Document:

EXHIBIT 10.27

 

Freddie Mac Loan No. 534389465

Palms of Monterrey

 

MULTIFAMILY NOTE

MULTISTATE — ADJUSTABLE RATE

(REVISION DATE 03-31-2010)

 

	
  US
  $19,700,000.00

  	
   

  	
  Effective Date: As of June 11, 2010

  

 

FOR
VALUE RECEIVED, the undersigned (together with such party’s or parties’
successors and assigns, “Borrower”),
jointly and severally (if more than one) promises to pay to the order of HOLLIDAY FENOGLIO FOWLER, L.P., a Texas
limited partnership the principal sum of Nineteen Million Seven Hundred
Thousand and 00/100 Dollars (US $19,700,000.00), with interest on the
unpaid principal balance as hereinafter provided.

 

1.                                      Defined Terms.

 

(a)                                  As used in this
Note:

 

“Adjustable Interest Rate”
means the variable annual interest rate calculated for each Interest Adjustment
Period so as to equal the Index Rate for such Interest Adjustment Period
(truncated at the fifth (5th) decimal place if necessary) plus the Margin.  However, in no event will the Adjustable
Interest Rate exceed the Capped Interest Rate.

 

“Amortization Period”
means a period of 360 full consecutive calendar months.

 

“Base Recourse” means  a portion of the Indebtedness equal to
zero percent (0%) of the original principal balance of this Note.

 

“Business Day” means any
day other than a Saturday, a Sunday or any other day on which Lender or the
national banking associations are not open for business.

 

“Capped Interest Rate”
means seven percent (7%) per annum.

 

“Default Rate” means a
variable annual interest rate equal to four (4) percentage points above
the Adjustable Interest Rate in effect from time to time.  However, at no time will the Default Rate
exceed the Maximum Interest Rate.

 

“Index Rate” means, for
any Interest Adjustment Period, the one month LIBOR Index Rate for such Interest
Adjustment Period.

 

“Installment Due Date”
means, for any monthly installment of interest only or principal and interest,
the date on which such monthly installment is due and payable pursuant to Section 3
of this Note. The “First Installment Due Date”
under this Note is August 1, 2010.

 

“Interest Adjustment Period”
means each successive one (1) calendar month period until the entire
Indebtedness is paid in full, except that the first Interest Adjustment Period
is the period from the date of this Note through June 30, 2010. Therefore,
the second Interest Adjustment Period shall be the period from July 1,
2010 through July 31, 2010, and so on until the entire Indebtedness is
paid in full.

 

“Lender” means the holder
from time to time of this Note.

 

 

“LIBOR Index” means the
British Bankers Association’s (BBA) one (1) month LIBOR Rate for United
States Dollar deposits, as displayed on the LIBOR Index Page used to
establish the LIBOR Index Rate.

 

“LIBOR Index Rate” means,
for any Interest Adjustment Period after the first Interest Adjustment Period,
the BBA’s LIBOR Rate for the LIBOR Index released by the BBA most recently
preceding the first day of such Interest Adjustment Period, as such LIBOR Rate
is displayed on the LIBOR Index Page. 
The LIBOR Index Rate for the first Interest Adjustment Period means the
British Bankers Association’s (BBA) LIBOR Rate for the LIBOR Index released by
the BBA most recently preceding the first day of the month in which the first
Interest Adjustment Period begins, as such LIBOR Rate is displayed on the LIBOR
Index Page.  “LIBOR Index Page” is the Bloomberg L.P., page “BBAM”, or
such other page for the LIBOR Index as may replace page BBAM on that
service, or at the option of Lender (i) the applicable page for the
LIBOR Index on another service which electronically transmits or displays BBA
LIBOR Rates, or (ii) any publication of LIBOR rates available from the
BBA.  In the event the BBA ceases to set
or publish a LIBOR rate/interest settlement rate for the LIBOR Index, Lender
will designate an alternative index, and such alternative index shall
constitute the LIBOR Index Page.

 

“Loan” means the loan
evidenced by this Note.

 

“Lockout Period” is not
applicable, there is no Lockout Period under this Note.

 

“Margin” means three and
thirty-five hundredths (3.35) percentage points (335 basis points).

 

“Maturity Date” means  the earlier of  (i) July 1, 2017  (the
“Scheduled Maturity Date”),  and (ii) the date on
which the unpaid principal balance of this Note becomes due and payable by
acceleration or otherwise pursuant to the Loan Documents or the exercise by
Lender of any right or remedy under any Loan Document.

 

“Maximum Interest Rate”
means the rate of interest that results in the maximum amount of interest
allowed by applicable law.

 

“Prepayment Premium Period”
means the period during which, if a prepayment of principal occurs, a
prepayment premium will be payable by Borrower to Lender.  The Prepayment Premium Period is the period
from and including the date of this Note until but not including the first day
of the Window Period.

 

“Reference Billsâ“ means the unsecured general obligations of the
Federal Home Loan Mortgage Corporation (“Freddie
Mac”) designated by Freddie Mac as “Reference Billsâ Securities”
and having original durations to maturity most comparable to the term of the
Reference Bill Index, and issued by Freddie Mac at regularly scheduled
auctions.  In the event Freddie Mac shall
at any time cease to designate any unsecured general obligations of Freddie Mac
as “Reference Bills Securities”, then at the option of Lender (i) Lender
may select from time to time another unsecured general obligation of Freddie
Mac having original durations to maturity most comparable to the term of the
Reference Bill Index and issued by Freddie Mac at regularly scheduled auctions,
and the term “Reference Bills” as used in this Note shall mean such other
unsecured general obligations as selected by Lender; or (ii) for any one
or more Interest Adjustment Periods, Lender may

 

2

 

use the applicable LIBOR Index Rate as the Index Rate for such Interest
Adjustment Period(s).

 

“Reference Bill Index”
means the one month Reference Bills. 
One-month reference bills have original durations to maturity of
approximately 30 days.

 

“Reference Bill Index Rate”
means, for any Interest Adjustment Period after the first Interest Adjustment
Period, the Money Market Yield for the Reference Bills as established by the
Reference Bill auction conducted by Freddie Mac most recently preceding the
first day of such Interest Adjustment Period, as displayed on the Reference
Bill Index Page.  The Reference Bill
Index Rate for the first Interest Adjustment Period means the Money Market
Yield for the Reference Bills as established by the Reference Bill auction conducted
by Freddie Mac most recently preceding the first day of the month in which the
first Interest Adjustment Period begins, as displayed on the Reference Bill
Index Page.  The “Reference Bill Index Page” is the Freddie
Mac Debt Securities Web Page (accessed via the Freddie Mac internet site
at www.freddiemac.com), or at the option of Lender, any publication of
Reference Bills auction results available from Freddie Mac. However, if Freddie
Mac has not conducted a Reference Bill auction within the 60-calendar day
period prior to the first day of an Interest Adjustment Period, the Reference
Bill Index Rate for such Interest Adjustment Period will be the LIBOR Index
Rate for such Interest Adjustment Period.

 

“Remaining Amortization Period”
means, at any point in time, the number of consecutive calendar months equal to
the number of months in the Amortization Period minus the number of scheduled
monthly installments of principal and interest that have elapsed since
the date of this Note.

 

“Security Instrument” means
the multifamily mortgage, deed to secure debt or deed of trust effective as of
the effective date of this Note, from Borrower to or for the benefit of Lender
and securing this Note.

 

“Window Period” means the
three (3) consecutive calendar month period prior to the Scheduled
Maturity Date.

 

“Yield Maintenance Period”
is not applicable, there is no Yield Maintenance Period under this Note.

 

(b)                                 Other
capitalized terms used but not defined in this Note shall have the meanings
given to such terms in the Security Instrument.

 

2.                                      Address for Payment.  All payments due under this Note shall be
payable at (i) if by regular mail - Holliday Fenoglio Fowler, L.P., Post
Office Box 840637, Dallas, Texas 75284-0637, or (ii) if by overnight mail
- Bank of America Lockbox Services, Lockbox 840637, 1950 N. Stemmons Freeway, Suite 5010,
Dallas, Texas 75207, or such other place as may be designated by Notice to
Borrower from or on behalf of Lender.

 

3.                                      Payments.

 

(a)                                  Interest will
accrue on the outstanding principal balance of this Note at the Adjustable
Interest Rate, subject to the provisions of Section 8 of this Note.

 

(b)                                 Interest under
this Note shall be computed, payable and allocated on the basis of an
actual/360 interest calculation schedule (interest is payable for the actual
number of days in each month, and each month’s interest is calculated by
multiplying the unpaid principal amount

 

3

 

of this Note as of the first day of the month for
which interest is being calculated by the applicable Adjustable Interest Rate,
dividing the product by 360, and multiplying the quotient by the number of days
in the month for which interest is being calculated).  For convenience in determining the amount of
a monthly installment of principal and interest under this Note, Lender will
use a 30/360 interest calculation payment schedule (each year is treated as
consisting of twelve 30-day months). 
However, as provided above, the portion of the monthly installment
actually payable as and allocated to interest will be based upon an actual/360
interest calculation schedule, and the amount of each installment attributable
to principal and the amount attributable to interest will vary based upon the
number of days in the month for which such installment is paid.  Each monthly payment of principal and
interest will first be applied to pay in full interest due, and the balance of
the monthly payment paid by Borrower will be credited to principal.

 

(c)                                  Unless
disbursement of principal is made by Lender to Borrower on the first day of a
calendar month, interest for the period beginning on the date of disbursement
and ending on and including the last day of such calendar month shall be
payable by Borrower simultaneously with the execution of this Note.  If disbursement of principal is made by
Lender to Borrower on the first day of a calendar month, then no payment will
be due from Borrower at the time of the execution of this Note.  The Installment Due Date for the first
monthly installment payment under Section 3(d) of interest only or
principal and interest, as applicable, will be the First Installment Due Date
set forth in Section 1(a) of this Note.  Except as provided in this Section 3(c) and
in Section 10, accrued interest will be payable in arrears.

 

(d)                                 (i)                                     Beginning on
the First Installment Due Date, and continuing until and including the monthly
installment due on July 1, 2012, accrued interest only shall be payable by
Borrower in consecutive monthly installments due and payable on the first day
of each calendar month.  The amount of
the monthly installment of interest only payable pursuant to this Section 3(d)(i) on
an Installment Due Date shall equal the product of (A) annual interest on
the unpaid principal balance of this Note as of the first day of the Interest
Adjustment Period immediately preceding the Installment Due Date at the
Adjustable Interest Rate in effect for such Interest Adjustment Period, divided
by 360, multiplied by (B) the number of days in such Interest Adjustment
Period.

 

(ii)                                  Beginning on August 1,
2012, and continuing until and including the monthly installment due on the
Maturity Date, principal and accrued interest shall be payable by Borrower in
consecutive monthly installments due and payable on the first day of each
calendar month.  The amount of the
monthly installment of principal and interest payable pursuant to this Section 3(d)(ii) on
an Installment Due Date shall be calculated so as to equal the monthly payment
amount which would be payable on the Installment Due Date as if the unpaid
principal balance of this Note as of the first day of the Interest Adjustment
Period immediately preceding the Installment Due Date was to be fully
amortized, together with interest thereon at the Adjustable Interest Rate in
effect for such Interest Adjustment Period, in equal consecutive monthly
payments paid on the first day of each calendar month over the Remaining
Amortization Period.

 

(e)                                  All remaining
Indebtedness, including all principal and interest, shall be due and payable by
Borrower on the Maturity Date.

 

(f)                                    Lender shall
provide Borrower with Notice, given in the manner specified in the Security
Instrument, of the amount of each monthly installment due under this Note.  However,

 

4

 

if Lender has not provided Borrower with prior
notice of the monthly payment due on any Installment Due Date, then Borrower
shall pay on that Installment Due Date an amount equal to the monthly
installment payment for which Borrower last received notice.  If Lender at any time determines that
Borrower has paid one or more monthly installments in an incorrect amount
because of the operation of the preceding sentence, or because Lender has
miscalculated the Adjustable Interest Rate or has otherwise miscalculated the
amount of any monthly installment, then Lender shall give notice to Borrower of
such determination.  If such
determination discloses that Borrower has paid less than the full amount due
for the period for which the determination was made, Borrower, within 30
calendar days after receipt of the notice from Lender, shall pay to Lender the
full amount of the deficiency.  If such
determination discloses that Borrower has paid more than the full amount due
for the period for which the determination was made, then the amount of the
overpayment shall be credited to the next installment(s) of interest only
or principal and interest, as applicable, due under this Note (or, if an Event
of Default has occurred and is continuing, such overpayment shall be credited
against any amount owing by Borrower to Lender).

 

(g)                                 All payments
under this Note shall be made in immediately available U.S. funds.

 

(h)                                 Any regularly
scheduled monthly installment of interest only or principal and interest
payable pursuant to this Section 3 that is received by Lender before the
date it is due shall be deemed to have been received on the due date for the
purpose of calculating interest due.

 

(i)                                     Any accrued
interest remaining past due for 30 days or more, at Lender’s discretion, may be
added to and become part of the unpaid principal balance of this Note and any
reference to “accrued interest” shall refer to accrued interest which has not
become part of the unpaid principal balance. 
Any amount added to principal pursuant to the Loan Documents shall bear
interest at the applicable rate or rates specified in this Note and shall be
payable with such interest upon demand by Lender and absent such demand, as
provided in this Note for the payment of principal and interest.

 

(j)                                     In accordance
with Section 14, interest charged under this Note cannot exceed the
Maximum Interest Rate.  If the Adjustable
Interest Rate at any time exceeds the Maximum Interest Rate, resulting in the
charging of interest hereunder to be limited to the Maximum Interest Rate, then
any subsequent reduction in the Adjustable Interest Rate shall not reduce the
rate at which interest under this Note accrues below the Maximum Interest Rate
until the total amount of interest accrued hereunder equals the amount of interest
which would have accrued had the Adjustable Interest Rate at all times been in
effect.

 

4.                                      Application of Payments.  If at any time
Lender receives, from Borrower or otherwise, any amount applicable to the
Indebtedness which is less than all amounts due and payable at such time,
Lender may apply the amount received to amounts then due and payable in any
manner and in any order determined by Lender, in Lender’s discretion.  Borrower agrees that neither Lender’s
acceptance of a payment from Borrower in an amount that is less than all
amounts then due and payable nor Lender’s application of such payment shall
constitute or be deemed to constitute either a waiver of the unpaid amounts or
an accord and satisfaction.

 

5.                                      Security.  The
Indebtedness is secured by, among other things, the Security Instrument, and
reference is made to the Security Instrument for other rights of Lender as to
collateral for the Indebtedness.

 

6.                                      Acceleration.  If an Event of
Default has occurred and is continuing, the entire unpaid principal balance,
any accrued interest, any prepayment premium payable under Section 10, and
all other amounts payable under this Note and any other Loan Document, shall at
once become due and payable, at the option of Lender, without any prior notice
to Borrower (except if notice is required by applicable law, then after such
notice).  Lender may exercise this option
to accelerate regardless of any prior forbearance.  For purposes of exercising such option,

 

5

 

Lender shall calculate the prepayment premium as if
prepayment occurred on the date of acceleration.  If prepayment occurs thereafter, Lender shall
recalculate the prepayment premium as of the actual prepayment date.

 

7.                                      Late Charge.

 

(a)                                  If any monthly
installment of interest or principal and interest or other amount payable under
this Note or under the Security Instrument or any other Loan Document is not
received in full by Lender within five (5) days after the installment or other
amount is due, counting from and including the date such installment or other
amount is due (unless applicable law requires a longer period of time before a
late charge may be imposed, in which event such longer period shall be
substituted), Borrower shall pay to Lender, immediately and without demand by
Lender, a late charge equal to five percent (5%) of such installment or other
amount due (unless applicable law requires a lesser amount be charged, in which
event such lesser amount shall be substituted).

 

(b)                                 Borrower acknowledges
that its failure to make timely payments will cause Lender to incur additional
expenses in servicing and processing the Loan and that it is extremely
difficult and impractical to determine those additional expenses.  Borrower agrees that the late charge payable
pursuant to this Section represents a fair and reasonable estimate, taking
into account all circumstances existing on the date of this Note, of the
additional expenses Lender will incur by reason of such late payment.  The late charge is payable in addition to,
and not in lieu of, any interest payable at the Default Rate pursuant to
Section 8.

 

8.                                      Default Rate.

 

(a)                                  So long as
(i) any monthly installment under this Note remains past due for thirty
(30) days or more or (ii) any other Event of Default has occurred and is
continuing, then notwithstanding anything in Section 3 of this Note to the
contrary, interest under this Note shall accrue on the unpaid principal balance
from the Installment Due Date of the first such unpaid monthly installment or
the occurrence of such other Event of Default, as applicable, at the Default
Rate.

 

(b)                                 From and after
the Maturity Date, the unpaid principal balance shall continue to bear interest
at the Default Rate until and including the date on which the entire principal
balance is paid in full.

 

(c)                                  Borrower
acknowledges that (i) its failure to make timely payments will cause
Lender to incur additional expenses in servicing and processing the Loan,
(ii) during the time that any monthly installment under this Note is
delinquent for thirty (30) days or more, Lender will incur additional costs and
expenses arising from its loss of the use of the money due and from the adverse
impact on Lender’s ability to meet its other obligations and to take advantage
of other investment opportunities; and (iii)  it is extremely difficult
and impractical to determine those additional costs and expenses.  Borrower also acknowledges that, during the
time that any monthly installment under this Note is delinquent for thirty (30)
days or more or any other Event of Default has occurred and is continuing,
Lender’s risk of nonpayment of this Note will be materially increased and
Lender is entitled to be compensated for such increased risk.  Borrower agrees that the increase in the rate
of interest payable under this Note to the Default Rate represents a fair and
reasonable estimate, taking into account all circumstances existing on the date
of this Note, of the additional costs and expenses Lender will incur by reason
of the Borrower’s delinquent payment and the additional compensation Lender is
entitled to receive for the increased risks of nonpayment associated with a
delinquent loan.

 

6

 

9.                                      Limits on Personal Liability.

 

(a)                                  Except as otherwise
provided in this Section 9, Borrower shall have no personal liability
under this Note, the Security Instrument or any other Loan Document for the
repayment of the Indebtedness or for the performance of any other obligations
of Borrower under the Loan Documents and Lender’s only recourse for the
satisfaction of the Indebtedness and the performance of such obligations shall
be Lender’s exercise of its rights and remedies with respect to the Mortgaged
Property and to any other collateral held by Lender as security for the
Indebtedness.  This limitation on
Borrower’s liability shall not limit or impair Lender’s enforcement of its
rights against any guarantor of the Indebtedness or any guarantor of any other
obligations of Borrower.

 

(b)                                 Borrower shall
be personally liable to Lender for the amount of the Base Recourse, plus any
other amounts for which Borrower has personal liability under this
Section 9.

 

(c)                                  In addition to
the Base Recourse, Borrower shall be personally liable to Lender for the
repayment of a further portion of the Indebtedness equal to any loss or damage
suffered by Lender as a result of the occurrence of any of the following
events:

 

(i)            Borrower fails
to pay to Lender upon demand after an Event of Default all Rents to which
Lender is entitled under Section 3(a) of the Security Instrument and
the amount of all security deposits collected by Borrower from tenants then in
residence.  However, Borrower will not be
personally liable for any failure described in this subsection (i) if
Borrower is unable to pay to Lender all Rents and security deposits as required
by the Security Instrument because of a valid order issued in a bankruptcy,
receivership, or similar judicial proceeding.

 

(ii)           Borrower fails
to apply all insurance proceeds and condemnation proceeds as required by the
Security Instrument.  However, Borrower
will not be personally liable for any failure described in this
subsection (ii) if Borrower is unable to apply insurance or
condemnation proceeds as required by the Security Instrument because of a valid
order issued in a bankruptcy, receivership, or similar judicial proceeding.

 

(iii)          Borrower fails
to comply with Section 14(g) or (h) of the Security Instrument
relating to the delivery of books and records, statements, schedules and
reports.

 

(iv)          Borrower fails
to pay when due in accordance with the terms of the Security Instrument the
amount of any  item below marked “Deferred”;
provided however, that if no item is marked “Deferred”, this Section 9(c)(iv) shall
be of no force or effect.

 

	
  [Deferred]

  	
   

  	
  Hazard
  Insurance premiums or other insurance premiums,

  
	
  [Collect]

  	
   

  	
  Taxes,

  
	
  [Deferred]

  	
   

  	
  water and sewer charges (that could become a lien on the Mortgaged
  Property),

  
	
  [N/A]

  	
   

  	
  ground
  rents,

  
	
  [Deferred]

  	
   

  	
  assessments
  or other charges (that could become a lien on the Mortgaged Property)

  

 

(v)           Borrower
engages in any willful act of material waste of the Mortgaged Property.

 

7

 

(d)                                 In addition to
the Base Recourse, Borrower shall be personally liable to Lender for:

 

(i)            the performance
of all of Borrower’s obligations under Section 18 of the Security
Instrument (relating to environmental matters);

 

(ii)           the costs of
any audit under Section 14(g) of the Security Instrument; and

 

(iii)          any costs and
expenses incurred by Lender in connection with the collection of any amount for
which Borrower is personally liable under this Section 9, including
Attorneys’ Fees and Costs and the costs of conducting any independent audit of
Borrower’s books and records to determine the amount for which Borrower has
personal liability.

 

(e)                                  All payments
made by Borrower with respect to the Indebtedness and all amounts received by
Lender from the enforcement of its rights under the Security Instrument and the
other Loan Documents shall be applied first to the portion of the Indebtedness
for which Borrower has no personal liability.

 

(f)                                    Notwithstanding
the Base Recourse, Borrower shall become personally liable to Lender for the
repayment of all of the Indebtedness upon the occurrence of any of the
following Events of Default:

 

(i)            Borrower’s
ownership of any property or operation of any business not permitted by
Section 33 of the Security Instrument;

 

(ii)           a Transfer
(including, but not limited to, a lien or encumbrance) that is an Event of
Default under Section 21 of the Security Instrument, other than a Transfer
consisting solely of the involuntary removal or involuntary withdrawal of a
general partner in a limited partnership or a manager in a limited liability
company;

 

(iii)          fraud or
written material misrepresentation by Borrower or any officer, director,
partner, member or employee of Borrower in connection with the application for
or creation of the Indebtedness or any request for any action or consent by
Lender; or

 

(iv)          an involuntary
bankruptcy or other involuntary insolvency proceeding is commenced against
Borrower (by a party other than Lender) but only if Borrower has failed to use
commercially reasonable efforts to dismiss such proceeding or has consented to
such proceeding.

 

(g)                                 To the extent
that Borrower has personal liability under this Section 9, Lender may
exercise its rights against Borrower personally without regard to whether
Lender has exercised any rights against the Mortgaged Property or any other
security, or pursued any rights against any guarantor, or pursued any other
rights available to Lender under this Note, the Security Instrument, any other
Loan Document or applicable law.  To the
fullest extent permitted by applicable law, in any action to enforce Borrower’s
personal liability under this Section 9, Borrower waives any right to set
off the value of the Mortgaged Property against such personal liability.

 

10.                               Voluntary
and Involuntary Prepayments.

 

(a)                                  Any receipt by
Lender of principal due under this Note prior to the Maturity Date, other than
principal required to be paid in monthly installments pursuant to
Section 3, constitutes 

 

8

 

a prepayment of principal under this Note.  Without limiting the foregoing, any
application by Lender, prior to the Maturity Date, of any proceeds of
collateral or other security to the repayment of any portion of the unpaid
principal balance of this Note constitutes a prepayment under this Note.

 

(b)                                 Borrower may
not voluntarily prepay any portion of the principal balance of this Note during
the Lockout Period, if a Lockout Period is applicable to this Note.  However, if any portion of the principal
balance of this Note is prepaid during the Lockout Period by reason of the
application by Lender of any proceeds of collateral or other security to any
portion of the unpaid principal balance of this Note or following a
determination that the prohibition on voluntary prepayments during the Lockout
Period is in contravention of applicable law, then Borrower must also pay to
Lender upon demand by Lender, a prepayment premium equal to five percent (5.0%)
of the amount of principal being prepaid.

 

(c)                                  Following the
end of the Lockout Period, Borrower may voluntarily prepay all of the unpaid
principal balance of this Note on an Installment Due Date so long as Borrower
designates the date for such prepayment in a Notice from Borrower to Lender
given at least 30 days prior to the date of such prepayment.  If an Installment Due Date (as defined in Section 1(a))
falls on a day which is not a Business Day, then with respect to payments made
under this Section 10 only, the term “Installment Due Date” shall mean the
Business Day immediately preceding the scheduled Installment Due Date.

 

(d)                                 Notwithstanding
subsection (c) above, Borrower may voluntarily prepay all of the unpaid
principal balance of this Note on a Business Day other than an Installment Due
Date if Borrower provides Lender with the Notice set forth in subsection (c) and
meets the other requirements set forth in this subsection.  Borrower acknowledges that Lender has agreed
that Borrower may prepay principal on a Business Day other than an Installment
Due Date only because Lender shall deem any prepayment received by Lender on
any day other than an Installment Due Date to have been received on the
Installment Due Date immediately following such prepayment and Borrower shall
be responsible for all interest that would have been due if the prepayment had
actually been made on the Installment Due Date immediately following such
prepayment.

 

(e)                                  Unless
otherwise expressly provided in the Loan Documents, Borrower may not
voluntarily prepay less than all of the unpaid principal balance of this
Note.  In order to voluntarily prepay all
or any part of the principal of this Note, Borrower must also pay to Lender,
together with the amount of principal being prepaid, (i) all accrued
and unpaid interest due under this Note, plus (ii) all other sums due to
Lender at the time of such prepayment, plus (iii) any prepayment premium
calculated pursuant to Section 10(f).

 

(f)                                    Except as
provided in Section 10(g), a prepayment premium shall be due and payable
by Borrower in connection with any prepayment of principal under this Note
during the Prepayment Premium Period. 
The prepayment premium shall be:

 

(i)            5.0% of the
amount of principal being prepaid if the prepayment occurs prior to the twelfth
(12th) Installment Due Date under this Note; or

 

(ii)           4.0% of the
amount of principal being prepaid if the prepayment occurs on or after the
twelfth (12th) Installment Due Date under this Note and prior to the
twenty-fourth (24th) Installment Due Date under this Note; or

 

(iii)          3.0% of the
amount of principal being prepaid if the prepayment occurs on or after the twenty-fourth
(24th) Installment Due Date under this Note and prior to the thirty-sixth
(36th) Installment Due Date under this Note; or

 

9

 

(iv)          2.0% of the
amount of principal being prepaid if the prepayment occurs on or after the
thirty-sixth (36th) Installment Due Date under this Note and prior to the
forty-eighth (48th) Installment Due Date under this Note; or

 

(v)           1.0% of the
amount of principal being prepaid if the prepayment occurs on or after the
forty-eighth (48th) Installment Due Date under this Note.

 

(g)                                 Notwithstanding
any other provision of this Section 10, no prepayment premium shall be
payable with respect to (i) any prepayment made during the Window Period,
or (ii) any prepayment occurring as a result of the application of any
insurance proceeds or condemnation award under the Security Instrument, or (iii) any
prepayment of the entire principal balance of this Note that occurs on or after
the sixtieth (60th) Installment
Due Date under this Note with the proceeds of a fixed interest rate or
fixed-to-float interest rate mortgage loan that is the subject of a binding
commitment for purchase between the Freddie Mac and a Freddie Mac-approved
Program Plusâ
Seller/Servicer.

 

(h)                                 Unless Lender
agrees otherwise in writing, a permitted or required prepayment of less than
the unpaid principal balance of this Note shall not extend or postpone the due
date of any subsequent monthly installments or change the amount of such
installments.

 

(i)                                     Borrower
recognizes that any prepayment of any of the unpaid principal balance of this
Note, whether voluntary or involuntary or resulting from an Event of Default by
Borrower, will result in Lender’s incurring loss, including reinvestment loss,
additional expense and frustration or impairment of Lender’s ability to meet
its commitments to third parties. 
Borrower agrees to pay to Lender upon demand damages for the detriment
caused by any prepayment, and agrees that it is extremely difficult and
impractical to ascertain the extent of such damages.  Borrower therefore acknowledges and agrees
that the formula for calculating prepayment premiums set forth in this Note
represents a reasonable estimate of the damages Lender will incur because of a
prepayment.  Borrower further acknowledges
that any lockout and prepayment premium provisions of this Note are a material
part of the consideration for the Loan, and that the terms of this Note are in
other respects more favorable to Borrower as a result of the Borrower’s
voluntary agreement to the lockout and prepayment premium provisions.

 

11.                               Costs and
Expenses.  To the fullest
extent allowed by applicable law, Borrower shall pay all expenses and costs,
including Attorneys’ Fees and Costs incurred by Lender as a result of any
default under this Note or in connection with efforts to collect any amount due
under this Note, or to enforce the provisions of any of the other Loan
Documents, including those incurred in post-judgment collection efforts and in
any bankruptcy proceeding (including any action for relief from the automatic
stay of any bankruptcy proceeding) or judicial or non-judicial foreclosure
proceeding.

 

12.                               Forbearance.  Any forbearance by Lender in exercising any
right or remedy under this Note, the Security Instrument, or any other Loan
Document or otherwise afforded by applicable law, shall not be a waiver of or
preclude the exercise of that or any other right or remedy.  The acceptance by Lender of any payment after
the due date of such payment, or in an amount which is less than the required
payment, shall not be a waiver of Lender’s right to require prompt payment when
due of all other payments or to exercise any right or remedy with respect to
any failure to make prompt payment. 
Enforcement by Lender of any security for Borrower’s obligations under
this Note shall not constitute an election by Lender of remedies so as to
preclude the exercise of any other right or remedy available to Lender.

 

13.                               Waivers.  Borrower and all endorsers
and guarantors of this Note and all other third party obligors waive
presentment, demand, notice of dishonor, protest, notice of acceleration,
notice of intent to demand or accelerate payment or maturity, presentment for
payment, notice of nonpayment, grace, and diligence in collecting the Indebtedness.

 

10

 

14.          Loan Charges.  Neither this Note nor any of the other Loan
Documents shall be construed to create a contract for the use, forbearance or
detention of money requiring payment of interest at a rate greater than the
Maximum Interest Rate.  If any applicable
law limiting the amount of interest or other charges permitted to be collected
from Borrower in connection with the Loan is interpreted so that any interest
or other charge provided for in any Loan Document, whether considered
separately or together with other charges provided for in any other Loan
Document, violates that law, and Borrower is entitled to the benefit of that
law, that interest or charge is hereby reduced to the extent necessary to
eliminate that violation.  The amounts,
if any, previously paid to Lender in excess of the permitted amounts shall be
applied by Lender to reduce the unpaid principal balance of this Note. For the
purpose of determining whether any applicable law limiting the amount of
interest or other charges permitted to be collected from Borrower has been
violated, all Indebtedness that constitutes interest, as well as all other
charges made in connection with the Indebtedness that constitute interest,
shall be deemed to be allocated and spread ratably over the stated term of this
Note.  Unless otherwise required by
applicable law, such allocation and spreading shall be effected in such a
manner that the rate of interest so computed is uniform throughout the stated
term of this Note.

 

15.          Commercial Purpose.  Borrower represents that
Borrower is incurring the Indebtedness solely for the purpose of carrying on a
business or commercial enterprise, and not for personal, family, household, or
agricultural purposes.

 

16.          Counting of Days.  Except where otherwise
specifically provided, any reference in this Note to a period of “days” means
calendar days, not Business Days.

 

17.          Governing Law.  This Note shall be governed
by the law of the Property Jurisdiction.

 

18.          Captions.  The captions of the
Sections of this Note are for convenience only and shall be disregarded in
construing this Note.

 

19.          Notices; Written Modifications.

 

(a)           All Notices, demands and other communications required or
permitted to be given pursuant to this Note shall be given in accordance with
Section 31 of the Security Instrument.

 

(b)           Any modification or amendment to this Note shall be
ineffective unless in writing signed by the party sought to be charged with
such modification or amendment; provided, however, that in the event of a
Transfer under the terms of the Security Instrument that requires Lender’s
consent, any or some or all of the Modifications to Multifamily Note set forth
in Exhibit A to this Note may be modified or rendered void by Lender at
Lender’s option, by Notice to Borrower and the transferee, as a condition of
Lender’s consent.

 

20.          Consent to Jurisdiction and Venue.  Borrower agrees that any controversy arising
under or in relation to this Note may be litigated in the Property
Jurisdiction.  The state and federal
courts and authorities with jurisdiction in the Property Jurisdiction shall
have jurisdiction over all controversies that shall arise under or in relation
to this Note.  Borrower irrevocably
consents to service, jurisdiction, and venue of such courts for any such
litigation and waives any other venue to which it might be entitled by virtue
of domicile, habitual residence or otherwise. 
However, nothing in this Note is intended to limit any right that Lender
may have to bring any suit, action or proceeding relating to matters arising
under this Note in any court of any other jurisdiction.

 

21.          WAIVER OF TRIAL BY JURY.  BORROWER AND LENDER EACH (A) AGREES NOT
TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS NOTE OR
THE RELATIONSHIP BETWEEN THE PARTIES 

 

11

 

AS LENDER AND BORROWER THAT IS
TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH
RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE
FUTURE.  THIS WAIVER OF RIGHT TO TRIAL BY
JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE
BENEFIT OF COMPETENT LEGAL COUNSEL.

 

22.          State-Specific Provisions.  N/A.

 

ATTACHED EXHIBIT.  The Exhibit
noted below, if marked with an “X” in the space provided, is attached to this
Note:

 

x           Exhibit A                Modifications to Multifamily Note

 

IN WITNESS WHEREOF, and in consideration of
the Lender’s agreement to lend Borrower the principal amount set forth above,
Borrower has signed and delivered this Note under seal or has caused this Note
to be signed and delivered under seal by its duly authorized representative.

 

12

 

	
   

  	
  15250 SONOMA DRIVE FEE OWNER, LLC, a Delaware
  limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  15250
  Sonoma Drive, LLC, a Delaware limited liability company, its Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Behringer
  Harvard Palms of Monterrey, LLC, a Delaware limited liability company, its
  Managing Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Gerald J. Reihsen, III

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  Gerald J. Reihsen, III

  
	
   

  	
   

  	
   

  	
   

  	
  Title:  Executive Vice President – Corporate
  Development & Legal

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Borrower’s
  Social Security/Employer ID Number

  

 

13

 

	
  PAY
  TO THE ORDER OF FEDERAL HOME LOAN MORTGAGE CORPORATION, WITHOUT RECOURSE.

  	
   

  
	
   

  	
   

  
	
  HOLLIDAY FENOGLIO FOWLER, L.P., a Texas
  limited partnership

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Holliday
  GP Corp., a Delaware corporation, its general partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Patrick V. Kinlan

  	
   

  
	
   

  	
   

  	
  Patrick
  V. Kinlan

  	
   

  
	
   

  	
   

  	
  Vice
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Freddie
  Mac Loan No. 534389465

  	
   

  

 

14

 

EXHIBIT A

 

MODIFICATIONS TO MULTIFAMILY NOTE

 

The following modifications are made to the text of the Note that
precedes this Exhibit.

 

1.             Section 9(c)
is amended to include the following new subsection (vi):

 

(vi)          unintentional
written material misrepresentation by Borrower or any officer, director,
partner, member or employee of Borrower in connection with the application for
or creation of the Indebtedness or any request for any action or consent by
Lender.

 

2.             Section 9(f)(iii)
is deleted in its entirety and replaced with the following:

 

(iii)          fraud or
intentional written material misrepresentation by Borrower or any officer,
director, partner, member or employee of Borrower in connection with the
application for or creation of the Indebtedness or any request for any action
or consent by Lender.

 

3.             Section 9(c)
is amended to include the following new subsection (vii):

 

(vii)         Borrower fails
to be personally liable for any loss or damage suffered by Lender as the result
of the Property’s lack of direct access to a paved public road whose
maintenance is provided by the applicable governmental authority.

 

A-1EXHIBIT 10.28

 

FHLMC Loan No. 534389465

Palms of Monterrey

 

GUARANTY

MULTISTATE

(for use in
all Property jurisdictions except California)

REVISION
DATE 05/06/2005

 

This
Guaranty (“Guaranty”) is entered
into to be effective as of June 11,
2010, by the undersigned person(s) (the “Guarantor”
jointly and severally if more than one), for the benefit of HOLLIDAY FENOGLIO FOWLER, L.P., a Texas
limited partnership (the “Lender”).

 

RECITALS

 

A.                                   15250 Sonoma
Drive Fee Owner, LLC, a Delaware limited liability company (the “Borrower”) has requested that Lender make a
loan to Borrower in the amount of $19,700,000.00 (the “Loan”). 
The Loan will be evidenced by a Multifamily Note from Borrower to Lender
dated effective as of the effective date of this Guaranty (the “Note”). 
The Note will be secured by a Multifamily Mortgage, Deed of Trust, or
Deed to Secure Debt dated effective as of the effective date of the Note (the “Security Instrument”), encumbering the
Mortgaged Property  described in
the Security Instrument.

 

B.                                     As a condition
to making the Loan to Borrower, Lender requires that the Guarantor execute this
Guaranty.

 

NOW,
THEREFORE, in order to induce Lender to make the Loan to Borrower, and in
consideration thereof, Guarantor agrees as follows:

 

1.                                      Defined Terms.  “Indebtedness,”  “Loan Documents” and “Property
Jurisdiction” and other capitalized terms used but not defined in
this Guaranty shall have the meanings assigned to them in the Security
Instrument.

 

2.                                      Scope of Guaranty.

 

(a)                                  Guarantor hereby absolutely,
unconditionally and irrevocably guarantees to Lender:

 

(i)            the full and prompt payment
when due, whether at the Maturity Date or earlier, by reason of acceleration or
otherwise, and at all times thereafter, of each of the following:

 

(A)          a portion of the Indebtedness
equal to zero percent (0%) of the original principal balance of the Note (the “Base Guaranty”); and

 

(B)           in addition to the Base
Guaranty, all other amounts for which Borrower is personally liable under
Sections 9(c), 9(d) and 9(f)  of
the Note; and

 

(C)           all costs and expenses,
including reasonable Attorneys’ Fees and Costs incurred by Lender in enforcing
its rights under this Guaranty; and

 

 

(ii)           the full and prompt payment
and performance when due of all of Borrower’s obligations under Section 18
of the Security Instrument.

 

(b)                                 If the Base Guaranty stated
in Section 2(a)(i)(A) is 100 percent of the original principal balance of
the Note, then (i) the Base Guaranty shall mean and include the full and
complete guaranty of payment of the entire Indebtedness and the performance of
all Borrower’s obligations under the Loan Documents; and (ii) for so long
as the Base Guaranty remains in effect (there being no limit to the duration of
the Base Guaranty unless otherwise expressly provided in this Guaranty), the
obligations guaranteed pursuant to Sections 2(a)(i)(B), 2(a)(i)(C) and
Section 3 shall be part of, and not in addition to or in limitation of,
the Base Guaranty.

 

If
the Base Guaranty stated in Section 2(a)(i)(A) is less than 100 percent of
the original principal balance of the Note, then this Section 2(b) shall
be completely inapplicable and shall be treated as if not a part of this
Guaranty.

 

(c)                                  If Guarantor is not liable
for the entire Indebtedness, then all payments made by Borrower with respect to
the Indebtedness and all amounts received by Lender from the enforcement of its
rights under the Security Instrument and the other Loan Documents (except this
Guaranty) shall be applied first to the portion of the Indebtedness for which
neither Borrower nor Guarantor has personal liability.

 

3.                                      Additional Guaranty Relating to Bankruptcy.

 

(a)                                  Notwithstanding any
limitation on liability provided for elsewhere in this Guaranty, Guarantor
hereby absolutely, unconditionally and irrevocably guarantees to Lender the
full and prompt payment when due, whether at the Maturity Date or earlier, by
reason of acceleration or otherwise, and at all times thereafter, the entire
Indebtedness, in the event that:

 

(i)            Borrower voluntarily files
for bankruptcy protection under the United States Bankruptcy Code; or

 

(ii)           Borrower voluntarily becomes
subject to any reorganization, receivership, insolvency proceeding, or other
similar proceeding pursuant to any other federal or state law affecting debtor
and creditor rights; or

 

(iii)          an order of relief is
entered against Borrower pursuant to the United States Bankruptcy Code or other
federal or state law affecting debtor and creditor rights in any involuntary
bankruptcy proceeding initiated or joined in by a “Related Party.”

 

(b)                                 For purposes of this
Section, the term “Related Party” means:

 

(i)            Borrower or Guarantor; and

 

(ii)           any person or entity that
holds, directly or indirectly, any ownership interest in or right to manage
Borrower or Guarantor, including without limitation, any shareholder, member or
partner of Borrower or Guarantor; and

 

(iii)          any person or entity in
which any ownership interest (direct or indirect) or right to manage is held by
Borrower, Guarantor or any 

 

2

 

partner, shareholder or
member of, or any other person or entity holding an interest in, Borrower or
Guarantor; and

 

(iv)          any other creditor of
Borrower that is related by blood, marriage or adoption to Borrower, Guarantor
or any partner, shareholder or member of, or any other person or entity holding
an interest in, Borrower or Guarantor.

 

(c)                                  If Borrower, Guarantor or
any Related Party has solicited creditors to initiate or participate in any
proceeding referred to in this Section, regardless of whether any of the
creditors solicited actually initiates or participates in the proceeding, then
such proceeding shall be considered as having been initiated by a Related
Party.

 

4.                                      Guarantor’s Obligations Survive Foreclosure.  The obligations of Guarantor
under this Guaranty shall survive any foreclosure proceeding, any foreclosure
sale, any delivery of any deed in lieu of foreclosure, and any release of
record of the Security Instrument, and, in addition, the obligations of
Guarantor relating to Borrower’s obligations under Section 18 of the
Security Instrument shall survive any repayment or discharge of the
Indebtedness.  Notwithstanding the
foregoing, if Lender has never been a mortgagee-in-possession of or held title
to the Mortgaged Property, Guarantor shall have no obligation under this
Guaranty relating to Borrower’s obligations under Section 18 of the
Security Instrument after the date of the release of record of the lien of the
Security Instrument as a result of the payment in full of the Indebtedness on
the Maturity Date or by voluntary prepayment in full.

 

5.                                      Guaranty of Payment and Performance. 
Guarantor’s obligations under this Guaranty constitute an unconditional
guaranty of payment and performance and not merely a guaranty of collection.

 

6.                                      No Demand by Lender Necessary; Waivers by Guarantor.  The obligations of Guarantor
under this Guaranty shall be performed without demand by Lender and shall be
unconditional regardless of the genuineness, validity, regularity or
enforceability of the Note, the Security Instrument, or any other Loan
Document, and without regard to any other circumstance which might otherwise
constitute a legal or equitable discharge of a surety, a guarantor, a borrower
or a mortgagor.  Guarantor hereby waives,
to the fullest extent permitted by applicable law:

 

(a)                                  the benefit of all
principles or provisions of law, statutory or otherwise, which are or might be
in conflict with the terms of this Guaranty and agrees that Guarantor’s
obligations shall not be affected by any circumstances, whether or not referred
to in this Guaranty, which might otherwise constitute a legal or equitable
discharge of a surety, a guarantor, a borrower or a mortgagor;

 

(b)                                 the benefits of any right of
discharge under any and all statutes or other laws relating to a guarantor, a
surety, a borrower or a mortgagor, and any other rights of a surety, a
guarantor, a borrower or a mortgagor under such statutes or laws;

 

(c)                                  diligence in collecting the
Indebtedness, presentment, demand for payment, protest, all notices with
respect to the Note and this Guaranty which may be required by statute,
rule of law or otherwise to preserve Lender’s rights against Guarantor
under this Guaranty, including, but not limited to, notice of acceptance,
notice of any amendment of the Loan Documents, notice of the occurrence of any
default or Event of Default, notice of intent to accelerate, notice of
acceleration, notice of dishonor, notice of foreclosure, notice of protest, and
notice of the incurring by Borrower of any obligation or indebtedness;

 

3

 

(d)                                 all rights to cause a
marshalling of the Borrower’s assets or to require Lender to:

 

(i)            proceed against Borrower or
any other guarantor of Borrower’s payment or performance under the Loan
Documents (an “Other Guarantor”);

 

(ii)           proceed against any general
partner of Borrower or any Other Guarantor if Borrower or any Other Guarantor
is a partnership;

 

(iii)          proceed against or exhaust
any collateral held by Lender to secure the repayment of the Indebtedness; or

 

(iv)          pursue any other remedy it
may now or hereafter have against Borrower, or, if Borrower is a partnership,
any general partner of Borrower;

 

(e)                                  any right to object to the
timing, manner or conduct of Lender’s enforcement of its rights under any of
the Loan Documents; and

 

(f)                                    any right to revoke this
Guaranty as to any future advances by Lender under the terms of the Security
Instrument to protect Lender’s interest in the Mortgaged Property.

 

7.                                      Modification of Loan Documents.  At any time or
from time to time and any number of times, without notice to Guarantor and
without affecting the liability of Guarantor, Lender may:

 

(a)                                  extend the time for payment
of the principal of or interest on the Indebtedness or renew the Indebtedness
in whole or in part;

 

(b)                                 extend the time for Borrower’s
performance of or compliance with any covenant or agreement contained in the
Note, the Security Instrument or any other Loan Document, whether presently
existing or hereinafter entered into, or waive such performance or compliance;

 

(c)                                  accelerate the Maturity Date
of the Indebtedness as provided in the Note, the Security Instrument, or any
other Loan Document;

 

(d)                                 with Borrower, modify or
amend the Note, the Security Instrument, or any other Loan Document in any
respect, including, but not limited to, an increase in the principal amount;
and/or

 

(e)                                  modify, exchange, surrender
or otherwise deal with any security for the Indebtedness or accept additional
security that is pledged or mortgaged for the Indebtedness.

 

8.                                      Joint and Several Liability.  The obligations
of Guarantor (and each party named as a Guarantor in this Guaranty) and any
Other Guarantor shall be joint and several. 
Lender, in its sole and absolute discretion, may:

 

(a)                                  bring suit against
Guarantor, or any one or more of the parties named as a Guarantor in this
Guaranty, and any Other Guarantor, jointly and severally, or against any one or
more of them;

 

4

 

(b)                                 compromise or settle with
Guarantor, any one or more of the parties named as a Guarantor in this
Guaranty, or any Other Guarantor, for such consideration as Lender may deem
proper;

 

(c)                                  release one or more of the
parties named as a Guarantor in this Guaranty, or any Other Guarantor, from
liability; and

 

(d)                                 otherwise deal with
Guarantor and any Other Guarantor, or any one or more of them, in any manner,
and no such action shall impair the rights of Lender to collect from Guarantor
any amount guaranteed by Guarantor under this Guaranty.

 

9.                                      Subordination of Borrower’s Indebtedness to Guarantor.  Any indebtedness of Borrower
held by Guarantor now or in the future is and shall be subordinated to the
Indebtedness and Guarantor shall collect, enforce and receive any such
indebtedness of Borrower as trustee for Lender, but without reducing or
affecting in any manner the liability of Guarantor under the other provisions
of this Guaranty.

 

10.                               Waiver of Subrogation.  Guarantor shall
have no right of, and hereby waives any claim for, subrogation or reimbursement
against Borrower or any general partner of Borrower by reason of any payment by
Guarantor under this Guaranty, whether such right or claim arises at law or in
equity or under any contract or statute, until the Indebtedness has been paid
in full and there has expired the maximum possible period thereafter during
which any payment made by Borrower to Lender with respect to the Indebtedness
could be deemed a preference under the United States Bankruptcy Code.

 

11.                               Preference.  If any payment
by Borrower is held to constitute a preference under any applicable bankruptcy,
insolvency, or similar laws, or if for any other reason Lender is required to
refund any sums to Borrower, such refund shall not constitute a release of any
liability of Guarantor under this Guaranty. 
It is the intention of Lender and Guarantor that Guarantor’s obligations
under this Guaranty shall not be discharged except by Guarantor’s performance
of such obligations and then only to the extent of such performance.

 

12.                               Financial Statements.  Guarantor, from
time to time upon written request by Lender, shall deliver to Lender such
financial statements as Lender may reasonably require.

 

13.                               Assignment.  Lender may
assign its rights under this Guaranty in whole or in part and upon any such
assignment, all the terms and provisions of this Guaranty shall inure to the
benefit of such assignee to the extent so assigned.  The terms used to designate any of the
parties herein shall be deemed to include the heirs, legal representatives,
successors and assigns of such parties, and the term “Lender” shall also include any lawful
owner, holder or pledgee of the Note. 
Reference in this Guaranty to “person” or “persons” shall be deemed to
include individuals and entities.

 

14.                               Complete and Final Agreement.  This Guaranty
and the other Loan Documents represent the final agreement between the parties
and may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements. There are no unwritten oral agreements between the
parties.  All prior or contemporaneous
agreements, understandings, representations, and statements, oral or written,
are merged into this Guaranty and the other Loan Documents.  Guarantor acknowledges that Guarantor has
received a copy of the Note and all other Loan Documents.  Neither this Guaranty nor any of its
provisions may be waived, modified, amended, discharged, or terminated except
by a writing signed by the party against which the enforcement of the waiver,
modification, amendment, discharge, or termination is sought, and then only to
the extent set forth in that writing.

 

5

 

15.                               Governing Law.  This
Guaranty shall be governed by and enforced in accordance with the laws of the
Property Jurisdiction, without giving effect to the choice of law principles of
the Property Jurisdiction that would require the application of the laws of a
jurisdiction other than the Property Jurisdiction.

 

16.                               Jurisdiction; Venue.  Guarantor
agrees that any controversy arising under or in relation to this Guaranty may
be litigated in the Property Jurisdiction, and that the state and federal
courts and authorities with jurisdiction in the Property Jurisdiction shall
have jurisdiction over all controversies which shall arise under or in relation
to this Guaranty.  Guarantor irrevocably
consents to service, jurisdiction and venue of such courts for any such
litigation and waives any other venue to which it might be entitled by virtue of
domicile, habitual residence or otherwise. 
However, nothing herein is intended to limit Lender’s right to bring any
suit, action or proceeding relating to matters arising under this Guaranty
against Guarantor or any of Guarantor’s assets in any court of any other
jurisdiction.

 

17.                               Guarantor’s Interest in Borrower.  Guarantor
represents to Lender that Guarantor has a direct or indirect ownership or other
financial interest in Borrower and/or will otherwise derive a material
financial benefit from the making of the Loan.

 

18.                               STATE-SPECIFIC PROVISIONS:  N/A.

 

19.                               Residence; Community Property Provision.

 

(a)                                  Guarantor
represents and warrants that his/her state of residence is N/A.

 

(b)                                 Guarantor
warrants and represents that s/he is: 
N/A.

 

[            ]
single

[            ]
married

 

20.                               GUARANTOR AND LENDER EACH (A) AGREES NOT TO ELECT A TRIAL BY JURY
WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS GUARANTY OR THE RELATIONSHIP
BETWEEN THE PARTIES AS GUARANTOR AND LENDER THAT IS TRIABLE OF RIGHT BY A JURY
AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO
THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE.  THIS WAIVER OF RIGHT TO TRIAL BY JURY IS
SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF
COMPETENT LEGAL COUNSEL.

 

ATTACHED EXHIBIT.  The following
Exhibit is attached to this Guaranty:

 

x                                  Exhibit A                                               Modifications
to Guaranty

 

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

 

6

 

	
  WITNESS:

  	
   

  	
  BEHRINGER HARVARD OPPORTUNITY
  REIT II, INC., a Maryland corporation

  
	
   

  	
   

  	
   

  
	
  /s/
  David H. Paul

  	
   

  	
   

  
	
  Print
  Name:

  	
  David
  H. Paul

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Gerald J. Reihsen, III

  
	
  /s
  Gwenyth S. Wood

  	
   

  	
   

  	
  Name:

  	
  Gerald
  J. Reihsen, III

  
	
  Print
  Name: 

  	
  Gwenyth
  S. Wood

  	
   

  	
   

  	
  Title:  Executive Vice President – Corporate 

  
	
   

  	
   

  	
   

  	
   

  	
  Development
  & Legal

  

 

 

STATE
OF TEXAS

 

CITY/COUNTY
OF DALLAS, ss:

 

I
HEREBY CERTIFY that on this day, before me, an officer duly authorized in the
state aforesaid and in the county aforesaid to take acknowledgments, personally
appeared Gerald J. Reihsen, III , to me known to be the person described in and
who executed the foregoing instrument as the Executive Vice President —
Corporate Development & Legal of Behringer Harvard Opportunity REIT II,
Inc., a Maryland corporation, and acknowledged to me that he/she as such
officer of the corporation, being authorized to do so, executed the foregoing
instrument for the purposes therein contained in the name of such corporation
by himself/herself as Executive Vice President — Corporate Development &
Legal.

 

Witness
my hand and official seal in the county and state aforesaid, this 8th day of
June, 2010.

 

 

	
   

  	
  /s/ Authorized Signatory

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
  My
  Commission Expires: 7/26/2012

  	
   

  

 

7

 

Name and Address of Guarantor:

 

	
  Name:

  	
   

  	
  Behringer Harvard Opportunity REIT II, Inc.

  
	
  Address:

  	
   

  	
  15601
  Dallas Parkway, Suite 600

  
	
   

  	
   

  	
  Addison,
  Texas 75001

  

 

8

 

EXHIBIT A

 

MODIFICATIONS TO GUARANTY

 

The following modifications are made to the text of the Guaranty that
precedes this Exhibit:

 

1.             Sections
3(b)(ii) and (iii) are revised to read as follows:

 

(ii)           any person or entity that holds, directly or
indirectly, a 10% or greater ownership
interest in or right to manage or to control any of the
businesses or affairs of Borrower or Guarantor; and

 

(iii)          any person or entity in which a 10% or
greater ownership interest (direct or indirect) or right to
manage or to control any of the businesses or affairs
is held by Guarantor or any partner, shareholder or member of, or any other
person or entity holding a majority interest in, Borrower or Guarantor; and

 

A-1

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