Document:

Exhibit 10.2

 

INSTRUMENT PREPARED BY:

Bryan L. Larson, Esq.

Fulbright & Jaworski L.L.P.

2200 Ross Avenue, Suite 2800

Dallas, Texas 75201

 

 

FIRST AMENDMENT TO

AMENDED AND RESTATED DEED OF TRUST, SECURITY AGREEMENT,

FINANCING STATEMENT AND ASSIGNMENT OF RENTAL

Dallas, Dallas County, Texas

 

	
  STATE OF
  TEXAS

  	
   

  	
  §

  	
   

  	
   

  
	
   

  	
   

  	
  §

  	
   

  	
  KNOW ALL
  PERSONS BY THESE PRESENTS:

  
	
  COUNTY OF
  DALLAS

  	
   

  	
  §

  	
   

  	
   

  

 

This amendment (“Amendment”)
is executed to be effective as of the        day
of September, 2008 by BEHRINGER HARVARD MOCKINGBIRD COMMONS LLC, a Delaware limited
liability company (successor in interest by merger to Behringer Harvard
Mockingbird Commons, LP, a Texas limited partnership), whose address is 15601
Dallas Parkway, Suite 600, Addison, Texas 75001 (“Grantor”) and CREDIT
UNION LIQUIDITY SERVICES, LLC, a Texas limited liability company f/k/a Texans
Commercial Capital, LLC (“Lender”). 
All capitalized terms used herein and not otherwise defined shall have
the meanings ascribed to them pursuant to the Deed of Trust (as hereinafter defined).

 

RECITALS

 

A.            Grantor and Lender
entered into that certain Construction Loan Agreement dated as of September 30,
2005 (the “Loan Agreement”), pursuant to which Lender loaned to Grantor
up to the principal sum of $34,047,458.00 (the “Loan”) as further
evidenced by one certain promissory note dated as of September 30, 2005 (the
“Note”) in the original principal amount of $34,047,458.00 executed by Grantor
and payable to the order of Lender.

 

B.            As security for the
obligations of Grantor under the Loan Agreement and the Note, Grantor executed
and delivered to Lender, among other things, (i) that certain Amended and
Restated Deed of Trust, Security Agreement, Financing Statement, and Assignment
of Rental, dated September 30, 2005, executed by Grantor to Joel B. Fox
and/or John C. O’Shea, as trustee for the benefit of Lender, covering the
property described therein and recorded October 4, 2005 as Instrument No. 200503532798,
Official Records of Dallas County, Texas (the “Deed of Trust”) and (ii) that
certain Absolute Assignment of Leases and Rents from Grantor to Lender, dated September 30,
2005, covering the property described therein and recorded as Instrument No. 200503532799,
Official Records of Dallas County, Texas (the “Assignment”).

 

C.            Grantor
and Lender have agreed to amend the Deed of Trust as hereinafter set forth.

 

1

 

NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor
and Lender hereby agrees as follows:

 

AGREEMENT

 

1.             Release
Price.  Effective as of the date
first above written, the definition of “Release Price” in Section 6.1 of
the Deed of Trust is hereby amended and restated in its entirety to read as
follows:

 

“Release
Price” means (i) for a Residence that is a Potential Leased Unit (as
defined in the First Amendment to Note and Construction Loan Agreement by and
between Grantor and Lender), the amount equal to $225 per gross square foot,
and (ii) for any other Residence, the amount equal to one hundred percent
(100%) of the Net Sales Proceeds but in no event less than $250 per gross
square foot.

 

2.             Release
Conditions.  Effective as of the date
first above written, Section 6.2 of the Deed of Trust is hereby amended
and restated in its entirety to read as follows:

 

Section 6.2.            Release Conditions.  Notwithstanding anything to the contrary
contained in this Deed of Trust or any of the other Loan Documents, so long as
no Event of Default or Potential Default has occurred and is continuing, then Grantor
shall, upon a Permitted Sale of a Residence, be entitled to obtain a partial
release of said Residence from the lien of this Deed of Trust upon satisfaction
of the following terms and conditions:

 

(a)           Grantor shall pay to
Beneficiary, in cash, the Release Price for the Residence.  The Release Price shall be applied by
Beneficiary as a prepayment of the Secured Indebtedness.

 

(b)           Grantor shall deliver
to Beneficiary a partial release of lien in form and content satisfactory to
Beneficiary.

 

(c)           Grantor shall pay all
expenses of Beneficiary arising in connection with the release of such
Residence including, without limitation, all reasonable attorneys’ fees
incurred by Beneficiary and the expense, if any, to Beneficiary of inspecting
the Residence prior to release.

 

3.             Future
Development Area Unit.  Effective as
of the date first above written, the following new Section 6.3 is hereby
added to the Deed of Trust:

 

Section 6.3.            Release Price for
Future Development Area Unit.  Notwithstanding
anything to the contrary contained in this Deed of Trust or any of the other
Loan Documents, so long as no Event of Default or Potential Default has occurred
and is continuing, then Grantor shall be entitled to obtain a partial 

 

2

 

release of the Future Development Area Unit from
the lien of this Deed of Trust upon satisfaction of the following terms and
conditions:

 

(a)           Grantor shall pay to
Beneficiary, in cash, as the release price for the Future Development Area
Unit, the greater of (i) one hundred percent (100%) of the net sales
proceeds from the sale of the Future Development Area Unit (the net sales price
being the gross sales price minus ordinary and actual closing costs incurred by
Grantor, as seller, which costs shall not exceed the normal costs associated
with similar sales in the area in which the Future Development Area Unit is
located), and (ii) the sum of Three Million Twenty Thousand Dollars
($3,020,000.00).  Such release price
shall be applied by Beneficiary as a prepayment of the Secured Indebtedness.

 

(b)           Grantor shall deliver
to Beneficiary for execution by Beneficiary a partial release of lien in form
and content satisfactory to Beneficiary.

 

(c)           Grantor shall pay all
expenses of Beneficiary arising in connection with the release of the Future
Development Area Unit including, without limitation, all reasonable attorneys’
fees incurred by Beneficiary.

 

4.             Automatic
Recalculation of Minimum Release Price. 
Effective as of the date first above written, the following new Section 6.4
is hereby added to the Deed of Trust:

 

Section 6.4.            Automatic
Recalculation of Minimum Release Price. 
Notwithstanding anything to the contrary contained in this Deed of Trust
or any of the other Loan Documents, in the event that Beneficiary executes a
partial release of lien with respect to the Future Development Area Unit
pursuant to the terms and conditions of Section 6.3, then the dollar
figure in clause (ii) of the definition of “Release Price” in Section 6.1
shall be changed to an amount determined through the following calculation:  First, take the outstanding principal balance
of the Loan immediately before application of the release price for the Future
Development Area Unit and subtract the release price paid to Lender pursuant to
Section 6.3(a) above.  Second,
multiply that result by 125%.  Last,
divide that result by the number of gross square feet of Residences still
subject to the lien of this Deed of Trust. 
Grantor and Beneficiary agree to promptly agree in writing on the new
dollar figure.

 

5.             Miscellaneous.

 

(a)           Except as modified
herein, the Deed of Trust and other loan documents executed in connection with
the Deed of Trust (the “Loan Documents”) remain in full force and effect
without modification thereto and are hereby ratified, renewed and affirmed.

 

(b)           This Amendment shall
not constitute a novation or have the effect of discharging any liability or
obligation evidenced by the Deed of Trust or the other Loan Documents.

 

3

 

(c)           The invalidity,
illegality or unenforceability of any provision of this Amendment shall not
affect or impair the validity, legality or enforceability of the remainder of
this Amendment, and to this end, the provisions of this Amendment are declared
to be severable.

 

(d)           This Amendment may be
executed in any number of counterparts which, when taken together, shall
constitute one and the same agreement.

 

[Signature
Pages Follow]

 

4

 

IN WITNESS
WHEREOF, this Amendment is executed by Grantor on the date set forth below in
the acknowledgment to be effective as of the date first written above.

 

	
   

  	
  GRANTOR:

  
	
   

  	
   

  
	
   

  	
  BEHRINGER HARVARD MOCKINGBIRD COMMONS

  
	
   

  	
  LLC, a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Behringer
  Harvard Mockingbird Commons GP, LLC,

  
	
   

  	
   

  	
  a Texas
  limited liability company,

  
	
   

  	
   

  	
  its manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Gerald J.
  Reihsen, III

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

	
  STATE OF TEXAS

  	
  §

  
	
   

  	
  §

  
	
  COUNTY OF DALLAS

  	
  §

  

 

This instrument was acknowledged before me on this       
day of September, 2008, by Gerald J. Reihsen, III, as Secretary of
Behringer Harvard Mockingbird Commons GP, LLC, a Texas limited liability
company, in its capacity as the manager of Behringer Harvard Mockingbird
Commons LLC, a Delaware limited liability company, on behalf of said manager
acting on behalf of said limited liability company.

 

 

	
   

  	
   

  
	
   

  	
  Notary
  Public in and for the State of Texas

  

 

 

(SEAL)

 

5

 

IN WITNESS
WHEREOF, this Amendment is executed by Lender on the date set forth below in
the acknowledgment to be effective as of the date first written above.

 

 

	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CREDIT UNION LIQUIDITY SERVICES,

  
	
   

  	
  LLC, a Texas limited liability company

  
	
   

  	
  f/k/a TEXANS
  COMMERCIAL CAPITAL, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

	
  STATE OF TEXAS

  	
  §

  
	
   

  	
  §

  
	
  COUNTY OF DALLAS

  	
  §

  

 

This instrument was acknowledged before me on this       
day of September, 2008, by                      ,
                   
of Credit Union Liquidity Services, LLC, a Texas limited liability company
f/k/a Texans Commercial Capital, LLC, on behalf of said limited liability
company.

 

 

	
   

  	
   

  
	
   

  	
  Notary
  Public in and for the State of Texas

  

 

 

(SEAL)

 

6Exhibit 10.3

 

FIRST MODIFICATION
AGREEMENT

 

THIS FIRST MODIFICATION
AGREEMENT (this “Agreement”) is
entered into as of this        day of September,  2008 (the “Effective Date”), by and between Credit Union Liquidity
Services, LLC, a Texas limited liability company (formerly known as Texans
Commercial Capital, LLC, a Texas limited liability company) (“Lender”), and Behringer Harvard Mountain
Village, LLC (“Borrower”), a Colorado
limited liability company.  Behringer
Harvard Short-Term Opportunity Fund I LP, a Texas limited partnership (“Guarantor”), as a guarantor, executes this
Agreement to evidence its consent to and agreement with the terms and
provisions contained herein.

 

Recitals

 

A.            On
September 29, 2006, Borrower, as maker, executed that certain Note (the “Note”), payable to Lender, as payee, in the
original principal amount of Thirty-one Million Six Hundred Fifty Thousand and No/100
Dollars ($31,650,000).  The Note
evidences a loan (the “Loan”) made
by Lender to Borrower.  Certain terms and
provisions of the Loan are set forth in that certain Construction Loan
Agreement (the “Loan Agreement”),
dated as of September 29, 2006, by and between Borrower and Lender.

 

B.            Payment
of the Note and the outstanding indebtedness evidenced by the Note are secured
by, among other things, the liens, security interests, terms and provisions
granted by that certain Deed of Trust, Security Agreement, Financing Statement,
and Assignment of Rental, dated as of September 29, 2006, executed and
delivered by Borrower, as grantor, unto the Public Trustee of San Miguel
County, Colorado, as trustee, for the benefit of Lender, as beneficiary,
recorded October 12, 2006 as Instrument No. 387559, in the real property
records in San Miguel County, Colorado (the “Deed
of Trust”) covering that certain property described in Exhibit A,
attached hereto and incorporated herein for all purposes, together with all
improvements, appurtenances, other properties (whether real or personal),
rights and interests described in and encumbered by the Deed of Trust (the “Mortgaged Property”).

 

C.            Payment
of the Note and the outstanding indebtedness evidenced by the Note are further
secured by, among other things, the terms and provisions contained by that
certain Guaranty Agreement, dated September 29, 2006, executed by Guarantor,
as guarantor, for the benefit of Lender.

 

D.            Lender
is currently the owner and holder of the right to receive payments due under
the Note and the outstanding indebtedness evidenced by the Note, and the owner
of the liens, security interests, terms, and provisions granted by the Deed of
Trust.

 

E.             Lender
and Borrower now propose to modify certain terms and provisions of the Loan
Documents (as hereinafter defined).  This
Agreement, the Loan Agreement, the Deed of Trust, and any and all other
documents executed in connection therewith, or relating in any way thereto,
each as amended or modified from time to time, are referred to hereinafter
either individually or collectively as the “Loan
Documents.”

 

 

NOW,
THEREFORE, for and in consideration of the premises and the mutual covenants
and agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Lender and
Borrower hereby agree as follows:

 

Agreements

 

1.             Defined Terms.  All capitalized terms in this Agreement which
are not otherwise defined herein shall have the meaning ascribed to such terms
in the Loan Agreement.

 

2.             Continuing
Validity.  All of the Loan
Documents (including, without limitation, the Note), as modified hereby,
continue to be in full force and effect. 
All monies due and payable under the Note shall continue to be due and
payable in accordance with the terms of the Note, as modified hereby.  Nothing herein contained shall affect or
impair the validity or priority of the lien and security interests granted by
the Deed of Trust or under any of the other Loan Documents.

 

3.             Confirmation of Loan
Balances.  Borrower hereby
acknowledges, agrees, and represents that:

 

(a)           as of the Effective Date, the outstanding
principal balance of the Loan after giving effect to the last payment made is Six
Million Nine Hundred Ninety-six Thousand Five Hundred Fifty-eight and 03/100 Dollars
($6,996,558.03);

 

(b)           due to the revised definition of “Loan
Amount” set forth in Section 8(d), under no circumstances shall Lender be
obligated to make additional Advances on or after the Effective Date totaling
more than Twenty Million Six Hundred Fifty-three Thousand Four Hundred
Forty-one and 97/100 Dollars ($20,653,441.97);

 

(c)           as of the Effective Date, the total amount
spent by Borrower (including Loan proceeds) to complete construction of the
Improvements and perform all other matters contemplated by the Plans and the
Approved Budget is Sixteen Million Eight Hundred Fifteen Thousand Eight Hundred
Thirty-one and 99/100 Dollars ($16,815,831.99) (“Amount Spent”); and

 

(d)           as of the Effective Date, Two Million Five
Hundred Fifty-five Eighty and No/100 Dollars ($2,555,080) remains in the
Interest Reserve.

 

4.             Further Advances.

 

(a)           As a condition precedent to each Advance
(including an Advance from the Interest Reserve) subsequent to the Effective
Date, and in addition to the conditions set forth in Section 2.12 of the
Loan Agreement and elsewhere in the Loan Documents, Borrower shall satisfy the
following conditions:

 

(i)            Borrower shall deliver to Lender satisfactory
evidence that Borrower has paid toward the construction of the Improvements and
performance of all other matters contemplated by the Plans and the Approved
Budget, exclusive of any Advances, the greater of (x) the sum of (i) Sixteen
Million and No/100 Dollars ($16,000,000), plus (ii) any Borrower’s 

 

2

 

Deposit required by Lender, and (y) forty percent (40%) of the total
cost (including the Amount Spent) required or anticipated to complete
construction of the Improvements and perform all other matters contemplated by the
Plans and the Approved Budget (such evidence to include, without limitation, all
relevant information and documentation that would otherwise be required to be
delivered to Lender pursuant to an Application for Advance had such Sixteen
Million and No/100 Dollars [$16,000,000] or forty percent [40%] been advanced
by Lender);

 

(ii)           Borrower shall have received all of the
Permits which (A) could possibly be obtained given the status of the
construction of the Improvements at the time such Advance is requested, and (B) are
necessary in order to accomplish the construction and other matters for which
such Advance has been requested (collectively, and as they may change from time
to time, the “Required Entitlements”).  The term “Permits”
as used herein shall mean all zoning, utility, building, health, and other
necessary or Advisable permits, licenses, and similar approvals from each
Governmental Authority or other Person having jurisdiction over (x) all or
part of the Property, (y) the construction of the Improvements, or (z) the
sale (or pre-sale) of Units in order for Borrower to complete the construction
of the Improvements in accordance with the Plans and sell (or pre-sell) the
Units, all in strict accordance with all applicable Governmental
Requirements.  The term “Advisable” as used herein regarding Permits
shall mean those Permits which a prudent real estate developer and owner, with
the goal of maximizing the value of the Property, would deem appropriate to
obtain in connection with the Property, the Plans, and the construction of the
Improvements; and

 

(iii)          Both (x) the most recent statement(s) delivered
to Lender pursuant to Section 3 of that certain First Amendment to
Guaranty executed by Guarantor and Lender and dated as of the Effective Date (“Guaranty Amendment”) shall evidence
Guarantor’s compliance with the Liquidity Requirement (as that term is defined
in the Guaranty Amendment) as of the date thereof, and (y) if requested by
Lender, Borrower shall have delivered to Lender evidence that Guarantor
complies with the Liquidity Requirement (as that term is defined in the
Guaranty Amendment) as of the date of such request.

 

(b)           As a condition precedent to the first
Advance made on or subsequent to the Effective Date (including the first
Advance from the Interest Reserve made on or subsequent to the Effective Date),
and in addition to the conditions to Advances set forth in Section 4(a),
in Section 2.12 of the Loan Agreement, and elsewhere in the Loan
Documents, Borrower shall satisfy the following conditions:

 

(i)            No later than October 1, 2008,
Borrower shall have received all of the Required Entitlements corresponding to
the construction and other matters for which Borrower has requested such
Advance, including, without limitation, all of the Permits necessary to
commence vertical construction of the Improvements;

 

(ii)           Borrower shall have delivered to Lender a
letter from Architect dated after Borrower’s request for such first Advance in
the form of Exhibit B attached hereto and incorporated herein by
this reference, with respect to the Required Entitlements corresponding to the
construction and other matters for which Borrower has requested such Advance;
and

 

3

 

(iii)          Borrower shall have delivered to Lender a fully-executed
Consent by Amicus Interests to that certain Assignment of Plans and
Specifications executed by Borrower in favor of Lender as of the Effective Date,
and

 

(iv)          Borrower shall have submitted to Lender the
Final Approved Budget and the Revised Plans (as those terms are defined in Section 7),
in form and substance reasonably satisfactory to Lender no later than October 1,
2008.

 

5.             Amendments
Regarding Maturity.

 

(a)           The
definition of “Maturity Date” in Section 2 of the Note is hereby amended
to delete “October 1, 2009” and replace it with “October 1, 2011.”

 

(b)           Section 2 of the Note is hereby amended
to add the following definitions:

 

“‘Cumulative
Principal Reduction Payment’ means a prepayment of principal of the Loan in
the amount of (x) Ten Million and No/100 Dollars ($10,000,000), minus (y) the
aggregate amount of all principal prepayments of the Loan previously made by
Borrower (including, without limitation, payments in the amount of each Release
Price [as that term is defined in the Mortgage]).”

 

“‘Principal
Reduction Payment Date’ means each of January 4, 2012, April 1,
2012, July 1, 2012, and October 1, 2012.”

 

“‘Loan
Obligation’ means, as of October 1, 2011, the difference of (i) the
sum of (x) the outstanding principal balance of the Loan, plus (y) any
unadvanced portion of the Interest Reserve, minus (ii) the amount of the Cumulative
Principal Reduction Payment.”

 

(c)           Section 4(a)(ii) of the Note is
hereby deleted in its entirety and replaced with the following:

 

“In the event
the Maturity Date is extended pursuant to Section 4(b) of this Note,
payment on each Principal Reduction Payment Date of principal in an amount
equal to one-fourth (1⁄4) of the principal balance of this Note outstanding
immediately after the Cumulative Principal Reduction Payment required by Section 4(b) of
this Note to extend the Maturity Date.”

 

(d)           Section 4(b) of the Note is hereby
deleted in its entirety and replaced with the following:

 

“Notwithstanding
anything to the contrary contained herein, so long as no Event of Default or
Potential Default has occurred and is continuing, Lender shall extend the
maturity date of this Note for one year, to October 1, 2012, upon receipt of
the following no less than thirty (30) days prior to the Maturity Date: (i) Borrower’s
written request, (ii) a loan extension fee 

 

4

 

equal to the
product of (x) one-half percent (0.5%) times (y) the then-outstanding
principal balance of this Note (calculated as if the Cumulative Principal
Reduction Payment had already been made), (iii) evidence in form
satisfactory to Lender that the Loan Obligation is equal to or less than sixty
percent (60%) of the aggregate value of the Property as determined by a current
Appraisal prepared by Lender’s choice of (w) CB Richard Ellis, (x) Integra
Realty Resources, Inc., (y) Cushman & Wakefield Inc., or (z) any
other nationally recognized appraisal firm, and (iv) the Cumulative Principal
Reduction Payment.”

 

(e)           Section 2.07(b) of the Loan
Agreement is hereby deleted in its entirety.

 

6.             Price Schedule.  The price schedule attached to and
constituting Exhibit J to the Loan Agreement is hereby deleted in its
entirety and replaced with the price schedule set forth on Exhibit C
attached hereto and incorporated herein by this reference.

 

7.             Final Approved
Budget and Revised Plans.

 

(a)           The Approved Budget previously prepared by
Borrower and approved by Lender is hereby replaced in its entirety with the
Approved Budget attached hereto as Exhibit D and incorporated
herein by this reference.  Borrower shall
not cause or permit any changes to be made to the Approved Budget without
Lender’s prior written consent.  Lender
and Borrower acknowledge that Borrower anticipates the need to further revise the
Approved Budget (“Final Approved Budget”)
in a form and substance mutually acceptable to Lender and Borrower.  In the event Lender does approve the Final
Approved Budget, such budget shall become the “Approved Budget,” as that term
is used in the Loan Documents.

 

(b)           Lender and Borrower acknowledge that
Borrower anticipates the need to further revise the Plans (“Revised Plans”) and obtain Lender’s
approval thereof (which approval shall not be unreasonably withheld or delayed).  In the event Lender does approve the Revised
Plans, such plans shall become the “Plans,” as that term is used in the Loan
Documents.

 

8.             Amendment of
Certain Additional Definitions and Provisions.

 

(a)           The
definition of “Applicable Interest Rate” in Section 2 of the Note is
hereby deleted in its entirety and replaced with the following:

 

“‘Applicable
Interest Rate’ means the greater of (i) a floating per annum rate of
interest equal, on any day, and from day to day, to the sum of (x) the WSJ
Prime, and (y) one and one-half percent (1.50%); and (ii) a fixed per
annum rate of interest equal to six and one-half percent (6.50%).”

 

(b)           Section 1.01 of the Loan Agreement is
hereby amended to add the following definition:

 

“‘Appraised
Value’ means, at any given time, the value of the Property as determined by
an Appraisal performed at or about such time by an appraiser selected by Lender
and reasonably acceptable to Borrower (it 

 

5

 

being agreed
for the purposes of this definition that so long as no Event of Default or
Potential Default has occurred, (i) Borrower shall not have to pay for more
than one Appraisal per calendar year, unless Lender is required to obtain an
additional Appraisal in order to comply with applicable laws and/or
regulations, and (ii) Lender shall provide Borrower with a copy of each
such Appraisal).”

 

(c)           The definition of “Construction Commitment
Termination Date” in Section 1.01 of the Loan Agreement is hereby amended
in its entirety to be “December 1, 2010, subject to extension by the
number of days, not to exceed one hundred eighty (180) that construction of the
Improvements is delayed by fire, earthquake, flood, tornado, other acts of God
and natural disasters, strikes, labor disputes, war, civil strife or other
violence, all so long as Borrower acted with due diligence in the performance
of its obligations.”

 

(d)           The definitions of “Loan Amount” in Section 1.01
of the Loan Agreement and in Section 1 of the Note are both hereby amended
in their entirety to be “Twenty-seven Million Six Hundred Fifty Thousand and
No/100 Dollars ($27,650,000).

 

(e)           The definition of “Permitted Indebtedness” in
Section 1.01 of the Loan Agreement is hereby amended to remove the
reference to “$100,000.00” and replace it with “$300,000.00.”

 

(f)            As of the Effective Date, Section 3.01
of the Loan Agreement is hereby amended and restated in its entirety to read as
follows:

 

“Organization.

 

(a)           Borrower.  Borrower is a limited liability company duly
formed, validly existing and in good standing under the laws of the State of
Colorado, in accordance with the Organizational Documents of Borrower.  The business which Borrower carries on and
which it proposes to carry on may be conducted in limited liability company
form by Borrower.  Managing Member is the
sole managing member of Borrower and owns one hundred percent (100%) of the Class A
interests in Borrower.  Borrower is duly
authorized to conduct business in Texas and in each other jurisdiction, if any,
in which the nature of its properties, assets or activities require such
authorization.  Except as disclosed in
writing to Lender, neither Managing Member nor Behringer Harvard Short-Term
Opportunity Fund I LP have transferred, assigned, pledged or mortgaged its
interest in Borrower or any profits or proceeds therefrom.

 

(b)           Guarantors.  Behringer Harvard Short Term Opportunity Fund
I LP is a limited partnership duly formed, validly existing and in good
standing under the laws of the State of Texas in accordance with the
Organizational Documents of such Person. 
The business which any Guarantor carries on and which it proposes to carry
on may be conducted in limited partnership form by such Guarantor.  In addition, each Guarantor is duly
authorized to 

 

6

 

conduct business in Texas and in each other
jurisdiction in which the nature of its properties, assets or activities require
such authorization.”

 

(g)           As of the Effective Date, Section 3.13
of the Loan Agreement is hereby amended and restated in its entirety to read as
follows:

 

“Restrictions.
Neither of Borrower nor any Guarantor is a party to any contract or agreement,
or subject to any charter or other restriction, which materially and adversely
affects its business.  Borrower has not agreed
or consented to cause or permit in the future (upon the happening of a
contingency or otherwise) any of its assets, whether now owned or hereafter
acquired, to be subject to any Liens (other than the Permitted Liens).  Borrower has not agreed or consented to cause
or permit in the future (upon the happening of a contingency or otherwise) all
or any portion of its direct ownership interest in such Person, or any profits
or proceeds therefrom, to be subject to any Liens (other than Permitted Liens).”

 

(h)           As of the Effective Date, Section 3.17
of the Loan Agreement is hereby amended and restated in its entirety to read as
follows:

 

“Single
Purpose Entities; Nature of Borrower. 
Borrower is a single purpose limited liability company whose only
business is the operation of the Property and whose only asset is the Property
and other assets directly related to the operation of the Property.”

 

(i)            As of the Effective Date, the contact
information for the party to be copied with the giving of any notice to Lender,
as set forth in Section 9.01 of the Loan Agreement, is hereby deleted and shall
hereafter be as follows:

 

	
  with copy
  to:

  	
  Fulbright &
  Jaworski L.L.P.

  
	
   

  	
  2200 Ross
  Avenue, Suite 2800

  
	
   

  	
  Dallas,
  Texas 75201

  
	
   

  	
  Telephone:
  214-855-7445

  
	
   

  	
  Facsimile:
  214-855-8200

  
	
   

  	
  Attention:
  Scott A. Young, Esq.

  

 

9.             Acknowledgment by
Borrower and Guarantor.

 

(a)           Except as otherwise specified herein, the
terms and provisions hereof shall in no manner impair, limit, restrict, or
otherwise affect the obligations of Borrower or any third party to Lender, as
evidenced by the Loan Documents.  Borrower
and Guarantor hereby acknowledge, agree, and represent that:

 

(i)            To the best knowledge of Borrower, Borrower
is not in default under the Note, the Deed of Trust, or any other Loan
Documents after giving effect to the terms of this Agreement;

 

7

 

(ii)           Borrower has no defenses, counter-claims, or
offsets to the Note, Deed of Trust, or any other Loan Documents, as modified
herein;

 

(iii)          Borrower waives any and all defenses,
counter-claims, or offsets to the enforcement of the Note, Deed of Trust, or
any other Loan Documents, as modified, renewed, and extended herein, whether
known or unknown;

 

(iv)          The Note, Deed of Trust, and other Loan
Documents, as modified, renewed, and extended herein, are in full force and
effect.

 

(v)           Borrower and Guarantor have the power and
requisite authority to execute, deliver, and perform their obligations
hereunder and under the Loan Documents, and are duly authorized, and have taken
all necessary action to authorize such person or entity to execute, deliver and
perform this Agreement and the Loan Documents and will continue to be duly
authorized to perform their obligations under this Agreement and the Loan
Documents.

 

(vi)          The representations and warranties contained
in the Loan Documents are true and correct representations and warranties of
Borrower, Guarantor, and third parties making same, as the case may be, and are
hereby remade to Lender as of the Effective Date, subject to those matters set
forth on Exhibit E attached hereto and incorporated herein by this
reference;

 

(vii)         There are no Leases in existence with respect
to the Property or any portion thereof;

 

(viii)        As of the Effective Date, Borrower has paid
toward the construction of the Improvements and performance of all other
matters contemplated by the Plans and the Approved Budget, exclusive of any
Advances, no less than Nine Million Eight Hundred Nineteen Thousand Two Hundred
Seventy-three and 96/100 Dollars ($9,819,273.96);

 

(ix)           No Liens, whether choate or inchoate,
encumber the Property except Permitted Liens.

 

(x)            There is no Construction Contract other
than that certain Standard Form of Agreement Between Owner and Contractor
dated as of November 8, 2006 by and between Borrower and RJM Homes, L.P.;

 

(xi)           No Plans regarding the Improvements or the
Mortgaged Property have been prepared by any Person other than the vendors
listed on Exhibit F attached hereto and incorporated herein by this
reference; true and correct copies of all such Plans have been provided to
Lender;

 

(xii)          Borrower contracted with  Hunt & Joiner, San Juan, Given &
Associates, and Meeks Design Group to provide certain work and Plans with
regard to the Property; such work and Plans have been completed in their
entirety and paid for by Borrower, and said Plans are the sole property of
Borrower; and

 

(xiii)         All references to “Borrower” or “Maker” in the
Note (regardless of whether such terms are capitalized) are references to
Borrower.

 

8

 

(b)           To the extent Borrower has any claims,
offsets, defenses, or counterclaims against Lender or the repayment of all or a
portion of the Loan, whether known or unknown, fixed or contingent, the same
are hereby forever irrevocably waived and released in their entirety.

 

10.          Lender’s
Representations.

 

(a)           As
of the Amendment Effective Date, Borrower is not in default under Article VII(a) of
the Loan Agreement  and to
Lender’s current actual knowledge, Borrower is not in default under any other
provision in Article VII of the Loan Agreement.  As used in this section, the words “Lender’s
current actual knowledge” mean and refer to the current actual knowledge of Lender’s
sole portfolio manager with stewardship over the Loan as of the Effective Date, not in
his individual capacity but solely in his capacity as an officer of Lender,
limited to his current consciousness, without any due diligence, inquiry, or
investigation of any kind or duty of inquiry or investigation and not including
any constructive, imputed, or implied knowledge.

 

(b)           Lender has the power and requisite authority
to execute, deliver, and perform its obligations hereunder and is duly
authorized, and has taken all necessary action to authorize the Person
executing this Agreement, to execute and deliver this Agreement.

 

11.          Financial Statements
and Reports.  In addition to the
Financial Statements required by Section 4.01 of the Loan Agreement (and
elsewhere in the Loan Documents), Borrower shall cause the following to be
delivered to Lender:

 

(a)           Within forty-five (45) days after the end of
each Quarterly Period, statements evidencing, in a manner reasonably
satisfactory to Lender, that Guarantor is in compliance with the Liquidity Requirement
(as that term is defined in the Guaranty Amendment);

 

(b)           Within twenty (20) days after the end of
each calendar month, a report detailing Borrower’s inventory of Units, the
asking price for such Units, and any Pre-Sale Contracts (or other sale
contracts) entered into or contemplated (including any sale prospects) within
such calendar month; and

 

(c)           Promptly upon Lender’s request, such other
books, records, statements, lists of property and accounts, budgets, forecasts,
or reports as to Borrower and Guarantor, all as Lender may reasonably request
from time to time.

 

12.          Covenants Relating to
Securities Laws.  Borrower hereby
covenants with Lender to comply with all applicable securities laws with
respect to the Residential Condominium and other Property and the sale of the
Units.

 

13.          Title Insurance.  Contemporaneously with the execution and
delivery hereof, Borrower shall cause Republic Title of Texas, Inc. (the “Title Company”) to issue to Lender with
respect to the Title Insurance Policy, an ALTA 11 Modification Endorsement and
such other items of title insurance as Lender reasonably requires.

 

14.          Joinder of Guarantor.  Contemporaneously with the execution and
delivery hereof, Borrower shall cause Guarantor to execute and deliver to
Lender the Guaranty Amendment in the form of Exhibit G attached
hereto and incorporated herein by this reference.

 

9

 

15.          No Waiver of Remedies.  Except as may be expressly set forth herein,
nothing contained in this Agreement shall prejudice, act as, or be deemed to be
a waiver of any right or remedy available to Lender by reason of the occurrence
or existence of any fact, circumstance, or event constituting a default under
the Note or the other Loan Documents.

 

16.          Release.  Effective as of the Amendment Effective Date,
and in consideration for this Amendment and all documents executed herewith,
Borrower and Guarantor agree as follows:

 

(a)           For the time period existing on and prior to
the Effective Date and relating exclusively to the Loan Documents and the loan
memorialized therein, Borrower and Guarantor fully and finally release and
discharge Lender (and its officers, directors, shareholders, representatives,
employees, agents and attorneys) of and from any and all defaults, potential
defaults occurring on or prior to the Effective Date, claims, damages or causes
of action to, of or for the benefit (whether directly or indirectly) of,
Borrower or Guarantor, at law or in equity, known or unknown, contingent or
otherwise, whether asserted or unasserted, whether statutory, in contract or in
tort, as well as any other kind or character of action now held, owned or
possessed (whether directly or indirectly) by Borrower or Guarantor on account
of, arising out of, related to or concerning, whether directly or indirectly,
proximately or remotely, the Loan Documents and accruing prior to the Effective
Date (collectively, the “Released Claims”);

 

(b)           In addition to the release set forth above,
and not in limitation thereof, Borrower and Guarantor each agree that it or he
will never prosecute, or voluntarily (unless required by law) aid in the
prosecution of, any of the Released Claims, whether by claim, counterclaim or
otherwise.  Borrower and Guarantor agree
that compulsory counterclaims shall not be deemed to fall within the “unless
required by law” proviso in the foregoing sentence.

 

17.          Interest Limitation.  The terms and provisions of Section 9.15
of the Loan Agreement are incorporated herein by this reference.

 

18.          No Novation.  Borrower acknowledges and agrees that this Agreement
will not be considered a novation of account or a new contract but that all
rights, titles, powers, liens, security interests, and estates created by the
Deed of Trust securing the Note constitute valid and subsisting liens and
security interests against the Mortgaged Property.

 

19.          Costs and Expenses.

 

(a)           Contemporaneously with the execution and delivery
hereof, Borrower shall pay, or cause to be paid, Lender’s costs and expenses
incident to the preparation and execution hereof and the consummation of the
transaction contemplated hereby, including, but not limited to, recording fees,
title insurance policy or endorsement premiums or other charges of Title
Company, and reasonable fees and expenses of legal counsel to Lender.  To the extent not prohibited by applicable
law, Borrower will pay all costs and expenses and reimburse Lender for any and
all expenditures of every character incurred or expended from time to time
during the existence of any default hereunder or under the Loan Documents, in
connection with Lender’s evaluating, monitoring, administering, and protecting
the Property, and creating, perfecting, and realizing upon Lender’s security
interest in its liens upon the Property, and all costs and 

 

10

 

expenses, including, without limitation, all appraisal fees, consulting
fees, filing fees, taxes, brokerage fees and commissions, fees incident to any
security interest lien and other title searches and reports, escrow fees,
attorney’s fees, legal expenses, court costs, costs incurred in connection with
liquidation or sale of the Property, and all other professional fees incurred
in connection therewith.  Any amount to
be paid under this Section 19 by Borrower to Lender, to the extent not
prohibited by applicable law, shall bear interest from the date of demand at
the Maximum Rate.

 

(b)           As part of the obligations set forth in Section 19(a),
Borrower shall pay the following:

 

(i)            A fee (“Extension
Fee”) of One Hundred Fifty-four Thousand Nine Hundred and No/100
Dollars ($154,900), of which One Hundred Three Thousand Two Hundred Sixty-seven
and No/100 Dollars ($103,267) shall be paid simultaneously with the execution
of this Agreement, and the remainder shall be paid at the time of the first
Advance made after the Effective Date; and

 

(ii)           A fee (“Third
Party Report Fee”) of Twenty Thousand and No/100 Dollars ($20,000)
for third party reports required by Lender.

 

(c)           So long as no Event of Default is then
outstanding, any portion of the Third Party Report Fee which has not been
theretofore used by Lender to pay for third party reports required by Lender (e.g.,
Appraisals, inspections, etc.) by the time of the first Advance made after the
Effective Date, shall be applied toward the remaining portion of the Extension
Fee then due from Borrower to Lender.

 

(d)           The parties agree that none of the costs,
expenses, charges, or fees described in this Section 19 represent a charge
for the use, forbearance, or detention of money.

 

20.          Conditions Precedent.  It shall be a condition to the effectiveness
of this Agreement that, on or before the execution hereof by Lender, (a) no
Event of Default or Potential Default shall have occurred and be continuing, and
(b) Borrower shall have paid Lender the fees and expenses referred to in Section 19
above.

 

21.          Additional
Documentation.  From time to
time, Borrower shall execute or procure and deliver to Lender such other and
further documents and instruments evidencing, securing, or pertaining to the
Loan or the Loan Documents as shall be reasonably requested by Lender so as to
evidence or effect the terms and provisions hereof.  Simultaneously with the execution of this
Agreement, Borrower shall cause to be delivered to Lender an opinion of
counsel, satisfactory to Lender as to form, substance, and rendering attorney,
opining to (i) the validity and enforceability of this Agreement and the
terms and provisions hereof, and any other agreement executed in connection
with the transaction contemplated hereby, (ii) the authority of Borrower
and any constituents of Borrower, to execute, deliver and perform its or their
respective obligations under the Loan Documents, as hereby modified, and (iii) such
other matters as reasonably requested by Lender.

 

22.          Effectiveness of the Loan
Documents.  Except as expressly
modified by the terms and provisions hereof, each of the terms and provisions of
the Loan Documents are hereby 

 

11

 

ratified and shall remain in full force and effect; provided, however,
that any reference in any of the Loan Documents to the Loan, the terms of the
Loan, any defined terms, or to any of the other Loan Documents shall be deemed,
from and after the Effective Date, to refer to the Loan, the terms of the Loan,
defined terms, and to such other Loan Documents, as modified hereby.

 

23.          Governing Law.  THE TERMS AND PROVISIONS HEREOF SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS EXCEPT AS
OTHERWISE EXPRESSLY PROVIDED HEREIN.

 

24.          Waiver of Jury Trial.  Due to the complexity of the transaction
contemplated by the Loan Documents, Borrower hereby acknowledges and agrees
that a trial before a judge is more appropriate than a trial before a jury.  Borrower hereby waives the right to a trial
by jury in any suit involving the enforcement of the provisions of any of the Loan
Documents, and grants the judge presiding over any such suit full power and
authority to determine all questions of fact.

 

25.          Time.  Time is of the essence in the performance of
the covenants contained herein and in the Loan Documents.

 

26.          Binding Agreement.  This Agreement shall be binding upon the
heirs, executors, administrators, personal representatives, successors, and
assigns of the parties hereto; provided, however, the foregoing shall not be
deemed or construed to (i) permit, sanction, authorize, or condone the
assignment of all or any part of the Mortgaged Property or any of Borrower’s
rights, titles, or interests in and to the Mortgaged Property, except as
expressly authorized in the Loan Documents, or (ii) confer any right,
title, benefit, cause of action, or remedy upon any person or entity not a
party hereto, which such party would not or did not otherwise possess.

 

27.          Headings.  The section headings are inserted for
convenience of reference only and shall in no way alter, amend, define, or be
used in the construction or interpretation of the text of such section.

 

28.          Construction.  Whenever the context hereof so requires,
reference to the singular shall include the plural and likewise, the plural
shall include the singular; words denoting gender shall be construed to mean
the masculine, feminine, or neuter, as appropriate; and specific enumeration
shall not exclude the general, but shall be construed as cumulative of the
general recitation.  In the event of any
conflict between the terms and conditions of this Agreement and the other Loan
Documents, the terms and conditions of this Agreement shall govern.  Unless otherwise indicated, any reference in
this Agreement to a Section or Exhibit shall be a reference to such Section herein
or Exhibit hereto.

 

29.          Severability.  If any clause or provision of this Agreement
is or should ever be held to be illegal, invalid, or unenforceable under any
present or future law applicable to the terms hereof, then and in that event,
it is the intention of the parties hereto that the remainder of this Agreement
shall not be affected thereby, and that in lieu of each such clause or
provision of this Agreement that is illegal, invalid, or unenforceable, such
clause or provision shall be judicially construed and interpreted to be as
similar in substance and content to such illegal, invalid or unenforceable
clause or provision, as the context thereof would reasonably suggest, so as to
thereafter be legal, valid, and enforceable.

 

12

 

30.          Counterparts.  To facilitate execution, this Agreement may
be executed in as many counterparts by original or facsimile or email
transmission as may be convenient or required. 
It shall not be necessary that the signature and acknowledgment of, or
on behalf of, each party, or that the signature and acknowledgment of all
persons required to bind any party, appear on each counterpart.  All counterparts shall collectively
constitute a single instrument.  It shall
not be necessary in making proof of this Agreement to produce or account for
more than a single counterpart containing the respective signatures and
acknowledgment of, or on behalf of, each of the parties hereto.

 

31.          Amendment.  The terms and conditions of this Agreement
may not be modified, altered, or otherwise amended except by an instrument in
writing executed by Borrower and Lender.

 

32.          No Oral Agreements.  In consideration of the modification of the
Loan as provided herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto (i) agree
that each party’s execution of this Agreement constitutes an acknowledgment
that such party has read and understands this Agreement, and that it is
intended to be part of and is incorporated by reference into each of the Loan
Documents; (ii) acknowledges receipt of the following Notice, and (iii) to
the extent allowed by law, agrees to be bound by the terms of this Agreement
and the Notice:

 

NOTICE:
THIS DOCUMENT AND ALL OTHER DOCUMENTS RELATING TO THIS LOAN CONSTITUTE A
WRITTEN LOAN AGREEMENT WHICH REPRESENTS 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.

 

[SIGNATURE PAGES
FOLLOW]

 

13

 

IN WITNESS WHEREOF, Borrower
and Lender have caused this Agreement to be duly executed by their duly
authorized officers, to be effective as of the date first above written.

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  BEHRINGER
  HARVARD MOUNTAIN

  VILLAGE, LLC, a Colorado limited liability

  company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

	
  STATE
  OF
                       

  	
  §

  
	
   

  	
   

  	
   

  
	
  COUNTY
  OF
                   

  	
  §

  
			

 

On this           
day of                               
2008, before me, the undersigned Notary Public in and for the State of                     ,
personally appeared                                       
to me personally known who being by me duly sworn did say that he is the                        
of Behringer Harvard Mountain Village, LLC, a Colorado limited liability
company, executing the foregoing instrument, that the instrument was signed on
behalf of Behringer Harvard Mountain Village, LLC by authority, and said                                     
acknowledged the execution of the instrument to be the voluntary act and deed
of Behringer Harvard Mountain Village, LLC.

 

Witness my hand and official
seal.

 

 

	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
   

  	
  My commission expires:

  	
   

  

 

Borrower’s
Signature Page

 

 

Behringer Harvard Short-Term
Opportunity Fund I LP, a Texas limited partnership, executes this Agreement to
evidence its consent to, and agreement with, the terms and provisions contained
herein.

 

	
   

  	
  GUARANTOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEHRINGER
  HARVARD SHORT-TERM

  OPPORTUNITY FUND I LP,

  
	
   

  	
  a Texas limited
  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Behringer Harvard Advisors
  II LP,

  
	
   

  	
   

  	
  a Texas limited
  partnership,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Harvard Property Trust,
  LLC,

  
	
   

  	
   

  	
   

  	
  a Delaware limited
  liability company,

  
	
   

  	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Gerald J. Reihsen, III

  
	
   

  	
   

  	
   

  	
  Title: Secretary

  
						

 

 

	
  STATE OF

  	
  )

  
	
   

  	
  ) ss.

  
	
  CITY/COUNTY OF

  	
  )

  

 

On this       
day of                               
2008, before me, the undersigned Notary Public in and for the State of Texas,
personally appeared Gerald J. Reihsen, III to me personally known, who
being by me duly sworn did say that he is the Secretary of Harvard Property
Trust, LLC, the general partner of the general partner of Behringer Harvard
Short-Term Opportunity Fund I LP, a Texas limited partnership, executing the
foregoing instrument, that the instrument was signed on behalf of the limited
partnership by authority of the limited partnership; and said Gerald J. Reihsen, III
acknowledged the execution of the instrument to be the voluntary act and deed
of the limited partnership.

 

Witness my hand and official
seal.

 

 

	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
   

  	
   My commission
  expires:

  	
   

  

 

Guarantor’s
Singnature Page

 

 

 

	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  CREDIT
  UNION LIQUIDITY SERVICES,

  LLC, a Texas limited liability company

  (formerly known as Texans Commercial

  Capital)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:  Bill Henderson

  
	
   

  	
  Title:  Treasurer of the Board of Managers

  

 

 

	
  STATE
  OF TEXAS
                     

  	
  §

  
	
   

  	
   

  	
  §

  
	
  COUNTY
  OF
                   

  	
  §

  
			

 

On this           
day of                               
2008, before me, the undersigned Notary Public in and for the State of                    ,
personally appeared Bill Henderson to me personally known who being by me duly
sworn did say that he is the Treasurer of the Board of Managers of Credit Union
Liquidity Services, LLC, a Texas limited liability company, executing the
foregoing instrument, that the instrument was signed on behalf of the limited
liability company by authority of the limited liability company; and said Bill
Henderson acknowledged the execution of the instrument to be the voluntary act
and deed of the limited liability company.

 

Witness my hand and official
seal.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
   

  	
  My commission expires:

  	
   

  

 

Lender’s
Signature Page

 

 

EXHIBIT A

 

The Mortgaged Property

 

 

EXHIBIT B

 

Form of Letter from Architect

 

[Architect letterhead]

 

Credit
Union Liquidity Services, LLC

Attn:  Nick Fennell

777
East Campbell Road, Suite 650

Richardson,
Texas  75081

 

Re:          Letter regarding required
entitlements for Behringer Harvard Mountain Village, LLC (“Borrower”) pursuant
to that certain First Modification Agreement (“Agreement”) by and between Borrower
and Credit Union Liquidity Services, LLC (“Lender”).

 

Dear
Mr. Fennell:

 

All capitalized terms used
herein shall have the meanings set forth in or contemplated by the
Agreement.  The undersigned is the
Architect with respect to the Residential Condominium and other Improvements
and, knowing and intending that Lender will rely on this letter in deciding
whether to advance certain sums to Borrower and take other actions with respect
to the Loan, hereby certifies to Lender as follows:

 

Borrower has received all of
the Permits, which (A) could possibly be obtained given the status of the
construction of the Improvements at the present time, and (B) are
necessary in order to accomplish the construction and other matters for which
Borrower has requested an Advance.

 

	
   

  	
   

  	
  [/s/
  Architect]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  STATE OF

  	
  )

  	
   

  
	
   

  	
  ) ss.

  	
   

  
	
  CITY/COUNTY OF

  	
  )

  	
   

  

 

On this       
day of                               
2008, before me, the undersigned Notary Public in and for the State of                         ,
personally appeared
                         
to me personally known who being by me duly sworn did say that s/he is the
                      
of
                ,
executing the foregoing instrument, that the instrument was signed on behalf of
                           
by authority of the
                    ;
and said                                 
acknowledged the execution of the instrument to be the voluntary act and deed
of the
                     .

 

Witness my hand and official
seal.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
   

  	
  My commission expires:

  	
   

  

 

 

EXHIBIT C

 

Price Schedule

 

	
  UNIT

  TYPE

  	
   

  	
  BR

  	
   

  	
  SF

  	
   

  	
  List Price

  	
   

  	
  $ PSF

  	
   

  	
  Exhibit J - Minimum

  gross sales price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3A

  	
   

  	
  2BR-Flat

  	
   

  	
  1509

  	
   

  	
  $

  	
  1,659,900

  	
   

  	
  $

  	
  1,100.00

  	
   

  	
  $

  	
  1,209,009

  	
   

  
	
  3B

  	
   

  	
  2BR-Flat

  	
   

  	
  1402

  	
   

  	
  $

  	
  1,595,000

  	
   

  	
  $

  	
  1,137.66

  	
   

  	
  $

  	
  1,161,739

  	
   

  
	
  3D

  	
   

  	
  2BR-Flat

  	
   

  	
  1494

  	
   

  	
  $

  	
  1,695,000

  	
   

  	
  $

  	
  1,134.54

  	
   

  	
  $

  	
  1,234,575

  	
   

  
	
  3E

  	
   

  	
  2BR-Flat

  	
   

  	
  1402

  	
   

  	
  $

  	
  1,595,000

  	
   

  	
  $

  	
  1,137.66

  	
   

  	
  $

  	
  1,161,739

  	
   

  
	
  3F

  	
   

  	
  2BR-Flat

  	
   

  	
  1440

  	
   

  	
  $

  	
  1,595,000

  	
   

  	
  $

  	
  1,107.64

  	
   

  	
  $

  	
  1,161,739

  	
   

  
	
  5B

  	
   

  	
  2BR-Flat

  	
   

  	
  1857

  	
   

  	
  $

  	
  1,995,000

  	
   

  	
  $

  	
  1,074.31

  	
   

  	
  $

  	
  1,453,084

  	
   

  
	
  5E

  	
   

  	
  3BR-Flat

  	
   

  	
  2219

  	
   

  	
  $

  	
  2,395,000

  	
   

  	
  $

  	
  1,079.32

  	
   

  	
  $

  	
  1,744,429

  	
   

  
	
  4C

  	
   

  	
  3BR-Flat

  	
   

  	
  2105

  	
   

  	
  $

  	
  2,295,000

  	
   

  	
  $

  	
  1,090.26

  	
   

  	
  $

  	
  1,671,592

  	
   

  
	
  4E

  	
   

  	
  3BR-Flat

  	
   

  	
  2105

  	
   

  	
  $

  	
  2,295,000

  	
   

  	
  $

  	
  1,090.26

  	
   

  	
  $

  	
  1,671,592

  	
   

  
	
  5D

  	
   

  	
  3BR-Flat

  	
   

  	
  1857

  	
   

  	
  $

  	
  1,995,000

  	
   

  	
  $

  	
  1,074.31

  	
   

  	
  $

  	
  1,453,084

  	
   

  
	
  3C

  	
   

  	
  3BR-Flat

  	
   

  	
  1458

  	
   

  	
  $

  	
  1,695,000

  	
   

  	
  $

  	
  1,162.55

  	
   

  	
  $

  	
  1,234,575

  	
   

  
	
  2A

  	
   

  	
  3BR-Townhome

  	
   

  	
  3105

  	
   

  	
  $

  	
  2,995,000

  	
   

  	
  $

  	
  964.57

  	
   

  	
  $

  	
  2,181,446

  	
   

  
	
  2B

  	
   

  	
  3BR-Townhome

  	
   

  	
  3103

  	
   

  	
  $

  	
  2,995,000

  	
   

  	
  $

  	
  965.19

  	
   

  	
  $

  	
  2,181,446

  	
   

  
	
  4D

  	
   

  	
  4BR-Flat

  	
   

  	
  2526

  	
   

  	
  $

  	
  2,995,000

  	
   

  	
  $

  	
  1,185.67

  	
   

  	
  $

  	
  2,181,446

  	
   

  
	
  4F

  	
   

  	
  4BR-Flat

  	
   

  	
  2526

  	
   

  	
  $

  	
  2,995,000

  	
   

  	
  $

  	
  1,185.67

  	
   

  	
  $

  	
  2,181,446

  	
   

  
	
  5A

  	
   

  	
  4BR-Penthouse

  	
   

  	
  3272

  	
   

  	
  $

  	
  4,295,000

  	
   

  	
  $

  	
  1,312.65

  	
   

  	
  $

  	
  3,128,318

  	
   

  
	
  3G

  	
   

  	
  4BR-Penthouse

  	
   

  	
  2918

  	
   

  	
  $

  	
  3,895,000

  	
   

  	
  $

  	
  1,334.82

  	
   

  	
  $

  	
  2,836,973

  	
   

  
	
  2C

  	
   

  	
  4BR-Penthouse

  	
   

  	
  3568

  	
   

  	
  $

  	
  4,695,000

  	
   

  	
  $

  	
  1,315.86

  	
   

  	
  $

  	
  3,419,663

  	
   

  
	
  4G

  	
   

  	
  4BR-Penthouse

  	
   

  	
  3183

  	
   

  	
  $

  	
  4,195,000

  	
   

  	
  $

  	
  1,317.94

  	
   

  	
  $

  	
  3,055,482

  	
   

  
	
  5F

  	
   

  	
  4BR-Penthouse

  	
   

  	
  3557

  	
   

  	
  $

  	
  4,695,000

  	
   

  	
  $

  	
  1,319.93

  	
   

  	
  $

  	
  3,419,663

  	
   

  
	
  4A

  	
   

  	
  2BR-Deed Res

  	
   

  	
  1026

  	
   

  	
  $

  	
  256,500

  	
   

  	
  $

  	
  250.00

  	
   

  	
  $

  	
  186,825

  	
   

  
	
  4B

  	
   

  	
  2BR-Deed Res

  	
   

  	
  1212

  	
   

  	
  $

  	
  303,000

  	
   

  	
  $

  	
  250.00

  	
   

  	
  $

  	
  220,694

  	
   

  
	
  5C

  	
   

  	
  2BR-Deed Res

  	
   

  	
  1025

  	
   

  	
  $

  	
  256,250

  	
   

  	
  $

  	
  250.00

  	
   

  	
  $

  	
  186,643

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  49,869

  	
   

  	
  $

  	
  55,380,650

  	
   

  	
  $

  	
  808.86

  	
   

  	
  $

  	
  40,337,200

  	
   

  

 

1

 

EXHIBIT D

 

Approved Budget

 

[to be attached]

 

1

 

EXHIBIT E

 

Exceptions to Certain Representations and Warranties

 

1.     With respect to Section 3.06
set forth in the Loan Agreement, the Disclosed Litigation as of the date hereof
is as follows:  None.

 

2.     With respect to Section 3.12
of the Loan Agreement, Borrower or Guarantor has sufficient capital, or has
access to sufficient capital, to carry on its business and transactions as now
conducted and as planned to be conducted in the future.  Further, Lender has received financial
statements with respect to Borrower and Guarantor that update the Initial
Financial Statements.

 

3.     Borrower confirms to its
knowledge the representation set forth in Section 3.14 of the Loan
Agreement, as modified herein.

 

1

 

EXHIBIT F

 

Persons Preparing Plans

 

1.     Calibre Engineering, Inc.;

 

2.     BOKA Powell, LLC;

 

3.     Hunt & Joiner;

 

4.     San Juan;

 

5.     Given & Associates;

 

6.     Meeks Design Group;

 

7.     Amicus Interests; and

 

8.     miscellaneous minor
consultants for waterproofing, ski lift, etc.

 

1

 

EXHIBIT G

 

Form of Guaranty Amendment

 

FIRST AMENDMENT TO GUARANTY AGREEMENT

 

This FIRST AMENDMENT TO
GUARANTY AGREEMENT (“Amendment”)
is entered into to be effective as of                                   ,
2008, by and between Behringer Harvard Short-Term Opportunity Fund I LP, a
Texas limited partnership (“Guarantor”),
as guarantor, and Credit Union Liquidity Services, LLC, a Texas limited
liability company (formerly known as Texans Commercial Capital, LLC, a Texas
limited liability company) (“Lender”),
as lender.

 

RECITALS

 

A.            Behringer Harvard Mountain
Village, LLC, a Colorado limited liability company (“Borrower”), and Lender have executed that certain Construction
Loan Agreement dated as of September 29, 2006 (“Loan Agreement”) with respect to a loan in the original
principal amount of Thirty-one Million Six Hundred Fifty Thousand and No/100
Dollars ($31,650,000) (the “Loan”).  The Loan is evidenced by a Note (“Note”) from Borrower to Lender, dated as of
September 29, 2006, in the amount of the Loan.  The Note and Loan are secured by a Deed of
Trust, Security Agreement, Financing Statement, and Assignment of Rental dated
of even date with the Note (the “Security
Instrument”) encumbering the Mortgaged Property described in the
Security Instrument.  (The Note, the Loan
Agreement, the Security Instrument, and all other documents that evidence and
secure the Loan collectively are referred to as the “Loan Documents”.) 
Guarantor guaranteed the payment of certain amounts under the Loan
Documents under the terms of a Guaranty Agreement dated as of September 29,
2006 (the “Guaranty”).

 

B.            Borrower and Lender have
agreed to enter into a First Modification Agreement to modify certain terms and
conditions of the Loan (the “Modification”).

 

C.            As a condition of agreeing
to the Modification, Lender requires that the Guarantor execute this Amendment.

 

NOW, THEREFORE, in order to
induce Lender to execute the Modification, and in consideration thereof,
Guarantor agrees as follows:

 

1.             Reaffirmation.  Guarantor hereby (a) ratifies
and reaffirms the terms and conditions of the Guaranty; (b) acknowledges that
the Guaranty remains in full force and effect without any exoneration; (c) agrees
that the Loan Documents, as the same may be modified in connection with the
Modification, will continue to be guaranteed by the Guarantor as and to the
full extent provided in the Guaranty; (d) acknowledges that there are no
(or irrevocably waives any) claims or offsets against, or defenses or
counterclaims to, the terms and provisions of and the obligations created and
evidenced by the Guaranty; and (e) certifies that the representations and
warranties contained in the Guaranty are true and correct representations and
warranties of Guarantor, and hereby remakes to Lender such representations and
warranties as of the date hereof.

 

1

 

3.             Liquidity
Requirement.  From and after
the first Advance (as that term is defined in the Loan Agreement) by Lender on
or subsequent to the date hereof (“Liquidity
Requirement Date”), Guarantor shall at all times maintain
unencumbered cash and/or marketable securities in an amount of not less than
Four Million and No/100 Dollars ($4,000,000) (the “Liquidity Requirement”) in the form of (i) cash on hand
or on deposit in commercial banks operating in the United States, (ii) readily
marketable securities issued by the United States, (iii) readily
marketable commercial paper rated A-1 by Standard & Poor’s corporation
(or a similar rating by any similar organization that rates commercial paper), (iv) certificates
of deposit issued by commercial banks operating in the United States with
maturities of one (1) year or less, and (v) publicly traded stocks
and bonds.

 

                3.             Liquidity Account Statements.  From and after the Liquidity Requirement
Date, Guarantor shall, within forty-five (45) days after the end of each
Quarterly Period (as that term is defined in the Loan Agreement), deliver to
Lender statements evidencing, in a manner reasonably satisfactory to Lender,
that Guarantor is in compliance with the Liquidity Requirement.

 

4.             Liability.  The provisions of Section 24 of the
Guaranty are hereby specifically confirmed and shall remain in full force and
effect.

 

[SIGNATURE PAGES FOLLOW]

 

2

 

IN WITNESS WHEREOF, Guarantor and Lender have
signed and delivered this Amendment under seal or have caused this Amendment to
be signed and delivered under seal by its duly authorized representative.

 

	
   

  	
  GUARANTOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEHRINGER
  HARVARD SHORT-TERM

  OPPORTUNITY FUND I LP,

  
	
   

  	
  a Texas limited
  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Behringer Harvard Advisors
  II LP,

  
	
   

  	
   

  	
  a Texas limited partnership,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Harvard Property Trust,
  LLC,

  
	
   

  	
   

  	
   

  	
  a Delaware limited
  liability company,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Gerald J. Reihsen, III

  
	
   

  	
   

  	
   

  	
  Title: Secretary

  
								

 

	
  STATE OF

  	
  )

  
	
   

  	
  ) ss.

  
	
  CITY/COUNTY OF

  	
  )

  

 

On this       
day of                               
2008, before me, the undersigned Notary Public in and for the State of Texas,
personally appeared Gerald J. Reihsen, III to me personally known, who
being by me duly sworn did say that he is the Secretary of Harvard Property
Trust, LLC, the general partner of the general partner of Behringer Harvard
Short-Term Opportunity Fund I LP, a Texas limited partnership, executing the
foregoing instrument, that the instrument was signed on behalf of the limited partnership
by authority of the limited partnership; and said Gerald J. Reihsen, III
acknowledged the execution of the instrument to be the voluntary act and deed
of the limited partnership.

 

Witness my hand and official
seal.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
   

  	
  My commission expires:

  	
   

  

 

3

 

	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  CREDIT
  UNION LIQUIDITY SERVICES,

  LLC, a Texas limited liability company

  (formerly known as Texans Commercial

  Capital)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:  Bill Henderson

  
	
   

  	
  Title:  Treasurer of the Board of Managers

  

 

	
  STATE
  OF TEXAS
                     

  	
  §

  
	
   

  	
   

  	
  §

  
	
  COUNTY
  OF
                   

  	
  §

  
			

 

On this           
day of                               
2008, before me, the undersigned Notary Public in and for the State of                         ,
personally appeared Bill Henderson to me personally known who being by me duly
sworn did say that he is the Treasurer of the Board of Managers of Credit Union
Liquidity Services, LLC, a Texas limited liability company, executing the
foregoing instrument, that the instrument was signed on behalf of the limited
liability company by authority of the limited liability company; and said Bill
Henderson acknowledged the execution of the instrument to be the voluntary act
and deed of the limited liability company.

 

Witness my hand and official
seal.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
  My commission expires:

  	
   

  	
   

  
			

 

4

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