Document:

Exhibit 10.58

 

CW Loan No. 06-5319/10254

HEB Marketplace

 

PROMISSORY NOTE

(Fixed Rate)

 

	
  $21,500,000.00

  	
   

  	
  February 1, 2007

  

 

FOR VALUE RECEIVED, TRT HEB MARKETPLACE LP, a Delaware
limited partnership (“Maker”), promises to pay to the order of
COUNTRYWIDE COMMERCIAL REAL ESTATE FINANCE, INC., a California corporation
(together with any subsequent holder of this Note, and their respective
successors and assigns, “Holder”) at such address as Holder may from
time to time designate in writing, the principal sum of TWENTY-ONE MILLION FIVE
HUNDRED THOUSAND AND 00/100 DOLLARS ($21,500,000.00) together with interest
thereon and all other sums due and/or payable under any Loan Document; such
principal and other sums to be calculated and payable as provided in this Note.
This Note is being executed and delivered in connection with, and is entitled
to the rights and benefits of, that certain Loan Agreement of even date
herewith between Maker and Holder (as amended, modified and supplemented and in
effect from time to time, the “Loan Agreement”). Capitalized terms used
herein without definition shall have the meanings ascribed to such terms in the
Loan Agreement.

 

Maker agrees to pay the principal sum of this Note
together with interest thereon and all other sums due and/or payable under any
Loan Document in accordance with the following terms and conditions:

 

1.                                                                                             Interest Rate. Interest shall
accrue on the Principal Indebtedness at five and 4575/10000 percent (5.4575%)
per annum (the “Interest Rate”) commencing on the date of this Note. Interest
shall be computed on the actual number of days elapsed based on a 360-day year.

 

2.                                                                                             Payments. Maker shall make the
following payments to Holder:

 

(a)                                  On
the date hereof (unless the date hereof is the same calendar day as a “Payment
Date”), a payment of interest only for the first Interest Accrual Period.

 

(b)                                 On
March 8, 2007 (the “First Payment Date”) and on the same calendar day of
each calendar month (each, a “Payment Date”) through and including the
Payment Date occurring in January, 2017, Maker shall pay to Holder a monthly
payment of interest only based on the Interest Rate and the outstanding
Principal Indebtedness.

 

(c)                                  The
entire outstanding Indebtedness shall be due and payable on the Payment Date
occurring in February, 2017 (the “Maturity Date”), or such earlier date
resulting from acceleration of the Indebtedness by Holder.

 

(d)                                 “Interest
Accrual Period” means, initially, the period commencing on the Closing Date
and continuing to and including the calendar day preceding the next Payment
Date, and thereafter each period running from and including a Payment Date to
and including the calendar day preceding the next Payment Date during the term
of the Loan.

 

 

(e)                                  For
purposes of making payments hereunder, but not for purposes of calculating
Interest Accrual Periods, if the Payment Date of a given month shall not be a
Business Day, then the Payment Date for such month shall be the succeeding
Business Day.

 

3.                                                                                             Event of Default; Default Interest; Late Charge.
Upon the occurrence and during the continuance of an Event of Default, the
Indebtedness shall (a) become due and payable as provided in Article 8 of the
Loan Agreement, and (b) bear interest at a per annum interest rate equal to the
lesser of (i) the Maximum Amount (as defined in Section 8), and
(ii) the Interest Rate plus five percent (5%) (the “Default Rate”).
If Maker fails to pay any interest due under the Loan Documents on the date
when the same is due, Maker shall pay to Holder upon demand a late charge on
such sum in an amount equal to the lesser of (i) five percent (5%) of such
unpaid amount, and (ii) the maximum late charge permitted to be charged under
the laws of the State of where the Property is located (a “Late Charge”).
Maker will also pay to Holder upon demand, after an Event of Default occurs, in
addition to the amount due and any Late Charges, all reasonable costs of
collecting, securing, or attempting to collect or secure this Note or any other
Loan Document, including, without limitation, court costs and reasonable
attorneys’ fees (including reasonable attorneys’ fees on any appeal by either
Maker or Holder and in any bankruptcy proceedings).

 

4.                                                                                             Prepayment; Defeasance.

 

(a)                                  Maker
shall not be permitted at any time to prepay all or any part of the Loan except
as expressly provided in this Section 4. Provided that no Event of
Default then exists, and so long as Maker has given Holder not less than
fifteen (15) days’ prior written notice, Maker may voluntarily prepay the
Indebtedness in full but not in part only on or after the date which is three
(3) Payment Dates prior to the Maturity Date (the “Open Date”) (and
there shall be no Yield Maintenance Premium or penalty assessed against Maker
by reason of such prepayment). If any such prepayment is not made on a Payment
Date, Maker shall also pay to Holder interest calculated at the Interest Rate
that would have accrued on such prepaid Principal Indebtedness through the end
of the Interest Accrual Period in which such prepayment occurs. In connection
with such prepayment, the remaining balance of any funds on deposit in the
Reserve Accounts shall be applied to the outstanding Indebtedness.

 

(b)                                 Provided
that no Event of Default then exists, after the earlier to occur of (i) two (2)
years after “start-up day” (within the meaning
of Section 860G(a)(9) of the Code) of any real estate mortgage investment
conduit (as defined under Section 860D of the Code) (a “REMIC”) that
holds the Note, and (ii) three (3) years after the Closing Date, Maker
may cause the release of the Property from the Liens of the Loan Documents upon
satisfaction of the following conditions:

 

(i)                                     Maker
shall (A) provide not less than fifteen (15) days’ prior written notice to
Holder specifying a Payment Date (the “Defeasance Release Date”) on
which the payments and deposits provided in clauses (B) through (E) below are
to be made; (B) pay all interest accrued and unpaid on the Indebtedness to and
including the Defeasance Release Date; (C) pay all reasonable fees and expenses
associated with the defeasance of the Loan (including, without limitation, fees
of Rating Agencies and accountants, and attorneys) and all other sums then due
and payable under the Loan Documents; (D) deliver to Holder, “government securities” 

 

 

2

 

as used in section 2(a)(16)
of the Investment Company Act of 1940, as amended (15 U.S.C. 80a-1) and which
are not subject to prepayment, call or early redemption (“U.S.
Obligations”) (1) having maturity dates or being redeemable on or prior to,
but as close as possible to, the Business Day immediately preceding each
successive scheduled Payment Date (after the Defeasance Release Date) through
and including the Open Period Date, (2) in amounts sufficient to pay
(y) all scheduled principal and interest payments on this Note on each
Payment Date through and including the Open Period Date, and (z) the
Principal Indebtedness as of the Open Period Date, and (3) payable directly to
Holder; and (E) deliver to Holder (1) a security agreement, in form and substance
satisfactory to Holder, creating a first priority perfected Lien on the
deposits required pursuant to this Section 4(b) and the U.S. Obligations
purchased in accordance with this Section 4(b) (a “Security Agreement”),
(2) for execution by Holder, a release of the Property from the Lien of the
Mortgage in a form appropriate for the jurisdiction in which the Property is
located, (3) a written certification that the requirements set forth in this Section
4(b) have been satisfied, (4) an opinion of Maker’s counsel in form and
substance satisfactory to Holder stating, among other things, that (x) the U.S.
Obligations have been duly and validly assigned and delivered to Holder and
Holder has a first priority perfected security interest in and Lien on the
deposits required pursuant to this Section 4(b) and a first priority
perfected security interest in and Lien on the U.S. Obligations purchased
pursuant hereto and the proceeds thereof, (y) the defeasance will not
adversely affect the status of any REMIC formed in connection with a Secondary
Market Transaction, and (z) in
the event of a bankruptcy proceeding or similar occurrence with respect to
Maker, none of the U.S. Obligations purchased pursuant hereto nor any proceeds
thereof will be property of Maker’s estate under Section 541 of the Bankruptcy
Code or any similar statute and the grant of security interest therein to
Holder shall not constitute an avoidable preference under Section 547 of the
Bankruptcy Code or applicable state law, and (5) such other certificates,
documents or instruments as Holder may request including, without limitation,
(y) written confirmation from the relevant Rating Agencies that such defeasance
will not cause any Rating Agency to withdraw, qualify or downgrade the
then-applicable rating on any security issued in connection with any Secondary
Market Transaction, and (z) a certificate from a certified public accountant
reasonably acceptable to Holder certifying that the amounts of the U.S.
Obligations satisfy all of the requirements of this Note. In connection with
the foregoing, Maker appoints Holder as Maker’s agent for the purpose of
applying the amounts delivered pursuant to this Section 4(b) to purchase
U.S. Obligations.

 

(ii)                                  If
any notice of defeasance is given, Maker shall be required to defease the Loan
on the Defeasance Release Date (unless such notice is revoked in writing by
Maker prior to the date specified therein in which event Maker shall
immediately reimburse Holder for any reasonable costs incurred by Holder in connection
with Maker’s giving of such notice and revocation).

 

(iii)                               In connection with a
defeasance of the Loan, Maker may assign to such other entity or entities
established or designated by Maker and approved by Holder in its reasonable
discretion (the “Successor Obligor”) all of Maker’s obligations under
this Note, the other Loan Documents and the Security Agreement together with
the pledged U.S. Obligations. The Successor Obligor shall assume, in a writing
or writings reasonably satisfactory to Holder, all of Maker’s obligations under
this Note, the other Loan Documents and the Security Agreement and, upon such
assignment Maker shall, except as set forth herein, be relieved of its
obligations hereunder. If a Successor Obligor assumes all or any part of Maker’s
obligations, 

 

3

 

Holder may require as a condition to such defeasance,
such additional legal opinions from Maker’s counsel as Holder reasonably deems
necessary to confirm the valid creation and authority of the Successor Obligor,
the assignment and assumption of the Loan, the Security Agreement and the
pledged U.S. Obligations between Maker and Successor Obligor, and the
enforceability of the assignment documents and of the Loan Documents as the
obligation of Successor Obligor. Notwithstanding the foregoing or anything else
in this Section 4(b), nothing in this Section 4(b) shall release
Maker from any liability or obligation relating to any environmental matters
arising under Article 9 of the Loan Agreement.

 

(c)                                  Provided
that no Event of Default then exists, from and after the sixtieth (60th) Payment
Date (the “Yield Maintenance Date”), Maker may prepay the Indebtedness
in full, but not in part, upon not less than fifteen (15) days’ prior written
notice to Maker (and, if not the current holder of the Note, to Countrywide
Commercial Real Estate Finance, Inc., at the address set forth in the Loan
Agreement), and the payment of (i) all accrued and unpaid interest thereon to
and including the date of such prepayment (the “Prepayment Date”) (and
if any such prepayment is not made on a Payment Date, Maker shall also pay to
Holder interest calculated at the Interest Rate that would have accrued on such
prepaid Principal Indebtedness through the end of the Interest Accrual Period
in which such prepayment occurs), (ii) all other sums then due under the Loan
Documents, and (iii) the Yield Maintenance Premium (as defined below) (the sum of the amounts described in clauses
(i) through (iii) above are referred to herein as the “Yield Maintenance
Costs”); provided, however, in the event that the total
cost to fully defease the Loan in accordance with the requirements of Section
4(b) above would be less than the Yield Maintenance Costs, then, Maker
shall defease the Loan in full in accordance with Section 4(b) above.

 

“Yield Maintenance Premium” means an amount
equal to the greater of (a) a minimum prepayment fee equal to one percent (1%)
of the amount of the Principal Indebtedness being prepaid and (b) an amount
equal to the product obtained by multiplying:

 

(A)                              the
amount of the Principal Indebtedness being repaid,

 

by

 

(B)                                the
difference obtained by subtracting the Adjusted Yield Rate (as defined below)
from the Adjusted Interest Rate (as defined below),

 

by

 

(C)                                the
present value factor calculated using the following formula:

 

	
   

  	
   

  	
  1 - (1 + r/12)-n

  
	
   

  	
   

  	
  r

  
	
   

  	
   

  	
  r

  	
  =

  	
  Adjusted Yield
  Rate

  
	
   

  	
   

  	
  n

  	
  =

  	
  the remaining
  term of the Loan in months calculated as follows: the number of days (and any
  fraction thereof) between the date of the prepayment or acceleration and the
  Maturity Date, multiplied by 12/365.25

  

 

4

 

“Adjusted Interest Rate” means the Interest
Rate multiplied by 365.25/360.

 

“Adjusted Yield Rate” means the product of the
following formula: (((1+Reference Treasury Yield/2)1/6) - 1) multiplied by
12.

 

“Reference Treasury Yield” means the yield rate
on the U.S. Treasury with a maturity date closest to, but shorter than, the
remaining average life of the Loan, as reported in The Wall Street
Journal on the twenty-fifth Business Day preceding (a) the date
Maker stated to be the intended Prepayment Date in its notice of prepayment
given to Holder where prepayment is voluntary, or (b) the date Holder
accelerates the Loan or otherwise accepts a prepayment pursuant to this Note. In
the event that no yield rate is published for such U.S. Treasury, then the
nearest equivalent U.S. Treasury shall be selected at Holder’s discretion. If
the publication of such yield rates in The Wall Street Journal
is discontinued, Holder shall determine such yield rates from another published
source reasonably selected by Holder.

 

(d)                                 Except
as specifically set forth in Sections 2, 4(a), 4(b) and
4(c) above, or in Sections 7.6(c) or 12.28 of the Loan Agreement,
upon any other repayment of the Principal Indebtedness (including in connection
with an acceleration of the Loan) prior to the Yield Maintenance Date, Maker
shall pay to Holder on the date of such repayment, the amount that, when added
to the amount otherwise being repaid would be sufficient to purchase U.S.
Obligations that satisfy the requirements of Section 4(b) above (the “Prepayment
Premium”); provided, however, under no circumstances shall
the Prepayment Premium be less than zero. All Prepayment Premium payments
hereunder shall be deemed earned by Holder upon the funding of the Loan, shall
be required whether payment is made by Maker or any other Person, and may be
included in any bid by Holder at a foreclosure sale. Maker acknowledges that
the provisions of this Section 4 were independently bargained for and
constitute a specific material part of the consideration given by Maker to
Holder for the making of the Loan.

 

5.                                                                                             Method and Place of Payments; Application of
Payments; Maker Obligations Absolute.

 

(a)                                  Except
as otherwise specifically provided herein, all payments under this Note and the
other Loan Documents shall be made to Holder not later than 2:00 p.m., New
York City time, on or before the date when due, and shall be made in lawful
money of the United States of America in federal or other immediately available
funds to an address specified to Maker by Holder in writing, and any funds
received by Holder after such time, for all purposes hereof, shall be deemed to
have been paid on the next succeeding Business Day.

 

(b)                                 All
proceeds of payment, including any payment or recovery on the Property, shall
be applied to the Indebtedness in such order and in such manner as Holder shall
elect in Holder’s discretion.

 

(c)                                  Except
as specifically set forth in any Loan Document, all sums payable by Maker under
any Loan Document shall be paid without notice, demand, counterclaim (other
than mandatory counterclaims), setoff, deduction or defense and without
abatement, suspension, deferment, diminution or reduction.

 

5

 

6.                                                                                             Security. The obligations of Maker
under this Note are secured by, among other things, the Mortgage and Liens of
the other Loan Documents granted in favor of Holder by Maker and/or encumbering
or affecting the Property.

 

7.                                                                                             Waivers. With respect to the
amounts due pursuant to this Note or any other Loan Document except as
expressly provided in this Note or the Loan Documents, Maker waives the
following:  (a) all rights of exemption
of property from levy or sale under execution or other process for the
collection of debts under the Constitution or laws of the United States or any
State thereof; (b) demand, presentment, protest, notice of dishonor, notice of
nonpayment, notice of protest, notice of intent to accelerate, notice of
acceleration, suit against any party, diligence in collection of this Note and
in the handling of securities at any time existing in connection herewith, and
all other requirements necessary to enforce this Note except for notices required
by Governmental Authorities and notices required by the Loan Agreement; and (c)
any further receipt by Holder or acknowledgment by Holder of any collateral now
or hereafter deposited as security for the Loan.

 

8.                                                                                             Usury Savings Clause. This Note and
the other Loan Documents are subject to the express condition that at no time
shall Maker be obligated or required to pay interest on the Indebtedness at a
rate which could subject Holder to either civil or criminal liability as a
result of being in excess of the maximum rate of interest designated by
applicable laws relating to payment of interest and usury (the “Maximum
Amount”). If, by the terms of this Note or the other Loan Documents, Maker
is at any time required or obligated to pay interest on the Indebtedness at a
rate in excess of the Maximum Amount, the Interest Rate shall be deemed to be
immediately reduced to the Maximum Amount and all previous payments in excess
of the Maximum Amount shall be deemed to have been payments in reduction of
principal and not on account of the interest due hereunder. All sums paid or
agreed to be paid to Holder for the use, forbearance, or detention of the sums
due under the Loan, shall, to the extent permitted by applicable law, be
amortized, prorated, allocated, and spread throughout the full stated term of
the Loan until payment in full so that the rate or amount of interest on
account of the Loan does not exceed the Maximum Amount from time to time in
effect and applicable to the Loan for so long as the Loan is outstanding.

 

9.                                                                                             Modifications; Remedies Cumulative; Setoffs.
Holder shall not by any act, delay, omission or otherwise be deemed to have
modified, amended, waived, extended, discharged or terminated any of its rights
or remedies, and no modification, amendment, waiver, extension, discharge or
termination of any kind shall be valid unless in writing and signed by Holder
and Maker. All rights and remedies of Holder under the terms of this Note and
applicable statutes or rules of law shall be cumulative, and may be exercised
successively or concurrently. Maker agrees that there are no defenses, equities
or setoffs with respect to the obligations set forth herein as of the date
hereof, and to the extent any such defenses, equities, or setoffs may exist,
the same are hereby expressly released, forgiven, waived and forever
discharged.

 

10.                                                                                       Severability. Wherever
possible, each provision of this Note shall be interpreted in such manner as to
be effective and valid under applicable Legal Requirements, but if any provision
of this Note shall be prohibited by or invalid under applicable Legal
Requirements, such provision shall be ineffective to the extent of such
prohibition or 

 

6

 

invalidity,
without invalidating the remainder of such provision or the remaining
provisions of this Note.

 

11.                                                                                       Release. Holder
may, at its option, release any Property given to secure the Indebtedness, and
no such release shall impair the obligations of Maker to Holder.

 

12.                                                                                       Governing Law. This Note and each of the other Loan
Documents shall be interpreted and enforced according to the laws of the state
where the Property is located (without giving effect to rules regarding
conflict of laws).

 

13.                                                                                       Venue. Maker hereby consents and submits to the exclusive jurisdiction and
venue of any state or federal court sitting in the county and state where the
Property is located with respect to any legal action or proceeding arising with
respect to the Loan Documents and waives all objections which it may have to
such jurisdiction and venue. Nothing herein shall, however, preclude or prevent
Holder from bringing actions against Maker in any other jurisdiction as may be
necessary to enforce or realize upon the security for the Loan provided in any
of the Loan Documents.

 

14.                                                                                       Waiver of Jury Trial. MAKER AND
HOLDER TO THE FULLEST EXTENT THAT THEY MAY LAWFULLY DO SO, WAIVE TRIAL BY JURY
IN ANY ACTION OR PROCEEDING, INCLUDING, WITHOUT LIMITATION, ANY TORT ACTION,
BROUGHT BY ANY PARTY HERETO WITH RESPECT TO THIS NOTE OR THE OTHER LOAN
DOCUMENTS. EACH OF MAKER AND HOLDER AGREES THAT THE OTHER MAY FILE A COPY OF
THIS WAIVER WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND
BARGAINED AGREEMENT OF THE OTHER IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY
JURY, AND THAT, TO THE FULLEST EXTENT THAT IT MAY LAWFULLY DO SO, ANY DISPUTE
OR CONTROVERSY WHATSOEVER BETWEEN MAKER AND HOLDER SHALL INSTEAD BE TRIED IN A
COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 

15.                                                                                       Sales and Assignments. Holder may
assign, sell, securitize, participate, pledge and/or otherwise transfer all or
any portion of Holder’s right, title and interest in, to and under this Note
and/or the other Loan Documents in one or more transactions as set forth in the
Loan Agreement.

 

16.                                                                                       Due on Sale; Due on Encumbrance. Maker
understands that in making the Loan, Holder is relying to a material extent
upon the business expertise and/or net worth of Maker and, if Maker is also an
entity, its partners, members, officers or principals and upon the continuing
interest which Maker or its partners, members, officers or principals will have
in the Property and in Maker, respectively, and that a violation of Section 6.1
of the Loan Agreement may significantly and materially alter or reduce Holder’s
security for this Note. Accordingly, in the event that a violation of Section
6.1 of the Loan Agreement occurs, then the same shall be deemed to increase the
risk of Holder and Holder may then, or at any time thereafter, declare the
entire Indebtedness immediately due and payable.

 

7

 

17.                                                                                       Exculpation. Subject to the qualifications below, Holder
shall not enforce the liability and obligation of Maker to perform and observe
the obligations contained in the Loan Documents by any action or proceeding
wherein a money judgment shall be sought against Maker or its Affiliates,
principals, or shareholders or members, except that Holder may bring a
foreclosure action, an action for specific performance or any other appropriate
action or proceeding to enable Holder to enforce and realize upon its interest
and rights under the Loan Documents, or in the Property, the Rents, the
Insurance Proceeds, the Condemnation Proceeds or any other collateral given to
Holder pursuant to the Loan Documents; provided, however, that,
except as specifically provided herein, any judgment in any such action or
proceeding shall be enforceable against Maker only to the extent of Maker’s
interest in the Property, the Rents, the Insurance Proceeds, the Condemnation
Proceeds and any other collateral given to Holder, and Holder agrees that it
shall not sue for, seek or demand any deficiency judgment against Maker in any
such action or proceeding under or by reason of or under or in connection with
any Loan Document. The provisions of this Section 17 shall not, however,
(a) constitute a waiver, release or impairment of any obligation evidenced or
secured by any Loan Document; (b) impair the right of Holder to name Maker as a
party defendant in any action or suit for foreclosure and sale under the
Mortgage; (c) affect the validity or enforceability of any of the Loan
Documents or any guaranty made in connection with the Loan or any of the rights
and remedies of the Holder thereunder; (d) impair the right of Holder to obtain
the appointment of a receiver; (e) impair the enforcement of the Mortgage; (f)
constitute a prohibition against Holder to seek a deficiency judgment against
Maker in order to fully realize the security granted by the Mortgage or to commence
any other appropriate action or proceeding in order for Holder to exercise its
remedies against all of the Property; or (g) constitute a waiver of the right
of Holder to enforce the liability and obligation of Maker by money judgment or
otherwise, to the extent of any Losses incurred by Holder arising out of or in
connection with the following (each, a “Recourse Liability” and
collectively, the “Recourse Liabilities”):

 

(i)                                     intentional
fraud or intentional misrepresentation by Maker or Guarantor in connection with
the Loan;

 

(ii)                                  the
intentional material breach of any representation, warranty, covenant or
indemnification provision in any Loan Document by Maker or Guarantor concerning
Environmental Laws or Hazardous Substances, and any indemnification of Holder
with respect thereto contained in any Loan Document;

 

(iii)                               any
act of active intentional physical waste by Maker or Guarantor of the Property
or any portion thereof, or, during the continuance of any Event of Default, the
removal or disposal of any portion of the Property by Maker or Guarantor;

 

(iv)                              the
intentional misapplication, misappropriation, or conversion by Maker,
Guarantor, or any Affiliate of either of (A) any Insurance Proceeds paid by
reason of any Casualty, (B) any Condemnation Proceeds received in connection
with any Taking or (C) security deposits; or

 

(v)                                 the
intentional misapplication, misappropriation or conversion by Maker or
Guarantor or any Affiliate of any Rents during the continuance of any Event of
Default.

 

8

 

Notwithstanding anything
to the contrary in this Note or any of the Loan Documents, (A) Holder shall not
be deemed to have waived any right which Holder may have under Section 506(a),
506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a
claim for the full amount of the Indebtedness or to require that all collateral
shall continue to secure all of the Indebtedness in accordance with the Loan
Documents, and (B) Holder’s agreement not to pursue personal liability of Maker
as set forth above SHALL BECOME NULL AND VOID and shall be of no further force
and effect, and the Indebtedness shall be fully recourse to Maker in the event
that one or more of the following occurs (each, a “Full Recourse Event”):  (1) a voluntary Event of Default occurs under
Article 6 of the Loan Agreement; (2) Maker files a voluntary petition
under the U.S. Bankruptcy Code or any other federal or state bankruptcy or
insolvency law, or (3) Maker, Guarantor, or any
Affiliate, officer, director, or representative of Maker or Guarantor, files or
acquiesces in the filing of, or Maker acquiesces in the filing of, an
involuntary petition under the U.S. Bankruptcy Code or any other federal or
state bankruptcy or insolvency law against Maker.

 

[Signature on the
following page]

 

9

 

IN WITNESS WHEREOF, Maker has caused this Promissory
Note to be properly executed as of the date first above written and has
authorized this Promissory Note to be dated as of the day and year first above
written.

 

	
   

  	
  MAKER:

  
	
   

  	
   

  
	
   

  	
  TRT HEB MARKETPLACE LP,
  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  TRT HEB MARKETPLACE GP
  LLC, a Delaware limited

  liability company, its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  DCTRT REAL ESTATE
  HOLDCO LLC, a Delaware

  limited liability company, its Sole Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  DIVIDEND CAPITAL TOTAL
  REALTY

  OPERATING PARTNERSHIP LP, a Delaware

  limited partnership, its Sole Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  DIVIDEND CAPITAL TOTAL
  REALTY

  TRUST, INC., a Maryland corporation, its

  General Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Troy J. Bloom

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Troy J. Bloom

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  SecretaryExhibit
10.59

 

MANAGEMENT
AND LEASING AGREEMENT

 

THIS
MANAGEMENT AND LEASING AGREEMENT made as of this 5 day of
January, 2007, by and between TRT HEB Marketplace LP a Delaware limited
partnership (“Owner”), and Weitzman Management
Corporation, d/b/a CENCOR REALTY SERVICES, INC., a Texas
corporation, d/b/a The Weitzman Group whose
principal place of business is 3102 Maple Avenue, Suite 500, Dallas, Texas,
75201 (“Property Manager”) and THE WEITZMAN GROUP, INC., a Texas corporation,
whose principal place of business is 3102 Maple Avenue, Suite 350, Dallas,
Texas, 75201 (“Weitzman”).

 

WITNESSETH:

 

A.                                    Owner
is the owner of (or, if not currently the owner, intends to acquire) HEB Marketplace Shopping Center, located at 5601 Bandera Road, San Antonio, Bexar County, Texas, 78238,
Texas (the “Property”). The Property consists of certain real property and the
improvements constructed upon said real property.

 

B.                                    Owner
desires to retain the services of Property Manager, as an independent
contractor, for the management and operation of the Property and Property
Manager desires to manage and operate the Property upon the terms and
conditions set forth in this Agreement;

 

C.                                    Owner
desires to retain the services of Weitzman, as an independent contractor, for
the leasing of commercial space located upon the Property or portions thereof,
upon the terms and conditions set forth in this Agreement;

 

NOW,
THEREFORE, in consideration of the premises and the mutual
promises and covenants herein contained, Owner, Property Manager and Weitzman
agree as follows:

 

ARTICLE I

TERM OF
AGREEMENT

 

1.01  Term: 
The initial term of this Agreement shall commence on the date owner
closes on and purchases the property anticipated to be on or before February 2,
2007 (or, if Owner has not acquired the Property as of the date of this
Agreement, upon Owner’s acquisition of the Property), and shall continue in
full force and effect for a period of twelve (12) months, subject to earlier
termination as hereinafter provided. The term of this Agreement may be extended
for such additional periods of time as the parties agree to in writing.

 

ARTICLE
II

APPOINTMENT

 

2.01  Property Manager:  Owner hereby grants to Property Manager, as
an independent contractor, the sole and exclusive right for the day-to-day operation
of the Property to manage and operate the Property, subject to the terms and
provisions of this Agreement. Owner reserves the right to initiate, modify
and/or approve all policy matters not specifically covered in this Agreement. Property
Manager hereby agrees for the day-to-day operation of the Property 

 

 

to manage and operate the Property as an independent contractor subject
to the terms and conditions of this Agreement.

 

2.02  Weitzman:  Owner hereby grants to Weitzman, as an
independent contractor, the sole and exclusive right to lease rental space
located upon the Property, subject to the terms and provisions of this
Agreement. Owner reserves the right to initiate, modify and/or approve all
policy matters not specifically covered by this Agreement. Weitzman hereby
agrees to utilize its services as Owner’s exclusive leasing agent for the
Property as an independent contractor subject to the terms and conditions of
this Agreement.

 

ARTICLE
III

MANAGEMENT

 

3.01                        Costs
of Operation:  As used in this Agreement,
“Budget” shall mean a written estimate or projection of all receipts and
expenditures for the operation, maintenance and leasing of the Property during
a calendar year or any part of it falling within the term of this Agreement
(the “Fiscal Year”). All previously authorized costs incurred by Property
Manager and/or Weitzman pursuant to approved Budgets in connection with the
management, leasing, marketing and operation of the Property shall be borne by
Owner, except for the following costs which shall be borne by Property Manager
and/or Weitzman:

 

(a)  costs relating to bookkeeping services
required to be performed hereunder;

 

(b)  salaries and payroll expenses of executive
personnel and employees other than budgeted salaries, expenses and benefits of
personnel employed for the operation or management of the Property in
accordance with Section 3.04 hereof;

 

(c)  Property Manager’s overhead and general
administrative expenses (except copying costs incurred by Property Manager
relating to the Property and a pro rata portion of car phone costs incurred by
employees of Property Manager, which costs shall be payable in addition to any
other fee or charge payable by Owner);

 

(d)  costs of obtaining and maintaining real
estate brokers’ and salesmen’s licenses;

 

(e)  all costs and/or losses arising as a direct
result of the negligence or willful misconduct of Property Manager and/or
Weitzman, its agents, employees, and others under its control which are not
otherwise covered by the insurance coverage of Owner, or arising from Property
Manager’s and/or Weitzman’s default under any of its agreements and covenants
herein.

 

3.02                        General
Management Duties:  Pursuant to the
terms of this Agreement, Property Manager shall use due diligence and its best
efforts to manage and operate the Property in a first class manner, consistent
with the management and operation of comparable properties; shall provide such
services as are customarily provided by managers of properties of comparable
class and standing; and shall consult with Owner and keep Owner advised as to
all major or extraordinary matters and decisions affecting the Property. Property
Manager shall, without limiting the foregoing, perform all the following
services and duties for Owner in a faithful, diligent and efficient manner:

 

2

 

(a)                                 maintain
businesslike relations with tenants of the Property whose service requests
shall be received, considered and recorded in systematic fashion in order to
show the action taken with respect to each. Property Manager shall immediately
advise Owner of complaints of a serious nature and, after thorough
investigation, Property Manager shall report to Owner, in writing, with
appropriate recommendations;

 

(b)                                 collect
all rents and other sums and charges due from tenants, licensees and
concessionaires of the Property and, upon obtaining Owner’s consent, retain
attorneys, subject to Owner’s direction, or collection agencies for such
purpose;

 

(c)                                  at
the direction of Owner, pay all general real estate taxes, personal property
taxes and assessments levied against the Property, or any part thereof;

 

(d)                                 at
the direction of Owner, pay all sums and make all deposits becoming due and
payable under the provisions of any loan secured by a mortgage or trust deed
against the Property or any part thereof and otherwise perform all covenants
and obligations required to be performed under the provisions of any such
mortgage or trust deed (to the extent that the performance of such covenants
and obligations is within the control of Property Manager);

 

(e)                                  subject
to the limitations of approved Budgets, perform such other acts and deeds as
are reasonable, necessary and proper in the discharge of its management duties
under this Agreement;

 

(f)                                   obtain
and maintain all licenses, permits and certificates required by federal, state
and/or local authorities for the operation, maintenance and business of the
Property;

 

(g)                                  upon
Owner’s request, perform the “Construction Services” described on the
Construction Services Exhibit attached hereto as Exhibit “A”; and

 

(h)                                 To
the extent not required to be performed by tenants, Property Manager shall
comply with and abide by determinations and ordinances pertaining to the
Property of any Federal, state or municipal authority having jurisdiction
thereof of which Property Manager is aware, including, without limitation, the
Occupational Safety and Health Act (collectively, “Law”). If Property Manager
receives any notice of a violation of any Law, Property Manager shall promptly
notify Owner and furnish copies of such notice. Unless the cost of compliance
exceeds the Budget, Property Manager shall remedy the noncompliance and use
commercially reasonable efforts to avoid any penalty to which Owner may be
subject by reason of the noncompliance. Property Manager shall provide Owner
with evidence that the non-compliance has been remedied..

 

3.03                        Budgets:  Property Manager shall submit for approval of
Owner no later than thirty (30) days prior to the first day of each Fiscal Year
a proposed Budget with respect to the operation and management of the Property
for the ensuing Fiscal Year. In the event Owner, in Owner’s sole and absolute
judgment, disapproves of any proposed Budget submitted by Property Manager,
Owner shall give Property Manager written notice thereof, in which event
Property Manager shall make all revisions thereto which Owner shall direct and
resubmit the proposed Budget to Owner for approval. Until a new Budget is
approved, Property Manager shall operate on the Budget approved for the prior
Fiscal Year; provided, however, that Property 

 

3

 

Manager may incur
expenses or commit to incur expenses which exceed the annual amount allocated
to that expense item on the Budget approved for the prior Fiscal Year by 5% and
provided further, that Property Manager may incur expenses relating to taxes,
insurance, utilities, personnel under existing contracts and emergencies in
excess of amounts allocated to such items on the Budget approved for the prior
Fiscal Year. Each approved Budget shall constitute the control instrument under
which Property Manager shall operate for the Fiscal Year covered thereby. Approval
of the Budget shall be deemed to be approval by Owner of all items specified
therein. Property Manager shall not incur, or permit to be incurred, expenses
in any approved Budget (excluding utility expenses, general real estate taxes,
insurance premiums, financing costs and emergency expenses) in excess of the
amount set forth in the Budget for any single expense classification (e.g.,
cleaning expenses, H.V.A.C. expenses, etc.). Except as set forth herein and in
Section 3.06 (a), there shall be no variance from any approved Budget without
the prior written consent of Owner. Owner reserves the right to modify and/or
update the budget periodically throughout the year.

 

3.04                        Property
Personnel:  In accordance with
approved Budgets, Property Manager shall, at Owner’s expense, hire, employ,
compensate, supervise and discharge all employees required in connection with
the operation and management of the Property. All such personnel shall, in
every instance, be employees of Property Manager or a subsidiary or affiliate
of Property Manager. The granting of any non-budgeted employees’ salary, fringe
benefits and plans not required by law or union contract shall be subject to
the prior written approval of Owner. No increase in salary or wages shall be
made by Property Manager without Owner’s written approval. Property Manager
agrees to comply with all governmental anti-discrimination laws and shall not
do any act nor permit any act to be done which would constitute a violation of
any or all of such laws, and Property Manager hereby indemnifies and holds
harmless Owner from and against any and all claims, penalties, liabilities of
whatsoever kind and nature which may be asserted by any governmental body
having authority or by any person claiming to be aggrieved by reason of any
acts or failure to act by Property Manager in accordance with or in violation
of any said anti-discrimination law. Employees of the Property shall include
such other office and secretarial personnel and other personnel required to
operate and maintain the Property including air-conditioning mechanics,
electricians, plumbers, painters, carpenters, grounds keepers, janitorial and
custodial persons, security guards, etc., as approved by Owner at the Property
Manager’s request.

 

3.05                        Contracts
and Supplies:  Property Manager
shall, at Owner’s expense, upon Owner’s direction and, upon the best terms
available, execute contracts for the furnishing to the Property of required
utility services, heating and air-conditioning service and other maintenance,
security protection, pest-control and any other services and concessions which
are required in connection with the maintenance and operation of the Property. Said
contracts shall be for a one-year term, cancelable by either party on thirty
(30) days’ written notice, without cause. Property Manager shall also place
purchase orders for services and personal property as necessary to properly
maintain the Property. All such contracts and orders shall be subject to
limitations set forth in the approved Budget. When taking bids or issuing
purchase orders, Property Manager shall secure for and credit to Owner, any
discounts, commissions or rebates obtainable as a result of such purchases or
services. Property Manager shall make purchases and (where necessary or
desirable) let bids for necessary labor and materials at the lowest possible
cost as in its judgment is consistent with good quality, workmanship and
service standards. Property Manager shall not incur any obligation to any
person or entity in which Property Manager, its officers, agents, employees or
family members of any of the former, has a financial interest, at a price or
fee higher than that which would have been charged as a result of bona fide
arms-length negotiations for goods or services of comparable quality, and shall

 

4

 

disclose to Owner all non-arms-length
transactions. Property Manager shall use commercially reasonable efforts
(subject to all applicable Laws) to contract with qualified businesses owned by
minorities, women and disabled veterans. Property Manager shall competitively
bid all service contracts for repetitive services (e.g., janitorial,
landscaping, window washing) no less frequently than once every three years.

 

3.06                        Alterations,
Repairs and Maintenance:

 

(a)                                 Property
Manager shall, at Owner’s expense, perform or cause to be performed all
necessary or desirable repairs, maintenance, cleaning, painting and decorating,
alterations, replacements and improvements in and to the Property as are
customarily made in the operation of properties of the kind, size and quality
of the Property (including, but not limited to, tenant improvements) provided,
however, that no unbudgeted alterations, additions or improvements involving a
fundamental change in the character of any of the Building or constituting a
major new construction program shall be made without the prior written approval
of Owner (unless performed pursuant to any lease previously approved by Owner).
In addition, no unbudgeted expenditure in excess of $2,500 per item shall be
made without prior written approval of Owner, provided, however, that emergency
repairs involving manifest danger to life or property or immediately necessary
for the preservation or the safety of the Property or for the safety of the
tenants of the Property or required to avoid the suspension of any necessary
service to the Property or required by any judicial or governmental authority
having jurisdiction may be made by the Property Manager without prior written
approval and irrespective of the cost limitations imposed by this Section 3.06 (a);
further, provided that Property Manager shall give immediate telephone and
written notice to Owner of any such emergency repairs for which prior approval
is not required.

 

(b)                                 Upon
written request and at the direction of Owner, Property Manager shall, from
time to time during the term hereof, at Owner’s expense, make or cause to be
made all required capital improvements, replacements or repairs to the
Property.

 

(c)                                  In
connection with the construction of any alterations, additions or improvements
to the Property by tenants, Property Manager shall:  (i) regularly inspect and supervise the
progress of the construction; (ii) review construction draw requests to ensure
compliance with applicable contract and/or lease provisions; (iii) make
payments in accordance with draw requests; and (iv) coordinate construction
activities (e.g. use of elevators, utility disruptions, noise) to minimize
interference with tenants’ use of the Property.

 

(d)                                 Property
Manager shall give Owner written notice of any material or latent defect in the
Property and all parts thereof immediately after ascertaining thereof by
Property Manager, including without limitation, material defects in the roofs,
foundations and walls of the building and in the sewer, water, electrical,
structural, plumbing, heating, ventilation and air conditioning systems. Property
Manager shall promptly give Owner notice of any casualty affecting the Property.
Property Manager shall make periodic visual inspections of the Property
consistent with its expertise.

 

3.07                        Licenses
and Permits:  Property Manager shall,
at Owner’s expense, obtain and maintain in the name of Owner, all licenses and
permits required of Owner or Property Manager in connection with the management
and operation of the Property (but not in connection with the leasing of the
Property, which licenses and permits shall be the responsibility and at the
expense of Weitzman). Owner agrees to execute and deliver any and all
applications and other 

 

5

 

documents and to
otherwise cooperate with Property Manager in applying for, obtaining and
maintaining such licenses and permits.

 

3.08                        Compliance
With Laws:  Property Manager shall
notify Owner immediately upon receipt of any notice, demand or similar communication
charging or claiming a default with respect to any obligation of Owner, and
shall similarly notify Owner immediately upon receipt of any summons, notice,
demand or similar communication regarding any action at law or in equity or
before any regulatory body involving a claim against Owner or the Property, or
any part thereof. Subject to the foregoing notice requirements, Property
Manager shall comply with all statutes, laws, rules, regulations, requirements,
orders, notices and ordinances of any government or governmental agency having
jurisdiction over the Property and with the requirements of any insurance
companies covering any risks relating to the Property. Any such action taken by
Property Manager shall be subject to and preserve Owner’s right to contest such
violation. If the cost of compliance with any such statute or law exceeds
$1,000.00, in any instance, Property Manager shall promptly obtain Owner’s
written approval before authorizing or making any such expenditure.

 

3.09                        Legal
Proceedings:  Subject to the prior
written consent of Owner, Property Manager shall, at Owner’s expense and
direction, through counsel approved by Owner, institute any and all legal
and/or administrative actions or proceedings to collect charges, rents or other
income from the Property, to dispossess tenants or other persons in possession,
to cancel or terminate any lease, license or concession agreement for the
breach or default thereunder by the tenant, licensee or concessionaire against
the Property, or any portion thereof.

 

3.10                        Inventory:  Property Manager shall maintain a current
inventory of all personal property.

 

3.11                        Insurance
Coverage:  Owner shall, at Owner’s
expense, procure and maintain throughout the term hereof, insurance coverages
with respect to the Property as Owner deems appropriate, in amounts and issued
by companies approved by Owner.

 

Property Manager shall
immediately investigate and report to Owner and the insurance company involved
all accidents, claims for damage relating to the ownership, operation and
maintenance of the Property and any damage or any and all claims against
insurance companies arising out of any policies.

 

(a)                                 Property Manager shall maintain, at its
expense, insurance coverages in the following amounts:

 

(i)                                     Worker’s Compensation – Coverage A: statutory
amount

 

Coverage
B: Employer’s Liability insurance:

 

$500,000
Each Accident

 

$500,000
Disease, Policy Limit

 

$500,000
Disease, Each Employee

 

Worker’s
Compensation policy shall include a waiver of all rights of subrogation against
Owner for injuries sustained by Property Manager’s employees while working at
any Property.

 

6

 

(ii)                                  Commercial General Liability, on an
occurrence basis, including Bodily Injury and Property Damage Liability,
Personal and Advertising Injury Liability insuring the Property Manager’s
operations with respect to the Property under its management for the following
limits:

 

	
  General Aggregate

  	
  $

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  
	
  Products - Completed Operations Aggregate

  	
  $

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  
	
  Each Occurrence

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  
	
  Personal and Advertising Injury Liability

  	
  $

  	
  1,000,000

  	
   

  
					

 

Property manager’s
Commercial General Liability policy shall include Real Estate Property Managed
Endorsement: CG 22 70 11 85 and an endorsement deleting the contractual
liability exclusion contained in the Personal and Advertising Injury Liability
coverage

 

(iii)                               Owned, Hired and Non-Owned Business
Automobile liability insurance in an amount no less than $1,000,000 per
accident Combined Single Limit for bodily injury and property damage

 

(iv)                              Property Manager’s Errors & Omissions
Insurance in an amount not less than $1,000,000 per loss, aggregate.

 

(v)                                 Employee Theft Insurance in an amount not
less than $1,000,000. Employee Theft Insurance policy shall be endorsed to name
Owner as a loss payee and to provide evidence of coverage satisfactory to Owner
for theft of Owner’s money, securities and other property by employees of
Property Manager.

 

(vi)                              Property Insurance coverage for personal
property of Property Manager.

 

All
coverage shall be provided by insurance companies with a current Best’s Rating
of A VIII or higher. At the commencement of the Agreement, Property Manager
shall furnish Owner with Certificates of Insurance. All insurance policies
shall provide for 30 days’ written notice to Owner prior to the cancellation or
any material change to any provisions therein.. Certificates of Insurance shall
be modified so the words “endeavor to”, “but failure to mail such notice shall
impose no obligation or liability of any kind upon the company, its agents or
representatives”, and all provisions of similar effect shall be deleted from
the certificate form’s cancellation provision. At least ten (10) days prior to
the expiration of any such policy, Property Manager will provide to Owner
evidence of the renewal or replacement of the aforesaid policies.

 

3.12                        Signs:  Owner agrees to allow Property Manager and/or
Weitzman to place signs on or about the Property stating that Property Manager
and/or Weitzman is the management and leasing agent for the Property, subject
to Owner’s prior approval, which shall not be unreasonably withheld.

 

3.13                        Debts
of Owner:  All costs, expenses, debts
and liabilities owed to third persons and employees of the Property incurred by
Property Manager pursuant to the terms of this Agreement and in the course of
its operation and management of the Property shall be fully and promptly
reimbursed by Owner to Property Manager as herein provided.

 

7

 

3.14                        Allocation
of Costs:  With Owner’s prior written
approval, Property Manager may manage the Property in conjunction with other
properties managed by Property Manager expressly provided that certain costs
and expenses are allocated or shared among such properties on an equitable
basis (which shall be subject to Owner’s approval) and expressly provided that
the quality of such service by Property Manager at the Property is not
diminished.

 

ARTICLE
IV

MANAGEMENT
FEES

 

4.01                        Property
Management Fees:  (a) As consideration
of the performance by Property Manager of all of its property management
obligations under this Agreement, Owner agrees to pay to Property Manager a
property management fee of Two and one-half percent (2.5%) of monthly Gross
Income (as hereinafter defined), from the operation of the Property during the
period this Agreement remains in full force and effect. The term “Gross Income”
for the purposes of this Agreement is defined as all receipts of every kind and
nature actually collected from the operation of the Property, determined on a
cash basis, including without limitation, all rental or lease payments,
proceeds (including but not limited to tenant payments for real estate taxes,
common area maintenance expenses, and insurance premiums, but excluding late
fees and cancellation or penalty payments for termination rights), vending
machine collections, service charges, rental interruption insurance, and an
administrative charge for common area expenses, if allowed under the tenant
leases, and all other forms of miscellaneous income. Gross Income shall not
include (i) any amounts which are billed and/or owing until such amounts are
actually paid to Owner; (ii) deposits such as security, utility and/or for
damages until the forfeiture of any deposit and its payment to Owner in the
form of rent (as opposed to being in compensation for other damages suffered by
Owner); (iii) interest on bank accounts; (iv) proceeds from the sale of any
part or all, or refinancing of the Property; (v) insurance dividends or
proceeds; (vi) any trade discounts and/or rebates received in connection with
the operation and maintenance of the Property and/or purchase of personal
property; (vii) condemnation awards or payments; or (viii) amortization for
tenant work or amounts separately enumerated in leases, and/or tenant work
letters to be paid to Owner to reimburse it for tenant improvements or
reimbursements for additional services, repairs or improvements and/or such
other additional income Owner and Property Manager mutually agree to eliminate.

 

(b)                                 Transition
Fee:  Within thirty (30) days after
execution by all parties to this Agreement, for duties performed by Property
Manager in reviewing and abstracting Owner’s leases and contracts, preparing
ledgers, creating a database of Owner’s tenants and vendors, establishing
property bank account(s), and similar necessary, preliminary functions, Owner
shall pay to Property Manager a one-time fee (the “Transition Fee”) in the
amount shown on Schedule A attached hereto and incorporated herein by
this reference. The Transition Fee shall be based on the number of tenants with
active leases at the Property, including those tenants who have executed leases
with Owner that have not yet commenced, as of the Commencement Date of this
Agreement.

 

4.02                        Construction
Fees:  For construction services
performed at Owner’s request pursuant to the attached Construction Services
Exhibit, the fee described in such Exhibit shall be paid upon completion of
such service or project in accordance with Section 4.03 hereof.

 

8

 

4.03                        Payment
of Management/Construction Fees: 
Property Manager shall pay itself monthly during the Fiscal Year the
monthly management fee and construction fee (if any) provided for in Sections
4.01 and 4.02 hereof from the property bank account referred to in Article V
hereof, except where there exists an event of termination or this Agreement is
terminated.

 

4.04                        Extraordinary
Services:  For services requested by
Owner which are not usual, recurring, property management activities and are
not expected to occur more than once per year, Property Manager shall be
compensated for such efforts on a basis to be agreed to in writing, in advance,
between Owner and Property Manager. For illustrative purposes, such additional
services may include, but are not limited to, efforts related to required
estoppel certificates, subordination and non-disturbance agreements,
researching and/or gathering information pertaining to the sale or financing of
all or a part of the Property, tax matters (other than ad valorem real estate
taxes), casualty or condemnation of the Property, lawsuit defense (except where
related to intentional misdeeds of Property Manager), and other items of a
similar, non-recurring nature.

 

ARTICLE V

PROCEDURE
FOR HANDLING

RECEIPTS
AND OPERATING CAPITAL

 

5.01                        Bank
Deposits:  All monies, including
security deposits or other amounts paid as deposits, received by Property
Manager for or on behalf of Owner in connection with the operation and
management of the Property shall be deposited by Property Manager in an
operating account established at JPMorgan Chase Bank, unless otherwise directed
by Owner. The funds collected by Property Manager may be commingled with other
funds upon receipt in a central lockbox (unless otherwise required by
applicable law or any tenant lease).

 

5.02                        Security
Deposits:  Property Manager shall
deposit all tenant security deposits or other monies paid as deposits in the
operating account specified in Section 5.01 hereof. Property Manager shall draw
upon such account for all tenant deposit reimbursements and any interest
payments thereon required by law or under applicable leases. If required by
law, the security deposits shall bear interest at the rate required for such
deposit accounts under the laws of the State of Texas.

 

5.03                        Disbursements
of Deposits:  Property Manager shall
disburse and pay from the bank account specified in Section 5.01 hereof, such
amounts at such times as they may be required, in connection with the
management and operation of the Property in accordance with the provisions of
this Agreement. On the 10th day of each month during the term of
this Agreement, Property Manager will disburse to Owner or at the direction of
Owner all funds remaining in such bank account after payment of all expenses
and fees provided hereunder for the preceding calendar month, less an amount
for working capital approved by Owner. In the event the amounts in the bank
account are less than the approved expenses payable and working capital
provided hereunder, Property Manager shall notify Owner thereof and Owner shall
as soon as possible deposit into said account an amount not less than such
deficiency.

 

5.04                        Authorized
Signatories:  Designated officers and
employees of Property Manager, indicated to Owner in writing, shall be the
authorized signatories on the bank account established by Property Manager
pursuant to Section 5.01 hereof and shall have authority to make disbursements
from such account. Property Manager shall cause all persons who are 

 

9

 

authorized signatories or
who in any way handle funds for the Property to be bonded in an amount
acceptable to Owner.

 

ARTICLE VI

ACCOUNTING

 

6.01                        Books
and Records:

 

(a)                                 Property
Manager shall maintain on an accrual basis at the principal office and place of
business of Property Manager, a comprehensive system of office records, books
and accounts pertaining to the Property, which systems shall be satisfactory to
Owner and which records, books and accounts shall be available for examination
and copying by Owner and its agents, accountants and attorneys without advance
notice but at regular business hours. During the term of this Agreement,
Property Manager shall preserve all records, books and accounts for a period of
five (5) years, and at the end of such five (5) year period, shall, at Owner’s
direction, either destroy such records or deliver same to Owner. Within thirty
(30) days following the termination or expiration of this Agreement, Property
Manager will deliver to Owner such records. All such records shall, at all
times, be the property of Owner.

 

6.02                        Periodic
Statements; Audits:

 

(a)                                 On
or before ten (10) days following the end of each month during the term of this
Agreement, Property Manager shall deliver or cause to be delivered to Owner (i)
a summary of Gross Receipts (and any other income, receipts, proceeds or
revenue pertaining to the Property) and disbursements for the preceding
calendar month and the Fiscal Year to date; (ii) a rental delinquency schedule;
(iii) a monitoring statement comparing Budget items to actual expenses
incurred; (iv) copies of bank statements and bank reconciliations for all
accounts held for or on behalf of Property and/or Owner; (v) income statements;
and (vi) a Balance Sheet showing cash on hand and in bank accounts, cash
advances from Owner and cash distributions to Owner.

 

(b)  Within sixty (60) days after the end of each
Fiscal Year Property Manager will deliver or cause to be delivered to Owner, at
Owner’s expense, an income and expense statement showing the results of
operation of the Property during the preceding Fiscal Year, in a form
reasonably acceptable to Owner. Property Manager shall provide Owner with
information relating to Internal Revenue Service Form 1099 reportable expenses
which are associated with the Property.

 

ARTICLE VII

LEASING
AND MARKETING

 

7.01                        Leasing
and Marketing Duties:  Weitzman
agrees to take all actions reasonably necessary to lease the Property in
accordance with commercially reasonable standards for properties of comparable
size and quality. These actions shall include, but shall not be limited to,
preparing (or causing to be prepared), promotional materials regarding the
Property, cooperating with outside brokers who represent prospective tenants
and aiding Owner and its 

 

10

 

representatives in
preparations of plans and specifications and negotiating leases and other
documents necessary for the leasing of the Property. In the performance of its
duty to lease the Property during the term of this Agreement, Weitzman shall:

 

(a)                                 lease
space in the Property from time to time available for leasing at rental rates
of which Owner shall advise Weitzman in writing (subject to certain permitted
revisions which Owner may approve during lease negotiations). Notwithstanding
the foregoing, all leases shall be subject to Owner’s prior approval;

 

(b)                                 at
Owner’s expense, conduct such advertising, marketing and promotional activities
and retain consultants and space planners deemed necessary or appropriate by
Weitzman, subject to the limitations of approved Budgets;

 

(c)                                  diligently
investigate and pursue all prospective tenants and conduct such canvassing and
other solicitations as are reasonable in connection with the leasing of
available space in the Property;

 

(d)                                 participate
on behalf of and at the direction of Owner in the negotiation of all leases for
space in the Property subject to the provisions set forth herein; and

 

(e)                                  subject
to (a) above, submit all leases to Owner for approval and execution.

 

7.02                        Rights
of Owner:  At all times during the
term of this Agreement, Owner shall have the sole and exclusive right, to
approve all leases of space in the Property, approve rental rates as set forth
in the Budget and approve standard form leases and modifications thereto
submitted by Weitzman.

 

7.03                        Broker
License:  Weitzman represents to
Owner that it now is, and covenants to Owner that it will be at all times
during the term of this Agreement, a duly licensed real estate broker in the
State of Texas.

 

ARTICLE
VIII

LEASING
COMMISSIONS AND MARKETING FEES

 

8.01                        Leasing
Commissions:  As consideration for
the performance by Weitzman under Article VII, Owner agrees to pay leasing commissions
equal to the sum of four percent (4%) of the aggregate rents payable during the
first five years of the initial lease term plus two percent (2%) of the
aggregate rents payable during the subsequent years of the initial lease term to
Weitzman on all leases procured solely from Weitzman’s efforts hereunder and
signed during the term of this Agreement; provided, however, that in no event
shall Weitzman be entitled to a commission on any lease in excess of One
Hundred Thousand Dollars ($100,000). In computing any commission due hereunder,
the following shall be excluded from the rental used to compute the leasing
commission:  (i) any additional rent or
escalation for increases in operating costs, real estate taxes or rent due to
increases in the Consumer Price Index or other cost of living index (ii)
cancellation or penalty payments for termination rights; (iii) late payment
charges; (iv) percentage rentals on retail leases over minimum rentals; (v)
amortization for tenant work or amounts separately enumerated in leases and/or
tenant work letters to be paid to Owner to reimburse it for tenant
improvements; (vi) security deposits; (vii) utilities, electricity, 

 

11

 

services, heat and/or
air-conditioning furnished or paid for by Owner; and (viii) rental payable but
not received by Owner by reason of concession.

 

8.02                        Leasing
Commissions – Options, Rights, Expansions and Renewals:  Any commission payable in connection with a
lease renewal, extension or expansion occurring, whether or not pursuant to any
lease option or right, shall be payable only at such time in the event such
option or right is exercised or the lease is renewed and shall be computed as
follows:

 

(a)                                 In
the event of the extension or renewal of a lease for the same space then leased
by an existing tenant, whether or not pursuant to an option (except for
existing tenants with a fixed-rate option that does not require negotiation) or
right of first refusal, the leasing commission shall be paid in an amount equal
to the sum of two percent (2%) of the aggregate rents payable during the first
five years of the extended lease term plus one percent (1%) of the aggregate
rents payable during the subsequent years of the extended lease term.

 

(b)                                 In
the event of the leasing of additional space by a tenant with whom Owner has
previously executed a lease, whether or not pursuant to an option or right of
first refusal, the leasing commission shall be paid in an amount equal to the sum
of three percent (3%) of the aggregate rents payable during the first five
years of the expansion lease term plus one nad one half percent (1.5%) of the
aggregate rents payable during the subsequent years of the expansion lease term.

 

8.03                        Leasing
Commissions — Tenant Cancellation Rights: 
Unless and except to the extent that upon cancellation a tenant is
obliged to make a cancellation payment to the Owner, no commission shall be
initially payable under any lease with regard to any portion of the original
term which may be canceled at the tenant’s election and such cancelable period
shall not be deemed to be included in the original lease term for purposes of
computing the leasing commission. Such commission attributable to that portion
of the lease which is subject to cancellation shall be payable only at such
time and in the event that such cancellation right lapses and is unexercised or
is otherwise waived by the tenant.

 

8.04                        Payment
of Leasing Commissions:  On all
leases for which Weitzman is entitled to receive a commission hereunder, such
commission shall be paid one-half upon receipt of a lease executed by both
Owner and tenant, and one-half when the said tenant opens for business and pays
the first rental installment.

 

8.05                        Cooperating
Broker:  Notwithstanding anything in
this Article VIII to the contrary, in the event an outside broker other than
Weitzman or a Weitzman Group broker (not assigned to the Property) representing
a tenant is involved in procuring a tenant lease for the Property, Owner will
pay a total leasing commission equal to one and one-half times the commission
otherwise payable hereunder. In such event, Weitzman and the outside broker
will share the commission according to a separate agreement. The exclusions
contained in Section 8.01 shall be applied in determining any commission
payable under this Section 8.05.

 

Weitzman shall and does hereby indemnify and hold Owner harmless from:  (a) any and all claims of other brokers (or
real estate agents or any others) (“Cooperating Brokers”) with which Weitzman
has dealt for all liabilities, costs, and expenses (including court costs and
attorneys’ fees) which Owner incurs with respect to such claims and (b) valid
claims by any tenant for any

 

12

 

rebate, credit, concession,
allowance or offset not set forth in any new lease or renewal or extension of
any existing lease which was either procured, negotiated or solicited by
Weitzman.

 

8.06                        Post-Termination
Commissions:  Upon termination of
this Agreement, Weitzman will furnish in writing to Owner, within thirty (30)
days, a list of all tenant prospects to whom Weitzman has both shown the
premises and introduced to Owner. In reference to said list of prospects, Owner
agrees to pay all commissions due Weitzman on all leasing contracts finalized
by either Weitzman or Owner for up to ninety (90) days following termination.

 

8.07                        Survival:  The obligation of Owner to pay commissions
due pursuant to this Article VIII shall survive the termination of this
Agreement expressly subject to Section 8.04 hereof.

 

ARTICLE
IX

INDEMNIFICATION

 

9.01                        Indemnification
of Property Manager and Weitzman. Owner agrees as follows:

 

(a)  to hold harmless, indemnify and defend
Property Manager and Weitzman from all expenses, liabilities, losses, judgments,
damages and actions including reasonable attorneys’ fees, which Property
Manager and/or Weitzman may suffer or incur as a result of injury, loss or
damage to person or property in and about the Property when Property Manager
and/or Weitzman is carrying out the provisions of this Agreement;

 

(b)  to reimburse Property Manager and/or Weitzman
for any money which Property Manager and/or Weitzman is required to pay in
connection with the Property as provided in and pursuant to the terms of this
Agreement, including payment for reasonable operating expenses, reasonable
attorneys’ fees or costs, fees and judgments in connection with the defense of
any claim, civil or criminal action, proceeding, charge or prosecution made,
instituted or maintained against Property Manager and/or Weitzman or Owner,
jointly or severally, affecting or due to the condition or use of the Property,
or acts or omissions of Owner, agents and employees of Owner; and

 

(c)  to retain legal counsel to defend promptly
and diligently, at Owner’s sole expense, any claim, action or proceeding
brought against Property Manager and/or Weitzman or Owner, jointly or
severally, arising out of or in connection with any of the foregoing. Notwithstanding
the foregoing, Owner does not, by this indemnification and hold harmless clause
indemnify or hold Property Manager and/or Weitzman free and harmless against
damages suffered as a result of negligence or misconduct or the act or omission
or the breach of any duty imposed by this Agreement or as a result of any act
or occurrence outside the scope of Property Manager’s and/or Weitzman’s
authority hereunder.

 

9.02                        Indemnification
of Owner:  Property Manager and/or
Weitzman agrees to hold harmless, indemnify and defend Owner from all expenses,
claims, liabilities, losses, judgments or damages, including reasonable
attorneys’ fees, which Owner may suffer or incur as a result of any act or
omission or negligence or misconduct of Property Manager and/or Weitzman, its
agents, employees, or others under the direction or control of Property Manager
and/or Weitzman, or any act outside the scope of Property Manager’s and/or
Weitzman’s authority hereunder and to defend promptly and diligently, at
Property Manager’s and/or Weitzman’s sole 

 

13

 

expense, any claim,
action, or proceeding brought against Owner or Property Manager and/or
Weitzman, jointly or severally, arising out of or in connection with any of the
foregoing.

 

It is expressly
understood and agreed that the provisions of Section 9.01 and Section 9.02
hereof shall survive the termination of this Agreement to the extent the cause
arose prior to termination.

 

ARTICLE X

TERMINATION

 

10.01                 Events of
Termination:

 

(a)                                 Owner
may terminate this Agreement upon ten (10) days’ prior written notice to
Property Manager if:

 

(i)  at any time during the term hereof, all or a
material part of the Property is damaged or destroyed; or

 

(ii)  all or substantially all of the Property is
taken by condemnation or eminent domain by any public or quasi-public body or
if a part of the Property is so taken that in Owner’s reasonable judgment the
remaining portion of the Property cannot be operated profitably.

 

(b)                                 This
Agreement shall immediately terminate without further notice upon the occurrence
of any one of the following, or all of them:

 

(i)  On the date of conveyance if Owner conveys
fee title to the Property to a purchaser not affiliated with Owner; provided,
however, that Owner may elect, upon sixty (60) days’ written notice to Property
Manager, to cause this Agreement to continue in full force and effect.

 

(ii)  If Property Manager becomes insolvent, or
makes an assignment for the benefit of creditors, or admits in writing its
inability to pay its debts generally as they become due, or consents to the
appointment of a receiver or trustee or liquidator of all or a substantial part
of its property, or has failed within thirty (30) days to pay, bond, or
otherwise discharge any judgment or attachment which is not stayed on appeal or
otherwise being appropriately contested in good faith; or Property Manager is
adjudicated a bankrupt, or a trustee or a receiver is appointed for Property
Manager or for all or a substantial part of Property Manager’s property in any
involuntary proceeding; or any court of competent jurisdiction asserts
jurisdiction over all or a substantial part of Property Manager’s property in
any involuntary proceeding for the reorganization, dissolution, liquidation or
winding up of Property Manager and such proceeding is not dismissed within
thirty (30) days thereof; or Property Manager files a petition or answer, not
denying jurisdiction, in any bankruptcy matter under the federal bankruptcy
code or any similar state or federal law, whether now or hereafter existing; or
if any such petition against Property Manager is approved.

 

(c)                                  Owner
may terminate this Agreement without cause upon providing thirty (30) days’
written notice to the other party. Property Manager or Weitzman may terminate
this Agreement without cause upon providing sixty (60) days’ written notice to
Owner.

 

14

 

10.02                 Effect of
Termination. If this Agreement is terminated in accordance with its terms,
all obligations of the parties shall cease as of the date of termination,
provided that:

 

(a)                                 Property
Manager, Weitzman and Owner shall each be liable to the other for all their
respective obligations arising hereunder through the date of termination;

 

(b)                                 neither
party shall be deemed to have waived any rights to remedies in law or equity
which may have arisen by reason of a breach or default by the other party in
performance of its obligations hereunder; and

 

(c)                                  in
the event of termination by Owner for reasons other than just cause, Property
Manager and/or Weitzman shall be entitled to receive all compensation and
reimbursement, if any, due through the date of termination. Notwithstanding
anything herein to the contrary, upon any termination of this Agreement,
Property Manager shall make a full and complete accounting to Owner with
respect to all matters outstanding as of the date of termination, and shall
assign to Owner all its rights, title and interest under such agreements,
contracts and leases as Owner may designate and shall deliver to Owner all
books, records, leases, documents, keys and contracts relating to the Property.

 

ARTICLE
XI

MISCELLANEOUS
PROVISIONS

 

11.01                 Notices:  All notices, demands, requests and other
communications required or permitted hereunder shall be in writing and shall be
deemed to be properly delivered or made when sent by United States certified
mail, return receipt requested, postage prepaid, addressed to the other party
at its address set forth below or at such other address as either party may
from time to time designate by notice to the other, and shall be deemed
effective five (5) days after the same is deposited in any post office or
branch post office regularly maintained by the United States Government, or
upon actual receipt, whichever is sooner. Alternatively, either party may use a
recognized overnight express service and such notice shall be deemed effective
on the next business day after deposit with such recognized overnight express
carrier, or upon actual receipt, whichever is sooner.

 

	
  To Property Manager:

  	
   

  	
  Weitzman Management
  Corporation,

  A Texas Corporation

  d/b/a Cencor Realty Services, Inc.

  70 N.E. Loop 410, Suite
  450

  San Antonio, TX 78216

  Attention: Karen Waring, CPM

  Director of Property Management

  
	
   

  	
   

  	
   

  
	
  To Weitzman:

  	
   

  	
  The Weitzman Group,
  Inc.

  70 N.E. Loop 410, Suite 450

  San Antonio, TX 78216

  Attention: David Nicolson,

  President

  

 

15

 

	
  To Owner:

  	
   

  	
  TRT HEB Marketplace LP

  518 17th Street, 17th Floor

  Denver, CO 80202

  Gregory M. Moran, CFA

  Vice President - Investments

  

 

Any party hereto may at
any time upon giving ten (10) days’ written notice to the other party hereto
designate any other address in substitution of the foregoing address to which
such notice or communication shall be given.

 

11.02                 Severability:  If any term, covenant or condition of this
Agreement or the application thereof to any person or circumstance shall, to
any extent, be held to be invalid or unenforceable, the remainder of this
Agreement, or the application of such term, covenant or condition to persons or
circumstances other than those as to which it is held invalid or unenforceable,
shall not be affected thereby, and each term, covenant or condition of this
Agreement shall be valid and shall be enforced to the fullest extent permitted
by law.

 

11.03                 Modification:  This Agreement may be amended or modified
only by a written instrument executed by Property Manager, Weitzman and Owner.

 

11.04                 Total
Agreement:  This Agreement is a total
and complete integration of any and all representations and agreements existing
between Property Manager, Weitzman and Owner and supersedes any prior oral or
written representations and agreements between them.

 

11.05                 Article and
Section Headings:  Article and
Section headings contained in this Agreement are for reference only and shall
not be deemed to have any substantive effect or to limit or define the
provisions contained herein.

 

11.06                 Security
Deposits:  All security deposits of
tenants of the Property shall be maintained under the joint control of Owner
and Property Manager as provided in Section 5.02 hereof.

 

11.07                 Successors and
Assigns:  This Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective successors and permitted assigns, provided, however, that neither
Property Manager nor Weitzman shall have the right to assign this Agreement
without the prior written consent of Owner, it being the intent of the parties
hereto that the services of Property Manager and Weitzman hereunder are
personal in nature.

 

11.08                 Governing Law:  This Agreement shall be construed in
accordance with and governed by the laws of the State of Texas.

 

11.09                 Independent
Contractor:  Property Manager shall
be an independent contractor for all purposes and shall not hold itself out as
an agent of Owner. Property Manager, unless specifically authorized in writing
by Owner, shall not enter into any contract, sign any agreement or incur any
expense on behalf of or in the name of Owner.

 

11.10                 Internal
Authority:  Anything contained herein
to the contrary notwithstanding, any authorizations, approvals or consents
required of Owner herein for the operation, management and/or leasing of the
Property, including but not limited to the expenditure of funds 

 

16

 

and the execution of
leases, must be conveyed in writing by Owner, it being expressly understood and
agreed that the parties hereto shall not be bound by any oral agreement.

 

11.11                 Special
Notices:  The Property Manager shall,
in addition to the other notices it is required to give pursuant to this
Agreement, give written notice to Owner of the occurrence of any of the
following events within five (5) business days of said occurrence:

 

(a)                                 The
receipt from any mortgagee of any notice of default under any mortgage
affecting the Property.

 

(b)                                 The
filing, or the threat to file, of any mechanic’s or materialman’s lien
materially affecting the Property.

 

(c)                                  Any
breach of contract by any contractor, subcontractor, service company or
material supplier which in the reasonable opinion of the Property Manager is of
material significance.

 

(d)                                 Any
labor dispute or work stoppage of a material nature involving any contractor or
subcontractor.

 

(e)                                  Any
rejection of any item of work by any building inspector, authorized government
authority or public utility which results in total, substantial or prolonged
(i.e., more than three [3] days) work stoppage.

 

(f)                                   Any
casualty loss.

 

(g)                                  Receipt
of any notice from any authority having jurisdiction over the Property, or
portion thereof, of the violation of any law, statute, rule, ordinance, court
decision or other such regulation.

 

(h)                                 Receipt
of any notice from an insurance carrier relating to existing claims covered by
insurance policies and/or cancellation or threat of cancellation of any such
insurance.

 

17

 

IN
WITNESS WHEREOF, this Agreement has been executed on the date
first above written.

 

	
   

  	
  OWNER:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PROPERTY MANAGER:

  
	
   

  	
   

  	
   

  
	
   

  	
  CENCOR REALTY SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WEITZMAN:

  
	
   

  	
   

  	
   

  
	
   

  	
  THE WEITZMAN GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  R. Marshall Mills

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
  President and
  Chief Operating Officer

  
					

 

18

 

SCHEDULE A

 

TRANSITION FEE

 

	
  Fee

  	
   

  	
  #
  of Tenants

  	
   

  
	
  $500 minimum

  	
   

  	
   

  	
   

  
	
  $1,500

  	
   

  	
  10-17

  	
   

  
	
  $2,000

  	
   

  	
  18-24

  	
   

  
	
  $2,500

  	
   

  	
  25+

  	
   

  

 

19

 

EXHIBIT “A”

CONSTRUCTION SERVICES
EXHIBIT

 

Upon Owner’s request,
Property Manager will perform the construction services described below. The
nature of Owner’s request, the project size and the level of complexity will
determine the level of service rendered. The fees payable for the performance
of such services are set forth on the next page of this exhibit.

 

II.                                   CONSTRUCTION
MANAGEMENT.

 

A.                                    Tenant
Finishout Construction Management for Leases with NO “Tenant Improvement”
Allowance:

 

1.                                      Review
tenant architectural plans for conformity to Owner’s specifications

2.                                      Conduct
on-site inspection(s) (at request of Owner, Owner’s designated rep. or Asset
Manager)

 

B.                                    Tenant
Finishout Construction Management for Leases with “Tenant Improvement”
Allowance:

 

1.                                      Review
tenant architectural plans for conformity to Owner’s specifications

2.                                      Conduct
on-site inspections

3.                                      Conduct
on-site punch-list inspection upon completion of tenant finishout

4.                                      Collect
Affidavits of Total Release and of Bills Paid from tenant’s G.C. &
subcontractors

5.                                      Collect
and maintain construction file info. (as-builts, certificate of occupancy,
etc.)

6.                                      Process
tenant improvement allowance

 

C.                                    Tenant
Finishout Construction Management for “Landlord’s Work” Leases:

 

1.                                      Obtain
competitive bids

2.                                      Prepare
standard A.I.A. Owner/Contractor Agreement

3.                                      Conduct
on-site pre-construction meeting

4.                                      Conduct
on-site intermittent inspections

5.                                      Manage
and direct draw request(s) from G.C. to Owner via standard AIA pay application

6.                                      Conduct
on-site punch-list inspection upon completion of tenant finishout

7.                                      Collect
Affidavits of Total Release and of Bills Paid from tenant’s G.C. & subcontractors

8.                                      Collect
and maintain construction file info. (as-builts, certificate of occupancy,
etc.)

 

CONSTRUCTION
SERVICES FEE SCHEDULE

 

II.                                   CONSTRUCTION
MANAGEMENT:

 

	
  Cost of Work

  	
   

  	
  Fees
  as a Percent of Cost of Work

  	
   

  
	
  Less than or equal to $10,000

  	
   

  	
  0

  	
  %

  
	
  Over $10,000 but less than or equal to
  $100,000

  	
   

  	
  5

  	
  %

  
	
  Over $100,000 but less than or equal to
  $200,000

  	
   

  	
  4

  	
  %

  
	
  Over
  $200,000 but less than or equal to $300,000

  	
   

  	
  3

  	
  %

  
	
  Over
  $300,000

  	
   

  	
  2

  	
  %

  

 

20

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