Document:

BEHRINGER HARVARD PACES WEST, LLC, as Borrower
                                                       (Borrower)

                                       to

      MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., as nominee of Lender
                                                       (Lender)

                         ASSIGNMENT OF LEASES AND RENTS

                         Dated:    As of April 19, 2006

                         MERS MIN: 8000101-0000002930-5

                             PREPARED BY AND UPON
                             RECORDATION RETURN TO:

                            Kelley Drye & Warren LLP
                                 101 Park Avenue
                            New York, New York 10178
                         Attention: Paul A. Keenan, Esq.

<PAGE>

                         ASSIGNMENT OF LEASES AND RENTS

        THIS ASSIGNMENT OF LEASES AND RENTS (this "ASSIGNMENT") made as of the
19th day of April, 2006, by BEHRINGER HARVARD PACES WEST, LLC, a Delaware
limited liability company, as assignor, having its principal place of business
c/o Behringer Harvard Funds, 15601 Dallas Parkway, Suite 600, Addison, Texas
75001 ("BORROWER") to MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., a Delaware
corporation, having an address at 1595 Spring Hill Road, Suite 310, Vienna,
Virginia 22181 ("MERS") as nominee of BEAR STEARNS COMMERCIAL MORTGAGE, INC., a
New York corporation, as assignee, having an address at 383 Madison Avenue, New
York, New York 10179 ("LENDER").

                              W I T N E S S E T H:

        WHEREAS, this Assignment is given in connection with a loan in the
principal sum of Eighty-Four Million and No/100 Dollars ($84,000,000.00) (the
"LOAN") made by Lender to Borrower pursuant to that certain Loan Agreement,
dated as of the date hereof (as the same may hereafter be amended, restated,
replaced, supplemented, renewed, extended or otherwise modified from time to
time, the "LOAN AGREEMENT") and evidenced by that certain Promissory Note, dated
the date hereof, given by Borrower to Lender (as the same may hereafter be
amended, restated, replaced, supplemented, renewed, extended or otherwise
modified from time to time, the "NOTE");

        WHEREAS, Borrower desires to secure the payment of the Debt (as defined
in the Loan Agreement) and the performance of all of its obligations under the
Note, the Loan Agreement and the other Loan Documents; and

        WHEREAS, this Assignment is given pursuant to the Loan Agreement, and
payment, fulfillment, and performance by Borrower of its obligations thereunder
and under the other Loan Documents is secured hereby, and each and every term
and provision of the Loan Agreement and the Note, including the rights,
remedies, obligations, covenants, conditions, agreements, indemnities,
representations and warranties therein, are hereby incorporated by reference
herein as though set forth in full and shall be considered a part of this
Assignment.

        NOW THEREFORE, in consideration of the making of the Loan by Lender and
the covenants, agreements, representations and warranties set forth in this
Assignment:

                             ARTICLE 1 - ASSIGNMENT

        Section 1.1     PROPERTY ASSIGNED. Borrower hereby absolutely and
unconditionally assigns and grants to MERS, as nominee of Lender, the following
property, rights, interests and estates, now owned, or hereafter acquired by
Borrower:

        (a)     LEASES. All leases, subleases or subsubleases, lettings,
licenses, concessions or other agreements made a part thereof (whether written
or oral and whether now or hereafter in effect), pursuant to which any Person is
granted a possessory interest in, or a right to use or occupy, all or any
portion of any space in that certain lot or piece of land, more particularly
described in EXHIBIT A annexed hereto and made a part hereof, together with the

<PAGE>

buildings, structures, fixtures, additions, enlargements, extensions,
modifications, repairs, replacements and improvements now or hereafter located
thereon (collectively, the "PROPERTY") and every modification, amendment or
other agreement relating to such leases, subleases, subsubleases, or other
agreements entered into in connection with such leases, subleases, subsubleases,
or other agreements and every guarantee of the performance and observance of the
covenants, conditions and agreements to be performed and observed by the other
party thereto, and the right, title and interest of Borrower, its successors and
assigns, therein and thereunder.

        (b)     OTHER LEASES AND AGREEMENTS. All other leases and other
agreements, whether or not in writing, providing for the use, enjoyment or
occupancy of the Property or any portion thereof now or hereafter made, whether
made before or after the filing by or against Borrower of any petition for
relief under the Bankruptcy Code together with any extension, renewal or
replacement of the same. This Assignment of other present and future leases and
present and future agreements being effective without further or supplemental
assignment. The "leases" described in Subsection 1.1(a) and the leases and other
agreements described in this Subsection 1.1(b) are collectively referred to as
the "LEASES."

        (c)     RENTS. All rents, rent equivalents, income, receivables,
revenues, receipts, insurance proceeds, deposits and profits arising from the
Leases and renewals thereof together with all rents, rent equivalents, income,
fees, receivables, accounts, profits (including, but not limited to, all oil and
gas or other mineral royalties and bonuses), charges for services rendered and
any and all payment and consideration of whatever form or nature received by
Borrower or its agents or employees from any and all sources relating to the
use, enjoyment and occupancy of the Property whether paid or accruing before or
after the filing by or against Borrower of any petition for relief under the
Bankruptcy Code (collectively, the "RENTS").

        (d)     BANKRUPTCY CLAIMS. All of Borrower's claims and rights (the
"BANKRUPTCY CLAIMS") to the payment of damages arising from any rejection by a
lessee of any Lease under the Bankruptcy Code.

        (e)     LEASE GUARANTIES. All of Borrower's right, title and interest in
and claims under any and all lease guaranties, letters of credit and any other
credit support (individually, a "LEASE GUARANTY," collectively, the "LEASE
GUARANTIES") given by any guarantor in connection with any of the Leases or
leasing commissions (individually, a "LEASE GUARANTOR," collectively, the "LEASE
GUARANTORS") to Borrower.

        (f)     PROCEEDS. All proceeds from the sale or other disposition of the
Leases, the Rents, the Lease Guaranties and the Bankruptcy Claims.

        (g)     OTHER. All rights, powers, privileges, options and other
benefits of Borrower as lessor under the Leases and beneficiary under the Lease
Guaranties, including without limitation the immediate and continuing right to
make claim for, receive and collect all Rents payable or receivable under the
Leases and all sums payable under the Lease Guaranties or pursuant thereto (and
to apply the same to the payment of the Debt or the Other Obligations), and to
do all other things which Borrower or any lessor is or may become entitled to do
under the Leases or the Lease Guaranties.

<PAGE>

        (h)     ENTRY. The right, at Lender's option, upon revocation of the
license granted herein, to enter upon the Property in person, by agent or by
court-appointed receiver, to collect the Rents.

        (i)     POWER OF ATTORNEY. Borrower's irrevocable power of attorney,
coupled with an interest, to take any and all of the actions set forth in
Section 3.1 of this Assignment and any or all other actions designated by Lender
for the proper management and preservation of the Property.

        (j)     OTHER RIGHTS AND AGREEMENTS. Any and all other rights of
Borrower in and to the items set forth in subsections (a) through (i) above, and
all amendments, modifications, replacements, renewals and substitutions thereof.

                        ARTICLE 2 - TERMS OF ASSIGNMENT

        Section 2.1     PRESENT ASSIGNMENT AND LICENSE BACK. It is intended by
Borrower that this Assignment constitute a present, absolute assignment of the
Leases, Rents, Lease Guaranties and Bankruptcy Claims, and not an assignment for
additional security only. Nevertheless, subject to the terms of this Section 2.1
and the Cash Management Agreement, Lender grants to Borrower a revocable license
to collect, receive, use and enjoy the Rents and other sums due under the Lease
Guaranties and Borrower shall hold such Rents and all sums received pursuant to
any Lease Guaranty, or a portion thereof sufficient to discharge all current
sums due on the Debt, in trust for the benefit of Lender for use in the payment
of such sums.

        Section 2.2     NOTICE TO LESSEES. Borrower hereby authorizes and
directs the lessees named in the Leases or any other future lessees or occupants
of the Property and all Lease Guarantors to pay over to Lender or to such other
party as Lender directs all Rents and all sums due under any Lease Guaranties
upon receipt from Lender of written notice to the effect that Lender is then the
holder of this Assignment and that an Event of Default (as defined in the Loan
Agreement) exists, and to continue so to do until otherwise notified by Lender.

        Section 2.3     INCORPORATION BY REFERENCE. All representations,
warranties, covenants, conditions and agreements contained in the Loan Agreement
and the other Loan Documents as same may be modified, renewed, substituted or
extended are hereby made a part of this Assignment to the same extent and with
the same force as if fully set forth herein.

        Section 2.4     GRANTS TO MERS. This Assignment and the grants,
assignments and transfers made to MERS in this Assignment shall insure to MERS
solely in its capacity as Lender's nominee.

                              ARTICLE 3 - REMEDIES

        Section 3.1     REMEDIES OF LENDER. Upon or at any time after the
occurrence of an Event of Default, the license granted to Borrower in Section
2.1 of this Assignment shall automatically be revoked, and Lender shall
immediately be entitled to possession of all Rents and sums due under any Lease
Guaranties, whether or not Lender enters upon or takes control of the Property.
In addition, Lender may, at its option, without waiving such Event of Default,
without regard to the adequacy of the security for the Debt, either in person or
by agent, nominee

<PAGE>

or attorney, with or without bringing any action or proceeding, or by a receiver
appointed by a court, dispossess Borrower and its agents and servants from the
Property, without liability for trespass, damages or otherwise and exclude
Borrower and its agents or servants wholly therefrom, and take possession of the
Property and all books, records and accounts relating thereto and have, hold,
manage, lease and operate the Property on such terms and for such period of time
as Lender may deem proper and either with or without taking possession of the
Property in its own name, demand, sue for or otherwise collect and receive all
Rents and sums due under all Lease Guaranties, including those past due and
unpaid with full power to make from time to time all alterations, renovations,
repairs or replacements thereto or thereof as Lender may deem proper and may
apply the Rents and sums received pursuant to any Lease Guaranties to the
payment of the following in such order and proportion as Lender in its sole
discretion may determine, any law, custom or use to the contrary
notwithstanding: (a) all expenses of managing and securing the Property,
including, without being limited thereto, the salaries, fees and wages of a
managing agent and such other employees or agents as Lender may deem necessary
or desirable and all expenses of operating and maintaining the Property,
including, without being limited thereto, all taxes, charges, claims,
assessments, water charges, sewer rents and any other liens, and premiums for
all insurance which Lender may deem necessary or desirable, and the cost of all
alterations, renovations, repairs or replacements, and all expenses incident to
taking and retaining possession of the Property; and (b) the Debt, together with
all costs and reasonable attorneys' fees. In addition, upon the occurrence of an
Event of Default, Lender, at its option, may (1) complete any construction on
the Property in such manner and form as Lender deems advisable, (2) exercise all
rights and powers of Borrower, including, without limitation, the right to
negotiate, execute, cancel, enforce or modify any Leases, obtain and evict
tenants, and demand, sue for, collect and receive all Rents from the Property
and all sums due under any Lease Guaranties, (3) require Borrower to pay monthly
in advance to Lender, or any receiver appointed to collect the Rents, the fair
and reasonable rental value for the use and occupancy of such part of the
Property as may be in possession of Borrower or (4) require Borrower to vacate
and surrender possession of the Property to Lender or to such receiver and, in
default thereof, Borrower may be evicted by summary proceedings or otherwise.

        Section 3.2     OTHER REMEDIES. Nothing contained in this Assignment and
no act done or omitted by Lender pursuant to the power and rights granted to
Lender hereunder shall be deemed to be a waiver by Lender of its rights and
remedies under the Loan Agreement, the Note, or the other Loan Documents and
this Assignment is made and accepted without prejudice to any of the rights and
remedies possessed by Lender under the terms thereof. The right of Lender to
collect the Debt and to enforce any other security therefor held by it may be
exercised by Lender either prior to, simultaneously with, or subsequent to any
action taken by it hereunder. Borrower hereby absolutely, unconditionally and
irrevocably waives any and all rights to assert any setoff, counterclaim or
crossclaim of any nature whatsoever with respect to the obligations of Borrower
under this Assignment, the Loan Agreement, the Note, the other Loan Documents or
otherwise with respect to the Loan in any action or proceeding brought by Lender
to collect same, or any portion thereof, or to enforce and realize upon the lien
and security interest created by this Assignment, the Loan Agreement, the Note,
or any of the other Loan Documents (provided, however, that the foregoing shall
not be deemed a waiver of Borrower's right to assert any compulsory counterclaim
if such counterclaim is compelled under local law or rule of procedure, nor
shall the foregoing be deemed a waiver of Borrower's right to assert any claim
which would

<PAGE>

constitute a defense, setoff, counterclaim or crossclaim of any nature
whatsoever against Lender in any separate action or proceeding).

        Section 3.3     OTHER SECURITY. Lender may take or release other
security for the payment of the Debt, may release any party primarily or
secondarily liable therefor and may apply any other security held by it to the
reduction or satisfaction of the Debt without prejudice to any of its rights
under this Assignment.

        Section 3.4     NON-WAIVER. The exercise by Lender of the option granted
it in Section 3.1 of this Assignment and the collection of the Rents and sums
due under the Lease Guaranties and the application thereof as herein provided
shall not be considered a waiver of any default by Borrower under the Note, the
Loan Agreement, the Leases, this Assignment or the other Loan Documents. The
failure of Lender to insist upon strict performance of any term hereof shall not
be deemed to be a waiver of any term of this Assignment. Borrower shall not be
relieved of Borrower's obligations hereunder by reason of (a) the failure of
Lender to comply with any request of Borrower or any other party to take any
action to enforce any of the provisions hereof or of the Loan Agreement, the
Note or the other Loan Documents, (b) the release regardless of consideration,
of the whole or any part of the Property, or (c) any agreement or stipulation by
Lender extending the time of payment or otherwise modifying or supplementing the
terms of this Assignment, the Loan Agreement, the Note, or the other Loan
Documents. Lender may resort for the payment of the Debt to any other security
held by Lender in such order and manner as Lender, in its discretion, may elect.
Lender may take any action to recover the Debt, or any portion thereof, or to
enforce any covenant hereof without prejudice to the right of Lender thereafter
to enforce its rights under this Assignment. The rights of Lender under this
Assignment shall be separate, distinct and cumulative and none shall be given
effect to the exclusion of the others. No act of Lender shall be construed as an
election to proceed under any one provision herein to the exclusion of any other
provision.

        Section 3.5     BANKRUPTCY. (a) Upon or at any time after the occurrence
of an Event of Default, Lender shall have the right to proceed in its own name
or in the name of Borrower in respect of any claim, suit, action or proceeding
relating to the rejection of any Lease, including, without limitation, the right
to file and prosecute, to the exclusion of Borrower, any proofs of claim,
complaints, motions, applications, notices and other documents, in any case in
respect of the lessee under such Lease under the Bankruptcy Code.

        (b)     If there shall be filed by or against Borrower a petition under
the Bankruptcy Code, and Borrower, as lessor under any Lease, shall determine to
reject such Lease pursuant to Section 365(a) of the Bankruptcy Code, then
Borrower shall give Lender not less than ten (10) days' prior notice of the date
on which Borrower shall apply to the bankruptcy court for authority to reject
the Lease. Lender shall have the right, but not the obligation, to serve upon
Borrower within such ten-day period a notice stating that (i) Lender demands
that Borrower assume and assign the Lease to Lender pursuant to Section 365 of
the Bankruptcy Code and (ii) Lender covenants to cure or provide adequate
assurance of future performance under the Lease. If Lender serves upon Borrower
the notice described in the preceding sentence, Borrower shall not seek to
reject the Lease and shall comply with the demand provided for in clause (i) of
the preceding sentence within thirty (30) days after the notice shall have been

<PAGE>

given, subject to the approval of the bankruptcy court having jurisdiction over
the case and to the performance by Lender of the covenant provided for in clause
(ii) of the preceding sentence.

                  ARTICLE 4 - NO LIABILITY, FURTHER ASSURANCES

        Section 4.1     NO LIABILITY OF LENDER. This Assignment shall not be
construed to bind Lender to the performance of any of the covenants, conditions
or provisions contained in any Lease or Lease Guaranty or otherwise impose any
obligation upon Lender. Lender shall not be liable for any loss sustained by
Borrower resulting from Lender's failure to let the Property after an Event of
Default or from any other act or omission of Lender in managing the Property
after an Event of Default unless such loss is caused by the willful misconduct
and bad faith of Lender. Lender shall not be obligated to perform or discharge
any obligation, duty or liability under the Leases or any Lease Guaranties or
under or by reason of this Assignment and Borrower shall, and hereby agrees to,
indemnify Lender for, and to hold Lender harmless from, any and all liability,
loss or damage which may or might be incurred under the Leases, any Lease
Guaranties or under or by reason of this Assignment and from any and all claims
and demands whatsoever, including the defense of any such claims or demands
which may be asserted against Lender by reason of any alleged obligations and
undertakings on its part to perform or discharge any of the terms, covenants or
agreements contained in the Leases or any Lease Guaranties. Should Lender incur
any such liability, the amount thereof, including costs, expenses and reasonable
attorneys' fees, shall be secured by this Assignment, the Mortgage and the other
Loan Documents and Borrower shall reimburse Lender therefor immediately upon
demand and upon the failure of Borrower so to do Lender may, at its option,
declare all sums secured by this Assignment, the Mortgage and the other Loan
Documents immediately due and payable. This Assignment shall not operate to
place any obligation or liability for the control, care, management or repair of
the Property upon Lender, nor for the carrying out of any of the terms and
conditions of the Leases or any Lease Guaranties; nor shall it operate to make
Lender responsible or liable for any waste committed on the Property by the
tenants or any other parties, or for any dangerous or defective condition of the
Property including, without limitation, the presence of any Hazardous Substances
(as defined in the Mortgage), or for any negligence in the management, upkeep,
repair or control of the Property resulting in loss or injury or death to any
tenant, licensee, employee or stranger.

        Section 4.2     NO MORTGAGEE IN POSSESSION. Nothing herein contained
shall be construed as constituting Lender a "mortgagee in possession" in the
absence of the taking of actual possession of the Property by Lender. In the
exercise of the powers herein granted Lender, no liability shall be asserted or
enforced against Lender, all such liability being expressly waived and released
by Borrower.

        (a)     FURTHER ASSURANCES. Borrower will, at the cost of Borrower, and
without expense to Lender, do, execute, acknowledge and deliver all and every
such further acts, conveyances, assignments, notices of assignments, transfers
and assurances as Lender shall, from time to time, reasonably require for the
better assuring, conveying, assigning, transferring and confirming unto Lender
the property and rights hereby assigned or intended now or hereafter so to be,
or which Borrower may be or may hereafter become bound to convey or assign to
Lender, or for carrying out the intention or facilitating the performance of the
terms of this Assignment or for filing, registering or recording this Assignment
and, on demand, will execute and deliver and

<PAGE>

hereby authorizes Lender to execute in the name of Borrower to the extent Lender
may lawfully do so, one or more financing statements, chattel mortgages or
comparable security instruments, to evidence more effectively the lien and
security interest hereof in and upon the Leases.

                      ARTICLE 5 - MISCELLANEOUS PROVISIONS

        Section 5.1     CONFLICT OF TERMS. In case of any conflict between the
terms of this Assignment and the terms of the Loan Agreement, the terms of the
Loan Agreement shall prevail.

        Section 5.2     NO ORAL CHANGE. This Assignment and any provisions
hereof may not be modified, amended, waived, extended, changed, discharged or
terminated orally, or by any act or failure to act on the part of Borrower or
Lender, but only by an agreement in writing signed by the party against whom the
enforcement of any modification, amendment, waiver, extension, change, discharge
or termination is sought.

        Section 5.3     GENERAL DEFINITIONS. All capitalized terms not defined
herein shall have the respective meanings set forth in the Loan Agreement.
Unless the context clearly indicates a contrary intent or unless otherwise
specifically provided herein, words used in this Assignment may be used
interchangeably in singular or plural form and the word "Borrower" shall mean
"each Borrower and any subsequent owner or owners of the Property or any part
thereof or interest therein," the word "Lender" shall mean "Lender and any
subsequent holder of the Note", the word "Note" shall mean "the Note and any
other evidence of indebtedness secured by the Loan Agreement", the word
"Property" shall include any portion of the Property and any interest therein,
the phrases "attorneys' fees," "legal fees" and "counsel fees" shall include any
and all attorney's, paralegal and law clerk fees and disbursements, including,
but not limited to, fees and disbursements at the pre-trial, trial and appellate
levels incurred or paid by Lender in protecting its interest in the Property,
the Leases and the Rents and enforcing its rights hereunder; whenever the
context may require, any pronouns used herein shall include the corresponding
masculine, feminine or neuter forms, and the singular form of nouns and pronouns
shall include the plural and vice versa.

        Section 5.4     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 provision.

        Section 5.5     GOVERNING LAW. This Assignment shall be governed in
accordance with the terms and provisions of Section 10.3 of the Loan Agreement.

        Section 5.6     TERMINATION OF ASSIGNMENT. Upon payment in full of the
Debt, this Assignment shall become and be void and of no effect.

        Section 5.7     NOTICES. All notices or other written communications
hereunder shall be delivered in accordance with Section 10.6 of the Loan
Agreement.

        Section 5.8     WAIVER OF TRIAL BY JURY. BORROWER HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM,

<PAGE>

WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THIS
ASSIGNMENT, THE NOTE, OR THE OTHER LOAN DOCUMENTS OR ANY ACTS OR OMISSIONS OF
LENDER, ITS OFFICERS, EMPLOYEES, DIRECTORS OR AGENTS IN CONNECTION THEREWITH.

        Section 5.9     EXCULPATION. The provisions of Section 9.4 of the Loan
Agreement are hereby incorporated by reference into this Assignment to the same
extent and with the same force as if fully set forth herein.

        Section 5.10    SUCCESSORS AND ASSIGNS. This Assignment shall be binding
upon and inure to the benefit of Borrower and Lender and their respective
successors and assigns forever.

        Section 5.11    HEADINGS, ETC. The headings and captions of various
paragraphs of this Assignment are for convenience of reference only and are not
to be construed as defining or limiting, in any way, the scope or intent of the
provisions hereof.

<PAGE>

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

                                          BORROWER:

                                          BEHRINGER HARVARD PACES WEST, LLC,
                                          a Delaware limited liability company

                                          By: _____________________________
                                          Gerald J. Reihsen, III
                                          Secretary

As to Borrower, signed, sealed and
delivered in the presence of:

_______________________
Unofficial Witness

_______________________
Notary Public

My commission expires:

       [NOTARIAL SEAL]

<PAGE>

                                    EXHIBIT A

                                LEGAL DESCRIPTION

ALL THAT TRACT OR PARCEL OF LAND LYING AND BEING IN LAND LOT 885 OF THE 17TH
DISTRICT AND 2ND SECTION OF COBB COUNTY, GEORGIA AND BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS:

BEGINNING AT A 1/2 INCH REBAR SET AT THE INTERSECTION FORMED BY THE INTERSECTION
BY THE NORTHERLY RIGHT OF WAY OF PACES FERRY ROAD (R/W VARIES) AND THE WEST LINE
OF LAND LOT 885; THENCE NORTH 01 DEGREES 10 MINUTES 34 SECONDS EAST A DISTANCE
OF 568.74 FEET TO A 1/2 INCH REBAR SET; THENCE NORTH 87 DEGREES 11 MINUTES 35
SECONDS EAST A DISTANCE OF 563.45 FEET TO A 1/2 INCH REBAR SET; THENCE SOUTH 02
DEGREES 54 MINUTES 56 SECONDS EAST A DISTANCE OF 282.91 FEET TO A POINT; THENCE
NORTH 88 DEGREES 04 MINUTES 20 SECONDS EAST A DISTANCE OF 7.89 FEET TO A POINT;
THENCE SOUTH 02 DEGREES 46 MINUTES 45 SECONDS EAST A DISTANCE OF 62.64 FEET TO A
POINT; THENCE SOUTH 55 DEGREES 28 MINUTES 15 SECONDS EAST A DISTANCE OF 181.68
FEET TO A 1/2 INCH REBAR SET; THENCE SOUTH 05 DEGREES 27 MINUTES 42 SECONDS EAST
A DISTANCE OF 134.96 FEET TO A POINT ON THE NORTHERLY RIGHT OF WAY OF PACES
FERRY ROAD ( R/W VARIES); THENCE ALONG THE NORTHERLY RIGHT OF WAY OF PACES FERRY
ROAD SOUTH 84 DEGREES 36 MINUTES 16 SECONDS WEST A DISTANCE OF 78.81 FEET TO A
1/2 INCH REBAR SET; THENCE CONTINUING ALONG SAID RIGHT OF WAY SOUTH 83 DEGREES
33 MINUTES 34 SECONDS WEST A DISTANCE OF 127.40 FEET TO A 1/2 INCH REBAR SET ;
THENCE LEAVING SAID RIGHT OF WAY AND RUNNING NORTH 14 DEGREES 37 MINUTES 08
SECONDS WEST A DISTANCE OF 178.56 FEET TO A 3/4 INCH OPEN TOP PIPE FOUND; THENCE
NORTH 65 DEGREES 17 MINUTES 32 SECONDS WEST A DISTANCE OF 123.74 FEET TO A 3/4
INCH OPEN TOP PIPE FOUND; THENCE SOUTH 75 DEGREES 25 MINUTES 40 SECONDS WEST A
DISTANCE OF 50.01 FEET TO A 1/2 INCH REBAR SET; THENCE SOUTH 15 DEGREES 11
MINUTES 32 SECONDS EAST A DISTANCE OF 58.58 FEET TO A 1/2 INCH REBAR FOUND;
THENCE SOUTH 04 DEGREES 02 MINUTES 37 SECONDS EAST A DISTANCE OF 173.22 FEET TO
A 1/2 INCH REBAR SET ON THE NORTHERLY RIGHT OF WAY OF PACES FERRY ROAD ( R/W
VARIES); THENCE ALONG SAID RIGHT OF WAY AND FOLLOWING THE ARC OF A CURVE TO THE
RIGHT A DISTANCE OF 294.01 FEET, SAID ARC HAVING A RADIUS OF 1517.58 FEET AND
BEING SUBTENDED BY A CHORD BEARING OF NORTH 87 DEGREES 28 MINUTES 06 SECONDS
WEST AND A CHORD DISTANCE OF 293.55 FEET TO A 1/2 INCH REBAR SET; THENCE
CONTINUING ALONG SAID RIGHT OF WAY NORTH 81 DEGREES 57 MINUTES 05 SECONDS WEST A
DISTANCE OF 86.50 FEET TO A 1/2 INCH REBAR SET AT THE INTERSECTION OF SAID
NORTHERLY RIGHT OF WAY AND THE WESTERLY LINE OF LAND LOT 885 AND THE POINT OF
BEGINNING.

                                      A-1Colonial Bank Management Team Incentive Plan

 Exhibit 10.1 
  

			
	

	 	COLONIAL BANK

 MANAGEMENT TEAM INCENTIVE PLAN 
 PLAN OVERVIEW 
 The 2006 Management Team Incentive Plan (MTIP) is intended to reward eligible employees for
their contribution towards the success of the bank and to encourage and reward the attainment of established corporate and individual goals. 
 PLAN
ADMINISTRATION 
 The Plan is authorized by Colonial Bank, subject to review and approval of the Compensation Committee of the Board of Directors. The
plan is administered by Human Resources. Colonial Bank has sole authority to interpret the Plan and to make or nullify any rules and procedures, as necessary, for proper administration. Any determination by the CEO, Chairman of the Board, in
conjunction with Human Resources will be final and binding on all Participants. 
 PARTICIPATION 
 The CEO, Chairman of the Board, will designate each year employees eligible to participate in the Plan. The CEO, Chairman of the Board, shall solicit the recommendation
of the Sr. Executive Vice Presidents and Regional Presidents with respect to the participation of key managers in the MTIP. Each eligible participant will be assigned to a tier for the purposes of determining incentive awards. Participation in the
Plan is conditional; participation in one Plan Year does not guarantee participation in successive years. 
 Employees who are placed on disciplinary
probation during the year are not eligible for an incentive payout even assuming they meet all other criteria established. Participants are eligible to receive an award payout if his/her performance rating is “meets expectations” or higher
during the plan year. Participants are ineligible to participate in any other performance based or discretionary cash incentive plan. 
 PLAN CHANGES
OR DISCONTINUANCE 
 The Bank has developed the incentive plan on the basis of existing business, forecasts, market and economic conditions, current
services, and personnel assignments. If substantial changes occur that affect these conditions, services, assignments, or forecasts, the Bank may, in its sole discretion, add to, amend, modify or discontinue any of the terms or conditions of the
Plan at any time during the Plan’s period, provided that this action does not reduce the amount of award earned prior to the date of action. 
 INCENTIVE PAYMENTS 
 Incentive payments will be paid as soon as practically possible after the close of the plan year and will be
based on the Participant’s year end base salary. For the purposes of incentive calculations, the year end base salary is defined as the Participant’s annual rate of pay effective December 31 of the plan year. A Participant must be
actively employed on the date payment is made. 
 Any rights accruing to a Participant or his/her beneficiary under the incentive plan shall be solely those
of the Participant. Nothing contained in the Plan, and on action taken pursuant to the provisions hereof, will create or is construed to create a trust of any kind, or a pledge, or a fiduciary relationship between the Bank and Participant or any
other person. Nothing herein will be construed to require the Bank to maintain any fund or to segregate any amount for a Participant’s benefit. 
 Payments will be recognized as compensation in the year paid for inclusion under applicable benefit programs. Payments will be considered taxable income to Participants in the year paid and will be subject to withholding for required income
and other applicable taxes. Payment of all applicable taxes is the Participant’s responsibility. 
  

					
		 	Page 1	 	

 TERMINATION OF EMPLOYMENT 
 Participants must be employed by Colonial Bank at the time of payout; no incentive payments will be paid to a former employee. 
 NEW HIRES, PROMOTIONS AND TRANSFERS 
 Participants who are not employed by the Bank at the beginning of the Plan year may participate
in the Plan at the point of hire at the discretion of the CEO, Chairman of the Board. Incentive award levels will be adjusted on a pro rata basis to reflect the remaining performance period. 
 A Participant who is transferred or promoted into an eligible position during the Plan year may participate in the Plan on a pro rata basis at the discretion of the CEO,
Chairman of the Board. When a Participant transfers from an eligible position to a non-eligible position prior to the end of the Plan year, he/she will not be eligible to receive a payout. 
 DISABILITY OR RETIREMENT 
 If a Participant is disabled by an
accident or illness, and is disabled long enough to be placed on short-term disability, his/her incentives for the Plan period shall be prorated so that no incentives will be earned during the period of short-term disability. If any employee is
placed on long-term disability, no continuing incentive payments will be due. 
 In the event of retirement, incentives will be paid in accordance with the
terms of the Plan up to the final date of active employment. Any additional payments will be reviewed on a case-by-case basis by Human Resources and approved by the CEO, Chairman of the Board. 
 LEAVE OF ABSENCE 
 Unless otherwise stated by law, a
Participant on leave of absence will receive payment for earned incentives for performance in an eligible position through the last full month of incentive-eligibility, based on the official effective date of leave. 
 A Participant on leave of absence does not earn incentives during his/her absence. When a Participant returns from a leave of absence to active service, he/she will be
eligible to earn incentive during the first month of service following the leave of absence. 
 PERSONAL AND FAMILY LEAVES 
 An employee is eligible to be paid earned incentives defined below while on paid leave (i.e. personal day, Bank holiday, vacation) and pre-approved Family Medical Leave
Act (“FMLA”) absences. An employee that is utilizing his FMLA leave will only be paid for earned incentives due. Earned incentive is defined as any amounts earned prior to the leave, which contributed to goal attainment during the leave
period. 
 RIGHTS AND LIMITATIONS 
 The Plan
summary is the only agreement governing between Colonial Bank and the Participant. This Plan supersedes any prior agreement or understanding regarding compensation. Any undocumented agreement of any kind concerning compensation will not be honored.
Any arrangements different from those provided for in the Plan must be in writing, signed by the Participant and Management, and submitted to Human Resources. 
 No agreements will be effective until all approvals have been secured. Any applicable transactions or business conducted outside of established guidelines, or deviations from the terms & conditions without documented Management
approval, may result in the withholding or recovery of compensation on said transactions. 
 Nothing in this plan may be construed to give any person any
right to be paid any amount other than under the terms of this Plan. 
 The Plan will not be deemed to give any Participant the right to be retained in the
employ of the Bank, nor will the Plan interfere with the right of the Bank to discharge any Participant at any time. This Plan does not constitute a contract of employment. All Participants are “at-will” employees of the Bank and may be
terminated from their employment with the Bank for any reason whatsoever or for no reason at all. 
  

					
		 	Page 2	 	

 HOW THE PLAN WORKS 
 The following is an illustrative example of how the Plan works. Individual Goal Sheets will describe the specifics of each Participant’s opportunity. 
 The Plan consists of corporate and/or individual measures. Corporate and individual goals have threshold, target and superior performance levels. Threshold is defined as the level below which no award would be earned and superior is defined
as the level at which point the award becomes capped. Participants must receive at least threshold performance level in each category to receive a payout for that category. Incentive maximums, expressed as a percentage of base salary, are based upon
the Participant’s incentive tier. Payouts can be awarded for achievement of corporate goals if individual goals are not met and may be awarded for individual goals if corporate goals are not met. 
 Corporate measures for 2006 have been defined as Earnings Per Share Growth and Revenue Growth. Individual goals are established by the Participant’s manager. Each
Participant, depending on his/her role in the organization, will have 1-3 individual goals established. Individual goals should represent clearly defined and meaningful accomplishments desired within the framework of the responsibilities of the
Participant. To the extent possible, individual goals should be measurable and quantifiable. The minimum weight for each individual goal is 10%. If necessary, goals may be revised during the plan year to reflect major changes in business priorities.
At the end of the Plan year, the Participant’s manager, in conjunction with Human Resources, will assess performance as compared to target performance and determine the individual award percentage. Performance levels between the threshold and
maximum levels are calculated as a percentage of the target level of performance. 
  

											
	AWARD OPPORTUNITY BY PERFORMANCE LEVEL
					
	 	  	 Performance Levels
	  	 Award Opportunity
	  	 	  	 
	Earnings Per Share Growth	  	Threshold	  	TBD	  	25% of Category	  	

	  	 Total corporate
 weights
 assigned by incentive tier

		  	Target	  	TBD	  	50% of Category	  	  
		  	Superior	  	TBD	  	100% of Category	  	  
		  		  		  		  	  
	Revenue Growth	  	Threshold	  	TBD	  	25% of Category	  	  
		  	Target	  	TBD	  	50% of Category	  	  
		  	Superior	  	TBD	  	100% of Category	  	  
						
	Individual Goal #1	  	Threshold	  	TBD	  	25% of Category	  	

	  	 Total individual
 weight
assigned
 by incentive tier

		  	Target	  	TBD	  	50% of Category	  	  
		  	Superior	  	TBD	  	100% of Category	  	  
		  		  		  		  	  
	Individual Goal #2	  	Threshold	  	TBD	  	25% of Category	  	  
		  	Target	  	TBD	  	50% of Category	  	  
		  	Superior	  	TBD	  	100% of Category	  	  
		  		  		  		  	  
	Individual Goal #3	  	Threshold	  	TBD	  	25% of Category	  	  
		  	Target	  	TBD	  	50% of Category	  	  
		  	Superior	  	TBD	  	100% of Category	  	  

  

					
		 	Page 3	 	

 TERMS AND CONDITIONS 
 DEFINITIONS 
  

	 	A.	EPS - Defined as diluted earnings per share for The Colonial BancGroup, Inc. 

  

	 	B.	Revenue Growth – Defined as Net Interest Income plus Noninterest Income. 

  

	 	C.	Individual Goals – Defined as each Participant’s performance against specific objectives agreed upon between the Participant and his/her manager at the beginning of the
plan year. If necessary, objectives may be revised during the plan year to reflect major changes in business priorities. Such revisions would need to be approved by Human Resources. 

 WINDFALL/BLUEBIRD CLAUSE 
 The Bank reserves the right to
exclude what might be considered a windfall or a bluebird from the incentive calculation. The CEO, Chairman of the Board, has sole discretion to determine whether revenue is considered a windfall or bluebird, and whether or not incentive payments
will be made or adjusted accordingly. The decision of the CEO, Chairman of the Board, is final, binding and cannot be appealed. 
 A windfall is revenue
generated that was realized outside the normal influence of the Participant. A windfall may result from Bank action such as a significant drop in interest rates, gain/loss on securities, a closure of a competitor, or entry into a new market. A
windfall may also be caused by customer decisions. In such circumstances a windfall is sometime excluded from normal incentive treatment or limited in payment. 
 A bluebird is a financial result that was realized without substantial influence of the Participant. A bluebird may result from such events as a competitor going out of business, or taking over an existing account. In such circumstances a
bluebird is excluded from normal incentive treatment. 
 OVERPAYMENT 
 When a Participant is overpaid an incentive, the Participant is obligated to repay the amount of overpayment in full to the Bank. Overpayment can result from, among other things, a cancellation, return, processing or
crediting errors, and other related causes. The overpayment is a liability of the Participant to the Bank until it is fully paid. 
 AWARD PAYOUT
ADJUSTMENTS 
 To ensure equitable treatment to both the Bank and Participants, the CEO, Chairman of the Board, will review and reserves the right to
exclude, adjust or reserve award payout resulting 
  

	•	 	Revenue generated substantially in excess of target or objective 

  

	•	 	Revenue producing a negative, poor, deferred, or unacceptable financial impact 

  

	•	 	Revenue generated which provide no recognizable financial revenue to the Bank 

  

	•	 	Revenue generated in which the Bank or affiliates invest or have other financial holdings/interests 

  

	•	 	Revenue generated in violation of ethical business practices, including but not limited to, fraud, forgery, falsification, misrepresentation, conflicts of interest, or violations of
federal, state, or local law. 

 The CEO, Chairman of the Board, reserves the right to make final and binding decisions regarding the amount of
award to be paid out to Participants. 
 RESTRICTIONS 
 No Participant shall make unauthorized verbal or written commitments, make unauthorized verbal or written statements regarding the Bank’s position with regard to competitors, suppliers or customers; alter the Bank’s standard
contract forms by making unauthorized verbal or written commitments; assign or give any gifts or money including but not limited to part of his/her compensation to any person, customer, or third party as an inducement, or accept any gratuity from
third parties when engaged in Bank activities. All Participants are expected to fully comply with any and all of the Bank policies and procedures established for proper conduct and reporting in business dealings. Such policies and procedures
include but are not limited to those dealing with conflicts of interest, board and directorship and Code of Ethics. Violation of these or any Bank policies and procedures may result in immediate employment termination. The Bank reserves the
unilateral right to terminate any individual’s participation in the Plan at any time. 
  

					
		 	Page 4	 	

			
	

	 	COLONIAL BANK

 MANAGEMENT TEAM INCENTIVE PLAN 
 ACKNOWLEDGEMENT FORM 
 I have received a copy of this plan document. I acknowledge that I have
read the Plan, understand all of its terms and conditions, and agree to abide and be bound by, all the stated terms and conditions. 
  

					
	  
	 		 	  

	        Plan Participant Name - Printed	 		 	Date
			
	  
	 		 	  

	        Plan Participant Signature	 		 	Date
			
	  
	 		 	  

	        Manager Signature	 		 	Date

  

					
		 	Page 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]