
 Company is willing to insure in a manner acceptable to Buyer (without
 material additional cost to Buyer), (2) against which the Title Company
 is willing to provide affirmative insurance in a manner acceptable to Buyer
 (without material additional cost to Buyer), or (3) which will be
 extinguished upon the transfer of the Property to Buyer;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (g)

 	
 Rights of tenants under the Existing Leases; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (h)

 	
 Other matters which have been waived or approved by Buyer during the
 title review period, as contemplated by Article 3 of this Agreement;

 

it being
understood, however, that, subject to the provisions of Article 3 of this
Agreement, Buyer shall have until five (5) business days prior to the end of
the Inspection Period within which to determine whether any such item is
unacceptable to Buyer in Buyer’s sole discretion, 

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and only such
matters approved or deemed approved by Buyer pursuant to Article 3 shall be
deemed Permitted Exceptions hereunder. The previous provisions to the contrary
notwithstanding, the Ground Lease shall, in any event, be deemed a Permitted
Exception.

          1.36     Personal
Property means all of Seller’s right, title and interest in and to (a)
sprinkler, plumbing, heating, air-conditioning, electric power or lighting,
incinerating, ventilating and cooling systems, with each of their respective
appurtenant furnaces, boilers, engines, motors, dynamos, radiators, pipes,
wiring and other apparatus, equipment and fixtures, elevators, partitions, fire
prevention and extinguishing systems located in or on the Improvements, (b) the
Materials, (c) other tangible personal property used in connection with the
ownership or operation of the Improvements, provided the same are now owned or
are acquired by Seller prior to the Closing, and (d) all trade names,
franchises, licenses, permits, easements, development rights and approvals,
deposits, credits, petroleum and mineral interests and royalties, air and water
rights, construction and product warranties, the Leases (including all security
deposits and guarantees given with respect thereto), and all other intangibles
owned or used by or for the benefit of Seller in connection with the Property. 

          1.37     Property
means, collectively, the Real Property, the Improvements and the Personal
Property.

          1.38     Purchase
Price means the consideration agreed to be paid by Buyer to Seller for the
purchase of the Seller’s interest in the Property, including but not limited to
the Seller’s ground leasehold interest in the Ground Lease, as set forth in
Section 2.1 (subject to prorations and adjustments as provided herein). 

          1.39     Real
Property means, collectively, (i) with respect to the portion of the
Shopping Center identified in Exhibit 1.39(a) of this Agreement, fee title to
the lands, together with all easements, licenses, privileges, rights of way and
other appurtenances pertaining to or accruing to the benefit of such lands
(collectively, the “Fee Parcel”), and (ii) with respect to the portion of the
Shopping Center identified in Exhibit 1.39(b) of this Agreement, leasehold title
to the lands, together with all easements, licenses, privileges, rights of way
and other appurtenances pertaining to or accruing to the benefit of such lands
(collectively, the “Leasehold Parcel”).

          1.40     Rent
Roll means the rent roll attached hereto as Exhibit 1.40 of this Agreement.

          1.41     Seller
Financial Statements means the unaudited balance sheets and statements of
income, cash flows and changes in financial position in the form prepared by
Seller’s managing agent for the Property, as of and for the two (2) calendar
years next preceding the date of this Agreement and all monthly and quarterly
reports of income, expense and cash flow in the form prepared by Seller’s
managing agent for the Property, which shall be consistent with past practice,
for any such period beginning after the latest of such calendar years, and
ending prior to Closing.

          1.42     Seller’s
Broker means Henry S. Miller Interests, Inc.

          1.43     Seller’s
Notice has the meaning ascribed to such term in Section 2.2.

          1.44     Seller’s
Reports has the meaning ascribed to such term in Section 6(b)(viii).

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          1.45     Shopping
Center means the Shopping Center identified on the initial page hereof.

          1.46     Special
Warranty Deed means a Special Warranty Deed in the form attached hereto as
Exhibit 1.46, conveying the Fee Parcel from Seller to Buyer, subject to the
Permitted Exceptions affecting the Fee Parcel.

          1.47     Survey
has the meaning ascribed to such term in Section 3(b).

          1.48     Tenant
Estoppel Letter means a letter or other certificate from a tenant
certifying as to certain matters regarding such tenant’s Lease, in
substantially the same form as Exhibit 1.48 of this Agreement unless a
different form is permitted by such tenant’s Lease, or in the case of a Major
Tenant or a national or regional “credit” tenant, the form customarily used by
such tenant.

          1.49     Tenant
Inducement Costs has the meaning ascribed to such term in Section 4.

          1.50     Tenant
Notice means a notice to each tenant under a Lease in the form attached
hereto as Exhibit 1.50.

          1.51     Title
Company means Republic Title of Texas, Inc., Dallas Uptown Commercial,
having an address of 2626 Howell St,10th Floor, Dallas, TX 75204, Attn: Janine
Barber, Tel: (214) 855-8863, Fax: (214) 855-8898, Email:
jbarber@republictitle.com

          1.52     Title
Defect means any exception in the Title Insurance Commitment or any matter
disclosed by Existing Survey or the Survey, other than a Permitted Exception.

          1.53     Title
Insurance means an Owner Policy of Title Insurance promulgated by the Texas
State Board of Insurance in the amount of the Purchase Price insuring Buyer’s
good and indefeasible (i) fee simple title in the Fee Parcel, subject only to
the Permitted Exceptions applicable to the Fee Parcel, and (ii) leasehold
interest in the Leasehold Parcel, subject only to the Permitted Exceptions
applicable to the Leasehold Parcel, issued by the Title Company, together with
such available endorsements as are customary in transactions of this type (such
as, where applicable, a survey deletion endorsement), and any available special
endorsements which are necessary because of the nature, configuration or
particular character of the Property.

          1.54     Title
Insurance Commitment means a preliminary title report whereby the Title
Company agrees to issue the Title Insurance to Buyer, together with copies of
all instruments which are exceptions noted therein or conditions to be
satisfied. 

          1.55     Title
Notice has the meaning ascribed to such term in Section 3(c).

          1.56     Update
Certificate means an Update Certificate in the form attached hereto as
Exhibit 1.56, updating the warranties and representations of Seller in Section
6(a) as of the Closing Date.

          1.57     Warranty
Notice has the meaning ascribed to such term in Section 18(iii).

 -6-

2. PURCHASE PRICE AND PAYMENT

          2.1          Purchase
Price; Payment. The total Purchase Price for the Seller’s interest in the
Property (subject to adjustment as provided herein) shall be SIXTY-TWO MILLION
AND NO/100THS DOLLARS ($62,000,000.00). The Purchase Price shall be payable in
cash at Closing by the wire transfer of immediately available United States
federal funds to an account at a bank designated by Escrow Agent. Buyer, at
Buyer’s election to be made prior to the end of the Inspection Period pursuant
to Section 14 and expense (and at no cost to Seller), shall at Closing either
(i) assume the Existing Loan, or (ii) prepay or defease the Existing Loan. In
the event Buyer assumes the Existing Loan or prepays or defeases the Existing
Loan, the amount of cash to be paid at Closing shall be reduced by the
principal balance of the Existing Loan and all then-accrued interest thereon
(excluding any such interest allocable to prepayment or defeasance of such
loan) paid by Buyer on the Closing Date.

          2.2          Earnest
Money Deposit. An earnest money deposit in the amount ONE MILLION TWO
HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($1,250,000.00) shall be deposited
with Escrow Agent by Buyer within three (3) business days after the Effective Date.
Escrow Agent shall provide Seller written notice of the receipt of the Earnest
Money Deposit. This Agreement may be terminated by Seller by notice to Buyer if
the Earnest Money Deposit is not delivered to Escrow Agent by such deadline.
All deposits made as earnest money, together with the earnings thereon, shall
be deemed included within the meaning of the term Earnest Money Deposit for all
purposes. The Earnest Money Deposit shall be held as specifically provided in
this Agreement and, if Closing shall occur, shall be applied to the Purchase
Price at Closing. If Closing shall not occur, the Earnest Money Deposit shall
be disbursed to Seller or returned to Buyer in accordance with the provisions
of this Agreement. If Seller delivers to Escrow Agent a written notice
(“Seller’s Notice”) that (i) Buyer has defaulted under this Agreement;
(ii) as a result of such default Seller has duly terminated this Agreement
(if Seller is entitled to terminate this Agreement as a result of such default)
and is entitled to payment of the Earnest Money Deposit; and (iii) Seller
is simultaneously delivering to Buyer, pursuant to the notice provisions of
this Agreement, a copy of the Seller’s Notice, Escrow Agent agrees if Buyer has
not given notice of a dispute to Escrow Agent within five (5) business days of
the date of Seller’s notice, then Escrow Agent agrees to deliver the Earnest
Money Deposit to Seller. If Escrow Agent receives such a written dispute from
Buyer, then Escrow Agent shall not be permitted to deliver the Earnest Money
Deposit to Seller. If Buyer delivers written notice (“Buyer’s Notice”)
that (A) Buyer is entitled to the return of the Earnest Money Deposit as a
result of Buyer’s proper exercise of a termination right expressly afforded
Buyer under this Agreement; and (B) Buyer is simultaneously delivering to
Seller, pursuant to the notice provisions of this Agreement, a copy of the
Buyer’s Notice, then Escrow Agent agrees to deliver notice thereof to Seller
and if the Seller has not given notice of a dispute to Escrow Agent within five
(5) business days of Seller’s receipt of such Escrow Agent’s notice, then
Escrow Agent agrees to deliver the Earnest Money Deposit to Buyer. If Escrow
Agent receives such a written dispute from Seller, then Escrow Agent shall not
be permitted to deliver the Earnest Money Deposit to Buyer. Notwithstanding the
foregoing, if Buyer terminates, or is deemed to have terminated this Agreement
prior to the end of the Inspection Period, Seller shall have no right to the
return of the Earnest Money Deposit and Escrow Agent shall promptly deliver the
Earnest Money Deposit to Buyer. 

          2.3          Independent
Consideration. Seller and Buyer acknowledge and agree that One Hundred and
No/100 Dollars ($100.00) of the Earnest Money Deposit shall be paid to Seller
if this Agreement is terminated for any reason (the “Independent Contract
Consideration”). 

-7-

Moreover, Seller and Buyer acknowledge and agree that the Independent
Contract Consideration has been bargained for and agreed to as additional
consideration for Seller’s execution and delivery of this Agreement. At
Closing, the Independent Contract Consideration shall be applied to the
Purchase Price. In the event this Agreement is terminated for any reason,
Seller shall be entitled to the Independent Contract Consideration.

          2.4          Closing;
Designation of Reporting Person.

                         (a)          Closing
shall be held and completed on Monday, December 3, 2012 (the “Closing Date”),
subject to extension as hereinafter provided, or such earlier date as may
hereafter be agreed to by Buyer and Seller, commencing at 10:00 a.m. Central
Time through Escrow Agent or at such other time or in such other manner as may
hereafter be agreed to by Buyer and Seller. Time is of the essence. Buyer
acknowledges and agrees that consummation of the Closing in calendar year 2012
is a material inducement to Seller to sell the Property to Buyer and that under
no state of facts whatsoever shall Seller be obligated to extend the Closing
Date except as expressly provided below in this Section 2.4(a). Closing shall
be consummated and the closing payment set forth in Section 2.1 above wire
transferred to an account designated by Escrow Agent, and by Escrow Agent to
Seller, by 1:00 P.M. Central Time on the Closing Date, failing which the
closing adjustments shall be recalculated as if the Closing Date were the next
business day. 

          The Closing
Date may be extended by Buyer or Seller for up to five (5) days by written
notice to the other party and Escrow Agent at least one (1) business day prior
to the then scheduled Closing Date in order to obtain the Required Tenant
Estoppel Percentage of Tenant Estoppel Letters. After the Required Tenant
Estoppel Percentage of Tenant Estoppel Letters have been obtained, the Closing
shall be held and completed on the day that is three (3) business days
following the delivery of the final Required Tenant Estoppel Letter to Buyer or
such earlier date as may hereafter be agreed to by Buyer and Seller, commencing
at 10:00 a.m. Central Time through Escrow Agent or at such other time or in such
other manner as may hereafter be agreed to by Buyer and Seller. In
the event of Seller’s failure to satisfy the Required Tenant Estoppel
Percentage of Tenant Estoppel Letters by the Closing Date, as it may have been
extended by Buyer or Seller as provided above, Buyer’s sole remedy shall be to
either (x) waive the estoppel requirement and proceed to Closing without any
abatement in the Purchase Price or (y) terminate this Agreement with notice to
Seller and Escrow Agent and receive a prompt return of the Earnest Money
Deposit, and neither party shall have any further liability or obligation
hereunder (except for the obligations of the parties set forth in this
Agreement which expressly survive the termination of this Agreement). If under
such circumstances Buyer fails to deliver notice to extend the Closing Date,
Buyer shall be deemed to have elected to waive the estoppel requirement and
proceed to Closing without abatement of the Purchase Price.

          In addition
to the foregoing, the Closing Date, as it may have been extended in accordance
with the provisions of the preceding paragraph, may also be extended by Buyer
for one additional period of up to twenty (20) days by written notice to Seller
and Escrow Agent at least five (5) days prior to the then scheduled Closing
Date to permit Buyer to finalize all loan assumption, prepayment and/or
defeasance matters related to the Existing Loan. After the loan assumption, prepayment
and/or defeasance matters have been finalized, the Closing shall be held and
completed on the day that is three (3) business days following the finalization
of all loan assumption, prepayment and/or defeasance matters related to the
Existing Loan, or such earlier date as may hereafter be agreed to by Buyer and
Seller, commencing at 10:00 a.m. 

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Central Time through Escrow Agent or at such
other time or in such other manner as may hereafter be agreed to by Buyer and
Seller. In the event of Buyer’s failure to finalize the loan assumption,
prepayment and/or defeasance matters by the Closing Date, as it may have been
extended by Buyer or Seller as provided above, Buyer shall be obligated to
prepay or defease the Existing Loan, as required by Section 14(c). However,
notwithstanding anything to the contrary set forth in the foregoing provisions
of this paragraph or elsewhere in this Agreement, in no event whatsoever shall
the Closing Date be later than 5:00 p.m., Central Time, on December 27, 2012.

                         (b)          In
order to assure compliance with the requirements of Section 6045 of the
Internal Revenue Code of 1986, as amended (the “Code”), and any related
reporting requirements of the Code, the parties agree as follows:

                                        (i)          Escrow
Agent is designated as the person to be responsible for all information
reporting under Section 6045(e) of the Code.

                                        (ii)         Seller
and Buyer shall:

	
 

	
 

	
 

	
 

	
(A)

	
provide to Escrow Agent all information and certifications regarding
such party, as reasonably requested by Escrow Agent or otherwise required to
be provided by a party to the transaction described herein under
Section 6045 of the Code; and

	
 

	
 

	
 

	
 

	
(B)

	
provide to Escrow Agent such party’s taxpayer identification number
and a statement (on Internal Revenue Service Form W-9 or an acceptable
substitute form, or on any other form the applicable current or future Code
sections and regulations might require and/or any form requested by Escrow
Agent), signed under penalties of perjury, stating that the taxpayer
identification number supplied by such party to Escrow Agent is correct.

          3.            Condition of Title.

                         (a)          Title.
Title to the Property shall be good and indefeasible and insurable as such by
the Title Company pursuant to the standard stipulations and conditions of the
Title Insurance, and otherwise free and clear of all liens and encumbrances
except for the Permitted Exceptions. 

                         (b)          Survey.
Seller has delivered a copy of the Existing Survey to Buyer. During the
Inspection Period, Buyer, at Buyer’s option and expense may, but shall not be
obligated to, cause the Existing Survey to be updated or a new survey (in
either event, the “Survey”) to be prepared by a surveyor and in a form
acceptable to Buyer. If Buyer elects not to obtain the Survey, all matters
which would be reflected on a current survey of the Property shall be deemed to
be Permitted Exceptions. The Purchase Price has been fixed without regard to
the area of the Property and is not to be abated or changed should the Survey
prove an area different from the area of the Property described herein. The
Special Warranty Deed shall contain the legal description of the Fee Parcel
attached hereto. The Assignment and Assumption of Ground Lease shall contain
the legal description of the Leasehold Parcel 

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attached hereto. If the Survey contains a
different legal description of the Fee Parcel and/or the Leasehold Parcel,
Seller will quitclaim any additional property to Buyer. Nothing contained in
this Agreement, including the legal descriptions attached hereto, shall
constitute any warranty, representation or agreement by Seller as to the
location of separate lots in, or acreage of, the Property.

                    (c)          Title Defects.
Buyer shall cause the Title Company to deliver the Title Commitment, together
with copies of the exceptions to title referred therein, to Seller and Buyer.
At least five (5) business days prior to the expiration of the Inspection
Period, Buyer shall submit to Seller a written notice from Buyer (the
“Title Notice”) specifying (A) any alleged defects in or objections to the
title to the Property, and/or (B) its disapproval of any of the matters shown
on the Existing Survey or the Survey. Buyer shall be deemed to have waived its
right to make objection at the time of the Title Notice to matters shown in the
Title Commitment or on the Existing Survey or the Survey unless Buyer shall
have timely given to Seller the Title Notice which specified Buyer’s objection.
Seller shall cause any mortgage or other lien voluntarily created by Seller
(other than the Existing Loan) to be paid and discharged at or prior to
Closing. Seller shall have no obligation to cure any other alleged defect or
objection raised in the Title Notice, except as specifically provided in this
Section. Seller shall have the right, at its sole option, upon written notice
to Buyer given within two (2) business days following receipt of the Title
Notice, to notify Buyer of its intent to (A) remove any encumbrance or other
title objection or (B) elect not to do (A), in which event Buyer will have the
right to make the election set forth below. Failure by Seller to deliver a
notice of elections pursuant to this subparagraph shall be deemed an election
by Seller under clause (B). If Seller elects, or is deemed to have elected, not
to do (A), Buyer may elect, by written notice given to Seller prior to the
expiration of the Inspection Period, as its sole right and remedy, either
(i) to take such title to the Property as Seller can convey, with no
abatement of the Purchase Price, or (ii) to terminate this Agreement and
to receive on written demand by Buyer to Seller and Escrow Agent the return of
the Earnest Money Deposit. Upon the delivery of Buyer’s notice to terminate
under clause (ii) above to Escrow Agent and Seller, this Agreement shall be and
become null and void and neither party shall have any further rights or
obligations hereunder (except for the indemnity obligations of Buyer to Seller
as set forth in this Agreement which shall survive the cancellation of this
Agreement). If Buyer makes no election prior to the expiration of the
Inspection Period, Buyer is deemed to have elected to take such title to the
Property as Seller can convey, with no abatement of the Purchase Price. 

                    (d)          Failure of Title.
Further, if Seller, after notifying Buyer of its intention to do so, fails to
remove any defects or objections to the title to the Property that were
identified by Buyer in a Title Notice or if Seller fails to remove any other
material defects to the title to the Property disclosed after the Inspection
Period which were not previously identified in the Title Commitment, the
Existing Survey or the Survey, Buyer may elect, as its sole right and remedy,
either (i) to take such title to the Property as Seller can convey, with
no abatement of the Purchase Price, or (ii) to terminate this Agreement
and to receive on written demand by Buyer to Seller and Escrow Agent the return
of the Earnest Money Deposit; provided, however, if such failure is a result of
any intentional act or omission of Seller, such failure shall constitute a
Seller default. Upon the delivery of Buyer’s notice to terminate under clause
(ii) above to Escrow Agent and Seller, this Agreement shall be and become null
and void and neither party shall have any further rights or obligations
hereunder (except for the indemnity obligations set forth in this Agreement
which shall survive the cancellation of this Agreement). If under such
circumstances Buyer fails to deliver notice, Buyer shall be deemed to have
elected to take such title to the Property as Seller can convey, with no abatement
of the Purchase Price.

-10-

                    (e)          Reliance
on Title Insurance. Notwithstanding anything contained in this Agreement to
the contrary, with respect to all matters affecting title to the Property and
any liens or other encumbrances affecting the Property, Buyer acknowledges and
agrees it will, at Closing, rely primarily upon the Title Insurance. If Buyer
has a claim which may be properly asserted under its Title Insurance and the
subject matter of that claim also constitutes a breach of any warranty made by
Seller in the Special Warranty Deed or Assignment and Assumption of Ground
Lease, Buyer agrees that, to the extent its Title Insurance permits, (i) it
will look first to its Title Insurance for recovery on such claim, and (ii)
although Buyer may assert a claim against Seller for a breach of a
representation, warranty or covenant by delivering a Warranty Notice in
accordance with the provisions of Section 18 (b)(iii) with respect to such
claim, Buyer will not pursue such claim unless and until Buyer has pursued its
remedies against the Title Company to final judgment and has not been made
whole, and Seller will remain liable for such breach, subject to the provisions
of Section 19 (b), to the extent recovery is not obtained by Buyer under its
Title Insurance. The provisions of this Section shall survive Closing. 

          4.       Possession, Assignment of Agreements and Leases.

                    (a)          Existing Leases;
New Leases. Seller shall, prior to Closing, cause the Property to be
operated in substantially the same manner as it is operated as of the date
hereof. If Seller wishes to execute any renewal or modification of an existing
lease or any new lease for occupancy of space in the Property (each, a “New Lease”)
between the date hereof and the end of the Inspection Period, Seller shall
immediately advise Buyer, shall furnish Buyer copies of all letters of intent
and lease drafts, if any, with any such prospective tenant, shall keep Buyer
closely informed of all negotiations with any such prospective tenant and shall
give due consideration to any comments or suggestions made by Buyer. If Buyer
and Seller disagree on how to proceed with any such prospective tenant, and
Seller, notwithstanding such disagreement, elects to execute a New Lease with
such prospective tenant prior to the expiration of the Inspection Period,
Seller shall give written notice to Buyer of such election prior to execution
by Seller and Buyer shall have two (2) business days from the date of such
notice to elect to reconsider and agree to the terms of the New Lease or
terminate this Agreement by written notice to Seller in which event the Earnest
Money Deposit shall be returned to Buyer, provided nothing herein shall limit
Buyer’s termination rights pursuant to Section 14(e) of this Agreement. If
Buyer fails to respond to such notice, Buyer shall be deemed to have elected to
reconsider and to agree to the terms of the New Lease. 

                    If
Seller wishes to execute a New Lease between the end of the Inspection Period
and the Closing Date, such New Lease will be submitted to Buyer for approval,
which approval shall not be unreasonably withheld, prior to execution by
Seller. Buyer agrees to notify Seller in writing within two (2) business days
after delivery to Buyer of Buyer’s approval or disapproval thereof, including
all Tenant Inducement Costs and leasing commissions to be incurred in
connection therewith. In the event that such New Lease is delivered by Seller
to Buyer following the end of the Inspection Period and before the Closing
Date, and Buyer does not approve such New Lease, Seller shall not enter into
such New Lease and this Agreement shall remain in full force and effect. In the
event that Buyer at any time fails to timely notify Seller in writing of its
approval or disapproval, such failure shall be deemed approval by Buyer. 

                    At
Closing, Buyer shall reimburse Seller for any Tenant Inducement Costs, leasing
commissions or other expenses paid by Seller in connection with any New Lease
approved, or deemed approved, by Buyer and any other amounts designated as
Buyer’s responsibility on Exhibit 4(a). Seller shall be responsible for those
Tenant Inducement Costs, 

-11-

leasing commissions or other expenses incurred
by Seller in connection with the tenant commonly known as Spec’s Wines,
Spirits, and Finer Foods, and which are shown in greater detail on Exhibit
4(a); provided, however, that to the extent that such amounts have not been
paid by Seller to the tenant prior to Closing, those amounts shall be credited
to Buyer at Closing whereupon they shall be the responsibility of the Buyer. For
purposes hereof, the term “Tenant Inducement Costs” means any out-of-pocket
payments required under a Lease to be paid by the landlord thereunder to or for
the benefit of the tenant thereunder which is in the nature of a tenant
inducement, including specifically, without limitation, tenant improvement
costs (including landlord’s work), space planning costs, construction management
fees, lease buyout costs, and moving, design, refurbishment, club membership
allowances and reasonable legal fees and expenses, but specifically excluding
free rent. All such New Leases and the presently existing Leases are
collectively herein called the “Existing Leases”. The termination of any of the
Existing Leases prior to Closing by reason of the expiration of its term or by
reason of the tenant’s default shall not excuse Buyer from its obligation to
complete Closing and to pay the full Purchase Price. Seller shall give Buyer
prompt notice of the termination of any of the Existing Leases prior to
Closing. Notwithstanding the foregoing, Seller shall not terminate any Existing
Leases after the end of the Inspection Period without Buyer’s prior written
consent.

                    (b)          Existing Agreements.
Seller shall also assign to Buyer at the completion of Closing, if assignable,
all Assigned Existing Agreements. The existing management agreement and
all leasing agreements shall be terminated at Closing and shall not be assigned
to Buyer. The termination of any of the Assigned Existing Agreements prior to
Closing by reason of the expiration of its term or by reason of a default
thereunder shall not excuse Buyer from its obligation to complete Closing and
to pay the full Purchase Price. 

                    (c)          Tenant
Estoppel Letters. Seller shall use good faith efforts (but without
obligation to incur any unreasonable cost or expense) to obtain and deliver to
Buyer prior to Closing, a Tenant Estoppel Letter dated no more than forty-five
(45) days prior to Closing and made a part hereof signed by each tenant
occupying space in the Property. Seller shall obtain and deliver to Buyer prior
to Closing, as a condition precedent to Buyer’s obligation to proceed to
Closing, a Tenant Estoppel Letter (i) from each Major Tenant and (ii) from
other tenants Existing Leases which cover seventy-five percent (75%) (the
“Required Tenant Estoppel Percentage”) of the remaining leased net rentable area
of the Property. In determining whether the foregoing requirement has been
satisfied, Buyer agrees not to object to (i) any non-material (as determined in
Buyer’s reasonable judgment) qualifications or modifications which a tenant may
make to the form of Tenant Estoppel Letter, or (ii) any modification to a
Tenant Estoppel Letter necessary to conform it to the requirements of such
tenant’s Lease, provided such modification is consistent with such tenant’s
lease. Seller agrees to deliver copies of Tenant Estoppel Letters to Buyer
prior to submission to tenants for Buyer’s review and comment. Buyer shall have
five (5) business days following delivery of copies of the Tenant Estoppel
Letters to provide suggested modifications for Seller’s consideration. Seller further
agrees to deliver copies of executed Tenant Estoppel Letters within three (3)
business days after receipt from tenants and will deliver originals thereof to
Buyer at Closing. If Seller does not obtain a Tenant Estoppel Letter from a
sufficient number of tenants to meet the Required Tenant Estoppel Percentage,
then, unless Buyer waives the condition precedent, at Seller’s election, Seller
may either (x) extend Closing pursuant to Section 2.4(a) of this Agreement in
order to give Seller additional time to continue its good faith efforts to
obtain a Tenant Estoppel Letter from a sufficient number of tenants to meet the
Required Tenant Estoppel Percentage and/or (y) execute an estoppel certificate
with respect to leases comprising up to ten percent (10%) of the leased net
rentable area of the Property in order to satisfy the estoppel requirements
hereof, 

-12-

provided in no event shall the Seller have
the right to deliver any landlord estoppel letter for any Major Tenant. If
Seller elects to execute a Tenant Estoppel Letter for any portion of the leased
net rentable area of the Property and thereafter receives and delivers to Buyer
a Tenant Estoppel Letter for such respective tenant, Seller shall be released
from any liability under the Tenant Estoppel Letter executed by Seller. This
provision shall survive Closing.

          5.          Apportionments.

                       (a)          (i)          Taxes, Assessments and Other.
Real estate taxes and annual municipal or special district assessments (on the
basis of the actual fiscal years for which such taxes are assessed), sums paid
to or paid or payable by Seller under the Assigned Existing Agreements, rentals
paid by Seller under the Ground Lease, as certified by the Ground Lease
Estoppel Letter, and rentals and other sums paid to and received by Seller
under the Existing Leases shall be apportioned at Closing pro rata between
Buyer and Seller on a per diem basis as of the Closing Date with Buyer entitled
to income, and charged with expenses, for the Closing Date. Any and all real
estate taxes and annual municipal or special district assessments that are due
and payable at Closing shall be paid in full by Seller at or prior to Closing. 

                                     (ii)          Percentage
Rents and Tenant Reimbursements. If the apportionment of any percentage
rents for the month in which the Closing occurs cannot be precisely determined
at the time of Closing, Seller and Buyer shall reasonably estimate the
apportionment of such sums, and such estimated sums shall be apportioned at
Closing pro-rata between Buyer and Seller on a per diem basis as of the date of
Closing, and such apportionment shall be final and not subject to further
adjustment following Closing. 

          If
as of the Closing Date Seller has actually incurred and paid more than it has
billed to tenants in estimated calendar year 2012 (but not prior calendar
years) operating expenses, real estate taxes and assessments (after giving
effect to amounts credited by Seller to Buyer under Section 5(a)(i) above) or
other payments, Seller shall receive a credit for the amount of such shortage
at Closing. If as of the Closing Date Seller has actually incurred and paid
less than it has received from tenants in estimated calendar year 2012 (but not
prior calendar years) operating expenses, real estate taxes and assessments
(after giving effect to amounts credited by Seller to Buyer under Section
5(a)(i) above) or other payments, Buyer shall receive a credit for the amount
of such excess at Closing. The foregoing prorations shall be final and not
subject to further adjustment following Closing.

                                     (iii)          Arrearages.
Except as set forth in Exhibit 5(a) and except for tenant reimbursements for
calendar year 2012 (for which provision is made in Section 5(a)(ii) above), any
rents, percentage rents or tenant reimbursements payable by tenants after the
Closing Date but applicable to periods on or prior to the Closing Date shall be
remitted to Seller by Buyer promptly after receipt. The amounts set forth in
Exhibit 5(a) to the extent not paid on or before the Closing Date shall be
credited by Buyer to Seller on the Closing Date and Buyer shall be entitled to
retain such amounts when paid. Buyer shall have no obligation to collect
delinquencies other than to submit invoices of past due amounts (which amounts
will be provided by Seller to Buyer) to tenants at the time of current billing
for up to three (3) months following the Closing Date, but should Buyer collect
any delinquent rents or other sums which cover periods prior to the Closing
Date and for which Seller received no proration or credit, Buyer shall remit
same to Seller promptly after receipt. Seller may pursue collection efforts
(other than termination or eviction) against tenants for such amounts following
the Closing Date. 

-13-

Seller will promptly remit to Buyer after
receipt any rents, percentage rents or tenant reimbursements received by Seller
after Closing which are attributable to periods occurring on or after the
Closing Date. Undesignated receipts after Closing received by either Buyer or
Seller from tenants shall be applied first to then current rents and
reimbursements for such tenant(s), then to delinquent rents and reimbursements
attributable to post-Closing Date periods, and then to delinquent rents and
reimbursements attributable to pre-Closing Date periods.

                                  (iv)          No Tax Bill.
If, on the Closing Date, final bills for the real estate taxes imposed upon the
Property for the tax fiscal years in which Closing occurs have been issued but
shall not have been paid, such taxes shall be prorated at the time of Closing.
If such bills shall not have been issued on the Closing Date or, if the same
have been issued but based upon an estimate rather than a definitive tax
amount, then the amount of the taxes shall be prorated based on the tax rate
and/or assessed valuation last fixed. To the extent that the actual taxes and
assessments payable during the year of Closing differ from the amount
apportioned at Closing, the parties shall make all necessary by appropriate
payments between themselves following Closing. Real estate taxes which are
payable by any tenant directly to the taxing authority shall not be apportioned
hereunder, and Buyer shall accept title subject to any of such charges unpaid
and shall look solely to the tenant responsible therefor for the payment of the
same.

                    (b)          Tenant Security Deposits.
At Closing, Seller shall pay to Buyer or, at Buyer’s request, credit against
the Purchase Price the amount of all security deposits then held by or for
Seller under the Existing Leases. If any security deposits shall be held by
Seller in the form of letters of credit or surety bonds, Seller shall assign
its rights thereunder to Buyer and shall cooperate reasonably with Buyer in
respect of the reissuance of any such letters of credit or bonds in the name of
Buyer. After Closing, until such letters of credit or bonds have been reissued in
the name of Buyer, Seller shall hold each such letter of credit for the benefit
of Buyer and shall draw on such letter of credit at Buyer’s direction, until a
substitute letter of credit is drawn in favor of Buyer and notification of
delivery of such substitute letter of credit is given to Seller by Buyer,
whereupon Seller shall promptly surrender such letter of credit to the
applicable tenant, provided, however, that Buyer shall indemnify, defend and
hold harmless Seller from any charge or claim from a third party that such
post-closing draw request was improper or in violation of such letter of credit
or surety bond. Seller shall reciprocally indemnify, defend and hold harmless
Buyer from any charge or claim from a third party that any pre-closing draw request
was improper or in violation of such letter of credit or surety bond. During
the pendency of this Agreement, Seller shall only apply security deposits in
the ordinary course of business following default. 

                    (c)          Utility Readings.
Seller shall use reasonable efforts to obtain readings of the gas (if any),
water, electric and other utility meters, if any, on the Property as of the
Closing Date. At or prior to Closing, Seller shall pay all charges based upon
such meter readings. However, if after reasonable efforts Seller is unable to
obtain readings of any meters prior to Closing, Closing shall be completed
without such readings and utility charges will be prorated based on Seller’s
reasonable estimate thereof. To the extent that the utility charges differ from
the amount apportioned at Closing, the parties shall make all necessary by
appropriate payments between themselves following Closing.

                    (d)          Existing
Loan. If the Existing Loan is prepaid or defeased by Buyer on the Closing
Date, Seller shall be entitled to the refund of any deposits or reserves held
by 

-14-

Lender for taxes, insurance or other items.
If the Existing Loan is assumed by Buyer on the Closing Date, Buyer shall
credit Seller at Closing an amount equal to any deposits or reserves held by
Lender for taxes, insurance or other items, to the extent such deposits and
reserves are transferred to Buyer. Interest on the Existing Loan shall be pro
rated between Seller and Buyer as of the Closing Date with Seller responsible
for interest for the period from the payment date to the Closing Date and Buyer
responsible for interest on and after the Closing Date.

                    (e)           Closing
Costs.

                                   (i)          Seller
shall pay:

                                                 (A)          Any
and all state, county and/or municipal transfer taxes imposed upon the
transactions contemplated hereby;

                                                 (B)          The
costs, if any, of satisfying any monetary liens (other than the Existing Loan)
required to be satisfied by Seller, curing title defects for any title defects
Seller elects to cure and recording any curative title documents for any title
defects Seller elects to cure;

                                                 (C)          The
costs of recording the Special Warranty Deed;

                                                 (D)          The
costs of recording the Assignment and Assumption of Ground Lease;

                                                 (E)          100%
of the costs of Title Insurance (excluding the cost of title endorsements
requested by Buyer, which shall be borne by Buyer as provided below);

                                                 (F)          100%
of the brokerage commission payable to Seller’s Broker incurred in connection
with the transactions contemplated herein, if and when this transaction closes,
in an amount equal to one percent (1%) of the Purchase Price

                                                 (G)          One-half
of Escrow Agent’s fees; and

                                                 (H)          Seller’s
attorneys’ fees.

                                   (ii)         Buyer
shall pay:

                                                 (A)          The
costs of Buyer’s due diligence investigations;

                                                 (B)          If
Buyer elects to assume the Existing Loan, all assumption fees charged by the
holder of the Existing Loan and all costs and expenses, including attorneys’
fees and out of pocket expenses, charged by such holder or otherwise incurred
with respect to the Buyer’s assumption of the Existing Loan, or, If Buyer
elects not to assume the Existing Loan, all prepayment or defeasance fees,
costs and expenses, including attorneys’ fees and out of pocket expenses,
charged by the holder of the Existing Loan or otherwise incurred with respect
to the Seller’s prepayment of the Existing Loan on the Closing Date; 

-15-

                                                   (C)          Any
and all costs and expenses, including attorneys’ fees and out of pocket
expenses, if any, charged by the Ground Lessor in connection with the assignment
of the Seller’s ground leasehold interest in the Ground Lease to Buyer;

                                                   (D)          The
costs of the Phase I environmental site assessment to be obtained by Buyer;

                                                   (E)          The
costs of the Survey;

                                                   (F)          0%
of the cost of Title Insurance, except as provided in clause (H) below;

                                                   (G)          100%
of the brokerage commission payable to Buyer’s Broker (including any
co-brokerage fees payable by Buyer’s Broker to other participating brokers)
incurred in connection with the transactions contemplated herein, if and when
this transaction closes;

                                                   (H)          The
costs of any title endorsements requested by Buyer; 

                                                   (I)           One-half
of Escrow Agent’s fees; and

                                                   (J)          Buyer’s
attorneys’ fees. 

                                      (iii)       All
other costs and expenses incident to this transaction and the closing thereof
shall be paid by the party incurring same.

                       (f)           Final
Settlement. All prorations and adjustments, other than real estate taxes
and assessments and utilities, shall be final at Closing and not subject to
further adjustment. Utility charges shall be finally adjusted directly between
Seller and Buyer within sixty (60) days after the Closing Date. Real estate taxes
and assessments shall be finally adjusted directly between Seller and Buyer
within ten (10) business days after tax statements for calendar year 2012
become available (historically on or about October 1 of each calendar year).
The agreements with respect to prorations in this Section 5 shall survive
Closing.

          6.          Seller’s Representations.

                       (a)          Seller
hereby represents and warrants to Buyer as follows:

                                      (i)          Organization.
Seller is a general partnership, duly organized and validly existing under the
laws of the State of Texas, and has all requisite partnership power and
authority to carry on its business as now conducted.

                                      (ii)          Authorization.
Seller has the requisite power and authority to enter into and perform this
Agreement, and Seller has duly authorized (a) the execution of this Agreement
and all documents to be delivered by Seller at Closing and (b) the performance of
all of Seller’s obligations hereunder.

                                      (iii)          No Condemnation.
There are no existing or, to Seller’s actual knowledge (without investigation
on Seller’s part), pending or overtly threatened condemnation proceedings or
deeds in lieu of condemnation affecting the Property. 

-16-

                                     (iv)          Litigation.
There is no existing or, to Seller’s actual knowledge (without investigation on
Seller’s part), pending or overtly threatened litigation involving Seller or
the Property, except as set forth on Exhibit 6(a)(iv) attached hereto.

                                     (v)           Existing
Leases. Seller has provided Buyer access on-site to or copies of all files
relating to the Existing Leases and, to Seller’s actual knowledge, has
delivered or made available to Buyer true, complete and correct copies of each
Existing Lease (including all amendments thereto). To Seller’s actual
knowledge, there are no Leases affecting the Property other than those listed
on the Rent Roll. To Seller’s actual knowledge, there are no unpaid Tenant
Inducement Costs under any Existing Leases other than as set forth in Exhibit
4(a) attached hereto. 

                                     (vi)          Assigned
Existing Agreements. Seller has provided Buyer access on-site to or copies
of all files relating to the Assigned Existing Agreements and, to Seller’s
actual knowledge, has delivered or made available to Buyer true, complete and
correct copies of each Assigned Existing Agreement (including all amendments
thereto). To Seller’s actual knowledge, there are no service contracts, service
agreements and other similar instruments affecting the Property other than the
Assigned Existing Agreements.

                                     (vii)         FIRPTA.
Seller is not a “foreign person” (as defined in the Code and Income Tax
Regulations). The provisions of the Foreign Investment in Real Property Tax Act
of 1980, as amended, are not applicable to this transaction.

                                     (viii)        OFAC.
Neither Seller nor, to Seller’s knowledge, any of its affiliates, nor any of
their respective partners, members, shareholders or other equity owners, and
none of their respective employees, officers, directors, representatives or
agents, is a person or entity with whom U.S. persons or entities are restricted
from doing business under regulations of the Office of Foreign Asset Control
(“OFAC”) (including those named on OFAC’s Specially Designated and Blocked
Persons List and/or on any other list of terrorists or terrorist organizations
maintained pursuant to any of the rules and regulations of OFAC or pursuant to
any other applicable executive orders (such lists are collectively referred to
as the “Lists”)) or under any statute, executive order (including Executive
Order No. 133224, 66 Fed. Reg. 49079 (Sept. 25, 2001)), or other governmental action.

                                     (ix)          No
Options to Purchase. Seller has not entered into any other contracts for
the sale of the Property or any portion thereof. 

                                     (x)           Property
Taxes. Neither Seller nor any of Seller’s predecessors within the past five
(5) years has claimed, with respect to any of the Property, the benefit of any
law permitting a special use valuation for the purposes of obtaining a lower ad
valorem tax rate. A change in the ownership or use of the Property from its
present ownership and use will not trigger liability for “rollback” taxes or
other assessments for prior years.

                                     (xi)          Governmental
Matters. Seller, to Seller’s actual knowledge, has not received written
notice from any governmental authorities or agencies of uncured violations at
the Property of building, fire, air pollution or zoning codes, rules,
ordinances or regulations, environmental and hazardous substances laws, or
other rules, ordinances or regulations relating to the Property.

-17-

                                     (xii)          Environmental
Matters. Seller, to Seller’s actual knowledge, has not received written
notice of any violation of any Environmental Law from any governmental agency.
Seller, to Seller’s actual knowledge, has not received written notice from any
neighboring landowner of any claim of any violation of any Environmental Law.

                       (b)          Deliveries.
On or before October 15, 2012, Seller also agrees that it will furnish or make
available on-site to Buyer true copies of the following: 

                                     (i)             Copies
of all plans and specifications relating to the Property to the extent
currently in Seller’s or Seller’s property manager’s possession or control;

                                     (ii)            Copies
of 2010, 2011, and 2012 year-to-date books and records (excluding, however,
internal memoranda, financial projections, appraisals and projected budgets)
customarily prepared by or at Seller’s request with respect to the Property,
including, without limitation, to the extent so prepared, all ledgers, records
of income, expense, capital expenditures, deposit receipts, utility bills and
property tax bills for such calendar years or portions thereof, to the extent
currently in Seller’s, or its property manager’s, possession or control;

                                     (iii)           Copies
of all Assigned Existing Agreements and other management, service, maintenance
and other contracts, if any, currently in force with respect to the Property to
the extent currently in Seller’s or its property manager’s, possession or
control;

                                     (iv)           Copies
of all Existing Leases currently in force with respect to the Property,
delinquency reports, rent rolls, and tenant lease files including, without
limitation, all notices to or from tenants, copies of all letters of credit,
insurance certificates, and financial reports, if any, to the extent currently
in Seller’s, or its property manager’s, possession or control;

                                     (v)            Copies
of all operating permits, licenses and certificates of occupancy issued with
respect to the Property to the extent currently in Seller’s or its property
manager’s, possession or control;

                                     (vi)           Copies
of insurance certificates or other customary evidence of all existing insurance
coverage with respect to the Property; 

                                     (vii)          Copies
of all notices to or from any governmental entity or insurance company to the
extent currently in Seller’s, or its property manager’s, possession or control;

                                     (viii)         Copies
of environmental reports (“Seller’s Reports”) to the extent currently in
Seller’s, or its property manager’s, possession or control; provided that Buyer
first executes and delivers a non-reliance letter to Seller in form acceptable
to Seller;

                                     (ix)           Copies
of the Ground Lease;

                                     (x)            Copies
of the Existing Loan Documents; and

-18-

                                     (xi)          Copies
of all Materials and any other documentation reasonably requested by Buyer to
the extent currently in Seller’s, or its property manager’s, possession or
control and not expressly excluded above.

                       (c)          NO WARRANTY.
NOTWITHSTANDING THE PRIOR PROVISIONS OF THIS SECTION TO THE CONTRARY, BUYER
ACKNOWLEDGES AND UNDERSTANDS THAT SOME OF THE MATERIALS DELIVERED BY SELLER
HAVE BEEN PREPARED BY PARTIES OTHER THAN SELLER. EXCEPT AS EXPRESSLY PROVIDED
IN SECTION 6(A) ABOVE, SELLER MAKES NO REPRESENTATION OR WARRANTY WHATSOEVER,
EXPRESS OR IMPLIED, AS TO THE COMPLETENESS, CONTENT OR ACCURACY OF THE
DELIVERED MATERIALS WHETHER OR NOT PREPARED BY SELLER.

                       (d)          All
references in this Section 6 or elsewhere in this Agreement to “Seller’s actual
knowledge” shall refer solely to the actual knowledge of Jacqueline Miller
Stewart, and shall not be construed to refer to the knowledge of any other
partner, employee, officer, director, shareholder or agent of Seller or any
affiliate of Seller, and shall not include imputed or constructive knowledge.
Notwithstanding anything contained herein to the contrary, Jacqueline Miller
Stewart, shall have no personal liability hereunder.

          7.          Buyer Representations.
Buyer hereby represents to Seller as follows:

                       (a)          Organization.
Buyer is a corporation duly organized and validly existing under the laws of
the State of Texas and has all requisite power and authority to carry on its
business as now conducted.

                       (b)          Authorization.
Buyer has the requisite power and authority to enter into and perform this
Agreement, and Buyer has duly authorized (a) the execution of this Agreement
and all documents to be delivered by Buyer at Closing and (b) the performance
of all of Buyer’s obligations hereunder. 

                       (c)          OFAC.
Neither Buyer nor, to Buyer’s knowledge, any of its affiliates, nor, to Buyer’s
knowledge, any of their respective partners, members, shareholders or other
equity owners, and, to Buyer’s knowledge, none of their respective employees,
officers, directors, representatives or agents, is a person or entity with whom
U.S. persons or entities are restricted from doing business under regulations
of OFAC (including those named on any of the Lists or under any statute,
executive order (including Executive Order No. 133224, 66 Fed. Reg. 49079 (Sept.
25, 2001)), or other governmental
action. Notwithstanding anything contained hereinto the contrary, for the
purposes of this provision, the phrase “any of its affiliates, nor any of their
respective partners, members, shareholders or other equity owners” shall not
include (x) any holder of a direct or indirect interest in a publicly traded
company whose shares are listed and traded on a United States national stock
exchange, or (y) any limited partner, unit holder or shareholder owning an
interest of five percent (5%) or less in Buyer or in the holder of any direct
or indirect interest in Buyer.

          8.          Conditions
Precedent to Closing.

                       (a)          Buyer
shall not be obligated to close under this Agreement unless each of the
following conditions (to the extent material) shall exist on the Closing Date:

-19-

                                     (i)            Title
Insurance. The Title Company shall commit unconditionally in writing to
Buyer to issue the Owner Policy in accordance with the provisions of Article 3
of this Agreement.

                                     (ii)           Accuracy of Representations.
The representations and warranties made by Seller in this Agreement shall be
true and correct as of the Closing Date in all material respects with
appropriate modifications permitted under this Agreement; provided, however,
Buyer shall have no right to assert a failure of this condition based upon any
change in any representation to the extent that such change was known to Buyer
prior to the end of the Inspection Period.

                                     (iii)          Tenant
Estoppel Letters. Seller shall have delivered to Buyer the Tenant Estoppel
Certificates required pursuant to the terms of Section 4(c). 

                                     (iv)          Closing
Deliveries. Seller shall have delivered to Buyer all of the items required
to be delivered to Buyer pursuant to the terms of Section 9.

                                     (v)           Ground
Lease Estoppel Letter. The parties shall have obtained the Ground Lease
Estoppel Letter.

          If
Buyer does not close under this Agreement because the condition(s) set forth
above are not satisfied, Buyer shall have the right to terminate this Agreement
upon written notice to Seller and Escrow Agent and immediately receive a return
of the Earnest Money Deposit. Upon the return of the Earnest Money Deposit by
Escrow Agent to Buyer, this Agreement shall be and become null and void and
neither party shall have any further rights or obligations hereunder (except
for the indemnity obligations of Buyer to Seller and Seller to Buyer as set
forth in this Agreement, which shall survive the cancellation of this Agreement);
provided, however, if Buyer does not close under this Agreement because the
condition(s) set forth above are not satisfied due to an intentional act or
omission of Seller, it shall be deemed an event of default by Seller, and Buyer
shall have the remedies set forth in Section 10(b) below for such default. 

                       (b)         Seller
shall not be obligated to close under this Agreement unless each of the
following conditions (to the extent material) shall exist on the Closing Date:

                                     (i)          Purchase
Price. Seller shall have received the Purchase Price.

                                     (ii)          Accuracy of Representations.
The representations and warranties made by Buyer in this Agreement shall be
true and correct as of the Closing Date in all material respects with
appropriate modifications permitted under this Agreement.

                                     (iii)          Closing
Deliveries. Buyer shall have delivered to Seller all of the items required
to be delivered to Seller pursuant to the terms of Section 9.

                                     (iv)          Ground
Lease Estoppel Letter. The parties shall have received the Ground Lease
Estoppel Letter.

                                     (v)           Existing
Loan. Buyer shall have obtained the Loan Approval or irrevocably committed
to prepay or defease the Existing Loan.

-20-

          If
Seller does not close under this Agreement because the condition set forth in
subsection (iv) is not satisfied through no act or omission of Buyer, it shall
not be an event of default by Buyer, however Seller shall have the right to
terminate this Agreement upon written notice to Buyer and Escrow Agent and
return of the Earnest Money Deposit to Buyer. Upon the return of the Earnest
Money Deposit by Escrow Agent to Buyer, this Agreement shall be and become null
and void and neither party shall have any further rights or obligations
hereunder (except for the indemnity obligations of Buyer to Seller and Seller
to Buyer as set forth in this Agreement, which shall survive the cancellation
of this Agreement). The failure of any other condition precedent set forth
above shall be deemed an event of default by Buyer, and Seller shall have the
remedies set forth in Section 10(a) below for such default. 

          9.          Deliveries at Closing.

                       (a)          Seller’s Deliveries.
On the Closing Date, Seller shall execute (as indicated) and deliver to the
Title Company (or make available at the Property if so indicated and not
required to be at the Title Company for Closing) the following (collectively,
the “Seller Deliveries”):

                                     (i)             The
Special Warranty Deed.

                                     (ii)            The
Assignment and Assumption of the Ground Lease.

                                     (iii)           The
Bill of Sale.

                                     (iv)           The
Assignment and Assumption Agreement. 

                                     (v)            A
current and updated Rent Roll without warranty, representation or recourse.

                                     (vi)           If
requested by the Title Company, a bills paid affidavit and a resolution to
evidence the capacity of the signatory for Seller.

                                     (vii)          The
FIRPTA Certification.

                                     (viii)       
Possession of the Property free and clear of all parties in possession except
under the Existing Leases, and (to the extent in Seller’s possession) all keys,
codes and other security devices for the Property (to be made available at the
Property).

                                     (ix)           The
Tenant Notices.

                                     (x)            Copies
(to the extent in Seller’s possession or control) of all books and records for
the orderly transition of operation of the Property (to be made available at
the Property).

                                     (xi)           The
originals (to the extent in Seller’s possession or control) of all Existing
Leases, all Assigned Existing Agreements, and all other materials owned by
Seller relating to the maintenance and operation of the Property and which are
currently in Seller’s possession or control (to be made available at the
Property).

                                     (xii)          The
Tenant Estoppel Letters to the extent required pursuant to Section 4(c). 

-21-

          (xiii)     The
Ground Lease Estoppel Letter duly executed by Seller and Ground Lessor.

                                     (xiv)          If
Lender Approval has been obtained and the Loan Assumption Documents to be
executed by Seller (if any) have been delivered to Seller, the Loan Assumption
Documents required to be executed by Seller (if any).

                                     (xv)           Termination
of the existing management agreement.

                                     (xvi)          Termination
of any Existing Lease or occupancy agreement with Seller, Seller’s managing
agent and any affiliate of Seller for any portion of the Property; except as
follows: (A) Seller’s managing agent may continue to lease Suite 635-205
(managing agent’s office) containing approximately 1,238 square feet, more or
less, located at 5959 Royal Lane, Dallas, Texas 75230, under the terms of the
Existing Lease between Seller and Seller’s managing agent at the current rent
of $14.50 per rentable square foot for a term of up to six(6) months following
Closing, terminable on two (2) days’ written notice to Buyer; and (B) Seller’s
managing agent may continue to occupy Suite 635-202 (managing agent’s
conference room), located at 5959 Royal Lane, Dallas, Texas 75230, at no rent
for up to one (1) week following Closing.

                                     (xvii)         The
Update Certificate.

                                     (xviii)        A
Lien Waiver executed by Seller’s Broker.

                                     (xix)          Any
other documents which Seller is obligated to deliver to Buyer pursuant to this
Agreement.

                       (b)          Buyer’s Deliveries.
On the Closing Date, Buyer shall execute (as indicated) and deliver to the
Title Company the following:

                                     (i)              The
Assignment and Assumption of the Ground Lease.

                                     (ii)             The
Assignment and Assumption Agreement.

                                     (iii)            The
Tenant Notices. 

                                     (iv)            If
Lender Approval has been obtained, the Loan Assumption Documents required to be
executed by or on behalf of Buyer.

                                     (v)             A
Lien Waiver executed by Buyer’s Broker.

                                     (vi)            If
requested by the Title Company, a resolution executed by the appropriate
parties to evidence the capacity of the signatory for Buyer.

                                     (vii)           That
portion of the Purchase Price payable in cash at Closing.

                                     (viii)          Any
other documents which Buyer is obligated to deliver to Seller pursuant to this
Agreement.

-22-

          10.        Default.

                       (a)          Buyer Default.
If Buyer shall have refused to complete Closing in accordance with this
Agreement (other than pursuant to a right granted in this Agreement), then as
Seller’s sole and exclusive remedy, the Earnest Money Deposit shall be paid to
Seller by Escrow Agent and the Earnest Money Deposit shall be retained by
Seller as liquidated damages and not as a penalty; provided, however, Seller
agrees to give Buyer one (1) written notice of a Buyer default and two (2)
business days following delivery of such notice to cure such default before
Seller shall be entitled to retain the Earnest Money Deposit; and provided,
further, such obligation of Seller to give Buyer such written notice and right
to cure shall not be applicable at Closing if Seller shall have satisfied
Seller’s conditions precedent to Closing set forth in Section 8(a). The receipt
of the Earnest Money Deposit shall be Seller’s sole and exclusive remedy in the
event of Buyer’s default hereunder, and Seller in such event hereby waives any
right, unless Closing is completed, to recover the balance of the Purchase
Price or any other amount. Seller and Buyer agree that the actual damages to
Seller in the event of such breach are impractical to ascertain as of the date
of this Agreement and the amount of the Earnest Money Deposit is a reasonable
estimate thereof. If Seller shall retain the Earnest Money Deposit as
liquidated damages, this Agreement shall be and become null and void. Nothing
in this Section 10 shall limit Seller’s rights against Buyer or Buyer’s rights
against Seller by reason of any indemnity obligations set forth in this
Agreement all of which shall survive the termination of this Agreement. 

                       (b)          Seller Default.
Buyer agrees that Buyer’s sole and exclusive remedy for any default by Seller
will be to either (i) terminate this Agreement and receive the Earnest Money
Deposit, or (ii) to commence or maintain an action against Seller for specific
performance under this Agreement. Any action against Seller for specific
performance under this Agreement must be commenced by Buyer within thirty (30)
days following the Closing Date. In no event (i.e., even upon the occurrence of
a Seller default) may Buyer ever pursue, commence or maintain an action for, or
otherwise collect, damages from Seller. Buyer may not pursue an action for
specific performance or other equitable relief in the absence of a Seller
default. 

          11.        Notices; Computation of Periods.

                       (a)          Notices.
All notices given by either party to the other shall be in writing and shall be
sent either (i) by United States Postal Service registered or certified mail,
postage prepaid, return receipt requested, (ii) by nationally recognized
overnight courier service for next business day delivery, addressed to the
other party at the following addresses listed below or (iii) via facsimile
transmission to the facsimile numbers listed below; provided, however, that if
such communication is given via facsimile, an original counterpart of such
communication shall concurrently be sent in the manner specified in clause (ii)
above. Addresses and facsimile numbers of the parties are as follows:

	
 

	
 

	
As to
Seller:

	
Preston
Royal Realty Company

Attention: Jacqueline Miller Stewart

5959 Royal Lane, Suite 634-205

Dallas, Texas 75230

Telephone:
214/559-2740

Facsimile:214/521-4326

-23-

	
 

	
 

	
with a copy
at

the same time to:

	

Bell Nunnally & Martin LLP

Attention: Jean Pierre Boyea

3232 McKinney Avenue, Suite 1400

Dallas, Texas 75204

Telephone: 214/740-1439

Facsimile: 214/740-5739

	
 

	
 

	
As to Buyer:

	
Tenel H.
Tayar

AmREIT Realty Investment Corporation

8 Greenway Plaza, Suite 1000

Houston, TX 77046

Telephone: 713-860-4941

Facsimile:713-850-0498

Email: ttayar@amreit.com

	
 

	
 

	
with a copy
at

the same time to:

	

T. Gaillard Uhlhorn

Bass, Berry & Sims PLC

The Tower at Peabody Place

100 Peabody Place, Suite 900

Memphis, TN 38103

Telephone: 901-543-5943

Facsimile: 901-543-5999

Email: guhlhorn@bassberry.com

	
 

	
 

	
With a copy
to

Escrow Agent:

(if required)

	

Janine Barber

Republic Title of Texas, Inc.

Dallas Uptown Commercial 

2626 Howell St,10th Floor 

Dallas, TX 75204 

Telephone: (214) 855-8863

Facsimile: (214) 855-8898

Email: jbarber@republictitle.com

or to such other address as the respective parties may hereafter
designate by notice in writing in the manner specified above. Any notice may be
given on behalf of any party by its counsel. Notices given in the manner
aforesaid shall be deemed sufficiently served or given for all purposes under
this Agreement upon the earliest of (i) actual receipt or refusal by the
addressee, or (ii) one day following the date of delivery to a nationally
recognized overnight courier service.

-24-

                       (b)          Computation of Periods.
If the final day of any period of time in any provision of this Agreement falls
upon a Saturday, Sunday or a holiday observed by federally insured banks in the
State in which the Property is located or by the United States Postal Service,
then, the time of such period shall be extended to the next day which is not a
Saturday, Sunday or holiday. Unless otherwise specified, in computing any
period of time described in this Agreement, the day of the act or event after
which the designated period of time begins to run is not to be included and the
last day of the period is so computed as to be included, unless such last day
is a Saturday, Sunday or holiday in which event the period shall run until the
end of the next day which is neither a Saturday, Sunday or holiday.

          12.        Fire or Other Casualty.

                       (a)          Risk
of Loss and Casualty Insurance. Prior to Closing, Seller shall have
full risk of loss or damage with respect to the Property. Upon Closing, full
risk of loss or damage with respect to the Property shall pass to Buyer. For
purposes of this Section, “loss or damage” shall mean the following (i) any
loss, damage, destruction or injury by fire, storm, accident, vandalism, flood
or other casualty or hazard to the Property; and (ii) any condemnation, eminent
domain or other similar proceeding. Seller agrees to maintain in effect until
the Closing Date the fire and extended coverage insurance policies now in
effect on the Property.

                       (b)          Casualty Damage.
If the Property shall be damaged or destroyed by fire or other casualty or
vandalism between the date of this Agreement and the Closing Date, subject to
subparagraph (c) below, the obligation of Buyer to complete Closing under this
Agreement shall in no way be voided or impaired, and Buyer shall be required to
accept the Property in its then damaged conditioned without abatement of the
Purchase Price. If any such damage or destruction occurs after the date of this
Agreement, the proceeds of all fire and extended coverage insurance policies
attributable to the Property received by Seller and not used by Seller for the
repair of the Property (and Buyer hereby authorizes Seller to use the proceeds
for such purpose) shall be disbursed by Seller to Buyer at Closing or thereafter
immediately upon receipt by Seller and Seller shall also pay to Buyer at
Closing the amount of any deductible; and all unpaid claims under such
insurance policies attributable to the Property shall be assigned by Seller to
Buyer on the date of Closing and there shall be no reduction in the Purchase
Price by reason of such unpaid claim except that the Purchase Price shall be
reduced by the amount of any deductible. 

                       (c)          Right of Termination.
Notwithstanding any of the preceding provisions of this Section 12, if the
Property shall be substantially damaged by vandalism, fire or other insured
casualty prior to the Closing Date, Buyer shall have the right to terminate
this Agreement by written notice to Seller. Upon such termination, the Earnest
Money Deposit shall be returned by Escrow Agent to Buyer, neither party shall
have any further rights or obligations hereunder (except the indemnity
obligations of Buyer to Seller and Seller to Buyer set forth in this Agreement
which shall survive the termination of this Agreement), and this Agreement
shall be null and void. Substantial damage shall mean such damage that would
either (i) cost, in the reasonable judgment of Seller’s independent insurance
adjuster, at least two percent (2%) of the Purchase Price to repair to its
prior condition, (ii) permit any Major Tenant to terminate its Lease, or (iii)
permit tenants with leases comprising an aggregate of 15,000 leased net
rentable area of the Property to terminate their respective lease(s). If Buyer
desires to terminate this Agreement pursuant to this subparagraph (c), Buyer
must give a written notice of termination to Seller within ten (10) business
days following Buyer’s receipt of Seller’s notice of the occurrence 

-25-

of the casualty and of Seller’s independent
insurance adjuster’s reasonable estimate of the cost of repair. 

          13.        Assignability.

                       (a)          Limited Assignment.
Subject to the further limitations in subparagraph (b) below, prior to Closing
Buyer may, without the prior written consent of Seller, assign this Agreement,
and all, but not part, of Buyer’s rights under this Agreement, to an entity (i)
which is qualified to do business in the State in which the Property is
located, and (ii) which is directly or indirectly controlled by the entity
owning all or substantially all of the interests in Buyer or is an investment
fund of, or investment advisory client of, Buyer; provided, however, that such
assignment shall not release or relieve Buyer of and from any liability or
obligation under this Agreement, and Buyer shall continue to be primarily
liable to Seller under this Agreement. No such assignment shall be effective,
however, unless and until Buyer shall have furnished to Seller both an executed
copy of the assignment and assumption agreement, in form reasonably
satisfactory to Seller, by the assignee to assume, perform and be responsible,
jointly and severally with the Buyer named herein, for the performance of all
of the obligations of Buyer under this Agreement, and which contains a
representation by the assignee that all of the representations and warranties
made by Buyer in this Agreement are true and correct with respect to the
assignee as of the date of the assumption agreement (or if the assignee is a
different form of entity, the applicable representation shall be modified as
appropriate). Seller shall have the right to rely in good faith on the
genuineness and validity of the notice from Buyer of an assignment and to
convey the Property to the assignee without liability to Buyer or any other
person. Buyer shall indemnify and save Seller harmless from and against any
such liability in connection with such conveyance to the assignee.

                       (b)          Prohibited Assignments.
Notwithstanding the foregoing provisions of subparagraph (a), Buyer shall have
no right to assign this Agreement (i) to any person who, or to any entity
which, has as a direct or indirect majority owner a person with a felony
criminal record or currently under a felony criminal indictment; or (ii) to any
person who, or entity which, cannot make the Buyer OFAC representation.

                       (c)          Successors and Assigns.
Except as provided in subparagraph (a), Buyer may not assign or suffer an
assignment of this Agreement and its rights under this Agreement, without the
prior written consent of Seller, which consent Seller may deny in its sole and
absolute discretion. Subject to the foregoing limitations, this Agreement shall
extend to, and shall bind, the respective heirs, executors, personal
representatives, successors and assigns of Seller and Buyer.

          14.        Inspection Period.

                       (a)          Right to Inspect.
Buyer, and Buyer’s agents and representatives, shall have the right, from time
to time, between the Effective Date and 5:00 p.m., Central Standard Time, on
November 2, 2012 (“Inspection Period”), during normal business hours, to
enter upon the Property for the purpose of examining the financial and
operating books and records relating to the Property maintained by or for the
benefit of Seller, interviewing tenants of the Property and conducting such
non-destructive physical engineering, feasibility and other studies and tests
on or of the Property as Buyer considers to be appropriate (including a Phase I
environmental assessment report and a structural engineering report, but
excluding, without Seller’s prior written consent, any invasive testing),
testing of machinery and equipment, taking 

-26-

of measurements, making of surveys and
generally for the reasonable ascertainment of the physical condition of the
Property; provided, however, that Buyer shall (i) give Seller at least one (1)
business day prior notice of the time, place and purpose of such entry and
permit a representative of Seller to accompany Buyer; (ii) restore any damage
to the Property or any adjacent property caused by such actions; (iii)
indemnify, defend and save Seller and, as the case may be, its partners,
trustees, shareholders, directors, officers, employees and agents harmless of
and from any and all liabilities which Seller and its partners, trustees,
shareholders, directors, officers, employees and agents may suffer related to
property damage or personal injury, to the extent caused by such entry and such
activities; (iv) give Seller at least one (1) business day prior notice of the
time and place of any tenant interview, and permit a representative of Seller
to be present at each tenant interview; and (v) prior to entry onto the
Property, furnish Seller with a certificate of general liability and property
damage insurance maintained by Buyer with single occurrence coverage of at
least $5,000,000.00 and naming Seller and its management agent as additional
insureds. Notwithstanding the generality of the foregoing, Buyer agrees (i) not
to conduct any tenant interviews on or before October 26, 2012, (ii) to provide
at least one (1) business day prior notice to Seller of the tenants Buyer
desires to interview (not to exceed tenants occupying in excess of 75% of the
net leasable area of the Property) and (iii) to permit a representative of the
Seller to be present at all tenant interviews. All such inspection rights shall
be subject to the rights of tenants under the Existing Leases. 

                       (b)          No Liens Permitted.
Nothing contained in this Agreement shall be deemed or construed in any way as
constituting the consent or request of Seller, express or implied by inference
or otherwise, to any party for the performance of any labor or the furnishing
of any materials to the Property or any part thereof, nor as giving Buyer any
right, power or authority to contract for or permit the rendering of any
services or the furnishing of any materials that would give rise to the filing
of any liens against the Property or any part thereof.

                       (c)          Assumption
of the Existing Loan. Buyer and Seller agree that in connection with the
sale of the Property, it shall be a condition precedent to the Closing
obligations of Seller that Buyer either (i) assume the Existing Loan (the “Loan
Assumption”), or (ii) prepay and/or defease the Existing Loan. Buyer shall make
such election, and notify Seller in writing, before noon, Central Time, on
November 2, 2012. If Buyer elects to assume the Existing Loan and is unable to
obtain Lender Approval (as hereinafter defined) prior to Closing, Buyer shall
nonetheless proceed to Closing, in which event Buyer shall prepay and/or
defease the Existing Loan at Closing at Buyer’s sole expense.

                                     (i)           Assumption
of the Existing Loan Documents. In connection with the Closing and, if
Buyer so elects, the Loan Assumption, Buyer shall have the right to contact
Lender regarding the Loan Assumption. Seller and Buyer agree to promptly
furnish all applications and reasonable information requested by Lender, shall
reasonably cooperate with Lender and each other in expediting the Loan
Assumption approval process, and Buyer shall keep Seller closely advised of
Buyer’s communication with Lender. In connection with the Loan Assumption, the
parties will diligently pursue negotiations of an assumption agreement (and
such other documents, instruments, certificates and/or legal opinions as may be
required by Lender (collectively, the “Loan
Assumption Documents”)). The Loan Assumption Documents shall provide a
release of Seller in a form reasonably acceptable to Seller.

                                     (ii)          Assumption
Fees. Buyer shall pay (a) any and all fees and charges associated with the
Lender Approval; (b) any and all loan transfer fees and debt assumption fees
due to Lender in connection with the Loan Assumption; and (c) any and all 

-27-

fees charged by Lender in connection with the drafting and negotiating
of the Loan Assumption Documents. Each of Buyer and Seller shall pay their
respective attorneys’ fees incurred in connection with the Loan Assumption. 

                                     (iii)          Lender
Approval. Lender’s conditional approval of the Loan Assumption, together
with a final version of the Loan Assumption Documents providing for a full
release of Seller from all obligations and liabilities with respect to the Loan
first accruing from and after Closing, shall constitute “Lender Approval”.
Buyer will deliver draft copies of the Loan Assumption Documents to Seller
promptly after receipt from Lender and will deliver executed originals of the
Loan Assumption Documents at Closing. Buyer shall be responsible for any and
all prepayment fees and/or costs in connection with the payoff or defeasance of
the Existing Loan including, without limitation, any prepayment fee. 

                       (d)          Ground
Lease Estoppel Letter. Buyer and Seller agree that in connection with the
sale of the Property, it shall be a condition precedent to the Closing
obligations of Seller and Buyer that Buyer obtain the Ground Lease Estoppel
Letter. If the parties are unable to obtain the Ground Lease Estoppel Letter by
the end of the Inspection Period, then either party may terminate this
Agreement, the Earnest Money shall be returned to Buyer and neither party shall
have any further liability hereunder (except for the indemnity obligations of
Buyer to Seller and Seller to Buyer under this Agreement which shall survive
termination of this Agreement). Seller and Buyer agree to promptly furnish all
reasonable information requested by Ground Lessor, and shall reasonably
cooperate with Ground Lessor in expediting the Ground Lessor approval process.
In connection therewith, the parties will diligently pursue any reasonable
changes to the form of Ground Lease Estoppel Letter requested by Ground Lessor.
Each of Buyer and Seller shall pay their respective attorneys’ fees incurred in
connection any negotiation of the form of Ground Lease Estoppel Letter. Neither
Seller nor Buyer shall be obligated to pay incur any additional cost or expense
in connection therewith. Seller will deliver a copy of the executed Ground
Lease Estoppel Letter promptly after receipt from Ground Lessor and will
deliver the executed original Ground Lease Estoppel Letter at Closing.

                       (e)          Right of Termination.
If Buyer, in Buyer’s sole and absolute discretion, determines that it is not
satisfied with the Property for any or no reason, or fails to obtain Lender’s
consent to the assumption of the Existing Loan by Buyer, Buyer shall have the
right on or prior to the expiration of the Inspection Period to terminate this
Agreement. In the event that Buyer is satisfied with the Property and other
matters contemplated herein and chooses to proceed with the transaction
contemplated by this Agreement, Buyer will give Seller written notice
(“Continuation Notice”) on or prior to the expiration of the Inspection
Period. In the event that Buyer does not provide such Continuation Notice to
Seller by the expiration of the Inspection Period, then Buyer will be deemed to
have elected to terminate this Agreement pursuant to this Section 14(e). In
such event, this Agreement shall immediately terminate (except for the
indemnity obligations of Buyer to Seller and Seller to Buyer under this
Agreement which shall survive termination of this Agreement) and the Earnest
Money Deposit shall be returned to Buyer, as Buyer’s sole and exclusive remedy.
Upon termination of this Agreement by Buyer, as a condition to the return of
the Earnest Money Deposit, Buyer shall return the due diligence materials
delivered by Seller to Buyer and shall furnish a copy of reports obtained by Buyer
with respect to the Property to Seller.

                       (f)          Financing.
Except for the provisions of this Agreement related to the assumption,
prepayment or defeasance of the Existing Loan, there is no financing
contingency to Buyer’s obligations under this Agreement.

-28-

          15.        Condemnation.

                       (a)          Taking.
If any part of the Property shall be taken by exercise of the power of eminent
domain after the date of this Agreement, subject to the provisions of
subparagraph (b) below, this Agreement shall continue in full force and effect
and there shall be no abatement of the Purchase Price. Seller shall be
relieved, however, of its duty to convey title to the portion so taken, but
Seller shall, on the Closing Date, assign to Buyer all rights and claims to any
awards arising therefrom as well as any money theretofore received by Seller on
account thereof net of any expenses to Seller, including reasonable attorneys’
fees of collecting the same. Seller shall promptly furnish Buyer with a copy of
the declaration of taking promptly after Seller’s receipt thereof. If Seller
fails to permit Buyer to approve the settlement of any condemnation claim and
Buyer, in Buyer’s good faith reasonable judgment, determines that the final
condemnation award will not adequately compensate for the portion of the
Property lost as a result of such taking, then Buyer may terminate this
Agreement by written notice to Seller no later than the fifth (5th) business
day following Buyer’s receipt of notice of such final condemnation award.

                       (b)          Material Taking.
If any taking a portion of the Property materially interferes with the use of
the Property for the purposes for which it is currently used, Buyer may
terminate this Agreement, by written notice to Seller and Escrow Agent within
ten (10) days of Seller’s notice to Buyer of such a taking. Upon the giving of
such termination notice, the Earnest Money Deposit shall be returned to Buyer
by Escrow Agent and this Agreement shall become null and void, except for the
indemnity obligations of Buyer to Seller and of Seller to Buyer set forth in
this Agreement which will survive termination of this Agreement. If Buyer does
not timely give notice of termination, Buyer shall be deemed to have waived its
option contained in this Section 15(b) to terminate this Agreement, Buyer’s
obligations under this Agreement shall remain in effect notwithstanding such
condemnation and Buyer shall remain obligated to consummate the purchase in
accordance with the terms of this Agreement; provided, however, that Seller
shall, on the Closing Date (i) assign and remit to Buyer, and Buyer shall be
entitled to receive and keep, the net proceeds of any award or other proceeds
of such Material Taking which may have been collected by Seller as a result of
such Material Taking less the reasonable expenses incurred by Seller in
connection with such Taking, or (ii) if no award or other proceeds have been
collected, deliver to Buyer an assignment of Seller’s right to any such award
or other proceeds which may be payable to Seller as a result of such Material
Taking. As used herein, the term “Material Taking” shall mean any taking or
proposed taking by eminent domain which involves a taking of two percent (2%)
or more of the leased area of the Property as determined by an independent
appraiser chosen by Seller and Buyer, or which materially adversely affects
access to the Property on a permanent basis, or causes the Property to be in
violation of applicable zoning laws or parking requirements, which violation
cannot be cured, or which permits any tenant to terminate its lease.

          16.        Brokers. Buyer represents and warrants to Seller that
Buyer has dealt with no broker or other intermediary in connection with this
transaction or the Property other than Seller’s Broker and Buyer’s Broker.
Seller represents and warrants to Buyer that Seller has dealt with no broker or
other intermediary in connection with this transaction or the Property other
than Seller’s Broker and Buyer’s Broker. If any broker or other intermediary
other than Seller’s Broker or Buyer’s Broker claims to have dealt with Buyer or
Seller in connection with this transaction or the Property, to have introduced
the Property to Buyer for sale, or to have been the inducing cause of the sale,
the party under whom such broker or intermediary is 

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claiming shall indemnify, defend and save the
other party harmless of and from any claim for commission or compensation by
such broker or other intermediary. 

          17.        CONDITION OF PROPERTY.

                       (a)          NO WARRANTIES.
THE ENTIRE AGREEMENT BETWEEN SELLER AND BUYER WITH RESPECT TO THE PROPERTY AND
THE SALE THEREOF IS EXPRESSLY SET FORTH IN THIS AGREEMENT. THE PARTIES ARE NOT
BOUND BY ANY AGREEMENTS, UNDERSTANDINGS, PROVISIONS, CONDITIONS,
REPRESENTATIONS OR WARRANTIES (WHETHER WRITTEN OR ORAL AND WHETHER MADE BY
SELLER OR ANY AGENT, EMPLOYEE OR PRINCIPAL OF SELLER OR ANY OTHER PARTY) OTHER
THAN AS ARE EXPRESSLY SET FORTH AND STIPULATED IN THIS AGREEMENT OR IN THE
DOCUMENTS CONTEMPLATED UNDER THIS AGREEMENT TO BE EXECUTED AT CLOSING. WITHOUT
IN ANY MANNER LIMITING THE GENERALITY OF THE FOREGOING, BUYER ACKNOWLEDGES
THAT, AS OF THE CLOSING DATE, IT AND ITS REPRESENTATIVES SHALL BE DEEMED TO
HAVE FULLY INSPECTED THE PROPERTY, THE EXISTING LEASES AND ASSIGNED EXISTING
AGREEMENTS, OR PURSUANT TO THIS AGREEMENT WILL BE PROVIDED WITH AN ADEQUATE
OPPORTUNITY TO DO SO, ARE OR WILL BE FULLY FAMILIAR WITH THE FINANCIAL AND
PHYSICAL (INCLUDING WITHOUT LIMITATION, ENVIRONMENTAL AND SOIL COMPACTION)
CONDITION THEREOF, AND THAT THE PROPERTY, THE EXISTING LEASES AND ASSIGNED
EXISTING AGREEMENTS WILL BE PURCHASED BY BUYER (SUBJECT IN ALL EVENTS AND
CIRCUMSTANCES, AS TO THE PROPERTY, TO SELLER’S SPECIAL WARRANTY OF TITLE) IN AN
“AS IS” AND “WHERE IS” CONDITION AND WITH ALL EXISTING DEFECTS AS A RESULT OF
SUCH INSPECTIONS AND INVESTIGATIONS AND NOT IN RELIANCE ON ANY AGREEMENT,
UNDERSTANDING, CONDITION, WARRANTY (INCLUDING, WITHOUT LIMITATION, WARRANTIES
OF HABITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE) OR
REPRESENTATION MADE BY SELLER OR ANY AGENT, EMPLOYEE OR PRINCIPAL OF SELLER OR
ANY OTHER PARTY (EXCEPT AS EXPRESSLY ELSEWHERE PROVIDED IN THIS AGREEMENT) AS
TO THE FINANCIAL OR PHYSICAL (INCLUDING, WITHOUT LIMITATION, ENVIRONMENTAL AND
SOIL COMPACTION) CONDITION OF THE PROPERTY OR THE AREAS SURROUNDING THE
PROPERTY, AS TO ANY MATTER, INCLUDING WITHOUT LIMITATION AS TO ANY PERMITTED
USE THEREOF, THE ZONING CLASSIFICATION THEREOF OR COMPLIANCE THEREOF WITH
FEDERAL, STATE OR LOCAL LAWS, AS TO THE INCOME OR EXPENSE IN CONNECTION
THEREWITH, AS TO WHETHER OR NOT ANY PORTION THEREOF IS IN THE FLOOD PLAIN, OR
AS TO ANY OTHER MATTER IN CONNECTION THEREWITH. BUYER ACKNOWLEDGES THAT, EXCEPT
AS EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN THE DOCUMENTS CONTEMPLATED UNDER
THIS AGREEMENT TO BE EXECUTED AT CLOSING, NEITHER SELLER, OR ANY AGENT OR
EMPLOYEE OF SELLER NOR ANY OTHER PARTY ACTING ON BEHALF OF SELLER HAS MADE OR
SHALL BE DEEMED TO HAVE MADE ANY SUCH AGREEMENT, CONDITION, REPRESENTATION OR
WARRANTY EITHER EXPRESSED OR IMPLIED. THIS PARAGRAPH SHALL SURVIVE CLOSING, AND
SHALL BE DEEMED INCORPORATED BY REFERENCE AND MADE A PART OF ALL DOCUMENTS
DELIVERED BY SELLER TO BUYER IN CONNECTION WITH THE SALE OF THE PROPERTY.

                       (b)          CHANGE OF CONDITIONS.
SUBJECT TO THE PROVISIONS OF THIS AGREEMENT, BUYER SHALL ACCEPT THE PROPERTY AT
THE TIME OF CLOSING IN THE SAME CONDITION AS THE SAME ARE IN AS OF THE
EXPIRATION OF THE

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INSPECTION PERIOD, AS SUCH CONDITION SHALL HAVE CHANGED BY REASON OF
NORMAL WEAR AND TEAR, DAMAGE BY FIRE OR OTHER CASUALTY AND VANDALISM. SUBJECT
TO THE PROVISIONS OF THIS AGREEMENT, WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, BUYER SPECIFICALLY ACKNOWLEDGES THAT THE FACT THAT ANY PORTION OF
THE PROPERTY OR ANY EQUIPMENT OR MACHINERY THEREIN OR ANY PART THEREOF MAY NOT
BE IN WORKING ORDER OR CONDITION AT THE CLOSING DATE BY REASON OF NORMAL WEAR
AND TEAR OR DAMAGE BY FIRE OR OTHER CASUALTY OR VANDALISM, OR BY REASON OF ITS
PRESENT CONDITION, SHALL NOT RELIEVE BUYER OF ITS OBLIGATION TO COMPLETE
CLOSING UNDER THIS AGREEMENT AND PAY THE FULL PURCHASE PRICE. NOTWITHSTANDING
THAT, EXCEPT AS PROVIDED IN THIS AGREEMENT, SELLER HAS NO OBLIGATION TO MAKE ANY
REPAIRS OR REPLACEMENTS REQUIRED BY REASON OF NORMAL WEAR AND TEAR, FIRE OR
OTHER CASUALTY, OR VANDALISM, SELLER MAY, AT ITS OPTION, MAKE ANY SUCH REPAIRS
AND REPLACEMENTS PRIOR TO THE CLOSING DATE IF SELLER BELIEVES SUCH REPAIRS AND
REPLACEMENTS ARE NECESSARY, DESIRABLE OR LEGALLY REQUIRED TO PROTECT THE
PROPERTY.

                    (c)     Condition of Delivery.
Seller has, subject to subparagraph (d) below, no obligation to deliver
the Property in a “broom clean” condition if it is currently not in broom clean
condition, and at Closing Seller may leave in the Property all items of
personal property and equipment, partitions and debris as are now presently
therein.

                    (d)     Seller Operation
of the Property. Notwithstanding the foregoing provisions of this Section
17, between the date of the execution of this Agreement and the Closing Date,
Seller shall, subject to the limitations and other provisions hereof, continue
to lease and operate the Property in a manner consistent with leasing and
operation on the date of this Agreement, shall comply in all material respects
with Seller’s obligations under the Existing Leases and Assigned Existing
Agreements, and shall perform all customary repairs (and emergency repairs, to
the extent necessary to remedy the emergency) to the Property as Seller has
customarily previously performed to maintain them in the same condition or
better as they are as of the date of the expiration of the Inspection Period,
as said condition shall be changed by normal wear and tear, damage by fire or
other casualty, or vandalism. Seller shall maintain all insurance which is in
effect as of the date this Agreement through the Closing Date. 

                    (e)     RELEASE.
WITHOUT LIMITING THE PROVISIONS OF SUBPARAGRAPH (a) ABOVE AND NOTWITHSTANDING
ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, BUYER HEREBY RELEASES
SELLER AND (AS THE CASE MAY BE) SELLER’S OFFICERS, DIRECTORS, SHAREHOLDERS,
TRUSTEES, PARTNERS, EMPLOYEES, MANAGERS AND AGENTS FROM ANY AND ALL CLAIMS,
DEMANDS, CAUSES OF ACTIONS, LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES
(INCLUDING ATTORNEYS’ FEES WHETHER THE SUIT IS INSTITUTED OR NOT) WHETHER KNOWN
OR UNKNOWN, LIQUIDATED OR CONTINGENT (HEREINAFTER COLLECTIVELY CALLED THE
“CLAIMS”) ARISING FROM OR RELATING TO (i) ANY DEFECTS, ERRORS OR OMISSIONS IN
THE DESIGN OR CONSTRUCTION OF THE PROPERTY WHETHER THE SAME ARE THE RESULT OF
NEGLIGENCE, OR OTHERWISE, OR (ii) ANY OTHER CONDITIONS, INCLUDING ENVIRONMENTAL
AND OTHER PHYSICAL CONDITIONS, AFFECTING THE PROPERTY WHETHER THE SAME ARE A
RESULT OF NEGLIGENCE OR OTHERWISE. THE RELEASE SET FORTH IN THIS SECTION
SPECIFICALLY INCLUDES, WITHOUT LIMITATION, ANY CLAIMS (INCLUDING INDEMNITY AND
CONTRIBUTION CLAIMS) UNDER ANY ENVIRONMENTAL LAWS OF THE UNITED

	
  

 	
  

 	
  

 
	
  

 	
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STATES, THE STATE IN WHICH THE PROPERTY IS LOCATED OR ANY POLITICAL
SUBDIVISION THEREOF OR UNDER THE AMERICANS WITH DISABILITIES ACT OF 1990, AS ANY
OF THOSE LAWS MAY BE AMENDED FROM TIME TO TIME AND ANY REGULATIONS, ORDERS,
RULES OF PROCEDURES OR GUIDELINES PROMULGATED IN CONNECTION WITH SUCH LAWS,
REGARDLESS OF WHETHER THEY ARE IN EXISTENCE ON THE DATE OF THIS AGREEMENT.
BUYER ACKNOWLEDGES THAT BUYER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL
OF BUYER’S SELECTION AND BUYER IS GRANTING THIS RELEASE OF ITS OWN VOLITION AND
AFTER CONSULTATION WITH BUYER’S COUNSEL. 

                    (f)     Seller Reports.
Buyer acknowledges that Seller makes no warranties or representations regarding
the adequacy, accuracy or completeness of the Seller’s Reports or other
documents relating to the Seller’s Reports, if any, and Buyer shall have no
claim against Seller based upon the Seller’s Reports or such other documents
relating to the Seller’s Reports. Buyer further acknowledges that Buyer has had
full opportunity to perform such environmental and engineering investigations
as Buyer deems appropriate prior to entering into this Agreement or shall have
such opportunity during the Inspection Period, and Buyer obtained or shall
obtain, at Buyer’s option, its own environmental and engineering reports of the
Property.

                    (g)     Effect of Disclaimers.
Buyer acknowledges and agrees that the Purchase Price has been negotiated to
take into account that the Property are being sold subject to the provisions of
this Section 17.

          18.     Survival of Provisions.

                    (a)     Acceptance
by Buyer of the Seller’s Deliveries at Closing shall constitute an
acknowledgment by Buyer of full performance by Seller of all of Seller’s
obligations under this Agreement, except for those expressly set forth in this
Agreement which will expressly survive Closing.

                    (b)     Buyer’s
obligations under this Agreement which expressly require performance or
observance after the Closing Date shall survive Closing, notwithstanding any
presumption to the contrary.

                              (i)     Notwithstanding
any provision to the contrary set forth in this Agreement, the warranties and
representations of Seller (all herein called the “Surviving Warranties”) shall
survive Closing under this Agreement until six (6) months following the Closing
Date.

                              (ii)    If
Buyer (A) obtains actual knowledge that any of the Surviving Warranties are
breached prior to the Closing Date, (B) contemporaneously gives written notice
of such breach to Seller, and (C) Seller, using commercially reasonable
efforts, is unable to cure such breach within fifteen (15) following Seller’s
receipt of such notice, then Buyer’s sole right and remedy shall be to
terminate this Agreement by giving to Seller written notice of such termination
on or prior to the Closing Date. In any such event, the Closing Date shall be
extended to the end of such cure period. Upon the giving of such termination
notice, the Earnest Money Deposit shall be returned to Buyer by Escrow Agent
and this Agreement shall become null and void, except for the indemnity
obligations of Buyer to Seller and of Seller to Buyer set forth in this
Agreement which will survive termination of this Agreement. If Buyer fails to
give such written termination notice to Seller prior to Closing, Buyer shall be
deemed to have waived

	
  

 	
  

 	
  

 
	
  

 	
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any right or remedy (including, without limitation, any right under
this Agreement to terminate this Agreement) against Seller by reason of the
breach of such warranty. 

                              (iii)   Subsequent
to Closing, Seller shall have no liability to Buyer by reason of a breach or
default of any of the Surviving Warranties, unless Buyer shall have given to
Seller written notice (“Warranty Notice”) of such breach or default within
six (6) months after the Closing Date, and shall have given to Seller an
opportunity to cure any such breach or default within a reasonable period of
time after Buyer’s learning of such breach of warranty. In no event shall
Seller’s aggregate liability to Buyer by reason of any one or more breaches or
defaults of any covenants, indemnities, representations, warranties or other
breaches under this Agreement or any document delivered by Seller to Buyer at Closing
exceed $620,000.00 (such liability will be subject to floor of $50,000.00) and
Buyer will have no right to rescind this Agreement. Any litigation to enforce
any Surviving Warranty must be commenced on or before six (6) months following
the Closing Date, and if not commenced on or before such date, Buyer shall be
deemed to have waived its claims for such breach or default.

          19.     Limited Liability. 

                    (a)     Except
as expressly provided in Section 19(b), the obligations of Seller under this
Agreement or directly or indirectly arising out of this Agreement shall be
limited solely to Seller’s interest in the Property and neither Buyer nor any
one else claiming by or through Buyer shall have any claim against any other asset
of Seller or any partner of Seller. 

                    (b)     Seller
covenants that until six (6) months following the Closing Date, Seller shall
maintain its legal existence. If no claim has been made by Buyer against Seller
prior to six (6) months following the Closing Date, Seller may dissolve its
legal existence. If a claim has been made by Buyer against Seller prior to six
(6) months following the Closing Date, Seller shall maintain its legal
existence until Buyer’s claim is resolved or finally determined by a court of
competent jurisdiction. Buyer may seek actual damages (but not consequential,
exemplary or punitive damages) up to, but not in excess of, the amount of
$620,000.00, for Seller’s breach of the provisions of this Agreement that survive
Closing or for Seller’s breach of its obligations under the documents executed
by Seller and delivered to Buyer at Closing, if and only if all of the
conditions to Buyer’s recovery right set forth below occur. No suit may be
brought which is commenced after six (6) months following the Closing Date, nor
may any suit be brought that does not satisfy all of the following conditions
(with the burden of proving that such conditions have been satisfied falling on
Buyer):

                              (i)     Buyer
first becomes aware of such breach after the Closing Date;

                              (ii)    Buyer
provides the Warranty Notice on or before six (6) months following the Closing
Date; and

                              (iii)   If
Buyer’s claim is for a breach of any of Seller’s warranties or representations
contained in Section 6(a) made by Seller to the standard of knowledge, Seller
must have known that the warranty or representation was inaccurate at the time
made. 

          This
Section 19(b) shall survive Closing.

                    (c)     This
limitation of liability provision is a material inducement for Seller to enter
into this Agreement, and but for this provision Seller would not have entered
into this

	
  

 	
  

 	
  

 
	
  

 	
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Agreement.

          20.     Miscellaneous.

                    (a)     Captions or Headings; Interpretation.
The captions or headings of the sections, paragraphs, and subparagraphs of this
Agreement are for convenience only, and shall not control or affect the meaning
or construction of any of the terms or provisions of this Agreement. Wherever
in this Agreement the singular number is used, the same shall include the plural
and vice versa and the masculine gender shall include the feminine gender and
vice versa as the context shall require.

                    (b)     Amendments and Waivers.
No change, alteration, amendment, modification or waiver of any of the terms or
provisions of this Agreement shall be valid, unless the same shall be in
writing and signed by Buyer and Seller.

                    (c)     No Rule of Construction.
This Agreement has been negotiated at arms length by both Seller and Buyer, and
no rule of construction shall be invoked against either party with respect to
the authorship thereof or of any of the documents to be delivered by the
respective parties at Closing.

                    (d)     Counterparts.
This Contract may be executed in multiple counterparts each of which shall be
deemed an original but together shall constitute one agreement.

                    (e)     Applicable Law.
This Agreement shall be governed and construed according to the laws of the
State in which the Property is located.

                    (f)     Right to Waive Conditions or Contingency.
Either party may waive any of the terms and conditions of this Agreement made
for its benefit provided such waiver is in writing and signed by the party
waiving such term or condition.

                    (g)     Partial Invalidity.
If any term, covenant, condition or provision of this Agreement or the
application thereof to any person or circumstance shall be invalid or
unenforceable, at any time or to any extent, the remainder of this Agreement,
or the application of such term or provision to persons or circumstances other
than those as to which it is held invalid or unenforceable, shall not be
affected thereby. Each term, covenant, condition and provision of this Agreement
shall be valid and enforced to the fullest extent permitted by law.

                    (h)     Confidentiality.
Except for Buyer’s disclosure to its investors, attorneys, accountants,
consultants, potential lenders and potential partners, Seller and Buyer agree
to keep this Agreement confidential and not make any public announcements or
disclosures with respect to the subject matter of this Agreement without the
written consent of the other party. This provision shall survive Closing unless
Seller or Buyer is required to disclose such matter by law or for purposes of
regulatory compliance. 

                    (i)     Property Excluded.
This sale does not include, and Seller shall remove from the Property prior to
Closing, the items of personal property listed on Exhibit 20(i) attached
hereto. Prior to the Closing Date, Seller shall repair in a reasonable manner,
all holes and other damage to the building directly resulting from the removal
by Seller from the building of the items of property not included in this sale.

	
  

 	
  

 	
  

 
	
  

 	
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                    (j)     Agreement Not To Be Recorded.
This Agreement shall not be filed of record by or on behalf of Buyer in any
office or place of public record. If Buyer fails to comply with the terms
hereof by recording or attempting to record this Agreement or a notice thereof,
such act shall not operate to bind or cloud the title to the Property. Seller
shall, nevertheless, have the right forthwith to institute appropriate legal
proceedings to have the same removed from record. If Buyer or any agent, broker
or counsel acting for Buyer shall cause or permit this Agreement or a copy
thereof to be filed in an office or place of public record, Seller, at its
option, and in addition to Seller’s other rights and remedies, may treat such
act as a default of this Agreement on the part of Buyer. However, the filing of
this Agreement in any lawsuit or other proceedings in which such document is
relevant or material shall not be deemed to be a violation of this paragraph.

                    (k)    Time of the Essence.
Time, wherever specified herein for the performance by Seller or Buyer of any
of their respective obligations hereunder (including, without limitation the
time deadline for Buyer’s delivery of the Earnest Money Deposit under Section
2.2 and Buyer’s delivery of a Continuation Notice under Section 14), is hereby
made and declared to be of the essence of this Agreement.

                    (l)     Attorneys’
Fees. If either party commences legal proceedings for any relief against
the other party arising out of this Agreement or any documents, agreements,
exhibits or certificates contemplated hereby, the losing party shall pay the
prevailing party’s reasonable attorneys’ fees upon final settlement, judgment
or appeal thereof.

                    (m)    Jury
Trial. Seller and Buyer each hereby knowingly and unconditionally waive any
and all right to demand a jury trial in any action for the interpretation or
enforcement of this Agreement.

                    (n)     No
Partnership. Nothing contained in this Agreement shall be construed to
create a partnership or joint venture between the parties or their successors in
interest or permitted assigns.

                    (o)     Post Closing Audit.

                              (i)     Following
Closing, at the request of Buyer, and at Buyer’s expense, Seller shall make
available to Buyer the historical financial information (including any
underlying documentation) in Seller’s possession regarding the operation of the
Property to the extent required by Buyer or its successors in order to prepare
stand-alone audited financial statement for such operations and in accordance
with generally accepted accounting principles, as of the end of the fiscal year
2012 and any required subsequent date or period, and to cooperate (at Buyer’s
expense) with Buyer and any auditor engaged by Buyer for such purpose. Seller
has no obligation to incur any expense or assume any liability as a result of
such cooperation and Buyer agrees to indemnify, protect, defend and hold Seller
harmless from any liability with respect thereto. Seller shall, without
liability, recourse or cost to Seller, provide to Buyer’s designated
independent auditor the Audit Representation Letter. 

          In
addition, Seller covenants and agrees to cooperate reasonably with Buyer’s
accounting auditors in relation to a Rule 3-14 of the Securities and Exchange
Commission Regulation S-X audit for significant transactions. Such cooperation
will require access to accounting records of Seller only with respect to the
Property. To the extent necessary for Buyer to comply with such Rule 3-14,
Seller will make representations to the auditor about the

	
  

 	
  

 	
  

 
	
  

 	
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accounting records to the extent that they are no more onerous than the
representations already made about such records by Seller in this Agreement and
do not expand the liability of Seller beyond Seller’s liability under this
Agreement. Completion of this audit will not be required before Closing and
will not affect the Closing Date. Notwithstanding the foregoing, Seller shall
not be obligated to incur any third party cost or expense in connection with
the examination of Seller’s accounting records or such audit, and Buyer shall
be solely responsible for such costs and expenses. 

                              (ii)    Buyer
shall cooperate with Seller after Closing, at no cost to Buyer, in case of
Seller’s need in response to any legal requirement, a tax audit, tax return
preparation or litigation threatened or brought against Seller, by allowing
Seller and its agents or representatives access, upon reasonable advance notice
(which notice shall identify the nature of the information sought by Seller),
at all reasonable times to examine and make copies of any and all instruments,
files and records.

                    (p)     Facsimile
or .pdf. Signatures to this Agreement transmitted by telecopy or email
(.pdf) shall be valid and effective to bind the party so signing. Each party
agrees to promptly deliver an execution original to this Agreement with its
actual signature to the other party, but a failure to do so shall not affect
the enforceability of this Agreement, it being expressly agreed that each party
to this Agreement shall be bound by its own telecopied or emailed signature and
shall accept the telecopied or emailed signature of the other party to this
Agreement.

                    (q)     Section
1031 Exchange. Seller acknowledges that Buyer may effect a like-kind
exchange under Section 1031 of the Code. Accordingly, Seller agrees that it
will cooperate with Buyer to effect a tax-free exchange in accordance with the
provisions of Section 1031 of the Code and the regulations promulgated with
respect thereto. Buyer shall be solely responsible for any additional fees,
costs or expenses incurred in connection with the like-kind exchange
contemplated by this paragraph, and Seller shall not be required to incur any
debt, obligation or expense in accommodating Buyer hereunder. In no event shall
Buyer’s ability or inability to effect a like-kind exchange, as contemplated hereby,
in any way delay the Closing or relieve Buyer from its obligations and
liabilities under this Agreement. Buyer hereby agrees to indemnify and hold
harmless Seller from any liability, losses or damages incurred by Seller in
connection with or arising out of the Section 1031 like-kind exchange,
including but not limited to any tax liability.

                    (r)     Escrow
Agent. By their execution and delivery of this Agreement, Buyer and Seller
acknowledge and confirm that under certain circumstances deposits (including
the funds subject to this Agreement) may not be insured or fully insured by the
Federal Deposit Insurance Corporation (“FDIC”). Each party has made its own
analysis of FDIC insurance regulations affecting, or potentially affecting, the
funds subject to this Agreement and is not relying upon any advice from Escrow
Agent as to FDIC matters. Buyer and Seller understand and agree that Escrow
Agent is holding the escrow funds as agent and that the funds are not trust
funds. Simultaneously with final disbursement of the escrow funds pursuant to
this Agreement, Escrow Agent shall be released of all liability and
responsibility under this Agreement. Escrow Agent may act in reliance upon any
writing or instrument or signature which it, in good faith, believes to be
genuine. Escrow Agent may assume that any person purporting to give any
writing, notice, advice or instructions in connection with the provisions
hereof, has been duly authorized to do so. Escrow Agent undertakes and agrees
to perform only such duties as expressly set forth herein. The duty of Escrow
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limited to the safe keeping of the escrow funds and the disposition of
same in accordance with the provisions hereof. Escrow Agent shall have the
right, but not the obligation, to require a written statement signed by Buyer
and Seller confirming satisfaction of all conditions precedent to disbursement
of funds hereunder and authorizing disbursement of said funds, together with
accrued interest, if any. All notices to or from Escrow Agent shall be in
writing. Buyer and Seller hereby release Escrow Agent from any losses incurred
with respect to funds deposited hereunder by reason of the absence of or
insufficiency of FDIC insurance with respect to such funds. Buyer and Seller
acknowledge that Escrow Agent has entered into this Agreement at their specific
request and, in order to induce Escrow Agent to accept said escrow, do hereby
agree to indemnify and hold Escrow Agent harmless from all loss, cost and
expense, including reasonable attorneys’ fees and court costs, which it may
suffer or incur as a result of acting as Escrow Agent under this Agreement,
including, without limitation, claims arising with respect to the absence or
insufficiency of FDIC insurance for funds subject to this Agreement. In the
event of any dispute as to the disbursement of escrow funds or any claim
thereto by any party or person, Escrow Agent shall have the right to bring a
suit in interpleader in the Circuit Court for Dallas County, Texas naming the
parties to this Agreement and any other parties as may be appropriate in the
opinion of Escrow Agent. Buyer and Seller shall indemnify and hold harmless
Escrow Agent from all costs, including attorneys’ fees, in connection with such
interpleader action. Upon the filing of said suit and deposit of the balance of
escrow funds in the registry of the Court, Escrow Agent shall have the right to
withdraw from said suit, and all obligations of Escrow Agent shall cease and
terminate.

[SEE SIGNATURES ON THE FOLLOWING
PAGES]

	
  

 	
  

 	
  

 
	
  

 	
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          IN
WITNESS WHEREOF, the parties hereto, intending legally to be bound hereby, have
executed this Agreement as of the Effective Date.

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SELLER:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 PRESTON ROYAL REALTY COMPANY, 

 
	
  

 	
 a Texas joint venture

 
	
  

 	
 By:

 	
 SC Preston Royal, Ltd.,

 
	
  

 	
  

 	
 a Texas limited partnership,

 
	
  

 	
  

 	
 Joint Venturer

 
	
  

 	
  

 	
 By:

 	
 SC Preston Royal GP, Inc.,

 
	
  

 	
  

 	
  

 	
 a Texas corporation,

 
	
  

 	
  

 	
  

 	
 Managing Partner

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
 /s/ Jacqueline Miller Stewart

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Jacqueline Miller Stewart,

 
	
  

 	
  

 	
  

 	
  

 	
 Vice President

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Tax Identification No: 75-1002194

 

	
  

 	
  

 	
  

 
	
  

 	
 -38-

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 BUYER:

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 AMREIT
 REALTY INVESTMENT CORPORATION,

 
	
  

 	
  

 	
 a Texas
 corporation

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 /s/ Chad Braun

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Name: 

 	
 Chad Braun

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Title:

 	
 Vice President

 

	
  

 	
  

 	
  

 
	
  

 	
 -39-

 	
  

 

ESCROW AGENT’S AGREEMENT

          1.          Duties. Escrow Agent joins herein for the purpose of agreeing to comply
with the terms hereof insofar as they apply to Escrow Agent. Escrow Agent shall
receive and hold the Earnest Money Deposit in trust, to be disposed of in
accordance with the provisions of this joinder and the foregoing Agreement. The
Earnest Money Deposit shall be invested by Escrow Agent in an interest bearing
account at a national bank reasonably acceptable to Seller, Buyer and Escrow
Agent having assets in excess of one billion dollars.  

          2.          Indemnity. Escrow Agent shall not be liable to any party except for
claims resulting from the negligence or willful misconduct of Escrow Agent. If
any escrow is the subject of any controversy or litigation, the parties to the
Agreement shall jointly and severally indemnify and hold Escrow Agent harmless
from and against any and all loss, cost, damage, liability or expense,
including costs of reasonable attorneys’ fees to which Escrow Agent may be put
or which Escrow Agent may incur by reason of or in connection with such
controversy or litigation, except to the extent it is determined that such
controversy or litigation resulted from Escrow Agent’s negligence or willful
misconduct. If the indemnity amounts payable hereunder result from the fault of
Buyer or Seller (or their respective agents), the party at fault shall pay and
hold the other party harmless against such amounts.  

          3.          Conflicting Demands. If conflicting demands are made upon Escrow Agent
or if Escrow Agent is uncertain with respect to any escrow, the parties to the
Agreement expressly agree that Escrow Agent shall have the absolute right to do
either or both of the following: (i) withhold and stop all proceedings in
performance of any escrow and await settlement of the controversy by final
appropriate legal proceedings or otherwise as it may require; or (ii) file suit
for declaratory relief and/or interpleader and obtain an order from the court
requiring the parties to interplead and litigate in such court their several
claims and rights between themselves. Upon the filing of any such declaratory
relief or interpleader suit and tender of the Earnest Money Deposit to the
court, Escrow Agent shall thereupon be fully released and discharged from any
and all obligations to further perform the duties or obligations imposed upon
it. Buyer and Seller agree to respond promptly in writing to any request by
Escrow Agent for clarification, consent or instructions. Any action proposed to
be taken by Escrow Agent for which approval of Buyer and/or Seller is requested
shall be considered approved by the particular party if Escrow Agent does not
receive written notice of disapproval within five (5) business days after a
written request for approval is received by the party whose approval is being
requested the other party and Escrow Agent. Escrow Agent shall not be required
to take any action for which approval of Buyer and/or Seller has been sought
unless such approval has been received. No notice by Buyer or Seller to Escrow
Agent of disapproval of a proposed action shall affect the right of Escrow
Agent to take any action as to which such approval is not required.  

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 REPUBLIC
 TITLE OF TEXAS, INC. (“Escrow Agent”)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ Janine N. Barber

 
	
  

 	
  

 	
  

 	
   Its
 Authorized Agent

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Date: 

 	
 October 12, 2012

 

-40-

BUYER’S BROKER’S AGREEMENT

          1.          For and
in consideration of the foregoing Purchase and Sale Agreement, Buyer and
Venture Commercial Real Estate, LLC (“Buyer’s Broker”), agree that the Buyer’s
Broker shall be entitled to be paid a commission, as its sole compensation for
the Purchase and Sale Agreement and the sale of the Property, in an amount set
forth in a separate agreement. The commission shall be payable only if, as and
when Closing is completed and the Closing payment is paid to Buyer. Buyer’s
Broker agrees that it shall not be entitled to any commission if Seller or
Buyer terminates the Purchase and Sale Agreement or defaults thereunder.  

          2.          Buyer’s
Broker represents and warrants that Buyer’s Broker is a licensed real estate
broker in the State of Texas. 

          3.          Buyer’s
Broker agrees to treat the Purchase and Sale Agreement and the sale of the
Property as confidential. 

          4.          Buyer’s
Broker hereby irrevocably waives any rights Buyer’s Broker may have to file a
lien or other encumbrance of any type against all or any portion of the
Property for payment of Buyer’s Broker’s commission or other compensation. 

          5.          Buyer’s
Broker agrees not to disclose the Purchase Price. 

          IN WITNESS
WHEREOF, the undersigned has executed this Agreement as of the date first above
written. 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Date:
 October 12, 2012.

 	
  

 	
  

 	
  

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 BUYER’S
 BROKER:

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 VENTURE
 COMMERCIAL REAL ESTATE, LLC

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 /s/ John P. Zikas

 
	
  

 	
  

 	
 Name: 

 	
 John P. Zikas

 
	
  

 	
  

 	
 Title:

 	
 Partner

 

-41-

SELLER’S BROKER’S AGREEMENT

          1.          For and
in consideration of the foregoing Purchase and Sale Agreement, Seller and Henry
S. Miller Interests, Inc. (“Seller’s Broker”), agree that the Seller’s Broker
shall be entitled to be paid a commission, as its sole compensation for the
Agreement of Sale and the sale of the Property, in the amount of one percent
(1%) of the Purchase Price. The commission shall be payable only if, as and
when Closing is completed and the Closing payment is paid to Seller. Seller’s
Broker agrees that it shall not be entitled to any commission if Seller or
Buyer terminates the Purchase and Sale Agreement or defaults thereunder.  

          2.          Seller’s
Broker represents and warrants that Seller’s Broker is a licensed real estate
broker in the State of Texas. 

          3.          Seller’s
Broker agrees to treat the Purchase and Sale Agreement and the sale of the
Property as confidential. 

          4.          Seller’s
Broker hereby irrevocably waives any rights Seller’s Broker may have to file a
lien or other encumbrance of any type against all or any portion of the
Property for payment of Seller’s Broker’s commission or other compensation. 

          5.          Seller’s
Broker agrees not to disclose the Purchase Price. 

          IN WITNESS
WHEREOF, the undersigned has executed this Agreement as of the date first above
written. 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Date:
 October 12, 2012.

 	
  

 	
  

 	
  

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 SELLER’S
 BROKER:

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 HENRY S.
 MILLER INTERESTS, INC.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 /s/ Jacqueline Miller Stewart

 
	
  

 	
  

 	
 Name: 

 	
 Jacqueline Miller Stewart

 
	
  

 	
  

 	
 Title:

 	
 President

 

-42-

List of Exhibits

	
  

 	
  

 	
  

 
	
 Exhibit 1.2

 	
  

 	
 Assignment and Assumption Agreement

 
	
 Exhibit 1.3

 	
  

 	
 Assignment and Assumption of Ground Lease

 
	
 Exhibit 1.4

 	
  

 	
 Assigned Existing Agreements

 
	
 Exhibit 1.5

 	
  

 	
 Audit Representation Letter

 
	
 Exhibit 1.6

 	
  

 	
 Bill of Sale

 
	
 Exhibit 1.7

 	
  

 	
 Buyer’s Broker and Buyer’s Participating Brokers

 
	
 Exhibit 1.19

 	
  

 	
 Existing Loan Documents

 
	
 Exhibit 1.21

 	
  

 	
 FIRPTA Certification

 
	
 Exhibit 1.23

 	
  

 	
 Ground Lease Estoppel Letter

 
	
 Exhibit 1.32

 	
  

 	
 Schedule of Major Tenants

 
	
 Exhibit 1.39(a)

 	
  

 	
 Legal Description of Fee Parcel

 
	
 Exhibit 1.39(b)

 	
  

 	
 Legal Description of Leasehold Parcel

 
	
 Exhibit 1.40

 	
  

 	
 Rent Roll

 
	
 Exhibit 1.46

 	
  

 	
 Special Warranty Deed

 
	
 Exhibit 1.48

 	
  

 	
 Tenant Estoppel Letter

 
	
 Exhibit 1.50

 	
  

 	
 Tenant Notice

 
	
 Exhibit 1.56

 	
  

 	
 Update Certificate

 
	
 Exhibit 4(a)

 	
  

 	
 Tenant Inducement Costs and Leasing Commissions

 
	
 Exhibit 5(a)(ii)

 	
  

 	
 Rent Arrearages

 
	
 Exhibit 6(a)(iv)

 	
  

 	
 Litigation

 
	
 Exhibit 20(i)

 	
  

 	
 Personal Property

 

-43-

EXHIBIT 1.2

Assignment and Assumption Agreement

	
  

 	
  

 	
  

 
	
 THE STATE OF TEXAS

 	
 §

 	
  

 
	
  

 	
 §

 	
 KNOW ALL MEN BY THESE PRESENTS:

 
	
 COUNTY OF DALLAS

 	
 §

 	
  

 

          THAT,
PRESTON ROYAL REALTY COMPANY, a Texas joint venture (“Assignor”), hereby
transfers, assigns and sets over unto ____________ ____________(“Assignee”), all of Assignor’s right, title
and interest, if any, in and to any and all Existing Leases and Assigned
Existing Agreements set forth on Schedule 1 attached hereto and made a part
hereof (collectively, the “Assigned Contracts”), and to the extent
assignable without expense to Assignor, the interest of Assignor in and to
tenant lease files and correspondence relating to the Existing Leases, plans
and specifications with respect to the Property, promotional materials with
respect to the leasing of space within the Property, warranties and guaranties
relating to any of the other property to be conveyed pursuant to the Purchase
and Sale Agreement (as hereinafter defined), licenses and permits relating to
the Property, and all other property to be conveyed pursuant to the Purchase
and Sale Agreement, all as defined in that certain Purchase and Sale Agreement
(the “Purchase and Sale Agreement”) dated as of October ___, 2012,
between Assignor and Assignee.

          TO
HAVE AND TO HOLD the Assigned Contracts, subject to all applicable exceptions
(collectively, the “Permitted Exceptions”) set forth in that
certain Special Warranty Deed and Assignment and Assumption of Ground Lease,
each dated of even date hereof executed by Assignor to Assignee, together with
any and all security and other tenant deposits and rights and appurtenances
thereto in anywise belonging to Assignor, unto Assignee, its successors, legal
representatives and assigns FOREVER.

          Except
as otherwise expressly provided in Section 4(a) of the Purchase and Sale
Agreement, Assignor agrees to reimburse Assignee for any loss, cost, damage or
expense arising from or in connection with (a) any liabilities or obligations
of the landlord and/or owner under the Assigned Contracts, including, without
limitation, any liability for the payment of leasing or other commissions
attributable thereto, arising during Assignor’s period of ownership (but not
prior thereto), and (b) security and other tenant deposits not transferred to
Assignee, and Assignor shall be solely liable for such liabilities and
obligations.

          Except
as otherwise expressly provided in Section 4(a) of the Purchase and Sale
Agreement, Assignee assumes all Assignor’s obligations and liabilities under
the Assigned Contracts arising from and after the date hereof, acknowledges
receipt and sole liability for the return of all security and other tenant
deposits (to the extent delivered by Assignor to Assignee), and agrees to
reimburse Assignor for any loss, cost, damage or expense arising from or in
connection with any liabilities or obligations of the landlord and/or owner
under the Assigned Contracts, including any liability for the payment of
leasing or other commissions attributable thereto, arising from and after the
date hereof, and Assignee shall be solely liable for such liabilities and
obligations. This instrument may be executed in multiple counterparts, each of
which shall be deemed an original but together shall constitute one and the same
instrument.

-44-

          IN
WITNESS WHEREOF, this instrument has been executed as of (but not necessarily
on) this ___ day of _________________, 2012.

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 ASSIGNOR:

 	
  

 	
  

 
	
  

 
	
  

 	
 PRESTON ROYAL REALTY COMPANY, 

 	
  

 
	
  

 	
 a Texas joint venture

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 SC Preston Royal, Ltd.,

 	
  

 
	
  

 	
  

 	
 a Texas limited partnership,

 	
  

 
	
  

 	
  

 	
 Joint Venturer

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 SC Preston Royal GP, Inc.,

 	
  

 
	
  

 	
  

 	
  

 	
 a Texas corporation,

 	
  

 
	
  

 	
  

 	
  

 	
 Managing Partner

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
        Jacqueline Miller Stewart,

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
        Vice President

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 ASSIGNEE:

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	 

 	
  

 
	
  

 	
 Name:

 	
  

 
	
  

 	
 Title:

 	
  

 

-45-

SCHEDULE 1

List of Existing Leases and
Assigned Existing Agreements

-46-

EXHIBIT 1.3

Assignment and Assumption of Ground Lease

	
  

 	
  

 	
  

 
	
 THE STATE OF
 TEXAS

 	
 § 

 	
  

 
	
  

 	
 §

 	
 KNOW ALL MEN
 BY THESE PRESENTS:

 
	
 COUNTY OF
 DALLAS

 	
 §

 	
  

 

          THIS
ASSIGNMENT AND ASSUMPTION OF GROUND LEASE (this “Agreement”) is made as
of the ________ day of __________, 2012, by and between PRESTON ROYAL REALTY
COMPANY, a Texas joint venture (“Assignor”) and ___________________, a
______________________ (“Assignee”). 

RECITALS

          WHEREAS,
Assignor has succeeded to the leasehold interest of the lessee under that
certain Agreement of Lease (the “Ground Lease”) more particularly
described on Exhibit A attached hereto and made a part hereof for all purposes,
covering certain real property (the “Property”) in Dallas County, Texas,
more particularly described on Exhibit B attached hereto and made a part
hereof for all purposes; 

          WHEREAS,
the Property is subject to those matters more particularly described in Exhibit
C attached hereto and made a part hereof for all purposes (but only if and
to the extent currently enforced and applicable) (collectively, the “Permitted
Exceptions”); and 

          WHEREAS,
Assignor desires to assign Assignor’s leasehold interest under the Ground Lease
to Assignee, and Assignee desires to accept such assignment, on the terms and
conditions hereinafter set forth. 

AGREEMENT

          NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged by the parties hereto, Assignor by these presents
does hereby SELL, ASSIGN, TRANSFER and CONVEY unto Assignee, its successors and
assigns, Assignor’s right, title and interest in and to the Ground Lease,
together with Assignor’s right, title and interest in and to all buildings,
improvements, fixtures and personal property, owned or leased by Assignor,
situated on the Property. 

          TO
HAVE AND TO HOLD, the same, together with all and singular the rights,
privileges, appurtenances and immunities thereto belonging or in otherwise
appertaining onto Assignee and Assignee’s successors and assigns forever,
Assignor hereby covenanting that Assignor’s right, title and interest in and to
the Ground Lease is free and clear from any encumbrance done or suffered by
Assignor other than the Permitted Exceptions; and that Assignor will warrant
and defend the title to be Asignor’s right, title and interest in and to the
Ground Lease onto Assignee and Assignee’s successors and assigns forever,
against the lawful claims and demands of all persons claiming by, through or
under Assignor, but not otherwise. 

-47-

          Assignee,
by its acceptance hereof, hereby assumes and promises to pay and perform all
covenants, agreements and obligations of Assignor as lessee under the Ground
Lease from and after the date hereof. Without limiting the generality of the
foregoing, Assignee hereby assumes and agrees to pay ad valorem real estate
taxes and assessments with respect to the 2013 calendar year and subsequent
calendar years, not yet due and payable, each to the extent attributable to all
or any portion of the Property. 

          IN
WITNESS WHEREOF, this Agreement has been executed as of the day and year first
written above. 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 ASSIGNOR:

 	
  

 
	
  

 	
  

 
	
  

 	
 PRESTON
 ROYAL REALTY COMPANY,

 a Texas joint venture

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 SC Preston
 Royal, Ltd.,

 a Texas limited partnership,

 Joint Venturer

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 SC Preston
 Royal GP, Inc.,

 a Texas corporation,

 Managing Partner

 

	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
 Jacqueline
 Miller Stewart,

 Vice President

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 ASSIGNEE:

 	
  

 
	
  

 	 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
 Name:

 
	
  

 	
 Title:

 

-48-

	
  

 	
  

 	
  

 
	
  

 	
 EXHIBIT 1.4

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Assigned Existing Agreements 

 	
  

 
	
  

 	
  

 	
  

 

Waste Management of Texas
Inc.

Dallas Valet Services, Inc.

Ambius LLC 

G Systems Pest Management 

Maintenance of America, Inc.

Sylvania Lighting Services
Corp.

The Landscape Partners 

Whelan Security Co.

-49-

	
  

 	
  

 	
  

 
	
  

 	
 EXHIBIT 1.5

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Audit
 Representation Letter 

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 (Acquisition
 Completion Date)

 	
  

 

Dear Sirs: 

We are writing at your
request to confirm our understanding that your audit of the shopping center
operations of “_______________________” for the twelve months ended
________________, was made for the purpose of complying with the Securities and
Exchange Commission Regulation S-X, subsection 210.3-14 “Special Instructions
for Real Estate Operations to Be Acquired”. In connection with your audit we
confirm, to the best of our knowledge and belief, the following representations
made to you during your audit:

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 1.

 	
  

 	
 We have made available to
 you all financial records and related data for the period under audit. We
 acknowledge that we are responsible for providing a complete set of financial
 records and related data sufficient to make a determination of the shopping
 center operations for the twelve month period ended ____________________. 

 
	
  

 	
  

 	
  

 
	
 2.

 	
  

 	
 There have been no
 undisclosed:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  

 	
 Irregularities involving
 any member of management or employees who have significant roles in the
 internal control structure.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  

 	
 Irregularities involving
 other persons that could have a material effect on the financial records and
 related data. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 c.

 	
  

 	
 Violations or possible
 violations of laws or regulations, the effects of which should be considered
 for disclosure in the financial records and related data.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 3.

 	
  

 	
 There are no undisclosed:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
  

 	
 Unasserted claims or
 assessments that our lawyers have advised us are probable of assertion and
 must be disclosed in accordance with Statement of Financial Accounting
 Standards No. 5 (SFAS No.5).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
  

 	
 Material gain or loss
 contingencies (including oral and written guarantees) that are required to be
 accrued or disclosed by SFAS No. 5. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 c.

 	
  

 	
 Material transactions that
 have not been properly recorded in the financial records and related data. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 d.

 	
  

 	
 Material undisclosed
 related party transactions and related amounts receivable or payable,
 including sales, purchases, loans, transfers, leasing arrangements, and
 guarantees. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 e.

 	
  

 	
 Events that have occurred
 subsequent to the audit period that would require adjustment to or disclosure
 in the financial records and related data. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 4.

 	
  

 	
 All aspects of contractual
 agreements that would have a material effect on the financial records and
 related data have been complied with.

 

-50-

To our knowledge and belief,
no events have occurred subsequent to December 31, 2012, and through the date
this letter is signed that would require adjustment to or disclosure in the
Financial Statements. Notwithstanding
anything herein or otherwise to the contrary, this letter has been delivered
without recourse to the undersigned and in the event of any errors or
inconsistencies, you agree not to seek recourse against us (or our partners,
officers, employees, agents or advisors) for any loss, cost expense, liability
or claim you may suffer or incur as a result thereof. This letter has been delivered
solely, as an accommodation to Buyer and, as a result, is without consideration.

Very truly yours, 

“Seller/Management” 

-51-

EXHIBIT 1.6

Bill
of Sale

          THIS
BILL OF SALE is made as of the ____ day of ____________, 2012, from PRESTON
ROYAL REALTY COMPANY, a Texas joint venture (“Seller”), to __________________
(“Buyer”).  

RECITALS:

          WHEREAS,
contemporaneously with the execution and deliver of this Bill of Sale, Seller
has sold and conveyed to Buyer all of Seller’s right, title and interest and
estate in and to the real property described in Exhibit “A” attached hereto and
made a part hereof and all buildings, structures and improvements located
thereon by Special Warranty Deed and Assignment and Assumption of Ground Lease,
each dated of even date herewith (all of such buildings, structures,
improvements and interests in real property collectively hereinafter referred
to as the “Real Property”); and  

          WHEREAS,
as a part of the consideration for the conveyance of the Real Property, Seller
has agreed to convey to Buyer the items of personal property described below
which are owned by Seller and located in, on and used in connection with, the
Real Property; 

          NOW
THEREFORE, in consideration of the sum of $10.00 and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged,
Seller does hereby (a) sell, assign, and convey to Buyer all the personal
property described on Exhibit “B” (whether or not any of the items
listed on Exhibit “B” constitute “personal property” or “fixtures” as a matter
of state law) attached hereto and incorporated herein by reference (collectively
the “Personal Property”), and (b) quit claim and release to Buyer, to
the extent existing and assignable, Seller’s right, title and interest (if any)
in and to any personal property, in the possession of Seller which directly
relate to the Real Property, subject in both cases to matters of public record
and to rights of tenants under written leases in effect on the date hereof.  

          This
Bill of Sale shall be binding upon and shall inure to the benefit of Seller,
Buyer and their respective successors and assigns. 

          Seller
represents and warrants that it has not transferred or otherwise encumbered
Seller’s interest in the Personal Property. 

          This
Bill of Sale shall be governed by and construed in accordance with the laws of the
State of Texas. 

          NOTWITHSTANDING
ANYTHING CONTAINED IN THIS BILL OF SALE TO THE CONTRARY, THIS BILL OF SALE IS
SUBJECT TO ALL DISCLAIMERS AND QUALIFICATIONS BY SELLER AND ALL ENCUMBRANCES
SET FORTH IN THE PURCHASE AND SALE AGREEMENT DATED AS OF OCTOBER ___, 2012,
WITH RESPECT TO THE PERSONAL PROPERTY, AND SUCH DISCLAIMERS, QUALIFICATIONS AND
ENCUMBRANCES ARE HEREBY INCORPORATED HEREIN BY REFERENCE AND MADE A PART
HEREOF. 

-52-

          IN WITNESS
WHEREOF, Seller has caused this Bill of Sale to be duly signed as of the day
and year first written above. 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 PRESTON ROYAL REALTY COMPANY,

 
	
  

 	
 a Texas joint venture

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 SC Preston Royal, Ltd.,

 
	
  

 	
  

 	
 a Texas limited partnership,

 
	
  

 	
  

 	
 Joint Venturer

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 SC Preston Royal GP, Inc.,

 
	
  

 	
  

 	
  

 	
 a Texas corporation,

 
	
  

 	
  

 	
  

 	
 Managing Partner

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  Jacqueline Miller Stewart,

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  Vice President

 	
  

 

-53-

Exhibit “A”

Legal
Description

-54-

Exhibit
“B”

All of Seller’s right,
title and interest in and to (a) sprinkler, plumbing, heating,
air-conditioning, electric power or lighting, incinerating, ventilating and
cooling systems, with each of their respective appurtenant furnaces, boilers,
engines, motors, dynamos, radiators, pipes, wiring and other apparatus,
equipment and fixtures, elevators, partitions, fire prevention and
extinguishing systems located in or on the Improvements, (b) all plans,
drawings, specifications, soil test reports, environmental reports, market studies,
surveys and similar documentation, if any, owned by or in the possession of
Seller with respect to the Real Property and any proposed improvements to the
Real Property, (c) other tangible personal property used in connection with the
ownership or operation of the Improvements, and (d) all trade names,
franchises, licenses, permits, easements, development rights and approvals,
deposits, credits, petroleum and mineral interests and royalties, air and water
rights, construction and product warranties, the Leases (including all security
deposits and guarantees given with respect thereto), and all other intangibles
owned or used by or for the benefit of Seller in connection with the Real
Property. 

-55-

EXHIBIT 1.7

Buyer’s Broker and Buyer’s Participating
Brokers

	
  

 	
  

 	
  

 	
  

 
	
 Buyer’s

 	
 Broker:

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 	
 Venture
 Commercial Real Estate, LLC

 
	
  

 	
 Attn:

 	
  

 	
 John Zikos

 
	
  

 	
 Address:

 	
  

 	
 8235 Douglas
 Avenue, Suite 720

 
	
  

 	
  

 	
  

 	
 Dallas, TX
 75225

 
	
  

 	
 Phone
 Number:

 	
  

 	
 214-378-1212

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Fax Number:

 	
  

 	
 214-

 

Buyer’s Participating Brokers: None 

-56-

EXHIBIT 1.19

Existing Loan Documents

	
  

 	
  

 
	
 1.

 	
 Loan Application, dated January 16, 2006, made and entered into by
 and between Nationwide Life Insurance Company, an Ohio corporation
 (“Lender”), and Preston Royal, with respect to a loan (the “Loan”).

 
	
  

 	
  

 
	
 2.

 	
 Deed of Trust, Mortgage and Security Agreement, dated January 19,
 2006, executed and delivered by Preston Royal in favor of Lender, recorded
 January 19, 2006, as Document No. 200600021971, in the Dallas County Records,
 with respect to the Loan.

 
	
  

 	
  

 
	
 3.

 	
 Assignment of Leases, Rents and Profits, dated January 19, 2006
 executed and delivered by Preston royal in favor of Lender, recorded January
 19, 2006, as Document No. 200600021972, in the Dallas County Records, with
 respect to the Loan.

 
	
  

 	
  

 
	
 4.

 	
 UCC Financing Statement, undated, unexecuted, naming Preston Royal as
 debtor, for the benefit of Lender, as secured party, recorded (i) January 19,
 2006, as Document No. 200600021973, in the Dallas County Records;
 and (ii) ___________, 2006, as Document No. ___________ with the Secretary of State of
 Texas.

 
	
  

 	
  

 
	
 5.

 	
 Note, dated January 19, 2006, executed and delivered by Preston
 Royal, payable to the order of Lender in the original principal amount of
 $11,000,000.00, with respect to the Loan.

 
	
  

 	
  

 
	
 6.

 	
 Note, dated January 19, 2006, executed and delivered by Preston
 royal, payable to the order of Lender in the original principal amount of
 $5,050,000.00, with respect to the Loan.

 
	
  

 	
  

 
	
 7.

 	
 Indemnity Agreement, dated January 19, 2006, executed and delivered
 by Preston Royal, as indemnitors, to Lender, relating to certain
 indemnification obligations of Preston Royal with respect to the
 environmental condition of the Property.

 
	
  

 	
  

 
	
 8.

 	
 Certificate of Non-Foreign Status, dated January 19, 2006, executed
 and delivered by Preston Royal with respect to the Loan.

 
	
  

 	
  

 
	
 9.

 	
 Notice and Agreement, dated January 19, 2006, made and entered into
 by and between Preston Royal and Lender, with respect to the Loan.

 
	
  

 	
  

 
	
 10.

 	
 Subordination of Management Agreement to Deed of Trust, Mortgage and
 Security Agreement, dated January 19, 2006, executed and delivered by Henry
 S. Miller Interests, Inc. (“HSMI”), with respect to the Loan; together with
 Management Agreement, dated December 26, 1990, made and entered into by and
 between Henry S. Miller, Jr., as agent, and HSMI, as contractor.

 
	
  

 	
  

 
	
 11.

 	
 Borrower’s Certificate, dated January 19, 2006, executed and
 delivered by Preston Royal with respect to the Loan.

 

-57-

	
  

 	
  

 
	
 12.

 	
 Escrow Waiver Letter, undated, addressed and delivered by Lender to
 Preston Royal, with respect to the waiver of taxes, assessments and insurance
 premiums.

 
	
  

 	
  

 
	
 13.

 	
 Side Letter, dated January 19, 2006, executed and delivered by
 Preston Royal to Lender, with respect to licensing and regulation of the
 Property.

 
	
  

 	
  

 
	
 14.

 	
 Side Letter, dated January 19, 2006, executed and delivered by
 Preston Royal to Lender, with respect to application of insurance proceeds
 relating to the Property.

 
	
  

 	
  

 
	
 15.

 	
 Opinion Letter, dated January 19, 2006, executed and delivered by
 Kane, Russell, Coleman & Logan, P.C. to Lender, with respect to
 enforceability of the Loan transaction and the authority of the Partnership
 to enter into the Loan transaction.

 
	
  

 	
  

 
	
 16.

 	
 Certificate of Liability Insurance, dated December 12, 2005, produced
 by Unimark Insurance Agency, Inc., as agent for Philadelphia Indemnity
 Insurance Company, naming Henry S. Miller Interests, Inc. as the insured, and
 naming Lender as additional insured, with respect to commercial general
 liability insurance.

 
	
  

 	
  

 
	
 17.

 	
 UCC Searches, prepared by Capital Services, Inc. for Mixon
 Development Company, Inc. a Texas corporation, formerly known as Preston
 Royal Shopping Center, Preston Royal, and Preston Royal Shopping Center,
 Inc., with respect to the Property.

 

-58-

EXHIBIT 1.21

FIRPTA Certification

          Section
1445 of the Internal Revenue Code provides that a transferee of a U.S. real
property interest must withhold tax if the transferor is a foreign person. To
inform the transferee that withholding of tax is not required upon the
disposition of a U.S. real property interest by the undersigned (“Transferor”),
the undersigned hereby certifies the following on behalf of Transferor:

	
  

 	
  

 	
  

 
	
           1.       Transferor
 is not a foreign corporation, foreign partnership, foreign trust, or foreign
 estate (as those terms are defined in the Internal Revenue Code and Income
 Tax Regulations);

 
	
  

 
	
           2.       Transferor
 is not a disregarded entity as defined in Section 1.1445-2(b)(2)(iii) of the
 Income Tax Regulations.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Transferor’s U.S. taxpayer
 identification number is 75-1002194; and

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 Transferor’s office
 address is:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5959 Royal Lane, Suite
 634-205

 
	
  

 	
  

 	
 Dallas, Texas 75230.

 
	
  

 	
  

 	
  

 
	
           Transferor
 understand that the above information may be disclosed to the Internal
 Revenue Service by the transferee and that any false statement contained
 herein could be punished by fine, imprisonment, or both.

 
	
  

 
	
           Under
 penalties of perjury, I declare that I have examined this instrument and to
 the best of my knowledge and belief it is true, correct, and complete, and I
 further declare that I have authority to sign this document on behalf of
 Transferor.

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 PRESTON ROYAL REALTY
 COMPANY, 

 
	
  

 	
 a Texas joint venture

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 SC Preston Royal, Ltd.,

 
	
  

 	
  

 	
 a Texas limited
 partnership,

 
	
  

 	
  

 	
 Joint Venturer

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 SC Preston Royal GP, Inc.,

 
	
  

 	
  

 	
  

 	
 a Texas corporation,

 
	
  

 	
  

 	
  

 	
 Managing Partner

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
  

 	
  

 	 

 
	
  

 	
  

 	
  

 	
  

 	
 Jacqueline Miller Stewart,

 
	
  

 	
  

 	
  

 	
  

 	
 Vice President

 

-59-

EXHIBIT 1.23

Form of Ground Lease Estoppel Letter

GROUND LEASE ESTOPPEL LETTER

          This
Ground Lease Estoppel Letter (this “Agreement”) is entered into as of
_____________, 2012, by and between Mixon Investment Company, Inc., f/k/a
Preston Royal Shopping Center, Inc. (“Landlord”), Preston Royal Realty
Company, a Texas joint venture (“Tenant”) and _____________________ (“Tenant’s
Assignee”).

RECITALS

          A          Landlord
is the owner of certain real property located in the County of Dallas, State of
Texas, and more particularly described in attached Exhibit A (the “Premises”)
and the Landlord under that certain Agreement of Lease (the “Lease”)
described on Exhibit B attached hereto and incorporated herein.

          B.          Tenant
desires to assign Tenant’s leasehold interest under the Lease to Tenant’s
Assignee.

          C.          Landlord
is willing to consent to the transfer of Tenant’s leasehold interest under the
Lease on the terms and conditions set forth in this Agreement.

AGREEMENT:

          NOW
THEREFORE, in consideration of the premises and other mutual valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto agree as follows:

          1.          Subject
to the terms and conditions of this Agreement, Landlord hereby consents to the
assignment of Tenant’s leasehold interest under the Lease to Tenant’s Assignee.

          2.          Tenant’s
Assignee agrees to assume and perform Tenant’s obligations under the Lease from
and after the date of the Tenant’s Assignee’s assumption of Tenant’s leasehold
interest under the Lease.

          3.          Tenant
agrees to promptly deliver an executed copy of such assignment of Tenant’s
leasehold interest under the Ground Lease to Landlord. From and after the date
of such assignment, Landlord agrees to release Tenant from liability accruing
after the date of such assignment.

          4.          As
an inducement to Tenant’s Assignee to acquire the Premises and to agree, assume
and perform Tenant’s obligation under the Ground Lease, Landlord hereby
certifies to Tenant and Tenant’s Assignee the following:

-60-

	
  

 	
  

 
	
  

 	
           (a)          Landlord
 is and remains the landlord under the Lease. Landlord is the fee simple owner
 of the Premises as described in Exhibit A hereto free and clear of all
 deed of trust liens and security interests.

 
	
  

 	
  

 
	
  

 	
           (b)          The
 Lease, as described on Exhibit B hereto, is in full force and effect,
 represents the entire agreement between the parties and has not been amended,
 modified, supplemented, cancelled or superseded, either orally or in writing.
 The original term of the Lease commenced on January 12, 1965, and the Lease
 will expire on January 11, 2040. 

 
	
  

 	
  

 
	
  

 	
           (c)          All
 rent and other charges which Tenant is required to pay either to Landlord or
 to third parties under the Lease have been fully and promptly paid through
 _______________, 2012. The total amount of rent currently due and payable
 under the Lease is $30,000 per month.

 
	
  

 	
  

 
	
  

 	
           (d)          As
 of the date hereof. Landlord and, to the knowledge of Landlord, Tenant have
 fully and promptly performed and observed all covenants, agreements and
 obligations on their part to be performed under the Lease. No notice of
 default or notice of termination of the Lease has been delivered by Landlord
 to Tenant and to Landlord’s knowledge no default or event which with the
 passage of time or giving of nonce or both could constitute a default exists
 under the Lease.

 
	
  

 	
  

 
	
  

 	
           (e)          Tenant
 is and remains the sole tenant under the Lease and Landlord has not received
 notice of and has no knowledge of any assignment, transfer, mortgage or
 hypothecation of Tenant’s interest under the Lease except as security for a
 loan from Nationwide Life Insurance Company to Tenant more particularly
 described in the Estoppel and Recognition Agreement (as defined on Exhibit
 B).

 
	
  

 	
  

 
	
  

 	
           (f)          No
 bankruptcy proceedings, whether voluntary or otherwise, are pending, or to
 Landlord’s knowledge, threatened, against Landlord.

 
	
  

 	
  

 
	
  

 	
           (g)          As
 of the date hereof; all conditions and obligations under the Lease to be
 satisfied or performed by Tenant and Landlord have been satisfied or
 performed. As of the date hereof, Landlord does not assert, and is not
 entitled to assert, any claim against Tenant or any defense to or offset
 against the enforcement of the Lease by Tenant. As of the date hereof, Tenant
 does not assert, and is not entitled to assert, any claim against Landlord or
 any defense to or offset against the enforcement of the Lease by Landlord.

 
	
  

 	
  

 
	
           5.       Any
 notice or communication required or permitted hereunder shall be in writing,
 and shall be given or delivered: (a) by United States mail, registered or
 certified, postage fully prepaid, return receipt requested, or (b) by
 recognized courier service or recognized overnight delivery service; and in
 any event addressed to the party for which it is intended at its address set
 forth below:

 

	
  

 	
  

 	
  

 
	
  

 	
 Landlord:

 	
  

 
	
  

 	
 Mixon Investment Company,
 Inc.

 
	
  

 	
 P.O. Box 670038

 	
  

 
	
  

 	
 Dallas, Texas 75367

 	
  

 

-61-

	
  

 	
  

 	
  

 
	
  

 	
 Tenant:

 	
  

 
	
  

 	
 Preston Royal Realty
 Company

 	
  

 
	
  

 	
 5959 Royal Lane, Suite
 634-205

 	
  

 
	
  

 	
 Dallas, Texas 75230

 	
  

 
	
  

 	
 Tenant’s Assignee:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 

Such
addresses may be changed by notice to the other parties given in the same
manner as provided herein, such changes to be effective only upon receipt of
notice thereof.

          6.       This
Agreement and the exhibits hereto, which are incorporated herein by this
reference, shall constitute the entire agreement between the parties with
respect to the subject matter hereof. In the case of a conflict between the
terms of the Lease and the terms of this Agreement, the terms of this Agreement
shall control. This Agreement may not be changed or modified orally or in any
manner other than by any agreement in writing signed by the parties hereto. No
waiver of any of the terms or conditions of this Agreement and no waiver of any
default or failure of compliance shall be effective unless in writing and no
waiver furnished in writing shall be deemed to be a waiver of any other term or
provision or any future condition of this Agreement. Time is of the essence of
this Agreement and the performance of each of the covenants and agreements
herein. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns.

          IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

 (Remainder
of page intentionally left blank)

-62-

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LANDLORD:

 
	
  

 	
  

 
	
  

 	
 Mixon Investment Company,
 Inc., f/k/a

 
	
  

 	
 Preston Royal Realty
 Shopping Center, Inc.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	 
	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	 

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	 

 
	
  

 	
  

 
	
 STATE OF _______________

 	
 )

 
	
  

 	
 ) SS:

 
	
 COUNTY OF _____________

 	
 )

 

          This
instrument was acknowledged before me on ___________, 2012, by
_________________, of Mixon Investment Company, Inc. a _____________
corporation, f/k/a Preston Royal Realty Shopping Center, Inc., on behalf of
said corporation.

	
  

 	
  

 	
  

 
	
  

 	
  

 	 

 
	
  

 	
  

 	
 Notary Public, State of
 Texas

 
	
 My Commission Expires:

 	
  

 	
  

 
	
  

 	
  

 	 

 
	
  

 	
  

 	
 Printed/Typed Name of
 Notary

 
	 

 	
  

 	
  

 

-63-

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
TENANT:
 
	
  

 
	
  

 	
 Preston Royal Realty
 Company,

 
	
  

 	
 a Texas joint venture

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 SC Preston Royal, Ltd.,

 
	
  

 	
  

 	
 a Texas limited
 partnership,

 
	
  

 	
  

 	
 Joint Venturer

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 SC Preston Royal GP, Inc.,

 
	
  

 	
  

 	
  

 	
 a Texas corporation,

 
	
  

 	
  

 	
  

 	
 Managing Partner

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
  

 	
  

 	 

 
	
  

 	
  

 	
  

 	
  

 	
 Jacqueline Miller Stewart,

 
	
  

 	
  

 	
  

 	
  

 	
 Vice President

 

	
  

 	
  

 
	
 STATE OF ____________________

 	
 )

 
	
  

 	
 ) SS:

 
	
 COUNTY OF __________________

 	
 )

 

          This
instrument was acknowledged before me on ______________, 2012, by Jacqueline
Miller Stewart, Vice President of SC Preston Royal GP, Inc., a Texas
corporation, the managing partner of SC Preston Royal, Ltd., a Texas limited
partnership, a joint venturer in Preston Royal Realty Company, a Texas joint
venture, on behalf of said joint venture.

	
  

 	
  

 	
  

 
	
  

 	
  

 	 

 
	
  

 	
  

 	
 Notary Public, State of
 Texas

 
	
  

 
	
 My Commission Expires:

 	
  

 	
  

 
	
  

 	
  

 	
 Printed/Typed Name of
 Notary

 
	 

 	
  

 	
  

 

-64-

TENANT’S ASSIGNEE:

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 	
  

 
	
  

 	 

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	
  

 	 

 
	
  

 	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	
  

 	 

 
	
  

 	
  

 	
  

 
	
 STATE OF _______________          )

 	
  

 	
  

 
	
                                                 )
 SS:

 	
  

 	
  

 
	
 COUNTY OF
 _____________          )

 	
  

 	
  

 

          This
instrument was acknowledged before me on ___________, 2012, by
_________________, of.___________________________________.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	 

 	
  

 
	
  

 	
  

 	
 Notary Public, State of
 ______________

 
	
  

 
	
 My Commission Expires:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	 

 	
  

 
	
  

 	
  

 	
 Printed/Typed Name of
 Notary

 	
  

 
	
  

 	
  

 	
  

 	
  

 

-65-

EXHIBIT A

BEING
a tract of land situated in City Block 5500, City of Dallas, Dallas County,
Texas and being part of the land conveyed to Preston Royal Shopping Center,
Inc. by deed recorded in Volume 3689, Page 80 of the Deed Records of Dallas
County, Texas, and being more particularly described as follows:

BEGINNING
at an “X” set for corner at the point of intersection of the Easterly
right-of-way line of Preston Road (100’ R0O.W.) with the Southerly line of a
15’ alley;

THENCE
South 89 degrees 52 minutes 00 seconds East, along the Southerly line of said
15’ alley, a distance of 362.48 feet to an iron pin set for corner at the
beginning of a curve to the right, having a central angle of 44 degrees 52
minutes 00 seconds, a radius of 44.50 feet and a chord bearing South 67 degrees
26 minutes 00 seconds East, 33.96 feet;

THENCE
Southeasterly, along said curve to the right and continuing along the Southerly
line of said alley, an arc distance of 34.85 feet to an iron pin set for
corner,

THENCE
South 45 degrees 00 minutes 00 seconds East, along the Southwesterly line of
said 15’ alley, a distance of 286.12 feet to an iron pin set for corner at the
beginning of a curve to the right having a central angle of 45 degrees 08
minutes 00 seconds, a radius of 50.00 feet and a chord bearing South 22 degrees
26 minutes 00 seconds East, 38.38 feet;

THENCE
Southeasterly along said curve to the right and continuing along the
Southwesterly line of said 15’ alley, an arc distance of 39.39 feet to an iron
pin set for corner;

THENCE
South 00 degrees 08 minutes 00 seconds West, along the Westerly line of said
15’ alley, a distance of 359.71 feet to an “X” in concrete set for corner;

THENCE
North 89 degrees 52 minutes 00 seconds West, along the Northerly right-of-way
line of Royal Lane (80’ R.O. W.), a distance of 485.00 feet to an “X” in
concrete set for corner;

THENCE
North, along the Easterly line of a tract of land conveyed to Humble Oil and
Refining Company by deed recorded in Volume 71123, Page 14 of the Deed Records
of Dallas County, a distance of 155.00 feet to an “X” in concrete set for
corner;

THENCE
North 89 degrees 52 minutes 00 seconds West, along the Northerly line of said
Humble Oil Tract, a distance of 125.00 feet to an “X” in concrete set for
corner;

THENCE
North, along the Easterly right-of-way line of Preston Road, a distance of
455.00 feet to the point of beginning and containing 7.497 acres of land, more
or less. (326,585 sq. ft.)

-66-

EXHIBIT B

Agreement
of Lease dated November 3, 1964, by and between Landlord and Trammell Crow and
Henry S. Miller, as predecessors-in-interest to Tenant, a memorandum of which
is recorded in Volume 482, Page 931, Deed Records, Dallas County, Texas, as
amended by (i) letter agreement dated January 9, 1990, made and entered into by
and between Landlord, as landlord, and Henry S. Miller, Jr., an individual,
Henri L. Bromberg, Jr., an individual, Edward S. Bromberg, an individual,
Louise W. Kahn, individually and as Independent Executrix of the Estate of
Edmund J. Kahn, deceased, Dan R. Cullum, an individual, Betsy Cullum Bolin, an
individual, Robert Brooks Cullum, Jr., an individual, and Sally Cullum Holmes,
an individual, collectively, as tenant; (ii) letter agreement dated September
22, 1993. made and entered into by and between Landlord, as landlord, and Henry
S. Miller, Jr., on behalf of tenant; (iii) First Amendment to Short Form Lease
dated January 19, 2006, by and between Ground Lessor, as landlord, and Seller,
as tenant, recorded as Document No. 20006000211974, Deed Records, Dallas
County, Texas; and (iv) Estoppel and Recognition Agreement dated January 19,
2006, by and among Ground Lessor, Seller and Lender (“Estoppel and
Recognition Agreement”).

-67-

EXHIBIT 1.32

Schedule of Major Tenants

	
  

 	
  

 
	
 1.

 	
 Barnes & Noble

 
	
  

 
	
 2.

 	
 Tom Thumb

 
	
  

 
	
 3.

 	
 Dougherty’s Pharmacy

 

-68-

EXHIBIT
1.39(a)

Legal Description of Fee Parcel

BEING
a tract of land situated in City Block 5501, City of Dallas, Dallas County,
Texas and being the same land conveyed
to Hal Winfield Padgett, Jr., by deed recorded in Volume 72185, Page 1637 of
the Deed Records of Dallas County, Texas and being more particularly described
as follows:

BEGINNING
at a P.K. nail set for comer at the point of intersection of the Westerly
right-of-way line of Preston Road
(100’ R.O.W.) with the Southerly line of a 15 foot alley, said P.K. nail being the Northeasterly comer of said Winfield
Tract;

THENCE
South, along the Westerly right-of-way line of Preston Road, a distance of
481.15 feet to a metal “X” found for
comer;

THENCE
North 89 degrees 50 minutes 00 seconds West, a distance of 100.00 feet to a
P.K. nail set for comer;

THENCE
South a distance of 120.00 feet to a metal “X” found for corner;

THENCE
North 89 degrees 50 minutes 00 seconds West, along the Northerly right-of-way
line of Royal Lane (80’ R.O.W.), a
distance of 121.00 feet to a 1/2 inch capped iron pin set for comer;

THENCE
South a distance of 5.00 feet to a 1/2 inch capped iron pin set for corner;

THENCE
North 89 degrees 50 minutes 00 seconds West, along the Northerly right-of-way
line of Royal Lane (80’ R.O.W.), a
distance of 389.31 feet to an 1/2 inch capped iron pin set for comer;

THENCE
North 00 degrees 02 minutes 25 seconds East, a distance of 609.82 feet to an
1/2 inch capped iron pin set for
corner;

THENCE South 89 degrees
29 minutes 20 seconds East, along the Southerly line of a 15’ alley, a distance
of 609.90 feet to the POINT OF BEGINNING and CONTAINING 8.217 acres of land, more or less.

-69-

EXHIBIT 1.39(b)

Legal Description of Leasehold Parcel

BEING
a tract of land situated in City Block 5500, City of Dallas, Dallas County,
Texas and being part of the land conveyed to Preston Royal Shopping Center,
Inc. by deed recorded in Volume 3689, Page 80 of the Deed Records of Dallas County,
Texas, and being more particularly described as follows:

BEGINNING
at an “X” set for corner at the point of intersection of the Easterly
right-of-way line of Preston Road (100’ R0O.W.) with the Southerly line of a
15’ alley;

THENCE
South 89 degrees 52 minutes 00 seconds East, along the Southerly line of said
15’ alley, a distance of 362.48 feet to an iron pin set for corner at the
beginning of a curve to the right, having a central angle of 44 degrees 52
minutes 00 seconds, a radius of 44.50 feet and a chord bearing South 67 degrees
26 minutes 00 seconds East, 33.96 feet;

THENCE
Southeasterly, along said curve to the right and continuing along the Southerly
line of said alley, an arc distance of 34.85 feet to an iron pin set for
corner,

THENCE
South 45 degrees 00 minutes 00 seconds East, along the Southwesterly line of
said 15’ alley, a distance of 286.12 feet to an iron pin set for corner at the
beginning of a curve to the right having a central angle of 45 degrees 08
minutes 00 seconds, a radius of 50.00 feet and a chord bearing South 22 degrees
26 minutes 00 seconds East, 38.38 feet;

THENCE
Southeasterly along said curve to the right and continuing along the
Southwesterly line of said 15’ alley, an arc distance of 39.39 feet to an iron
pin set for corner;

THENCE
South 00 degrees 08 minutes 00 seconds West, along the Westerly line of said
15’ alley, a distance of 359.71 feet to an “X” in concrete set for corner;

THENCE
North 89 degrees 52 minutes 00 seconds West, along the Northerly right-of-way
line of Royal Lane (80’ R.O. W.), a distance of 485.00 feet to an “X” in
concrete set for corner;

THENCE
North, along the Easterly line of a tract of land conveyed to Humble Oil and
Refining Company by deed recorded in Volume 71123, Page 14 of the Deed Records
of Dallas County, a distance of 155.00 feet to an “X” in concrete set for
corner;

THENCE
North 89 degrees 52 minutes 00 seconds West, along the Northerly line of said
Humble Oil Tract, a distance of 125.00 feet to an “X” in concrete set for
corner;

THENCE North, along the Easterly right-of-way line of Preston Road, a
distance of 455.00 feet to the point of beginning and containing 7.497 acres of
land, more or less. (326,585 sq. ft.)

-70-

EXHIBIT 1.40

Rent Roll

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  Database:

 	
  

 	
 HSMI

 	
  

 	
 Rent
 Roll

 	
  

 	
  

 	
  

 	
  

 	
 Page:

 	
  

 	
 1 

 
	
  Bldg Status:

 	
  

 	
 ALL

 	
  

 	
 Preston
 Royal Shopping Center

 	
  

 	
  

 	
  

 	
  

 	
 Date:

 	
  

 	
 10/10/2012 

 
	
  

 	
  

 	
  

 	
  

 	
 10/10/2012

 	
  

 	
  

 	
  

 	
  

 	
 Time:

 	
  

 	
 12:30 PM 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Bldg Id-Suit Id

 	
  

 	
 Occupant
 Name

 	
  

 	
 Rent Start

 	
  

 	
 Expiration

 	
  

 	
 GLA

 Sqft

 	
  

 	
 Monthly

 Base Rent

 	
  

 	
 Annual

 Rate PSF

 	
  

 	
 Monthly
Cost Recovery

 	
  

 	
 Expense 

 Stop

 	
  

 	
 Monthly 
Other Income

 	
  

 	
 ------------ Future Rent Increases ------------

 
	
 Cat

 	
  

 	
 Date

 	
  

 	
 Monthly Amount

 	
  

 	
 PSF 

 
	
  

 
	
 New Leases

 
	
  

 
	
 0107

 	
  

 	
 -1600

 	
  

 	
 Merge

 	
  

 	
 11/1/2012

 	
  

 	
 10/31/2014

 	
  

 	
 2,154

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -1750

 	
  

 	
 PACE Joint Interests

 	
  

 	
 4/1/2013

 	
  

 	
 3/31/2018

 	
  

 	
 936

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -2600

 	
  

 	
 Hair
 Bar Dallas

 	
  

 	
 11/30/2012

 	
  

 	
 11/30/2017

 	
  

 	
 1,800

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -4900

 	
  

 	
 The
 Toy Maven

 	
  

 	
 11/1/2012

 	
  

 	
 10/31/2022

 	
  

 	
 6,263

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -5400

 	
  

 	
 Premier
 Sports Chiropractic

 	
  

 	
 12/1/2012

 	
  

 	
 11/30/2017

 	
  

 	
 1,190

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 Vacant Suites

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -2500

 	
  

 	
 Vacant

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 2,540

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -2600

 	
  

 	
 Vacant

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 1,800

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -3700

 	
  

 	
 Vacant

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 1,960

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 Occupied Suites 

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -0200

 	
  

 	
 The
 Cobbler

 	
  

 	
 4/1/2008

 	
  

 	
 3/31/2013

 	
  

 	
 1,329

 	
  

 	
 2,658.00

 	
  

 	
 24.00

 	
  

 	
 854.37

 	
  

 	
  

 	
  

 	
 150.75

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -0300

 	
  

 	
 Dougherty’s
 Pharmacy

 	
  

 	
 1/1/1999

 	
  

 	
 12/31/2018

 	
  

 	
 12,093

 	
  

 	
 27,924.08

 	
  

 	
 27.71

 	
  

 	
 7,774.30

 	
  

 	
  

 	
  

 	
 1,082.75

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -0600

 	
  

 	
 Tom
 Thumb #522

 	
  

 	
 12/1/1998

 	
  

 	
 1/31/2024

 	
  

 	
 29,779

 	
  

 	
 23,841.25

 	
  

 	
 9.61

 	
  

 	
 2,026.67

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 12/1/2013

 	
  

 	
 27,267.04

 	
  

 	
 10.99

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 6/1/2014

 	
  

 	
 37,683.71

 	
  

 	
 15.19

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 12/1/2018

 	
  

 	
 41,452.08

 	
  

 	
 16.70

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 12/1/2023

 	
  

 	
 45,597.29

 	
  

 	
 18.37

 
	
  

 
	
 0107

 	
  

 	
 -0650

 	
  

 	
 J. Renee Shoes & More

 	
  

 	
 1/1/2004

 	
  

 	
 1/31/2014

 	
  

 	
 2,881

 	
  

 	
 6,002.08

 	
  

 	
 25.00

 	
  

 	
 1,852.13

 	
  

 	
  

 	
  

 	
 280.08

 	
  

 	
 BRS

 	
  

 	
 2/1/2013

 	
  

 	
 6,122.13

 	
  

 	
 25.50

 
	
  

 
	
 0107

 	
  

 	
 -0700

 	
  

 	
 Chico’s FAS, Inc

 	
  

 	
 9/27/2004

 	
  

 	
 9/30/2014

 	
  

 	
 6,670

 	
  

 	
 18,898.33

 	
  

 	
 34.00

 	
  

 	
 4,150.46

 	
  

 	
  

 	
  

 	
 357.92

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -0800

 	
  

 	
 U.S.P.O. 482270-025

 	
  

 	
 7/1/2009

 	
  

 	
 6/30/2014

 	
  

 	
 4,360

 	
  

 	
 6,703.50

 	
  

 	
 18.45

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -0850

 	
  

 	
 Best
 Thai

 	
  

 	
 10/1/2011

 	
  

 	
 9/30/2016

 	
  

 	
 633

 	
  

 	
 844.00

 	
  

 	
 16.00

 	
  

 	
 406.91

 	
  

 	
  

 	
  

 	
 92.75

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -0900

 	
  

 	
 Dallas
 Summer Musicals, Inc.

 	
  

 	
 9/1/2004

 	
  

 	
 1/31/2012

 	
  

 	
 3,869

 	
  

 	
 2,829.71

 	
  

 	
 8.78

 	
  

 	
 2,487.29

 	
  

 	
  

 	
  

 	
 248.58

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -1200

 	
  

 	
 Barnes & Noble Bookseller

 	
  

 	
 10/19/2005

 	
  

 	
 7/31/2015

 	
  

 	
 25,628

 	
  

 	
 40,625.00

 	
  

 	
 19.02

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -1500

 	
  

 	
 Pinkberry

 	
  

 	
 11/13/2009

 	
  

 	
 11/30/2014

 	
  

 	
 956

 	
  

 	
 2,629.00

 	
  

 	
 33.00

 	
  

 	
 614.56

 	
  

 	
  

 	
  

 	
 119.67

 	
  

 	
 BRS

 	
  

 	
 11/13/2012

 	
  

 	
 2,708.67

 	
  

 	
 34.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 11/13/2013

 	
  

 	
 2,788.33

 	
  

 	
 35.00

 
	
  

 
	
 0107

 	
  

 	
 -1600

 	
  

 	
 Merge

 	
  

 	
 10/20/2007

 	
  

 	
 10/31/2012

 	
  

 	
 2,154

 	
  

 	
 5,026.00

 	
  

 	
 28.00

 	
  

 	
 1,384.73

 	
  

 	
  

 	
  

 	
 219.50

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Database:

 	
  

 	
 HSMI 

 	
  

 	
 Rent
 Roll

 	
  

 	
  

 	
  

 	
  

 	
 Page:

 	
  

 	
 2 

 
	
  Bldg Status:

 	
  

 	
 ALL

 	
  

 	
 Preston
 Royal Shopping Center

 	
  

 	
  

 	
  

 	
  

 	
 Date:

 	
  

 	
 10/10/2012 

 
	
  

 	
  

 	
  

 	
  

 	
 10/10/2012

 	
  

 	
  

 	
  

 	
  

 	
 Time:

 	
  

 	
 12:30 PM 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Bldg Id-Suit Id

 	
  

 	
 Occupant
 Name

 	
  

 	
 Rent Start

 	
  

 	
 Expiration

 	
  

 	
 GLA

 Sqft

 	
  

 	
 Monthly

 Base Rent

 	
  

 	
 Annual

 Rate PSF

 	
  

 	
 Monthly
Cost
 Recovery

 	
  

 	
 Expense 

 Stop

 	
  

 	
 Monthly 
Other Income

 	
  

 	
 ------------ Future Rent Increases ------------

 
	
 Cat

 	
  

 	
 Date

 	
  

 	
 Monthly Amount

 	
  

 	
 PSF 

 
	
  

 
	
 0107

 	
  

 	
 -1700

 	
  

 	
 Deluxe Nail Salon

 	
  

 	
 7/16/2009

 	
  

 	
 7/31/2014

 	
  

 	
 1,937

 	
  

 	
 4,842.50

 	
  

 	
 30.00

 	
  

 	
 1,245.29

 	
  

 	
  

 	
  

 	
 201.42

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -1750

 	
  

 	
 Dynasty Cleaners

 	
  

 	
 11/1/1995

 	
  

 	
 10/31/2012

 	
  

 	
 936

 	
  

 	
 2,145.00

 	
  

 	
  

 	
  

 	
 601.71

 	
  

 	
  

 	
  

 	
 78.00

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -1800

 	
  

 	
 Spec’s Family Partners, Ltd.

 	
  

 	
 6/23/2012

 	
  

 	
 6/30/2022

 	
  

 	
 9,918

 	
  

 	
 23,142.00

 	
  

 	
 28.00

 	
  

 	
 6,376.04

 	
  

 	
  

 	
  

 	
 866.50

 	
  

 	
 BRS

 	
  

 	
 6/23/2017

 	
  

 	
 24,795.00

 	
  

 	
 30.00

 
	
  

 
	
 0107

 	
  

 	
 -1810

 	
  

 	
 Papa John’s USA, Inc.

 	
  

 	
 9/1/2012

 	
  

 	
 8/31/2017

 	
  

 	
 1,460

 	
  

 	
 4,258.33

 	
  

 	
 35.00

 	
  

 	
 934.40

 	
  

 	
  

 	
  

 	
 121.67

 	
  

 	
 BRS

 	
  

 	
 9/1/2013

 	
  

 	
 4,386.08

 	
  

 	
 36.05

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 9/1/2014

 	
  

 	
 4,519.92

 	
  

 	
 37.15

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 9/1/2015

 	
  

 	
 4,653.75

 	
  

 	
 38.25

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 9/1/2016

 	
  

 	
 4,793.67

 	
  

 	
 39.40

 
	
  

 
	
 0107

 	
  

 	
 -1825

 	
  

 	
 Garnett, Phil

 	
  

 	
 1/1/2011

 	
  

 	
 12/31/2015

 	
  

 	
 817

 	
  

 	
 1,497.83

 	
  

 	
 22.00

 	
  

 	
 136.17

 	
  

 	
  

 	
  

 	
 40.00

 	
  

 	
 BRC

 	
  

 	
 1/1/2013

 	
  

 	
 1,565.92

 	
  

 	
 23.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRC

 	
  

 	
 1/1/2014

 	
  

 	
 1,634.00

 	
  

 	
 24.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRC

 	
  

 	
 1/1/2015

 	
  

 	
 1,702.08

 	
  

 	
 25.00

 
	
  

 
	
 0107

 	
  

 	
 -1840

 	
  

 	
 Preston Royal Realty
 Company

 	
  

 	
 12/1/2009

 	
  

 	
 12/31/2010

 	
  

 	
 564

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -1845

 	
  

 	
 Alphabiotics

 	
  

 	
 6/1/2011

 	
  

 	
 5/31/2016

 	
  

 	
 3,120

 	
  

 	
 4,464.20

 	
  

 	
 17.17

 	
  

 	
 520.00

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRC

 	
  

 	
 6/1/2013

 	
  

 	
 4,508.84

 	
  

 	
 17.34

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRC

 	
  

 	
 6/1/2014

 	
  

 	
 4,553.92

 	
  

 	
 17.52

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRC

 	
  

 	
 6/1/2015

 	
  

 	
 4,599.46

 	
  

 	
 17.69

 
	
  

 
	
 0107

 	
  

 	
 -1846

 	
  

 	
 C.H.A.I.

 	
  

 	
 5/1/2011

 	
  

 	
 4/30/2013

 	
  

 	
 1,931

 	
  

 	
 2,816.05

 	
  

 	
 17.50

 	
  

 	
 321.83

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -1847

 	
  

 	
 Eat., Ltd. (Storage)

 	
  

 	
 8/1/2006

 	
  

 	
 6/30/2014

 	
  

 	
 228

 	
  

 	
 200.00

 	
  

 	
 10.53

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -1875

 	
  

 	
 Beautiful Skin by Leah

 	
  

 	
 4/1/2011

 	
  

 	
 3/31/2013

 	
  

 	
 433

 	
  

 	
 532.23

 	
  

 	
 14.75

 	
  

 	
 72.17

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -1882

 	
  

 	
 Purple Cow (office)

 	
  

 	
 10/1/2011

 	
  

 	
 9/30/2014

 	
  

 	
 673

 	
  

 	
 1,037.54

 	
  

 	
 18.50

 	
  

 	
 112.17

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRC

 	
  

 	
 10/1/2013

 	
  

 	
 1,065.58

 	
  

 	
 19.00

 
	
  

 
	
 0107

 	
  

 	
 -1884

 	
  

 	
 Henry S. Miller Interests,
 Inc

 	
  

 	
 12/1/2009

 	
  

 	
 11/30/2014

 	
  

 	
 1,238

 	
  

 	
 1,500.00

 	
  

 	
 14.54

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -1890

 	
  

 	
 New Cingular Wireless PCS

 	
  

 	
 12/1/1990

 	
  

 	
 11/30/2015

 	
  

 	
 420

 	
  

 	
 2,060.00

 	
  

 	
 58.86

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRC

 	
  

 	
 12/1/2012

 	
  

 	
 2,121.80

 	
  

 	
 60.62

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRC

 	
  

 	
 12/1/2013

 	
  

 	
 2,185.45

 	
  

 	
 62.44

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRC

 	
  

 	
 12/1/2014

 	
  

 	
 2,251.02

 	
  

 	
 64.31

 
	
  

 
	
 0107

 	
  

 	
 -1900

 	
  

 	
 PRINCI ITALIA

 	
  

 	
 8/27/2011

 	
  

 	
 8/31/2021

 	
  

 	
 3,156

 	
  

 	
 7,495.50

 	
  

 	
 28.50

 	
  

 	
 2,028.93

 	
  

 	
  

 	
  

 	
 303.00

 	
  

 	
 BRS

 	
  

 	
 9/1/2013

 	
  

 	
 7,627.00

 	
  

 	
 29.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 9/1/2014

 	
  

 	
 7,890.00

 	
  

 	
 30.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 9/1/2015

 	
  

 	
 8,284.50

 	
  

 	
 31.50

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 9/1/2016

 	
  

 	
 8,547.50

 	
  

 	
 32.50

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 9/1/2017

 	
  

 	
 8,679.00

 	
  

 	
 33.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 9/1/2018

 	
  

 	
 8,942.00

 	
  

 	
 34.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 9/1/2019

 	
  

 	
 9,205.00

 	
  

 	
 35.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 9/1/2020

 	
  

 	
 9,468.00

 	
  

 	
 36.00

 
	
  

 
	
 0107

 	
  

 	
 -1950

 	
  

 	
 AT&T Mobility

 	
  

 	
 1/13/2011

 	
  

 	
 1/31/2016

 	
  

 	
 3,120

 	
  

 	
 7,280.00

 	
  

 	
 28.00

 	
  

 	
 2,005.76

 	
  

 	
  

 	
  

 	
 40.00

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -2000

 	
  

 	
 Omaha Steakshops, Inc.

 	
  

 	
 9/1/1997

 	
  

 	
 6/30/2013

 	
  

 	
 1,562

 	
  

 	
 5,265.90

 	
  

 	
 40.46

 	
  

 	
 1,024.14

 	
  

 	
  

 	
  

 	
 170.17

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -2050

 	
  

 	
 Short Stop

 	
  

 	
 12/2/2010

 	
  

 	
 12/31/2020

 	
  

 	
 1,354

 	
  

 	
 2,820.83

 	
  

 	
 25.00

 	
  

 	
 914.66

 	
  

 	
  

 	
  

 	
 112.83

 	
  

 	
 BRS

 	
  

 	
 12/1/2014

 	
  

 	
 3,046.50

 	
  

 	
 27.00

 

 -72-

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  Database:

 	
  

 	
HSMI

 	
  

 	
 Rent Roll

 	
  

 	
 Page:

 	
  

 	
  

 	
  

 	
 3  

 
	
  Bldg Status:

 	
  

 	
 ALL

 	
  

 	
 Preston Royal Shopping Center

 	
  

 	
 Date:

 	
  

 	
 10/10/2012  

 
	
  

 	
  

 	
  

 	
  

 	
 10/10/2012

 	
  

 	
 Time:

 	
  

 	
 12:30 PM  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 GLA

 Sqft

 	
  

 	
 Monthly

 Base Rent

 	
  

 	
 Annual

 Rate PSF

 	
  

 	
 Monthly Cost
Recovery

 	
  

 	
 Expense

 Stop

 	
  

 	
 Monthly

 Other Income

 	
  

 	
 ------------ Future Rent Increases ------------

 
	
 Bldg Id-Suit Id

 	
  

 	
 Occupant Name

 	
  

 	
 Rent
 Start

 	
  

 	
 Expiration

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 Cat

 	
  

 	
 Date

 	
  

 	
 Monthly
 Amount

 	
  

 	
 PSF

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107 

 	
  

 	
 -2100

 	
  

 	
 Starbucks Coffee Co. #680

 	
  

 	
 1/17/1995

 	
  

 	
 2/28/2015

 	
  

 	
 2,000

 	
  

 	
 5,188.08

 	
  

 	
 31.13

 	
  

 	
 1,351.07

 	
  

 	
  

 	
  

 	
 166.67

 	
  

 	
 BRS

 	
  

 	
 12/1/2016

 	
  

 	
 3,272.16

 	
  

 	
 29.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107 

 	
  

 	
 -2200

 	
  

 	
 Zoe’s Kitchen

 	
  

 	
 10/1/2010

 	
  

 	
 7/31/2019

 	
  

 	
 3,252

 	
  

 	
 8,401.00

 	
  

 	
 31.00

 	
  

 	
 2,196.84

 	
  

 	
  

 	
  

 	
 271.00

 	
  

 	
 BRS

 	
  

 	
 8/1/2013

 	
  

 	
 8,672.00

 	
  

 	
 32.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 8/1/2014

 	
  

 	
 8,943.00

 	
  

 	
 33.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 8/1/2015

 	
  

 	
 9,214.00

 	
  

 	
 34.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 8/1/2016

 	
  

 	
 10,135.40

 	
  

 	
 37.40

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107 

 	
  

 	
 -2300

 	
  

 	
 Baskin Robbins

 	
  

 	
 9/1/2010

 	
  

 	
 8/31/2012

 	
  

 	
 1,135

 	
  

 	
 2,175.42

 	
  

 	
 23.00

 	
  

 	
 766.75

 	
  

 	
  

 	
  

 	
 134.58

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107 

 	
  

 	
 -2700

 	
  

 	
 Purple Cow

 	
  

 	
 11/1/2003

 	
  

 	
 10/31/2018

 	
  

 	
 3,148

 	
  

 	
 6,033.67

 	
  

 	
 23.00

 	
  

 	
 2,126.57

 	
  

 	
  

 	
  

 	
 302.33

 	
  

 	
 BRS

 	
  

 	
 11/1/2012

 	
  

 	
 6,296.00

 	
  

 	
 24.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 11/1/2014

 	
  

 	
 6,558.33

 	
  

 	
 25.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 11/1/2016

 	
  

 	
 6,820.67

 	
  

 	
 26.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107 

 	
  

 	
 -2900

 	
  

 	
 Larry North Fitness

 	
  

 	
 7/29/2006

 	
  

 	
 7/31/2016

 	
  

 	
 10,021

 	
  

 	
 11,691.17

 	
  

 	
 14.00

 	
  

 	
 6,769.40

 	
  

 	
  

 	
  

 	
 875.08

 	
  

 	
 BRS

 	
  

 	
 8/1/2013

 	
  

 	
 12,108.71

 	
  

 	
 14.50

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 8/1/2014 

 	
  

 	
 12,526.25

 	
  

 	
 15.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 8/1/2015

 	
  

 	
 12,943.79

 	
  

 	
 15.50

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 7/1/2016

 	
  

 	
 21,294.63

 	
  

 	
 25.50

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107 

 	
  

 	
 -2950

 	
  

 	
 City Vet

 	
  

 	
 5/1/2011

 	
  

 	
 4/30/2016

 	
  

 	
 4,536

 	
  

 	
 9,450.00

 	
  

 	
 25.00

 	
  

 	
 3,064.20

 	
  

 	
  

 	
  

 	
 418.00

 	
  

 	
 BRS

 	
  

 	
 5/1/2013

 	
  

 	
 9,639.00

 	
  

 	
 25.50

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 5/1/2014

 	
  

 	
 9,733.50

 	
  

 	
 25.75

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 5/1/2015

 	
  

 	
 9,884.70

 	
  

 	
 26.15

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107 

 	
  

 	
 -3050

 	
  

 	
 European Wax Center

 	
  

 	
 6/24/2010

 	
  

 	
 6/30/2015

 	
  

 	
 1,860

 	
  

 	
 4,650.00

 	
  

 	
 30.00

 	
  

 	
 1,256.47

 	
  

 	
  

 	
  

 	
 195.00

 	
  

 	
 BRS

 	
  

 	
 6/24/2013

 	
  

 	
 4,805.00

 	
  

 	
 31.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 6/24/2014

 	
  

 	
 4,960.00

 	
  

 	
 32.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107

 	
  

 	
 -3100

 	
  

 	
 USA Martial Arts &
 Fitness

 	
  

 	
 1/15/2012

 	
  

 	
 1/31/2017

 	
  

 	
 2,861

 	
  

 	
 6,616.06

 	
  

 	
 27.75

 	
  

 	
 1,932.70

 	
  

 	
  

 	
  

 	
 278.42

 	
  

 	
 BRS

 	
  

 	
 2/1/2013

 	
  

 	
 6,813.95

 	
  

 	
 28.58

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 2/1/2014

 	
  

 	
 7,018.99

 	
  

 	
 29.44

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 2/1/2015

 	
  

 	
 7,228.79

 	
  

 	
 30.32

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 2/1/2016

 	
  

 	
 7,445.75

 	
  

 	
 31.23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107 

 	
  

 	
 -3150

 	
  

 	
 Team Sports

 	
  

 	
 10/1/2011

 	
  

 	
 9/30/2016

 	
  

 	
 2,800

 	
  

 	
 6,248.67

 	
  

 	
 26.78

 	
  

 	
 1,891.45

 	
  

 	
  

 	
  

 	
 273.33

 	
  

 	
 BRS

 	
  

 	
 10/1/2013

 	
  

 	
 6,435.33

 	
  

 	
 27.58

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 10/1/2014

 	
  

 	
 6,629.00

 	
  

 	
 28.41

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 10/1/2015

 	
  

 	
 6,827.33

 	
  

 	
 29.26

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107 

 	
  

 	
 -3175

 	
  

 	
 Creme de la Cookie

 	
  

 	
 5/16/2010

 	
  

 	
 7/31/2013

 	
  

 	
 1,044

 	
  

 	
 2,827.50

 	
  

 	
 32.50

 	
  

 	
 705.24

 	
  

 	
  

 	
  

 	
 87.00

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107 

 	
  

 	
 -3200

 	
  

 	
 Kidville

 	
  

 	
 1/29/2011

 	
  

 	
 1/31/2018

 	
  

 	
 8,730

 	
  

 	
 13,095.00

 	
  

 	
 18.00

 	
  

 	
 5,897.35

 	
  

 	
  

 	
  

 	
 545.63

 	
  

 	
 BRS

 	
  

 	
 2/1/2014

 	
  

 	
 14,550.00

 	
  

 	
 20.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 2/1/2016

 	
  

 	
 16,005.00

 	
  

 	
 22.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107 

 	
  

 	
 -3500

 	
  

 	
 Royal China Restaurant

 	
  

 	
 8/7/2008

 	
  

 	
 8/31/2018

 	
  

 	
 3,892

 	
  

 	
 7,459.67

 	
  

 	
 23.00

 	
  

 	
 2,629.12

 	
  

 	
  

 	
  

 	
 364.33

 	
  

 	
 BRS

 	
  

 	
 9/1/2013

 	
  

 	
 7,784.00

 	
  

 	
 24.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 9/1/2014

 	
  

 	
 8,108.33

 	
  

 	
 25.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 9/1/2015

 	
  

 	
 8,432.67

 	
  

 	
 26.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 9/1/2016

 	
  

 	
 8,757.00

 	
  

 	
 27.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 9/1/2017

 	
  

 	
 9,081.33

 	
  

 	
 28.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107 

 	
  

 	
 -3600

 	
  

 	
 Foot Solutions

 	
  

 	
 10/31/2008

 	
  

 	
 10/31/2013

 	
  

 	
 1,981

 	
  

 	
 3,838.19

 	
  

 	
 23.25

 	
  

 	
 1,338.23

 	
  

 	
  

 	
  

 	
 205.08

 	
  

 	
 BRS

 	
  

 	
 10/31/2012

 	
  

 	
 3,962.00

 	
  

 	
 24.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107 

 	
  

 	
 -3800

 	
  

 	
 Copper Lamp

 	
  

 	
 11/24/2003

 	
  

 	
 1/31/2014

 	
  

 	
 6,534

 	
  

 	
 13,612.50

 	
  

 	
 25.00

 	
  

 	
 4,413.87

 	
  

 	
  

 	
  

 	
 584.50

 	
  

 	
 BRS

 	
  

 	
 8/1/2013

 	
  

 	
 14,157.00

 	
  

 	
 26.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107 

 	
  

 	
 -4000

 	
  

 	
 Creative Stitches and gifts

 	
  

 	
 4/25/2005

 	
  

 	
 1/31/2012

 	
  

 	
 2,069

 	
  

 	
 4,138.00

 	
  

 	
 24.00

 	
  

 	
 1,397.65

 	
  

 	
  

 	
  

 	
 212.42

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

 -73-

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  Database:

 	
  

 	
HSMI

 	
  

 	
 Rent Roll

 	
  

 	
 Page:

 	
  

 	
  

 	
  

 	
 4  

 
	
  Bldg Status:

 	
  

 	
 ALL

 	
  

 	
 Preston Royal Shopping Center

 	
  

 	
 Date:

 	
  

 	
 10/10/2012  

 
	
  

 	
  

 	
  

 	
  

 	
 10/10/2012

 	
  

 	
 Time:

 	
  

 	
 12:30 PM  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 GLA

 Sqft

 	
  

 	
 Monthly

 Base Rent

 	
  

 	
 Annual

 Rate PSF

 	
  

 	
 Monthly Cost
Recovery

 	
  

 	
 Expense

 Stop

 	
  

 	
 Monthly

 Other Income

 	
  

 	
 ------------ Future Rent Increases ------------

 
	
 Bldg Id-Suit Id

 	
  

 	
 Occupant
 Name

 	
  

 	
 Rent
 Start

 	
  

 	
 Expiration

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 Cat

 	
  

 	
 Date

 	
  

 	
 Monthly
 Amount

 	
  

 	
 PSF  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107

 	
  

 	
 -4100

 	
  

 	
 Vital Force Wellness

 	
  

 	
 9/1/2006

 	
  

 	
 8/31/2009

 	
  

 	
 647

 	
  

 	
 754.83

 	
  

 	
 14.00

 	
  

 	
 63.43

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107

 	
  

 	
 -4150

 	
  

 	
 Doughery’s Pharmacy
 (office)

 	
  

 	
 6/15/2011

 	
  

 	
 6/30/2013

 	
  

 	
 320

 	
  

 	
 266.67

 	
  

 	
 10.00

 	
  

 	
 53.33

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107

 	
  

 	
 -4200

 	
  

 	
 North Dallas Medical Group
 (2)

 	
  

 	
 8/30/2012

 	
  

 	
 8/31/2015

 	
  

 	
 286

 	
  

 	
 381.33

 	
  

 	
 16.00

 	
  

 	
 193.05

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRC

 	
  

 	
 8/1/2013

 	
  

 	
 393.25
 

 	
  

 	
 16.50
 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRC

 	
  

 	
 8/1/2014

 	
  

 	
 405.17

 	
  

 	
 17.00

 
	
  

 
	
 0107

 	
  

 	
 -4300

 	
  

 	
 North Dallas Medical Group

 	
  

 	
 2/25/2011

 	
  

 	
 2/28/2014

 	
  

 	
 616

 	
  

 	
 847.00

 	
  

 	
 16.50

 	
  

 	
 416.09

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRC

 	
  

 	
 3/1/2013

 	
  

 	
 872.67

 	
  

 	
 17.00

 
	
  

 
	
 0107

 	
  

 	
 -4400

 	
  

 	
 Classic Custom Hair Design

 	
  

 	
 1/1/2012

 	
  

 	
 12/31/2014

 	
  

 	
 762

 	
  

 	
 1,047.75

 	
  

 	
 16.50

 	
  

 	
 514.75

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRC

 	
  

 	
 1/1/2013

 	
  

 	
 1,016.00

 	
  

 	
 16.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107

 	
  

 	
 -4500

 	
  

 	
 National Council of Jewish

 	
  

 	
 1/1/1997

 	
  

 	
 12/31/2011

 	
  

 	
 308

 	
  

 	
 282.33

 	
  

 	
 11.00

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107

 	
  

 	
 -4700

 	
  

 	
 Radio Shack #018184

 	
  

 	
 6/1/2003

 	
  

 	
 5/31/2014

 	
  

 	
 2,504

 	
  

 	
 5,164.50

 	
  

 	
 24.75

 	
  

 	
 1,591.76

 	
  

 	
  

 	
  

 	
 150.20

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107

 	
  

 	
 -4900

 	
  

 	
 Kids Cooking Co. / Toy
 Maven

 	
  

 	
 7/11/2005

 	
  

 	
 10/31/2012

 	
  

 	
 6,263

 	
  

 	
 10,657.54

 	
  

 	
 20.42

 	
  

 	
 4,041.63

 	
  

 	
  

 	
  

 	
 538.58

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107

 	
  

 	
 -5000

 	
  

 	
 Wild About Flowers

 	
  

 	
 7/20/2004

 	
  

 	
 7/31/2013

 	
  

 	
 2,227

 	
  

 	
 4,546.79

 	
  

 	
 24.50

 	
  

 	
 1,504.41

 	
  

 	
  

 	
  

 	
 256.25

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107

 	
  

 	
 -5100

 	
  

 	
 Hollywood Nails

 	
  

 	
 9/20/2004

 	
  

 	
 9/30/2014

 	
  

 	
 1,881

 	
  

 	
 4,232.25

 	
  

 	
 27.00

 	
  

 	
 1,270.69

 	
  

 	
  

 	
  

 	
 202.00

 	
  

 	
 BRS

 	
  

 	
 10/1/2013

 	
  

 	
 4,389.00

 	
  

 	
 28.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107

 	
  

 	
 -5300

 	
  

 	
 Cantina Laredo

 	
  

 	
 1/27/1998

 	
  

 	
 1/31/2013

 	
  

 	
 6,000

 	
  

 	
 13,750.00

 	
  

 	
 27.50

 	
  

 	
 3,818.07

 	
  

 	
  

 	
  

 	
 391.76

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107

 	
  

 	
 -5400

 	
  

 	
 Premier Sports Chiropractic

 	
  

 	
 3/16/2009

 	
  

 	
 11/30/2012

 	
  

 	
 1,190

 	
  

 	
 2,380.00

 	
  

 	
 24.00

 	
  

 	
 803.88

 	
  

 	
  

 	
  

 	
 99.17

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107

 	
  

 	
 -5700

 	
  

 	
 Sport Clips

 	
  

 	
 9/1/2004

 	
  

 	
 8/31/2014

 	
  

 	
 865

 	
  

 	
 2,234.58

 	
  

 	
 31.00

 	
  

 	
 584.31

 	
  

 	
  

 	
  

 	
 112.08

 	
  

 	
 BRS

 	
  

 	
 9/1/2013

 	
  

 	
 2,306.67

 	
  

 	
 32.00

 
	
  

 
	
 0107

 	
  

 	
 -5750

 	
  

 	
 Smashing Times

 	
  

 	
 6/1/2012

 	
  

 	
 5/31/2013

 	
  

 	
 831

 	
  

 	
 1,662.00

 	
  

 	
 24.00

 	
  

 	
 561.34

 	
  

 	
  

 	
  

 	
 109.25

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107

 	
  

 	
 -5800

 	
  

 	
 Ken Man’s Shop

 	
  

 	
 9/19/1993

 	
  

 	
 9/30/2013

 	
  

 	
 3,316

 	
  

 	
 6,079.33

 	
  

 	
 22.00

 	
  

 	
 2,240.02

 	
  

 	
  

 	
  

 	
 310.75

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107

 	
  

 	
 -5950

 	
  

 	
 FedEx Kinko’s

 	
  

 	
 6/30/2006

 	
  

 	
 8/31/2013

 	
  

 	
 1,650

 	
  

 	
 3,712.50

 	
  

 	
 27.00

 	
  

 	
 1,114.60

 	
  

 	
  

 	
  

 	
 137.50

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -6000

 	
  

 	
 White Selection

 	
  

 	
 9/15/2000

 	
  

 	
 1/31/2016

 	
  

 	
 2,410

 	
  

 	
 5,623.33

 	
  

 	
 28.00

 	
  

 	
 1,628.00

 	
  

 	
  

 	
  

 	
 240.83

 	
  

 	
 BRS

 	
  

 	
 1/1/2014

 	
  

 	
 5,824.17

 	
  

 	
 29.00

 
	
  

 
	
 0107

 	
  

 	
 -6200

 	
  

 	
 Hale’s Dispensing Opticians

 	
  

 	
 6/1/2002

 	
  

 	
 5/31/2013

 	
  

 	
 1,538

 	
  

 	
 3,537.06

 	
  

 	
 27.60

 	
  

 	
 1,039.00

 	
  

 	
  

 	
  

 	
 128.17

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107

 	
  

 	
 -6300

 	
  

 	
 Einstein Bros. Bagels
 #3558

 	
  

 	
 12/7/2010

 	
  

 	
 12/31/2020

 	
  

 	
 2,040

 	
  

 	
 4,590.00

 	
  

 	
 27.00

 	
  

 	
 1,378.09

 	
  

 	
  

 	
  

 	
 170.00

 	
  

 	
 BRS

 	
  

 	
 1/1/2016

 	
  

 	
 4,930.00

 	
  

 	
 29.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 1/1/2017

 	
  

 	
 5,100.00

 	
  

 	
 30.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 1/1/2018

 	
  

 	
 5,270.00

 	
  

 	
 31.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 1/1/2019

 	
  

 	
 5,440.00

 	
  

 	
 32.00

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 BRS

 	
  

 	
 1/1/2020

 	
  

 	
 5,610.00

 	
  

 	
 33.00

 
	
  

 
	
 0107

 	
  

 	
 -6350

 	
  

 	
 Lucy’s Tailor

 	
  

 	
 9/1/2012

 	
  

 	
 8/31/2017

 	
  

 	
 492

 	
  

 	
 1,517.00

 	
  

 	
 37.00

 	
  

 	
 330.46

 	
  

 	
  

 	
  

 	
 61.50

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 0107

 	
  

 	
 -6400

 	
  

 	
 Preston Royal Cleaners

 	
  

 	
 9/1/2012

 	
  

 	
 8/31/2017

 	
  

 	
 650

 	
  

 	
 2,004.17

 	
  

 	
 37.00

 	
  

 	
 436.58

 	
  

 	
  

 	
  

 	
 81.25

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

 -74-

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  Database:

 	
  

 	
 HSMI

 	
  

 	
  

 	
 Rent Roll

 	
  

 	
 Page:

 	
  

 	
 5  

 
	
  Bldg
 Status:

 	
 ALL

 	
  

 	
  

 	
 Preston Royal Shopping Center

 	
  

 	
 Date:

 	
  

 	
 10/10/2012  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 10/10/2012

 	
  

 	
 Time:

 	
  

 	
 12:30 PM  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 GLA

 Sqft

 	
  

 	
 Monthly
Base
 Rent

 	
  

 	
 Annual
Rate
 PSF

 	
  

 	
 Monthly
Cost
 Recovery

 	
  

 	
 Expense
Stop

 	
  

 	
 Monthly
Other
 Income

 	
  

 	
 ------Future
 Rent Increases------

 
	
 Bldg Id-Suit Id

 	
  

 	
 Occupant
 Name

 	
  

 	
 Rent
 Start

 	
  

 	
  

 	
 Expiration

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 Cat

 	
  

 	
 Date

 	
  

 	
 Monthly
 Amount  

 	
  

 	
 PSF 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 0107 -6600

 	
  

 	
 Chase Bank

 	
  

 	
  

 	
 1/1/2008

 	
  

 	
  

 	
 1/31/2008

 	
  

 	
 0

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 750.00

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Totals: 

 	
  

 	
 Occupied Sqft:

 	
  

 	
  

 	
 97.26

 	
 %

 	
  

 	
 66
 Units

 	
  

 	
 223,620

 	
  

 	
 410,693.50

 	
  

 	
  

 	
  

 	
 101,903.91

 	
  

 	
  

 	
  

 	
 13,373.42

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Leased/Unoccupied Sqft:

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 0
 Units

 	
  

 	
 0

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Vacant Sqft:

 	
  

 	
  

 	
 2.74

 	
 %

 	
  

 	
 3
 Units

 	
  

 	
 6,300

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Total
 Sqft:

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 69
 Units

 	
  

 	
 229,920

 	
  

 	
 410,693.50

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Total Preston Royal Shopping
Center: 

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Occupied
 Sqft:

 	
  

 	
  

 	
 97.26

 	
 %

 	
  

 	
 66
 Units

 	
  

 	
 223,620

 	
  

 	
 410,693.50

 	
  

 	
  

 	
  

 	
 101,903.91

 	
  

 	
  

 	
  

 	
 13,373.42

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Leased/Unoccupied
 Sqft:

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 0
 Units

 	
  

 	
 0

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Vacant Sqft:

 	
  

 	
  

 	
 2.74

 	
 %

 	
  

 	
 3
 Units

 	
  

 	
 6,300

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Total
 Sqft:

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 69
 Units

 	
  

 	
 229,920

 	
  

 	
 410,693.50

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Grand Total: 

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Occupied
 Sqft:

 	
  

 	
  

 	
 97.26

 	
 %

 	
  

 	
 66 Units

 	
  

 	
 223,620

 	
  

 	
 410,693.50

 	
  

 	
  

 	
  

 	
 101,903.91

 	
  

 	
  

 	
  

 	
 13,373.42

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Leased/Unoccupied
 Sqft:

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 0
 Units

 	
  

 	
 0

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Vacant Sqft:

 	
  

 	
  

 	
 2.74

 	
 %

 	
  

 	
 3
 Units

 	
  

 	
 6,300

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Total
 Sqft:

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 69
 Units

 	
  

 	
 229,920

 	
  

 	
 410,693.50

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

-75-

EXHIBIT 1.46

Special Warranty Deed

	
  

 	
  

 
	
 AFTER RECORDING RETURN TO:

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 

SPECIAL WARRANTY DEED

	
  

 	
  

 	
  

 
	
 THE STATE OF TEXAS

 	
 §

 	
  

 
	
  

 	
 § 

 	
 KNOW ALL MEN BY
 THESE PRESENTS:

 
	
 COUNTY OF DALLAS

 	
 §

 	
  

 

          THAT,
PRESTON ROYAL REALTY COMPANY, a Texas joint venture (“Grantor”), for and
in consideration of TEN AND 00/100 DOLLARS ($10.00) in cash, and other good and
valuable consideration, in hand paid by ______________________ (“Grantee”),
whose mailing address is __________________________, receipt and sufficiency of
such consideration being hereby acknowledged, has GRANTED, SOLD AND CONVEYED,
and by these presents does GRANT, SELL AND CONVEY unto Grantee that certain
real property (the “Premises”) being more particularly described in Exhibit A
attached hereto and made a part hereof for all purposes, together with (i) any
and all rights, privileges, and appurtenances belonging or pertaining to the
Premises; (ii) any and all improvements, structures, and fixtures located on,
over, and under the Premises; (iii) any and all easements or rights-of-way
affecting the Premises and any of Grantor’s rights to use the same; (iv) any
and all rights of ingress and egress to and from the Premises and any of
Grantor’s rights to use the same; and (v) all right, title, and interest of
Grantor, if any, in and to (a) any and all roads (open or proposed) affecting,
crossing, fronting, or bounding the Premises, including any awards made or to
be made relating thereto including, without limitation, any unpaid awards or
damages payable by reason of damages thereto or by reason of a widening of or
changing of the grade with respect to the same, (b) any and all air rights,
water rights, claims, and permits relating to the Premises, and (c) any and all
reversionary interests in and to the Premises (the Premises, together with any
and all of the related improvements, rights, privileges, appurtenances, and
interests referenced in items (i) through (v) above, (collectively, the
“Property”); subject, however, to those matters more particularly described
in Exhibit B attached hereto and made a part hereof for all
purposes, but only if and to the extent currently in force and applicable
(collectively, the “Permitted Exceptions”).

          TO
HAVE AND TO HOLD the premises aforesaid with all and singular, the rights,
privileges, appurtenances and immunities thereto belonging or in any wise
appertaining unto the said Grantee and unto Grantee’s successors and assigns
forever, the said Grantor hereby covenanting that the premises are free and
clear from any encumbrance done or suffered by Grantor other than the Permitted
Exceptions; and that Grantor will warrant and defend the title to said premises
unto the said Grantee and unto Grantee’s successors and assigns forever,
against the lawful claims and demands of all persons claiming by, through or
under Grantor, but not otherwise.

          Grantee,
by its acceptance hereof, hereby assumes payment of all standby charges, ad
valorem real estate taxes and assessments with respect to the 2012 calendar
year and subsequent calendar years, not yet due and payable, each to the extent
attributable to all or any portion of the Property.

          IN WITNESS
WHEREOF, this instrument has been executed as of (but not necessarily on) this
_____ day of ___________________, 2012.

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 PRESTON ROYAL
 REALTY COMPANY, 

 
	
  

 	
 a Texas joint
 venture

 
	
  

 	
  

 
	
  

 	
 By:

 	
 SC Preston Royal,
 Ltd.,

 
	
  

 	
  

 	
 a Texas limited
 partnership,

 
	
  

 	
  

 	
 Joint Venturer

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 SC Preston Royal
 GP, Inc.,

 
	
  

 	
  

 	
  

 	
 a Texas
 corporation,

 
	
  

 	
  

 	
  

 	
 Managing Partner

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Jacqueline Miller Stewart,

 
	
  

 	
  

 	
  

 	
  

 	
 Vice President

 

	
  

 	
  

 	
  

 
	
 THE STATE OF TEXAS

 	
  

 	
 §

 
	
  

 	
 §

 	
  

 
	
 COUNTY OF DALLAS

 	
  

 	
 §

 

          The
foregoing instrument was acknowledged before me this ______ day of
_______________, 2012, by Jacqueline Miller Stewart, Vice President of SC
Preston Royal GP, Inc., a Texas corporation, in its capacity as Manager Partner
of SC Preston Royal, Ltd., a Texas limited partnership, in its capacity as Joint
Venturer of Preston Royal Realty Company, a Texas joint venture, on behalf of
such joint venture.

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Notary:

 	
  

 	
  

 
	
  

 	
 Printed Name:

 	
  

 	
  

 
	
  

 	
 Notary Public,
 State of

 	
  

 
	
  

 	
 My Commission
 Expires:

 	
  

 	
  

 

 -77-

EXHIBIT 1.48

Tenant Estoppel Letter

[BUYER] (“Buyer”)

Preston Royal Realty Company

5959 Royal Lane, Suite 634-205

Dallas, Texas 75230 (“Seller”)

	
  

 	
  

 
	
 Re:

 	
 Lease dated __________________, __________ (the “Lease”)
 executed between _____________________________________________ (“Landlord”),
 and (“Tenant”), for those premises located at
 ________________________________________________ comprising approximately
 _____ square feet.

 

Gentlemen:

          The
undersigned Tenant understands that you or your assigns intend to acquire that
property located in Preston Royal Shopping Center, Dallas, Texas (the “Premises”)
from Preston Royal Realty Company. The undersigned Tenant does hereby certify
to Seller, Buyer and any lender providing financing to Buyer, and their
respective successors and assigns, as follows:

	
  

 	
  

 	
  

 
	
  

 	
 A.

 	
 The Lease is in
 full force and effect and has not been modified, supplemented, or amended
 except as follows:

 
	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Tenant does not
 claim any offsets or credits against rents payable under the Lease. 

 
	
  

 	
  

 	
  

 
	
  

 	
 C.

 	
 Tenant does not
 have any unexpended tenant or other allowance, except as follows: ____________________________________________________. All work to be performed for Tenant under the
 Lease has been performed as required and accepted by Tenant, except as
 follows:  _________________________________________________________________________________________
_______________________________________________.

 
	
  

 	
  

 	
  

 
	
  

 	
 D.

 	
 Tenant has not
 paid a security or other deposit with respect to the Lease, except as
 follows:

 
	
  

 	
  

 	
  

 
	
  

 	
 E.

 	
 Tenant has fully
 paid rent on account of the month of            . Base Rent is currently payable
 in monthly installments of $____ (exclusive of Tenant’s share of taxes and
 operating expenses).

 
	
  

 	
  

 	
  

 
	
  

 	
 F.

 	
 Tenant has not
 paid any rentals in advance except for the current month of _______ 2012, and has not
 paid any additional rent in advance except for ____________, 2012.

 
	
  

 	
  

 	
  

 
	
  

 	
 G.

 	
 The term of the
 Lease commenced as of _______________. The Lease shall remain in full force
 and effect through               , and the Tenant has no options to renew or extend
 or terminate the term of the Lease except as expressly provided in the Lease.

 

 -78-

	
  

 	
  

 	
  

 
	
  

 	
 H.

 	
 If applicable,
 Tenant’s base year is ___________.

 
	
  

 	
  

 	
  

 
	
  

 	
 I.

 	
 There exists no
 right to offset, deduction, credit or defense against the payment of rent or
 other charges payable under the Lease by Tenant. To the best knowledge and
 belief of Tenant, there is no default by Landlord under the Lease. Tenant has
 not been granted any concessions, free rent, rent holidays or other rent
 relief not set forth in full on the Lease. Landlord’s obligations with regard
 to any concession, free rent, rent holidays or other rent relief (whether or
 not set forth in the Lease) arising prior to the date hereof have been
 satisfied in full.

 
	
  

 	
  

 	
  

 
	
  

 	
 J.

 	
 Tenant’s pro rata
 share of real property taxes, charges and assessments have been paid through
 _____________, 2012, Tenant’s pro rata share of insurance has been paid
 through ______________, 2012, Tenant’s pro rata share of operating expenses
 has been paid through ________________, 2012. Tenant is not in default under
 the Lease and is current in the payment of any taxes, utilities, operating
 expenses, maintenance payments, and any other charges required to be paid by
 Tenant.

 
	
  

 	
  

 	
  

 
	
  

 	
 K.

 	
 Tenant has not
 assigned, transferred, or hypothecated the Lease or any interest therein or
 sublet all or any portion of the Premises.

 
	
  

 	
  

 	
  

 
	
  

 	
 L.

 	
 Except for the
 Lease, there are no other agreements, written or oral, between Tenant and
 Landlord with respect to the Lease or the Property.

 
	
  

 	
  

 	
  

 
	
  

 	
 M.

 	
 Tenant
 acknowledges that the landlord will assign its interest in the Lease to
 Buyer, and agrees to attorn to Buyer and Buyer’s lender, and to perform all
 of the Tenant’s obligations as lessee under the Lease including, without
 limitation, the payment of rent, directly to Buyer, as the landlord under the
 Lease from and after the date of such assignment.

 
	
  

 	
  

 	
  

 
	
  

 	
 N.

 	
 Except as set
 forth in the Lease, Tenant has no early termination, expansion, renewal,
 extension or purchase options under the Lease or otherwise.

 

	
  

 	
  

 	
  

 
	
  

 	
 Very truly yours,

 
	
  

 	
  

 
	
  

 	
 [TENANT]

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
 Title:

 

-79-

EXHIBIT 1.50

Tenant Notice

__________, 2012

To The
Tenants:

	
 

	
 

	
 

	
 

	
Re:

	
Preston Road
and Royal Lane

	
 

	
 

	
Dallas,
Texas

Dear Tenant:

          _____________________________
(“Buyer”) has purchased the captioned property, from PRESTON ROYAL REALTY COMPANY, a Texas
joint venture (“Seller”).

          Seller
has transferred your security deposit in the general amount of $ ________ (the “Security Deposit”) to Buyer. Buyer has assumed full
responsibility for the Security Deposit including the return of the Security
Deposit to you at the time and upon the conditions set forth in your lease.

          All
rental and other payments that become due under your lease subsequent to the
date hereof should be payable to Buyer and sent to _________ as Buyer’s
management agent, at the following address:

	
 

	
 

	
 

	
 

	 

	
 

	
 

	 

	
 

	
 

	 

	
 

	
 

	 

	
 

-80-

	
 

	
 

	
 

	
 

	
Very truly yours,

	
 

	
 

	
 

	
 

	
SELLER:

	
 

	
 

	
 

	
 

	
PRESTON ROYAL REALTY COMPANY, 

	
 

	
a Texas joint venture

	
 

	
 

	
 

	
 

	
By:

	
SC Preston Royal, Ltd.,

	
 

	
 

	
a Texas limited partnership,

	
 

	
 

	
Joint Venturer

	
 

	
 

	
 

	
 

	
By:

	
SC Preston Royal GP, Inc.,

	
 

	
 

	
a Texas corporation,

	
 

	
 

	
Managing Partner

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
Jacqueline Miller Stewart,

	
 

	
 

	
Vice President

	
 

	
 

	
 

	
 

	
 

	
BUYER:

	
 

	
 

	
 

	
 

	
 

	
 

	 

	
,

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

-81-

EXHIBIT 1.56

Update Certificate

SELLER’S CLOSING CERTIFICATE

          The
undersigned hereby certifies to __________________, a
_________________, that the
representations and warranties contained in Section 6(a) of that certain
Purchase and Sale Agreement dated as of October ___, 2012, as same may be
amended (the “Agreement”), by and between Preston Royal Realty Company,
a Texas joint venture (“Seller”), and ______________________________,
remain true, complete and correct in all material respects as of the date
hereof. The representations and warranties contained herein are made by Seller
to the standard of knowledge, if any and as defined in the Agreement, contained
in the Agreement for the applicable representation or warranty.

	
 

	
 

	
 

	
Dated: _________, 2012

	
PRESTON ROYAL REALTY COMPANY, 

	
 

	
a Texas joint venture

	
 

	
 

	
 

	
 

	
By:

	
SC Preston Royal, Ltd.,

	
 

	
 

	
a Texas limited partnership,

	
 

	
 

	
Joint Venturer

	
 

	
 

	
 

	
 

	
By:

	
SC Preston Royal GP, Inc.,

	
 

	
 

	
a Texas corporation,

	
 

	
 

	
Managing Partner

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
Jacqueline Miller Stewart,

	
 

	
 

	
 

	
Vice President

	
 

-82-

EXHIBIT 4(a)

Tenant Inducement Costs and Leasing
Commissions

	
  

 	
  

 
	
  

 	
 1. At Closing, Buyer must reimburse Seller for any of the following
 amounts (which amounts have not yet been paid to the relevant tenants as of
 the execution date of this Agreement) which Seller pays to the relevant
 tenants between the execution date of this Agreement and Closing:

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Tenant

 	
  

 	
  

 	
 Currently Unpaid Amounts (to be paid or 

 reimbursed by Buyer)

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Hair Bar
 (Tenant Improvements + 1⁄2 of outside broker’s commission)

 	
  

 	
  

 	
 $49,468.00

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 The Joint
 (Tenant Improvements + 1⁄2 of outside broker’s commission)

 	
  

 	
  

 	
 $17,316.00

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 TOTAL

 	
  

 	
  

 	
 $66,784.00

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

	
  

 	
  

 
	
  

 	
 2. At Closing, Buyer must reimburse Seller for the following amounts,
 which amounts Seller has already paid to the relevant tenants prior to the
 execution date of this Agreement:

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Tenant

 	
  

 	
  

 	
 Amounts due from Buyer to Seller at 

 Closing

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Hair Bar
 (listing broker’s commission + 1⁄2 of outside broker’s commission)

 	
  

 	
  

 	
 $12,936.00

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Premier
 Chiropractic (Commission)

 	
  

 	
  

 	
 $4,926.60

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 The Joint
 (Listing broker’s commission + 1⁄2 of outside broker’s commission)

 	
  

 	
  

 	
 $6,552.00

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Merge
 (Commission)

 	
  

 	
  

 	
 $4,135.68

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Kids Cooking
 Company (Commission)

 	
  

 	
  

 	
 $59,185.35

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 TOTAL

 	
  

 	
  

 	
 $87,735.63

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

	
  

 	
  

 
	
  

 	
 3. At Closing, Seller will provide a credit to Buyer for the
 following amount, to the extent that it has not been paid by Seller to the
 relevant tenant prior to Closing:

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Tenant

 	
  

 	
  

 	
 Currently Unpaid Amount (to be paid or 

 credited by Seller)

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Spec’s
 Wines, Spirits, and Finer Foods (Tenant Improvements)

 	
  

 	
  

 	
 $317,376.00

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 The Joint
 (Asbestos Abatement)

 	
  

 	
  

 	
 $10,000.00

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 TOTAL

 	
  

 	
  

 	
 $327,376.00

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

-83-

EXHIBIT 5(a)

Rent Arrearages

None.

-84-

EXHIBIT 6(a)(iv)

Litigation

None.

-85-

EXHIBIT 20(i)

Personal Property

None.

-86-EXHIBIT
10.19

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
This
instrument was prepared by:

	
 

	
 

	
James C.
Wine

	
 

	
 

	
Nyemaster
Goode

	
 

	
 

	
700 Walnut,
Suite 1600

	
 

	
 

	
Des Moines,
Iowa 50309-3956

	
 

	
 

	
After
recording, return to above address.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
NOTICE OF
CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE
ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN
INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC
RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER.

	
 

DEED
OF TRUST, SECURITY 

AGREEMENT AND FIXTURE FILING

AMREIT PRESTON ROYAL, LP,

a Texas limited partnership,

Borrower,

having an office at

8 Greenway Plaza, Suite 1000

Houston, Texas 77046

to

PETER
S. GRAF,

Trustee

for the benefit of

TRANSAMERICA FINANCIAL LIFE INSURANCE
COMPANY,

a New York corporation,

Lender,

having an office

c/o AEGON USA Realty Advisors, LLC

4333 Edgewood Road, N.E.

Cedar Rapids, Iowa 52499-5443

effective as of the ___ day of December, 2012
(the “Effective Date”)

Loan Amount: $23,400,000.00

Premises: Preston Royal Village, Dallas County, Dallas, Texas

	
 

	
 

	
 

	
Deed of Trust and Security
Agreement

	
-1-

	
 

	
Preston Royal Village,
Dallas, Texas

	
 

	
 

	
AEGON Loan No. 10512155

	
 

	
 

Deed
of Trust, Security Agreement and Fixture Filing

This Deed of
Trust, Security Agreement and Fixture Filing (this “Deed of Trust”) is made and
given as of the Effective Date, by AMREIT PRESTON ROYAL, LP, as grantor, a
Texas limited partnership, whose address is 8 Greenway Plaza, Suite 1000,
Houston, Texas 77046 (the “Borrower”), to PETER S. GRAF, as trustee, whose
address is 2626 Howell Street, Dallas, Texas 75204 (the “Trustee”), for the
benefit of TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY, as beneficiary, a New
York corporation having an office c/o AEGON USA Realty Advisors, LLC, 4333
Edgewood Road, N.E., Cedar Rapids, Iowa 52499-5443 (the “Lender”). The
definitions of capitalized terms used in this Deed of Trust may be found either
in Sections 3 or 22 below, or through the cross-references provided in those Sections.

	
 

	
 

	
 

	
1. 

	
RECITALS

	
 

	
 

	
 

	
 

	
A.

	
Under the
terms of a commercial Loan Application/Commitment dated November 14, 2012, as
amended (the “Commitment”), AEGON USA Realty Advisors, LLC (“AEGON”), as
agent for the Lender, agreed to fund a loan in the principal amount of
$23,400,000 (the “Loan”).

	
 

	
 

	
 

	
 

	
B.

	
The Lender
has funded the Loan in the principal amount of $23,400,000 in accordance with
the Commitment, and to evidence the Loan, the Borrower has executed and
delivered to the Lender a certain Secured Promissory Note, of even date, in
the amount of $23,400,000, with a maturity and final payment date of January
1, 2020.

	
 

	
 

	
 

	
 

	
C.

	
The
Commitment requires that the Loan be secured by all of the Borrower’s
existing and after-acquired interest in certain real property and by certain
tangible and intangible personal property.

	
 

	
 

	
2.

	
GRANTING CLAUSE

	
 

	
 

	
 

	
To secure
the repayment of the Indebtedness, any increases, modifications, renewals or
extensions of the Indebtedness, and any substitutions for the Indebtedness,
as well as the performance of the Borrower’s other Obligations, and in
consideration of the sum of ten dollars ($10.00) and other valuable
consideration, the receipt and sufficiency of which are acknowledged, the
Borrower grants, bargains, warrants, conveys, alienates, releases, assigns,
sets over and confirms to the Trustee, in trust with the POWER OF SALE for
the benefit of the Lender and to his successors and assigns forever, all of
the Borrower’s existing and after acquired interests in the Real Property.

	
 

	
 

	
3.

	
DEFINED TERMS 

	
 

	
 

	
 

	
The
following defined terms are used in this Deed of Trust. For ease of
reference, terms relating primarily to the Security Agreement are defined in
Subsection 22.1.

	
 

	
 

	
 

	
“Affiliate”
of any person means any entity controlled by, or under common control with,
that person.

	
 

	
 

	
 

	
“Appurtenances”
means all rights, estates, titles, interests, privileges, easements,
tenements, hereditaments, titles, royalties, reversions, remainders and other
interests, whether presently held by the Borrower or acquired in the future,
that may be conveyed 

	
 

	
 

	
 

	
Deed of Trust and Security
Agreement

	
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Preston Royal Village,
Dallas, Texas

	
 

	
 

	
AEGON Loan No. 10512155

	
 

	
 

	
 

	
 

	
 

	
as interests
in the Land under the laws of Texas. Appurtenances include the Easements and
the Assigned Rights.

	
 

	
 

	
 

	
“Assigned
Rights” means all of the Borrower’s rights, easements, privileges,
tenements, hereditaments, contracts, claims, licenses or other interests,
whether presently existing or arising in the future. The Assigned Rights
include all of the Borrower’s rights in and to:

	
 

	
 

	
 

	
 

	
(i)

	
any greater
estate in the Real Property;

	
 

	
 

	
 

	
 

	
(ii)

	
insurance
policies required to be carried hereunder, including the right to negotiate
claims and to receive Insurance Proceeds and unearned insurance premiums
(except as expressly provided in Subsection 8.2);

	
 

	
 

	
 

	
 

	
(iii)

	
Condemnation
Proceeds;

	
 

	
 

	
 

	
 

	
(iv)

	
licenses and
agreements permitting the use of sources of groundwater or water utilities,
septic leach fields, railroad sidings, sewer lines, and means of ingress and
egress;

	
 

	
 

	
 

	
 

	
(v)

	
drainage
over other property;

	
 

	
 

	
 

	
 

	
(vi)

	
air space
above the Land;

	
 

	
 

	
 

	
 

	
(vii)

	
mineral
rights;

	
 

	
 

	
 

	
 

	
(viii)

	
party walls;

	
 

	
 

	
 

	
 

	
(ix)

	
vaults and
their usage;

	
 

	
 

	
 

	
 

	
(x)

	
franchises;

	
 

	
 

	
 

	
 

	
(xi)

	
commercial
tort claims that arise during the Loan term in respect of damages to the Real
Property or to its operations, in respect of any impairment to the value of
the Real Property, or in respect of the collection of any Rents;

	
 

	
 

	
 

	
 

	
(xii)

	
construction
contracts;

	
 

	
 

	
 

	
 

	
(xiii)

	
roof and
equipment guarantees and warranties;

	
 

	
 

	
 

	
 

	
(xiv)

	
building and
development licenses and permits;

	
 

	
 

	
 

	
 

	
(xv)

	
tax credits
or other governmental entitlements, credits or rights, whether or not vested;

	
 

	
 

	
 

	
 

	
(xvi)

	
licenses and
applications (whether or not yet approved or issued);

	
 

	
 

	
 

	
 

	
(xvii)

	
rights under
management and service contracts;

	
 

	
 

	
 

	
 

	
(xviii)

	
leases of
Fixtures; and

	
 

	
 

	
 

	
 

	
(xix)

	
trade names,
trademarks, trade styles, service marks, copyrights, and agreements with
architects, environmental consultants, property tax consultants, engineers,
and any other third-party contractors whose services benefit the Real
Property.

	
 

	
 

	
 

	
“Assignment
of Leases and Rents” means the Loan Document bearing this heading. “Bankruptcy
Code” means the Bankruptcy Reform Act of 1978, as amended, 11 U.S.C.
Sections 101 et seq., and the regulations promulgated pursuant to those
statutes.

	
 

	
 

	
 

	
“Business
Day” means any day when state and federal banks are open for business in
Cedar Rapids, Iowa.

	
 

	
 

	
 

	
“Carveout
Guarantee and Indemnity” means that certain “Carveout Guarantee and
Indemnity Agreement” entered into by the Carveout Obligor on the date of this
Deed of Trust, together with all substitutions, modifications, and
amendments.

	
 

	
 

	
 

	
“Carveout
Obligations” means those obligations described in Section 21.

	
 

	
 

	
 

	
Deed of Trust and Security
Agreement

	
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Preston Royal Village,
Dallas, Texas

	
 

	
 

	
AEGON Loan No. 10512155

	
 

	
 

	
 

	
 

	
 

	
“Carveout
Obligor” means AmREIT, Inc. Any other Person who expressly assumes
liability for the Carveout Obligations during the term of the Loan shall
become a “Carveout Obligor” for purposes of this Deed of Trust.

	
 

	
 

	
 

	
“Carveouts”
means those matters from which Carveout Obligations may arise, which are
described in Section 21.

	
 

	
 

	
 

	
“Charges”
means all fees, charges, and other things of value, if any, contracted for,
charged, received, taken or reserved pursuant to the Note or any of the other
Loan Documents in connection with the Loan, and which are treated as interest
under applicable law (whether in connection with any voluntary prepayment of
the Indebtedness, or otherwise, and including fees for the forbearance of any
enforcement action or for the extension or modification of the Loan).

	
 

	
 

	
 

	
“Condemnation
Proceeds” means all money or other property that has been, or is in the
future, awarded or agreed to be paid or given in connection with any taking
by eminent domain of all or any part of the Real Property (including a taking
through the vacation of any street dedication or through a change of grade of
such a street), either permanent or temporary, or in connection with any
purchase in lieu of such a taking, or as a part of any related settlement,
except for the right to condemnation proceeds awarded to the tenant in a
separate proceeding in respect of the lost value of the tenant’s leasehold
interest, provided that the award does not reduce, directly or indirectly,
the award to the owner of the Real Property.

	
 

	
 

	
 

	
“Curable
Non-Monetary Default” means any of the acts, omissions, or circumstances
specified in Subsection 10.3 below.

	
 

	
 

	
 

	
“Default”
means any of the acts, omissions, or circumstances specified in Section 10
below.

	
 

	
 

	
 

	
“Default
Rate” means the rate of interest specified as the “Default Rate” in the
Note.

	
 

	
 

	
 

	
“Development
Agreements” means all development, utility or similar agreements included
in the Permitted Encumbrances.

	
 

	
 

	
 

	
“Easements”
means the Borrower’s existing and future interests in and to the
declarations, easements, covenants, and restrictions appurtenant to the Land.

	
 

	
 

	
 

	
“Environmental
Indemnity Agreement” means the Loan Document bearing that heading,
together with all substitutions, modifications, and amendments.

	
 

	
 

	
 

	
“Environmental
Laws” means all present and future laws, statutes, ordinances, rules,
regulations, orders, guidelines, rulings, decrees, notices and determinations
of any Governmental Authority to the extent that they pertain to: (A) the
protection of health against environmental hazards; (B) the protection of the
environment, including air, soils, wetlands, and surface and underground water,
from contamination by any substance that may have any adverse health effect
on humans, livestock, fish, wildlife, or plant life, or which may disturb an
ecosystem; (C) underground storage tank regulation or removal; (D) wildlife
conservation; (E) protection or regulation of natural resources; (F) the
protection of wetlands; (G) management, regulation and disposal of solid and
hazardous wastes; (H) radioactive materials; (I) biologically hazardous
materials; (J) indoor air quality; or (K) the manufacture, possession,
presence, use, generation, storage, transportation, treatment, release,
emission, discharge, disposal, abatement, cleanup, removal, remediation or
handling of any Hazardous Substances. “Environmental Laws” include the
Comprehensive Environmental Response, Compensation, and Liability Act, as
amended by the Superfund Amendments and Reauthorization Act of 1986, 42
U.S.C. 

	
 

	
 

	
 

	
Deed of Trust and Security
Agreement

	
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Preston Royal Village,
Dallas, Texas

	
 

	
 

	
AEGON Loan No. 10512155

	
 

	
 

	
 

	
 

	
 

	
§9601 et seq., the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et
seq., the Federal Water Pollution Control Act, as amended by the Clean Water
Act, 33 U.S.C. §1251 et seq., the Clean Air Act, 42 U.S.C. §7401 et seq., the
Toxic Substances Control Act, 15 U.S.C. §2601 et seq., the Texas Solid Waste
Disposal Act (V.T.C.A. Health and Safety Code §361.001 et. seq.), the Texas
Water Code (V.T.C.A. §36.001 et seq.), all similar state statutes and local
ordinances, and all regulations promulgated under any of those statutes, and
all administrative and judicial actions respecting such legislation, all as
amended from time to time.

	
 

	
 

	
 

	
“ESA”
means the written environmental site assessment of the Real Property obtained
under the terms of the Commitment.

	
 

	
 

	
 

	
“Escrow
Expenses” means those expenses in respect of real and personal property
taxes and assessments, Insurance Premiums and such other Impositions as the
Lender pays from time to time directly from the Escrow Fund using monies
accumulated through the collection of Monthly Escrow Payments.

	
 

	
 

	
 

	
“Escrow
Fund” means the funds deposited by Borrower with the Lender pursuant to
Section 9 hereof, as reflected in the accounting entry maintained on the
books of the Lender as funds available for the payment of Escrow Expenses
under the terms of this Deed of Trust.

	
 

	
 

	
 

	
“Fixtures”
means all materials, supplies, equipment, apparatus and other items now or
hereafter attached to or installed on the Land and Improvements in a manner
that causes them to become fixtures under the laws of Texas, including all
built-in or attached furniture or appliances, elevators, escalators, heating,
ventilating and air conditioning system components, emergency electrical
generators and related fuel storage or delivery systems, septic system
components, storm windows, doors, electrical equipment, plumbing, water
conditioning, lighting, cleaning, snow removal, lawn, landscaping,
irrigation, security, incinerating, fire-fighting, sprinkler or other fire
safety equipment, bridge cranes or other installed materials handling
equipment, satellite dishes or other telecommunication equipment, built-in
video conferencing equipment, sound systems or other audiovisual equipment,
and cable television distribution systems. Fixtures do not include trade
fixtures, office furniture and office equipment owned by a tenant who is
unrelated to the Borrower, provided such items may be detached and
removed by the tenant without damage to the Real Property, other than
incidental damage that the tenant is obligated to repair under the terms of
its Lease. Fixtures expressly include HVAC, mechanical, security and similar
systems of general utility for the operation of the Improvements as leasable
commercial real property.

	
 

	
 

	
 

	
“Governmental
Authority” means any political entity with the legal authority to impose
any requirement on the Property, including the governments of the United
States, the State of Texas, Dallas County, the City of Dallas, and any other
entity with jurisdiction to decide, regulate, or affect the ownership,
construction, use, occupancy, possession, operation, maintenance, alteration,
repair, demolition or reconstruction of any portion or element of the Real
Property.

	
 

	
 

	
 

	
“Hazardous
Substance” means any substance the release of or the exposure to which is
prohibited, limited or regulated by any Environmental Law, or which poses a
hazard to human health, including: (A) any “oil,” as defined by the Federal
Water Pollution Control Act and regulations promulgated thereunder (including
crude oil or any fraction of crude oil), (B) any radioactive substance and
(C) Stachybotrys chartarum or other molds. However, the term “Hazardous
Substance” includes neither (A) a substance used in the cleaning and
maintenance of the Real Property, if the quantity, storage and manner of its 

	
 

	
 

	
 

	
Deed of Trust and Security
Agreement

	
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Preston Royal Village,
Dallas, Texas

	
 

	
 

	
AEGON Loan No. 10512155

	
 

	
 

	
 

	
 

	
 

	
use are
customary, prudent, and do not violate applicable law, nor (B) automotive
motor oil in immaterial quantities, if leaked from vehicles in the ordinary
course of the operation of the Real Property and cleaned up in accordance
with reasonable property management procedures and in a manner that violates
no applicable law.

	
 

	
 

	
 

	
“Impositions”
means all real and personal property taxes levied against the Property;
general or special assessments; ground rent; water, gas, sewer, vault,
electric or other utility charges; common area charges; owners’ association
dues or fees; fees for any easement, license or agreement maintained for the
benefit of the Property; and any and all other taxes, levies, user fees,
claims, charges and assessments whatsoever that at any time may be assessed,
levied or imposed on the Property or upon its ownership, use, occupancy or
enjoyment, and any related costs, interest or penalties. In addition,
“Impositions” include all documentary, stamp or intangible personal property
taxes that may become due in connection with the Indebtedness, including
Indebtedness in respect of any future advance made by the Lender to the
Borrower, or that are imposed on any of the Loan Documents.

	
 

	
 

	
 

	
“Improvements”
means, to the extent of the Borrower’s existing and future interest, all
buildings and improvements of any kind erected or placed on the Land now or in
the future, including the Fixtures, together with all appurtenant rights,
privileges, Easements, tenements, hereditaments, titles, reversions,
remainders and other interests.

	
 

	
 

	
 

	
“Indebtedness”
means all sums that are owed or become due pursuant to the terms of the Note,
this Deed of Trust, or any of the other Loan Documents or any other writing
executed by the Borrower relating to the Loan, including scheduled principal
payments, scheduled interest payments, default interest, late charges,
prepayment premiums, accelerated or matured principal balances, advances,
collection costs (including reasonable attorneys’ fees), reasonable
attorneys’ fees and costs in enforcing or protecting the Note, this Deed of
Trust, or any of the other Loan Documents in any probate, bankruptcy or other
proceeding, receivership costs, fees and costs of the Trustee and all other
financial obligations of the Borrower incurred in connection with the Loan
transaction, provided, however, that this Deed of Trust shall not secure any
Loan Document or any particular person’s liabilities or obligations under any
Loan Document to the extent that such Loan Document expressly states that it
or such particular person’s liabilities or obligations are unsecured by this
Deed of Trust. “Indebtedness” shall also include any obligations under
agreements executed and delivered by Borrower which specifically provide that
such obligations are secured by this Deed of Trust.

	
 

	
 

	
 

	
“Insurance
Premiums” means all premiums or other charges required to maintain in
force any and all insurance policies that this Deed of Trust requires that
the Borrower maintain.

	
 

	
 

	
 

	
“Insurance
Proceeds” means (A) all proceeds of all insurance now or hereafter
carried by or payable to the Borrower with respect to the Real Property,
including with respect to the interruption of rents or income derived from
the Property, all unearned insurance premiums and all related claims or
demands, and (B) all Proceeds (as defined in Subsection 22.1).

	
 

	
 

	
 

	
“Key
Lease” means any Lease that satisfies one or more of the following
conditions:

	
 

	
 

	
 

	
 

	
(a)

	
The Lease is to a tenant who leases or will
lease more than 12,000 square feet of the net leasable area of the
Improvements, either presently or following the execution of a proposed
Lease.

	
 

	
 

	
 

	
 

	
(b)

	
The Lease is to a tenant whose rental
payment(s) under all Leases comprises or will comprise more than 20% of the
gross rental income of 

	
 

	
 

	
 

	
Deed of Trust and Security
Agreement

	
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Preston Royal Village,
Dallas, Texas

	
 

	
 

	
AEGON Loan No. 10512155

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
the Real Property, either presently or
following the execution of a proposed Lease.

	
 

	
 

	
 

	
“Key
Principal” means AmREIT, Inc.

	
 

	
 

	
 

	
“Land”
means that certain tract of land located in Dallas County, Texas, which is
described on the attached Exhibit A, together with the Appurtenances.

	
 

	
 

	
 

	
“Leasehold
Shopping Center Parcel” means the approximately 7.49 acre parcel of land
generally located at 6025 Royal Lane, the leasehold interest which is being
acquired by AmREIT Preston Royal NEC,
LP concurrently with this Deed of Trust.

	
 

	
 

	
 

	
“Leases”
means all leases, subleases, licenses, concessions, extensions, renewals and
other agreements (whether written or oral, and whether presently effective or
made in the future) through which the Borrower grants any possessory interest
in and to, or any right to occupy or use, all or any part of the Real
Property, and any related guaranties.

	
 

	
 

	
 

	
“Legal
Control” means the power, either directly or indirectly, to exercise the
authority of the Borrower as owner of the Real Property, either as the
majority shareholder of the common stock of a corporation, the sole general
partner of a limited partnership, the managing general partner of a general
partnership, or the sole manager or sole managing member of a limited
liability company, provided the person or entity exercising such authority
cannot be divested of such authority without its consent, either directly or
indirectly, except for cause.

	
 

	
 

	
 

	
“Legal
Requirements” means all laws, statutes, rules, regulations, ordinances,
judicial decisions, administrative decisions, building permits, development
permits, certificates of occupancy, or other requirements of any Governmental
Authority. 

	
 

	
 

	
 

	
“Loan
Documents” means all documents evidencing the Loan or delivered in
connection with the Loan, whether entered into at the closing of the Loan or
in the future, including, without limitation, the Note, this Deed of Trust,
the Assignment of Leases and Rents, the Carveout Guarantee and Indemnity, and
the Environmental Indemnity Agreement.

	
 

	
 

	
 

	
“Maximum
Lawful Rate” means the maximum lawful rate of interest that may be
contracted for, charged, received or reserved by the Lender in accordance
with the applicable laws of the State of Texas (or applicable federal law to
the extent that it permits the Lender to contract for, charge, take, receive
or reserve a greater amount of interest than under Texas law), taking into
account all Charges.

	
 

	
 

	
 

	
“Monthly
Escrow Payment” means the sum of the Monthly Imposition Requirement, the
Monthly Insurance Premium Requirement, and the Monthly Reserve Requirement.

	
 

	
 

	
 

	
“Monthly
Imposition Requirement” means one-twelfth (1/12th) of the annual amount
that the Lender estimates will be required to permit the timely payment by
the Lender of those Impositions that the Lender elects, from time to time, to
include in the calculation of the Monthly Imposition Requirement. Such
Impositions shall include real and personal property taxes and may include,
at the Lender’s sole and absolute discretion, any Impositions that the Borrower
has failed to pay on a timely basis during the term of the Loan. The Lender
shall base its estimate on the most recent information supplied by the
Borrower concerning future Impositions. If the Borrower fails to supply such
information or if it is unavailable at the time of estimation, the Lender
shall estimate future Impositions using historical information and an annual
inflation factor equal to the lesser of five percent (5%) and the maximum
inflation factor permitted by law.

	
 

	
 

	
 

	
“Monthly
Insurance Premium Requirement” means one-twelfth (1/12th) of the annual
amount that the Lender estimates (based on available historical data and
using, if future

	
 

	
 

	
 

	
Deed of Trust and Security
Agreement

	
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Preston Royal Village,
Dallas, Texas

	
 

	
 

	
AEGON Loan No. 10512155

	
 

	
 

	
 

	
 

	
 

	
Insurance
Premiums are as yet undeterminable, a five percent (5%) inflation factor)
will be required to permit the timely payment of the Insurance Premiums by
the Lender.

	
 

	
 

	
 

	
“Monthly
Reserve Requirement” means the monthly payment amount which the Lender
estimates will result, over the subsequent twelve (12) months, in the
accumulation of a surplus in the Escrow Fund equal to the sum of the Monthly
Imposition Requirement and the Monthly Insurance Premium Requirement.

	
 

	
 

	
 

	
“Note”
means the promissory note dated of even date herewith to evidence the
Indebtedness in the original principal amount of $23,400,000, together with
all extensions, renewals and modifications.

	
 

	
 

	
 

	
“Notice”
means a notice given in accordance with the provisions of Subsection 27.12.

	
 

	
 

	
 

	
“Obligations”
means all of the obligations required to be performed under the terms and
conditions of any of the Loan Documents by any Obligor.

	
 

	
 

	
 

	
“Obligor”
means the Borrower, the Carveout Obligor, or any other Person that is liable
under the Loan Documents for the payment of any portion of the Indebtedness,
or the performance of any other obligation required to be performed under the
terms and conditions of any of the Loan Documents, under any circumstances.

	
 

	
 

	
 

	
“Participations”
means participation interests in the Loan Documents granted by the Lender.

	
 

	
 

	
 

	
“Permitted
Control Group Member” shall mean any member of a group comprised of the
Key Principal, institutional trustees of estate planning trusts established
for the sole benefit of Permitted Control Group Members, and executors of the
estates of Permitted Control Group Members.

	
 

	
 

	
 

	
“Permitted
Encumbrances” means (A) the lien of taxes and assessments not yet due and
payable and (B) those matters of public record listed as special exceptions
or subordinate matters in the Lender’s title insurance policy insuring the
priority of this Deed of Trust.

	
 

	
 

	
 

	
“Permitted
Transfer” means a transfer specifically described in Section 14 as
permitted.

	
 

	
 

	
 

	
“Person”
means any individual, corporation, limited liability company, partnership,
trust, unincorporated association, government, governmental authority or
other entity.

	
 

	
 

	
 

	
“Property”
means the Real Property and the Leases, Rents and Personal Property (as such
latter term is defined in Subsection 22.1 below).

	
 

	
 

	
 

	
“Qualified
Offer” means a written offer from the Borrower to do whichever of the
following the Lender elects: (A) permit an uncontested foreclosure, or (B)
deliver a deed in lieu of foreclosure within sixty (60) days of the Lender’s
acceptance of the offer. An offer is not a Qualified Offer if the offer is
conditioned on any payment by the Lender, on the release of any Obligor from
any Obligation, or on any other concession.

	
 

	
 

	
 

	
“Qualified
Passive Interest Transfer” shall have the meaning stated in Section 14.

	
 

	
 

	
 

	
“Qualified
Property Manager” means either (A) a property management company approved
in writing by the Lender, or (B) AmREIT Realty Investment Corporation.

	
 

	
 

	
 

	
“Real
Property” means the Land and the Improvements.

	
 

	
 

	
 

	
“Rents”
means all rents, income, receipts, issues and profits and other benefits paid
or payable for using, leasing, licensing, possessing, operating from or in,
residing in, selling, mining, extracting minerals from, or otherwise enjoying
the Real Property, whether presently existing or arising in the future, to
which the Borrower may now or hereafter 

	
 

	
 

	
 

	
Deed of Trust and Security
Agreement

	
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Preston Royal Village,
Dallas, Texas

	
 

	
 

	
AEGON Loan No. 10512155

	
 

	
 

	
 

	
 

	
 

	
become
entitled or may demand or claim from the commencement of the Loan term
through the time of the satisfaction of all of the Obligations, including
security deposits, amounts drawn under letters of credit securing tenant
obligations, minimum rents, additional rents, common area maintenance
charges, parking revenues, deficiency rents, termination payments, space
contraction payments, damages following default under a Lease, premiums
payable by tenants upon their exercise of cancellation privileges, proceeds
from lease guarantees, proceeds payable under any policy of insurance
covering loss of rents resulting from untenantability caused by destruction
or damage to the Real Property, all rights and claims of any kind which the
Borrower has or may in the future have against the tenants under the Leases,
lease guarantors, or any subtenants or other occupants of the Real Property,
all proceeds of any sale of the Real Property in violation of the Loan
Documents, any future award granted the Borrower in any court proceeding
involving any such tenant in any bankruptcy, insolvency, or reorganization
proceedings in any state or federal court, and any and all payments made by
any such tenant in lieu of rent.

	
 

	
 

	
 

	
“Restoration”
means (A) in the case of a casualty resulting in damage to or the destruction
of the Improvements, the repair or rebuilding of the Improvements to their
original condition, or (B) in the case of the condemnation of a portion of
the Real Property, the completion of such work as may be necessary in order
to remedy the effects of the condemnation so that the value and
income-generating characteristics of the Real Property are restored.

	
 

	
 

	
 

	
“Shopping
Center” means the Real Property together with the Leasehold Shopping
Center Parcel.

	
 

	
 

	
 

	
“Termination
Payments” means Rents paid to the Borrower in consideration of the
Borrower’s release of a party from liability for a contractual or other legal
obligation (e.g., lease termination, space contraction, and legal settlement
payments). Termination Payments do not include payments of Rents under
$250,000 paid pursuant to termination or space contraction options contained
in Leases approved by the Lender or in Leases deemed approved or not
requiring Lender approval under the Assignment.

	
 

	
 

	
4.

	
TITLE

	
 

	
 

	
 

	
The Borrower
represents to and covenants with the Lender and with its successors and
assigns that, at the point in time of the grant of this Deed of Trust, the
Borrower is well seized of good and indefeasible title to the Real Property,
in fee simple absolute, subject to no lien or encumbrance except the
Permitted Encumbrances. The Borrower warrants this estate and title to the
Lender and to its successors and assigns forever, against all lawful claims
and demands of all Persons. The Borrower shall maintain mortgagee title
insurance issued by a solvent carrier, covering the Real Property in an
amount at least equal to the amount of the Loan’s original principal balance.
This Deed of Trust is and shall remain a valid and enforceable first mortgage
on and security title to the Real Property, and if the validity or
enforceability of this first mortgage is attacked by appropriate proceedings,
the Borrower shall diligently and continuously defend it through appropriate
proceedings. Should the Borrower fail to do so, the Lender may at the
Borrower’s expense take all necessary action, including the engagement and
compensation of legal counsel, the prosecution or defense of litigation, and
the compromise or discharge of claims. THE BORROWER SHALL DEFEND, INDEMNIFY AND HOLD THE
LENDER HARMLESS IN ANY SUIT OR PROCEEDING BROUGHT TO CHALLENGE OR ATTACK THE
VALIDITY,

	
 

	
 

	
 

	
Deed of Trust and Security
Agreement

	
-9-

	
 

	
Preston Royal Village,
Dallas, Texas

	
 

	
 

	
AEGON Loan No. 10512155

	
 

	
 

	
 

	
 

	
 

	
 

	
ENFORCEABILITY OR PRIORITY OF THE LIEN
GRANTED BY THIS DEED OF TRUST, WHETHER OR NOT AS THE RESULT OF THE NEGLIGENCE
OF LENDER. If a prior construction, mechanics’ or
materialmen’s lien on the Real Property arises by operation of statute during
any construction or repair of the Improvements, the Borrower shall either
cause the lien to be discharged by paying when due any amounts owed to such
persons, or shall comply with Section 12 of this Deed of Trust.

	
 

	
 

	
5.

	
REPRESENTATIONS OF THE BORROWER

	
 

	
 

	
 

	
The Borrower
represents to the Lender as follows: 

	
 

	
 

	
 

	
5.1

	
Legal Control

	
 

	
 

	
 

	
 

	
 

	
The Borrower
is under the Legal Control of the Key Principal.

	
 

	
 

	
 

	
 

	
5.2

	
Formation, Existence, Good Standing

	
 

	
 

	
 

	
 

	
 

	
The Borrower
is a limited partnership duly organized, validly existing and in good
standing under the laws of Texas.

	
 

	
 

	
 

	
 

	
5.3

	
Power and Authority

	
 

	
 

	
 

	
 

	
 

	
The Borrower
has full power and authority to carry on its business as presently conducted,
to own the Property, to execute and deliver the Loan Documents, and to perform
its Obligations.

	
 

	
 

	
 

	
 

	
5.4

	
Anti-Terrorism Regulations

	
 

	
 

	
 

	
 

	
 

	
No Borrower,
Borrower Affiliate, or person owning an interest in the Borrower or in any
Borrower Affiliate, is either a “Specially Designated National” or a “Blocked
Person” as those terms are defined in the Office of Foreign Asset Control
Regulations (31 CFR Section 500 et seq.).

	
 

	
 

	
 

	
 

	
5.5

	
Due Authorization

	
 

	
 

	
 

	
 

	
 

	
The Loan
transaction and the performance of all of the Borrower’s Obligations have
been duly authorized by all requisite partnership action, and each individual
executing any Loan Document on behalf of the Borrower has been duly
authorized to do so.

	
 

	
 

	
 

	
 

	
5.6

	
No Default or Violations

	
 

	
 

	
 

	
 

	
 

	
The
execution and performance of the Borrower’s Obligations will not result in
any breach of, or constitute a default under, any contract, agreement,
document or other instrument to which the Borrower is a party or by which the
Borrower may be bound or affected, and do not and will not violate or
contravene any law to which the Borrower is subject; nor do any such other
instruments impose or contemplate any obligations which are or will be
inconsistent with the Loan Documents.

	
 

	
 

	
 

	
 

	
5.7

	
No
Further Approvals or Actions Required

	
 

	
 

	
 

	
 

	
 

	
No approval
by, authorization of, or filing with any Governmental Authority is necessary
in connection with the authorization, execution and delivery of the Loan
Documents by the Borrower.

	
 

	
 

	
 

	
Deed of Trust and Security
Agreement

Preston Royal Village, Dallas, Texas

AEGON Loan No. 10512155

	
-10-

	
 

	
 

	
 

	
 

	
 

	
5.8

	
Due Execution and Delivery

	
 

	
 

	
 

	
 

	
 

	
Each of the
Loan Documents to which the Borrower is a party has been duly executed and
delivered on behalf of the Borrower.

	
 

	
 

	
 

	
 

	
5.9

	
Legal, Valid, Binding and Enforceable

	
 

	
 

	
 

	
 

	
 

	
Each of the
Loan Documents to which the Borrower is a party constitutes the legal, valid
and binding obligation of the Borrower, enforceable against the Borrower in
accordance with its terms.

	
 

	
 

	
 

	
 

	
5.10

	
Accurate Financial Information

	
 

	
 

	
 

	
 

	
 

	
All
financial information furnished by the Borrower to the Lender in connection
with the application for the Loan is true, correct and complete in all
material respects except as otherwise disclosed to Lender in writing, and
there has been no material adverse change in the financial condition of the
Borrower since the date of such financial information.

	
 

	
 

	
 

	
 

	
5.11

	
Compliance with Legal Requirements

	
 

	
 

	
 

	
 

	
 

	
All
governmental approvals and licenses required for the conduct of the
Borrower’s business and for the maintenance and operation of the Real
Property in compliance with applicable law are in full force and effect, and
the Real Property is currently being operated in compliance with the Legal
Requirements in all material respects.

	
 

	
 

	
 

	
 

	
5.12

	
Contracts and Franchises

	
 

	
 

	
 

	
 

	
 

	
All
contracts and franchises necessary for the conduct of the Borrower’s business
and for the operation of the Real Property in accordance with reasonable
commercial practice are in force.

	
 

	
 

	
 

	
 

	
5.13

	
No Condemnation Proceeding

	
 

	
 

	
 

	
 

	
 

	
As of the
Effective Date of this Deed of Trust, the Borrower has no knowledge of any
present, pending or threatened condemnation proceeding or award affecting the
Real Property.

	
 

	
 

	
 

	
 

	
5.14

	
No Casualty

	
 

	
 

	
 

	
 

	
 

	
As of the
Effective Date of this Deed of Trust, no damage to the Real Property by any
fire or other casualty has occurred, other than damage that has been
completely repaired, except as disclosed to Lender.

	
 

	
 

	
 

	
 

	
5.15

	
Independence of the Real Property

	
 

	
 

	
 

	
 

	
 

	
The Real
Property may be operated independently from other land and improvements not
included within or located on the Land, and it is not necessary to own or
control any property other than the Real Property in order to comply with the
Legal Requirements.

	
 

	
 

	
 

	
 

	
5.16

	
Complete Lots and Tax Parcels

	
 

	
 

	
 

	
 

	
 

	
The Land is
comprised exclusively of tax parcels that are entirely included within the
Land, and, if the Land is subdivided, of subdivision lots that are entirely
included within the Land.

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement

Preston Royal Village, Dallas, Texas

AEGON Loan No. 10512155

	
-11-

	
 

	
 

	
 

	
 

	
 

	
5.17

	
Intentionally Omitted

	
 

	
 

	
 

	
 

	
5.18

	
Ownership of Fixtures

	
 

	
 

	
 

	
 

	
 

	
The Borrower
owns the Fixtures free of any encumbrances, including purchase money security
interests, rights of lessors, and rights of sellers under conditional sales
contracts or other financing arrangements.

	
 

	
 

	
 

	
 

	
5.19

	
Commercial Property

	
 

	
 

	
 

	
 

	
 

	
The Real
Property is commercial rather than residential, and the Loan has not been
made for personal, family or household purposes.

	
 

	
 

	
 

	
 

	
5.20

	
Real Property is not Homestead Property

	
 

	
 

	
 

	
 

	
 

	
The Real
Property is NOT HOMESTEAD PROPERTY of the Borrower or of the spouse of any
person named as the Borrower.

	
 

	
 

	
 

	
 

	
5.21

	
Performance under Development Agreements

	
 

	
 

	
 

	
 

	
 

	
To
Borrower’s knowledge, all of the obligations of the owner of the Real
Property due under the Development Agreements have been fully, timely and
completely performed and such performance has been accepted by the related
governmental agency or utility company, and no Governmental Authority has
alleged that any default exists under any of the Development Agreements.

	
 

	
 

	
 

	
 

	
5.22

	
Status of Certain Title Matters

	
 

	
 

	
 

	
 

	
 

	
To
Borrower’s knowledge, each of the Easements included within the Appurtenances
(a) is valid and in full force and effect and may not be amended or
terminated, except for cause, without the consent of the Borrower, (b) has
not been amended or supplemented, (c) requires no approval of the
Improvements that has not been obtained, (d) is free of defaults or alleged
defaults, (e) does not provide for any assessment against the Real Property
that will not be paid in full prior to delinquency, and (f) has not been
violated by the owner of the Real Property or, to the best of the Borrower’s
knowledge, by any tenant of the Real Property.

	
 

	
 

	
 

	
 

	
5.23

	
No Prohibited Transactions

	
 

	
 

	
 

	
 

	
 

	
The Borrower
represents to the Lender that either (a) the Borrower is not an “employee
benefit plan” within the meaning of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”), that is subject to Title I of ERISA, a
“plan” within the meaning of Section 4975 of the Internal Revenue Code of
1986, as amended (the “Code”), or an entity that is deemed to hold “plan
assets” within the meaning of 29 C.F.R. §2510.3-101 of any such employee
benefit plan or (b) the execution of the Loan Documents, the acceptance of
the Loan by the Borrower and the existence of the Loan will not result in a
non-exempt prohibited transaction under §406 of ERISA or Section 4975 of the
Code. The Borrower further warrants and covenants that the foregoing
representation will remain true during the term of the Loan.

	
 

	
 

	
 

	
 

	
The Lender
acknowledges that the Borrower has relied in full or in part on
representations from, or on information furnished by, the seller of the Real
Property in making the representations of Subsections 5.11 (“Compliance with
Legal Requirements”), 5.12 (“Contracts and Franchises”), 5.13 (“No
Condemnation Proceeding”), 5.14 (“No Casualty”), 5.21 (“Performance under
Development Agreements”), 5.22 (“Status of Certain Title Matters”).

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement

Preston Royal Village, Dallas, Texas

AEGON Loan No. 10512155

	
-12-

	
 

	
 

	
 

	
 

	
 

	
6.

	
COVENANTS

	
 

	
 

	
 

	
6.1

	
Good Standing

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall remain in good standing as a limited partnership under the laws of
Texas and shall maintain in force all statements of fictitious name and
registrations necessary for the lawful operation of its business in Texas
during the term of the Loan.

	
 

	
 

	
 

	
 

	
6.2

	
No Default or Violations

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall not enter into any contract, agreement, document or other instrument,
if the performance of the Borrower’s Obligations would result in any breach
of, or constitute a default under, any such contract, agreement, document or
other instrument, or if the contract, agreement, document or other instrument
would impose or contemplate any obligations the performance of which would
result in a Default under the Loan Documents or would be inconsistent with
the performance of the Borrower’s Obligations.

	
 

	
 

	
 

	
 

	
6.3

	
Payment and Performance

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall pay the Indebtedness and perform all of its other Obligations, as and
when the Loan Documents require such payment and performance.

	
 

	
 

	
 

	
 

	
6.4

	
Bankruptcy Remote Entity

	
 

	
 

	
 

	
 

	
 

	
The Borrower
has not and will not:

	
 

	
 

	
 

	
 

	
 

	
(i)

	
engage in
any business or activity other than the ownership, operation and maintenance
of the Property, and activities incidental thereto;

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
acquire or
own any assets other than (A) the Property, and (B) such incidental Personal
Property as may be necessary for the operation of the Property;

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
merge into
or consolidate with any Person, or dissolve, terminate, liquidate in whole or
in part, transfer or otherwise dispose of all or substantially all of its
assets or change its legal structure;

	
 

	
 

	
 

	
 

	
 

	
 

	
(iv)

	
fail to
observe all organizational formalities, or fail to preserve its existence as
an entity duly organized, validly existing and in good standing (if
applicable) under the Legal Requirements of the jurisdiction of its
organization or formation, or amend, modify, terminate or fail to comply with
the provisions of its organizational documents;

	
 

	
 

	
 

	
 

	
 

	
 

	
(v)

	
own any
subsidiary, or make any investment in, any Person;

	
 

	
 

	
 

	
 

	
 

	
 

	
(vi)

	
commingle
its assets with the assets of any other Person;

	
 

	
 

	
 

	
 

	
 

	
 

	
(vii)

	
incur any
debt, secured or unsecured, direct or contingent (including guaranteeing any
obligation), other than the Indebtedness, unsecured trade payables and
unsecured equipment leases (both of which must be incurred in the ordinary
course of business relating to the ownership and operation of the Property)
provided the same (x) do not exceed at any time in the aggregate a maximum
amount of three percent (3%) of the outstanding principal amount of the Note,
and (y) are paid within sixty (60) days after the date incurred;

	
 

	
 

	
 

	
 

	
 

	
 

	
(viii)

	
fail to
maintain its records, books of account, bank accounts, financial statements,
accounting records and other entity documents separate and apart from those
of any other Person;

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement

Preston Royal Village, Dallas, Texas

AEGON Loan No. 10512155

	
-13-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(ix)

	
enter into
any contract or agreement with any general partner, member, shareholder,
principal or Affiliate, except upon terms and conditions that are
intrinsically fair and substantially similar to those that would be available
on an arm’s-length basis with unaffiliated third parties;

	
 

	
 

	
 

	
 

	
 

	
 

	
(x)

	
maintain its
assets in such a manner that it will be costly or difficult to segregate,
ascertain or identify its individual assets from those of any other Person;

	
 

	
 

	
 

	
 

	
 

	
 

	
(xi)

	
assume or
guaranty the debts of any other Person, hold itself out to be responsible for
the debts of any other Person, or otherwise pledge its assets for the benefit
of any other Person or hold out its credit as being available to satisfy the
obligations of any other Person;

	
 

	
 

	
 

	
 

	
 

	
 

	
(xii)

	
make any
loans or advances to any Person;

	
 

	
 

	
 

	
 

	
 

	
 

	
(xiii)

	
fail to file
its own tax returns (unless prohibited by Legal Requirements from doing so);

	
 

	
 

	
 

	
 

	
 

	
 

	
(xiv)

	
fail either
to hold itself out to the public as a legal entity separate and distinct from
any other Person or to conduct its business solely in its own name or fail to
correct any known misunderstanding regarding its separate identity;

	
 

	
 

	
 

	
 

	
 

	
 

	
(xv)

	
fail to
maintain adequate capital for the normal obligations reasonably foreseeable
in a business of its size and character and in light of its contemplated
business operation;

	
 

	
 

	
 

	
 

	
 

	
 

	
(xvi)

	
fail to
allocate shared expenses (including shared office space) and to use separate
stationery, invoices and checks;

	
 

	
 

	
 

	
 

	
 

	
 

	
(xvii)

	
fail to pay
its own liabilities (including salaries of its own employees) from its own
funds; and

	
 

	
 

	
 

	
 

	
 

	
 

	
(xviii)

	
acquire
obligations or securities of its partners, members, shareholders or other
Affiliates, as applicable.

	
 

	
 

	
 

	
 

	
 

	
6.5

	
Payment of Impositions

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall pay the Impositions on or before the last day on which they may be paid
without penalty or interest, and shall, within thirty (30) days, furnish the
Lender with a paid receipt or a cancelled check as evidence of payment. If
the Lender does not receive such evidence, the Lender may obtain it directly.
If it does so, the Lender will charge the Borrower an administrative fee of
$250 for securing the evidence of payment. The payment of this fee shall be a
demand obligation of the Borrower. The Borrower may meet the Imposition
payment requirements of this Subsection 6.5 by remitting the Monthly Escrow
Payments when due, by immediately providing Notice to the Lender of any new
Imposition or increased Imposition unknown to the Lender, and by paying to
the Lender on demand any amount required to increase the Escrow Fund to an
amount sufficient to permit the Lender to pay all Impositions from the Escrow
Fund on time. If the Borrower wishes to contest the validity or amount of an
Imposition, it may do so by complying with Section 12. If any new Legal
Requirement (other than a general tax on income or on interest payments)
taxes this Deed of Trust so that the yield on the Indebtedness would be
reduced, and the Borrower may lawfully pay the tax or reimburse the Lender
for its payment, the Borrower shall do so.

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement

Preston Royal Village, Dallas, Texas

AEGON Loan No. 10512155

	
-14-

	
 

	
 

	
 

	
 

	
 

	
6.6

	
Legal Control of the Borrower

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall remain under the Legal Control of the Key Principal during the term of
the Loan.

	
 

	
 

	
 

	
 

	
6.7

	
Management of the Real Property

	
 

	
 

	
 

	
 

	
 

	
The Real
Property shall be managed at all times by the Key Principal, by a property
management company engaged by the Key Principal to manage the Real Property,
or by a Qualified Property Manager.

	
 

	
 

	
 

	
 

	
6.8

	
Maintenance of the Real Property

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall not commit or permit any waste of the Real Property as a physical or
economic asset, and agrees to maintain in good repair the Improvements,
including structures, roofs, mechanical systems, parking lots or garages, and
other components of the Real Property that are reasonably necessary or
desirable for the use of the Real Property, or which the Borrower as landlord
under any Lease is required to maintain for the benefit of any tenant. In its
performance of this Obligation, the Borrower shall promptly and in a good and
workmanlike manner repair or restore, as required under Subsection 6.19, any
elements of the Improvements that are damaged or destroyed. The Borrower
shall also replace roofs, parking lots, mechanical systems, and other
elements of the Improvements requiring periodic replacement. The Borrower
shall carry out such replacements no less frequently than would a
commercially reasonable owner intending to maintain the maximum
income-generating potential of the Real Property over its reasonable economic
life. The Borrower shall not, without the prior written consent of the
Lender, demolish, reconfigure, or materially alter the structural elements of
the Improvements, unless such an action is the obligation of the Borrower
under a Lease approved by Lender. The Lender agrees that any request for its
consent to such an action shall be deemed given if the Lender does not
respond within fifteen (15) Business Days to any written request for such a
consent, if the request is accompanied by all materials required to permit
the Lender to analyze the proposed action.

	
 

	
 

	
 

	
 

	
6.9

	
Use of the Real Property

	
 

	
 

	
 

	
 

	
 

	
The Borrower
agrees that the Real Property may only be used as a retail property and for
no other purpose.

	
 

	
 

	
 

	
 

	
6.10

	
Legal Requirements

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall maintain in full force and effect all governmental approvals and
licenses required for the conduct of the Borrower’s business and for the
maintenance and operation of the Real Property in compliance with applicable
law, and shall comply with all Legal Requirements relating to the Real
Property at all times.

	
 

	
 

	
 

	
 

	
6.11

	
Contracts and Franchises

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall maintain in force all contracts and franchises necessary for the
conduct of the Borrower’s business and for the operation of the Real Property
in accordance with good commercial practice.

	
 

	
 

	
 

	
 

	
6.12

	
Covenants Regarding Certain Title Matters

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall promptly pay, perform and observe all of its obligations under the
Easements included within the Appurtenances or under reciprocal 

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement

Preston Royal Village, Dallas, Texas

AEGON Loan No. 10512155

	
-15-

	
 

	
 

	
 

	
 

	
 

	
 

	
easement
agreements, operating agreements, declarations, and restrictive covenants
included in the Permitted Encumbrances, shall not modify or consent to the
termination of any of them without the prior written consent of the Lender,
not to be unreasonably conditioned, withheld, or delayed, shall promptly
furnish the Lender with copies of all notices of default under them, and
shall cause all covenants and conditions under them and benefiting the Real
Property to be fully performed and observed.

	
 

	
 

	
 

	
 

	
6.13

	
Independence of the Real Property

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall maintain the independence of the Real Property from other land and
improvements not included within or located on the Land. In fulfilling this
covenant, the Borrower shall neither take any action which would make it
necessary to own or control any property other than the Real Property in
order to meet the obligations of the landlord under any Lease, or in order to
comply with the Legal Requirements, nor take any action which would cause any
land or improvements other than the Land and the Improvements to rely upon
the Land or the Improvements for those purposes.

	
 

	
 

	
 

	
 

	
6.14

	
Complete Lots and Tax Parcels

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall take no action that would result in the inclusion of any portion of the
Land in a tax parcel or subdivision lot that is not entirely included within
the Land.

	
 

	
 

	
 

	
 

	
6.15

	
Commercial Property

	
 

	
 

	
 

	
 

	
 

	
The Real
Property shall be used for commercial rather than for residential, personal,
family or household purposes.

	
 

	
 

	
 

	
 

	
6.16

	
Real Property is not Homestead Property

	
 

	
 

	
 

	
 

	
 

	
The Real
Property shall NOT BECOME HOMESTEAD PROPERTY of the Borrower or of the spouse
of any person named as the Borrower.

	
 

	
 

	
 

	
 

	
6.17

	
Performance under Development Agreements

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall fully, timely and completely perform all of the obligations of the
owner of the Real Property due under the Development Agreements (in all
material respects) and shall cause no default under any of the Development
Agreements.

	
 

	
 

	
 

	
 

	
6.18

	
Status of Certain Title Matters

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall not take or fail to take any action with respect to the Easements
included within the Appurtenances or the reciprocal easement agreements,
operating agreements, declarations, and restrictive covenants included in the
Permitted Encumbrances if, as the result of such an action or failure, the
subject Easement or other title matter would (a) be rendered invalid or
without force or effect, (b) be amended or supplemented without the consent
of the Lender, (c) be placed in default or alleged default, (d) result in any
lien against the Real Property, or (e) give rise to any assessment against
the Real Property, unless immediately paid in full.

	
 

	
 

	
 

	
 

	
6.19

	
Restoration upon Casualty or Condemnation

	
 

	
 

	
 

	
 

	
 

	
If a
casualty or condemnation occurs, the Borrower shall promptly commence and
diligently complete the Restoration of the Real Property, provided the
related 

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement

Preston Royal Village, Dallas, Texas

AEGON Loan No. 10512155

	
-16-

	
 

	
 

	
 

	
 

	
 

	
 

	
Insurance
Proceeds or Condemnation Proceeds held by the Lender are available for
Restoration under the terms of Sections 8.4 and 8.6.

	
 

	
 

	
 

	
 

	
6.20

	
Performance of Landlord Obligations 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall perform its obligations as landlord under the Leases and shall neither
take any action, nor fail to take any action, if the action or failure would
be inconsistent with the commercially reasonable management of the Real
Property for the purpose of enhancing its long-term performance and value.

	
 

	
 

	
 

	
 

	
6.21

	
Financial Reports and Operating Statements

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
Maintenance of Books and Records

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
During the
term of the Loan, the Borrower shall maintain complete and accurate
accounting and operational records, including copies of all Leases and other
material written contracts relating to the Real Property, copies of all tax
statements, and evidence to support the payment of all material
property-related expenses.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (b)

	
Delivery of Financial and Property-Related Information

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Within one
hundred twenty (120) days after the end of each of its fiscal years, or, if a
Default exists, on demand by the Lender, the Borrower shall deliver to the
Lender copies of the financial statements of the Borrower, including balance
sheets and earnings statements. Within thirty (30) days after the end of each
of its fiscal quarters, or, if a Default exists, on demand by the Lender, the
Borrower shall deliver to the Lender (A) a complete and accurate operating
statement for the Real Property, and (B) a complete rent roll, all in form
satisfactory to the Lender. The operating statement and rent roll must be
certified by the Borrower to be true and correct and must include each
tenant’s name, unit numbers, square footage occupied and leased, rents,
delinquencies, vacancies, and other income received and expenses. In
addition, the Borrower shall provide, with such rent rolls or otherwise at
the Lender’s reasonable request, the most recent available sales reports in
respect of all retail tenants occupying over 12,000 square feet and required
to provide such reports under their Leases. If the Borrower fails to deliver
the items required in this Subsection, the Lender may engage an accounting
firm to prepare the required items. The Borrower shall cooperate fully with
any investigative audit required to permit the accounting firm to produce
these items, and the fees and expenses incurred in connection with their
preparation shall be paid on demand by the Borrower.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (c)

	
Reporting Format

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall cooperate in providing the reports required above in any
industry-standard format that the Lender may designate, provided such
reporting format is not cost prohibitive.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (d)

	
Effect of Failure to Deliver Financial and Property Reports

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
If no
Default exists and the Borrower or the Carveout Obligor fails to provide the
financial and property reports required under this Section before the
applicable deadline, the Lender will provide a Notice of this 

	
 

	
 

	
 

	
Deed of Trust and
Security Agreement

Preston Royal Village, Dallas, Texas

AEGON Loan No. 10512155

	
-17-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
failure and
a thirty (30)-day opportunity to cure before a Default shall exist.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (e)

	
Certification of Information

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Lender shall
not initially require that the annual financial and operating statements
provided under this Subsection be certified by an independent certified
public accountant as having been prepared in accordance with generally
accepted accounting principles, consistently applied, or, in the case of
financial statements prepared on a cash or income tax basis, or of operating
statements, as not materially misleading based on an audit conducted in
accordance with generally accepted auditing standards. The Borrower shall,
however, certify that such statements are true and accurate in all material
respects, and the Lender expressly reserves the right to require such a
certification by an independent certified public accountant if a Default
exists or if the Lender has reason to believe that any previously provided
financial or operating statement is misleading in any material respect.

	
 

	
 

	
 

	
 

	
 

	
6.22

	
Estoppel Statements

	
 

	
 

	
 

	
 

	
 

	
Upon request
by the Lender, the Borrower shall, within ten (10) Business Days of Notice of
the request, furnish to the Lender or to whom it may direct, a written
statement acknowledging the amount of the Indebtedness and disclosing all
known offsets or defenses exist against the Indebtedness. Thereafter, the
Borrower shall be estopped from asserting any other offsets or defenses
alleged to have arisen and which should have been known to Borrower prior to
the date of the statement.

	
 

	
 

	
 

	
 

	
6.23

	
Prohibition on Certain Distributions

	
 

	
 

	
 

	
 

	
 

	
If a Default
exists under Subsection 10.1 or under any of Subparagraphs (b), (c), (d), (e)
or (f) of Subsection 10.2, the Borrower shall not pay any dividend or make
any partnership, trust or other distribution, and shall not make any payment
or transfer any property in order to purchase, redeem or retire any interest
in its beneficial interests or ownership.

	
 

	
 

	
 

	
 

	
6.24

	
Use of Loan Proceeds

	
 

	
 

	
 

	
 

	
 

	
The Loan
proceeds shall be used solely for commercial purposes.

	
 

	
 

	
 

	
 

	
6.25

	
Prohibition on Cutoff Notices

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall not issue any Notice to the Lender to the effect that liens on the Real
Property after the date of the Notice will enjoy priority over the lien of
this Deed of Trust.

	
 

	
 

	
 

	
 

	
6.26

	
Prohibited Person Compliance

	
 

	
 

	
 

	
 

	
 

	
The Borrower warrants, represents and covenants that neither the
Borrower nor any Obligor nor any of their respective affiliated entities is
or will be an entity or person (i) that is listed in the Annex to, or is
otherwise subject to the provisions of, Executive Order 13224 issued on
September 24, 2001 (“EO13224”), (ii) whose name appears on the United
States Treasury Department’s Office of Foreign Assets Control (“OFAC”) most
current list of “Specifically Designated Nationals and Blocked Persons”
(which list may be published from time to time in various mediums including,
but not limited to, the OFAC website,

	
 

	
 

	
 

	
Deed of Trust and
Security Agreement

Preston Royal Village, Dallas, Texas

AEGON Loan No. 10512155

	
-18-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
http:www.treas.gov/ofac/t11sdn.pdf), (iii) who commits, threatens to
commit or supports “terrorism”, as that term is defined in EO13224, or (iv)
who is otherwise affiliated with any entity or person listed above (any and
all parties or persons described in subparts [i] - [iv] above are herein
referred to as a “Prohibited Person”). The Borrower covenants and agrees that
neither the Borrower, nor any Obligor nor any of their respective affiliated
entities will (i) conduct any business, nor engage in any transaction or
dealing, with any Prohibited Person, including, but not limited to, the
making or receiving of any contribution of funds, goods, or services to or
for the benefit of a Prohibited Person, or (ii) engage in or conspire to
engage in any transaction that evades or avoids, or has the purpose of
evading or avoiding, or attempts to violate, any of the prohibitions set
forth in EO13224. The Borrower further covenants and agrees to deliver (from
time to time) to the Lender any such certification or other evidence as may
be requested by the Lender in its sole and absolute discretion, confirming
that (i) neither the Borrower nor any Obligor is a Prohibited Person and
(ii) neither the Borrower nor any Obligor has engaged in any business,
transaction or dealings with a Prohibited Person, including, but not limited
to, the making or receiving of any contribution of funds, goods, or services,
to or for the benefit of a Prohibited Person. Notwithstanding anything
contained in the foregoing to the contrary, any representation in this
Section as to AmREIT, Inc., is given solely to Borrower’s actual knowledge,
and unless otherwise required by law, Borrower shall have no duty to confirm
that any shareholder of AmREIT, Inc., is not a Prohibited Person, except with
respect to shareholders owning more than a 10% interest in AmREIT, Inc.

	
 

	
 

	
 

	
 

	
7.

	
INSURANCE REQUIREMENTS

	
 

	
 

	
 

	
At all times
until the Indebtedness is paid in full, the Borrower shall maintain insurance
coverage and administer insurance claims in compliance with this Section.

	
 

	
 

	
 

	
7.1

	
Minimum Required Coverages

	
 

	
 

	
 

	
 

	
 

	
 (a)

	
 “All Risk” Property Insurance Coverage

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall maintain property insurance coverage at least equivalent or superior to
the Insurance Services Offices (ISO) “Cause of Loss – Special Form” coverage
in an amount not less than one hundred percent (100%) of the replacement cost
of all insurable elements of the Real Property and of all tangible Personal
Property, with coinsurance waived, or if a coinsurance clause is in effect,
with an Agreed Amount endorsement acceptable to the Lender. Coverage shall
extend to the Real Property and to all tangible Personal Property.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (b)

	
Broad Form Boiler and Machinery/HVAC/Equipment Breakdown

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall maintain broad form boiler and machinery coverage, including coverage
for resulting loss of income/loss of rents/extra expense if any of the
following is located on the Real Property: any boiler or other fired-pressure
vessel; any machinery containing pressure; or any machinery generating or
transmitting power, including without limitation, centralized HVAC equipment,
community water heaters, refrigeration or air conditioning vessels, or pumps.

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement

Preston Royal Village, Dallas, Texas

AEGON Loan No. 10512155

	
-19-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (c)

	
Flood

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
If the Real
Property is located in a special flood hazard area (SFHA, also known as the
100-year floodplain) according to the most current flood insurance rate map
(FIRM) issued by the Federal Emergency Management Agency (FEMA) and if flood
insurance is available, the Borrower shall maintain flood insurance coverage
on all insurable elements of Real Property and of all tangible Personal
Property for one hundred percent (100%) of the replacement cost or the
maximum amount available under the National Flood Insurance Program (NFIP),
and if available the resulting loss of business income/loss of rents/extra
expense.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (d)

	
Windstorm

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall maintain windstorm coverage that includes all named windstorms.
Windstorm coverage may be provided by a policy separate from the other
insurance coverage required in this Section.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (e)

	
Business Interruption/Time Element Coverage

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall maintain a form of business interruption coverage or loss of
rents/extra expense for resulting loss of income by a covered peril in the
amount of twelve (12) months of one year’s business income from the Property
or loss of rents/extra expense.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (f)

	
Construction-Related Coverage

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
During the
term of the Loan, while construction of any Improvements is in progress, the
Borrower shall maintain Builder’s Risk coverage written on an all risk basis,
completed value form, with limits reflecting the total completed value of the
structure. Coverage shall extend to all property of the Borrower that is to
be used during the excavation and preparation of the site of the
Improvements, the construction of the Improvements (whether underground or
above-ground) or that is intended to be incorporated into the Improvements,
whether located on the Real Property, stored off-site or in transit. The
Borrower, the Guarantor, and the general contractor (if it is an entity other
than the Borrower) shall be named as insured under liability coverage.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (g)

	
Comprehensive/General Liability (CGL)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall maintain commercial general liability coverage for not less than
$1,000,000 combined single limit per occurrence and general aggregate limit
of $2,000,000.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (h)

	
Umbrella/Excess Liability

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall maintain umbrella or excess liability coverage in an amount reasonably
determined by the Lender, but in no event less than $1,000,000 per occurrence
and in the aggregate. Umbrella or excess coverage should follow form to the
underlying coverage.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (i)

	
Elective or Additional Coverages

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Lender
may require additional insurance coverages or endorsements reasonably
appropriate to the property type and site location and available at
commercially reasonable rates. Additional coverages may 

	
 

	
 

	
 

	
Deed of Trust and
Security Agreement

Preston Royal Village, Dallas, Texas

AEGON Loan No. 10512155

	
-20-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
include
earthquake, mine subsidence, sinkhole, personal property, supplemental
liability, or coverages of other property-specific risks.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
7.2

	
Blanket Coverage

	
 

	
 

	
 

	
 

	
 

	
The Borrower
may satisfy the requirements of this Section through a so-called “blanket
insurance policy” if (a) the policy includes limits by property location and
(b) the Lender determines, in the exercise of its sole and absolute
discretion, that the amount of such coverage is sufficient in light of the
other risks and properties insured under the blanket policy. The Obligation
to provide any policy or coverage under this Section may be satisfied by the
policy or coverage carried by the tenant under an approved Key Lease, provided
such policy or coverage is primary and noncontributing; and further provided
that, in the case of such tenant’s property policy, the Borrower is named as
an additional named insured or as an additional insured, and the Lender is
named as first mortgagee, or, in the case of such tenant’s liability
insurance policy, the Borrower and the Lender are named as additional
insureds. 

	
 

	
 

	
 

	
 

	
7.3

	
How the Lender Shall Be Named

	
 

	
 

	
 

	
 

	
 

	
On all
property insurance policies and coverages required under this Section (including
coverage against loss of business income, also known as business income/loss
of rents/extra expense), the Lender must be named as “first mortgagee” under
a standard mortgagee clause and as a “loss payee” under a loss payee
endorsement or a Lenders Loss Payable endorsement. On the Builder’s Risk and
Commercial General Liability policies, the Lender must be named as an
“additional insured.” The Lender shall be referred to verbatim as follows:
“Transamerica Financial Life Insurance Company and its successors, assigns,
and affiliates; as their interest may appear; c/o AEGON USA Realty Advisors,
LLC; Mortgage Loan Dept.; 4333 Edgewood Rd., NE; Cedar Rapids, Iowa
52499-5443.”

	
 

	
 

	
 

	
 

	
7.4

	
Rating

	
 

	
 

	
 

	
 

	
 

	
Each
insurance carrier providing insurance required under this Section must have,
independently of its parent’s or any reinsurer’s rating, a Best’s Rating of
A-, and a Financial Size Rating of X or better, as reported in the most
current issue of Best’s Insurance Guide, or as reported by Best on its
internet web site.

	
 

	
 

	
 

	
 

	
7.5

	
Deductible

	
 

	
 

	
 

	
 

	
 

	
The maximum
deductible on each required coverage or policy is $100,000. 

	
 

	
 

	
 

	
 

	
7.6

	
Notices,
Changes and Renewals

	
 

	
 

	
 

	
 

	
 

	
All policies
must require the insurance carrier to give the Lender a minimum of ten (10)
days’ notice in the event of modification, cancellation or termination for
nonpayment of premium and a minimum of thirty (30) days’ notice of
cancellation or nonrenewal, or as required under state law. Prior to each
policy renewal, the Borrower shall report to the Lender all sublimits, margin
clauses and other conditions and endorsements that reduce the coverages
required in this Section and changes to deductibles for sub-limited
coverages, self-insured retentions, fronting arrangements, or other
endorsements or conditions that require the Borrower to retain additional
risk. The Borrower shall report to the Lender immediately any facts known to the Borrower that may adversely affect the appropriateness
or enforceability of any insurance contract, including, 

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement

Preston Royal Village, Dallas, Texas

AEGON Loan No. 10512155

	
-21-

	
 

	
 

	
 

	
 

	
 

	
 

	
without limitation, changes in the ownership or occupancy of the Real
Property, any hazard to the Real Property and any matters that may give rise
to any claim. No fewer than thirty (30) days prior to
expiration of any policy required under this Section, the Borrower shall
provide either (a) an original or certified copy of the renewed policy, or
(b) a certificate of insurance, including an Acord 28 (real property), Acord
27 (personal property) or Acord 25 (liability) certificate, or another
document satisfactory to the Lender conferring on the Lender the rights and
privileges of mortgagee. If the Borrower meets the foregoing requirement
under clause (b), the Borrower shall supply an original or certified copy of
the original policy within ninety (90) days. All certificates, documents, and
original or certified copies of policies must (i) name the Borrower as a
named insured or as an additional insured, (ii) include the complete and
accurate property address, (iii) show that the applicable coverage or
endorsement is in full force and effect, (iv) convey all of the insured’s
rights and privileges under the policy to the mortgagee (Lender), (v) include
the Lender as loss payee (for business interruption coverages), and (vi)
include the Lender as additional insured (for liability coverages).

	
 

	
 

	
 

	
 

	
7.7

	
Unearned
Premiums

	
 

	
 

	
 

	
 

	
 

	
If this Deed
of Trust is foreclosed, the Lender may at its discretion cancel any of the
insurance policies required under this Section and apply any unearned
premiums to the Indebtedness.

	
 

	
 

	
 

	
 

	
7.8

	
Forced
Placement of Insurance

	
 

	
 

	
 

	
 

	
 

	
If the
Borrower fails to comply with the requirements of this Section, the Lender
may, at its discretion, procure any required insurance. Any premiums paid for
such insurance, or the allocable portion of any premium paid by the Lender
under a blanket policy for such insurance, shall be a demand obligation under
this Deed of Trust, and any unearned premiums under such insurance shall
comprise Insurance Proceeds and therefore a portion of the Property.

	
 

	
 

	
 

	
 

	
7.9

	
Insurance
Disclosure Notice

	
 

	
 

	
 

	
 

	
 

	
TEXAS FINANCE CODE SECTION 307.052 COLLATERAL PROTECTION INSURANCE
NOTICE: (A) BORROWER IS REQUIRED TO (i) KEEP THE
PROPERTY INSURED AGAINST DAMAGE IN THE AMOUNT SPECIFIED HEREIN; (ii) PURCHASE
THE INSURANCE FROM AN INSURER THAT IS AUTHORIZED TO DO BUSINESS IN THE STATE
OF TEXAS OR AN ELIGIBLE SURPLUS LINES INSURER OR OTHERWISE AS PROVIDED
HEREIN; AND (iii) NAME LENDER AS THE PERSON TO BE PAID UNDER THE POLICY IN
THE EVENT OF A LOSS AS PROVIDED HEREIN; (B) SUBJECT TO THE PROVISIONS HEREOF,
BORROWER MUST, IF REQUIRED BY LENDER, DELIVER TO LENDER A COPY OF THE POLICY
AND PROOF OF THE PAYMENT OF INSURANCE PREMIUMS; AND (C) SUBJECT TO THE
PROVISIONS HEREOF, IF BORROWER FAILS TO MEET ANY REQUIREMENT LISTED IN THE
FOREGOING SUBPARTS (A) OR (B), LENDER MAY OBTAIN COLLATERAL PROTECTION
INSURANCE ON BEHALF OF BORROWER AT BORROWER’S EXPENSE.

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement

Preston Royal Village, Dallas, Texas

AEGON Loan No. 10512155

	
-22-

	
 

	
 

	
 

	
 

	
8.

	
INSURANCE AND CONDEMNATION PROCEEDS 

	
 

	
 

	
 

	
 

	
8.1

	
Provisions of APproved Key Leases to Govern 

	
 

	
 

	
 

	
 

	
 

	
The Lender
agrees to permit the use of Insurance Proceeds and Condemnation Proceeds by
the Borrower to meet its obligations as landlord under any Key Lease approved
by the Lender at the time of the origination of the Loan or during the Loan
term to effect the Restoration of the premises, provided (a) no Default
exists, (b) the Lender may hold the Insurance Proceeds or Condemnation
Proceeds and condition their disbursement as described in Subsections 8.6 and
8.8, and (c) the tenant under the related Key Lease confirms to the Lender in
writing that it is committed to pay full Rent following the completion of the
Restoration. The remaining provisions of this Section shall apply to the
extent that they are consistent with the terms of the approved Key Lease. 

	
 

	
 

	
 

	
 

	
8.2

	
Adjustment and Compromise of Claims and Awards 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
may settle any insurance claim or condemnation proceeding if the effect of
the casualty or the condemnation may be remedied for $60,000 or less. If a
greater sum is required, the Borrower may not settle any such claim or
proceeding without the advance written consent of the Lender. If a Default
exists, the Borrower may not settle any insurance claim or condemnation
proceeding without the advance written consent of the Lender. 

	
 

	
 

	
 

	
 

	
8.3

	
Direct Payment to the Lender of Proceeds 

	
 

	
 

	
 

	
 

	
 

	
If the
Insurance Proceeds received in connection with a casualty or the Condemnation Proceeds received in respect
of a condemnation exceed $700,000, or if there is a Default, then such
proceeds shall be paid directly to the Lender. The Lender shall have the
right to endorse instruments which evidence proceeds that it is entitled to
receive directly. 

	
 

	
 

	
 

	
 

	
8.4

	
Availability to the Borrower of Proceeds 

	
 

	
 

	
 

	
 

	
 

	
Insurance
Proceeds and Condemnation Proceeds shall be paid to the Lender for use in
accordance with Subsection 8.5, unless the amount received is less than
$700,000, in which case the Borrower shall have the right to use the
Insurance Proceeds and Condemnation Proceeds to carry out the Restoration of
the Real Property, subject to the conditions set forth in Subsections 8.6,
8.7, and 8.8. 

	
 

	
 

	
 

	
 

	
 

	
If the amount received in respect of a casualty or condemnation
equals or exceeds $700,000, and if the Loan-to-Value ratio of the Property on
completion will be sixty-five percent (65%) or less, as determined by the
Lender in its discretion based on its estimate of the market value of the
Real Property, the Lender shall receive such Insurance Proceeds or
Condemnation Proceeds directly and hold them in a fund for Restoration
subject to the conditions set forth in Subsections 8.6, 8.7, and 8.8 of this
Section. If the Lender’s estimate of the market value of the Real Property implies a
Loan-to-Value ratio of over 65%, and the Borrower disagrees with the Lender’s
estimate, the Borrower may require that the Lender engage an independent
appraiser (the “Fee Appraiser”) to prepare and submit to AEGON a full narrative
appraisal report estimating the market value of the Real Property. The Fee
Appraiser shall be certified in Texas and shall be a member of a national
appraisal organization that has adopted the Uniform Standards of Professional
Appraisal Practice (USPAP) established by the Appraisal Standards Board of
the Appraisal Foundation. The Fee Appraiser 

	
 

	
 

	
 

	
Deed of Trust and Security
Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155

	
-23-

	
 

	
 

	
 

	
 

	
 

	
 

	
will be
required to use assumptions and limiting conditions established by the Lender
prior to the funding of the Loan and to prepare the appraisal in conformity
with the Lender’s Appraisal Guidelines. For purposes of this Section, the
independent appraiser’s value conclusion shall be binding on both the Lender
and the Borrower. The Borrower shall have the right to make a prepayment of
the Loan, without premium, sufficient to achieve this Loan-to-Value ratio.
The independent fee appraisal shall be at the Borrower’s expense, and the
Borrower shall pay to the Lender an administrative fee of $2,500 in
connection with its review. The Lender may require that the Borrower deposit
$10,000 with the Lender as security for these expenses or may pay the Fee
Appraiser’s and administrative fees from the proceeds at its sole discretion.

	
 

	
 

	
 

	
 

	
8.5

	
Lender’s Use of Proceeds 

	
 

	
 

	
 

	
 

	
 

	
Unless the
Borrower has the right to use the Insurance Proceeds or the Condemnation
Proceeds under the foregoing paragraphs, the Lender may, in its sole and
absolute discretion, either apply them to the Loan balance or disburse them
for the purposes of repair and reconstruction, or to remedy the effects of
the condemnation. No prepayment premium will be charged on Insurance Proceeds
or Condemnation Proceeds applied to reduce the principal balance of the Loan.

	
 

	
 

	
 

	
 

	
8.6

	
Conditions to Availability of Proceeds

	
 

	
 

	
 

	
 

	
 

	
The Lender
shall have no obligation to release Insurance Proceeds or Condemnation
Proceeds to the Borrower, and may hold such amounts as additional security
for the Loan, if (a) a Default exists, (b) the Lender has delivered to the
Borrower Notice of any act, omission or circumstance that will, if uncured,
become a Default, and the required cure has not been effected or (c) if the
Insurance Proceeds or Condemnation Proceeds received by the Lender and any
other funds deposited by the Borrower with the Lender are insufficient, as
determined by the Lender in its reasonable discretion, to complete the
Restoration. If a Default exists, the Lender may at its sole and absolute
discretion apply such Insurance Proceeds and Condemnation Proceeds to the
full or partial cure of the Default. 

	
 

	
 

	
 

	
 

	
8.7

	
Gross Up of Restoration Fund; Permitted Mezzanine Financing 

	
 

	
 

	
 

	
 

	
 

	
If the
Lender determines that the Insurance Proceeds or Condemnation Proceeds received
in respect of a casualty or a condemnation, as the case may be, would be
insufficient to permit the Borrower to effect the Restoration, then the
Borrower shall deposit in the Restoration Fund such additional funds as the
Lender determines are necessary to effect the Restoration. The Lender agrees
to permit the Borrower to secure mezzanine financing in order to meet its
obligation under this Subsection. The mezzanine loan may be secured by a
pledge of interests in the Borrower, subject to an inter-creditor agreement
on market terms for securitized loans. 

	
 

	
 

	
 

	
 

	
8.8

	
Draw Requirements 

	
 

	
 

	
 

	
 

	
 

	
If the
amount of Insurance Proceeds or Condemnation Proceeds exceed $700,000, the
Borrower’s right to receive Insurance Proceeds and Condemnation Proceeds held
by the Lender under this Section shall be conditioned on the Lender’s
approval of plans and specifications for the Restoration. Each draw, except
the last, shall be in the minimum amount of $50,000. Draw requests shall be
accompanied by customary evidence of construction completion, and by 

	
 

	
 

	
 

	
Deed of Trust and Security Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155

	
-24-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
endorsements
to the Lender’s mortgagee title insurance coverage insuring the absence of
construction, mechanics’ or materialmen’s liens. Draws based on partial
completion of the Restoration shall be subject to a ten percent (10%)
holdback. All transactional expenses shall be paid by the Borrower. 

	
 

	
 

	
 

	
9.

	
ESCROW FUND 

	
 

	
 

	
 

	
The Borrower
shall pay the Monthly Escrow Payment on the first (1st) day of every month,
commencing with the month in which the first regular payment of principal and
interest is due. The Lender shall hold Monthly Escrow Payments in a
non-interest-bearing fund from which the Lender will pay on a timely basis
those Escrow Expenses that the Lender has anticipated will become payable on
a regular basis during the Loan’s term, and on which the Lender has based its
determination of the Monthly Imposition Requirement, the Monthly Insurance
Premium Requirement and the Monthly Reserve Requirement. The Escrow Fund will
be maintained as an accounting entry in the Lender’s general account, where
it may be commingled with the Lender’s other funds. The Lender may reanalyze
the projected Escrow Expenses from time to time and shall advise the Borrower
of any change in the amount of the Monthly Escrow Payment. Upon the
foreclosure of this Deed of Trust, the delivery of a deed in lieu of
foreclosure, or the payoff of the Loan, the Lender shall apply amounts in the
Escrow Fund, net of accrued Escrow Expenses, to the Indebtedness. The Lender
shall remit any amounts in excess of the Indebtedness to the Borrower. 

	
 

	
 

	
 

	
10.

	
DEFAULT 

	
 

	
 

	
 

	
10.1

	
Payment Defaults 

	
 

	
 

	
 

	
 

	
 

	
A “Default”
shall exist without Notice upon the occurrence of any of the following
events: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (a)

	
Scheduled Payments 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Subject to
the terms of the Note, Borrower’s failure to pay, or to cause to be paid, (i)
any regular monthly payment of principal and interest under the Note,
together with any required Monthly Escrow Payment, on or before the tenth
(10th) day of the month in which it is due or (ii) any other scheduled
payment under the Note, this Deed of Trust or any other Loan Document. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (b)

	
Payment at Maturity 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The
Borrower’s failure to pay, or to cause to be paid, the Indebtedness when the
Loan matures by acceleration under Section 16, because of a transfer or
encumbrance under Section 13, or by lapse of time. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (c)

	
Demand Obligations 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The
Borrower’s failure to pay, or to cause to be paid, within five (5) Business
Days of the Lender’s demand, any other amount required under the Note, this
Deed of Trust or any of the other Loan Documents. 

	
 

	
 

	
 

	
 

	
 

	
10.2

	
Incurable Non-Monetary Default 

	
 

	
 

	
 

	
 

	
 

	
 

	
A Default
shall exist upon any of the following (each of which is an “Incurable
Non-Monetary Default”): 

	
 

	
 

	
 

	
Deed of Trust and Security Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155

	
-25-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (a)

	
Material Untruth or Misrepresentation 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Lender’s
discovery that any representation made by the Borrower in any Loan Document
was materially untrue or misleading when made, if the misrepresentation
either was intentional or is not capable of being cured as described in
Subsection 10.3(a) below. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (b)

	
Due on Sale or Encumbrance 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The
occurrence of any sale, conveyance, transfer or vesting that would result in
the Loan becoming immediately due and payable at the Lender’s option under
Section 13. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (c)

	
Voluntary Bankruptcy Filing 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The filing
by the Borrower of a petition in bankruptcy or for relief from creditors
under any present or future law that affords general protection from
creditors. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (d)

	
Insolvency 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The failure
of the Borrower generally to pay its debts as they become due, its admission
in writing to an inability so to pay its debts, the making by the Borrower of
a general assignment for the benefit of creditors, or a judicial
determination that the Borrower is insolvent. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (e)

	
Receivership 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The
appointment of a receiver or trustee to take possession of any of the assets
of the Borrower.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (f)

	
Levy or Attachment 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The taking
or seizure of any material portion of the Property under levy of execution or
attachment.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (g)

	
Lien 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The filing
against the Real Property of any lien or claim of lien for the performance of
work or the supply of materials, or the filing of any federal, state or local
tax lien against the Borrower, or against the Real Property, unless the
Borrower promptly complies with Section 12 of this Deed of Trust. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (h)

	
Defaults under other Loan Documents 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The
existence of any default under any other Loan Document, provided any required
Notice of such default has been given and any applicable cure period has
expired. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (i)

	
Dissolution or Liquidation 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall initiate or suffer the commencement of a proceeding for its dissolution
or liquidation, and such proceeding shall not be dismissed within ninety (90)
days, or the Borrower shall cease to exist as a legal entity (unless
resulting in a Permitted Transfer). 

	
 

	
 

	
 

	
 

	
 

	
10.3

	
Curable Non-Monetary Default 

	
 

	
 

	
 

	
 

	
 

	
 

	
A Default
shall exist, following the cure periods specified below, under the following
circumstances: 

	
 

	
 

	
 

	
Deed of Trust and Security Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155

	
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 (a)

	
Unintentional Misrepresentations that are Capable of Being Cured 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
A “Default”
shall exist, with Notice, if the Lender discovers that the Borrower has
unintentionally made any material misrepresentation that is capable of being
cured, unless the Borrower promptly commences and diligently pursues a cure
of the misrepresentation approved by the Lender, and completes the cure
within sixty (60) days. Any such cure shall place the Lender in the risk
position that would have existed had the false representation been true when
made. If the Borrower has relied in full or in part on representations from,
or on information furnished by, the seller of the Real Property as described
in the last sentence of Section 5.23, and the representation is capable of
being cured as described above, the misrepresentation shall be considered
curable for purposes of this paragraph. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (b)

	
Involuntary Bankruptcy or Similar Filing 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
becomes the subject of any petition or action seeking to adjudicate it
bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, or composition of it or its
debts under any law relating to bankruptcy, insolvency or reorganization or
relief, or that may result in a composition of its debts, provide for the
marshaling of the Borrower’s assets for the satisfaction of its debts, or
result in the judicially ordered sale of the Borrower’s assets for the
purpose of satisfying its obligations to creditors, unless a motion for the
dismissal of the petition or other action is filed within twenty (20) days
and results in its dismissal within ninety (90) days of the filing of the
petition or other action. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (c)

	
Entry of a Material Judgment 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Any judgment
is entered against the Borrower or any other Obligor, and the judgment may
materially and adversely affect the value, use or operation of the Real
Property, unless the judgment is satisfied within twenty (20) Days. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (d)

	
Failure to provide Financial and Property Reports 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
If the
Borrower or the Carveout Obligor fails to provide the financial and property
reports required under this Deed of Trust or the Carveout Guarantee and
Indemnity, as the case may be, before the applicable deadline, unless such
failure within thirty (30) days after such notice 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (e)

	
Other Defaults 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
fails to observe any promise or covenant made in this Deed of Trust, unless
the failure results in a Default described elsewhere in this Section 13,
provided the Lender delivers written Notice to the Borrower of the existence
of such an act, omission or circumstance, and that such an act, omission or
circumstance shall constitute a Default under the Loan Documents unless the
Borrower promptly initiates an effort to cure the potential Default, pursues
the cure diligently and continuously, and succeeds in effecting the cure
within one hundred twenty (120) days of its receipt of Notice. The Lender
shall afford the Borrower an additional period of one hundred twenty (120)
days in cases where construction or repair is needed to cure the potential
Default, and the cure cannot be completed within the first one hundred twenty
(120) 

	
 

	
 

	
 

	
Deed of Trust and Security Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155

	
-27-

	
 

	
 

	
 

	
 

	
 

	
 

	
day cure
period. During the cure period, the Borrower has the obligation to provide on
demand satisfactory documentation of its effort to cure, and, upon
completion, evidence that the cure has been achieved. All notice and cure
periods provided in this Deed of Trust shall run concurrently with any notice
or cure periods provided by law and in any of the other Loan Documents. 

	
 

	
 

	
 

	
11.

	
RIGHT TO CURE 

	
 

	
 

	
 

	
The Lender
shall have the right to cure any Default. The expenses of doing so shall be
part of the Indebtedness, and the Borrower shall pay them to the Lender on
demand. 

	
 

	
 

	
12.

	
CONTEST RIGHTS 

	
 

	
 

	
 

	
The Borrower
may secure the right to contest Impositions and construction, mechanics’ or
materialmen’s liens, through appropriate proceedings conducted in good faith,
by either (A) depositing with the Lender an amount equal to one hundred
twenty five percent (125%) of the amount of the Imposition or the lien, or
(B) obtaining and maintaining in effect a bond issued by a surety acceptable
to the Lender, in an amount equal to the greater of (i) the amount of a
required deposit under clause (A) above and (ii) the amount required by the
surety or by the court in order to obtain a court order staying the
foreclosure of the lien pending resolution of the dispute, and releasing the
lien of record. The proceeds of such a bond must be payable directly to the
Lender. The surety issuing such a bond must be acceptable to the Lender in
its sole discretion. After such a deposit is made or bond issued, the
Borrower shall promptly commence the contest of the lien and continuously
pursue that contest in good faith and with reasonable diligence. If the
contest of the related Imposition or lien is unsuccessful, any deposits or
bond proceeds shall be used to pay the Imposition or to satisfy the
obligation from which the lien has arisen. Any surplus shall be refunded to
the Borrower. 

	
 

	
 

	
13.

	
DUE ON TRANSFER OR ENCUMBRANCE 

	
 

	
 

	
 

	
Upon the
sale or transfer of any portion of the Real Property or any other conveyance,
transfer or vesting of any direct or indirect interest in the Borrower or the
Property, including (i) the direct or indirect transfer of, or the granting
of a security interest in, the ownership of the Borrower or the voting rights
in the Borrower, (ii) any encumbrance (other than a Permitted Encumbrance) of
the Real Property (unless the Borrower contests the encumbrance in compliance
with Section 12) and (iii) the lease, license or granting of any security
interest in the Personal Property, the Indebtedness shall, at the Lender’s
option, become immediately due and payable upon Notice to the Borrower,
unless the sale, conveyance, transfer or vesting is a Permitted Transfer or
is permitted by Section 8.7. Notwithstanding the foregoing, the issuance or
transfer of equity securities of AmREIT, Inc., or the issuance or transfer of
securities that are convertible into equity securities of AmREIT, Inc., that
in either case may be lawfully traded in public securities markets shall be
deemed not to be a transfer of an indirect interest in the Borrower. 

	
 

	
 

	
14.

	
DUE ON SALE EXCEPTIONS 

	
 

	
 

	
 

	
The
following transfers and encumbrances shall constitute Permitted Transfers: 

	
 

	
 

	
 

	
Deed of Trust and Security Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155

	
-28-

	
 

	
 

	
 

	
 

	
 

	
 

	
14.1

	
Permitted Transfer to an Approved Purchaser 

	
 

	
 

	
 

	
The Borrower
shall have the right, on one occasion during the term of the Loan, to sell or
transfer the Property in a transaction approved by the Lender. The Lender
agrees that such a transfer shall be a Permitted Transfer if the following
conditions are satisfied: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (a)

	
No Default 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
No Default
shall exist, and no act, omission or circumstance shall exist which, if
uncured following Notice and the passage of time, would become a Default. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (b)

	
Request and Supporting Materials 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Lender
shall receive a written request for its approval at least ninety (90) days
before the proposed transfer. The request shall specify the identity of the
proposed transferee and the purchase price and other terms of the
transaction, shall include a copy of the proposed contract of sale, and shall
be accompanied by the financial statements, tax returns, and organizational
documents of the proposed transferee and its principals. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (c)

	
Criteria to be Considered 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The
ownership structure, financial strength, credit history and demonstrated
property management expertise of the proposed transferee and its principals
shall be satisfactory to the Lender in its sole discretion. The Lender
expressly reserves the right to withhold its approval of the proposed
transfer if the proposed transferee or any of its principals is or has been
the subject of any bankruptcy, insolvency, or similar proceeding. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (d)

	
Assumption Agreement 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Under the
terms of the proposed transfer, the proposed transferee shall assume the
Loan, without modification, under the terms of an assumption agreement and
additional documentation satisfactory to the Lender in form and substance.
Under the assumption agreement, the transferee shall provide a representation
as to the purchase price paid for the Real Property. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (e)

	
Liability for Carveout Obligations 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Under the
terms of the assumption agreement and additional documentation, liability for
Carveout Obligations arising both before and after the date of the transfer
and assumption shall be retained or assumed by the parties satisfactory to
the Lender. Notwithstanding the foregoing, Borrower and Carveout Obligor
shall be released from liability for Carveout Obligations arising on or after
the date of the transfer and assumption; provided that in any action to
enforce the liability of Borrower and/or Carveout Obligor for Carveout
Obligations, Borrower and/or Carveout Obligor shall have the burden of
proving when the Carveout Obligations in question arose. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (f)

	
Title Insurance Endorsement 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall agree to provide an endorsement to the Lender’s mortgagee title
insurance policy, insuring the continued validity and priority of this Deed
of Trust following the assumption.

	
 

	
 

	
 

	
Deed of Trust and Security Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155

	
-29-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (g)

	
Assumption Fee 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Lender
shall receive an assumption fee of one percent (1%) of the outstanding
balance of the Loan , and the Borrower shall agree to reimburse the Lender’s
out-of-pocket expenses incurred in connection with the proposed transfer,
including title updates and endorsement charges, recording fees, any
applicable taxes and attorneys’ fees, regardless of whether the transfer is
consummated. 

	
 

	
 

	
 

	
 

	
 

	
14.2

	
Permitted Transfers of Certain Passive Interests 

	
 

	
 

	
 

	
 

	
 

	
 

	
Any transfer
of direct or indirect interests in the Borrower that meets the requirements
of this Sub-section (a “Qualified Passive Interest Transfer”) shall be a
Permitted Transfer, and no transfer fee, assumption fee, processing fee or
document review fee shall be charged in connection with the transfer. The
requirements are the following: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (a)

	
Notice 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall deliver advance notice of the proposed transfer, together with evidence
reasonably satisfactory to the Lender that the proposed transfer would meet
the requirements of this Section. Such evidence shall include a narrative
description and detailed pre- and post-transfer organizational charts of the
Borrower. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (b)

	
Absence of Default 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
No Default
shall exist at the time of the transfer. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (c)

	
Absence of Violation 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The proposed
transfer shall not result in any violation of the covenants of the Loan
Documents relating to the management of the Real Property and Legal Control
of the Borrower. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (d)

	
Legal Control 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Carveout
Obligor shall exercise Legal Control of the Borrower after the transfer. 

	
 

	
 

	
 

	
 

	
 

	
14.3

	
Transaction Costs

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall pay all out-of-pocket expenses incurred by the Lender in the review and
processing of a proposed or completed Permitted Transfer regardless of
whether the Permitted Transfer is carried out. 

	
 

	
 

	
 

	
 

	
15.

	
NOTICE OF ASSIGNMENT OF LEASES AND RENTS 

	
 

	
 

	
 

	
 

	
 

	
Under the
Assignment of Leases and Rents, the Borrower has assigned to the Lender, and
to its successors and assigns, all of the Borrower’s right and title to, and
interest in, the Leases, including all rights under the Leases and all
benefits to be derived from them. The rights assigned include all authority
of the Borrower to modify or terminate Leases, or to exercise any remedies,
and the benefits assigned include all Rents. This assignment is present, but
under the terms of the Assignment of Leases and Rents, the Lender has granted
the Borrower a conditional license to collect and use the Rents, and to
exercise the rights assigned, in a manner consistent with the Obligations,
all as more particularly set forth in the Assignment of Leases and Rents. The
Lender may, however, terminate the 

	
 

	
 

	
 

	
Deed of Trust and Security Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155

	
-30-

	
 

	
 

	
 

	
 

	
 

	
license by
written Notice to the Borrower or a tenant under a Lease on certain
conditions set forth in the Assignment of Leases and Rents. 

	
 

	
 

	
 

	
16.

	
ACCELERATION 

	
 

	
 

	
 

	
 

	
If a Default
exists, the Lender may, at its option, declare the unpaid principal balance
of the Note to be immediately due and payable, together with all accrued
interest on the Indebtedness, all costs of collection (including reasonable
attorneys’ fees and expenses) and all other charges due and payable by the
Borrower under the Note or any other Loan Document. If the subject Default
has arisen from a failure by the Borrower to make a regular monthly payment
of principal and interest, the Lender shall not accelerate the Indebtedness
unless the Lender shall have given the Borrower a cure period of at least
three (3) Business Days following Notice of its intent to do so. 

	
 

	
 

	
 

	
If the
subject Default is curable and non-monetary in nature, the Lender shall
exercise its option to accelerate only by giving Notice of acceleration to
the Borrower. The Lender shall not give any such Notice of acceleration until
(a) the Borrower has been given any required Notice of the prospective
Default and (b) any applicable cure period has expired.

Except as expressly
described in this Section, no notice of acceleration shall be required in
order for the Lender to exercise its option to accelerate the Indebtedness in
the event of Default.

	
 

	
 

	
 

	
17.

	
RIGHTS OF ENTRY AND TO OPERATE 

	
 

	
 

	
 

	
 

	
17.1

	
Entry on Real Property 

	
 

	
 

	
 

	
 

	
 

	
If a Default
exists, the Lender may, to the extent permitted by law, enter upon the Real
Property and take exclusive possession of the Real Property and of all books,
records and accounts, all without Notice and without being guilty of
trespass, but subject to the rights of tenants in possession under the
Leases. If the Borrower remains in possession of all or any part of the
Property after Default and without the Lender’s prior written consent, the
Lender may, without Notice to the Borrower, invoke any and all legal remedies
to dispossess the Borrower, including specifically one or more actions for
forcible entry and detainer, trespass to try title and writ of restitution. 

	
 

	
 

	
 

	
 

	
17.2

	
Operation of Real Property 

	
 

	
 

	
 

	
 

	
 

	
Following
Default, the Lender may, subject to applicable law, hold, lease, manage,
operate or otherwise use or permit the use of the Real Property, either
itself or by other persons, firms or entities, in such manner, for such time
and upon such other terms as the Lender may deem to be prudent under the
circumstances (making such repairs, alterations, additions and improvements
thereto and taking any and all other action with reference thereto, from time
to time, as the Lender deems prudent), and apply all Rents and other amounts
collected by the Lender in accordance with the provisions of the Assignment
of Leases and Rents. 

	
 

	
 

	
 

	
Deed of Trust and Security Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155

	
-31-

	
 

	
 

	
 

	
 

	
18.

	
RECEIVERSHIP 

	
 

	
 

	
 

	
 

	
Following
Default, the Lender may apply to a court of competent jurisdiction for the
appointment of a receiver of the Property, ex parte without Notice to the
Borrower, whether or not the value of the Property exceeds the Indebtedness,
whether or not waste or deterioration of the Real Property has occurred, and
whether or not other arguments based on equity would justify the appointment.
The Borrower irrevocably, with knowledge and for valuable consideration,
consents to such an appointment. Any such receiver shall have all the rights
and powers customarily given to receivers in Texas, including the rights and
powers granted to the Lender by this Deed of Trust, the power to maintain,
lease, operate, market and sell the Real Property on terms approved by the
court, and the power to collect the Rents and apply them to the Indebtedness
or otherwise as the court may direct. Once appointed, a receiver may at the
Lender’s option remain in place until the Indebtedness has been paid in full.

	
 

	
 

	
 

	
19.

	
FORECLOSURE; POWER OF SALE 

	
 

	
 

	
 

	
 

	
19.1

	
Availability of Remedies 

	
 

	
 

	
 

	
 

	
 

	
Upon
Default, the Lender may immediately proceed to foreclose the lien of this
Deed of Trust, against all or part of the Property, or to sell the Property,
by judicial or nonjudicial foreclosure in accordance with the laws of Texas
and may pursue any other remedy available to commercial mortgage lenders
under the laws of Texas. 

	
 

	
 

	
 

	
 

	
19.2

	
Public Sale 

	
 

	
 

	
 

	
 

	
 

	
Trustee is
hereby authorized and empowered, and it shall be Trustee’s special duty, upon
such request of Lender, to sell the Property, or any part thereof, at public
auction to the highest bidder for cash, with or without having taken
possession of same. Any such sale (including notice thereof) shall comply
with the applicable requirements, at the time of the sale, of Section 51.002
of the Texas Property Code or, if and to the extent such statute is not then
in force, with the applicable requirements, at the time of the sale, of the
successor statute or statutes, if any, governing sales of Texas real property
under powers of sale conferred by deeds of trust. If there is no statute in
force at the time of the sale governing sales of Texas real property under
powers of sale conferred by deeds of trust, such sale shall comply with
applicable law, at the time of the sale, governing sales of Texas real
property under powers of sale conferred by deeds of trust. 

	
 

	
 

	
 

	
 

	
19.3

	
Right to Require Proof of Financial Ability and/or Cash Bid 

	
 

	
 

	
 

	
 

	
 

	
At any time
during the bidding, the Trustee may require a bidding party (A) to disclose
its full name, state and city of residence, occupation, and specific business
office location, and the name and address of the principal the bidding party
is representing (if applicable), and (B) to demonstrate reasonable evidence
of the bidding party’s financial ability (or, if applicable, the financial
ability of the principal of such bidding party), as a condition to the
bidding party submitting bids at the foreclosure sale. If any such bidding
party (the “Questioned Bidder”) declines to comply with the Trustee’s
requirement in this regard, or if such Questioned Bidder does respond but the
Trustee, in Trustee’s sole and absolute discretion, deems the information or
the evidence of the financial ability of the Questioned Bidder (or, if applicable,
the principal of such 

	
 

	
 

	
 

	
Deed of Trust and Security Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155

	
-32-

	
 

	
 

	
 

	
 

	
 

	
 

	
bidding
party) to be inadequate, then the Trustee may continue the bidding with
reservation; and in such event (1) the Trustee shall be authorized to caution
the Questioned Bidder concerning the legal obligations to be incurred in
submitting bids, and (2) if the Questioned Bidder is not the highest bidder
at the sale, or if having been the highest bidder the Questioned Bidder fails
to deliver the cash purchase price payment promptly to the Trustee, all bids
by the Questioned Bidder shall be null and void. The Trustee may, in
Trustee’s sole and absolute discretion, determine that a credit bid may be in
the best interest of the Borrower and Lender, and elect to sell the Property
for credit or for a combination of cash and credit; provided, however, that
the Trustee shall have no obligation to accept any bid except an all cash
bid. In the event the Trustee requires a cash bid and cash is not delivered
within a reasonable time after conclusion of the bidding process, as
specified by the Trustee, but in no event later than 3:45 p.m. local time on
the day of sale, then said contingent sale shall be null and void, the
bidding process may be recommenced, and any subsequent bids or sale shall be
made as if no prior bids were made or accepted.

	
 

	
 

	
 

	
 

	
19.4

	
Sale Subject to Unmatured Indebtedness 

	
 

	
 

	
 

	
 

	
 

	
In addition
to the rights and powers of sale granted under the preceding provisions of
this subsection, if default is made in the payment of any installment of the
Indebtedness, Lender may, at Lender’s option, at once or at any time
thereafter while any matured installment remains unpaid, without declaring
the entire Indebtedness to be due and payable, orally or in writing direct
Trustee to enforce this trust and to sell the Property subject to such
unmatured Indebtedness and to the rights, powers, liens, security interests,
and assignments securing or providing recourse for payment of such unmatured
Indebtedness, in the same manner, all as provided in the preceding provisions
of this subsection. Sales made without maturing the Indebtedness may be made
hereunder whenever there is a default in the payment of any installment of
the Indebtedness, without exhausting the power of sale granted hereby, and
without affecting in any way the power of sale granted under this subsection,
the unmatured balance of the Indebtedness or the rights, powers, liens,
security interests, and assignments securing or providing recourse for
payment of the Indebtedness. 

	
 

	
 

	
 

	
 

	
19.5

	
Partial Foreclosure 

	
 

	
 

	
 

	
 

	
 

	
Sale of a
part of the Property shall not exhaust the power of sale, but sales may be
made from time to time until the Indebtedness is paid and the Obligations are
performed and discharged in full. It is intended by each of the foregoing
provisions of this subsection that Trustee may, after any request or
direction by Lender, sell not only the Land and the Improvements, but also
the Fixtures and Personal Property and other interests constituting a part of
the Property or any part thereof, along with the Land and the Improvements or
any part thereof, as a unit and as a part of a single sale, or may sell at
any time or from time to time any part or parts of the Property separately
from the remainder of the Property. It shall not be necessary to have present
or to exhibit at any sale any of the Property. 

	
 

	
 

	
 

	
 

	
19.6

	
Trustee’s Deeds 

	
 

	
 

	
 

	
 

	
 

	
After any
sale under this subsection, Trustee shall make good and sufficient deeds,
assignments, and other conveyances to the purchaser or purchasers thereunder
in the name of Borrower, conveying the Property or any part thereof 

	
 

	
 

	
 

	
Deed of Trust and Security Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155

	
-33-

	
 

	
 

	
 

	
 

	
 

	
 

	
so sold to
the purchaser or purchasers with general warranty of title by Borrower. It is
agreed that in any deeds, assignments or other conveyances given by Trustee,
any and all statements of fact or other recitals therein made as to the
identity of Lender, the occurrence or existence of any Default, the notice of
intention to accelerate, or acceleration of, the maturity of the
Indebtedness, the request to sell, notice of sale, time, place, terms and
manner of sale, and receipt, distribution, and application of the money
realized therefrom, the due and proper appointment of a substitute trustee,
and without being limited by the foregoing, any other act or thing having
been duly done by or on behalf of Lender or by or on behalf of Trustee, shall
be taken by all courts of law and equity as prima facie evidence that such
statements or recitals state true, correct, and complete facts and are
without further question to be so accepted, and Borrower does hereby ratify
and confirm any and all acts that Trustee may lawfully do in the premises by
virtue hereof. 

	
 

	
 

	
 

	
 

	
19.7

	
Waiver of Deficiency Statute

	
 

	
 

	
 

	
 

	
 

	
In the event
of an interest in any of the Property is foreclosed upon pursuant to a
judicial or nonjudicial foreclosure sale, Borrower agrees as follows. Notwithstanding
the provisions of Sections 51.003, 51.004, and 51.005 of the Texas Property
Code (as the same may be amended from time to time), and to the extent
permitted by law, Borrower agrees that Lender shall be entitled to seek a
deficiency judgment from Borrower and any other party obligated on the
indebtedness secured hereby equal to the difference between the amount owing
on the indebtedness secured hereby and the amount for which the Property was
sold pursuant to judicial or nonjudicial foreclosure sale, but not for an
amount in excess of the Carveout Obligations. Borrower expressly recognizes
that this section constitutes a waiver of the above-cited provisions of the
Texas Property Code which would otherwise permit Borrower and other persons
against whom recovery of deficiencies is sought or Obligor independently
(even absent the initiation of deficiency proceedings against them) to
present competent evidence of the fair market value of the Property as of the
date of the foreclosure sale and offset against any deficiency the amount by
which the foreclosure sale price is determined to be less than such fair
market value. Borrower further recognizes and agrees that this waiver creates
an irrebuttable presumption that the foreclosure sale price is equal to the
fair market value of the Property for purposes of calculating deficiencies
owed by Borrower, Obligor and others against whom recovery of a deficiency is
sought. Alternatively, in the event the waiver provided for above is
determined by a court of competent jurisdiction to be unenforceable, the
following shall be the basis for the finder of fact’s determination of the
fair market value of the Property as of the date of the foreclosure sale in
proceedings governed by Sections 51.003, 51.004 and 51.005 of the Texas
Property Code (as amended from time to time): (i) the Property shall be
valued in an “as is” condition as of the date of the foreclosure sale,
without any assumption or expectation that the Property will be repaired or
improved in any manner before a resale of the Property after foreclosure;
(ii) the valuation shall be based upon an assumption that the foreclosure
purchaser desires a resale of the Property for cash promptly (but no later
than twelve (12) months following the foreclosure sale; (iii) all reasonable
closing costs customarily borne by the seller in commercial real estate
transactions should be deducted from the gross fair market value of the
Property, including, without limitation, brokerage commissions, title
insurance, a survey of the Property, tax prorations, attorneys’ 

	
 

	
 

	
 

	
Deed of Trust and Security Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155 

	
-34-

	
 

	
 

	
 

	
 

	
 

	
 

	
fees, and
marketing costs; (iv) the gross fair market value of the Property shall be
further discounted to account for any estimated holding costs associated with
maintaining the Property pending sale, including, without limitation,
utilities expenses, property management fees, taxes and assessments (to the
extent not accounted for in (iii) above), and other maintenance, operational
and ownership expenses; and (v) any expert opinion testimony given or
considered in connection with a determination of the fair market value of the
Property must be given by persons having at least five (5) years experience
in appraising property similar to the Property and who have conducted and
prepared a complete written appraisal of the Property taking into consideration
the factors set forth above.

	
 

	
 

	
 

	
20.

	
WAIVERS

	
 

	
 

	
 

	
To the
maximum extent permitted by law, the Borrower irrevocably and unconditionally
WAIVES and RELEASES any present or future rights (a) of reinstatement or
redemption (b) that may exempt the Property from any civil process, (c) to
appraisal or valuation of the Property, (d) to extension of time for payment,
(e) that may subject the Lender’s exercise of its remedies to the
administration of any decedent’s estate or to any partition or liquidation
action, (f) to any homestead and exemption rights provided by the
Constitution and laws of the United States and of Texas, (g) to notice of
acceleration or notice of intent to accelerate (other than as expressly
stated herein), and (h) that in any way would delay or defeat the right of
the Lender to cause the sale of the Real Property for the purpose of
satisfying the Indebtedness. The Borrower agrees that the price paid at a
lawful foreclosure sale, whether by the Lender or by a third party, and
whether paid through cancellation of all or a portion of the Indebtedness or
in cash, shall conclusively establish the value of the Real Property.

	
 

	
 

	
 

	
BORROWER
expressly WAIVES and RELINQUISHES any right or remedy which it may have or be
able to assert by reason of the provisions of Chapter 34 of the Business and
Commerce Code of the State of Texas pertaining to the rights and remedies of
sureties. To the maximum extent permitted by applicable law, BORROWER hereby
WAIVES and RELEASES all rights, remedies, claims and defenses based upon or
related to Sections 51.003, 51.004 and 51.005 of the Property Code of the
State of Texas to the extent the same pertain or may pertain to any
enforcement of this Deed of Trust.

	
 

	
 

	
 

	
The
foregoing waivers shall apply to and bind any party assuming the Obligations
of the Borrower under this Deed of Trust.

	
 

	
 

	
21.

	
EXCULPATION CLAUSE AND CARVEOUT OBLIGATIONS

	
 

	
 

	
 

	
The Lender
agrees that it shall not seek to enforce any monetary judgment with respect
to any Obligation against the Borrower except through recourse to the
Property, unless the Obligation from which the judgment arises is a Carveout
Obligation. The Carveout Obligations include (a) the obligation to repay any
portion of the Indebtedness that arises because the Lender has advanced funds
or incurred expenses in respect of any of the “Carveouts” (as defined below),
(b) the obligation to repay the entire Indebtedness, if the Lender’s
exculpation of the Borrower from personal liability under this Section has
become void as set forth below, (c) the obligation to indemnify the Lender in
respect of its actual damages suffered in connection with a Carveout, and (d)
the obligation to defend and hold the Lender harmless from and against any
claims, judgments, causes of action or proceedings arising from a Carveout.
The Carveouts are:

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement
Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
-35-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
Fraud or
material written misrepresentation.

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
Waste of
the Property (which shall include damage, destruction or disrepair of the
Real Property caused by a willful act or grossly negligent omission of the
Borrower, but shall exclude ordinary wear and tear in the absence of gross
negligence).

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
Misappropriation
of tenant security deposits (including proceeds of tenant letters of credit),
Insurance Proceeds or Condemnation Proceeds.

	
 

	
 

	
 

	
 

	
 

	
 

	
(d)

	
Failure
to turn over to the Lender all tenant security deposits and tenant letters of
credit required to be held by the Borrower under the terms of the Leases on
or prior to the date on which the Lender receives title to the Real Property
following the foreclosure of its lien or by delivery of the deed in lieu of
foreclosure.

	
 

	
 

	
 

	
 

	
 

	
 

	
(e)

	
Failure
to pay property taxes, assessments or other lienable Impositions to the
taxing authority prior to their due date or to the Lender to the extent such
impositions have accrued on the date the Lender receives title to the Real
Property following the foreclosure of its lien or by delivery of the deed in
lieu of foreclosure.

	
 

	
 

	
 

	
 

	
 

	
 

	
(f)

	
Failure
to maintain insurance coverage in accordance with the Loan Documents,
provided that any coverage furnished by a Key Tenant (or any other Person)
will not impair, alter or diminish the insurance requirements under the Loan
Documents and will not modify this subpart (f), or failure to pay insurance
proceeds to the Lender in accordance with the Loan Documents, even if a Key
Lease provides otherwise.

	
 

	
 

	
 

	
 

	
 

	
 

	
(g)

	
The cost
to the Lender of the forced placement of insurance, as permitted under the
Loan Documents.

	
 

	
 

	
 

	
 

	
 

	
 

	
(h)

	
Failure
to pay to the Lender all Termination Payments that are required to be paid to
Lender pursuant to the Loan Documents.

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
Failure
to pay to the Lender all Rents, income and profits, net of reasonable and
customary operating expenses, received in respect of a period when the Loan
is in Default.

	
 

	
 

	
 

	
 

	
 

	
 

	
(j)

	
The
reasonable out-of-pocket expenses of enforcing the Loan Documents following
Default, not including expenses incurred after the Lender has received a
Qualified Offer.

	
 

	
 

	
 

	
 

	
 

	
 

	
(k)

	
Executing,
terminating or amending a Lease in violation of the Loan Documents.

	
 

	
 

	
 

	
 

	
 

	
 

	
(l)

	
Any
liability of the Borrower under the Environmental Indemnity Agreement.

	
 

	
 

	
 

	
 

	
 

	
 

	
(m)

	
Loss or
damage suffered by the Lender as a result of: (i) Lender’s inability to
perform an obligation under a Lease without breaching the Lease, or its
inability to exercise a right under a Lease, in either case to the extent
resulting from any reference made by the Lease to the “Shopping Center” to
the extent “Shopping Center” includes the Leasehold Shopping Center Parcel;
(ii) the exercise by a tenant of a right under a Lease that the tenant would
have been unable to exercise but for any reference made by the Lease to the
“Shopping Center” to the extent

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement
Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
-36-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Shopping
Center” includes the Leasehold Shopping Center Parcel, or (iii) the
performance by Lender of an obligation under a Lease that the Lender would
not have been required to perform, but for any reference made by the Lease to
the “Shopping Center” to the extent “Shopping Center” includes the Leasehold
Shopping Center Parcel.

The
Lender’s exculpation of the Borrower from personal liability for the repayment
of the Indebtedness evidenced by this Note shall be void without Notice if the
Borrower (A) voluntarily grants a lien on the Property in violation of the Deed
of Trust, or (B) files a voluntary petition for reorganization under Title 11
of the United States Code (or under any other present or future law, domestic
or foreign, relating to bankruptcy, insolvency, reorganization proceedings or
otherwise similarly affecting the rights of creditors), and has not made a
Qualified Offer prior to the filing. After the Lender accepts a Qualified
Offer, default by the Borrower in fulfilling the terms of the accepted offer
shall trigger personal liability for the entire Indebtedness. 

	
 

	
 

	
 

	
22.

	
SECURITY AGREEMENT AND FIXTURE FILING

	
 

	
 

	
 

	
22.1

	
Definitions

	
 

	
 

	
 

	
 

	
 

	
“Accounts”
shall have the definition assigned in the UCC.

	
 

	
 

	
 

	
 

	
 

	
“Bank”
shall have the definition assigned in the UCC.

	
 

	
 

	
 

	
 

	
 

	
“Chattel
Paper” shall have the definition assigned in the UCC.

	
 

	
 

	
 

	
 

	
 

	
“Deposit
Account” shall have the definition assigned in the UCC.

	
 

	
 

	
 

	
 

	
 

	
“Document”
shall have the definition assigned in the UCC.

	
 

	
 

	
 

	
 

	
 

	
“Equipment”
shall have the definition assigned in the UCC.

	
 

	
 

	
 

	
 

	
 

	
“Financing
Statements” shall have the definition assigned in the UCC.

	
 

	
 

	
 

	
 

	
 

	
“General
Intangibles” shall have the definition assigned in the UCC.

	
 

	
 

	
 

	
 

	
 

	
“Goods”
shall have the definition assigned in the UCC. “Goods” include all detached
Fixtures, items of Personal Property that may become Fixtures, property
management files, accounting books and records, reports of consultants
relating to the Real Property, site plans, test borings, environmental or
geotechnical surveys, samples and test results, blueprints, construction and
shop drawings, and plans and specifications.

	
 

	
 

	
 

	
 

	
 

	
“Instrument”
shall have the definition assigned in the UCC.

	
 

	
 

	
 

	
 

	
 

	
“Investment
Property” shall have the definition assigned in the UCC.

	
 

	
 

	
 

	
 

	
 

	
“Letter
of Credit” shall have the definition assigned in the UCC.

	
 

	
 

	
 

	
 

	
 

	
“Letter
of Credit Rights” shall have the definition assigned in the UCC.

	
 

	
 

	
 

	
 

	
 

	
“Money
Collateral” means all money received in respect of Rents.

	
 

	
 

	
 

	
 

	
 

	
“Personal
Property” means Accounts, Chattel Paper, Deposit Accounts, Documents,
Equipment, General Intangible Collateral, Goods, Instruments, Investment
Property, Letter of Credit Rights, Letters of Credit, and Money Collateral,
all as now owned or hereafter acquired by the Borrower.

	
 

	
 

	
 

	
 

	
 

	
“Proceeds”
shall have the definition assigned in the UCC.

	
 

	
 

	
 

	
 

	
 

	
“UCC”
means the Uniform Commercial Code as adopted in Texas.

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement
Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
-37-

	
 

	
 

	
 

	
 

	
 

	
 

	
22.2

	
Creation of Security
Interest

	
 

	
 

	
 

	
 

	
 

	
 

	
This Deed of
Trust shall be self-operative and shall constitute a security agreement
pursuant to the provisions of the UCC with respect to the Personal Property.
The Borrower, as debtor, hereby grants the Lender, as secured party, for the
purpose of securing the Indebtedness, a security interest in the Borrower’s
interest in all Accounts, Chattel Paper, Deposit Accounts, Documents,
Equipment Collateral, General Intangibles, Goods, Instruments, Investment
Property, Letter of Credit Rights, Letter of Credit, and money, in the
accessions, additions, replacements, substitutions and Proceeds of any of the
foregoing items of collateral arising from or relating to the Real Property.
Upon Default, the Lender shall have the rights and remedies of a secured
party under the UCC as well as all other rights and remedies available at law
or in equity, and, at the Lender’s option, the Lender may also invoke the
remedies provided elsewhere in this Deed of Trust as to such Property. The
Borrower and the Lender agree that the rights granted to the Lender as
secured party under this Section 22 are in addition to rather than a
limitation on any of the Lender’s other rights under this Deed of Trust with
respect to the Property.

	
 

	
 

	
 

	
 

	
22.3

	
Filing Authorization

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
irrevocably authorizes the Lender to file, in the appropriate locations for
filings of UCC financing statements in any jurisdictions as the Lender in
good faith deems appropriate, such financing statements and amendments as the
Lender may require in order to perfect or continue this security interest, or
in order to prevent any filed financing statement from becoming misleading or
from losing its perfected status.

	
 

	
 

	
 

	
 

	
22.4

	
Additional Searches and
Documentation

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall provide to the Lender upon request, certified copies of any searches of
UCC records deemed necessary or appropriate by the Lender to confirm the
first-priority status of its security interest in the Personal Property,
together with copies of all documents or records evidencing security
interests disclosed by such searches, provided, however, that prior to the
occurrence of a Default, Lender shall not make such request more than one (1)
time per year.

	
 

	
 

	
 

	
 

	
22.5

	
Costs

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall pay all filing fees and costs and all reasonable costs and expenses of
any record searches (or their continuations) as the Lender may reasonably
require.

	
 

	
 

	
 

	
 

	
22.6

	
Representations,
Warranties and Covenants of the Borrower

	
 

	
 

	
 

	
 

	
 

	
 

	
 (a)

	
Ownership of the Personal Property

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
All of the
Personal Property is, and shall during the term of the Loan continue to be,
owned by the Borrower, and is not the subject matter of any lease, control
agreement or other instrument, agreement or transaction whereby any
ownership, security or beneficial interest in the Personal Property is held
by any person or entity other than the Borrower, subject only to (1) the
Lender’s security interest, (2) the rights of tenants occupying the Property
pursuant to Leases approved by the Lender, and (3) the Permitted
Encumbrances.

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement
Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
-38-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 (b)

	
No Other Identity

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
represents and warrants that the Borrower has not used or operated under any
other name or identity for at least five (5) years. The Borrower covenants
and agrees that Borrower will furnish Lender with notice of any change in its
name, form of organization, or state of organization within thirty (30) days
prior to the effective date of any such change.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (c)

	
Location of Equipment

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
All
Equipment is located upon the Land.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (d)

	
Removal of Goods

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
will not remove or permit to be removed any item included in the Goods from
the Land, unless the same is replaced immediately with unencumbered Goods (1)
of a quality and value equal or superior to that which it replaces and (2)
which is located on the Land. All such replacements, renewals, and additions
shall become and be immediately subject to the security interest of this Deed
of Trust.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (e)

	
Proceeds

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
may, without the Lender’s prior written consent, dispose of Goods in the
ordinary course of business, provided that, following the disposition, the
perfection of the Lender’s security interest in the Proceeds of the
disposition will continue under § 9-315 (d) of the UCC. The Borrower shall
not, without the Lender’s prior written consent, dispose of any Personal
Property in any other manner, except in compliance with Paragraph (d) of this
Subsection 22.6.

	
 

	
 

	
 

	
 

	
22.7

	
Fixture Filing

	
 

	
 

	
 

	
 

	
 

	
This Deed of
Trust constitutes a financing statement filed as a fixture filing in the
Official Records of the County Clerk of Dallas County, Texas, with respect to
any and all fixtures comprising Property. The “debtor” is AmREIT Preston
Royal, LP, a limited partnership organized under Texas law; the “secured
party” is Transamerica Financial Life Insurance Company, a New York
corporation; the collateral is as described in Subsection 22.2 above and the
granting clause of this Deed of Trust; and the addresses of the debtor and
secured party are the addresses stated in Subsection 27.12 of this Deed of
Trust for Notices to such parties. The organizational identification number
of the debtor is 801673731. The owner of record of the Real Property is
AmREIT Preston Royal, LP. This Deed of Trust shall also be effective as a
financing statement covering minerals or the like (including oil and gas) and
accounts subject to Subsection (e) of Section 9.103 of the Texas Business and
Commerce Code, as amended.

	
 

	
 

	
 

	
23.

	
ENVIRONMENTAL MATTERS 

	
 

	
 

	
 

	
23.1

	
Representations

	
 

	
 

	
 

	
 

	
 

	
The Borrower
represents as follows:

	
 

	
 

	
 

	
 

	
 

	
 (a)

	
No Hazardous Substances

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
To the best
of the Borrower’s knowledge as a duly diligent property owner, and except as
disclosed in the ESA, no release of any Hazardous

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement
Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
-39-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Substance
has occurred on or about the Real Property in a quantity or at a
concentration level that (i) violates any Environmental Law, or (ii) requires
reporting to any regulatory authority or may result in any obligation to
remediate under any Environmental Law.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (b)

	
Absence of Mold Contamination

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
To the best
of the Borrower’s knowledge, the amount of mold present in the air within the
Improvements and the extent of mold growth on the elements of the
Improvements are no greater than normal in buildings free of moisture
intrusion. No mold-related tenant complaint or legal proceeding relating to
the Improvements exists, except as otherwise disclosed to Lender in writing

	
 

	
 

	
 

	
 

	
 

	
 

	
 (c)

	
Compliance with Environmental Laws

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Real
Property and its current use and presently anticipated uses comply with all
Environmental Laws, including those requiring permits, licenses,
authorizations, and other consents and approvals.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (d)

	
No Actions or Proceedings

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
To the best
of Borrower’s knowledge as a duly diligent property owner, no Governmental
Authority or agency has commenced any action, proceeding or investigation
based on any suspected or actual violation of any Environmental Law on or
about the Real Property. To the best of the Borrower’s knowledge as a duly
diligent property owner, no such authority or agency has threatened to
commence any such action, proceeding, or investigation.

	
 

	
 

	
 

	
 

	
 

	
23.2

	
Environmental Covenants

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
covenants as follows:

	
 

	
 

	
 

	
 

	
 

	
 

	
 (a)

	
Compliance with Environmental Laws

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall, and the Borrower shall cause all employees, agents, contractors, and
tenants of the Borrower and any other persons present on or occupying the
Real Property to, keep and maintain the Real Property in compliance with all
Environmental Laws.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (b)

	
Notices, Actions and Claims

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall immediately advise the Lender in writing of (i) any notices from any
governmental or quasi-governmental agency or authority of violation or
potential violation of any Environmental Law received by the Borrower, (ii)
any and all enforcement, cleanup, removal or other governmental or regulatory
actions instituted, completed or threatened pursuant to any Environmental
Law, (iii) all claims made or threatened by any third party against the
Borrower or the Real Property relating to damage, contribution, cost
recovery, compensation, loss or injury resulting from any Hazardous
Substances, and (iv) discovery by the Borrower of any occurrence or condition
on any real property adjoining or in the vicinity of the Real Property that
creates a foreseeable risk of contamination of the Real Property by or with
Hazardous Substances.

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement
Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
-40-

	
 

	
 

	
 

	
 

	
 

	
23.3

	
The Lender’s Right to
Control Claims

	
 

	
 

	
 

	
The Lender
shall have the right (but not the obligation) to join and participate in, as
a party if it so elects, any legal proceedings or actions initiated in
connection with any Hazardous Substances and to have its related and
reasonable attorneys’ and consultants’ fees paid by the Borrower upon demand.

	
 

	
 

	
 

	
 

	
23.4

	
Indemnification

	
 

	
 

	
 

	
 

	
 

	
THE BORROWER
SHALL BE SOLELY RESPONSIBLE FOR, AND SHALL INDEMNIFY, DEFEND, AND HOLD
HARMLESS THE LENDER, THE TRUSTEE, AND THEIR RESPECTIVE DIRECTORS, OFFICERS,
EMPLOYEES, AGENTS, SUCCESSORS AND ASSIGNS, FROM AND AGAINST, ANY CLAIM,
JUDGMENT, LOSS, DAMAGE, DEMAND, COST, EXPENSE OR LIABILITY OF WHATEVER KIND
OR NATURE, KNOWN OR UNKNOWN, CONTINGENT OR OTHERWISE, DIRECTLY OR INDIRECTLY
ARISING OUT OF OR ATTRIBUTABLE TO THE USE, GENERATION, STORAGE, RELEASE, THREATENED
RELEASE, DISCHARGE, DISPOSAL, OR PRESENCE (WHETHER PRIOR TO OR AFTER THE
EFFECTIVE DATE OF THIS DEED OF TRUST) OF HAZARDOUS SUBSTANCES ON, IN, UNDER
OR ABOUT THE REAL PROPERTY (WHETHER BY THE BORROWER, A PREDECESSOR IN TITLE,
ANY TENANT, OR ANY EMPLOYEES, AGENTS, CONTRACTOR OR SUBCONTRACTORS OF ANY OF
THE FOREGOING OR ANY THIRD PERSONS AT ANY TIME OCCUPYING OR PRESENT ON THE
REAL PROPERTY), INCLUDING: (I) PERSONAL INJURY; (II) DEATH; (III) DAMAGE TO
PROPERTY; (IV) ALL CONSEQUENTIAL DAMAGES; (V) THE COST OF ANY REQUIRED OR
NECESSARY REPAIR, CLEANUP OR DETOXIFICATION OF THE REAL PROPERTY, INCLUDING
THE SOIL AND GROUND WATER THEREOF, AND THE PREPARATION AND IMPLEMENTATION OF
ANY CLOSURE, REMEDIAL OR OTHER REQUIRED PLANS; (VI) DAMAGE TO ANY NATURAL
RESOURCES; AND (VII) ALL REASONABLE COSTS AND EXPENSES INCURRED BY THE LENDER
OR THE TRUSTEE IN CONNECTION WITH CLAUSES (I) THROUGH (VI), INCLUDING
REASONABLE ATTORNEYS’ AND CONSULTANTS’ FEES; PROVIDED, HOWEVER, THAT
NOTHING CONTAINED IN THIS SECTION SHALL BE DEEMED TO PRECLUDE THE BORROWER
FROM SEEKING INDEMNIFICATION FROM, OR OTHERWISE PROCEEDING AGAINST, ANY THIRD
PARTY INCLUDING ANY TENANT OR PREDECESSOR IN TITLE TO THE REAL PROPERTY, AND FURTHER
PROVIDED THAT THIS INDEMNIFICATION WILL NOT EXTEND TO (A) MATTERS CAUSED
BY THE LENDER’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR (B) MATTERS
ARISING FROM A RELEASE OF HAZARDOUS SUBSTANCES WHICH OCCURS AFTER THE LENDER
HAS TAKEN POSSESSION OF THE REAL PROPERTY, SO LONG AS THE BORROWER HAS NOT
CAUSED THE RELEASE THROUGH ANY ACT OR OMISSION.

	
 

	
 

	
 

	
 

	
 

	
THE
COVENANTS, AGREEMENTS, AND INDEMNITIES SET FORTH IN THIS SECTION SHALL BE
BINDING UPON THE BORROWER AND ITS HEIRS, PERSONAL REPRESENTATIVES, SUCCESSORS
AND ASSIGNS, AND SHALL SURVIVE REPAYMENT OF THE INDEBTEDNESS, FORECLOSURE OF
THE REAL PROPERTY, AND THE BORROWER’S

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement
Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
-41-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
GRANTING OF
A DEED TO THE REAL PROPERTY IN LIEU OF FORECLOSURE. PAYMENT SHALL NOT BE A
CONDITION PRECEDENT TO THIS INDEMNITY. ANY COSTS OR EXPENSES INCURRED BY THE
LENDER OR THE TRUSTEE FOR WHICH THE BORROWER IS RESPONSIBLE OR FOR WHICH THE
BORROWER HAS INDEMNIFIED THE LENDER SHALL BE PAID TO THE LENDER ON DEMAND,
WITH INTEREST AT THE DEFAULT RATE FROM THE DATE INCURRED BY THE LENDER UNTIL
PAID IN FULL, AND SHALL BE SECURED BY THIS DEED OF TRUST. WITHOUT THE PRIOR
WRITTEN CONSENT OF THE LENDER, THE BORROWER SHALL NOT ENTER INTO ANY
SETTLEMENT AGREEMENT, CONSENT DECREE, OR OTHER COMPROMISE IN RESPECT TO ANY
CLAIMS RELATING TO HAZARDOUS SUBSTANCES.

	
 

	
 

	
 

	
 

	
 

	
23.5

	
Environmental Audits

	
 

	
 

	
 

	
 

	
 

	
 

	
If a Default
exists, or at any time the Lender has reason to believe that a release of
Hazardous Substances may have occurred or may be likely to occur, the Lender
may require that the Borrower retain, or the Lender may retain directly, at
the sole cost and expense of the Borrower, a licensed geologist, industrial
hygienist or an environmental consultant acceptable to the Lender to conduct
an environmental assessment or audit of the Real Property. In the event that
the Lender makes a reasonable determination of the need for an environmental
assessment or audit, the Lender shall inform the Borrower in writing that
such a determination has been made and, if requested to do so by the
Borrower, give the Borrower a written explanation of that determination
before the assessment or audit is conducted. The Borrower shall afford any
person conducting an environmental assessment or audit access to the Real
Property and all materials reasonably requested. The Borrower shall pay on
demand the cost and expenses of any environmental consultant engaged by the
Lender under this Subsection. The Borrower shall, at the Lender’s request and
at the Borrower’s sole cost and expense, take such investigative and remedial
measures, as the Lender determines to be necessary to address any condition
discovered by the assessment or audit so that (i) the Real Property shall be
in compliance with all Environmental Laws, (ii) the condition of the Real
Property shall not constitute any identifiable risk to human health or to the
environment, and (iii) the value of the Real Property shall not be affected
by the presence of Hazardous Substances.

	
 

	
 

	
 

	
 

	
24.

	
CONCERNING THE TRUSTEE

	
 

	
 

	
 

	
 

	
 

	
24.1

	
No Liability

	
 

	
 

	
 

	
The Trustee
will not be liable for any error of judgment or act, or be otherwise
responsible or accountable under any circumstances. If the Trustee or anyone
acting by virtue of the Trustee’s powers enters the Real Property, the
Trustee will not be personally liable for debts contracted or for liability
or damages incurred in the management or operation of the Real Property. The
Trustee will have the right to rely on any instrument, document or signature
authorizing or supporting any action taken or proposed to be taken by the
Trustee or believed by the Trustee in good faith to be genuine. The Trustee
will be entitled to reimbursement for expenses actually incurred by the
Trustee in the performance of the Trustee’s duties and to reasonable compensation
for services rendered. The 

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement
Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
-42-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Borrower
shall, from time to time, pay compensation due the Trustee under this Deed of
Trust and reimburse the Trustee for and save and hold the Trustee harmless
from and against any and all loss, cost, liability, damage and expense
whatsoever incurred by the Trustee in the performance of the Trustee’s
duties.

	
 

	
 

	
 

	
 

	
 

	
24.2

	
Retention of Money

	
 

	
 

	
 

	
 

	
 

	
 

	
All money
received by the Trustee must, until used or applied, be held in trust for the
purposes for which it was received, but need not be segregated in any manner
from any other money (except to the extent required by law) and the Trustee
will have no liability for interest on any money received.

	
 

	
 

	
 

	
 

	
 

	
24.3

	
Successor Trustees

	
 

	
 

	
 

	
 

	
 

	
 

	
The Trustee
may resign by giving notice of such resignation in writing to the Lender. If
the Trustee dies, resigns or becomes disqualified from acting in the execution
of this Trust or fails or refuses to exercise the same when requested by the
Lender so to do or if for any reason and without cause the Lender prefers to
appoint a substitute trustee to act instead of the original Trustee, or any
prior successor or substitute trustee, the Lender will have full power to
appoint a substitute trustee and, if preferred, several substitute trustees
in succession who shall succeed to all the estates, rights, powers and duties
of the Trustee.

	
 

	
 

	
 

	
 

	
 

	
24.4

	
Succession Instruments

	
 

	
 

	
 

	
 

	
 

	
 

	
Any new
Trustee appointed will, without any further act, deed or conveyance, become
vested with all the estates, properties, rights, powers and trusts of the
Trustee’s predecessor. Upon the written request of the Lender or of any
successor trustee, the former Trustee shall execute and deliver an instrument
transferring to such successor Trustee all the estates, properties, rights,
powers and trusts of the former Trustee, and shall duly assign, transfer and
deliver any of the property and money held by the former Trustee to the
successor Trustee so appointed in the former Trustee’s place.

	
 

	
 

	
 

	
 

	
 

	
24.5

	
Performance of Duties by
Agents

	
 

	
 

	
 

	
 

	
 

	
 

	
The Trustee
may authorize one or more parties to act on the Trustee’s behalf to perform
the Trustee’s ministerial functions, including, without limitation, the
transmittal and posting of any notices.

	
 

	
 

	
 

	
 

	
25.

	
AGREEMENT CONCERNING INTEREST

	
 

	
 

	
 

	
 

	
 

	
25.1

	
Savings Clause

	
 

	
 

	
 

	
 

	
 

	
 

	
It is
expressly stipulated and agreed to be the intent of Borrower and Lender at
all times to comply strictly with the applicable Texas law governing the
maximum rate or amount of interest payable on the Note or the Indebtedness
(or applicable United States federal law to the extent that it permits Lender
to contract for, charge, take, reserve or receive a greater amount of
interest than under Texas law). If the applicable law is ever judicially
interpreted so as to render usurious any amount (i) contracted for, taken,
reserved or received pursuant to the Note, any of the other Loan Documents or
any communication or writing by or between Borrower and Lender related to the
transaction or transactions that are the subject matter of the Loan
Documents, (ii) contracted for, charged, taken, reserved or received by
reason of the Lender’s exercise of the option to 

	
 

	
 

	
 

	
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Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
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accelerate
the maturity of the Note and/or the Indebtedness, or (iii) Borrower will have
paid or Lender will have received by reason of any prepayment by Borrower of
the Note and/or the Indebtedness, then it is Borrower’s and Lender’s express
intent that all amounts charged in excess of the Maximum Lawful Rate shall be
automatically cancelled, ab initio,
and all amounts in excess of the Maximum Lawful Rate theretofore collected by
Lender shall be credited on the principal balance of the Note and/or the
Indebtedness (or, if the Note and all Indebtedness have been or would thereby
be paid in full, refunded to Borrower), and the provisions of the Note and
the other Loan Documents shall immediately be deemed reformed and the amounts
thereafter collectible hereunder and thereunder reduced, without the
necessity of the execution of any new document, so as to comply with the applicable
law, but so as to permit the recovery of the fullest amount otherwise called
for hereunder and thereunder; provided, however, if the Note has been paid in
full before the end of the stated term of the Note, then Borrower and Lender
agree that Lender shall, with reasonable promptness after Lender discovers or
is advised by Borrower that interest was received in an amount in excess of
the Maximum Lawful Rate, either refund such excess interest to Borrower
and/or credit such excess interest against the Note and/or any Indebtedness
then owing by Borrower to Lender. Borrower hereby agrees that as a condition
precedent to any claim or counterclaim (in which event such proceeding shall
be abated for such time period) seeking usury penalties against Lender, Borrower
will provide written Notice to Lender, advising Lender in reasonable detail
of the nature and amount of the violation, and the Lender shall have sixty
(60) days after receipt of the Notice to correct such usury violation, if
any, by either refunding such excess interest to Borrower or crediting such
excess interest against the Note and/or the Indebtedness then owing by
Borrower to Lender. All sums contracted for, charged, taken, reserved or
received by Lender for the use, forbearance or detention of any debt
evidenced by the Note and/or the Indebtedness shall, to the extent permitted
by applicable law, be amortized or spread, using the actuarial method,
throughout the stated term of the Note and/or the Indebtedness (including any
and all renewal and extension periods) until payment in full so that the rate
or amount of interest on account of the Note and/or the Indebtedness does not
exceed the Maximum Lawful Rate from time to time in effect and applicable to
the Note and/or the Indebtedness for so long as debt is outstanding. In no
event shall the provisions of Chapter 346 of the Texas Finance Code (which
regulates certain revolving credit loan accounts and revolving triparty
accounts) apply to the Note and/or any of the Indebtedness. Notwithstanding anything
to the contrary contained herein or in any of the other Loan Documents, it is
not the intention of Lender to accelerate the maturity of any interest that
has not accrued at the time of such acceleration or to collect unearned
interest at the time of such acceleration.

	
 

	
 

	
 

	
 

	
 

	
25.2

	
Ceiling Election

	
 

	
 

	
 

	
 

	
 

	
To the
extent that the Lender is relying on Chapter 303 of the Texas Finance Code to
determine the Maximum Lawful Rate payable on the Indebtedness, the Lender
will utilize the weekly ceiling from time to time in effect as provided in
such Chapter 303, as amended. To the extent federal law permits the Lender to
contract for, charge, take, receive or reserve a greater amount of interest
than under Texas law, the Lender will rely on federal law instead of such
Chapter 303 for the purpose of determining the Maximum Lawful Rate.
Additionally, to the extent permitted by applicable law now or hereafter in
effect, the Lender may, at 

	
 

	
 

	
 

	
Deed
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Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
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its option
and from time to time, utilize any other method of establishing the Maximum
Lawful Rate under such Chapter 303 or under other applicable law by giving
notice, if required, to the Borrower as provided by applicable law now or
hereafter in effect.

	
 

	
 

	
26. 

	
LOAN INFORMATION

	
 

	
 

	
 

	
 

	
26.1

	
Dissemination of
Information

	
 

	
 

	
 

	
 

	
 

	
In
connection with any transfer of the Loan or Participation, the Lender may
forward any documents and information that the Lender now has or acquires in
the future concerning the Loan, including the financial statements of any
Obligor, sales reports on retail tenants, and such other information as may
be reasonably related to the Obligors, the Property or the Leases to any
transferee or prospective transferee of the Loan or Participation, or other
party involved in the transaction, or to any of their consultants, attorneys,
advisors or other representatives, and the Borrower waives any legal right it
may have to prohibit such disclosure.

	
 

	
 

	
 

	
 

	
26.2

	
Cooperation

	
 

	
 

	
 

	
 

	
 

	
The
Borrower, any guarantor and any Carveout Obligor shall cooperate with the
Lender in connection with any transfer of the Loan or any Participation. The
Borrower agrees to provide to the Lender or to any persons to whom the Lender
may disseminate such information, at the Lender’s request, financial
statements of Obligors, an estoppel certificate, sales reports on retail
tenants, and such other documents as may be reasonably related to any
Obligor, the Property, or the Leases, including, without limitation, any
historical information on the Real Property that is in the Borrower’s
possession or is reasonably obtainable by the Borrower.

	
 

	
 

	
 

	
 

	
26.3

	
Reserves/Escrows

	
 

	
 

	
 

	
 

	
 

	
The Lender
shall have the right, if required by the transferee of the Loan or any
Participation, to cause funds held by the Lender in escrow or as reserves to
be transferred to deposit or investment accounts at creditworthy financial
institutions, to be held or used in accordance with the Loan Documents.

	
 

	
 

	
 

	
27. 

	
MISCELLANEOUS

	
 

	
 

	
 

	
27.1

	
Successors and Assigns

	
 

	
 

	
 

	
 

	
 

	
All of the
terms of the Loan Documents shall apply to, be binding upon and inure to the
benefit of the heirs, personal representatives, successors and assigns of the
Obligors, or to the holder of the Note, as the case may be.

	
 

	
 

	
 

	
 

	
27.2

	
Survival of Obligations

	
 

	
 

	
 

	
 

	
 

	
Each and all
of the Obligations shall continue in full force and effect until the latest
of (a) the date the Indebtedness has been paid in full and the Obligations
have been performed and satisfied in full, (b) the last date permitted by law
for bringing any claim or action with respect to which the Lender may seek
payment or indemnification in connection with the Loan Documents, and (c) the
date on which any claim or action for which the Lender seeks payment or 

	
 

	
 

	
 

	
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of Trust and Security Agreement
Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
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indemnification
is fully and finally resolved and, if applicable, any compromise thereof of
judgment or award thereon is paid in full.

	
 

	
 

	
 

	
 

	
 

	
27.3

	
Further Assurances

	
 

	
 

	
 

	
 

	
 

	
The
Borrower, upon the request of the Lender or the Trustee, shall complete,
execute, acknowledge, deliver and record or file such further instruments and
do such further acts as may be necessary to carry out more effectively the
purposes of this Deed of Trust, to subject any property intended to be
covered by this Deed of Trust to the mortgage and security interests it
creates, to place third parties on notice of the mortgage and security interests,
or to correct any defects which may be found in any Loan Document.

	
 

	
 

	
 

	
 

	
27.4

	
Right of Inspection

	
 

	
 

	
 

	
 

	
 

	
The Lender
shall have the right from time to time, upon reasonable advance notice to the
Borrower, to enter onto the Real Property for the purpose of inspecting and
reporting on its physical condition, tenancy and operations.

	
 

	
 

	
 

	
 

	
27.5

	
Expense Indemnification

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall pay all filing and recording fees, documentary stamps, intangible
taxes, and all expenses incident to the execution and acknowledgment of this
Deed of Trust, the Note or any of the other Loan Documents, any supplements,
amendments, renewals or extensions of any of them, or any instrument entered
into under Subsection 27.3. The Borrower shall pay or reimburse the Lender,
upon demand, for all costs and expenses, including appraisal and reappraisal
costs of the Property and reasonable attorneys’ and legal assistants’ fees,
which the Lender may incur in connection with enforcement proceedings under
the Note, this Deed of Trust, or any of the other Loan Documents (including
all fees and costs incurred in enforcing or protecting the Note, this Deed of
Trust, or any of the other Loan Documents in any bankruptcy proceeding), and
attorneys’ and legal assistants’ fees incurred by the Lender in any other
suit, action, legal proceeding or dispute of any kind in which the Lender is
made a party or appears as party plaintiff or defendant, affecting the
Indebtedness, the Note, this Deed of Trust, any of the other Loan Documents,
or the Property, or required to protect or sustain this Deed of Trust. The
Borrower shall
be obligated to pay (or to reimburse the Lender) for such fees, costs and
expenses and shall indemnify and hold the Lender and the Trustee harmless
from and against any and all loss, cost, expense, liability, damage and
claims and causes of action, including attorneys’ fees, incurred or accruing
by reason of the Borrower’s failure to promptly repay any such fees, costs
and expenses. If any suit or action is brought to enforce or interpret any of
the terms of this Deed of Trust (including any effort to modify or vacate any
automatic stay or injunction, any trial, any appeal, any petition for review
or any bankruptcy proceeding), the Lender shall be entitled to recover all
expenses reasonably incurred in preparation for or during the suit or action
or in connection with any appeal of the related decision, whether or not
taxable as costs. Such expenses include reasonable attorneys’ fees, witness
fees (expert or otherwise), deposition costs, copying charges and other
expenses. Whether or not any court action is involved, all reasonable
expenses, including the costs of searching records, obtaining title and
credit reports, appraisals, environmental assessments, surveying costs, title
insurance premiums, trustee fees, and other reasonable attorneys’ fees,
incurred by the Lender that are necessary at any time in the Lender’s opinion
for the 

	
 

	
 

	
 

	
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Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
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protection
of its interest or enforcement of its rights shall become a part of the
Indebtedness payable on demand and shall bear interest from the date of
expenditure until repaid at the interest rate as provided in the Note.

	
 

	
 

	
 

	
 

	
 

	
27.6

	
General Indemnification

	
 

	
 

	
 

	
 

	
 

	
The Borrower shall indemnify, defend and hold the Lender harmless
against: (i) any and all claims for brokerage, leasing, finder’s or
similar fees which may be made relating to the Real Property or the
Indebtedness and (ii) any and all liability, obligations, losses, damages,
penalties, claims, actions, suits costs and expenses (including the Lender’s
reasonable attorneys’ fees, together with reasonable appellate counsel fees,
if any) of whatever kind or nature which may be asserted against, imposed on
or incurred by the Lender in connection with the Indebtedness, this Deed of
Trust, the Real Property or any part thereof, or the operation, maintenance
and/or use thereof, or the exercise by the Lender of any rights or remedies
granted to it under this Deed of Trust or pursuant to applicable law;
provided, however, that nothing herein shall be construed to obligate the
Borrower to indemnify, defend and hold harmless the Lender from and against
any of the foregoing which is imposed on or incurred by the Lender by reason
of the Lender’s willful misconduct or gross negligence.

	
 

	
 

	
 

	
 

	
27.7

	
Recording and Filing

	
 

	
 

	
 

	
 

	
 

	
The Borrower
shall cause this Deed of Trust and all amendments, supplements, and
substitutions to be recorded, filed, re-recorded and re-filed in such manner
and in such places as the Lender may reasonably request. The Borrower will
pay all recording filing, re-recording and re-filing taxes, fees and other
charges.

	
 

	
 

	
 

	
 

	
27.8

	
No Waiver

	
 

	
 

	
 

	
No
deliberate or unintentional failure by the Lender to require strict
performance by the Borrower of any Obligation shall be deemed a waiver, and
the Lender shall have the right at any time to require strict performance by
the Borrower of any Obligation.

	
 

	
 

	
 

	
 

	
27.9

	
Covenants Running with the
Land

	
 

	
 

	
 

	
 

	
 

	
All
Obligations are intended by the parties to be and shall be construed as
covenants running with the Land.

	
 

	
 

	
 

	
 

	
27.10

	
Severability

	
 

	
 

	
 

	
 

	
 

	
The Loan
Documents are intended to be performed in accordance with, and only to the
extent permitted by, all applicable Legal Requirements. Any provision of the
Loan Documents that is prohibited or unenforceable in any jurisdiction shall
nevertheless be construed and given effect to the extent possible. The
invalidity or unenforceability of any provision in a particular jurisdiction
shall neither invalidate nor render unenforceable any other provision of the
Loan Documents in that jurisdiction, and shall not affect the validity or
enforceability of that provision in any other jurisdiction. If a provision is
held to be invalid or unenforceable as to a particular person or under a
particular circumstance, it shall nevertheless be presumed valid and
enforceable as to others, or under other circumstances.

	
 

	
 

	
 

	
Deed
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Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
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27.11

	
Entire Agreement

	
 

	
 

	
 

	
 

	
 

	
The Loan
Documents contain the entire agreements between the parties relating to the
financing of the Real Property, and all prior agreements which are not
contained in the Loan Documents, other than the Environmental Indemnity
Agreement, are terminated. The Loan Documents represent the final agreement
between the parties and may not be contradicted by evidence of prior,
contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements between the
parties. The Loan Documents may
be amended, revised, waived, discharged, released or terminated only by a
written instrument or instruments executed by the party against whom
enforcement of the amendment, revision, waiver, discharge, release or
termination is asserted. Any alleged amendment, revision, waiver, discharge,
release or termination that is not so documented shall be null and void.

	
 

	
 

	
 

	
 

	
27.12

	
Notices

	
 

	
 

	
 

	
 

	
 

	
In order for
any demand, consent, approval or other communication to be effective under
the terms of this Deed of Trust, “Notice” must be provided under the terms of
this Subsection. All Notices must be in writing. Notices may be
(a) delivered by hand, (b) transmitted by facsimile (with a duplicate
copy sent by first class mail, postage prepaid), (c) sent by certified or
registered mail, postage prepaid, return receipt requested, or (d) sent by
reputable overnight courier service, delivery charges prepaid. Notices shall
be addressed as set forth below:

	
 

	
 

	
 

	
If to the
Lender:

	
 

	
 

	
 

	
 

	
 

	
Transamerica
Financial Life Insurance Company

	
 

	
 

	
c/o AEGON
USA Realty Advisors, LLC

	
 

	
 

	
4333
Edgewood Road, N.E.

	
 

	
 

	
Cedar
Rapids, Iowa 52499-5443

	
 

	
 

	
Attn:
Mortgage Loan Department

	
 

	
 

	
Reference:
Loan #10512155

	
 

	
 

	
Fax Number:
(319) 355-2277

	
 

	
 

	
 

	
 

	
 

	
If to the
Borrower:

	
 

	
 

	
 

	
 

	
 

	
AmREIT
Preston Royal, LP

	
 

	
 

	
8 Greenway
Plaza, Suite 1000

	
 

	
 

	
Houston,
Texas 77046

	
 

	
 

	
Fax Number:
(713) 850-0498

	
 

	
 

	
 

	
 

	
 

	
With a copy
to:

	
 

	
 

	
 

	
 

	
 

	
Bass, Berry
& Sims PLC

	
 

	
 

	
100 Peabody
Place, Suite 900

	
 

	
 

	
Memphis,
Tennessee 38103

	
 

	
 

	
Attn: Gil
Uhlhorn

	
 

	
 

	
Fax Number:
(866) 393-1959

	
 

	
 

	
 

	
 

	
 

	
If to the
Trustee:

	
 

	
 

	
 

	
 

	
 

	
Peter S.
Graf

	
 

	
 

	
2626 Howell
Street

	
 

	
 

	
Dallas,
Texas 75204

	
 

	
 

	
Fax Number:
(214) 754-7768

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement
Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
-48-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Notices
delivered by hand or by overnight courier shall be deemed given when actually
received or when refused by their intended recipient. Notices sent by facsimile
will be deemed delivered when a legible copy has been received (provided
receipt has been verified by telephone confirmation or one of the other
permitted means of giving Notices under this Subsection). Mailed Notices
shall be deemed given on the date of the first attempted delivery (whether or
not actually received). The Lender or the Borrower may change its address for
Notice by giving at least fifteen (15) Business Days’ prior Notice of such
change to the other party.

	
 

	
 

	
 

	
 

	
27.13

	
Counterparts

	
 

	
 

	
 

	
 

	
 

	
This Deed of
Trust may be executed in any number of counterparts, each of which shall be
an original, but all of which together shall constitute but one instrument.

	
 

	
 

	
 

	
 

	
27.14

	
Choice of Law

	
 

	
 

	
 

	
 

	
 

	
This Deed of Trust
shall be interpreted, construed, applied, and enforced according to, and will
be governed by, the laws of Texas, without regard to any choice of law
principle which, but for this provision, would require the application of the
law of another jurisdiction and regardless of where executed or delivered,
where payable or paid, where any cause of action accrues in connection with
this transaction, where any action or other proceeding involving the Loan is
instituted, or whether the laws of Texas otherwise would apply the laws of
another jurisdiction.

	
 

	
 

	
 

	
 

	
27.15

	
Forum Selection

	
 

	
 

	
 

	
 

	
 

	
The Borrower
agrees that the sole and exclusive forum for the determination of any action
relating to the validity and enforceability of the Note, this Deed of Trust
and the other Loan Documents, and any other instruments securing the Note
shall be either in an appropriate court of the State of Texas or the
applicable United States District Court.

	
 

	
 

	
 

	
 

	
27.16

	
Sole Benefit

	
 

	
 

	
 

	
 

	
 

	
This Deed of
Trust and the other Loan Documents have been executed for the sole benefit of
the Borrower and the Lender and the successors and assigns of the Lender. No
other party shall have rights thereunder or be entitled to assume that the
parties thereto will insist upon strict performance of their mutual
obligations hereunder, any of which may be waived from time to time. The
Borrower shall have no right to assign any of its rights under the Loan
Documents to any party whatsoever.

	
 

	
 

	
 

	
 

	
27.17

	
Release of Claims

	
 

	
 

	
 

	
 

	
 

	
The Borrower
hereby RELEASES, DISCHARGES and ACQUITS forever the Lender and the Trustee
and their officers, directors, trustees, agents, employees and counsel (in
each case, past, present or future) from any and all Claims existing as of
the Effective Date (or the date of actual execution hereof by the Borrower,
if later). As used herein, the term “Claim” shall mean any and all
liabilities, claims, defenses, demands, actions, causes of action, judgments,
deficiencies, interest, liens, costs or expenses (including court costs,
penalties, attorneys’ fees and disbursements, and amounts paid in settlement)
of any kind and character whatsoever, including claims for usury, breach of
contract, breach 

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement
Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
-49-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
of commitment,
negligent misrepresentation or failure to act in good faith, in each case
whether now known or unknown, suspected or unsuspected, asserted or
unasserted or primary or contingent, and whether arising out of written
documents, unwritten undertakings, course of conduct, tort, violations of
laws or regulations or otherwise.

	
 

	
 

	
 

	
 

	
 

	
27.18

	
No Partnership

	
 

	
 

	
 

	
 

	
 

	
Nothing
contained in the Loan Documents is intended to create any partnership, joint
venture or association between the Borrower and the Lender, or in any way
make the Lender a co-principal with the Borrower with reference to the
Property.

	
 

	
 

	
 

	
 

	
27.19

	
Payoff Procedures

	
 

	
 

	
 

	
 

	
 

	
If the
Borrower pays or causes to be paid to the Lender all of the Indebtedness,
then the Trustee’s interest in the Real Property shall cease, and upon
receipt by the Lender of such payment, the Lender shall either (a) cancel
this Deed of Trust or (b) assign the Loan Documents and endorse the Note (in
either case without recourse or warranty of any kind) to a takeout lender,
upon payment (in the latter case) of an administrative fee of $1500 plus all
out-of-pocket expenses incurred by the Lender in connection with such
cancellation or assignment.

	
 

	
 

	
 

	
 

	
27.20

	
Future Advances 

	
 

	
 

	
 

	
 

	
 

	
Under the
terms of this Deed of Trust, “Indebtedness” includes any and all indebtedness
owed by the Borrower to the Lender, any and all obligations of the Borrower
to the Lender, and any and all liabilities of the Borrower to the Lender,
regardless of the kind or character of such indebtedness, obligations or
liabilities, if they relate to the Loan or to the Real Property in any way,
and regardless of whether they arise now or in the future, are absolute or
contingent, secured or unsecured, due or not due, arise by operation of law
or by contract, are direct or indirect, primary or secondary, joint, several,
joint and several, fixed or contingent, or are secured or unsecured by
additional or different security or securities, and regardless of whether the
indebtedness, obligations or liabilities are of the Borrower directly or
arise through its participation in any form of business or economic
association or transaction, whether as a partner, joint venturer, trustee,
principal, surety, endorser, guarantor, accommodation party or otherwise.
However, this Deed of Trust shall not secure any such other indebtedness,
obligation or liability with respect to which the Lender is by applicable law
prohibited from obtaining a lien on real estate, nor shall this definition
operate or be effective to constitute or require any assumption or payment by
any person, in any way, of any debt or obligation of any other person to the
extent that the same would violate or exceed the limit provided in any
applicable usury or other law.

	
 

	
 

	
 

	
 

	
27.21

	
Defeasance

	
 

	
 

	
 

	
 

	
 

	
This Deed of
Trust is made upon the conditions that if (a) all of the Indebtedness and
Obligations, including all future advances and other future indebtednesses,
obligations and liabilities included therein, are paid and performed in full,
(b) the Borrower reimburses the Lender for any amounts the Lender shall have
paid in respect of liens, Impositions, prior mortgages, insurance premiums,
repairing or maintaining the Real Property, performing the Borrower’s
obligations under any Lease, performing the Borrower’s obligations with
respect to environmental matters, and for any other advancements hereunder,
and interest thereon, (c) the 

	
 

	
 

	
 

	
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of Trust and Security Agreement
Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
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Borrower
fulfills all of the Borrower’s other Obligations, (d) the Lender has no
obligation to extend any further credit to or for the account of the
Borrower, and (e) no contingent liability of the Borrower secured by this
Deed of Trust then exists, this conveyance shall be null and void upon the
filing by the Lender of the written instrument of termination described in
Section 27.22.

	
 

	
 

	
 

	
 

	
 

	
27.22

	
Satisfaction
of Deed of Trust

	
 

	
 

	
 

	
 

	
 

	
This Deed of
Trust and the Lender’s security interest under this Deed of Trust in the Real
Property will not be terminated until a written mortgage satisfaction
instrument executed by one of the Lender’s officers is filed for record in
the county in which the Land is located. Except as otherwise expressly
provided in this Deed of Trust, no satisfaction of this Deed of Trust shall
in any way affect or impair the representations, warranties, agreements or
other obligations of the Borrower or the powers, rights and remedies of the
Lender under this Deed of Trust with respect to any transaction or event
occurring prior to such satisfaction, all of which shall survive such
satisfaction.

	
 

	
 

	
 

	
 

	
27.23

	
Date of Deed
of Trust

	
 

	
 

	
 

	
 

	
 

	
The date of
this Deed of Trust is intended as a date for the convenient identification of
this Deed of Trust and is not intended to indicate that this Deed of Trust
was executed and delivered on that date.

	
 

	
 

	
 

	
 

	
27.24

	
Interpretation

	
 

	
 

	
 

	
 

	
 

	
 

	
 (a)

	
Headings and General Application

	
 

	
 

	
 

	
 

	
The section,
subsection, paragraph and subparagraph headings of this Deed of Trust are
provided for convenience of reference only and shall in no way affect, modify
or define, or be used in construing, the text of the sections, subsections,
paragraphs or subparagraphs. If the text requires, words used in the singular
shall be read as including the plural, and pronouns of any gender shall
include all genders.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (b)

	
Sole Discretion

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Lender
may take any action or decide any matter under the terms of this Deed of
Trust or of any other Loan Document (including any consent, approval,
acceptance, option, election or authorization) in its sole and absolute
discretion, for any reason or for no reason, unless the related Loan Document
contains specific language to the contrary. Any approval or consent that the
Lender might withhold may be conditioned in any way.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (c)

	
Result of Negotiations

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
This Deed of
Trust and all other Loan Documents result from negotiations between the
Borrower and the Lender and from their mutual efforts. Therefore, it shall be
so construed, and not as though it had been prepared solely by the Lender.

	
 

	
 

	
 

	
 

	
 

	
 

	
 (d)

	
Reference to Particulars

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The scope of
a general statement made in this Deed of Trust or in any other Loan Document
shall not be construed as having been reduced through the inclusion of
references to particular items that would be included within the statement’s
scope. Therefore, unless the relevant provision of a Loan Document contains
specific language to the contrary, 

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement
Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
-51-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
the term
“include” shall mean “include, but shall not be limited to” and the term
“including” shall mean “including, without limitation.”

	
 

	
 

	
 

	
 

	
 

	
27.25

	
Joint and Several
Liability

	
 

	
 

	
 

	
 

	
 

	
If there is
more than one individual or entity executing this Deed of Trust as the
Borrower, liability of such individuals and entities under this Deed of Trust
shall be joint and several.

	
 

	
 

	
 

	
 

	
27.26

	
Time of Essence

	
 

	
 

	
 

	
 

	
 

	
Time is of
the essence of each and every covenant, condition and provision of this Deed
of Trust to be performed by the Borrower.

	
 

	
 

	
 

	
 

	
27.27

	
Jury Waiver

	
 

	
 

	
 

	
 

	
 

	
THE BORROWER
AND BY ITS ACCEPTANCE HEREOF, THE LENDER, HEREBY WAIVE ANY RIGHT TO A TRIAL
BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS (I) UNDER
THIS DEED OF TRUST OR ANY OTHER LOAN DOCUMENT OR (II) ARISING FROM ANY
LENDING RELATIONSHIP EXISTING IN CONNECTION WITH THIS DEED OF TRUST OR ANY
OTHER LOAN DOCUMENT, AND THE BORROWER AND BY ITS ACCEPTANCE HEREOF, THE
LENDER, AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A
JUDGE AND NOT BEFORE A JURY.

	
 

	
 

	
 

	
 

	
27.28

	
Renewal, Extension,
Modification and Waiver

	
 

	
 

	
 

	
 

	
 

	
The Lender,
at its option, may at any time renew or extend this Deed of Trust, the Note
or any other Loan Document. The Lender may enter into a modification of any
Loan Document or of the Environmental Indemnity Agreement without the consent
of any person not a party to the document being modified. The Lender may
waive any covenant or condition of any Loan Document or of the Environmental
Indemnity Agreement, in whole or in part, at the request of any person then
having an interest in the Property or in any way liable for any part of the
Indebtedness. The Lender may take, release, or resort to any security for the
Note and the Obligations and may release any party primarily or secondarily
liable on any Loan Document or on the Environmental Indemnity Agreement, all
without affecting any liability not expressly released in writing by the
Lender.

	
 

	
 

	
 

	
 

	
 

	
27.29

	
Cumulative Remedies

	
 

	
 

	
 

	
 

	
 

	
Every right
and remedy provided in this Deed of Trust shall be cumulative of every other
right or remedy of the Lender, whether conferred by law or by grant or
contract, and may be enforced concurrently with any such right or remedy. The
acceptance of the performance of any obligation to cure any Default shall not
be construed as a waiver of any rights with respect to any other past,
present or future Default. No waiver in a particular instance of the
requirement that any Obligation be performed shall be construed as a waiver
with respect to any other Obligation or instance.

	
 

	
 

	
 

	
 

	
27.30

	
No Obligation to Marshal
Assets

	
 

	
 

	
 

	
 

	
 

	
No holder of
any deed of trust, security interest or other encumbrance affecting all or
any portion of the Real Property, which encumbrance is inferior to the 

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement
Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
-52-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
mortgage and
security interest of this Deed of Trust, shall have any right to require the
Lender to marshal assets.

	
 

	
 

	
 

	
 

	
 

	
27.31

	
Transfer of Ownership

	
 

	
 

	
 

	
 

	
 

	
The Lender
may, without notice to the Borrower, deal with any person in whom ownership
of any part of the Real Property has vested, without in any way vitiating or
discharging the Borrower from liability for any of the Obligations.

	
 

	
 

	
 

	
 

	
 

	
27.32

	
Notice of Indemnification

	
 

	
 

	
 

	
 

	
 

	
THE BORROWER
HEREBY ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT CONTAINS INDEMNIFICATION
OBLIGATIONS PURSUANT TO SECTIONS 4, 21, 23.4, 27.5, and 27.6.

	
 

	
 

	
 

	
Deed
of Trust and Security Agreement
Preston
Royal Village, Dallas, Texas
AEGON
Loan No. 10512155

	
-53-

	
 

IN WITNESS
WHEREOF, the Borrower has caused this Deed of Trust to be duly executed on the
date of the acknowledgement of the Borrower’s signature below, to be effective
as of the Effective Date.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
AMREIT
PRESTON ROYAL, LP, a Texas limited partnership

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
AmREIT
Preston Royal GP, LLC, a

Texas limited liability company

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Brett Treadwell

	
 

	
 

	
 

	
Name: 

	
Brett Treadwell

	
 

	
 

	
 

	
Title:

	
Vice President

	
 

	
 

	
 

	
 

	
STATE OF           Texas          

	
)

	
 

	
 

	
 

	
)ss.

	
 

	
 

	
COUNTY OF           Harris          

	
)

	
 

	
 

          The
foregoing instrument was acknowledged before me on this 7th day of
December, 2012, by Brett Treadwell, the Vice President of AmREIT
Preston Royal GP, LLC, a Texas limited liability company, as general partner of
AMREIT PRESTON ROYAL, LP, a Texas
limited partnership, on behalf of the limited partnership.

	
 

	
 

	
 

	
 

	
 

	
 

	
/s/ Deborah Korkmas

	
 

	
Notary
Public in and for the State of 

	
  Texas

	
 

	
Printed
Name: 

	
Deborah Korkmas

	
 

	
 

	
My Commission Expires:

	
5-12-2013

	
 

	
 

	
 

	
 

	
Deed of Trust and Security Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155

	
-54-

	
 

Exhibit A

Tract 1 (Preston Royal No. 1):

All that certain lot, tract, or parcel of land situated in the John W.
Smith Survey, Abstract Number 1336, Dallas County, Texas, and being all of a
called 8.217 acre tract of Sand described in a deed to Preston Royal Realty
Company, as recorded in Document Number 200600021970, Deed Records, Dallas
County, Texas, the subject tract being more particularly described as follows;

BEGINNING at an “X” cut set in the West line of Preston Road for the
Northeast corner of the herein described tract, the Northeast corner of said
8.217 acre tract and the Southeast corner of a 15’ alley in Block C of Preston
Royal No. 1, an addition to the City of Dallas, according to the plat thereof
recorded in Volume 8, Page 383, Plat Records, Dallas County, Texas, from which
a capped iron rod found stamped “Arthur” for the Southeast corner of Lot 10 in
said Block C bears North 00 degrees 01 minutes 15 seconds East, a distance of
15.00 feet;

THENCE South with the West line of said Road and the most Northerly
East line of said 8.217 acre tract, a distance of 481.15 feet to an “X” cut set
for the most Easterly Southeast corner thereof and the apparent Northeast
corner of a tract of land described in deed to Hal Winfield Padgett, Jr., as
recorded in Volume 82207, Page 232, Deed Records, Dallas County, Texas;

THENCE North 89 degrees 50 minutes 00 seconds West with the apparent
North line thereof and the most Easterly South line of said 8.217 acre tract, a
distance of 100.00 feet to a PK nail set for an inner ell corner thereof and
the apparent Northwest corner of said Padgett tract;

THENCE South with the apparent West line thereof and the most Southerly
East line of said 8.217 acre tract, a distance of 120.00 feet to an “X” cut set
on the North line of Royal Lane for the most Southerly Southeast corner
thereof;

THENCE South 89 degrees 50 minutes 00 seconds West with the North line
of said Lane and the South line of said 8.217 acre tract, a distance of 121.00
feet to a PK nail set for an inner ell corner thereof;

THENCE South with an East line of said 8.217 acre tract and a West line
of said Lane, a distance of 5.00 feet to an “X” cut set for corner on the South
line of said 8.217 acre tract and the North line of said Lane;

THENCE North 89 degrees 50 minutes 00 seconds West with the North line
thereof and the South line of said 8.217 acre tract, a distance of 390.45 feet
to an “X” cut set for the Southwest corner thereof and the Southeast corner of
a tract of land described in a deed to St. Lukes Episcopal Church, as recorded
in Document Number 2002-1756115, Deed Records, Dallas County, Texas;

THENCE North 00 degrees 02 minutes 25 seconds East with the East line
thereof and the West line of said 8.217 acre tract, a distance of 609.82 feet
to an “X” cut set in the South line of said alley for the Northeast corner of
said St. Lukes tract and the Northwest corner of said 8.217 acre tract;

THENCE South 89 degrees 29 minutes 20 seconds East with the North line
thereof and the South line of said alley, a distance of 611.04 feet to the PLACE
OF BEGINNING and enclosing 8.23 acres of land more or less.

	
 

	
 

	
 

	
Deed of Trust and Security Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155

	
-55-

	
 

Tract 2 (Easement Estate): 

Non-exclusive easement estate appurtenant to Tract 1, in and to the
following described property created pursuant to that certain Reciprocal
Easement Agreement dated December __, 2012, by and between AmREIT Preston
Royal, LP and AmREIT Preston Royal NEC, LP, recorded as Document Number
2012_____________, Official Public Records of Dallas County, Texas: 

All that certain lot, tract, or parcel of land situated in the James
Thomas Survey, Abstract Number 1485, Dallas County, Texas, and being all of a
called 7.49 acre tract of land described in a deed to Preston Royal Realty
Company, as recorded in Volume 80110, Page 428, Deed Records, Dallas County,
Texas, the subject tract being more particularly described as follows;

BEGINNING at an “X” cut set in the East line of Preston Road for the
Northwest corner of the herein described tract, the Northwest corner of said
7.49 acre tract and being the most Westerly Southwest corner of a 15’ alley in
Block No. 1 of Preston Royal No. 2, an addition to the City of Dallas,
according to the plat thereof recorded in Volume 10, Page 59, Plat Records,
Dallas County, Texas;

THENCE South 89 degrees 45 minutes 09 seconds East with the North line
of said 7.49 acre tract and the South line of said alley, a distance of 363.76
feet to a capped iron rod set at the beginning of a curve to the right having a
radius of 44.50 feet and a chord bearing and distance of South 67 degrees 19
minutes 09 seconds East, 33.96 feet;

THENCE Southeasterly, along the arc of said curve, the Northeast line
of said 7.49 acre tract and the Southwest line of said alley, an arc distance
of 34.85 feet to a capped iron rod set at the end of said curve;

THENCE South 44 degrees 53 minutes 09 seconds East with the Northeast
line of said 7.49 acre tract and the Southwest line of said alley, a distance
of 284.46 feet to a capped iron rod set at the beginning of a curve to the
right having a radius of 50.00 feet and a chord bearing and distance of South
22 degrees 25 minutes 22 seconds East, 38.21 feet;

THENCE Southeasterly, along the arc of said curve, the Northeast line
of said 7.49 acre tract and the Southwest line of said alley, an arc distance
of 39.21 feet to a capped iron rod set at the end of said curve;

THENCE South 00 degrees 02 minutes 25 seconds West with the East line
of said 7.49 acre tract and the West line of said alley, at a distance of
355.83 feet passing an “X” cut found for the Northeast corner of an Easement
for road purposes, as recorded in Volume 283, Page 865, Deed Records, Dallas
County, Texas, continuing along said course, a total distance of 360.82 feet to
a point in the North line of Royal Lane for the Southeast corner of said 7.49
acre tract and the most Southerly Southwest corner of said alley, from which a
1/2” iron rod found for the Southwest corner of Lot 6 in Block 2 of said
addition bears North 88 degrees 07 minutes 48 seconds East, a distance of 14.95
feet;

THENCE North 89 degrees 45 minutes 09 seconds West with the North line
of said Lane and the most Easterly South line of said 7.49 acre tract, a
distance of 485.16 feet to a point for the most Southerly Southwest corner
thereof and the apparent Southeast corner of a tract of land described in a
deed to Humble Oil and Refining Company, as recorded in Volume 71123, Page 14,
Deed Records, Dallas County, Texas; 

THENCE North with the apparent East line thereof and the most Southerly
West line of said 7.49 acre tract, at a distance of 4.78 feet passing an “X”
cut found for the Northwest corner of said

	
 

	
 

	
 

	
Deed of Trust and Security Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155

	
-56-

	
 

Road Easement, continuing along said course, a total distance of 156.29
feet to an “X” cut set for an inner ell corner of said 7.49 acre tract and the
apparent Northeast corner of said Humble tract;

THENCE North 89 degrees 52 minutes 00 seconds West with the apparent
North line thereof and the most Westerly South line of said 7.49 acre tract, a
distance of 125.00 feet to a capped iron rod set in the East line of said
Preston Road for the most Westerly Southwest corner thereof and the apparent
Northwest corner of said Humble tract;

THENCE North with the East line of said Road and the most Northerly
West line of said 7.49 acre tract, a distance of 453.67 feet to the PLACE OF
BEGINNING and enclosing 7.49 acres of land more or less.

	
 

	
 

	
 

	
Deed of Trust and Security Agreement
Preston Royal Village, Dallas, Texas
AEGON Loan No. 10512155

	
-57-

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