Document:

Exhibit 10.7

 

SENIOR MEZZANINE COMPLETION GUARANTY

This Senior Mezzanine Completion Guaranty (“Guaranty”) is entered into as of September 22, 2006, jointly
and severally by CFP Residential L.P., a Texas limited partnership, Kenneth
Valach, an individual, J. Ronald Terwilliger, an individual and Brian Austin,
an individual (collectively, the “Guarantor”) for
the benefit of Behringer Harvard Alexan Voss, LLC, a Delaware limited liability
company, and/or any subsequent holder of the Note (the “Lender”).

RECITALS

A.            GC
128 Voss SM LLC, a Delaware limited liability company (the “Borrower”) has requested that Lender make a loan to Borrower
in the amount of Six Million Eight Hundred Fifty Thousand Dollars ($6,850,000)
(the “Loan”). 
The Loan will be evidenced by the Senior Mezzanine Promissory Note from
Borrower to Lender dated as of the date of this Guaranty (the “Note”).  The Note will
be secured by the Senior Mezzanine Pledge and Security Agreement dated the same
date as the Note made by Borrower in favor of Lender (the “Security
Instrument”).

B.            The
Loan is being made to finance the purchase by GC 127 Voss Holdings LLC, a
Delaware limited liability company (“Property Owner”),
which is a wholly-owned subsidiary of Borrower, of certain real property (the “Property”), as more particularly described in the Loan
Agreement dated as of the date of this Guaranty between Borrower and Lender
(the “Loan Agreement”) and to facilitate the
construction of a 376 unit apartment project on the Property to be known as the
Alexan Voss  (the “Project).

C.            The
Project is to be constructed in accordance with, and pursuant to the terms and
conditions and requirements of, the Loan Agreement and other Loan Documents.

D.            As
a condition to making the Loan to Borrower, Lender requires that the Guarantor
execute this Guaranty.  Guarantor has an
economic interest in Borrower or will otherwise obtain a material financial
benefit from the Loan.

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

1.             Defined Terms. 
“Indebtedness” and other capitalized
terms used but not defined in this Guaranty shall have the meanings assigned to
them in the Loan Agreement.

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2.             Guaranty.

a)             Guarantor hereby guarantees to
Lender, upon written demand by Lender, at Lender’s option and in its sole
discretion, that Guarantor will (i) complete the Project substantially in
accordance with the plans and specifications for the Project, as modified from
time to time as allowed by the Loan Agreement (the “Plans and
Specifications”) and in accordance with the terms and conditions of
the Loan Agreement and other Loan Documents if, for any reason, or under any
contingency, Property Owner shall abandon construction of the Project or shall
fail to complete the Project within the construction time set forth in the Loan
Agreement and Loan Documents and (ii) pay all cost overruns for construction of
the Project to the extent Borrower or Property Owner fails to do so; provided
that Lender shall reimburse Guarantor for all costs incurred by Guarantor in completing
the Project (provided that such completion costs are included in the Project
Budget (as defined below) to the extent such costs do not constitute cost
overruns.  In the preceding sentence, “cost
overruns” means costs of constructing the Project that, in the aggregate,
exceed the amount provided in the budget attached hereto as Exhibit “A” (the “Project Budget”).  All
amounts reimbursed to Guarantor by Lender in accordance with this Section 2(a)
shall correspondingly increase the amount of Loan to Borrower and shall be
payable by Borrower to Lender in accordance with the terms of the Loan
Agreement.  The Project will be deemed
substantially completed in accordance with the Plans and Specifications upon
the issuance of the final certificate of occupancy, the issuance of a
certificate of substantial completion from the Property Owner’s architect,
receipt of a contractor’s release and the receipt of lien waivers or similar
evidence of payment from the general contractor and all major subcontractors (i.e., subcontractors whose contract amount exceeds $100,000)
to Lender’s reasonable satisfaction, provided, however, that if Senior Lender
shall deem the Project substantially complete then Lender shall deem the
Project substantially complete (“Completion”).

b)            Without limiting the rights and
remedies of Lender, if after the occurrence of an Event of Default and after
Lender has so requested, Guarantor does not proceed with and diligently
prosecute Completion of the Project in accordance with the Loan Agreement, then
Lender may, at its option, without notice to Guarantor or anyone else, complete
the Project either before or after commencement of foreclosure proceedings, and
either on or before the exercise of any other right or remedy of Lender against
Borrower or Guarantor, with such changes to the Plans and Specifications that
Lender deems necessary or advisable to complete the Project and Guarantor
waives any right to contest such necessary expenditures.  The amount of any and all expenditures made
by Lender for the foregoing purposes, to the extent they exceed the unexpended
portion of the Project Budget shall bear interest from the date made until
repaid to Lender, at a rate per annum equal to the interest rate provided for
in the Note and, together with such interest, shall be due and payable by
Guarantor to Lender upon demand.  Lender
does not have and shall never have any obligation to complete the Project or
take such action.

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c)             In addition to the foregoing, and
notwithstanding anything to the contrary set forth herein or in any of the Loan
Documents, Guarantor hereby further guarantees to Lender the full and prompt
payment of all principal, interest and other amounts due and owing by Borrower
under the Note, the Security Instrument and any other Loan Document from and
after the filing of a voluntary bankruptcy or insolvency proceeding of Property
Owner, or Borrower prior to Completion.

3.             Survival. 
The obligations of Guarantor under this Guaranty shall survive any
foreclosure proceeding, any foreclosure sale, any delivery of any deed in lieu
of foreclosure, and any release of record of the Security Instrument.

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

5.             Present, Unconditional and Irrevocable Guaranty;
Waivers.  The obligations of Guarantor
under this Guaranty shall be performed without demand by Lender, other than as
provided herein and shall be present, unconditional, absolute and irrevocable
irrespective of the genuineness, validity, regularity or enforceability of the
Note, the Security Instrument, or any other Loan Document, and without regard
to any other circumstance which might otherwise constitute a legal or equitable
discharge of a surety or a guarantor.  The
parties intend that Guarantor shall not be considered a “debtor” as defined in Tex.
Bus.  &  Com.  Code   Ann.,  Section 9.105, as amended
(and any successor statute thereto). 
This Guaranty shall be effective as a waiver of, and Guarantor expressly
waives, any and all rights to which Guarantor may otherwise have been entitled
under any suretyship laws in effect from time to time, including (without
limitation) any rights pursuant to Rule 31 of the Texas Rules of Civil
Procedure, Section 17.001 of the Texas Civil Practice and Remedies Code,
and Chapter 34 of the Texas Business and Commerce Code.  Without limiting the generality of the
foregoing, Guarantor hereby waives, to the fullest extent permitted by law,
diligence in collecting the Indebtedness, presentment, demand for payment,
protest, all notices with respect to the Note and this Guaranty which may be required
by statute, rule of law or otherwise to preserve Lender’s rights against Guarantor
under this Guaranty, including notice of acceptance, notice of any amendment of
the Loan Documents, notice of the occurrence of any default or Event of
Default, notice of intent to accelerate, notice of acceleration, notice of
dishonor, notice of foreclosure, notice of protest, and notice of the incurring
by Borrower of any obligation or indebtedness. 
Guarantor also waives, to the fullest extent permitted by law, all rights
to require Lender to (a) proceed against Borrower or any other guarantor of
Borrower’s payment or performance with respect to the Indebtedness (an “Other Guarantor”), (b) if Borrower or any Other Guarantor is
a partnership, proceed against any general partner of Borrower or the Other
Guarantor, (c) proceed against or exhaust any collateral held by Lender to
secure the repayment of the Indebtedness, or (d) pursue any other remedy it may
now or hereafter have against Borrower, or, if Borrower is a partnership, any
general partner of Borrower.

6.             Modification of Loan Documents.  At any time or from time to time and any
number of times, without notice to Guarantor and without affecting the
liability of Guarantor, (a)

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the time for payment of the principal of or interest
on the Indebtedness may be extended or the Indebtedness may be renewed in whole
or in part; (b) the time for Borrower’s performance of or compliance with any
covenant or agreement contained in the Note, the Loan Agreement, the Security
Instrument or any other Loan Document, whether presently existing or
hereinafter entered into, may be extended or such performance or compliance may
be waived; (c) the maturity of the Indebtedness may be accelerated as provided
in the Note, the Security Instrument, or any other Loan Document; (d) the Note,
the Loan Agreement, the Security Instrument, or any other Loan Document may be
modified or amended by Lender and Borrower in any respect, including an
increase in the principal amount; and (e) any security for the Indebtedness may
be modified, exchanged, surrendered or otherwise dealt with or additional
security may be pledged or mortgaged for the Indebtedness.

7.             Joint and Several Guaranty.  If more than one person executes this
Guaranty, the obligations of those persons under this Guaranty shall be joint
and several.  Lender, in its discretion,
may (a) bring suit against Guarantor, or any one or more of the Persons
constituting Guarantor, and any Other Guarantor, jointly and severally, or
against any one or more of them; (b) compromise or settle with any one or more
of the Persons constituting Guarantor, or any Other Guarantor, for such
consideration as Lender may deem proper; (c) release one or more of the Persons
constituting Guarantor, or any Other Guarantor, from liability; and (d)
otherwise deal with Guarantor and any Other Guarantor, or any one or more of
them, in any manner, and no such action shall impair the rights of Lender to
collect from Guarantor any amount guaranteed by Guarantor under this Guaranty.  Nothing contained in this paragraph shall in
any way affect or impair the rights or obligations of Guarantor with respect to
any Other Guarantor.

8.             Subordination. 
Any indebtedness of Borrower held by Guarantor now or in the future  (including but not limited to (i) all debts
and liabilities of Borrower to Guarantor whether the obligations of Borrower
are direct, contingent, primary, secondary, joint and several or otherwise,
whether the obligations are evidenced by note, contract, open account or otherwise
and irrespective of the creation of such debts or liabilities or manner
acquired by Guarantor, (ii) any dividends and payments pursuant to debtor
relief or insolvency proceedings referred to below and (iii) all liens,
security interests, judgment liens, charges or other encumbrances on Borrower’s
assets securing payment thereof) is and shall be subordinated to the
Indebtedness, and upon the occurrence of an Event of Default, but without
reducing or affecting in any manner the liability of Guarantor under the other
provisions of this Guaranty, except to the extent that such amounts are
actually applied toward Borrower’s obligations under the Loan Documents,  Guarantor shall not receive, or collect,
directly or indirectly any amount in connection with the foregoing.  If any amount is received by Guarantor on such
indebtedness of Borrower held by Guarantor at the time an Event of Default
exists, it shall be received by Guarantor in trust, as trustee for Lender, and
Guarantor agrees to pay such amounts promptly to Lender.  In the event of receivership, bankruptcy, reorganization, arrangement
or other debtor relief or insolvency proceedings involving Borrower as debtor,
Lender shall have the right to prove its claims in any such proceeding so as to
establish its rights hereunder and shall have the right to receive directly
from the receiver, trustee or other custodian (whether or not an Event of
Default shall have occurred or be continuing under any of the Loan Documents),
dividends and payments that are payable upon any obligation of Borrower to
Guarantor now existing or hereafter arising, and to

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have all benefits of any
security therefor, until the Indebtedness has been fully and finally paid and
performed.  Guarantor hereby
acknowledges and agrees that the foregoing provisions shall be operative
without the necessity of execution of any further documents.  Notwithstanding the foregoing, upon the
request of Lender, Guarantor hereby agrees to execute of a subordination
agreement, in form and content reasonably acceptable to Lender, evidencing the
provisions of this Section 8.

9.             Waiver of Subrogation Rights.  Any right or claim for subrogation or
reimbursement against Borrower by reason of any payment by Guarantor under this
Guaranty, is subordinated to the Indebtedness on the terms provided in Section
8 above, whether such right or claim arises at law or in equity or under any
contract or statute.

10.           No Discharge of Guarantor.  If any payment by Borrower is held to
constitute a preference under any applicable bankruptcy, insolvency, or similar
laws, or if for any other reason Lender is required to refund any sums to
Borrower, such refund shall not constitute a release of any liability of Guarantor
under this Guaranty.

11.           Financial Statements.  Guarantor agrees that, until Completion,
Guarantor will provide to Lender no later than December 31 of each year a
Collateral Value Statement for each of the Persons constituting Guarantor dated
as of the preceding June 30, in each case accompanied by a certificate executed
by the Person to whom such Collateral Value Statement relates certifying that,
to the knowledge of such Person, the Collateral Value Statement fairly presents
the collateral value of the assets shown in such Collateral Value Statement
determined on the same basis as described in the notes to the Collateral Value
Statements, dated as of June 30, 2005, provided for each Guarantor.

12.           Representation and Warranty.  Guarantor represents and warrants to Lender,
jointly and severally, that (i) CFP Residential, L.P. has the limited
partnership power and authority to enter into this Guaranty, to incur the
obligations provided for herein, and to execute and deliver the same to Lender,
(ii) when executed and delivered, this Guaranty will constitute a valid and legally
binding obligation of each Guarantor, enforceable against such Guarantor in
accordance with its terms (subject to bankruptcy, insolvency, reorganization and
similar laws and to general principles of equity) and (iii) each Guarantor will
directly or indirectly benefit from the Loan.

13.           Counterparts.  This Guaranty may be executed in one or more
counterparts, each of which shall be deemed an original, and all of which, when
taken together, shall constitute one and the same instrument.  The persons comprising Guarantor may execute
different counterparts of this Guaranty.

14.           Notices.  Any notice, election, communication, request,
approval or other document or demand required or permitted under this Guaranty
shall be in writing.  Each notice,
election, communication, request, approval or other document or demand shall be
addressed to the intended recipient, in the case of Lender, at its address set
forth below or, in the case of a Guarantor, at its address set forth on the
signature page of this Guaranty.  Each
notice, election,

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communication, request, approval or other document or
demand shall be deemed given on the earliest to occur of (1) the date when the
notice is received by the addressee; (2) the first 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.  As used in this Section 21, the term “Business
Day” means any day other than a Saturday, a Sunday or any other legal holiday.  Any party
to this Agreement may change the address to which notices intended for it are
to be directed by means of notice given to the other party in accordance with
this Section 14.

15.           Assignment by Lender.  Lender may assign its rights under this
Guaranty in whole or in part and, upon any such assignment, all the terms and
provisions of this Guaranty shall inure to the benefit of such assignee to the
extent so assigned. The terms used to designate any of the parties herein shall
be deemed to include the estate, legal representatives, successors and assigns
of such party.

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

17.           Governing Law.  This Guaranty 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.

18.           SUBMISSION TO
JURISDICTION/SERVICE OF PROCESS. 
GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE PERSONAL JURISDICTION OF THE
STATE COURTS OF THE STATE OF TEXAS LOCATED IN DALLAS COUNTY, TEXAS FOR THE
PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF OR BASED UPON
THIS GUARANTY, THE SUBJECT MATTER HEREOF, OR THE LOAN. GUARANTOR TO THE EXTENT
PERMITTED BY APPLICABLE LAW (A) HEREBY WAIVES, AND AGREES 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 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 GUARANTY, THE SUBJECT MATTER
HEREOF, OR THE LOAN (AS APPLICABLE) MAY NOT BE

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ENFORCED IN OR BY SUCH COURT AND (B) HEREBY WAIVES
THE RIGHT TO REMOVE ANY SUCH ACTION, SUIT OR PROCEEDING INSTITUTED BY LENDER IN
STATE COURT TO FEDERAL COURT, OR TO REMAND AN ACTION INSTITUTED IN FEDERAL
COURT TO STATE COURT (UNLESS THE FEDERAL COURT HAS NO SUBJECT MATTER
JURISDICTION).  EACH GUARANTOR HEREBY
CONSENTS TO SERVICE OF PROCESS BY MAIL AT THE ADDRESS TO WHICH NOTICES ARE TO
BE GIVEN TO IT PURSUANT HERETO, BUT SERVICE WILL BE EFFECTIVE ONLY UPON
DELIVERY.  GUARANTOR AGREES THAT ITS
SUBMISSION TO JURISDICTION AND CONSENT TO SERVICE OF PROCESS BY MAIL IS MADE
FOR THE EXPRESS BENEFIT OF LENDER AND ITS ASSIGNS.  FINAL JUDGMENT AGAINST GUARANTOR 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 GUARANTOR THEREIN DESCRIBED, OR (Y)
IN ANY OTHER MANNER PROVIDED BY OR PURSUANT TO THE LAWS OF SUCH OTHER
JURISDICTION, PROVIDED, HOWEVER, THAT LENDER MAY AT ITS OPTION
BRING SUIT, OR INSTITUTE OTHER JUDICIAL PROCEEDINGS, AGAINST GUARANTOR OR ANY
OF ITS 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.

19.           WAIVER WITH RESPECT TO DAMAGES.  GUARANTOR ACKNOWLEDGES THAT LENDER DOES NOT
HAVE ANY FIDUCIARY RELATIONSHIP WITH, OR FIDUCIARY DUTY TO, GUARANTOR ARISING
OUT OF OR IN CONNECTION WITH THIS GUARANTY OR ANY OTHER LOAN DOCUMENT AND THE
RELATIONSHIP BETWEEN LENDER AND GUARANTOR, IN CONNECTION HEREWITH AND THEREWITH
IS SOLELY THAT OF GUARANTOR OF A DEBTOR AND CREDITOR.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, GUARANTOR
AND LENDER EACH SHALL NOT ASSERT, AND GUARANTOR AND LENDER EACH HEREBY WAIVES,
ANY CLAIMS AGAINST THE OTHER, 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 GUARANTY,
ANY OTHER LOAN DOCUMENT, ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY OR
THEREBY, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

20.           Change of Address.  Guarantor (or each Guarantor, if more than
one) agrees to notify Lender (in the manner for giving notices provided in
Section 14 above) of any change in Guarantor’s address within a reasonable time
after such change of address occurs.

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21.           Liability.  

(a)           Notwithstanding anything in this
Guaranty to the contrary, Lender shall look for satisfaction of the obligations
of a Guarantor under this Guaranty only to the following real and personal
property of such Guarantor (the “Available Assets”):

(1)           the legal and beneficial interests of
such Guarantor in any entity that is, at the time of enforcement of this
Guaranty, (i) engaged in the business of holding, constructing, developing or
providing property management or overhead services for real estate designed for
residential use in the United States and (ii) affiliated in any way with
Trammell Crow Residential Company, or any subsidiary thereof or any successor
or assign of all or substantially all of the assets thereof; and

(2)           any receivables due the Guarantors
from any entity described in the foregoing item (1).

Except for the Available Assets, Lender shall not look
to a Guarantor’s tangible or intangible real and personal property (including
cash, cash equivalents, securities, partnership interests, receivable or
similar intangible personal property) for satisfaction of any Guarantor’s
obligations under this Guaranty.  Subject
to Section 21(b), Lender may not look to the tangible or intangible proceeds of
any assets of a Guarantor, including proceeds of the Available Assets, except
as specifically provided in paragraph (2) above.

(b)           Notwithstanding
the limitations in Section 21(a), Lender may look to proceeds of Available
Assets realized by a Guarantor (i) after the Aggregate Collateral Value, as
reported in the annual Collateral Value Statements prepared for the Guarantors,
is less than $80,000,000 or (ii) as a result of a transaction that causes the
Aggregate Collateral Value to be less than $80,000,000  As used in this paragraph, the term “Aggregate
Collateral Value” means the aggregate value of the Available Assets as
calculated on the basis provided in the notes to the Collateral Value
Statements of the Guarantors dated as of June 30, 2005.  However, notwithstanding this Section 21(b),
in no event will Lender be entitled to satisfy any obligation of a Guarantor
from any of the following assets (collectively, “Excluded Assets”): (i) the
personal residences of the Guarantor, (ii) the Guarantor’s nonbusiness real
estate, including rural, vacation and resort property, up to $1,000,000 in
value, (iii) the Guarantor’s personal automobiles and other tangible personal
property, including household goods, clothing, silverware, gems, jewelry and
works of art, not to exceed $1,500,000 in values, (iv) the interests listed in
Section 21(c) and (v) proceeds of Excluded Assets.

(c)           In
no case may Lender look to any of the following owned by a Guarantor (even if
it otherwise would be available under the terms of this Section 21) or any
proceeds thereof: stock in AvalonBay Communities, Inc., units in Avalon
DownREIT V, L.P., stock in Gables Residential Trust, units in Gables Realty
Limited Partnership, units in Equity Residential Properties Trust, units in ERP
Operating Limited Partnership, stock in BRE Properties, Inc, units in BRE
Property Investors, LLC, units in AMLI Residential Property Trust, units in
AMLI Residential Properties, L.P., units in Merry Land DownREIT I, L.P.,
ownership in J. Ronald

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Terwilliger Grantor Trust, stock in JRT Holdings, Inc.
and ownership in Terwilliger Partners, LLLP and interests in TCR Affordable
Housing Limited Partnership

(d)           The
term “residential” as used in this Section 21 means single family and multi
family dwellings, residential land/lot developments, and senior living
communities.

(e)           If
the collective aggregate value of the Available Assets of the Guarantor, as
reported in the Collateral Value Statement delivered under Section 11 falls to
less than $80,000,000 and if the Guarantor, Property Owner and/or Borrower fail
to correct such deficiency within 30 days following delivery of a deficiency
notice from Lender, then such failure shall, at the option of Lender,
constitute an Event of Default on the part of Borrower under the Loan
Documents.  Guarantor, Property Owner
and/or the Borrower shall have the right to correct any deficiency in Available
Assets by (i) obtaining and delivering to Lender one or more new guaranties,
each of which shall be in the form and content substantially the same as this
Guaranty from one or more persons whose Available Assets  are sufficient to correct the deficiency,
(ii) delivering to Lender and thereafter maintaining in full force and effect
(for so long as the deficiency exists) an unconditional and irrevocable letter
of credit, in a face amount sufficient to correct the deficiency, naming Lender
as beneficiary, and otherwise in form and content and issued by an institution
acceptable to Lender in the exercise of good faith business judgment, or (iii)
the amendment of this Guaranty (in form and substance acceptable to Lender in
the exercise of its good faith business judgment) in such a manner such that
the definition of Available Assets is expanded to include  additional assets that are not then included
in the definition of Available Assets, sufficient to correct the deficiency and
otherwise acceptable to Lender in its good faith business judgment.

22.           Successors and Assigns.  This Guaranty shall be binding upon Guarantor
and Guarantor’s executors, personal representatives, successors and assigns and
shall inure to the benefit of Lender and its successors and assigns.

23.           Attorney’s Fees.  If it becomes necessary for Lender to employ
counsel to enforce the obligations of Guarantor hereunder, Guarantor agrees to
pay the reasonable attorneys’ fees and expenses incurred by Lender in
connection therewith.

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

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

	
  

  	
   

  	
  GUARANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CFP Residential
  LP, a Texas limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: Crow Family,
  Inc., a Texas corporation, its general

  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Harlan R. Crow,
  Chief Executive Officer 

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address: 2001 McKinney Ave., Suite 700, Dallas,
  Texas

  75201

  
	
   

  	
   

  	
  Social
  Security/Employer ID No.:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Kenneth Valach,
  an individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address: 10333 Richmond Ave., Suite 400, Houston,
  Texas

  77042

  
	
   

  	
   

  	
  Social
  Security/Employer ID No.:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  J. Ronald
  Terwilliger, an individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address: Two Buckhead Plaza, 3050 Peachtree Road,
  N.W.,

  Suite 500, Atlanta, Georgia 30305

  
	
   

  	
   

  	
  Social
  Security/Employer ID No.:

  

 

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  Brian Austin, an
  individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address: 10333 Richmond Ave., Suite 400, Houston,
  Texas

  77042

  
	
   

  	
   

  	
  Social
  Security/Employer ID

  

 

 11Exhibit 10.8

 

JUNIOR MEZZANINE COMPLETION GUARANTY

This Junior Mezzanine Completion Guaranty (“Guaranty”) is entered into as of September 22, 2006, jointly
and severally by CFP Residential L.P., a Texas limited partnership, Kenneth
Valach, an individual, J. Ronald Terwilliger, an individual and Brian Austin,
an individual (collectively, the “Guarantor”) for
the benefit of Behringer Harvard Alexan Voss, LLC, a Delaware limited liability
company, and/or any subsequent holder of the Note (the “Lender”).

RECITALS

A.            GC
129 Voss JM LLC, a Delaware limited liability company (the “Borrower”) has requested that Lender make a loan to Borrower
in the amount of Six Million One Hundred Fifty Three Thousand Six Hundred Eighty
Nine Dollars ($6,153,689) (the “Loan”).  The Loan will be evidenced by the Junior
Mezzanine Promissory Note from Borrower to Lender dated as of the date of this
Guaranty (the “Note”).  The Note will be secured by the Junior
Mezzanine Pledge and Security Agreement dated the same date as the Note made by
Borrower in favor of Lender (the “Security Instrument”).

B.            The Loan is being made to finance
the purchase by GC 127 Voss Holdings LLC, a Delaware limited liability company
(“Property Owner”), which is a
wholly-owned subsidiary of GC 128 Voss SM LLC, which is a wholly-owned
subsidiary of Borrower, of certain real property (the “Property”),
as more particularly described in the Loan Agreement dated as of the date of
this Guaranty between Borrower and Lender (the “Loan
Agreement”) and to facilitate the construction of a 376 unit
apartment project on the Property to be known as the Alexan Voss  (the “Project).

C.            The
Project is to be constructed in accordance with, and pursuant to the terms and
conditions and requirements of, the Loan Agreement and other Loan Documents.

D.            As
a condition to making the Loan to Borrower, Lender requires that the Guarantor
execute this Guaranty.  Guarantor has an
economic interest in Borrower or will otherwise obtain a material financial
benefit from the Loan.

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

1.             Defined Terms. 
“Indebtedness” and other capitalized
terms used but not defined in this Guaranty shall have the meanings assigned to
them in the Loan Agreement.

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2.             Guaranty.

a)             Guarantor hereby guarantees to
Lender, upon written demand by Lender, at Lender’s option and in its sole
discretion, that Guarantor will (i) complete the Project substantially in
accordance with the plans and specifications for the Project, as modified from
time to time as allowed by the Loan Agreement (the “Plans and
Specifications”) and in accordance with the terms and conditions of
the Loan Agreement and other Loan Documents if, for any reason, or under any
contingency, Property Owner shall abandon construction of the Project or shall
fail to complete the Project within the construction time set forth in the Loan
Agreement and Loan Documents and (ii) pay all cost overruns for construction of
the Project to the extent Borrower or Property Owner fails to do so; provided
that Lender shall reimburse Guarantor for all costs incurred by Guarantor in completing
the Project (provided that such completion costs are included in the Project
Budget (as defined below) to the extent such costs do not constitute cost
overruns.  In the preceding sentence, “cost
overruns” means costs of constructing the Project that, in the aggregate,
exceed the amount provided in the budget attached hereto as Exhibit “A” (the “Project Budget”).  All
amounts reimbursed to Guarantor by Lender in accordance with this Section 2(a)
shall correspondingly increase the amount of Loan to Borrower and shall be
payable by Borrower to Lender in accordance with the terms of the Loan
Agreement.  The Project will be deemed
substantially completed in accordance with the Plans and Specifications upon
the issuance of the final certificate of occupancy, the issuance of a
certificate of substantial completion from the Property Owner’s architect,
receipt of a contractor’s release and the receipt of lien waivers or similar
evidence of payment from the general contractor and all major subcontractors (i.e., subcontractors whose contract amount exceeds $100,000)
to Lender’s reasonable satisfaction, provided, however, that if Senior Lender
shall deem the Project substantially complete then Lender shall deem the
Project substantially complete (“Completion”).

b)            Without limiting the rights and
remedies of Lender, if after the occurrence of an Event of Default and after
Lender has so requested, Guarantor does not proceed with and diligently
prosecute Completion of the Project in accordance with the Loan Agreement, then
Lender may, at its option, without notice to Guarantor or anyone else, complete
the Project either before or after commencement of foreclosure proceedings, and
either on or before the exercise of any other right or remedy of Lender against
Borrower or Guarantor, with such changes to the Plans and Specifications that
Lender deems necessary or advisable to complete the Project and Guarantor
waives any right to contest such necessary expenditures.  The amount of any and all expenditures made
by Lender for the foregoing purposes, to the extent they exceed the unexpended
portion of the Project Budget shall bear interest from the date made until
repaid to Lender, at a rate per annum equal to the interest rate provided for
in the Note and, together with such interest, shall be due and payable by
Guarantor to Lender upon demand.  Lender
does not have and shall never have any obligation to complete the Project or
take such action.

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c)             In addition to the foregoing, and
notwithstanding anything to the contrary set forth herein or in any of the Loan
Documents, Guarantor hereby further guarantees to Lender the full and prompt
payment of all principal, interest and other amounts due and owing by Borrower
under the Note, the Security Instrument and any other Loan Document from and
after the filing of a voluntary bankruptcy or insolvency proceeding of Property
Owner, or Borrower prior to Completion.

3.             Survival. 
The obligations of Guarantor under this Guaranty shall survive any
foreclosure proceeding, any foreclosure sale, any delivery of any deed in lieu
of foreclosure, and any release of record of the Security Instrument.

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

5.             Present, Unconditional and Irrevocable Guaranty;
Waivers.  The obligations of Guarantor
under this Guaranty shall be performed without demand by Lender, other than as
provided herein and shall be present, unconditional, absolute and irrevocable
irrespective of the genuineness, validity, regularity or enforceability of the
Note, the Security Instrument, or any other Loan Document, and without regard
to any other circumstance which might otherwise constitute a legal or equitable
discharge of a surety or a guarantor.  The
parties intend that Guarantor shall not be considered a “debtor” as defined in Tex.
Bus.  &  Com.  Code   Ann.,  Section 9.105, as amended
(and any successor statute thereto). 
This Guaranty shall be effective as a waiver of, and Guarantor expressly
waives, any and all rights to which Guarantor may otherwise have been entitled
under any suretyship laws in effect from time to time, including (without
limitation) any rights pursuant to Rule 31 of the Texas Rules of Civil
Procedure, Section 17.001 of the Texas Civil Practice and Remedies Code,
and Chapter 34 of the Texas Business and Commerce Code.  Without limiting the generality of the
foregoing, Guarantor hereby waives, to the fullest extent permitted by law,
diligence in collecting the Indebtedness, presentment, demand for payment,
protest, all notices with respect to the Note and this Guaranty which may be
required by statute, rule of law or otherwise to preserve Lender’s rights
against Guarantor under this Guaranty, including notice of acceptance, notice
of any amendment of the Loan Documents, notice of the occurrence of any default
or Event of Default, notice of intent to accelerate, notice of acceleration,
notice of dishonor, notice of foreclosure, notice of protest, and notice of the
incurring by Borrower of any obligation or indebtedness.  Guarantor also waives, to the fullest extent
permitted by law, all rights to require Lender to (a) proceed against Borrower
or any other guarantor of Borrower’s payment or performance with respect to the
Indebtedness (an “Other Guarantor”),
(b) if Borrower or any Other Guarantor is a partnership, proceed against any
general partner of Borrower or the Other Guarantor, (c) proceed against or
exhaust any collateral held by Lender to secure the repayment of the
Indebtedness, or (d) pursue any other remedy it may now or hereafter have
against Borrower, or, if Borrower is a partnership, any general partner of
Borrower.

6.             Modification of Loan Documents.  At any time or from time to time and any
number of times, without notice to Guarantor and without affecting the
liability of Guarantor, (a)

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the time for payment of the principal of or interest
on the Indebtedness may be extended or the Indebtedness may be renewed in whole
or in part; (b) the time for Borrower’s performance of or compliance with any
covenant or agreement contained in the Note, the Loan Agreement, the Security
Instrument or any other Loan Document, whether presently existing or
hereinafter entered into, may be extended or such performance or compliance may
be waived; (c) the maturity of the Indebtedness may be accelerated as provided
in the Note, the Security Instrument, or any other Loan Document; (d) the Note,
the Loan Agreement, the Security Instrument, or any other Loan Document may be
modified or amended by Lender and Borrower in any respect, including an
increase in the principal amount; and (e) any security for the Indebtedness may
be modified, exchanged, surrendered or otherwise dealt with or additional
security may be pledged or mortgaged for the Indebtedness.

7.             Joint and Several Guaranty.  If more than one person executes this
Guaranty, the obligations of those persons under this Guaranty shall be joint
and several.  Lender, in its discretion,
may (a) bring suit against Guarantor, or any one or more of the Persons
constituting Guarantor, and any Other Guarantor, jointly and severally, or
against any one or more of them; (b) compromise or settle with any one or more
of the Persons constituting Guarantor, or any Other Guarantor, for such
consideration as Lender may deem proper; (c) release one or more of the Persons
constituting Guarantor, or any Other Guarantor, from liability; and (d)
otherwise deal with Guarantor and any Other Guarantor, or any one or more of
them, in any manner, and no such action shall impair the rights of Lender to
collect from Guarantor any amount guaranteed by Guarantor under this
Guaranty.  Nothing contained in this
paragraph shall in any way affect or impair the rights or obligations of Guarantor
with respect to any Other Guarantor.

8.             Subordination. 
Any indebtedness of Borrower held by Guarantor now or in the future  (including but not limited to (i) all debts
and liabilities of Borrower to Guarantor whether the obligations of Borrower
are direct, contingent, primary, secondary, joint and several or otherwise,
whether the obligations are evidenced by note, contract, open account or
otherwise and irrespective of the creation of such debts or liabilities or
manner acquired by Guarantor, (ii) any dividends and payments pursuant to
debtor relief or insolvency proceedings referred to below and (iii) all liens,
security interests, judgment liens, charges or other encumbrances on Borrower’s
assets securing payment thereof) is and shall be subordinated to the
Indebtedness, and upon the occurrence of an Event of Default, but without
reducing or affecting in any manner the liability of Guarantor under the other
provisions of this Guaranty, except to the extent that such amounts are
actually applied toward Borrower’s obligations under the Loan Documents,  Guarantor shall not receive, or collect,
directly or indirectly any amount in connection with the foregoing.  If any amount is received by Guarantor on such
indebtedness of Borrower held by Guarantor at the time an Event of Default
exists, it shall be received by Guarantor in trust, as trustee for Lender, and
Guarantor agrees to pay such amounts promptly to Lender.  In the event of receivership, bankruptcy, reorganization, arrangement
or other debtor relief or insolvency proceedings involving Borrower as debtor,
Lender shall have the right to prove its claims in any such proceeding so as to
establish its rights hereunder and shall have the right to receive directly
from the receiver, trustee or other custodian (whether or not an Event of
Default shall have occurred or be continuing under any of the Loan Documents),
dividends and payments that are payable upon any obligation of Borrower to
Guarantor now existing or hereafter arising, and to

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have all benefits of any
security therefor, until the Indebtedness has been fully and finally paid and
performed.  Guarantor hereby
acknowledges and agrees that the foregoing provisions shall be operative
without the necessity of execution of any further documents.  Notwithstanding the foregoing, upon the
request of Lender, Guarantor hereby agrees to execute of a subordination
agreement, in form and content reasonably acceptable to Lender, evidencing the
provisions of this Section 8.

9.             Waiver of Subrogation Rights.  Any right or claim for subrogation or
reimbursement against Borrower by reason of any payment by Guarantor under this
Guaranty, is subordinated to the Indebtedness on the terms provided in Section
8 above, whether such right or claim arises at law or in equity or under any
contract or statute.

10.           No Discharge of Guarantor.  If any payment by Borrower is held to
constitute a preference under any applicable bankruptcy, insolvency, or similar
laws, or if for any other reason Lender is required to refund any sums to
Borrower, such refund shall not constitute a release of any liability of Guarantor
under this Guaranty.

11.           Financial Statements.  Guarantor agrees that, until Completion,
Guarantor will provide to Lender no later than December 31 of each year a
Collateral Value Statement for each of the Persons constituting Guarantor dated
as of the preceding June 30, in each case accompanied by a certificate executed
by the Person to whom such Collateral Value Statement relates certifying that,
to the knowledge of such Person, the Collateral Value Statement fairly presents
the collateral value of the assets shown in such Collateral Value Statement
determined on the same basis as described in the notes to the Collateral Value
Statements, dated as of June 30, 2005, provided for each Guarantor.

12.           Representation and Warranty.  Guarantor represents and warrants to Lender,
jointly and severally, that (i) CFP Residential, L.P. has the limited
partnership power and authority to enter into this Guaranty, to incur the
obligations provided for herein, and to execute and deliver the same to Lender,
(ii) when executed and delivered, this Guaranty will constitute a valid and
legally binding obligation of each Guarantor, enforceable against such
Guarantor in accordance with its terms (subject to bankruptcy, insolvency,
reorganization and similar laws and to general principles of equity) and (iii)
each Guarantor will directly or indirectly benefit from the Loan.

13.           Counterparts.  This Guaranty may be executed in one or more
counterparts, each of which shall be deemed an original, and all of which, when
taken together, shall constitute one and the same instrument.  The persons comprising Guarantor may execute
different counterparts of this Guaranty.

14.           Notices.  Any notice, election, communication, request,
approval or other document or demand required or permitted under this Guaranty
shall be in writing.  Each notice,
election, 

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communication, request, approval or other document or
demand shall be addressed to the intended recipient, in the case of Lender, at
its address set forth below or, in the case of a Guarantor, at its address set
forth on the signature page of this Guaranty. 
Each notice, election, communication, request, approval or other
document or demand shall be deemed given on the earliest to occur of (1) the
date when the notice is received by the addressee; (2) the first 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.  As used in this Section 21, the term “Business
Day” means any day other than a Saturday, a Sunday or any other legal holiday.  Any party
to this Agreement may change the address to which notices intended for it are
to be directed by means of notice given to the other party in accordance with
this Section 14.

15.           Assignment by Lender.  Lender may assign its rights under this
Guaranty in whole or in part and, upon any such assignment, all the terms and
provisions of this Guaranty shall inure to the benefit of such assignee to the
extent so assigned. The terms used to designate any of the parties herein shall
be deemed to include the estate, legal representatives, successors and assigns
of such party.

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

17.           Governing Law.  This Guaranty 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.

18.           SUBMISSION TO
JURISDICTION/SERVICE OF PROCESS. 
GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE PERSONAL JURISDICTION OF THE
STATE COURTS OF THE STATE OF TEXAS LOCATED IN DALLAS COUNTY, TEXAS FOR THE
PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF OR BASED UPON
THIS GUARANTY, THE SUBJECT MATTER HEREOF, OR THE LOAN. GUARANTOR TO THE EXTENT
PERMITTED BY APPLICABLE LAW (A) HEREBY WAIVES, AND AGREES 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 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 GUARANTY, THE SUBJECT MATTER
HEREOF, OR THE LOAN (AS APPLICABLE) MAY NOT BE

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ENFORCED IN OR BY SUCH COURT AND (B) HEREBY WAIVES
THE RIGHT TO REMOVE ANY SUCH ACTION, SUIT OR PROCEEDING INSTITUTED BY LENDER IN
STATE COURT TO FEDERAL COURT, OR TO REMAND AN ACTION INSTITUTED IN FEDERAL
COURT TO STATE COURT (UNLESS THE FEDERAL COURT HAS NO SUBJECT MATTER
JURISDICTION).  EACH GUARANTOR HEREBY
CONSENTS TO SERVICE OF PROCESS BY MAIL AT THE ADDRESS TO WHICH NOTICES ARE TO
BE GIVEN TO IT PURSUANT HERETO, BUT SERVICE WILL BE EFFECTIVE ONLY UPON
DELIVERY.  GUARANTOR AGREES THAT ITS
SUBMISSION TO JURISDICTION AND CONSENT TO SERVICE OF PROCESS BY MAIL IS MADE
FOR THE EXPRESS BENEFIT OF LENDER AND ITS ASSIGNS.  FINAL JUDGMENT AGAINST GUARANTOR 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 GUARANTOR THEREIN DESCRIBED, OR (Y) IN
ANY OTHER MANNER PROVIDED BY OR PURSUANT TO THE LAWS OF SUCH OTHER
JURISDICTION, PROVIDED, HOWEVER, THAT LENDER MAY AT ITS OPTION
BRING SUIT, OR INSTITUTE OTHER JUDICIAL PROCEEDINGS, AGAINST GUARANTOR OR ANY
OF ITS 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.

19.           WAIVER WITH RESPECT TO DAMAGES.  GUARANTOR ACKNOWLEDGES THAT LENDER DOES NOT
HAVE ANY FIDUCIARY RELATIONSHIP WITH, OR FIDUCIARY DUTY TO, GUARANTOR ARISING
OUT OF OR IN CONNECTION WITH THIS GUARANTY OR ANY OTHER LOAN DOCUMENT AND THE
RELATIONSHIP BETWEEN LENDER AND GUARANTOR, IN CONNECTION HEREWITH AND THEREWITH
IS SOLELY THAT OF GUARANTOR OF A DEBTOR AND CREDITOR.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, GUARANTOR
AND LENDER EACH SHALL NOT ASSERT, AND GUARANTOR AND LENDER EACH HEREBY WAIVES,
ANY CLAIMS AGAINST THE OTHER, 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 GUARANTY,
ANY OTHER LOAN DOCUMENT, ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY OR
THEREBY, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

20.           Change of Address.  Guarantor (or each Guarantor, if more than
one) agrees to notify Lender (in the manner for giving notices provided in
Section 14 above) of any change in Guarantor’s address within a reasonable time
after such change of address occurs.

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21.           Liability.

(a)           Notwithstanding anything in this
Guaranty to the contrary, Lender shall look for satisfaction of the obligations
of a Guarantor under this Guaranty only to the following real and personal
property of such Guarantor (the “Available Assets”):

(1)           the legal and beneficial interests of
such Guarantor in any entity that is, at the time of enforcement of this
Guaranty, (i) engaged in the business of holding, constructing, developing or
providing property management or overhead services for real estate designed for
residential use in the United States and (ii) affiliated in any way with
Trammell Crow Residential Company, or any subsidiary thereof or any successor
or assign of all or substantially all of the assets thereof; and

(2)           any receivables due the Guarantors
from any entity described in the foregoing item (1).

Except for the Available Assets, Lender shall not look
to a Guarantor’s tangible or intangible real and personal property (including
cash, cash equivalents, securities, partnership interests, receivable or
similar intangible personal property) for satisfaction of any Guarantor’s
obligations under this Guaranty.  Subject
to Section 21(b), Lender may not look to the tangible or intangible proceeds of
any assets of a Guarantor, including proceeds of the Available Assets, except
as specifically provided in paragraph (2) above.

(b)           Notwithstanding
the limitations in Section 21(a), Lender may look to proceeds of Available Assets
realized by a Guarantor (i) after the Aggregate Collateral Value, as reported
in the annual Collateral Value Statements prepared for the Guarantors, is less
than $80,000,000 or (ii) as a result of a transaction that causes the Aggregate
Collateral Value to be less than $80,000,000 
As used in this paragraph, the term “Aggregate Collateral Value” means
the aggregate value of the Available Assets as calculated on the basis provided
in the notes to the Collateral Value Statements of the Guarantors dated as of
June 30, 2005.  However, notwithstanding
this Section 21(b), in no event will Lender be entitled to satisfy any
obligation of a Guarantor from any of the following assets (collectively, “Excluded
Assets”): (i) the personal residences of the Guarantor, (ii) the Guarantor’s
nonbusiness real estate, including rural, vacation and resort property, up to
$1,000,000 in value, (iii) the Guarantor’s personal automobiles and other
tangible personal property, including household goods, clothing, silverware,
gems, jewelry and works of art, not to exceed $1,500,000 in values, (iv) the
interests listed in Section 21(c) and (v) proceeds of Excluded Assets.

(c)           In
no case may Lender look to any of the following owned by a Guarantor (even if
it otherwise would be available under the terms of this Section 21) or any
proceeds thereof: stock in AvalonBay Communities, Inc., units in Avalon
DownREIT V, L.P., stock in Gables Residential Trust, units in Gables Realty
Limited Partnership, units in Equity Residential Properties Trust, units in ERP
Operating Limited Partnership, stock in BRE Properties, Inc, units in BRE
Property Investors, LLC, units in AMLI Residential Property Trust, units in
AMLI Residential Properties, L.P., units in Merry Land DownREIT I, L.P.,
ownership in J. Ronald

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Terwilliger Grantor Trust, stock in JRT Holdings, Inc.
and ownership in Terwilliger Partners, LLLP and interests in TCR Affordable
Housing Limited Partnership

(d)           The
term “residential” as used in this Section 20 means single family and multi family
dwellings, residential land/lot developments, and senior living communities.

(e)           If
the collective aggregate value of the Available Assets of the Guarantor, as
reported in the Collateral Value Statement delivered under Section 11 falls to
less than $80,000,000 and if the Guarantor, Property Owner and/or Borrower fail
to correct such deficiency within 30 days following delivery of a deficiency
notice from Lender, then such failure shall, at the option of Lender,
constitute an Event of Default on the part of Borrower under the Loan
Documents.  Guarantor, Property Owner
and/or the Borrower shall have the right to correct any deficiency in Available
Assets by (i) obtaining and delivering to Lender one or more new guaranties,
each of which shall be in the form and content substantially the same as this
Guaranty from one or more persons whose Available Assets  are sufficient to correct the deficiency,
(ii) delivering to Lender and thereafter maintaining in full force and effect
(for so long as the deficiency exists) an unconditional and irrevocable letter
of credit, in a face amount sufficient to correct the deficiency, naming Lender
as beneficiary, and otherwise in form and content and issued by an institution
acceptable to Lender in the exercise of good faith business judgment, or (iii)
the amendment of this Guaranty (in form and substance acceptable to Lender in
the exercise of its good faith business judgment) in such a manner such that
the definition of Available Assets is expanded to include  additional assets that are not then included
in the definition of Available Assets, sufficient to correct the deficiency and
otherwise acceptable to Lender in its good faith business judgment.

22.           Successors and Assigns.  This Guaranty shall be binding upon Guarantor
and Guarantor’s executors, personal representatives, successors and assigns and
shall inure to the benefit of Lender and its successors and assigns.

23.           Attorney’s Fees.  If it becomes necessary for Lender to employ
counsel to enforce the obligations of Guarantor hereunder, Guarantor agrees to
pay the reasonable attorneys’ fees and expenses incurred by Lender in
connection therewith.

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

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

	
  

  	
   

  	
  GUARANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CFP Residential
  LP, a Texas limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: Crow Family,
  Inc., a Texas corporation, its general

  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Harlan R. Crow,
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address: 2001 McKinney Ave., Suite 700, Dallas,
  Texas

  75201

  
	
   

  	
   

  	
  Social
  Security/Employer ID No.:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Kenneth Valach,
  an individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address: 10333 Richmond Ave., Suite 400, Houston,
  Texas

  77042

  
	
   

  	
   

  	
  Social
  Security/Employer ID No.:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  J. Ronald
  Terwilliger, an individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address: Two Buckhead Plaza, 3050 Peachtree Road,
  N.W.,

  Suite 500, Atlanta, Georgia 30305

  
	
   

  	
   

  	
  Social
  Security/Employer ID No.:

  

 

 10
 

 

 

	
  

  	
   

  	
  Brian Austin, an
  individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address: 10333 Richmond Ave., Suite 400, Houston,
  Texas

  77042

  
	
   

  	
   

  	
  Social
  Security/Employer ID

  

 

 11

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