Document:

exv10w17

Exhibit 10.17

	 	 	 	 	 	 	 

	PREPARED BY:

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Anderson, McCoy & Orta, P.C.

	 	 	)	 	 	 
	100 N. Broadway, Suite 2600

	 	 	)	 	 	 
	Oklahoma City, Oklahoma 73102

	 	 	)	 	 	 
	Attn: Mike Anderson

	 	 	)	 	 	 
	Loan No. 70-0400857

	 	 	)	 	 	 

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE
FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS
FILED FOR RECORD IN THE PUBLIC RECORDS:

1) YOUR SOCIAL SECURITY NUMBER, OR

2) YOUR DRIVER’S LICENSE NUMBER.

ASSUMPTION AGREEMENT

     This Assumption Agreement (“Assumption
Agreement”) is made this 25th of February,
2011, by U.S. Bank National Association, as Trustee for Morgan Stanley Capital I Inc., Commercial
Mortgage Pass-Through Certificates, Series 2006-HQ8 (“Noteholder”), AmREIT Lake Houston, LP, a
Texas limited partnership (“Borrower”), AmReit Monthly Income & Growth Fund, Ltd., a Texas limited
partnership (“Original Guarantor”), AmREIT Market at Lake Houston, LP, a Texas limited partnership
(“Assumptor”), and AmREIT, Inc., a Maryland corporation (“New Guarantor”).

RECITALS

	A.	 	Noteholder’s predecessor in interest, Morgan Stanley Mortgage Capital Inc., a New York
corporation (“Original Lender”), made a loan to Borrower in the original principal amount of
Fifteen Million Six Hundred Seventy-Five Thousand and no/100 Dollars ($15,675,000.00)
(“Loan”), under the terms and provisions set forth in the following loan documents, all of
which are dated as of December 12, 2005, unless otherwise noted:

	 	1.	 	Promissory. Note (“Note”) in the original principal amount of the Loan, made by
Borrower and payable to Original Lender;

	 	2.	 	Deed of Trust and Security Agreement executed by Borrower to Warren F. Miller,
as trustee, for the benefit of Original Lender which secures the Note and other
obligations of Borrower (“Security Instrument”), and which Security Instrument was
recorded on December 12, 2005, as Document No. Y958208 with the Harris County Clerk,
State of Texas (“Official Records”), the Original Lender’s interest under which was
assigned to Noteholder by instrument recorded on May 31, 2006, as Document No. Z335216,
in the Official Records. The land, improvements and other real property which are
subject to the Security Instrument are hereinafter referred to as the “Property” and
the equipment, machinery and other personal property which are subject to the Security
Instrument are hereinafter referred to as the “Collateral”;

 

 

	 	3.	 	Assignment of Leases and Rents executed by Borrower, which was recorded on
December 12, 2005, as Document No. Y958210, with the Official Records, the Original
Lender’s interest under which was assigned to Noteholder by instrument recorded on May
31, 2006, as Document No. X335216 in the Official Records;

	 	4.	 	Guaranty of Recourse Obligations executed by Original Guarantor (“Guaranty”);

	 	5.	 	Environmental Indemnity Agreement executed by Borrower and Original Guarantor
(“Environmental Agreement”);

	 	6.	 	Conditional Assignment of Management Agreement, executed by Borrower and AmREIT
Realty Investment Corporation, a Texas corporation;

	 	7.	 	Reserve and Security Agreement executed by Borrower (“Reserve and Security
Agreement”);

	 	8.	 	Restricted Account Agreement executed by Borrower, Wells Fargo Bank, N.A.
(“Restricted Account Bank”) and Original Lender (“Restricted Account Agreement”);

	 	9.	 	Cash Management Agreement executed by Borrower, Original Lender and Manager;

	 	10.	 	UCC-1 Financing Statement filed on December 12, 2005, as Document No. Y958211
with the Official Records (“County UCC”); and

	 	11.	 	UCC-1 Financing Statement filed on December 19, 2005, as Instrument
50038570068, with the Texas Secretary of State (“State UCC”).
	 
	 	 	 	The above documents and any other loan documents executed by Borrower, including, in
each case, any prior amendments thereto, together with this Assumption Agreement are
hereinafter collectively defined as the “Loan Documents”,

	B.	 	As of February 18, 2011:
	 
	 	 	The principal balance outstanding under the Note was $15,675,000.00;

	 	1.	 	Accrued interest on the Note has been paid through January 31, 2011;

	 	2.	 	The balance in the tax escrow reserve (as defined in Section 3.4 of the
Security Instrument) was $203,832.12;

	 	3.	 	The balance in the insurance escrow reserve (as defined in Section 3.3 of the
Security Instrument) was $-0-;

	 	4.	 	The balance in the replacement reserve (as defined in the Reserve and Security
Agreement) was $-0-; and

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	 	5.	 	The balance in the tenant improvement and leasing commission escrow reserve (as
defined in the Reserve and Security Agreement) was $-0-.

	C.	 	Borrower has sold and conveyed the Property and the Collateral to Assumptor, or is about to
sell and convey the Property and the Collateral to Assumptor, and both parties desire to
obtain from Noteholder a waiver of any right Noteholder may have under the Loan Documents to
accelerate the Maturity Date of the Note by virtue of such conveyance.

	D.	 	Subject to the terms and conditions hereof, Noteholder is willing to consent to the sale and
conveyance of the Property and the Collateral, and to waive any right of acceleration of the
Maturity Date of the Note upon assumption by Assumptor of all obligations of Borrower under
the Loan Documents.

NOW THEREFORE, FOR VALUABLE CONSIDERATION, including, without limitation, the mutual covenants and
promises contained herein, the parties agree as follows:

	 	1.	 	Incorporation. The foregoing recitals are incorporated herein by this
reference.

	 	2.	 	Assumption Fee. As consideration for Noteholder’s execution of this Assumption
Agreement and in addition to any other sums due hereunder, Borrower and Assumptor agree
to pay Noteholder or Noteholder’s servicer(s) (all as set forth in the escrow
instructions to be executed in connection with the closing of this assumption) an
assumption fee of $25,000.00, due on execution of this Assumption Agreement by
Noteholder.

	 	3.	 	Conditions Precedent. The following are conditions precedent to Noteholder’s
obligations under this Assumption Agreement:

	 	a.	 	The irrevocable commitment of Fidelity National Title Insurance
Company (“Title Company”) to issue CLTA 110.5, CLTA 104.8 and CLTA 111.4 (or
equivalent) endorsements to Title Company’s Title Policy dated December 12,
2005 (“Existing Title Policy”), in each case in form and substance acceptable
to Noteholder and without deletions or exceptions other than as expressly
approved by Noteholder in writing, or the irrevocable commitment of a title
company approved by Noteholder to issue a new policy identical to Existing
Title Policy, insuring Noteholder that the priority and validity of the
Security Instrument has not been and will not be impaired by this Assumption
Agreement, the conveyance of the Property, or the transaction contemplated
hereby;

	 	b.	 	Receipt and approval by Noteholder of: (i) the executed
original of this Assumption Agreement; (ii) an executed original of a
Memorandum of Assumption Agreement in the form attached hereto as EXHIBIT
A and otherwise in form and substance acceptable to Noteholder (“Memorandum
of Assumption Agreement”); and (iii) any other documents and agreements which
are required pursuant to this Assumption Agreement, in form and content
acceptable to Noteholder;

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	 	c.	 	Recordation in the Official Records of the Memorandum of
Assumption Agreement, together with such other documents and agreements, if
any, required pursuant to this Assumption Agreement or which Noteholder has
requested to be recorded or filed;

	 	d.	 	Delivery to Noteholder of UCC-1 Financing Statements in proper
form for filing in the appropriate jurisdictions as determined by Noteholder,
which Assumptor expressly authorizes Noteholder to file;

	 	e.	 	Execution and delivery to Noteholder by New Guarantor of a
Guaranty of Recourse Obligations (“New Guaranty”) in favor of Noteholder and in
form and substance acceptable to Noteholder, pursuant to which New Guarantor
irrevocably guarantees payment for certain matters under the Note as more
specifically set forth in the New Guaranty;

	 	f.	 	Execution and delivery to Noteholder by Assumptor and New
Guarantor of Environmental Indemnity Agreement (“New Environmental Agreement”)
in favor of Noteholder and in form and substance acceptable to Noteholder;

	 	g.	 	Delivery to Noteholder of the organizational documents and
evidence of good standing of Assumptor, its constituent parties, and of New
Guarantor, together with such resolutions or certificates as Noteholder may
require, in form and content acceptable to Noteholder, authorizing the
assumption of the Loan and executed by the appropriate persons and/or entities
on behalf of Assumptor and New Guarantor;

	 	h.	 	The representations and warranties contained herein are true
and correct;

	 	i.	 	Receipt by Noteholder of certificates of insurance evidencing
Assumptor’s casualty insurance policy (ACORD 27) and comprehensive liability
insurance policy (ACORD 25) with respect to the Property, each in form and
amount satisfactory to Noteholder, with the annual premium for same to be paid
at closing;

	 	j.	 	Receipt by Noteholder of a copy of the special warranty deed by
which title to the Property will be conveyed to Assumptor, and the purchase and
sale agreement documenting the sale of the Property to Assumptor;

	 	k.	 	Receipt by Noteholder of an executed assignment of the
purchaser’s interest in the purchase and sale agreement for the Property from
the purchaser named therein to Assumptor;

	 	l.	 	Receipt by Noteholder of an executed Form W-9 for Assumptor;

	 	m.	 	Receipt by Noteholder of a copy of the new property management
agreement for the Property in form and substance, and with a manager,

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	 	 	 	acceptable to Noteholder, along with an executed assignment of management
agreement acceptable to Noteholder;

	 	n.	 	Noteholder shall have received such opinions of counsel as may
be required by Noteholder’s counsel or the Loan Documents, addressed to
Noteholder with respect to the enforceability, due execution and compliance of
this Assumption Agreement, the transfer to Assumptor, and the transactions
referenced herein with the provisions of the Internal Revenue Code as the same
pertain to real estate mortgage investment conduits;

	 	o.	 	Noteholder shall have received opinions of counsel to Assumptor
and Guarantor opining with respect to (i) the validity and enforceability of
this Assumption Agreement and the terms and provisions hereof, and any other
agreement ,executed in connection with the transactions contemplated hereby,
(ii) the authority of the Assumptor and New Guarantor (and any constituents
thereof), to execute and deliver this Assumption Agreement and perform their
obligations under the Note and other Loan Documents, and (iii) such other
matters as reasonably requested by the Noteholder;

	 	p.	 	Payment of the assumption fee provided for in Section 2 above;

	 	q.	 	Borrower’s or Assumptor’s reimbursement to Noteholder of
Noteholder’s costs and expenses incurred in connection with this Assumption
Agreement and the transactions contemplated hereby, including, without
limitation, title insurance costs, escrow and recording fees, attorneys’ fees,
appraisal, engineers’ and inspection fees and documentation costs and charges,
whether such services are furnished by Noteholder’s employees, agents or
independent contractors; and,

	 	r.	 	Receipt of a current site inspection shall be to Noteholder to
its satisfactory review.

	 	4.	 	Effective Date. The effective date of this Assumption Agreement shall
be the date the Memorandum of Assumption Agreement is recorded in the Official Records
(“Effective Date”).

	 	5.	 	Assumption. Assumptor hereby assumes and agrees to pay when due all
sums due or to become due or owing under the Note, the Security Instrument and the
other Loan Documents and shall hereafter faithfully perform all of Borrower’s
obligations under and be bound by all of the provisions of the Loan Documents and
assumes all liabilities of Borrower under the Loan Documents as if Assumptor were an
original signatory thereto. The execution of this Assumption Agreement by Assumptor
shall be deemed its execution of the Note, the Security Instrument and the other Loan
Documents.

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	 	6.	 	Partial Release of Borrower; Release of Noteholder. Noteholder hereby
releases (on the Effective Date) Borrower from liability under the Loan Documents other
than this Assumption Agreement; provided however, that the parties hereby acknowledge
and agree that Borrower is expressly not released from and nothing contained herein is
intended to limit, impair, terminate or revoke, any of Borrower’s obligations with
respect to the matters set forth in Article 11 of the Note, to the extent the same
arise out of or in connection with any act or omission occurring on or before the
Effective Date (the “Retained Obligations”), and that such obligations shall continue
in full force and effect in accordance with the terms and provisions thereof and
hereof. Borrower’s obligations under the Loan Documents with respect to the Retained
Obligations shall not be discharged or reduced by any extension, amendment, renewal or
modification to, the Note, the Security Instrument or any other Loan Documents,
including, without limitation, changes to the terms of repayment thereof,
modifications, extensions or renewals of repayment dates, releases or subordinations of
security in whole or in part, changes in the interest rate or advances of additional
funds by Noteholder in its discretion for purposes related to those set forth in the
Loan Documents. Each of Borrower, Original Guarantor, Assumptor and New Guarantor
hereby fully releases (on the Effective Date) Noteholder and any servicer(s) of the
Loan from any liability of any kind arising out of or in connection with the Loan or
the Loan Documents other than this Assumption Agreement. Each of Borrower, Original
Guarantor, Assumptor and New Guarantor after consultation with its respective attorney,
hereby expressly waives the benefits of the provisions of applicable law, if any, which
provides to the effect that:

	 	 	 	“A general release does not extend to claims which the
creditor does not know or suspect to exist in his or her
favor at the time of executing the release which, if known
by him or her, must have materially affected his or her
settlement with the debtor.”

	 	 	 	From time to time without first requiring performance on the part of Assumptor,
Noteholder may look to and require performance by Borrower of all Retained
Obligations. Borrower waives all presentments, demands for performance, notices of
nonperformance, protests, notices of protest and notices of dishonor of all or any
part of the indebtedness now existing or hereafter arising under the Loan Documents.
	 
	 	7.	 	Confirmation of Guaranty; Partial Release of Original Guarantor.
Nothing contained herein is intended to limit, impair, terminate or revoke Original
Guarantor’s obligations under the Guaranty to the extent the same arise out of or in
connection with any act or omission occurring on or before the Effective Date and such
obligations shall continue in full force and effect in accordance with the terms and
provisions of the Guaranty; provided, however, Noteholder hereby releases Original
Guarantor from its obligations under the Guaranty to the extent

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	 	 	 	the same arise out of or in connection with any act or omission occurring after the
Effective Date.

	 	8.	 	Representations and Warranties.

	 	a.	 	Assignment. Borrower and Assumptor each hereby
represents and warrants to Noteholder that Borrower has irrevocably and
unconditionally transferred and assigned to Assumptor all of Borrower’s right,
title and interest in and to:

	 	i.	 	The Property and the Collateral;

	 	ii.	 	The Loan Documents;

	 	iii.	 	All leases related to the Property or the
Collateral;

	 	iv.	 	All rights as named insured under all casualty
and liability insurance policies (and all endorsements in connection
therewith) relating to the Property or the Collateral (unless, but only
to the extent that, Assumptor is obtaining its own such insurance
policies);

	 	v.	 	All reciprocal easement agreements, operating
agreements, and declarations of conditions, covenants and restrictions
related to the Property;

	 	vi.	 	All prepaid rents and security deposits, if
any, held by Borrower in connection with leases of any part of the
Property or the Collateral; and

	 	vii.	 	All funds, if any, deposited in impound
accounts held by or for the benefit of Noteholder pursuant to the terms
of the Loan Documents.

	 	 	 	Borrower and Assumptor each hereby further represents and warrants to
Noteholder that no consent to the transfer of the Property and the
Collateral to Assumptor is required under any agreement to which Borrower or
Assumptor is a party, including, without limitation, under any lease,
operating agreement, mortgage or security instrument (other than the Loan
Documents), or if such consent is required, that the parties have obtained
all such consents.
	 
	 	b.	 	No Defaults. Assumptor and Borrower each hereby
represents and warrants, to the best of its respective knowledge, that no
default, event of default, breach or failure of condition has occurred, or
would exist with notice or the lapse of time or both, under any of the Loan
Documents, as modified by this Assumption Agreement, and all representations
and

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	 	 	 	warranties herein and in the other Loan Documents are true and correct in
all material respects.

	 	c.	 	Loan Documents. Assumptor represents and warrants to
Noteholder that Assumptor has actual knowledge of all terms and conditions of
the Loan Documents, and agrees that Noteholder has no obligation or duty to
provide any information to Assumptor regarding the terms and conditions of the
Loan Documents. Assumptor further agrees that all representations, agreements
and warranties in the Loan Documents regarding Borrower, its status, authority,
financial condition and business shall apply to Assumptor as well as to
Borrower, as though Assumptor were the borrower originally named in the Loan
Documents. Assumptor further understands and acknowledges that, except as
expressly provided in a writing executed by Noteholder, Noteholder has not
waived any right of Noteholder or obligation of Borrower or Assumptor under the
Loan Documents and Noteholder has not agreed to any modification of any
provision of any Loan Document or to any extension of the Loan.

	 	d.	 	Financial Statements. Assumptor represents and warrants
to Noteholder that the financial statements of Assumptor, of each general
partner and of each New Guarantor, if any, previously delivered by Borrower,
Assumptor or any of such parties to Noteholder: (i) are materially complete and
correct; (ii) present fairly the financial condition of each of such parties;
and (iii) have been prepared in accordance with generally accepted accounting
principles consistently applied or other accounting standards approved by
Noteholder. Assumptor further represents and warrants to Noteholder that, since
the date of such financial statements, there has been no material adverse
change in the financial condition of any of such parties, nor have any assets
or properties reflected on such financial statements been sold, transferred,
assigned, mortgaged, pledged or encumbered except as previously disclosed in
writing by Assumptor to Noteholder and approved in writing by Noteholder.

	 	e.	 	Reports. Assumptor represents and warrants to
Noteholder that, to the best of its knowledge, all reports, documents,
instruments and information delivered to Noteholder in connection with
Assumptor’s assumption of the Loan: (i) are correct and sufficiently complete
to give Noteholder accurate knowledge of their subject matter; and (ii) do not
contain any misrepresentation of a material fact or omission of a material fact
which omission makes the provided information misleading.

	 	f.	 	Assumptor Location. Assumptor represents and warrants
that its chief executive office (or principal residence, if applicable) is
located at the following address: 8 Greenway Plaza, Suite 1000, Houston, TX
77046. Assumptor represents and warrants that its state of formation is Texas.
All organizational documents of Assumptor delivered to Noteholder are complete
and accurate in every respect. Assumptor’s legal name is exactly

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	 	 	 	as shown on page one of this Assumption Agreement. Assumptor shall not
change Assumptor’s name or, as applicable, Assumptor’s chief executive
office, Assumptor’s principal residence or the jurisdiction in which
Assumptor is organized, without giving Noteholder at least 30 days’ prior
written notice.

	 	g.	 	No Adverse Change. Assumptor and New Guarantor
represent and warrant to Noteholder that since the date of the financial
statements for Assumptor and New Guarantor submitted by Assumptor in connection
with its application to assume the Loan, there has occurred no material adverse
change in the financial condition of Assumptor or New Guarantor.

	 	h.	 	No Pledge of Equity Interests. Assumptor and New
Guarantor represent and warrant to Noteholder that no equity interest in
Assumptor has been pledged, hypothecated or otherwise encumbered as security
for any obligation, and that no portion of the capital contributed to
Assumptor, directly or indirectly, in connection with Assumptor’s acquisition
of the Property consists of borrowed funds.

	 	i.	 	Embargoed Person. Assumptor and New Guarantor represent
and warrant that none of the funds or other assets of Assumptor or New
Guarantor constitute property of, or are beneficially owned, directly or
indirectly, by any person, entity or government subject to trade restrictions
under U.S. law, including but not limited to, the USA PATRIOT Act (including
the anti-terrorism provisions thereof), the International Economic Powers Act,
50 U.S.C. §§ 1701, et. seq., the Trading with the Enemy Act, 50 U.S.C. App. 1
et. seq., and any Executive Orders or regulations promulgated thereunder,
including those related to Specially Designated Nationals and Specially
Designated Global Terrorists (“Embargoed Person”) and further warrant and
represent that no Embargoed Person has any interest of any nature whatsoever in
Assumptor or New Guarantor with the result that the investment in Assumptor
(whether directly or indirectly) is prohibited by law. Notwithstanding the
aforementioned, Assumptor and New Guarantor shall have no duty to investigate
or confirm that any shareholders of New Guarantor are in compliance with the
foregoing and any violations by such shareholders shall not be a breach
hereunder.

	 	j.	 	Section 1031 of the Internal Revenue Code. Assumptor
and New Guarantor informed Noteholder that Assumptor is acquiring the Property
and assuming the Loan as part of a transaction which Assumptor and New
Guarantor anticipate will comply with the provisions of Section 1031 of the
Internal Revenue Code allowing the deferment of any taxable gain or loss as the
exchange of like kind property. Assumptor and New Guarantor acknowledge that
they have not relied on any advice, representations or statements of Noteholder
or Wells Fargo Bank National Association, or their respective employees or
agents concerning the tax, legal or investment consequences of Assumptor’s
acquisition of the Property and

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	 	 	 	the assumption of the Loan, including, without limiting the generality of
the foregoing, whether the acquisition of the Property and assumption of the
Loan will Comply with the requirements of Section 1031 of the Internal
Revenue Code or whether the Assumptor’s and New Guarantor’s investment in
the Property is suitable, but instead Assumptor and New Guarantor have
obtained such tax, legal and investment advice as to the effect of
Assumptor’s acquisition of the Property and assumption of the Loan from
their own legal and other financial advisors.

	 	9.	 	Waiver of Acceleration. Noteholder hereby consents to the sale and
conveyance of the Property and Collateral and agrees that it shall not exercise its
right to cause all sums secured by the Security Instrument to become immediately due
and payable because of the conveyance of the Property and the Collateral from Borrower
to Assumptor; provided, however, Noteholder reserves its right under the terms of the
Security Instrument or any other Loan Document to accelerate all principal and interest
in the event of any subsequent sale, transfer, encumbrance or other conveyance of the
Property, the Collateral or any interest in Assumptor, except as permitted by the Loan
Documents.

	 	10.	 	Hazardous Materials. Without in any way limiting any other provision of
this Assumption Agreement, Assumptor and Borrower expressly reaffirm as of the date
hereof, and Assumptor reaffirms continuing hereafter: (a) each and every representation
and warranty in the Loan Documents respecting “Hazardous Materials”; and (b) each and
every covenant and indemnity in the Loan Documents respecting “Hazardous Materials”.

	 	11.	 	Multiple Parties. If more than one person or entity has signed this
Assumption Agreement as Assumptor or Borrower, then all references in this Assumption
Agreement to Assumptor or Borrower shall mean each and all of the persons so signing,
as applicable. The liability of all persons and entities signing shall be joint and
several with all others similarly liable.

	 	12.	 	Confirmation of Security Interest. Nothing contained herein shall
affect or be construed to affect any lien, charge or encumbrance created by any Loan
Document or the priority of that lien, charge or encumbrance. All assignments and
transfers by Borrower to Assumptor are subject to any security interest(s) held by
Noteholder.

	 	13.	 	Notices. All notices to be given to Assumptor pursuant to the Loan
Documents shall be addressed as follows:

 

AmREIT Market at Lake Houston, LP

8 Greenway Plaza, Suite 1000

Houston, TX 77046

Attn: Chad Braun

Telephone: 713-860-4924

Telecopy: 713-850-0498

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	 	14.	 	Integration; Interpretation. The Loan Documents, including this
Assumption Agreement, contain or expressly incorporate by reference the entire
agreement of the parties with respect to the matters contemplated herein and supersede
all prior negotiations. The Loan Documents shall not be modified except by written
instrument executed by Noteholder and Assumptor. Any reference in any of the Loan
Documents to the property or the Collateral shall include all or any parts of the
Property or the Collateral.

	 	15.	 	Successors and Assigns. This Assumption Agreement is binding upon and
shall inure to the benefit of the heirs, successors and assigns of the parties but
subject to all prohibitions of transfers contained in any Loan Document.

	 	16.	 	Attorneys’ Fees; Enforcement. If any attorney is engaged by Noteholder
to enforce, construe or defend any provision of this Assumption Agreement, or as a
consequence of any default under or breach of this Assumption Agreement, with or
without the filing of any legal action or proceeding, Assumptor shall pay to
Noteholder, upon demand, the amount of all attorneys’ fees and costs reasonably
incurred by Noteholder in connection therewith, together with interest thereon from the
date of such demand at the rate of interest applicable to the principal balance of the
Note as specified therein.

	 	17.	 	Two-Time Right of Transfer of Property. The parties acknowledge that
Article 8 (section 8.4) of the Security Instrument provides that Noteholder shall, two
times only, consent to the voluntary, sale or exchange of all of the Property, all
subject, however, to the terms and conditions set forth therein. The parties agree that
this Assumption Agreement and the actions to be taken as contemplated herein shall
constitute one such consent.

	 	18.	 	Miscellaneous.

	 	a.	 	This Assumption Agreement shall be governed and interpreted in
accordance with the laws of the jurisdiction(s) specified in the other Loan
Documents as governing the other Loan Documents. In any action brought or
arising out of this Assumption Agreement, Borrower and Assumptor, and general
partners, members and joint venturers of them, hereby consent to the
jurisdiction of any state or federal court having proper venue as specified in
the other Loan Documents and also consent to the service of process by any
means authorized by the law of such jurisdiction(s). Except as expressly
provided otherwise herein, all terms used herein shall have the meaning given
to them in the Loan Documents. Time is of the essence of each term of the Loan
Documents, including this Assumption Agreement. If any provision of this
Assumption Agreement or any of the other Loan Documents shall be determined by
a court of competent jurisdiction to be invalid, illegal or unenforceable, that
portion shall be deemed severed therefrom and the remaining parts shall remain
in full force as though the invalid, illegal, or unenforceable portion had not
been a part thereof.

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	 	b.	 	Notwithstanding anything to the contrary herein, this Agreement
is subject to the provisions of Section Article 11 of the Note as if such
provisions were set forth at length herein.

	 	19.	 	Counterparts. This Assumption Agreement may be executed in any number
of counterparts, each of which when executed and delivered will be deemed an original
and all of which taken together will be deemed to be one and the same instrument.

	 	20.	 	Restricted Account Agreement. The Restricted Account Agreement is modified as
follows:

	 	i.	 	The defined terms “Bank”, “Noteholder” and
“Borrower” as used in the Restricted Account Agreement shall refer to
the Restricted Account Bank, the Noteholder and the Assumptor,
respectively as those terms are defined herein.

	 	ii.	 	Section 3 of the Restricted Account Agreement
is modified by deleting the third sentence thereof and substituting the
following: “The Restricted Account shall be assigned the federal tax
identification number of Assumptor, which is 27-4534898.”

	 	iii.	 	Borrower’s addresses for notices set forth in
the Restricted Account Agreement are deleted and the notice addresses
for Assumptor and Noteholder set forth herein are substituted therefor.

	 	 	 	Restricted Account Bank confirmed its agreement to the foregoing modifications to
the Restricted Account Agreement by separate letter agreement for the benefit of
Borrower, Assumptor and Noteholder.

IN ACCORDANCE WITH SECTION 26,02 OF THE BUSINESS AND COMMERCE CODE, THE PARTIES ACKNOWLEDGE THAT
THE WRITTEN LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

[SIGNATURE PAGES FOLLOW]

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     IN WITNESS WHEREOF, Noteholder, Assumptor, New Guarantor, Borrower, and Original Guarantor
have caused this Assumption Agreement to be duly executed as of the date first above written.

	 	 	 	 	 
	 	NOTEHOLDER: 

U.S. Bank National Association, as Trustee for Morgan
Stanley Capital I Inc., Commercial Mortgage
Pass-Through Certificates, Series 2006- HQ8

 	 

	 	 	 	 	 
	 	By:  	 Wells Fargo Bank, National Association, as
 	 
	 	 	Master Servicer under the Pooling and Servicing 	 
	 	 	Agreement dated as of March 1, 2006, by and
among Morgan Stanley Capital Inc., Wells Fargo
Bank, National  Association, J. E. Robert
Company Inc., U.S. Bank National Association and
Bank of America, as successor by merger to
Lasalle Bank National Association 	 

	 	 	 	 	 
	 	    By:  	/s/
Wayne Ventus, Jr. 	 
	 	 	Name:  Wayne Ventus, Jr.	 
	 	 	Title:  Assistant Vice
President	 

13

 

	 	 	 	 	 	 	 	 	 

	 	 	ASSUMPTOR: 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	AmREIT Market at Lake Houston, LP, a Texas limited

partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	AmREIT Market at Lake Houston GP, LLC, a Texas

limited liability company, its general partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	    /s/ Chad Braun
 

Name: Chad Braun 

Title: Vice President
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	NEW GUARANTOR:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	AmREIT, Inc., a Maryland corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	    /s/ Chad Braun
	 	 	 	 	 
	 	 	 	 	Name: Chad Braun
	 	 	 	 	Title: Vice President

14

 

	 	 	 	 	 
	 	BORROWER:

AmREIT Lake Houston, LP, a Texas limited partnership

 	 
	 	By:  	/s/
Chad C. Braun 	 
	 	 	Name:  	Chad C. Braun 	 
	 	 	Title:  	Vice President 	 
	 
	 	ORIGINAL GUARANTOR:

AmREIT Monthly Income & Growth Fund, Ltd., a Texas

limited partnership

 	 
	 	By:  	/s/
Chad C. Braun 	 
	 	 	Name:  	Chad C. Braun 	 
	 	 	Title:  	Vice President 	 

15exv10w18

Exhibit 10.18

PROMISSORY NOTE

DEFINED TERMS

	 	 	 

	Execution Date:

	 	City and State of Signing:
	December
29, 2010

	 	Houston, Texas
	 
	 	 
	Loan Amount: Twenty-Three Million Two
Hundred Fifty Thousand and No/100
Dollars ($23,250,000.00) to be
disbursed to Borrower on the Advance
Date

	 	Interest Rate:

3.45% per annum.

Borrower: AMREIT PLAZA IN THE PARK, LP, A TEXAS LIMITED PARTNERSHIP

			
	Borrower’s Address:	 	AmREIT Plaza in the Park, LP

c/o AmREIT

8 Greenway Plaza, Suite 1000

Houston, Texas 77046

Holder: METLIFE BANK, N.A., A NATIONAL BANKING ASSOCIATION

			
	Holder’s Address:	 	MetLife Bank, N.A.

c/o Metropolitan Life Insurance Company

10 Park Avenue

Morristown, New Jersey 07962

Attn: Senior Vice President

         Real Estate Investments

	and	 	
		 	c/o Metropolitan Life Insurance Company

Two Lincoln Centre

5420 LBJ Freeway, Suite 1310

Dallas, Texas 75240

Attn: Director and OIC

	 	 	 

	Maturity Date: January 1, 2016
	 	Advance Date: The date funds are disbursed to
Borrower.

	 	 	 

	Interest Only Period: The period from
the Advance Date and ending on the
last day of the thirty-sixth (36th)
month thereafter.
	 	Liable Parties: As of the Execution Date, solely:

                          AmREIT, Inc.,

                          a Maryland corporation

                          8 Greenway Plaza, Suite 1000

                          Houston, Texas 77046

	 	 	 

	Interest Only Monthly Installment:
Equal monthly installments of interest
only at the Interest Rate each in the
amount of $66,843.75.

Principal and Interest Monthly
Installment: Equal monthly
installments of principal and interest
at the Interest Rate each in the
amount of $103,755.05. The Principal
and Interest Monthly Installment is
based upon an amortization period of
30 years.

Late Charge: An amount equal to four
cents ($.04) for each dollar that is
overdue.

Default Rate: An annual rate equal to
the Interest Rate plus four percent
(4%).
	 	Permitted Prepayment Period: The Loan may not be
prepaid in whole or in part at any time prior to
the Maturity Date except as follows: During the
90-day period prior to the Maturity Date,
Borrower may prepay the Loan in whole but not in
part without a Prepayment Fee on ‘not less than
30 days; prior written notice (“Prepayment
Notice”). In addition, commencing on the first
day of the twenty fifth (25th) month following
the Advance Date, Borrower may prepay the Loan,
in whole but not in part, with a Prepayment Fee
on not less than a 30-day Prepayment Notice.

 

 

Note: This Promissory Note. Deed of Trust: Deed of Trust, Security Agreement, and Fixture
Filing dated as of the Execution Date granted by Borrower to the Trustee named in the Deed of
Trust for the benefit of Holder. Loan Documents: This Note, the Deed of Trust and any other
documents related to this Note and/or the Deed of Trust, and all renewals, amendments,
modifications, restatements and extensions of these documents, except the Indemnity Agreement
and the Guaranty. Guaranty: The Guaranty Agreement dated as of the Execution Date and
executed by Liable Parties in favor of Holder. Indemnity Agreement: The Unsecured Indemnity
Agreement dated as of the Execution Date and executed by Borrower in favor of Holder.

Other Borrower: AmREIT C-Ranch, LP, a Texas limited partnership. Other Property: The real and
personal property collectively defined as the “Property” in the Other Deed of Trust. Other
Loan Documents: The Other Note, the Other Deed of Trust and any other documents related to
the Other Note and/or the Other Deed of Trust, and all renewals, amendments, modifications,
restatements and extensions of these documents, except the Other Indemnity Agreement and the
Other Guaranty. Other Note: Promissory Note made by Other Borrower, dated as of the Execution
Date, payable to the order of Holder in the principal amount of Nine Million Seven Hundred
Fifty Thousand and No/ 100 Dollars ($9,750,000.00). Other Deed of Trust: Deed of Trust,
Security Agreement and Fixture Filing dated as of the Execution Date and executed by Other
Borrower in favor of Holder covering the Other Property. Other Guaranty: The Guaranty
Agreement dated as of the Execution Date and executed by Liable Parties in favor of Holder in
relation to the Other Loan Documents. Other Indemnity Agreement: The Unsecured Indemnity
Agreement dated as of the Execution Date and executed by Other Borrower in favor of Holder.

The Guaranty, the Indemnity Agreement, the Other Guaranty and the Other Indemnity Agreement
are not Loan Documents or Other Loan Documents and shall survive repayment of the Loan or
other termination of the Loan Documents and/or the Other Loan Documents in accordance with
the terms of the Guaranty, the Indemnity Agreement, the Other Guaranty and the Other
Indemnity Agreement.

     FOR VALUE RECEIVED, Borrower promises to pay to the order of Holder at Holder’s Address
or such other place as Holder may from time to time designate, the Loan Amount with interest
payable in the manner described below, in money of the United States of America that at the time of
payment shall be legal tender for payment of all obligations.

     Capitalized terms which are not defined in this Note shall have the meanings set forth in the
Deed of Trust.

     1. Payment of Principal and Interest. Principal and interest under this Note shall be
payable as follows:

     (a) Interest on the funded portion of the Loan Amount shall accrue from the Advance
Date at the Interest Rate and shall be paid on the first day of the first calendar month
following the Advance Date;

     (b) Commencing on the first day of the second calendar month following the Advance Date
and on the first day of each calendar month thereafter, to and including the first day of
the thirty-seventh (37th) calendar month following the Advance Date, Borrower shall pay the
Interest Only Monthly Installment; and,

     (c) Commencing on the first day of the thirty-eighth (38th) calendar month following
the Advance Date and on the first day of each calendar month thereafter, to and including
the first day of the calendar month immediately preceding the Maturity Date, Borrower shall
pay the Principal and Interest Monthly Installment; and,

2

 

     (d) On the Maturity Date, a final payment in the aggregate amount of (i) the unpaid
principal sum evidenced by this Note, (ii) all accrued and unpaid interest, (iii) all
other sums evidenced by this Note, (iv) all other sums relating to the Property that
are secured by the Deed of Trust and/or any other Loan Documents, and (v) any future
advances under the Deed of Trust that may be made to or on behalf of Borrower by Holder
following the Advance Date (collectively, the “Secured Indebtedness”), shall become
immediately payable in full.

     Borrower acknowledges and agrees that, except for a prepayment permitted under the Loan
Documents, the outstanding Loan Amount shall be due on the Maturity Date.

     Interest shall be calculated on the basis of a thirty (30) day month and a three hundred sixty
(360) day year, except that (i) if the Advance Date occurs on a date other than the first day of a
calendar month, interest payable for the period commencing on the Advance Date and ending on the
last day of the month in which the Advance Date occurs shall be calculated on the basis of the
actual number of days elapsed over a 365 day or 366 day year, as applicable, and (ii) if the
Maturity Date occurs on a date other than the last day of the month, interest payable for the
period commencing on the first day of the month in which the Maturity Date occurs and ending on the
Maturity Date shall be calculated on the basis of the actual number of days elapsed over a 365 day
or 366 day year, as applicable.

     2. Application of Payments. At the election of Holder, and to the extent permitted by
law, all payments shall be applied in the order selected by Holder to any expenses, prepayment
fees, late charges, escrow deposits and other sums due and payable under the Loan Documents, and to
unpaid interest at the Interest Rate or at the Default Rate, as applicable. The balance of any
payments shall be applied to reduce the then unpaid Loan Amount.

     3. Security. The covenants of the Deed of Trust are incorporated by reference into
this Note. This Note shall evidence the Secured Indebtedness, and the Deed of Trust and the Other
Deed of Trust shall both secure each of the Secured Indebtedness and the Other Secured Indebtedness
(as defined in the Deed of Trust).

     4. Late Charge. If any payment of interest, any payment of an Interest Only Monthly
Installment or Principal and Interest Monthly Installment or any payment of a required escrow
deposit is not paid within 7 days (except as expressly provided otherwise in the Loan Documents)
after the due date, Holder shall have the option to charge Borrower the Late Charge. The Late
Charge is for the purpose of defraying the expenses incurred in connection with handling and
processing delinquent payments and is payable in addition to any other remedy Holder may have.
Unpaid Late Charges shall become part of the Secured Indebtedness and shall be added to any
subsequent payments due under the Loan Documents.

     5. Acceleration Upon Default. At the option of Holder, if Borrower fails to pay any
sum specified in this Note within 7 days of the due date (except as expressly provided otherwise in
the Loan Documents), or if an Event of Default occurs, the Secured Indebtedness, and all other sums
evidenced and/or secured by the Loan Documents, including without limitation any applicable
Prepayment Fees (collectively, the “Accelerated Loan Amount”), shall become immediately due and
payable.

3

 

     6. Interest Upon Default. The Accelerated Loan Amount shall bear interest at the
Default Rate, which shall never exceed the maximum rate of interest permitted to be contracted for
under the laws of the State. The Default Rate shall commence upon the occurrence of an Event of
Default and shall continue until all defaults are cured.

     7. Limitation on Interest.

     (a) Savings Clause. It is expressly stipulated and agreed to be the intent of
Borrower and Holder at all times to comply strictly with the applicable Texas law governing
the maximum rate or amount of interest payable on this Note or the Related Indebtedness (as
herein defined) (or applicable United States federal law to the extent that it permits
Holder to contract for, charge, take, reserve or receive a greater amount of interest than
under Texas law). If the applicable law is ever judicially interpreted so as to render
usurious any amount (1) contracted for, charged, taken, reserved or received pursuant to
this Note, any of the other Loan Documents or any other communication or writing by or
between Borrower and Holder related to the transaction or transactions that are the subject
matter of the Loan Documents, (ii) contracted for, charged or received by reason of Holder’s
exercise of the option to accelerate the maturity of this Note and/or the Related
Indebtedness, or (iii) Borrower will have paid or Holder will have received by reason of any
voluntary prepayment by Borrower of this Note and/or the Related Indebtedness, then it is
Borrower’s and Holder’s express intent that all amounts charged in excess of the Maximum
Lawful Rate shall be automatically cancelled, ab initio, and all amounts in excess
of the Maximum Lawful Rate theretofore collected by Holder shall be credited on the
principal balance of this Note and/or the Related Indebtedness without payment of the
Prepayment Fee (or, if this Note and all Related Indebtedness have been or would thereby be
paid in full, refunded to Borrower), and the provisions of this Note and the other Loan
Documents immediately be deemed reformed and the amounts thereafter collectible hereunder
and thereunder reduced, without the necessity of the execution of any new document, so as to
comply with the applicable law, but so as to permit the recovery of the fullest amount
otherwise called for hereunder and thereunder; provided, however, if this Note has been paid
in full before the end of the stated term of this Note, then Borrower and Holder agree that
Holder shall, with reasonable promptness after Holder discovers or is advised by Borrower
that interest was received in an amount in excess of the Maximum Lawful Rate, either refund
such excess interest to Borrower and/or credit such excess interest against this Note and/or
any Related Indebtedness then owing by Borrower to Holder without payment of the Prepayment
Fee. Borrower hereby agrees that as a condition precedent to any claim seeking usury
penalties against Holder, Borrower will provide written notice to Holder, advising Holder in
reasonable detail of the nature and amount of the violation, and Holder shall have sixty
(60) days after receipt of such notice in which to correct such usury violation, if any, by
either refunding such excess interest to Borrower or crediting such excess interest against
this Note and/or the Related Indebtedness then owing by Borrower to Holder without payment
of the Prepayment Fee. All sums contracted for, charged or received by Holder for the use,
forbearance or detention of any debt evidenced by this Note and/or the Related Indebtedness
shall, to the extent permitted by applicable law, be amortized or spread, using the
actuarial method, throughout the stated term of this Note and/or the Related Indebtedness
(including any and all renewal and extension periods) until payment in full

4

 

so that the rate or amount of interest on account of this Note and/or the Related
Indebtedness does not exceed the Maximum Lawful Rate from time to time in effect and
applicable to this Note and/or the Related Indebtedness for so long as debt is outstanding.
In no event shall the provisions of Chapter 346 of the Texas Finance Code (which regulates
certain revolving credit loan accounts and revolving triparty accounts) apply to this Note
and/or the Related Indebtedness. Notwithstanding anything to the contrary contained herein
or in any of the other Loan Documents, it is not the intention of Holder to accelerate the
maturity of any interest that has not accrued at the time of such acceleration or to collect
unearned interest at the time of such acceleration.

     (b) Definitions. As used herein, the term “Maximum Lawful Rate” shall mean the
maximum lawful rate of interest which may be contracted for, charged, taken, received or
reserved by Holder in accordance with the applicable laws of the State of Texas (or
applicable United States federal law to the extent that it permits Holder to contract for,
charge, take, receive or reserve a greater amount of interest than under Texas law), taking
into account all Charges (as herein defined) made in connection with the transaction
evidenced by this Note and the other Loan Documents. As used herein, the term “Charges”
shall mean all fees, charges and/or any other things of value, if any, contracted for,
charged, received, taken or reserved by Holder in connection with the transactions relating
to this Note and the other Loan Documents, which are treated as interest under applicable
law. As used herein, the term “Related Indebtedness” shall mean any and all debt paid or
payable by Borrower to Holder pursuant to the Loan Documents or any other communication or
writing by or between Borrower and Holder related to the transaction or transactions that
are the subject matter of the Loan Documents, except such debt which has been paid or is
payable by Borrower to Holder under this Note.

     (c) Ceiling Election. To the extent that Holder is relying on Chapter 303 of
the Texas Finance Code to determine the Maximum Lawful Rate payable on this Note and/or the
Related Indebtedness, Holder will utilize the weekly ceiling from time to time in effect as
provided in such Chapter 303, as amended. To the extent United States federal law permits
Holder to contract for, charge, take, receive or reserve a greater amount of interest than
under Texas law, Holder will rely on United States federal law instead of such Chapter 303
for the purpose of determining the Maximum Lawful Rate. Additionally, to the extent
permitted by applicable law now or hereafter in effect, Holder may, at its option and from
time to time, utilize any other method of establishing the Maximum Lawful Rate under such
Chapter 303 or under other applicable law by giving notice, if required, to Borrower as
provided by applicable law now or hereafter in effect.

     8. Prepayment. Borrower shall not have the right to prepay all or any portion of the
Loan Amount at any time during the term of this Note except as expressly set forth in the Loan
Documents. If Borrower provides notice of its intention to prepay, (a) the Accelerated Loan Amount
or, (b) in the case of a partial prepayment expressly permitted under the Loan Documents, the
amount specified in such notice and the applicable Prepayment Fee shall become due and payable on
the date specified in the Prepayment Notice; provided, however, Borrower shall have the right from
time to time to rescind or extend a Prepayment Notice in writing, provided that Borrower reimburses
Holder for any out-of-pocket costs (but specifically

5

 

excluding any arising from any missed reinvestment opportunity) incurred by Holder in reliance
on Borrower’s original notice of intention to prepay the Loan. In addition to the foregoing
limitations on prepayment, this Note may not be prepaid without the simultaneous repayment of the
Other Note in accordance with the terms of each, except as otherwise permitted pursuant to, and
subject to the terms of, the Deed of Trust, including, without limitation, Section 10.05 thereof,
and the other Loan Documents.

     9. Prepayment Fee.

     (a) Any tender of payment by Borrower or any other person or entity of the Secured
Indebtedness, other than as expressly provided in the Loan Documents, shall constitute a
prohibited prepayment. If a prepayment of all or any part of the Secured Indebtedness is
made (i) following an Event of Default and an acceleration of the Maturity Date (provided
that reinstatement of the Loan in accordance with applicable law shall not constitute a
prepayment), (ii) following the application of Insurance Proceeds or Condemnation Proceeds
to the principal of the Loan in accordance with the terms and conditions of the Deed of
Trust, (iii) in connection with a purchase of the Property or a repayment of the Secured
Indebtedness at any time during or after a judicial or non-judicial foreclosure or sale of
the Property or (iv) in connection with the exercise of Borrower’s right to a Release of the
Deed of Trust under Section 10.05 of the Deed of Trust, then to compensate Holder for the
loss of the investment, Borrower shall pay an amount equal to the Prepayment Fee (as
hereinafter defined). Notwithstanding the foregoing, so long as Borrower makes a good faith
effort to recover any Prepayment Fee, including making and diligently pursuing a claim with
the insurer or condemning authority, as the case may be (provided that Borrower shall not be
required to commence litigation to recover the Prepayment Fee), which would be due as a
result of a casualty or condemnation, then the Prepayment Fee due as a result of the
casualty or condemnation shall be waived except to the extent recovered by Borrower. Upon
written request from Borrower, Holder will confirm waiver of the Prepayment Fee in
accordance with this Section 9(a). In addition, notwithstanding subsection (ii) of this
Section 9(a), Borrower shall not be required to pay the Prepayment Fee in the event that (A)
no Event of Default exists, (B) the Insurance Proceeds or Condemnation Proceeds are not
required to be released by Holder for Restoration in accordance with the terms and
conditions of the Deed of Trust, and (C) the Secured Indebtedness is paid in full by
Borrower.

     (b) The “Prepayment Fee” shall be the greater of (A) the Prepayment Ratio (as
hereinafter defined) multiplied by the difference between (x) and (y), where (x) is the
present value of all remaining payments of principal and interest, including the outstanding
principal due on the Maturity Date, discounted at the rate which, when compounded monthly,
is equivalent to the Treasury Rate plus twenty-five (25) basis points compounded
semi-annually, and (y) is the amount of the principal then outstanding, or (B) one percent
(1%) of the amount of the principal being prepaid.

     (c) The “Treasury Rate” shall be the annualized yield on securities issued by the
United States Treasury having a maturity equal to the remaining stated term of this Note, as
quoted in the Federal Reserve Statistical Release [H. 15 (519)] under the heading “U.S.
Government Securities — Treasury Constant Maturities” for the date which is five

6

 

(5) Business Days prior to the date on which prepayment is being made. If this rate is
not available on such date, the Treasury Rate shall be determined by interpolating between
the yield on securities of the next longer and next shorter maturity. If the Treasury Rate
is no longer published, Holder shall select a comparable rate. Holder will, upon request,
provide an estimate of the amount of the Prepayment Fee two (2) weeks before the date of the
scheduled prepayment. A Business Day is a day on which Holder is conducting normal business
operations.

     (d) The “Prepayment Ratio” shall be a fraction, the numerator of which shall be the
amount of principal being prepaid, and the denominator of which shall be the principal then
outstanding.

     10. Waiver of Right to Prepay Note Without Prepayment Fee. Borrower acknowledges that
Holder has relied upon the anticipated investment return under this Note in entering into
transactions with, and in making commitments to, third parties and that the tender of any
prohibited prepayment, or any permitted prepayment which pursuant to the terms of this Note
requires a Prepayment Fee, shall include the Prepayment Fee. Borrower agrees that the determination
of the Interest Rate was based on the intent, expectation and agreement (and the Interest Rate
would have been higher without such agreement) of Borrower and Holder that the amounts advanced
under this Note would not be prepaid during the term of this Note, or if any such prepayment would
occur, the Prepayment Fee would apply (except as expressly permitted by the terms of this Note).
Borrower also agrees that the Prepayment Fee represents the reasonable estimate of Holder and
Borrower of a fair average compensation for the loss that may be sustained by Holder as a result of
a prohibited prepayment of this Note and it shall be paid without prejudice to the right of Holder
to collect any other amounts provided to be paid under the Loan Documents.

     BORROWER EXPRESSLY (A) WAIVES ANY RIGHTS IT MAY HAVE UNDER TEXAS LAW TO PREPAY THIS NOTE, IN
WHOLE OR IN PART, WITHOUT FEE OR PENALTY, UPON ACCELERATION OF THE MATURITY DATE OF THIS NOTE, AND
(B) AGREES THAT IF, FOR ANY REASON, A PREPAYMENT OF THIS NOTE IS MADE, UPON OR FOLLOWING ANY
ACCELERATION OF THE MATURITY DATE OF THIS NOTE BY HOLDER ON ACCOUNT OF ANY DEFAULT BY BORROWER
UNDER ANY LOAN DOCUMENT, INCLUDING BUT NOT LIMITED TO ANY TRANSFER, FURTHER ENCUMBRANCE OR
DISPOSITION WHICH IS PROHIBITED OR RESTRICTED BY THE DEED OF TRUST, THEN BORROWER SHALL BE
OBLIGATED TO PAY CONCURRENTLY THE PREPAYMENT FEE SPECIFIED IN SECTION 9. BY EXECUTING THIS NOTE,
BORROWER AGREES THAT HOLDER’S AGREEMENT TO MAKE THE LOAN AT THE INTEREST RATE AND FOR THE TERM SET
FORTH IN THIS NOTE CONSTITUTES ADEQUATE CONSIDERATION FOR THIS WAIVER AND AGREEMENT.

     11. Liability of Borrower. Upon the occurrence of an Event of Default, except as
provided in this Section 11, Holder will look solely to the Property, the Other Property, the
security under the Loan Documents and the security under the Other Loan Documents for the repayment
of the Loan and will not enforce a deficiency judgment against Borrower. However, nothing contained
in this section shall limit the rights of Holder to proceed against Borrower and the general
partners of Borrower and/or Liable Parties (i) to enforce any Leases entered into by

7

 

Borrower or its affiliates as tenant; (ii) to recover damages for fraud, material
misrepresentation, material breach of warranty or waste; (iii) to recover any Condemnation Proceeds
or Insurance Proceeds or other similar funds which have been applied by Borrower in contravention
of the Loan Documents or which, under the terms of the Loan Documents, should have been paid to
Holder; (iv) to recover (if and to the extent same has been applied by Borrower in contravention of
the Loan Documents) any tenant security deposits, tenant letters of credit or other deposits or
fees paid to Borrower or prepaid rents for a period of more than thirty (30) days; (v) to recover
Rents and Profits received by Borrower after the first day of the month in which an Event of
Default occurs and prior to the date Holder acquires title to the Property which have not been
applied to the Loan in accordance with the Loan Documents to operating and maintenance expenses of
the Property; (vi) to recover damages, costs and expenses arising from, or in connection with,
Article VI of the Deed of Trust pertaining to hazardous materials or the Indemnity Agreement; (vii)
to recover all amounts due and payable pursuant to Sections 11.06 and 11.07 of the Deed of Trust
and any amount expended by Holder in connection with the foreclosure of the Deed of Trust; (viii)
to recover costs and damages arising from Borrower’s failure to pay Premiums or Impositions in the
event Borrower is not required to deposit such amounts with Holder pursuant to Section 2.05 of the
Deed of Trust; and/or (ix) to recover damages arising from Borrower’s failure to comply with the
provisions of the Deed of Trust pertaining to ERISA.

     The limitation of liability set forth in this Section 11 shall not apply and the Loan shall be
fully recourse in the event that:

     (a) prior to the repayment of the Secured Indebtedness and the Other Secured
Indebtedness, (i) Borrower or Other Borrower commences a voluntary bankruptcy or insolvency
proceeding or (ii) an involuntary bankruptcy or insolvency proceeding is commenced against
Borrower or Other Borrower by a related party of either of them or by any person acting in
collusion or conspiring with either of them and such proceeding is not dismissed within
ninety (90) days of filing. In addition, neither this Section 11 nor any other provision of
this Note shall waive any rights which Holder would have under any provisions of the U.S.
Bankruptcy Code to file a claim for the full amount of the Secured Indebtedness and any
amounts owing under the other Loan Documents or to require that the Property, the Other
Property, the security under the Loan Documents and/or the security under the Other Loan
Documents shall continue to secure all of the Secured Indebtedness and the Other Secured
Indebtedness; or

     (b) unless otherwise approved in writing by Holder, there is (i) a Transfer or
Secondary Financing (as such terms are defined in the Deed of Trust), except as permitted in
the Loan Documents, or (ii) a “Transfer” or “Secondary Financing” (such terms having the
meaning ascribed to them in the Other Deed of Trust), except as permitted in the Other Loan
Documents.

     12. Waiver by Borrower. Except with respect to written notices required to be given
under the Loan Documents, Borrower, Liable Parties and others who may become liable for the payment
of all or any part of this Note, and each of them, waive diligence, demand, presentment for
payment, notice of nonpayment, protest, notice of dishonor and notice of protest, notice of intent
to accelerate and notice of acceleration and specifically consent to and waive notice of any

8

 

amendments, modifications, renewals or extensions of this Note, including the granting of
extension of time for payment, whether made to or in favor of Borrower or any other person or
persons.

     13. Exercise of Rights. No single or partial exercise by Holder, or delay or omission
in the exercise by Holder, of any right or remedy under the Loan Documents shall waive or limit the
exercise of my such right or remedy. Holder shall at all times have the right to proceed against
any portion of or interest in the Property, the Other Property, the security under the Loan
Documents or the security under the Other Loan Documents in the manner that Holder may deem
appropriate, without waiving any other rights or remedies. The release of any party under this Note
shall not operate to release any other party which is liable under (a) this Note, (b) the other
Loan Documents, the Guaranty, or the Indemnity Agreement and/or (c) the Other Loan Documents, the
Other Guaranty, or the Other Indemnity Agreement.

     14. Fees and Expenses. If Borrower defaults under this Note, Borrower shall be liable
for and shall pay to Holder, in addition to the sums stated above, the costs and expenses of
enforcement and collection, including a reasonable sum as an attorney’s fee. This obligation is not
limited by Section 11,

     15. No Amendments. This Note may not be modified or amended except in a writing
executed by Borrower and Holder. No waivers shall be effective unless they are set forth in a
writing signed by the party which is waiving a right. This Note, the other Loan Documents and, to
the extent applicable, the Other Loan Documents are the final expression of the lending
relationship between Borrower and Holder, and there is no unwritten agreement with respect to the
subject matter of the Secured Indebtedness or the Other Secured Indebtedness. The Application (as
defined in the Deed of Trust) shall terminate and be of no further force or effect as of the
Advance Date.

     16. Governing Law. This Note is to be construed and enforced in accordance with the
laws of Texas.

     17. Construction. The words “Borrower” and “Holder” shall be deemed to include their
respective heirs, representatives, successors and assigns, and shall denote the singular and/or
plural, and the masculine and/or feminine, and natural and/or artificial persons, as appropriate.
The provisions of this Note shall remain in full force and effect notwithstanding any changes in
the shareholders, partners or members of Borrower. If more than one party is Borrower, the
obligations of each party shall be joint and several. The captions in this Note are inserted only
for convenience of reference and do not expand, limit or define the scope or intent of any section
of this Note,

     18. Notices. All notices, demands, requests and consents permitted or required under
this Note shall be given in the manner prescribed in the Deed of Trust.

     19. Time of the Essence. Time shall be of the essence with respect to all of
Borrower’s obligations under this Note.

9

 

     20. Severability. If any provision of
this Note should be held unenforceable or void,
then that provision shall be deemed separable from the remaining provisions and shall not affect
the validity of this Note, except that if that provision relates to the payment of any
monetary sum, then Holder may, at its option, declare the Secured Indebtedness (together with the
Prepayment Fee) immediately due and payable.

     21. Cross Default and Cross Collateralization. An Event of Default with respect to the
Loan shall be an Event of Default with respect to both the Loan and the Other Loan, and upon the
occurrence of an Event of Default under any of the Loan Documents, Holder shall have the right to
exercise any and all remedies granted to Holder under any of the Loan Documents in accordance with
the terms and conditions thereof, subject to and as further provided in the Deed of Trust.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

10

 

     IN WITNESS WHEREOF, Borrower has executed this Note as of the Execution Date.

	 	 	 	 	 
	 	Borrower:

AMREIT PLAZA IN THE PARK, LP,

a Texas limited partnership

 	 
	 	 	 
	 	 	 
	 	 	 
	 
	 	 	 
	 	By:  	     AmREIT SPE 6, LLC,
 	 
	 	 	a Delaware limited liability company, 	 
	 	 	its general partner 	 
	 
	 	 	 
	 	By:  	     /s/ Chad C. Braun
 	 
	 	 	Name:  	Chad C. Braun 	 
	 	 	Title:  	Vice President 	 
	 

(SIGNATURE PAGE TO PROMISSORY NOTE)

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