Document:

Exhibit 10.2

 

PROMISSORY NOTE

 

	
  $75,000,000.00

  	
   

  	
  February 13, 2008

  

 

                FOR VALUE RECEIVED, BEHRINGER
HARVARD OPPORTUNITY OP I, LP, a Texas limited partnership, BEHRINGER HARVARD
BOWEN ROAD LP, a Delaware limited partnership, BEHRINGER HARVARD WHITEWATER,
LLC, a Delaware limited liability company, BEHRINGER HARVARD LAS COLINAS LP, a
Delaware limited partnership, BEHRINGER HARVARD BENT TREE LP, a Delaware
limited partnership, BEHRINGER HARVARD AUGUSTA LP, a Delaware limited
partnership, BEHRINGER HARVARD NORTHPOINT LP, a Delaware limited partnership,
and BEHRINGER HARVARD REGENCY LP, a Delaware limited partnership (collectively,
“Borrowers”) hereby jointly and severally, promise to pay to the order
of BANK OF AMERICA, N.A., a national banking association (“Lender”)  under that certain Credit Agreement (defined below) among
Borrowers,  Bank of America, N.A., a national
banking association (together with any and all of its successors and assigns, “Administrative
Agent”), as Administrative Agent for the ratable benefit of the Lenders
from time to time made  a party to that
certain Credit Agreement (the “Credit Agreement”) dated of even date
herewith, without offset, in immediately available funds in lawful money of the
United States of America, at Administrative Agent’s Office as defined in the
Credit Agreement, the principal sum of up to SEVENTY FIVE MILLION AND NO/100
DOLLARS ($75,000,000.00) (or the unpaid balance of all principal advanced
against this Note, if that amount is less), together with interest on the unpaid
principal balance of this Note from day to day outstanding as hereinafter
provided.

 

1.             Note; Interest; Payment Schedule and Maturity Date.  This Note is one of the Notes referred to in
Credit Agreement and is entitled to the benefits thereof.  The entire principal balance of this Note
then unpaid shall be due and payable at the times as set forth in the Credit
Agreement.  Accrued unpaid interest shall
be due and payable at the times and at the interest rate as set forth in the
Credit Agreement until all principal and accrued interest owing on this Note
shall have been fully paid and satisfied. 
Any amount not paid when due and payable hereunder shall, to the extent
permitted by applicable Law, bear interest at the Past Due Rate, as set forth
in the Credit Agreement.

 

2.             Guaranty; Loan Documents.  The obligations of Borrowers under this Note
are secured by the Security Documents (as defined in the Credit Agreement) and
guaranteed, in whole or in part, by the Guaranty (whether one or more, as
defined in the Credit Agreement).

 

3.             Defaults.

 

(a)           It shall be a default (“Default”) under this Note
and each of the other Loan Documents if (after giving effect to any applicable
notice, grace or cure periods) (i) any principal, interest or other amount
of money due under this Note is not paid in full when due, regardless of how
such amount may have become due; (ii) any covenant, agreement, condition,

 

1

representation
or warranty herein or in any other Loan Documents is not fully and timely
performed, observed or kept; or (iii) there shall occur any default or
event of default under the Deed of Trust or any other Loan Document.  Upon the occurrence and during the
continuation of a Default, Administrative Agent, on behalf of Payee and the
other Lenders, (as defined in the Loan Agreement) shall have the rights to
declare the unpaid principal balance and accrued but unpaid interest on this
Note, and all other amounts due hereunder and under the other Loan Documents,
at once due and payable (and upon such declaration, the same shall be at once
due and payable), to foreclose any liens and security interests securing
payment hereof and to exercise any of its other rights, powers and remedies
under this Note, under any other Loan Document, or at Law or in equity.

 

(b)           All of the rights, remedies, powers and privileges
(together, “Rights”) of Administrative Agent, on behalf of Payee and the
other Lenders, provided for in this Note and in any other Loan Document are
cumulative of each other and of any and all other Rights at Law or in
equity.  The resort to any Right shall
not prevent the concurrent or subsequent employment of any other appropriate
Right.  No single or partial exercise of
any Right shall exhaust it, or preclude any other or further exercise thereof,
and every Right may be exercised at any time and from time to time.  No failure by Administrative Agent, Payee or
the other Lenders to exercise, nor delay in exercising any Right, including but
not limited to the right to accelerate the maturity of this Note, shall be
construed as a waiver of any Default or as a waiver of any Right.  Without limiting the generality of the
foregoing provisions, the acceptance by Payee from time to time of any payment
under this Note which is past due or which is less than the payment in full of
all amounts due and payable at the time of such payment, shall not (i) constitute
a waiver of or impair or extinguish the right of Administrative Agent, on
behalf of Payee, to accelerate the maturity of this Note or to exercise any
other Right at the time or at any subsequent time, or nullify any prior
exercise of any such Right, or (ii) constitute a waiver of the requirement
of punctual payment and performance or a novation in any respect.

 

(c)           If any holder of this Note retains an attorney in
connection with any Default or at maturity or to collect, enforce or defend
this Note or any other Loan Document in any lawsuit or in any probate,
reorganization, bankruptcy, arbitration or other proceeding, or if any Borrower
sues any holder in connection with this Note or any other Loan Document and
does not prevail, then Borrowers agree to pay to each such holder, in addition
to principal, interest and any other sums owing to Payee hereunder and under
the other Loan Documents, all  costs and
expenses incurred by such holder in trying to collect this Note or in any such
suit or proceeding, including, without limitation, attorneys’ fees and
expenses, investigation costs and all court costs, whether or not suit is filed
hereon, whether before or after the Maturity Date, or whether in connection
with bankruptcy, insolvency or appeal, or whether collection is made against
Borrowers or Guarantor or endorser or any other person primarily or secondarily
liable hereunder.

 

4.             Heirs, Successors and Assigns.  The terms of this Note and of the other Loan
Documents shall bind and inure to the benefit of the heirs, devisees,
representatives, successors and assigns of the parties.  The foregoing sentence shall not be construed
to permit Borrowers to assign the Loan except as otherwise permitted under the
Loan Documents.  As further provided in
the Loan Agreement, Payee may, at any time, sell, transfer, or assign all on a
portion of its 

 

2

interest
in this Note, the Deed of Trust and the other Loan Documents, as set forth in
the Loan Agreement.

 

5.             General Provisions.  Time is of the essence with respect to
Borrowers’ obligations under this Note. 
If more than one person or entity executes this Note as a borrower, all
of said parties shall be jointly and severally liable for payment of the
indebtedness evidenced hereby.  Each
Borrower on behalf of itself and all sureties, endorsers, guarantors and any
other party now or hereafter liable for the payment of this Note in whole or in
part, hereby (a) waives, to the extent permitted by applicable Laws,
demand, presentment for payment, notice of dishonor and of nonpayment, protest,
notice of protest, notice of intent to accelerate, notice of acceleration and
all other notices (except any notices which are specifically required by this
Note or any other Loan Document or are required by applicable Law), filing of
suit and diligence in collecting this Note or enforcing any of the security
herefor; (b) agrees to any substitution, subordination, exchange or
release of any such security or the release of any party primarily or
secondarily liable hereon; (c) agrees that neither Administrative Agent
nor Payee or any Lender shall be required first to institute suit or exhaust
its remedies hereon against such Borrower or others liable or to become liable
hereon or to perfect or enforce its rights against them or any security
herefor; (d) consents to any extensions or postponements of time of
payment of this Note for any period or periods of time and to any partial
payments, before or after maturity, and to any other indulgences with respect
hereto, without notice thereof to any of them; and (e) submits (and waives
all rights to object) to non-exclusive personal jurisdiction of any state or
federal court sitting in the city and county, and venue in the city or county,
in which payment is to be made as specified in Section 1 of this
Note, for the enforcement of any and all obligations under this Note and the Loan
Documents; (f) waives the benefit of all homestead and similar exemptions
as to this Note; (g) agrees that their liability under this Note shall not
be affected or impaired by any determination that any security interest or lien
taken by Administrative Agent, on behalf of Payee and the other Lenders, to
secure this Note is invalid or unperfected; and (h) hereby subordinates
any and all rights against such Borrower and any of the security for the
payment of this Note, whether by subrogation, agreement or otherwise, until
this Note is paid in full.  A
determination that any provision of this Note is unenforceable or invalid shall
not affect the enforceability or validity of any other provision and the
determination that the application of any provision of this Note to any person
or circumstance is illegal or unenforceable shall not affect the enforceability
or validity of such provision as it may apply to other persons or
circumstances.  This Note may not be
amended except in a writing specifically intended for such purpose and executed
by the party against whom enforcement of the amendment is sought.  Captions and headings in this Note are for
convenience only and shall be disregarded in construing it.  THIS NOTE, AND ITS VALIDITY, ENFORCEMENT AND
INTERPRETATION, SHALL BE GOVERNED BY TEXAS LAW (WITHOUT REGARD TO ANY CONFLICT
OF LAWS PRINCIPLES) AND APPLICABLE UNITED STATES FEDERAL LAW.

 

6.             Notices. 
Any notice, request, or demand to or upon Borrowers, Administrative
Agent or Payee shall be deemed to have been properly given or made when
delivered in accordance with the Loan Agreement.

 

7.             No Usury.  It is expressly stipulated and agreed to be
the intent of Borrowers, Administrative Agent and all Lenders (including Payee)
at all times to comply with applicable

 

3

state
law or applicable United States federal law (to the extent that it permits a
lender to contract for, charge, take, reserve, or receive a greater amount of
interest than under state law) and that this Section shall control every
other covenant and agreement in this Note and the other Loan Documents.  If applicable state or federal law should at
any time be 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 Loan, or if the
exercise by Administrative Agent, on behalf of the Lenders, of the option to
accelerate the Maturity Date, or if any prepayment by Borrowers results in
Borrowers having paid any interest in excess of that permitted by applicable
law, then it is Administrative Agent’s and each Lender’s (including Payee’s)
express intent that all excess amounts theretofore collected by Administrative
Agent’s and each Lender (including Payee) shall be credited on the principal
balance of this Note and all other indebtedness and the provisions of this Note
and the other Loan Documents shall immediately be deemed reformed and the
amounts thereafter collectible hereunder and thereunder reduced, without the
necessity of the execution of any new documents, so as to comply with the
applicable law, but so as to permit the recovery of the fullest amount
otherwise called for hereunder or thereunder. 
All sums paid or agreed to be paid to Lenders (including Payee) for the
use, forbearance, or detention of the Loan shall, to the extent permitted by
applicable law, be amortized, prorated, allocated, and spread throughout the
full stated term of the Loan until payment in full so that the rate or amount
of interest on account of the Loan does not exceed the maximum lawful rate from
time to time in effect and applicable to the Loan for so long as the Loan is
outstanding.

 

THE
LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.

 

THERE
ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

4

 

IN WITNESS WHEREOF,
Borrowers have duly executed this Note as of the date first above written.

 

	
   

  	
   

  	
  BORROWERS:  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BEHRINGER HARVARD OPPORTUNITY OP I, LP, a Texas limited
  partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  BHO, Inc., a Delaware corporation, its general partner 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gerald J. Reihsen, III 

  
	
   

  	
   

  	
  Name:

  	
  Gerald J. Reihsen, III 

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President-Corporate
  Development & LegalSecretary

  
	
   

  	
   

  	
   

  	
     

  
	
   

  	
   

  	
  BEHRINGER HARVARD BOWEN ROAD LP,

  
	
   

  	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gerald J. Reihsen, III

  
	
   

  	
   

  	
  Name:

  	
  Gerald J. Reihsen, III 

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President — Corporate
  Development & Legal and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BEHRINGER HARVARD WHITEWATER, LLC, 

  
	
   

  	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   By:

  	
  /s/ Gerald J. Reihsen, III

  
	
   

  	
   

  	
  Name:

  	
  Gerald J. Reihsen, III

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BEHRINGER HARVARD LAS COLINAS LP,

  
	
   

  	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   By: 

  	
  /s/ Gerald J. Reihsen, III

  
	
   

  	
   

  	
  Name: 

  	
  Gerald J. Reihsen, III 

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President — Corporate Development & Legal and
  Secretary

  

 

5

 

	
   

  	
  BEHRINGER HARVARD BENT TREE LP,

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gerald J. Reihsen, III

  
	
   

  	
  Name:

  	
  Gerald J. Reihsen, III

  
	
   

  	
  Title:

  	
  Executive Vice President — Corporate

  
	
   

  	
   

  	
  Development & Legal and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  BEHRINGER HARVARD AUGUSTA LP,

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gerald J. Reihsen, III

  
	
   

  	
  Name:

  	
  Gerald J. Reihsen, III

  
	
   

  	
  Title:

  	
  Executive Vice President — Corporate

  
	
   

  	
   

  	
  Development & Legal and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  BEHRINGER HARVARD NORTHPOINT LP,

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gerald J. Reihsen, III

  
	
   

  	
  Name:

  	
  Gerald J. Reihsen, III

  
	
   

  	
  Title:

  	
  Executive Vice President — Corporate

  
	
   

  	
   

  	
  Development & Legal and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  BEHRINGER
  HARVARD REGENCY LP,

  
	
   

  	
  a
  Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Gerald J. Reihsen, III

  
	
   

  	
  Name:

  	
  Gerald
  J. Reihsen, III

  
	
   

  	
  Title:

  	
  Executive
  Vice President — Corporate

  
	
   

  	
   

  	
  Development &
  Legal and Secretary

  

 

6Exhibit 10.3

 

GUARANTY AGREEMENT

 

This  GUARANTY AGREEMENT (this “Guaranty”) is made as of
the 13th day of February, 2008, by BEHRINGER HARVARD OPPORTUNITY
REIT I, INC., a Maryland corporation (singly or collectively, “Guarantor”),
in favor of BANK OF AMERICA, N.A., a national banking association (together
with its successors and assigns, “Administrative Agent”), as
Administrative Agent on behalf of itself and each lender from time to time made
a party to the Credit Agreement (collectively, the “Lenders”).

 

PRELIMINARY STATEMENTS

 

Administrative Agent, the
Lenders, Behringer Harvard Opportunity OP I, LP, a Texas limited partnership
(the “Operating Partnership”) and certain of its Subsidiaries (the “Subsidiary
Obligors”) (the Operating Partnership and Subsidiary Obligors are sometimes
referred to herein, collectively, as “Borrowers”), and Guarantor, among
others, have entered into, are entering into concurrently herewith that certain
Credit Agreement dated of even date herewith (herein called, as it may hereafter
be modified, supplemented, restated, extended, or renewed and in effect from
time to time, the “Credit Agreement”), which Credit Agreement pertains
to a $75,000,000 loan (with an option to increase such loan up to $150,000,000
as provided in the Credit Agreement) (the “Loan”).

 

A condition precedent to
Lenders’ obligation to make the Loan to Borrowers is Guarantor’s execution and
delivery to Lenders of this Guaranty.

 

The Loan is, or will be,
evidenced by one or more Promissory Notes issued by Borrowers pursuant to the
Credit Agreement, executed by Borrowers from time to time and payable to the
order of each Lender (such notes, as they may hereafter be renewed, extended,
supplemented, increased or modified and in effect from time to time, and all
other notes given in substitution therefor in accordance with the Credit
Agreement, or in modification, renewal, or extension thereof, in whole or in
part, is herein called the “Note”).

 

Borrowers and Swap Bank may
from time to time enter into one or more “Swap Transactions” as defined
in the Credit Agreement.

 

Any capitalized term used
and not defined in this Guaranty shall have the meaning given to such term in
the Credit Agreement.  This Guaranty is
one of the Loan Documents described in the Credit Agreement.

 

STATEMENT OF AGREEMENTS

 

For
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, and as a material inducement to Lenders to extend credit to
Borrowers, Guarantor hereby guarantees to Administrative Agent, Swap Bank and
the Lenders the prompt and full payment of the indebtedness and obligations
described below in this Guaranty (collectively called the “Guaranteed
Obligations”), this Guaranty being upon the following terms and conditions:

 

1

	
  1.

  	
   

  	
  Guaranty. Guarantor
  hereby unconditionally and irrevocably guarantees to Lenders the punctual
  payment and 

  

performance
when due, whether by lapse of time, by acceleration of, maturity, or otherwise,
of the following (collectively called, the “Indebtedness”):

 

(a)           all of the unpaid
principal balance of the Loan, including any amount advanced by Lenders in
payment of any of Borrowers’ obligations under any Swap Transactions and all
L/C Obligations, whether now or hereafter existing or arising pursuant to the
Credit Agreement, any of the other Loan Documents, in connection with any Swap
Transactions, or pursuant to the Environmental Indemnity; plus

 

(b)           all accrued but
unpaid interest on any of the indebtedness owing under the instruments or
agreements described in (a) above, plus

 

(c)           all obligations of
Borrowers to Administrative Agent, Swap Bank, L/C Issuer and the Lenders under
any documents evidencing, securing, governing and/or pertaining to all or any
part of the indebtedness described in (a) and (b) above; plus

 

(d)           all fees, late
charges, costs, expenses, indemnification indebtedness, and other sums of money
now or hereafter due and owing, arising out of or relating to the enforcement
of this Guaranty by Administrative Agent, on behalf of Swap Bank, L/C Issuer
and/or the Lenders.

 

This
Guaranty covers the Indebtedness, whether presently outstanding or arising
subsequent to the date hereof, including all amounts advanced by Lenders in
stages or installments.  The guaranty of
Guarantor as set forth in this Section 1 is a continuing guaranty
of payment and not a guaranty of collection.

 

	
  2.

  	
   

  	
  Reserved.

  

 

	
  3.

  	
   

  	
  Primary Liability of Guarantor.

  

 

(a)           This Guaranty is an absolute,
irrevocable and unconditional guaranty of payment and performance.  Guarantor shall be liable for the payment and
performance of the Guaranteed Obligations as a primary obligor.  This Guaranty shall be effective as a waiver
of, and Guarantor hereby expressly waives, any and all rights to which
Guarantor may otherwise have been entitled under any suretyship laws in effect
from time to time, including any right or privilege, whether existing under
statute, at law or in equity, to require Administrative Agent, on behalf of the
Lenders, to take prior recourse or proceedings against any collateral, security
or Person (hereinafter defined) whatsoever.

 

(b)           Guarantor hereby agrees that in the
event of a Default (as defined in the Loan Agreement) (individually and
collectively herein called an “Event of Default”); then upon the
occurrence of such Event of Default, the Guaranteed Obligations, for purposes
of this Guaranty, shall be deemed immediately due and payable at the election
of Administrative Agent (with the consent of the Required Lenders), and
Guarantor shall, on

 

2

demand and without
presentment, protest, notice of protest, further notice of nonpayment or of
dishonor, default or nonperformance, or notice of acceleration or of intent to
accelerate, or any other notice whatsoever, without any notice having been
given to Guarantor previous to such demand of the acceptance by Administrative
Agent of this Guaranty, and without any notice having been given to Guarantor
previous to such demand of the creating or incurring of such indebtedness or of
such obligation to perform, all such notices being hereby waived by Guarantor,
pay the amount due to Administrative Agent and the Lenders or perform or
observe the agreement, covenant, term or condition, as the case may be, and pay
all damages and all costs and expenses that may arise in consequence of such
Default (including, without limitation, all attorneys’ fees and expenses,
investigation costs, court costs, and any and all other costs and expenses
incurred by Administrative Agent and the Lenders in connection with the
collection and enforcement of the Note or any other Loan Document), whether or
not suit is filed thereon, or whether at maturity or by acceleration, or
whether before or after maturity, or whether in connection with bankruptcy,
insolvency or appeal.  It shall not be
necessary for Administrative Agent, on behalf of the Lenders, in order to
enforce such payment or performance by Guarantor, first to institute suit or
pursue or exhaust any rights or remedies against Borrowers or others liable on
such indebtedness or for such performance, or to enforce any rights against any
security that shall ever have been given to secure such indebtedness or
performance, or to join Borrowers or any others liable for the payment or
performance of the Guaranteed Obligations or any part thereof in any action to
enforce this Guaranty, or to resort to any other means of obtaining payment or
performance of the Guaranteed Obligations; provided, however,
that nothing herein contained shall prevent Administrative Agent or the Lenders
from suing on the Note or foreclosing any Deed of Trust or from exercising any
other rights thereunder, and if such foreclosure or other remedy is availed of,
only the net proceeds therefrom, after deduction of all charges and expenses of
every kind and nature whatsoever, shall be applied in reduction of the amount
due on the Note and Deed of Trust, and Administrative Agent and the Lenders
shall not be required to institute or prosecute proceedings to recover any
deficiency as a condition of payment hereunder or enforcement hereof.  At any sale of any Project or other
Collateral given for the Indebtedness or any part thereof, whether by
foreclosure or otherwise, any Lender may at its discretion purchase all or any
part of the Project or Collateral so sold or offered for sale for its own
account and may, in payment of the amount bid therefor, deduct such amount from
the balance due it pursuant to the terms of the Note and the Deed of Trust.

 

(c)           Suit may be brought or demand may be
made against Borrowers or against all parties who have signed this Guaranty or
any other guaranty covering all or any part of the Guaranteed Obligations, or
against any one or more of them, separately or together, without impairing the
rights of Administrative Agent and the Lenders against any party hereto. Any
time that Administrative Agent, on behalf of the Lenders, is entitled to
exercise its rights or remedies hereunder, it may in its discretion elect to
demand payment and/or performance.  If Administrative
Agent, on behalf of the Lenders, elects to demand performance, it shall at all 

 

3

times thereafter have the
right to demand payment until all of the Guaranteed Obligations have been paid
and performed in full.  If Administrative
Agent, on behalf of the Lenders, elects to demand payment, it shall at all
times thereafter have the right to demand performance until all of the
Guaranteed Obligations have been paid and performed in full.

 

	
  4.

  	
   

  	
  Certain Agreements and Waivers
  by Guarantor.

  

 

(a)           Guarantor hereby agrees that neither
Lenders’ rights or remedies nor Guarantor’s obligations under the terms of this
Guaranty shall be released, diminished, impaired, reduced or affected by any
one or more of the following events, actions, facts, circumstances or rights,
and the liability of Guarantor under this Guaranty shall be absolute and
unconditional irrespective of:

 

(i)            any limitation of liability or recourse in any other Loan
Document or arising under any law;

 

(ii)           any claim or defense that this Guaranty was made without
consideration or is not supported by adequate consideration;

 

(iii)          the taking or accepting of any other security or guaranty
for, or right of recourse with respect to, any or all of the Guaranteed
Obligations;

 

(iv)          any homestead
exemption or any other exemption under applicable law;

 

(v)           any release, surrender, abandonment, exchange, alteration,
sale or other disposition, subordination, deterioration, waste, failure to
protect or preserve, impairment, or loss of, or any failure to create or
perfect any lien or security interest with respect to, or any other dealings
with, any collateral or security at any time existing or purported, believed or
expected to exist in connection with any or all of the Guaranteed Obligations,
including any impairment of Guarantor’s recourse against any Person or
collateral;

 

(vi)          whether express or by operation of law, any partial release
of the liability of Guarantor hereunder, or if one or more other guaranties are
now or hereafter obtained by the Lenders covering all or any part of the
Guaranteed Obligations, any complete or partial release of any one or more of
such guarantors under any such other guaranty, or any complete or partial
release of Borrowers or any other party liable, directly or indirectly, for the
payment or performance of any or all of the Guaranteed Obligations;

 

(vii)         the death, insolvency, bankruptcy, disability, dissolution,
liquidation, termination, receivership, reorganization, merger, consolidation,
change of form, structure or ownership, sale of all assets, or lack of
corporate, partnership or other power of Borrowers or any other party at any
time liable for the payment or performance of any or all of the Guaranteed
Obligations;

 

(viii)        either with or without notice to or
consent of Guarantor: any renewal, extension, modification, supplement,
subordination or rearrangement of the terms of any or all of the Guaranteed
Obligations and/or any of the Loan Documents, including, without limitation,
material alterations of the terms of payment (including changes in 

 

4

maturity
date(s) and interest rate(s)) or performance (including changes in the
Plans and other terms or aspects of construction of the Improvements) or any
other terms thereof, or any waiver, termination, or release of, or consent to
departure from, any of the Loan Documents or any other guaranty of any or all
of the Guaranteed Obligations, or any adjustment, indulgence, forbearance, or
compromise that may be granted from time to time by Administrative Agent, on
behalf of the other Lenders, to Borrowers, Guarantor, and/or any other Person
at any time liable for the payment or performance of any or all of the
Guaranteed Obligations;

 

(ix)           any neglect, lack of diligence, delay, omission, failure,
or refusal of Administrative Agent, on behalf of the Lenders, to take or
prosecute (or in taking or prosecuting) any action for the collection or
enforcement of any of the Guaranteed Obligations, or to foreclose or take or
prosecute any action to foreclose (or in foreclosing or taking or prosecuting
any action to foreclose) upon any security therefor, or to exercise (or in
exercising) any other right or power with respect to any security therefor, or
to take or prosecute (or in taking or prosecuting) any action in connection
with any Loan Document, or any failure to sell or otherwise dispose of in a
commercially reasonable manner any collateral securing any or all of the
Guaranteed Obligations;

 

(x)            any failure of Administrative Agent, on behalf of the
Lenders, to notify Guarantor of any creation, renewal, extension,
rearrangement, modification, supplement, subordination, or assignment of the
Guaranteed Obligations or any part thereof, or of any Loan Document, or of any
release of or change in any security, or of any other action taken or refrained
from being taken by Administrative Agent, on behalf of the Lenders, against
Borrowers or any security or other recourse, or of any new agreement between Administrative
Agent, for the Lenders, and Borrowers, it being understood that unless
otherwise expressly provided for in this Guaranty, the Lenders shall not be
required to give Guarantor any notice of any kind under any circumstances with
respect to or in connection with the Guaranteed Obligations, any and all rights
to notice Guarantor may have otherwise had being hereby waived by Guarantor,
and the Guarantor shall be responsible for obtaining for itself information
regarding the Borrowers, including, but not limited to, any changes in the
business or financial condition of the Borrowers, and the Guarantor
acknowledges and agrees that the Administrative Agent and the Lenders shall
have no duty to notify the Guarantor of any information which the Administrative
Agent and the Lenders may have concerning Borrowers.

 

(xi)           if for any reason any Lender is required to refund any
payment by Borrowers to any other party liable for the payment or performance
of any or all of the Guaranteed Obligations or pay the amount thereof to
someone else;

 

(xii)          the making of advances by Administrative Agent, on behalf
of the Lenders, to protect the interest of the Lenders in the Collateral,
preserve the value of the Collateral, or for the purpose of performing any term
or covenant contained in any of the Loan Documents;

 

(xiii)         the existence of any claim,
counterclaim, set-off or other right that Guarantor may at any time have
against Borrowers, Administrative Agent, any Lender, or 

 

5

any
other Person, whether or not arising in connection with this Guaranty, the
Note, the Credit Agreement, or any other Loan Document;

 

(xiv)        the unenforceability of all or any part of the Guaranteed
Obligations against Borrowers, whether because the Guaranteed Obligations
exceed the amount permitted by law or violate any usury law, or because the act
of creating the Guaranteed Obligations, or any part thereof, is ultra vires,
or because the officers or Persons creating the Guaranteed Obligations acted in
excess of their authority, or because of a lack of validity or enforceability
of or defect or deficiency in any of the Loan Documents, or because Borrowers
have any valid defense, claim or offset with respect thereto, or because
Borrowers’ obligation ceases to exist by operation of law, or because of any
other reason or circumstance, it being agreed that Guarantor shall remain
liable hereon regardless of whether Borrowers or any other Person be found not
liable on the Guaranteed Obligations, or any part thereof, for any reason (and
regardless of any joinder of Borrowers or any other party in any action to
obtain payment or performance of any or all of the Guaranteed Obligations); or

 

(xv)         any order, ruling or plan of reorganization emanating from
proceedings under Title 11 of the United States Code with respect to Borrowers
or any other Person, including any extension, reduction, composition, or other
alteration of the Guaranteed Obligations, whether or not consented to by
Administrative Agent and the Lenders.

 

(b)           In the event any payment by Borrowers
or any other Person to any Lender is held to constitute a preference,
fraudulent transfer or other voidable payment under any bankruptcy, insolvency
or similar law, or if for any other reason any Lender is required to refund
such payment or pay the amount thereof to any other party, such payment by
Borrowers or any other party to any Lender shall not constitute a release of
Guarantor from any liability hereunder, and this Guaranty shall continue to be
effective or shall be reinstated (notwithstanding any prior release, surrender
or discharge by the Lenders of this Guaranty or of Guarantor), as the case may
be, with respect to, and this Guaranty shall apply to, any and all amounts so
refunded by any such Lender or paid by any such Lender to another Person (which
amounts shall constitute part of the Guaranteed Obligations), and any interest
paid by any such Lender and any attorneys’ fees, costs and expenses paid or
incurred by Lender in connection with any such event.  It is the intent of Guarantor and the Lenders
that the obligations and liabilities of Guarantor hereunder are absolute and
unconditional under any and all circumstances and that until the Guaranteed
Obligations are fully and finally paid and performed, and not subject to refund
or disgorgement, the obligations and liabilities of Guarantor hereunder shall
not be discharged or released, in whole or in part, by any act or occurrence
that might, but for the provisions of this Guaranty, be deemed a legal or
equitable discharge or release of a guarantor. 
Administrative Agent, on behalf of the Lenders, shall be entitled to
continue to hold this Guaranty in its possession for the longer of (i) the
period after which any performance of obligations under the Credit Agreement
shall accrue, or (ii) a period of one year from the date the Guaranteed
Obligations are paid and performed in full and for so long thereafter as may be
necessary to enforce any obligation of Guarantor hereunder and/or to exercise
any right or remedy of the Lenders hereunder.

 

6

(c)           If acceleration of the time for
payment of any amount payable by Borrowers under the Note, the Credit
Agreement, or any other Loan Document that constitutes any of the Guaranteed
Obligations is stayed or delayed by any law or tribunal, all such amounts shall
nonetheless be payable by Guarantor on demand by Administrative Agent, on
behalf of the Lenders.

 

	
  5.

  	
   

  	
  Reserved.

  

 

	
  6.

  	
   

  	
  Subordination. If, for any
  reason whatsoever, Borrowers are now or hereafter become indebted to
  Guarantor:

  

 

(a)           such indebtedness and all interest
thereon and all liens, security interests and rights now or hereafter existing
with respect to property of Borrowers securing such indebtedness shall, at all
times, be subordinate in all respects to the Guaranteed Obligations and to all
liens, security interests and rights now or hereafter existing to secure the
Guaranteed Obligations;

 

(b)           Guarantor shall not be entitled to
enforce or receive payment, directly or indirectly, of any such indebtedness of
Borrowers to Guarantor (other than trade payables or other customary expenses
incurred in the ordinary course of business) until the Guaranteed Obligations
have been fully and finally paid and performed;

 

(c)           Guarantor hereby assigns and grants
to Administrative Agent, on behalf of the Lenders, a security interest in all
such indebtedness and security therefor, if any, of Borrowers to Guarantor now
existing or hereafter arising by reason of any payment by Guarantor in respect
of the Guaranteed Obligations or the Loan, including any dividends and payments
pursuant to debtor relief or insolvency proceedings referred to below.  In the event of receivership, bankruptcy, reorganization,
arrangement or other debtor relief or insolvency proceedings involving any
Borrower as debtor, Administrative Agent, on behalf of the Lenders, shall have
the right to prove its claim in any such proceeding so as to establish its
rights hereunder and shall have the right to receive directly from the
receiver, trustee or other custodian (whether or not a Default shall have
occurred or be continuing under any of the Loan Documents), dividends and
payments that are payable upon any obligation of Borrowers to Guarantor now
existing or hereafter arising, and to have all benefits of any security
therefor, until the Guaranteed Obligations have been fully and finally paid and
performed.  If, notwithstanding the
foregoing provisions, Guarantor should receive any payment, claim or
distribution that is prohibited as provided above in this Section 6,
Guarantor shall pay the same to Administrative Agent, on behalf of the Lenders,
immediately, Guarantor hereby agreeing that it shall receive the payment, claim
or distribution in trust for Administrative Agent, on behalf of the Lenders,
and shall have absolutely no dominion over the same except to pay it
immediately to Administrative Agent; and

 

(d)           Guarantor shall promptly upon request
of Administrative Agent from time to time execute such documents and perform
such acts as Administrative Agent may require to evidence and perfect its
interest and to permit or facilitate exercise of its rights under this Section 6,
including, but not limited to, execution and delivery of financing 

 

7

statements, proofs of claim,
further assignments and security agreements, and delivery to Administrative
Agent of any promissory notes or other instruments evidencing indebtedness of
Borrowers to Guarantor.  All promissory
notes, accounts receivable ledgers or other evidences, now or hereafter held by
Guarantor, of obligations of Borrowers to Guarantor shall contain a specific
written notice thereon that the indebtedness evidenced thereby is subordinated
under and is subject to the terms of this Guaranty.

 

                7.             Other
Liability of Guarantor or Borrowers.  If Guarantor is or becomes liable, by
endorsement or otherwise, for any indebtedness owing by Borrowers to
Administrative Agent and the Lenders other than under this Guaranty, such
liability shall not be in any manner impaired or affected hereby, and the
rights of Administrative Agent and the Lenders hereunder shall be cumulative of
any and all other rights that Administrative Agent and the Lenders may have
against Guarantor.  If Borrowers are or
become indebted to Lenders for any indebtedness other than or in excess of the
Indebtedness for which Guarantor is liable under this Guaranty, any payment
received or recovery realized upon such other indebtedness of Borrowers to
Lenders may, except to the extent paid by Guarantor on the Indebtedness or
specifically required by law or agreement of Administrative Agent to be applied
to the Indebtedness, in Administrative Agent’s sole discretion, be applied upon
indebtedness of Borrowers to Lenders other than the Indebtedness.  This Guaranty is independent of (and shall
not be limited by) any other guaranty now existing or hereafter given.  Further, Guarantor’s liability under this
Guaranty is in addition to any and all other liability Guarantor may have in
any other capacity, including without limitation, its capacity as a general
partner.

 

                8.             Lenders’
Assigns.  This Guaranty is
for the benefit of Administrative Agent and the Lenders and their successors
and assigns, and in the event of an assignment of the Guaranteed Obligations,
or any part thereof, the rights and benefits hereunder, to the extent
applicable to the Guaranteed Obligations so assigned, may be transferred with
such Guaranteed Obligations. Guarantor waives notice of any transfer or
assignment of the Guaranteed Obligations, or any part thereof, and agrees that
failure to give notice of any such transfer or assignment will not affect the
liabilities of Guarantor hereunder.

 

                9.             Binding Effect.  This Guaranty is binding not only on Guarantor,
but also on Guarantor’s successors and assigns. 
Upon the death of Guarantor, if Guarantor is a natural person, this
Guaranty shall continue against Guarantor’s estate as to all of the Guaranteed
Obligations, including that portion incurred or arising after the death of
Guarantor and shall be provable in full against Guarantor’s estate, whether or
not the Guaranteed Obligations are then due and payable.  If this Guaranty is signed by more than one
Person, then all of the obligations of Guarantor arising hereunder shall be
jointly and severally binding on each of the undersigned, and their respective
heirs, personal representatives, successors and assigns, and the term “Guarantor”
shall mean all of such Persons and each of them individually.

 

                10.           Governing Law; Forum;
Consent to Jurisdiction.  
The validity, enforcement, and interpretation of this Guaranty, shall
for all purposes be governed by and construed in accordance with the laws of
the State of Texas and applicable United States federal law, and is intended to
be performed in accordance with, and only to the extent permitted by, such
laws.  All obligations of Guarantor
hereunder are payable and performable at the place or places where the 

 

8

Guaranteed Obligations are payable and
performable.  Guarantor hereby
irrevocably submits generally and unconditionally for Guarantor and in respect
of Guarantor’s property to the nonexclusive jurisdiction of any state court, or
any United States federal court, sitting in the state specified in the first
sentence of this Section and to the jurisdiction of any state or United
States federal court sitting in the state in which any of the Land is located,
over any suit, action or proceeding arising out of or relating to this Guaranty
or the Guaranteed Obligations.  
Guarantor hereby irrevocably waives, to the fullest extent permitted by
law, any objection that Guarantor may now or hereafter have to the laying of
venue in any such court and any claim that any such court is an inconvenient
forum.  Final judgment in any such suit,
action or proceeding brought in any such court shall be conclusive and binding
upon Guarantor and may be enforced in any court in which Guarantor is subject
to jurisdiction.  Guarantor hereby agrees
and consents that, in addition to any methods of service of process provided
for under applicable law, all service of process in any such suit, action or
proceeding in any state court, or any United States federal court, sitting in
the state specified in the first sentence of this Section may be made by
certified or registered mail, return receipt requested, directed to Guarantor
at the address set forth at the end of this Guaranty, or at a subsequent
address of which Administrative Agent receives actual notice from Guarantor in
accordance with the notice provisions hereof, and service so made shall be
complete five (5) days after the same shall have been so mailed.  Nothing herein shall affect the right of
Administrative Agent to serve process in any manner permitted by law or limit
the right of Administrative Agent, on behalf of the Lenders, to bring
proceedings against Guarantor in any other court or jurisdiction.  Guarantor hereby releases, to the extent permitted
by applicable law, all errors and all rights of exemption, appeal, stay of
execution, inquisition, and other rights to which the Guarantor may otherwise
be entitled under the laws of the United States of America or any State or
possession of the United States of America now in force or which may
hereinafter be enacted.  The authority
and power to appear for and enter judgment against the Guarantor shall not be
exhausted by one or more exercises thereof or by any imperfect exercise thereof
and shall not be extinguished by any judgment entered pursuant thereto. Such
authority may be exercised on one or more occasions or from time to time in the
same or different jurisdiction as often as the Administrative Agent shall deem
necessary and desirable.

 

                11.           Invalidity of Certain
Provisions. If any provision of this Guaranty or the application
thereof to any Person or circumstance shall, for any reason and to any extent,
be declared to be invalid or unenforceable, neither the remaining provisions of
this Guaranty nor the application of such provision to any other Person or
circumstance shall be affected thereby, and the remaining provisions of this
Guaranty, or the applicability of such provision to other Persons or
circumstances, as applicable, shall remain in effect and be enforceable to the
maximum extent permitted by applicable law.

 

                12.           Attorneys’ Fees and Costs
of Collection.  Guarantor
shall pay on demand all attorneys’ fees and all other costs and expenses
incurred by Administrative Agent, on behalf of the Lenders, in the enforcement
of or preservation of the Lenders’ rights under this Guaranty including,
without limitation, all attorneys’ fees and expenses, investigation costs, and
all court costs, whether or not suit is filed hereon, or whether at maturity or
by acceleration, or whether before or after maturity, or whether in connection
with bankruptcy, insolvency or appeal, or whether in connection with the
collection and enforcement of this Guaranty against any other Guarantor, if
there be more than one.  Guarantor agrees
to pay interest on any expenses or other 

 

9

sums due to Administrative Agent under this Section 12
that are not paid when due, at a rate per annum equal to the Past Due
Rate.  Guarantor’s obligations and
liabilities under this Section 12 shall survive any payment or
discharge in full of the Guaranteed Obligations.

 

                13.           Payments.  All sums payable under this Guaranty shall be
paid in lawful money of the United States of America that at the time of
payment is legal tender for the payment of public and private debts.

 

                14.           Controlling Agreement.  It is not the intention of Administrative
Agent, the Lenders or Guarantor to obligate Guarantor to pay interest in excess
of that lawfully permitted to be paid by Guarantor under applicable law.   Should it be determined that any portion of
the Guaranteed Obligations or any other amount payable by Guarantor under this
Guaranty constitutes interest in excess of the maximum amount of interest that
Guarantor, in Guarantor’s capacity as guarantor, may lawfully be required to
pay under applicable law, the obligation of Guarantor to pay such interest
shall automatically be limited to the payment thereof in the maximum amount so
permitted under applicable law.  The
provisions of this Section 14 shall override and control all other
provisions of this Guaranty and of any other agreement between Guarantor,
Administrative Agent, and the Lenders.

 

                15.           Representations,
Warranties, and Covenants of Guarantor.  Guarantor hereby represents, warrants, and
covenants to Administrative Agent and the Lenders that (a) Guarantor owns,
directly or indirectly, an interest in Borrowers and will derive a material and
substantial benefit, directly or indirectly, from the making of the Loan to
Borrowers and from the making of this Guaranty by Guarantor; (b) this
Guaranty is duly authorized and valid, and is binding upon and enforceable
against Guarantor; (c) Guarantor is not, and the execution, delivery and
performance by Guarantor of this Guaranty will not cause Guarantor to be, in
violation of any law or in default (or at risk of acceleration of indebtedness)
under any agreement or restriction by which Guarantor is bound or affected; (d) Guarantor
is duly organized, validly existing, and in good standing under the laws of the
state of its organization and has full power and authority to enter into and
perform this Guaranty; (e) Guarantor shall preserve and keep in full force
and effect its entity status, franchises, rights and privileges under the laws
of the state of its formation; (f) Guarantor will indemnify Administrative
Agent and the Lenders from any loss, cost or expense as a result of any
representation or warranty of the Guarantor being false, incorrect, incomplete
or misleading in any material respect; (g) except as disclosed pursuant to
the Credit Agreement, there is no litigation pending or, to the knowledge of
Guarantor, threatened before or by any tribunal against or affecting Guarantor;
(h) all financial statements and information regarding Guarantor heretofore
furnished to Administrative Agent by Guarantor do, and all financial statements
and such information hereafter furnished to Administrative Agent by Guarantor
will, fairly and accurately present the condition (financial or otherwise) of
Guarantor as of their dates and the results of Guarantor’s operations for the
periods therein specified, and, since the date of the most recent financial
statements of Guarantor heretofore furnished to Administrative Agent, no
material adverse change has occurred in the financial condition of Guarantor,
nor, except as heretofore disclosed in writing to Administrative Agent, has
Guarantor incurred any material liability, direct or indirect, fixed or
contingent except liabilities incurred in the ordinary course of business; (i) after
giving effect to this Guaranty, Guarantor is solvent, is not engaged or about
to engage in business or a transaction for which the 

 

10

 

property of Guarantor is an unreasonably
small capital, and does not intend to incur or believe that it will incur debts
that will be beyond its ability to pay as such debts mature; (j) neither
Administrative Agent nor the Lenders have any duty at any time to investigate
or inform Guarantor of the financial or business condition or affairs of
Borrowers or any change therein, and Guarantor will keep fully apprised of  Borrowers’ financial and business condition; (k) Guarantor
acknowledges and agrees that Guarantor may be required to pay and perform the
Guaranteed Obligations in full without assistance or support from Borrowers or
any other Person; (l) Guarantor has read and fully understands the
provisions contained in the Note, the Credit Agreement, the Deed of Trust, and
the other Loan Documents; and (m) provided that no Default has occurred
and is continuing beyond applicable notice and cure periods, if any, Guarantor
shall be permitted to pay dividends in amounts reasonably determined by
Guarantor, provided that (1) Guarantor will be in compliance with (i) all
applicable provisions of the Internal Revenue Code of 1986, as amended,
reformed or otherwise modified from time to time; and (ii) Guarantor’s
bylaws and operating covenants and (2) Guarantor has distributed dividends
in such amounts as may be necessary to retain its operating status as a real
estate investment trust; and (n)  after and during the continuance of a
Default, Guarantor shall be permitted to pay dividends in amounts approved by
Administrative Agent and only if (1) Guarantor will be in compliance with (i) all
applicable provisions of the Internal Revenue Code of 1986, as amended,
reformed or otherwise modified from time to time; and (ii) Guarantor’s
bylaws and operating covenants and (2) distribution of such dividends are
necessary to retain its operating status as a real estate investment
trust.  Guarantor’s representations,
warranties and covenants are a material inducement to Administrative Agent and
the Lenders to enter into the other Loan Documents and shall survive the
execution hereof and any bankruptcy, foreclosure, transfer of security or other
event affecting Borrowers, Guarantor, any other party, or any security for all
or any part of the Guaranteed Obligations.

 

                16.           Notices.  All notices, requests, consents, demands and
other communications required or which any party desires to give hereunder or
under any other Loan Document shall be in writing and, unless otherwise
specifically provided in such other Loan Document, shall be deemed sufficiently
given or furnished if delivered by personal delivery, by courier, or by
registered or certified United States mail, postage prepaid, addressed to the
party to whom directed at the addresses specified in this Guaranty (unless
changed by similar notice in writing given by the particular party whose address
is to be changed) or by facsimile with a confirmatory duplicate copy sent by
first class United States mail), addressed to the party to whom directed or by
electronic mail address, at the addresses set forth at the end of this
Agreement or to Administrative Agent or the Lenders at the addresses specified
for notices in the Credit Agreement (unless changed by similar notice in
writing given by the particular party whose address is to be changed).  Any such notice or communication shall be
deemed to have been given either at the time of personal delivery or, in the
case of courier or mail, as of the date of first attempted delivery at the
address and in the manner provided herein, or, in the case of facsimile, upon
receipt; provided that, service of a notice required by any applicable statute
shall be considered complete when the requirements of that statute are
met.  Notwithstanding the foregoing, no
notice of change of address shall be effective except upon actual receipt.  This Section shall not be construed in
any way to affect or impair any waiver of notice or demand provided in this
Guaranty or in any Loan Document or to require giving of notice or demand to or
upon any Person in any situation or for any reason.

 

 

11

 

17.           Cumulative Rights.  The exercise by Administrative Agent, on
behalf of the Lenders, of any right or remedy hereunder or under any other Loan
Document, or at law or in equity, shall not preclude the concurrent or
subsequent exercise of any other right or remedy.  Administrative Agent, on behalf of the
Lenders, shall have all rights, remedies and recourses afforded to the Lenders
by reason of this Guaranty or any other Loan Document or by law or equity or
otherwise, and the same (a) shall be cumulative and concurrent, (b) may
be pursued separately, successively or concurrently against Guarantor or others
obligated for the Guaranteed Obligations, or any part thereof, or against any
one or more of them, or against any security or otherwise, at the sole and absolute
discretion of Administrative Agent, on behalf of the Lenders, (c) may be
exercised as often as occasion therefor shall arise, it being agreed by
Guarantor that the exercise of, discontinuance of the exercise of or failure to
exercise any of such rights, remedies, or recourses shall in no event be
construed as a waiver or release thereof or of any other right, remedy, or
recourse, and (d) are intended to be, and shall be, nonexclusive.  No waiver of any default on the part of
Guarantor or of any breach of any of the provisions of this Guaranty or of any
other document shall be considered a waiver of any other or subsequent default
or breach, and no delay or omission in exercising or enforcing the rights and
powers granted herein or in any other document shall be construed as a waiver
of such rights and powers, and no exercise or enforcement of any rights or
powers hereunder or under any other document shall be held to exhaust such
rights and powers, and every such right and power may be exercised from time to
time. The granting of any consent, approval or waiver by Administrative Agent,
on behalf of the Lenders, shall be limited to the specific instance and purpose
therefor and shall not constitute consent or approval in any other instance or
for any other purpose.  No notice to or
demand on Guarantor in any case shall of itself entitle Guarantor to any other
or further notice or demand in similar or other circumstances.  No provision of this Guaranty or any right,
remedy or recourse of Administrative Agent and the Lenders with respect hereto,
or any default or breach, can be waived, nor can this Guaranty or Guarantor be
released or discharged in any way or to any extent, except specifically in each
case by a writing intended for that purpose (and which refers specifically to
this Guaranty) executed, and delivered to Guarantor, by Administrative Agent,
on behalf of the Lenders.

 

18.           Term of Guaranty.  This Guaranty shall continue in effect until
all the Guaranteed Obligations are fully and finally paid, performed and
discharged, except that, and notwithstanding any return of this Guaranty to
Guarantor, this Guaranty shall continue in effect (i) with respect to any
of the Guaranteed Obligations that survive the full and final payment of the
indebtedness evidenced by the Note, (ii) with respect to all obligations
and liabilities of Guarantor under Section 12 and (iii) as
provided in Section 4(b).

 

19.           Financial Statements.

 

(a)           As used in this Section, “Financial
Statements” means a balance sheet, income statement, statements of cash
flow and amount and sources of contingent liabilities, a reconciliation of
changes in equity and liquidity verification, and, unless Administrative Agent
otherwise consents, consolidated statements if the reporting party is a holding
company or a parent of a subsidiary entity. 
Each party for whom Financial Statements are required is a “reporting
party” and a specified period to which the required Financial Statements relate
is a “reporting period”.

 

12

 

(b)           Guarantor shall provide or cause to
be provided to Administrative Agent the following:

 

(i)            within one hundred twenty (120) days
after the close of each fiscal year of Guarantor  annual, audited Financial Statements of
Guarantor;

 

(ii)           within sixty (60) days after the
close of each quarter of each fiscal year of Guarantor quarterly, unaudited Financial Statements
of Guarantor;

 

(iii)          if applicable, copies of all
Securities and Exchange Commission (“SEC”) Form 10-K and 10-Q reports
filed with the SEC for Guarantor and its Subsidiaries as and when the same are
so filed with the SEC;

 

(iv)          within sixty (60) days after the end
of each calendar quarter (i.e., each March 31, June 30, September 30
and December 31) of each calendar year during the term of the Loan, a
Compliance Certificate for Guarantor, executed by any executive level officer
of Guarantor, in the form of that attached hereto as Exhibit A (“Compliance
Certificate”) evidencing Guarantor’s compliance (or non-compliance, as applicable)
with the covenants in this Section 19; and

 

(v)           from time to time promptly after
Administrative Agent’s request, such additional information, reports and
statements regarding the business operations and financial condition of each
reporting party as Administrative Agent may reasonably request.

 

All Financial Statements
shall be in form and detail satisfactory to Administrative Agent in its good
faith business judgment and shall contain or be attached to the signed and
dated written certification of the reporting party in form satisfactory to
Administrative Agent to certify that the Financial Statements have been
prepared in accordance with GAAP and are furnished to Administrative Agent in
connection with the extension of credit by Administrative Agent and the
Lenders, and constitute a true and correct statement of the reporting party’s
financial position.  Administrative Agent
agrees that the Financial Statements of Guarantor delivered to Administrative
Agent in satisfaction of the conditions to closing and funding of the Loan are
satisfactory as to form, detail and accounting principles used therein and
Financial Statements to be provided in satisfaction of the requirements of this
Guaranty shall be satisfactory to Administrative Agent as to form, detail and
accounting principles if consistent with such Financial Statements.  All certifications and signatures on behalf
of corporations, partnerships or other entities shall be by an authorized
representative of the entity satisfactory to Administrative Agent in its good
faith business judgment.  Except as
provided in Section 19(b) above, all Financial Statements
shall be audited or certified, as required by Administrative Agent, without any
qualification or exception not acceptable to Administrative Agent in its good
faith business judgment, by Travis, Wolff & Company, L.L.P. or another
independent certified public accountants acceptable to Administrative Agent,
and shall contain all reports and disclosures required by generally accepted
accounting principles for a fair presentation. All assets shown on the
Financial Statements provided by Guarantor, unless clearly designated to the
contrary shall, be conclusively deemed to be free and clear of any exemption or
any claim of exemption of Guarantor at the date of the Financial Statements and
at all times thereafter. Acceptance of any 

 

 

13

 

Financial
Statement by Administrative Agent, whether or not in the form prescribed
herein, shall be relied upon by Administrative Agent and the Lenders in the
administration, enforcement, and extension of the Guaranteed Obligations.

 

(c)           Guarantor covenants and agrees with
Administrative Agent and the Lenders that it will comply with the following:

 

(i)            Guarantor will maintain, as of each
Test Date during the term of the Loan, Liquid Assets of at least $5,000,000.00;

 

(ii)           Guarantor will maintain, as of each
Test Date during the term of the Loan, a Tangible Net Worth of not less than
$242,000,000.00;

 

(iii)          As of each Test Date during the term
of the Loan, the ratio (expressed as a percentage) of (A) all Liabilities
of Guarantor for the calendar quarter ending on such Test Date, to (B) all
assets of Guarantor determined in accordance with GAAP for the calendar quarter
ending on the same Test Date, shall not be greater than seventy-five percent
(75%).

 

(d)           For purposes of this Section 19,
the following capitalized terms have the meanings set forth below:

 

“GAAP” means
generally accepted accounting principles in the United States set forth in the
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or such other principles as may be approved
by a significant segment of the accounting profession in the United States,
that are applicable to the circumstances as of the date of determination,
consistently applied.

 

“Liabilities” means,
as to Guarantor, without duplication, all indebtedness, liabilities and
obligations of Guarantor, whether matured or unmatured, liquidated or
unliquidated, primary or secondary, direct or indirect, absolute, fixed or
contingent, and whether or not required to be considered pursuant to GAAP.

 

“Liquid Assets” means
the sum of the total assets of Guarantor that are cash, cash equivalents,
accounts and other highly liquid investments that are not pledged,
hypothecated, subject to rights of offset (other than pursuant to customary
banker’s liens with respect to deposit or similar accounts not maintained for
the purpose of providing security) or otherwise restricted.

 

“Tangible Net Worth”
shall mean the excess of total assets over total liabilities (contingent or
otherwise, including without limitation, declared and unpaid distributions to
partners of Guarantor) determined in accordance with GAAP; excluding, however,
all assets that are classified under GAAP as intangible, including, without
limitation, goodwill, licenses, patents, trademarks, trade names, copyrights and
franchises.

 

“Test Date” shall
mean, the last date of each calendar quarter (i.e., every December 31st, March 31st,
June 30th and September 30th) during the term of the Loan.

 

 

14

 

20.           Disclosure of Information.  Lenders may sell or offer to sell the Loan or
interests in the Loan to one or more assignees or participants and may disclose
to any such assignee or participant or prospective assignee or participant, to
Lenders’ affiliates, to any regulatory body having jurisdiction over Lenders
and to any other parties as necessary or appropriate in any Lender’s reasonable
judgment, any information Lenders now have or hereafter obtain pertaining to
the Guaranteed Obligations, this Guaranty, or Guarantor, including, without
limitation, information regarding any security for the Guaranteed Obligations
or for this Guaranty, credit or other information on Guarantor, Borrowers,
and/or any other party liable, directly or indirectly, for any part of the
Guaranteed Obligations.  Any disclosures
by Lenders or Administrative Agent pursuant to this Section 20
shall be made in compliance with the provisions of Section 6.6 of the
Credit Agreement.

 

21.           Right of Set-Off.  Upon the occurrence and during the
continuance of any Default, however defined, in the payment or performance when
due of any of the Guaranteed Obligations, each Lender is hereby authorized at
any time and from time to time with prior notice to and consent of
Administrative Agent, to the fullest extent permitted by applicable law,
without notice to any Person (any such notice being expressly waived by
Guarantor to the fullest extent permitted by applicable law), to set off and
apply any and all deposits, funds, or assets at any time held and other
indebtedness at any time owing by such Lender to or for the credit or the
account of Guarantor against any and all of the obligations of Guarantor now or
hereafter existing under this Guaranty that are then due and payable.  Such Lender will promptly notify Guarantor
after any such set-off and application made by such Lender, provided that the
failure to give such notice shall not affect the validity of such set-off and
application.  The rights of Lenders under
this Section 21 are in addition to the other rights and remedies
(including other rights of set-off) that Administrative Agent may have, on
behalf of all Lenders, and every right of setoff and lien shall continue in
full force and effect until such right of setoff or lien is specifically waived
or released by an instrument in writing executed by Administrative Agent.

 

22.           Subrogation.  Notwithstanding anything to the contrary
contained herein, Guarantor shall not have any right of subrogation in or under
any of the Loan Documents or to participate in any way therein, or in any
right, title or interest in and to any security or right of recourse for the
Indebtedness or any right to reimbursement, exoneration, contribution,
indemnification or any similar rights against any party liable for the
Indebtedness, until the Indebtedness has been fully paid.  This waiver is given to induce Lenders to
make the Loan to Borrowers.

 

23.           Further Assurances.  Guarantor at Guarantor’s expense will
promptly execute and deliver to Administrative Agent upon Administrative Agent’s
request all such other and further documents, agreements, and instruments in
compliance with or accomplishment of the agreements of Guarantor under this
Guaranty.

 

24.           No Fiduciary Relationship.  The relationship between Administrative Agent
and the Lenders, on the one hand, and Guarantor, on the other hand, is solely
that of lender and guarantor. 
Administrative Agent and the Lenders have no fiduciary or other special
relationship with or duty to Guarantor and none is created hereby or may be
inferred from any course of dealing or act or omission of Administrative Agent
or Lender.

 

 

15

 

25.           Interpretation.  If this Guaranty is signed by more than one
Person as “Guarantor”, then the term “Guarantor” as used in this Guaranty shall
refer to all such Persons, jointly and severally, and all promises, agreements,
covenants, waivers, consents, representations, warranties and other provisions
in this Guaranty are made by and shall be binding upon each and every such
Person, jointly and severally and Administrative Agent, on behalf of all
Lenders, may pursue any Guarantor hereunder without being required (i) to
pursue any other Guarantor hereunder or (ii) pursue rights and remedies
under the Deed of Trust and/or applicable law with respect to each Project or
any other Loan Documents.  The term “Administrative
Agent” shall be deemed to include any subsequent administrative agent appointed
under the Credit Agreement.  Whenever the
context of any provisions hereof shall require it, words in the singular shall
include the plural, words in the plural shall include the singular, and
pronouns of any gender shall include the other gender. Captions and headings in
the Loan Documents are for convenience only and shall not affect the construction
of the Loan Documents.  All references in
this Guaranty to Schedules, Articles, Sections, Subsections, paragraphs and
subparagraphs refer to the respective subdivisions of this Guaranty, unless
such reference specifically identifies another document.  The terms “herein”, “hereof”, “hereto”, “hereunder”
and similar terms refer to this Guaranty and not to any particular Section or
subsection of this Guaranty.  The terms “include”
and “including” shall be interpreted as if followed by the words “without limitation”.  All references in this Guaranty to sums
denominated in dollars or with the symbol “$” refer to the lawful currency of
the United States of America, unless such reference specifically identifies
another currency.  For purposes of this
Guaranty, “Person” or “Persons” shall include firms, associations, partnerships
(including limited partnerships), joint ventures, trusts, corporations, limited
liability companies, and other legal entities, including governmental bodies,
agencies, or instrumentalities, as well as natural persons.

 

26.           Time of Essence.  Time shall be of the essence in this Guaranty
with respect to all of Guarantor’s obligations hereunder.

 

27.           Counterparts.  This Guaranty may be executed in multiple
counterparts, each of which, for all purposes, shall be deemed an original, and
all of which taken together shall constitute but one and the same agreement.

 

28.           Entire Agreement.  This Guaranty embodies the entire agreement
between Administrative Agent, the Lenders and Guarantor with respect to the
guaranty by Guarantor of the Guaranteed Obligations.  This Guaranty supersedes all prior agreements
and understandings, if any, with respect to the guaranty by Guarantor of the
Guaranteed Obligations.  No condition or
conditions precedent to the effectiveness of this Guaranty exist.  This Guaranty shall be effective upon
execution by Guarantor and delivery to Administrative Agent.  This Guaranty may not be modified, amended or
superseded except in a writing signed by Administrative Agent, on behalf of the
Lenders, and Guarantor referencing this Guaranty by its date and specifically
identifying the portions hereof that are to be modified, amended or superseded.

 

29.           Dispute
Resolution.

 

(a)           Arbitration.  Except to the extent expressly provided below,
any controversy, claim or dispute between or among the parties hereto,
including any such controversy, claim or dispute arising out of or relating to (i) this
Guaranty, (ii) any other 

 

16

 

Loan Document, (iii) any
related agreements or instruments, or (iv) the transaction contemplated
herein or therein (including any claim based on or arising from an alleged
personal injury or business tort) (collectively, a “Dispute”), shall,
upon the request of either party, be determined by binding arbitration in
accordance with the Federal Arbitration Act, Title 9, United States Code (or if
not applicable, the applicable state law), the then current rules for
arbitration of financial services disputes of the American Arbitration
Association, or any successor thereof (“AAA”), and the “Special Rules”
set forth below.  In the event of any
inconsistency, the Special Rules shall control.  The filing of a court action is not intended
to constitute a waiver of the right of Guarantor or Lenders, including the
suing party, thereafter to require submittal of the Dispute to
arbitration.  Any party to this Guaranty
may bring an action, including a summary or expedited proceeding, to compel arbitration
of any Dispute in any court having jurisdiction over such action.  For the purposes of this Dispute Resolution Section only,
the terms “party” and “parties” shall include any parent corporation,
subsidiary or affiliate of Lenders involved in the servicing, management or
administration of any obligation described in or evidenced by this Guaranty,
together with the officers, employees, successors and assigns of each of the
foregoing.

 

(b)           Special Rules.

 

(i)            The arbitration shall be conducted in the City of Dallas,
Texas.

 

(ii)           The arbitration shall be administered by AAA, who will
appoint an arbitrator; if AAA is unwilling or unable to administer or legally
precluded from administering the arbitration or if AAA is unwilling or unable
to enforce or legally precluded from enforcing any and all provisions of this
Dispute Resolution Section, then any party to this Guaranty may substitute,
without the necessity of the agreement of consent of the other party or
parties, another arbitration organization that has similar procedures to AAA
but that will observe and enforce any and all provisions of this Dispute
Resolution Section.  All Disputes shall
be determined by one arbitrator; however, if the amount in controversy in a
Dispute exceeds Five Million Dollars ($5,000,000), upon the request of any party,
the Dispute shall be decided by three arbitrators (for purposes of this
Guaranty, referred to collectively as the “arbitrator”).

 

(iii)          All arbitration hearings will be commenced within ninety
(90) days of the demand for arbitration and completed within ninety (90) days
from the date of commencement; provided, however, that upon a showing of good
cause, the arbitrator shall be permitted to extend the commencement of such
hearing for up to an additional sixty (60) days.

 

(iv)          The judgment and the award, if any, of the arbitrator shall
be issued within thirty (30) days of the close of the hearing.  The arbitrator shall provide a concise
written statement setting forth the reasons for the judgment and for the award,
if any.  The arbitration award, if any,
may be submitted to any court having jurisdiction to be confirmed and enforced,
and such confirmation and enforcement shall not be subject to arbitration.

 

 

17

 

(v)           The arbitrator will give effect to statutes of
limitations and any waivers thereof in determining the disposition of any
Dispute and may dismiss one or more claims in the arbitration on the basis that
such claim or claims is or are barred. 
For purposes of the application of the statute of limitations, the
service on AAA under applicable AAA rules of a notice of Dispute is the
equivalent of the filing of a lawsuit.

 

(vi)          Any dispute concerning this Dispute Resolution Section,
including any such dispute as to the validity or enforceability of this provision,
or whether a Dispute is arbitrable, shall be determined by the arbitrator;
provided, however, that the arbitrator shall not be permitted to vary the
express provisions of the Special Rules or the Reservation of Rights in subsection
(c) below.

 

(vii)         The arbitrator shall have the power to award legal fees and
costs pursuant to the terms of this Guaranty.

 

(viii)        The arbitration will take place on an
individual basis without reference to, resort to, or consideration of any form
of class or class action.

 

(c)           Reservations of Rights.  Nothing in this Guaranty shall be deemed to (i) limit
the applicability of any otherwise applicable statutes of limitation and any
waivers contained in this Guaranty, or (ii) apply to or limit the right of
Administrative Agent, on behalf of the Lenders, or any Lender, (A) to
exercise self help remedies such as (but not limited to) setoff, or (B) to
foreclose judicially or nonjudicially against any real or personal property
collateral, or to exercise judicial or nonjudicial power of sale rights,  (C) to obtain from a court provisional
or ancillary remedies such as (but not limited to) injunctive relief, writ of
possession, prejudgment attachment, or the appointment of a receiver , or (D) to
pursue rights against a party to this Guaranty in a third-party proceeding in
any action brought against Administrative Agent or any Lender in a state,
federal or international court, tribunal or hearing body (including actions in
specialty courts, such as bankruptcy and patent courts).  Administrative Agent, on behalf of the
Lenders, may exercise the rights set forth in clauses (A) through (D),
inclusive, and Lenders may exercise the right of setoff, before, during or
after the pendency of any arbitration proceeding brought pursuant to this
Guaranty.  Neither the exercise of self
help remedies nor the institution or maintenance of an action for foreclosure
or provisional or ancillary remedies shall constitute a waiver of the right of
any party, including the claimant in any such action, to arbitrate the merits
of the Dispute occasioning resort to such remedies.  No provision in the Loan Documents regarding
submission to jurisdiction and/or venue in any court is intended or shall be
construed to be in derogation of the provisions in any Loan Document for
arbitration of any Dispute.

 

(d)           Conflicting Provisions for Dispute
Resolution.  If there is any conflict
between the terms, conditions and provisions of this Section and those of
any other provision or agreement for arbitration or dispute resolution, the
terms, conditions and provisions of this Section shall prevail as to any
Dispute arising out of or relating to (i) this Guaranty, (ii) any
other Loan Document, (iii) any related agreements or instruments, or (iv) the
transaction contemplated herein or therein (including any claim based on or
arising from an alleged personal injury or business tort).  In any other situation, if the 

 

18

 

resolution of a given
Dispute is specifically governed by another provision or agreement for
arbitration or dispute resolution, the other provision or agreement shall
prevail with respect to said Dispute.

 

(e)           Jury Trial Waiver in Arbitration.  By agreeing to this Section, the parties
irrevocably and voluntarily waive any right they may have to a trial by jury in
respect of any Dispute.

 

30.           WAIVER OF JURY TRIAL.  WITHOUT INTENDING IN ANY
WAY TO LIMIT THE PARTIES’ AGREEMENT TO ARBITRATE ANY “DISPUTE” (FOR PURPOSES OF
THIS SECTION, AS DEFINED ABOVE) AS SET FORTH IN THIS GUARANTY, TO THE EXTENT
ANY “DISPUTE” IS NOT SUBMITTED TO ARBITRATION OR IS DEEMED BY THE ARBITRATOR OR
BY ANY COURT WITH JURISDICTION TO BE NOT ARBITRABLE OR NOT REQUIRED TO BE
ARBITRATED, GUARANTOR AND ADMINISTRATIVE AGENT, ON BEHALF OF ALL LENDERS, WAIVE
TRIAL BY JURY IN RESPECT OF ANY SUCH “DISPUTE” AND ANY ACTION ON SUCH “DISPUTE.”  THIS WAIVER IS KNOWINGLY, WILLINGLY AND
VOLUNTARILY MADE BY GUARANTOR AND ADMINISTRATIVE AGENT, ON BEHALF OF ALL
LENDERS, AND GUARANTOR AND ADMINISTRATIVE AGENT HEREBY REPRESENT THAT NO
REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY PERSON OR ENTITY
ACTING FOR OR ON BEHALF OF ADMINISTRATIVE AGENT OR LENDERS TO INDUCE THIS
WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR
THE PARTIES ENTERING INTO THE LOAN DOCUMENTS. 
GUARANTOR AND ADMINISTRATIVE AGENT ARE EACH HEREBY AUTHORIZED TO FILE A
COPY OF THIS SECTION IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS
WAIVER OF JURY TRIAL.  GUARANTOR FURTHER
REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS
GUARANTY AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS
HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL COUNSEL SELECTED OF
ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER
WITH COUNSEL.

 

31.           Credit
Verification.  Each legal
entity and individual obligated on this Guaranty, whether as a Guarantor, a
general partner of a Guarantor or in any other capacity, hereby authorizes
Administrative Agent and each Lender to check any credit references, verify
his/her employment and obtain credit reports from credit reporting agencies of
Administrative Agent’s and such Lender’s choice in connection with any
monitoring, collection or future transaction concerning the Loan, including any
modification, extension or renewal of the Loan. 
Also in connection with any such monitoring, collection or future
transaction, Administrative Agent and each Lender is hereby authorized to check
credit references, verify employment and obtain a third party credit report for
the spouse of any married person obligated on this Guaranty, if such person
lives in a community property state.

 

 

19

 

THE LOAN DOCUMENTS REPRESENT THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

 

[REMAINDER OF THIS PAGE
INTENTIONALLY LEFT BLANK]

 

 

20

 

 

IN WITNESS WHEREOF,
Guarantor duly executed this Guaranty under seal as of the date first written
above.

 

	
  Address
  of Guarantor: 

   

  Behringer
  Harvard Opportunity REIT I, Inc. 

  15601
  Dallas Parkway, Suite 600 

  Dallas,
  TX 75001 

  Attention:
  Gerald J. Reihsen, III

  	
  GUARANTOR: 

   

  BEHRINGER
  HARVARD OPPORTUNITY REIT I, INC., a Maryland corporation

   

  
	
  By:

  	
  /s/
  Gerald J. Reihsen, III

  
	
   

  	
   

  	
  Gerald
  J. Reihsen, III 

  Executive
  Vice President-Corporate Development & Legal and Assistant Secretary

  

 

 

 

 

EXHIBIT “A”

 

FORM OF COMPLIANCE CERTIFICATE

 

COMPLIANCE
CERTIFICATE

 

To:                              Bank of America, N.A., Administrative
Agent (“Administrative Agent”)

901 Main Street, 20th
Floor

Dallas, Texas 75202-3714

Attention: Mr. Brett
Bell

 

Re:                               Credit Agreement dated as of  February         ,
2008 providing for a $75,000,000 revolving line of credit loan (with an option
to increase the amount of the loan to $150,000,000).

 

1.             The
undersigned certifies to Administrative Agent and the other Lenders that he/she
is the Chief Financial Officer of Behringer Harvard Opportunity REIT I, Inc.
(“Guarantor”) or its general partner and that this Compliance
Certificate has been prepared pursuant to the Guaranty Agreement dated as of
                        ,
2007 (“Guaranty”) executed by Guarantor. 
Capitalized terms used herein but not otherwise defined herein shall
have the meanings given to such terms in the Guaranty.

 

2.             The undersigned further certifies
to Administrative Agent and the other Lenders that (i) a review of the
activities of Guarantor, as of the fiscal quarter ending
                                                  ,
(the “Reporting Period”) has been made under my supervision with a view
to determining whether Guarantor has fulfilled all of its obligations during
the Reporting Period under the Guaranty; (ii) Guarantor is in compliance
with all covenants and provisions in the Guaranty, and no Default or Potential
Default has occurred which is continuing.

 

3.             Pursuant to the Guaranty, the
following documents are delivered to Administrative Agent with this Compliance
Certificate and deemed a part of this Compliance Certificate [check appropriate box]:

 

                                                o    Quarterly
Financial Statements, or

 

                                                o    Annual
Financial Statements.

 

The Financial Statements
fairly and accurately present, in all material respects, the financial
condition of Guarantor and its Subsidiaries as of the Reporting Period, and
have been prepared in accordance with GAAP.

 

4.             The undersigned further certifies to Administrative
Agent and the other Lenders that the following amounts and calculations made
pursuant to the Guaranty are true and correct in all material respects, for the
referenced Reporting Period:

 

	
  FINANCIAL COVENANTS

  	
   

  
	
  1.

  	
  Minimum Tangible Net Worth. Guarantor will maintain, as of each
  Test Date during the term of the Loan, a Tangible Net Worth of not less than
  $242,000,000.00. 

   

  Specify Test Date = 

  Actual Minimum Tangible Net
  Worth as of such Test Date = $ 

  In Compliance? Check One:      o Yes      o No

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Minimum Liquidity. Guarantor
  shall have Liquid Assets at least equal to $5,000,000. 

   

  Specify Test Date = 

  Actual Liquid Assets of
  Guarantor as of such Test Date = $ 

  In Compliance? Check One:      o Yes      o No

  	
   

  

 

1

 

	
  3.

  	
  Liabilities/Net
  Worth. As of each Test Date during the term of the Loan,
  the ratio (expressed as a percentage) of (A) all Liabilities of
  Guarantor for the calendar quarter ending on such Test Date, to (B) all assets
  of Guarantor determined in accordance with GAAP for the calendar quarter
  ending on the sameTest Date, shall not be greater than seventy-five percent
  (75%).

   

  Specify Test Date =

  a)    Actual
  Liabilities of Guarantor as of such Test Date = $

  b)   Actual
  GAAP assets of Guarantor as of such Test Date = $

  c)   Ratio
  of Liabilities to assets of Guarantor as of such Test Date =

  In Compliance? Check One:      o Yes      o No

  	
   

  

 

WITNESS the due
execution of this Compliance Certificate on
                        
200  .

 

	
  GUARANTOR:

  
	
   

  
	
  BEHRINGER
  HARVARD OPPORTUNITY REIT I, INC.,

  
	
  a
  Maryland corporation

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 

2

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