Document:

ex1020-10ka2007.htm

    
 

    Exhibit
10.20

    Cooper
Cameron

    

    INDEMNITY AND GUARANTY
AGREEMENT

    

    THIS INDEMNITY AND GUARANTY AGREEMENT
(this "Agreement"),
executed this 18th day of
November, 2002 and effective as of the 19th day of November, 2002, by BELTWAY
ASSETS HOLDINGS LLC, a Delaware limited liability company (the "Indemnitor"), having an
office at c/o 5847 San Felipe Drive, Suite 2600, Houston, Texas 77057, in favor
of LEGG MASON REAL ESTATE SERVICES, INC., a Pennsylvania corporation (together
with any subsequent holder of the hereinafter defined Note, the "Lender"), having an address
at 100 Light Street, 32nd Floor, Baltimore, Maryland 21202.

    

    WITNESSETH:

    

    WHEREAS,
Beltway Assets LLC, a Delaware limited liability company (the "Borrower"), has obtained a
loan in the principal amount of THIRTY-ONE MILLION NINETEEN THOUSAND TWO HUNDRED
FIFTY DOLLARS AND NO/100 CENTS ($31,019,250.00) (the "Loan") from Lender pursuant
to a Loan Agreement, dated as of November 19, 2002, between Borrower and Lender
(the "Loan Agreement");
and

    

    WHEREAS,
capitalized terms used in this Agreement and not otherwise defined in the body
of this Agreement have the meaning ascribed to such terms in Appendix A to the
Loan Agreement, and the rules of construction set forth in Appendix A apply
hereto; and

    

    WHEREAS,
as a condition to making the Loan to Borrower, Lender has required that
Indemnitor indemnify Lender from and against, and guarantee to pay to Lender,
those items for which Borrower is personally liable and for which Lender has
recourse against Borrower under Section 12.13 of the Loan Agreement;
and

    

    WHEREAS,
Indemnitor is an affiliate of Borrower, the extension of the Loan to Borrower is
of substantial benefit to Indemnitor and, therefore, Indemnitor desires to
indemnify Lender from and against and guaranty to pay to Lender those items for
which Borrower is personally liable and for which Lender has recourse against
Borrower under Section 12.13 of the Loan Agreement.

    

    NOW,
THEREFORE, to induce Lender to extend the Loan to Borrower and in consideration
of the foregoing premises and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound hereby, Indemnitor agrees for the benefit of Lender, as
follows:

    

    A.            Indemnity and
Guaranty.,

    

    1.           
Indemnitor hereby assumes liability for, hereby guarantees to pay to Lender,
hereby agrees to pay, protect, defend absolutely and unconditionally and save
the Indemnified Parties harmless from and against, and hereby indemnifies the
Indemnified Parties from and against any Indemnified Liabilities which may at
any time be imposed upon, incurred by or awarded against the Indemnified Parties
as a result of the occurrence of any one or more of the following (collectively,
the "Recourse
Obligations"):

    

    (i)            Borrower's
failure to account for Tenant's security deposits, if any, for Rent or any other
payment collected by Borrower from Tenant under the Lease, all in accordance
with the provisions of the Loan Documents;

    

    (ii)            after
an uncured Event of Default, Borrower's failure to apply 100% of the Basic Rent
and Additional Rent (other than Excepted Rights and Payments), received by
Borrower to repay the Debt;

    
      
         

      

      
        
          

        

      

       

    

    (iii)           fraud
or a material misrepresentation made by Borrower, Indemnitor, or the holders of
beneficial or ownership interests in Borrower, in connection with the financing
evidenced by the Loan Documents;

    

    (iv)           any
attempt by Borrower or Indemnitor to divert or otherwise cause to be diverted
any amounts payable to Lender or Servicer for in accordance with the Loan
Documents;

    

    (v)            the
misappropriation or misapplication of any insurance proceeds or Condemnation
awards relating to the Mortgaged Property;

    

    (vi)            Borrower's
failure to maintain its existence as a special purpose, "bankruptcy remote"
entity, in good standing, as required by Article 6 of the Loan
Agreement;

    

    (vii)            a
Transfer in violation of Section 5.02 of the Loan Agreement; or

    

    (viii)            any
environmental matter(s) affecting the Mortgaged Property which is introduced or
caused by Borrower, Indemnitor or any beneficial owner of Borrower.

    

    2.            
Indemnitor hereby assumes liability for, hereby guarantees to pay to Lender,
hereby agrees to pay, protect, defend and save the Indemnified Parties harmless
from and against, and hereby indemnifies the Indemnified Parties from and
against any and all Indemnified Liabilities including, increased or additional
tax liability, damages arising under state, federal, ERISA or tax law or
regulation which may at any time be imposed upon, incurred by or awarded against
the Indemnified Parties as a result of the occurrence of any action whatsoever
taken by the Borrower or any beneficial owner or member of Borrower, including,
any amendment, modification, revision or alteration to any of the Loan
Documents, or, only to the extent requested by either the Borrower or any
beneficial owner or member of Borrower, any trust agreement entered into by the
Lender or its successors and assigns with respect to the Loan or the
certificates issued thereunder, which alter, affect, change or modify the tax
treatment, tax characterization, state law characterization, or in any other way
alter, affect, change or modify the nature of the trust so created (as defined
in the above-mentioned trust agreement or the certificates) including, taxes
imposed on the trustee thereof as a result of such trustee not being treated as
a grantor trust for federal income tax purposes, to the extent such taxes exceed
the amount that would be otherwise payable by to a lender if the trust were
treated as a grantor trust.

    

    IMPORTANT - READ
THIS

    

    INDEMNITOR
ACKNOWLEDGES THAT PURSUANT TO THE FOREGOING INDEMNITY IT HAS AGREED TO INDEMNIFY
AND HOLD HARMLESS THE INDEMNIFIED PARTIES FROM AND AGAINST ANY AND ALL
LIABILITIES ARISING BY REASON OF THE ACTS OR OMISSIONS OF ANY OF THE INDEMNIFIED
PARTIES AND OTHERWISE, WHICH LIABILITIES INCLUDE, WITHOUT LIMITATION, EXCEPT AS
PROVIDED ABOVE, SOLE NEGLIGENCE, CONCURRENT NEGLIGENCE, STRICT LIABILITY,
CRIMINAL LIABILITY, STATUTORY LIABILITY, LIABILITY FOR INJURIES NOT COMPENSATED
BY WORKERS' COMPENSATION INSURANCE, OTHER INJURIES OR LOSSES NOT COVERED BY
INSURANCE AND LIABILITY ARISING AS A RESULT OF WAIVERS, EXCULPATIONS,
DISCLAIMERS OR RELEASES. IF SUCH LIABILITY ARISES BY REASON OF THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF AN INDEMNIFIED PARTY (OR INDEMNIFIED
PARTIES, AS THE CASE MAY BE) (HEREINAFTER A "RESPONSIBLE INDEMNIFIED PARTY")
THIS INDEMNITY SHALL NOT EXTEND TO ANY SUCH RESPONSIBLE INDEMNIFIED PARTY, BUT
SHALL EXTEND TO ALL OTHER INDEMNIFIED PARTIES.

    

    3.           This
is a guaranty of payment and performance and not of collection. Indemnitor's
liability under this Agreement is direct and immediate and not conditional or
contingent upon the pursuit of any remedies against Borrower or any other person
(including, other guarantors, if any), nor against the collateral for the Loan.
Indemnitor waives any right to require that an action be brought against
Borrower or any other person or to require that resort be had to any collateral
for the Loan or to any balance of any deposit account or credit on the books of
Lender in favor of Borrower or any other person. If, on account of the
Bankruptcy Code, or any other debtor relief law (whether statutory, common law,
case law or otherwise) of any jurisdiction whatsoever, now or hereafter in
effect, which may be or become applicable, Borrower is relieved of the Recourse
Obligations, Indemnitor will nevertheless be fully liable therefor. If an Event
of Default exists, Lender may enforce its rights, powers and remedies
(including, foreclosure of all or any portion of the collateral for the Loan)
thereunder or hereunder, in any order, and all rights, powers and remedies
available to Lender in such event are non-exclusive and cumulative of all other
rights, powers and remedies provided thereunder or hereunder or by law or in
equity. If the indebtedness and obligations guaranteed hereby are partially paid
or discharged by reason of the exercise of any of the remedies available to
Lender, this Agreement will nevertheless remain in full force and effect, and
Indemnitor shall remain liable for all remaining indebtedness and obligations
guaranteed hereby, even though any rights which Indemnitor may have against
Borrower may be destroyed or diminished by the exercise of any such
remedy.

    

    B.           Indemnification
Procedures.

    

    1.           If
any action is brought against any Indemnified Party based upon any of the
matters for which such Indemnified Party is indemnified hereunder, such
Indemnified Party will notify Indemnitor in writing thereof and Indemnitor will
promptly assume the defense' thereof, including, the employment of counsel by
Indemnitor which is reasonably acceptable to such Indemnified Party and the
negotiation of any settlement; provided, however, that any
failure of such Indemnified Party to notify Indemnitor of such matter will not
impair or reduce the obligations of Indemnitor hereunder after such notice. Any
Indemnified Party may, at Indemnitor's expense (which expense will be included
in Indemnified Liabilities), employ separate counsel (provided that a conflict
of interest exists that would preclude the Indemnitor's counsel from
representing any such Indemnified Party) in any such action and participate in
the defense thereof. If after delivery of timely notice from an Indemnified
Party, the Indemnitor fails to discharge or undertake to defend any such
Indemnified Party against any Indemnified Liabilities for which such Indemnified
Party is indemnified hereunder, such Indemnified Party may, at its sole option
and election, defend or settle such Indemnified Liabilities. The liability of
Indenmitor to any Indemnified Party hereunder shall be conclusively established
by such settlement, provided such settlement is made in good faith, the amount
of such liability to include both the settlement consideration and the costs and
expenses, including, reasonable attorneys' fees and disbursements, incurred by
such Indemnified Party in effecting such settlement. In such event, such
settlement consideration, costs and expenses shall be included in Indemnified
Liabilities and Indemnitor shall pay the same as hereinafter provided. Such
Indemnified Party's good faith in any such settlement will be conclusively
established if the settlement is made on the advice of independent legal counsel
for such Indemnified Party.

    

    2.           Indemmitor
shall not, without the prior written consent of any Indemnified Party: (i)
settle or compromise any action, suit, proceeding or claim or consent to the
entry of any judgment that does not include as an unconditional term thereof the
delivery by the claimant or plaintiff to such Indemnified Party of a full and
complete written release of such Indemnified Party (in form, scope and substance
satisfactory to such Indemnified Party in its sole discretion) from all
liability in respect of such action, suit, proceeding or claim and a dismissal
with prejudice of such action, suit, proceeding or claim; or (ii) settle or
compromise any action, suit, proceeding or claim in any manner that may
adversely affect such Indemnified Party or obligate such Indemnified Party to
pay any sum or perform any obligation.

    

    3.           All
Indemnified Liabilities are immediately reimbursable to any Indemnified Party
when and as incurred and, in the event of any litigation, claim or other
proceeding, without any requirement of waiting for the ultimate outcome of such
litigation, claim or other proceeding, and Indemnitor shall pay to such
Indemnified Party any and all Indemnified Liabilities within thirty (30) days
after written notice from such Indemnified Party itemizing and providing
documentation to support the amounts thereof incurred to the date of such
notice. In addition to any other remedy available for the failure of Indemnitor
to periodically pay such Indemnified Liabilities, such Indemnified Liabilities,
if not paid within said thirty-day period, shall bear interest at the Default
Rate if, and to the extent and from the date that, Indemnified Party has paid or
caused the payment of such Indemnified Liabilities.

    

    C.           Reinstatement of
Obligations. If at any time all or any part of any payment made by
Indemnitor or received by any Indemnified Party from Indemnitor under or with
respect to this Agreement is or must be rescinded or returned for any reason
whatsoever (including, the insolvency, bankruptcy or reorganization of
Indemnitor or Borrower), then the obligations of Indemnitor hereunder shall, to
the extent of the payment rescinded or returned, be deemed to have continued in
existence, notwithstanding such previous payment made by Indemnitor, or receipt
of payment by such Indemnified Party, and the obligations of Indemnitor
hereunder shall continue to be effective or be reinstated, as the case may be,
as to such payment, all as though such previous payment by Indemnitor had never
been made.

    

    D.           Waivers by
Indemnitor. To the extent permitted by law, Indemnitor hereby waives and
agrees not to assert or take advantage of:

    

    1.           Any
right to require Lender to proceed against Borrower or any other

    person  or
to proceed against or exhaust any security held by Lender at any time or to
pursue any other remedy in Lender's power or under any other agreement before
proceeding against Indemnitor hereunder

    

    2.           The
right to assert a counterclaim, other than a mandatory or compulsive
counterclaim, in any action or proceeding brought against or by
Indemnitor;

    

    3.           Any
defense that may arise by reason of the incapacity, lack of authority, death or
disability of any other person or persons or the failure of Lender to file or
enforce a claim against the estate (in administration, bankruptcy or any other
proceeding) of any other person or persons;

    

    4.           Demand,
presentment for payment, notice of nonpayment, protest, notice of acceptance
hereof, notice of protest and all other notices (other than as may be expressly
herein required) of any kind, or the lack of any thereof, including, without
limiting the generality of the foregoing, notice of the existence, creation or
incurring of any new or additional indebtedness or obligation or of any action
or non-action on the part of Borrower, Lender, any endorser or creditor of
Borrower or of Indemnitor or on the part of any other person whomsoever under
this or any other instrument in connection with any obligation or evidence of
indebtedness held by Lender;

    

    5.           Any
defense based upon an election of remedies by Lender;

    

    6.           Any
right or claim or right to cause a marshalling of the assets of Indemnitor or to
cause Lender to proceed against any of the security for the Loan before
proceeding under this Agreement against Indemnitor;

    

    7.           Any
principle or provision of law, statutory or otherwise, which is or might be in
conflict with the terms and provisions of this Agreement;

    

    8.           Any
duty on the part of Lender to disclose to Indemnitor any facts Lender may now or
hereafter know about Borrower, Tenant, or the Mortgaged Property, regardless of
whether Lender has reason to believe that any such facts materially increase the
risk beyond that which Indemnitor intends to assume or has reason to believe
that such facts are unknown to Indemnitor or has a reasonable opportunity to
communicate such facts to Indemnitor, it being understood and agreed that
Indemnitor is fully responsible for being and keeping informed of the financial
condition of Borrower, Tenant or of the condition of the Mortgaged Property and
of any and all circumstances bearing on the risk that liability may be incurred
by Indemnitor hereunder;

    

    9.           Any
lack of notice of disposition or of manner of disposition of any collateral for
the Loan;

    

    10.           Any
invalidity, irregularity or unenforceability, in whole or in part, of any one or
more of the Loan Documents;

    

    11.           Any
lack of commercial reasonableness in dealing with the collateral for
the
Loan;

    

    12.           Any
deficiencies in the collateral for the Loan or any deficiency in the ability of
Lender to collect or to obtain performance from any persons or entities now or
hereafter liable for the payment and performance of any obligation hereby
guaranteed;

    

    13.           An
assertion or claim that the automatic stay provided by 11 U.S.C. §362 (arising
upon the voluntary or involuntary bankruptcy proceeding of Borrower) or any
other stay provided under any other debtor relief law (whether statutory, common
law, case law or, otherwise) of any jurisdiction whatsoever, now or. hereafter
in effect, which may be or become applicable, shall operate or be interpreted to
stay, interdict, condition, reduce or inhibit the ability of Lender to enforce
any of its rights, whether now or hereafter required, which Lender may have
against Indemnitor or the collateral for the Loan; and

    

    14.           Any
modifications of the Loan Documents or any obligation of Borrower relating to
the Loan by operation of law or by action of any court, whether pursuant to the
Bankruptcy Code, or any other debtor relief law (whether statutory, common law,
case law or otherwise) of any jurisdiction whatsoever, now or hereafter in
effect, or otherwise.

    

    E.           General
Provisions.

    

    1.           Fully Recourse. All
of the terms and provisions of this Agreement are recourse obligations of
Indemnitor and are not restricted by any limitation on personal
liability.

    

    2.           Unsecured
Obligations. Indemnitor hereby acknowledges that Lender's appraisal of
the Mortgaged Property is such that Lender is not willing to accept the
consequences of the inclusion of Indemnitor's indemnity set forth herein among
the obligations secured by the Indenture and the other Loan Documents and that
Lender would not make the Loan but for the unsecured personal liability
undertaken by Indemnitor herein.

    

    3.           Survival. This
Agreement shall be deemed to be continuing in nature and shall remain in full
force and effect and shall survive the exercise of any remedy by Lender under
the Indenture or any of the other Loan Documents, including, without limitation,
any defeasance of the Note or any foreclosure or deed in lieu thereof, even if,
as a part of such remedy, the Loan is paid or satisfied in full but only as to
matters occurring before such defeasance, foreclosure or deed in lieu of
foreclosure, as the case may be; provided, however, that Lender shall not be
entitled to recover against Indemnitor under this Agreement for an amount in
excess of the amount of the Indemnified Liabilities Indemnified
Liabilities.

    

    4.           No Subrogation; No Recourse
Against Lender. Notwithstanding the satisfaction by Indemnitor of any
liability hereunder, Indemnitor shall not have any right of subrogation,
contribution, reimbursement or indemnity whatsoever or any right of recourse to
or with respect to the assets or property of Borrower or to any collateral for
the Loan unless and until Indemnitor fully satisfies the payment of the Loan,
all other amounts due under the Loan Documents, and the Indemnified Liabilities
have been indefeasibly paid in full. In connection with the foregoing,
Indemnitor expressly waives any and all rights of subrogation to Lender against
Borrower (except as expressly provided above), and Indemnitor hereby waives any
rights to enforce any remedy which Lender may have against Borrower and any
right to participate in any collateral for the Loan. In addition to and without
in any way limiting the foregoing, Indemnitor hereby subordinates any and all
indebtedness of Borrower now or hereafter owed to Indemnitor to all indebtedness
of Borrower to Lender, and agrees with Lender that Indemnitor shall not demand
or accept any payment of principal or interest from Borrower, shall not claim
any offset or other reduction of Indemnitor's obligations hereunder because of
any such indebtedness and shall not take any action to obtain any of the
collateral from the Loan. Further, Indemnitor shall not have any right of
recourse against Lender by reason of any action Lender may take or omit to take
under the provisions of this Agreement or under the provisions of any of the
Loan Documents.

    

    5.           Reservation of
Rights. Nothing contained in this Agreement shall prevent or in any way
diminish or interfere with any rights or remedies, including, without
limitation, the right to contribution, which Lender may have against Borrower,
Indemnitor or any other party under the Comprehensive Environmental Response,
Compensation and Liability Act of ' 1980 (codified at Title 42 U.S.C. §9601 et
sect.), as it may be amended from time to time, or any other applicable federal,
state or local laws, all such rights being hereby expressly
reserved.

    

    6.           Financial Statements.
Indemnitor hereby agrees, as a material inducement to Lender to make the Loan to
Borrower, to furnish to Lender promptly upon demand by Lender after an Event of
Default current and dated financial statements detailing the assets and
liabilities of Indemnitor certified by Indemnitor, in form and substance
reasonably acceptable to Lender. Indemnitor hereby warrants and represents unto
Lender that any and all balance sheets, net worth statements and other financial
data which have heretofore been given or may hereafter be given

    to Lender
with respect to Indemnitor did or will as of the effective date thereof fairly
and accurately present the financial condition of Indemnitor.

     

                                   
7.           Rights Cumulative;
Payments. Lender's rights under this Agreement shall be in addition to
all rights of Lender under the Note, the Indenture and the other Loan Documents.
FURTHER, PAYMENTS MADE BY INDEMNITOR UNDER THIS AGREEMENT SHALL NOT REDUCE IN
ANY RESPECT BORROWER'S OBLIGATIONS AND LIABILITIES UNDER THE NOTE, THE INDENTURE
AND THE OTHER LOAN DOCUMENTS.

    

    8.           No Limitation on
Liability. Indemnitor hereby consents and agrees that Lender may at any
time and from time to time without further consent from Indemnitor do any of the
following events, and the liability of Indemnitor under this Agreement shall be
unconditional and absolute and shall in no way be impaired or limited by any of
the following events, whether occurring with or without notice to Indemnitor or
with or without consideration: (i) any extensions of time for performance
required by any of the Loan Documents or extension or renewal of the Note; (ii)
any sale, assignment or foreclosure of the Note, the Indenture or any of the
other Loan Documents or any sale or transfer of the Mortgaged Property; (iii)
any change in the composition of Borrower, including, without limitation, the
withdrawal or removal of the beneficial owner from any current or future
position of ownership, management or control of Borrower; (iv) the accuracy or
inaccuracy of the representations and warranties made by Indemnitor herein or by
Borrower in any of the Loan Documents; (v) the release of Borrower or of any
other person or entity from performance or observance of any of the agreements,
covenants, terms or conditions contained in any of the Loan Documents by
operation of law, Lender's voluntary act or otherwise; (vi) the release or
substitution in whole or in part of any security for the Loan, including without
limitation, the defeasance contemplated by the. Note; (vii) Lender's failure to
record the Indenture or to file any financing statement (or Lender's improper
recording or filing thereof) or to otherwise perfect, protect, secure or insure
any lien or security interest given as security for the Loan; (viii) the
modification of the terms of any one or more of the Loan Documents; or (ix) the
taking or failure to take any action of any type whatsoever. No such action
which Lender shall take or fail to take in connection with the Loan Documents or
any collateral for the Loan, nor any course or dealing with Borrower or any
other person, shall limit, impair or release Indemnitor's obligations hereunder,
affect this Agreement in any way or afford Indemnitor any recourse against
Lender. Nothing contained in this Section shall be construed to require Lender
to take or refrain from taking any action referred to herein. Notwithstanding
the foregoing, if as a result of a Permitted Transfer (as completed in
compliance with the terms and provisions of Section 9 of the Indenture), the
Indemnitor shall no longer be affiliated with any entity which has any interest
in the Mortgaged Property, Indemnitor may offer a substitute indemnitor to
assume any obligations of Indemnitor hereunder arising after the date of the
Transfer in accordance with the terms of the Indenture, upon which assumption
and the satisfaction of all of the conditions contained in the Indenture, the
Indemnitor shall be released as to any obligations arising after such assumption
to the extent specified in the Indenture.

    

    9.           Entire Agreement; Amendment;
Severability. This Agreement contains the entire agreement between the
parties respecting the matters herein set forth and supersedes all prior
agreements, whether written or oral, between the parties respecting such
matters. Any amendments or modifications hereto, in order to be effective, shall
be in writing and executed by the parties hereto. A determination that any
provision of this Agreement is unenforceable or invalid shall not affect the
enforceability or validity of any other provision, and any determination that
the application of any provision of this Agreement to any person or circumstance
is illegal or unenforceable shall not affect the enforceability or validity of
such provision as it may apply to any other persons or
circumstances.

    

    10.           Governing Law; Binding
Effect; Waiver of Acceptance. This Agreement shall be governed by and
construed in accordance with the laws of the State of Texas, except to the
extent that the applicability of any of such laws may now or hereafter be
preempted by Federal law, in which case such Federal law, as appropriate, shall
so govern and be controlling. This Agreement shall bind Indemnitor and the
heirs, personal representatives, successors and assigns of Indemnitor and shall
inure to the benefit of Lender and the officers, directors, shareholders, agents
and employees of Lender and their respective heirs, successors and assigns.
Notwithstanding the foregoing, Indemnitor shall not assign any of its rights or
obligations under this Agreement without the prior written consent of Lender,
which consent may be withheld by Lender in its sole discretion. Indemnitor
hereby waives any acceptance of this Agreement by Lender, and this Agreement
shall immediately be binding upon Indemnitor.

    

    11.           Notice.    All
communications herein provided for or made pursuant hereto shall be in writing
and shall be sent by (i) registered or certified mail, return receipt requested,
and the giving of such communication shall be deemed complete on the third
Business Day (as such term is defined in the Lease) after the same is deposited
in a United States Post Office with postage charges prepaid, (ii) reputable
overnight delivery service with acknowledgment receipt returned, and the giving
of such communication shall be deemed complete on the immediately succeeding
Business Day after the same is timely deposited with such delivery service, or
(iii) hand delivery by reputable delivery service:

    

    If to
Indemnitor:

    

    Beltway
Assets Holdings LLC

    5847 San
Felipe Drive, Suite 2600

    Houston,
Texas 77057

    Attention:
J. Richard Rosenberg, Vice President  & Chief Financial
Officer

    

    with a
copy concurrently to:

    

    Beltway
Assets Holdings LLC

    5847 San
Felipe Drive, Suite 2600

    Houston,
Texas 77057

    Attention:
Erik Eriksson, Esq., Vice President

    

    and a
copy to:

    

    Schlanger,
Mills, Mayer & Silver, L.L.P.

    109 North
Post Oak Lane, Suite 300

    Houston,
Texas 77024

    Attention:
Lee D. Schlanger, Esquire

    

    If to
Lender:

    

    Legg
Mason Real Estate Services, Inc.

    15050
N.W. 79th Court, Suite 101

    Miami
Lakes, Florida 33016

    Attention:
W. Kyle Gore

    

    with a
copy concurrently to:

    

    Ballard
Spahr Andrews & Ingersoll, LLP

    300 East
Lombard Street, Suite 1900

    Baltimore,
MD 21202

    Attention:
Fred Wolf, III, Esquire

    

    12.           No Waiver; Time of Essence;
Business Day. The failure of any party hereto to enforce any right or
remedy hereunder, or to promptly enforce any such right or remedy, shall not
constitute a waiver thereof nor give rise to any estoppel against such party nor
excuse any of the parties hereto from their respective obligations hereunder.
Any waiver of such right or remedy must be in writing and signed by the party to
be bound. This Agreement is subject to enforcement at law or in equity,
including actions for damages or specific performance. Time is of the essence
hereof. The term "business day" as used herein shall mean a weekday, Monday
through Friday, except a legal holiday or a day on which banking institutions in
New York, New York are authorized by law to be closed.

    

    13.           Captions for
Convenience. The captions and headings of the sections and paragraphs of
this Agreement are for convenience of reference only and shall not be construed
in interpreting the provisions hereof.

    

    14.           Attorneys' Fees. In
the event it is necessary for Lender to retain the services of an attorney or
any other consultants in order to enforce this Agreement, or any portion
thereof, Indemnitor agrees to pay to Lender any and all costs and expenses,
including, without limitation, reasonable attorneys' fees, incurred by Lender as
a result thereof including without limitation, such attorneys' fees and costs at
trial, on appeal, or on petition for review, and in proceedings, petitions, or
motions in bankruptcy and such costs, fees and expenses shall be included in
Indemnified Liabilities.

    

    15.           Successive Actions. A
separate right of action hereunder shall arise each time Lender acquires
knowledge of any matter indemnified or guaranteed by Indemnitor under this
Agreement. Separate and successive actions may be brought hereunder to enforce
any of the provisions hereof at any time and from time to time. No action
hereunder shall preclude any subsequent action, and Indemnitor hereby waives and
covenants not to assert any defense in the

    nature of
splitting of causes of action or merger of judgments.

    

    16.           Reliance. Lender
would not make the Loan to Borrower without this Agreement. Accordingly,
Indemnitor intentionally and unconditionally enters into the covenants and
agreements as set forth above and understands that, in reliance upon and in
consideration of such covenants and agreements, the Loan shall be made and, as
part and parcel thereof, specific monetary and other obligations have been, are
being and shall be entered into which would not be made or entered into but for
such reliance.

    

    17.           SUBMISSION TO JURISDICTION;
WAIVER OF JURY TRIAL.

    

    (1)
INDEMNITOR, TO THE FULL EXTENT PERMITTED BY LAW, HEREBY KNOWINGLY, INTENTIONALLY
AND VOLUNTARILY, WITH AND-UPON THE
ADVICE OF COMPETENT COUNSEL, (A) SUBMITS TO PERSONAL JURISDICTION IN THE STATE
OF TEXAS OVER ANY SUIT, ACTION OR PROCEEDING BY ANY PERSON ARISING FROM OR
RELATING TO THIS AGREEMENT, (B) AGREES THAT ANY SUCH ACTION, SUIT OR PROCEEDING
MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION SITTING
IN THE COUNTY AND STATE OF TEXAS, (C) SUBMITS TO THE JURISDICTION OF SUCH
COURTS, AND, (D) TO THE FULLEST EXTENT PERMITTED BY LAW, AGREES THAT IT WILL NOT
BRING ANY ACTION, SUIT OR PROCEEDING IN ANY OTHER FORUM (BUT NOTHING HEREIN
SHALL AFFECT THE RIGHT OF LENDER TO BRING ANY ACTION, SUIT OR PROCEEDING IN ANY
OTHER FORUM). INDEMNITOR FURTHER, CONSENTS AND AGREES TO SERVICE OF ANY SUMMONS,
COMPLAINT OR OTHER LEGAL PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING BY
REGISTERED OR CERTIFIED U.S. MAIL, POSTAGE PREPAID, TO THE INDEMNITOR AT THE
ADDRESS SET FORTH HEREIN, AND CONSENTS AND AGREES THAT SUCH SERVICE SHALL
CONSTITUTE IN EVERY RESPECT VALID AND EFFECTIVE SERVICE (BUT NOTHING HEREIN
SHALL AFFECT THE VALIDITY OR EFFECTIVENESS OF PROCESS SERVED IN ANY OTHER MANNER
PERMITTED BY LAW).

    

    (2)           INDEMNITOR
AND LENDER EACH, TO THE FULL EXTENT PERMITTED BY LAW, HEREBY KNOWINGLY,
INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL,
WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO THIS
AGREEMENT OR ANY CONDUCT, ACT OR OMISSION OF LENDER OR INDEMNITOR, OR ANY OF ITS
DIRECTORS, OFFICERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS OR ATTORNEYS, OR ANY
OTHER PERSONS AFFILIATED WITH LENDER OR INDEMNITOR, IN EACH OF THE FOREGOING
CASES, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.

    

    18.           Waiver by Indemnitor.
Indemnitor covenants and agrees that, upon the commencement

    of a
voluntary or involuntary bankruptcy proceeding by or against Borrower,
Indemnitor shall not seek or cause Borrower or any other person or entity to
seek a supplemental stay or other relief, whether injunctive or otherwise,
pursuant to 11 U.S.C. §105 or any other provision of the Bankruptcy Code, or any
other debtor relief law, (whether statutory, common law, case law or otherwise)
of any jurisdiction whatsoever, now or hereafter in effect, which may be or
become applicable, to stay, interdict, condition, reduce or inhibit the ability
of Lender to enforce any rights of Lender against Indemnitor or the collateral
for the Loan by virtue of this Agreement or otherwise.

     

                                   
19.           Assignments By
Lender.

    

    (a)           Lender
may at its sole cost and expense, without notice to, or consent of, Indemnitor,
sell, assign or transfer to or participate with any entity or entities all or
any part of the indebtedness evidenced by the Note and secured by the Indenture,
and each such entity or entities shall have the right to enforce the provisions
of this Agreement and any of the other Loan Documents as fully as Lender,
provided that Lender shall continue to have the unimpaired right to enforce the
provisions of this Agreement and any of the other Loan Documents as to so much
of the Loan that Lender has not sold, assigned or transferred. Lender shall give
notice to Indemnitor of the name, address, telephone number and contact person
of any assignee of Lender within a reasonable period of time after the effective
date of the assignment, provided, that
failure to provide such notice shall in no way affect the validity or effect of
the assignment or Indemnitor's obligations hereunder.

    

    (b)           In
particular, Indemnitor acknowledges and agrees that Lender and its successors
and assigns may (i) sell the Loan, this Agreement and each of the other Loan
Documents to one or more investors as a whole loan in a rated or unrated public
offering or private placement, (ii) grant participation interests in the Loan,
to one or more investors in a rated or unrated public offering or private
placement, (iii) deposit this Agreement and each of the other Loan Documents
with a trust, .which trust may sell certificates to investors evidencing an
ownership in the trust assets in a rated or unrated public offering or private
placement, or (iv) otherwise sell the Loan or any interest therein to investors
in a rated or unrated public offering or private placement (the transactions
referred to in clauses (i) through (iv) are hereinafter each referred to as a
"Secondary Market
Transaction").

    

    

    

    

    [SIGNATURE
APPEARS ON THE FOLLOWING PAGE]

    

    

    

    
      
         

      

      
        
          

        

      

       

    

    IN
WITNESS WHEREOF, Indemnitor has executed this Indemnity and Guaranty Agreement
as of the day and year first above written.

    

    

    INDEMNITOR:

    

    BELTWAY
ASSETS HOLDINGS LLC, a Delaware limited liability company

    

    

    
      	
              By:

            	
                                                                         
      /s/   J. Richard
Rosenberg

            

    

     J. Richard Rosenberg

     Vice President and Chief
Executive Officerex1021-10ka2007.htm

    
 

    

    Exhibit
10.21

    

    PROMISSORY
NOTE

    

    
      	
              $31,019,250.00

            	
              Dated:
      November 18, 2002

            

    

    
      	
               
      

            	
              Effective:
      November 19, 2002

            

    

    

    FOR VALUE
RECEIVED, and intending to be legally bound, BELTWAY ASSETS LLC, a Delaware
limited liability company having an office 5847 San Felipe, Suite 2600, Houston,
Texas 77057 (hereinafter called the "Borrower"), promises to pay
to the order of LEGG MASON REAL ESTATE SERVICES, INC., a Pennsylvania
corporation, having an address at 100 Light Street, 32nd Floor, Baltimore,
Maryland 21202 (hereinafter called the "Lender") or at such place as the holder
hereof may from time to time designate in writing, the principal sum of
THIRTY-ONE MILLION, NINETEEN THOUSAND TWO HUNDRED FIFTY DOLLARS ($31,019,250.00)
in lawful money of the United States of America with interest thereon to be
computed on the unpaid principal balance from time to time outstanding at the
rate of 6.08 % per annum (the "Applicable Rate") from the
date hereof and to be paid in installments as follows:

    

    
      	
               
      

            	
              1.

            	
              A
      payment of interest only on the date hereof representing interest from and
      including such date to and including December 9,
  2002;

            

    

    

    
      	
               
      

            	
              2.

            	
              Consecutive
      monthly payments of principal and interest together with payment to the
      Certificate Trustee, as set forth on Schedule A
      attached hereto and made a party hereof, beginning on the First
      Amortization Payment Date, set forth on Schedule A, up
      to and including the payment date immediately before the Final Payment
      Date set forth on Schedule A,
      each of such payments to be applied (a) to the payment of [the fee owed to
      the Certificate Trustee;] (b) to the payment of interest computed at the
      Applicable Rate; and (c) the balance applied toward the reduction of the
      principal sum.

            

    

    

    And the
balance of said principal sum, together with all accrued and unpaid interest
thereon, shall be due and payable on the Final Payment Date set forth on Schedule A (the "Maturity Date"). Interest on the
principal sum of this Note shall be calculated on the basis of a three hundred
sixty (360) day year consisting of twelve (12) months of thirty (30) days
each.

    

    It is
expressly stipulated and agreed to be the intent of Borrower and Lender at all
times to comply with the applicable Texas law governing the maximum rate or
amount of interest payable on this Note or the Debt evidenced by this Note and
by the other Loan Documents (or, to the extent it would permit a greater rate or
amount of interest on this Note or the Debt evidenced by this Note and by the
other Loan Documents, applicable United States federal law) to the end that
neither Borrower nor Lender shall have contracted for, and Lender shall not
charge, take, reserve or receive, and Borrower shall not pay, a greater amount
of interest than under Texas law or applicable United State federal law. If (i)
the applicable law is ever judicially interpreted so as to render usurious any
amount called for under this Note or under any of the other Loan Documents, or
contracted for, charged, taken, reserved or received with respect to the Debt,
or (ii) Lender's exercise of any remedy hereunder or under the other Loan
Documents, including the option herein contained to accelerate the maturity of
this Note, or any prepayment by Borrower, results in Lender having charged,
taken, reserved or received, and Borrower having paid, any interest in excess of
that permitted by applicable law, then it is Borrower's and Lender's express
intent that (A) all amounts theretofore collected by Lender in excess of the
maximum amount of interest allowed by applicable law be credited on the
principal balance of this Note (or, if this Note has been or would thereby be
paid in full, refunded to Borrower), and (B) the provisions of this Note and the
other Loan Documents immediately be deemed reformed and the amounts thereafter
payable, chargeable or collectible hereunder and thereunder reduced, without the
necessity of the execution of any new document, so as to comply with the
applicable law, but so as to permit the recovery of the fullest amount otherwise
called for hereunder and thereunder which does not exceed the maximum amount of
interest allowed by applicable law. All sums paid or agreed to be paid to Lender
for the use, forbearance and detention of the Debt evidenced by this Note and by
the other Loan Documents shall, to the extent permitted by applicable law, be
amortized, prorated, allocated and spread throughout the full term of such Debt
until payment in full so that the rate or amount of interest on account of such
Debt does not exceed the usury ceiling from time to time in effect and
applicable to such Debt for so long as debt is outstanding. To the extent that
Lender is relying on Chapter 303, as amended, of the Texas Finance Code to
determine the Maximum Lawful Rate (hereafter defined) payable on such Debt,
Lender will utilize the weekly rate ceiling from time to time in effect as
provided in such Chapter 303, as amended. To the extent United States federal
law permits Lender to contract for, charge or receive a greater amount of
interest than Texas law, Lender will rely on United States federal law instead
of such Chapter 303, as amended, for the purpose of determining the Maximum
Lawful Rate and the maximum amount permitted by applicable Law. Additionally, to
the extent permitted by applicable law now or hereafter in effect and the Loan
Documents, Lender may, at its option and from time to time, implement any other
method of computing the Maximum Lawful Rate under such Chapter 303, as amended,
or under other applicable law by giving notice, if required, to Borrower as
provided by applicable law now or hereafter in effect. In no event shall the
provisions of Chapter 346 of the Texas Finance Code (which regulates certain
revolving credit loan accounts and revolving triparty accounts) apply to the
Debt evidenced by this Note. Notwithstanding anything to the contrary contained
herein or in any of the other Loan Documents, it is not the intention of Lender
to accelerate the maturity of any interest that has not accrued at the time of
such acceleration or to collect unearned interest at the time of such
acceleration. "Maximum
Lawful Rate" shall mean the maximum
lawful rate of interest which may be contracted for, charged, taken, received or
reserved by Lender in accordance with the applicable laws of the State of Texas
(or applicable United States federal law to the extent that it permits Lender to
contract for, charge, take, receive or reserve a greater amount of interest than
under Texas law), taking into account all Charges (hereafter defined) made in
connection with the loan evidenced by this Note and the Loan Documents. "Charges" shall mean all fees and
charges, if any, contracted for, charged, received, taken or reserved by Lender
in connection with the transactions relating to this Note and the Debt evidenced
by this Note or by the Loan Documents which are treated as interest under
applicable law. The term "applicable
law" as used
in this paragraph shall mean the laws of the State of Texas or the laws of the
United States, whichever allows the greater rate or amount of non-usurious
interest to be contracted for, charged, taken, reserved or received with respect
to the Debt evidenced by this Note and the other Loan Documents, as such laws
now exist or may be changed or amended or come into effect in the
future.

    

    This Note
and the Debt evidenced hereby is made pursuant to a Loan Agreement, dated the
Closing Date, between the Lender and Borrower (the "Loan Agreement") and is
secured by the Indenture and the other Security Documents.

    

    All
capitalized terms used in this Note and not otherwise defined herein shall have
the meanings ascribed to them in Appendix A to the
Loan Agreement and the rules of construction set forth in Appendix A to the
Loan Agreement shall also apply to this Note. A copy of the Loan Agreement is on
file and available for inspection at the corporate trust office of the
Certificate Trustee in Salt Lake City, Utah. Reference is made to the Loan
Agreement for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of Borrower and Lender.

    

    If an
Event of Default exists, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Prepayment Consideration) and with the effect provided in the Loan Agreement.
All of the terms, conditions and agreements contained in the Loan Agreement and
the Security Documents are hereby made part of this Note to the same extent and
with the same force as if they were fully set forth herein.

    

    This Note
is not subject to prepayment, in whole or in part, except in accordance with and
subject to and as more fully set forth in Section 2.04 of the Loan
Agreement.

    

    This Note
may be defeased in whole but not in part in accordance with and subject to and
as more fully set forth in Section 2.05 of the Loan Agreement.

    

    This Note
may not be modified, amended, waived, extended, changed, discharged or
terminated orally or by any act or failure to act on the part of Borrower or
Lender, but only by an agreement in writing signed by the party against whom
enforcement of any modification, amendment, waiver, extension, change, discharge
or termination is sought.

    

    Borrower
and all others who may become liable for the payment of all or any part of the
Debt do hereby severally waive presentment and demand for payment, notice of
dishonor, protest, notice of protest, notice of non-payment, and notice of
intent to accelerate the maturity hereof (and of such acceleration); such waiver
of notices, however, shall not apply to notices specifically required under the
Loan Documents. No release of any security for the Debt or extension of time for
payment of this Note or any installment hereof, and no alteration, amendment or
waiver of any provision of this Note or the other Loan Documents made by
agreement between Lender and any other person or party shall release, modify,
amend, waive, extend, change, discharge, terminate or affect the liability of
Borrower, and any other Person who may become liable to pay all or any part of
the Debt, under the Loan Documents.

    

    Notwithstanding
anything to the contrary contained in this Note, the liability of Borrower and
the other Released Parties to pay the Debt and perform the Other Obligations are
limited as set forth in Section 12.13 of Exhibit A to the Loan Agreement, the
terms and provisions of which Section are incorporated into this Note by
reference.

    

    Upon the
transfer of this Note, (i) Borrower hereby waives notice of any such transfer;
(provided,
however, unless
and until Lender delivers written notice to Borrower of such transfer, together
with the name, address and such other relevant payment information as is
necessary, any and all amounts due and payable under the Loan Documents shall
continue to be remitted to the payee last identified by Lender), (ii) Lender may
deliver all of the collateral mortgaged, granted, pledged or assigned pursuant
to the Indenture and the other Security Documents, or any part thereof, to the
transferee who shall thereupon become vested with all the rights therein or
under applicable law given to Lender with respect thereto, and (iii) Lender
shall thereafter forever be relieved and fully discharged from any liability or
responsibility in the matter; but Lender shall retain all rights given to it
under this Note, the Loan Agreement or the Security Documents with respect to
any liabilities and the collateral not so transferred.

    

    All
Notices required or permitted to be given pursuant hereto shall be given in the
manner specified in the Loan Agreement directed to the parties at their
respective addresses as provided therein.

    

    This Note
shall be governed by and construed in accordance with the laws of the State of
Texas and the applicable laws of the United States of America.

    

    Time is
of the essence.

    

    Schedule
A attached
hereto is made a part hereof and incorporated herein in its entirety by
reference.

    

    

    

    

    
      	
               
      

            	
              [SIGNATURE
      APPEARS ON THE FOLLOWING PAGE]

            

    

    

    

    
      
         

      

      
        
          

        

      

       

    

    IN
WITNESS WHEREOF, Borrower has duly executed this Note under seal the day and
year first above written.

    

    BORROWER:

    

    BELTWAY
ASSETS LLC,

    a
Delaware limited liability company

    

    

    
      	
              By:

            	
               /s/   J.
      Richard Rosenberg

            

    

       J. Richard
Rosenberg

       Vice President and Chief
Executive Officer

    

    
      
         

      

      
        
          

        

      

       

    

     

    Schedule A To Promissory
Note

    
      
        	
                Principal
      Amount

              	
                $31,019,250.00

              
	
                Applicable
      Interest Rate

              	
                6.0800%

              
	
                Mortgagor

              	
                Beltway
      Assets LLC

              
	
                Mortgagee

              	
                Legg
      Mason Real Estate Services, Inc.

              
	
                Tenant

              	
                Cooper
      Cameron Corporation

              
	
                Property
      Location                                Street

              	
                4646
      West Sam Houston Parkway North

              
	
                City

              	
                Houston

              
	
                State

              	
                Texas

              
	
                Zip
      Code

              	 
      	
                77041

              
	
                Number
      of Payments

              	 
      	
                264

              
	
                Monthly
      Gross Rent

              	
                Months
      1 to 132

              	
                $199,719.05

              
	
                Monthly
      Principal & Interest Payment

              	
                Months
      133 to 264

              	
                $179,768.15

              
	 
      	
                Months
      1 to 132

              	
                $199,509.05

              
	
                Monthly
      Trustee & Servicing Fee

              	
                Months
      133 to 264

              	
                $179,558.15

              
	 
      	 
      	
                $210.00

              
	
                First
      Payment Date

              	 
      	
                12/9/2002

              
	
                Final
      Payment Date (Maturity Date)

              	 
      	
                11/9/2024

              

      

    Page 1 of
11

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