Document:

EX-10.16 LOAN ASSUMPTION AGREEMENT

 

Exhibit
10.16

Page 1

Return to:

Republic Title of Texas, Inc.

2626 Howell Street. 10th Floor

Dallas TX 75204

Cross Reference:

Clerks File No. 2004-0181974

Collin County, Texas Public Records

Cnpmark Loan #99-1072809

Loan Assumption Agreement

     THIS Loan Assumption Agreement (this “Agreement”) is made and entered into as of
December 7 , 2006 (the “Effective Date”) by and between PTC Dunhill Holdings, Ltd., a
Texas limited partnership (“Prior Owner”);
William
L. Hutchinson, an individual resident
of Texas (“Prior Guarantor”); AmREIT SSPF Preston Towne Crossing, LP, a Delaware
limited partnership (“Borrower”); AmREIT Monthly Income & Growth Fund III,
Ltd., a Texas limited partnership (“New Guarantor”); and LaSalle Bank National
Association as Trustee for the registered holders of J.P. Morgan Chase Commercial Mortgage
Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 2005-CIBC12
(“Lender”).

RECITALS

     A. Prior Owner was the maker of that certain Promissory Note, dated December 15,
2004, as amended by that certain First Amendment to Promissory Note, dated June 3, 2005
(collectively, the “Note”), in the original principal amount of Twenty Two Million Four
Hundred
Thousand and 00/100 Dollars ($22,400,000.00) and payable to the order
of CIBC Inc. (“Former
Lender”). The loan evidenced by the Note is herein referred to as the “Loan.”

     B. The Note is secured by that certain Deed of Trust Assignment of Leases and
Rents and Security Agreement, dated December 15, 2004 (the “Original Mortgage”), as amended
by that certain First Amendment to Deed of Trust, Assignment of Leases and Rents and Security
Agreement, dated June 3, 2005 (the “Amended Mortgage) (the Original Mortgage and the
Amended Mortgage are collectively referred to herein as the “Mortgage”), executed by Prior
Owner to Robert Galperin (the “Trustee”) for the benefit of Former Lender and, as to the
Original Mortgage, recorded under Clerk’s File No. 2004-0181974 in the Official Records of
Collin County, Texas (the “Public Records”) and as to the Amended Mortgage, recorded under
Clerk’s File No. 2005-0074062 in the Public Records. The Mortgage encumbers certain real
property described on Exhibit A attached hereto and by this reference incorporated
herein
(together with all other property, real and personal, encumbered by the Mortgage, the
“Property”).

     C. The Loan is further evidenced by (i) that certain Cross-Collateralization, Cross-Contribution and Cross-Default Agreement with Modification of Deed of Trust, dated December
15, 2004, as amended by that certain First Amendment to Cross-Collateralization, Cross-
Contribution and Cross-Default Agreement with Modification of Deed of Trust, dated June 3,
2005 (collectively, the “Cross-Default Agreement”) executed by Prior Owner and Berkeley
Center, Ltd. in favor of Former Lender; (ii) that certain Assignment of Leases and Rents,
dated
December 15, 2004, executed by Prior Owner in favor of Former
Lender; and (iii) that certain
Earn-Out Letter Agreement, dated December 15, 2004;

 

 

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     D. In connection with the Loan, Prior Owner also delivered, or caused to be
delivered, the following documents to Former Lender:

     (1) those certain UCC Financing Statements (collectively, the “Prior UCC”)
naming Prior Owner as Debtor therein, and Former Lender as Secured Party therein, and
filed in the Public Records and in the records of the Secretary of State of Texas;

     (2) that certain Hazardous Substance Indemnity Agreement (the “Prior
Environmental Agreement”) dated December 15, 2004, executed by Prior Owner and
Prior Guarantor for the benefit of Former Lender;

     (3) that certain Indemnity and Guaranty Agreement, dated December 15, 2004,
and Reaffirmation of Guaranty, dated June 3, 2005 (collectively, the “Prior Carve Out
Guaranty”), executed by Prior Guarantor for the benefit of Former Lender;

     (4) that certain Cash Management Agreement (the “Prior Cash Management
Agreement”) dated December 15, 2004, between Prior Owner, Former Lender and
Dunhill Property Management Services, Inc. (the “Former Manager”);

     (5) that certain Manager’s Subordination Agreement (the “Prior Manager’s
Agreement”), between Former Manager and Former Lender;

     (6) that certain Escrow Agreement (the “Escrow Agreement”), dated
December 15, 2004, executed by Prior Owner, LandAmerica Commonwealth Title of
Dallas, Inc., and Former Lender;

     (7) that certain Closing Certificate (the “Closing Certificate”) dated December
15, 2004, executed by Prior Owner in favor of Former Lender;

     (8) that certain Certificate (Lease Form) (the “Lease Form Certificate”) dated
December 15, 2004, executed by Prior Owner in favor of Former Lender;

     (9) the Leasing Agreement Subordination (the “Subordination”) dated
December 15, 2004 executed by Prior Owner and Dunhill Partners, Inc.;

     (10) the Notice of Final Agreement (the “Notice”);

     (11) the Clearing Bank Instruction Letter (the “Instruction Letter”),

     (12) the Earn-Out Letter Agreement (the “Earn-Out Letter”) dated December
15, 2004; and

     (13) the Post-Closing Agreement (the “Post-Closing Agreement”).

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(The Prior UCC, Prior Environmental Agreement, Prior Carve Out Guaranty, Prior Cash
Management Agreement, Prior Manager’s Agreement, Escrow Agreement, Closing Certificate, Lease
Form Certificate, Subordination, Notice, Instruction Letter, Earn-Out Letter and Post-Closing
Agreement are hereinafter referred to collectively as the “Prior Owner’s Loan Documents.”)

     E. Upon the Effective Date, Borrower is executing and delivering, or is causing to be
delivered, to Lender the following documents:

     (1) those certain UCC Financing Statements (collectively, the “UCC”) naming Borrower
as Debtor therein, and naming Lender, as Secured Party therein, to be filed in the Public
Records and the records of the Secretary of State of Delaware;

     (2) that certain Hazardous Substance Indemnity Agreement (the “Environmental
Agreement”) dated as of the Effective Date, delivered by Borrower and New Guarantor for
the benefit of Lender;

     (3) that certain Carve Out Guaranty (the “Guaranty”) dated as of the Effective Date,
executed and delivered by New Guarantor, for the benefit of Lender;

     (4) that certain Cash Management Agreement (the “Cash Management
Agreement”) dated as of the Effective Date, between Borrower, Lender and AmREIT
Realty Investment Corporation;

     (5) that certain Manager’s Subordination Agreement (the “Manager’s Agreement”) dated
as of the Effective Date, between AmREIT Realty Investment Corporation and Lender; and

     (6) this Agreement.

(The Note, the Mortgage, the Cross-Default Agreement, the UCC, the Environmental Agreement, the
Guaranty, the Cash Management Agreement, the Manager’s Agreement and this Agreement, together
with all other documents evidencing, serving or otherwise pertaining to the Loan (other than the
Prior Owner’s Loan Documents) are hereinafter referred to collectively as the “Loan Documents”,
and singularly as a “Loan Document”.)

     F. Lender is the holder of the Note and is the successor in interest to Former Lender
in and to the Loan Documents and the Prior Owner’s Loan Documents.

     G. The Property is being conveyed by Prior Owner to Borrower as of the Effective
Date, and as part of the consideration for such conveyance, Borrower and Guarantor agree to
assume, subject to this Agreement, all the obligations under the Loan Documents and comply
with all covenants and obligations contained in the Loan Documents.

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     H. Prior Owner and Borrower have requested that Lender consent to the assumption of
the Loan and waive the due on sale restrictions of the Mortgage to permit the conveyance of the
Property to Borrower.

     I. Lender is willing to consent to the transfer of the Property by Prior Owner to Borrower
and the assumption of the Loan by Borrower, subject to the terms and conditions set forth
herein.

AGREEMENT

     NOW, THEREFORE, in consideration of the sum of Ten and No/100 Dollars ($10.00) cash in hand
paid by the parties hereto each to the other and other good and valuable consideration the
receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

     1. Loan Information.

     (a) Lender certifies that the principal balance outstanding under the Note as of the
Effective Date is $22,022,876.50. Interest on the Loan has been paid through November 30, 2006.
All escrow deposits held by Lender in connection with the Loan Documents shall, from and after
the Effective Date, be for the account of Borrower. To the actual knowledge of Lender as of the
Effective Date, no event of default, or event which with the passage of time or the giving of
notice, or both, would constitute an event of default, under the Loan Documents has occurred and
is continuing. Lender reserves the right to declare any existing default which subsequently
comes to the attention of Lender.

     (b) Lender is holding the following escrow and/or reserve balances as of the Effective
Date:

	 	 	 	 	 
	Real Estate Taxes

	 	$	555,791.52	 
	Insurance

	 	$	39,440.90	 
	Repair Escrow

	 	$	0.00	 
	Replacement Reserve

	 	$	179,760.18	 
	TI Leasing Reserve

	 	$	221,533.36	 
	TI/LC General Reserve

	 	$	0.00	 
	Other Escrow

	 	$	252,451.94	 
	Holdback Reserve

	 	$	103.68	 
	Holdback Reserve

	 	$	0.00	 

     (c) The parties acknowledge and agree that Lender shall continue to hold the escrow and
reserve balances for the benefit of Borrower in accordance with the terms of the Loan Documents.
Prior Owner and Prior Guarantor covenant and agree that the Lender has no further duty or
obligation of any nature to Prior Owner or Prior Guarantor relating to such escrow and/or reserve
balances. The funds listed above constitute all of the reserve and escrow funds currently held by
Lender with respect to the Loan. All escrow deposits held by Lender in connection with the Loan
Documents shall, from and after the Effective Date, be for the account of Borrower.

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     2. Organization and Authority of Borrower.

     (a) Borrower represents and warrants to Lender as follows:

          (1) Borrower is a limited partnership, duly formed and validly existing under the laws of
the State of Delaware, and duly qualified to transact business under the laws of the state in
which the Property is located. The organizational ID number of the Borrower is 20-5839425. On or
prior to the date hereof, Borrower has delivered to Lender a fully executed IRS form W-9.

          (2) No proceeding is pending for the dissolution or annulment of Borrower, and all license
and franchise taxes due and payable by Borrower have been paid in full.

          (3) Borrower has the full power and authority to enter into and perform this Agreement and to
assume the Loan. The execution, delivery and performance of this Agreement and the other documents
contemplated herein by Borrower (A) have been duly and validly authorized by all necessary action
on the part of Borrower, (B) does not conflict with or result in a violation of Borrower’s
organizational documents or any judgment, order or decree of any court or arbiter in any
proceeding to which Borrower is a party, (C) does not conflict with, or constitute a material
breach of, or constitute a material default under, any contract, agreement or other instrument by
which Borrower is bound or to which Borrower is a party, and (D) constitutes the valid and binding
obligations of Borrower, enforceable against Borrower in accordance with their terms.

     (b) New Guarantor represents and warrants to Lender as follows:

          (1) New Guarantor is a limited partnership, duly formed and validly existing under the laws
of the State of Texas, and to the extent required by applicable law, duly qualified to transact
business under the laws of the state in which the Property is located.

          (2) No proceeding is pending for the dissolution or annulment of New Guarantor, and all
license and franchise taxes due and payable by New Guarantor have been paid in full.

          (3) New Guarantor has the full power and authority to enter into and perform this Agreement
and perform its obligations under the Guaranty. The execution, delivery and performance of this
Agreement and the other documents contemplated herein by New Guarantor (A) have been duly and validly authorized by all necessary action on the part of New Guarantor,
(B) does not conflict with or result in a violation of New Guarantor’s organizational documents or
any judgment, order or decree of any court or arbiter in any proceeding to which New Guarantor is
a party, (C) does not conflict with, or constitute a material breach of, or constitute a material
default under, any contract, agreement or other instrument by which New Guarantor is bound or to
which New Guarantor is a party, and (D) constitutes the valid and binding obligations of New
Guarantor, enforceable against New Guarantor in accordance with their terms.

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     3. Representations and Warranties.

          (a) As of the effective date, Prior Owner hereby represents and warrants to
Lender as follows:

               (1) There is no Event of Default (as defined in the Mortgage) or event which with the passage
of time or the giving of notice, or both, would constitute an Event of Default under the Loan
Documents executed or assumed by Prior Owner or the Prior Owner’s Loan Documents;

               (2) There are no subordinate liens of any kind covering or relating to the Property, nor are
there any mechanics’ liens (except as shown on the title commitment dated effective July 18, 2006,
issued October 3, 2006, by Republic Title Company, G.F. No. 06R29866 SJ6, and being bonded around
in accordance with the Loan Documents and applicable law) or liens for delinquent taxes or
assessments encumbering the Property, nor has notice of a lien or notice of intent to file a lien
been received by Prior Owner;

               (3) The Loan Documents executed by Prior Owner and Prior Owner’s Loan Documents are in full
force and effect;

               (4) Prior Owner has thoroughly read and reviewed the terms and provisions of this Agreement,
the Loan Documents executed by Prior Owner and the Prior Owner’s Loan Documents, and is familiar
with same, and Prior Owner has entered into this Agreement voluntarily, without duress or undue
influence of any kind, and with the advice and representation of legal counsel, if any, selected
by Prior Owner; and

          (b) As of the Effective Date, Prior Guarantor hereby represents and warrants
to Lender as follows:

               (1) There is no Event of Default or event which with the passage of time or the giving of
notice, or both, would constitute an Event of Default under the Loan Documents executed by Prior
Guarantor or Prior Owner’s Loan Documents executed by Prior Guarantor;

               (2) The Loan Documents and Prior Owner’s Loan Documents executed by Prior Guarantor are in
full force and effect;

               (3) Prior Guarantor has thoroughly read and reviewed the terms and provisions of this
Agreement, the Loan Documents executed by Prior Guarantor and Prior Owner’s Loan Documents
executed by Prior Guarantor, and is familiar with same, and Prior Guarantor has entered into this
Agreement voluntarily, without duress or undue influence of any kind, and with the advice and
representation of legal counsel, if any, selected by Prior Guarantor; and

          (c) Borrower hereby represents and warrants to Lender as follows:

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               (1) To Borrower’s knowledge as of the Effective Date, there is no Event of Default or
event which with the passage of time or the giving of notice, or both, would constitute an Event
of Default under the Loan Documents;

               (2) Borrower has thoroughly read and reviewed the terms and provisions of this Agreement and
the other Loan Documents and is familiar with same, and Borrower has entered into this Agreement
voluntarily, without duress or undue influence of any kind, and with the advice and representation
of legal counsel, if any, selected by Borrower, and

               (3) With the exception of the information relating to the proposed ownership structure of
Borrower, which has been subsequently updated by information delivered to Lender in writing, all
written information and materials, including financial information, regarding Borrower and its
affiliates provided to Lender in connection with the assumption of the Loan were true and correct
in all material respects as of the date provided to Lender and remain true and correct in all
material respects as of the date of this Agreement.

          (d) New Guarantor represents and warrants to Lender as follows:

               (1) New Guarantor has received and reviewed the Loan Documents;

               (2) All information and materials provided to Lender, including financial information,
regarding New Guarantor provided to Lender in connection with the assumption of the Loan was true
and correct in all material respects as of the date provided to Lender and remains materially true
and correct as of the date of this Agreement; and

               (3) There is no bankruptcy, receivership or insolvency proceeding pending or threatened
against New Guarantor.

Prior Owner, Prior Guarantor, Borrower and New Guarantor acknowledge that Lender is relying upon
the foregoing representations and warranties as a material inducement to Lender’s execution of this
Agreement.

     4. Consent of Lender. Lender hereby consents to the sale of the Property by Prior
Owner to Borrower and agrees that such sale shall not constitute a default under the Prior Owner’s
Loan Documents or the Loan Documents. Notwithstanding the foregoing, this consent to the transfer
of the Property shall not be deemed to be a waiver of the right of the Lender under the Mortgage or
the Loan Documents to prohibit any future transfers of the Property or any interest therein, or of
the right of the Lender to deny consent to any such transaction in the future in accordance with
the provisions of the Mortgage. From and after the Effective Date, references in the Loan Documents
to “Maker,” “Mortgagor,” “Debtor,” “Borrower,” or other similar references that prior to the
Effective Date referred to Prior Owner shall refer to Borrower, and references in the Loan
Documents to “Guarantor” or other similar references that prior to the Effective Date referred to
Prior Guarantor shall refer to New Guarantor(s).

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     5. Assumption and Ratification. Subject to Section 26 below, Borrower hereby
assumes and agrees to comply with all covenants and obligations of Prior Owner contained in
the
Loan Documents and henceforth shall be bound by all the terms thereof. Without limiting the
foregoing, Borrower hereby assumes and agrees to pay in full as and when due all payments,
the
obligations and other indebtedness evidenced by the Note. Borrower hereby authorizes the
Lender to file any and all UCC financing statements as Lender may deem necessary including,
without limitation, financing statements containing the description “all assets of Borrower”
or
“all personal property of Borrower” or similar language. As assumed hereby, the Loan
Documents executed by Prior Owner shall remain in full force and effect. Subject to Section
26
below, the Borrower hereby adopts, ratifies and confirms as of the Effective Date all of the
representations, warranties and covenants of Prior Owner contained in the Loan Documents as
modified by this Agreement.

     6. Release of Claims. Prior Owner, Prior Guarantor, Borrower and New Guarantor
(individually, a “Borrower Party” and collectively, the “Borrower Parties”), hereby jointly and
severally, unconditionally and irrevocably, finally and completely RELEASE AND FOREVER
DISCHARGE Former Lender and Lender, and their respective successors, assigns, affiliates,
subsidiaries, parents, officers, shareholders, directors, employees, attorneys and agents, past,
present and future (collectively and individually, “Lender Parties”), of and from any and all
claims, controversies, disputes, liabilities, obligations, demands, damages, debts, liens, actions
and causes of action of any and every nature whatsoever, known or unknown, whether at law, by
statute or in equity, in contract or in tort, under state or federal jurisdiction, and whether or
not
the economic effects of such alleged matters arise or are discovered in the future, which
Borrower Parties have as of the Effective Date or may claim to have against Lender Parties
arising out of or with respect to any and all transactions relating to the Loan, the Prior Owner’s
Loan Documents or the Loan Documents occurring on or before the Effective Date, including
any loss, cost or damage of any kind or character arising out of or in any way connected with or
in any way resulting from the acts, actions or omissions of Lender Parties occurring on or before
the Effective Date. The foregoing release is intended to be, and is, a full, complete and general
release in favor of Lender Parties with respect to all claims, demands, actions, causes of action
and other matters described therein, including specifically, without limitation, any claims,
demands or causes of action based upon allegations of breach of fiduciary duty, breach of any
alleged duty of fair dealing in good faith, economic coercion, usury, or any other theory, cause of
action, occurrence, matter or thing which might result in liability upon Lender Parties arising or
occurring on or before the Effective Date. Borrower Parties understand
and agree that the
foregoing general release is in consideration for the agreements of Lender contained herein and
that they will receive no further consideration for such release. Each Borrower Party for itself
represents and warrants to Lender that such Borrower Party has not previously assigned or
transferred to any person or entity any matter released hereunder, and such Borrower Party
agrees to indemnify, protect and hold the Lender Parties harmless from and against any and all
claims based on or arising out of any breach of the foregoing representation and warranty by
such Borrower Party.

     7. Default. Any default by Borrower in the performance of its obligations
herein contained, or any material inaccuracy in the representations and warranties made by
Borrower

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herein, shall constitute a default under the Loan Documents and shall entitle Lender
to exercise all of its rights and remedies set forth in the Loan Documents.

     8. Lift of Bankruptcy Stay. Not
withstanding any provision in the Loan Documents to the contrary, in the event Borrower
shall make application for or seek relief or protection under any of the sections or chapters of
the United States Bankruptcy Code (the “Code”), or in the event that any involuntary petition is
filed against Borrower under any section of the Code, Borrower will not oppose Lender’s
application for immediate relief from any automatic stay imposed by Sec. 362 of the Code, or
otherwise, or on or against the exercise of the rights and remedies otherwise available to
Lender pursuant to the Loan Documents and as otherwise provided by law.

     9. Fees. Borrower, Prior Owner and Lender have agreed that, simultaneously with the
execution hereof, all fees, costs, and charges arising in connection with the execution of this
Agreement, including without limitation, all reasonable attorneys’ fees, title company fees,
title insurance premiums, recording costs, and other closing costs incurred by Lender in
connection with this Agreement, will be paid by Prior Owner as of the Effective Date (excluding
any application fees which will be paid by Borrower), and that Lender shall have no obligation
whatsoever for payment thereof.

     10. No Offsets or Defenses. Borrower hereby acknowledges, confirms and warrants to
Lender that as of the Effective Date, Borrower neither has nor claims any offset, defense,
claim, right of set-off or counterclaim against Lender under, arising out of or in connection
with this Agreement, the Note, the Mortgage or any other Loan Document. Borrower covenants and
agrees with Lender that if any offset, defense, claim, right of set-off or counterclaim exists
as of die Effective Date, Borrower does hereby irrevocably and expressly waive the right to
assert such matter. Borrower understands and agrees that the foregoing release is in
consideration for the agreements of Lender contained herein, and Borrower will receive no
further consideration for such release.

     11. Confirmation. Except as specifically set forth herein, all other terms and
conditions of the Loan Documents shall remain unmodified and in full force and effect, the same
being confirmed and republished hereby; and except as otherwise specifically set forth herein,
the undersigned Borrower hereby assumes, affirms, reaffirms and republishes all of the
warranties, covenants and agreements as set forth in the Loan Documents as modified by this
Agreement.

     12. Usury Savings Clause. Notwithstanding anything to the contrary contained
elsewhere in this Agreement, Borrower and Lender hereby agree that all agreements between
them with respect to the Loan, including but not limited to the Loan Documents, whether now
existing or hereafter arising are expressly limited so that in no contingency or event
whatsoever
shall the amount paid, or agreed to be paid, to Lender for the use, forbearance, or
detention of the
money loaned to Borrower, or for the performance or payment of any covenant or obligation
contained herein or therein, exceed the maximum rate of interest under applicable law (the
“Maximum Rate”). If from any circumstance whatsoever, fulfillment of any provisions of this
Agreement or the Loan Documents at the time performance of such provisions shall be due

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would involve transcending the limit of validity prescribed by law, then, automatically, the
obligation to be fulfilled shall be reduced to the limit of such validity, and if from any
circumstance Lender should ever receive anything of value deemed interest by applicable law which
would exceed the Maximum Rate, such excessive interest shall be applied to the reduction of the
principal amount owing with respect to the Loan or on account of the other indebtedness secured by
the Loan Documents or Borrower’s Loan Documents and not to the payment of interest, or if such
excessive interest exceeds the unpaid principal balance of the Loan and such other indebtedness,
such excess shall be refunded to Borrower. All sums paid or agreed to be paid to Lender for the
use, forbearance or detention of the Loan and other indebtedness of Borrower to Lender shall, to
the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the
full term of such indebtedness until payment in full so that the actual rate of interest on account
of all such indebtedness is uniform throughout the actual term of the Loan and does not exceed the
Maximum Rate throughout the entire term of the Loan, as appropriate. The terms and provisions of
this Section 12 shall control every other provision of this Agreement and all other agreements
between Borrower and Lender.

     13. Modifications,
Waiver. No waiver, modification, amendment, discharge, or change
of any of the Loan Documents shall be valid unless the same is in writing and signed by the party
against which the enforcement of such modification, waiver, amendment, discharge, or change is
sought.

     14. No Novation. THE PARTIES DO NOT INTEND THIS AGREEMENT NOR THE TRANSACTIONS
CONTEMPLATED HEREBY TO BE, AND THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL NOT
BE CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING BY THE BORROWER UNDER OR IN
CONNECTION WITH THE LOAN DOCUMENTS. FURTHER, THE PARTIES DO NOT INTEND THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY TO AFFECT THE PRIORITY OF ANY OF THE LENDER’S LIENS IN ANY OF THE
COLLATERAL SECURING THE EXISTING NOTE IN ANY WAY, INCLUDING, BUT NOT LIMITED TO, THE LIENS,
SECURITY INTERESTS AND ENCUMBRANCES CREATED BY THE MORTGAGE.

     15. Recitals
True. Prior Owner, Prior Guarantor and Lender each hereby approve the
recitations set forth in the preamble of this Agreement and agree that said recitations are true
and correct in all respects as of the Effective Date. Borrower and New Guarantor each hereby
approve the recitations set forth in Paragraphs E, G, H and I and agree that such recitations are
true and correct in all respects as of the Effective Date.

     16. Notices. Lender and Borrower agree that all notice provisions contained in the
Loan Documents are hereby modified to amend the notice address for Borrower and Lender, and that
from and after the Effective Date the notice address for Lender and Borrower are as follows:

If to Lender:

c/o Capmark Finance Inc.

3 Ravinia Drive, N.E.

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Suite 200

Atlanta, Georgia 30346

Attention: Servicing Department for Loan No. 99-1072809

If to Borrower:

AmREIT SSPF Preston Towne Crossing, LP

8 Greenway Plaza, Suite 1000 
Houston, Texas 77046 
Attention:
Tenel Tayer

     Each party to this Agreement may designate a further change of address by notice given as
required in the Mortgage.

     17. Severability. If all or any portion of any provision of this Agreement shall be
held to be invalid, illegal or unenforceable in any respect, then such invalidity, illegality or
unenforceability shall not affect any other provision hereof or thereof, and such provision shall
be limited and construed in such jurisdiction as if such invalid, illegal or unenforceable
provision or portion thereof were not contained herein or therein.

     18. Counterpart. This Agreement may be executed in any number of counterparts with
the same effect as if all parties hereto had signed the same document. All such counterparts shall
be construed together and shall constitute one instrument, but in making proof hereof it shall
only be necessary to produce one such counterpart.

     19. Governing Law. The terms and conditions of this Agreement shall be governed by
the applicable laws of the state in which the Property is located.

     20. Interpretation. Within this Agreement, words of any gender shall be held and
construed to include any other gender, and words in the singular number shall be held and
construed to include the plural, unless the context otherwise requires. The section headings used
herein are intended for reference purposes only and shall not be considered in the interpretation
of the terms and conditions hereof. The parties acknowledge that the parties and their counsel
have reviewed and revised this Agreement and that the normal rule of construction to the effect
that any ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement or any exhibits or amendments hereto.

     21. Amendment. The terms and conditions hereof may not be modified, altered or
otherwise amended except by an instrument in writing executed by Borrower and Lender.

     22. Entire
Agreement. This Agreement contains the entire agreement between the
parties hereto with respect to .the modification of the Loan and fully supersedes all prior
agreements and understanding between the parties pertaining to such subject matter.

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     23. Successors
and Assigns. The terms and conditions of this Agreement shall be
binding upon and shall inure to the benefit of the parties hereto, their successors and permitted
assigns.

     24. TRIAL BY JURY WAIVER. BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, AND
LENDER BY ITS ACCEPTANCE OF THIS AGREEMENT IRREVOCABLY AND UNCONDITIONALLY WAIVES, ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR COUNTERCLAIM ARISING IN CONNECTION WITH, OUT OF OR
OTHERWISE RELATING TO THE LOAN, THIS AGREEMENT OR THE LOAN DOCUMENTS.

     25. Release. Lender hereby forever releases and discharges Prior Owner and Prior
Guarantor from any and all liability and obligation for repaying the Loan and any and all
liability, obligation or duty under the Loan Documents and the Prior Owner’s Loan Documents arising
from and after the Effective Date; provided, however, that Prior Owner and Prior Guarantor are not
released or discharged from any liability, obligation or duty under the Loan Documents executed by
Prior Owner or Prior Guarantor or Prior Owner’s Loan Documents (i) arising prior to or
simultaneously with the assumption of the Loan by Borrower, excluding any liability for repaying
the Loan in accordance with the terms of the Loan Documents arising after the assumption of the
Loan by Borrower, including the payment of the outstanding principal balance of the Loan on the
Maturity Date; (ii) for any losses or damages suffered, or expenses incurred by Lender as a result
of any representation or warranty of Prior Owner or Prior Guarantor in this Agreement that proves
to have been false or misleading in any material respect when made or delivered, (iii) in the event
the assumption of the Loan by Borrower is deemed void for any reason whatsoever, or (iv) any losses
or damages suffered, or expenses incurred by Lender as a result of any fraudulent or tortious
conduct by Prior Owner or Prior Guarantor. In all cases, Prior Owner and Prior Guarantor, as
applicable, shall bear the burden of proof on the issue of the time at which an act or event first
occurred or an obligation first arose, which is the subject of claimed liability under any of the
Loan Documents or Prior Owner’s Loan Documents.

     26. Modifications to Loan Documents.

     (a) Section 1.1(a) of the Mortgage is hereby deleted in its entirety and replaced with
the following language:

     “Borrower is duly organized and validly existing as a limited partnership and their current
status is active under laws of Delaware and is qualified to do business in all other jurisdictions
in which Borrower is transacting business.”

     (b) Section 1.1(b) of the Mortgage is hereby modified by deleting the words and figure
“execute, deliver” in the first line of Section 1.1(b), and inserting in lieu thereof the words
and figures “execute and deliver that certain Loan Assumption Agreement, dated as of December
7, 2006,”.

     (c) Section 1.1(e) of the Mortgage is hereby deleted in its entirety and replaced with the
following language:

12

 

Page 13

     “Notwithstanding anything contained herein to the contrary, (i) transfers among AmREIT
MIG III PTC/BSQ, LLC (“MIG III”) and PTC/BSQ Acquisition Company, LLC of direct or indirect
interests in Borrower shall be permitted, provided, (A) MIG III shall, at all times retain an
economic interest in Borrower, and (B) if such transfers of direct or indirect interests in
Borrower shall result in an entity which did not previously own more than 49% of the direct or
indirect interest in Borrower, owning more than 49% of the direct or indirect interest in Borrower,
(1) Borrower shall provide Lender thirty (30) days’ prior written notice of such transfer and (2)
Borrower shall cause to be delivered to Lender a substantive non-consolidation opinion reasonably
acceptable to Lender, (ii) transfers by PTC/BSQ Acquisition Company, LLC of direct or indirect
interests in Borrower to any JPMorgan Entity or any affiliate of any JPMorgan Entity shall be
permitted, provided, however, if such transfers of direct or indirect interests in Borrower shall
result in an entity which did not previously own more than 49% of the direct or indirect interest
in Borrower, owning more than 49% of the direct or indirect interest in Borrower, (1) Borrower
shall provide Lender thirty (30) days’ prior written notice of such transfer and (2) Borrower shall
cause to be delivered to Lender a substantive non-consolidation opinion reasonably acceptable to
Lender; and (iii) any other transfer of direct or indirect interests in Borrower shall be permitted
so long as (A) MIG III and/or a JPMorgan Entity shall collectively own, at all times, not less than
50% of the direct and indirect interest in Borrower and (B) MIG III and/or an Advisor Controls
Borrower. In no event shall (w) transfers of securities of an entity who is the owner of a direct
or indirect interest in Borrower, and whose common stock is traded on a national securities
exchange or in the over-the-counter securities market, (x) transfers of units of participation in
Commingled Pension Trust Fund (Special Situation Property) of JPMorgan Chase Bank, N.A., (y)
transfers of limited partnership interests in New Guarantor so long as New Guarantor continues to
be controlled, either directly or indirectly, by AmREIT, a Texas real estate investment trust, or
(z) transfers of shares in AmREIT, be considered transfers of direct or indirect interests in
Borrower. “JPMorgan Entity” shall mean any pension fund or collective investment fund containing
pension funds, separate accounts or other investors for which J.P. Morgan Investment Management
Inc. or JPMorgan Chase Bank, N.A. (or one of its parents, affiliates, or subsidiaries) acts as
trustee, agent or investment advisor. “Advisor” shall mean J.P. Morgan Investment Management Inc.
or JPMorgan Chase Bank, N.A. (or one of its parents, affiliates, or subsidiaries) in their capacity
as agent or investment advisor “Control” shall mean the power to direct the management and policies
of the Borrower, directly or indirectly, whether through the ownership of voting securities or
other beneficial interests by contract or otherwise.”

[SIGNATURES BEGIN ON NEXT PAGE]

13

 

Page 14

     IN WITNESS WHEREOF, the parties hereby have all executed this Agreement under
seal as of the day and year first hereinabove written.

	 	 	 	 	 	 	 
	 	 	BORROWER:  
	 
	 	 	 	 	 	 
	 	 	AMREIT SSPF PRESTON TOWNE CROSSING, LP,
	 	 	a Delaware limited partnership
	 
	 	 	 	 	 	 
	 

	 	By:
	 	AmRElT SSPF Preston Towne Crossing GP, LLC,	 	 
	 

	 	 	 	a Delaware limited liability company,	 	 
	 

	 	 	 	its sole general partner	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	PTC/BSQ Holding Company LLC,
	 	 
	 

	 	 	 	a Delaware limited liability company, its managing	 	 
	 

	 	 	 	member	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	AmREIT MIG III PTC/BSQ, LLC,
	 	 
	 

	 	 	 	a Texas limited liability company,	 	 
	 

	 	 	 	its managing member	 	 

	 	 	 	 	 
	 

	 	By:	 	/s/ Chad C. Braun
	 

	 	 	 	 
	 

	 	Name:
	 	Chad C. Braun
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President
	 

	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	GUARANTOR:
	 
	 	 	 	 	 	 	 	 
	 	 	AMREIT MONTHLY INCOME & GROWTH FUND III, LTD.,
	 	 	a Texas limited partnership
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	AmREIT Monthly Income & Growth Fund III Corporation,

a Texas corporation, its sole general partner
	 	 	,	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Chad C. Braun	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Chad C. Braun	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President	 	 
	 

	 	 	 	 	 	 

14

 

Page 15

ACKNOWLEDGMENT

STATE OF TEXAS

COUNTY OF HARRIS

This instrument was acknowledged before me on December 5,
2006 by Chad C. Braun, the Vice President of AmREIT MIG III
PTC/BSQ, LLC, a Texas limited liability company and the managing member of PTC/BSQ Holding Company LLC, a
Delaware limited liability company and the managing member of AmREIT SSPF Preston Townc
Crossing GP, LLC, a Delaware limited liability company and the sole general partner of
AmREIT SSPF Preston Towne Crossing, LP, a Delaware limited partnership, on behalf of said
limited partnership.

	 	 	 	 	 	 	 	 	 
	 	 	/s/ Deborah Korkmas
	 	 	  
	 	 	Notary Public in and for the    
		 	State of Texas
	 	 	Name:	 	DEBORAH KORKMAS
	 	 	 	 	 
	 	 	My commission expires: 5-21-2009  
	 

	 	 	 	 	 	 

	 	 

STATE OF TEXAS

COUNTY OF HARRIS

This
instrument was acknowledged before me on December 5,
2006 by Chad C. Braun, the Vice President of AmREIT Monthly Income & Growth Fund
III Corporation, a Texas corporation and the sole general partner of AmREIT Monthly
Income & Growth Fund III, Ltd., a Texas limited partnership, on behalf of said limited
partnership.

	 	 	 	 	 	 	 	 	 
	 	 	/s/ Deborah Korkmas
	 	 	     
	 	 	Notary Public in and for the    
		 	State of Texas
	 	 	Name:	 	DEBORAH KORKMAS
	 	 	 	 	 
	 	 	My commission expires: 5-21-2009  
	 

	 	 	 	 	 	 

	 	 

15

 

Page 16

	 	 	 	 	 	 	 
	 	 	PRIOR OWNER:  
	 
	 	 	 	 	 	 	 	 
	 	 	PTC DUNHILL HOLDINGS, LTD.,
	 	 	a Texas limited partnership
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PTC Dunhill GP LLC, a Delaware	 	 
	 

	 	 	 	limited liability company, its general	 	 
	 

	 	 	 	partner	 	 

	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ William L. Hutchinson	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	William L. Hutchinson,	 	 
	 

	 	 	 	President	 	 

ACKNOWLEDGEMENT

	 	 	 	 	 
	 STATE OF TEXAS

	 	§
	 	 
	 

	 	§	 	 
	 COUNTY OF DALLAS

	 	§	 	 

     This instrument was acknowledged on the
29th day
of November, 2006, by
William L. Hutchinson, President of PTC Dunhill GP LLC, a Delaware limited liability
company, on behalf of said limited liability company, in its capacity as general
partner of
PTC Dunhill Holdings, Ltd., a Texas limited partnership, on behalf of said limited
partnership.

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	/s/ Betty Duncan Davis	 
	 	 	     	 
		 	Notary Public in and for the State of Texas

 

 

Page 17

	 	 	 	 
	 

	 	PRIOR GUARANTOR:	 
	 
	 

	 	/s/ William L. Hutchinson 	 
	 

	 	 	 
	 

	 	WILLIAM L. HUTCHINSON 	(SEAL)

ACKNOWLEDGEMENT

	 	 	 	 	 
	 STATE OF TEXAS

	 	§
	 	 
	 

	 	§	 	 
	 COUNTY OF DALLAS

	 	§	 	 

     This instrument was acknowledged on
the 29th
day of November, 2006, by
William L. Hutchinson, an individual.

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	/s/ Betty Duncan Davis	 
	 	 	     	 
		 	Notary Public in and for the State of Texas	 

 

 

Page 18

	 	 	 	 	 	 	 
	 	 	LENDER:  
	 
	 	 	 	 	 	 
	 	 	LaSalle Bank National Association as
	 	 	Trustee for the registered holders of J.P.
	 	 	Morgan Chase Commercial Mortgage
	 	 	Securities Corp., Commercial Mortgage
	 	 	Pass-Through Certificates, Series 2005-CIBC12
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Capmark Finance Inc., a California	 	 
	 

	 	 	 	corporation, its authorized agent	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lori Sandford
	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Lori Sandford	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President	 	 
	 

	 	 	 	 	 	 

18

 

Page 19

STATE OF

COUNTY OF

This
instrument was acknowledged before me on December 5, 2006 by
 Lori Sandford, the Vice President of Capmark Finance, Inc., a
California corporation, the authorized agent for LaSalle Bank National Association as Trustee for
the registered holders of J.P. Morgan Chase Commercial Mortgage Securities Corp., Commercial
Mortgage Pass-Through Certificates, Series 200S-CIBC12, on behalf of said corporation.

	 	 	 	 	 	 	 
	/s/
Brenda Hilbig

	 	 
	 	 	 	 
	 
 	 	 	 	 
	 
	 	 	 	 	 	 
	Notary
	 	 	 	 	 	
	 	 	 	 
	Title
	 	 	 	 	 
	 

	 	 	 	 
	 
	My commission expires:
	 	6/19/2009	 	 	 
	 

	 	 	 	 	 
	 

	 	 	 	 	 

19

 

Page 20

EXHIBIT A

LEGAL DESCRIPTION

20

 

Page 21

EXHIBIT
A
 Legal Description

TRACT 1

Lot 3, Block 1, PRESTON TOWNE CROSSING, an Addition to the City of Plano, COLLIN County,
Texas, according to the map or plat thereof; recorded in Cabinet G, Page 138 thru 140, of
the Plat Records of COLLIN County, Texas.

TRACT 2

Lot 4, Block 1, PRESTON TOWNE CROSSING, an Addition to the City of Plano, COLLIN County,
Texas, according to the map or plat thereof; recorded in Cabinet I, Page 7, of the Plat
Records of COLLIN County, Texas.

TRACT 3

Lot 1, Block 1, PRESTON TOWNE CROSSING, an Addition to the City of Plano, COLLIN County,
Texas, according to the map or plat thereof; recorded in Cabinet G, Page 138 thru 140, of
the Plat Records of COLLIN County, Texas.

TRACT 4

Lot 8R, Block 1, PRESTON TOWNE CROSSING, an Addition to the City of Plano, COLLIN County,
Texas, according to the map or plat thereof; recorded in Cabinet H, Page 452, of the Plat
Records of COLLIN County, Texas.

TRACT 5

Lot 10R, Block 1, PRESTON TOWNE CROSSING, an Addition to the City of Plano, COLLIN County,
Texas, according to the map or plat thereof; recorded in Cabinet H, Page 452, of the Plat
Records of COLLIN County, Texas.

TRACT 6

Lot 9R, Block 1, PRESTON TOWNE CROSSING, an Addition to the City of Plano, COLLIN County,
Texas, according to the map or plat thereof; recorded in Cabinet I, Page 3, of the Plat
Records of COLLIN County, Texas.

TRACT 7

Easement Estates as created in Construction, Operation and Reciprocal Easement Agreement
dated May 1, 1986, filed May 11, 1987, recorded in Volume 2624, Page 649, Deed Records,
Collin County, Texas, refiled June 19, 1987, recorded in Volume 2653, page 841, Deed
Records of Collin County, Texas, and First Amendment to Construction, Operation and
Reciprocal Easement recorded in Volume 2722, Page 527, Deed Records of Collin County, Texas
and Seconds Amendment to Construction, Operation and Reciprocal Easement recorded under
Clerk’s File No. 92-0041408, Land Records of Collin County, Texas.

TRACT 8

Non-Exclusive Easement for Building Encroachment, as created in Simultaneous Exchange Agreement
between The Kroger Co. and Preston Towne Crossing, Ltd., dated May 28, 1992, filed June 12, 1992,
recorded under Clerk’s File No. 92-0039061, Deed Records, Collin County, Texas.

 A-1

 

Page 22

Filed and Recorded

Official Public Records

Brenda Taylor, County Clerk

Collin County, TEXAS

12/08/2006 02:36:23 PM

$100.00 DLAIRD

2006 1208001734800EX-10.1

 

EXHIBIT 10.1

AMENDMENT NO. 1

TO

LINCOLN ELECTRIC HOLDINGS, INC.

2006 EQUITY AND PERFORMANCE INCENTIVE PLAN

Recitals

     WHEREAS, Lincoln Electric Holdings, Inc. (the “Company”) has adopted the 2006 Equity and
Performance Incentive Plan (the “Plan”);

     WHEREAS, the Company now desires to amend the Plan to change the definition of Market Value
Per Share and the provision relating to adjustments in the event of certain corporate transactions;
and

     WHEREAS, the Board of Directors of the Company has approved this Amendment No. 1 to the Plan
(“Amendment No. 1”).

Amendment

     NOW, THEREFORE, the Plan is hereby amended by this Amendment No. 1, effective as of October
20, 2006, as follows:

     1. Section 2(p) of the Plan is amended to read as follows:

     “Market Value Per Share” means, as of any particular date, the per share closing price of a
Common Share on the NASDAQ Global Market on the day such determination is being made (as reported
in The Wall Street Journal) or, if there was no closing price reported on such day, on the
most recently preceding day on which such a closing price was reported; or if the Common Shares are
not listed or admitted to trading on the NASDAQ Global Market on the day as of which the
determination is being made, the amount determined by the Board to be the fair market value of a
Common Share on such day, unless otherwise determined by the Board.

     2. Section 10 of the Plan is amended to read as follows:

     Adjustments. The Board shall make or provide for such adjustments in the numbers of Common
Shares covered by outstanding Option Rights, Appreciation Rights, Restricted Stock Units,
Performance Shares and Performance Units granted hereunder, in the Option Price and Base Price
provided in outstanding Appreciation Rights, and in the kind of shares covered thereby, as is
equitably required to prevent dilution or enlargement of the rights of Participants or Optionees
that otherwise would result from (a) any stock dividend, stock split, combination of shares,
recapitalization or other change in the capital structure of the Company, or (b) any merger,
consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or complete
liquidation or other distribution of assets, issuance of rights or warrants to purchase securities,
or (c) any other corporate transaction or event having an effect similar to any of the foregoing.
However, such adjustments shall be made automatically, without the necessity of Board action,

 

 

on the customary arithmetical basis in the case of any stock split, including a stock split
effected by means of a stock dividend, and in the case of any other dividend paid in shares of the
Company. Moreover, in the event of any such transaction or event, the Board, in its discretion,
may provide in substitution for any or all outstanding awards under this Plan such alternative
consideration (including cash), if any, as it, in good faith, may determine to be equitable in the
circumstances and may require in connection therewith the surrender of all awards so replaced. The
Board shall also make or provide for such adjustments in the numbers and kind of shares specified
in Section 3 of this Plan as is appropriate to reflect any transaction or event described in this
Section 10. Any such adjustment to the number specified in Section 3(b)(i) will be made in such
manner as not to cause any option intended to qualify as an Incentive Stock Option to fail so to
qualify.

     3. Except as amended by Amendment No. 1, the Plan shall remain unchanged and in full force and
effect.

     IN WITNESS WHEREOF, the undersigned has executed this Amendment No. 1 effective as of the date
first written above.

	 	 	 	 	 
	 	LINCOLN ELECTRIC HOLDINGS, INC.

 	 
	 	By:  	/s/ Frederick G. Stueber
 	 
	 	 	Name:  	Frederick G. Stueber 	 
	 	 	Title:  	Senior Vice President,
General Counsel & Secretary 	 
	 

2

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