Document:

Exhibit 10.7

SENIOR MEZZANINE COMPLETION GUARANTY

This Senior Mezzanine Completion Guaranty (“Guaranty”) is entered into as of September 29, 2006, jointly
and severally by CFP Residential L.P., a Texas limited partnership, Kenneth
Valach, an individual, J. Ronald Terwilliger, an individual and Bruce Hart, an
individual (collectively, the “Guarantor”) for
the benefit of Behringer Harvard Alexan Nevada, LLC, a Delaware limited
liability company, and/or any subsequent holder of the Note (the “Lender”).

RECITALS

A.                                   SW
109 Wagon Wheel SM LLC, a Delaware limited liability company (the “Borrower”) has requested that Lender make a loan to Borrower
in the amount of Six Million Nine Hundred Thousand Dollars ($6,900,000) (the “Loan”). The Loan will be evidenced by a Promissory Note from
Borrower to Lender dated as of the date of this Guaranty (the “Note”). The Note will be secured by a Pledge and Security
Agreement dated the same date as the Note made by Borrower in favor of Lender
(the “Security Instrument”).

B.                                     The
Loan is being made to finance the purchase by SW 106 Wagon Wheel Holdings LLC,
a Delaware limited liability company (“Property Owner”), which is a
wholly-owned subsidiary of Borrower, of certain real property (the “Property”),
as more particularly described in the Loan Agreement dated as of the date of
this Guaranty between Borrower and Lender (the “Loan Agreement”) and to
facilitate the construction of a 213 unit apartment project on the Property to
be known as the Alexan at Nevada State Drive (the “Project).

C.                                     The
Project is to be constructed in accordance with, and pursuant to the terms and
conditions and requirements of, the Loan Agreement and other Loan Documents.

D.                                    As
a condition to making the Loan to Borrower, Lender requires that the Guarantor
execute this Guaranty. Guarantor has an economic interest in Borrower or will
otherwise obtain a material financial benefit from the Loan.

NOW, THEREFORE, in order to induce Lender to make the
Loan to Borrower, and in consideration thereof, the Guarantor hereby agrees,
unconditionally and irrevocably as follows:

1.                                       Defined
Terms. “Indebtedness” and other
capitalized terms used but not defined in this Guaranty shall have the meanings
assigned to them in the Loan Agreement.

2.                                       Guaranty.

a)                                      Guarantor
hereby guarantees to Lender, upon written demand by Lender, at Lender’s option and
in its sole discretion, that Guarantor will (i) complete the Project substantially
in accordance with the plans and specifications for the Project, as modified
from time to time as allowed by the Loan Agreement (the “Plans and
Specifications”) and in accordance with the terms and conditions of
the Loan Agreement and other Loan Documents if, for any reason, or under any
contingency, Property Owner shall abandon construction of the Project or shall
fail to complete the Project within the construction time set forth in the Loan
Agreement and Loan

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Documents and (ii) pay
all cost overruns for construction of the Project to the extent Borrower or Property
Owner fails to do so; provided that Lender shall reimburse Guarantor for all
costs incurred by Guarantor in completing the Project (provided that such
completion costs are included in the Project Budget (as defined below) to the
extent such costs do not constitute cost overruns. In the preceding sentence, “cost
overruns” means costs of constructing the Project that, in the aggregate,
exceed the amount provided in the budget attached hereto as Exhibit “A” (the “Project Budget”). All amounts reimbursed to Guarantor by
Lender in accordance with this Section 2(a) shall correspondingly increase the
amount of Loan to Borrower and shall be payable by Borrower to Lender in
accordance with the terms of the Loan Agreement. The Project will be deemed
substantially completed in accordance with the Plans and Specifications upon
the issuance of the final certificate of occupancy, the issuance of a
certificate of substantial completion from the Property Owner’s architect,
receipt of a contractor’s release and the receipt of lien waivers or similar
evidence of payment from the general contractor and all major subcontractors (i.e., subcontractors whose contract amount exceeds $100,000)
to Lender’s reasonable satisfaction, provided, however, that if Senior Lender
shall deem the Project substantially complete then Lender shall deem the
Project substantially complete (“Completion”).

b)                                     Without
limiting the rights and remedies of Lender, if after the occurrence of an Event
of Default and after Lender has so requested, Guarantor does not proceed with
and diligently prosecute Completion of the Project in accordance with the Loan
Agreement, then Lender may, at its option, without notice to Guarantor or
anyone else, complete the Project either before or after commencement of
foreclosure proceedings, and either on or before the exercise of any other
right or remedy of Lender against Borrower or Guarantor, with such changes to
the Plans and Specifications that Lender deems necessary or advisable to
complete the Project and Guarantor waives any right to contest such necessary expenditures.
The amount of any and all expenditures made by Lender for the foregoing
purposes, to the extent they exceed the unexpended portion of the Project
Budget shall bear interest from the date made until repaid to Lender, at a rate
per annum equal to the interest rate provided for in the Note and, together
with such interest, shall be due and payable by Guarantor to Lender upon demand.
Lender does not have and shall never have any obligation to complete the
Project or take such action.

c)                                      In
addition to the foregoing, and notwithstanding anything to the contrary set
forth herein or in any of the Loan Documents, Guarantor hereby further
guarantees to Lender the full and prompt payment of all principal, interest and
other amounts due and owing by Borrower under the Note, the Security Instrument
and any other Loan Document from and after the filing of a voluntary bankruptcy
or insolvency proceeding of Property Owner, or Borrower prior to Completion.

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3.                                       Survival.
The obligations of Guarantor under this Guaranty shall survive any foreclosure
proceeding, any foreclosure sale, any delivery of any deed in lieu of
foreclosure, and any release of record of the Security Instrument.

4.                                       Guaranty
of Performance and Payment. Guarantor’s performance and payment obligations
under this Guaranty constitute a guaranty of performance and payment and not
merely a guaranty of collection.

5.                                       Present,
Unconditional and Irrevocable Guaranty; Waivers. The obligations of Guarantor
under this Guaranty shall be performed without demand by Lender, other than as
provided herein and shall be present, unconditional, absolute and irrevocable
irrespective of the genuineness, validity, regularity or enforceability of the
Note, the Security Instrument, or any other Loan Document, and without regard
to any other circumstance which might otherwise constitute a legal or equitable
discharge of a surety or a guarantor. This Guaranty shall be effective as a
waiver of, and Guarantor expressly waives, any and all rights to which
Guarantor may otherwise have been entitled under any suretyship laws in effect
from time to time. Without limiting the generality of the foregoing, Guarantor
hereby waives, to the fullest extent permitted by law, diligence in collecting
the Indebtedness, presentment, demand for payment, protest, all notices with
respect to the Note and this Guaranty which may be required by statute, rule of
law or otherwise to preserve Lender’s rights against Guarantor under this
Guaranty, including notice of acceptance, notice of any amendment of the Loan
Documents, notice of the occurrence of any default or Event of Default, notice
of intent to accelerate, notice of acceleration, notice of dishonor, notice of
foreclosure, notice of protest, and notice of the incurring by Borrower of any
obligation or indebtedness. Guarantor also waives, to the fullest extent
permitted by law, all rights to require Lender to (a) proceed against Borrower
or any other guarantor of Borrower’s payment or performance with respect to the
Indebtedness (an “Other Guarantor”),
(b) if Borrower or any Other Guarantor is a partnership, proceed against any
general partner of Borrower or the Other Guarantor, (c) proceed against or
exhaust any collateral held by Lender to secure the repayment of the
Indebtedness, or (d) pursue any other remedy it may now or hereafter have
against Borrower, or, if Borrower is a partnership, any general partner of
Borrower.

6.                                       Modification
of Loan Documents. At any time or from time to time and any number of
times, without notice to Guarantor and without affecting the liability of Guarantor,
(a) the time for payment of the principal of or interest on the Indebtedness
may be extended or the Indebtedness may be renewed in whole or in part; (b) the
time for Borrower’s performance of or compliance with any covenant or agreement
contained in the Note, the Loan Agreement, the Pledge Agreement or any other
Loan Document, whether presently existing or hereinafter entered into, may be
extended or such performance or compliance may be waived; (c) the maturity of
the Indebtedness may be accelerated as provided in the Note, the Security
Instrument, or any other Loan Document; (d) the Note, the Loan Agreement, the Security
Instrument, or any other Loan Document may be modified or amended by Lender and
Borrower in any respect, including an increase in the principal amount; and (e)
any security for the Indebtedness may be modified, exchanged, surrendered or
otherwise dealt with or additional security may be pledged or mortgaged for the
Indebtedness.

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7.                                       Joint
and Several Guaranty. If more than one person executes this Guaranty, the
obligations of those persons under this Guaranty shall be joint and several. Lender,
in its discretion, may (a) bring suit against Guarantor, or any one or more of
the Persons constituting Guarantor, and any Other Guarantor, jointly and
severally, or against any one or more of them; (b) compromise or settle with
any one or more of the Persons constituting Guarantor, or any Other Guarantor,
for such consideration as Lender may deem proper; (c) release one or more of
the Persons constituting Guarantor, or any Other Guarantor, from liability; and
(d) otherwise deal with Guarantor and any Other Guarantor, or any one or more
of them, in any manner, and no such action shall impair the rights of Lender to
collect from Guarantor any amount guaranteed by Guarantor under this Guaranty. Nothing
contained in this paragraph shall in any way affect or impair the rights or
obligations of Guarantor with respect to any Other Guarantor.

8.                                       Subordination.
Any indebtedness of Borrower held by Guarantor now or in the future (including
but not limited to (i) all debts and liabilities of Borrower to Guarantor
whether the obligations of Borrower are direct, contingent, primary, secondary,
joint and several or otherwise, whether the obligations are evidenced by note,
contract, open account or otherwise and irrespective of the creation of such
debts or liabilities or manner acquired by Guarantor, (ii) any dividends and
payments pursuant to debtor relief or insolvency proceedings referred to below and
(iii) all liens, security interests, judgment liens, charges or other
encumbrances on Borrower’s assets securing payment thereof) is and shall be
subordinated to the Indebtedness, and upon the occurrence of an Event of Default,
but without reducing or affecting in any manner the liability of Guarantor
under the other provisions of this Guaranty, except to the extent that such
amounts are actually applied toward Borrower’s obligations under the Loan
Documents, Guarantor shall not receive, or collect, directly or indirectly any
amount in connection with the foregoing. If any amount is received by Guarantor
on such indebtedness of Borrower held by Guarantor at the time an Event of
Default exists, it shall be received by Guarantor in trust, as trustee for
Lender, and Guarantor agrees to pay such amounts promptly to Lender. In the event of receivership, bankruptcy,
reorganization, arrangement or other debtor relief or insolvency proceedings
involving Borrower as debtor, Lender shall have the right to prove its claims
in any such proceeding so as to establish its rights hereunder and shall have
the right to receive directly from the receiver, trustee or other custodian
(whether or not an Event of Default shall have occurred or be continuing under
any of the Loan Documents), dividends and payments that are payable upon any
obligation of Borrower to Guarantor now existing or hereafter arising, and to
have all benefits of any security therefor, until the Indebtedness has been
fully and finally paid and performed. Guarantor hereby acknowledges and
agrees that the foregoing provisions shall be operative without the necessity
of execution of any further documents. Notwithstanding the foregoing, upon the
request of Lender, Guarantor hereby agrees to execute of a subordination
agreement, in form and content reasonably acceptable to Lender, evidencing the
provisions of this Section 8.

9.                                       Waiver
of Subrogation Rights. Any right or claim for subrogation or reimbursement
against Borrower by reason of any payment by Guarantor under this Guaranty, is
subordinated to the Indebtedness on the terms provided in Section 8 above, whether
such right or claim arises at law or in equity or under any contract or statute.

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10.                                 No
Discharge of Guarantor. If any payment by Borrower is held to constitute a
preference under any applicable bankruptcy, insolvency, or similar laws, or if
for any other reason Lender is required to refund any sums to Borrower, such
refund shall not constitute a release of any liability of Guarantor under this Guaranty.

11.                                 Financial
Statements. Guarantor agrees that, until Completion, Guarantor will provide
to Lender no later than December 31 of each year a Collateral Value Statement
for each of the Persons constituting Guarantor dated as of the preceding June
30, in each case accompanied by a certificate executed by the Person to whom
such Collateral Value Statement relates certifying that, to the knowledge of
such Person, the Collateral Value Statement fairly presents the collateral value
of the assets shown in such Collateral Value Statement determined on the same
basis as described in the notes to the Collateral Value Statements, dated as of
June 30, 2005, provided for each Guarantor.

12.                                 Representation
and Warranty. Guarantor represents and warrants to Lender, jointly and
severally, that (i) CFP Residential, L.P. has the limited partnership power and
authority to enter into this Guaranty, to incur the obligations provided for
herein, and to execute and deliver the same to Lender, (ii) when executed and
delivered, this Guaranty will constitute a valid and legally binding obligation
of each Guarantor, enforceable against such Guarantor in accordance with its
terms (subject to bankruptcy, insolvency, reorganization and similar laws and
to general principles of equity) and (iii) each Guarantor will directly or
indirectly benefit from the Loan.

13.                                 Counterparts.
This Guaranty may be executed in one or more counterparts, each of which shall
be deemed an original, and all of which, when taken together, shall constitute
one and the same instrument. The persons comprising Guarantor may execute
different counterparts of this Guaranty.

14.                                 Notices.
Any notice, election, communication, request, approval or other document or
demand required or permitted under this Guaranty shall be in writing. Each
notice, election, communication, request, approval or other document or demand
shall be addressed to the intended recipient, in the case of Lender, at its
address set forth below or, in the case of a Guarantor, at its address set
forth on the signature page of this Guaranty. Each notice, election,
communication, request, approval or other document or demand shall be deemed
given on the earliest to occur of (1) the date when the notice is received by
the addressee; (2) the first Business Day after the notice is delivered to a
recognized overnight courier service, with arrangements made for payment of
charges, for next Business Day delivery; or (3) the third Business Day after
the notice is deposited in the United States mail with postage prepaid,
certified mail, return receipt requested. As used in this Section 21, the term “Business
Day” means any day other than a Saturday, a Sunday or any other legal holiday. Any party to this Agreement may change the address
to which notices intended for it are to be directed by means of notice given to
the other party in accordance with this Section 14.

15.                                 Assignment
by Lender. Lender may assign its rights under this Guaranty in whole or in
part and, upon any such assignment, all the terms and provisions of this
Guaranty

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shall inure to the benefit of such assignee to the
extent so assigned. The terms used to designate any of the parties herein shall
be deemed to include the estate, legal representatives, successors and assigns
of such party.

16.                                 Entire
Agreement. This Guaranty and the other Loan Documents represent the final
agreement between the parties and may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements. There are no unwritten oral
agreements between the parties. All prior or contemporaneous agreements,
understandings, representations, and statements, oral or written, are merged
into this Guaranty and the other Loan Documents. Guarantor acknowledges that it
has received a copy of the Note and all other Loan Documents. Neither this
Guaranty nor any of its provisions may be waived, modified, amended,
discharged, or terminated except by an agreement in writing signed by the party
against which the enforcement of the waiver, modification, amendment,
discharge, or termination is sought, and then only to the extent set forth in
that agreement.

17.                                 Governing
Law. This Guaranty shall be governed by, and construed in accordance with,
the substantive law of the State of Nevada without regard to the application of
choice of law principles.

18.                                 SUBMISSION TO JURISDICTION/SERVICE OF PROCESS.
GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE PERSONAL JURISDICTION OF THE STATE
COURTS OF THE STATE OF NEVADA LOCATED IN CLARK COUNTY NEVADA FOR THE PURPOSES
OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF OR BASED UPON THIS
GUARANTY, THE SUBJECT MATTER HEREOF, OR THE LOAN. GUARANTOR TO THE EXTENT
PERMITTED BY APPLICABLE LAW (A) HEREBY WAIVES, AND AGREES NOT TO ASSERT, BY WAY
OF MOTION, AS A DEFENSE, OR OTHERWISE, IN ANY SUCH SUIT, ACTION OR OTHER
PROCEEDING BROUGHT IN THE ABOVE-NAMED COURTS ANY CLAIM THAT IT IS NOT SUBJECT
PERSONALLY TO THE JURISDICTION OF SUCH COURTS, THAT THE SUIT, ACTION OR
PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF THE SUIT,
ACTION OR PROCEEDING IS IMPROPER OR THAT THIS GUARANTY, THE SUBJECT MATTER
HEREOF, OR THE LOAN (AS APPLICABLE) MAY NOT BE ENFORCED IN OR BY SUCH COURT AND
(B) HEREBY WAIVES THE RIGHT TO REMOVE ANY SUCH ACTION, SUIT OR PROCEEDING
INSTITUTED BY LENDER IN STATE COURT TO FEDERAL COURT, OR TO REMAND AN ACTION
INSTITUTED IN FEDERAL COURT TO STATE COURT (UNLESS THE FEDERAL COURT HAS NO
SUBJECT MATTER JURISDICTION). EACH GUARANTOR HEREBY CONSENTS TO SERVICE OF
PROCESS BY MAIL AT THE ADDRESS TO WHICH NOTICES ARE TO BE GIVEN TO IT PURSUANT
HERETO, BUT SERVICE WILL BE EFFECTIVE ONLY UPON DELIVERY. GUARANTOR AGREES THAT
ITS SUBMISSION TO JURISDICTION AND CONSENT TO SERVICE OF PROCESS BY MAIL IS
MADE FOR THE EXPRESS BENEFIT OF LENDER AND ITS ASSIGNS. FINAL JUDGMENT AGAINST
GUARANTOR IN ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE CONCLUSIVE, AND MAY
BE ENFORCED IN ANY

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OTHER JURISDICTION (X) BY SUIT, ACTION OR
PROCEEDING ON THE JUDGMENT, A CERTIFIED OR TRUE COPY OF WHICH SHALL BE
CONCLUSIVE EVIDENCE OF THE FACT AND OF THE AMOUNT OF INDEBTEDNESS OR LIABILITY
OF GUARANTOR THEREIN DESCRIBED, OR (Y) IN ANY OTHER MANNER PROVIDED BY OR
PURSUANT TO THE LAWS OF SUCH OTHER JURISDICTION, PROVIDED, HOWEVER,
THAT LENDER MAY AT ITS OPTION BRING SUIT, OR INSTITUTE OTHER JUDICIAL
PROCEEDINGS, AGAINST GUARANTOR OR ANY OF ITS ASSETS IN ANY STATE OR FEDERAL
COURT OF THE UNITED STATES OR OF ANY COUNTRY OR PLACE WHERE THE SUBMITTING
PARTY OR SUCH ASSETS MAY BE FOUND.

19.                                 WAIVER
WITH RESPECT TO DAMAGES. GUARANTOR ACKNOWLEDGES THAT LENDER DOES NOT HAVE
ANY FIDUCIARY RELATIONSHIP WITH, OR FIDUCIARY DUTY TO, GUARANTOR ARISING OUT OF
OR IN CONNECTION WITH THIS GUARANTY OR ANY OTHER LOAN DOCUMENT AND THE
RELATIONSHIP BETWEEN LENDER AND GUARANTOR, IN CONNECTION HEREWITH AND THEREWITH
IS SOLELY THAT OF GUARANTOR OF A DEBTOR AND CREDITOR. TO THE EXTENT PERMITTED
BY APPLICABLE LAW, GUARANTOR AND LENDER EACH SHALL NOT ASSERT, AND GUARANTOR
AND LENDER EACH HEREBY WAIVES, ANY CLAIMS AGAINST THE OTHER, ON ANY THEORY OF
LIABILITY, FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES (AS OPPOSED
TO DIRECT OR ACTUAL DAMAGES) ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT
OF, THIS GUARANTY, ANY OTHER LOAN DOCUMENT, ANY AGREEMENT OR INSTRUMENT
CONTEMPLATED HEREBY OR THEREBY, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY.

20.                                 Change
of Address. Guarantor (or each Guarantor, if more than one) agrees to
notify Lender (in the manner for giving notices provided in Section 14 above)
of any change in Guarantor’s address within a reasonable time after such change
of address occurs.

21.                                 Liability.

(a)                                  Notwithstanding
anything in this Guaranty to the contrary, Lender shall look for satisfaction
of the obligations of a Guarantor under this Guaranty only to the following
real and personal property of such Guarantor (the “Available Assets”):

(1)                                  the
legal and beneficial interests of such Guarantor in any entity that is, at the
time of enforcement of this Guaranty, (i) engaged in the business of holding,
constructing, developing or providing property management or overhead services
for real estate designed for residential use in the United States and (ii)
affiliated in any way with Trammell Crow Residential Company, or any subsidiary
thereof or any successor or assign of all or substantially all of the assets
thereof; and

(2)                                  any
receivables due the Guarantors from any entity described in the foregoing item
(1).

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Except for the Available Assets, Lender shall not look
to a Guarantor’s tangible or intangible real and personal property (including
cash, cash equivalents, securities, partnership interests, receivable or
similar intangible personal property) for satisfaction of any Guarantor’s
obligations under this Guaranty. Subject to Section 21(b), Lender may not look
to the tangible or intangible proceeds of any assets of a Guarantor, including
proceeds of the Available Assets, except as specifically provided in paragraph
(2) above.

(b)                                 Notwithstanding
the limitations in Section 21(a), Lender may look to proceeds of Available
Assets realized by a Guarantor (i) after the Aggregate Collateral Value, as
reported in the annual Collateral Value Statements prepared for the Guarantors,
is less than $80,000,000 or (ii) as a result of a transaction that causes the
Aggregate Collateral Value to be less than $80,000,000 As used in this
paragraph, the term “Aggregate Collateral Value” means the aggregate value of
the Available Assets as calculated on the basis provided in the notes to the
Collateral Value Statements of the Guarantors dated as of June 30, 2005. However,
notwithstanding this Section 21(b), in no event will Lender be entitled to
satisfy any obligation of a Guarantor from any of the following assets
(collectively, “Excluded Assets”): (i) the personal residences of the
Guarantor, (ii) the Guarantor’s nonbusiness real estate, including rural,
vacation and resort property, up to $1,000,000 in value, (iii) the Guarantor’s
personal automobiles and other tangible personal property, including household
goods, clothing, silverware, gems, jewelry and works of art, not to exceed
$1,500,000 in values, (iv) the interests listed in Section 21(c) and (v)
proceeds of Excluded Assets.

(c)                                  In
no case may Lender look to any of the following owned by a Guarantor (even if
it otherwise would be available under the terms of this Section 21) or any
proceeds thereof: stock in AvalonBay Communities, Inc., units in Avalon
DownREIT V, L.P., stock in Gables Residential Trust, units in Gables Realty
Limited Partnership, units in Equity Residential Properties Trust, units in ERP
Operating Limited Partnership, stock in BRE Properties, Inc, units in BRE
Property Investors, LLC, units in AMLI Residential Property Trust, units in
AMLI Residential Properties, L.P., units in Merry Land DownREIT I, L.P.,
ownership in J. Ronald Terwilliger Grantor Trust, stock in JRT Holdings, Inc.
and ownership in Terwilliger Partners, LLLP and interests in TCR Affordable
Housing Limited Partnership

(d)                                 The
term “residential” as used in this Section 21 means single family and multi
family dwellings, residential land/lot developments, and senior living
communities.

(e)                                  If
the collective aggregate value of the Available Assets of the Guarantor, as
reported in the Collateral Value Statement delivered under Section 11 falls to
less than $80,000,000 and if the Guarantor, Property Owner and/or Borrower fail
to correct such deficiency within 30 days following delivery of a deficiency
notice from Lender, then such failure shall, at the option of Lender,
constitute an Event of Default on the part of Borrower under the Loan Documents.
Guarantor, Property Owner and/or the Borrower shall have the right to correct
any deficiency in Available Assets by (i) obtaining and delivering to Lender
one or more new guaranties, each of which shall be in the form and content
substantially the same as this Guaranty from one or more persons whose
Available Assets are sufficient to correct the deficiency, (ii) delivering to
Lender and thereafter maintaining in full force and effect (for so

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long as the deficiency exists) an unconditional and
irrevocable letter of credit, in a face amount sufficient to correct the
deficiency, naming Lender as beneficiary, and otherwise in form and content and
issued by an institution acceptable to Lender in the exercise of good faith
business judgment, or (iii) the amendment of this Guaranty (in form and
substance acceptable to Lender in the exercise of its good faith business
judgment) in such a manner such that the definition of Available Assets is
expanded to include additional assets that are not then included in the
definition of Available Assets, sufficient to correct the deficiency and
otherwise acceptable to Lender in its good faith business judgment.

22.                                 Successors
and Assigns. This Guaranty shall be binding upon Guarantor and Guarantor’s
executors, personal representatives, successors and assigns and shall inure to
the benefit of Lender and its successors and assigns.

23.                                 Attorney’s
Fees. If it becomes necessary for Lender to employ counsel to enforce the
obligations of Guarantor hereunder, Guarantor agrees to pay the reasonable
attorneys’ fees and expenses incurred by Lender in connection therewith.

24.                                 WAIVER OF JURY TRIAL. GUARANTOR AND
LENDER EACH (A) AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE
ARISING OUT OF THIS GUARANTY OR THE RELATIONSHIP BETWEEN THE PARTIES AS
GUARANTOR AND LENDER THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY
RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH
RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY
GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT
LEGAL COUNSEL.

[Signatures follow on next page.]

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IN WITNESS WHEREOF, Guarantor
has signed and delivered this Guaranty or has caused this Guaranty to be signed
and delivered by its duly authorized representative.

	
  

  	
  GUARANTOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CFP Residential LP, a Texas limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Crow Family, Inc., a Texas corporation,

  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Harlan R. Crow, Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  2001 McKinney Ave., Suite 700,

  Dallas, Texas 75201

  
	
   

  	
  Social Security/Employer ID No.:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Kenneth Valach, an individual

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  10333 Richmond Ave., Suite 400,

  Houston, Texas 77042

  
	
   

  	
  Social
  Security/Employer ID No.:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  J. Ronald
  Terwilliger, an individual

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  Two Buckhead Plaza,

  3050 Peachtree Road, N.W., Suite 500,

  Atlanta, Georgia 30305

  
	
   

  	
  Social
  Security/Employer ID No.:

  	
   

  
								

 

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  Bruce Hart, an
  individual

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  7373 North Scottsdale Road, Suite C-2

  Scottsdale, Arizona 85253

  
	
   

  	
  Social Security/Employer ID No.:

  	
   

  
					

 

 11Exhibit 10.8

JUNIOR MEZZANINE COMPLETION GUARANTY

This Junior Mezzanine Completion Guaranty (“Guaranty”) is entered into as of September 29, 2006, jointly
and severally by CFP Residential L.P., a Texas limited partnership, Kenneth
Valach, an individual, J. Ronald Terwilliger, an individual and Bruce Hart, an
individual (collectively, the “Guarantor”) for
the benefit of Behringer Harvard Alexan Nevada, LLC, a Delaware limited
liability company, and/or any subsequent holder of the Note (the “Lender”).

RECITALS

A.                                   SW
108 Wagon Wheel JM LLC, a Delaware limited liability company (the “Borrower”) has requested that Lender make a loan to Borrower
in the amount of Two Million Seven Hundred Seventy-Five Thousand Eight Hundred
Seventy-Two Dollars ($2,775,872) (the “Loan”). The
Loan will be evidenced by a Promissory Note from Borrower to Lender dated as of
the date of this Guaranty (the “Note”). The
Note will be secured by a Pledge and Security Agreement dated the same date as
the Note made by Borrower in favor of Lender (the “Security
Instrument”).

B.                                     The
Loan is being made to finance the purchase by SW 106 Wagon Wheel Holdings LLC,
a Delaware limited liability company (“Property Owner”),
which is a wholly-owned subsidiary of SW 109 Wagon Wheel SM LLC, which is a
wholly-owned subsidiary of Borrower, of certain real property (the “Property”), as more particularly described in the Loan
Agreement dated as of the date of this Guaranty between Borrower and Lender
(the “Loan Agreement”) and to facilitate the
construction of a 213 unit apartment project on the Property to be known as the
Alexan at Nevada State Drive (the “Project).

C.                                     The
Project is to be constructed in accordance with, and pursuant to the terms and
conditions and requirements of, the Loan Agreement and other Loan Documents.

D.                                    As
a condition to making the Loan to Borrower, Lender requires that the Guarantor
execute this Guaranty. Guarantor has an economic interest in Borrower or will
otherwise obtain a material financial benefit from the Loan.

NOW, THEREFORE, in order to induce Lender to make the
Loan to Borrower, and in consideration thereof, the Guarantor hereby agrees,
unconditionally and irrevocably as follows:

1.                                       Defined
Terms. “Indebtedness” and other
capitalized terms used but not defined in this Guaranty shall have the meanings
assigned to them in the Loan Agreement.

2.                                       Guaranty.

a)                                      Guarantor
hereby guarantees to Lender, upon written demand by Lender, at Lender’s option and
in its sole discretion, that Guarantor will (i) complete the Project substantially
in accordance with the plans and specifications for the Project, as modified

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from time to time as
allowed by the Loan Agreement (the “Plans and Specifications”)
and in accordance with the terms and conditions of the Loan Agreement and other
Loan Documents if, for any reason, or under any contingency, Property Owner
shall abandon construction of the Project or shall fail to complete the Project
within the construction time set forth in the Loan Agreement and Loan Documents
and (ii) pay all cost overruns for construction of the Project to the extent
Borrower or Property Owner fails to do so; provided that Lender shall reimburse
Guarantor for all costs incurred by Guarantor in completing the Project (provided
that such completion costs are included in the Project Budget (as defined
below) to the extent such costs do not constitute cost overruns. In the
preceding sentence, “cost overruns” means costs of constructing the Project
that, in the aggregate, exceed the amount provided in the budget attached
hereto as Exhibit “A” (the “Project Budget”).
All amounts reimbursed to Guarantor by Lender in accordance with this Section 2(a)
shall correspondingly increase the amount of Loan to Borrower and shall be
payable by Borrower to Lender in accordance with the terms of the Loan
Agreement. The Project will be deemed substantially completed in accordance
with the Plans and Specifications upon the issuance of the final certificate of
occupancy, the issuance of a certificate of substantial completion from the Property
Owner’s architect, receipt of a contractor’s release and the receipt of lien
waivers or similar evidence of payment from the general contractor and all
major subcontractors (i.e.,
subcontractors whose contract amount exceeds $100,000) to Lender’s reasonable
satisfaction, provided, however, that if Senior Lender shall deem the Project
substantially complete then Lender shall deem the Project substantially
complete (“Completion”).

b)                                     Without
limiting the rights and remedies of Lender, if after the occurrence of an Event
of Default and after Lender has so requested, Guarantor does not proceed with
and diligently prosecute Completion of the Project in accordance with the Loan
Agreement, then Lender may, at its option, without notice to Guarantor or
anyone else, complete the Project either before or after commencement of
foreclosure proceedings, and either on or before the exercise of any other
right or remedy of Lender against Borrower or Guarantor, with such changes to
the Plans and Specifications that Lender deems necessary or advisable to
complete the Project and Guarantor waives any right to contest such necessary
expenditures. The amount of any and all expenditures made by Lender for the
foregoing purposes, to the extent they exceed the unexpended portion of the Project
Budget shall bear interest from the date made until repaid to Lender, at a rate
per annum equal to the interest rate provided for in the Note and, together
with such interest, shall be due and payable by Guarantor to Lender upon demand.
Lender does not have and shall never have any obligation to complete the
Project or take such action.

c)                                      In
addition to the foregoing, and notwithstanding anything to the contrary set
forth herein or in any of the Loan Documents, Guarantor hereby further
guarantees to Lender the full and prompt payment of all principal, interest and
other amounts due and owing by Borrower under the Note, the Security Instrument
and any other Loan Document from and after the filing of a voluntary bankruptcy
or insolvency proceeding of Property Owner, or Borrower prior to Completion.

 2
 

 

 

3.                                       Survival.
The obligations of Guarantor under this Guaranty shall survive any foreclosure
proceeding, any foreclosure sale, any delivery of any deed in lieu of
foreclosure, and any release of record of the Security Instrument.

4.                                       Guaranty
of Performance and Payment. Guarantor’s performance and payment obligations
under this Guaranty constitute a guaranty of performance and payment and not
merely a guaranty of collection.

5.                                       Present,
Unconditional and Irrevocable Guaranty; Waivers. The obligations of Guarantor
under this Guaranty shall be performed without demand by Lender, other than as
provided herein and shall be present, unconditional, absolute and irrevocable
irrespective of the genuineness, validity, regularity or enforceability of the
Note, the Security Instrument, or any other Loan Document, and without regard
to any other circumstance which might otherwise constitute a legal or equitable
discharge of a surety or a guarantor. This Guaranty shall be effective as a
waiver of, and Guarantor expressly waives, any and all rights to which
Guarantor may otherwise have been entitled under any suretyship laws in effect
from time to time. Without limiting the generality of the foregoing, Guarantor
hereby waives, to the fullest extent permitted by law, diligence in collecting
the Indebtedness, presentment, demand for payment, protest, all notices with
respect to the Note and this Guaranty which may be required by statute, rule of
law or otherwise to preserve Lender’s rights against Guarantor under this
Guaranty, including notice of acceptance, notice of any amendment of the Loan
Documents, notice of the occurrence of any default or Event of Default, notice
of intent to accelerate, notice of acceleration, notice of dishonor, notice of
foreclosure, notice of protest, and notice of the incurring by Borrower of any
obligation or indebtedness. Guarantor also waives, to the fullest extent
permitted by law, all rights to require Lender to (a) proceed against Borrower
or any other guarantor of Borrower’s payment or performance with respect to the
Indebtedness (an “Other Guarantor”),
(b) if Borrower or any Other Guarantor is a partnership, proceed against any
general partner of Borrower or the Other Guarantor, (c) proceed against or
exhaust any collateral held by Lender to secure the repayment of the
Indebtedness, or (d) pursue any other remedy it may now or hereafter have
against Borrower, or, if Borrower is a partnership, any general partner of
Borrower.

6.                                       Modification
of Loan Documents. At any time or from time to time and any number of
times, without notice to Guarantor and without affecting the liability of Guarantor,
(a) the time for payment of the principal of or interest on the Indebtedness
may be extended or the Indebtedness may be renewed in whole or in part; (b) the
time for Borrower’s performance of or compliance with any covenant or agreement
contained in the Note, the Loan Agreement, the Pledge Agreement or any other
Loan Document, whether presently existing or hereinafter entered into, may be
extended or such performance or compliance may be waived; (c) the maturity of
the Indebtedness may be accelerated as provided in the Note, the Security
Instrument, or any other Loan Document; (d) the Note, the Loan Agreement, the Security
Instrument, or any other Loan Document may be modified or amended by Lender and
Borrower in any respect, including an increase in the principal amount; and (e)
any security for the Indebtedness may be modified, exchanged, surrendered or
otherwise dealt with or additional security may be pledged or mortgaged for the
Indebtedness.

 3
 

 

 

7.                                       Joint
and Several Guaranty. If more than one person executes this Guaranty, the
obligations of those persons under this Guaranty shall be joint and several. Lender,
in its discretion, may (a) bring suit against Guarantor, or any one or more of
the Persons constituting Guarantor, and any Other Guarantor, jointly and
severally, or against any one or more of them; (b) compromise or settle with
any one or more of the Persons constituting Guarantor, or any Other Guarantor,
for such consideration as Lender may deem proper; (c) release one or more of
the Persons constituting Guarantor, or any Other Guarantor, from liability; and
(d) otherwise deal with Guarantor and any Other Guarantor, or any one or more
of them, in any manner, and no such action shall impair the rights of Lender to
collect from Guarantor any amount guaranteed by Guarantor under this Guaranty. Nothing
contained in this paragraph shall in any way affect or impair the rights or
obligations of Guarantor with respect to any Other Guarantor.

8.                                       Subordination.
Any indebtedness of Borrower held by Guarantor now or in the future (including
but not limited to (i) all debts and liabilities of Borrower to Guarantor whether
the obligations of Borrower are direct, contingent, primary, secondary, joint
and several or otherwise, whether the obligations are evidenced by note,
contract, open account or otherwise and irrespective of the creation of such
debts or liabilities or manner acquired by Guarantor, (ii) any dividends and
payments pursuant to debtor relief or insolvency proceedings referred to below and
(iii) all liens, security interests, judgment liens, charges or other
encumbrances on Borrower’s assets securing payment thereof) is and shall be
subordinated to the Indebtedness, and upon the occurrence of an Event of
Default, but without reducing or affecting in any manner the liability of
Guarantor under the other provisions of this Guaranty, except to the extent
that such amounts are actually applied toward Borrower’s obligations under the
Loan Documents, Guarantor shall not receive, or collect, directly or indirectly
any amount in connection with the foregoing. If any amount is received by
Guarantor on such indebtedness of Borrower held by Guarantor at the time an
Event of Default exists, it shall be received by Guarantor in trust, as trustee
for Lender, and Guarantor agrees to pay such amounts promptly to Lender. In the event of receivership, bankruptcy,
reorganization, arrangement or other debtor relief or insolvency proceedings
involving Borrower as debtor, Lender shall have the right to prove its claims
in any such proceeding so as to establish its rights hereunder and shall have
the right to receive directly from the receiver, trustee or other custodian
(whether or not an Event of Default shall have occurred or be continuing under
any of the Loan Documents), dividends and payments that are payable upon any
obligation of Borrower to Guarantor now existing or hereafter arising, and to
have all benefits of any security therefor, until the Indebtedness has been
fully and finally paid and performed. Guarantor hereby acknowledges and
agrees that the foregoing provisions shall be operative without the necessity
of execution of any further documents. Notwithstanding the foregoing, upon the
request of Lender, Guarantor hereby agrees to execute of a subordination
agreement, in form and content reasonably acceptable to Lender, evidencing the
provisions of this Section 8.

9.                                       Waiver
of Subrogation Rights. Any right or claim for subrogation or reimbursement
against Borrower by reason of any payment by Guarantor under this Guaranty, is
subordinated to the Indebtedness on the terms provided in Section 8 above, whether
such right or claim arises at law or in equity or under any contract or statute.

 4
 

 

 

10.                                 No
Discharge of Guarantor. If any payment by Borrower is held to constitute a
preference under any applicable bankruptcy, insolvency, or similar laws, or if
for any other reason Lender is required to refund any sums to Borrower, such
refund shall not constitute a release of any liability of Guarantor under this
Guaranty.

11.                                 Financial
Statements. Guarantor agrees that, until Completion, Guarantor will provide
to Lender no later than December 31 of each year a Collateral Value Statement
for each of the Persons constituting Guarantor dated as of the preceding June
30, in each case accompanied by a certificate executed by the Person to whom
such Collateral Value Statement relates certifying that, to the knowledge of
such Person, the Collateral Value Statement fairly presents the collateral
value of the assets shown in such Collateral Value Statement determined on the
same basis as described in the notes to the Collateral Value Statements, dated
as of June 30, 2005, provided for each Guarantor.

12.                                 Representation
and Warranty. Guarantor represents and warrants to Lender, jointly and
severally, that (i) CFP Residential, L.P. has the limited partnership power and
authority to enter into this Guaranty, to incur the obligations provided for
herein, and to execute and deliver the same to Lender, (ii) when executed and
delivered, this Guaranty will constitute a valid and legally binding obligation
of each Guarantor, enforceable against such Guarantor in accordance with its
terms (subject to bankruptcy, insolvency, reorganization and similar laws and
to general principles of equity) and (iii) each Guarantor will directly or
indirectly benefit from the Loan.

13.                                 Counterparts.
This Guaranty may be executed in one or more counterparts, each of which shall
be deemed an original, and all of which, when taken together, shall constitute
one and the same instrument. The persons comprising Guarantor may execute
different counterparts of this Guaranty.

14.                                 Notices.
Any notice, election, communication, request, approval or other document or
demand required or permitted under this Guaranty shall be in writing. Each
notice, election, communication, request, approval or other document or demand
shall be addressed to the intended recipient, in the case of Lender, at its
address set forth below or, in the case of a Guarantor, at its address set
forth on the signature page of this Guaranty. Each notice, election,
communication, request, approval or other document or demand shall be deemed
given on the earliest to occur of (1) the date when the notice is received by
the addressee; (2) the first Business Day after the notice is delivered to a
recognized overnight courier service, with arrangements made for payment of
charges, for next Business Day delivery; or (3) the third Business Day after
the notice is deposited in the United States mail with postage prepaid,
certified mail, return receipt requested. As used in this Section 21, the term “Business
Day” means any day other than a Saturday, a Sunday or any other legal holiday. Any party to this Agreement may change the address
to which notices intended for it are to be directed by means of notice given to
the other party in accordance with this Section 14.

15.                                 Assignment
by Lender. Lender may assign its rights under this Guaranty in whole or in
part and, upon any such assignment, all the terms and provisions of this
Guaranty

 5
 

 

 

shall inure to the benefit of such assignee to the
extent so assigned. The terms used to designate any of the parties herein shall
be deemed to include the estate, legal representatives, successors and assigns
of such party.

16.                                 Entire
Agreement. This Guaranty and the other Loan Documents represent the final
agreement between the parties and may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements. There are no unwritten oral
agreements between the parties. All prior or contemporaneous agreements,
understandings, representations, and statements, oral or written, are merged into
this Guaranty and the other Loan Documents. Guarantor acknowledges that it has
received a copy of the Note and all other Loan Documents. Neither this Guaranty
nor any of its provisions may be waived, modified, amended, discharged, or
terminated except by an agreement in writing signed by the party against which
the enforcement of the waiver, modification, amendment, discharge, or
termination is sought, and then only to the extent set forth in that agreement.

17.                                 Governing
Law. This Guaranty shall be governed by, and construed in accordance with,
the substantive law of the State of Nevada without regard to the application of
choice of law principles.

18.                                 SUBMISSION TO JURISDICTION/SERVICE OF PROCESS.
GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE PERSONAL JURISDICTION OF THE STATE
COURTS OF THE STATE OF NEVADA LOCATED IN CLARK COUNTY NEVADA FOR THE PURPOSES
OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF OR BASED UPON THIS
GUARANTY, THE SUBJECT MATTER HEREOF, OR THE LOAN. GUARANTOR TO THE EXTENT PERMITTED
BY APPLICABLE LAW (A) HEREBY WAIVES, AND AGREES NOT TO ASSERT, BY WAY OF
MOTION, AS A DEFENSE, OR OTHERWISE, IN ANY SUCH SUIT, ACTION OR OTHER
PROCEEDING BROUGHT IN THE ABOVE-NAMED COURTS ANY CLAIM THAT IT IS NOT SUBJECT
PERSONALLY TO THE JURISDICTION OF SUCH COURTS, THAT THE SUIT, ACTION OR
PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF THE SUIT,
ACTION OR PROCEEDING IS IMPROPER OR THAT THIS GUARANTY, THE SUBJECT MATTER
HEREOF, OR THE LOAN (AS APPLICABLE) MAY NOT BE ENFORCED IN OR BY SUCH COURT AND
(B) HEREBY WAIVES THE RIGHT TO REMOVE ANY SUCH ACTION, SUIT OR PROCEEDING
INSTITUTED BY LENDER IN STATE COURT TO FEDERAL COURT, OR TO REMAND AN ACTION
INSTITUTED IN FEDERAL COURT TO STATE COURT (UNLESS THE FEDERAL COURT HAS NO
SUBJECT MATTER JURISDICTION). EACH GUARANTOR HEREBY CONSENTS TO SERVICE OF
PROCESS BY MAIL AT THE ADDRESS TO WHICH NOTICES ARE TO BE GIVEN TO IT PURSUANT
HERETO, BUT SERVICE WILL BE EFFECTIVE ONLY UPON DELIVERY. GUARANTOR AGREES THAT
ITS SUBMISSION TO JURISDICTION AND CONSENT TO SERVICE OF PROCESS BY MAIL IS
MADE FOR THE EXPRESS BENEFIT OF LENDER AND ITS ASSIGNS. FINAL JUDGMENT AGAINST
GUARANTOR IN ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE CONCLUSIVE, AND MAY
BE ENFORCED IN ANY

 6
 

 

 

OTHER JURISDICTION (X) BY SUIT, ACTION OR
PROCEEDING ON THE JUDGMENT, A CERTIFIED OR TRUE COPY OF WHICH SHALL BE
CONCLUSIVE EVIDENCE OF THE FACT AND OF THE AMOUNT OF INDEBTEDNESS OR LIABILITY
OF GUARANTOR THEREIN DESCRIBED, OR (Y) IN ANY OTHER MANNER PROVIDED BY OR
PURSUANT TO THE LAWS OF SUCH OTHER JURISDICTION, PROVIDED, HOWEVER,
THAT LENDER MAY AT ITS OPTION BRING SUIT, OR INSTITUTE OTHER JUDICIAL
PROCEEDINGS, AGAINST GUARANTOR OR ANY OF ITS ASSETS IN ANY STATE OR FEDERAL
COURT OF THE UNITED STATES OR OF ANY COUNTRY OR PLACE WHERE THE SUBMITTING
PARTY OR SUCH ASSETS MAY BE FOUND.

19.                                 WAIVER
WITH RESPECT TO DAMAGES. GUARANTOR ACKNOWLEDGES THAT LENDER DOES NOT HAVE
ANY FIDUCIARY RELATIONSHIP WITH, OR FIDUCIARY DUTY TO, GUARANTOR ARISING OUT OF
OR IN CONNECTION WITH THIS GUARANTY OR ANY OTHER LOAN DOCUMENT AND THE
RELATIONSHIP BETWEEN LENDER AND GUARANTOR, IN CONNECTION HEREWITH AND THEREWITH
IS SOLELY THAT OF GUARANTOR OF A DEBTOR AND CREDITOR. TO THE EXTENT PERMITTED
BY APPLICABLE LAW, GUARANTOR AND LENDER EACH SHALL NOT ASSERT, AND GUARANTOR
AND LENDER EACH HEREBY WAIVES, ANY CLAIMS AGAINST THE OTHER, ON ANY THEORY OF
LIABILITY, FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES (AS OPPOSED
TO DIRECT OR ACTUAL DAMAGES) ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT
OF, THIS GUARANTY, ANY OTHER LOAN DOCUMENT, ANY AGREEMENT OR INSTRUMENT
CONTEMPLATED HEREBY OR THEREBY, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY.

20.                                 Change
of Address. Guarantor (or each Guarantor, if more than one) agrees to
notify Lender (in the manner for giving notices provided in Section 14 above)
of any change in Guarantor’s address within a reasonable time after such change
of address occurs.

21.                                 Liability.

(a)                                  Notwithstanding
anything in this Guaranty to the contrary, Lender shall look for satisfaction
of the obligations of a Guarantor under this Guaranty only to the following
real and personal property of such Guarantor (the “Available Assets”):

(1)                                  the
legal and beneficial interests of such Guarantor in any entity that is, at the
time of enforcement of this Guaranty, (i) engaged in the business of holding,
constructing, developing or providing property management or overhead services
for real estate designed for residential use in the United States and (ii)
affiliated in any way with Trammell Crow Residential Company, or any subsidiary
thereof or any successor or assign of all or substantially all of the assets
thereof; and

(2)                                  any
receivables due the Guarantors from any entity described in the foregoing item
(1).

 7
 

 

 

Except for the Available Assets, Lender shall not look
to a Guarantor’s tangible or intangible real and personal property (including
cash, cash equivalents, securities, partnership interests, receivable or
similar intangible personal property) for satisfaction of any Guarantor’s
obligations under this Guaranty. Subject to Section 21(b), Lender may not look
to the tangible or intangible proceeds of any assets of a Guarantor, including
proceeds of the Available Assets, except as specifically provided in paragraph
(2) above.

(b)                                 Notwithstanding
the limitations in Section 21(a), Lender may look to proceeds of Available
Assets realized by a Guarantor (i) after the Aggregate Collateral Value, as
reported in the annual Collateral Value Statements prepared for the Guarantors,
is less than $80,000,000 or (ii) as a result of a transaction that causes the
Aggregate Collateral Value to be less than $80,000,000 As used in this
paragraph, the term “Aggregate Collateral Value” means the aggregate value of
the Available Assets as calculated on the basis provided in the notes to the
Collateral Value Statements of the Guarantors dated as of June 30, 2005. However,
notwithstanding this Section 21(b), in no event will Lender be entitled to
satisfy any obligation of a Guarantor from any of the following assets
(collectively, “Excluded Assets”): (i) the personal residences of the
Guarantor, (ii) the Guarantor’s nonbusiness real estate, including rural,
vacation and resort property, up to $1,000,000 in value, (iii) the Guarantor’s
personal automobiles and other tangible personal property, including household
goods, clothing, silverware, gems, jewelry and works of art, not to exceed
$1,500,000 in values, (iv) the interests listed in Section 21(c) and (v)
proceeds of Excluded Assets.

(c)                                  In
no case may Lender look to any of the following owned by a Guarantor (even if
it otherwise would be available under the terms of this Section 21) or any
proceeds thereof: stock in AvalonBay Communities, Inc., units in Avalon
DownREIT V, L.P., stock in Gables Residential Trust, units in Gables Realty
Limited Partnership, units in Equity Residential Properties Trust, units in ERP
Operating Limited Partnership, stock in BRE Properties, Inc, units in BRE
Property Investors, LLC, units in AMLI Residential Property Trust, units in
AMLI Residential Properties, L.P., units in Merry Land DownREIT I, L.P.,
ownership in J. Ronald Terwilliger Grantor Trust, stock in JRT Holdings, Inc.
and ownership in Terwilliger Partners, LLLP and interests in TCR Affordable
Housing Limited Partnership

(d)                                 The
term “residential” as used in this Section 21 means single family and multi
family dwellings, residential land/lot developments, and senior living
communities.

(e)                                  If
the collective aggregate value of the Available Assets of the Guarantor, as
reported in the Collateral Value Statement delivered under Section 11 falls to
less than $80,000,000 and if the Guarantor, Property Owner and/or Borrower fail
to correct such deficiency within 30 days following delivery of a deficiency
notice from Lender, then such failure shall, at the option of Lender,
constitute an Event of Default on the part of Borrower under the Loan Documents.
Guarantor, Property Owner and/or the Borrower shall have the right to correct
any deficiency in Available Assets by (i) obtaining and delivering to Lender
one or more new guaranties, each of which shall be in the form and content
substantially the same as this Guaranty from one or more persons whose
Available Assets are sufficient to correct the deficiency, (ii) delivering to
Lender and thereafter maintaining in full force and effect (for so

 8
 

 

 

long as the deficiency exists) an unconditional and
irrevocable letter of credit, in a face amount sufficient to correct the
deficiency, naming Lender as beneficiary, and otherwise in form and content and
issued by an institution acceptable to Lender in the exercise of good faith
business judgment, or (iii) the amendment of this Guaranty (in form and
substance acceptable to Lender in the exercise of its good faith business
judgment) in such a manner such that the definition of Available Assets is
expanded to include additional assets that are not then included in the
definition of Available Assets, sufficient to correct the deficiency and
otherwise acceptable to Lender in its good faith business judgment.

22.                                 Successors
and Assigns. This Guaranty shall be binding upon Guarantor and Guarantor’s
executors, personal representatives, successors and assigns and shall inure to
the benefit of Lender and its successors and assigns.

23.                                 Attorney’s
Fees. If it becomes necessary for Lender to employ counsel to enforce the
obligations of Guarantor hereunder, Guarantor agrees to pay the reasonable
attorneys’ fees and expenses incurred by Lender in connection therewith.

24.                                 WAIVER OF JURY TRIAL. GUARANTOR AND
LENDER EACH (A) AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE
ARISING OUT OF THIS GUARANTY OR THE RELATIONSHIP BETWEEN THE PARTIES AS
GUARANTOR AND LENDER THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY
RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH
RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS
SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF
COMPETENT LEGAL COUNSEL.

[Signatures follow on next page.]

 9
 

 

 

IN WITNESS WHEREOF, Guarantor
has signed and delivered this Guaranty or has caused this Guaranty to be signed
and delivered by its duly authorized representative.

	
  

  	
  GUARANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CFP Residential LP, a Texas limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Crow Family, Inc., a Texas corporation, its general

  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Harlan R. Crow, Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Address: 2001
  McKinney Ave., Suite 700,

  Dallas, Texas 75201

  
	
   

  	
  Social Security/Employer ID No.:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Kenneth Valach, an individual

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address: 10333
  Richmond Ave., Suite 400,

  Houston, Texas 77042

  
	
   

  	
  Social Security/Employer ID No.:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  J. Ronald Terwilliger, an individual

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Address: Two
  Buckhead Plaza,

  3050 Peachtree Road, N.W., Suite 500,

  Atlanta, Georgia 30305

  
	
   

  	
  Social Security/Employer ID No.:

  	
   

  
					

 

 10
 

 

 

	
  

  	
  Bruce Hart, an individual

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Address: 7373
  North Scottsdale Road, Suite C-2

  Scottsdale, Arizona 85253

  
	
   

  	
  Social Security/Employer ID No.:

  	
   

  
				

 

 11

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