Document:

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INSTRUMENT PREPARED BY:
Brad C. Lowry, Esq.
Haynes and Boone, L.L.P.
901 Main Street, Suite 3100
Dallas, Texas  75202

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR
STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED
FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S
LICENSE NUMBER.

                       DEED OF TRUST, SECURITY AGREEMENT,
                             AND FINANCING STATEMENT
                          DALLAS, DALLAS COUNTY, TEXAS

                   THIS INSTRUMENT SECURES OBLIGATORY ADVANCES
                         AND IS FOR COMMERCIAL PURPOSES.

             THIS INSTRUMENT SHALL ALSO CONSTITUTE A FIXTURE FILING

THE STATE OF TEXAS        ss.
                          ss.      KNOW ALL PERSONS BY THESE PRESENTS:
COUNTY OF DALLAS          ss.

        THIS DEED OF TRUST, SECURITY AGREEMENT, FINANCING STATEMENT, AND
ASSIGNMENT OF RENTAL is executed November 8, 2004, by BEHRINGER HARVARD
MOCKINGBIRD COMMONS LP, a Texas limited partnership, whose address is 15601
Dallas Parkway, Suite 600, Addison, Texas 75001 ("GRANTOR"), to Gerald W. Gurney
and/or JOHN C. O'SHEA, as Trustee ("TRUSTEE") for the benefit of TEXANS
COMMERCIAL CAPITAL, LLC, a Texas limited liability company ("BENEFICIARY").

                                    ARTICLE I

                                   DEFINITIONS

SECTION 1.1.    As used herein, the following terms shall have the definitions
assigned to them as follows:

        "BENEFICIARY" has the meaning assigned to it in the preamble hereof.

        "CODE" means the Uniform Commercial Code as adopted in the state of
Texas.

        "COLLATERAL" means all of Grantor's right, title, and interest, now
owned or hereafter acquired, in and to the following described properties and
interests:

                (1)     All portions of the Personal Property which are either
        fixtures or personal property, tangible or intangible; and

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                (2)     All building materials and equipment, machinery and
        other items of personal property of any kind or character now or
        hereafter related to, situated upon or used, or acquired for use, upon
        or in connection with any part of the Real Estate; and

                (3)     All revenues, receipts, income, accounts, accounts
        receivable and other receivables arising under, out of, in connection
        with or related to the Real Estate and including, without limitation,
        revenues, receipts, income, receivables and accounts relating to or
        arising from rentals, rent equivalent income, income and profits from
        guest rooms, meeting rooms, food and beverage facilities, vending
        machines, telephone and television systems, guest laundry, the provision
        or sale of other goods and services, and any other items of revenue,
        receipts or other income as identified in the current edition of the
        Uniform System of Accounts for Hotels, International Association of
        Hospitality Accountants, as from time to time amended; and

                (4)     All accounts, inventory, instruments, chattel paper,
        documents, consumer goods, insurance proceeds, Leases, contract rights,
        and general intangibles now, or hereafter related to, any of the Real
        Estate, including, without limitation, the following:

                        (A)     All contracts now or hereafter entered into by
                and between Grantor, as owner, and any contractor, or any other
                party, as well as all right, title, and interest of Grantor in,
                to, and under any subcontracts, providing for the construction
                (original, restorative or otherwise) of any of the Improvements,
                and of any other buildings, structures or improvements to, or
                on, the Real Estate (or any part thereof), or the furnishing of
                any materials, supplies, equipment, or labor in connection with
                any such construction;

                        (B)     All of the plans, specifications, and drawings
                (including, without limitation, plot plans, foundation plans,
                utility facilities plans, floor plans, elevations plans, framing
                plans, cross-sections of walls plans, mechanical plans,
                electrical plans, architectural and engineering plans and
                specifications, and architectural and engineering studies and
                analyses) heretofore or hereafter prepared by any architect or
                engineer with respect to any of the Real Estate;

                        (C)     All agreements now or hereafter entered into
                with any party with respect to architectural, engineering,
                management, brokerage, promotional, marketing, or consulting
                services rendered or to be rendered, with respect to the
                planning, design, inspection, or supervision of the
                construction, development, management, marketing, promotion,
                leasing, operation, or sale of any of the Real Estate and
                including, without limitation, the Approved Management
                Agreements;

                        (D)     [Reserved];

                        (E)     Any completion bonds, performance bonds, labor
                and material payment bonds, and any other bonds (and the
                proceeds therefrom) relating to any of the Real Estate or to any
                contract providing for construction of any of the Improvements
                or any other buildings, structures, or improvements to, or on,
                any of the Real Estate;

                        (F)     All rights or awards due to Grantor arising out
                of any eminent domain proceedings for the taking or for loss of
                value of any of the Real Estate;

                        (G)     All Rentals;

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                        (H)     All of Grantor's right, title and interest in
                and to all trademarks, trade names, or symbols under which any
                of the Real Estate is operated or the business of Grantor at the
                Real Estate is conducted and all agreements now or hereafter
                entered into by Grantor with respect thereto;

                        (I)     All revenues, receipts, income, accounts,
                accounts receivable and other receivables arising out of the
                leasing or operation of, or the business conducted at or in
                relation to, any of the Real Estate;

                        (J)     All rights to payment from any consumer
                credit/charge card organization or entity (such as or similar to
                the organizations or entities which sponsor and administer the
                American Express, Carte Blanche, Diner's Club, Visa, the
                Discover Card, and Mastercard cards) relating to the operation
                of, or the business conducted at or in relation to, the Real
                estate;

                        (K)     All monetary deposits which Grantor has been, or
                may be, required to give to any public or private utility with
                respect to utility services furnished, or to be furnished, to
                the Real Estate;

                        (L)     All contracts of sale and options relating to
                the disposition of any of the Real Estate;

                        (M)     All products and proceeds arising by virtue of
                any transaction related to the disposition of any of the
                Mortgaged Property;

                        (N)     All deposits of cash, securities, or other
                property which may be held at any time, and from time to time,
                by Grantor to secure the performance by each Lessee of such
                Lessee's covenants, agreements, and obligations under any Lease;

                        (O)     To the extent assignable, all permits, licenses
                (including, without limitation, liquor licenses), franchises,
                certificates, and other rights and privileges obtained by
                Grantor in connection with the Mortgaged Property;

                        (P)     The balance of every deposit account (now or
                hereafter existing) of Grantor with Beneficiary (or any agent,
                affiliate, or subsidiary of Beneficiary) and any other claim of
                Grantor against Beneficiary (now or hereafter existing) and all
                money, instruments, securities, documents, chattel paper,
                credits, demands, and any other property, rights, or interests
                of Grantor which at any time shall come into the possession,
                custody, or control of Beneficiary (or any agent, affiliate, or
                subsidiary of Beneficiary);

                        (Q)     All proceeds payable or to be payable under each
                policy of insurance relating to the Real Estate and/or the
                Personal Property; and

                        (R)     All books, records, computer programs, tapes,
                discs, computer software and other like records and information
                evidencing, securing, relating to or concerning the Real Estate,
                the Personal Property, and the property described in clauses
                (1), (2), (3) and (4) (A) through (Q), above (but excluding
                Grantor's income tax returns and similar financial records
                pertaining to Grantor;

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                (5)     All leases, licenses, security agreements, and all other
contracts and agreements governing or relating to Grantor's ownership, use,
operation or sale of any of the Mortgaged Property, to the extent not otherwise
included; and

                (6)     All payments under insurance (whether or not Beneficiary
is the loss payee thereof) or any indemnity, warranty or guaranty, payable by
reason of loss or damage to or otherwise with respect to any of the foregoing,
to the extent not otherwise included; and

                (7)     All replacements and substitutes for, all products and
proceeds of, and all accessions to, the foregoing.

        "DEED OF TRUST" means this Deed of Trust, Security Agreement, Financing
Statement and Assignment of Rental, including all exhibits attached hereto, as
the same may, at any time and from time to time, be renewed, extended, modified
and/or increased.

        "ENVIRONMENTAL INDEMNITY AGREEMENT" means the Environmental Indemnity
Agreement of even date herewith, executed by Grantor and each Guarantor, for the
benefit of Beneficiary, as it may from time to time be amended, supplemented or
restated.

        "EVENT OF DEFAULT" has the meaning set forth in SECTION 3.1 hereof.

        "GOVERNMENTAL AUTHORITY" means any governmental authority, the United
States of America, any state of the United States of America, and any
subdivision of any of the foregoing, and any agency, department, commission,
board, authority or instrumentality, bureau or court having jurisdiction over
the Mortgaged Property, or over Grantor or any occupant or user of the Mortgaged
Property, or any of their respective businesses, operations, assets or
properties.

        "GRANTOR" has the meaning assigned to it in the preamble hereof.

        "GRANTOR'S SUCCESSORS" means each and all of the heirs, executors,
administrators, legal representatives, successors, and assigns of Grantor, both
immediate and remote.

        "IMPROVEMENTS" means all buildings and improvements now or hereafter
situated upon the Land.

        "LAND" means all of that certain tract of real property located in
Dallas County, Texas, more particularly described upon EXHIBIT A attached
hereto, together with all rights, privileges, tenements, hereditaments,
rights-of-way, easements, appendages, projections, appurtenances, water rights
including riparian and littoral rights, oil, gas and mineral rights, streets,
ways, alleys, and strips and gores of land now or hereafter in anyway belonging,
adjoining, crossing or pertaining thereto, and all claims or demands of Grantor,
either at law or in equity, in possession or expectancy, of, in or to the same.

        "LEASE" means any ground lease, space lease, sublease or other agreement
(oral or written) under the terms of which any person other than Grantor has or
acquires any right to occupy, use, or manage the Mortgaged Property, or any part
thereof, or interest therein.

        "LESSEE" means each lessee, sublessee, tenant, guest or other Person
having the right to occupy, use, or manage the Mortgaged Property, or any part
thereof, under a Lease.

        "LOAN" means the indebtedness and obligations of Grantor evidenced by
the Loan Documents.

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        "LOAN AGREEMENT" means that certain Loan Agreement dated of even date
herewith between Grantor and Beneficiary, as it may, at any time and from time
to time, be amended, supplemented or restated.

        "LOAN DOCUMENTS" means the Note, the Loan Agreement, the Environmental
Indemnity Agreement, and this Deed of Trust, together with all loan agreements,
security agreements, deeds of trust, collateral pledge agreements, assignments,
guaranties or contracts evidencing, or securing the Secured Indebtedness, as
they may, at any time and from time to time, be amended, renewed, extended,
increased, supplemented and/or restated.

        "MORTGAGED PROPERTY" means the Real Estate and the Collateral,
collectively.

        "NOTE" means that certain promissory note dated of even date herewith,
executed by Grantor and payable to the order of Beneficiary, in the original
principal amount of Seventeen Million and no/100 Dollars ($17,000,000.00),
bearing interest as therein specified, containing a clause requiring the payment
of reasonable attorneys' fees, and providing that the principal balance of such
note shall be due and payable on November 8, 2006, as it may, at any time and
from time to time, be renewed, extended, modified, increased, supplemented or
restated.

        "PERMITTED EXCEPTIONS" means those items shown upon EXHIBIT B attached
hereto.

        "PERSONAL PROPERTY" means all fixtures, building materials, machinery,
equipment, furniture, furnishings, inventory, and personal property, and all
renewals, replacements and substitutions therefor and additions thereto, in
which Grantor now has, or at any time hereafter acquires, an interest, and which
now, or at any time hereafter, are situated in, on or about the Land.

        "REAL ESTATE" means the Land, the Improvements, the Personal Property,
the Leases, the Rental, and all other estates, easements, licenses, interests,
rights, titles, powers and privileges of every kind and character which Grantor
now has or at any time hereafter acquires, in and to the Land, the Improvements,
the Personal Property, and all property which is used or useful in connection
with the Land, the Improvements, and the Personal Property, and the proceeds of
any and all insurance covering the Land, the Improvements, the Leases, the
Rental or the Personal Property.

        "RENTAL" means all rents, issues, profits, royalties, bonuses, revenue,
receipts, income, accounts, accounts receivable and other receivables, and other
benefits derived from the Mortgaged Property or arising from the use or
enjoyment of any portion thereof or from any Lease and including, without
limitation, all revenues, receipts, income, receivables and accounts relating to
or arising from rentals, rent equivalent income, income and profits from guest
rooms, meeting rooms, food and beverage facilities, vending machines, telephone
and television systems, guest laundry, the provision or sale of other goods and
services, and any other items of revenue, receipts or other income as identified
in the current edition of the Uniform System of Accounts for Hotels,
International Association of Hospitality Accountants, as from time to time
amended; all liquidated damages following defaults under any Lease; all proceeds
payable under any policy of insurance covering loss of rents, issues, profits,
royalties, bonuses, revenue, receipts, income, accounts, accounts receivable and
other receivables, and other benefits; and any and all rights which Grantor may
have against any Lessee or against any other Person under or in connection with
any Lease.

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        "SECURED INDEBTEDNESS" means:

        (a)     All indebtedness, liabilities and obligations arising under the
Note, the Loan Agreement, this Deed of Trust, and the other Loan Documents;

        (b)     All loans and advances which Beneficiary may hereafter make to
or for the benefit of Grantor in connection with the Loan or the Mortgaged
Property;

        (c)     All other and additional indebtedness, liabilities and
obligations of every kind and character, of Grantor now or hereafter existing in
favor of Beneficiary in connection with the Loan or the Mortgaged Property,
regardless of whether they are direct, indirect, primary, secondary, joint,
several, joint and several, liquidated, unliquidated, fixed or contingent, and
regardless of whether the same may, prior to their acquisition by Beneficiary,
be or have been payable to some other person or entity, it being the intention
and contemplation of Grantor and Beneficiary that future advances may be made to
Grantor for a variety of purposes, that Grantor may guarantee (or otherwise
become directly or contingently obligated with respect to), the obligations of
others to Beneficiary in connection with the Loan or the Mortgaged Property, or
that Grantor may otherwise hereafter be or become further indebted to
Beneficiary, and that payment and repayment of all of the foregoing are intended
to and shall be part of the Secured Indebtedness secured hereby; and

        (d)     Any and all renewals, increases, extensions, modifications,
rearrangements, or restatements of and supplements to all or any part of the
loans, advances, indebtednesses, liabilities, and obligations described or
referred to in subparagraphs (a) through (c) above, together with all costs,
expenses and reasonable attorneys' fees incurred in connection with the
enforcement or collection thereof.

        "TRUSTEE" has the meaning assigned to it in the preamble and shall
include all substitute trustees appointed in conformity with SECTION 3.2(G).

SECTION 1.2.    All capitalized terms not otherwise defined herein shall have
the meaning assigned to them in the Loan Agreement.

                                   ARTICLE II

                                      GRANT

SECTION 2.1.

        (a)     For good and valuable consideration, including the indebtedness
evidenced by the Note, the Secured Indebtedness and the trust hereinafter
described, the receipt and legal sufficiency of which are hereby expressly
acknowledged by all parties, Grantor does hereby GRANT, BARGAIN, SELL, TRANSFER,
ASSIGN, AND CONVEY unto Trustee the Mortgaged Property, subject only to the
Permitted Exceptions.

TO HAVE AND TO HOLD the Mortgaged Property, together with all and singular the
rights, hereditaments, and appurtenances in anywise appertaining or belonging
thereto, unto Trustee and Trustee's successors or substitutes in this trust, and
Trustee's and its or his successors and assigns, in trust and for the uses and
purposes hereinafter set forth, forever; provided, however, that upon payment in
full of the Secured Indebtedness and performance by Grantor of all obligations
under the Loan Documents, then the Liens, security interests and other rights
granted hereunder will terminate in accordance with the provisions hereof.

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        (b)     This Deed of Trust shall also constitute a security agreement
with respect to, and Grantor hereby grants to Beneficiary a security interest
in, the Collateral. This Deed of Trust shall constitute a "fixture filing" for
purposes of Chapter 9 of the Code. Portions of the Collateral are or may become
fixtures. Information concerning the security interests herein granted may be
obtained at the addresses stated in the introductory paragraph of this Deed of
Trust.

        (c)     To the extent that any of the Collateral is not subject to the
Uniform Commercial Code of the state or states where it is situated, Grantor
hereby assigns to Beneficiary all of Grantor's right, title, and interest in and
to the Collateral to secure the Secured Indebtedness, together with the right of
set-off with regard to such Collateral (or any part hereof). Release of the lien
of this Deed of Trust shall automatically terminate this assignment.

SECTION 2.2.    Grantor, for Grantor and Grantor's Successors, hereby agrees to
warrant and forever defend, all and singular, title to the Mortgaged Property
unto Trustee, and Trustee's successors or substitutes in this trust, forever,
against every person whomsoever lawfully claiming, or to claim, the same or any
part thereof, by, through or under Grantor, but not otherwise subject, however,
to the Permitted Exceptions.

SECTION 2.3.    This Deed of Trust, and all rights, remedies, powers,
privileges, and benefits, and all titles, interests, liens, and security
interests created hereby, or arising by virtue hereof, are given to secure
payment and performance of the Secured Indebtedness.

SECTION 2.4.    A carbon, photographic, or other reproduction of this Deed of
Trust, or any financing statement relating to this Deed of Trust, shall be
sufficient as a financing statement.

                                   ARTICLE III

                 RESPECTING DEFAULTS AND REMEDIES OF BENEFICIARY

SECTION 3.1.    The term "EVENT OF DEFAULT" shall mean the occurrence of an
Event of Default, as such term is defined in the Loan Agreement.

SECTION 3.2.    Upon the occurrence of an Event of Default, Beneficiary may, at
Beneficiary's option, do any one or more of the following:

        (a)     If Grantor has failed to keep or perform any covenant whatsoever
contained in this Deed of Trust or other Loan Documents, Beneficiary may, but
shall not be obligated to any person to, perform or attempt to perform said
covenant, and any payment made or expense incurred in the performance or
attempted performance of any such covenant shall be a part of the Secured
Indebtedness, and Grantor promises, upon demand, to pay to Beneficiary, at the
place where the Note is payable, or at such other place as Beneficiary may
direct by written notice, all sums so advanced or paid by Beneficiary, with
interest at the Default Rate (as defined in the Loan Agreement) from the date
when paid or incurred by Beneficiary. No such payment by Beneficiary shall
constitute a waiver of any Event of Default. In addition to the liens and
security interests hereof, Beneficiary shall be subrogated to all rights,
titles, liens, and security interests securing the payment of any debt, claim,
tax, or assessment for the payment of which Beneficiary may make an advance, or
which Beneficiary may pay.

        (b)     Beneficiary may, at its option, declare the Note and all or any
other portion of the remaining Secured Indebtedness to be immediately due and
payable without presentment, demand, protest, notice of protest and non-payment,
or other notice of default, notice of acceleration and intention to accelerate
or other notice of any kind, all of which are expressly waived by Grantor;
PROVIDED, HOWEVER, that if any Event of

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Default specified in ARTICLE VII(E) OR (F) of the Loan Agreement shall occur,
the Note and the remaining Secured Indebtedness shall thereupon become due and
payable concurrently therewith, without any further action by Beneficiary and
without presentment, demand, protest, notice of protest and non-payment, or
other notice of default, notice of acceleration and intention to accelerate or
other notice of any kind, all of which are expressly waived by Grantor.

        (c)     Trustee, or Trustee's successor in trust, is authorized and
empowered, upon giving notice of the time and place of sale by publication of
such by three (3) publications for successive weeks in any newspaper of general
circulation published in the county wherein the Mortgaged Property is located,
the first publication of which shall be at least twenty one (21) days previous
to said sale, to sell the Mortgaged Property, or any part thereof, in such
parcels, manner or order as Beneficiary may direct, at any location in the
county designated in such notice to the highest bidder for cash, at public
outcry, free from the equity of redemption, the statutory right of redemption,
exemptions of homestead, rights by virtue of marriage, and all other rights and
exemptions of every kind, all of which are expressly waived. The Trustee or the
Trustee's successor in trust is further authorized and empowered to execute and
deliver a deed to the purchaser at such sale. Beneficiary may bid at any such
sale. The Trustee may adjourn any sale hereunder and may reset such sale at a
later time and/or dates by announcement of such at the time and place of the
originally advertised sale without further publication. The purchaser at such
sale shall be entitled to immediate possession of the Mortgaged Property upon
the delivery to purchaser by Trustee of a deed for the Mortgaged Property. Prior
to such sale, Trustee may enter and take possession of the Mortgaged Property,
in which case Trustee shall be accountable only for net rents actually received
by Trustee.

        Without limitation, this Deed of Trust shall extend to the interest of
Grantor in the proceeds from any judicial or trust sale of the Mortgaged
Property, including, without limitation, the proceeds from sale by foreclosure
of any prior encumbrance to the extent that such proceeds exceed the amount
necessary to satisfy such prior encumbrance. The trustee, officer, or other
person in charge of any such sale or foreclosure is hereby directed to pay such
excess proceeds to the agent for holders of the Secured Indebtedness to the
extent necessary to retire the Secured Indebtedness. Such person is hereby
authorized, given a power of attorney, and directed to endorse any checks
representing proceeds of sale as requested by the agent for holders of the
Secured Indebtedness pursuant to the provisions of this section.

        Grantor shall pay all costs and expenses of Trustee or Beneficiary
incurred in connection with protecting, preserving or enforcing of any rights of
Trustee or Beneficiary hereunder, including but not limited to all attorneys'
fees and court costs incurred in connection therewith.

        (d)     Grantor expressly agrees that Trustee, or Trustee's successor,
may execute the power of sale granted herein and the other powers and rights set
forth herein without giving bond or taking oath. The Trustee shall not be liable
to Grantor for any acts or omissions to act in the execution of Trustee's powers
hereunder, except for such acts or omissions as constitute gross negligence or
willful misconduct. Except in such instances of gross negligence or willful
misconduct, neither the Trustee nor Beneficiary shall be obligated to provide an
accounting of any funds received or disbursed in connection with the payment of
the Secured Indebtedness or the administration, enforcement, or foreclosure of
this trust. Grantor expressly waives the equity of redemption, the statutory
right of redemption, all rights to homestead and other exemption, all rights
arising by virtue of marriage, and all other similar exemptions and rights
arising under or created by an applicable statute or judicial decision.

        (e)     It is intended by each of the foregoing provisions of SUBSECTION
3.2(C) and SUBSECTION 3.2(D) that Trustee may, after any request or direction by
Beneficiary, sell not only the Real Estate but also the Collateral and other
interests constituting a part of the Mortgaged Property, or any part thereof,
along with the Real Estate, or any part thereof, all as a unit and as a part of
a single sale, or may sell any part of the

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Mortgaged Property separately from the remainder of the Mortgaged Property. The
sale or sales by Trustee of less than the whole of the Mortgaged Property shall
not exhaust the power of sale herein granted, and Trustee is specifically
empowered to make successive sale or sales under such power until the whole of
the Mortgaged Property shall be sold; and if the proceeds of such sale or sales
of less than the whole of such Mortgaged Property shall be less than the
aggregate of the Secured Indebtedness and the expense of executing this trust,
this Deed of Trust and the assignments, liens, and security interests hereof
shall remain in full force and effect as to the unsold portion of the Mortgaged
Property just as though no sale or sales of less than the whole of the Mortgaged
Property had occurred, but Beneficiary shall have the right, at its sole
election, to request Trustee to sell less than the whole of the Mortgaged
Property.

        (f)     Grantor and Beneficiary agree that, in any assignments, deeds,
bills of sale, notices of sale, or postings, given by Trustee or Beneficiary,
any and all statements of fact or other recitals therein made as to the identity
of Beneficiary, or as to the occurrence or existence of any Event of Default, or
as to the acceleration of the maturity of the Secured Indebtedness, or as to the
request to sell, posting of notice of sale, notice of sale, time, place, terms
and manner of sale and receipt, distribution and application of the money
realized therefrom, or as to the due and proper appointment of a substitute
trustee and without being limited by the foregoing, as to any other act or thing
having been duly done by Beneficiary or by Trustee, shall be taken by all courts
of law and equity as PRIMA FACIE evidence that the said statements or recitals
state facts, and Grantor does hereby ratify and confirm any and all acts that
Trustee may lawfully do in the premises by virtue hereof.

        (g)     In the event of the resignation or death of Trustee, or
Trustee's failure, refusal or inability, for any reason, to make any such sale
or to perform any of the trusts herein declared, or, at the option of
Beneficiary, without cause, Beneficiary may appoint, orally or in writing, a
substitute trustee, who shall thereupon succeed to all the estates, titles,
rights, powers, and trusts herein granted to and vested in Trustee. If
Beneficiary is a corporation, such appointment may be made on behalf of such
Beneficiary by any person who is then the president, or a vice-president,
assistant vice-president, treasurer, cashier, secretary, or any other authorized
officer or agent of Beneficiary. In the event of the resignation or death of any
substitute trustee, or such substitute trustee's failure, refusal or inability
to make any such sale or perform such trusts, or, at the option of Beneficiary,
without cause, successive substitute trustees may thereafter, from time to time,
be appointed in the same manner. Wherever herein the word "TRUSTEE" is used, the
same shall mean the person who is the duly appointed trustee in the first
paragraph of this Deed of Trust or substitute trustee hereunder at the time in
question.

        (h)     Beneficiary may, or Trustee may upon written request of
Beneficiary, proceed by suit or suits, at law or in equity, to enforce the
payment and performance of the Secured Indebtedness in accordance with the terms
hereof or of the Note or the other Loan Documents, to foreclose or otherwise
enforce the assignments, liens, and security interests created or evidenced by
the other Loan Documents, or this Deed of Trust as against all, or any part of,
the Mortgaged Property, and to have all or any part of the Mortgaged Property
sold under the judgment or decree of a court of competent jurisdiction.

        (i)     To the extent permitted by law, Beneficiary, as a matter of
right without notice to Grantor and without regard to the sufficiency of the
security, and without any showing of insolvency, fraud, or mismanagement on the
part of Grantor, and without the necessity of filing any judicial or other
proceeding other than the proceeding for appointment of a receiver, shall be
entitled to the appointment of a receiver or receivers of the Mortgaged
Property, or any part thereof, and of the income, rents, issues, profits,
revenues, receipts, accounts, accounts receivable and other receivables thereof.

        (j)     To the extent permitted by law, Beneficiary may enter upon the
Land, take possession of the Mortgaged Property and remove the Collateral or any
part thereof, with or without judicial process, and, in

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connection therewith, without any responsibility or liability on the part of
Beneficiary, take possession of any property located on or in the Real Estate
which is not a part of the Mortgaged Property and hold or store such property at
Grantor's expense.

        (k)     Beneficiary may require Grantor to assemble the Collateral, or
any part thereof, and make it available to Beneficiary at a place to be
designated by Beneficiary which is reasonably convenient to Grantor and
Beneficiary.

        (l)     After notification, if any, hereafter provided in this
Subsection, Beneficiary may, or the Trustee may, upon request of Beneficiary,
sell, lease, or otherwise dispose of, at the office of Beneficiary, or on the
Land, or elsewhere as chosen by Beneficiary, all or any part of the Collateral,
in its then condition, or following any commercially reasonable preparation or
processing, and each "SALE" (as used herein, the term "SALE" means any such
sale, lease, or other disposition made pursuant to this SUBSECTION 3.2(L)) may
be as a unit or in parcels, by public or private proceedings, and by way of one
or more contracts, and, at any Sale, it shall not be necessary to exhibit the
Collateral, or part thereof, being sold. The Sale of any part of the Collateral
shall not exhaust Beneficiary's power of Sale, but Sales may be made, from time
to time, until the Secured Indebtedness is paid and performed in full.
Reasonable notification of the time and place of any public Sale pursuant to
this Subsection, or reasonable notification of the time after which any private
Sale is to be made pursuant to this Subsection, shall be sent to Grantor and to
any other person entitled to notice under Chapter 9 of the Code; provided, that
if the Collateral being sold, or any part thereof, is perishable, or threatens
to decline speedily in value, or is of a type customarily sold on a recognized
market, Beneficiary may sell, lease, or otherwise dispose of such Collateral
without notification, advertisement or other notice of any kind. It is agreed
that notice sent or given not less than ten (10) calendar days prior to the
taking of the action to which the notice relates, is reasonable notification and
notice for the purposes of this Subsection.

        (m)     Beneficiary may surrender the insurance policies maintained
pursuant to the terms hereof, or any part thereof, and receive and apply the
unearned premiums as a credit on the Secured Indebtedness, and, in connection
therewith, Grantor hereby appoints Beneficiary (or any officer of Beneficiary),
as the true and lawful agent and attorney-in-fact for Grantor (with full powers
of substitution), which power of attorney shall be deemed to be a power coupled
with an interest and therefore irrevocable, to collect such premiums.

        (n)     Beneficiary may retain the Collateral in satisfaction of the
Secured Indebtedness whenever the circumstances are such that Beneficiary is
entitled to do so under the Code.

        (o)     Beneficiary may buy the Mortgaged Property, or any part thereof,
at any public Sale or judicial Sale (including any Sale of the Collateral as
contemplated in SUBSECTION 3.2(L) hereof).

        (p)     Beneficiary may buy the Collateral, or any part thereof, at any
private Sale if the Collateral, or part thereof, being sold is a type
customarily sold in a recognized market or a type which is the subject of widely
distributed standard price quotations.

        (q)     Beneficiary shall have and may exercise any and all other rights
and remedies which Beneficiary may have at law or in equity, or by virtue of any
other security instrument, or under the Code, or otherwise.

        (r)     Notwithstanding anything contained herein to the contrary,
Beneficiary may proceed under Chapter 9 of the Code as to any or all personal
property covered hereby or, at Beneficiary's election, Beneficiary may proceed
as to both the real and personal property covered hereby in accordance with
Beneficiary's rights and remedies in respect of real property, in which case the
provisions of Chapter 9 of the Code (and SUBSECTION 3.2(L) hereof) shall not
apply.

                                                                              10
<PAGE>

SECTION 3.3.    If Beneficiary is the purchaser of the Mortgaged Property, or
any part thereof, at any sale thereof (including any Sale of the Collateral as
contemplated in SUBSECTION 3.2(L) hereof), whether such sale be under the power
of sale hereinabove vested in Trustee, or upon any other foreclosure or
enforcement of the assignments, liens, and security interests hereof, or
otherwise, Beneficiary shall, upon any such purchase, acquire good title to the
Mortgaged Property so purchased, free of the assignments, liens, and security
interests of these presents.

SECTION 3.4.    Should any part of the Mortgaged Property come into the
possession of Beneficiary, whether before or after the occurrence of an Event of
Default, Beneficiary may use or operate the Mortgaged Property for the purpose
of preserving it or its value, pursuant to the order of a court of appropriate
jurisdiction, or in accordance with any other rights held by Beneficiary with
respect to the Mortgaged Property. Grantor covenants to promptly reimburse and
pay to Beneficiary, at the place where the Note is payable, or at such other
place as may be designated by Beneficiary in writing, the amount of all
reasonable expenses (including the cost of any insurance, taxes, or other
charges) incurred by Beneficiary in connection with its custody, preservation,
use or operation of the Mortgaged Property, together with interest thereon from
the date incurred by Beneficiary at the Default Rate (as defined in the Loan
Agreement), and all such expenses, cost, taxes, interest, and other charges
shall be a part of the Secured Indebtedness. It is agreed, however, that the
risk of accidental loss or damage to the Mortgaged Property is undertaken by
Grantor, and Beneficiary shall have no liability whatever for decline in value
of the Mortgaged Property, nor for failure to obtain or maintain insurance, nor
for failure to determine whether any insurance ever in force is adequate as to
amount or as to the risks insured.

SECTION 3.5.    If the assignments, liens, or security interests hereof shall be
foreclosed or otherwise enforced by a Trustee's sale, or by any other judicial
or non-judicial action, then the purchaser at any such sale shall receive, as an
incident to his ownership, immediate possession of that portion of the Mortgaged
Property purchased, and if Grantor or Grantor's Successors shall hold possession
of any of said portion of the Mortgaged Property subsequent to such foreclosure,
Grantor and Grantor's Successors shall be considered as tenants at sufferance of
the purchaser at such foreclosure sale, and anyone occupying the Mortgaged
Property (or any part thereof) after demand made for possession thereof shall be
guilty of forcible detainer and shall be subject to eviction and removal,
forcible or otherwise, with or without (to the extent permitted by law) process
of law, and all damages by reason thereof are hereby expressly waived.

SECTION 3.6.    The proceeds from any sale, lease or other disposition made
pursuant to this ARTICLE III, or the proceeds from surrendering any insurance
policies pursuant to SUBSECTION 3.2(M) hereof, or any Rental collected by
Beneficiary pursuant to ARTICLE V hereof, or sums received pursuant to SECTION
5.7 hereof, shall be applied by Trustee, or by Beneficiary, as the case may be,
as follows: FIRST, to the Secured Indebtedness, in the order and manner
described in Section 2.04 of the Loan Agreement, and SECOND, the balance, if
any, remaining after the full and final payment and performance of the Secured
Indebtedness, to Grantor, or as otherwise required by applicable law.

SECTION 3.7.    This instrument shall be effective as a mortgage as well as a
deed of trust, and upon the occurrence of an Event of Default may be foreclosed
as to the Mortgaged Property in any manner permitted by the laws of the State in
which the Land is located and any other state in which any part of the Mortgaged
Property is situated. Any foreclosure suit may be brought by Trustee or
Beneficiary. If a foreclosure hereunder is commenced by Trustee, Beneficiary
may, at any time before the sale, direct the Trustee to abandon the sale, and
may then institute suit for the collection of the Note (subject to the
limitations on liability set forth in the Loan Agreement), and for the
foreclosure or enforcement of the assignments, liens, and security interests
hereof. If Beneficiary should institute a suit for the collection of the Note,
and for a foreclosure or enforcement of the assignments, liens, and security
interests hereof, it may, at any time before

                                       11
<PAGE>

the entry of a final judgment in said suit, dismiss the same, and require
Trustee to sell the Mortgaged Property, or any part thereof, in accordance with
the provisions of this Deed of Trust.

                                   ARTICLE IV

                                   [RESERVED]

                                    ARTICLE V

                                  MISCELLANEOUS

SECTION 5.1.    If the Secured Indebtedness is paid in full, then this
conveyance shall become null and void and shall be released at Grantor's request
and expense; otherwise, it shall remain in full force and effect, provided that
no release hereof shall impair Grantor's warranties and indemnities contained
herein.

SECTION 5.2.    As used in this ARTICLE V, "RIGHTS" means rights, remedies,
powers and privileges, and "LIENS" means all assignments, titles, interests,
liens, security interests, and other encumbrances. All Rights and Liens herein
expressly conferred are cumulative of all other Rights and Liens herein, or by
law or in equity provided, or provided in any other security instrument, and
shall not be deemed to deprive Beneficiary or Trustee of any such other legal or
equitable Rights and Liens by judicial proceedings, or otherwise, appropriate to
enforce the conditions, covenants and terms of this Deed of Trust, the Note and
the other Loan Documents, and the employment of any Rights hereunder, or
otherwise, shall not prevent the concurrent or subsequent employment of any
other appropriate Rights.

SECTION 5.3.    Any and all covenants in this Deed of Trust may from time to
time, by instrument in writing signed by Beneficiary and delivered to Grantor,
be waived to such extent and in such manner as Beneficiary may desire, but no
such waiver shall ever affect or impair Beneficiary's Rights or Liens hereunder,
except to the extent so specifically stated in such written instrument.
Impossibility shall not excuse the performance of any covenant or condition in
this Deed of Trust.

SECTION 5.4.    If Grantor, or any of Grantor's Successors, conveys its
interest in any of the Mortgaged Property to any other party, then Beneficiary
may, without notice to Grantor, or its successors and assigns, deal with any
owner of any part of the Mortgaged Property with reference to this Deed of Trust
and the Secured Indebtedness, either by way of forbearance on the part of
Beneficiary, or extension of time of payment of the Secured Indebtedness, or
release of all or any part of the Mortgaged Property, or any other property
securing payment of the Secured Indebtedness, without in any way modifying or
affecting Beneficiary's Rights and Liens hereunder or the liability of Grantor,
or any other party liable for payment of the Secured Indebtedness, in whole or
in part.

SECTION 5.5.    Grantor hereby waives all Rights of marshaling in the event of
any foreclosure of the Liens hereby created.

SECTION 5.6.    It is understood and agreed that the proceeds of the Note, to
the extent that the same are utilized to pay or renew or extend any indebtedness
of Grantor, or any other indebtedness, or take up or release any outstanding
Liens against the Mortgaged Property, or any portion thereof, have been advanced
by Beneficiary at Grantor's request and at the request of the obligors thereof
and upon their representation that such amounts are due and payable. Beneficiary
shall be subrogated to any and all Rights and Liens owned or claimed by any
owner or Beneficiary of said outstanding Rights and Liens, however remote,
regardless of whether said Rights and Liens are acquired by assignment or are
released by the Beneficiary thereof upon payment.

                                                                              12
<PAGE>

SECTION 5.7.    Each and every party who signs this Deed of Trust, and each and
every subsequent owner of any of the Mortgaged Property, covenants and agrees
that such party will perform or cause to be performed, each and every condition,
term, provision, and covenant of this Deed of Trust, except that such party
shall have no duty to pay the indebtedness evidenced by the Note except in
accordance with the terms of the Note, and the terms of this Deed of Trust or in
accordance with the terms of the transfer to him.

SECTION 5.8.    If any provision of this Deed of Trust is held to be illegal,
invalid, or unenforceable under present or future laws effective during the term
of this Deed of Trust, the legality, validity, and enforceability of the
remaining provisions of this Deed of Trust shall not be affected thereby, and in
lieu of each such illegal, invalid or unenforceable provision there shall be
added automatically as a part of this Deed of Trust a provision as similar in
terms to such illegal, invalid, or unenforceable provision as may be possible
and be legal, valid, and enforceable. If the Rights and Liens created by this
Deed of Trust shall be invalid or unenforceable as to any part of the Secured
Indebtedness, then the unsecured portion of the Secured Indebtedness shall be
completely paid prior to the payment of the remaining and secured portion of the
Secured Indebtedness, and all payments made on the Secured Indebtedness shall be
considered to have been paid on and applied first to the complete payment of the
unsecured portion of the Secured Indebtedness.

SECTION 5.9.    This Deed of Trust is binding upon Grantor and Grantor's
Successors, and shall inure to the benefit of Beneficiary, and its successors
and assigns, and the provisions hereof shall likewise be covenants running with
the land. The duties, covenants, conditions, obligations, and warranties of
Grantor in this Deed of Trust shall be joint and several obligations of Grantor
and Grantor's Successors.

SECTION 5.10.   This Deed of Trust may be executed in a number of identical
counterparts, each of which, for all purposes, shall be deemed an original.

SECTION 5.11.   Beneficiary shall have the right at any time to file this Deed
of Trust as a financing statement, but the failure to do so shall not impair the
validity and enforceability of this Deed of Trust in any respect whatsoever.
Grantor grants to Beneficiary the right to file any financing statement,
continuation or amendment deemed appropriate by Beneficiary, without signature
by Grantor and without notice, in connection with the security interests granted
herein or in any other Security Instrument.

SECTION 5.12.   Grantor hereby assumes all liability for the Mortgaged Property,
for the Liens created therein by this Deed of Trust, and for any development,
use, possession, maintenance, and management of, and construction upon, the
Mortgaged Property, or any part thereof, and agrees to assume liability for, and
to indemnify and hold Beneficiary harmless from and against, any and all claims,
causes of action, or liabilities, for injuries to or deaths of persons and
damage to property, howsoever arising, from or incident to such development,
use, possession, maintenance, management, and construction, whether such persons
be agents or employees of Grantor or of third parties, or such damage be to
property of Grantor or of others save and except for such damage or injury as is
the result of Beneficiary's gross negligence or willful misconduct. Grantor
agrees to indemnify, save and hold harmless Beneficiary from and against, and
covenants to defend Beneficiary against, any and all losses, damages, claims,
costs, penalties, liabilities, and expenses, including, but not limited to,
court costs and reasonable attorneys' fees, howsoever arising or incurred
because of, incident to, or with respect to the Mortgaged Property or any
development, use, possession, maintenance, or management thereof or construction
thereon.

SECTION 5.13.   If all or any portion of the proceeds of the loan evidenced by
the Note has been advanced for the purpose of paying the purchase price for all
or a part of the Mortgaged Property, then Beneficiary shall have, and is hereby
granted, a vendor's lien on the Mortgaged Property to further secure the Secured
Indebtedness.

                                       13
<PAGE>

SECTION 5.14.   All references to "ARTICLE," "ARTICLES," "SECTION," "SECTIONS,"
"SUBSECTION," or "SUBSECTIONS" contained herein are, unless specifically
indicated otherwise, references to articles, sections, and subsections of this
Deed of Trust.

SECTION 5.15.   Whenever herein the singular number is used, the same shall
include the plural where appropriate, and words of any gender shall include each
other gender where appropriate.

SECTION 5.16.   The captions, headings, and arrangements used in this Deed of
Trust are for convenience only and do not in any way affect, limit, amplify, or
modify the terms and provisions hereof.

SECTION 5.17.   Whenever this Deed of Trust requires or permits any consent,
approval, notice, request, or demand from one party to another, the consent,
approval, notice, request, or demand must be in writing to be effective and
shall be deemed to have been given when given in accordance with the provisions
of Section 9.01 of the Loan Agreement; provided that any notice of foreclosure
shall be effective when given in accordance with statutory requirements
notwithstanding anything to the contrary contained herein or in Section 9.01 of
the Loan Agreement.

        Notwithstanding any provision contained herein or in any of the other
Loan Documents to the contrary, in the event that Beneficiary shall fail to give
any notice to Grantor required hereunder or thereunder, the sole and exclusive
remedy for such failure shall be to seek appropriate equitable relief to enforce
the Loan Documents to give such notice and to have any action of Beneficiary
postponed or revoked and any proceedings in connection therewith delayed or
terminated pending the giving of such notice by Beneficiary, and no Person shall
have any right to damages (whether actual or consequential) or any other type of
relief not herein specifically set out against Beneficiary, all of which damages
or other relief are expressly waived by Grantor. The foregoing is not intended
and shall not be deemed under any circumstances to require Beneficiary to give
notice of any type or nature to any Person except as expressly set forth herein
or as may be otherwise expressly required by applicable law regarding statutory
notice of non-judicial foreclosure sales of certain collateral.

SECTION 5.18.   This Deed of Trust, to the extent it involves the creation,
perfection, validity or enforcement of the liens and security interests granted
herein, shall be construed, enforced and governed by and in accordance with the
laws of the State in which the Land is located without regard to principles of
conflicts of laws, provided that the internal laws of the State of Texas
(without regard to principles of conflicts of laws) shall govern the resolution
of issues arising under the Note, the Loan Agreement and the other Loan
Documents (except to the extent expressly provided to the contrary therein) for
all purposes, including without limitation, to the extent that such resolution
is necessary for the interpretation of this Deed of Trust.

SECTION 5.19.   No provision herein or in any promissory note, instrument, or
any other Security Instrument evidencing or securing the Secured Indebtedness
shall require the payment or permit the collection of interest in excess of the
maximum permitted by law. If any excess of interest in such respect is provided
for herein or in any other Security Instrument, the provisions of this paragraph
shall govern, and neither Grantor nor Borrower shall be obligated to pay the
amount of such interest to the extent that it is in excess of the amount
permitted by law. The intention of the parties being to conform strictly to the
usury laws now in force, all promissory notes, instruments, and other Loan
Documents evidencing or securing the Secured Indebtedness shall be held subject
to reduction to the amount allowed under said usury laws as now or hereafter
construed by the courts having jurisdiction.

SECTION 5.20.   Any suit, action or proceeding against Grantor with respect to
this Deed of Trust or the other Loan Documents or any judgment entered by any
court in respect thereof, may be brought in the courts of the

                                                                              14
<PAGE>

State of Texas, or in the United States Courts located in Dallas County, Texas,
as Beneficiary in its sole discretion may elect and Grantor hereby submits to
the non-exclusive jurisdiction of such courts for the purpose of any such suit,
action or proceeding. Grantor hereby irrevocably consents to the service of
process in any suit, action or proceeding in said court by the mailing thereof
by Beneficiary by registered or certified mail, postage prepaid, to Grantor's
address set forth in SECTION 5.17 hereof. Grantor 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 Deed of Trust or
any other Security Instrument brought in the courts located in the 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. GRANTOR AND BENEFICIARY HEREBY WAIVE TRIAL BY JURY IN ANY
SUIT, ACTION OR PROCEEDING BROUGHT IN CONNECTION WITH THIS DEED OF TRUST OR ANY
OF THE OTHER LOAN DOCUMENTS, WHICH WAIVER IS INFORMED AND VOLUNTARY.

SECTION 5.21.   Time is of the essence of this Deed of Trust and the other Loan
Documents.

SECTION 5.22.   Nothing contained in this Deed of Trust, the Note, or any of the
other Loan Documents nor the acts of the parties hereto shall be construed to
create a relationship of principal and agent, partnership, or joint venture
between Grantor and Beneficiary.

SECTION 5.23.   Reference is made to ARTICLE VII(K) of the Loan Agreement for a
statement of a prohibition against sale, conveyance, transfer, mortgage or
encumbrance of the Mortgaged Property or any interest therein, which terms and
provisions are incorporated herein by reference.

SECTION 5.24.   Reference is made to SECTION 8.08 APPLICATION OF INSURANCE
PROCEEDS AND SECTION 8.09 APPLICATION OF CONDEMNATION PROCEEDS of the Loan
Agreement for a statement of Grantor's and Beneficiary's rights in and to
proceeds of insurance policies in respect of the Mortgaged Property or any part
thereof and of condemnation proceeds with respect to the Mortgaged Property, any
portion thereof and any interest therein, which terms and provisions are
incorporated herein by reference.

SECTION 5.25.   The Loan Documents embody the entire agreement between the
parties and supersede all prior agreements and understandings. No provision of
this Deed of Trust may be modified, waived or terminated except by an instrument
in writing executed by the party against whom a modification, waiver or
termination is sought to be enforced.

SECTION 5.26.   Beneficiary has not consented to any priority of a contractor's
lien for construction of any improvements to the Mortgaged Property, and any
such lien hereafter arising shall be subordinate and inferior to the lien of
this instrument.

SECTION 5.27.   The street address of the Real Property is: 5600 N. Central
Expressway, Dallas, Texas 75206.

SECTION 5.28.   Any obligation or liability of Grantor hereunder shall be
enforceable only against, and payable only out of, the property of such party,
and in no event shall any officer, director, shareholder, partner, beneficiary,
agent, advisor or employee of Grantor, be held to any personal liability
whatsoever or be liable for any of the obligations of the parties hereunder, or
the property of any such Persons be subject to the payment of any such
obligations, except in the case of certain partners as otherwise specifically
provided in the Loan Documents and where such partners have executed a written
agreement pertaining thereto.

                     REMAINDER OF PAGE INTENTIONALLY BLANK.
                           SIGNATURE PAGE(S) FOLLOWS.

                                                                              15
<PAGE>

        EXECUTED as of the day and date first above written.

                                      GRANTOR:

                                      BEHRINGER HARVARD MOCKINGBIRD COMMONS LP,
                                      a Texas limited partnership

                                      By:   Behringer Mockingbird Commons GP,
                                            LLC, a Texas limited liability
                                            company, its general partner

                                            By: _______________________________
                                                Gerald J. Reihsen, III
                                                Secretary

STATE OF TEXAS             ss.
                           ss.
COUNTY OF DALLAS           ss.

        Personally appeared before me, Gerald J. Reihsen, III, Secretary of
Behringer Mockingbird Commons GP, LLC, the sole general partner of BEHRINGER
HARVARD MOCKINGBIRD COMMONS LP, with whom I am personally acquainted, and who
acknowledged that such person executed the within instrument for the purposes
therein contained, and who further acknowledged that such person is authorized
by the maker or by its constituent, the constituent being authorized by the
maker, to execute this instrument on behalf of the maker.

        WITNESS my hand, at office, this ___ day of November, 2004.

                                 -----------------------------------------------
                                 Notary Public in and for the State of Texas
                                 Printed Name of Notary:
                                                        -----------------------
                                 My Commission Expires:
                                                       -------------------------

Exhibit A - Legal Description of the Land
Exhibit B - Permitted Exceptions

                                                                              16
<PAGE>

                                    EXHIBIT A

                          LEGAL DESCRIPTION OF THE LAND

BEING a tract of 5.388 acre tract of MOCKINGBIRD LANE ( variable width
Right-of-Way ) which a 1/2 inch iron rod set with a red plastic cap stamped
"W.A.I." bears South 48 deg 31 min 21 sec West a distance of 0.44 feet;

THENCE departing the southerly Right-of-Way line of said MOCKINGBIRD LANE and
along the northwesterly Right-of-Way line of said M.K.&T. RAILROAD South 44 deg
18 min 16 sec West a distance of 1206.52 feet to a Texas Department of
Transportation Brass Cap Monument found for corner, said point being found in
the easterly Right-of-Way line of U.S. HIGHWAY NO. 75-NORTH CENTRAL EXPRESSWAY
(variable width Right-of-Way);

THENCE departing the northwesterly Right-of-Way line of said M.K.& T. RAILROAD
and along the easterly Right-of-Way line of said U.S. HIGHWAY NO. 75-NORTH
CENTRAL EXPRESSWAY as follows;

North 08 deg 50 min 10 sec East a distance of 24.48 feet to a Texas Department
of Transportation Brass Cap Monument found for corner;

North 09 deg 19 min 02 sec East a distance of 48.43 feet to a point for corner
which a Texas Department of Transportation Brass Cap Monument found bears South
88 deg 37 min 51 sec West a distance of 3.73 feet;

North 13 deg 06 min 52 sec East a distance of 185.11 feet to a Texas Department
of Transportation Brass Cap Monument found for corner;

North 19 deg 55 min 15 sec East a distance of 127.93 feet to a Texas Department
of Transportation Brass Cap Monument found for corner;

North 29 deg 10 min 45 sec East a distance of 466.16 feet to a Texas Department
of Transportation Brass Cap Monument found for corner;

North 34 deg 28 min 43 sec East a distance of 34.57 feet to a Texas Department
of Transportation Brass Cap Monument found for corner;

North 35 deg 32 min 21 sec East a distance of 57.53 feet to a "X" cut set in
concrete for corner;

North 63 deg 45 min 59 sec East a distance of 15.66 feet to a "X" cut set in
concrete for corner, said point being set in the southerly Right-of-Way line of
said MOCKINGBIRD LANE;

THENCE departing the easterly Right-of-Way line of said U.S. HIGHWAY NO.
75-NORTH CENTRAL EXPRESSWAY and along the southerly Right-of-Way line of said
MOCKINGBIRD LANE North 89 deg 47 min 18 sec East a distance of 451.21 feet to
the POINT OF BEGINNING;

CONTAINING within these metes and bounds 5.339 acres of 232,554 square feet of
land more or less.

                                                                              17
<PAGE>

                                    EXHIBIT B

                              PERMITTED EXCEPTIONS

The liens and encumbrances set forth as exceptions on SCHEDULE B of the Title
Insurance Policy (as defined in the Loan Agreement).

                                                                              18Warrant to Purchase Common Stock

 Exhibit 10.42 
  
 THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).
THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION IS NOT
REQUIRED. 
  
 PROVIDE COMMERCE, INC. 
  
 WARRANT TO PURCHASE COMMON STOCK 
  
 November 29, 1999 
 Re-issued July 7, 2004 
  
 THIS CERTIFIES THAT, for value received, Vantage Venture Partners, L.P.
or its assigns (the “Holder”), is entitled to subscribe for and purchase at the Exercise Price (defined below) from Provide Commerce, Inc., a Delaware corporation, with its principal office at 5005 Wateridge Vista Drive, Second
Floor, San Diego, CA 92121 (the “Corporation” or the “Company”), 10,124 shares of Common Stock of the Company. 
  
 1. DEFINITIONS. As used herein, the following terms shall have the following respective meanings: 

 
 (a) “Exercise Period” shall mean the period commencing
with November 29, 1999 and ending November 29, 2009, unless sooner terminated as provided below. 
  
 (b) “Exercise Price” shall mean $3.85 per share, subject to adjustment pursuant to Section 5 below. 
  
 (c) “Exercise Shares” shall mean the shares of the
Corporation’s Common Stock issuable upon exercise of this Warrant. 
  
 2. EXERCISE OF WARRANT. The rights represented by this Warrant may be exercised in whole or in part at any time during the Exercise Period, by delivery of the
following to the Corporation at its address set forth above (or at such other address as it may designate by notice in writing to the Holder): 
  
 (a) An executed Notice of Exercise in the form attached hereto; 
  
 (b) Payment of the Exercise Price in cash, wire transfer, or by check, and 
  
 (c) This Warrant. 
  
 Upon the exercise of the rights represented by this Warrant, a certificate or
certificates for the Exercise Shares so purchased, registered in the name of the Holder or persons affiliated with the Holder, if the Holder so designates, shall be issued and delivered to the Holder within a reasonable time after the rights
represented by this Warrant shall have been so exercised. 

 The person in whose name any certificate or certificates for Exercise Shares are to be issued upon
exercise of this Warrant shall be deemed to have become the holder of record of such shares on the date which this Warrant was surrendered and payment of the Exercise Price was made, irrespective of the date of delivery of such certificate or
certificates, except that, if the date of such surrender and payment is a date when the stock transfer books of the Corporation are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next
succeeding date on which the stock transfer books are open. 
  
 3. COVENANTS OF THE CORPORATION. 
  
 3.1 Covenants as to Exercise Shares. The Corporation covenants and agrees that all Exercise Shares that may be issued upon the exercise of
the rights represented by this Warrant will, upon issuance, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes, liens and charges with respect to the issuance thereof. The Corporation, further covenants and
agrees that the Corporation will at all times during the Exercise Period, have authorized and reserved, free from preemptive rights, a sufficient number of shares of its Common Stock to provide for the exercise of rights represented by this Warrant.
If at any time during the Exercise period the number of authorized but unissued shares of Common Stock shall not be sufficient to permit exercise of this Warrant, the Corporation will take such corporate action as may, in the opinion of its counsel,
be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes. 
  
 3.2 No Impairment. Except and to the extent as waived or consented to by the Holder, the Corporation will not, by amendment of its
Certificate of Incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms
to be observed or performed hereunder by the Corporation, but will at times in good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may be necessary or appropriate in order to protect
the exercise rights of the Holder against impairment. 
  
 3.3
Notices of Record Date. In the event of any taking by the Corporation of a record of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash
dividend which is the same as cash dividends paid in previous quarters) or other distribution, the Corporation shall mail to the Holder, at least ten (10) days prior to the date specified herein, a notice specifying the date on which any such record
is to be taken for the purpose of such dividend or distribution. 
  

 2 

 4. REPRESENTATION OF HOLDER. 
  
 4.1 Acquisition of Warrant for Own Account. The Holder
represents and warrants that it is acquiring the Warrant solely for its account for investment and not with a view to or for sale or distribution of said Warrant or any part thereof. The Holder also represents that the entire legal and beneficial
interests of the Warrant and Exercise Shares the Holder is acquiring is being acquired for, and will be held for, its account only. 
  
 4.2 Securities Are Not Registered. 
  
 (a) The Holder understands that the Warrant and the Exercise Shares have not been registered under the Securities Act of 1933, as amended (the
“Act”) on the basis that no distribution or public offering of the stock of the Corporation is to be effected. The Holder realizes that the basis for the exemption may not be present if, notwithstanding its representations, the Holder has
a present intention of acquiring the securities for a fixed or determinable period in the future, selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the securities. The Holder has no
such present intention. 
  
 (b) The Holder recognizes that
the Warrant and the Exercise Shares must be held indefinitely unless they are subsequently registered under the Act or an exemption from such registration is available. The Holder recognizes that the Corporation has no obligation to register the
Warrant or the Exercise Shares of the Corporation, or to comply with any exemption from such registration. 
  
 (c) The Holder is aware that neither the Warrant nor the Exercise Shares may be sold pursuant to Rule 144 adopted under the Act unless certain
conditions are met, including, among other things, the existence of a public market for the shares, the availability of certain current public information about the Company, the resale following the required holding period under Rule 144 and the
number of shares being sold during any three month period not exceeding specified limitations. 
  
 4.3 Disposition of Warrant and Exercise Shares. 
  
 (a) The Holder further agrees not to make any disposition of all or any part of the Warrant or Exercise Shares in any event unless and until: 
  
 (i) The Corporation shall have received a letter secured by the Holder from the Securities and Exchange Commission
stating that no action will be recommended to the Commission with respect to the proposed disposition; or 
  
 (ii) There is then in effect a registration statement under the Act covering such proposed disposition and such disposition is made in accordance
with said registration statement; or 
  

 3 

 (iii) The Holder shall have notified the Corporation of the proposed disposition and shall have
furnished the Corporation with a detailed statement of the circumstances surrounding the proposed disposition, and if reasonably requested by the Company, the Holder shall have furnished the Corporation with an opinion of counsel, reasonably
satisfactory to the Company, for the Holder to the effect that such disposition will not require registration of such Warrant or Exercise Shares under the Act or any applicable state securities laws. 
  
 (iv) Notwithstanding anything else within this agreement to the
contrary, the Holder will not transfer the Warrant unless the Transferee is intending upon exercising the Warrant immediately thereafter; and, furthermore, the Transferee understands that the company has no intention of ever registering the Warrant.

  
 (b) The Holder understands and agrees that all
certificates evidencing the shares to be issued to the Holder may bear the following legend: 
  
 THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT AS TO THE SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. 
  
 (c) The Holder hereby agrees not to sell or otherwise transfer or dispose of all or any part of this Warrant or the Exercise Shares during a period
specified by the representative of the underwriters of Common Stock (not to exceed one hundred eighty (180) days) following the effective date of the registration statement of the Corporation filed under the Act. Holder further agrees that the
Corporation may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such period. 
  
 5. ADJUSTMENT OF EXERCISE PRICE. In the event of changes in the
outstanding Common Stock of Corporation by reason of stock dividends, split-ups, recapitalizations, reclassifications, combinations or exchanges of shares, separations, reorganizations, liquidations, or the like, the number of class of shares
available under the Warrant or in the aggregate and the Exercise Price shall be correspondingly adjusted to give the Holder of the Warrant, on exercise for the same aggregate Exercise Price, the total number, class and kind of shares as the Holder
would have owned had the Warrant been exercised prior to the event and had the Holder continued to hold such shares until after the event requiring adjustment. The form of this Warrant need not be changed because of any adjustment in the number of
Exercise Shares subject to this Warrant. The Holder acknowledges that the Exercise Shares and the Exercise Price represent all such adjustments thereof through and including the re-issue date. 
  

 4 

 6. FRACTIONAL SHARES. No fractional shares
shall be issued upon the exercise of this Warrant as a consequence of any adjustment pursuant hereto. All Exercise Shares (including fractions) issuable upon exercise of this Warrant may be aggregated for purposes of determining whether the exercise
would result in the issuance of any fractional shares. If, after aggregation, the exercise would result in the issuance of a fractional share, the Corporation shall, in lieu of issuance of any fractional share, pay the Holder otherwise entitled to
such fraction a sum in cash equal to the product resulting from multiplying the then current fair market value of an Exercise Share by such fraction. 
  
 7. NO STOCKHOLDER RIGHTS. This Warrant in and of itself shall not entitle the
Holder to any voting rights or other rights as a stockholder of the Corporation. 
  
 8. TRANSFER OF WARRANT. Subject to applicable laws, the restriction on transfer set forth on the first page of this Warrant and elsewhere, this
Warrant and all rights hereunder are transferable, by the Holder in person or by duly authorized attorney, upon delivery of this Warrant and the form of assignment attached hereto to any transferee designated by Holder. The transferee shall sign an
investment letter in form and substance satisfactory to the Corporation. 
  
 9. LOST, STOLEN, MUTILATED OR DESTROYED WARRANT. If this Warrant is lost, stolen, mutilated or
destroyed, the Corporation may, on such terms as to indemnity or otherwise as it may reasonably impose (which shall, in the case of the mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as the
Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall constitute an original contractual obligation of the Corporation, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable
by anyone. 
  
 10. NOTICES,
ETC. All notices and other communications required or permitted hereunder shall be in writing and shall be sent by telex, telegram, express mail or other form of rapid communications, if possible, and if not then such notice or
communication shall be mailed by first-class mail, postage prepaid, addressed in each case to the party entitled thereto at the following addresses: (a) if to the Corporation, to Provide Commerce, Inc., 5005 Wateridge Vista Drive, Second Floor, San
Diego, CA 92121, Attention: General Counsel, Fax Number 858-638-4708, and (b) if to the Holder, to Vantage Venture Partners, L.P., 610 5th Avenue, 7th Floor, New York, NY 10020; Attention: Christopher Brody, Fax #212/218-8133 or
at such other address as one party may furnish to the other in writing. Notice shall be deemed effective on the date dispatched if by personal delivery, telecopy, telex or telegram, three days after mailing if by express mail, or five days after
mailing if by first-class mail. 
  
 11.
ACCEPTANCE. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein. 
  
 12. GOVERNING LAW.
This Warrant and all rights, obligations and liabilities hereunder shall be governed by the laws of the State of California. 
  

 5 

 IN WITNESS WHEREOF, the Corporation
has caused this Warrant to be executed by its duly authorized officer as of July 7, 2004. 
  

			
	PROVIDE COMMERCE, INC.
		
	 By:
	 	 /s/    WILLIAM
STRAUSS            

	 Name:
	 	 William Strauss

	 Title:
	 	 CEO

  
 Accepted and Agreed: 

 

			
	VANTAGE VENTURE PARTNERS, L.P.
		
	 By:
	 	 Vantage Partners, LLC, its General Partner

		
	 By:
	 	 /s/    CHRISTOPHER W.
BRODY        

	 Name:
	 	 Christopher W. Brody

	 Title:
	 	 Chairman

  

 6 

 NOTICE OF EXERCISE 
  
 TO: PROVIDE COMMERCE, INC. 
  
 (1) The undersigned hereby elects to purchase              shares of the Common Stock
of PROVIDE COMMERCE, INC. (the “Company”) pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any. 
  
 (2) Please issue a certificate or certificates representing said shares of
Common Stock in the name of the undersigned or in such other name as specified below: 
  
 _______________________________ 
 (Name) 
  
 _______________________________ 
 _______________________________ 
 (Address) 
  
 (3) The undersigned represents that (i) the undersigned is aware of the Company’s business affairs and financial
condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision regarding its investment in the Company (ii) the undersigned is experienced in making investments of this type and has such knowledge
and background in financial and business matters that the undersigned is capable of evaluating the merits and risks of this investment and protecting the undersigned’s own interests; (iii) the undersigned is aware that the aforesaid shares of
Common Stock may not be sold pursuant to Rule 144 adopted under the Securities Act unless certain conditions are met and until the undersigned has held the shares for the number of years prescribed by Rule 144, that among the conditions for use of
the Rule is the availability of current information to the public about the Company and (iv) the undersigned agrees not to make any disposition of all or any part of the aforesaid shares of Common Stock unless there is in effect a registration
statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with said registration statement, or the undersigned has provided the Company with an opinion of counsel satisfactory to the Company,
stating that such registration is not required. 
  

			
	  

	 	  

	 (Date)
	 	 (Signature)

	 	 	  

	 	 	 (Print Name)

 ASSIGNMENT FORM 
  
 FOR VALUE RECEIVED, the foregoing Warrant and all
rights evidenced thereby are hereby assigned to 
  

			
	 Name:

	(Please Print)
	 Address:

	(Please Print)
	 Dated:

	  	 
	 Holder’s
 Signature:

	  	 
	 Holder’s
 Address:

	  	 

  
 NOTE: The signature to this
Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should file
proper evidence of authority to assign the foregoing Warrant.

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