Document:

exv10w2

 

Exhibit 10.2

	 	 	 	 	 
	This instrument prepared by or
under the supervision of 
(and
after recording should be returned
to):	 	 
	 
	 	 	 	 
	Name:

	 	David S. Hall, Esq.	 	 
	Address:

	 	Thacher Proffitt & Wood LLP	 	 
	 

	 	Two World Financial Center	 	 
	 

	 	New York, New York 10281
	 	(Space reserved for Clerk of Court)

MORTGAGE CONSOLIDATION

AND SPREADER AGREEMENT

     THIS MORTGAGE CONSOLIDATION AND SPREADER AGREEMENT (this “Agreement”) is made as of
October 10, 2006 by and between TARRAGON LUGANO LLC, a Delaware limited liability company,
BALLANTRAE TARRAGON LLC, a Florida limited liability company, REFLECTION LAKES TARRAGON, LLC, a
Florida limited liability company, OMNI MONTERRA LLC, a Florida limited liability company, YBOR
CITY TARRAGON, LLC, a Delaware limited liability company, and MADISON AT PARK WEST TARRAGON, LLC, a
South Carolina limited liability company (each a “Borrower” and collectively the “Borrowers”),
having an address c/o 423 West 55th Street, 12th Fl., New York, New York 10019, and BARCLAYS
CAPITAL REAL ESTATE INC., a Delaware corporation (“Lender”), whose address is 200 Park Avenue, New
York, New York 10166.

NOTICE TO RECORDER: This Agreement amends and renews five (5) previous Florida
mortgages identified in attached Exhibit B as the “Original Florida Mortgages” and consolidates
them into one singular mortgage instrument made by the Borrowers party hereto, encumbering the five
Florida properties identified herein and therein and spreading the lien of the consolidated
mortgage to encumber a sixth mortgaged property located in the State of South Carolina. All
required Florida documentary stamp taxes and nonrecurring intangible personal property taxes were
previously paid upon recordation of the five Original Florida Mortgages in the Public Records of
the various Florida counties identified in Exhibit B, in each case based on the respective
principal amounts of the original promissory notes respectively secured thereby. The aggregate
outstanding principal balance of the five Florida loans secured by the Original Florida Mortgages
prior to this amendment was $196,426,806, and in connection with this amendment the Borrowers are
paying down the aggregate outstanding principal balance of the five Florida loans to $192,114,000.

As amended and consolidated by this Agreement, the Original Florida Mortgages together: (i)
encumber Florida real property located in various counties, having an aggregate approximate value
of $250,800,000, (ii) encumber real property located in the State of South Carolina having an
approximate value of $35,600,000, and (iii) secure six separate loans in the aggregate principal
amount of $215,000,000, with five such loans being renewals of the five Florida loans secured by
the Original Florida Mortgages and the sixth loan being a renewal of an existing loan to the owner
of the South Carolina property. Pursuant to Sections 201.08(5) and 199.133(2) of the Florida
Statutes and regulations promulgated thereunder, the amended and consolidated mortgages are subject
to additional Florida documentary stamp taxes and intangible taxes based on the increase, if any,
in the Florida tax base resulting from the application of rules limiting the tax base when there is
collateral in more than one state.

Pursuant to Rule 12B-4.053(31)(b) of the Florida Administrative Code, the tax base for documentary
stamp tax on a multi-state mortgage recorded in Florida that pledges both property inside Florida
and property outside Florida is the percentage of the secured indebtedness which the value of the
Florida mortgaged property bears to the total value of all the security, wherever located. The
$250,800,000 value of the Florida mortgaged property represents 86.7219 percent of the total value
of all the collateral ($286,400,000), and said percentage of the $215,000,000 aggregate principal
amount of the loans is $186,452,051, which when rounded up to the next $100 (i.e., to
($186,452,100) is the documentary stamp tax base for the amended and consolidated mortgages.
Pursuant to Rule 12C-2.004(2)(b) of the Florida Administrative Code, the tax base for nonrecurring
intangible personal property taxes on the amended and consolidated mortgages is also based on
86.7219 percent of the $215,000,000 aggregate principal amount of the loans, or $186,452,051.
Because the tax base for the amended and consolidated mortgages is lower than the previous tax base
on which stamp taxes and intangible taxes were paid (i.e., the outstanding $192,114,000 principal
balance secured by the Original Florida Mortgages and renewed hereby), no additional stamp taxes or
intangible taxes are payable with respect to this Agreement or the amended and consolidated
mortgages.

 

 

W I T N E S S E T H:

     WHEREAS, Lender is the owner and holder of the five mortgages more particularly described in
attached Exhibit B (the “Original Florida Mortgages”) and respectively recorded in the
Public Records of Palm Beach County, Hillsborough County, Lee County, and Seminole County, Florida,
respectively made by the following Borrowers: TARRAGON LUGANO LLC, a Delaware limited liability
company, BALLANTRAE TARRAGON LLC, a Florida limited liability company, REFLECTION LAKES TARRAGON,
LLC, a Florida limited liability company, OMNI MONTERRA LLC, a Florida limited liability company,
and YBOR CITY TARRAGON, LLC, a Delaware limited liability company;

     WHEREAS, the Original Florida Mortgages respectively encumber the lands more particularly
described in Exhibit A-1 (Palm Beach County, Florida), Exhibit A-2 (Seminole
County, Florida), Exhibit A-3 (Lee County, Florida), Exhibit A-4 (Lee County,
Florida) and Exhibit A-5 (Hillsborough County, Florida), and all improvements thereon,
leases and rents thereof, and other collateral pertaining thereto described in the Original Florida
Mortgages (collectively, the “Florida Property”), each to secure a loan from Lender to the
respective Borrower in the original principal amount set forth in attached Exhibit B (the
“Original Florida Loans”), each evidenced by one or more promissory notes of even date with the
respective Original Florida Mortgage in said aggregate original principal amount made by the
respective Borrower in favor of Lender (the “Original Florida Notes”), and each governed by a Loan
Agreement of even date with the respective Original Florida Mortgage made by Lender and the
respective Borrower (the “Original Florida Loan Agreements,” and together with the Original Florida
Mortgages and the Original Florida Notes, the “Original Florida Documents”);

     WHEREAS, Borrower MADISON AT PARK WEST TARRAGON, LLC, a South Carolina limited liability
company (“Madison”), is the owner of the lands more particularly described in attached Exhibit
A-6 (Charleston County, South Carolina), and all improvements thereon, leases and rents
thereof, and other collateral pertaining thereto (the “South Carolina Property”), and Madison is
the Borrower of an existing loan from Lender in the original principal amount of $23,400,000.00
(the “Original Madison Loan”) evidenced by a promissory note dated November 8, 2005 in said
original principal amount made by Madison in favor of Lender (the “Original Madison Note”) and
governed by a Loan Agreement of even date therewith made by Lender and Madison (the “Original
Madison Loan Agreement”);

     WHEREAS, the Original Florida Loans and the Original Madison Loan are referred to herein
collectively as the “Original Loans,” the Original Florida Notes and the Original Madison Note are
referred to herein collectively as the “Original Notes,” the Original Florida Loan Agreement and
the Original Madison Loan Agreement are referred to herein collectively as the “Original Loan
Agreements,” and the Original Florida Documents and the Original Madison Note and the Original
Madison Loan Agreement are referred to herein collectively as the “Original Documents”; and

     WHEREAS, Lender is willing to extend the maturity date of the Original Loans and to amend
other terms of the Original Loans and the Original Documents as requested by the Borrowers,
provided that each Borrower (i) agrees to consolidate the Original Florida Mortgages into one
mortgage instrument encumbering all of the Florida Property as security for all of said extended
and amended indebtedness, (ii) spreads the lien of said consolidated mortgage to

2

 

encumber the South Carolina Property as security for all of said extended and amended
indebtedness, (iii) amends and restates the Original Florida Mortgages as so consolidated and
spread to contain terms and conditions acceptable to Lender as provided hereinafter, including
without limitation provisions cross-defaulting said extended and amended indebtedness and
cross-collateralizing the same by all of the Florida Property and the South Carolina Property, (iv)
repays a portion of the principal balance outstanding under its respective Original Loan so that
the reduced aggregate principal balance outstanding under all the Original Loans shall be
$215,000,000, (v) executes and delivers to Lender one or more renewal promissory notes evidencing
its respective Original Loan as so reduced, extended and amended, and (vi) enters into an amendment
of its respective Original Loan Agreement;

     NOW, THEREFORE, in consideration of the foregoing recitals and the sum of TEN DOLLARS and
other good and valuable consideration, Borrowers and Lender agree that the foregoing recitals are
true and correct and further agree as follows:

1. DEFINITIONS

     In addition to the capitalized terms defined in the foregoing recitals and set forth below,
the capitalized terms used but not defined herein shall have the respective meanings set forth in
the Loan Agreement. The following capitalized terms shall have the following respective meanings:

     (a) “Loans” means the Original Florida Loans and the Original Madison Loan, each as extended
and amended in connection with this Agreement, in the aggregate principal amount of $215,000,000
and in the respective principal amounts set forth in Section 2(a) below.

     (b) “Mortgage” means the Amended and Restated Mortgage, Assignment of Leases and Rents,
Security Agreement and Fixture Filing of even date herewith made by the Borrowers and Lender to
amend further and to restate and supersede in their entirety the Original Florida Mortgages as
consolidated and amended hereby.

     (c) “Notes” means the Amended and Restated Promissory Notes of even date herewith executed in
favor of Lender by each of the respective Borrowers (together with all notes issued in full or
partial replacements thereof, or in substitution or exchange therefor, and all amendments thereto)
to evidence the renewal of the reduced principal balance outstanding under the respective Original
Notes previously made in favor of Lender by each of the Borrowers.

     (d) “Loan Agreements” means the Original Loan Agreements, each as amended by an Amendment to
Loan Agreement of even date herewith executed by Lender and the respective Borrower to govern the
separate Loan made by Lender to such Borrower.

     (e) “Property” means the Florida Property and the South Carolina Property.

2. RENEWAL LOANS

     (a) By the execution and delivery of its respective Note or Notes to Lender by each of the
Borrowers, the outstanding principal balance of the Original Loan owing under the Original Note or
Original Notes made by such Borrower has been renewed and the maturity thereof has

3

 

been extended to the new maturity date set forth in the respective Loan Agreement. The
following Loans are and shall be evidenced by the respective Notes made by the respective Borrowers
of even date herewith, as set forth below:

	 	 	 	 	 
	 	 	Principal Amount of Notes and
	Borrower	 	Loans
	Tarragon Lugano LLC
	 	$	53,303,000	 
	 
	 	 	 	 
	Ballantrae Tarragon LLC
	 	$	40,393,000	 
	 
	 	 	 	 
	Reflection Lakes Tarragon, LLC
	 	$	50,076,000	 
	 
	 	 	 	 
	Omni Monterra LLC
	 	$	41,200,000	 
	 
	 	 	 	 
	Ybor City Tarragon, LLC
	 	$	7,142,000	 
	 
	 	 	 	 
	Madison at Park West Tarragon, LLC
	 	$	22,886,000	 
	 
	 	 	 	 
	Aggregate Principal Amount:
	 	$	215,000,000	 

     (b) Each Loan shall bear interest as provided in the respective Note or Notes and Loan
Agreement, shall be governed by the respective Loan Agreement and is secured by the Original
Florida Mortgages (as consolidated and amended hereby) and by any other security documents executed
by any Borrower from time to time in favor of Lender.

     (c) Each Borrower acknowledges and agrees that the aggregate principal amount of its
respective Note or Notes as set forth above represents the principal balance outstanding under its
respective Original Loan after giving effect to the partial repayment required by Lender from such
Borrower as a condition to extending and amending the Original Loans, and that said principal
amount has been fully advanced to such Borrower.

     (d) Each of the Notes is being made solely by the same Borrower that executed the respective
Original Note renewed thereby. Each Borrower is and shall be separately liable as a maker with
respect to its Note or Notes only, and no Borrower has assumed or shall be liable as a maker with
respect to any of the other Notes executed by any of the other Borrowers. Nothing contained in
this Agreement shall impair or otherwise adversely affect any guaranty of payment made in favor of
Lender by any Borrower from time to time.

     (e) The renewal of the Original Loans evidenced by this Agreement and by the execution and
delivery of the respective Notes is not a repayment or novation of the Original Loans. Neither
this Agreement nor the Mortgage shall impair or otherwise adversely affect the priority of the
liens and security interests of any of the Original Florida Mortgages or any other security
instrument securing any of the Original Loans, all of which shall remain in full force and effect
as modified by this Agreement and by the Mortgage.

     (f) The Borrowers represent to Lender that: (i) the Notes evidencing the renewal and
refinancing of the respective outstanding principal amounts of the Original Loans are exempt from
Florida documentary stamp taxes as provided in Section 201.09 of the Florida Statutes and

4

 

exempt from Florida non-recurring intangible personal property taxes as provided in Section
199.145(4) of the Florida Statutes; and (ii) this Agreement and the amendment and consolidation of
the Original Florida Mortgages as set forth in this Agreement are exempt from said taxes for the
reasons set forth in the “Notice to Recorder” provision on the first page of this Agreement. The
Borrowers jointly and severally agree to indemnify, defend and hold Lender harmless from any such
stamp taxes or intangible taxes that may be imposed, assessed or asserted by the State of Florida
or any political subdivision thereof against Lender on account of this Agreement, the Loans, the
Notes, the Mortgage or any other instrument or document executed, delivered or recorded in
connection herewith, together with any interest or penalties pertaining thereto and any attorney’s
fees or other expenses incurred by Lender in connection therewith.

3. MORTGAGE CONSOLIDATION AGREEMENT

     Each Borrower party to this Agreement hereby agrees with Lender that all of the Original
Florida Mortgages are hereby modified and consolidated into one singular mortgage instrument in
favor of Lender encumbering all of the Florida Property as security for all of the Loans, and each
Borrower hereby ratifies and confirms the lien of the consolidated Original Florida Mortgages with
respect to the portion of the Florida Property owned by such Borrower. The Florida Property
includes lands lying in two or more counties in the State of Florida, and this Agreement has been
executed in multiple counterparts so that separate original counterparts can be recorded in each
such county, but all of the counterparts together and all of the Original Florida Mortgages as
consolidated hereby shall constitute one singular mortgage instrument encumbering all of the
Florida Property wherever located. In accordance with Section 702.04 of the Florida Statutes, each
Borrower agrees that at Lender’s option the Original Florida Mortgages as consolidated hereby may
be foreclosed in any one of said counties as determined by Lender, and all foreclosure proceedings
shall be had in that county as if all the Florida Property lay therein, except that notice of the
foreclosure sale shall be published in every county wherein lies any of the Florida Property to be
sold. After final disposition of the foreclosure suit, the clerk of the circuit court shall
prepare and forward a certified copy of the decree of foreclosure and sale and of the decree of
confirmation of sale to the clerk of the circuit court of every other county wherein lies any of
the Florida Property, to be recorded in the foreign judgment records of each such other county, and
the costs of such copies and of the record thereof shall be taxed as costs in the foreclosure
proceedings.

4. MORTGAGE SPREADER AGREEMENT

     As security for the Loans and subject to the terms and conditions set forth in the Original
Florida Mortgages as consolidated by this Agreement, Madison hereby grants, bargains, sells,
conveys, assigns, transfers, mortgages, pledges, delivers, sets over, warrants and confirms to
Lender, and grants Lender a security interest in, and agrees that the lien of the Original Florida
Mortgages as so consolidated is hereby spread and extended to encumber with the same force and
effect as if originally set forth therein, all of Madison’s right, title and interest in and to the
South Carolina Property more particularly described in Exhibit A-6 attached hereto,
together with and all improvements thereon, leases and rents thereof, and other collateral of the
types described in the Original Florida Mortgages and located on or pertaining to the South
Carolina Property. The South Carolina Property is located outside of the State of Florida, and
Madison shall record this Agreement or such other security documents as may be required by
applicable law in the appropriate filing or recording offices of the county in which the South
Carolina

5

 

Property is be located, in order to perfect the lien and security interest granted herein to
Lender against the South Carolina Property as security for the Loans.

5. CROSS-DEFAULT AND CROSS-COLLATERALIZATION

     (a) Each Borrower party to this Agreement hereby agrees with Lender that any default or
“Default” or “Event of Default” (i) occurring with respect to any Loan made to any Borrower or (ii)
occurring under the terms of any Note or Loan Agreement executed by any Borrower or (iii) occurring
under terms of the Mortgage with respect to any Borrower or the respective Property owned by such
Borrower, shall, after giving effect to any applicable notice, grace or cure provisions contained
therein, also constitute a default, “Default” or “Event of Default” respectively under all of the
other Loans, under all of the other Notes and Loan Agreements, and under the Mortgage with respect
to all the Borrowers and all the Property described in the Mortgage.

     (b) Each Borrower party to this Agreement hereby agrees with Lender that all of the Property
described in the Mortgage and any other collateral securing any of the Loans shall stand as
collateral security for all of the Loans, and Lender may pursue any and all remedies available
under applicable law against any of the Property or other collateral in any order that Lender may
determine in its sole discretion for the payment of any of the Loans, each Borrower hereby waiving
any right to have any such Property or any other collateral marshalled or applied to the payment of
any obligations in any particular order.

6. AMENDMENT AND RESTATEMENT

     (a) In order to induce Lender to extend and amend the Original Loans and to enter into this
Agreement, the Loan Agreements and the other documents pertaining to the Loans, each Borrower
hereby agrees that such Borrower has no claims, offsets or defenses against Lender or against
enforcement of the terms of the Original Documents against such Borrower, and each Borrower waives
and relinquishes any such claims, offsets or defenses whatsoever that such Borrower may now have.

     (b) In addition to the modifications of the Original Florida Mortgages set forth in this
Agreement, Borrowers and Lender have concurrently herewith executed and delivered multiple
counterparts of a certain Amended and Restated Mortgage, Assignment of Leases and Rents, Security
Agreement and Fixture Filing of even date herewith (the “Mortgage”) to amend further and restate
the terms and provisions of the Original Florida Mortgages (as consolidated and amended hereby) in
their entirety, and a counterpart of the Mortgage is to be recorded immediately following this
Agreement in the Public Records of each Florida county in which this Agreement is recorded,
whereupon the Mortgage shall supersede and replace the terms and provisions of this Agreement and
the Original Florida Mortgages as so consolidated and amended hereby. Notwithstanding that the
terms and provisions of the Original Florida Mortgages are being restated by the Mortgage, it is
the intention of Borrowers and Lender that the Mortgage shall not constitute a novation of the
Original Florida Mortgages but shall continue in full force and effect the lien and priority of
each of the Original Florida Mortgages (as consolidated, spread and amended hereby) as security for
the respective Original Loan identified therein (as modified hereby) as well as additional
cross-security for the other Loans.

6

 

7. MISCELLANEOUS PROVISIONS

     7.1 Each Borrower hereby ratifies and confirms all of the terms, covenants, conditions,
warranties, representations and agreements contained in the Original Documents, which shall remain
in full force and effect as modified by this Agreement, the Notes, the Loan Agreements and the
Mortgage.

     7.2 In the event of any conflict between the terms of any Loan Agreement and the terms of this
Agreement, the terms of such Loan Agreement shall govern.

     7.3 All of the terms and provisions of this Agreement are and shall be binding on, and shall
inure to the benefit of, Borrowers and Lender and their respective successors and assigns.

     7.4 Wherever used in this Agreement and unless the context otherwise requires, words in the
singular include the plural, words in the plural include the singular, and pronouns of any gender
include the other genders. Captions and paragraph headings contained in this Agreement are for
convenience only and shall not affect its interpretation. All references in this Agreement to
Exhibits, sections, subsections, paragraphs and subparagraphs refer to the respective subdivisions
of this Agreement, unless such reference expressly identifies another document. All references in
this Agreement to sums expressed in dollars or with the symbol “$” refer to the lawful currency of
the United States of America, unless such reference specifically identifies another
dollar-denominated currency.

     7.5 This Agreement shall be governed by, and construed and enforced in accordance with, the
laws of the State of Florida.

     7.6 This Agreement consists of seven (7) numbered pages, plus unnumbered signature pages and
seven (7) Exhibits (“A-1” through “A-6” inclusive and “B”), which are incorporated herein by this
reference.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

7

 

     WITNESS the due execution hereof as of the date first written above.

BORROWERS:

     WITNESS the due execution hereof as of the date first written above.

	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered in the
presence of these witnesses:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	REFLECTION LAKES
TARRAGON, LLC, a

Florida limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	By:	 	Reflection Lakes Manager, Inc., a Nevada
corporation, its manager
	 
	 	 	 	 	 	 	 	 
	WITNESS:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Charles D. Rubenstein
	 	 	 	 	 	 	 	 	 
	Print Name:

	 	 	 	 	 	 	 	Executive Vice President

 

 

	 	 	 	 	 	 	 
	STATE OF

	 	 	 	 	)	 
	 

	 	 

	 	 	 	 
	 
	 	)   	 	 	SS:	 
	COUNTY OF

	 	 	 	 	)	 
	 

	 	 

	 	 	 	 

     The foregoing instrument was acknowledged before me this                      day of                     , 2006
by                                         , the                                      
   , of                                         , a(n)
                                        , as [manager/managing member] of each of REFLECTION LAKES TARRAGON, LLC, a
Florida limited liability company, on behalf of the companies. S/he is personally known to me or
has produced a                                          as identification.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Notary:	 	 	 	 
	[NOTARIAL SEAL]

	 	 	 	 
 
 Print Name:

	 	 
	 

	 	 	 	Notary Public, State of	 	 	 	 
	My commission expires:

	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	 	 	 

 

 

     WITNESS the due execution hereof as of the date first written above.

	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered in the
presence of these witnesses:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	MADISON AT PARK WEST TARRAGON, LLC,

a South Carolina limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	By:	 	Madison Tarragon Manager, Inc., a Nevada
corporation, its managing member
	 
	 	 	 	 	 	 	 	 
	WITNESS:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Charles D. Rubenstein
	 	 	 	 	 	 	 	 	 
	Print Name:

	 	 	 	 	 	 	 	Executive Vice President

 

 

	 	 	 	 	 	 	 
	STATE OF

	 	 	 	 	)	 
	 

	 	 

	 	 	 	 
	 
	 	)   	 	 	SS:	 
	COUNTY OF

	 	 	 	 	)	 
	 

	 	 

	 	 	 	 

     The foregoing instrument was acknowledged before me this                      day of                                   
      , 2006
by                                      , the                               
           of                                         , a(n)
                                        , as [manager/managing member] of each of MADISON AT PARK WEST TARRAGON, LLC, a
South Carolina limited liability company, on behalf of the companies. S/he is personally known to
me or has produced a                                          as identification.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Notary: 
	 	 
	[NOTARIAL SEAL]

	 	 	 	
Print Name:  

	 	 
	 

	 	 	 	Notary Public, State of
	 	 

	 	 
	My commission expires:

	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	 	 	 

 

 

     WITNESS the due execution hereof as of the date first written above.

	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered in the
presence of these witnesses:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	OMNI MONTERRA LLC, a Florida

limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	By:	 	Monterra Tarragon, Inc., a Nevada
corporation, its managing ,member
	 
	 	 	 	 	 	 	 	 
	WITNESS:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Charles D. Rubenstein
	 	 	 	 	 	 	 	 	 
	Print Name:

	 	 	 	 	 	 	 	Executive Vice President

 

 

	 	 	 	 	 	 	 
	STATE OF

	 	 	 	 	)	 
	 

	 	 

	 	 	 	 
	 
	 	)   	 	 	SS:	 
	COUNTY OF

	 	 	 	 	)	 
	 

	 	 

	 	 	 	 

     The foregoing instrument was acknowledged before me this                      day of                              
           , 2006
by                                , the                                  
        of                                         , a(n)
                                        , as [manager/managing member] of each of OMNI MONTERRA LLC, a Florida limited
liability company, on behalf of the companies. S/he is personally known to me or has produced a
                                         as identification.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Notary:  
	 	 
	[NOTARIAL SEAL]

	 	 	 	Print
Name: 

	 	 
	 

	 	 	 	Notary Public, State of
	 	
	 	 
	 

	 	 	 	My commission expires:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

     WITNESS the due execution hereof as of the date first written above.

	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered in the
presence of these witnesses:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	BALLANTRAE TARRAGON LLC, a Florida

limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	By:	 	Ballantrae Manager, Inc., a Nevada
corporation, its managing member
	 
	 	 	 	 	 	 	 	 
	WITNESS:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Todd C. Minor
	 	 	 	 	 	 	 	 	 
	Print Name:

	 	 	 	 	 	 	 	Executive Vice President

 

 

	 	 	 	 	 	 	 
	STATE OF

	 	 	 	 	)	 
	 

	 	 

	 	 	 	 
	 
	 	)   	 	 	SS:	 
	COUNTY OF

	 	 	 	 	)	 
	 

	 	 

	 	 	 	 

     The foregoing instrument was acknowledged before me this                      day of                               
          , 2006
by                                      , the                                 
         of                     , a(n)
                                        , as [manager/managing member] of each of BALLANTRAE TARRAGON LLC, a Florida
limited liability company, on behalf of the companies. S/he is personally known to me or has
produced a                                          as identification.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Notary:  
	 	 
	[NOTARIAL SEAL]

	 	 	 	Print
Name: 

	 	 
	 

	 	 	 	Notary Public, State of
	 	
	 	 
	 

	 	 	 	My commission expires:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

     WITNESS the due execution hereof as of the date first written above.

	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered in the
presence of these witnesses:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	YBOR CITY TARRAGON, LLC, a Delaware

limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	By:	 	Tarragon South Development Corp., a Nevada
corporation, its managing member
	 
	 	 	 	 	 	 	 	 
	WITNESS:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Charles D. Rubenstein
	 	 	 	 	 	 	 	 	 
	Print Name:

	 	 	 	 	 	 	 	Executive Vice President

 

 

	 	 	 	 	 	 	 
	STATE OF

	 	 	 	 	)	 
	 

	 	 

	 	 	 	 
	 
	 	)   	 	 	SS:	 
	COUNTY OF

	 	 	 	 	)	 
	 

	 	 

	 	 	 	 

     The foregoing instrument was acknowledged before me this                      day of                                  
       , 2006
by                                     , the                                     
     of                     , a(n)
                                        , as [manager/managing member] of each of YBOR CITY RARRAGON, LLC, a Delaware
limited liability company, on behalf of the companies. S/he is personally known to me or has
produced a                                          as identification.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Notary:  
	 	 
	[NOTARIAL SEAL]

	 	 	 	Print
Name: 

	 	 
	 

	 	 	 	Notary Public, State of
	 	
	 	 
	 

	 	 	 	My commission expires:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

     WITNESS the due execution hereof as of the date first written above.

	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered in the
presence of these witnesses:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	TARRAGON LUGANO LLC, a Delaware

limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	By:	 	Tarragon Corporation, a Nevada corporation,
its sole member and manager
	 
	 	 	 	 	 	 	 	 
	WITNESS:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Charles D. Rubenstein
	 	 	 	 	 	 	 	 	 
	Print Name:

	 	 	 	 	 	 	 	Executive Vice President

 

 

	 	 	 	 	 	 	 
	STATE OF

	 	 	 	 	)	 
	 

	 	 

	 	 	 	 
	 
	 	)   	 	 	SS:	 
	COUNTY OF

	 	 	 	 	)	 
	 

	 	 

	 	 	 	 

     The foregoing instrument was acknowledged before me this                      day of                     , 2006
by                                          , the                                    
      of                                         , a(n)
                                        , as [manager/managing member] of each of TARRAGON LUGANO LLC, a Delaware
limited liability company, on behalf of the companies. S/he is personally known to me or has
produced a                                          as identification.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Notary:  
	 	 
	[NOTARIAL SEAL]

	 	 	 	Print
Name: 

	 	 
	 

	 	 	 	Notary Public, State of
	 	
	 	 
	 

	 	 	 	My commission expires:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

     LENDER:

	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered in the
presence of these witnesses:	 	BARCLAYS CAPITAL REAL ESTATE INC., a
Delaware corporation
	 
	 	 	 	 	 	 	 	 
	Witness:

	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	Print Name:

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	Witness:

	 	 	 	 	 	[CORPORATE SEAL]
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Print Name:
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	STATE OF

	 	 	 	 	)	 
	 

	 	 

	 	 	 	 
	 
	 	)   	 	 	SS:	 
	COUNTY OF

	 	 	 	 	)	 
	 

	 	 

	 	 	 	 

     The
foregoing instrument was acknowledged before me this
            
day of                                          , 2006 by
                    
 as
                                         of BARCLAYS CAPITAL REAL ESTATE INC., a Delaware
corporation, on behalf of the corporation. S/he personally appeared before me and is personally
known to me or produced
                                         as identification and did not take an oath.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Notary:  
	 	 
	[NOTARIAL SEAL]

	 	 	 	Print
Name: 

	 	 
	 

	 	 	 	Notary Public, State of
	 	
	 	 
	 

	 	 	 	My commission expires:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

EXHIBIT A-1

LEGAL DESCRIPTION

PALM BEACH COUNTY, FLORIDA

“VIA LUGANO”

OWNER & MORTGAGOR: TARRAGON LUGANO LLC

 

 

EXHIBIT A-2

LEGAL DESCRIPTION

SEMINOLE COUNTY, FLORIDA:

“BALLANTRAE”

OWNER & MORTGAGOR: BALLANTRAE TARRAGON LLC

 

 

EXHIBIT A-3

LEGAL DESCRIPTION

LEE COUNTY, FLORIDA

“PROMENADA”

OWNER & MORTGAGOR: REFLECTION LAKES TARRAGON, LLC

 

 

EXHIBIT A-4

LEGAL DESCRIPTION

LEE COUNTY, FLORIDA

“MONTERRA”

OWNER & MORTGAGOR: OMNI MONTERRA LLC

 

 

EXHIBIT A-5

LEGAL DESCRIPTION

HILLSBOROUGH COUNTY, FLORIDA

“QUARTER YBOR”

OWNER & MORTGAGOR: YBOR CITY TARRAGON, LLC

 

 

EXHIBIT A-6

LEGAL DESCRIPTION

CHARLESTON COUNTY, SOUTH CAROLINA

“CARRINGTON”

OWNER & MORTGAGOR: MADISON AT PARK WEST TARRAGON, LLC

 

 

EXHIBIT B

“ORIGINAL FLORIDA MORTGAGES”

	 	 	 	 	 	 	 
	“Property Name” /	 	Florida	 	Mortgage	 	Original Loan /
	Borrower Name	 	County	 	Recorded in	 	Date of Note(s)
	 
	“VIA LUGANO”

TARRAGON LUGANO LLC
	 	Palm Beach
	 	O.R. Book 19450

Page 1159
	 	$60,000,000.00

October 14,

2005
	 	 	 	 	 	 	 
	“BALLANTRAE”

BALLANTRAE TARRAGON LLC
	 	Seminole
	 	O.R. Book 6168

Page 158
	 	$41,300,000.00

March 17,

2006
	 	 	 	 	 	 	 
	“PROMENADA”

REFLECTION LAKES 

TARRAGON, LLC
	 	Lee
	 	Official Records

Instrument No.

2006000064705
	 	$51,200,000.00

February 8,

2006
	 	 	 	 	 	 	 
	“MONTERRA”

OMNI MONTERRA LLC
	 	Lee
	 	Instrument No.

2005000046114
	 	$42,125,000.00

September 23,

2005
	 	 	 	 	 	 	 
	“QUARTER YBOR”

YBOR CITY TARRAGON, LLC
	 	Hillsborough
	 	O.R. Book 14894

Page 331
	 	$56,950,000.00

April 13,

2005

Exhibit B
- Original Florida Mortgagesexv10w3

 

Exhibit 10.3

AMENDED AND RESTATED

MORTGAGE, ASSIGNMENT OF LEASES AND RENTS,

SECURITY AGREEMENT AND FIXTURE FILING

          THIS AMENDED AND RESTATED MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT
AND FIXTURE FILING (this “Security Instrument”) is made as of October 10, 2006, by TARRAGON
LUGANO LLC, a Delaware limited liability company, BALLANTRAE TARRAGON LLC, a Florida limited
liability company, REFLECTION LAKES TARRAGON, LLC, a Florida limited liability company, OMNI
MONTERRA LLC, a Florida limited liability company, YBOR CITY TARRAGON, LLC, a Delaware limited
liability company, and MADISON AT PARK WEST TARRAGON, LLC, a South Carolina limited liability
company (each a “Mortgagor” and collectively the “Borrower”), whose address is c/o
423 West 55th Street, 12th Fl., New York, New York 10019, in favor of BARCLAYS CAPITAL REAL ESTATE
INC., a Delaware corporation, its successors and assigns (“Lender”), whose address is 200
Park Avenue, New York, New York 10166.

RECITALS

          A. Lender is the mortgagee under a consolidated mortgage from Borrower as mortgagor (the
“Previous Mortgage”), as more particularly set forth in a certain Mortgage Consolidation
and Spreader Agreement of even date herewith made by Borrower as mortgagors and Lender as mortgagee
(the “Consolidation Agreement”), a counterpart of which was recorded in the Public Records
of the same Florida county and on the same date as this counterpart of the Security Instrument is
being recorded, with the recording information for said counterpart of the Consolidation Agreement
being set forth below:

          Official Records Book                     , Page                     , and/or

          Clerk’s File Number                                         

          B. The Consolidation Agreement amended and consolidated into one mortgage instrument five
previously separate Florida mortgages respectively recorded in Palm Beach County, Hillsborough
County, Lee County, Lee County and Seminole County, Florida and more particularly identified in
Exhibit B of the Consolidation Agreement, encumbering the Florida real property identified in
Exhibits A-1 through A-5 inclusive attached thereto and hereto (the “Florida Property”),
and counterparts of the Consolidation Agreement and of this Security Instrument are being recorded
in each of said Florida counties.

          C. In addition, the Consolidation Agreement spread and extended the lien of the consolidated
mortgage to encumber the “South Carolina Property” as defined in the Consolidation Agreement and
more particularly described in Exhibit A-6 attached thereto and hereto, and counterparts of
the Consolidation Agreement and this Security Instrument (or other security instruments complying
with South Carolina law) are being recorded in the South Carolina county where the South Carolina
Property is located.

-1-

 

          D. This amended and restated Security Instrument is the “Mortgage” referred to in the
Consolidation Agreement. By executing this Security Instrument, Lender and Borrower desire to
amend, restate, supersede and replace the Previous Mortgage in its entirety as set forth herein as
security for the following described loans from Lender to the respective Mortgagors (the
“Loans”), each governed by a Loan Agreement as amended by an Amendment to Loan Agreement of
even date herewith made by and between Lender and the respective Mortgagor (as so amended, each a
“Loan Agreement” and collectively, the “Loan Agreements”) and each evidenced by one
or more Amended and Restated Promissory Notes of even date herewith made in favor of Lender by the
respective Mortgagors (each a “Note” and collectively, the “Notes”) in the
respective principal amounts set forth below:

	 	 	 	 	 
	 	 	Principal Amount of Notes and
	Mortgagor	 	Loans
	Tarragon Lugano LLC
	 	$	53,303,000	 
	Ballantrae Tarragon LLC
	 	$	40,393,000	 
	Reflection Lakes Tarragon, LLC
	 	$	50,076,000	 
	Omni Monterra LLC
	 	$	41,200,000	 
	Ybor City Tarragon, LLC
	 	$	7,142,000	 
	Madison at Park West Tarragon, LLC
	 	$	22,886,000	 
	Aggregate Principal Amount:
	 	$	215,000,000	 

          NOW, THEREFORE, in consideration of the foregoing recitals and the sum of ten dollars and
other good and valuable considerations, Mortgagors and Lender agree that the Previous Mortgage is
hereby renewed, amended and restated in its entirety as set forth hereinbelow and shall be
superseded and replaced by this Security Instrument, all as security for the Loans and the other
“Obligations” (as defined hereinbelow), but without loss of priority or novation of the lien and
security interests of the Previous Mortgage, which lien and security interests are hereby ratified
and confirmed on the terms and conditions set forth in this Security Instrument.

ARTICLE I

DEFINED TERMS

          Section 1.01 Defined Terms. Capitalized terms used in this Security Instrument and
not specifically defined in this Security Instrument have the meaning provided in the respective
Loan Agreements. Each of the Mortgagors is included in the term “Borrower” as defined in
this Security Instrument and each of them makes the representations, warranties, covenants and
agreements of the Borrower set forth herein; provided, however, that notwithstanding said
definition of “Borrower” or any other provision of this Security Instrument:

-2-

 

(i) each Mortgagor is and shall be the sole maker and primary obligor with respect to the
respective Note made by such Mortgagor, and the other Mortgagors are not liable with respect to
such Note as makers thereof; and (ii) each Mortgagor is and shall be the sole grantor of the
mortgage lien and security interest granted in this Security Instrument against the respective
property of such Mortgagor, as respectively identified in attached Exhibit A-1 through
Exhibit A-6 inclusive.

ARTICLE II

GRANT OF SECURITY

          Section 2.01 Property Mortgaged. Borrower does hereby irrevocably deed, mortgage,
grant, bargain, sell, assign, pledge, warrant, transfer and convey to Lender, and to its successors
and assigns as Lender, as security for the Obligations, with power of sale, the following property,
rights, interests and estates, now owned or hereafter acquired by Borrower (collectively,
“Property”):

          (a) Land. The land described in Exhibit A-1 through Exhibit A-6
inclusive attached hereto and made a part hereof, together with all estates and development rights
now existing or hereafter acquired for use in connection therewith (“Land”);

          (b) Additional Land. All land that, from time to time, by supplemental deed or
otherwise, may be expressly made subject to this Security Instrument, and all estates and
development rights hereafter acquired by Borrower for use in connection with such land (also, the
“Land”);

          (c) Improvements. All buildings, structures, improvements and fixtures now or
hereafter erected or located on the Land (“Improvements”);

          (d) Easements. All easements, rights-of-way or use, rights, strips and gores of land,
streets, ways, alleys, passages, sewer rights, water, water courses, water rights and powers, air
rights and development rights, and all estates, rights, titles, interests, privileges, liberties,
servitudes, tenements, hereditaments and appurtenances of any nature whatsoever, in any way now or
hereafter belonging, relating or pertaining to the Land and/or the Improvements and the reversion
and reversions, remainder and remainders, and all land lying in the bed of any street, road or
avenue, opened or proposed, in front of or adjoining the Land, to the center line thereof, and all
the estates, rights, titles, interests, dower and rights of dower, curtesy and rights of curtesy,
property, possession, claim and demand whatsoever, both at law and in equity, of Borrower of, in
and to the Land and/or Improvements and every part and parcel thereof, with all appurtenances
thereto, in each case to the extent of Borrower’s interest therein;

          (e) Fixtures and Personal Property. All machinery, equipment, fixtures (including,
without limitation, all heating, air conditioning, plumbing, lighting, communications and elevator
fixtures), furnishings, building supplies and materials, and all other personal property of every
kind and nature whatsoever owned by Borrower (or in which Borrower has or hereafter acquires an
interest) and now or hereafter located upon, or appurtenant to, the Property or used or useable in
the present or future operation and occupancy of the Property, along with

-3-

 

all accessions, replacements or substitutions of all or any portion thereof (collectively,
“Personal Property”);

          (f) Leases and Rents. Subject to the terms of Section 2.03(b) hereof, all leases,
subleases, licenses and other agreements granting others the right to use or occupy all or any part
of the Property together with all restatements, renewals, extensions, amendments and supplements
thereto (“Leases”), now existing or hereafter entered into, and whether entered before or
after the filing by or against Borrower of any petition for relief under the Bankruptcy Code, and
all of Borrower’s right, title and interest in the Leases, including, without limitation (i) all
guarantees, letters of credit and any other credit support given by any tenant or guarantor in
connection therewith (“Lease Guaranties”), (ii) all cash, notes, or security deposited
thereunder to secure the performance by the tenants of their obligations thereunder (“Tenant
Security Deposits”), (iii) all claims and rights to the payment of damages and other claims
arising from any rejection by a tenant of its Lease under the Bankruptcy Code (“Bankruptcy
Claims”), (iv) all of the landlord’s rights in casualty or condemnation proceeds of a tenant in
respect of the leased premises (“Tenant Claims”), (v) all rents, ground rents, additional
rents, revenues, termination and similar payments, issues and profits (including all oil and gas or
other mineral royalties and bonuses) from the Property (collectively with the Lease Guaranties,
Tenant Security Deposits, Bankruptcy Claims and Tenant Claims, “Rents”), whether paid or
accruing before or after the filing by or against Borrower of any petition for relief under the
Bankruptcy Code, (vi) all proceeds or streams of payment from the sale or other disposition of the
Leases or disposition of any Rents, and (vii) the right to receive and apply the Rents to the
payment of the Debt and to do all other things which Borrower or a lessor is or may become entitled
to do under the Leases or with respect to the Rents;

          (g) Condemnation Awards. All awards or payments, including interest thereon, which
may heretofore and hereafter be made with respect to the Property, whether from the exercise of the
right of eminent domain (including, without limitation, any transfer made in lieu of or in
anticipation of the exercise of the right), or for a change of grade, or for any other injury to or
decrease in the value of the Property, subject, however, to the express terms of the Loan Agreement
relating thereto;

          (h) Insurance Proceeds. All proceeds of, and any unearned premiums on, any insurance
policies covering the Property, including, without limitation, the exclusive right to receive and
apply the proceeds of any claim awards, judgments, or settlements made in lieu thereof, for damage
to the Property, subject, however, to the express terms of the respective Loan Agreements relating
thereto;

          (i) Tax Certiorari. All refunds, rebates or credits in connection with a reduction in
Taxes, including, without limitation, rebates as a result of tax certiorari or any other
applications or proceedings for reduction;

          (j) Agreements. Subject to the express terms of the respective Loan Agreements, all
agreements (including, without limitation, interest rate cap agreements, swaps or other interest
hedging agreements), contracts (including, without limitation, service, supply and maintenance
contracts), registrations, permits, licenses (including, without limitation, liquor licenses, if
any, to the fullest extent assignable by Borrower), franchise, plans, specifications and other
documents, now or hereafter entered into, and all rights therein and thereto, respecting or

-4-

 

pertaining to the use, occupation, construction, management or operation of the Property, or
respecting any business or activity conducted from the Property, and all right, title and interest
of Borrower therein and thereunder, including, without limitation, the right, while an Event of
Default remains uncured, to receive and collect any sums payable to Borrower thereunder
(collectively, the “Operating Agreements”);

          (k) Intangibles. All accounts, escrows, chattel paper, claims, deposits, trade names,
trademarks, service marks, logos, copyrights, goodwill, books and records and all other general
intangibles relating to or used in connection with the operation of the Property;

          (l) Accounts. All reserves, escrows and deposit accounts maintained by Borrower with
respect to the Property (including, without limitation, all reserves, escrows, deposit accounts and
lockbox accounts established pursuant to the respective Loan Agreements), together with all cash,
checks, drafts, certificates, securities, investment property, financial assets, instruments and
other property from time to time held therein, and all proceeds, products, distributions, dividends
or substitutions thereon or thereof;

          (m) Rights to Conduct Legal Actions. The right, in the name and on behalf of
Borrower, to commence any action or proceeding to protect the interest of Lender in the Property
and to appear in and defend any action or proceeding brought with respect to the Property;

          (n) Proceeds. All proceeds and profits arising from the conversion, voluntary or
involuntary, of any of the foregoing into cash (whether made in one payment or a stream of
payments) and any liquidation claims applicable thereto;

          (o) Condominium Documents. Subject to the terms of Section 2.03(b) hereof, all rights,
remedies and powers of Borrower under the Condominium Documents, including, without limitation, any
rights to appoint members of the Condominium Board and any rights to exercise voting rights or
privileges; and

          (p) Rights. Any and all other rights of Borrower in and to the items set forth in the
foregoing subsections (a) through (o), inclusive, and in and to the Property.

          TO HAVE AND TO HOLD the above granted and described Property unto Lender, and its successors
and assigns, with power of sale in accordance with the terms and conditions hereof, forever;
subject, however, to Section 2.05 below.

          Section 2.02 Grant of Security Interest; Security Agreement. Borrower hereby grants
to Lender, as security for the Obligations, a security interest in the Property to the fullest
extent that the Property now or hereafter may be subject to a security interest under the UCC.
Borrower intends for this Security Instrument to be a “security agreement” within the meaning of
the UCC. Borrower hereby irrevocably authorizes Lender to prepare, execute and file all initial
financing statements, and any restatements, extensions, continuations, renewals or amendments
thereof, in such form as Lender may require to perfect or continue the perfection of this security
interest or other statutory liens held by Lender. Unless prohibited by applicable law, Borrower
agrees to pay all reasonable expenses incident to the preparation, execution, filing and/or
recording of any of the foregoing. With respect to any of the Property in which a security
interest is not perfected by the filing of a financing statement, Borrower consents and agrees to
undertake, and to cooperate fully with Lender, to perfect the security interest hereby granted to

-5-

 

Lender in the Property. Without limiting the foregoing, if and to the extent any of the
Property is held by a bailee for the benefit of Borrower, Borrower shall promptly notify Lender
thereof and, if required by Lender, promptly obtain an acknowledgment from such bailee that is
satisfactory to Lender and confirms that such bailee holds the Property for the benefit of Lender
as secured party and shall only act upon instructions from Lender with respect to the Property.

          Section 2.03 Assignment of Leases and Rents.

          (a) Rights Granted to Lender. Borrower hereby absolutely and unconditionally assigns
to Lender all of Borrower’s right, title and interest in and to all current and future Leases and
Rents and the Condominium Documents (including, without limitation, any rights to appoint members
of the Condominium Board and any rights to exercise voting rights or privileges). Borrower hereby
declares its intention to establish a present, absolute and irrevocable transfer and assignment to
Lender of all Rents and Leases and the Condominium Documents and to authorize and empower Lender to
collect and receive all Rents and exercise all of Borrower’s rights under the Leases (including,
without limitation, the right to modify, extend or terminate any Lease) and the Condominium
Documents (including, without limitation, any rights to appoint members of the Condominium Board
and any rights to exercise voting rights or privileges) without any further action by Borrower; it
being intended that this assignment is effective immediately and not an assignment made for
security only, not withstanding any provision hereof to the contrary. For purposes of giving
effect to this assignment of Rents and Leases and the Condominium Documents and for no other
purpose, Rents and Leases and the Condominium Documents shall not be deemed to be part of the
“Property” as that term is defined in Section 2.01 of this Security Instrument. If, however, this
assignment of Rents and Leases and the Condominium Documents is not enforceable by its terms under
the laws of the State where the Property is located, then Rents and Leases and the Condominium
Documents shall be included as part of the Property and it is Borrower’s intention that, in this
circumstance, this Security Instrument creates and perfects a lien of the Rents and Leases and the
Condominium Documents in favor of Lender, which lien shall be effective as of the date of this
Security Instrument.

          (b) License to Borrower; Revocation. Nevertheless, subject to the terms of this
Security Instrument, the respective Loan Agreements and the Lockbox Agreement, Lender grants to
Borrower a revocable license (i) to manage the leasing activities of the Property as contemplated
by the respective Loan Agreements, (ii) to exercise all of Borrower’s rights under the Leases and
the Condominium Documents (including, without limitation, any rights to appoint members of the
Condominium Board and any rights to exercise voting rights or privileges) and (iii) to collect and
receive the Rents in trust for Lender and to apply the Rents to discharge all current amounts due
on the Debt and to pay the current costs of managing, operating and maintaining the Property. As
long as no Event of Default has occurred and is continuing and subject to the provisions of the
Lockbox Agreement, the Rents remaining after application pursuant to the preceding sentence may be
retained by Borrower free and clear of, and released from, Lender’s rights with respect to Rents
under this Security Instrument. Upon and during the continuance of an Event of Default, and
without the necessity of notice or prior demand or Lender’s entering upon and taking and
maintaining control of the Property (whether directly or through a receiver), the license granted
to Borrower by this Section shall terminate automatically, and Lender shall be entitled to receive
and collect the Rents as they become due and payable and exercise all of Borrower’s rights or the
rights of lessor under the Leases and

-6-

 

with respect to the Rents and under the Condominium Documents (including, without limitation,
any rights to appoint members of the Condominium Board and any rights to exercise voting rights or
privileges). Lender’s right to revoke the license granted to Borrower is in addition to all other
rights and remedies available to Lender following an Event of Default.

          Section 2.04 Pledge of Monies Held. Borrower hereby pledges to Lender, as security
for the Obligations, all money now or hereafter held by Lender in escrow or reserve or on deposit
pursuant to the terms hereof or pursuant to the respective Loan Agreements or any other Loan
Document, until expended or applied as provided in this Security Instrument or such other Loan
Document.

          Section 2.05 Release of Security. The grants, mortgage, liens, security interests,
assignments, pledges and transfers by this Security Instrument are subject to the express condition
that, if Borrower pays to Lender the Debt at the time and in the manner provided in the respective
Loan Agreements and performs all Obligations when and as required by the Loan Agreements and each
other Loan Document, Lender shall release the Property from the grants, mortgage, liens, security
interests, assignments, pledges and transfers created by this Security Instrument and reconvey the
Property to Borrower. Lender shall prepare (at Borrower’s expense) and deliver to Borrower such
documents as are necessary to effect such release and reconveyance.

ARTICLE III

DEBT AND OBLIGATIONS SECURED

          Section 3.01 Debt. This Security Instrument and the interests created in favor of
Lender hereunder are given for the purpose of securing (a) payment of principal, interest and all
other amounts due at anytime under the Loan Agreements, the Notes and each of the other Loan
Documents, including, without limitation, interest at the Default Rate, any late fee for delinquent
payments, Prohibited Prepayment Fee, the Prepayment Fee and the Exit Fee (if any) provided in the
respective Loan Agreements, and amounts advanced by Lender to protect and preserve the Property and
the Liens hereby created for the benefit of Lender (collectively “Debt”), and (b)
performance of all obligations of Borrower contained in the Loan Agreements, the Notes and each of
the other Loan Documents (collectively with the Debt, the “Obligations”). Notwithstanding
any provision of this Security Instrument to the contrary, the obligations of Borrower and the
other indemnitors under any “Environmental Indemnity” (as defined in the respective Loan
Agreements) shall not be deemed secured by this Security Instrument unless and until Lender
expressly declares in writing such obligations to be secured hereby.

ARTICLE IV

BORROWER COVENANTS

          Section 4.01 Payment of Debt and Performance of Obligations. Borrower will pay the
Debt at the time and in the manner provided in the Loan Documents and fully and punctually perform
the Obligations when and as required by the Loan Documents. Borrower may not prepay the Debt
except in strict accordance with the respective Loan Agreements.

-7-

 

          Section 4.02 Compliance with Loan Agreements. Borrower shall comply with all
covenants and agreements in the respective Loan Agreements, including, without limitation, all
obligations regarding the ownership, operation, management and condition of the Property and the
protection and perfection of the Liens hereby created in favor of Lender. Without limiting the
foregoing, Borrower agrees:

          (a) No Transfers of the Property or Interests in Borrower. Borrower shall not cause
or permit any Transfer of the legal or beneficial ownership of the Property, Borrower or SPE Equity
Owner in violation of the respective Loan Agreements.

          (b) Payment of Taxes and Other Lienable Charges. Borrower shall pay all Taxes
assessed or imposed against the Property when and as required by the respective Loan Agreements.

          (c) Insurance. Borrower shall obtain and maintain, in full force and effect at all
times, all insurance with respect to Borrower and the Property as required by the respective Loan
Agreements.

          (d) Obligations upon Condemnation or Casualty. Borrower shall comply with all
obligations required under the respective Loan Agreements in the event any of the Property is
damaged by a Casualty or becomes involved in any Condemnation. All proceeds or awards recovered or
payable to Borrower as a result of a Casualty or Condemnation shall be paid to, and administered by
Lender, in accordance with the respective Loan Agreements.

          (e) Leases and Rents. Borrower shall not enter into any Leases for all or any portion
of the Property unless in accordance with the respective Loan Agreements.

          Section 4.03 Warranty of Title. Borrower has good, marketable and insurable fee
simple title of record to the Property, free and clear of all liens, encumbrances and charges
whatsoever except for the Permitted Encumbrances. Borrower shall forever warrant, defend and
preserve the title and the validity and priority of the lien of this Security Instrument and shall
forever warrant and defend the same to Lender against the claims of all Persons whomsoever until
payment in full of the Debt.

ARTICLE V

SUBROGATION

          Section 5.01 Subrogation. If any Loan is used to pay, satisfy, discharge, extend or
renew any indebtedness secured by a pre-existing mortgage, or other lien encumbering any of the
Property (“Prior Lien”), then to the extent of funds so used, Lender shall automatically,
and without further action on its part, be subrogated to all rights, including lien priority, held
by the holder of the indebtedness secured by the Prior Lien, whether or not the Prior Lien is
released, and such former rights are not waived but rather are continued in full force and effect
in favor of Lender and are merged with the lien and security interest created herein as cumulative
security for payment of the Debt and performance of the Obligations.

-8-

 

ARTICLE VI

DEFAULT

          Section 6.01 Events of Default. The occurrence of an “Event of Default” as that term
is defined under any of the Loan Agreements shall constitute an “Event of Default” under
this Security Instrument, and any Event of Default under any Loan Agreement shall constitute an
Event of Default under the other Loan Agreements.

          Section 6.02 Remedies. If an Event of Default occurs, Lender may, at its option, and
without prior notice or demand, exercise and hereby is authorized and empowered by Borrower so to
exercise, any or all of the remedies set forth in the respective Loan Agreements (including,
without limitation, the right to accelerate any or all of the Loans) or otherwise permitted by law
or in equity.

          Section 6.03 Cumulative Remedies; No Waiver; Other Security. Lender’s remedies under
this Security Instrument are cumulative with the remedies provided in the other Loan Documents, by
law or in equity and may be exercised independently, concurrently or successively in Lender’s sole
discretion and as often as occasion therefore shall arise. Lender’s delay or failure to accelerate
any of the Loans or exercise any other remedy upon the occurrence of an Event of Default shall not
be deemed a waiver of such right as remedy. No partial exercise by Lender of any right or remedy
will preclude further exercise thereof. Notice or demand given to Borrower in any instance will
not entitle Borrower to notice or demand in similar or other circumstances nor constitute Lender’s
waiver of its right to take any future action in any circumstance without notice or demand (except
where expressly required by this Security Instrument to be given). Lender may release other
security for the Debt, may release any party liable for the Debt, may grant extensions, renewals or
forbearances with respect thereto, may accept a partial or past due payment or grant other
indulgences, or may apply any other security held by it to payment of the Debt, in each case
without prejudice to its rights under this Security Instrument and without such action being deemed
an accord and satisfaction or a reinstatement of the Debt. Lender will not be deemed as a
consequence of its delay or failure to act, or any forbearances granted, to have waived or be
estopped from exercising any of its rights or remedies.

          Section 6.04 Enforcement Costs. Borrower shall pay, on written demand by Lender, all
costs actually incurred by Lender in (a) collecting any amount payable under the Loan Documents, or
(b) enforcing its rights under the Loan Documents, in each case whether or not legal proceedings
are commenced. Such fees and expenses include, without limitation, reasonable fees for attorneys,
paralegals, law clerks and other hired professionals, a reasonable assessment of the cost of
services performed by Lender’s default management staff, court fees, costs incurred in connection
with pre-trial, trial and appellate level proceedings, including discovery, and costs incurred in
post-judgment collection efforts or in any bankruptcy proceeding. Amounts incurred by Lender shall
be added to the Debt, shall be immediately due and payable, and shall bear interest at the Default
Rate from the date of disbursement until paid in full, if not paid in full within ten (10) business
days after Lender’s written demand for payment.

-9-

 

          Section 6.05 Application of Proceeds. The proceeds from disposition of any of the
Property shall be applied by Lender to the payment of the Debt (including, without limitation,
advances made by Lender and enforcement costs incurred by Lender) in such priority and proportion
as Lender determines in its sole discretion.

          Section 6.06 Continuing Lien; Right to Release Property. If less than all of the
Property is, at any time, sold through foreclosure, power of sale, or otherwise, or if Lender
releases any portion of the Property (for whatever consideration Lender deems appropriate), this
Security Instrument shall continue as a lien and security interest on the remaining portion of the
Property, unimpaired and without loss of priority.

          Section 6.07 LIMITATION ON PERSONAL LIABILITY. NOTWITHSTANDING ANY PROVISION HEREOF
TO THE CONTRARY, BORROWER’S PERSONAL LIABILITY FOR PAYMENT OF THE DEBT AND PERFORMANCE OF THE
OBLIGATIONS IS LIMITED HEREUNDER IN THE SAME MANNER AND TO THE SAME EXTENT AS EXPRESSLY PROVIDED IN
THE RESPECTIVE LOAN AGREEMENTS.

ARTICLE VII

WAIVER OF RIGHT OF REDEMPTION AND OTHER RIGHTS

          Section 7.01 Waiver of Rights of Redemption, Marshalling and Other Rights. Borrower
hereby waives, to the fullest extent permitted by law, the benefit of all laws, now or hereafter in
force, providing for (a) the valuation or appraisement of the Property, or any party thereof, prior
to any sale or sales thereof pursuant to this Security Instrument or any decree, judgment or order
of a court of competent jurisdiction; (b) the right to stay or extend any such proceeding, to have
this Security Instrument reinstated or to redeem the Property or any portion thereof so sold; (c)
rights of marshalling relating to any such sale or sales; (d) any right to require that the
Property be sold as separate tracts or units in connection with enforcement of this Security
Instrument; and (e) the benefit of any moratorium, exemption or homestead rights now or hereafter
provided. Borrower makes such waivers on its own behalf and on behalf of all parties now or
hereafter claiming or having an interest (direct or indirect) by, through or under Borrower.

          Section 7.02 Waiver of Counterclaim. Borrower hereby waives, to the fullest extent
permitted by law, the right to assert a counterclaim, other than a mandatory or compulsory
counterclaim, in any action or proceeding brought against it by Lender arising out of, or in any
way connected with, the Obligations.

          Section 7.03 Waiver of Foreclosure Defense. Borrower hereby waives, to the fullest
extent permitted by law, any defense Borrower might have by reason of Lender’s failure to make any
tenant or tenant of the Property a party defendant in any foreclosure instituted by Lender.

          Section 7.04 Waiver of Notices Generally. Borrower hereby waives, to the fullest
extent permitted by law, its rights to notice from Lender except when this Security Instrument or
the other Loan Documents expressly provides for Lender to give notice to Borrower.

-10-

 

          Section 7.05 Waiver of Statute of Limitations and Laches. Borrower hereby waives, to
the fullest extent permitted by law, the benefit of any statute of limitations or laches defense to
payment of the Debt or performance of the Obligations.

          Section 7.06 WAIVER OF TRIAL BY JURY. BORROWER WAIVES ITS RIGHT, TO THE FULLEST
EXTENT PERMITTED BY LAW, AND AGREES NOT TO ELECT, A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING
OUT OF THIS SECURITY INSTRUMENT OR THE RELATIONSHIP BETWEEN THE PARTIES AS BORROWER AND LENDER.

          Section 7.07 Governing Law. This Security Instrument shall be interpreted and
enforced according to the laws of the State of Florida (without giving effect to rules regarding
conflict of laws) with respect to the Florida Property. This Security Instrument shall be
interpreted and enforced according to the laws of the State of South Carolina (without giving
effect to rules regarding conflict of laws) with respect to the South Carolina Property.

          Section 7.08 Consent to Jurisdiction. ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST
LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS SECURITY INSTRUMENT MAY AT LENDER’S OPTION BE
INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO
SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND BORROWER WAIVES ANY OBJECTIONS WHICH IT
MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR
PROCEEDING, AND BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY
SUIT, ACTION OR PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT:

Tarragon Corporation

1775 Broadway, 23rd Floor

New York, New York 10019

Attn: Charles D. Rubenstein, Esq.

          AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS
WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW
YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN
NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE
DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR
PROCEEDING IN THE STATE OF NEW YORK. BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY
CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME
DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE
AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III)
SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO

-11-

 

HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.

ARTICLE VIII

MISCELLANEOUS PROVISIONS

          Section 8.01 Incorporation from Loan Agreements. All provisions of Articles 17 and
18, inclusive, of the respective Loan Agreements are incorporated into this Security Instrument by
this reference, as if fully reproduced herein.

          Section 8.02 Further Acts. Borrower, at Borrower’s expense, agrees to take such
further actions and execute such further documents as Lender reasonably may request to carry out
the intent of this Security Instrument or to establish and protect the rights and remedies created
or intended to be created in favor of Lender hereunder or to protect the value of the Property and
the Liens and security hereby created in favor of Lender. Borrower agrees to pay all filing,
registration or recording fees or taxes, and all expenses incident to the preparation, execution,
acknowledgement or filing/recording of this Security Instrument or any such instrument of further
assurance, except where prohibited by law so to do.

          Section 8.03 No Third Party Beneficiary. Notwithstanding any provision of this
Security Instrument to the contrary, this Security Instrument is not intended by the parties to
create, and shall not create, benefits on behalf of any tenant or other occupant of the Property or
anyone claiming rights through any tenant or other occupant of the Property.

          Section 8.04 No Agency or Partnership. Nothing contained in this Security Instrument
shall constitute Lender as a joint venturer, partner or agent of Borrower, or render Lender liable
for any debts, obligations, acts, omissions, representations, or contracts of Borrower.

ARTICLE IX

LOCAL LAW PROVISIONS

          Section 9.01 Additional Advance Provision. In addition to existing indebtedness, any
future advances made by the then holder of any Note to or for the benefit of Borrower or Borrower’s
permitted successors or assignees, whether such advances are obligatory or are made at the option
of Lender, or otherwise, at any time within twenty (20) years from the date of this Security
Instrument, with interest thereon at the rate agreed upon at the time of each additional loan or
advance, shall be equally secured with and have the same priority as the Debt and be subject to all
of the terms and provisions of this Security Instrument, whether or not such additional loan or
advance is evidenced by a promissory note and whether or not identified by a recital that it is
secured by this Security Instrument; provided that, although the total amount of the indebtedness
that may be secured may decrease to zero from time to time or may increase from time to time, the
aggregate amount of outstanding Debt so secured at any one time shall not exceed the sum of Two
Hundred Fifteen Million Dollars ($215,000,000), plus interest and disbursements made for the
payment of taxes, levies or insurance on the Property with interest on such disbursements. It is
understood and agreed that this future advance provision shall not be

-12-

 

construed to obligate Lender to make any such additional loans or advances. It is further agreed
that any additional note or notes executed and delivered under this future advance provision shall
be included in the words “Notes” or “Debt” wherever either appears in the context of this Security
Instrument or the other Loan Documents. Borrower, for itself and its successors in title and its
successors and permitted assigns, hereby expressly waives and relinquishes any rights granted under
Section 697.04 of the Florida Statutes, or otherwise, to limit the amount of indebtedness that may
be secured by this Security Instrument at any time during the term of this Security Instrument.
Borrower further covenants not to file for record any notice limiting the maximum principal amount
that may be secured by this Security Instrument and agrees that any such notice, if filed, shall be
null and void; and except as hereinafter provided, of no effect. In the event that,
notwithstanding the foregoing covenant, Borrower or its successor in title files for record any
notice limiting the maximum principal amount that may be secured by this Security Instrument in
violation of the foregoing covenant, the Debt shall, at the option of Lender, become immediately
due and payable.

          9.02 Section 501.137 Florida Statutes. Notwithstanding anything to the contrary
contained in this Security Instrument or the other Loan Documents, Lender shall comply with the
requirements of Section 501.137. Florida Statutes, as applicable, with respect to the payment of
Insurance Premiums from the Insurance Premiums Escrow Account to the extent of funds held therein,
if any, so that insurance coverage on the Property does not lapse.

          9.03 Multiple Counties; Multiple States. (a) The Property includes lands lying in
two or more counties in the State of Florida (the “Florida Property”), and this Security
Instrument has been executed in multiple counterparts so that separate original counterparts can be
recorded in each such county, but all of the counterparts together shall constitute one singular
Security Instrument encumbering all of the Florida Property wherever located. In accordance with
Section 702.04 of the Florida Statutes, Borrower agrees that at Lender’s option this Security
Instrument may be foreclosed in any one of said counties as determined by Lender, and all
foreclosure proceedings shall be had in that county as if all the Florida Property lay therein,
except that notice of the foreclosure sale shall be published in every county wherein lies any of
the Florida Property to be sold. After final disposition of the foreclosure suit, the clerk of the
circuit court shall prepare and forward a certified copy of the decree of foreclosure and sale and
of the decree of confirmation of sale to the clerk of the circuit court of every other county
wherein lies any of the Florida Property, to be recorded in the foreign judgment records of each
such other county, and the costs of such copies and of the record thereof shall be taxed as costs
in the foreclosure proceedings.

          (b) In addition to the Florida Property, this Security Instrument also describes and encumbers
lands lying in the State of South Carolina (the “South Carolina Property”), and at its
option Lender may record counterparts of this Security Instrument in the State of South Carolina or
may require Borrower to execute, deliver and record other mortgages, deeds of trust, security deeds
or other security instruments (“Other Security Documents”) as may be appropriate to perfect
Lender’s lien and security interest against such South Carolina Property in accordance with the
laws of the State of South Carolina. To the maximum extent permitted by applicable law, Borrower
waives any and all rights to have the Florida Property or the South Carolina Property marshalled
for the satisfaction of the Obligations, and Borrower hereby agrees that Lender may exercise its
rights and remedies under the Loan Documents, including this Security Instrument and the Other
Security Documents, separately or concurrently or in any

-13-

 

order that Lender may deem appropriate in its sole discretion. Borrower acknowledges and
agrees that the lien of this Security Instrument shall be absolute and unconditional and shall not
in any manner be affected or impaired by any acts or omissions whatsoever of Lender, including
without limitation: (i) any acceptance by Lender of the Other Security Documents or any other
security for or guaranties of the Obligations; (ii) any failure, neglect or omission on the part of
Lender to realize upon or protect any collateral security for the Obligations, including the South
Carolina Property; (iii) any release (except as to the property so released), sale, pledge,
surrender, compromise, settlement, renewal, extension, indulgence, alteration, changing,
modification or disposition of any of the Obligations or any of the collateral security therefor,
including the Other Security Documents; or (iv) the exercise of any rights or remedies available to
Lender under the Other Security Documents or applicable law with respect to the South Carolina
Property, regardless of whether Lender exercises any of its rights and remedies thereunder before,
after or concurrently with the exercise of any of Lender’s rights and remedies under this Security
Instrument and applicable law with respect to the Florida Property.

          (c) Notwithstanding Lender’s option to foreclose this Security Instrument against all of the
Florida Property in one proceeding as set forth hereinabove, Lender is not obligated to exercise
any of its remedies against any portion of the Property in the same proceeding with any other
portion of the Property, and Lender may exercise any available remedies against any or all portions
of the Property separately or together, concurrently or in any order, all as determined by Lender
in its sole discretion. If Lender in its sole discretion chooses to foreclose this Security
Instrument or any Other Security Document against some portions of the Property without then
foreclosing against other portions, then this Security Instrument and the Other Security Documents
shall remain in full force and effect with respect to all portions of the Property as to which
Lender has not yet foreclosed this Security Instrument or such Other Security Documents, all until
the Obligations have been paid in full.

          9.04 Certain Matters Relating to Property Located in the State of South Carolina.
With respect to the South Carolina Property, notwithstanding anything contained herein to the
contrary:

          (a) Compliance with South Carolina Mortgage Foreclosure Law.

     (i) If any provision of this Security Instrument is determined to be inconsistent with
any provisions of the South Carolina Code of Laws (1976) (the “SCCL”) as deal with
Mortgage Foreclosures or the South Carolina Rules of Civil Procedure (the “SCRCP”),
the SCCL and SCRCP shall take precedence over the provisions of this Security Instrument,
but shall not invalidate or render unenforceable any other provisions of this Security
Instrument that can be construed in a manner consistent with the SCCL or SCRCP.

     (ii) Section 4.02(c) shall be amended to add the following sentence at the end of said
paragraph: “Provided, however, that in no instance shall Lender require Borrower to purchase
casualty insurance on the Property in excess of the replacement cost of the Improvements.

     (iii) Pursuant to Section 29-3-50 of the SCCL, this Security Instrument secures future
advances which may be made by Lender, provided that the total amount of

-14-

 

indebtedness secured by the South Carolina Property hereunder may not exceed the
maximum principal amount of Two Hundred Fifteen Million and No/100 Dollars
($215,000,000.00), plus interest thereon, attorney’s fees and court costs, together with
such other advances as may be authorized by law.

     Interest secured under this Security Instrument may include, without limitation,
deferred or capitalized interest to the extent provided in the Note.

     (iv) WAIVER OF APPRAISAL. The laws of South Carolina provide that in any real
estate foreclosure proceeding a defendant against whom a personal judgment is taken or asked
may within thirty days after the sale of the Property apply to the court for an order of
appraisal. The statutory appraisal value as approved by the Court would be substituted for
the high bid and may decrease the amount of any deficiency owing in connection with the
transaction. THE UNDERSIGNED HEREBY WAIVES AND RELINQUISHES THE STATUTORY APPRAISAL
RIGHTS WHICH MEANS THE HIGH BID AT THE JUDICIAL FORECLOSURE SALE WILL BE APPLIED TO THE DEBT
REGARDLESS OF ANY APPRAISED VALUE OF THE PROPERTY.

     (b) Maturity Date. The maturity date of the Loan is the Payment Date occurring in
November 2008.

[Remainder of page is blank; signatures appear on next page.]

-15-

 

          IN WITNESS WHEREOF, the undersigned hereby signs, seals and delivers this Security Instrument.

     WITNESS the due execution hereof as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered in the
presence of these witnesses:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	REFLECTION LAKES TARRAGON, LLC, a	 	 
	 	 	 	 	Florida limited liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
 
	 	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	By:	 	Reflection Lakes Manager, Inc., a	 	 
	 	 	 	 	 	 	Nevada corporation, its manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	WITNESS:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Charles D. Rubenstein
	 	 
	 

Print Name:

	 	 
	 	 	 	 	 	Executive Vice President	 	 

 

 

	 	 	 	 	 
	STATE OF                     

	 	)	 	 
	                                     ) 

	 	SS:

	COUNTY OF                     

	 	)	 	 

     The
foregoing instrument was acknowledged before me this ___ day of                     , 2006
by                                  , the                                 
of                                         , a(n)
                                        , as [manager/managing member] of each of REFLECTION LAKES TARRAGON, LLC, a
Florida limited liability company, on behalf of the companies. S/he is personally known to me or
has produced a                                          as identification.

	 	 	 	 	 	 	 
	 

	 	Notary:	 	 	 	 
	 

	 	 	 	 

	 	 
	[NOTARIAL SEAL]	 	Print Name:	 	 
	 	 	Notary Public, State of                     	 	 

My commission expires:                     

 

 

     WITNESS the due execution hereof as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered in the
presence of these witnesses:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	MADISON AT PARK WEST TARRAGON, LLC, a	 	 
	 	 	 	 	South Carolina limited liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
 
	 	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	By:	 	Madison Tarragon Manager, Inc., a	 	 
	 	 	 	 	 	 	Nevada corporation, its managing member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	WITNESS:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Charles D. Rubenstein
	 	 
	 

Print Name:

	 	 
	 	 	 	 	 	Executive Vice President	 	 

 

 

	 	 	 	 	 
	STATE OF                     

	 	)	 	 
	                                     ) 

	 	SS:

	COUNTY OF                     

	 	)	 	 

          The
foregoing instrument was acknowledged before me this ___ day of                     , 2006
by                                         , the                                         
of                                         , a(n)
                                        , as [manager/managing member] of each of MADISON AT PARK WEST TARRAGON, LLC, a
South Carolina limited liability company, on behalf of the companies. S/he is personally known to
me or has produced a                                          as identification.

	 	 	 	 	 	 	 
	 

	 	Notary:	 	 	 	 
	 

	 	 

	 	 
	[NOTARIAL SEAL]

	 	Print Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Notary Public, State of                     	 	 

My commission expires:                     

 

 

     WITNESS the due execution hereof as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered in the
presence of these witnesses:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	OMNI MONTERRA LLC, a Florida limited	 	 
	 	 	 	 	liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
 
	 	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	By:	 	Monterra Tarragon, Inc., a Nevada	 	 
	 	 	 	 	 	 	corporation, its managing ,member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	WITNESS:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Charles D. Rubenstein
	 	 
	 

Print Name:

	 	 
	 	 	 	 	 	Executive Vice President	 	 

 

 

	 	 	 	 	 
	STATE OF                     

	 	)	 	 
	                                     ) 

	 	SS:

	COUNTY OF                     

	 	)	 	 

          The
foregoing instrument was acknowledged before me this ___ day of                     , 2006
by                                         , the                                         
 of                                         , a(n)
                                        , as [manager/managing member] of each of OMNI MONTERRA LLC, a Florida limited
liability company, on behalf of the companies. S/he is personally known to me or has produced a
                                         as identification.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Notary:  
	 	 
	[NOTARIAL SEAL]

	 	 	 	Print
Name: 

	 	 
	 

	 	 	 	Notary Public, State of
	 	
	 	 
	 

	 	 	 	My commission expires:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

          WITNESS the due execution hereof as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered in the
presence of these witnesses:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	BALLANTRAE TARRAGON LLC, a Florida	 	 
	 	 	 	 	limited liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
 
	 	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	By:	 	Ballantrae Manager, Inc., a Nevada	 	 
	 	 	 	 	 	 	corporation, its managing member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	WITNESS:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Todd C. Minor
	 	 
	 

Print Name:

	 	 
	 	 	 	 	 	Executive Vice President	 	 

 

 

	 	 	 	 	 
	STATE OF                     

	 	)	 	 
	                                     ) 

	 	SS:

	COUNTY OF                     

	 	)	 	 

     The
foregoing instrument was acknowledged before me this ___ day of                     , 2006
by                                         , the                                         
 of                                         , a(n)
                                        , as [manager/managing member] of each of BALLANTRAE TARRAGON LLC, a Florida
limited liability company, on behalf of the companies. S/he is personally known to me or has
produced a                                          as identification.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Notary:  
	 	 
	[NOTARIAL SEAL]

	 	 	 	Print
Name: 

	 	 
	 

	 	 	 	Notary Public, State of
	 	
	 	 
	 

	 	 	 	My commission expires:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

     WITNESS the due execution hereof as of the date first written above.

	 	 	 	 	 	 	 	 	 
	Signed, sealed and
delivered in the
presence of these
witnesses:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	YBOR CITY TARRAGON, LLC, a Delaware limited
liability company
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	By:	 	Tarragon South Development Corp., a Nevada
corporation, its managing member
	 
	 	 	 	 	 	 	 	 
	WITNESS:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Charles D. Rubenstein
	 	 	 	 	 	 	 	 	 
	Print Name:

	 	 	 	 	 	 	 	Executive Vice President

 

 

STATE OF                              )

                                        )          SS:

COUNTY OF                           )

     The foregoing instrument was acknowledged before me this                      day of                                    
     2006
by                                          the                                         
 of                                         , a(n)
                                        , as [manager/managing member] of each of YBOR CITY RARRAGON, LLC, a Delaware
limited liability company, on behalf of the companies. S/he is personally known to me or has
produced a                                          as identification.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Notary:  
	 	 
	[NOTARIAL SEAL]

	 	 	 	Print
Name: 

	 	 
	 

	 	 	 	Notary Public, State of
	 	
	 	 
	 

	 	 	 	My commission expires:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

     WITNESS the due execution hereof as of the date first written above.

	 	 	 	 	 	 	 	 	 
	Signed, sealed and
delivered in the
presence of these
witnesses:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	TARRAGON LUGANO LLC, a Delaware limited liability
company
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	By:	 	Tarragon Corporation, a Nevada corporation,
its sole member and manager
	 
	 	 	 	 	 	 	 	 
	WITNESS:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Charles D. Rubenstein
	 	 	 	 	 	 	 	 	 
	Print Name:

	 	 	 	 	 	 	 	Executive Vice President

 

 

STATE OF                              )

                                        )          SS:

COUNTY OF                           )

     The foregoing instrument was acknowledged before me this                      day of                                    
     , 2006
by                                     , the                                          of                                         , a(n)
                                        , as [manager/managing member] of each of TARRAGON LUGANO LLC, a Delaware
limited liability company, on behalf of the companies. S/he is personally known to me or has
produced a                                          as identification.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Notary:  
	 	 
	[NOTARIAL SEAL]

	 	 	 	Print
Name: 

	 	 
	 

	 	 	 	Notary Public, State of
	 	
	 	 
	 

	 	 	 	My commission expires:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

LENDER:

	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered in the
presence of these witnesses:	 	 	 	BARCLAYS CAPITAL REAL ESTATE INC., a Delaware corporation
	 
	 	 	 	 	 	 	 	 
	Witness:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	Print Name:	 	 	 	 	 	Name:
	Witness:

	 	 	 	 	 	 	 	Title:
	 

	 	 

	 	 	 	 	 	 
	Print Name:	 	 	 	 	 	[CORPORATE SEAL]

STATE OF                              )

                                        )          SS:

COUNTY OF                           )

     The foregoing instrument was acknowledged before me this                      day of                                    
     , 2006 by
                                    as                                         
of BARCLAYS CAPITAL REAL ESTATE INC., a Delaware
corporation, on behalf of the corporation. S/he personally appeared before me and is personally
known to me or produced                                          as identification and did not take an oath.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Notary:  
	 	 
	[NOTARIAL SEAL]

	 	 	 	Print
Name: 

	 	 
	 

	 	 	 	Notary Public, State of
	 	
	 	 
	 

	 	 	 	My commission expires:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

EXHIBIT A-1

LEGAL DESCRIPTION

PALM BEACH COUNTY, FLORIDA

“VIA LUGANO”

OWNER & MORTGAGOR: TARRAGON LUGANO LLC

 

 

EXHIBIT A-2

LEGAL DESCRIPTION

SEMINOLE COUNTY, FLORIDA:

“BALLANTRAE”

OWNER & MORTGAGOR: BALLANTRAE TARRAGON LLC

 

 

EXHIBIT A-3

LEGAL DESCRIPTION

LEE COUNTY, FLORIDA

“PROMENADA”

OWNER & MORTGAGOR: REFLECTION LAKES TARRAGON, LLC

 

 

EXHIBIT A-4

LEGAL DESCRIPTION

LEE COUNTY, FLORIDA

“MONTERRA”

OWNER & MORTGAGOR: OMNI MONTERRA LLC

 

 

EXHIBIT A-5

LEGAL DESCRIPTION

HILLSBOROUGH COUNTY, FLORIDA

“QUARTER YBOR”

OWNER & MORTGAGOR: YBOR CITY TARRAGON, LLC

 

 

EXHIBIT A-6

LEGAL DESCRIPTION

CHARLESTON COUNTY, SOUTH CAROLINA

“CARRINGTON”

OWNER & MORTGAGOR: MADISON AT PARK WEST TARRAGON, LLC

 

 

	 	 	 
	PREPARED BY AND UPON RECORDATION 

RETURN TO:
	 	 
	 
	 	 
	David S. Hall, Esq.
	 	 
	Thacher Proffitt & Wood llp
	 	 
	2 World Financial Center
	 	 
	New York, New York 10281
	 	 
	 
	 	 
	 

	 	SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE ONLY

TARRAGON LUGANO LLC,

BALLANTRAE TARRAGON LLC,

REFLECTION LAKES TARRAGON, LLC,

OMNI MONTERRA LLC,

YBOR CITY TARRAGON, LLC, and

MADISON AT PARK WEST TARRAGON, LLC

Collectively as mortgagors

to

BARCLAYS CAPITAL REAL ESTATE INC.,

as mortgagee

AMENDED AND RESTATED

MORTGAGE, ASSIGNMENT OF LEASES AND RENTS,

SECURITY AGREEMENT AND  FIXTURE FILING

 

Dated: October 10, 2006

NOTICE TO RECORDER: All Florida documentary stamp taxes and nonrecurring intangible personal
property taxes due with respect to the consolidated mortgages being amended and restated hereby
were previously paid upon the recordation of the original mortgages identified in Exhibit B of that
certain Mortgage Consolidation and Spreader Agreement of even date herewith made by the same
parties and recorded in the Public Records of this County, Florida as set forth on page 1 of this
Security Instrument. This Security Instrument is exempt from further intangible taxes because it
evidences a refinancing pursuant to Section 199.145(4) of the Florida Statutes, and this Security
Instrument is exempt from further documentary stamp taxes because it is a renewal that is exempt
from stamp tax pursuant to Section 201.09 of the Florida Statutes.

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