Document:

GUARANTY

made by

BEHRINGER HARVARD REIT I,
INC.

as Guarantor,

in favor of

LEHMAN BROTHERS BANK, FSB

 

Dated as of June 21,
2006

 

 

 

 

 

 

 

 

 

 

 

 

GUARANTY

This GUARANTY (this “Guaranty”), dated as
of June 21, 2006, made by BEHRINGER
HARVARD REIT I, INC. a Maryland corporation (“Behringer REIT”),
having an address at Behringer Harvard Holdings, LLC, 15601 Dallas Parkway, Suite 600,
Addison, Texas 75001, (Behringer REIT is sometimes herein referred to as the “Guarantor”), in favor
of LEHMAN BROTHERS BANK, FSB, a
federal stock savings bank, (together with its successors and assigns,
hereinafter referred to as “Lender”), having an address at 600 Steamboat Road,
Greenwich, Connecticut 06830.

R E C I T A L S:

A.   Pursuant to that certain Loan Agreement dated as of the date
hereof (as the same may be amended, modified, supplemented or replaced from
time to time, the “Loan
Agreement”) between Behringer Harvard Terrace LP, a Delaware
limited partnership (the “Borrower”)
and Lender, Lender has agreed to make a loan (the “Loan”) to Borrower in
the maximum principal amount of $131,000,000, subject to the terms and
conditions of the Loan Agreement;

B.   As a condition to Lender’s making the Loan, Lender is requiring
that Guarantor execute and deliver to Lender this Guaranty; and

C.   Guarantor hereby acknowledges that it will materially benefit from
Lender’s agreeing to make the Loan;

NOW,
THEREFORE, in consideration of the premises set forth herein
and as an inducement for and in consideration of the agreement of Lender to
make the Loan pursuant to the Loan Agreement, Guarantor hereby agrees,
covenants, represents and warrants to Lender as follows:

1.    Definitions. All capitalized
terms used and not defined herein shall have the respective meanings given such
terms in the Loan Agreement. The following terms shall have the meanings
ascribed to them below:

“Cirrus Logic” means Cirrus Logic, Inc.
or any successor tenant under the Cirrus Logic Lease.

“Cirrus Logic Lease” means that
certain Lease Agreement by and between Desta Five Partnership, Ltd and Cirrus
Logic, with an effective date of November 10, 2000, as same may be amended
from time to time.

“Cirrus Logic Triggering Event” means
the earlier to occur of (A) the date upon which Cirrus Logic gives notice
that it shall not renew the Cirrus Logic Lease, (B) the failure of Cirrus
Logic to provide notice on or before November 30, 2011 of its intention to
extend the Cirrus Logic Lease pursuant to the terms currently set forth in Exhibit H
of the Cirrus Logic Lease, and (C) the termination of the Cirrus Logic
Lease.

 

“Designated Lease” means any of the
Cirrus Logic Lease, the Vinson & Elkins Lease, the Sigmatel Lease, the
Westech Lease or any Lease related to any Tenant Relocation Event.

“Guaranteed Obligations”
means (i) Borrower’s Recourse Liabilities, (ii) payment and
performance in full of (A) all Capital Expenses and work relating thereto
and (B) all Approved Leasing Expenses with respect to Leases hereafter
executed and all work relating thereto, (iii) if there shall have occurred
any Triggering Event with respect to which a Triggering Event Termination shall
not have occurred, payment of the entire unpaid balance of the Debt (whether
accrued prior to, on or after such date), provided that Guarantor’s liability
under this clause (iii) shall not exceed the Incremental Amount from time
to time outstanding; and (iv) from and after the date that any Springing
Recourse Event occurs, payment of the entire unpaid balance of the Debt
(whether accrued prior to, on or after such date). Guarantor’s obligations
under this Guaranty shall be cumulative, and none of the Guaranteed Obligations
listed in (i) — (iv) shall be deemed to limit Guarantor’s liability
with respect to any of the other Guaranteed Obligations listed in (i) — (iv) or
Guarantor’s liability to pay the Guaranty Limit Amount.

“Guaranty Limit Amount”
shall mean, as of any date of determination, the sum, as of such date after giving
effect to any adjustments thereto made pursuant to the Loan Agreement, of (i) the
Rollover Reserve Offset Amount plus (ii) the Capital Reserve Offset
Amount. Guarantor and Lender hereby acknowledge and agree that the respective
amounts of the Rollover Reserve Offset Amount and/or the Capital Reserve Offset
Amount may be adjusted as provided in the Loan Agreement (whether increased
and/or decreased, all as more specifically set forth therein) one or more
times, from time to time while the Loan is outstanding, and such adjustments
will result in corresponding increases and/or decreases in the Guaranty Limit
Amount, all in accordance with, and subject to, the applicable terms and
provisions set forth in the Loan Agreement.

“Incremental Amount” means the sum of
the following amounts for each Triggering Event that shall have occurred for
which a Triggering Event Termination shall not have occurred: (i) a Cirrus
Logic Triggering Event: $4,917,000, (ii) a Vinson & Elkins
Triggering Event, $2,875,000, (iii) a Sigmatel Triggering Event, $625,000,
(iv) a Westech Triggering Event, $625,000, and (v) each Tenant
Relocation Event, the related Tenant Relocation Incremental Amount.

“Partial Triggering Event Termination” means,
with respect to each Tenant Relocation Event, that a replacement tenant
acceptable to Lender shall have taken occupancy of substantially all of such
replacement tenant’s leased premises, be paying full base rent and be
conducting normal business operations in substantially all of such replacement
tenant’s leased premises pursuant to a Lease acceptable to Lender having a term
of not less than five (5) years.

“Remaining Designated Lease Space” means,
with respect to the premises previously subject to a Designated Lease as to
which a Tenant Relocation Event has occurred, that portion of such premises
with respect to which no Partial Triggering Event Termination has occurred.

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“Sigmatel” means Sigmatel, Inc.
or any successor tenant under the Sigmatel Lease.

“Sigmatel Lease” means that certain
Lease Agreement by and between Desta Two Partnership, Ltd and Sigmatel, with an
effective date of August 6, 1999, as same may be amended from time to
time.

“Sigmatel Triggering Event” means the
earlier to occur of (A) the date upon which Sigmatel gives notice that it shall
not renew the Sigmatel Lease, (B) the failure of Sigmatel to provide
notice on or before August 28,2006 of its intention to extend the Sigmatel
Lease pursuant to the terms currently set forth in Exhibit H of the
Sigmatel Lease, and (C) the termination of the Sigmatel Lease.

“Tenant Relocation Event”:
a “Tenant Relocation Event” shall occur if (1) Borrower or any Affiliate
of Borrower (a) has an ownership interest or right to acquire an ownership
interest in any portion of the Terraces Project and has control over the
leasing at such portion of the Terraces Project and (b) solicits (i.e., makes the initial contract with),
directly or through an agent acting on behalf of Borrower or any Affiliate of
Borrower, any then-existing tenant of the Property to enter into a lease of
such portion of the Terraces Project and (2) the tenant so solicited
leases space at such portion of the Terraces Project contemporaneously with
such tenant’s departure from the Property.

“Tenant Relocation Incremental Amount” means,
with respect to each Tenant Relocation Event, an amount equal to the product of
(i) three (3) times the base annual rent payable by the tenant under
the related Designated Lease during the last full year of the term of such
Lease and (ii) a fraction, the numerator of which is the square footage of
the relevant Remaining Designated Lease Space, and the denominator of which is
the square footage of the leased premises covered by such Designated Lease.

“Terraces Project” means
the property described on Schedule 1 attached hereto.

“Triggering Event” means a Cirrus
Logic Triggering Event, a Vinson & Elkins Triggering Event, a Sigmatel
Triggering Event or a Westech Triggering Event or any Tenant Relocation Event.

“Triggering Event Termination” means
respect to each Triggering Event, that a tenant acceptable to Lender shall have
taken occupancy, be paying full base rent and be conducting normal business
operations in the entire premises covered by the related Designated Lease
pursuant to a Lease acceptable to Lender having a term of not less than five (5) years.

“Vinson & Elkins” means
Vinson & Elkins LLP or any successor tenant under the Vinson &
Elkins Lease.

“Vinson & Elkins Lease” means
that certain Lease Agreement by and between Desta Two Partnership, Ltd and Vinson &
Elkins, with an effective date of September 30, 1999, as same may be
amended from time to time.

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“Vinson & Elkins Triggering Event” means
the earlier to occur of (A) the date upon which Vinson & Elkins
gives notice that it shall not renew the Vinson & Elkins Lease, (B) the
failure of Vinson & Elkins to provide notice on or before March 31,
2014 of its intention to extend the Vinson & Elkins Lease pursuant to
the terms currently set forth in Exhibit H of the Vinson & Elkins
Lease, and (C) the termination of the Vinson & Elkins Lease.

“Westech” means Westech Capital
Corp.,or any successor tenant under the Westech Lease.

“Westech Lease” means that certain
Lease Agreement by and between Desta Two Partnership, Ltd and Westech, with an
effective date of September 30, 1999, as same may be amended from time to
time.

“Westech Triggering Event” means the
earlier to occur of (A) the date upon which Westech gives notice that it
shall not renew the Westech Lease, (B) the failure of Westech to provide
notice on or before March 31, 2006 of its intention to extend the Westech
Lease pursuant to the terms currently set forth in Exhibit H of the
Westech Lease, and (C) the termination of the Westech Lease. Guarantor
acknowledges that a Westech Triggering Event has occurred and that no
Triggering Event Termination has occurred with respect thereto.

2.    Guaranty
and Agreement.

(a)          Guarantor hereby irrevocably,
absolutely and unconditionally guarantees to Lender the full, prompt and
complete payment and performance when due of the Guaranteed Obligations. In
addition to and without limiting the foregoing, Guarantor hereby agrees to pay
to Lender, upon Lender’s demand following the occurrence and during the
continuance of an Event of Default, an amount equal to the Guaranty Limit Amount
as of the date of payment thereof, such Guaranty Limit Amount to be paid from
separate funds of Guarantor and not from post-default cash flow from the
Property.

(b)         All sums payable to Lender under this
Guaranty shall be payable on demand and without reduction for any offset,
claim, counterclaim or defense.

(c)          Guarantor hereby agrees to indemnify,
defend and save harmless Lender from and against any and all costs, losses,
liabilities, claims, causes of action, expenses and damages, including reasonable
attorneys’ fees and disbursements, which Lender may suffer or which otherwise
may arise by reason of Borrower’s failure to pay any of the Guaranteed
Obligations when due, irrespective of whether such costs, losses, liabilities,
claims, causes of action, expenses or damages are incurred by Lender prior or
subsequent to (i) Lender’s declaring the Principal, interest and other
sums evidenced or secured by the Loan Documents to be due and payable, (ii) the
commencement or completion of a judicial or non-judicial foreclosure of the
Security Instrument or (iii) the conveyance of all or any portion of the
Property by deed-in-lieu of foreclosure.

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(d)         Guarantor agrees that no portion of any
sums applied (other than sums received from Guarantor in full or partial satisfaction
of its obligations hereunder), from time to time, in reduction of the Debt
shall be deemed to have been applied in reduction of the Guaranteed Obligations
until such time as the Debt has been paid in full, or Guarantor shall have made
the full payment required hereunder, it being the intention hereof that the
Guaranteed Obligations shall be the last portion of the Debt to be deemed
satisfied.

3.    Representations and Warranties. Guarantor
hereby represents and warrants to Lender as follows (which representations and
warranties shall be given as of the date hereof and shall survive the execution
and delivery of this Guaranty):

(a)          Organization,
Authority and Execution. Guarantor is a corporation duly organized,
validly existing and in good standing under the laws of the State of Maryland,
and has all necessary power and authority to own its properties and to conduct
its business as presently conducted or proposed to be conducted and to enter
into and perform this Guaranty and all other agreements and instruments to be
executed by it in connection herewith. This Guaranty has been duly executed and
delivered by Guarantor.

(b)         Enforceability.
This Guaranty constitutes a legal, valid and binding obligation of
Guarantor, enforceable against Guarantor in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally.

(c)          No
Violation. The execution, delivery and performance by Guarantor of
its obligations under this Guaranty has been duly authorized by all necessary
action, and do not and will not violate any law, regulation, order, writ,
injunction or decree of any court or governmental body, agency or other instrumentality
applicable to Guarantor, or result in a breach of any of the terms, conditions
or provisions of, or constitute a default under, or result in the creation or
imposition of any mortgage, lien, charge or encumbrance of any nature
whatsoever upon any of the assets of Guarantor pursuant to the terms of
Guarantor’s articles of organization, or any mortgage, indenture, agreement or
instrument to which Guarantor is a party or by which it or any of its
properties is bound. Guarantor is not in default under any other guaranty which
it has provided to Lender.

(d)         No
Litigation. There are no actions, suits or proceedings at law or at
equity, pending or, to Guarantor’s best knowledge, threatened against or
affecting Guarantor or which involve or might involve the validity or
enforceability of this Guaranty or which might materially adversely affect the
financial condition of Guarantor or the ability of Guarantor to perform any of
its obligations under this Guaranty. Guarantor is not in default beyond any
applicable grace or cure period with respect to any order, writ, injunction,
decree or demand of any Governmental Authority which might materially adversely
affect the financial condition of Guarantor or the ability of Guarantor to
perform any of its obligations under this Guaranty.

(e)          Consents.
All consents, approvals, orders or authorizations of, or
registrations, declarations or filings with, all Governmental Authorities
(collectively, the “Consents”) that are required in connection with the valid
execution, delivery and performance by Guarantor of this Guaranty have been
obtained and Guarantor agrees that all Consents

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required in connection with the carrying out or
performance of any of Guarantor’s obligations under this Guaranty will be
obtained when required.

(f)          Financial
Statements and Other Information. All financial statements of
Guarantor heretofore delivered to Lender are true and correct in all material
respects and fairly present the financial condition of Guarantor as of the
respective dates thereof, and no materially adverse change has occurred in the
financial conditions reflected therein since the respective dates thereof. None
of the aforesaid financial statements or any certificate or statement furnished
to Lender by or on behalf of Guarantor in connection with the transactions
contemplated hereby, and none of the representations and warranties in this
Guaranty contains any untrue statement of a material fact or omits to state a
material fact necessary in order to make the statements contained therein or
herein not misleading. Guarantor is not insolvent within the meaning of the
United States Bankruptcy Code or any other applicable law, code or regulation
and the execution, delivery and performance of this Guaranty will not render
Guarantor insolvent.

(g)         Consideration.
Guarantor is the owner, directly or indirectly, of legal and
beneficial equity interests in Borrower, and as such will materially benefit
from the making of the Loan.

4.    Financial Statements. Guarantor
shall deliver to Lender, (a) within 120 days after the end of each fiscal
year of Guarantor, a complete copy of Guarantor’s annual financial statements, (b) if
requested by Lender, within 60 days after the end of each fiscal quarter of
Guarantor, financial statements (including a balance sheet as of the end of
such fiscal quarter, a statement of income and expense for such fiscal quarter
and a calculation of Guarantor’s Net Worth as of the end of such fiscal
quarter) certified by Guarantor and in form, content, level of detail and scope
reasonably satisfactory to Lender, and (c) 20 days after request by
Lender, such other financial information with respect to Guarantor as Lender
may reasonably request.

5.    Unconditional Character of Obligations of
Guarantor.

(a)          The obligations of Guarantor hereunder
shall be irrevocable, absolute and unconditional, irrespective of the validity,
regularity or enforceability, in whole or in part, of the other Loan Documents
or any provision thereof, or the absence of any action to enforce the same, any
waiver or consent with respect to any provision thereof, the existence in the
Loan Documents of any so-called non-recourse provision or any other provision
therein purporting to limit in whole or in part the recourse available against
the Borrower, the recovery of any judgment against Borrower, Guarantor or any
other Person or any action to enforce the same, any failure or delay in the
enforcement of the obligations of Borrower under the other Loan Documents or
Guarantor under this Guaranty, or any setoff, counterclaim, and irrespective of
any other circumstances which might otherwise limit recourse against Guarantor
by Lender or constitute a legal or equitable discharge or defense of a
guarantor or surety. Lender may enforce the obligations of Guarantor under this
Guaranty by a proceeding at law, in equity or otherwise, independent of any
loan foreclosure or similar proceeding or any deficiency action against
Borrower or any other Person at any time, either before or after an action
against the Property or any part thereof, Borrower or any other Person. This Guaranty is a guaranty of payment and

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performance and not merely a guaranty
of collection. Guarantor waives diligence, notice of
acceptance of this Guaranty, filing of claims with any court, any proceeding to
enforce any provision of any other Loan Document, against Guarantor, Borrower
or any other Person, any right to require a proceeding first against Borrower
or any other Person, or to exhaust any security (including, without limitation,
the Property) for the performance of the Guaranteed Obligations or any other
obligations of Borrower or any other Person, or any protest, presentment,
notice of default or other notice or demand whatsoever (except to the extent
expressly provided to the contrary in this Guaranty).

(b)         The obligations of Guarantor under this
Guaranty, and the rights of Lender to enforce the same by proceedings, whether
by action at law, suit in equity or otherwise, shall not be in any way affected
by any of the following:

(i)           any
insolvency, bankruptcy, liquidation, reorganization, readjustment, composition,
dissolution, receivership, conservatorship, winding up or other similar
proceeding involving or affecting Borrower, the Property or any part thereof,
Guarantor or any other Person;

(ii)          any
failure by Lender or any other Person, whether or not without fault on its
part, to perform or comply with any of the terms of the Loan Agreement, or any
other Loan Documents, or any document or instrument relating thereto;

(iii)         the
sale, transfer or conveyance of the Property or any interest therein to any
Person, whether now or hereafter having or acquiring an interest in the
Property or any interest therein and whether or not pursuant to any
foreclosure, trustee sale or similar proceeding against Borrower or the
Property or any interest therein;

(iv)        the
conveyance to Lender, any Affiliate of Lender or Lender’s nominee of the
Property or any interest therein by a deed-in-lieu of foreclosure;

(v)         the
release of Borrower or any other Person from the performance or observance of
any of the agreements, covenants, terms or conditions contained in any of the
Loan Documents by operation of law or otherwise; or

(vi)        the
release in whole or in part of any collateral for any or all Guaranteed
Obligations or for the Loan or any portion thereof.

(c)          Except as otherwise specifically
provided in this Guaranty, Guarantor hereby expressly and irrevocably waives
all defenses in an action brought by Lender to enforce this Guaranty based on
claims of waiver, release, surrender, alteration or compromise and all setoffs,
reductions, or impairments, whether arising hereunder or otherwise.

(d)         Lender may deal with Borrower and
Affiliates of Borrower in the same manner and as freely as if this Guaranty did
not exist and shall be entitled, among other things, to grant Borrower or any
other Person such extension or extensions of time to perform any act or acts as
may be deemed advisable by Lender, at any time and from time to time,

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without terminating, affecting or impairing the validity
of this Guaranty or the obligations of Guarantor hereunder.

(e)          No compromise, alteration, amendment,
modification, extension, renewal, release or other change of, or waiver,
consent, delay, omission, failure to act or other action with respect to, any
liability or obligation under or with respect to, or of any of the terms,
covenants or conditions of, the Loan Documents shall in any way alter, impair
or affect any of the obligations of Guarantor hereunder, and Guarantor agrees
that if any Loan Document is modified with Lender’s consent, the Guaranteed
Obligations shall automatically be deemed modified to include such
modifications.

(f)          Lender may proceed to protect and
enforce any or all of its rights under this Guaranty by suit in equity or
action at law, whether for the specific performance of any covenants or
agreements contained in this Guaranty or otherwise, or to take any action
authorized or permitted under applicable law, and shall be entitled to require
and enforce the performance of all acts and things required to be performed
hereunder by Guarantor. Each and every remedy of Lender shall, to the extent
permitted by law, be cumulative and shall be in addition to any other remedy
given hereunder or now or hereafter existing at law or in equity.

(g)         No waiver shall be deemed to have been
made by Lender of any rights hereunder unless the same shall be in writing and
signed by Lender, and any such waiver shall be a waiver only with respect to
the specific matter involved and shall in no way impair the rights of Lender or
the obligations of Guarantor to Lender in any other respect or at any other
time.

(h)         At the option of Lender, Guarantor may
be joined in any action or proceeding commenced by Lender against Borrower in
connection with or based upon any other Loan Documents and recovery may be had
against Guarantor in such action or proceeding or in any independent action or
proceeding against Guarantor to the extent of Guarantor’s liability hereunder,
without any requirement that Lender first assert, prosecute or exhaust any
remedy or claim against Borrower or any other Person, or any security for the
obligations of Borrower or any other Person.

(i)           Guarantor agrees that this Guaranty
shall continue to be effective or shall be reinstated, as the case may be, if
at any time any payment is made by Borrower or Guarantor to Lender and such
payment is rescinded or must otherwise be returned by Lender (as determined by
Lender in its sole and absolute discretion) upon insolvency, bankruptcy,
liquidation, reorganization, readjustment, composition, dissolution,
receivership, conservatorship, winding up or other similar proceeding involving
or affecting Borrower or Guarantor, all as though such payment had not been
made.

(j)           In the event that Guarantor shall
advance or become obligated to pay any sums under this Guaranty or in
connection with the Guaranteed Obligations or in the event that for any reason
whatsoever Borrower or any subsequent owner of the Property or any part thereof
is now, or shall hereafter become, indebted to Guarantor, Guarantor agrees that
(i) the amount of such sums and of such indebtedness and all interest
thereon shall at all times be subordinate as to lien, the time of payment and
in all other respects to all sums, including

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principal and interest and other amounts, at any time
owed to Lender under the Loan Documents, and (ii) Guarantor shall not be
entitled to enforce or receive payment thereof until all principal, interest
and other sums due pursuant to the Loan Documents have been paid in full.
Nothing herein contained is intended or shall be construed to give Guarantor
any right of subrogation in or under the Loan Documents or any right to
participate in any way therein, or in the right, title or interest of Lender in
or to any collateral for the Loan, notwithstanding any payments made by
Guarantor under this Guaranty, until the actual and irrevocable receipt by
Lender of payment in full of all principal, interest and other sums due with
respect to the Loan or otherwise payable under the Loan Documents. If any
amount shall be paid to Guarantor on account of such subrogation rights at any
time when any such sums due and owing to Lender shall not have been fully paid,
such amount shall be paid by Guarantor to Lender for credit and application
against such sums due and owing to Lender.

(k)          Guarantor’s obligations hereunder
shall survive a foreclosure, deed-in-lieu of foreclosure or similar proceeding
involving the Property and the exercise by Lender of any or all of its remedies
pursuant to the Loan Documents and Guarantor expressly agrees that to the
extent necessary to satisfy its obligations under Section 2 hereof, it
shall be and remain liable for any deficiency remaining after foreclosure of
any Security Instrument or security interest securing the Note, notwithstanding
provisions of applicable law or the Loan Documents that may prevent the Lender
from enforcing such deficiency against the Borrower.

6.    Covenants.

(a)          As used in this Section 6, the
following terms shall have the respective meanings set forth below:

(i)           “GAAP” shall mean
generally accepted accounting principles, consistently applied.

(ii)          “Net Worth” shall mean, as of a given
date, (A) the total assets of Guarantor and its Subsidiaries which would
be shown as assets on a consolidated balance sheet of Guarantor and its
Subsidiaries as of such date prepared in accordance with GAAP, after
eliminating all amounts properly attributable to minority interests, if any, in
the stock and surplus of such Subsidiaries, minus (B) the total liabilities
of Guarantor and its Subsidiaries which would be shown as liabilities on a
consolidated balance sheet of Guarantor and its Subsidiaries as of such date
prepared in accordance with GAAP, after eliminating all amounts properly
attributable to minority interests, if any, in the stock and surplus of such
Subsidiaries.

(iii)         “Subsidiary” shall mean, as to any
Person, (A) any corporation more than 50% of whose stock of any class or
classes having by the terms thereof ordinary voting power to elect a majority
of the directors of such corporation (irrespective of whether or not at the
time stock of any class or classes of such corporation shall have or might have
voting power by reason of the happening of any contingency) is at the time
owned by such Person and/or one or more Subsidiaries of such Person and (B) any
partnership, limited liability company, association, joint venture

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or
other entity in which such Person and/or one or more Subsidiaries of such
Person has more than a 50% equity interest at the time.

(b)         Guarantor shall not, at any time while
a default in the payment of the Guaranteed Obligations has occurred and is
continuing, either (i) enter into or effectuate any transaction with any
Affiliate which would reduce the Net Worth of Guarantor, including the payment
of any dividend or distribution to a shareholder, or the redemption,
retirement, purchase or other acquisition for consideration of any stock in
Guarantor, except for dividends that Guarantor is required to pay in order to
maintain Guarantor’s status as a real estate investment trust, or (ii) sell,
pledge, mortgage or otherwise transfer to any Person any of Guarantor’s assets,
or any interest therein, except for fair value.

(c)          Guarantor shall at all times cause
Guarantor’s Net Worth to be not less than $250,000,000.

7.    Entire Agreement/Amendments. This
instrument represents the entire agreement between the parties with respect to
the subject matter hereof. The terms of this Guaranty shall not be waived,
altered, modified, amended, supplemented or terminated in any manner whatsoever
except by written instrument signed by Lender and Guarantor.

8.    Successors and Assigns. This
Guaranty shall be binding upon Guarantor, and Guarantor’s estate, heirs,
personal representatives, successors and assigns, may not be assigned or
delegated by Guarantor, and shall inure to the benefit of Lender and its
successors and assigns.

9.    Applicable Law and Consent to Jurisdiction. This
Guaranty shall be governed by, and construed in accordance with, the substantive
laws of the State of New York. Guarantor irrevocably (a) agrees that any
suit, action or other legal proceeding arising out of or relating to this
Guaranty may be brought in a court of record in the City and County of New York
or in the Courts of the United States of America located in the Southern
District of New York, (b) consents to the jurisdiction of each such court
in any such suit, action or proceeding, and (c) waives any objection which
it may have to the laying of venue of any such suit, action or proceeding in
any of such courts and any claim that any such suit, action or proceeding has
been brought in an inconvenient forum. Guarantor irrevocably consents to the
service of any and all process in any such suit, action or proceeding by
service of copies of such process to Guarantor at its address provided in Section 14
hereof. Nothing in this Section 9, however, shall affect the right of
Lender to serve legal process in any other manner permitted by applicable law
or affect the right of Lender to bring any suit, action or proceeding against
Guarantor or its property in the courts of any other jurisdictions.

10. Section Headings. The
headings of the sections and paragraphs of this Guaranty have been inserted for
convenience of reference only and shall in no way define, modify, limit or
amplify any of the terms or provisions hereof.

11. Severability. Any provision
of this Guaranty which may be determined by any competent authority to be
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without

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invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction. To the extent
permitted by applicable law, Guarantor hereby waives any provision of law which
renders any provision hereof prohibited or unenforceable in any respect.

12. WAIVER OF TRIAL BY JURY. GUARANTOR
HEREBY WAIVES THE RIGHT OF TRIAL BY JURY IN ANY LITIGATION, ACTION OR
PROCEEDING ARISING HEREUNDER OR IN CONNECTION THEREWITH.

13. Intentionally Deleted.

14. Notices. All notices,
consents, approvals and requests required or permitted hereunder (a “Notice”) shall be given
in writing and shall be effective for all purposes if either hand delivered
with receipt acknowledged, or by a nationally recognized overnight delivery
service (such as Federal Express), or by certified or registered United States
mail, return receipt requested, postage prepaid, in each case addressed as
follows (or to such other address or Person as a party shall designate from
time to time by notice to the other party): If to Lender: Lehman Brother Bank,
FSB, 399 Park Avenue, New York, New York 10022 with a copy to: Stroock &
Stroock & Lavan LLP, 180 Maiden Lane, New York, New York 10038,
attention: William Campbell, Esq.; if to Guarantor: 15601 Dallas Parkway, Suite 600,
Addison, Texas 75001, Attention: Chief Financial Officer, and 15601 Dallas
Parkway, Suite 600, Addison, Texas 75001. A notice shall be deemed to have
been given: in the case of hand delivery, at the time of delivery; in the case
of facsimile, at the time that such facsimile is confirmed by successful
confirmation report if so confirmed on a Business Day (or otherwise, on the
next Business day); in the case of registered or certified mail, when delivered
or the first attempted delivery on a Business Day; or in the case of overnight
delivery, upon the first attempted delivery on a Business Day.

15. Guarantor’s Receipt of Loan Documents. Guarantor
by its execution hereof acknowledges receipt of true copies of all of the Loan
Documents, the terms and conditions of which are hereby incorporated herein by
reference.

16. Interest; Expenses.

(a)          If Guarantor fails to pay all or any
sums due hereunder upon demand by Lender, the amount of such sums payable by
Guarantor to Lender shall bear interest from the date of demand until paid at
the Default Rate in effect from time to time.

(b)         Guarantor hereby agrees to pay all
costs, charges and expenses, including reasonable attorneys’ fees and
disbursements, that may be incurred by Lender in enforcing the covenants,
agreements, obligations and liabilities of Guarantor under this Guaranty.

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK

GUARANTOR’S SIGNATURE FOLLOWS ON NEXT PAGE]

 11

 

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

	
  

  	
   

  	
  BEHRINGER HARVARD REIT I, INC.,

  
	
   

  	
   

  	
  a Maryland corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

 

Schedule
1

TRACT #1 — (Terrace VI Office Building): Lot(s) 2,
Block “B” THE TERRACE, SECTION SEVEN, a subdivision in Travis County,
Texas, according to the map or plat thereof, recorded under Document No. 200100072
of the Official Public Records of Travis County, Texas.

TRACT #2 — (Terrace III Office Building): Lot(s) 2,
Block “A” THE TERRACE, SECTION FIVE, a subdivision in Travis County,
Texas, according to the map or plat thereof, recorded under Document No. 200000361
of the Official Public Records of Travis County, Texas.

TRACT #3 — (Hotel Site): Lot(s) 1, Block “A” THE
TERRACE, SECTION FIVE, a subdivision in Travis County, Texas, according to
the map or plat thereof, recorded under Document No. 200000361 of the
Official Public Records of Travis County, Texas.

TRACT #4 — (Terrace IV Office Building): Lot(s) 1,
Block “B” THE TERRACE, SECTION SEVEN, a subdivision in Travis County,
Texas, according to the map or plat thereof, recorded under Document No. 200100072
of the Official Public Records of Travis County, Texas.

TRACT #5 — (Retail Site): Lot 2, Block “E” of THE
TERRACE SECTION SIX, a subdivision in Travis County, Texas, according to
the map or plat thereof, recorded under Document No. 200000362 of the
Official Public Records of Travis County, Texas.Exhibit
10.9

 

 

 

 

ASSIGNMENT OF LEASES AND RENTS

made by

BEHRINGER HARVARD TERRACE LP,

Assignor

in favor of

LEHMAN BROTHERS BANK, FSB

Assignee

Dated as of June 21, 2006

This document was prepared by and

after recording should be returned to:

Stroock &
Stroock & Lavan LLP

180 Maiden Lane

New York, New York

Attn:  William Campbell, Esq. 10038

THIS
ASSIGNMENT OF LEASES AND RENTS (this “Assignment”) dated and effective as of the
____ day of June, 2006 made by BEHRINGER
HARVARD TERRACE LP, a Delaware limited partnership having an address
at 15601 Dallas Parkway, Suite 600, Addison, Texas  75001 (“Assignor”) to LEHMAN BROTHERS BANK, FSB, a federal stock savings bank,
(together with its successors and assigns, hereinafter referred to as “Assignee”), having an
address at 1000 West Street, Suite 200, Wilmington, Delaware 19801.

W I  T  N  E  S
S  E  T  H :

WHEREAS, Assignor is the (i) owner of fee simple
title to that certain parcel of real property located in Travis County, Texas
(the “Premises”),
which is more particularly described in Exhibit A attached hereto,
together with the buildings, structures, fixtures, additions, enlargements,
extensions, modifications, repairs, replacements and other improvements now or
hereafter located thereon (collectively, the “Property”);

WHEREAS, Assignor and Assignee have entered into a
certain Loan Agreement dated as of the date hereof (as amended, modified,
restated, consolidated or supplemented from time to time, the “Loan Agreement”)
pursuant to which Assignee has agreed to make a secured loan to Assignor in the
maximum principal amount of ONE HUNDRED THIRTY ONE MILLION AND NO/DOLLARS
($131,000,000.00) (the “Loan”);

WHEREAS, Assignor has executed a promissory note in
the principal amount of the Loan (as the same may be amended, modified,
restated, severed, consolidated, renewed, replaced, or supplemented from time
to time, the “Note”),
which is secured by, inter  alia,
that certain deed of trust and security agreement (as amended from time to
time, the “Security
Instrument”; the Security Instrument, the Note, this Assignment,
the Loan Agreement and such other documents more particularly described in the
Loan Agreement, as any of the same may, from time to time, be modified, amended
or supplemented, being hereinafter collectively referred to as the “Loan Documents”) on
the Property;

WHEREAS, it is a condition to the obligation of
Assignee to make the Loan to Assignor pursuant to the Loan Agreement that
Assignor execute and deliver this Assignment;

WHEREAS, this Assignment is being given as additional
security for the Loan; and

WHEREAS, capitalized terms used in this Assignment without
definition have the respective meanings assigned to such terms in the Loan
Agreement or the Security Instrument, as the case may be, the terms of each of
which are specifically incorporated by reference herein.

NOW, THEREFORE, for good and valuable consideration,
receipt of which by the parties hereto is hereby acknowledged, and additionally
for the purpose of additionally securing the Debt, Assignor hereby assigns,
transfers, conveys and sets over unto Assignee, all right, title and interest
of Assignor in and to all Leases and all Rents;

TO HAVE AND TO HOLD the same unto Assignee, and its
successors and assigns forever, upon the terms and conditions and for the uses
hereinafter set forth.

 

And Assignor hereby further agrees as follows:

1.             Certain Representations, Warranties and Covenants.
Subject to the terms of the Loan Agreement, Assignor represents, warrants and
covenants to Assignee that:

(a)           The payment of the
Rents to accrue under any Lease will not be waived, released, reduced,
discounted or otherwise discharged or compromised by Assignor;

(b)           Assignor has not
performed, and will not perform, any acts, and has not executed, and will not
execute, any instrument that would prevent Assignee from exercising its rights
under this Assignment; and

(c)           Assignor hereby
authorizes and directs any tenant under any of the Leases and any successor to
all or any part of the interests of any such tenant to pay directly to the
Clearing Account, in accordance with the terms of the Loan Agreement, the Rents
due and to become due under such tenant’s Lease, and such authorization and
direction shall be sufficient warrant to the tenant to make future payments of
Rents directly to the Clearing Account in accordance with the terms of the Loan
Agreement without the necessity for further consent by Assignor.

2.             Assignment; Deferred Exercise of Rights.

(a)           As part of the
consideration for the Debt, Assignor does hereby absolutely and unconditionally
assign to Assignee all right, title and interest of Assignor in and to all
present and future Leases and Rents, and this Assignment constitutes a present
and absolute assignment and is intended to be unconditional and not as an
assignment for additional security only. It is further intended that it not be
necessary for Assignee to institute legal proceedings, absent any requirements
of applicable law or regulation to the contrary, to enforce the provisions
hereof. Assignor hereby authorizes Assignee or its agents to collect the Rents;
provided, however, that prior to an Event of Default, and subject at all times
to the requirement that payments and deposits of Rents be made directly to the
Clearing Account, Assignor shall have a revocable license, but limited as
provided in this Assignment and in any of the other Loan Documents, to
otherwise deal with, and enjoy the rights of the lessor under, the Leases. Notwithstanding
such absolute assignment, it is expressly understood and agreed that the Rents
and other sums due under the Leases shall not be deemed received by Lender and
applied to the Debt unless same are actually received by the Lender from the
Borrower and applied to the payment of the Debt. In the event that Rents and
such other sums are paid to the Lender by the lessees, such Rents and other
sums will be pro tanto credited on the Debt only to the extent, if any, that
such Rents and other sums paid to Lender are neither disbursed by Lender to
Borrower nor paid by Lender for utilities, maintenance, repairs, taxes,
assessments, insurance or other expenses relating to the Property

(b)           Upon the occurrence
and during the continuance of an Event of Default, and without the necessity of
Assignee entering upon and taking and maintaining full control of the Property
in person, by agent or by court-appointed receiver, the license referred to in
paragraph (a) above shall immediately be revoked and Assignee shall have
the right at its option,

 3
 

 

to exercise
all rights and remedies contained in the Loan Documents, or otherwise available
at law or in equity.

3.             Rents Held in Trust by Assignor. Rents held or
received by Assignor shall be held or received by Assignor as trustee for the
benefit of Assignee only, and shall immediately be deposited directly to the
Clearing Account in accordance with the terms of the Loan Agreement.

4.             Effect on Rights Under Other Documents. Nothing
contained in this Assignment and no act done or omitted by Assignee pursuant to
the powers and rights granted it hereunder shall be deemed to be a waiver by
Assignee of its rights and remedies under any of the other Loan Documents, and
this Assignment is made and accepted without prejudice to any of the rights and
remedies possessed by Assignee under the terms of the other Loan Documents. The
rights of Assignee under the other Loan Documents may be exercised by Assignee
either prior to, simultaneously with, or subsequent to any action taken by it
hereunder. This Assignment is intended to be supplementary to and not in
substitution for or in derogation of any assignment of rents or grant of a
security interest contained in any of the other Loan Documents.

5.             Event of Default. Upon or at any time after the
occurrence and during the continuance of an Event of Default, then in addition
to and without limiting any of Assignee’s rights and remedies hereunder and
under the other Loan Documents and as otherwise available at law or in equity:

(a)           Assignee may, at its
option, without waiving such Event of Default and without regard to the
adequacy of the security for the Debt, either in person or by agent, without
bringing any action or proceeding, or by a receiver appointed by a court,
without taking possession of the Property in its own name, demand, sue for or
otherwise collect and receive all Rents, including those past-due and unpaid,
for application to the payment of the Debt in accordance with the terms of the
Loan Documents, and Assignee may enter into, and to the extent that Assignor
would have the right to do so, cancel, enforce or modify any Lease. The
exercise by Assignee of the option granted it in this Section and the collection
of the Rents and the application thereof as herein provided shall not be
considered a waiver of any Event of Default.

(b)           Assignor hereby
acknowledges and agrees that payment of any item of Rent by a Person to
Assignee as hereinabove provided shall constitute payment in full of such item
of Rent by such Person, as fully and with the same effect as if it had been
paid to Assignor.

(c)           Assignee in respect
of the Leases and Rents shall have all of the rights and remedies of a secured
party under the Uniform Commercial Code as in effect in the State in which such
rights and remedies are asserted as described in Section 12(b) to the
extent of such rights thereunder and additional rights and remedies to which a
secured party is entitled under the laws in effect in any jurisdiction where
any rights and remedies hereunder may be asserted.

6.             Application of Rents and Proceeds. After the
occurrence and during the continuance of an Event of Default, Rents received or
held by Assignor or Assignee shall be applied in accordance with the terms of
the Loan Documents.

 4
 

 

7.             Attorney-in-Fact. Upon the occurrence and during
the continuance of any Event of Default, Assignor hereby appoints Assignee the
attorney-in-fact of Assignor to take any action and execute any instruments
that Assignor is obligated, or has covenanted and agreed under the Loan
Agreement or the other Loan Documents to take or execute, which appointment as
attorney-in-fact is irrevocable and coupled with an interest. Without limiting
the generality of the foregoing provisions of this Section 7, upon the
occurrence and during the continuance of an Event of Default, Assignor does
hereby irrevocably appoint Assignee as its attorney-in-fact with full power, in
the name and stead of Assignor to demand, collect, receive and give complete
acquittance for any and all of the Rents now due or that may hereafter become
due, and at Assignee’s discretion, to file any claim, to take any other action,
to institute any proceeding or to make any settlement of any claim, either in
its own name or in the name of Assignor or otherwise, which Assignee may deem
necessary or desirable in order to collect and enforce the payment of Rents.

8.             Termination. Assignee, by the acceptance of this
Assignment, agrees that when all of the Debt shall have been paid in full, this
Assignment shall terminate, and Assignee shall execute and deliver to Assignor,
upon such termination such instruments of termination or re-assignment and
Uniform Commercial Code termination statements, all without recourse and
without any representation or warranty whatsoever, as shall be reasonably
requested by Assignor; provided that, upon reconveyance of the Security
Instrument, this Assignment shall automatically terminate, and the rights
assigned hereunder re-assigned to Assignor, without the need for a termination
or re-assignment of record.

9.             Expenses. Assignor agrees to pay to Assignee all
out-of-pocket expenses (including expenses for attorneys’ fees and costs of
every kind) of, or incident to, the enforcement of any of the provisions of
this Assignment or performance by Assignee of any obligation of Assignor
hereunder which Assignor has failed or refused to perform.

10.           Further Assurances. Assignor
agrees that, from time to time upon the written request of Assignee, it will
give, execute, deliver, file and/or record any financing statements, notice,
instrument, document, agreement or other papers and do such other acts and
things that may be necessary and desirable to create, preserve, perfect or
validate this Assignment, to enable Assignee to exercise and enforce its rights
hereunder with respect to this Assignment or to otherwise carry out the
purposes and intent of this Assignment.

11.           No Obligation by Assignee. By
virtue of this Assignment, Assignee shall not be obligated to perform or
discharge, nor does it hereby undertake to perform or discharge, any
obligation, duty or liability under any of the Leases. This Assignment shall
not operate to constitute Assignee as a lender in possession of the Property or
to place responsibility for the control, care, management or repair of the
Property upon Assignee, nor shall it operate to make Assignee responsible or
liable for any waste committed on the Property by any tenant or other party in
possession or for any dangerous or defective condition of the Property or for
any negligence in the management, upkeep, repair or control thereof.

12.           Miscellaneous.

 5
 

 

(a)           No failure on the part of Assignee or
any of its agents to exercise, and no course of dealing with respect to, and no
delay in exercising, any right, power or remedy hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise by Assignee or any of
its agents of any right, power or remedy hereunder preclude any other or
further exercise thereof or the exercise of any other right, power or remedy.
Subject to Section 16 hereof, the remedies herein are cumulative and are
not exclusive of any remedies provided by law.

(b)           This Assignment shall be governed by, and be construed in accordance
with, the laws of the state in which the Property is located without regard to
conflict of law provisions thereof.

(c)           Subject to Section 16
hereof, all rights and remedies set forth in this Assignment are cumulative,
and Assignee may recover judgment thereon, issue execution therefor, and resort
to every other right or remedy available at law or in equity, without first
exhausting and without affecting or impairing the security of any right or
remedy afforded hereby; and no such right or remedy set forth in this
Assignment shall be deemed exclusive of any of the remedies or rights granted
to Assignee in any of the Loan Documents. Nothing contained in this Assignment
shall be deemed to limit or restrict the rights and remedies of Assignee under
the Loan Agreement or any of the other Loan Documents.

(d)           Until the
indebtedness and all other obligations secured by the Loan Documents is paid in
full, Assignor will, upon request, deliver from time to time to Assignee
executed originals to the extent available, otherwise photocopies certified by
Assignor as true, correct and complete, of executed originals, of any and all
existing Leases to which Assignor is a party, and executed originals, or
photocopies of executed originals, so certified by Assignor, if an executed original
is not available, of all other and future Leases to which Assignor is a party,
and upon request of Assignee, will specifically transfer and assign to Assignee
such other and future Leases upon the same terms and conditions as herein
contained.

(e)           Assignor represents
that it:  (i) has been advised that
Assignee engages in the business of real estate financings and other real
estate transactions and investments which may be viewed as adverse to or
competitive with the business of Assignor or its affiliates; (ii) is
represented by competent counsel and has consulted counsel before executing
this Assignment; and (iii) has relied solely on its own judgment and on
its counsel and advisors in entering into the transaction(s) contemplated
hereby without relying in any manner on any statements, representations or
recommendations of Assignee or any parent, subsidiary or affiliate of Assignee.

13.           No Oral Change. This
Assignment may not be amended except by an instrument in writing signed by
Assignor and Assignee.

14.           Successors and Assigns. Assignor
may not assign its rights under this Assignment except as permitted under the
Loan Agreement. Subject to the foregoing, this Assignment shall be binding
upon, and shall inure to the benefit of, Assignor and Assignee and their
respective successors and assigns.

 6
 

 

15.           Notices. All notices, requests
and other communications provided for herein shall be given or made in writing
in the manner specified in the Loan Agreement.

16.           Exculpation. It is expressly
agreed that recourse against Assignor for failure to perform and observe its
obligations contained in this Assignment shall be limited as and to the extent
provided in Section 10.1 of the Loan Agreement.

17.           Inapplicable Provisions. If
any term, covenant or condition of this Assignment is held to be invalid,
illegal or unenforceable in any respect, this Assignment shall be construed
without such invalid, illegal or unenforceable provision, and so construing the
remaining provisions of this Assignment shall not be deemed to invalidate or
render such remaining provisions hereof unenforceable, and to such ends the
provisions hereof are deemed to be severable.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK. ASSIGNOR’S

SIGNATURE FOLLOWS ON NEXT PAGE.]

 7

 

IN WITNESS WHEREOF, this Assignment has been duly
executed by Assignor as of the day and year first above written.

	
  

  	
   

  	
  BEHRINGER HARVARD TERRACE LP

  
	
   

  	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  Behringer Harvard Terrace GP, LLC, a

  
	
   

  	
   

  	
  Delaware limited liability company, its general

  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Gerald J. Reihsen, III, Secretary

  

 

 

[ASSIGNOR’S SIGNATURE IS NOTARIZED ON NEXT PAGE]

 

ACKNOWLEDGMENT

	
  STATE OF ________________

  	
  )

  
	
   

  	
  )ss:

  
	
  COUNTY OF ______________

  	
  )

  

 

On the _____ day of _____________ in the year 2006,
before me, the undersigned, personally appeared Gerald J. Reihsen, III, as
Secretary of Behringer Harvard Terrace GP, LLC, a Delaware limited liability
company, as general partner of BEHRINGER HARVARD TERRACE LP, a Delaware limited
partnership, on behalf of said limited liability company and limited
partnership, personally known to me or proved to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the within
instrument and acknowledged to me that he executed the same in his capacity as
aforesaid, and that by his signature on the instrument, he, or the person upon
behalf of which he acted, executed the instrument.

 

 

	
  

  	
   

  
	
   

  	
  Notary Public

  

 

 

EXHIBIT A

LEGAL DESCRIPTION

[INSERT LEGAL & PIN(S)]

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