Document:

HARTMAN XX

   
 Loan No. 84-5100034
 

 

 ENVIRONMENTAL  INDEMNITY  AGREEMENT
 

 

 THIS ENVIRONMENT AL INDEMNITY AGREEMENT (this "Agreement") made as of December 30, 2014 by HARTMAN ENERGY LLC, a Delaware limited  liability  company, having an address or office at 2909 Hillcroft, Suite 420, Houston, Texas 77057 ("Borrower"), and HARTMAN SHORT TERM INCOME PROPERTIES XX, INC., a Maryland corporation, having an address or office at 2909 Hillcroft, Suite 420, Houston, Texas 77057 ("Guarantor"; together with Borrower, individually and collectively, jointly and severally,  "Indemnitor"),  in favor of U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR MORGAN STANLEY CAPITAL    I   INC.,    COMMERCIAL    MORTGAGE    PASS-THROUGH    CERTIFICATES,
 SERIES 2011-C3, having an address at c/o Wells  Fargo  Bank,  National  Association, Commercial Mortgage Servicing, 1901 Harrison Street, 2nd Floor, Oakland, California 94612 ("Indemnitee") and other Indemnified Parties (defined below).
 

 RECITALS
 

 A.
 Morgan Stanley Mortgage Capital Holdings LLC, a New York limited liability company ("Original Indemnitee"), made a loan (the "Loan") to BRI 1841 Energy Plaza, LLC, a Delaware   limited   liability   company   ("Original    Borrower"),   in   the   principal   amount   of
 $10,900,000.00 pursuant to a Loan Agreement dated May 20, 2011 between Original Borrower and Original Indemnitee (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the "Loan Agreement"). Capitalized terms not otherwise defined herein shall have the meaning set forth in the Loan Agreement.
 

 B.
 Original Borrower has sold and conveyed the Property to Borrower, or is about to sell and convey the Property to Borrower (the "Transfer"), and both parties desire to obtain from Indemnitee, the current holder of the Note, a waiver of any right Indemnitee may have under the Loan Documents to accelerate the maturity date of the Note by virtue of such conveyance.
 

 C.
 Subject to the terms and conditions of the Assumption Agreement entered into by Indemnitor, Indemnitee and others of even date herewith, Indemnitee is willing  to waive any right of acceleration of the maturity date of the Note upon assumption by Borrower of all obligations of Original Borrower under the Note, the Loan Agreement and the other Loan Documents  (the "Assumption").
 

 D.
 Indemnitee is unwilling to consent to the Transfer and the Assumption unless Indemnitor agrees to provide the indemnification, representations,  warranties,  covenants  and other matters described in this Agreement for the benefit of the Indemnified Parties.
 

 E.
 Indemnitor is entering into this Agreement to induce Indemnitee to consent to the Transfer and the Assumption.
 

 

 

 ENVIRONMENT AL INDEMNITY  AGREEMENT -  Page  I

  AGREEMENT
 

 NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Indemnitor hereby represents, warrants, covenants and agrees for the benefit of the Indemnified Parties as follows:
 

 1.
 Environmental  Representations  and Warranties.   Except as otherwise disclosed by that  certain  Phase  I  environmental  report  (or  Phase  II  environmental  report,  if  required)  in respect of the Property delivered to Original Indemnitee by Original Borrower (referred to below as  the   "Environmental    Report"),   a  copy   of  which   has  been  provided   to   Indemnitee and Indemnitor, (a) to the best of Indemnitor's knowledge, after due inquiry and investigation, there are no Hazardous  Substances (defined below) or underground  storage tanks  in, on, or under the Property, except  those  that  are both  (i) in compliance  with  all  Environmental Laws (defined below) and with permits issued pursuant thereto and (ii) fully disclosed to Indemnitee in writing pursuant to the Environmental Report; (b) to the best of  Indemnitor's knowledge, after due inquiry and investigation, there are no past, present or  threatened  Releases  (defined  below)  of Hazardous  Substances in, on, under or from the  Property which have not been fully remediated in accordance  with  Environmental  Law;  (c) to  the  best  of  Indemnitor's  knowledge,  after  due inquiry and investigation, there is no threat of any Release of Hazardous Substances migrating to the Property; (d) to the best oflndemnitor's knowledge, after due inquiry and investigation, there is no past or present non-compliance  with Environmental Laws, or with permits issued pursuant thereto, in connection with the Property  which has not been fully remediated in accordance with Environmental Law; (e) Indemnitor does not know of, and has not received, any written or oral notice or other communication from any  Person  (including but  not  limited  to a governmental entity)  relating  to  Hazardous  Substances  or Remediation (defined below) thereof, of possible liability of any Person pursuant to any  Environmental Law,  other environmental  conditions  in connection with the Property, or any actual or potential administrative or judicial proceedings in connection with  any  of  the  foregoing;  (f)  Indemnitor  has  truthfully   and  fully  provided  to Indemnitee,  in writing,  any  and all information relating to conditions in, on, under or from the Property that is known to  Indemnitor and that is contained in files and records of Indemnitor, including but not limited to  any reports relating to Hazardous Substances in, on, under or from the Property and/or to  the   environmental  condition  of  the  Property;  (g)  to  the   best   of Indemnitor's knowledge,  after  due inquiry and investigation, the Property  currently displays no evidence  of water  infiltration  or water damage; (h) there are no prior or current complaints by tenants at the Property  regarding water  infiltration  or water  damage or  leaks  or  odors related thereto; and (i) to the  best of Indemnitor's knowledge, after due inquiry and investigation, the Property currently displays no conspicuous evidence of the growth of Microbial Matter.
 

 2.
 Environmental Covenants. Indemnitor covenants and agrees that: (a) all uses and operations on or of the Property, whether by Indemnitor or any other Person, shall be in compliance with all Environmental Laws and permits issued pursuant thereto; (b) there shall be no Releases of Hazardous Substances in, on, under or from the Property in violation of Environmental Laws; (c) there shall be no Hazardous Substances in, on, or under the Property, except those that are both (i) in compliance with all Environmental Laws and with permits issued pursuant thereto and (ii) fully disclosed to Indemnitee in writing; (d) Indemnitor shall keep the Property free and clear of all liens and other encumbrances imposed pursuant  to  any Environmental Law, whether due to any act or omission of Indemnitor  or any other Person (the

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 "Environmental Liens"); (e) Indemnitor shall, at its sole  cost  and  expense,  fully  and expeditiously cooperate in all activities pursuant to Paragraph 3 of this Agreement, including but not limited to providing all relevant  information  and making  knowledgeable  Persons  available for interviews; (f) Indemnitor shall, at its sole cost and expense, perform any environmental site assessment or other investigation of environmental conditions in connection with the Property, pursuant to any reasonable written request of Indemnitee (including but not limited to sampling, testing and analysis of soil, water, air, building materials, and other materials and substances whether solid, liquid or gas), and share with Indemnitee the reports and other results thereof, and Indemnitee and the other Indemnified Parties shall be entitled to rely on such reports and other results thereof; (g) Indemnitor shall, at its sole cost and expense, comply with all reasonable written requests of Indemnitee to (i) effectuate Remediation of any such Hazardous Substance or condition in violation of applicable Environmental Laws (including but not limited to a Release of a Hazardous Substance) in, on, under or from the Property; (ii) comply with any applicable Environmental Law; (iii) comply with any directive from any applicable governmental authority; and (iv) take any other reasonable action necessary or appropriate for protection of human health or the environment; (h) Indemnitor shall not do or allow any tenant or other user of the Property to do any act that materially increases the dangers to human health or the environment, poses an unreasonable risk of harm to any Person (whether on or off the Property), impairs or may impair the value of the Property, is contrary to any requirement of any insurer, constitutes a public or private nuisance, constitutes waste, or violates any covenant, condition, agreement or easement applicable to the Property, provided, however, no default by Indemnitor shall arise under this Agreement as a result of any Property tenant's or other Property user's acts if Indemnitor immediately notifies Indemnitee of such actions and diligently works to correct  any  loss  or damage   to   the   Property   as   a   result   therefrom   in   a  manner   acceptable   to   Indemnitee;
 (i) Indemnitor shall immediately notify Indemnitee in writing of (A) any presence in violation of any applicable Environmental Law or Releases or threatened Releases of Hazardous Substances in, on, under, from or migrating towards the Property; (B) any non-compliance with any Environmental Laws related in any way to the Property;  (C)  any  actual  or  potential Environmental Lien; (D) any required or proposed Remediation of environmental conditions required by any Governmental Authority relating to the Property; and (E) any written or oral notice or other communication of which any Indemnitor becomes aware from any source whatsoever (including but not limited to a governmental entity) relating in any way to Hazardous Substances or Remediation thereof, possible liability of any Person pursuant to  any Environmental Law, other environmental conditions in connection with  the  Property,  or  any actual or potential administrative or judicial proceedings in connection with anything referred to in this Agreement; and (j) Indemnitor shall comply with any and all applicable local, state or federal laws, legislation, guidelines or statutes at any time in effect with respect to Microbial Matter. Notwithstanding anything contained herein or in the Loan Agreement, it shall not be a default, event of default or Event of Default under this Agreement or any other Loan Document in the event of the failure to perform any of the covenants or agreements contained in this Agreement so long as Indemnitor shall cure such failure within 30 days of the date of receipt of written notice from Indemnitee of such failure (provided if such failure is not subject to cure within such 30-day period then such 30-day period shall be extended for so long as may be reasonably necessary to cure same provided that Indemnitor shall  have  commenced  to  cure within such 30-day period and shall thereafter diligently and expeditiously pursue such cure to completion).

  

  

 
 
   

 3.
 Indemnified  Rights/Cooperation  and Access.  In the event the Indemnified  Parties reasonably believe that an environmental hazard exists on the Property that does not, in the sole discretion of the Indemnified Parties, endanger any tenants or other occupants of the Property or their guests or the general public or materially and adversely affects the value of the Property, upon reasonable notice from the Indemnitee, Indemnitor shall, at Indemnitor's  expense, promptly cause an  engineer  or  consultant  satisfactory  to  the  Indemnified  Parties   to conduct  any environmental  assessment or audit (the scope of which shall be determined  in the sole and absolute discretion of the Indemnified Parties) and take any samples of soil,  groundwater or other water, air, or building materials or any other invasive testing requested by Indemnitee and promptly deliver the results of any such assessment, audit, sampling or other testing; provided, however, if such results are not delivered to the Indemnified Parties within a reasonable period or if the Indemnified Parties have reason to believe that an environmental  hazard exists on the Property that, in the sole judgment of the Indemnified Parties, endangers  any tenant or other occupant of the Property or their guests or the general public or may  materially and adversely affect the value of the Property, upon reasonable notice to Indemnitor,  the Indemnified Parties and any other Person designated by the Indemnified Parties, including  but not limited to any receiver, any representative of a governmental entity, and any  environmental consultant, shall have the right, but not the obligation, to enter upon the Property  at all reasonable times (subject to the rights of tenants) to assess any and all aspects of the  environmental condition of the Property and its use, including but not limited to conducting  any environmental assessment or audit (the scope of which shall be determined in  the  sole  and  absolute  discretion  of the Indemnified Parties) and taking samples of soil, groundwater  or other water, air, or building materials, and reasonably conducting other invasive testing.  Indemnitor shall cooperate with and provide the Indemnified Parties and any such Person designated by the Indemnified Parties with access to the Property.
 

 4.
 INDEMNIFICATION. INDEMNITOR COVENANTS AND AGREES, AT ITS SOLE COST AND EXPENSE, TO PROTECT, DEFEND, INDEMNIFY, RELEASE AND HOLD INDEMNIFIED PARTIES HARMLESS FROM AND AGAINST ANY AND ALL LOSSES (DEFINED BELOW)  IMPOSED UPON OR INCURRED BY OR ASSERTED AGAINST ANY INDEMNIFIED PARTIES AND DIRECTLY OR INDIRECTLY ARISING OUT OF OR IN ANY WAY RELATING TO ANY ONE OR MORE OF THE FOLLOWING: (A) ANY PRESENCE OF ANY HAZARDOUS SUBSTANCES IN, ON, ABOVE, OR UNDER THE PROPERTY; (B) ANY PAST, PRESENT OR THREATENED RELEASE OF HAZARDOUS SUBSTANCES IN, ON, ABOVE, UNDER OR FROM THE PROPERTY; (C) ANY ACTIVITY BY INDEMNITOR, ANY PERSON AFFILIATED WITH INDEMNITOR, AND ANY TENANT OR OTHER USER OF THE PROPERTY IN CONNECTION WITH ANY ACTUAL, PROPOSED OR THREATENED USE, TREATMENT, STORAGE, HOLDING, EXISTENCE, DISPOSITION OR OTHER RELEASE, GENERATION, PRODUCTION, MANUFACTURING, PROCESSING, REF'INING, CONTROL, MANAGEMENT, ABATEMENT, REMOVAL, HANDLING, TRANSFER OR TRANSPORTATION TO OR FROM THE PROPERTY OF ANY HAZARDOUS SUBSTANCES AT ANY TIME LOCATED IN, UNDER, ON OR ABOVE THE PROPERTY; (D) ANY ACTIVITY BY INDEMNITOR, ANY PERSON AFFILIATED WITH INDEMNITOR, AND ANY TENANT OR OTHER USER OF THE PROPERTY IN CONNECTION  WITH  ANY  ACTUAL  OR  PROPOSED  REMEDIATION  OF  ANY

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  HAZARDOUS SUBSTANCES AT ANY TIME LOCATED IN, UNDER, ON OR ABOVE THE PROPERTY, WHETHER OR NOT SUCH REMEDIATION IS VOLUNTARY OR PURSUANT TO COURT OR ADMINISTRATIVE ORDER, INCLUDING BUT NOT LIMITED TO ANY REMOVAL, REMEDIAL OR CORRECTIVE ACTION; (E) ANY PAST, PRESENT OR THREATENED NON-COMPLIANCE OR VIOLATIONS OF ANY ENVIRONMENTAL LAWS (OR PERMITS ISSUED PURSUANT TO ANY ENVIRONMENTAL LAW) IN CONNECTION WITH .THE PROPERTY OR OPERATIONS THEREON, INCLUDING BUT NOT LIMITED TO ANY FAILURE BY INDEMNITOR, ANY PERSON AFFILIATED WITH INDEMNITOR, AND ANY TENANT OR OTHER USER OF THE PROPERTY TO COMPLY WITH ANY ORDER OF ANY GOVERNMENTAL AUTHORITY IN CONNECTION WITH ANY ENVIRONMENTAL LAWS; (F) THE IMPOSITION, RECORDING OR FILING OR THE THREATENED IMPOSITION, RECORDING OR FILING  OF ANY ENVIRONMENTAL LIEN ENCUMBERING THE PROPERTY; (G) ANY ADMINISTRATIVE PROCESSES OR PROCEEDINGS OR JUDICIAL PROCEEDINGS IN ANY WAY CONNECTED WITH ANY MATTER ADDRESSED IN THIS AGREEMENT; (H) ANY PAST, PRESENT OR THREATENED INJURY TO, DESTRUCTION OF OR LOSS OF NATURAL RESOURCES IN ANY WAY CONNECTED WITH THE PROPERTY, INCLUDING BUT NOT LIMITED TO COSTS TO INVESTIGATE AND ASSESS SUCH INJURY, DESTRUCTION OR LOSS; (I) ANY ACTS OF INDEMNITOR, ANY PERSON AFFILIATED WITH INDEMNITOR, AND ANY TENANT OR OTHER USER OF THE PROPERTY IN ARRANGING FOR DISPOSAL OR TREATMENT, OR ARRANGING WITH A TRANSPORTER FOR TRANSPORT FOR DISPOSAL OR TREATMENT, OF HAZARDOUS SUBSTANCES RELATING TO THE PROPERTY AT ANY FACILITY OR INCINERATION VESSEL CONTAINING SUCH OR SIMILAR HAZARDOUS SUBSTANCES; (J) ANY ACTS OF INDEMNITOR, ANY PERSON AFFILIATED WITH ANY INDEMNITOR, AND ANY TENANT OR OTHER USER  OF THE PROPERTY IN ACCEPTING ANY HAZARDOUS SUBSTANCES TO OR FROM THE PROPERTY FOR TRANSPORT TO DISPOSAL OR TREATMENT FACILITIES, INCINERATION VESSELS OR SITES FROM WHICH THERE IS A RELEASE, OR A THREATENED RELEASE  OF ANY HAZARDOUS SUBSTANCE WHICH CAUSES THE INCURRENCE OF COSTS FOR REMEDIATION; (K) ANY PERSONAL INJURY, WRONGFUL DEATH, OR PROPERTY OR OTHER DAMAGE ARISING UNDER ANY STATUTORY OR COMMON LAW OR TORT LAW THEORY, INCLUDING BUT NOT LIMITED TO DAMAGES ASSESSED FOR PRIVATE OR PUBLIC NUISANCE OR FOR THE CONDUCTING OF AN ABNORMALLY DANGEROUS ACTIVITY ON OR NEAR THE PROPERTY; AND (L) ANY MISREPRESENTATION OR  INACCURACY IN ANY REPRESENTATION OR WARRANTY IN THIS AGREEMENT OR MATERIAL BREACH OR FAILURE TO PERFORM ANY COVENANTS OR OTHER OBLIGATIONS PURSUANT TO THIS AGREEMENT, THE LOAN AGREEMENT OR THE MORTGAGE.
 

 5.
 Duty to Defend and  Attorneys  and  Other  Fees  and  Expenses.  Upon  written request  by  any  Indemnified  Party,  Indemnitor  shall  defend  same  (if  requested   by any Indemnified Party, in the name of the Indemnified Party) by attorneys and other  professionals approved by the Indemnified Parties. Notwithstanding the foregoing, any  Indemnified Parties

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  may, in their sole and absolute discretion, engage their own attorneys and other professionals to defend or assist them, and, at the option of Indemnified Parties, their attorneys shall control the resolution of any claim or proceeding, providing that no compromise or settlement shall be entered without Indemnitor's consent, which consent shall not be unreasonably withheld. Upon demand, Indemnitor shall pay or, in the sole and absolute discretion of the Indemnified Parties, reimburse, the Indemnified Parties for the payment of reasonable fees and disbursements of attorneys, engineers, environmental consultants, laboratories and other professionals in connection therewith.
 

 6.
 Definitions.
 As used  m this Agreement,  the following terms  shall have the following meanings:
 

 (a)
 The term "Environmental Law" means any present and future federal, state and local laws, statutes, ordinances, rules, regulations and the like, as well as common law, relating to protection of human health or the environment, relating to Hazardous Substances, relating to liability for or costs of other actual or threatened danger to human health or the environment.
 

 (b)
 The term "Environmental Law" includes, but is not limited to, the following statutes, as amended, any successor thereto, and any regulations promulgated pursuant thereto, and any state or local statutes, ordinances, rules, regulations and the like addressing similar issues: the Comprehensive Environmental Response, Compensation and Liability Act; the Emergency Planning and Community Right-to-Know Act; the Hazardous Substances Transportation Act; the Resource Conservation and Recovery Act (including but not limited to Subtitle I relating to underground storage tanks); the Solid Waste Disposal Act; the Clean Water Act; the Clean Air Act; the Toxic Substances Control Act; the Safe Drinking Water Act; the Occupational Safety and Health Act; the Federal Water Pollution Control Act; the Federal Insecticide, Fungicide and Rodenticide Act; the Endangered Species Act; the National Environmental Policy Act; and the River and Harbors Appropriation Act.
 

 (c)
 The term "Environmental Law" also includes, but is not limited to, any present and future federal, state and local laws, statutes ordinances, rules, regulations and the like, as well as common law: conditioning transfer  of property upon a negative declaration or other approval of a governmental authority of the environmental condition of the Property; requiring notification or disclosure of Releases of Hazardous Substances or other environmental condition of the Property to any Governmental Authority or other Person, whether or not in connection with transfer of title to or interest in property; imposing conditions or requirements in connection with permits or other authorization for lawful activity; relating to nuisance, trespass or other causes of action related to the Property; and relating to wrongful death, personal injury, or property or other damage in connection with any physical condition or use of the Property.
 

 (d)
 The term "Hazardous Substances" includes but is not limited to any and all substances (whether solid, liquid or gas) defined, listed, or otherwise classified as pollutants, hazardous wastes, hazardous substances, hazardous materials, extremely hazardous wastes, or words of similar meaning or regulatory effect under any present or

  (a)

  

  

 
 
  future Environmental Laws or that may have a negative impact on human health or the environment, including but not limited to Microbial Matter, petroleum and petroleum products, asbestos and asbestos-containing materials, polychlorinated biphenyls, lead, radon, radioactive materials, flammables and explosives, but excluding substances of kinds and in amounts ordinarily and customarily used or stored in similar properties for the purposes of cleaning or other maintenance or operations and otherwise in compliance with all Environmental Laws.
 

 (e)
 The term "Indemnified Parties" includes Indemnitee, any Person who is or will have been involved in the origination of the Loan, any Person who is or will have been involved with the servicing of the Loan, any Person in whose name the encumbrance created by the Mortgage is or will have been recorded, Persons who may hold or acquire or will have held a full or partial interest in the Loan (including, but not limited to, Investors (defined below) or prospective Investors in the Securities (defined below), as well as custodians, trustees and other fiduciaries who hold or have held a full or partial interest in the Loan for the benefit of third parties) as well as the respective directors, officers, shareholders, partners, employees, agents, servants, representatives, contractors, subcontractors, affiliates, subsidiaries, participants, successors and assigns of any and all of the foregoing (including but not limited to any other Person who holds or acquires or will have held a participation or other full or partial interest in the Loan or the Property, whether during the term of the Loan or as a part of or following a foreclosure of the Loan and including, but not limited to, any successors by merger, consolidation or acquisition of all or a substantial portion oflndemnitee's assets and business).
 

 (f) The term "Legal Action" means any claim, suit or proceeding, whether administrative or judicial in nature.
 

 (g)
 The term "Losses" includes any losses, damages, costs, fees, expenses, claims, suits, judgments, awards, liabilities (including but not limited to strict liabilities), obligations, debts, diminutions in value, fines, penalties, charges, costs of Remediation (whether or not performed voluntarily), amounts paid in settlement, foreseeable and unforeseeable consequential damages, litigation costs, attorneys' fees, engineers' fees, environmental consultants' fees, and investigation costs (including but not limited to costs for sampling, testing and analysis of soil, water, air, building materials, and other materials and substances whether solid, liquid or gas), of whatever kind or nature, and whether or not incurred in connection with any judicial or administrative proceedings, actions, claims, suits, judgments or awards.
 

 (h)
 The term "Microbial Matter" means fungi or bacterial matter which reproduces through the release of spores or the  splitting of cells, including, but not limited to, mold, mildew, and viruses, whether or not such Microbial Matter is living.
 

 (i)
 The term "Release" with respect to any Hazardous Substance includes but is not limited to any release, deposit, discharge, emission, leaking, leaching, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing or other movement of Hazardous Substances.

  (g)

  

  

 
 
  (j) The term "Remediation" includes but is  not  limited  to  any  response, remedial, removal, or corrective action; any activity to clean up, detoxify, decontaminate, contain or otherwise remediate any Hazardous Substance; any actions to prevent, cure or mitigate any Release of any Hazardous Substance; any action to comply with any Environmental Laws or with any permits issued pursuant thereto; any inspection, investigation, study,  monitoring, assessment, audit, sampling and testing, laboratory  or other analysis, or evaluation relating to any Hazardous Substances or to anything referred to herein.
 

 7.
 Unimpaired Liability.  The liability of Indemnitor under this Agreement shall in no way be limited or impaired by, and Indemnitor hereby consents to and agrees to be bound by, any amendment or modification of the provisions of the Note, the Loan Agreement, the Mortgage or any other Loan Document to or with Indemnitee by Indemnitor or any Person who succeeds Indemnitor or any Person as owner of the Property. In addition, the liability of Indemnitor under this Agreement shall in no way be limited or impaired by (i) any extensions of time for performance required by the Note, the Loan Agreement, the Mortgage or any of the other Loan Documents, (ii) unless a substitute indemnitor acceptable to Indemnitee has agreed in a writing acceptable to Indemnitee to be bound by the terms of this Agreement, any sale or transfer of all or part of the Property, (iii) except as provided herein, any exculpatory provision in the Note, the Loan Agreement, the Mortgage, or any of the other Loan Documents limiting Indemnitee's recourse to the Property or to any other security for the Note, or limiting Indemnitee's rights to a deficiency judgment against Indemnitor, (iv) the accuracy or inaccuracy of the representations and warranties made by Indemnitor under the Note, the Loan Agreement, the Mortgage or any of the other Loan Documents or herein, (v) the release of Indemnitor or any other Person from performance or  observance of any of the agreements, covenants, terms or condition contained in any of  the other Loan Documents by operation of law, Indemnitee's voluntary act, or otherwise, (vi) the release or substitution in whole or in part of any security for the Note, or (vii) Indemnitee's failure to record the Mortgage or file any UCC financing statements (or Indemnitee's improper recording or filing of any thereof) or to otherwise perfect, protect, secure or insure any security interest or lien given as security for the Note; and, in any such case, whether with or without notice to Indemnitor and with or without consideration.
 

 8.
 Enforcement. Indemnified Parties may enforce the obligations of Indemnitor without first resorting to or exhausting any security or collateral or without first having recourse to the Note, the Loan Agreement, the Mortgage, or any other Loan Documents or any of the Property, through foreclosure proceedings or otherwise, provided, however, that nothing herein shall inhibit or prevent Indemnitee from suing on the Note, foreclosing, or exercising any power of sale under, the Mortgage, or exercising any other rights and remedies thereunder. This Agreement is not collateral or security for the debt of Indemnitor pursuant to the Loan, unless Indemnitee expressly elects in writing to make this Agreement additional collateral or security for the debt of Indemnitor pursuant to the Loan, which Indemnitee is entitled to do in its sole and absolute discretion. It is not necessary for an Event of Default to have occurred pursuant to and as defined in the Mortgage or the Loan Agreement for Indemnified Parties to exercise their rights pursuant to this Agreement.  Notwithstanding any provision of the Loan Agreement, the obligations pursuant to this Agreement are exceptions to any non-recourse or exculpation provision of the Loan Agreement; Indemnitor is fully and personally liable for such obligations,

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  and such liability is not limited to the original or amortized principal balance of the Loan or the value of the Property.
 

 9.
 Survival.  The obligations and liabilities of Indemnitor under this Agreement shall fully  survive  indefinitely  notwithstanding  any termination,  satisfaction,  assignment,  entry  of a judgment  of  foreclosure,  exercise  of  any  power  of  sale,  or  delivery  of  a  deed  in  lieu_ o_f _ __ foreclosure of the Mortgage.
 

 10.
 Interest. Any amounts payable to any Indemnified Parties under this Agreement shall become immediately due and payable on demand and, if not paid within five (5) days of such demand therefor, shall bear interest at the Default Rate.
 

 11.
 Waivers.
 

 (a)
 Indemnitor hereby waives (i) any right or claim of right to cause a marshaling of Indemnitor's assets or to cause Indemnitee or other Indemnified Parties to proceed against any of the security for the Loan before proceeding under this Agreement against Indemnitor; (ii) and relinquishes all rights and remedies accorded by applicable law to indemnitors or guarantors, except any rights of subrogation which Indemnitor may have, provided that the indemnity provided for  hereunder  shall  neither  be  contingent upon the existence of any such rights of subrogation nor subject to any claims or defenses whatsoever which may be asserted in connection with the enforcement or attempted enforcement of such subrogation rights including, without limitation, any claim that such subrogation rights were abrogated by any acts of Indemnitee or other Indemnified Parties;
 (iii) the right to assert a counterclaim, other than a   mandatory  or  compulsory counterclaim, in any action or proceeding brought against or by Indemnitee or other Indemnified Parties;  (iv) notice of acceptance hereof and of any action taken or omitted in reliance hereon; (v) presentment for payment, demand of payment, protest or notice of nonpayment  or failure to perform  or observe, or other proof,  or notice or demand; and
 (vi) all homestead exemption rights against the obligations hereunder and the benefits of any statutes of limitations or repose. Notwithstanding anything to the contrary contained herein, Indemnitor hereby agrees to postpone the exercise of any rights  of subrogation with respect to any collateral securing the Loan until the Loan shall have been paid in full.
 

 (b) INDEMNITOR HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE LOAN EVIDENCED BY THE NOTE, THE APPLICATION FOR  THE  LOAN EVIDENCED BY THE NOTE, THE MORTGAGE, THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY ACTS OR OMISSIONS OF ANY INDEMNIFIED  PARTIES  IN CONNECTION THEREWITH.
 

 12.
 Subrogation. Indemnitor shall take any and all reasonable actions, including institution of legal action against third parties, necessary or appropriate to obtain reimbursement, payment  or  compensation  from  such  Persons  responsible  for the  presence  of  any  Hazardous

  9.

  Substances at, in, on, under or near the Property or otherwise obligated by law to bear the cost. Indemnified Parties shall be and hereby are subrogated to all of Indemnitor's rights  now  or hereafter in such claims.
 

 13.
 warrants that:
 
 Indemnitor's
 Representations
 and    Warranties.
 Indemnitor
 represents
 and
 

 
 (a)
 it has the full power and authority to execute and deliver this Agreement and to perform its obligations hereunder; the execution, delivery and performance of this Agreement by Indemnitor has been duly and validly authorized; and all requisite action has been taken by Indemnitor to make this Agreement valid and  binding  upon Indemnitor, enforceable in accordance with its terms;
 

 (b)
 its execution of, and compliance with, this Agreement is in the ordinary course of business of Indemnitor and will not result in the breach of any term or provision of the charter, by-laws, partnership or trust agreement, or other governing instrument of lndemnitor or result in the breach of any term or provision of, or conflict  with  or constitute a default under, or result in the acceleration of any obligation under, any agreement, indenture or loan or credit agreement or other instrument to which Indemnitor or the Property is subject, or result in the violation of any law, rule, regulation, order, judgment  or decree to which Indemnitor or the Property is subject;
 

 (c)
 to the best of Indemnitor's knowledge, there is no action, suit, proceeding or investigation pending or threatened against it which, either in any one instance or in the aggregate, may result in any material adverse change in the business, operations, financial condition, properties or assets of Indemnitor, or in any material impairment of the right or ability of Indemnitor to carry on its business substantially as now conducted, or in any material liability on the part of Indemnitor, or which would draw into question the validity of this Agreement or of any action taken or to be taken in connection with the obligations of Indemnitor contemplated herein, or which would be likely to impair materially the ability of Indemnitor to perform under the terms of this Agreement;
 

 (d)
 it does not believe, nor does it have any reason or cause to believe, that it cannot perform each and every covenant contained in this Agreement;
 

 (e)
 to the best of Indemnitor's knowledge, no approval, authorization, order, license or consent of, or registration or filing with, any governmental authority or other person, and no approval, authorization or consent of any other party is required in connection with this Agreement; and
 

 (f)
 this Agreement constitutes a valid, legal and binding obligation of Indemnitor, enforceable against it in accordance with the terms hereof.
 

 14.
 No  Waiver.  No delay by any Indemnified Party in exercising any right, power or privilege under this Agreement shall operate as a waiver of any such privilege, power or right.
 

 15.
 Notice  of Legal Actions.  Each party hereto shall, within five (5) business days of receipt thereof, give written notice to the other party hereto of (i) any written notice, advice or
 ENVIRONMENTAL  INDEMNITY  AGREEMENT  -  Page  I 0

  other communication from any governmental entity or any source whatsoever with respect to Hazardous Substances on, from or affecting the Property in violation of Environmental Laws, and (ii) any legal action brought against such party or related to the Property, with respect to which Indemnitor may have liability under this Agreement. Such notice shall comply with the provisions of Section 19 hereof.
 

 16.
 Examination of  Books  and  Records.  Indemnified Parties and their  accountants shall have the right to examine the records, books, management and other papers of Indemnitor which reflect upon its financial condition, at the Property or at the office regularly maintained by Indemnitor where the books and records are located. Indemnified Parties and  their accountants shall have the right to make copies and extracts from the foregoing records and other papers. In addition, at reasonable times and  upon  reasonable  notice,  Indemnified   Parties and their accountants shall have the right to examine and audit the books and  records of Indemnitor pertaining to the income, expenses and operation of the Property  during reasonable business hours at the office of Indemnitor where the books and records are located.
 

 17.
 Transfer of Loan.
 

 (a)
 Indemnitee may, at any time, sell, transfer or assign the Note, the Loan Agreement, the Mortgage, this Agreement and the other Loan Documents, and any or all servicing rights with respect thereto, or grant participations therein or issue mortgage pass-through certificates or other securities evidencing a beneficial interest in a rated or unrated public offering or private placement (the "Securities"). Indemnitee may forward to each purchaser, transferee, assignee, servicer, participant or investor in such Securities or any credit rating  agency rating such Securities (the foregoing entities hereinafter collectively referred to as the "Investor") and each prospective Investor, all documents and information which Indemnitee now has or may hereafter acquire relating to Indemnitor and the Property, whether furnished by Indemnitor, any guarantor or otherwise, as Indemnitee determines necessary or desirable. Indemnitor and any guarantor agree to cooperate with Indemnitee in connection with any transfer made or any Securities created pursuant to this Section, including, without limitation, the delivery of an estoppel certificate required in accordance with the Loan Agreement and such other documents as may be reasonably requested by Indemnitee. lndemnitor shall also furnish, and Indemnitor and any guarantor hereby consent to Indemnitee furnishing to such Investors or such prospective Investors, any and all information concerning the financial condition of the Indemnitor and any guarantor and any and all information concerning the Property and the Leases as may be requested by Indemnitee, any Investor or any prospective Investor in connection with any sale, transfer or participation interest.
 

 (b)
 Upon any transfer or proposed transfer contemplated above and by Section 9.1 of the Loan Agreement, at Indemnitee's request, Indemnitor shall provide an estoppel certificate to the Investor or any prospective Investor in such form, substance and detail as Indemnitee, such Investor or prospective Investor may require.
 

 18.
 Taxes. lndemnitor has filed all federal, state, county, municipal, and city income and other tax returns required to have been filed by it and has paid all taxes and related liabilities which have become due pursuant to such returns or pursuant to any assessments received by it.

  17.

  

  

 
 
  Indemnitor has no knowledge of any basis for any additional assessment in respect of any such taxes and related liabilities for prior years.
 

 19.
 Notices. All notices or other written communications hereunder shall be made in accordance with Section  11.6 of the Loan Agreement.
 

 20.
 Duplicate   Originals;   Counterparts.    This  Agreement  may  be  executed  in  any number of duplicate originals and each duplicate original shall be deemed to be an original. This Agreement may be executed in several counterparts, each of which counterparts shall be deemed an original instrument and all of which together shall constitute a single Agreement.  The failure of any party hereto to execute this Agreement, or any counterpart hereof, shall not  relieve the other signatories from their obligations hereunder.
 

 21.
 No   Oral   Change.    This  Agreement,  and  any  prov1s10ns  hereof,  may  not  be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure to act on the part of Indemnitor or any Indemnified Party, but only by an agreement  in writing signed by the party against whom enforcement of any modification, amendment,  waiver, extension, change, discharge or termination is sought.
 

 22.
 Headings, Etc. The headings and captions of various paragraphs of this Agreement are for convenience of reference only and are not to  be construed as defining or limiting, in any way, the scope or intent of the provisions hereof.
 

 23.
 Number   and  Gender/Successors   and  Assigns.   All pronouns  and any  variations thereof shall be deemed  to refer  to the masculine,  feminine,  neuter,  singular  or  plural  as the identity of the Person or Persons referred to may require. Without limiting the  effect of specific references in any provision of this Agreement, the term "Indemnitor" shall be deemed to refer to each and every Person comprising an Indemnitor from time to time, as the  sense of a particular provision may require, and to include the heirs, executors, administrators,  legal representatives, successors  and  assigns  of Indemnitor,  all  of whom  shall be  bound  by  the provisions of this Agreement, provided that no obligation of Indemnitor may be assigned  except with the written consent of Indemnitee. Each reference herein to Indemnitee shall be  deemed to include its successors and assigns. This Agreement shall inure to the benefit of  Indemnified  Parties and their respective successors and assigns forever.
 

 24.
 Release of Liability. Any one or more parties liable upon or in respect of this Agreement may be released without affecting the liability of any party not so released.
 

 25.
 Rights Cumulative. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies which Indemnitee has under the Note, the Mortgage, the Loan Agreement or the other Loan Documents or would otherwise have at law or in equity.
 

 26.
 Inapplicable Provisions. If any term, condition or covenant  of this Agreement shall be held to be invalid, illegal or unenforceable in any respect, this Agreement shall be construed without such provision.

  20.
 

 

 
  

 27.
 Governing Law.
 

 (a)
 THIS AGREEMENT WAS NEGOTIATED IN THE STATE  OF NEW YORK, AND MADE BY INDEMNITOR AND ACCEPTED  BY INDEMNITEE IN THE STATE OF NEW YORK,  AND  THE  PROCEEDS  OF THE NOTE SECURED HEREBY WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND  IN  ALL  RESPECTS, INCLUDING, WITHOUT LIMITING THE  GENERALITY  OF  THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA. TO THE FULLEST EXTENT PERMITTED BY LAW, INDEMNITOR HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT AND THE NOTE, AND THIS AGREEMENT AND THE NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.
 

 (b)
 ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST INDEMNITEE OR INDEMNITOR ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT INDEMNITEE'S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW  YORK GENERAL OBLIGATIONS LAW, AND INDEMNITOR WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND INDEMNITOR HEREBY  IRREVOCABLY  SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. INDEMNITOR DOES HEREBY DESIGNATE AND APPOINT:
 

 C T Corporation System 111 Eighth Avenue
 New York, New York  10011
 

 AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE  OF SAID SERVICE MAILED  OR DELIVERED  TO INDEMNITOR  IN
 

 

 
 THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON INDEMNITOR IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. INDEMNITOR (I) SHALL GIVE PROMPT NOTICE TO INDEMNITEE OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE  DESIGNATED  AS THE   PERSON   AND   ADDRESS   FOR   SERVICE    OF    PROCESS),    AND (Ill) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK ORIS DISSOLVED WITHOUT  LEAVING A SUCCESSOR.
 

 28.
 Miscellaneous.
 

 (a)
 Wherever pursuant to this Agreement (i) Indemnitee exercises any right given to it approve or disapprove, (ii) any arrangement or term is to be satisfactory to Indemnitee, or (iii) any other decision or determination is to be made by Indemnitee, the decision of Indemnitee to approve or disapprove, all decisions that arrangements or terms are satisfactory or not satisfactory and all other decisions and determinations made by Indemnitee, shall be in the sole and absolute discretion of Indemnitee and shall be final and conclusive, except as may be otherwise expressly and specifically provided herein.
 

 (b)
 Wherever pursuant to this Agreement it is provided that Indemnitor pay any costs and expenses, such costs and expenses shall include, but not be limited to, legal fees and disbursements of Indemnitee, whether retained firms, the reimbursements for the expenses of the in-house staff or otherwise.
 

 (c)
 Joint   and   Several   Liability.    If Indemnitor  consists  of  more  than  one person or party, the obligations  and liabilities  of each such person  or party  hereunder shall be joint and several.
 

 29.
 State Specific Provisions.
 

 (a)
 In the event of any inconsistencies between the terms and conditions of this Section 29 and the other  terms and conditions of this Agreement, the terms and conditions of Section 29 shall control and be binding.
 

 (b)
 Environmental    Law.     The   term   "Environmental    Law"   as   defined   in Section 6 above also includes Remedy  Standard A 30 TEX. ADMIN.  CODE,  Chapter 350.
 

 (c)
 SPECIFIC NOTICE. IT IS EXPRESSLY AGREED AND UNDERSTOOD THAT THIS AGREEMENT INCLUDES INDEMNIFICATION PROVISIONS WHICH, IN CERTAIN  CIRCUMSTANCES,  COULD  INCLUDE AN INDEMNIFICATION BY INDEMNITOR OF INDEMNITEE FROM CLAIMS OR LOSSES ARISING AS  A  RESULT  OF  INDEMNITEE'S  OWN NEGLIGENCE.
 (a)

  

  

 
 
  [NO FURTHER TEXT ON THIS PAGE]

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

 

 INDEMNITOR:
 

 

 HARTMAN ENERGY LLC, a Delaware limited liability company
 

 By:  Hartman Income REIT Management, Inc., a Texas corporation, its manager
 By:
  
 Name: Allen R. Harttnatf"
 Title: President
 

 

 

 HARTMAN SHORT TERM INCOME
 PROPERTIES XX, INC., a Maryland corporationHARTMAN XX

   
 Loan No. 84-5100034
 

 

 GUARANTY OF RECOURSE OBLIGATIONS OF BORROWER
 

 

 THIS GUARANTY OF RECOURSE OBLIGATIONS OF BORROWER (as the same
 may from time to time hereafter be modified, supplemented or amended, the "Guaranty") is made as of December 30, 2014 by HARTMAN SHORT TERM INCOME PROPERTIES XX,
 INC., a Maryland corporation, having an address at 2909 Hillcroft, Suite 420, Houston, Texas 77057 (hereinafter referred to as "Guarantor"), in favor of U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR MORGAN STANLEY CAPITAL I INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2011-C3, having
 an address at c/o Wells Fargo Bank, National Association, Commercial Mortgage Servicing, 1901 Harrison Street, 2nd Floor, Oakland, California 94612 (together with its successors and assigns, "Lender").
 

 RECITALS
 

 WHEREAS, Morgan Stanley Mortgage Capital Holdings LLC, a New York limited liability company ("Original Lender"), made a loan in the principal sum of TEN MILLION NINE HUNDRED THOUSAND AND N0/100 DOLLARS ($10,900,000.00)  (the "Loan") to
 BRI 1841 Energy Plaza, LLC, a Delaware limited liability company ("Original Borrower"), evidenced by that certain Promissory Note (the "Note"), dated as of May 20, 2011 made by Original Borrower in favor of Original Lender and that certain Loan Agreement (the "Loan Agreement"), dated of even date with the Note, by and between Original Borrower and Original Lender, and secured by that certain Deed of Trust, Assignment of Leases and Rents and Security Agreement (the "Security Instrument"), dated of even date with the Note, executed by Original Borrower for the benefit of Original Lender, and by other documents executed in connection therewith (the "Other Loan Documents"). Capitalized terms not defined herein shall have the meaning set forth in the Loan Agreement.
 

 WHEREAS, Original Borrower, has sold and conveyed the Property to Hartman Energy LLC, a Delaware limited liability company, having  its principal place of business at 2909 Hillcroft, Suite 420, Houston, Texas 77057 ("Borrower"), or is about to sell and convey the Property to Borrower (the "Transfer"), and both parties desire to obtain from Lender, the current holder of the Note, a waiver of any right Lender may have under the Loan Documents  to accelerate the maturity date of the Note by virtue of such Transfer.
 

 WHEREAS, subject to the terms and conditions of the Assumption Agreement entered into by Borrower, Lender, Indemnitee and others of even date herewith, Lender is willing to waive any right of acceleration of the maturity date of the Note upon assumption by Borrower of all obligations of Original Borrower under the Loan Documents (the "Assumption").
 

 

 

 

 

 US2008 6140502 3
 GUARANTY OF RECOURSE OBLIGATIONS OF BORROWER - Page I
 AGREEMENT
 

 NOW THEREFORE, FOR VALUE RECEIVED, and in order to induce Lender  to consent to the Transfer and the Assumption, and intending to legally bound:
 

 1.
 Guarantor hereby absolutely and unconditionally guarantees to Lender the prompt and unconditional payment of the Guaranteed Recourse Obligations of  Borrower (hereinafter defined), as described in Section 4 below.
 

 2.
 It is expressly understood and agreed that this is a continuing guaranty and that the obligations of Guarantor hereunder are and shall be absolute under any and all circumstances, without regard to the validity, regularity or enforceability of the Note, the Loan Agreement, the Security Instrument, or the Other Loan Documents, a true copy of each of said documents Guarantor hereby acknowledges having received and reviewed.
 

 3.
 The term "Debt" as used in this Guaranty shall mean the principal sum evidenced by the Note and secured by the Security Instrument, or so much thereof as may be outstanding from time to time, together with interest thereon at the rate of interest specified in the Note and all other sums other than  principal or interest which may or shall become due  and  payable pursuant to the provisions of the Note, the Loan Agreement, the Security Instrument or the Other Loan Documents.
 

 4.
 The  term   "Guaranteed    Recourse    Obligations   of   Borrower"   as  used   in   this Guaranty  shall mean  (i) all obligations and liabilities of Borrower  for which Borrower  shall be personally liable pursuant to Section  11.22 of the Loan Agreement.
 

 5.
 Any indebtedness of Borrower to Guarantor now or hereafter existing (including, but not limited to, any rights to subrogation Guarantor may have as a result of any payment by Guarantor under this  Guaranty), together with any interest thereon, shall  be,  and  such indebtedness is, hereby deferred, postponed and subordinated to the prior payment in full of the Debt. Until payment in full of the Debt (and including interest accruing on the Note after the commencement of a proceeding by  or against Borrower under the Bankruptcy Reform Act of 1978, as amended, 11 U.S. C. Sections 101 et seq., and the regulations adopted and promulgated pursuant thereto (collectively, the "Bankruptcy Code") which interest the parties  agree  shall remain a claim that is prior and superior to any claim of Guarantor notwithstanding any contrary practice, custom or ruling in cases under the Bankruptcy Code generally), Guarantor agrees not to accept any payment or satisfaction of any kind of indebtedness of Borrower to Guarantor and hereby assigns such indebtedness to Lender, including the right to file proof of claim and to vote thereon in connection with any such proceeding under the Bankruptcy Code, including the right to vote on any plan of reorganization. Further, if Guarantor shall comprise more than one person, firm or corporation, Guarantor agrees that until such payment in full of the Debt, (a) no one of them shall accept payment from the others by way of contribution on account of any payment made hereunder by such party to Lender, (b) no one of them will take any action to exercise or enforce any rights to such contribution, and (c) if any of Guarantor should receive any payment, satisfaction or security for any indebtedness of Borrower to any of Guarantor or for any contribution by the others of Guarantor for payment made hereunder by the recipient to Lender, the  same shall be  delivered  to  Lender  in the  form  received,  endorsed  or assigned  as may be
 1.

  

 
 appropriate for application on account of, or as security for, the Debt and until so delivered, shall be held in trust for Lender as security for the Debt.
 

 6.
 Guarantor agrees that, with or without notice or demand, Guarantor  will reimburse Lender, to the extent that such reimbursement is not made by Borrower, for all expenses (including counsel fees and any fees of a special servicer) incurred by Lender in connection with the collection of the Guaranteed Recourse Obligations of Borrower  or  any portion thereof or with the enforcement of this Guaranty.
 

 7.
 All moneys available to Lender for application in payment or reduction of the Debt may be applied by Lender in such manner and in such amounts and at such time or times and in such order and priority as Lender may see fit to the payment or reduction of 'such portion of the Debt as Lender may elect.
 

 8.
 Guarantor waives: (a) any defense based upon any legal disability or other defense of  Borrower, any other guarantor or other person, or by reason of the cessation or limitation of the liability of Borrower from any cause other than full payment of all sums payable under the Loan Agreement or any of the other Loan Documents; (b) any defense based upon any lack of authority of the officers, directors, partners or agents acting or purporting to act on behalf of Borrower or any principal of Borrower or any defect in the formation of Borrower or any principal of Borrower; (c) any defense based upon the application by Borrower of the proceeds of the Loan for purposes other than the purposes represented by Borrower to Lender or intended or understood by Lender or Guarantor; (d) all rights and defenses arising out of an election of remedies by Lender; (e) any defense based upon Lender's failure to disclose to Guarantor any information concerning Borrower's financial condition or any other circumstances bearing on Borrower's ability to pay all sums payable under the Loan Agreement or any of the other Loan Documents; (f) any defense based upon any statute or rule of law which provides that  the obligation of a surety must be neither larger in amount nor in any other respects more burdensome than that of a principal; (g) any defense based upon Lender's election, in any proceeding instituted under the Bankruptcy Code, of the application of Section 1111(b)(2) of the Bankruptcy Code or any successor statute; (h) any defense based  upon any borrowing or any grant of a security interest under Section 364 of the Federal Bankruptcy Code; (i) presentment, demand, protest and notice of any kind; and G) the benefit of any statute of limitations affecting the liability of Guarantor hereunder or the enforcement hereof. In addition, Guarantor waives all rights and defenses that Guarantor may have because Borrower's debt is secured by  real property. This means, among other things: (1) Lender may collect from Guarantor without first foreclosing on any real or personal property collateral pledged by Borrower; and (2) if Lender forecloses on any real property collateral pledged by Borrower, then (i) the amount of the debt may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral is worth more than the sale price, and (ii) Lender may collect from Guarantor even if Lender, by foreclosing on the real prope1iy collateral, has destroyed any right Guarantor may have to collect from Borrower. The foregoing sentence is an  unconditional  and  irrevocable waiver of any rights and defenses Guarantor may have because Borrower's debt is secured by real property. Finally, Guarantor agrees that the payment of all sums payable under the Loan Agreement or any of the other Loan Documents or any part thereof or other act which tolls any statute of limitations applicable to the Note or the other Loan Documents shall similarly operate to toll the statute of limitations applicable to Guarantor's liability hereunder.

  1.

  

  

 
 
   

 9.
 Guarantor further agrees that the validity of this Guaranty and the obligations of Guarantor hereunder shall in no way be terminated, affected or impaired by reason of any of the following: (a) the assertion by Lender of any rights or remedies which it may have under or with respect to either the Note, the Loan Agreement, the Security Instrument, or the Other Loan Documents, against any person obligated thereunder or against the owner of the Property (as defined in the Security Instrument), or (b) any failure to file or record any of such instruments or to take or perfect any security intended to be provided thereby, or (c) the release or exchange of any property covered by the Security Instrument or other collateral for the Loan, or (d) Lender's failure to exercise, or delay in exercising, any such right or remedy or any right or remedy Lender may have hereunder or in respect to this Guaranty, or (e) the commencement of a case under the Bankruptcy Code by or against any person obligated under the Note, the Security Instrument or the Other Loan Documents, or the death of any Guarantor, or (f) any partial or total transfer or pledge of the interests in Borrower, or in any direct or indirect owner of Borrower, and/or the reconstitution of Borrower as a result of such transfer or pledge, regardless of whether any of the foregoing is permitted under the Loan Documents, or (g) any payment made on the Debt or any other indebtedness arising under the Note, the Loan Agreement, the Security Instrument or the Other Loan Documents, whether made by Borrower or Guarantor or any other person, which is required to be refunded pursuant to any bankruptcy or insolvency law; it being understood that no payment so refunded shall be considered as a payment of any portion of the Debt, nor shall it have the effect of reducing the liability of Guarantor hereunder. It is further understood, that if Borrower shall have taken advantage of, or be subject to the protection of any provision in the Bankruptcy Code, the effect of which is to prevent or delay Lender from taking any remedial action against Borrower, including the exercise of any option Lender has to declare the Debt due and payable on the happening of any default or event by which under the terms of the Note, the Loan Agreement, the Security Instrument or the Other Loan Documents, the Debt shall become due and payable, Lender may, as against Guarantor, nevertheless, declare the Debt due and payable and enforce any or all of its rights and remedies against Guarantor provided for herein.
 

 10.
 Guarantor warrants and acknowledges that: (a) Lender would not make the Loan but for this Guaranty; (b) there are no conditions precedent to the effectiveness of this Guaranty and this Guaranty shall be in full force and effect and binding on Guarantor regardless of whether Lender obtains other collateral or any guaranties from others or takes any other action contemplated by Guarantor; (c) Guarantor has established adequate means of obtaining from sources other than Lender, on a continuing basis, financial and other information pertaining to Borrower's financial condition, the Property and Borrower's activities relating thereto, and the status of Borrower's performance of obligations under the Loan Documents, and Guarantor agrees to keep adequately informed from such means of any facts, events or circumstances which might in any way affect Guarantor's risks hereunder and Lender has not made any representation to Guarantor as to any such matters; (d) the most recent financial statements of Guarantor previously delivered to Lender are true and correct in all respects, have been prepared in accordance with GAAP or in accordance with other methods acceptable to Lender in its reasonable discretion (consistently applied) and fairly present the financial condition of Guarantor in all material respects as of the respective dates thereof, and no material adverse change has occurred in the financial condition of Guarantor since the respective dates thereof;
 (e)
 Guarantor has not and will not, without the prior written consent of Lender, sell, lease, assign, encumber, hypothecate, transfer or otherwise dispose of all or substantially all of Guarantor's

  (e)

  

  

 
 
  assets, or any interest therein, other than in the ordinary course of Guarantor's business; and
 
 (f)
 Guarantor has not and will not cause or consent to any action or failure to act that would result in Borrower failing to be at all times a "single  purpose  entity"  as  described  in Section 3.1.24 of the Loan Agreement.
 

 11.
 So long as the Loan or any other obligation guaranteed hereby remains outstanding (other than, following the termination of the Loan Agreement and all other Loan Documents, contingent indemnification obligations as to which no claim has been made), Guarantor shall provide to Lender (i) within ninety (90) days after the end of each fiscal year, financial statements of Guarantor covering the corresponding period then ended including a balance sheet, income and expenses, cash flow and statement of change in financial position certified by Guarantor, together with a certificate of Guarantor that the Minimum Financial Criteria (defined below) continues to be satisfied as set forth in Section 23(j) hereof (including Guarantor's calculation of Guarantor's Net Worth and Liquidity), each of such statements and calculations delivered pursuant to this clause (i) shall be certified as being true and current by a duly authorized financial officer of Guarantor, (ii) within ten (10) days of Lender's written request, a complete copy of Guarantor's federal and (to the extent applicable) state income tax returns for the immediately preceding tax year, and (iii) such other information reasonably requested by Lender and reasonably available to Guarantor. Guarantor agrees that all financial statements to be delivered to Lender pursuant to this Section 11 shall: (i) be complete and correct in all material respects; (ii) present fairly the financial condition of Guarantor, if applicable;
 (iii)
 disclose all liabilities that are required to be reflected or reserved against; and (iv) be prepared (A) in hardcopy and electronic formats and (B) in accordance with GAAP or in accordance with other methods acceptable to Lender in its reasonable discretion (consistently applied). Guarantor shall be deemed to warrant and represent that, as of the date of delivery of any such financial statement, there has been no material adverse change in financial condition, nor have  any assets or properties been sold, transferred, assigned, mortgaged, pledged or encumbered (other than in the ordinary course of business and in accordance with the Loan Documents) since the date of such financial statement except as disclosed by Guarantor in a writing delivered to Lender. Guarantor agrees that all financial statements shall not contain any misrepresentation or omission of a material fact which would make such financial statements inaccurate, incomplete or otherwise misleading in any material respect.
 

 Furthermore, each legal entity and individual obligated on this Guaranty hereby authorizes Lender to order and obtain, from a credit reporting agency of Lender's choice, a third party credit report on such legal entity and individual.
 

 12.
 Guarantor further covenants that this Guaranty shall remain and continue in full force and effect as to any modification, extension or renewal of the  Note, the Security Instrument, or any of the Other Loan Documents, that Lender shall not be under a duty to protect, secure or insure any security or lien provided by the Security Instrument or other such collateral, and that other indulgences or forbearance may be granted under any or all of such documents, all of which may be made, done or suffered without notice tO, or further consent of, Guarantor.
 

 13.
 This is a guaranty of payment and not of collection and upon the Guaranteed Recourse Obligations of Borrower being incurred by Lender or upon any default of Borrower

  9.

  

  

 
 
  under the Note, the Loan Agreement, the Security Instrument or the Other Loan Documents, Lender may, at its option, proceed directly and at once, without notice, against Guarantor to collect and recover the full amount of the liability hereunder or any portion thereof, without proceeding against Borrower or any other person, or foreclosing upon, selling, or otherwise disposing of or collecting or applying against any of the mortgaged property or other collateral for the Loan. Guarantor hereby waives the pleading of any statute of limitations as a defense to the obligation hereunder.
 

 14.
 Each reference herein to Lender shall be deemed to include its successors and assigns, to whose favor the provisions of this Guaranty shall also inure. Each reference herein to Guarantor shall be deemed to include the heirs, executors, administrators, legal representatives, successors and assigns of Guarantor, all of whom shall be bound by the provisions of this Guaranty.
 

 15.
 If any party hereto shall be a partnership, the agreements and obligations on the part of Guarantor herein contained shall remain in force and application notwithstanding any changes in the individuals composing the partnership and the term "Guarantor" shall include any altered or successive partnerships but the predecessor partnerships and their partners shall not thereby be released from any obligations or liability hereunder.
 

 16.
 It is the intent of Guarantor and Lender that the obligations and liabilities of Guarantor hereunder are absolute and unconditional under any and all circumstances and that until the Loan is paid in full or the Guaranteed Recourse Obligations of Borrower are fully and finally paid and performed, and not subject to refund or disgorgement, the obligations and liabilities of Guarantor hereunder shall not be discharged or released, in whole or in part, by any act or occurrence that might, but for the provisions of this Guaranty, be deemed a legal or equitable discharge or release of a Guarantor. This Guaranty shall be deemed to be continuing in nature and shall remain in full force and effect and shall survive the exercise of any remedy by Lender under the Security Instrument or any of the other Loan Documents, including, without limitation, any foreclosure or deed in lieu of foreclosure.
 

 17.
 All understandings, representations and agreements heretofore had with respect to this Guaranty are merged into this Guaranty which alone fully and completely expresses the agreement of Guarantor and Lender.
 

 18.
 This Guaranty may be executed in one or more counterparts by some or all of the parties hereto, each of which counterparts shall be an original and all of which together shall constitute a single agreement of Guaranty. The failure of any party hereto to execute this Guaranty, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder.
 

 19.
 This Guaranty may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure to act on the part of Lender or Borrower, but only by an agreement in writing signed by the party against whom enforcement of any modification, amendment, waiver, extension, change, discharge or termination is sought.
 

 20.
 In  the  event  that  pursuant  to  any  insolvency,  bankruptcy,
 reorganization,

  9.

  

  

 
 
  receivership or other debtor relief law or any judgment, order or decision thereunder, Lender must rescind or restore any payment or any part thereof received by Lender in satisfaction of the Guaranteed Recourse Obligations of Borrower, as set forth herein, any prior release or discharge from the terms of this Guaranty given to Guarantor by Lender shall be without effect and this Guaranty shall remain in full force and effect. It is the intention of Borrower and Guarantor that Guarantor's obligations hereunder shall not be discharged except (i) upon payment in full of the Loan or (ii) by Guarantor's performance of such obligations and then only to the extent of such performance.
 

 21.
 This Guaranty shall be deemed to be a contract entered into pursuant to the laws of the State of New York and shall in all respects be governed, construed, applied and enforced in accordance with applicable federal law and the laws of the State of New York, without reference or giving effect to any choice of law doctrine.
 

 22.
 As a further inducement to Lender to consent to the Transfer and the Assumption and in consideration thereof, Guarantor further covenants and agrees (a) that in any action or proceeding brought by Lender against Guarantor on this Guaranty, Guarantor shall and does hereby waive trial by jury, (b) Guarantor will maintain a place of business or an agent for service of process in New York and give prompt notice to Lender of the address of such place of business and of the name and address of any new agent appointed by it, as appropriate, (c) the failure of Guarantor's agent for service of process to give it notice of any service of process will not impair or affect the validity of such service or of any judgment based thereon, (d) if, despite the foregoing, there is for any reason no agent for service of process of Guarantor available to be served, and if Guarantor at that time has no place of business in the State of New York then Guarantor irrevocably consents to service of process by registered or certified mail, postage prepaid, to it at its address given in or pursuant to the first paragraph hereof, Guarantor hereby waiving personal service thereof, (e) that within thirty days after such mailing, Guarantor so served shall appear or answer to any summons and complaint or other process and should Guarantor so served fail to appear or answer within said thirty-day period, said Guarantor shall be deemed in default and judgment may be entered by Lender against the said party for the amount as demanded in any summons and complaint or other process so served, (f) Guarantor initially and irrevocably designates CT Corporation System, with offices on the date hereof at 111 Eighth Avenue, New York, New York 10011, to receive for and on behalf of Guarantor service of process in the State of New York with respect to this Guaranty, (g) with respect to any claim or action arising hereunder, Guarantor (i) irrevocably submits to the nonexclusive jurisdiction of the courts of the State where the Property is located and the United States District Court located in the county in which the Property is located, and appellate courts from any thereof, and (ii) irrevocably waives any objection which it may have at any time to the laying on venue of any suit, action or proceeding arising out of or relating to this Guaranty brought in any such court, irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum, and (h) nothing in this Guaranty will be deemed to preclude Lender from bringing an action or proceeding with respect hereto in any other jurisdiction.

  9.

  

  

 
 
   

 23.
 Guarantor  (and  its  representative,   executing  below,  if  any)  hereby  warrants, represents and covenants to Lender that:
 

 (a)
 Guarantor is duly organized and existing and in good standing under the laws of the state in which such entity is organized. Guarantor is currently qualified or licensed (as applicable) and shall remain qualified or licensed  to do business in each jurisdiction in which the nature of its business requires it to be so qualified or licensed.
 

 (b)
 The execution and delivery of the Guaranty has been duly authorized and the Loan Documents constitute valid and binding obligations of Guarantor or the party which executed the same, enforceable in accordance with their respective terms, except as such enforcement may be limited by bankruptcy, insolvency, moratorium or other laws affecting the enforcement of creditors' rights, or by the application of rules of equity.
 

 (c)
 The execution, delivery and performance by Guarantor of  each  of  the Loan Documents do not violate any provision of any law or regulation, or result in any breach or default under any contract, obligation, indenture or other instrument to which Guarantor is a party or by which Guarantor is bound.
 

 (d)
 There are no pending or, to Guarantor's knowledge, threatened actions, claims, investigations, suits or proceedings before any governmental authority, court or administrative agency which affect the financial condition or operations of Guarantor, Borrower, and/or the Property.
 

 (e)
 The financial statements of Guarantor previously delivered by Guarantor to Lender: (i) are complete and correct, (ii) present fairly the financial condition of such party as of the date thereof  and (iii) have been prepared in accordance with GAAP or such other accounting standards reasonably approved by Lender. Since the date of such financial statements, there has been no material adverse change in such financial condition, nor have any material assets or properties reflected on such financial statements been sold, transferred, assigned, mortgaged, pledged or encumbered, except as previously disclosed in writing by Guarantor to Lender and approved in  writing  by Lender.
 

 (f)
 There are no pending assessments or adjustments of Guarantor's income tax payable with respect to any year.
 

 (g)
 None of the transactions contemplated by the Loan Documents will be or have been made with an actual intent to hinder, delay or defraud any present or future creditors of Borrower or Guarantor, and Borrower and Guarantor, on the date hereof, will have received fair and reasonably equivalent value in good faith for the continued grant of the liens or security interests effected by the Loan Documents. As of the date hereof, Borrower and Guarantor are: (i) solvent and will not be rendered insolvent by the transactions contemplated by the Loan Documents, and (ii) able to pay their respective debts as they become due.
 

 (h)
 As of the date hereof, the representations and warranties set forth in Sections   3.1.8,  3.1.25,  3.1.26,  3.1.28,  3.1.31,  3.1.33,  3.1.41,  and  3.1.42  of  the  Loan

  (a)

  

  

 
 
  Agreement are true and correct with respect to Guarantor, it being understood that whenever the term "Borrower" is used in each of the foregoing sections  it  shall  be deemed to mean "Guarantor."
 

 (i)
 Guarantor shall promptly notify Lender in wntmg of  any  litigation pending or threatened against Guarantor claiming damages in excess of Fifty Thousand and N oll 00 Dollars ($50,000.00) and of all pending or threatened litigation against Guarantor if the aggregate damage claims against Guarantor exceed One Hundred Thousand and N oll 00 Dollars ($100,000.00). Guarantor shall keep and maintain or will cause to be kept and maintained proper and accurate books and records reflecting the financial affairs of Guarantor. Lender shall have the right from  time  to  time  during normal business hours upon reasonable notice to Guarantor to examine such books and records at the office of Guarantor  or other Person maintaining such books and records and to make such copies or extracts thereof as Lender shall desire.
 

 (j)
 So long as the Loan and any of the obligations set forth in the Loan Documents remain outstanding, Guarantor shall maintain (i) a minimum Net Worth (as defined herein) of not less than fifty percent (50%) of the Net Worth of Guarantor as of
 the date hereof, and (ii) Liquidity (as defined herein) of no less than fifty percent (50%) of  the  Liquidity  of  Guarantor  as  of  the  date  hereof  (the  above  items,  ill and  .ill,
 collectively, the "Minimum Financial   Criteria"). As used herein:
 "Net  W01ih" shall mean net worth as calculated  in accordance with generally accepted accounting principles (or other principles acceptable to Lender).
 

 "Liquidity" shall mean (a) unencumbered  Cash and Cash Equivalents of Guarantor and
 (b) marketable securities of Guarantor, each valued in accordance with generally accepted accounting principles (or other principles acceptable to Lender).
 

 "Cash and  Cash  Eq uivalents" shall mean all unrestricted  or unencumbered  (A) cash and
 (B) any of the following: (x) marketable direct obligations issued or unconditionally guaranteed by the United States Government or issued by an agency thereof and backed by the full faith and credit of the United States; (y) marketable direct obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof which, at the time of acquisition, has one of the two highest ratings obtainable from any two (2) of Standard & Poor's Corporation, Moody's Investors  Service, Inc. or Fitch Investors (or, if at any time no two of the foregoing shall be rating such obligations, then from such other nationally recognized rating services as may be acceptable to Lender) and is not  listed  for possible down-grade in any publication of any of the foregoing rating services; (z) domestic certificates of deposit or domestic time deposits or repurchase agreements issued by any commercial bank organized under the laws of the United States of America or any state thereof or   the   District   of   Columbia   having   combined   capital   and   surplus   of   not   less   than
 $1,000,000,000.00, which commercial bank has a rating of at least either AA or such comparable rating from Standard & Poor's Corporation  or  Moody's  Investors  Service,  Inc.,  respectively; (aa) any funds deposited or invested by Guarantor in accounts maintained with Lender and which

  

 

 
 are not held in escrow for, or pledged as security for, any obligations of Guarantor, Borrower and/or any of their affiliates; (bb) money market funds having assets under management in excess of $2,000,000,000.00 and/or (cc) any unrestricted stock,  shares, certificates, bonds, debentures, notes or other instrument which constitutes a "security" under the Security Act of 1933 (other than Guarantor, Borrower and/or any of their affiliates) which are freely tradable on any nationally recognized securities exchange and are not otherwise encumbered by Guarantor.
 

 24.
 Replacement Guarantor. To the extent that any Guarantor is a natural person, the death or incompetency of such Guarantor shall be an Event of Default hereunder unless such Guarantor is replaced in accordance with this Section. Borrower shall be permitted to substitute a replacement guarantor and no "Event of Default" shall be deemed to have occurred hereunder, provided that (a) no other Event of Default hereunder or under any of the other Loan Documents has occurred and is then continuing; and (b) each of the following terms and conditions are satisfied (i) within five (5) days after the occurrence of such death or incompetency, Borrower delivers Lender written notice of its intent to substitute the guarantor, (ii) the replacement guarantor is a Satisfactory Replacement Guarantor (as defined below), (iii) within fifteen (15) days after delivery of the written notice described in the preceding subclause (i), such Satisfactory Replacement Guarantor assumes the obligations of Guarantor hereunder and under the Other Loan Documents in a manner satisfying the Prudent Lender Standard (defined below),
 
 (iv)
 concurrently with such assumption, (A) such Satisfactory Replacement Guarantor delivers to Lender a Spousal Consent (as defined below), as and to the extent applicable, and (B) each of Borrower and such Satisfactory Replacement Guarantor affirms each of their respective obligations under the Loan Documents in a manner satisfying the Prudent Lender Standard, and
 (v)
 prior to or concurrently with such assumption, as applicable, Lender receives such information, documentation and opinions as may be required by Lender in connection with such assumption and the foregoing in order to satisfy the Prudent Lender Standard (including, without limitation, opinions relating to REMIC); and (C) such substitution is permitted by then applicable REMIC Requirements. As used herein, the term "Satisfactory Replacement Guarantor" shall mean a replacement guarantor that ( 1) satisfies the Minimum Financial Criteria,
 (2)
 is acceptable to Lender and the Rating Agencies, (3) satisfies the Prudent Lender Standard, and (4) is an Affiliate of Sponsor. As used herein the term "Prudent Lender Standard" shall, with respect to any matter, be deemed to have been met if the matter in question (i) prior to a Securitization, is reasonably acceptable to Lender and (ii) after a Securitization, would be acceptable to a prudent lender of securitized commercial mortgage loans.
 

 25.
 Change in Residency. To the extent that any Guarantor is a natural person, such Guarantor hereby represents and warrants that such Guarantor shall not change Guarantor's State of residence and/or primary domicile to a State that is a community property jurisdiction unless
 (i)
 Guarantor first (A) provides Lender at least ten (10) Business Days prior written notice thereof, and (B) if Guarantor is married at the time, causes Guarantor's spouse to execute and deliver to Lender a spousal consent with respect to this Guaranty (which spousal consent shall be in form and substance satisfactory to Lender) (a "Spousal Consent"), and (ii) if Guarantor is not married at the time and subsequently marries, or if Guarantor enters into a new marriage, at any time when Guarantor is a resident (and/or has a primary domicile) in a community property jurisdiction, Guarantor causes his spouse to execute and deliver to Lender a Spousal Consent within ten ( 10) days after the occurrence of any such marriage. Such Guarantor's failure to comply with any of the foregoing shall, at Lender's option, constitute an "Event of Default"
 (i)

  

  

 
 
  hereunder and under the Loan Agreement.
 

 [NO FURTHER TEXT ON THIS PAGE]

  IN WITNESS  WHEREOF,  Guarantor  has duly executed  this  Guaranty  as of the day and year first above written.
 

 GUARANTOR:
 

 HARTMAN SHORT TERM INCOME PROPERTIES XX, INC., a Maryland
 corporation
 

 

 By: Name:
 Title:

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