Document:

Exhibit 10.2

NOTE

	
  $31,650,000.00

  	
  Dallas, Texas

  	
  September 29, 2006

  

 

1.             FOR VALUE RECEIVED,
BEHRINGER HARVARD MOUNTAIN VILLAGE, LLC, a Colorado limited liability company (“Maker”),
hereby unconditionally promises to pay to the order of TEXANS COMMERCIAL
CAPITAL, LLC, a Texas limited liability company (“Payee”), at 777 East Campbell Road, Suite 650,
Richardson, Texas 75081, or such other address as Lender may from time to time
designate in accordance with Section 9.01 of the hereafter
described Loan Agreement, the sum of THIRTY-ONE MILLION SIX HUNDRED
FIFTY THOUSAND AND NO/100 DOLLARS ($31,650,000.00) (the “Loan Amount”),
in lawful money of the United States of America.    This note evidences a
straight line of credit (not a revolving line of credit).  Once the total
amount of principal has been advanced, borrower is not entitled to further loan
advances even though subsequent principal reductions have been made
and the total principal outstanding is less than the total principal
amount of the note.  Borrower agrees to be liable for all
sums advanced under the note, including without limitation any
amounts (a) advanced in accordance with the instructions of an authorized
person or (b) credited to any of borrower’s accounts with lender or paid by
cashier’s check.  The unpaid principal balance owing on this note at any
time may be evidenced by endorsements on this note or by lender’s internal
records, including daily computer print-outs.

2.             The
following terms shall have the definitions assigned below for all purposes of
this Note and the other Loan Documents. 
Each capitalized term not defined in this Note shall have the meaning
assigned to such term in the Loan Agreement.

“Applicable Interest Rate” means a floating per annum rate of
interest equal, on any day, and from day to day to the sum of (i) WSJ Prime and
(ii) three-quarters percent (0.75%).  The
Applicable Rate shall change, without notice to Maker, with each change in the
WSJ Prime.

“Closing Date”
means the date indicated in the upper right corner of this Note.

“Default Rate” means a per annum interest rate which shall from
day-to-day be equal to the Maximum Rate or, if no Maximum Rate is applicable to
this Note, eighteen percent.

“Late Payment Fee” means an amount equal to five percent (5%) of
any overdue payment as an estimate of the additional administrative costs and
expenses Lender will incur in servicing such late payment.

“Loan Agreement”
means that certain Construction Loan Agreement dated of even date herewith
between Maker and Payee, as it may from time to time be amended, restated or
supplemented.

“Maturity Date”
means October 1, 2009, as such date may be extended pursuant to Section 4(b)
of this Note.

“Maximum Rate” means the maximum rate (or, if the context so
requires, an amount calculated at such rate) of interest which the holder of
the Note is allowed to contract for, charge, take, reserve, or receive under
applicable law after taking into account, to the extent required by applicable
law, any and all relevant payments or charges.

“Payment Date” means the 1st day of each calendar month during
the Term of the Loan, commencing with the 1st day of November, 2006.

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“WSJ Prime” means the variable rate of interest published in the
Money Rates Section of the Wall Street Journal as the highest rate shown as the
“Prime Rate” on corporate loans at large United States money center commercial
banks; provided that, if the Wall Street Journal should discontinue publication
of such rate, Payee shall select a substitute rate, in Payee’s reasonable
discretion.

3.             The unpaid principal balance of this Note
shall bear interest from the date advanced until maturity at the Applicable
Interest Rate. Interest shall accrue on the basis of a 360-day year (at a daily
rate equal to 1/360th of the rate per annum herein provided), and shall be
charged and collected based on the actual number of days elapsed during the
interest period (based on a year consisting of 365 days, or 366 days in a leap
year); provided, however, if at any time such calculation would otherwise cause
the rate of interest to exceed the Maximum Rate, then for such period the daily
rate shall be 1/365th (1/366th in a leap year) of the rate per annum specified
therein.

4.             (a)           Principal of and interest accrued on the Note shall be due and payable
as follows:

(i)            On
each Payment Date prior to the Maturity Date, a payment of all unpaid interest
accrued to such date;  and

(ii)           On October
1, 2008, a payment of principal in the amount of $5,000,000.00 if required
pursuant to Section 2.07(b) of the Loan Agreement; and

(iii)          On
the Maturity Date, or such earlier date as the maturity of the Loan may be
accelerated pursuant to the Loan Documents, the full unpaid principal balance
of and accrued, unpaid interest on the Loan.

(b)           Notwithstanding anything to the contrary
contained herein, so long as no Event of Default or Potential Default has
occurred and is continuing, Lender shall, upon receipt of (i) Borrower’s
written request and (ii) a loan extension fee equal to the product of (x)
one-half percent (0.5%) times (y) the then outstanding principal balance of
this Note, both delivered to Lender on or before a date which is more than
thirty (30) days but not more than ninety (90) days prior to the then scheduled
Maturity Date, extend the maturity date of this Note for one year, to October 1,
2010.  As a condition precedent to each
such extension, Borrower shall execute and deliver such documentation and title
insurance endorsements, at Borrower’s cost, as Lender deems appropriate in
connection with each such extension.

(c)           Borrower shall cause all payments on the Loan
to be made to Lender at 777 East Campbell Road, Suite 650, Richardson, Texas
75081, or such other address as Lender may from time to time designate in
accordance with Section 9.01 of the Loan Agreement.

(d)           After the maturity of the Loan, the
obligations of Borrower and the rights and privileges of Lender under this Loan
Agreement, the Note and all other Loan Documents shall continue in full force
and effect until the Note and the remaining Obligation have been paid and
performed in full.

5.             All past-due principal of the Loan and, to
the extent permitted by applicable law, all past-due interest on the Loan shall
bear interest until paid at the Default Rate.

6.             If any payment of principal of or interest on
the Loan becomes overdue for a period in excess of ten (10) days, Borrower
shall pay to Lender a Late Payment Fee in connection with such 

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overdue payment, which amount is an estimate of the
additional administrative costs and expenses Lender will incur in servicing
such late payment.

7.             This
Note has been executed and delivered pursuant to the Loan Agreement and is the “Note”
referred to therein.  The holder of this
Note shall be entitled to the benefits provided in the Loan Agreement.  Reference is hereby made to the Loan Agreement
for a statement of (a) the prepayment rights and obligations of Maker,
(b) the events upon which the maturity of this Note may be accelerated,
and (c) the collateral and security for this Note.  The Loan Agreement provides that, with
certain exceptions provided for therein, any transfer, sale, lease, trade,
conveyance, exchange, mortgage, encumbrance, pledge, assignment or other
disposition of the Property or any direct or indirect ownership interest in
Maker or any Guarantor, or any portion of or interest in any of the foregoing,
constitutes an Event of Default under the Loan Agreement, and such provisions
of the Loan Agreement are hereby incorporated in this Note by reference.  The repayment of this Note is secured by the
Liens of the Loan Documents.

8.             Maker
and all sureties, endorsers, guarantors and other parties ever liable for
payment of any sums payable pursuant to the terms of this Note, jointly and
severally waive demand, presentment for payment, protest, notice of protest,
notice of acceleration, notice of intent to accelerate, diligence in
collection, the bringing of any suit against any party, and any notice of or
defense on account of any extensions, renewals, partial payment, or changes in
any manner of or in this Note or in any of its terms, provisions, and
covenants, or any releases or substitutions of any security, or any delay,
indulgence, or other act of any trustee or any holder hereof, whether before or
after maturity.

9.             It is the intention of each of Payee and
Maker to comply with all applicable federal and state Laws relating to usury;
that is, laws limiting charges for the use, detention or forbearance of money
and governing contracts relating thereto. 
Accordingly, this Note and all agreements between Maker and Payee,
whether now existing or hereafter arising, are expressly limited so that in no
event whatsoever, whether by reason of acceleration of the maturity of the
Obligation, or otherwise, shall the amount paid or agreed to be paid to Payee
for the use, forbearance or detention of the money to be loaned under the Note
or otherwise, or for the performance or payment of any covenant or obligation
contained herein or in any other Loan Document exceed the Maximum Rate.  In the event Payee ever receives, collects,
or applies as interest, any excess amount which would be excessive interest,
that amount shall be treated as a principal prepayment under this Note and
applied to reduce the outstanding principal balance of this Note; provided that,
if the principal of this Note is paid in full, any remaining excess shall be
paid to Maker.  In determining whether or
not the interest paid or payable, under any specific contingency, exceeds the
Maximum Rate, Maker and Payee shall, to the maximum extent permitted under
applicable law, (a) characterize any nonprincipal payment as an expense, fee,
or premium rather than as interest, (b) exclude voluntary prepayments and the
effects thereof, and (c) spread the total amount of interest throughout the
entire contemplated term of this Note; provided that, if this Note is paid and
performed in full prior to the end of its full contemplated term, and if the
interest received by Payee for the actual period of existence of this Note
exceeds the Maximum Rate, Payee shall refund to Maker the amount of such
excess, and, in such event, Payee shall not be subject to any penalties
provided by any laws for contracting for, charging, taking, reserving, or
receiving interest in excess of the Maximum Rate.  To the extent that Payee is relying on the
laws of the State of Texas for purposes of determining the Maximum Rate, such
term shall mean the interest rate ceiling from time to time in effect as
provided in Chapter 303 of the Texas Finance Code, as may be hereafter amended or
recodified.  To the extent United States
federal law permits Payee to contract for, charge or receive a greater amount
of interest, Payee will rely on United States federal law instead of Chapter
303 of the Texas Finance Code, as may be hereafter amended or recodified, for
the purpose of determining the Maximum Rate. 
Additionally, to the extent permitted by applicable law now or hereafter
in effect, Payee may, at its option and from time to time, implement any other
method of computing the Maximum Rate under Chapter 303 of the Texas Finance
Code, as may be hereafter 

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amended or recodified, or under other applicable
Law, by giving Maker the notice required by applicable law now or hereafter in
effect.  In no event shall the Loan be
considered a revolving credit account as defined in Chapter 346 of the Texas
Finance Code, as may be hereafter amended or recodified.  The terms and provisions of this Section 9
shall control and supersede every other provision of this Note and of all
agreements with respect to the Loan between Maker and Payee in the event of a
conflict in such provisions.

10            This
Note shall be governed by the laws of the State of Texas or the laws of the
United States, as applicable.  Any suit,
action or proceeding against Maker with respect to this Note or any judgment
entered by any court in respect thereof, may be brought in the courts of the
State of Texas or in the United States Courts located in the Dallas County,
Texas as Payee in its sole discretion may elect, and Maker hereby submits to
the non-exclusive jurisdiction of such courts for the purpose of any such suit,
action or proceeding.  Maker hereby
agrees that service of all writs, process and summonses in any such suit,
action or proceeding brought in the State of Texas may be brought upon its
process agent appointed below, and Maker hereby irrevocably appoints Gerald J.
Reihsen, III whose address is 15601 Dallas Parkway, Suite 600, Addison, TX
75001, its process agent, as its
true and lawful attorney-in-fact in the name, place and stead of Maker to
accept such service of any and all such writs, process and summonses.  Maker hereby irrevocably consents to the
service of process in any suit, action or proceeding in said court by the
mailing thereof by Agent by registered or certified mail, postage prepaid, to
Maker’s address set forth in Section 10.01 of the Loan
Agreement.  Maker hereby irrevocably
waives any objections which it may now or hereafter have to the laying of venue
of any suit, action or proceeding arising out of or relating to this Note
brought in the courts located in Dallas County, State of Texas, and hereby
further irrevocably waives any claim that any such suit, action or proceeding
brought in any such court has been brought in an inconvenient forum.  MAKER, AND PAYEE BY ITS ACCEPTANCE HEREOF,
HEREBY WAIVES TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING BROUGHT IN
CONNECTION WITH THIS NOTE, WHICH WAIVER IS INFORMED AND VOLUNTARY.  To the fullest extent permitted by applicable
law, Maker hereby waives any and all rights to require marshaling of assets by
Payee.

	
  BEHRINGER HARVARD MOUNTAIN VILLAGE, LLC,

  
	
  a Colorado limited liability company

  
	
   

  	
   

  
	
  By:

  	
  Behringer Harvard Short-Term Opportunity Fund I LP,

  
	
   

  	
  a Texas limited partnership,

  
	
   

  	
  its manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Behringer Harvard Advisors II LP.

  
	
   

  	
   

  	
  a Texas limited partnership,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Harvard Property Trust, LLC,

  
	
   

  	
   

  	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

 4Exhibit
10.3

 

GUARANTY
AGREEMENT

THIS GUARANTY AGREEMENT (“Guaranty”) is made as of September
29, 2006, by Guarantor (as hereinafter
defined) for the benefit of Lender (as hereinafter defined).

1.             Definitions.  As used in this Guaranty, the following terms
shall have the meanings indicated below:

(a)           The term “Lender” shall mean
TEXANS COMMERCIAL CAPITAL, LLC, a Texas limited liability company, whose
address for notice purposes is the following:

777 E. Campbell Rd., Suite 650

Richardson, Texas 75081

Attn:  Linda Robertson

(b)           The term “Borrower” (whether
one or more) shall mean the following:

BEHRINGER HARVARD MOUNTAIN VILLAGE, LLC, a Colorado
limited liability company

(c)           The term “Guarantor” shall mean BEHRINGER
HARVARD SHORT TERM OPPORTUNITY FUND I LP, a Texas limited partnership, whose address for notice purposes is the
following:

15601
Dallas Parkway, Suite 600

Addison, Texas  75001

Attention:  Gerald J. Reihsen, III

(d)           The term “Guaranteed Indebtedness”
shall mean (i) all principal indebtedness owing by Borrower to Lender now
existing or hereafter arising under that certain Construction Loan Agreement of
even date herewith between Lender and Borrower (the “Loan Agreement”) or
evidenced by that one certain Promissory Note dated of even date herewith, in the
original principal amount of Thirty-One Million Six Hundred Fifty Thousand and
No/100 Dollars ($31,650,000.00), executed by Borrower and payable to the order
of Lender and , (ii) all accrued but unpaid interest on any of the
indebtedness described in (i) above, (iii) all obligations of
Borrower to Lender under any documents evidencing, securing, governing and/or
pertaining to all or any part of the indebtedness described in (i) and (ii)
above (collectively, the “Loan Documents”), (iv) all costs and expenses
incurred by Lender in connection with the collection and administration of all
or any part of the indebtedness and obligations described in (i), (ii) and
(iii) above or the protection or preservation of, or realization upon, the
collateral securing all or any part of such indebtedness and obligations,
including without limitation all reasonable attorneys’ fees, and (v) all
renewals, extensions, modifications and rearrangements of the indebtedness and
obligations described in (i), (ii), (iii) and (iv) above.

2.             Obligations.  As an inducement to Lender to extend or
continue to extend credit and other financial accommodations to Borrower,
Guarantor, for value received, does hereby unconditionally and absolutely
guarantee the prompt and full payment and performance of the Guaranteed
Indebtedness when due or declared to be due and at all times thereafter.

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3.             Character
of Obligations.

(a)           This is an absolute, continuing and
unconditional guaranty of payment and not of collection and if at any time or
from time to time there is no outstanding Guaranteed Indebtedness, the
obligations of Guarantor with respect to any and all Guaranteed Indebtedness
incurred thereafter shall not be affected. 
This Guaranty and the Guarantor’s obligations hereunder are irrevocable.  All of the Guaranteed Indebtedness shall be
conclusively presumed to have been made or acquired in acceptance hereof.  Guarantor shall be liable, jointly and
severally, with Borrower and any other guarantor of all or any part of the
Guaranteed Indebtedness.

(b)           Lender may, at its sole discretion
and without impairing its rights hereunder, (i) apply any payments on the
Guaranteed Indebtedness that Lender receives from Borrower or any other source
other than Guarantor to that portion of the Guaranteed Indebtedness, if any,
not guaranteed hereunder, and (ii) apply any proceeds it receives as a
result of the foreclosure or other realization on any collateral for the
Guaranteed Indebtedness to that portion, if any, of the Guaranteed Indebtedness
not guaranteed hereunder or to any other indebtedness secured by such
collateral.

(c)           Guarantor agrees that its obligations
hereunder shall not be released, diminished, impaired, reduced or affected by
the existence of any other guaranty or the payment by any other guarantor of
all or any part of the Guaranteed Indebtedness and, in the event Paragraph 2
above partially limits Guarantor’s obligations under this Guaranty, Guarantor’s
obligations hereunder shall continue until Lender has received payment in full
of the Guaranteed Indebtedness.

(d)           Guarantor’s obligations hereunder
shall not be released, diminished, impaired, reduced or affected by, nor shall
any provision contained herein be deemed to be a limitation upon, the amount of
credit which Lender may extend to Borrower, the number of transactions between
Lender and Borrower, payments by Borrower to Lender or Lender’s allocation of
payments by Borrower.

(e)           Without further authorization from or notice to Guarantor,
Lender may compromise, accelerate, or otherwise alter the time or manner for
the payment of the Guaranteed Indebtedness, increase or reduce the rate of
interest thereon, or release or add any one or more guarantors or endorsers, or
allow substitution of or withdrawal of collateral or other security and release
collateral and other security or subordinate the same.

4.             Representations and
Warranties.  Guarantor
hereby represents and warrants the following to Lender:

(a)           This Guaranty may reasonably be
expected to benefit, directly or indirectly, Guarantor, and (i) if Guarantor is
a corporation, the Board of Directors of Guarantor has determined that this
Guaranty may reasonably be expected to benefit, directly or indirectly,
Guarantor, or (ii) if Guarantor is a partnership, the requisite number of its
partners have determined that this Guaranty may reasonably be expected to
benefit, directly or indirectly, Guarantor; and

(b)           Guarantor is familiar with, and has
independently reviewed the books and records regarding, the financial condition
of Borrower and is familiar with the value of any and all collateral intended
to be security for the payment of all or any part of the Guaranteed
Indebtedness; provided, however, Guarantor is not relying on such financial
condition or collateral as an inducement to enter into this Guaranty; and

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(c)           Guarantor has adequate means to
obtain from Borrower on a continuing basis information concerning the financial
condition of Borrower and Guarantor is not relying on Lender to provide such
information to Guarantor either now or in the future; and

(d)           Guarantor has the power and authority
to execute, deliver and perform this Guaranty and any other agreements executed
by Guarantor contemporaneously herewith, and the execution, delivery and
performance of this Guaranty and any other agreements executed by Guarantor
contemporaneously herewith do not and will not violate (i) any agreement
or instrument to which Guarantor is a party, (ii) any law, rule,
regulation or order of any governmental authority to which Guarantor is subject,
or (iii) its articles or certificate of incorporation or bylaws, if Guarantor
is a corporation, or its partnership agreement, if Guarantor is a partnership;
and

(e)           Neither Lender nor any other party
has made any representation, warranty or statement to Guarantor in order to
induce Guarantor to execute this Guaranty; and

(f)            The financial statements and other
financial information regarding Guarantor heretofore and hereafter delivered to
Lender are and shall be true and correct in all material respects and fairly present
the financial position of Guarantor as of the dates thereof, and no material
adverse change has occurred in the financial condition of Guarantor reflected
in the financial statements and other financial information regarding Guarantor
heretofore delivered to Lender since the date of the last statement thereof;
and

(g)           As of the date hereof, and after
giving effect to this Guaranty and the obligations evidenced hereby, (i)
Guarantor is and will be solvent, (ii) the fair saleable value of Guarantor’s assets
exceeds and will continue to exceed its liabilities (both fixed and
contingent), (iii) Guarantor is and will continue to be able to pay its debts
as they mature, and (iv) if Guarantor is not an individual, Guarantor has and
will continue to have sufficient capital to carry on its business and all
businesses in which it is about to engage.

5.             Covenants.  Guarantor hereby covenants and agrees with
Lender as follows:

(a)           Guarantor shall not, so long as its
obligations under this Guaranty continue, transfer or pledge any material
portion of its assets for less than full and adequate consideration; and

(b)           Guarantor shall promptly furnish to
Lender at any time and from time to time such financial statements and other
financial information of Guarantor as the Lender may require, in form and
substance satisfactory to Lender; and

(c)           Guarantor shall comply with all terms
and provisions of the Loan Documents that apply to Guarantor; and

(d)           Guarantor shall promptly inform
Lender of (i) any litigation or governmental investigation against
Guarantor or affecting any security for all or any part of the Guaranteed
Indebtedness or this Guaranty which, if determined adversely, might have a
material adverse effect upon the financial condition of Guarantor or upon such
security or might cause a default under any of the Loan Documents,
(ii) any claim or controversy which might become the subject of such
litigation or governmental investigation, and (iii) any material adverse
change in the financial condition of Guarantor.

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6.             Consent and Waiver.

(a)           Guarantor waives (i) promptness,
diligence and notice of acceptance of this Guaranty and notice of the incurring
of any obligation, indebtedness or liability to which this Guaranty applies or
may apply and waives presentment for payment, notice of nonpayment, protest,
demand, notice of protest, notice of intent to accelerate, notice of
acceleration, notice of dishonor, diligence in enforcement and indulgences of
every kind, and (ii) the taking of any other action by Lender, including
without limitation giving any notice of default or any other notice to, or
making any demand on, Borrower, any other guarantor of all or any part of the
Guaranteed Indebtedness or any other party.

(b)           Guarantor waives any rights Guarantor
has under, or any requirements imposed by, Chapter 34 of the Texas
Business and Commerce Code, as in effect on the date of this Guaranty or as it
may be amended from time to time.

(c)           Lender may at any time, without the
consent of or notice to Guarantor, without incurring responsibility to
Guarantor and without impairing, releasing, reducing or affecting the
obligations of Guarantor hereunder: 
(i) change the manner, place or terms of payment of all or any part
of the Guaranteed Indebtedness, or renew, extend, modify, rearrange or alter
all or any part of the Guaranteed Indebtedness; (ii) change the interest rate
accruing on any of the Guaranteed Indebtedness (including, without limitation,
any periodic change in such interest rate that occurs because such Guaranteed Indebtedness
accrues interest at a variable rate which may fluctuate from time to time);
(iii) sell, exchange, release, surrender, subordinate, realize upon or
otherwise deal with in any manner and in any order any collateral for all or
any part of the Guaranteed Indebtedness or this Guaranty or setoff against all
or any part of the Guaranteed Indebtedness; (iv) neglect, delay, omit, fail or
refuse to take or prosecute any action for the collection of all or any part of
the Guaranteed Indebtedness or this Guaranty or to take or prosecute any action
in connection with any of the Loan Documents; (v) exercise or refrain from
exercising any rights against Borrower or others, or otherwise act or refrain
from acting; (vi) settle or compromise all or any part of the Guaranteed
Indebtedness and subordinate the payment of all or any part of the Guaranteed
Indebtedness to the payment of any obligations, indebtedness or liabilities
which may be due or become due to Lender or others; (vii) apply any
deposit balance, fund, payment, collections through process of law or otherwise
or other collateral of Borrower to the satisfaction and liquidation of the
indebtedness or obligations of Borrower to Lender not guaranteed under this
Guaranty; and (viii) apply any sums paid to Lender by Guarantor, Borrower or
others to the Guaranteed Indebtedness in such order and manner as Lender, in
its sole discretion, may determine.

(d)           Should Lender seek to enforce the
obligations of Guarantor hereunder by action in any court or otherwise, Guarantor
waives any requirement, substantive or procedural, that (i) Lender first
enforce any rights or remedies against Borrower or any other person or entity
liable to Lender for all or any part of the Guaranteed Indebtedness, including
without limitation that a judgment first be rendered against Borrower or any
other person or entity, or that Borrower or any other person or entity should
be joined in such cause, or (ii) Lender first enforce rights against any
collateral which shall ever have been given to secure all or any part of the
Guaranteed Indebtedness or this Guaranty. 
Such waiver shall be without prejudice to Lender’s right, at its option,
to proceed against Borrower or any other person or entity, whether by separate
action or by joinder.

(e)           In addition to any other waivers,
agreements and covenants of Guarantor set forth herein, Guarantor hereby
further waives and releases all claims, causes of action, defenses and offsets
for any act or omission of Lender, its directors, officers, employees, representatives
or agents in connection with Lender’s administration of the Guaranteed
Indebtedness, except for Lender’s willful misconduct and gross negligence.

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(f)            Guarantor hereby knowingly and
intentionally waives any right of offset provided to Guarantor pursuant to
Section 51.005 of the Texas Property Code, and consents and agrees to be bound
by Section 3.8 of that certain Amended and Restated Deed of Trust,
Security Agreement, Financing Statement and Assignment of Rental of even date
herewith, executed by Borrower for the benefit of Lender, covering certain real
property located in Dallas County, Texas and certain personal property, all as
more particularly described therein.

7.             Obligations Not Impaired.

(a)           Guarantor agrees that its obligations
hereunder shall not be released, diminished, impaired, reduced or affected by
the occurrence of any one or more of the following events:  (i) the death, disability or lack of
corporate power of Borrower, Guarantor or any other guarantor of all or any
part of the Guaranteed Indebtedness, (ii) any receivership, insolvency,
bankruptcy or other proceedings affecting Borrower, Guarantor or any other
guarantor of all or any part of the Guaranteed Indebtedness, or any of their
respective property; (iii) the partial or total release or discharge of
Borrower or any other guarantor of all or any part of the Guaranteed
Indebtedness, or any other person or entity from the performance of any
obligation contained in any instrument or agreement evidencing, governing or
securing all or any part of the Guaranteed Indebtedness, whether occurring by
reason of law or otherwise; (iv) the taking or accepting of any collateral for
all or any part of the Guaranteed Indebtedness or this Guaranty; (v) the
taking or accepting of any other guaranty for all or any part of the Guaranteed
Indebtedness; (vi) any failure by Lender to acquire, perfect or continue any
lien or security interest on collateral securing all or any part of the
Guaranteed Indebtedness or this Guaranty; (vii) the impairment of any
collateral securing all or any part of the Guaranteed Indebtedness or this
Guaranty; (viii) any failure by Lender to sell any collateral securing all
or any part of the Guaranteed Indebtedness or this Guaranty in a commercially
reasonable manner or as otherwise required by law; (ix) any invalidity or
unenforceability of or defect or deficiency in any of the Loan Documents; or
(x) any other circumstance which might otherwise constitute a defense available
to, or discharge of, Borrower or any other guarantor of all or any part of the
Guaranteed Indebtedness.

(b)           This Guaranty shall continue to be
effective or be reinstated, as the case may be, if at any time any payment of
all or any part of the Guaranteed Indebtedness is rescinded or must otherwise
be returned by Lender upon the insolvency, bankruptcy or reorganization of
Borrower, Guarantor, any other guarantor of all or any part of the Guaranteed
Indebtedness, or otherwise, all as though such payment had not been made.

(c)           In the event Borrower is a corporation,
joint stock association or partnership, or is hereafter incorporated, none of
the following shall affect Guarantor’s liability hereunder: (i) the
unenforceability of all or any part of the Guaranteed Indebtedness against
Borrower by reason of the fact that the Guaranteed Indebtedness exceeds the
amount permitted by law; (ii) the act of creating all or any part of the
Guaranteed Indebtedness is ultra vires; or (iii) the officers or partners
creating all or any part of the Guaranteed Indebtedness acted in excess of
their authority.  Guarantor hereby
acknowledges that withdrawal from, or termination of, any ownership interest in
Borrower now or hereafter owned or held by Guarantor shall not alter, affect or
in any way limit the obligations of Guarantor hereunder.

8.             Actions Against Guarantor.  In the event of a default (after any
applicable grace period) in the payment or performance of all or any part of
the Guaranteed Indebtedness when such Guaranteed Indebtedness becomes due,
whether by its terms, by acceleration or otherwise, Guarantor shall, without
notice or demand, promptly pay the amount due thereon to Lender, in lawful
money of the United States, at Lender’s address set forth in Subparagraph
1(a) above.  One or more successive
or concurrent actions may be brought against Guarantor, either in the same
action in which Borrower is sued or in separate actions, as 

 5
 

 

often as Lender deems
advisable.  The exercise by Lender of any
right or remedy under this Guaranty or under any other agreement or instrument,
at law, in equity or otherwise, shall not preclude concurrent or subsequent
exercise of any other right or remedy. 
The books and records of Lender shall be admissible as evidence in any
action or proceeding involving this Guaranty and shall be prima  facie
evidence of the payments made on, and the outstanding balance of, the
Guaranteed Indebtedness.

9.             Payment by Guarantor.  Whenever Guarantor pays any sum which is or
may become due under this Guaranty, written notice must be delivered to Lender contemporaneously
with such payment.  Such notice shall be
effective for purposes of this paragraph when contemporaneously with such
payment Lender receives such notice either by: 
(a) personal delivery to the address and designated department of Lender
identified in Subparagraph 1(a) above, or (b) United States mail,
certified or registered, return receipt requested, postage prepaid, addressed
to Lender at the address shown in Subparagraph 1(a) above.  In the absence of such notice to Lender by
Guarantor in compliance with the provisions hereof, any sum received by Lender
on account of the Guaranteed Indebtedness shall be conclusively deemed paid by
Borrower.

10.           Notice of Sale.  In the event that Guarantor is entitled to
receive any notice under the Uniform Commercial Code, as it exists in the state
governing any such notice, of the sale or other disposition of any collateral
securing all or any part of the Guaranteed Indebtedness or this Guaranty,
reasonable notice shall be deemed given when such notice is deposited in the
United States mail, postage prepaid, at the address for Guarantor set forth in Subparagraph
1(c) above, five (5) days prior to the date any public sale, or after
which any private sale, of any such collateral is to be held; provided, however,
that notice given in any other reasonable manner or at any other reasonable
time shall be sufficient.

11.           Waiver by Lender.  No delay on the part of Lender in exercising
any right hereunder or failure to exercise the same shall operate as a waiver
of such right.  In no event shall any
waiver of the provisions of this Guaranty be effective unless the same be in
writing and signed by an officer of Lender, and then only in the specific
instance and for the purpose given.

12.           Successors and Assigns.  This Guaranty is for the benefit of Lender,
its successors and assigns.  This
Guaranty is binding upon Guarantor and Guarantor’s heirs, executors,
administrators, personal representatives and successors, including without
limitation any person or entity obligated by operation of law upon the
reorganization, merger, consolidation or other change in the organizational
structure of Guarantor.

13.           Costs and Expenses.  Guarantor shall pay on demand by Lender all
costs and expenses, including without limitation all reasonable attorneys’
fees, incurred by Lender in connection with the preparation, administration,
enforcement and/or collection of this Guaranty. 
This covenant shall survive the payment of the Guaranteed Indebtedness.

14.           Severability.  If any provision of this Guaranty is held by
a court of competent jurisdiction to be illegal, invalid or unenforceable under
present or future laws, such provision shall be fully severable, shall not
impair or invalidate the remainder of this Guaranty and the effect thereof shall
be confined to the provision held to be illegal, invalid or unenforceable.

15.           No Obligation.  Nothing contained herein shall be construed
as an obligation on the part of Lender to extend or continue to extend credit
to Borrower.

16.           Amendment.  No modification or amendment of any provision
of this Guaranty, nor consent to any departure by Guarantor therefrom, shall be
effective unless the same shall be in writing and signed by an 

 6
 

 

officer of Lender, and then shall
be effective only in the specific instance and for the purpose for which given.

17.           Cumulative Rights.  All rights and remedies of Lender hereunder
are cumulative of each other and of every other right or remedy which Lender
may otherwise have at law or in equity or under any instrument or agreement,
and the exercise of one or more of such rights or remedies shall not prejudice
or impair the concurrent or subsequent exercise of any other rights or
remedies.  This Guaranty, whether
general, specific and/or limited, shall be in addition to and cumulative of,
and not in substitution, novation or discharge of, any and all prior or
contemporaneous guaranty agreements by Guarantor in favor of Lender or assigned
to Lender by others.

18.           Governing Law, Venue.
This Guaranty is intended to be performed in the State of Texas.  Except to the extent that the laws of the
United States may apply to the terms hereof, the substantive laws of the State
of Texas shall govern the validity, construction, enforcement and interpretation
of this Guaranty.  In the event of a
dispute involving this Guaranty or any other instruments executed in connection
herewith, the undersigned irrevocably agrees that venue for such dispute shall
lie in any court of competent jurisdiction in Dallas County, Texas.

19.           Compliance with Applicable
Usury Laws. 
Notwithstanding any other provision of this Guaranty or of any
instrument or agreement evidencing, governing or securing all or any part of
the Guaranteed Indebtedness, Guarantor and Lender by its acceptance hereof
agree that Guarantor shall never be required or obligated to pay interest in
excess of the maximum non-usurious interest rate as may be authorized by
applicable law for the written contracts which constitute the Guaranteed
Indebtedness.  It is the intention of
Guarantor and Lender to conform strictly to the applicable laws which limit
interest rates, and any of the aforesaid contracts for interest, if and to the
extent payable by Guarantor, shall be held to be subject to reduction to the
maximum non-usurious interest rate allowed under said law.

20.           Gender.  Within this Guaranty, words of any gender
shall be held and construed to include the other gender.

21.           Captions.  The headings in this Guaranty are for
convenience only and shall not define or limit the provisions hereof.

22.           Subrogation.  Notwithstanding anything in Section 6
above, Guarantor does not waive any rights of subrogation but until the
Guaranteed Indebtedness has been paid in full, Guarantor covenants and agrees
that it shall not assert, enforce, or otherwise exercise any right of
subrogation (a) to any of the rights, remedies or liens of Lender or any other
beneficiary against Borrower or its Affiliates or any other guarantor of the
Guaranteed Indebtedness or any collateral or other security, or (b) unless such
rights are expressly made subordinate to the Guaranteed Indebtedness (in form
and upon terms acceptable to Lender) and the rights or remedies of Lender under
this Guaranty and the Loan Documents, any right of recourse, reimbursement,
contribution, indemnification, or similar right against Borrower or its
Affiliates or any other guarantor of all or any part of the Guaranteed
Indebtedness.

23.           Offset.  By acceptance of this Guaranty, Lender
waives any statutory or common law right of offset with respect to any accounts
of Guarantor at any time held by Lender.

24.           Liability.  Any obligation or liability of 
Guarantor hereunder shall be enforceable only against, and payable only out of,
the property of Guarantor, and in no event shall any officer, director, shareholder,
partner, beneficiary, agent, advisor or employee of Guarantor, be held to any
personal liability whatsoever or be liable for any of the obligations of the
parties hereunder, or the property of any 

 7
 

 

such Persons be subject to the payment of any such
obligations, except in the case of certain Persons as otherwise specifically
provided in the Loan Documents and where such Persons have executed a written
agreement pertaining thereto.  Without
limiting the generality of the foregoing sentence, no general partner of
Guarantor shall have personal liability for the obligations of Guarantor under
this Guaranty.

EXECUTED
to be effective as of the date first above written.

	
   

  	
  GUARANTOR:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BEHRINGER HARVARD SHORT-TERM OPPORTUNITY FUND I LP,

  
	
   

  	
  a Texas limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BEHRINGER HARVARD ADVISORS II LP,

  
	
   

  	
   

  	
  a Texas limited
  partnership,

  
	
   

  	
   

  	
  its general
  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  HARVARD PROPERTY TRUST, LLC,

  
	
   

  	
   

  	
   

  	
  a Delaware
  limited liability company,

  
	
   

  	
   

  	
   

  	
  its general
  partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

 8

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