Document:

Exhibit
10.4

MEZZANINE PROMISSORY NOTE

	
  $6,040,000.00

  	
  February 1, 2007

  

 

BREOF UVA GP LLC, a
Delaware limited liability company, BREOF UVA LLC, a Delaware limited liability
company, PPC-UVA 15th Street Limited Partnership, a Texas limited
partnership and PPC Charlottesville GP, Inc., a Texas corporation (“Borrowers”), FOR VALUE RECEIVED, promise to pay to the order
of Behringer Harvard UVA, LLC, a Delaware limited liability company or its
assigns (“Lender”), at such place as Lender may
from time to time designate in writing, the principal sum of Six Million Forty
Thousand Dollars ($6,040,000.00) or so much thereof as may from time to time
have been advanced to Borrowers under this Note with Interest (as defined
below) on the outstanding principal amount at the rates set forth herein.

DEFINITIONS

For the purpose of this Note capitalized terms not
defined below will be as defined in the Loan Agreement:

“Contribution Agreement”
shall mean that certain Contribution Agreement by and between Borrowers and
Lender, dated of even date herewith.

“Default
Interest” shall mean any interest accruing at the Default Interest
Rate and payable pursuant to the terms hereof or of the other Loan Documents.

“Default
Interest Rate” shall mean a rate of interest per annum equal to the
lesser of either (a) eighteen percent (18%) or (b) the maximum rate
of interest which may be collected from Borrowers under applicable law.

“Interest”
shall mean any interest accruing at the Interest Rate or the Default Interest Rate,
as applicable and payable pursuant to the terms hereof or of the other Loan
Documents.

“Interest
Rate” shall mean a rate of interest per annum equal to the lesser
of: (a) ten percent (10%) or (b) the maximum rate of interest which may be
collected from Borrowers under applicable law.

“Late Charge”
shall mean the lesser of (a) five percent (5%) of any unpaid amount, or (b) the
maximum late charge permitted to be charged under applicable law.

“Loan Agreement”
shall mean that certain Mezzanine Loan Agreement, between Lender and Borrowers,
dated of even date herewith, corresponding to this Note, as the same may
hereafter be amended, modified and restated from time to time.

“Maturity
Date” shall mean February 25, 2008.

“Payment Date”
shall mean the first day of each calendar month, commencing on the date
set forth in Section 1.1, and the Maturity Date (or, if any such date is not a
Business Day, then the first Business Day immediately before such date).

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SECTION 1 - STATED MATURITY; INTEREST AND PRINCIPAL PAYMENTS.

1.1           Payment
of Interest.  Interest shall accrue on this Note at the
Interest Rate or, during any time at which an Event of Default is continuing,
at the Default Interest Rate.  Commencing
on February 1, 2007, and continuing monthly on the same date of each calendar
month thereafter up to and until the Maturity Date, an installment of accrued
and unpaid Interest shall be due and payable to Lender.  On the Maturity Date, all accrued but unpaid
Interest, shall be due and payable in full.

1.2           Payments of Principal.  On the Maturity Date, if not earlier prepaid,
the unpaid principal balance, together with all accrued but unpaid Interest,
shall be due and payable in full.

1.3           Payment on Stated Maturity Date.  Any remaining unpaid Indebtedness shall be
due and payable in full at the Maturity Date, subject, however, to the terms of
the Contribution Agreement.

1.4           Computation of Interest.  Subject to the provisions of Section 1.8,
Interest under this Note shall be paid as set forth herein and shall be
calculated based on actual days elapsed and a three hundred sixty (360) day
year.

1.5           Method of Payment.  Each payment due hereunder shall not be
deemed received by Lender until received on a Business Day (as hereafter
defined) in Federal funds in lawful money of the United States of America
immediately available to Lender prior to 2:00 p.m. local time at the place then
designated by Lender.  Any payment
received on a Business Day after the time established by the preceding sentence,
shall be deemed to have been received on the immediately following Business Day
for all purposes.

1.6           Application of Payments.  Payments under this Note shall be applied
first to the payment of Late Charges and Default Interest and other costs and
charges due in connection with this Note, as Lender determines in its sole
discretion, then to the payment of accrued but unpaid Interest, and then to
reduction of the outstanding principal balance. 
No principal amount repaid may be reborrowed.  All amounts due under this Note shall be
payable without setoff, counterclaim or any other deduction whatsoever.

1.7           Prepayment.  No prepayment of this Note shall be permitted
without the written approval of Lender. 
Notwithstanding the foregoing, Borrowers shall be permitted to prepay
this Note upon an event of default by Lender under the Contribution Agreement
such that the transactions contemplated under the Contribution Agreement do not
close in accordance with the terms thereof and Borrowers are not then in
default under the Contribution Agreement.  Borrower shall be required to prepay this Note
upon earlier to occur of: (a) the closing of the transactions contemplated in
the Contribution Agreement, (b) an uncured default by Borrowers under the
Contribution Agreement and the commencement of the pursuit by Lender or its
assignee of its remedies in connection with such default, (c) the sale of the
Project Owner Membership Interest (as defined in the Contribution Agreement) or
the sale of the Project, (d) the event of an uncured Event of Default by Borrower
under the Loan Agreement (after taking into account all applicable grace,
notices and opportunity for cure) or (e) the repayment of the Senior 

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Loan.  Notwithstanding the foregoing, any prepayment
required under (b), (c) and (d) above shall only occur with the approval of the
Senior Lender (as defined in the Loan Agreement).

1.8           No Usury.  The provisions of this Note and of all other
agreements between Borrowers and Lender, whether now existing or hereafter
arising and whether written or oral, including, but not limited to, the Loan
Documents, are hereby expressly limited so that, after taking into account all
amounts deemed interest or as reducing the true principal balance of the Loan,
in no contingency or event whatsoever, whether by reason of demand or
acceleration of the maturity of this Note or otherwise, shall the amount
contracted for, charged, taken, reserved, paid, or agreed to be paid to Lender
for the use, forbearance, retention or detention of the money loaned under this
Note and related indebtedness exceed the maximum amount permissible under
applicable law.  If, from any
circumstance whatsoever, performance or fulfillment of any provision hereof or
of any agreement between Borrower and Lender shall, at the time performance or
fulfillment of such provision shall be due, exceed the limit for interest
prescribed by law or otherwise transcend the limit of validity prescribed by
applicable law, then ipso facto the obligation to be performed or fulfilled
shall be reduced to such limit; and if, from any circumstance whatsoever,
Lender shall ever receive anything of value deemed interest by applicable law
in excess of the maximum lawful amount, an amount equal to any excessive
interest shall be applied to the reduction of the principal balance owing under
this Note in the inverse order of its maturity (whether or not then due) or at
the option of Lender be paid over to Borrower, and not to the payment of
interest.  All Interest (including any
amounts or payments judicially or otherwise under the law deemed to be
interest) contracted for, charged, taken, reserved, paid or agreed to be paid
to Lender shall, to the extent permitted by applicable law, be amortized,
prorated, allocated and spread throughout the full term of the Note, including
any extensions or renewals thereof, until payment in full of the Indebtedness
so that the Interest thereof for such full period will not exceed at any time
the maximum amount permitted by applicable law. 
This paragraph 1.8 will control all agreements between Borrowers and
Lender.  The loan is not for family,
household or personal purposes, but is a commercial purpose loan.

SECTION
2 - DEFAULT; REMEDIES

2.1           Acceleration.  Lender may, by notice to Borrowers at any
time during the existence of an Event of Default (after any applicable grace,
notice or opportunity to cure as may be set forth in the Loan Agreement),
declare immediately due and payable the entire principal amount outstanding
hereunder together with all Interest and other charges due hereunder including,
without limitation, all Late Charges and Default Interest.

2.2           Default Interest Rate; Late
Charges.

(a)           After an Event of Default, the
Default Interest Rate shall apply, in place of the Interest Rate, to all
amounts outstanding under the Loan.  Such
Default Interest shall be compounded on the monthly anniversary of such Event
of Default until paid in full.

(b)           If any monthly installment of
Interest due hereunder is not received by Lender on or before the tenth (10th)
day after such installment becomes due, Borrower shall pay to Lender,
immediately and without demand by Lender, the Late Charge on such outstanding
monthly installment.  Borrowers
acknowledge that their failure to make timely payments will cause 

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Lender to incur additional expenses in servicing and processing
the Loan, and that it is extremely difficult and impractical to determine those
additional expenses.  Borrowers agree
that any such Late Charges payable pursuant to this Section 2.2(b) represents a
fair and reasonable estimate, taking into account all circumstances existing on
the date hereof, of the additional expenses Lender will incur by reason of such
late payment.  Any such Late Charge is
payable in addition to, and not in lieu of, any Interest payable at the Default
Rate pursuant to Section 2.2(a).

2.3           Remedies.  The remedies of Lender as provided herein, or
in the Loan Documents, or at law or in equity shall be cumulative and
concurrent, and may be pursued singularly, successively, or together at the
sole discretion of Lender, and may be exercised as often as occasion therefor
shall occur.  The failure at any time to
exercise any right or remedy shall not constitute a waiver of the right to
exercise the right or remedy at any other time.

SECTION
3 - SECURITY

Borrowers’ obligations under this Note are secured by,
among other instruments, the Pledge Agreement and other Loan Documents.  The covenants of the Pledge Agreement and the
Loan Agreement are incorporated by reference into this Note.

SECTION 4 - WAIVER

Presentment for payment, demand, notice of dishonor,
protest, and notice of protest and stay of execution and all other defenses to
payment generally are hereby waived by Borrowers.  No extension or indulgence or release of
collateral granted from time to time shall be construed as a novation of this
Note or as a reinstatement of the indebtedness evidenced hereby or as a waiver
of the rights of Lender herein.

SECTION
5 - EXCULPATION

5.1           Lender Exculpation.  Notwithstanding anything to the contrary
contained in this Note, no present or future shareholder, director, officer,
member or partner of Lender or of any entity which is now or hereafter a
shareholder, director, officer, member or partner of Lender (or of any entity
which is now or hereafter a shareholder, director, officer, member or partner
of a shareholder, director, officer, member or partner of Lender) shall have
any personal liability, directly or indirectly, under or in connection with
this Note or any agreement made or entered into under or in connection with the
provisions of this Note, or any amendment or amendments to any of the foregoing
made at any time or times, heretofore or hereafter, and Borrowers hereby
forever and irrevocably waive and release any and all such personal
liability.  In addition, neither Lender
nor any successor or assign of Lender shall have at any time or times hereafter
any personal liability, directly or indirectly, under or in connection with any
agreement, lease, instrument, encumbrance, claim or right affecting or relating
to the Project or to which the Project is now or hereafter subject.  The limitation of liability provided in this
paragraph is in addition to, and not in limitation of, any limitation on
liability applicable to Lender provided by law or by any other contract,
agreement or instrument.

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SECTION
6 - GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL;
SEVERABILITY

6.1           Governing Law.  This Note shall be governed by, and construed
in accordance with, the substantive law of the Commonwealth of Virginia without
regard to the application of choice of law principles.

6.2           SUBMISSION TO
JURISDICTION/SERVICE OF PROCESS. 
BORROWERS HEREBY IRREVOCABLY SUBMIT TO THE PERSONAL JURISDICTION OF THE
STATE COURTS OF THE COMMONWEALTH OF VIRGINIA LOCATED IN ALBEMARLE COUNTY,
VIRGINIA FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT
OF OR BASED UPON THIS NOTE, THE SUBJECT MATTER HEREOF, OR THE LOAN. BORROWERS
TO THE EXTENT PERMITTED BY APPLICABLE LAW (A) HEREBY WAIVE, AND AGREE NOT TO
ASSERT, BY WAY OF MOTION, AS A DEFENSE, OR OTHERWISE, IN ANY SUCH SUIT, ACTION
OR OTHER PROCEEDING BROUGHT IN THE ABOVE-NAMED COURTS ANY CLAIM THAT IT IS NOT
SUBJECT PERSONALLY TO THE JURISDICTION OF SUCH COURTS, THAT THEIR PROPERTY IS
EXEMPT OF IMMUNE FROM ATTACHMENT OR EXECUTION, THAT THE SUIT, ACTION OR
PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF THE SUIT,
ACTION OR PROCEEDING IS IMPROPER OR THAT THIS NOTE, THE SUBJECT MATTER HEREOF,
OR THE OTHER LOAN (AS APPLICABLE) MAY NOT BE ENFORCED IN OR BY SUCH COURT AND
(B) HEREBY WAIVES THE RIGHT TO REMOVE ANY SUCH ACTION, SUIT OR PROCEEDING
INSTITUTED BY LENDER IN THE ABOVE NAMED COURTS. 
BORROWERS HEREBY CONSENT TO SERVICE OF PROCESS BY MAIL AT THE ADDRESS TO
WHICH NOTICES ARE TO BE GIVEN TO IT PURSUANT TO SECTION 7 HEREOF.  BORROWERS AGREE THAT THEIR SUBMISSION TO
JURISDICTION AND CONSENT TO SERVICE OF PROCESS BY MAIL IS MADE FOR THE EXPRESS
BENEFIT OF LENDER.  FINAL JUDGMENT
AGAINST BORROWERS IN ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE CONCLUSIVE,
AND MAY BE ENFORCED IN ANY OTHER JURISDICTION (X) BY SUIT, ACTION OR PROCEEDING
ON THE JUDGMENT, A CERTIFIED OR TRUE COPY OF WHICH SHALL BE CONCLUSIVE EVIDENCE
OF THE FACT AND OF THE AMOUNT OF INDEBTEDNESS OR LIABILITY OF BORROWERS THEREIN
DESCRIBED, OR (Y) IN ANY OTHER MANNER PROVIDED BY OR PURSUANT TO THE LAWS OF
SUCH OTHER JURISDICTION, PROVIDED, HOWEVER, THAT THE LENDER MAY
AT ITS OPTION BRING SUIT, OR INSTITUTE OTHER JUDICIAL PROCEEDINGS, AGAINST
BORROWERS OR ANY OF THEIR ASSETS IN ANY STATE OR FEDERAL COURT OF THE UNITED
STATES OR OF ANY COUNTRY OR PLACE WHERE THE SUBMITTING PARTY OR SUCH ASSETS MAY
BE FOUND.

6.3           WAIVER WITH RESPECT TO DAMAGES.  BORROWERS ACKNOWLEDGE THAT LENDER DOES NOT
HAVE ANY FIDUCIARY RELATIONSHIP WITH, OR FIDUCIARY DUTY TO, BORROWERS ARISING
OUT OF OR IN CONNECTION WITH THIS NOTE OR ANY OTHER LOAN DOCUMENT AND THE
RELATIONSHIP BETWEEN LENDER AND BORROWERS IN CONNECTION HEREWITH AND THEREWITH
IS SOLELY THAT OF DEBTOR AND CREDITOR. 
TO THE EXTENT PERMITTED BY APPLICABLE LAW, BORROWERS SHALL NOT ASSERT,
AND 

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BORROWERS HEREBY WAIVE, ANY CLAIMS AGAINST LENDER, ON
ANY THEORY OF LIABILITY, FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE
DAMAGES (AS OPPOSED TO DIRECT OR ACTUAL DAMAGES) ARISING OUT OF, IN CONNECTION
WITH, OR AS A RESULT OF, THIS NOTE, ANY OTHER LOAN DOCUMENT, ANY AGREEMENT OR
INSTRUMENT CONTEMPLATED HEREBY OR THEREBY, OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY.

6.4           Waiver of Jury Trial.  BORROWERS HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE ANY RIGHT THAT BORROWERS MAY HAVE TO A TRIAL BY JURY IN ANY
LITIGATION ARISING IN ANY WAY IN CONNECTION WITH THIS NOTE OR ANY OF THE OTHER
LOAN DOCUMENTS, OR ANY OTHER STATEMENTS OR ACTIONS OF THE LENDER IN CONNECTION
WITH THIS NOTE OR ANY OF THE OTHER LOAN DOCUMENTS.  BORROWERS ACKNOWLEDGE THAT THIS WAIVER IS A
MATERIAL INDUCEMENT FOR THE LENDER TO DISBURSE THE MONEY EVIDENCED BY THIS NOTE
AND TO ENTER INTO THE OTHER LOAN DOCUMENTS.

6.5           Severability.  If any provision of this Note is held to be
invalid or unenforceable by a court of competent jurisdiction, the other
provisions of this Note shall remain in full force and effect and shall be
liberally construed in favor of Lender.

SECTION
7 - NOTICES

7.1           Notices.  All notices, demands and other communications
(“Notice”) under or concerning this Note
shall be in writing.  Each Notice shall
be addressed to the intended recipient at its address set forth in the Loan
Agreement.  Each Notice shall be deemed
given on the earliest to occur of (1) the date when the Notice is received by
the addressee; (2) the first (1st) Business Day after the Notice is
delivered to a recognized overnight courier service, with arrangements made for
payment of charges, for next Business Day delivery; or (3) the third Business
Day after the Notice is deposited in the United States mail with postage
prepaid, certified mail, return receipt requested.

7.2           Any party to this Agreement may
change the address to which Notice is intended for it are to be directed by
means of Notice given to the other party in accordance with this Section 7.  Each party agrees that it will not refuse or
reject delivery of any Notice given in accordance with this Section 7, that it
will acknowledge, in writing, the receipt of any Notice upon request by the
other party and that any Notice rejected or refused by it shall be deemed for
purposes of this Section 7 to have been received by the rejecting party on the
date so refused or rejected, as conclusively established by the records of the
U.S. Postal Service or the courier service. Any Notice under any other Loan
Document which does not specify how Notices are to be given shall be given in
accordance with this Section 7.

SECTION
8 - MISCELLANEOUS

8.1           Costs.  If, and as often as, this Note is referred to
an attorney for the collection of any sum payable hereunder, or to defend or
enforce any of Lender’s rights hereunder, or to commence an action,
cross-claim, third-party claim or counterclaim by Lender against 

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Borrowers relating to this Note, Borrowers agree to
pay to Lender all costs incurred in connection therewith, including reasonable
attorney’s fees (including such fees incurred in appellate, bankruptcy or
insolvency proceedings), with or without the institution of any action or
proceeding, and in addition all costs, disbursements and allowances provided by
law.

8.2           Modification.  Neither this Note nor any of the terms hereof
may be terminated, amended, supplemented, waived or modified orally, but only
by an instrument in writing executed by the party against which enforcement of
the termination, amendment, supplement, waiver or modification is sought.

8.3           Successors.  As used herein, the terms “Borrowers” and “Lender”
shall be deemed to include their respective successors and assigns whether by
voluntary action of the parties or by operation of law.  All of the rights, privileges and obligations
hereof shall inure to the benefit of and bind such successors and assigns.

8.4           Loan Agreement.  To the extent not expressly stated otherwise
herein, all of the terms and conditions of the Loan Agreement shall survive the
execution of this Note and shall remain in full force and effect; provided,
however, to the extent of any irreconcilable conflict between the terms and
conditions of the Loan Agreement and this Note, the terms and provisions of
this Note shall govern and control.

8.5           No Waiver.  No failure or delay by Lender in exercising
any right, power or privilege hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege.  Without
limiting the foregoing, no disbursement by Lender after a default by Borrowers
hereunder shall constitute a waiver of any of the Lender’s remedies established
or referred to hereunder or shall obligate Lender to make any further
disbursement.  No waiver, consent or
approval of any kind by Lender shall be effective unless (and it shall be
effective only to the extent) expressly set out in a writing signed and
delivered by Lender.  No notice to or
demand on Borrowers in any case shall entitle Borrowers to any other notice or
demand in similar or other circumstances, nor shall such notice or demand
constitute a waiver of the rights of Lender to any other or further
actions.  In its sole discretion, Lender
may, at any time and from time to time, waive any one or more of the
requirements contained herein, but such waiver in any instance or under any
particular circumstances shall not be considered a waiver of such requirement
or requirements in any other instance or under any other circumstance.

8.6           Sole and Absolute Discretion.  Any option, consent, approval, discretion or
similar right of Lender set forth in this Note may be exercised by Lender in
its reasonable discretion, unless the provisions of this Note or another Loan
Document specifically require another standard.

8.7           Recourse Limitations.  The personal liability of Borrowers to pay
the amounts due under the Note shall be limited to Borrowers’ interest in the
Collateral (as defined in the Loan Agreement) and in any other collateral given
to Lender subject to the provisions of Section 21(q) of the Loan Agreement.

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8.8           Joint and Several Liability.  If more than one person or entity signs this
instrument as a Borrower, the obligations of such persons or entities shall be
joint and several.

[Signatures follow
on next page.]

 8

WITNESS the following signatures and seals with the
intent that this shall be deemed an instrument under seal.

	
  

  	
  BORROWERS:

  
	
   

  	
   

  
	
   

  	
  BREOF UVA GP LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Steven Ganeless

  	
  (SEAL)

  	
   

  
	
   

  	
  Name:

  	
   Steven Ganeless

  	
   

  
	
   

  	
  Title:

  	
   Authorized Signing Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BREOF UVA LLC,

  	
   

  
	
   

  	
  a Delaware limited liability company

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Steven Ganeless

  	
  (SEAL)

  	
   

  
	
   

  	
  Name:

  	
   Steven Ganeless

  	
   

  
	
   

  	
  Title:

  	
   Authorized Signing Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PPC-UVA 15TH STREET LIMITED PARTNERSHIP,

  
	
   

  	
  a Texas limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  PPC Charlottesville GP, Inc.,

  
	
   

  	
   

  	
  a Texas corporation

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Jason P. Runnels

  	
  (SEAL)

  	
   

  
	
   

  	
   

  	
  Name:

  	
   Jason P. Runnels

  	
   

  
	
   

  	
   

  	
  Title:

  	
   Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PPC CHARLOTTESVILLE GP, INC.,

  	
   

  
	
   

  	
  a Texas corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jason P. Runnels

  	
  (SEAL)

  	
   

  
	
   

  	
  Name:

  	
   Jason P. Runnels

  	
   

  
	
   

  	
  Title:

  	
   Vice PresidentExhibit
10.5

MEZZANINE
PLEDGE AND SECURITY AGREEMENT

THIS MEZZANINE PLEDGE AND SECURITY AGREEMENT (this “Agreement”), dated as of February 1, 2007, made by BREOF TCU
GP LLC, a Delaware limited liability company, BREOF TCU LLC, a Delaware limited
liability company, Phoenix Berry Street Limited Partnership, a Texas limited
partnership, and Phoenix G.P. XVIII, Inc., a Texas corporation (each a “Pledgor” and collectively, the “Pledgors”),
and Behringer Harvard TCU, LLC, a Delaware limited liability company (together
with its successors and assigns, “Lender”).

RECITALS

A.            Lender
has agreed to make a loan (the “Loan”) to
Pledgors in the original principal amount of Eight Million One Hundred
Twenty-Five Thousand Dollars ($8,125,000.00) pursuant to the terms of that
certain Loan Agreement, dated of even date herewith, between Pledgors and
Lender (herein, as the same may be amended or restated from time to time, the “Loan Agreement”); and

B.            Pledgors
are the sole partners and the legal and beneficial owners of one hundred
percent (100%) of the partnership interests in Berry Street Limited
Partnership, a Texas limited partnership (the “Mortgagor”),
which is the owner of the leasehold interest in the Property (as defined in the
Loan Agreement); and

C.            One
of the conditions precedent to the Lender’s making of the Loan under the Loan
Agreement is Pledgors’ execution and delivery of this Agreement; and

D.            Pledgors
and Mortgagor shall derive substantial direct and indirect benefits from the
Loan.

NOW, THEREFORE, for and in consideration of the
foregoing and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the parties agree as follows:

1.             Recitals; Definitions.  The recitals set forth above are true and
correct and are incorporated herein by reference.  Capitalized terms not defined herein but
which are defined in the Uniform Commercial Code as in effect from time to time
in the State of Texas (the “UCC”) shall
have the meanings given them in Article 8 or Article 9, as applicable, thereof.
Other capitalized terms used but not defined herein shall have the meaning
ascribed to such term in the Loan Agreement, in each case unless the context
clearly requires otherwise.

2.             Pledge.

(a)           Grant of Security Interest.  As collateral security for the Indebtedness
and the performance of all obligations under the Loan Documents, Pledgors
presently and irrevocably pledge, hypothecate, assign, deliver and transfer to
the Lender, and grant to the Lender a continuing first priority security
interest in, all of their right, title and interest in and under the following
property (collectively, the “Collateral”)
whether now owned or hereafter acquired or coming into existence:

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(i)                                     all
of Pledgors’ right, title and interest, whether direct or indirect, whether legal,
beneficial or economic, and whether fixed or contingent, (i) as the solepartners in and to the Mortgagor, including, without
limitation, Pledgors’ right to vote on Mortgagor matters and Pledgors’ rights,
now existing or hereafter arising or acquired, to receive from time to time its
share of profits, losses, income surplus, return of capital, proceeds, fees,
preferences, payments or distributions from Mortgagor (“Pledged
Interest”);

(ii)                                  all
Instruments, certificates, or other writings evidencing Pledgors’ Pledged
Interest;

(iii)                               all
of Pledgors’ right, title and interest in, to and under, respectively, that
certain Amended and Restated Agreement of Limited Partnership of Mortgagor,
dated as of January 25, 2005, executed by Pledgors (the “Partnership
Agreement”),and
the other organizational documents of Mortgagor;

(iv)                              all
of Pledgors’ right, title and interest in, to and under all General Intangibles
relating to or arising out of any of the foregoing; and

(v)                                 all
Proceeds of any of the foregoing.

(b)           Security for Obligations.  This Agreement secures (i) the Indebtedness
and (ii) all obligations of Pledgors under the Loan Agreement, the Note and all
of the other Loan Documents (collectively, the “Secured
Obligations”).

(c)           Perfection of Security Interest.  In furtherance of the grant of the pledge and
security interest pursuant to Section 2(a) above, Pledgors hereby agree
with Lender as follows:

(i)                                     If
the Pledged Interest is not currently represented or evidenced by certificates
or Instruments, Pledgors shall, upon the execution of this Agreement (A) cause
the Mortgagor to keep as a part of its records of ownership a copy of this
Agreement which shall evidence Pledgors’ pledge of the Pledged Interest to
Lender and all other terms contained in this Agreement, and (B) cause the
Mortgagor to agree to comply with any and all unilateral directions and other
Instructions from Lender concerning such Pledged Interest given in accordance
with this Agreement, without any further consent of (or regardless of contrary
instructions of) Pledgors or any other person.

(ii)                                  Concurrently
with the execution and delivery of this Agreement, Pledgors are delivering to
Lender assignments of partnership interests in blank (the “Assignment
of Interest”), in the form set forth on Exhibit A hereto, for
the Pledged Interest, transferring all of the Pledged Interest in blank, duly
executed by each Pledgor and 

 2
 

undated.  Lender shall have the right, at any time in
its discretion upon the occurrence and during the continuance of an Event of
Default pursuant to Section 6(a) below, to transfer to, and to designate
on the Assignment of Interest, any Person to whom the Pledged Interest is sold
in accordance with the provisions hereof.

(iii)                               To
the extent the Pledged Interest hereafter is represented or evidenced by
certificates, Instruments or other writings (other than the Partnership
Agreement) whether in bearer or registered form, Pledgors shall within three
(3) days of receipt of any such certificates, Instruments or other writings (A) deliver
to Lender such certificates, Instruments or other writings, as applicable and
(B) deliver to Lender all necessary powers, instruments of transfer or
assignment, each undated and duly executed in blank.

(iv)                              Regardless
of whether the Collateral is represented or evidenced by certificates,
Instruments or other writings, Pledgors shall do all other acts and deliver
such other documents, and cause Mortgagor to do the same, as Lender reasonably
deems necessary or desirable (or as are otherwise required by the laws of the
jurisdiction governing perfection, the effect of perfection or nonperfection or
the priority of Lender’s security interest) in order to perfect such security
interest in the Collateral.  In
furtherance of the foregoing, Pledgors hereby authorize Lender to file such UCC
financing statements against Pledgors as Lender shall deem necessary or
desirable containing a description of the Collateral pledged by Pledgors
sufficient to satisfy the requirements of Article 9 of the UCC (the “UCC Financing Statements”).

(d)           Continuing Security Interest.  This Agreement shall create a continuing
security interest in the Collateral and shall remain in full force and effect
until payment in full of all Indebtedness. 
Upon the payment in full of all Indebtedness, the security interests
granted herein shall terminate and all rights to the Collateral shall revert to
Pledgors.  Upon any such termination, the
Lender shall, at Pledgors’ sole expense, deliver to Pledgors, without any
representations, warranties or recourse of any kind whatsoever (other than that
such items are free and clear of any encumbrances or claims of Lender or anyone
claiming by, through or under Lender), all certificates, Instruments and other
writings representing or evidencing all Collateral then held by the Lender
hereunder, if any, and execute and deliver to Pledgors such documents as
Pledgors shall reasonably request to evidence such termination.

(e)           Waivers of Subrogation.  Pledgors hereby irrevocably waive any claim
or other right which they may now have or hereafter acquire against the
Mortgagor in connection with this Agreement or any other Loan Document.  If any amount shall be paid to Pledgors in
violation of the preceding sentence and the Secured Obligations shall not have
been finally paid and performed in full, such amount shall be deemed to have
been paid to Pledgors for the benefit of, and held in trust for, the Lender,
and shall 

 3
 

immediately be paid to
the Lender to be credited and applied, at Lender’s option, against the Secured
Obligations, whether matured or unmatured in such order as the Lender shall
determine.

3.             Representations and Warranties.  As of the date hereof Pledgors represent and
warrant as follows:

(a)           Organization; Authorization.  Each Pledgor has been duly formed and is
validly existing and in good standing under the laws of the state of
formation.  Each Pledgor has full power
and authority to execute this Agreement and to undertake and consummate the
transactions contemplated hereby.  This
Agreement has been duly and validly executed by or on behalf of each Pledgor
and constitutes the legal, valid and binding obligation of Pledgors and is
enforceable against Pledgors in accordance with its terms, subject, as to
enforceability, to the effect of applicable bankruptcy, insolvency and other
similar laws limiting the enforcement of creditors’ rights generally and to
general principles of equity.

(b)           Agreement Will Cause No Defaults.  The execution, delivery and performance of
this Agreement by Pledgors does not and will not violate, or contravene (i) any
term or provision of the organizational documents of Pledgors or any resolution
or vote of Pledgors, (ii) any existing license, indenture or other material
contract or agreement binding upon Pledgors or (iii) any existing law, statute,
regulation, order, decree or judgment applicable to Pledgors or its property.

(c)           Ownership, No Liens, etc.  Pledgors are the legal, record and beneficial
owner of, and have good and marketable title to the Collateral in which it
grants a security interest to Lender under this Agreement, free and clear of
all liens, security interests, options or other charges or encumbrances, other
than the security interest granted pursuant hereto.  Pledgors are the sole partners in Mortgagor.

(d)           As to Pledged Interest.  The Pledged Interest is duly authorized and
validly issued, and are fully paid and non-assessable and constitute all of the
issued and outstanding membership interests in Mortgagor.  The Pledged Interest (i) is not “financial
assets” (within the meaning of Section 8-102(a)(9) of the UCC) and (ii) is not
credited to a “securities account” 
within the meaning of Section 8-501(a) of the UCC.

(e)           Perfection.  Upon the filing of the UCC Financing
Statements referred to in Section 2(c)(iv) in the places required under the UCC
for perfection of security interests in the classes of collateral included in
the Collateral, the security interestgranted
pursuant to this Agreement will constitute a valid, perfected first priority
security interest in all of the Collateral and related proceeds in which a
security interest can be perfected by filing, enforceable against all creditors
of Pledgors and any persons purporting to purchase any Collateral or receive
any related proceeds from Pledgors, subject to the limitations in the UCC.

(f)            Authorization, Approval, etc.  No authorization, approval, or other action
by, and no notice to or filing with, any governmental authority, regulatory
body or any 

 4
 

other person (other than
any that have been obtained and provided to Lender) is required either:

(i)                                     for
the executions, delivery, and performance of this Agreement by Pledgors (other
than any authorizations and approvals that have already been received or
actions that have already been taken), or

(ii)                                  for
the exercise by the Lender of (1) the voting and other rights provided for in
this Agreement or (2) except as may be required in connection with a
disposition of the Pledged Interest by laws relating to the offering and sale
of securities generally, the remedies provided for in respect of the Collateral
pursuant to this Agreement.

4.             Covenants.

(a)           Protect Collateral.  Pledgors agree that they will own at all
times during the term of the Loan one hundred percent (100%) of the ownership
interests in Mortgagor.  Pledgors agree
that they shall not sell, assign, transfer, pledge or encumber in any other
manner the Collateral (except for the pledge to Lender hereunder or an
assignment to Lender or its designee pursuant to the Assignment of Partnership
Interests).  Pledgors shall warrant and,
at Pledgors’ expense, defend the right and title herein granted unto the Lender
in and to the Collateral (and all right, title and interest represented by the
Collateral) against the claims and demands of all persons whomsoever.

(b)           Further Assurances.  Pledgors shall, at Pledgors’ expense (i)
promptly execute and deliver, and cause the Mortgagor to promptly execute and
deliver, all further writings (including instruments of transfer or control)
reasonably requested by Lender, and (ii) promptly take all further action, and
cause the Mortgagor to promptly take all further action, that the Lender may
reasonably request; in each case, in order to perfect and protect and maintain
the perfection and priority of any security interest granted or purported to be
granted hereby or to enable the Lender to exercise and enforce its rights and
remedies hereunder with respect to any Collateral, including the rights and
remedies under Section 7(b).

(c)           Organizational Documents.  Pledgors agree that they shall not and shall
not permit any other person to amend or restate the certificate of formation of
Mortgagor without Lender’s consent including but not limited to changing the
location of its principal place of business or chief executive office, its name
or reorganizing under the laws of another jurisdiction.

(d)           Consents.  Pledgors shall execute and deliver to Lender,
upon its request at the time Lender exercises its remedies, any document
required under the organizational documents of Pledgors or otherwise reasonably
deemed necessary by Lender in order to evidence Pledgors’ consent to the Lender’s
exercising of its remedies under this Agreement, including those set forth in Section
7(a) hereof wherein Lender becomes the record, legal and beneficial owner
of the Collateral pledged under this Agreement.

 5
 

(e)           Pledged Interest.  The Pledged Interest (i) will not become “financial
assets” (within the meaning of Section 8-101(a)(9) of the UCC) and (ii) will
not be credited to a “securities account” (within the meaning of Section
8-501(a) of the UCC).  The parties agree
that the Pledged Interest constitutes “general intangibles” (as defined in
Section 9-102 of the UCC); and Pledgors agree that the Pledged Interest is not
and will not be investment company securities within the meaning of Section
8-103 of the UCC.

(f)            Subordination.  Pledgors hereby subordinate, and shall cause
any Affiliate to subordinate, any claims or liens of Pledgors or such Affiliate
against the Mortgagor of any kind (including any right of a Pledgor to a return
of any capital contributed to the Mortgagor) to all of the Secured
Obligations.  Upon the occurrence of an
Event of Default under any of the Loan Documents, Pledgors and their Affiliates
shall, upon Lender’s request, enforce any of their claims or liens as trustee
for the Lender, and shall cause any receipts to be paid over to the Lender on
account of the Secured Obligations without affecting in any manner the
liability of Pledgors under this Agreement except to the extent of such payment.

(g)           Taxes and Assessments.  Pledgors shall pay, and hold Lender harmless
from any liabilities with respect to payment of, any taxes or assessments which
may be payable with respect to the Collateral (except any taxes or assessments
arising after foreclosure) or in connection with any of the interests in
Collateral created by this Agreement.

(h)           Subordination of Senior Loan if
Acquired.  If, for any reason
whatsoever, Pledgors or any Affiliate of Pledgors should acquire that certain
loan evidenced by that certain Senior Note, dated of even date herewith,
between Mortgagor and Lender (the “Senior Loan”),
Pledgors hereby agree that such person’s rights with respect to the Senior Loan
and all future advances and all modifications, amendments, increases, renewals
or extensions thereof, and all of its present and future rights, title,
security and lien interest as holder of the Senior Loan or otherwise with
respect to the Property shall be deemed unconditionally and absolutely
automatically subordinated as to right and time of payment and made junior in
priority to any Secured Obligations and/or any lien of Lender with respect to
the Loan and/or with respect to the Property, to the full extent of all
indebtedness now or hereafter secured by the Senior Loan, including any and all
future advances and all modifications, amendments, increases, renewals and
extensions of the Senior Loan from time to time (all of the foregoing are
hereinafter collectively, the “Senior Loan Interest”).  In addition, Pledgors hereby collaterally
assign and grant to Lender a security interest in any interest it may have, now
or in the future, in the Senior Loan, including the Senior Loan Interest.  In addition, Pledgors agree to cause any
Affiliate of Pledgors that should acquire the Senior Loan to immediately
collaterally assign all of such person’s rights with respect to the Senior Loan
and the Senior Loan Interest to Lender and to execute all documents reasonably
deemed necessary or beneficial by Lender to evidence and perfect a first
priority lien in same.  Each Pledgor
hereby acknowledges and agrees on behalf of itself and any such Affiliate that
the foregoing provision shall be operative without the necessity of execution
of any further documents. 
Notwithstanding the foregoing, upon the request of Lender, Pledgors
hereby agree to execute or cause the execution by any Affiliate of Pledgors of
a subordination 

 6
 

agreement, in form and
content reasonably acceptable to Lender, evidencing the provisions of this
Section.

(i)            Issuance of Interests or
Securities.  Without the prior
written consent of Lender, Pledgors shall not directly or indirectly vote to
enable, or take any other action to permit, Mortgagor to issue any limited
liability company interests or to issue additional securities convertible into
or granting the right to purchase or exchange for any interests of or in
Mortgagor.

5.             The
Lender.

(a)           Lender Appointed Attorney-in-Fact.  Pledgors hereby irrevocably appoint the
Lender as Pledgors’ attorney-in-fact, with full power and authority in the name
and place of Pledgors or otherwise, (i) to take any action and to execute any
instrument which the Lender may deem necessary or advisable to perfect the
security interest granted hereby and (ii) after an Event of Default, to
exercise any and all of its rights and remedies hereunder as the legal, record
and beneficial owner of the Pledged Interest. 
The power of attorney granted pursuant to this Section 5 is
coupled with an interest and is irrevocable.

(b)           Lender May Perform.  If Pledgors fail to perform any agreement
contained herein, the Lender may cause the same to be performed and the Lender’s
reasonable expenses incurred in connection therewith shall be payable by
Pledgors.

(c)           Lender Has No Duty.  The powers conferred on the Lender hereunder
are solely to protect its interest in the Collateral and shall not impose any
duty on it to exercise any such powers. 
Except for reasonable care of any Collateral in its possession, the
Lender shall have no duty with respect to any Collateral.

6.             Event of Default.  As used in this Agreement, an “Event of
Default” shall mean the occurrence of any one or more of the following:

(a)           any failure in the observance or
performance by Pledgors of any of its obligations, covenants or duties with
respect to Sections 4(a) and 4(c) hereof; or

(b)           any other failure in the observance
or performance by Pledgors of any of its obligations, covenants or duties
hereunder which in the case of a failure to pay when due any amount required
under this Agreement continues for a period of 5 business days after notice of
such failure by Lender to Pledgors or with respect to any other such failure
continues for a period of twenty (20) days after notice of such failure by
Lender to Pledgors and if Pledgors promptly commence such cure within the 20
day period and diligently prosecutes the same to completion, then the cure
period shall be extended for such period of time as may be reasonably necessary
to effect a cure but in no event shall such period exceed 60 days; or

(c)           any representation or warranty made
by Pledgors herein proves to be false or misleading in any material respect; or

 7
 

(d)           the occurrence of an Event of Default
as defined in the Loan Agreement or in the Note.

7.             Remedies.

(a)           Certain Remedies.  If any Event of Default shall have occurred
and be continuing:

(i)                                     Lender
shall have the right, without any further action or consent of Pledgors to
immediately direct the Mortgagor to identify the Lender or its designee on its
books and records as the record, legal and beneficial owner of the Pledged
Interest in full substitution of Pledgors. 
The Lender or its designee shall thereafter have the sole right to
exercise all rights, privileges, options and powers relating to the Pledged Interests.

(ii)                                  The
Lender shall have the right, without the necessity of becoming the record and
legal owner of the Pledged Interest as provided in Section 7(a)(i), to
exercise in its sole discretion the voting power and all other rights of
ownership with respect to any Pledged Interests.  All proceeds of the Collateral shall
immediately be paid to Lender and shall be applied by Lender in accordance with
the terms hereof.

(iii)                               The
Lender shall have all of the rights and remedies of a secured party under the
UCC.  In the exercise of such rights and
remedies Lender may, without notice except as specified below, sell the
Collateral or any part thereof at one or more public or private sales held at
any of the Lender’s offices or elsewhere, for cash, on credit or for future
delivery, and upon such other terms as the Lender may deem reasonable.  Pledgors agree that any private sale may
result in prices and other terms less favorable then if such sale were a public
sale.  Pledgors agree that, to the extent
notice of sale shall be required by law, at least ten (10) days’ prior notice
to Pledgors of the time and place of any public sale or the time after which
any private sale is to be made shall constitute reasonable notification.  The Lender shall not be obligated to make any
sale of Collateral regardless of notice of sale having been given.  The Lender may adjourn any public or private
sale from time to time by announcement at the time and place fixed therefor,
and such sale may, without further notice, be made at the time and place to
which it was so adjourned.

(b)           Compliance with Restrictions.  In any public or private sale of any of the
Collateral, the Lender is authorized to comply with any limitation or
restriction in connection with such sale as it may be advised by counsel is
necessary in order to comply with, or otherwise avoid any violation of
applicable law regarding any public or private 

 8
 

sale, including any
required approval of the sale or of the purchaser by any governmental
regulatory authority or official.  Such
compliance shall not result in such sale being considered or deemed not to have
been made in a commercially reasonable manner. 
The Lender shall not be liable or accountable to Pledgors for any price
reduction resulting from, or expense incurred as a result of, Lender’s
compliance with any such limitation or restriction.  The Lender shall be under no obligation to
delay any sale of any of the Collateral for the period of time necessary to
permit the Mortgagor or Pledgors to register such Collateral for public sale
under the Securities Act of 1933, as amended from time to time, or under
applicable state securities laws.

(c)           Application of Proceeds.  All cash proceeds received by the Lender in
respect of any sale of all or any part of the Collateral may be held by the
Lender as additional Collateral security for, or then or at any time thereafter
be applied in whole or in part by the Lender against all or any part of the
Secured Obligations in such order as the Lender shall elect.  Any surplus of such cash or cash proceeds
held by the Lender and remaining after payment in full of all the Secured
Obligations shall be paid over to Pledgors or to whomsoever may be lawfully
entitled to receive such surplus.

(d)           Indemnity and Expenses.  Pledgors hereby agree to indemnify and hold
harmless the Lender and its agents, representatives and independent contractors
from and against any and all claims, losses and liabilities arising out of or
resulting from this Agreement (including enforcement of this Agreement and actions taken to perfect the security
interest in the Collateral), except claims, losses or liabilities to the
extent resulting from the Lender’s or its agents’, representatives’ and
independent contractors’ gross negligence or willful misconduct.  Upon demand, Pledgors agree to pay to the Lender
the amount of any and all reasonable expenses, including the reasonable fees
and disbursements of its counsel and of any experts and agents, which the
Lender may incur, together with interest thereon at the rate of twelve and
one-half percent (12 1⁄2 %) per annum from the date incurred until the date paid,
in connection with the exercise or enforcement of any of the rights of the
Lender hereunder (including a sale of the Collateral) as well as the failure by
Pledgors to perform or observe any of the provisions hereof.

(e)           Remedies Cumulative.  No remedy or right of the Lender hereunder,
under any of the Loan Documents or otherwise available under applicable law or
in equity, shall be exclusive of any other right or remedy.  Each such remedy or right shall be in
addition to every other remedy or right now or hereafter existing under
applicable law or in equity.  No delay in
the exercise of, or omission to exercise, any remedy or right after any Event
of Default shall impair any such remedy or right or be construed as a waiver of
any such Event of Default or an acquiescence thereto, nor shall it affect any
subsequent Event of Default of the same or different nature.  Every remedy or right may be exercised
concurrently or independently and when and as often as may be deemed necessary
by Lender.

 9
 

8.             Miscellaneous

(a)           Amendments.  No amendment to or waiver of any provision of
this Agreement nor consent to any departure by Pledgors herefrom shall in any
event be effective unless the same shall be in writing and signed by the
Lender, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which it is given.

(b)           Protection of Collateral.  The Lender may take any action which the
Lender reasonably deems necessary for the maintenance, preservation or
protection of any of the Collateral or of its security interest therein.

(c)           Notices.  Any notice, election, communication, request,
approval or other document or demand required or permitted under this Agreement
shall be in writing and shall be given in the manner provided in the Loan
Agreement.  The addresses of the parties
for such purpose (subject to change upon notice) are as follows:

If to Lender:                                                                               Behringer
Harvard TCU, LLC

15601 Dallas Parkway, Suite 600

Addison, Texas 75001

Attn: Chief Legal Officer

Facsimile: (214) 655-1610

with copy to:                                                                          Powell
& Coleman, L.L.P.

8080 North Central Expressway, Suite 1380

Dallas, Texas 75206

Attn: Carol D. Satterfield

Facsimile: (214) 373-8768

If to Borrowers:                                                             Phoenix
Berry Street Limited Partnership

and Phoenix G.P. XVIII, Inc.,

c/o Phoenix Property Company

2626 Howell St., Suite 800

Dallas, Texas 75204

Attn: Jason P. Runnels

Facsimile: (214) 880-0320

with copy to:                                                                          Brookfield
Real Estate Opportunity Fund

BCE Place, 181 Bay St., Suite 300

Toronto, Ontario

Canada M5J 2T3

Attn: David Arthur

Facsimile: (416) 359-8650

 10
 

and with copy to:                                                   Stutzman,
Bromberg, Esserman & Plifka

2323 Bryan St., Suite 2200

Dallas, Texas 75201

Attn: John J. Reoch, Jr.

Facsimile: (214) 969-4999

(d)           Section Captions.  Section captions used in this Agreement are
for convenience of reference only, and shall not affect the construction of
this Agreement.

(e)           Severability.  Wherever possible each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement shall be
prohibited by or invalid under such law, such provision shall be ineffective to
the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement.

(f)            Entire Agreement.  This Agreement and the other Loan Documents
constitute the entire understanding among the parties hereto with respect to
the subject matter hereof and supersede any prior agreements, written or oral,
with respect thereto.

(g)           Governing Law.  This Agreement shall be governed by, and
construed in accordance with, the substantive law of the State of Texas without
regard to the application of choice of law principles.  Pledgors and Lender each hereby consent to
the personal jurisdiction of the state courts of the State of Texas located in
Tarrant County, Texas in any action that may be commenced to enforce rights
hereunder.

(h)           Waiver of Jury Trial.  PLEDGORS HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE ANY RIGHT THAT PLEDGORS MAY HAVE TO A TRIAL BY JURY IN ANY
LITIGATION ARISING IN ANY WAY IN CONNECTION WITH THIS AGREEMENT, OR ANY OTHER
STATEMENTS OR ACTIONS RELATED HERETO. 
PLEDGORS ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR THE
LENDER TO DISBURSE THE LOAN AND TO ENTER INTO THE OTHER LOAN DOCUMENTS.  BY ITS ACCEPTANCE OF THIS AGREEMENT LENDER
HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT LENDER MAY
HAVE TO A TRIAL BY JURY IN ANY LITIGATION ARISING IN ANY WAY IN CONNECTION WITH
THIS AGREEMENT, OR ANY OTHER STATEMENTS OR ACTIONS RELATED HERETO.

(i)            Successors and Assigns.  This Agreement shall inure to the benefit of
Lender and its respective successors, assigns and representatives and shall
bind Pledgors and their respective successors, assigns and representatives.

(j)            Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute but one and the same document.

 11
 

(k)           Irrevocable Authorization and
Instruction to Mortgagor.  Pledgors
authorize and instruct the Mortgagor to comply with any instruction received by
it and given by Lender in accordance with this Agreement concerning the
Collateral or this Agreement.

(l)            Sole and Absolute Discretion.  Any option, consent, approval, discretion or
similar right of Lender set forth in this Agreement may be exercised by Lender
in its sole, absolute and unreviewable discretion, unless the provisions of this
Agreement specifically require another standard for such option, consent,
approval, discretion or similar right.

(m)          Assignment of Interest.  Without limiting any rights of Lender set
forth herein, Lender agrees to hold the Assignment of Interest in trust until
such time as Lender exercises its rights with respect to the Assignment of
Interest as set forth in this Agreement. When the Indebtedness is paid in full
and if Lender has not exercised its rights under this Agreement with respect to
the Assignment of Interest, Lender shall, at Pledgors request, return to
Pledgors or destroy the Assignment of Interest.

9.             Accommodation.  Pledgors have executed and delivered this
Agreement as an accommodation and in order to induce Lender to make the
Loan.  Accordingly, to the fullest extent
permitted by law, Pledgors agree that they shall not assert or take advantage
of, and hereby waive, all the following:

(a)           Any right to require Lender to (i)
proceed against the Mortgagor or any other person or (ii) to proceed against or
exhaust any other security held by Lender at any time or (iii) to pursue any
other remedy in Lender’s power before exercising any right or remedy under this
Agreement;

(b)           Any defense that may arise by reason
of:

(i)                                     Any
of the matters set forth in Section 2(e) hereof (as more particularly provided
in such section); or

(ii)                                  The
release, suspension, discharge or impairment of any of Lender’s rights against
the Mortgagor or any other party against whom Lender might assert a claim,
whether such release, suspension, discharge or impairment is explicit, tacit or
inadvertent; or

(iii)                               Lender’s
failure to pursue any other remedies available to Lender that would reduce the
Secured Obligations or the obligations under the Senior Loan; or

(iv)                              The
lack of authority of the Mortgagor or any other person or persons; or

 12
 

(v)                                 The
failure of Lender to file or enforce a claim against the estate (in either
administration, bankruptcy or any other proceedings) of Mortgagor or any other
person or persons;

(c)           Demand, protest and notice of any
kind, including, without limitation, the following notices (but excluding any
and all rights of grace, notice or opportunity for cure expressly provided in
the Loan Documents):

(i)                                     Notice
of the evidence, creation or incurring of any new or additional indebtedness or
obligation under the Loan Documents; or

(ii)                                  Notice
of any action or non-action on the part of Mortgagor or Lender in connection
with any of the Senior Loan or any of the collateral security the Senior Loan;
or

(iii)                               Notice
of payment or non-payment by Pledgors of the Secured Obligations;

(d)           Any right to assert against the
Lender any defense arising by reason of any claim or defense based upon an
election of remedies by the Lender;

(e)           Any rights arising because of Pledgors’
payment or satisfaction of the Secured Obligations against (i) the Mortgagor,
by way of subrogation to the rights of Lender or otherwise or (ii) any other
guarantor or any other party obligated to pay any of the indebtedness secured
hereby, by way of contribution or reimbursement or otherwise;

(f)            Any duty on the part of Lender to
disclose to Pledgors any default under the Loan Documents;

(g)           Any duty on the part of Lender to
disclose to Pledgors any facts Lender may now know or may hereafter know about the
Mortgagor regardless of whether Lender (i) has reason to believe that any such
facts materially increase the risk beyond the risk which Pledgors intend to
assume by executing this Agreement, (ii) has reason to believe that these facts
are unknown to or (iii) has a reasonable opportunity to communicate such facts
to Pledgors.  Pledgors shall be fully
responsible for being and keeping informed of the financial condition of the
Mortgagor or any successor in interest of the Mortgagor and of all circumstances
bearing on the risk of non-payment of any of the Senior Loan; or

(h)           Subject to the other express
provisions hereof and of applicable law regarding the manner of sale, any right
to object to the release of any portions of the collateral (including the Collateral)
from the lien of this Agreement or the Loan Documents notwithstanding the fact
that such releases may be made without Lender’s having received any or adequate
consideration therefor.

Lender may, without demand or notice to or consent of
Pledgors (i) release any party now or hereafter liable for the performance of
the Secured Obligations, (ii) extend the time for the performance of the
Secured Obligations, (iii) accept additional security for the Secured 

 13
 

Obligations, and (iv)
alter, substitute or release any property securing such payment or performance.

Before executing this Agreement, Pledgors have made
such independent legal and factual inquiries and investigations as Pledgors
deemed necessary or desirable with respect to the ability of Mortgagor to
perform all its obligations under the Senior Loan Documents.  Pledgors have relied solely on such
independent inquiries and investigations in entering into this Agreement.

The provisions of this Section 9 shall be in
addition to, and shall not in any manner limit or alter, the provisions of Section
2(e) and (f).

[Signatures Follow
on Next Page]

 14

IN WITNESS WHEREOF, the undersigned have duly executed
and delivered this Agreement as of the day and year first above written.

	
  

  	
  PLEDGORS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BREOF TCU GP LLC,

  	
   

  
	
   

  	
  a Delaware limited liability company

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Steven Ganeless

  	
   

  
	
   

  	
  Name:

  	
   Steven Ganeless

  	
   

  
	
   

  	
  Title:

  	
   Authorized Signing Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BREOF TCU LLC,

  	
   

  
	
   

  	
  a Delaware limited liability company

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Steven Ganeless

  	
   

  
	
   

  	
  Name:

  	
   Steven Ganeless

  	
   

  
	
   

  	
  Title:

  	
   Authorized Signing Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PHOENIX BERRY STREET LIMITED PARTNERSHIP,

  	
   

  
	
   

  	
  a Texas limited partnership

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Phoenix G.P. XVIII, Inc.,

  	
   

  
	
   

  	
   

  	
  a Texas corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Jason P. Runnels

  	
   

  
	
   

  	
   

  	
  Name:

  	
   Jason P. Runnels

  	
   

  
	
   

  	
   

  	
  Title:

  	
   Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PHOENIX G.P. XVIII, INC.,

  	
   

  
	
   

  	
  a Texas corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jason P. Runnels

  	
   

  
	
   

  	
  Name:

  	
   Jason P. Runnels

  	
   

  
	
   

  	
  Title:

  	
   Vice President

  	
   

  
											

 

 

	
  

  	
  LENDER

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BEHRINGER HARVARD TCU, LLC

  	
   

  
	
   

  	
  a Delaware limited liability company

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Gerald J. Reihsen, III

  	
   

  
	
   

  	
   

  	
   Gerald J. Reihsen, III

  	
   

  
	
   

  	
   

  	
   Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]