Document:

Exhibit 10.5

Loan No. 502858632

 

PREPARED BY AND UPON

RECORDATION RETURN TO:

Proskauer Rose LLP

1585 Broadway

New York, New York  10036

Attention:  David J. Weinberger, Esq.

Telephone:  212-969-3405

 

BEHRINGER HARVARD ELDRIDGE PLACE LP, as Borrower (Borrower)

to

WACHOVIA BANK, NATIONAL ASSOCIATION, as Lender (Lender)

 

ASSIGNMENT OF LEASES AND RENTS

 

Dated:         As
of December             ,
2006

 

 

ASSIGNMENT OF LEASES AND RENTS

THIS ASSIGNMENT OF LEASES AND RENTS (this “Assignment”) made as of the        
day of December, 2006, by BEHRINGER HARVARD ELDRIDGE
PLACE LP, a Delaware limited partnership, as assignor, having its
principal place of business c/o Behringer Harvard Funds, 15601 Dallas Parkway,
Suite 600, Addison, Texas 75001 (“Borrower”) to WACHOVIA BANK, NATIONAL
ASSOCIATION, a banking
association chartered under the laws of the United States of America,
having its principal place of business at Wachovia
Bank, National Association, Commercial Real Estate Services, 8739
Research Drive URP 4, NC 1075, Charlotte, North Carolina  28262 (“Lender”).

W I T N E S S E T H:

WHEREAS, this Assignment is given in connection with a
loan in the principal sum of Seventy-Five Million and No/100 Dollars
($75,000,000) (the “Loan”) made by
Lender to Borrower pursuant to that certain Loan Agreement, dated as of the
date hereof (as the same may hereafter be amended, restated, replaced,
supplemented, renewed, extended or otherwise modified from time to time, the “Loan Agreement”) and evidenced by that certain Promissory
Note, dated the date hereof, given by Borrower to Lender (as the same may
hereafter be amended, restated, replaced, supplemented, renewed, extended or otherwise
modified from time to time, the “Note”);

WHEREAS, Borrower desires to secure the payment of the
Debt (as defined in the Loan Agreement) and the performance of all of its
obligations under the Note, the Loan Agreement and the other Loan Documents;
and

WHEREAS, this Assignment is given pursuant to the Loan
Agreement, and payment, fulfillment, and performance by Borrower of its
obligations thereunder and under the other Loan Documents is secured hereby,
and each and every term and provision of the Loan Agreement and the Note,
including the rights, remedies, obligations, covenants, conditions, agreements,
indemnities, representations and warranties therein, are hereby incorporated by
reference herein as though set forth in full and shall be considered a part of
this Assignment.

NOW THEREFORE, in consideration of the making of the
Loan by Lender and the covenants, agreements, representations and warranties
set forth in this Assignment:

ARTICLE 1 - ASSIGNMENT

Section 1.1             Property Assigned.  Borrower hereby absolutely and
unconditionally assigns and grants to Lender the following property, rights,
interests and estates, now owned, or hereafter acquired by Borrower:

(a)           Leases.  All leases, subleases or subsubleases,
lettings, licenses, concessions or other agreements made a part thereof
(whether written or oral and whether now or hereafter in effect), pursuant to
which any Person is granted a possessory interest in, or a right to use or
occupy, all or any portion of any space in that certain lot or piece of land,
more particularly described in Exhibit A annexed hereto and made a part
hereof, together with the buildings, structures, fixtures, additions,
enlargements, extensions, modifications, repairs,

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replacements and improvements now or hereafter located
thereon (collectively, the “Property”) and
every modification, amendment or other agreement relating to such leases,
subleases, subsubleases, or other agreements entered into in connection with
such leases, subleases, subsubleases, or other agreements and every guarantee
of the performance and observance of the covenants, conditions and agreements
to be performed and observed by the other party thereto, and the right, title
and interest of Borrower, its successors and assigns, therein and thereunder.

(b)           Other Leases and Agreements.  All other leases and other agreements,
whether or not in writing, providing for the use, enjoyment or occupancy of the
Property or any portion thereof now or hereafter made, whether made before or
after the filing by or against Borrower of any petition for relief under the
Bankruptcy Code together with any extension, renewal or replacement of the
same.  This Assignment of other present
and future leases and present and future agreements being effective without
further or supplemental assignment.  The “leases”
described in Subsection 1.1(a) and the leases and other agreements
described in this Subsection 1.1(b) are collectively referred to as the “Leases.”

(c)           Rents.  All rents, rent equivalents, income,
receivables, revenues, receipts, insurance proceeds, deposits and profits
arising from the Leases and renewals thereof together with all rents, rent
equivalents, income, fees, receivables, accounts, profits (including, but not
limited to, all oil and gas or other mineral royalties and bonuses), charges
for services rendered and any and all payment and consideration of whatever
form or nature received by Borrower or its agents or employees from any and all
sources relating to the use, enjoyment and occupancy of the Property whether paid
or accruing before or after the filing by or against Borrower of any petition
for relief under the Bankruptcy Code (collectively, the “Rents”).

(d)           Bankruptcy Claims.  All of Borrower’s claims and rights (the “Bankruptcy Claims”) to the payment of damages arising from
any rejection by a lessee of any Lease under the Bankruptcy Code.

(e)           Lease Guaranties.  All of Borrower’s right, title and interest
in and claims under any and all lease guaranties, letters of credit and any
other credit support (individually, a “Lease Guaranty,”
collectively, the “Lease Guaranties”)
given by any guarantor in connection with any of the Leases or leasing
commissions (individually, a “Lease Guarantor,”
collectively, the “Lease Guarantors”)
to Borrower.

(f)            Proceeds.  All proceeds from the sale or other
disposition of the Leases, the Rents, the Lease Guaranties and the Bankruptcy
Claims.

(g)           Other.  All rights, powers, privileges, options and
other benefits of Borrower as lessor under the Leases and beneficiary under the
Lease Guaranties, including without limitation the immediate and continuing
right to make claim for, receive and collect all Rents payable or receivable
under the Leases and all sums payable under the Lease Guaranties or pursuant
thereto (and to apply the same to the payment of the Debt or the Other
Obligations), and to do all other things which Borrower or any lessor is or may
become entitled to do under the Leases or the Lease Guaranties.

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(h)           Entry.  The right, at Lender’s option, upon
revocation of the license granted herein, to enter upon the Property in person,
by agent or by court-appointed receiver, to collect the Rents.

(i)            Power of Attorney.  Borrower’s irrevocable power of attorney,
coupled with an interest, to take any and all of the actions set forth in
Section 3.1 of this Assignment and any or all other actions designated by
Lender for the proper management and preservation of the Property.

(j)            Other Rights and Agreements.  Any and all other rights of Borrower in and
to the items set forth in subsections (a) through (i) above, and all
amendments, modifications, replacements, renewals and substitutions thereof.

ARTICLE 2 - TERMS OF ASSIGNMENT

Section 2.1             Present Assignment And License
Back.  It is intended by Borrower
that this Assignment constitute a present, absolute assignment of the Leases,
Rents, Lease Guaranties and Bankruptcy Claims, and not an assignment for
additional security only.  Nevertheless,
subject to the terms of this Section 2.1 and the Cash Management Agreement,
Lender grants to Borrower a revocable license to collect, receive, use and
enjoy the Rents and other sums due under the Lease Guaranties and Borrower
shall hold such Rents and all sums received pursuant to any Lease Guaranty, or
a portion thereof sufficient to discharge all current sums due on the Debt, in
trust for the benefit of Lender for use in the payment of such sums.

Section 2.2             Notice To Lessees.  Borrower hereby authorizes and directs the
lessees named in the Leases or any other future lessees or occupants of the
Property and all Lease Guarantors to pay over to Lender or to such other party
as Lender directs all Rents and all sums due under any Lease Guaranties upon
receipt from Lender of written notice to the effect that Lender is then the
holder of this Assignment and that an Event of Default (as defined in the Loan
Agreement) exists, and to continue so to do until otherwise notified by Lender.

Section 2.3             Incorporation By Reference.  All representations, warranties, covenants,
conditions and agreements contained in the Loan Agreement and the other Loan
Documents as same may be modified, renewed, substituted or extended are hereby
made a part of this Assignment to the same extent and with the same force as if
fully set forth herein.

ARTICLE 3- REMEDIES

Section 3.1             Remedies of Lender.  Upon or at any time after the occurrence of
an Event of Default, the license granted to Borrower in Section 2.1 of this
Assignment shall automatically be revoked, and Lender shall immediately be
entitled to possession of all Rents and sums due under any Lease Guaranties,
whether or not Lender enters upon or takes control of the Property.  In addition, Lender may, at its option,
without waiving such Event of Default, without regard to the adequacy of the security
for the Debt, either in person or by agent, nominee or attorney, with or
without bringing any action or proceeding, or by a receiver appointed by a
court, dispossess Borrower and its agents and servants from the Property,
without liability for trespass, damages or otherwise and exclude Borrower and
its agents or servants wholly therefrom, and take possession of the Property
and all books, records and accounts relating

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thereto and have, hold, manage, lease and operate the
Property on such terms and for such period of time as Lender may deem proper
and either with or without taking possession of the Property in its own name,
demand, sue for or otherwise collect and receive all Rents and sums due under
all Lease Guaranties, including those past due and unpaid with full power to
make from time to time all alterations, renovations, repairs or replacements
thereto or thereof as Lender may deem proper and may apply the Rents and sums
received pursuant to any Lease Guaranties to the payment of the following in
such order and proportion as Lender in its sole discretion may determine, any
law, custom or use to the contrary notwithstanding:  (a) all expenses of managing and
securing the Property, including, without being limited thereto, the salaries,
fees and wages of a managing agent and such other employees or agents as Lender
may deem necessary or desirable and all expenses of operating and maintaining
the Property, including, without being limited thereto, all taxes, charges,
claims, assessments, water charges, sewer rents and any other liens, and premiums
for all insurance which Lender may deem necessary or desirable, and the cost of
all alterations, renovations, repairs or replacements, and all expenses
incident to taking and retaining possession of the Property; and (b) the
Debt, together with all costs and reasonable attorneys’ fees.  In addition, upon the occurrence of an Event
of Default, Lender, at its option, may (1) complete any construction on
the Property in such manner and form as Lender deems advisable,
(2) exercise all rights and powers of Borrower, including, without
limitation, the right to negotiate, execute, cancel, enforce or modify any
Leases, obtain and evict tenants, and demand, sue for, collect and receive all
Rents from the Property and all sums due under any Lease Guaranties, (3) require
Borrower to pay monthly in advance to Lender, or any receiver appointed to
collect the Rents, the fair and reasonable rental value for the use and
occupancy of such part of the Property as may be in possession of Borrower or
(4) require Borrower to vacate and surrender possession of the Property to
Lender or to such receiver and, in default thereof, Borrower may be evicted by
summary proceedings or otherwise.

Section 3.2             Other Remedies.  Nothing contained in this Assignment and no
act done or omitted by Lender pursuant to the power and rights granted to
Lender hereunder shall be deemed to be a waiver by Lender of its rights and
remedies under the Loan Agreement, the Note, or the other Loan Documents and
this Assignment is made and accepted without prejudice to any of the rights and
remedies possessed by Lender under the terms thereof.  The right of Lender to collect the Debt and
to enforce any other security therefor held by it may be exercised by Lender
either prior to, simultaneously with, or subsequent to any action taken by it
hereunder.  Borrower hereby absolutely,
unconditionally and irrevocably waives any and all rights to assert any setoff,
counterclaim or crossclaim of any nature whatsoever with respect to the
obligations of Borrower under this Assignment, the Loan Agreement, the Note,
the other Loan Documents or otherwise with respect to the Loan in any action or
proceeding brought by Lender to collect same, or any portion thereof, or to
enforce and realize upon the lien and security interest created by this
Assignment, the Loan Agreement, the Note, or any of the other Loan Documents
(provided, however, that the foregoing shall not be deemed a waiver of Borrower’s
right to assert any compulsory counterclaim if such counterclaim is compelled
under local law or rule of procedure, nor shall the foregoing be deemed a
waiver of Borrower’s right to assert any claim which would constitute a
defense, setoff, counterclaim or crossclaim of any nature whatsoever against
Lender in any separate action or proceeding).

Section 3.3             Other Security.  Lender may take or release other security for
the payment of the Debt, may release any party primarily or secondarily liable
therefor and may

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apply any other security held by it to the reduction
or satisfaction of the Debt without prejudice to any of its rights under this
Assignment.

Section 3.4             Non-Waiver.  The exercise by Lender of the option granted
it in Section 3.1 of this Assignment and the collection of the Rents and sums
due under the Lease Guaranties and the application thereof as herein provided
shall not be considered a waiver of any default by Borrower under the Note, the
Loan Agreement, the Leases, this Assignment or the other Loan Documents.  The failure of Lender to insist upon strict
performance of any term hereof shall not be deemed to be a waiver of any term
of this Assignment.  Borrower shall not
be relieved of Borrower’s obligations hereunder by reason of (a) the
failure of Lender to comply with any request of Borrower or any other party to
take any action to enforce any of the provisions hereof or of the Loan
Agreement, the Note or the other Loan Documents, (b) the release
regardless of consideration, of the whole or any part of the Property, or
(c) any agreement or stipulation by Lender extending the time of payment
or otherwise modifying or supplementing the terms of this Assignment, the Loan
Agreement, the Note, or the other Loan Documents.  Lender may resort for the payment of the Debt
to any other security held by Lender in such order and manner as Lender, in its
discretion, may elect.  Lender may take
any action to recover the Debt, or any portion thereof, or to enforce any
covenant hereof without prejudice to the right of Lender thereafter to enforce
its rights under this Assignment.  The rights
of Lender under this Assignment shall be separate, distinct and cumulative and
none shall be given effect to the exclusion of the others.  No act of Lender shall be construed as an
election to proceed under any one provision herein to the exclusion of any
other provision.

Section 3.5             Bankruptcy.  (a) 
Upon or at any time after the occurrence of an Event of Default, Lender
shall have the right to proceed in its own name or in the name of Borrower in
respect of any claim, suit, action or proceeding relating to the rejection of
any Lease, including, without limitation, the right to file and prosecute, to
the exclusion of Borrower, any proofs of claim, complaints, motions,
applications, notices and other documents, in any case in respect of the lessee
under such Lease under the Bankruptcy Code.

(b)           If there shall be filed by or against
Borrower a petition under the Bankruptcy Code, and Borrower, as lessor under
any Lease, shall determine to reject such Lease pursuant to Section 365(a)
of the Bankruptcy Code, then Borrower shall give Lender not less than ten (10)
days’ prior notice of the date on which Borrower shall apply to the bankruptcy
court for authority to reject the Lease. 
Lender shall have the right, but not the obligation, to serve upon
Borrower within such ten-day period a notice stating that (i) Lender
demands that Borrower assume and assign the Lease to Lender pursuant to
Section 365 of the Bankruptcy Code and (ii) Lender covenants to cure
or provide adequate assurance of future performance under the Lease.  If Lender serves upon Borrower the notice
described in the preceding sentence, Borrower shall not seek to reject the
Lease and shall comply with the demand provided for in clause (i) of the
preceding sentence within thirty (30) days after the notice shall have been
given, subject to the approval of the bankruptcy court having jurisdiction over
the case and to the performance by Lender of the covenant provided for in
clause (ii) of the preceding sentence.

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ARTICLE 4 - NO LIABILITY, FURTHER ASSURANCES

Section 4.1             No Liability of Lender.  This Assignment shall not be construed to
bind Lender to the performance of any of the covenants, conditions or
provisions contained in any Lease or Lease Guaranty or otherwise impose any
obligation upon Lender.  Lender shall not
be liable for any loss sustained by Borrower resulting from Lender’s failure to
let the Property after an Event of Default or from any other act or omission of
Lender in managing the Property after an Event of Default unless such loss is
caused by the willful misconduct and bad faith of Lender.  Lender shall not be obligated to perform or
discharge any obligation, duty or liability under the Leases or any Lease
Guaranties or under or by reason of this Assignment and Borrower shall, and
hereby agrees to, indemnify Lender for, and to hold Lender harmless from, any
and all liability, loss or damage which may or might be incurred under the
Leases, any Lease Guaranties or under or by reason of this Assignment and from
any and all claims and demands whatsoever, including the defense of any such
claims or demands which may be asserted against Lender by reason of any alleged
obligations and undertakings on its part to perform or discharge any of the
terms, covenants or agreements contained in the Leases or any Lease
Guaranties.  Should Lender incur any such
liability, the amount thereof, including costs, expenses and reasonable
attorneys’ fees, shall be secured by this Assignment, the Mortgage and the
other Loan Documents and Borrower shall reimburse Lender therefor immediately
upon demand and upon the failure of Borrower so to do Lender may, at its
option, declare all sums secured by this Assignment, the Mortgage and the other
Loan Documents immediately due and payable. 
This Assignment shall not operate to place any obligation or liability
for the control, care, management or repair of the Property upon Lender, nor
for the carrying out of any of the terms and conditions of the Leases or any
Lease Guaranties; nor shall it operate to make Lender responsible or liable for
any waste committed on the Property by the tenants or any other parties, or for
any dangerous or defective condition of the Property including, without
limitation, the presence of any Hazardous Substances (as defined in the
Environmental Indemnity), or for any negligence in the management, upkeep,
repair or control of the Property resulting in loss or injury or death to any
tenant, licensee, employee or stranger.

Section 4.2             No Mortgagee in Possession.  Nothing herein contained shall be construed as
constituting Lender a “mortgagee in possession” in the absence of the taking of
actual possession of the Property by Lender. 
In the exercise of the powers herein granted Lender, no liability shall
be asserted or enforced against Lender, all such liability being expressly
waived and released by Borrower.

(a)           Further Assurances.  Borrower will, at the cost of Borrower, and
without expense to Lender, do, execute, acknowledge and deliver all and every
such further acts, conveyances, assignments, notices of assignments, transfers
and assurances as Lender shall, from time to time, reasonably require for the
better assuring, conveying, assigning, transferring and confirming unto Lender
the property and rights hereby assigned or intended now or hereafter so to be,
or which Borrower may be or may hereafter become bound to convey or assign to
Lender, or for carrying out the intention or facilitating the performance of
the terms of this Assignment or for filing, registering or recording this
Assignment and, on demand, will execute and deliver and hereby authorizes
Lender to execute in the name of Borrower to the extent Lender may lawfully do
so, one or more financing statements, chattel mortgages or comparable security
instruments, to evidence more effectively the lien and security interest hereof
in and upon the Leases.

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ARTICLE 5 - MISCELLANEOUS PROVISIONS

Section 5.1             Conflict of Terms.  In case of any conflict between the terms of
this Assignment and the terms of the Loan Agreement, the terms of the Loan Agreement
shall prevail.

Section 5.2             No Oral Change.  This Assignment and any provisions hereof may
not be modified, amended, waived, extended, changed, discharged or terminated
orally, or by any act or failure to act on the part of Borrower or Lender, but
only by an agreement in writing signed by the party against whom the
enforcement of any modification, amendment, waiver, extension, change,
discharge or termination is sought.

Section 5.3             General Definitions.  All capitalized terms not defined herein
shall have the respective meanings set forth in the Loan Agreement.  Unless the context clearly indicates a
contrary intent or unless otherwise specifically provided herein, words used in
this Assignment may be used interchangeably in singular or plural form and the
word “Borrower” shall mean “each Borrower and any subsequent owner or owners of
the Property or any part thereof or interest therein,” the word “Lender” shall
mean “Lender and any subsequent holder of the Note”, the word “Note” shall mean
“the Note and any other evidence of indebtedness secured by the Loan Agreement”,
the word “Property” shall include any portion of the Property and any interest
therein, the phrases “attorneys’ fees,” “legal fees” and “counsel fees” shall
include any and all attorney’s, paralegal and law clerk fees and disbursements,
including, but not limited to, fees and disbursements at the pre-trial, trial
and appellate levels incurred or paid by Lender in protecting its interest in
the Property, the Leases and the Rents and enforcing its rights hereunder;
whenever the context may require, any pronouns used herein shall include the
corresponding masculine, feminine or neuter forms, and the singular form of
nouns and pronouns shall include the plural and vice versa.

Section 5.4             Inapplicable Provisions.  If any term, covenant or condition of this
Assignment is held to be invalid, illegal or unenforceable in any respect, this
Assignment shall be construed without such provision.

Section 5.5             Governing Law.  This Assignment shall be governed by and
construed in accordance with the laws of the state in which the Property is
located (without regard to any conflict of laws or principles) and the
applicable laws of the United States of America.

Section 5.6             Termination of Assignment.  Upon payment in full of the Debt, this
Assignment shall become and be void and of no effect.

Section 5.7             Notices.  All notices or other written communications
hereunder shall be delivered in accordance with Section 10.6 of the Loan
Agreement.

Section 5.8             WAIVER OF
TRIAL BY JURY.  BORROWER
HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER IN CONTRACT, TORT OR
OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THIS ASSIGNMENT, THE NOTE, OR THE
OTHER LOAN

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DOCUMENTS OR ANY ACTS OR
OMISSIONS OF LENDER, ITS OFFICERS, EMPLOYEES, DIRECTORS OR AGENTS IN CONNECTION
THEREWITH.

Section 5.9             Exculpation.  The provisions of Section 9.3 of the
Loan Agreement are hereby incorporated by reference into this Assignment to the
same extent and with the same force as if fully set forth herein.

Section 5.10           Successors and Assigns.  This Assignment shall be binding upon and
inure to the benefit of Borrower and Lender and their respective successors and
assigns forever.

Section 5.11           Headings, Etc.  The headings and captions of various
paragraphs of this Assignment are for convenience of reference only and are not
to be construed as defining or limiting, in any way, the scope or intent of the
provisions hereof.

[NO FURTHER TEXT ON THIS
PAGE]

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IN WITNESS WHEREOF, Borrower has executed this
instrument the day and year first above written.

	
  

  	
  BEHRINGER HARVARD ELDRIDGE PLACE

  LP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:  Gerald
  J. Reihsen, III

  	
   

  
	
   

  	
   

  	
  Title:    Secretary

  	
   

  

 

ACKNOWLEDGMENT

	
  STATE OF TEXAS

  	
  )

  	
   

  
	
   

  	
  :

  	
   

  
	
                                             COUNTY

  	
  )

  	
   

  

 

I,
the undersigned, a notary public in and for said county in said state, hereby
certify that GERALD J. REIHSEN, III, whose name as Secretary of BEHRINGER                                 ,
LLC, a Delaware limited liability company, is signed to the foregoing
instrument, and who is known to me, acknowledged before me on this day that,
being informed of the contents of said instrument, he, as such officer and with
full authority, executed the same voluntarily for and as the act of said
limited liability company.

Given
under my hand and official seal this             
day of                                       ,
2006.

	
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public

  
	
   

  	
   

  	
   

  
	
  [NOTARIAL SEAL]

  	
   

  	
  My commission expires:

  	
   

  

 

EXHIBIT A

LEGAL DESCRIPTIONExhibit 10.6

Loan No. 502858632

GUARANTY
AGREEMENT

THIS GUARANTY AGREEMENT (this
“Guaranty”) is executed as of December    ,
2006, by BEHRINGER HARVARD REIT I, INC., a
Maryland corporation, having an address c/o Behringer Harvard Funds, 15601
Dallas Parkway, Suite 600, Addison, Texas 75001 (whether one or more
collectively referred to as “Guarantor”),
for the benefit of WACHOVIA
BANK, NATIONAL ASSOCIATION,
a banking association chartered under the laws of the United States of America,
having an office at Wachovia Bank,
National Association, Commercial Real Estate Services, 8739 Research
Drive URP 4, NC 1075, Charlotte, North Carolina  28262 (“Lender”).

W I T N E S S E T H:

WHEREAS,
pursuant to that certain Promissory Note, dated of even date herewith, executed
by BEHRINGER HARVARD ELDRIDGE PLACE LP, a
Delaware limited partnership (“Borrower”), and
payable to the order of Lender in the original principal amount of Seventy-Five
Million and No/100 Dollars ($75,000,000) (as the same may hereafter be amended,
restated, renewed, supplemented, replaced, extended or otherwise modified from
time to time, the “Note”),
Borrower has become indebted, and may from time to time be further indebted, to
Lender with respect to a loan (the “Loan”) which is
secured by the lien and security interest of that certain Mortgage and Security
Agreement, dated as of the date hereof, made by Borrower for the benefit of
Lender (as the same may hereafter be amended, restated, renewed, supplemented,
replaced, extended or otherwise modified from time to time, the “Security Instrument”), and is further evidenced by that
certain Loan Agreement, of even date herewith between Borrower and Lender (as
the same may hereinafter be amended, modified, restated, renewed or replaced
the “Loan Agreement”) and further evidenced,
secured or governed by such other instruments and documents executed in
connection with the Loan (together with the Note, the Loan Agreement and the
Security Instrument are hereinafter collectively referred to as the “Loan Documents”); and

WHEREAS, Lender
is not willing to make the Loan, or otherwise extend credit, to Borrower unless
Guarantor unconditionally guarantees payment and performance to Lender of the
Guaranteed Obligations (as herein defined); and

WHEREAS,
Guarantor is the owner of a direct or indirect interest in Borrower, and
Guarantor will directly benefit from Lender’s making the Loan to Borrower.

NOW, THEREFORE,
as an inducement to Lender to make the Loan to Borrower, and to extend such
additional credit as Lender may from time to time agree to extend under the
Loan Documents, and for other good and valuable consideration, the receipt and
legal sufficiency of which are hereby acknowledged, the parties do hereby agree
as follows:

 

ARTICLE
I

NATURE
AND SCOPE OF GUARANTY

Section 1.1            GUARANTY OF OBLIGATION.  Guarantor hereby irrevocably and
unconditionally guarantees to Lender and its successors and assigns the payment
and performance of the Guaranteed Obligations as and when the same shall be due
and payable, whether by lapse of time, by acceleration of maturity or
otherwise.  Guarantor hereby irrevocably
and unconditionally covenants and agrees that it is liable for the Guaranteed
Obligations as a primary obligor.

Section 1.2            Definition
of Guaranteed Obligations. 
As used herein, the term “Guaranteed Obligations”
shall (i) mean each of the obligations of Borrower under the Environmental
Indemnity, including without limitation the indemnification provisions
contained therein, and (ii) be deemed to include, and Guarantor shall also be
liable for, and shall indemnify, defend and hold Lender harmless from and
against, any and all Losses (as hereinafter defined) incurred or suffered by
Lender and arising out of or in connection with the matters listed below:

(a)            the misapplication or misappropriation of Rents;

(b)            the misapplication or misappropriation of Insurance
Proceeds or Awards;

(c)            Borrower’s failure to return or to reimburse Lender for
all Personal Property (other than Personal Property not material to the
operation or value of the affected Individual Property) taken from the Property
by or on behalf of Borrower and not replaced with Personal Property of the same
utility and of the same or greater value;

(d)            any act of actual waste or arson by Borrower, any
principal, affiliate, general partner or member thereof or by Guarantor;

(e)            any fees or commissions paid by Borrower to any
principal, affiliate, general partner or member of Borrower or any Guarantor in
violation of the terms of this Guaranty, the other Loan Documents;

(f)             Borrower’s failure to comply with the provisions of Section
9.4 of the Security Instrument;

(g)            so long as Borrower is not required to make payments into
the Tax and Insurance Escrow Fund pursuant to Section 7.2 of the Loan
Agreement, Borrower’s failure to pay all Taxes, prior to delinquency or the
imposition of penalties and interest due thereon, pursuant to the Loan
Agreement;

(h)            any fraud, willful misconduct or intentional material
misrepresentation by Borrower, Principal, Guarantor or any of their respective
Affiliates in connection with the Loan; or

 

(i)             any breach or default of any material provision of Section
4.1.30 of the Loan Agreement (other than breaches of the requirements set
forth in clauses (xii) or (xxiii) of the definition of Special Purpose Entity).

In addition, the
Guaranteed Obligations shall also include the unpaid balance of the Debt in the
event of: (i) a voluntary breach or default under Section 5.2.10 of
the Loan Agreement, (ii) Borrower or Principal filing a voluntary petition under
the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law;
(iii) Borrower or Principal filing an answer consenting to or otherwise
acquiescing in or joining in any involuntary petition filed against it, by any
other Person under the Bankruptcy Code or any other Federal or state bankruptcy
or insolvency law, or soliciting or causing to be solicited petitioning
creditors for any involuntary petition from any Person; (iv) Borrower or
Principal consenting to or acquiescing in or joining in an application for the
appointment of a custodian, receiver, trustee, or examiner for Borrower,
Principal or any portion of the Property; or (v) Borrower or Principal
making an assignment for the benefit of creditors.

Section 1.3            Nature
of Guaranty.  This
Guaranty is an irrevocable, absolute, continuing guaranty of payment and
performance and not a guaranty of collection. 
This Guaranty may not be revoked by Guarantor and shall continue to be
effective with respect to any Guaranteed Obligations arising or created after
any attempted revocation by Guarantor and after (if Guarantor is a natural
person) Guarantor’s death (in which event this Guaranty shall be binding upon
Guarantor’s estate and Guarantor’s legal representatives and heirs).  The fact that at any time or from time to
time the Guaranteed Obligations may be increased or reduced shall not release
or discharge the obligation of Guarantor to Lender with respect to the
Guaranteed Obligations.  This Guaranty
may be enforced by Lender and any subsequent holder of the Note and shall not
be discharged by the assignment or negotiation of all or part of the Note.

Section 1.4            Guaranteed
Obligations Not Reduced by Offset.  The Guaranteed Obligations and the
liabilities and obligations of Guarantor to Lender hereunder, shall not be
reduced, discharged or released because or by reason of any existing or future
offset, claim or defense of Borrower, or any other party, against Lender or
against payment of the Guaranteed Obligations, whether such offset, claim or defense
arises in connection with the Guaranteed Obligations (or the transactions
creating the Guaranteed Obligations) or otherwise.

Section 1.5            Payment
By Guarantor.  If all or
any part of the Guaranteed Obligations shall not be punctually paid when due,
whether at demand, maturity, acceleration or otherwise, Guarantor shall,
immediately upon demand by Lender, and without presentment, protest, notice of
protest, notice of non-payment, notice of intention to accelerate the maturity,
notice of acceleration of the maturity, or any other notice whatsoever, pay in
lawful money of the United States of America, the amount due on the Guaranteed
Obligations to Lender at Lender’s address as set forth herein.  Such demand(s) may be made at any time
coincident with or after the time for payment of all or part of the Guaranteed
Obligations, and may be made from time to time with respect to the same or
different items of Guaranteed Obligations. 
Such demand shall be deemed made, given and received in accordance with
the notice provisions hereof.

Section 1.6            No
Duty To Pursue Others.  It
shall not be necessary for Lender (and Guarantor hereby waives any rights which
Guarantor may have to require Lender), in order

 

to enforce the obligations of Guarantor hereunder,
first to (i) institute suit or exhaust its remedies against Borrower or
others liable on the Loan or the Guaranteed Obligations or any other person,
(ii) enforce Lender’s rights against any collateral which shall ever have
been given to secure the Loan, (iii) enforce Lender’s rights against any
other guarantors of the Guaranteed Obligations, (iv) join Borrower or any
others liable on the Guaranteed Obligations in any action seeking to enforce
this Guaranty, (v) exhaust any remedies available to Lender against any collateral
which shall ever have been given to secure the Loan, or (vi) resort to any
other means of obtaining payment of the Guaranteed Obligations. Lender shall
not be required to mitigate damages or take any other action to reduce, collect
or enforce the Guaranteed Obligations.

Section 1.7            Waivers.  Guarantor agrees to the provisions of the
Loan Documents, and hereby waives notice of (i) any loans or advances made
by Lender to Borrower, (ii) acceptance of this Guaranty, (iii) any
amendment or extension of the Note, the Security Instrument, the Loan Agreement
or of any other Loan Documents, (iv) the execution and delivery by
Borrower and Lender of any other loan or credit agreement or of Borrower’s
execution and delivery of any promissory notes or other documents arising under
the Loan Documents or in connection with the Property, (v) the occurrence
of any breach by Borrower or an Event of Default, (vi) Lender’s transfer
or disposition of the Guaranteed Obligations, or any part thereof,
(vii) sale or foreclosure (or posting or advertising for sale or
foreclosure) of any collateral for the Guaranteed Obligations,
(viii) protest, proof of non-payment or default by Borrower, or
(ix) any other action at any time taken or omitted by Lender, and,
generally, all demands and notices of every kind in connection with this
Guaranty, the Loan Documents, any documents or agreements evidencing, securing
or relating to any of the Guaranteed Obligations and the obligations hereby
guaranteed.

Section 1.8            Payment
of Expenses.  In the event
that Guarantor should breach or fail to timely perform any provisions of this
Guaranty, Guarantor shall, immediately upon demand by Lender, pay Lender all
costs and expenses (including court costs and attorneys’ fees) incurred by
Lender in the enforcement hereof or the preservation of Lender’s rights
hereunder.  The covenant contained in
this Section shall survive the payment and performance of the Guaranteed
Obligations.

Section 1.9            Effect
of Bankruptcy.  In the
event that, pursuant to any insolvency, bankruptcy, reorganization,
receivership or other debtor relief law, or any judgment, order or decision
thereunder, Lender must rescind or restore any payment, or any part thereof,
received by Lender in satisfaction of the Guaranteed Obligations, as set forth
herein, any prior release or discharge from the terms of this Guaranty given to
Guarantor by Lender shall be without effect, and this Guaranty shall remain in
full force and effect. It is the intention of Borrower and Guarantor that
Guarantor’s obligations hereunder shall not be discharged except by Guarantor’s
performance of such obligations and then only to the extent of such
performance.

Section 1.10         Waiver
of Subrogation, Reimbursement and Contribution.  Guarantor hereby unconditionally
and irrevocably waives, releases and abrogates any and all rights it may now or
hereafter have under any agreement, at law or in equity (including, without
limitation, any law subrogating the Guarantor to the rights of Lender), to
assert any claim against or seek contribution, indemnification or any other
form of reimbursement from Borrower or any other party liable for payment of
any or all of the Guaranteed Obligations for any payment made

 

by Guarantor under or in connection with this Guaranty
or otherwise; provided, however, that notwithstanding anything to the contrary
contained herein, Guarantor shall have and be entitled to all (a) all rights of
subrogation otherwise provided by applicable law in respect of any payment it
may make or be obligated to make under this Guaranty and (b) all claims it
would have against Borrower or any other party and to assert and enforce same,
in each case on and after, but at no time prior to, the date which is 91 days
after the date on which all sums owed to Lender under this Guaranty and the
other the Loan Documents have been paid in full.

Section 1.11         Borrower.  The term “Borrower” as
used herein shall include any new or successor corporation, association,
partnership (general or limited), limited liability company, joint venture,
trust or other individual or organization formed as a result of any merger,
reorganization, sale, transfer, devise, gift or bequest of Borrower or any
interest in Borrower.

ARTICLE
II

EVENTS
AND CIRCUMSTANCES NOT REDUCING

OR DISCHARGING GUARANTOR’S OBLIGATIONS

Guarantor hereby consents
and agrees to each of the following, and agrees that Guarantor’s obligations
under this Guaranty shall not be released, diminished, impaired, reduced or
adversely affected by any of the following, and waives any common law,
equitable, statutory or other rights (including without limitation rights to
notice) which Guarantor might otherwise have as a result of or in connection
with any of the following:

Section 2.1            Modifications.  Any renewal, extension, increase, modification,
alteration or rearrangement of all or any part of the Guaranteed Obligations,
the Note, the Security Instrument, the Loan Agreement, the other Loan
Documents, or any other document, instrument, contract or understanding between
Borrower and Lender, or any other parties, pertaining to the Guaranteed
Obligations or any failure of Lender to notify Guarantor of any such action.

Section 2.2            Adjustment.  Any adjustment, indulgence, forbearance or
compromise that might be granted or given by Lender to Borrower or any other
guarantor.

Section 2.3            Condition
of Borrower or Guarantor. 
The insolvency, bankruptcy, arrangement, adjustment, composition,
liquidation, disability, dissolution or lack of power of Borrower, Guarantor or
any other party at any time liable for the payment of all or part of the
Guaranteed Obligations; or any dissolution of Borrower or Guarantor, or any
sale, lease or transfer of any or all of the assets of Borrower or Guarantor,
or any changes in the shareholders, partners or members of Borrower or
Guarantor; or any reorganization of Borrower or Guarantor.

Section 2.4            Invalidity
of Guaranteed Obligations. 
The invalidity, illegality or unenforceability of all or any part of the
Guaranteed Obligations, or any document or agreement executed in connection
with the Guaranteed Obligations, for any reason whatsoever, including without
limitation the fact that (i) the Guaranteed Obligations, or any part
thereof, exceeds the amount permitted by law, (ii) the act of creating the
Guaranteed Obligations or any

 

part thereof is ultra vires, (iii) the officers
or representatives executing the Note, the Security Instrument, the Loan
Agreement or the other Loan Documents or otherwise creating the Guaranteed
Obligations acted in excess of their authority, (iv) the Guaranteed
Obligations violate applicable usury laws, (v) the Borrower has valid
defenses, claims or offsets (whether at law, in equity or by agreement) which
render the Guaranteed Obligations wholly or partially uncollectible from
Borrower, (vi) the creation, performance or repayment of the Guaranteed
Obligations (or the execution, delivery and performance of any document or
instrument representing part of the Guaranteed Obligations or executed in
connection with the Guaranteed Obligations, or given to secure the repayment of
the Guaranteed Obligations) is illegal, uncollectible or unenforceable, or
(vii) the Note, the Security Instrument, the Loan Agreement or any of the
other Loan Documents have been forged or otherwise are irregular or not genuine
or authentic, it being agreed that Guarantor shall remain liable hereon
regardless of whether Borrower or any other person be found not liable on the
Guaranteed Obligations or any part thereof for any reason.

Section 2.5            Release
of Obligors.  Any full or
partial release of the liability of Borrower on the Guaranteed Obligations, or
any part thereof, or of any co-guarantors, or any other Person now or hereafter
liable, whether directly or indirectly, jointly, severally, or jointly and
severally, to pay, perform, guarantee or assure the payment of the Guaranteed
Obligations, or any part thereof, it being recognized, acknowledged and agreed
by Guarantor that Guarantor may be required to pay the Guaranteed Obligations
in full without assistance or support of any other party, and Guarantor has not
been induced to enter into this Guaranty on the basis of a contemplation,
belief, understanding or agreement that other parties will be liable to pay or
perform the Guaranteed Obligations, or that Lender will look to other parties
to pay or perform the Guaranteed Obligations.

Section 2.6            Other
Collateral.  The taking or
accepting of any other security, collateral or guaranty, or other assurance of
payment, for all or any part of the Guaranteed Obligations.

Section 2.7            Release
of Collateral.  Any
release, surrender, exchange, subordination, deterioration, waste, loss or
impairment (including without limitation negligent, willful, unreasonable or
unjustifiable impairment) of any collateral, property or security at any time
existing in connection with, or assuring or securing payment of, all or any
part of the Guaranteed Obligations.

Section 2.8            Care
and Diligence.  The
failure of Lender or any other party to exercise diligence or reasonable care
in the preservation, protection, enforcement, sale or other handling or
treatment of all or any part of any collateral, property or security, including
but not limited to any neglect, delay, omission, failure or refusal of Lender
(i) to take or prosecute any action for the collection of any of the
Guaranteed Obligations or (ii) to foreclose, or initiate any action to
foreclose, or, once commenced, prosecute to completion any action to foreclose
upon any security therefor, or (iii) to take or prosecute any action in
connection with any instrument or agreement evidencing or securing all or any
part of the Guaranteed Obligations.

Section 2.9            Unenforceability.  The fact that any collateral, security,
security interest or lien contemplated or intended to be given, created or
granted as security for the

 

repayment of the Guaranteed Obligations, or any part
thereof, shall not be properly perfected or created, or shall prove to be
unenforceable or subordinate to any other security interest or lien, it being
recognized and agreed by Guarantor that Guarantor is not entering into this
Guaranty in reliance on, or in contemplation of the benefits of, the validity,
enforceability, collectibility or value of any of the collateral for the
Guaranteed Obligations.

Section 2.10         Offset.  The Note, the Loan Agreement, the Guaranteed
Obligations and the liabilities and obligations of the Guarantor to Lender
hereunder shall not be reduced, discharged or released because of or by reason
of any existing or future right of offset, claim or defense of Borrower against
Lender, or any other party, or against payment of the Guaranteed Obligations,
whether such right of offset, claim or defense arises in connection with the
Guaranteed Obligations (or the transactions creating the Guaranteed
Obligations) or otherwise.

Section 2.11         Merger.  The reorganization, merger or consolidation
of Borrower into or with any other Person.

Section 2.12         Preference.  Any payment by Borrower to Lender is held to
constitute a preference under bankruptcy laws, or for any reason Lender is
required to refund such payment or pay such amount to Borrower or someone else.

Section 2.13         Other
Actions Taken or Omitted. 
Any other action taken or omitted to be taken with respect to the Loan
Documents, the Guaranteed Obligations, or the security and collateral therefor,
whether or not such action or omission prejudices Guarantor or increases the
likelihood that Guarantor will be required to pay the Guaranteed Obligations
pursuant to the terms hereof, it is the unambiguous and unequivocal intention
of Guarantor that Guarantor shall be obligated to pay the Guaranteed
Obligations when due, notwithstanding any occurrence, circumstance, event,
action, or omission whatsoever, whether contemplated or uncontemplated, and
whether or not otherwise or particularly described herein, which obligation
shall be deemed satisfied only upon the full and final payment and satisfaction
of the Guaranteed Obligations.

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES

To induce Lender to enter
into the Loan Documents and extend credit to Borrower, Guarantor represents and
warrants to Lender as follows:

Section 3.1            Benefit.  Guarantor is an affiliate of Borrower, is the
owner of a direct or indirect interest in Borrower, and has received, or will
receive, direct or indirect benefit from the making of this Guaranty with
respect to the Guaranteed Obligations.

Section 3.2            Familiarity
and Reliance.  Guarantor
is familiar with, and has independently reviewed books and records regarding,
the financial condition of the Borrower and is familiar with the value of any
and all collateral intended to be created as security for the payment of the
Note or Guaranteed Obligations; however, Guarantor is not relying on such
financial condition or the collateral as an inducement to enter into this
Guaranty.

 

Section 3.3            No
Representation By Lender. 
Neither Lender nor any other party has made any representation, warranty
or statement to Guarantor in order to induce the Guarantor to execute this
Guaranty.

Section 3.4            Guarantor’s
Financial Condition.  As
of the date hereof, and after giving effect to this Guaranty and the contingent
obligation evidenced hereby, Guarantor is, and will be, solvent, and has and
will have assets which, fairly valued, exceed its obligations, liabilities
(including contingent liabilities) and debts, and has and will have property
and assets sufficient to satisfy and repay its obligations and liabilities as
they become due.

Section 3.5            Legality.  The execution, delivery and performance by
Guarantor of this Guaranty and the consummation of the transactions
contemplated hereunder do not, and will not, contravene or conflict with any
law, statute or regulation whatsoever to which Guarantor is subject or
constitute a default (or an event which with notice or lapse of time or both
would constitute a default) under, or result in the breach of, any indenture,
mortgage, deed of trust, charge, lien, or any contract, agreement or other
instrument to which Guarantor is a party or which may be applicable to
Guarantor.  This Guaranty is a legal and
binding obligation of Guarantor and is enforceable in accordance with its
terms, except as limited by bankruptcy, insolvency or other laws of general
application relating to the enforcement of creditors’ rights.

Section 3.6            Litigation.  There are no actions, suits or proceedings at
law or in equity by or before any Governmental Authority or other agency now
pending or threatened against or affecting Guarantor which, if determined
adversely to Guarantor, could have a material adverse effect on its ability to
pay its obligations hereunder.

Section 3.7            Survival.
 All representations and
warranties made by Guarantor herein shall survive the execution hereof.

ARTICLE
IV

SUBORDINATION
OF CERTAIN INDEBTEDNESS

Section 4.1            Subordination
of All Guarantor Claims. 
As used herein, the term “Guarantor Claims”
shall mean all debts and liabilities of Borrower to Guarantor, whether such
debts and liabilities now exist or are hereafter incurred or arise, or whether
the obligations of Borrower thereon be direct, contingent, primary, secondary,
several, joint and several, or otherwise, and irrespective of whether such
debts or liabilities be evidenced by note, contract, open account, or
otherwise, and irrespective of the Person in whose favor such debts or
liabilities may, at their inception, have been, or may hereafter be created, or
the manner in which they have been or may hereafter be acquired by
Guarantor.  The Guarantor Claims shall
include without limitation all rights and claims of Guarantor against Borrower
(arising as a result of subrogation or otherwise) as a result of Guarantor’s
payment of all or a portion of the Guaranteed Obligations.  Upon the occurrence and during the
continuance of an Event of Default, Guarantor shall not receive or collect,
directly or indirectly, from Borrower or any other party any amount upon the
Guarantor Claims.

 

Section 4.2            Claims
in Bankruptcy.  In the
event of receivership, bankruptcy, reorganization, arrangement, debtor’s
relief, or other insolvency proceedings involving Guarantor as debtor, Lender
shall have the right to prove its claim in any such proceeding so as to
establish its rights hereunder and receive directly from the receiver, trustee
or other court custodian dividends and payments which would otherwise be
payable upon Guarantor Claims.  Guarantor
hereby assigns such dividends and payments to Lender.  Should Lender receive, for application
against the Guaranteed Obligations, any such dividend or payment which is
otherwise payable to Guarantor, and which, as between Borrower and Guarantor,
shall constitute a credit against the Guarantor Claims, then upon payment to
Lender in full of the Guaranteed Obligations, Guarantor shall become subrogated
to the rights of Lender to the extent that such payments to Lender on the
Guarantor Claims have contributed toward the liquidation of the Guaranteed
Obligations, and such subrogation shall be with respect to that proportion of
the Guaranteed Obligations which would have been unpaid if Lender had not
received dividends or payments upon the Guarantor Claims.

Section 4.3            Payments
Held in Trust.  In the
event that, notwithstanding anything to the contrary in this Guaranty,
Guarantor should receive any funds, payment, claim or distribution which is
prohibited by this Guaranty, Guarantor agrees to hold in trust for Lender an
amount equal to the amount of all funds, payments, claims or distributions so
received, and Guarantor covenants promptly to pay the same to Lender.

Section 4.4            Liens
Subordinate.  Guarantor
agrees that any liens, security interests, judgment liens, charges or other
encumbrances upon Borrower’s assets securing payment of the Guarantor Claims
shall be and remain inferior and subordinate to any liens, security interests,
judgment liens, charges or other encumbrances upon Borrower’s assets securing
payment of the Guaranteed Obligations, regardless of whether such encumbrances
in favor of Guarantor or Lender presently exist or are hereafter created or
attach.  Without the prior written
consent of Lender, Guarantor shall not (i) exercise or enforce any
creditor’s right it may have against Borrower, or (ii) foreclose,
repossess, sequester or otherwise take steps or institute any action or
proceedings (judicial or otherwise, including without limitation the
commencement of, or joinder in, any liquidation, bankruptcy, rearrangement,
debtor’s relief or insolvency proceeding) to enforce any liens, mortgages,
deeds of trust, security interests, collateral rights, judgments or other
encumbrances on assets of Borrower held by Guarantor.

ARTICLE
V

MISCELLANEOUS

Section 5.1            Waiver.  No failure to exercise, and no delay in
exercising, on the part of Lender, any right hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right.  The rights of Lender hereunder shall be in
addition to all other rights provided by law. 
No modification or waiver of any provision of this Guaranty, nor consent
to departure therefrom, shall be effective unless in writing and no such
consent or waiver shall extend beyond the particular case and purpose
involved.  No notice or demand given in
any case shall constitute a waiver of the right to take other action in the
same, similar or other instances without such notice or demand.

 

Section 5.2            Notices.  All notices, consents, approvals and requests
required or permitted hereunder shall be given in writing and shall be
effective for all purposes if hand delivered or sent by (a) certified or
registered United States mail, postage prepaid, return receipt requested or
(b) expedited prepaid delivery service, either commercial or United States
Postal Service, with proof of attempted delivery, and by telecopier (with
answer back acknowledged), addressed as follows (or at such other address and
Person as shall be designated from time to time by any party hereto, as the
case may be, in a written notice to the other parties hereto in the manner
provided for in this Section):

	
  Guarantor:

  	
  c/o Behringer Harvard Funds

  
	
   

  	
  15601 Dallas
  Parkway, Suite 600

  
	
   

  	
  Addison, Texas
  75001

  
	
   

  	
  Attention:
  Gerald J. Reihsen, III

  
	
   

  	
   

  
	
  with a copy to:

  	
  Luce, Forward, Hamilton & Scripps LLP

  
	
   

  	
  600 West
  Broadway

  
	
   

  	
  Suite 2600

  
	
   

  	
  San Diego, CA
  92101-3391

  
	
   

  	
  Attention: Darryl
  Steinhause, Esq.

  
	
   

  	
   

  
	
  Lender:

  	
  Wachovia Bank, National Association

  
	
   

  	
  Commercial Real
  Estate Services

  
	
   

  	
  8739 Research
  Drive URP 4

  
	
   

  	
  NC 1075

  
	
   

  	
  Charlotte, North
  Carolina  28262

  
	
   

  	
  Loan Number:
  502858632

  
	
   

  	
  Attention:
  Portfolio Management

  
	
   

  	
  Fax No.: (704)
  715-0036

  
	
   

  	
   

  
	
  with a copy to:

  	
  Proskauer Rose LLP

  
	
   

  	
  1585 Broadway

  
	
   

  	
  New York, New
  York 10036

  
	
   

  	
  Attention: David
  J. Weinberger, Esq.

  

 

A notice shall be
deemed to have been given:  in the case
of hand delivery, at the time of delivery; in the case of registered or
certified mail, when delivered or the first attempted delivery on a Business
Day; or in the case of expedited prepaid delivery and telecopy, upon the first
attempted delivery on a Business Day.

Section 5.3            Governing
Law.  This Guaranty shall
be governed by and construed in accordance with the laws of the state in which
the Property is located (without regard to any conflict of laws or principles)
and the applicable laws of the United States of America.

Section 5.4            Invalid
Provisions.  If any
provision of this Guaranty is held to be illegal, invalid, or unenforceable
under present or future laws effective during the term of this Guaranty, such
provision shall be fully severable and this Guaranty shall be construed and

 

enforced as if such illegal, invalid or unenforceable
provision had never comprised a part of this Guaranty, and the remaining
provisions of this Guaranty shall remain in full force and effect and shall not
be affected by the illegal, invalid or unenforceable provision or by its
severance from this Guaranty, unless such continued effectiveness of this
Guaranty, as modified, would be contrary to the basic understandings and
intentions of the parties as expressed herein.

Section 5.5            Amendments.  This Guaranty may be amended only by an
instrument in writing executed by the party or an authorized representative of
the party against whom such amendment is sought to be enforced.

Section 5.6            Parties
Bound; Assignment; Joint and Several.  This Guaranty shall be binding upon and inure
to the benefit of the parties hereto and their respective successors, assigns
and legal representatives; provided, however, that Guarantor may not, without
the prior written consent of Lender, assign any of its rights, powers, duties
or obligations hereunder.  If Guarantor consists
of more than one person or party, the obligations and liabilities of each such
person or party shall be joint and several.

Section 5.7            Headings.  Section headings are for convenience of
reference only and shall in no way affect the interpretation of this Guaranty.

Section 5.8            Recitals.  The recital and introductory paragraphs
hereof are a part hereof, form a basis for this Guaranty and shall be
considered prima facie evidence of the facts and documents referred to therein.

Section 5.9            Counterparts.  To facilitate execution, this Guaranty may be
executed in as many counterparts as may be convenient or required.  It shall not be necessary that the signature
of, or on behalf of, each party, or that the signature of all Persons required
to bind any party, appear on each counterpart. 
All counterparts shall collectively constitute a single instrument.  It shall not be necessary in making proof of
this Guaranty to produce or account for more than a single counterpart
containing the respective signatures of, or on behalf of, each of the parties
hereto. Any signature page to any counterpart may be detached from such
counterpart without impairing the legal effect of the signatures thereon and
thereafter attached to another counterpart identical thereto except having
attached to it additional signature pages.

Section 5.10         Rights
and Remedies.  If
Guarantor becomes liable for any indebtedness owing by Borrower to Lender, by
endorsement or otherwise, other than under this Guaranty, such liability shall
not be in any manner impaired or affected hereby and the rights of Lender
hereunder shall be cumulative of any and all other rights that Lender may ever
have against Guarantor.  The exercise by
Lender of any right or remedy hereunder or under any other instrument, or at
law or in equity, shall not preclude the concurrent or subsequent exercise of
any other right or remedy.

Section 5.11         Other
Defined Terms.  Any
capitalized term utilized herein shall have the meaning as specified in the
Loan Agreement, unless such term is otherwise specifically defined herein.

Section 5.12         Entirety.  THIS GUARANTY EMBODIES THE FINAL, ENTIRE
AGREEMENT OF GUARANTOR AND LENDER WITH RESPECT TO

 

GUARANTOR’S GUARANTY OF THE
GUARANTEED OBLIGATIONS AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS,
REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE
SUBJECT MATTER HEREOF.  THIS GUARANTY IS
INTENDED BY GUARANTOR AND LENDER AS A FINAL AND COMPLETE EXPRESSION OF THE
TERMS OF THE GUARANTY, AND NO COURSE OF DEALING BETWEEN GUARANTOR AND LENDER,
NO COURSE OF PERFORMANCE, NO TRADE PRACTICES, AND NO EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC
EVIDENCE OF ANY NATURE (OTHER THAN AN AMENDMENT EXECUTED IN ACCORDANCE WITH THE
PROVISIONS HEREOF OR A WRITTEN WAIVER EXECUTED BY LENDER) SHALL BE USED TO
CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS GUARANTY
AGREEMENT.  THERE ARE NO ORAL AGREEMENTS
BETWEEN GUARANTOR AND LENDER.

Section 5.13         Waiver
of Right To Trial By Jury.  GUARANTOR
HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY
JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH
RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS GUARANTY, THE NOTE, THE
LOAN AGREEMENT, THE SECURITY INSTRUMENT, OR THE OTHER LOAN DOCUMENTS, OR ANY
CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH.  THIS WAIVER OF RIGHT TO TRIAL BY JURY IS
GIVEN KNOWINGLY AND VOLUNTARILY BY GUARANTOR, AND IS INTENDED TO ENCOMPASS
INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY
JURY WOULD OTHERWISE ACCRUE.  LENDER IS
HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS
CONCLUSIVE EVIDENCE OF THIS WAIVER BY GUARANTOR.

Section 5.14         Cooperation.  Guarantor acknowledges that Lender and its
successors and assigns may (i) sell this Guaranty, the Note and other Loan
Documents to one or more investors as a whole loan, (ii) participate the
Loan secured by this Guaranty to one or more investors, (iii) deposit this
Guaranty, the Note and other Loan Documents with a trust, which trust may sell
certificates to investors evidencing an ownership interest in the trust assets,
or (iv) otherwise sell the Loan or interest therein to investors (the
transactions referred to in clauses (i) through (iv) are hereinafter each
referred to as “Secondary Market Transaction”).  Guarantor shall cooperate with Lender in
effecting any such Secondary Market Transaction and shall cooperate to
implement all customary and reasonable requirements imposed by any Rating
Agency or potential investor involved in any Secondary Market Transaction.  Guarantor shall provide such information and
documents relating to Guarantor as Lender may reasonably request in connection
with such Secondary Market Transaction. 
In addition, Guarantor shall make available to Lender all information
concerning its business and operations that Lender may reasonably request.  Lender shall be permitted to share all such
information with the investment banking firms (or other potential investors),
Rating Agencies, accounting firms, law firms and other third-party advisory
firms involved with the Loan and the Loan Documents or the applicable Secondary
Market Transaction.  It is understood
that the information provided by

 

Guarantor to Lender may ultimately be incorporated
into the offering documents for the Secondary Market Transaction and thus
various investors may also see some or all of the information.  Lender and all of the aforesaid third-party
advisors and professional firms shall be entitled to rely on the information
supplied by, or on behalf of, Guarantor in the form as provided by
Guarantor.  Lender may publicize the
existence of the Loan in connection with its marketing for a Secondary Market
Transaction or otherwise as part of its business development.  All reasonable third party costs and expenses
incurred by Guarantor in connection with Guarantor’s complying with requests
made under this Section 5.14 shall be paid by Lender.

 

[NO
FURTHER TEXT ON THIS PAGE]

 

EXECUTED as of the day
and year first above written.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  GUARANTOR:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  BEHRINGER
  HARVARD REIT I, INC., a

  Maryland corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Gerald J. Reihsen, III

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President –

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Corporate Development & Legal and

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]