Document:

Exhibit

RP-2019-13688 01/11/2019    ER    $204.00

WHEN RECORDED MAIL TO
Kane, Russell, Coleman Logan PC 1601 Elm Street, Suite 3700
Dallas, Texas 75201
Attn. Charles E. Aster, Esq.
SPACE ABOVE THIS LINE FOR RECORDER'S USE

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,
ASSIGNMENT OF RENTS AND SECURITY AGREEMENT

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THIS DEED OF TRUST, ASSIGNMENT OF RENTS AND SECURITY AGREEMENT
(this "Instrument") is made this 27th day of December, 2018,  by  and  among  Hartman  11211, LLC, a Texas limited liability company, having an address at 2909 Hillcroft, Suite 420, Houston, Texas 77057 ("Grantor"), to Charles E. Aster (the "Trustee"), and for the  benefit of East  West  Bank, a California state-chartered bank, having an address at 9300 Flair Drive, 6th Floor, EI

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Monte, California 91731, together with its successors, assigns and transferees (the "Lender").

This Instrument is given to secure payment ·of that certain loan (the "Loan") in the amount of Twenty Million and. NO/I 00 Dollars ($20,000,000.00), evidenced by that certain revolving promissory note (the "Note"), dated of even date herewith, executed by and Hartman vREIT XXI Operating Partnership L.P., a Texas limited partnership, having an address at 2909 Hillcroft, Suite 420, Houston, Texas 77057 ("Hartman Partnership"), Grantor and Hartman Spectrum, LLC, Texas limited liability company, having an address at 2909 Hillcroft, Suite 420; Houston, Texas 77057 ("Hartman Spectrum"; and Grantor, Hartman Spectrum and Hartman Partnership are collectively referred to herein as "Borrowers". and each sometimes individually referred to as a "Borrower"), and made payable to the order of Lender in the original face amount of $20,000,000.00. The manager of both Grantor and Hartman Spectrum is Hartman Income REIT Management, Inc., a Texas corporation ("Manager"), having an address at 2909 Hillcroft, Suite 420, Houston, Texas 77057. The payment of the Note is guaranteed by Hartman vREIT XXI, a Maryland corporation, having an address at 2909 Hillcroft, Suite 420, Houston, Texas 77057 ("Guarantor"; and Borrowers, Manager and Guarantor are collectively referred to herein as the "Loan Pa1iies", and each sometimes individually referred to as a "Loan Party"), pursuant to that certain guaranty dated of even date herewith (the "Guaranty"). The Note will be advanced pursuant to that certain Master Credit Facility Agreement, dated -of even date herewith, executed

by the Loan Parties and Lender (the  "Loan  Agreement")  and the terms  of the  Loan  Documents (as hereinafter defined).

All of the Borrowers, in addition to Grantor, are executing and delivering this Instrument to evidence their agreement to provide the representations and perform the covenants contained herein. All of the Borrowers acknowledge and confirm that a Default by any Borrower of a representation or covenant contained in this Instrument shall constitute a Default under all of the Loan Documents.

Grantor, in consideration of the indebtedness herein recited, the trust herein created and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, hereby irrevocably grants, bargains, sells, conveys, transfers, pledges, sets over and assigns to Trustee, in trust, with power of sale, and creates a security interest in, to and under any and all of the following described property and leasehold interests, whether now owned or hereafter acquired by Borrowers (collectively, the "Property"):

(I)     That certain tract of real property  situated  in the County of Harris, State of Texas,   and all more particularly described in Exhibit "A" attached hereto and incorporated herein by reference for all purposes (the "Land");

(2)All structures, buildings and improvements of every kind and description now or at any time hereafter located on the Land (the "Improvements");

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(3) 
All easements, rights-of-way, strips and gores of land, vaults, streets, ways, alleys, passages, sewer rights, and other emblements now or hereafter located on the Land or under or above the same or any part thereof, and all estates, rights, interests and appurtenances, reversions and remainders whatsoever, in any way belonging or appertaining to any of the Land or any part thereof, either at law or in equity, whether now owned or hereafter acquired by Grantor, including but not limited to, those certain reciprocal easements and common maintenance agreements listed on Exhibit "B" attached hereto and made a part hereof for all purposes (collectively, the "REAs," and each individually an "REA");

(4)All water, ditches, wells, reservoirs and drains and all water, ditch, well, reservoir and drainage rights which are appurtenant to, located on,  under  or above or used  in connection  with the Land and/or the Improvements, or any part thereof, whether now existing or hereafter created or acquired by Grantor;

(5)All minerals, royalties, oil and gas rights and profits, crops, timber, trees, shrubs, flowers and landscaping features now or hereafter located on, under or above the Land;

(6)All building materials, supplies and equipment now or  hereafter  placed  on  the Land or in the Improvements;

(7)All furniture, furnishings, Fixtures (as defined in the Uniform Commercial Code (as defined below), goods, equipment, inventory or personal property owned by Grantor and now or hereafter located on, attached to or used in and about the Land and/or the Improvements, including, but not limited to, all communication, plumbing, heating, air conditioning, lighting, ventilating, refrigerating, disposal and incinerating equipment, and sprinkler and fire prevention,

extinguishing and protection equipment, all elevators, and related machinery and equipment,  all theft and security and access control apparatus, all machines, engines, boilers, dynamos, stokers, tanks, cabinets, awnings, appliances, plumbing, bath tubs, water heaters, water  closets,  sinks, ranges, stoves, refrigerators, dishwashers, disposals, washers, dryers, awnings, storm  windows, storm doors, screens, blinds, shades, curtains and curtain rods, mirrors, cabinets, paneling, rugs, attached floor coverings, furniture, pictures, antennas, trees and plants, and all Fixtures and appurtenances thereto, and such other goods and  chattels  and  personal  property  owned  by Grantor as are now or hereafter used or  furnished  in  operating  the  Land  and/or  the Improvements, or the activities conducted thereon and/or therein, and all building materials and equipment hereafter situated on or about the Land and/or Improvements, and all warranties and guaranties relating thereto, and all additions thereto and substitutions and replacements therefor (exclusive of any of the foregoing owned or leased by tenants  of  space  in  the  Improvements except to the extent any of the same constitute Fixtures) (collectively, the "Equipment"). To the extent any p01iion of the Equipment is not deemed  real  prope1iy  or Fixtures  under  applicable law, it shall be deemed  to  be personal  property, and this Instrument  shall be deemed  to constitute a security agreement for the purposes of creating a security interest therein  in favor  of Lender  under the  Business  and  Commerce  Code  of  the  State  of  Texas  (the  "Uniform  Commercial Code");

(8) 
All leases (including, without limitation, oil, gas and mineral leases), licenses, concessions and occupancy agreements of all or any pati of the Land and/or the Improvements (each, a "Lease" and collectively, "Leases"), whether written or oral, now or hereafter entered into and all rents, royalties, issues, profits, bonus money, revenue, income, rights and other benefits (collectively, the "Rents and Revenues") of the Land and/or the Improvements, now or hereafter arising from the use or enjoyment of all or any po1iion thereof or from any present or future Lease or other agreement pertaining thereto or any of the General Intangibles (as defined below) and all cash or securities deposited to secure performance by the tenants, lessees or licensees (each, a "Tenant" and collectively, "Tenants"), as applicable, of their obligations under any such Leases, whether said cash or securities are to be held until the expiration of the terms of said Leases or applied to one or more of the installments of rent coming due prior to the expiration of said terms, subject, however, to the provisions contained in Paragraph 25 hereinbelow;

(9)All contracts and agreements now or  hereafter  entered  into  covering  any pati of the Land and/or the Improvements (collectively, the "Contracts") and  all  revenue,  income  and other benefits thereof, including, without limitation, management agreements, service contracts, maintenance contracts,· equipment leases, personal property  leases  and  any  contracts  or documents  relating to construction  on  any part of the Land and/or the  hnprovements  (including  all architectural renderings, models, specifications, plans, drawings, surveys, tests, reports, data, bonds and governmental approvals) or to the management or operation of any part of the  Land and/or the Improvements;

(10)All water taps, sewer taps, ce1iificates of occupancy, permits, licenses, franchises, certificates, consents, approvals and other rights and privileges now or hereafter obtained in connection with the Land and/or the Improvements and all present and future warranties and guaranties relating to the Improvements or to any equipment, Fixtures, furniture, furnishings,

personal property or components of any of the foregoing now or hereafter  located  or installed  on the Land and/or the Improvements;

(11)All present and future funds, accounts, instruments, accounts receivable, documents, claims, general intangibles (as such terms are defined in the Uniform Commercial Code) (including, without limitation, trademarks, trade names, service marks and symbols now or hereafter used in connection with any part of the Land and/or the Improvements, all names by which the Land and/or the Improvements may be operated or known, all rights to carry on business under such names, and all rights, interest and privileges which Grantor may have as developer or declarant under any covenants, restrictions or declarations now or hereafter relating to the Land and/or the Improvements) (collectively, the "General Intangibles");

(12)All insurance policies or binders now or hereafter relating to the Property, including any unearned premiums thereon;

(13)All cash funds, deposit accounts and other rights and  evidence  of rights to cash,  now or hereafter created or held by Lender pursuant to this Instrument or any other of the Loan Documents (as defined below), including, without limitation, all  funds  now  or  hereafter  on deposit in any account or reserve held by Lender under this Instrument or  any  other  Loan Document and all notes or chattel paper now or hereafter arising from or by virtue of any transactions related to the Land and/or the Improvements;

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(14) 
All present and future monetary deposits given by Grantor to any public or private utility with respect to utility services furnished to any part of the Land and/or the Improvements;

(15)All proceeds, products, substituti.ons and accessions  (including  claims  and demands therefor) of the conversion, voluntary  or  involuntary,  of any  of the foregoing  into  cash or liquidated claims, including, without limitation, proceeds of  insurance  and  condemnation awards; and

(16)All other or greater rights and interests of every nature in the Land and the Improvements and in the  possession  or  use thereof  and  income therefrom,  whether  now owned or hereafter acquired by Grantor.

TO SECURE TO LENDER: (a) the repayment of the Loan evidenced by Borrowers' Note in the principal sum of Twenty Million and No/100 Dollars (U.S. $20,000,000.00), together with interest thereon, with the balance of the indebtedness, if not sooner paid, due and payable on December 27, 2021, and all renewals, extensions, modifications and replacements thereof, (b) the repayment of any future advances, with interest thereon, made by Lender to Borrowers pursuant to this Instrument (herein "Future Advances"), (c) the payment and performance of the covenants and agreements of any Loan Party contained in that certain Environmental Indemnity Agreement (herein so called) between Lender and the Loan Parties dated of even date herewith,
(d) the payment and performance  of the covenants  and  agreements  of the Loan  Parties contained in the Loan Agreement, (e) the payment of all other sums, with interest thereon, advanced in accordance with the Loan Agreemeti.t or herewith  to protect  the security  of this  Instrument,  (f)  the performance of the covenants and agreements of Grantor herein  contained,  and  (g)  the  payment  of any  other  sum  owing  to  Lender  by any Loan  Party  under the Note, this  Instrument,

the Environmental Indemnity Agreement, the Loan Agreement and/or . any other document, agreement or instrument (including any other deed of trust executed and  delivered  by  any  Borrower to secure payment of the Note) evidencing, securing or  governing  the Loan  (the Note, this Instrument, the Environmental Indemnity Agreement, the  Guaranty,  and  such  other documents, agreements or instruments  (including  any other deed  of trust executed  and delivered  by any Borrower to secure payment of the Note) being  collectively  herein  referred  to  as  the "Loan Documents"; and sometimes each individually as a "Loan Document").  Additionally  the Loan is also secured by the Guaranty executed by Guarantor.

TO HAVE AND TO HOLD the Property unto Lender, its successors and assigns forever,  and Grantor hereby covenants and binds itself, its successor and assigns to WARRANT AND FOREVER DEFEND the title to the Property and/or any part thereof against all claims  and demands, subject only to the exceptions to title listed in the policy of title  insurance  insuring  the lien of this Instrument  (the "Permitted  Exceptions"),  and  Grantor  hereby  covenants  that Grantor is lawfully seized of the estates hereby  conveyed  and  has the right to  grant,  convey  and  assign the Property, and that the Property is unencumbered, except as aforesaid.

For the purpose of further securing the Loan for so long as the Loan or any part thereof remains incomplete or unpaid, Grantor hereby covenants and agrees as follows:

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1. 
PAYMENT OF PRINCIPAL, INTEREST AND OTHER SUMS Borrowers shall promptly pay when due the principal of and interest on  the indebtedness  evidenced  by the Note, any prepayment and late charges provided in the Note, any amounts due Lender from  any of the Loan Parties under the Environmental  Indemnity  Agreement,  the  Loan  Agreement,  all  other sums secured by this Instrument and any other sums owed to Lender by any of the Loan Patiies  under any of the other Loan Documents.

		
	2.
	FUNDS FOR TAXES, INSURANCE AND OTHER CHARGES.

(a)    Upon the occurrence of and during the continuance of a Default, Borrowers shall, upon the written request of Lender, commence paying  to Lender  on the day  monthly  installments of principal or interest are payable under the Note (or on another day designated in writing by Lender), until the Note is paid in full, an aggregate sum (herein "Funds") equal to one-twelfth of
(i) the yearly real property and ad vaforem taxes and assessments (including,  but not limited  to sewer and water, if applicable) which may be levied on the Property and (ii) the yearly premium installments for fire and other hazard insurance, rent loss insurance and such other  insurance covering the Property and liability insurance as Lender may require  pursuant  to  Paragraph  5 hereof. Any waiver by Lender of a requirement  that Borrowers  pay such  Funds may  be revoked  by Lender, in Lender's sole  discretion,  at any time  upon  notice  in writing  to  Borrowers.  Upon the occurrence of and during the continuance of a Default,  Lender  may require  Borrowers  to pay  to Lender, in advance, such other Funds for other taxes, charges, premiums, assessments and impositions in connection with Borrowers or the Property which Lender shall reasonably deem necessary to protect Lender's interests  (herein  "Other  Impositions").  Unless  otherwise  provided by applicable law, Lender may require Funds for Other Impositions to be paid by Borrowers in a lump sum or in periodic installments, at Lender's option.

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(b)    
 
The Funds shall be held in an institution(s), the deposits or accounts of which are insured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said rents, taxes, assessments, insurance premiums and Other Impositions so long as no Loan Party·is in breach of any covenant or agreement of any of Loan Party in this Instrument or any other Loan Document. Lender shall make no charge for so holding and applying the Funds, analyzing said account or for verifying and compiling said assessments and bills, unless Lender pays Borrowers interest, earnings or profits on the Funds and applicable law permits Lender to make such a charge. Borrowers and Lender may agree in writing at the time of execution of this Instrument that interest on the Funds shall be paid to Borrowers, and unless such agreement is made or applicable law requires interest, earnings or profits to be paid, Lender shall not be required to pay Borrowers any interest, earnings or profits on the Funds. Lender shall give to Borrowers, without charge, an annual accounting of the Funds in Lender's normal format showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Instrument.
(c)    If the amount of the Funds held by Lender at the time of the annual accounting thereof shall exceed the amount deemed necessary by  Lender  to  provide  for  the  payment  of taxes, assessments, insurance premiums, rents and Other  Impositions,  as  they  fall  due,  such excess shall be credited to Borrowers on the next monthly  installment  or  installments  of Funds due. If at any time the amount of the Funds held by Lender shall be less than the amount deemed necessary by Lender to pay  taxes,  assessments,  insurance  premiums,  rents  and  Other Impositions, as they fall due, Borrowers shall  pay to  Lender  any amount  necessary  to make  up the deficiency within fifteen (15) days after written notice from Lender to Borrowers requesting payment thereof.

(d)    Upon any Borrower's Default of any covenant or agreement of Borrowers in this Instrument, the Loan Agreement or in any other Loan Document, Lender may apply, in any amount and in any order as Lender shall determine in Lender's sole discretion, any Funds held by Lender at the time of application (i) to pay rates, rents, taxes, assessments, insurance premiums and Other Impositions which are now or will hereafter become due, or (ii) as a credit against sums secured by this Instrument. Upon payment in full of all sums secured by this Instrument, Lender shall promptly refund to Borrowers any remaining Funds held by Lender.

(c)APPLICATION OF PAYMENTS. Unless applicable law provides otherwise,  all payments received by Lender  from  Borrowers  under  the Note or this Instrument shall be applied by Lender in the following order of priority: (a) amounts payable to Lender by Borrowers under Paragraph 2 hereof, (b) interest payable on advances made pursuant to Paragraph 8 hereof, principal of advances made pursuant to Paragraph 8 hereof, (d) interest payable on any Future Advance, provided that if more than one Future Advance is outstanding, Lender may  apply payments received among the amounts of interest  payable  on the Future  Advances  in such  order as Lender, in Lender's sole discretion, may determine, (e) principal of any Future  Advance,  provided that if more than one Future Advance is outstanding, Lender  may  apply  payments received among the principal balances of the Future Advances in  such  order  as  Lender,  in Lender's sole discretion, may determine, (f) interest payable on  the  Note,  (g)  princip1tl  of the Note, and (h) any other sums secured by this Instrument in such order as  Lender,  at  Lender's option, may determine; provided, however, that Lender may, at Lender's option, apply any sums,

payable pursuant to Paragraph 8 hereof prior to interest on and principal of the Note, but such application shall not otherwise affect the order of priority of  application  specified  in  this  Paragraph 3.

3.CHARGES; LIENS. Borrowers shall pay all rents, taxes, assessments, premiums, and Other Impositions attributable to the Property  in the manner  provided  under  Paragraph  2 hereof or, if not paid in such manner, by Borrowers making payment, when due, directly to the payee thereof, or in such other manner as Lender may designate in writing. The Loan Parties  shall promptly furnish to Lender all notices of amounts due under this Paragraph 4, and in the event Borrowers shall make payment directly, the Borrowers shall promptly furnish to Lender receipts evidencing such payments. Borrowers shall promptly discharge  any  lien on the Property  (other than this Instrument), and Borrowers shall pay, when due, the claims  of  all  persons  supplying labor or materials to or in connection with the Property.  Without  Lender's  prior  written  permission, Borrowers shall not allow any lien on the Property (other than  this  Instrument)  to attach to or be perfected on or against all or any pmiion of any of the Property.

		
	4.
	INSURANCE.

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(a)    
 
Property Insurance. Borrowers shall keep the Property and improvements now ex1stmg or hereafter erected on the Property insured by carriers  admitted  by  the  Texas Departi:nent of Insurance, at all times satisfactory to Lender, with coverage at least as broad as Insurance Services Office ("ISO") form CP IO 30 06 95 ("Causes of Loss-Special Form"), in an amount not less than one hundred percent (100%) of the then-current full replacement cost of the improvements and other property being insured pursuant thereto  in  an  amount  necessary  to comply with any coinsurance percentage stipulated in .the policy, which shall not be  less  than eighty percent (80%) of the value of the Property, provided, however, that  the  insurance  policy shall contain an "inflation guard" or other endorsement increasing coverage as the value of the property increases, without any further notification required by the insured (collectively, the "Property Insurance"). All premiums on the Property Insurance shall be paid, in  the  manner provided under Paragraph 2 hereof, or in such other manner as Lender  may designate  in writing. The Property Insurance shall also include (x) loss or damage  by flood,  if the Property  are  in an area designated by the Secretary of Housing and Urban Development  as an area  having special flood hazards, in an amount equal to the principal amount of the Note or the maximum amount available under the Flood Disaster Protection Act of  1973,  and  regulations  issued  pursuant thereof, as amended from time to time, whichever is less, in form complying with the "insurance purchase requirement" of that Act, (y) earthquake insurance if the normal customary practice for institutional commercial lenders making commercial real estate loans for assets of the same approximate size and type as the Property in the area where the Property  is located  is to require  such insurance and (z) such other insurance and endorsements, if any, · as Lender, in its commercially reasonable judgment, may require from time to time, or which  is  required  by the Loan Documents.

(b)    Commercial General Liability. From the date hereof, Borrowers shall maintain  in full force and effect a commercial general liability insurance policy  with  coverage  at  least  as broad as ISO form CG 00 0 I IO O I, insuring against claims for bodily injury (including death), property damages, personal injury and adve1iising injury occurring upon the Prope1iy, such insurance to afford protection in an amount not less than Five Million Dollars $5,000,000 (the

"Liability Insurance") and such other insurance and endorsements, if any, as Lender, in its commercially reasonable judgment, may require from time to time, or which is required by the Loan Documents.

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(c)    
 
All insurance policies and renewals thereof shall be in a form acceptable to Lender issued by a carrier "admitted" by the Texas Department of lnsurance rated Best A-:VII or better (or a comparable successor rating). The Property Insurance shall include a standard mortgagee clause in favor of and in form acceptable to Lender, naming "EAST WEST BANK AND ITS OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS" as mortgagee, which states that proceeds of the Property Insurance shall be payable to Lender notwithstanding any negligence of Borrowers or other personal defenses insurer may have against Borrowers. The Liability Insurance shall include a standard loss payee or additional insured clause naming "EAST WEST BANK AND ITS OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS" as loss payee or additional insured, in favor of and in form acceptable to Lender, and, if available, which states that proceeds of the Liability Insurance shall be payable to Lender notwithstanding any negligence of Borrowers or other personal defenses insurer may have against Borrowers. Lender shall have the right to hold the policies, and Borrowers shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. Each policy, including the Property Insurance and the Liability Insurance, shall provide by way of endorsement, rider or otherwise that no such insurance policy shall be cancelled, endorsed, altered, or reissued to effect a change in coverage unless such insurer shall have first given Lender thi1ty (30) days prior written notice thereof. At least thirty (30) days prior to the expiration date of a policy, Borrowers shall deliver to Lender a renewal policy in form satisfactory to Lender. All insurance policies, including, but not limited to, the Property Insurance and the Liability Insurance, shall contain waivers of any right of subrogation that the insurer of such patty may acquire against each party hereto with respect to any losses and damages that are of the type covered under the policies required in this Paragraph 5.
(d)    In the event of loss, Borrowers shall give immediate written notice to the insurance carrier and to Lender. Borrowers hereby authorize and empower Lender as attorney­ in-fact for Borrowers to enforce the applicable insurance policy, to make proof of loss, to adjust and compromise any claim under such insurance policies, to appear in and prosecute any action arising from such insurance policies, to collect and receive insurance proceeds, and to deduct therefrom Lender's expenses incurred in the collection of such proceeds; provided, however, that nothing contained in this Paragraph 5 shall require Lender to incur any expense or take any action hereunder. Borrowers further authorize Lender, at Lender's option, (i) to hold the balance of such proceeds to be used to reimburse Borrowers for the cost of reconstruction or repair of the Property or (ii) if such insurance proceeds exceed the lesser of (x) Five Hundred Thousand Dollars ($500,000) or (y) ten percent (10%) of the then unpaid principal balance of the Note, to apply all of such proceeds to the payment of the sums secured by this Instrument, whether or not then due, in the order of application set forth in Paragraph 3 hereof. In the event the Property cannot be restored to the equivalent of its original condition:, as concerns height, floor area, use and number of units, Lender may, in its sole discretion, (I) require that the insurance proceeds be applied to the payment of the sums secured by this Instrument, whether or not then due (the "Loan Balance"), in the order of application set forth in Paragraph 3 hereof, or (II) require that
(A) only a portion of the Prope1ty be restored and repaired, (B) that the insurance proceeds be applied to reduce the Loan Balance such that the ratio of the Loan Balance to the number of units

that existed immediately prior to the event of loss shall equal the ratio  of  the  reduced  Loan Balance to the reduced number of units, to exist after the paiiial restoration and repair of the Property, and (C) any insurance proceeds not used to reduce the Loan Balance shall be held by Lender in accordance with Paragraph 5 hereof to reimburse Borrowers for the cost of such partial restoration and repair. Any insurance proceeds not applied to the repair or restoration of  the  Property shall be applied to reduce the Loan Balance in the order of application set forth in Paragraph 3 above.

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(e)    
 
If the insurance proceeds  are held  by Lender to  reimburse  Borrowers  for the cost of restoration and repair of the Property, the property being restored shall be restored to the equivalent of its original condition or such other condition as Lender may approve  in writing. Lender may, at Lender's option, condition disbursement of said proceeds on Lender's approval of such plans and specifications of an architect satisfactory to Lender, contractor's cost estimates, architect's certificates, waivers of liens, sworn  statements  of  mechanics  and  materialmen  and such other evidence of costs, percentage  completion  of  construction,  application  of  payments, and satisfaction of liens as Lender may require. If the insurance proceeds are applied  to  the payment of the sums secured by this Instrument, any such  application  of proceeds  to  principal shalI not extend or postpone the due dates of the monthly installments referred to in Paragraphs 1 and 2 hereof or change the amounts of such installments. If the Property is sold pursuant to Paragraph 26 hereof or if Lender acquires title to the Property,  Lender shall  have all of the right, title and interest of Borrowers in and to any insurance policies  and  unearned  premiums  thereon and in and to the proceeds resulting from any damage to the Property prior to such sale or acquisition.

		
	5.
	PRESERVATION AND MAINTENANCE OF THE PROPERTY; REAs.

(a)    Borrowers, ordinary wear and tear excepted, (i) shall not commit waste or permit impairment or deterioration of the Property,  (ii) shall  not abandon  the Property,  (iii) shall restore or repair promptly and in a good and workmanlike manner all or any part of the Property to the equivalent of its original condition, or such other condition as Lender  may approve  in writing,  in the event of any damage,  injury or loss thereto,  whether  or not  insurance  proceeds  are available  to cover in whole or in part the costs of such restoration or repair, (iv) shall keep the Property, including improvements, Fixtures, equipment, machinery and appliances  thereon  in good  repair and shall replace (with equivalent or better  quality)  Fixtures,  equipment,  machinery  and appliances on the Property when necessary to keep such items  in good  repair,  (v) shall comply  with all laws, ordinances, regulations and  requirements  of any governmental  body applicable  to the Property, including, but not limited to, the Americans with Disabilities Act of 1990, the Elimination of Architectural Barriers Act of Texas, Texas Civ. Stat. Article 9102,  the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. § 9601 et seq.) as amended by the Superfund Amendments and Reauthorization Act of 1986, the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), and the Clean Air Act amendments of 1990, (vi) shall provide for professional management  of  the  Property. by a prope1iy manager satisfactory to Lender pursuant to the existing contract approved by Lender in writing, unless such requirement shall be waived by Lender in writing, (vii) shall generally operate and maintain the Property  in a manner  to ensure  maximum  rentals and/or  income, and (viii) shall give notice in writing to Lender of and, unless  otherwise  directed  in  writing  by Lender, appear in and defend any action or proceeding purpo1iing to affect the Property, the

security of this Instrument or the rights or powers of Lender.  Neither Borrowers nor any tenant or other person shall remove, demolish or alter any improvement now existing or hereafter erected on the Property or any fixture, equipment, machinery or appliance in or on the Property except when incident to the replacement of Fixtures, equipment, machinery and appliances with items of like kind of equivalent or better quality.

(b)    Borrowers (i) shall comply with the prov1s1ons of the REAs, (ii) shall give immediate written notice to Lender of any default by any counterparty under any REA or of any notice received by Borrowers from such counterparty of any default by any Borrower under any REA, (iii) shall exercise any option to renew or extend each of the REAs, if any, and give written confirmation thereof to Lender within thirty (30) days after such option becomes exercisable, (iv) shall give immediate written notice to Lender of the commencement of any remedial proceedings under any REA by any party thereto and, if required by Lender, shall permit Lender as Borrowers' attorney-in-fact to control and act for Borrowers in any such remedial proceedings, and (v) shall within thirty (30) days after request by Lender obtain from the counterparty under any REA and deliver to Lender the counterparty's estoppel certificate required thereunder, if any.

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(c)    
 
. Borrowers hereby expressly transfer and assign to Lender the benefit of all covenants contained in each REA, whether or not such covenants run with the Land, but Lender shall have no liability with respect to such covenants nor any other covenants contained in any REA. Borrowers shall not surrender any REA nor terminate or cancel any REA and Borrowers shall not, without the express written consent of Lender, alter, modify or amend any REA

(d)    Upon the occurrence and during the continuance of a Default, Borrowers hereby authorize and consent to Lender taking any actions under any REA which Lender deems advisable to protect any REA and/or the Land, including but not limited to preventing or curing any defaults under any REA (but Lender shall have no obligation to do so), including, at Lender's sole election, advancing any additional funds under the Loan to prevent or cure a default under any REA.

6.ADDITIONAL    BORROWERS'    COVENANTS;    USE OF THE PROPERTY; INSPECTION.

(a)    Each Borrower hereby covenants, agrees and undertakes to:

(i)    from time to time, at the request of Lender, (A) promptly correct any defect, error or omission which may be discovered in the contents of this Instrument or in any other Loan Document or in the execution or acknowledgement thereof; (B) execute, acknowledge, deliver and record and/or file such further documents or instruments (including, without limitation, further mortgages, security agreements, financing statements, continuation statements, assignments of rents or leases and environmental indemnity agreements) and perform such further acts and provide such further assurances as may be necessary or proper, in Lender's opinion, to carry out more effectively the purposes of this Instrument and such other instruments and to subject to the liens and security interests hereof and thereof any property intended by the terms hereof or thereof to be covered hereby or thereby, including specifically, but without limitation, any renewals, additions, substitutions, replacements, or appurtenances to the Property; provided that such documents or instruments do not materially increase any of the Loan Parties'

liability under the Loan Documents; and (C) execute, acknowledge, deliver,  procure,  and  file and/or record any document or instrument (including specifically, but without limitation, any financing statement) deemed advisable by Lender to protect the liens and the security  interests herein granted against the rights or interests of third persons; provided that such documents or instruments do not materially increase any of the Loan Parties' liability  under  the  Loan  Documents. Borrowers will pay all reasonable costs connected with any of the foregoing in this Subparagraph (i);

. (ii) continuously maintain or cause the maintenance of each Loan Party’s existence and right to do business in such Loan Party's state of incorporation or organization and the State of Texas;

(iii)    at any time any law shall be enacted  imposing  or  authorizing  the imposition of any tax upon this Instrument, or upon any rights, titles, liens or security interests created hereby, or upon the obligations secured hereby  or any part thereof,  immediately  pay all such taxes; provided that, if such law as enacted  makes  it unlawful  for the Loan Parties  to pay  such tax, the Loan Parties shall not pay nor be obligated to pay such tax, and in the alternative, Borrowers may, in the event of the enactment of such a law, and must, if it  is unlawful  for  the  Loan Parties to pay such taxes, prepay the obligations secured  hereby  in full  within  sixty (60)  days after demand therefor by Lender;

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(iv)    
 
not execute or deliver any deed of trust, mortgage, security agreement or pledge of any type covering all or any portion of the Property;

(v)    not acquire any real property or assets (other than the Property) or operate any business other than the management and operation of the Property during the term of the Loan;

(vi)    neither (A) grant or enter into any right or lease nor (B) permit any drilling or exploration, for or extraction, removal or production of any mineral, natural element, compound or substance from the surface or subsurface of the Property regardless of the depth thereof or the method of mining or extraction thereof;

(vii)    not change or allow the change in any Loan Party's name, identity, address, jurisdiction of incorporation or organization, structure or employer identification number during the term of the Loan unless Borrowers deliver thirty (30) days prior written notice to Lender and the Loan Parties execute or re-execute any additional instruments, documents, financing statements, or amendments in connection therewith reasonably requested by Lender (Borrowers agree to promptly reimburse Lender for any and all reasonable attorney review and/or document preparation fees and expenses together with all filing/recordation costs incurred, or to be incurred, by Lender in connection with such matters);

(viii)    pay within twenty (20) days' receipt of written demand all reasonable and bona fide out-of-pocket costs, fees and expenses and other expenditures, including, but not limited to, reasonable attorneys' fees and expenses, paid or incurred by Lender to third party’s incident to this Instrument or any other Loan Document (including, but not limited to, reasonable attorneys' fees and expenses in connection with the negotiation, preparation and execution hereof

and of any other Loan Document and any amendment hereto or thereto, any release hereof, any consent, approval or waiver hereunder or under any other Loan Document (provided, however, no charge or fee shall be imposed by Lender in connection with any request by Lender for an estoppel certificate or subordination, non-disturbance and attornment agreement), the making of any advance under the Note, and any suit to which Lender is a party involving this Instrument, the Note, any other Loan Document or the Property) or incident to the enforcement of the obligations secured hereby or the exercise of any right or remedy of Lender under any Loan Document;

(ix)    fulfill on or prior to the dates due all payment and performance obligations, covenants, agreements and representations of Borrowers, as lessor, under any lease of the Property or any portion thereof by any of the Loan Parties to tenants, including, but not limited to the Leases; and

(x)    maintain continuously at Lender until the Loan is paid in full all operating bank accounts, wherein all income and revenues derived by any of the Borrowers, including, but not limited to, from the Property, shall be deposited and kept at all times and from which all expenses of such Borrowers and the Property shall be paid.

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(b)    
 
Unless required by applicable law or unless Lender has otherwise agreed in writing, Borrowers shall not allow changes in the use for which all or any part of the Property were intended at the time this Instrument was executed. Borrowers shall not subdivide the Property or initiate or acquiesce in a change in the zoning classification of the Property without Lender's prior written consent.

(c)    Upon two (2) days' notice, Lender may make or cause to  be  made  reasonable entries upon and inspections of the Property, including, but not limited to, phase I and/or phase II environmental audits and inspections (provided that, other than during any time a Default has occurred and is continuing, such audits and inspections are commissioned based upon Lender's reasonable belief that there are Hazardous Materials in, or under the Property which are not in compliance with Environmental Laws, as such terms are defined in the Environmental Indemnity Agreement) which phase II inspections will not unreasonably disturb Borrowers'  use  of  the Property and the cost of such inspections shall be reimbursed by Borrowers  to  Lender  within twenty (20) days after Lender's written demand therefore if  (x) such  inspections  do  not  occur more frequently than once every calendar year  or (y) a Default  (as defined  below)  has occurred and is still in existence at the time of such inspection.

		
	7.
	PROTECTION OF LENDER'S SECURITY.

(a)    If any of the Loan Parties fails to perform any of the covenants and agreements contained in this Instrument or in any of the other Loan Documents,  or  if  any  action  or  proceeding is commenced which affects the Property or title thereto or the interest  of  Lender therein, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender, at Lender's  option,  may make such appearances, disburse such sums and take such  actions  as  Lender  deems necessary, in its sole discretion, to protect Lender's interest, including, but not limited to, (i) disbursement of attorney's fees, (ii) entry upon the Property to make repairs, (iii) procurement of

satisfactory insurance as provided in Paragraph 5 hereof, (iv) the payment of any taxes and/or assessments levied against the Property and then due and payable and (v) exercise of any option to renew or extend any REA on behalf of Borrowers and the curing of any default of Borrowers in the terms and conditions of any REA.

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(b)    
 
Borrowers unconditionally agree to pay Lender's reasonable attorney fees and disbursements incurred in connection with this Loan, including (i) the preparation of this Instrument, any intercreditor agreements and the other Loan Documents, (ii) the disbursement, amendment, and administration of the Loan and (iii) the enforcement of the terms of this Instrument and the other Loan Documents. Borrowers also unconditionally agree to pay all direct costs and expenses incurred by Lender in connection with making the Loan and any and all other fees owing to Lender pursuant to the Loan Documents or any separate fee agreement, and also including, without limiting the generality of the foregoing, all recording, filing and registration fees and charges, mortgage or documentary taxes, all insurance premiums, title insurance premiums and other charges of the title company issuing the Title Policy (the "Title Company"), printing and photocopying expenses, survey fees and charges, cost of certified copies of instruments, cost of premiums on surety company bonds and the Title Policy, charges of the Title Company or other escrow for administering disbursements, all appraisal fees, reasonable insurance consultant's fees, reasonable environmental consultant's fees, reasonable travel related expenses and all costs and expenses incurred by Lender in connection with the determination of whether or not Borrowers have performed the obligations unde1iaken by hereunder or has satisfied any conditions precedent to the obligations of Lender hereunder and, if any Default occurs hereunder or under any of the Loan Documents or if the Loan or Note or any portion thereof is not paid in full when and as due, all costs and expenses of Lender (including, without limitation, comi costs and reasonable counsel's fees and disbursements and fees and costs of paralegals) incurred in attempting to enforce payment of the Loan and expenses of Lender incurred (including court costs and counsel's fees and disbursements and fees and costs of paralegals) in attempting to realize, while a Default exists, on any security or incurred in connection with the sale or disposition (or preparation for sale or disposition) of any security for the Loan. Borrowers agree to pay all brokerage, finder or similar fees or commissions payable in connection with the transactions contemplated hereby and shall indemnify and hold Lender harmless against all claims, liabilities, costs and expenses (including attorneys' fees and expenses) incurred in relation to any claim by broker, finder or similar person: Borrowers shall pay all reasonable expenses and fees incurred as of the date of this Instrument on the date of this Instrument (unless sooner required herein). In connection with the execution and delivery of this Instrument, Lender may pay, from the proceeds of the initial disbursement of the Loan or from funds in any account of Borrowers at Lender, all Loan expenses, including, but not limited to, any reasonable legal fees incurred by Lender in the documentation, due diligence review, negotiation and closing of the Loan, and all fees, including, but not limited to, any commitment and other loan closing fees, payable to Lender. Lender may require the payment of outstanding fees and expenses as a condition to any disbursement of the Loan. Lender is hereby authorized, without any specific request or direction by Borrowers, to make disbursements from time to time in payment of or to reimburse Lender for all Loan expenses and fees.
(c)    Any amounts disbursed by Lender pursuant to this Paragraph 8, with interest thereon, shall become additional indebtedness of Borrowers secured by this Instrument. Unless Borrowers and Lender agree to other terms of payment, such amounts shall be immediately due

and payable and shall bear interest from the date of disbursement at the rate stated in the Note unless collection from Borrowers of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate which may be collected from Borrowers under applicable law. Each Borrower hereby covenants and agrees that Lender shall be subrogated to the lien of any mortgage or other lien discharged, in whole or in part, by the indebtedness secured hereby. Nothing contained in this Paragraph 8 shall require Lender to incur any expense or take any action hereunder.

8.REPRESENTATIONS OF BORROWER. Each Borrower hereby represents and warrants to Lender the following:

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(a) 
Hartman Partnership is a limited partnership duly organized, validly existing and in good standing under the laws of the State of Texas. There are no proceedings or actions pending, threatened or contemplated for the liquidation, termination or dissolution of Hartman Partnership. Hartman Spectrum is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Texas. There are no proceedings or actions pending, threatened or contemplated for the liquidation, termination or dissolution of Hartman Spectrum. Grantor is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Texas. There are no proceedings or actions pending, threatened or contemplated for the liquidation, termination or dissolution of Grantor.  Guarantor is a corporation duly incorporated in the State of Maryland and validly existing and in good standing under the laws of the State of Texas. There are no proceedings or actions pending, threatened or contemplated for the liquidation, termination or dissolution of Guarantor.  Manager, the manager of the Property, is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Texas. There are no proceedings or actions pending, threatened or contemplated for the liquidation, termination or dissolution of Manager.

(b)No person or entity has any leasehold estate in, or any lease or other agreement granting the right to use or occupy any portion of, the Property except  the Tenants  under  the  Leases listed in the rent roll (the "Rent Roll") provided  by Grantor  to Lender  in connection  with the closing of the Loan; true, correct and complete copies of the Leases and  all amendments  and side letters thereto which modify or amend the material terms of any of the Leases,  if any,  have been delivered to Lender; the Leases expire on the respective dates shown in the Rent Roll; the amount of the security deposit, if any, held by Grantor  under  each  of the Leases  is as shown  in  the Rent Roll; each of the Leases  is valid  and  binding  on the  parties thereto  in accordance  with its terms; the execution of this Instrument will not constitute an event of default under any of the Leases; none of the Tenants under any of the Leases  has rights  of offset  or counterclaim  against the landlord; all of the obligations of the landlord pursuant  to  the  Leases,  including  but  not limited to Tenant finish out work, have been performed; and all Tenants  are  current  in  the  payment of rent except as shown on the Rent Roll.

(c)Except for the Permitted Exceptions, Grantor  is  now  in  possession  of  the Property; Grantor's possession of the Property is peaceable and undisturbed; Borrowers  do  not know of any facts by reason  of which  any claim to the Property,  or  any part thereof,  might  arise or be set up adverse to Grantor; and the Property is free and clear of (i) any lien for taxes (except  real property taxes not yet due and payable for the  calendar  year  in  which  this  Instrument  is being executed), and (ii) any easements, rights-of-way, restrictions, encumbrances, liens or other

exceptions to title by mortgage, decree, judgment, agreement, instrument, or, to the knowledge of Borrowers, proceeding in any court.

(d)All charges for labor, materials or other work of any kind furnished in connection with the construction, improvement, renovation or rehabilitation of the Property or any portion thereof have been paid in full, and no unreleased affidavit claiming a lien against the Property, or any portion thereof, for the supplying of labor, materials or services for the construction of improvements on the Property have been executed or recorded in the mechanic's lien or other appropriate records in the county in which the Property are located.

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(e) 
To the knowledge of Borrowers: the current  and  contemplated  use of the Property is in compliance with all applicable federal, state and municipal laws, rules, regulations or ordinances; no governmental authority having jurisdiction over any aspect of  the  Property  has made a claim or determination that there is any such violation; the Property and the intended use thereof are in compliance with all applicable restrictions, zoning ordinances, building codes and regulations, building lines and easements, including, without limitation, federal and state environmental protection laws; the Property is not  included  in  any  area  identified  by  the Secretary of Housing and Urban Development pursuant to the Flood Disaster Protection  Act of 1973, as amended, as an area having special flood hazards; and all permits, licenses and the like which are necessary for the operation of the Property have been issued and are in full force and effect. In addition to the foregoing, the Property complies with all requirements of the Americans With Disabilities Act of 1990 and the Elimination of Architectural Barriers Act of Texas, Texas Civ. Stat. article 9102.
(f)There have been no material adverse changes, financial or otherwise,  in  the condition of any of the Loan Parties from that disclosed to Lender  in  the  loan  application submitted to Lender by Borrowers, or in any supporting data submitted in connection  with  the  Loan, and all of the information contained  therein  was true and correct when  submitted  and  is  now substantially and materially true and correct on the date hereof.

(g)To the best knowledge of Borrowers, there is no claim, litigation or condemnation proceeding, pending, or, to the knowledge of Borrowers, threatened, against the Property or any of the Loan Parties, which would affect the Property or any of the Loan Parties' ability to perform their obligations in the connection with the Loan.

(h)Grantor does not directly or indirectly own any real property or assets other than the Property and do not manage or operate any business other than the management and operation of the Property.

(i)Each of the Loan Parties is, and if there are any general partners or limited liability company members in any of the Loan Parties, such partners and members are, solvent pursuant to the laws of the United States, as reflected by the entries in each Loan Party’s books and records and as reflected by the actual facts.

U)    The Loan Documents have been duly authorized, executed and delivered by each of the Loan Parties to which they are a party and constitute valid and binding obligations of each of the Loan Parties, enforceable against each of the Loan Parties in accordance with their

respective terms. No approval, consent, order or authorization of any governmental authority and no designation, registration, declaration or filing with any governmental authority is required in connection with the execution and delivery of the Note, this Instrument or any other Loan Document.

(k)    The execution and delivery of the  Loan  Documents  will  not violate or contravene in any way the articles of incorporation or bylaws,  articles  of  organization,  certificate  of formation, limited liability agreement or limited  partnership  agreement of any of the Loan  Parties or any indenture, agreement or instrument to which any of the  Loan  Parties  is  a  party  or  by which it or its property may be bound, or be in conflict with, result in a breach of or constitute a default under any such indenture, agreement or other instrument, result  in  the  creation  or imposition of any lien, charge or encumbrance of  any  nature  whatsoever  upon  any  of  the property or assets of any of the Loan Parties,  except  as  contemplated  by the provisions  of  the Loan Documents, and no action or approval with respect thereto by any third person is required.

(I)    No part of the Property is all or a part of any of the Loan Parties’ or any other party’s homestead.

(m)No proceedings in bankruptcy or insolvency have ever been instituted by or against any of the Loan Parties or any affiliate thereof, and no such proceeding is now pending or contemplated.

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(n) 
(i) none of the funds or other assets of any of the Loan Parties or of any affiliate of any of the Loan Parties constitute property of, or are beneficially owned, directly or indirectly, by, any person subject to trade restrictions under the laws of the United States, including those who are covered by the International Emergency Economic Powers Act, 50 U.S.C. App. 1 et seq., and any executive orders or regulations promulgated thereunder (an "Embargoed Person") with the result that Lender Exposure (as defined below) will occur; (ii) no such Embargoed Person has any interest of any nature whatsoever (whether directly or indirectly) in any of the Loan Parties with the result that Lender Exposure will occur; and (iii) none of the funds of any of the Loan Parties have been derived from any unlawful activity with the result that Lender Exposure will occur. For the purposes hereof, "Lender Exposure" shall mean any one or more  of the following: (i) the Loan is in violation of applicable law, or (ii) the Property or any other collateral for the Loan or any portion thereof (including, without limitation, the Rents and Revenues or other income to be derived therefrom) is subject to forfeiture or to being frozen, seized, sequestered or otherwise impaired by any governmental authority, or (iii) the Loan or any payments made or to be made in respect thereof (including, without limitation, principal and interest) is subject to forfeiture or to being frozen, seized, sequestered or otherwise impaired by a governmental authority or Lender or any of Lender's collateral for the Loan or the lien priority thereof or any of Lender's rights or remedies in respect of the Loan or the collateral therefor is otherwise impaired or adversely affected, or (iv) Lender is subject to criminal or civil liability or penalty.
(o)None of the Loan Parties nor any of their direct or indirect owners  is in violation  of the U.S. Federal Bank Secrecy Act, as  amended;  and  its implementing  regulations  (31  CFR part 103), the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 and the regulations

promulgated thereunder (collectively, the "Patriot Act"), any order issued with respect to anti­ money laundering by the U.S. Department of the Treasury's Office of Foreign Assets Control ("OFAC"), or any other anti-money laundering law with the result that Lender Exposure will occur.

(p)None of the Loan Parties nor any of their  direct  or  indirect  owners  is  a person with whom people of the United States are restricted from doing  business  with  under  (i) regulations issued by OFAC (including those persons and entities named on OFAC's Specially Designated Nationals and Blocked persons list) or  under any  law of the United  States (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With persons Who Commit, Threaten to Commit, or Support Terrorism) or (ii) any other law, if, with respect to either clause (i) or (ii) above, Lender Exposure will occur.  Without  limiting  the foregoing, none of the Loan Parties is presently funding any of the Loan Parties' obligations hereunder with funds from any of the persons referred  to  in  this  paragraph  (p)  if  Lender Exposure will occur.

(q)The address of each Loan Party set forth in the introductory paragraphs of this Instrument is the principal place of business of each Loan Party.

(r)The REAs are in full force and effect without modification except as noted above and without default on the part of any counterparty thereunder.

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(s) 
Grantor has paid all charges, assessments and other sums (collectively, the "REA Payments") due and payable under the REAs by  Grantor  as of the date  hereof  and  Borrowers, from and after the date hereof shall pay or cause to  be paid  when  due and  payable  under  the REAs all REA Payments which become due and payable by Grantor under any of the REAs.

9.BOOKS AND RECORDS. The Borrowers covenant that each of the Loan Parties shall keep and maintain at all times at Borrowers' address stated above, or such other place as Lender may approve in writing, complete and accurate books of accounts and records adequate to reflect correctly the results of the operation of the Property and copies of all written contracts, leases and other instruments which affect the Property. Such books, records, contracts, leases and other instruments shall be subject to examination and inspection upon two (2) days' notice by Lender. Each of the Loan Parties shall furnish to Lender the following reports and information no later than the dates set forth below (collectively, the "Financial Information"):

(a)    On April 30, 2020 covering the period of time from January 1, 2019 through December 31, 2019, and thereafter on each April 30th covering the period of time  from  each January 1st through December 31st of the immediately preceding calendar year until the Loan  is paid in full, operating statements of Guarantor and all other Loan Parties on a consolidated and consolidating basis as of such date covering such periods of time which  will  include  a balance sheet, profit and loss statement of Guarantor and all other Loan Parties on a consolidated and consolidating basis and a statement of changes in financial position, each in reasonable detail, prepared in accordance with generally accepted accounting principles and certified by the Loan Parties to be true, correct and complete (collectively, a "Financial Statement");

(b)    On March 31, 2020 and thereafter on each March 31st  until the Loan  is paid  in  full: (1) for the Property, a rent roll showing as  of such  date the  name of  each Tenant,  and for  each Tenant, the space occupied, the Lease commencement date, the Lease expiration date, the annual and monthly rent payable and the rent paid under such  Lease and the security  deposit for such Lease, certified by Borrowers to be true, correct and complete (a "Rent Roll"), and  (2) operating statements of the Property, in detail acceptable to Lender, both for the immediately preceding twelve (12) months ending on each December 31st; and

(c)    Within ten (10) days after filing of Guarantor's United  States Federal  Tax return with the United States Internal Revenue Service,  but  in no event  later than September  30, 2019  and thereafter within ten (10) days after  filing of Guarantor's  (including  all other  Loan  Parties  on a consolidated and consolidating basis) United States Federal Tax return with the United States Internal Revenue Service, but in no event  later than the 30th day of September  of each  calendar year until the Loan is paid in full, a copy of such tax return certified  by Guarantor  to  be true, correct and complete.

		
	10.
	CONDEMNATION.

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(a) 
Borrowers shall promptly notify Lender of any action or proceeding relating to any condemnation or other taking, whether direct or indirect, of the Property, or any part thereof, and the applicable Borrower shall appear in and prosecute any such action or proceeding unless otherwise directed by Lender in writing. Borrowers authorize Lender, at Lender's option, as attorney-in-fact for Borrowers, to commence, appear in and prosecute, in Lender's or any Borrower's name, any action or proceeding relating to any condemnation or other taking of the Property, or any part thereof, whether direct or indirect, and to settle or compromise any claim in connection with such condemnation or other taking. The proceeds of any award, payment or claim for damages, direct or consequential, in connection with any condemnation or other taking, whether direct or indirect, of the Property, or part thereof, or for conveyances in lieu of
·condemnation, are hereby assigned to and shall be paid to Lender.

(b)Borrowers authorize Lender to apply such  awards,  payments,  proceeds  or  damages, after the deduction of Lender's expenses incurred in the collection of such amounts, at Lender's option, to restoration or repair of the Property or to payment of the sums secured by this Instrument, whether or not then due, in the order  of application  set forth  in Paragraph  3 hereof, with the balance, if any, to Grantor. Unless  Borrowers  and  Lender  otherwise  agree  in  writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in Paragraphs 1 and 2 hereof or change the amount of such installments. Borrowers agree to execute such further evidence of assignment  of  any  awards,  proceeds,  damages or claims arising in connection with such  condemnation  or  taking  as  Lender  may require.

11.BORROWERS AND LIEN NOT RELEASED. From time to time, Lender, at the request of Borrowers, may at Lender's option, but without the consent of Guarantor or any of Guarantor's successors or assigns or of any junior lienholder or guarantors, without liability on Lender's part and notwithstanding any of the Loan Parties' breach of any covenant or agreement of any of the Loan Parties in this Instrument or any other Loan Document, extend the time for payment of said indebtedness or any part thereof, reduce the payments thereon, release anyone

liable on any of said indebtedness, accept a renewal note or notes therefor, modify the terms  and time of payment of said indebtedness, release from the lien of this Instrument any part of the Property, take or release  other or additional  security,  reconvey  any part of  the Property,  consent to any map or plan of the Property, consent to the granting  of any easement,  join  in any extension or subordination agreement, and agree in writing with Borrowers to modify the rate of interest or period of amortization of the Note or change the amount of the monthly installments payable thereunder; provided, however, that any such actions shall be at Lender's sole and  absolute discretion and Lender is under no obligation to do or perform any of the foregoing.  Any actions taken by Lender pursuant to the terms of this Paragraph 12 shall not affect the obligation of Borrowers or any of Borrowers' successors or assigns to pay the sums secured by this  Instrument and to observe the covenants of Borrowers contained herein, shall not affect the guaranty of any person, corporation, partnership or other entity for payment of the  indebtedness  secured  hereby, and shall  not affect the lien or priority of  lien  hereof on the Property.  Borrowers  shall pay Lender a reasonable service charge, together with such title insurance  premiums  and  attorney's  fees as may be incurred at Lender's option, for any such action if taken at Borrowers' request.

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12. 
FORBEARANCE BY LENDER NOT A WAIVER. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any  right or  remedy. The acceptance  by Lender  of payment of any sum secured by this Instrument after the due date of such payment shall not be a waiver of Lender's right to either require prompt payment when due of all other sums  so  secured  or  to declare a default for failure to make prompt payment. The procurement  of  insurance  or  the payment of taxes or other liens or charges by Lender shall not be a waiver of Lender's right to accelerate the maturity of the indebtedness secured  by this Instrument,  nor shall  Lender's  receipt  of any awards, proceeds or damages under Paragraphs  5 and  11  hereof  operate to cure or waive any Borrower's default in payment of sums secured by this Instrument.

13.ESTOPPEL CERTIFICATE. The Borrowers shall cause each Loan Party, within twenty (20) days of a written request from Lender, to furnish Lender with a written statement, duly acknowledged, setting forth the sums secured by this Instrument and any right of set-off, counterclaim or other defense which exists against such sums and the obligations of this Instrument, and attaching true, correct and complete copies of the Note, this Instrument and any other Loan Documents and any and all modifications, amendments and substitutions thereof.

14.UNIFORM COMMERCIAL CODE SECURITY AGREEMENT. This Instrument is intended to be a security agreement pursuant to the Uniform Commercial Code for any of the items specified above as part of the Property which, under applicable law, may be subject to a security interest pursuant to the Uniform Commercial Code, and each Borrower hereby grants, conveys and assigns to Lender a security interest in said items. Each Borrower agrees that Lender may file this Instrument, or a reproduction thereof, in the real estate records or other appropriate index, as a financing statement for any of the items specified above as part of the Property. Any reproduction of this Instrument or of any other security agreement or financing statement shall be sufficient as a financing statement. In addition, each Borrower hereby authorizes Lender to execute and deliver to the Secretary of State of the states in which such Borrower resides, is organized or incorporated or in which the Property is located, the county in which the Property is located, and any other offices necessary to perfect Lender's security interest, any financing statements, as well as extensions, continuations, renewals and

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amendments thereof, and reproductions of this Instrument in such form as Lender may require to perfect a security interest with respect to said items. Borrowers shall pay all costs of filing this Instrument, any other security agreement and such financing statements and any extensions, renewals, amendments and releases thereof, and shall pay all reasonable costs and expenses of any record searches for financing statements Lender may reasonably require. Without the prior written consent of Lender, Borrowers shall not create or suffer to be created pursuant to the Uniform Commercial Code any other security interest in said items, including replacements and additions thereto. Upon any Borrower's breach of any covenant or agreement of Borrowers contained in this Instrument, including the covenants to pay when due all sums secured by this Instrument, Lender shall have the remedies of a secured party under the Uniform Commercial Code and, at Lender's option, may also invoke the remedies provided in Paragraph 26 of this Instrument as to such items. Any sale made pursuant to the provisions of this Paragraph shall be deemed to have been a public sale conducted in a commercially reasonable manner if held contemporaneously with the sale of the other Mortgaged Property under power of sale as set forth in Paragraph 26 of this Instrument upon giving the same notice with respect to the sale of the Personal Property hereunder as is required for such sale of the other Mortgaged Property under power of sale set forth in Paragraph 26 of this Instrument, and such sale shall be deemed to be pursuant to a  security  agreement  covering  both  real  and  personal  property  under  Section 9.604(a) of the Uniform Commercial Code. In exercising any of said remedies, Lender may proceed against the items of real property and any items of personal property specified above as part of the Property separately or together and in any order whatsoever, without in any way affecting the availability of Lender's remedies under the Uniform Commercial Code or of the remedies provided.in Paragraph 26 of this Instrument.
15.. LEASES OF ANY OF THE PROPERTY. Grantor shall comply with and observe Grantor's obligations as Landlord under all Leases of the Property or any part thereof. Borrowers, at Lender's request, shall furnish Lender with executed copies of all Leases now existing or hereafter made of all or any part of the Property. All Leases above 10,000 square feet now or hereafter entered into will be in form and substance subject to the approval of Lender, such approval not to be unreasonably withheld. Leases below 10,000 square feet shall be on Grantor's standard lease form but will not require approval by the Lender. All Leases of the Property shall specifically provide that such Leases are subordinate to this Instrument, that the Tenant attorns to Lender, such attornment to be effective upon Lender's acquisition of title to the Property, that the Tenant agrees to execute such further evidences of subordination and attornment as Lender may frorn time to time request, that the attornment of the Tenant shall not be terminated by foreclosure, and that Lender may, at Lender's option, accept or reject such attornment. Upon request by Borrowers, Lender agrees to enter into an estoppel, subordination, non-disturbance and attornment agreement (in the form attached hereto and by reference made a part hereof as Exhibit C) at no additional expense or cost to the Loan Parties; provided, however, any costs, including legal costs, incurred by Lender due to changes to or negotiation of the attached form shall be at the sole cost and expense of Borrowers. Grantor shall not, without Lender's written consent, execute, modify, surrender or terminate, either orally or in writing, any Lease now existing or hereafter made of all or any part of the Property providing for a term of five (5) years or more, permit an assignment or sublease of such a Lease without Lender's written consent, or request or consent to the subordination of any Lease of all or any part of the Property to any lien subordinate to this Instrument. If any Borrower becomes aware that any Tenant proposes to do, or is doing, any act or thing which may give rise to any right of set-off against

rent, Borrowers shall (a) take such steps as shall be reasonably calculated to prevent the accrual of any right to a set-off against rent, (b) notify Lender thereof and of the amount of said set-offs, and (c) within ten (10) days after such accrual, reimburse the Tenant who shall have acquired such right to set-off or take such other steps as shall effectively discharge such set-off and as shall assure that rents hereafter due shall continue to be payable without set-off or deduction.

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16. 
REMEDIES CUMULATIVE. Each remedy provided in this Instrument  or  any  other Loan Document is distinct and cumulative to all other rights or remedies under this Instrument  or any other Loan Document or afforded by law or equity, and may be exercised concurrently, independently, or successively in any order whatsoever.

17.ACCELERATION IN CASE OF A LOAN PARTY'S INSOLVENCY. If any Loan Party shall voluntarily file a petition under Title 11 of the U.S. Code (the "Act") as such Act may from time to time be amended, or under any similar or successor Federal statute relating to bankruptcy, solvency, arrangements or reorganizations, or under any state bankruptcy or insolvency act, or file an answer in an involuntary proceeding admitting insolvency or inability to pay debts, or if any Loan Party shall fail to obtain a vacation or stay of involuntary proceedings brought for the reorganization, dissolution or liquidation of any Loan Party within ninety (90) days of the filing of such involuntary proceeding, or if any Loan Party shall be adjudged a bankrupt, or if a trustee or receiver shall be appointed for any Loan Pa1iy or any Loan Party's property, or if the Pi:operty shall become subject to the jurisdiction of a Federal bankruptcy court or similar state court, or if any Loan Party shall make an assignment for the benefit of such Loan Party's creditors, or if there is attachment, execution or other judicial seizure of any portion of any Loan Party's assets and such seizure is not discharged within thirty
(30)  days, then  all  of the sums  secured  by this Instrument  shall  be immediately  due and payable
without prior notice to any Loan Party, and Lender may invoke any remedies permitted  by Paragraph 26 of this Instrument. Any attorney's fees and other expenses incurred by Lender in connection with any Loan Party's bankruptcy or any of the other aforesaid  events  shall  be additional indebtedness of Borrowers secured by this Instrument pursuant to Paragraph 8 hereof.

18.TRANSFERS OR ENCUMBRANCE OF THE PROPERTY OR BENEFICIAL INTERESTS IN ANY LOAN PARTY. (a) Upon: (i) the sale or  transfer  of  (A)  all  or  any portion of the Property, or any interest therein, except as permitted  pursuant  to  Paragraph  37 below, or (B) any direct or indirect ownership interests in any of the Loan Parties  (if any of the  Loan Pa1iies is not a natural person or persons but is a corporation, partnership, limited liability company, trust or other legal entity); or (ii) the placing of any mortgage, lien, security interest,  pledge or other encumbrance on all or any portion of the Property or any direct  or  indirect ownership interest in any of the Loan Parties,  Lender  may,  at Lender's  option,  declare the Note and all of the sums secured by this Instrument to be immediately  due  and  payable,  and  Lender may invoke any remedies permitted by Paragraph 26 of this Instrument.

(b) If Borrowers or Guarantor shall at any time prior to repayment in full of the Loan desire to seek a merger or "roll-up" into another entity, Borrowers or Guarantor may, upon no less than thirty (30) days written request to Lender, seek approval for such merger or roll up from Lender prior to its occurrence and Lender agrees that it shall in good faith discuss with Borrowers and Guarantor the possibility of such merger or roll-up, but until such time as the Lender has exact information as to the parties involved, the creditworthiness of the parties

involved, the principals and management structure of  the  parties  involved,  the  transactional history of the parties involved (e.g. has any such new party previously filed  bankruptcy  or  defaulted on a loan with another third party lender), and any  such  other  information  which  Lender, in its commercially reasonable judgement, believes it requires, Lender will not be in a position to properly analyze or decide whether or not to grant such approval,  which approval  will  be granted or withheld in Lender's sole discretion.

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19. 
NOTICE. All notices, demands, requests or other communications to be sent by one party to the other hereunder or required by law shall be in writing and shall be deemed to have been validly given or served by delivery of the same in person to the intended addressee, or by depositing the same with Federal Express or another nationally known reputable private courier service for next business day delivery, or by depositing the same in the United States mail, postage prepaid, registered or certified mail, return receipt requested, in any event addressed to the intended addressee at its address set forth on the first page of this Instrument or at such other address as may be designated by such pa1iy as herein provided. All notices, demands, requests or other communications sent to any of the Loan Parties shall be sent with copy to Mark Torok, Esq., at 2909 Hillcroft, Suite 420, Houston, Texas 77057. All notices, demands and requests shall be effective upon such personal delivery, or one (1) business day after being deposited with the private courier service, or three (3) days after being deposited in the United States mail as required above. Rejection or other refusal to accept or the inability to deliver because of  changed address of which no notice was given as herein required shall be deemed to be receipt of the notice, demand or request sent. A notice or demand may be sent by attorneys for a party on behalf of such party. By giving to the other party hereto at least fifteen (15) days' prior written notice thereof in accordance with the provisions hereof, the parties hereto shall have the right from time to time to change their respective addresses and each shall have the right to specify as its address any other address within the United States of America.

20.SUCCESSORS AND ASSIGNS BOUND; JOINT AND SEVERAL LIABILITY; AGENTS; CAPTIONS. The covenants and agreements herein contained  shall  bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and Borrowers, subject to the provisions of Paragraph 19 hereof. All  covenants  and  agreements  of  Borrowers shall be joint and several. In exercising any rights hereunder or taking any actions provided for herein, Lender may act through  its  employees,  agents  or  independent  contractors  as authorized by Lender. The captions and headings of the paragraphs of this  Instrument  are for  convenience only and are not to be used to interpret or define the provisions hereof.

21.GOVERNING LAW; VENUE SEVERABILITY.  This Instrument shall be governed  by the law of the State of Texas. Borrowers hereby agree to the jurisdiction of and venue in the federal and state couiis of the State of Texas in Harris County, Texas. In the event  that  any provision of this Instrument, the Note or any of the other  Loan  Documents  conflicts  with applicable law, such conflict  shall  not affect  other provisions  of this  Instrument, the Note or any of the other Loan Documents which can be given effect without the conflicting provisions, and to this end the  provisions  of this  Instrument,  the Note and the other  Loan  Documents  are declared to be severable.

22.WAIVER OF STATUTE OF LIMITATIONS. To the extent permitted by law, Borrowers hereby waive the right to assert any statute of limitations as a bar to the enforcement

of the lien of this Instrument or to any action brought to enforce the Note or any other obligation secured by this Instrument.

23.WAIVER OF MARSHALLING. Notwithstanding the existence of any other security interests in any of the Property held  by Lender or  by any other  party,  Lender shall have the  right to determine the order in which any or all of the Property shall be subjected  to the  remedies provided herein. Lender shall  have the right to determine the order in which any or all portions of  the indebtedness secured hereby are satisfied from the proceeds realized upon the exercise of the remedies provided herein. Borrowers, any party who consents  to this  Instrument  and  any party who now or hereafter acquires a security interest in the Property and  who  has  actual  or constructive notice hereof, hereby waives any and all right to require the marshalling of assets in connection with the exercise of any of the remedies permitted by  applicable  law  or  provided herein.

24.ASSIGNMENT OF LEASES AND RENTS AND REVENUES; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION.

(a)    Notwithstanding anything contained in this Instrument to the contrary, this Instrument is subject to Chapter 64 of the Texas Property Code, entitled "Assignment of Rents to Lienholder" (hereinafter referred to as the "Texas Assignment of Rents Act"), and if there is any inconsistency between this Paragraph 25 and the Texas Assignment of Rents Act, the Texas Assignment of Rents Act shall control.

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(b)    
 
As part of the consideration for the indebtedness evidenced by the Note, Grantor hereby, effective immediately, absolutely and unconditionally collaterally GRANTS, BARGAINS, CONVEYS, ASSIGNS, TRANSFERS, and SETS OVER to Lender a lien and security interest in and to all: (i) Leases, now or hereafter made, of all or any portion of the Property and all security deposits made by tenants in connection with such Leases of any of the Property (ii) Rents and Revenues of the Property, including those now due, past due, or to become due by virtue of any Lease or other agreement for the occupancy or use of all or any part of the Property, regardless of to whom the Rents and Revenues of the Property are payable; (iii) of the rights and powers of Grantor under the Leases; (iv) existing and future claims and rights under any and all lease guaranties, letters of credit and any other credit support (individually, a "Lease Guaranty", and collectively, the "Lease Guaranties") given to Grantor by any guarantor in connection with any of the Leases; (v) claims and rights to the payment of damages and other claims arising from any rejection by a lessee of any Lease under the United States Bankruptcy Code (a "Bankruptcy Claim"); and (vi) proceeds from the sale or other disposition of the Leases, the Rents and Revenues, the Lease Guaranties, the Bankruptcy· Claims, and all other rights and benefits of Grantor as Lessor under the Leases and under the Lease Guaranties, plus all amendments, replacements, and renewals of the foregoing.
(c)    Lender and Lender's agents, after the occurrence and during the continuance of a Default (as defined in the Loan Agreement) and the delivery of a Rent Demand to Grantor or a Notice of Enforcement to Tenants (as such terms are defined in Paragraph 26 below) to Grantor pursuant to Paragraph 26 below, is hereby authorized  and  granted  the  right  to  collect  the aforesaid Rents and Revenues and hereby directs  each Tenant  of  the Property to pay such Rents and Revenues to Lender or Lender's agents; provided, however, that prior to the occurrence of a

Default and the delivery of a Rent Demand to Grantor or Notice of Enforcement to Tenants to Grantor pursuant to Paragraph 26 below, Grantor  may  collect  and  receive  all  Rents  and Revenues of the Property as agent for the benefit of Lender, to apply the Rents and Revenues so collected to the sums secured by this Instrument in the order provided in Paragraph  3 hereof  with the balance, so long as no such Default  has occurred,  to the  account  of  Grantor  with  Lender. Each Borrower agrees that commencing upon the occurrence of a Default  and delivery  of such  Rent Demand to Grantor or Notice of Enforcement  to Tenants  pursuant  to Paragraph  26  below, the Tenants of the Property shall make such rents payable to and pay such rents to Lender or  Lender's agents, without any liability on the part of said Tenants to inquire further as  to  the existence of a default by Borrowers. It shall not be necessary for Lender to institute  any type of  legal proceedings or take any other action  whatsoever  to  enforce  the  assignment  provisions  in this Paragraph 25. Rents and Revenues so actually received by Lender for any period prior to foreclosure or acceptance of a deed in lieu of such foreclosure shall be applied by Lender to the payment of the following (in such order and priority as Lender shall determine): (a) all expenses incident to taking and retaining possession  of the Property and/or  collecting  Rents  and Revenues as such becomes due and payable; (b) all operating expenses for the Property; and (c) the Loan. Neither this assignment nor the receipt of Rents and Revenues by Lender shall effect a pro tanto payment of the debt evidenced by, or arising under the Loan. Lender, after the occurrence and  during the continuance of a Default, at Lender's sole option, may also exercise, operate, modify, amend or terminate all such existing  Leases and enter  into and execute  new Leases  in Lender's  sole discretion.

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(d)    
 
All Notices of Enforcement shall be delivered to Tenants in accordance with the Texas Assignment of Rents Act. Upon receipt from Lender of a Notice of Enforcement, each Tenant is authorized and directed to pay directly to Lender all Rents and Revenues thereafter accruing, and the receipt of Rents and Revenues by Lender shall be a release of such Tenant to the extent of all amounts so paid. The receipt by a Tenant of a Notice of Enforcement shall be sufficient authorization for such Tenant to make all future payments of Rents and Revenues directly to Lender and each such Tenant shall be entitled to rely on the Notice of Enforcement and shall have no liability to Borrowers for any Rents and Revenues paid to Lender after receipt of the Notice of Enforcement. Notwithstanding the provisions of Section 64.058 of the Texas Assignment of Rents Act, Borrowers agree that Rents and Revenues so received by Lender for any period prior to foreclosure under this Instrument or acceptance of a deed in lieu of such foreclosure may be applied by Lender to the payment of the following (in such order and priority as Lender shall determine): (a) all expenses incident to taking and retaining possession of the Property and/or collecting Rents and Revenues as it becomes due and payable; (b) all operating expenses for the Property; and (c) the Loan. The Loan will not be reduced under this Paragraph 25 except to the extent, if any, that Lender actually receives and applies any Rents and Revenues to the Loan, it being recognized that there is no obligation by Lender to do so. Each Borrower further acknowledges that Lender shall have no obligation to apply any Rents and Revenues received  by Lender  toward  the  expenses  of protecting  or maintaining the Property.    Without impairing its rights hereunder, Lender may, at its option, at any time and from time to time, release to Borrowers any Rents and Revenues so received by Lender. As between Borrowers· and Lender, and any person or entity claiming through or under Borrowers, other than any Tenant who has not received a Notice of Enforcement, this collateral assignment is intended to be unconditionally, presently, and immediately effective. The Notice of Enforcement is intended solely for the benefit of the Tenants and shall never inure to the benefit of Borrowers or any

person claiming through or under Borrowers, other than a Tenant who  has  not  received  such Notice of Enforcement. It shall never be necessary  for  Lender to  institute  legal  proceedings  of any kind whatsoever to enforce the provisions of this Instrument. with respect to Rents and Revenues. BORROWERS SHALL HAVE NO RIGHT OR  CLAIM  AGAINST  ANY TENANT FOR THE PAYMENT OF ANY RENTS TO LENDER HEREUNDER AND BORROWERS SHALL INDEMNIFY, DEFEND, AND HOLD FREE AND HARMLESS EACH TENANT FROM AND  AGAINST  ALL  LIABILITY,  LOSS,  COST,  DAMAGE,  OR EXPENSE SUFFERED OR INCURRED  BY  SUCH  TENANT  BY  REASON  OF  SUCH TENANT'S COMPLIANCE WITH ANY NOTICE OF ENFORCEMENT.

(e)    At any time during which Grantor is receiving Rents and Revenues directly from any of the Tenants, Grantor shall, upon receipt of written direction from Lender, make demand and/or sue for all Rents and Revenues due and payable under one or more Leases, as directed by Lendei', as it becomes due and payable, including Rents and Revenues that are past due and unpaid. If Grantor fails to take such action, or at any time during which Grantor is not receiving Rents and Revenues directly from Tenants, Lender may, without obligation, demand, collect, and sue for, in its own name or in the name of Grantor, all Rents and Revenues due and payable under the Leases, as they become due and payable, including Rents and Revenues that are past due and unpaid.

		
	(f)
	Each Borrower represents and warrants that:

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(i) 
Grantor has good title to the Leases and Rents and Revenues  and  authority to assign and grant a security interest in the property described above,  and  no other  person  or  entity has any right, title or interest therein;

(ii)all existing Leases are valid, unmodified and  in  full  force  and  effect, except as indicated herein or in a separate document provided to Lender by Borrowers, and to Borrowers' knowledge, no default exists thereunder;

(iii)unless otherwise provided herein, no Rents  and  Revenues  have  been  or will be assigned, mortgaged or pledged;

(iv)no Rents and Revenues have been or will be anticipated, waived, released, discounted, set off or compromised except for prudent business reasons; and

(v)Grantor has not executed any prior  assignment  of  said  Rents  and Revenues, that Borrowers have not performed, and will not perform,  any  acts  or  have  not executed, and will not execute, any instrument which would prevent Lender from exercising  its rights under this Paragraph 25, and that at the time of execution  of this Instrument  there has  been no anticipation or prepayment of any of the Rents  and  Revenues  of the Property for  more  than  one (I) month prior to the due dates of such rents.

		
	(g)
	Each Borrower hereby covenants that:

(i)    Grantor will execute and deliver to Lender such further  assignments  of Rents and Revenues of the Property as Lender may from time to time request;

		
	(ii)
	Grantor will perform all of its obligations under the Leases;

		
	(iii)
	Grantor will enforce the Tenant's obligations under the Leases;

(iv)    Grantor will defend, at Grantor's expense, any proceeding pertaining to the Leases, including, if Lender so requests, any such proceeding to which Lender is a party;

(v)    Grantor will neither create  nor permit  any encumbrance  upon  its  interest as lessor of the Leases, except this Instrument and any other encumbrances permitted by this Instrument;

(vi)    if any Borrower collects or receives Rents and Revenues that Lender is entitled to collect and receive under this Paragraph  or  applicable  law,  Borrowers  shall  deliver such Rents and Revenues to Lender immediately upon receipt or upon demand by Lender; and

(vii)    Grantor shall assign and add Lender as an additional beneficiary to all letters of credit given by tenants of the Property to Grantor as security for a Lease.

		
	(h)
	Borrowers shall not, without the prior written consent of Lender:

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(i) 
hereafter collect or accept payment of any Rents and Revenues of the more than one (1) month prior to the due dates of such rents receive or collect Rents more than one (1) month in advance;

		
	(ii)
	encumber or assign future Rents and Revenues;

(iii)waive or release any obligation of any Tenant under the Leases except for prudent business reasons;

(iv)permit any assignment of the Leases or of any other property pledged to Lender under this Paragraph 25; or

(v)cancel, terminate, or modify any of the Leases; cause or permit any cancellation, termination or surrender of any of the Leases; or commence any proceedings for dispossession of any tenant under any of the Leases, except upon default by the tenant thereunder or except for prudent business reasons.

(i) Upon the occurrence and continuance of a Default, Lender shall be entitled to the appointment of a receiver for the Property and Lender may in person, by agent or by a court­ appointed receiver, regardless of the adequacy of Lender's security, enter upon and take  and maintain full control of the Property in order to perform all acts necessary and appropriate for the operation and maintenance thereof including, but not limited to, the execution, cancellation or modification of Leases, the collection of all Rents and Revenues of the Property, the making of repairs to the Property and the execution or termination  of  contracts  providing  for  the management or maintenance of the Property, all on such terms as are deemed best to protect the security of this Instrumeht; provided, however, that Lender  shall  be  under  no  obligation  to appoint or seek to have appointed a receiver prior to the exercise of its  rights  hereunder.  In the event Lender elects to seek the appointment of a receiver for the Property upon any Loan Party's

default of any covenant or agreement under this Instrument or any other Loan Document, Borrowers hereby expressly consent to the appointment of such receiver. Lender or the receiver shall be entitled to receive a reasonable fee for so managing the Property.

U)   All  Rents  and Revenues  collected  subsequent  to a Default shall  be applied  first to the costs, if any, of taking control of and managing the Property and collecting the Rents and Revenues, including, but not  limited  to,  attorney's  fees, receiver's fees, then to the sums  secured by this Instrument, then to premiums on receivers bonds, costs of  repairs  to  the  Property, premiums on insurance policies, taxes, assessments and other charges on the Property,  and  the  costs of discharging any obligation or liability of Grantors as lessor or landlord of the Property. Lender or, the receiver shall have access to the books and records used in the operation and maintenance of the Property and shall be liable to account only for those Rents and Revenues actually received. Lender shall not be liable to Borrowers, anyone claiming under or through Borrowers or anyone having an interest in the Property or any other Loan Party by reason of anything done or left undone by Lender under this Paragraph 25.

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(k) 
If the Rents and Revenues of the Property are  not sufficient  to meet the costs,  if any, of taking control of and managing the Property and collecting the Rents and Revenues, any funds expended by Lender for such purposes shall be added to the indebtedness of Borrowers to Lender secured by this Instrument pursuant to Paragraph 8 hereof. Unless Lender and Borrowers agree in writing to other terms of payment, such amounts shall be  payable  upon  notice  from Lender to Borrowers requesting payment thereof and shall bear interest from the date of disbursement at the rate stated in the Note unless payment of interest at  such  rate  would  be contrary to applicable law, in which event such amounts shall bear  interest  at the  highest  rate which may be collected from Borrowers under applicable law.

(I)    Any entering upon and taking and maintaining of control  of  the  Property  by Lender or a receiver and any application of rents as provided herein shall not cure or waive any default hereunder or invalidate any other right or remedy of Lender under applicable law or  provided herein.

(m)Lender's acceptance of this assignment shall not, prior to entry upon and taking possession of the Property by Lender, be deemed to constitute Lender a "mortgagee in possession," nor obligate Lender to appear in or defend any proceedings relating to any of the Leases or to the Property, take any action hereunder, expend any money, incur any expenses, or perform any obligation or liability under the Leases, or assume any obligation for any deposits delivered to Borrowers by any Tenant and not delivered to Lender. Lender shall not be liable for any injury or damage to any person or prope1iy in or about the Property.

. (n)  EACH  BORROWER  HEREBY  INDEMNIFIES  AND  HOLDS  LENDER (WHICH SHALL INCLUDE THE DIRECTORS, OFFICERS, PARTNERS, EMPLOYEES, REPRESENTATIVES, ATTORNEYS AND AGENTS OF LENDER AND ANY PERSONS OR ENTITIES OWNED OR CONTROLLED BY, OWNING OR CONTROLLING, OR UNDER COMMON CONTROL OR AF_FILIA TED WITH LENDER) HARMLESS FROM ALL LIABILITY, DAMAGE OR EXPENSE IMPOSED ON OR INCURRED BY LENDER FROM ANY CLAIMS UNDER THE LEASES. IN ADDITION, BORROWERS SHALL HAVE NO RIGHT OR CLAIM AGAINST ANY LESSEE FOR THE PAYMENT OF ANY

RENT   TO    LENDER    PURSUANT  TO   PROVISIONS    IN PARAGRAPH 25 OF THIS
INSTRUMENT. The foregoing indemnities shall not terminate upon the foreclosure,  release  or other termination of this Instrument  but will survive foreclosure  of this Instrument  or conveyance in lieu of foreclosure and the repayment of the Indebtedness and the discharge and release of this Instrument and the other Loan Documents.

(o)    There shall be no merger of the leasehold  estate, created  by the Leases,  with the  fee estate of the Land without prior written consent of Lender.

(p)    Grantor hereby irrevocably authorizes and directs the Tenants under the Leases to pay Rents and Revenues to Lender upon written demand by Lender after the occurrence of any Default, without further consent of Grantor, and the Tenants may rely upon any written statement delivered by Lender to the Tenants. Any such payment to Lender shall constitute payment to Grantor under the Leases. The assignment of Rents and Revenues set forth in Paragraph 25 is not contingent upon any notice or demand by Lender to the Tenants.

(q)    Upon payment in full of the Loan and  the delivery  and  recording  of a release of the Instrument lien created by this Instrument duly executed by Lender, the  assignments  and security interest described above in this Paragraph 25 shall  become  null and void  and shall  be of no further force and effect.

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(r)    
 
Failure or discontinuance by Lender, at any time or from time to time, to collect Rents and Revenues shall not in any manner impair the subsequent enforcement by Lender of the right, power and the authority herein conferred upon Lender.

		
	25.
	DEFAULT; ACCELERATION; REMEDIES; FORECLOSURE.

(a)    The term "Default" is defined in and shall have the meaning given it in the Loan Agreement

(b)    Upon the occurrence and during the continuance of a Default, Trustee, or the Trustee's successor or substitute, is hereby  authorized  and  empowered,  and  it shall  be Trustee's, or the Trustee's successor or substitute's, special duty, upon such request of Lender, to sell the Property, or any part thereof, at public auction to the highest bidder for cash,  with  or  without having taken possession of same. Any such sale (including notice thereof) shall comply with the applicable requirements, at the time  of the sale, of Section  51.002  of the Texas  Property  Code or, if and to the extent such statute is not then  in force,  with the applicable  requirements,  at the time  of the sale, of the successor statute or statutes, if any,  governing  sales  of  Texas  real  property under powers of sale conferred by deeds of trust.  If there  is no statute  in force  at the time of the sale governing sales of Texas real property under powers  of  sale  conferred  by  deeds  of  trust, such sale shall comply with applicable law, at the time of the sale, governing sales of Texas real property under powers of sale conferred by  deeds  of  trust.  Alternatively,  Lender,  or  Trustee, upon written request of Lender, may proceed by suit or suits, at law or in equity, to enforce the payment of the Loan and the performance and discharge of the Borrowers'  obligations  in accordance with the terms hereof, of the Note, and the other  Loan  Documents,  to foreclose  the liens and security interests of this Instrument as against  all  or  any part of  the  Property,  and to have all or any part of the Property sold under the judgment or decree of a court of competent

jurisdiction. This remedy shall be cumulative of any other  nonjudicial  remedies  available  to Lender with respect to the Loan  Documents.  Proceeding  with a request or receiving  a judgment  for legal relief shall not be or be deemed to be an election of remedies or bar any available nonjudicial remedy of Lender.

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(c)    
 
Trustee may sell all or any portion of the Property, together  or  in  lots or parcels, and may execute and deliver to the purchaser or purchasers of such property good and sufficient deeds of conveyance of fee simple title with covenants of general warranty made on behalf of Grantor.  In  no event shall Trustee  be required to exhibit,  present  or display  at any such sale any  of the personalty described herein to be sold at such sale.  The sale by Trustee  of  less than  the whole of the 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 Property shall be sold; and, if the proceeds of such sale  of  less than  the  whole  of the  Property shall be less than the aggregate of the indebtedness secured  hereby  and the expense  of executing this trust as provided herein, this Instrument and the lien hereof shall  remain  in full  force  and  effect as to the unsold portion of the Property just as though no sale had been made; provided, however, that  Borrowers  shall  never  have any  right to require the sale of less than the whole of  the Property but Lender shall have the right, at  its sole  election,  to  request  Trustee  to sell  less than the whole of the Property. Trustee may, after  any  request  or direction  by Lender,  sell  not only the real Property but also the personalty and other items of the  Property  which  under applicable law are subject to a security interest under the Uniform Commercial Code and other interests which are a part of the Property, or any  part thereof,  as a  unit and  as a part of a single  sale, or may sell any part of the Prope1iy separately from  the remainder  of the Prope1iy.  It shall  not be necessary for Trustee to have taken possession of any part of  the  Property  or  to  have present or to exhibit at any sale any of the Property. After each sale, Trustee shall make to the purchaser or purchasers at such sale good and sufficient conveyances in the name of Grantor, conveying the property so sold to the purchaser or purchasers with general warranty of title by Grantor (but subject to such leases and other matters, if any, as Trustee may elect upon request of Lender), and shall receive the proceeds of said sale or sales  and  apply  the  same  as  herein provided. Payment of the purchase price to the Trustee shall satisfy the obligation of purchaser at such sale therefor, and such purchaser shall not be responsible for the application thereof.  The  power of sale granted herein shall not be exhausted by any sale held hereunder by Trustee or his substitute or successor, and such power of sale may be exercised from time to time and as many times as Lender may deem necessary until all of the Property has been duly sold and all secured indebtedness has been fully paid.  In the  event any  sale hereunder  is not completed  or is defective in the opinion of Lender, such sale shall  not exhaust  the  power  of sale  hereunder  and  Lender shall have the right to cause a subsequent sale or sales to be made hereunder.  Any  and  all statements  of fact or other  recitals made  in any deed  or deeds given by Trustee  or any successor  or substitute appointed hereunder as to nonpayment of the secured indebtedness or as to the occurrence of any Default, or as to Lender's  having declared  all of said  indebtedness  to  be due  and payable, or as to the request to sell, or as to notice of time, place and terms of sale and the properties to be sold having been duly given, or as to the refusal, failure or  inability  to act  of Trustee or any substitute or successor trustee, or  as  the  appointment  of  any  substitute  or successor trustee, or as to any other act or thing having been duly done by Lender or by such  Trustee, substitute or successor, shall be taken as primafacie evidence of the truth of the facts so stated and recited. The Trustee or the Trustee's  successor  or substitute  may  appoint  or  delegate any one or more persons as agent to perform any act or acts necessary or incident to any sale

held by Trustee, including the posting of notices and the conduct of sale, but in the name and on behalf of Trustee, the Trustee's successor or substitute. If Trustee or the Trustee's successor or substitute shall have given notice of sale hereunder, any successor or substitute Trustee thereafter appointed may complete the sale and the conveyance of the property pursuant thereto as if such notice had been given by the successor or substitute Trustee conducting the sale.

(d)    Trustee may receive bids at the Trustee's sale from the Lender and may accept from Lender as a successful bidder a credit against the Loan as payment of any portion of the purchase price.

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(e)    
 
At any time during the bidding  pursuant  to  a sale as described  in this Paragraph  26, the Trustee may require a bidding party (i) to disclose its  full  name,  state  and  city  of residence, occupation, and specific business office location, and the name and address of the principal the bidding party is representing (if applicable), and (ii) to demonstrate  reasonable evidence of the bidding party's financial ability (or, if applicable, the financial ability  of  the principal of such bidding party), as a condition to the bidding party submitting bids at  the foreclosure sale. If any such  bidding  party (the  "Questioned  Bidder")  declines  to comply  with  the Trustee's requirement in this regard, or if such Questioned  Bidder  does  respond  but  the Trustee, in Trustee's sole and absolute discretion, deems the information or the evidence of the financial ability of the  Questioned  Bidder  (or, if applicable,  the principal  of such  bidding party)  to be inadequate, then the Trustee may continue the bidding with reservation; and in such event
(A) the Trustee shall be authorized to caution the Questioned Bidder concerning  the  legal obligations to be incurred in submitting bids, and (B) if the Questioned Bidder is not the highest bidder at the sale, or if having been the highest bidder  the Questioned  Bidder fails to deliver the cash purchase price payment promptly to the Trustee, all bids  by the Questioned  Bidder shall  be null and void. The Trustee may, in Trustee's sole  and  absolute discretion, determine  that a credit  bid may be in the best  interest  of Borrowers  and  Lender,  and  elect to sell the Property for credit or for a combination of cash and credit; provided, however, that the Trustee  shall  have  no obligation to accept any bid except an all  cash  bid.  In the event the Trustee  requires  a cash  bid and cash is not delivered within a reasonable time after conclusion of the bidding process, as specified by the Trustee, but in no event later  than  3:45 p.m.  local time on the day of sale,  then  said contingent sale shall be null and void, the bidding process may be recommenced, and any subsequent bids or sale shall be made as if no prior bids were made or accepted.

(f)    Trustee shall deliver to the purchaser a Trustee's deed conveying the Property so sold in fee simple with covenants of general warranty. Borrowers covenant and agree to defend generally the purchaser's title to the Property against all claims and demands. The recitals in Trustee's deed shall be prima facie evidence of the truth of the statements contained therein. Trustee shall apply the proceeds of the sale in the following order, (i) to all reasonable costs and expenses of the sale, including, but not limited to, reasonable Trustee's fees and attorney's fees and costs of title evidence, (ii) to all sums secured by this Instrument in such order as Lender, in Lender's sole discretion, directs, and (iii) the excess, if any, to the person or persons legally entitled thereto.

(g)    If the Property is sold pursuant to this  Paragraph  26,  Grantor  or  any  person holding possession of the Prope1iy  through  Grantor  shall  immediately  surrender  possession  of the Property to the purchaser at such sale upon the purchaser's written demand. If possession is

not surrendered upon the purchasers written demand, Grantor or such person shall be a tenant at sufferance and may be removed by will of possession or by an action for  forcible  entry  and detainer.

(h)    Whether or not foreclosure is commenced by Trustee,  Lender  may  at  any  time after a Default occurs institute suit for collection  of all or any part  of the Loan  or foreclosure  of  the lien of this Instrument or both.

(i)    If, following the occurrence of a Default, and an  acceleration  of the Loan  or any part thereof, but prior to a foreclosure sale of the Property, Borrowers shall tender to Lender the payment of an amount sufficient to satisfy the entire Loan or the part thereof which has been accelerated, such tender shall be deemed a voluntary prepayment pursuant to the Loan and, accordingly, Borrowers, to the extent permitted by applicable law, shall also pay to Lender the premium, if any, then required under the Loan Documents in order to exercise the prepayment privilege contained therein.

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U) Notwithstanding anything contained in this Instrument  or  any  other  Loan Document to the contrary, in the event there shall occur any amendments, modifications or other changes to the Texas Property Code, the Uniform Commercial Code, or any other statute or law governing or applicable to the enforcement of this Instrument or any other Loan Document, which amendments, modifications or other changes contain different enforcement rights, remedies, duties or obligations than set forth in this Instrument or any other Loan Document, then the Lender's and/or Trustee's following and/or observing of such then current amended, modified or changed Texas Property Code, Uniform Commercial Code or other applicable statutes or laws shall be permitted and sufficient to enforce Lender's rights under this Instrument and all other Loan Documents and shall be deemed compliance in full with the terms and provisions of this Instrument and all other Loan Documents.

(k)Grantor has, pursuant to the assignment of Leases and Rents and  Revenues  contained in this Instrument, assigned to Lender all Rents and Revenues under each of the Leases covering all or any portion of the Property. Upon and  during  the  continuance  of  a  Default, Lender, or Trustee on Lender's behalf, may at any time, and without notice, either in.person, by agent, or by receiver to be appointed by a court, enter and take possession  of the Property  or any part thereof, and in its own name, sue for or otherwise collect the Rents  and  Revenues  in accordance with the assignment of Leases and Rents and  Revenues  contained  in this Instrument  and the Texas Assignment  of Rents Act.  Lender  may (in its sole discretion),  upon the occurrence of a Default, deliver a written notice from Lender or the Trustee to  Borrowers  instructing  Borrowers to deliver to Lender all accruing Rents and Revenues and all Rents and Revenues that have accrued but are unpaid (a "Rent Demand") to Grantor or deliver a notice in substantially the form set forth in Section 64.056  of the Texas Assignment  of Rents Act sent by Lender  or Trustee  to a Tenant demanding payment by the Tenant to Lender of all  unpaid  accrued  Rents  and Revenues and  all  unaccrued  Rents and Revenues  as they accrue (a "Notice of Enforcement")  to  all or any of the Tenants. Borrowers agrees that pursuant to Section 64.002(a)(3) of the Texas Assignment of Rents Act, any Rent Demand sent  by Lender  may be sent to  Grantor  pursuant  to the notice provisions set forth in this Instrument. As described in Section 64.060 of the Texas Assignment of Rents Act, Grantor shall, within ten days after its  receipt  of  a  Rent  Demand, deliver to Lender such Rents and Revenues that any Borrower has received as are described in

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the Rent Demand. All Rents and Revenues collected by Lender, or Trustee  acting on  Lender's behalf, shall be applied as provided for in the assignment of Leases and Rents and Revenues contained in this Instrument; provided, however, that if the costs,  expenses,  and  attorneys'  fees shall exceed the amount of Rents and Revenues collected, the excess shall be added to the Loan,  shall bear interest at the Default Rate (as defined in the Note), and shall be immediately due and payable. The entrance upon and possession of  the  Property,  the  collection  of  Rents  and Revenues, and the application thereof as set forth above shall not cure or waive  any Default  or notice of default, if any, hereunder nor invalidate any action pursuant to such notice. Failure or discontinuance by Lender, or Trustee on Lender's behalf, at any time or from time  to time,  to  collect said Rents and Revenues shall not in any manner impair the subsequent enforcement by Lender, or Trustee on Lender's behalf, of the right, power, and authority herein conferred upon it. Nothing contained herein, nor the exercise of any right, power, or authority herein  granted  to Lender, or Trustee on Lender's  behalf,  shall  be, or shall  be construed  to  be, an affirmation  by  it of any tenancy, lease, or option, nor  an  assumption  of  liability  under,  nor the subordination  of, the lien or charge of this Instrument, to any such tenancy, lease, or option, nor  an election  of  judicial relief, if any such relief is requested or  obtained  as to  Leases  or  Rents  and  Revenues, with respect to the Property or any collateral given by any Borrower to Lender.  In addition, from time to time, Lender may elect, and notice hereby is given to each Tenant of such right, to subordinate the lien of this Instrument to any Lease by unilaterally executing and recording an instrument of subordination, and upon such election, the lien of  this  Instrument  shall  be subordinate to the Lease identified in such instrument  of  subordination;  provided,  however,  in each instance, such subordination will not affect or be applicable  to (and  will expressly  exclude any) lien, charge, encumbrance, security interest,  claim,  easement,  restriction,  option, covenant, and other rights, titles, interests, or estates of any nature regarding all or any  portion  of  the  Property to the extent that the same may have arisen or intervened during the period between the recordation of this Instrument and the execution of the Lease identified in such instrument of subordination.
(1)    Upon the occurrence and during the continuance of a Default, Lender may (but shall have no obligation to do so) notify, or require Borrowers to notify, any debtor(s) under any account (as defined in the Uniform Commercial Code) that the said debt has been assigned to Lender and direct such debtor(s) to make payments on said debt directly to Lender. To the  extent Lender does not so elect, Borrowers shall continue to collect the amounts due under all accounts. Lender or its designee shall also have the right, in its own name or in the name of Borrowers, to do any of the following: (i) to demand, collect, receipt for, settle, compromise any amounts due, give aquittance for, prosecute or defend any action which may be in relation to any monies due or to become due by virtue of, the accounts; (ii) to sell, transfer, or assign or otherwise deal in the accounts or the proceeds thereof or the relative goods, as fully and effectively as if Lender were the absolute owner thereof; (iii) to extend the time of payment of any of the accounts, to grant waivers and make any allowance or other adjustment with reference thereto; (iv) to endorse the name of the Borrower on notes, checks or other evidences of payments on any portion of the Property that may come into possession of Lender; (v) to take control of cash and other proceeds of any portion of the Property; (vi) to sign the name of Borrowers on any invoice or bill of lading relating to any portion of the Property, or any drafts against account debtor or other persons making payment with respect to any portion of the Property; (vii) to send a request for verification of obligations or accounts to any account debtor; and (viii) to do all other acts and things necessary to carry out the intent of this Instrument. Any

exercise by Lender of  its rights in and  to any portion  of the Property shall, as may be applicable,  be a full and complete release, discharge and aquittance of the account debtor with respect to any payment made to Lender, and Borrowers shall take any action as may be required by Lender in connection  therewith.  No account debtor on any account shall ever  be bound to make inquiry  as   to the termination of this Instrument or the rights of Lender to act hereunder, but shall be fully protected by Borrowers in making payment directly to Lender.

(m)   If a Default shall have occurred and be continuing, the Lender shall have the right to setoff and apply against the Loan in such manner as the Lender may determine, at any time and without notice to the Borrowers, any and all deposits (general or special, time or demand, provisional or final) or other sums at any time credited by or owing from the Lender to any Borrower whether or not the Loan is then due. As fmiher security for the Loan, the Borrowers hereby grants to the Lender a security interest in al money, instruments, and other property of the Borrowers now or hereafter held by the Lender, including, without limitation, property held in safekeeping. In.addition to the Lender's right of setoff and as further security for the Loan, each Borrower hereby grants to the Lender a security interest in all deposits (general or special, time or demand, provisional or final) and other accounts of any Borrower now or hereafter on deposit with or held by the Lender and all other sums at any time credited by or owing from the Lender to any Borrower. The rights and remedies of the Lender hereunder are in addition to other rights and remedies (including, without limitation, other rights of setoff) which the Lender may have.

		
	26.
	WAIVER OF DEFICIENCY STATUTE

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(a)    
 
In the event an interest in the Property is foreclosed upon pursuant to a judicial or nonjudicial  foreclosure  sale,  Borrowers  agree as follows:    notwithstanding the provisions of Sections 51.003, 51.004, and 51.005 of the Texas Property Code (as the same may be amended from time to time), and to the extent permitted by law, Borrowers agree that Lender shall be entitled to seek a deficiency judgment from Borrowers and/or any other party obligated on the indebtedness evidenced by the Note and/or other sums secured by this Instrument equal to the difference between the amount owing on such indebtedness and the amount for which the · Property  was sold  pursuant  to judicial  or  nonjudicial foreclosure sale.    Borrowers expressly recognize that this Subparagraph 27(a) constitutes a waiver of the above-cited provisions of the Texas Property Code which would otherwise permit Borrowers and other persons against whom recovery of deficiencies is sought or any guarantor independently (even absent the initiation of deficiency proceedings against them) to present competent evidence of the fair market value of the Property as of the date of the foreclosure sale and offset against any deficiency the amount by which the foreclosure sale price is determined to be less than such fair market value. Borrowers further recognize and agree that this waiver creates an irrebuttable presumption that the foreclosure sale price is equal to the fair market value of the Property for purposes of calculating deficiencies owed by Borrowers and/or others against whom recovery of a deficiency is sought.
(b)    Alternatively, in the event the waiver provided for in Subparagraph 27(a) above is determined by a court of competent jurisdiction to be unenforceable, the following shall be the basis for the finder of fact's determination of the fair market value of the Prope1iy as of the date of the foreclosure sale in proceedings governed by Sections 51.003, 51.004 and 51.005 of the Texas Prope1iy Code: (i) the Property shall be valued in an "as is" condition as of the date of  the foreclosure sale, without any assumption or expectation that the Property will be repaired or

improved in any manner  before a resale of the Property  after foreclosure;  (ii) the valuation  shall  be based upon an assumption that the foreclosure purchaser  desires a resale  of the Prope1iy for  cash promptly (but not later than twelve (12) months) following the foreclosure sale; (iii) all reasonable closing costs customarily borne by the seller in commercial real estate  transactions should be deducted from the gross fair market  value  of  the  Property,  including,  without limitation, brokerage commissions, title insurance, surveys of the Prope1iy,  tax  prorations, attorneys' fees, and marketing costs; (iv) the gross fair market value  of  the  Property  shall  be further discounted to account for any estimated holding costs associated with maintaining the Property pending sale, including,  without  limitation,  utilities  expenses,  property  management fees, taxes and assessments (to the extent not accounted  for  in  (iii)  above),  and  other maintenance, operational and ownership expenses; and (y) any expert opinion testimony given or considered in connection with a determination of the fair market value of the Property  must  be given by persons having at least five (5) years' experience in appraising property similar to the Property and who have conducted and prepared a complete  written  appraisal  of  the  Property taking into consideration the factors set forth above.

27.SUBSTITUTE TRUSTEE. Lender, at Lender's option,  with  or  without  cause,  may from time to time remove Trustee and appoint a successor trustee to any Trustee appointed  hereunder by an instrument recorded in the county in which this Instrument is recorded. Without conveyance of the Property, the successor trustee shall succeed to all the title, power and duties conferred upon the Trustee herein and by applicable law.

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	28.
	 
KNOW YOUR CUSTOMER

(a)    As used in this Instrument the following phrases have the following meaning:

(i)    "Beneficial Ownership Certification" means a certification regarding beneficial ownership required  by the Beneficial Ownership Regulation, which certification shall  be substantially in form and substance satisfactory to Lender.

		
	(ii)
	"Beneficial Ownership Regulation" means 31 C.F.R. § 1010.230.

(b)    Lender hereby notifies Borrowers that pursuant to the requirements of the USA PATRIOT Act (Title Ill of Pub. L. 107-56 (signed into law October 26, 2001 )) (the "Act"), it is required to obtain, verify and record information that identifies Borrowers, which information includes the name and address of Borrowers and other information that will allow Lender to identify Borrowers in accordance with the Act. Borrowers shall, promptly following a request by Lender, provide all documentation and other information that Lender requests in order to comply with its ongoing obligations under applicable "know your customer" and anti-money laundering rules and regulations, including the Act. For legal entity borrowers, Lender will require the legal entity to provide identifying information about each beneficial owner and/or individuals who have significant responsibility to control, manage or direct the legal entity.

(c)    Borrowers represent and warrant to Lender that the information included in the Beneficial Ownership Certification delivered by Borrower to Lender is true and correct in all respects.

(d)    Promptly following any request therefor, Borrowers shall provide to Lender information and documentation reasonably requested by Lender for purposes of compliance with applicable "know your customer" requirements under the  PATRIOT  Act,  the  Beneficial Ownership Regulation or other applicable anti-money  laundering  laws,  including  but  not limited to a Beneficial Ownership Certification form acceptable to Lender.

29.RELEASE. Upon payment of all sums owing under the Loan or if Borrowers are in compliance with Section 37 below, Lender shall release this Instrument. Borrowers shall pay Lender's reasonable costs incurred in releasing this Instrument and  any  related  financing statements.

30.SUBROGATION. Any of the proceeds of the Note utilized to take up or pay any outstanding liens against all or any part of the Property have been advanced by Lender  at  Borrowers' request and upon Borrowers' representation  that  such  amounts  are  due  and  are secured by valid liens against the Property. Lender shall be subrogated to  any  and  all  right, superior titles, liens and equities owned or claimed  by any owner  or holder  of any outstanding  liens and debts, however remote, regardless of whether said  liens  or  debts  arc  acquired  by  Lender, by assignment or are released by the holder thereof upon payment.

31.PARTIAL INVALIDITY. In the event any portion of the sums intended to be secured by this Instrument cannot be lawfully secured hereby, payments in reduction of such sums shall be applied first to those portions not secured hereby.

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32. 
FUTURE ADVANCES. Upon  request  of  Borrowers,  Lender,  at  Lender's  option,  so long as this Instrument secures indebtedness held by Lender, may make Future Advances to Borrowers. Such Future Advances, with interest thereon, shall be secured by this Instrument.

		
	33.
	INDEMNITY

(a)    Borrowers shall, jointly and severally, at their sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Parties (as defined below) from and against any and all claims, suits, liabilities (including, without limitation, strict liabilities), actions, proceedings, obligations, debts, damages (except consequential damages), losses, costs, expenses, fines, penalties, charges, fees, expenses, judgments, awards, amounts paid in settlement, punitive damages (including, but not limited, to reasonable attorneys' fees and other costs of defense) (collectively, the "Losses") imposed upon or incurred by or asserted against any Indemnified Parties and directly or indirectly arising out of or in any way relating to any one or more of the following: (i) ownership of this Instrument, the Property or any interest therein or receipt of any Rents and Revenues; (ii) any amendment to, or restructuring of, the Loan, the Note, this Instrument, or any other Loan Documents requested by Borrowers; (iii) any and all lawful action that may be taken by Lender in connection with the enforcement of the provisions of this Instrument, the Note or any of the other Loan Documents, whether or not suit is filed in connection with same, or in connection with any Loan Party or indemnitor and/or any partner, joint venturer or shareholder thereof becoming a party to a voluntary or involuntary federal or state bankruptcy, insolvency or similar proceeding; (iv) any accident, injury to, or death of, persons or loss of or damage to property occurring in, on or about the Property or any pa1i thereof or on the adjoining sidewalks or curbs; (v) any use or condition in,. on or about the

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Property or any part thereof or on the adjoining sidewalks or curbs; (vi) any failure on the part of any of the Loan Parties to perform or be in compliance with any of the terms of this Instrument, the Note or any of the other Loan Documents; (vii) performance of any labor or services or the furnishing of any materials or other prope1iy in respect of the Property or any part thereof; (viii) the failure of any person to file timely with the Internal Revenue Service an accurate Form 1099- B, Statement for Recipients of Proceeds from Real Estate, Broker and Barter Exchange Transactions, which may be required in connection with this Instrument, or to supply a copy thereof in a timely fashion to the recipient of the proceeds of the transaction in connection with which this Instrument is made; (ix) any failure of the Property to be in compliance with any applicable laws; (x) the enforcement by any Indemnified Party of the provisions of this Paragraph 34; (xi) any and all claims and demands whatsoever which may be asserted against Lender by reason of any alleged obligations or unde1iakings on its part to perform or discharge any of the terms, covenants, or agreements contained in any Lease; (xii) the payment of any commission, charge or brokerage fee to anyone claiming through any of the Loan Pa1iies which may be payable in connection with the funding of the Loan; or (xiii) any misrepresentation made by any of the Loan Parties in any other Loan Document. Any amounts payable to Lender by reason of the application of this Paragraph 34 shall become .due and payable upon ten (10) days' written notice and shall bear interest at the Default Rate (as defined in the Note) from the date loss or damage is sustained by Lender until paid. For purposes of this Paragraph 34, the term "Indemnified Paiiies" means Lender and any person or entity (collectively, a "Person") who is or will have been involved in the origination of the Loan, any Person who is or will have been involved in the servicing of the Loan, any Person in whose name the encumbrance created by this Instrument is or will have been recorded, any Person who may hold or acquire or will have held a full or paiiial interest in the Loan as well as the respective directors, officers, shareholders, partners, employees, agents, representatives, affiliates, subsidiaries, participants, successors and assigns of any and all of the foregoing (including, but not limited to, any other Person who holds or acquires or will have held a participation or other full or partial interest in the Loan, whether during the term of the Loan or as a part of or following a foreclosurn of this Instrument, and any successors by merger, consolidation or acquisition of all or a substantial portion of Lender's assets and business). Notwithstanding anything in this Paragraph 34 to the contrary, in no event shall Borrowers be obligated to indemnify an Indemnified Party with respect to any Losses arising out of the gross negligence, illegal acts, fraud or willful misconduct of such Indemnified Party.
(b)    Borrowers shall, jointly and severally, at their sole cost and expense,  protect,  defend, indemnify, release arid hold  harmless  the Indemnified  Parties from  and against  any and all Losses imposed  upon or incurred  by or asse1ied  against any  Indemnified  Parties and directly or indirectly arising out of or in any  way  relating to any tax  on the making  and/or  recording  of this Instrument, the Note or any of the other Loan Documents,  but  excluding  any  income, franchise or other similar taxes.

(c)    Upon written request by any Indemnified Party, Borrowers shall, jointly and severally, defend such Indemnified Party (if requested by any Indemnified Party, in the name of the Indemnified Party) by attorneys and other professionals reasonably approved by the Indemnified Parties. Notwithstanding the foregoing, if the defendants in any such claim or proceeding include all Borrowers and any Indemnified Pa1iy and Borrowers and such Indemnified Party shall have reasonably concluded that there are any legal defenses available to

it and/or other Indemnified Parties that are different from or additional to those available to Borrowers, such Indemnified Party shall have the right to select separate counsel to  assert  such legal defenses and to otherwise participate in the defense of such action on behalf of such Indemnified Paiiy. Upon demand, Borrowers  shall pay or, in the sole and  absolute  discretion of  the Indemnified Parties, reimburse, the Indemnified  Parties for  the  payment  of reasonable  fees and disbursements of attorneys, engineers, environmental consultants, laboratories and other professionals in connection therewith.

34.WAIVER OF JURY TRIAL. BORROWERS AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT BORROWERS AND LENDER MAY HAVE TO A TRIAL BY JURY  IN  RESPECT  TO ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONJUNCTION WITH THE NOTE, THIS INSTRUMENT, ANY OTHER LOAN DOCUMENT, ANY OTHER AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH, OR ANY COURSE OF  CONDUCT,  COURSE  OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR  ACTIONS  OF  ANY PARTY.

35.ASSIGNMENT BY LENDER. Lender  shall  have the right to assign,  in whole or in  part, the Note, this Instrument and any other Loan Document and all of its rights hereunder and thereunder, and all of the provisions herein and therein shall continue to apply to the Loan. The Lender shall also have the right to paiiicipate the Loan with other parties.

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36. 
SPECIAL ENTITY INDEMNITY. In addition to the obligations  of Borrowers  under this Instrument and the other Loan Documents, Borrowers  shall, jointly  and  severally,  also,  at their sole cost and expense, protect, defend, indemnify, release  and  hold  harmless  Lender  from and against any and all Losses imposed upon or incurred by or  asserted  against  Lender  artd directly or indirectly arising out of  or  in  any way  relating  to any one or  more  of the following: the (i) execution and delivery by Borrowers, Guarantor or Manager, of  any  of  the  Loan Documents to Lender; (ii) authorization of Borrowers, Guarantor or Manager  to  execute  and deliver any of the Loan Documents to Lender; (iii) terms of the limited partnership agreement or limited liability company agreements, as applicable, of Borrowers; or (iv) identity of the limited partners, general partners, or  members,  as applicable,  of  Borrowers  being other than  as set forth in the limited partnership documents or limited liability company documents, as  applicable,  ce1iified to Lender as true and correct copies thereof.

The indemnities contained in this Paragraph 38 shall survive any foreclosure of this Instrument or deed in lieu whether at maturity thereof or through  the  exercise  of  Lender's  remedies under the Instrument or any other Loan Document. Any amounts payable to Lender by reason of the application of this Paragraph 38 shall become due and payable upon ten (10) days' written notice and shall bear interest at the Default  Rate  (as defined  in the Note)  from  the  date any Losses are sustained by Lender until paid.

37.COMPLIANCE WITH LAWS. It is the intent of Lender and Borrowers and all other parties to the Loan Documents to conform to and contract in strict compliance with  applicable  usury laws from time to time in effect. All  agreements  between  Lender  or  any  other  holder hereof and Borrowers (or any other party liable with respect to any indebtedness under the Loan

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Documents) are hereby limited by the provisions of this paragraph  which  shall  override  and control all such agreements, whether now existing or  hereafter  arising  and  whether  written  or oral. In no way, nor in any event or contingency  (including  but  not  limited  to  prepayment, default, demand for payment, or acceleration of the maturity of any obligation), shall the interest taken, reserved, contracted for, charged or received under the Note, this Instrument, the Loan Documents or otherwise, exceed the maximum nonusurious amount permissible under applicable law. If, from any possible construction of any document, interest would otherwise be payable in excess of the maximum nonusurious amount, any such construction shall be subject  to  the provisions of this paragraph and such document shall be automatically reformed and the interest payable shall be automatically reduced to the maximum nonusurious amount permitted under applicable law, without the necessity of execution of any amendment or  new document.  If the holder hereof shall ever receive anything of value which is characterized as interest  under  applicable law and which would apart from this provision be in excess of the maximum lawful amount, an amount equal to the amount which would have been excessive interest shall, without penalty, be applied to the reduction of the principal amount owing on the indebtedness evidenced hereby in the inverse order of its maturity and not to the payment of interest, or refunded to Borrowers or the other payor thereof if and to the extent such amount which would have been excessive exceeds such unpaid principal. The right to  accelerate  maturity  of  the  Note  or  any other indebtedness does not include the right to accelerate any interest which has not otherwise accrued on the date of such acceleration, and Lender does not intend to charge or receive any unearned interest in the event of acceleration. All interest paid or agreed to be paid to the holder hereof shall, to the extent permitted by applicable law, be  amortized,  prorated,  allocated  and spread throughout the full stated term  (including  any renewal  or extension) of such  indebtedness so that the amount of interest on account of such indebtedness does not exceed the maximum nonusurious amount permitted by applicable law. As used in this paragraph, the term "applicable law" shall mean the laws of the State of Texas or the federal laws of the United States, whichever laws allow the greater interest, as such laws  now exist or may  be changed  or amended  or come  into effect in the future.
[Balance of Page Intentionally Left Blank. Signature Page Follows.]

IN WITNESS WHEREOF, Borrowers have executed this Instrument or have caused the same to be executed by its representatives thereunto duly authorized.

BORROWERS:

HARTMAN 11211, LLC,
a Texas limited liability company

		
	By:
	Hartman Income REIT Management, Inc., a Texas corporation,

its Manager

By:         _

_..:t.:::-.... +---=======::::J::::::::     
Louis T. Fox, II Chief Financial Officer

STATE OF TEXAS    § COUNTY OF HARRIS    §

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BEFORE ME, the undersigned, a Notary Public in and for said County and State, on this day personally appeared Louis T. Fox, III, Chief Financial Officer of Hartman Income REIT Management, Inc., the corporation that executed the foregoing instrument on behalf of Hartman 11211 LLC, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the said corporation, and that he executed the same as the act of such corporation for the purposes and consideration therein expressed and in the capacity therein stated.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this _'day of December, 2018.

 t    J

11,111\\
,:,,,,,,./_''o"r••,\i,V,,,,    NOTARY ID 125964535
; J..1  /,i    COMM.  EXR  02-18-2019
MARK TOROK
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NOTARY PUBLIC-STATE OF TEXAS
NOTARY PUBLIC IN AND FOR THE STATE OF TEXAS

STATE OF TEXAS    §

COUNTY OF HARRIS    §
 
HARTMAN VREIT XXI OPERATING PARTNERSHIP L.P.,
a Texas limited partnership

By: Hartman vREIT XXI, Inc., a Maryland Corporation its General Partner

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BEFORE ME, the undersigned, a Notary Public in and for said County and State, on this day personally appeared Louis T. Fox, III, Chief Financial Officer of Hartman vREIT XXI, Inc., the corporation that executed the foregoing instrument on behalf of Hartman vREIT XXI Operating Partnership L.P., known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the said corporation, and that he executed the same as the act of such corporation for the purposes and consideration therein expressed and in the capacity therein stated.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this    day of December, 2018.
.
COMM. EXR 02-18-2019
NOTARY ID 125964535
11 111\\1\1
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MARK TOROK
i 1>1111.11.11111,  -1,
ir(jfi ,\NOTARY PUBLIC-STATE OF TEXAS

NotayPublic iri'and for the State of Texas

HARTMAN SPECTRUM, LLC,
a Texas limited liability company

		
	By:
	Hartman Income REIT Management, Inc., a Texas corporation,

its Manager

By:     
 

6=::;t::::.:,._:!,._-= ::....     --­

Louis T. Fox, II, Chief Financial Officer

STATE OF TEXAS    § COUNTY OF HARRIS    §

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BEFORE ME, the undersigned, a Notary Public in and for said County and State, on this day personally appeared Louis T. Fox, III, Chief Financial Officer of Hartman Income REIT Management, Inc., the corporation that executed the foregoing instrument on behalf of Hartman Spectrum, LLC, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the said corporation, and that he executed the same as the act of such corporation for the purposes and consideration therein expressed and in the capacity therein stated.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this    day of December, 2018.

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' ,t?,,,:; ,    NOTARY ID 125964535
1
f   :•    ; {'r>\ NOTARY PUBLIC-STATE OF TEXAS
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MARK TOROK
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Notary Public in and for the State of Texas

TRACT 1:
 
EXHIBIT "A"

LAND

A PARCEL OF LAND CONTAINING 2.5835 ACRES (112,537 SQUARE FEET) MORE OR LESS, BEING THAT CERTAIN 2.5835 ACRE TRACT CONVEYED TO COTTER & SONS, INC., AS RECORDED IN HARRIS  COUNTY  CLERK'S  FILE  NO.  20140521918,  SAID 2.5835 ACRE TRACT BEING SITUATED IN  THE  C.  WILLIAMS  SURVEY,  ABSTRACT NO. 834, IN HARRIS COUNTY, TEXAS,  AND  BEING  MORE  PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:

BEGINNING AT A SET 5/8 INCH CAPPED IRON ROD, IN THE SOUTH LINE OF INTERSTATE HIGHWAY 10, KATY FREEWAY, 275 FOOT RIGHT-OF-WAY, FOR THE NORTHEAST  CORNER  OF  UNRESTRICTED  RESERVE  11D11,    WILCHESTER  WEST,  AS RECORDED IN VOLUME 132, PAGE 40, MAP RECORDS, HARRIS COUNTY,  TEXAS, SAME BEING THE NORTHWEST CORNER OF THE SAID 2.5835 ACRE TRACT, FROM WHICH THE CENTERLINE OF YORKCHESTER DRIVE, 60 FOOT RIGHT-OF-WAY, AS SHOWN ON SAID WILCHESTER WEST, BEARS WITH THE SAID SOUTH LINE OF INTERSTATE  HIGHWAY  10, KATY FREEWAY, S 89° 45' 5111  W, 480 FEET;

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THENCE, N 89° 45' 51 11 E, WITH THE SAID SOUTH  LINE  OF  INTERSTATE  HIGHWAY  10, KATY FREEWAY, SAME BEING THE NORTH LINE_ OF THE SAID 2.5835 ACRE TRACT, A DISTANCE OF 199.42 FEET TO A SET 5/8 INCH  CAPPED  IRON  ROD,  FOR  THE NORTHWEST CORNER OF RESTRICTED RESERVE "A", BLOCK ONE, FANTASY GOLF I-10, AS RECORDED IN VOLUME 342, PAGE 138, MAP RECORDS, HARRIS COUNTY, TEXAS, SAME BEING THE NORTHEAST  CORNER  OF  THE  SAID  2.5835 ACRE TRACT;

THENCE,  S 00° 13' 36" E,  WITH THE WEST LINE OF SAID RESTRICTED  RESERVE  11A11 , BLOCK ONE, FANTASY GOLF I-10, SAME BEING THE EAST LINE OF THE SAID 2.5835 ACRE TRACT, A DISTANCE OF 563.10 FEET, TO A  FOUND  1/2  INCH  IRON  ROD,  IN THE NORTH LINE OF LOT 2, BLOCK 13,  WILCHESTER,  SECTION  FOUR,  AS RECORDED IN VOLUME 142, PAGE 13,  MAP  RECORDS,  HARRIS  COUNTY,  TEXAS, FOR THE SOUTHWEST CORNER OF SAID RESTRICTED RESERVE "A", BLOCK ONE, FANTASY GOLF I-10, SAME BEING THE SOUTHEAST CORNER OF THE SAID 2.5835 ACRE TRACT;

THENCE,  S  88°  58'  5111    W,  WITH  THE  NORTH  LINE  OF  SAID  BLOCK  13  AND  THE NORTH LINE OF RESTRICTED RESERVE "A", BLOCK ONE, SPRING BRANCH ISO WILCHESTER ELEMENTARY SCHOOL SUBDIVISION, AS RECORDED IN FILM CODE NUMBER 637066, MAP RECORDS, HARRIS COUNTY, TEXAS, A DISTANCE OF 199.35 FEET TO A FOUND 5/8 INCH IRON ROD, FOR AN INTERIOR CORNER OF RESERVE 11 A11 ,     SPRING   BRANCH   ISO   WILCHESTER   ELEMENTARY   SCHOOL   SUBDIVISION, SAME BEING THE SOUTHWEST CORNER OF THE SAID 2.5835 ACRE TRACT;

THENCE, N 00° 14' 09" W, WITH THE SAID EAST LINE OF RESERVE "A", SPRING BRANCH ISD WILCHESTER ELEMENTARY SCHOOL SUBDIVISION AND  THE  SAID EAST LINE OF UNRESTRICTED  RESERVE  "D",  WILCHESTER  WEST,  SAME  BEING THE WEST LINE OF THE SAID 2.5835 ACRE TRACT, A DISTANCE OF 565.82 FEET, TO THE POINT OF BEGINNING AND  CONTAINING  2.5835  ACRES,  (112,  537  SQUARE FEET)  OF LAND  MORE OR LESS.    .

TRACT 2:

EASEMENT ESTATE, IN AND  TO  THAT  CERTAIN  STORM  WATER  SEWER EASEMENT, AS CREATED BY  INSTRUMENT  FILED  UNDER  HARRIS  COUNTY CLERK'S FILE NUMBER T086815.

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EXHIBIT "B"

		
	1.
	Storm Water Sewer Easement under Harris County Clerk's File No. T086815.

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EXHIBIT C

Form of Tenant Estoppel, Subordination, Non-Disturbance and Attornment Agreement

TENANT ESTOPPEL, SUBORDINATION, NON-DISTURBANCE, AND ATTORNMENT AGREEMENT

THIS TENANT ESTOPPEL, SUBORDINATION, NON-DISTURBANCE, AND ATTORNMENT
AGREEMENT (the "Agreement")  is dated  as  of the    day of     , 20 , and is by and among
EAST WEST BANK, a California state-chartered bank, having an address at 9300 Flair Drive, 6th Floor, El Monte,
California    91731    and    its    successors    and    assigns    ("Lender"),             a
         having    an    office    at         

("Landlord"), and
 
------------' a
 
, having an office at

      ("Tenant").

RE:    RECITALS:

WHEREAS, Landlord has made, executed and delivered to Lender its Promissory Note which·is secured by, among other things, that certain Deed of Trust, Assignment of Rents and Security Agreement  (hereinafter referred  to  as  the  "Mortgage")  encumbering  the  real  prope1iy  located at    (the "Property");

WHEREAS, by a lease agreement (the "Lease") dated     , 20 , between Landlord (or

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Landlord's predecessor in title) and Tenant, Landlord leased to Tenant a portion of the Property, as said p01iion is more particularly described in the Lease (such portion of the Property hereinafter referred to as the "Premises"); and

WHEREAS, Lender and Tenant desire to evidence their understanding With respect to the Mortgage and the Lease as hereinafter provided.

NOW, THEREFORE, in consideration of the mutual agreements hereinafter set forth, the parties hereto hereby agree as follows:

		
	1.
	Tenant hereby ce1iifies to Lender, their successors and assigns as follows:

a.    A true, correct and complete copy of the Lease and all amendments thereto are attached hereto as Exhibit A.

b.    The entire base rent due under the Lease is a monthly rent  in  the amount of$        per month and the percentage rent, if any, is set f01ih in Section
_._ of this Lease (collectively, the "Rent"). The Rent has been paid current through the end of

     , 20     and  no Rent  has  been  prepaid  by Tenant.   Rent  each  month  is  due and
payable on the 1st day of each calendar month.  Landlord holds a security  deposit in the amount of
$     _

c.    Neither Landlord nor Tenant is in default under the Lease, and all conditions and obligations on Landlord's part to be fulfilled under the Lease have been satisfied or fully performed, including, but not limited to, any and all required tenant improvements, allowances, alterations, installations and construction, for which payment or performance, if any, has been made in all cases. There are no fmiher obligations under the Lease on the  part  of Landlord other than to permit occupancy of the Premises by Tenant.

d.    Tenant has: (i) no right of first refusal  or option  pursuant to the Lease or otherwise to purchase all or any pa1i of the Premises or the Prope1iy; (ii) no right or option to

lease additional space on the Property; and (iii) neither assigned the Lease in any way nor sublet  all or any part of the Premises.

2.    Tenant covenants, stipulates and agrees that the Lease and all of Tenant's right, title and interest in and to the Property thereunder is hereby, and shall at all times continue to be, subordinated and made secondary and inferior in each and every respect to the Mortgage and the lien thereof, to all of the terms, conditions and provisions thereof and to any and all advances made or to be made thereunder, so that at all times the Mortgage shall be and remain a lien on the Property prior to and superior to the Lease for all purposes, subject to the provisions set forth herein.

3.    Lender agrees that if Lender exercises any of its rights under the Mortgage, including foreclosure of the M01igage or exercise of a power of sale under the Mortgage, Lender will not disturb Tenant's right to use, occupy and possess the Premises under the terms of the Lease so long as Tenant is not in default beyond any applicable grace period under any term, covenant or condition of the Lease or this Agreement.

4.    If, at any time Lender (or any person, or such person's successors or  assigns,  who acquires the interest of Landlord under the Lease through foreclosure of the M01igage or otherwise) shall succeed to the rights of Landlord under the Lease as a result of a default or event of default under the Mortgage, Tenant shall attorn to and recognize such person so succeeding to the rights of Landlord under  the Lease (herein sometimes called "Successor Landlord") as Tenant's landlord under the Lease, said attornment to be effective and self-operative without the execution of any fmiher  instruments. Although said attornment shall be self-operative, Tenant agrees to execute and deliver to Lender or to any Successor Landlord, such other instrument or instruments as Lender or such other person shall from time to time request in order to confirm said attornment.

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5.    
 
Landlord authorizes and directs Tenant to honor any written demand or notice from Lender instructing Tenant to pay rent or other sums to Lender rather than Landlord (a "Payment Demand"), regardless of any other or contrary notice or instruction which Tenant may receive from Landlord before or after Tenant's receipt of such Payment Demand. Tenant may rely upon any notice, instruction, Payment Demand, cetiificate, consent or other document from, and signed by, Lender and shall have no duty to Landlord to investigate the same or the circumstances under which the same was given. Any  payment made by Tenant to Lender or in response to a Payment Demand shall be deemed proper payment by Tenant of such sum pursuant to the Lease.

6.    Subject to the proviso at the end of this Section  6, if Lender shall  become the owner of the Property or the Property shall be sold by reason of foreclosure or other proceedings brought to enforce the Mortgage or if the Property shall be transferred by deed in lieu of foreclosure, Lender or any Successor Landlord shall not be: (a) liable for any act or omission of any prior landlord (including Landlord); (b) obligated to cure any defaults of any prior landlord (including Landlord) which occurred, or to make any payment to Tenant which was required to be paid by any prior landlord (including Landlord), prior to the time that Lender or any Successor Landlord succeeded to the interest of such landlord under the Lease; (c) obligated to perform any construction obligations of any prior landlord (including Landlord)  under the Lease or liable for any defects (latent, patent or otherwise) in the design, workmanship, materials, construction or otherwise with respect to improvements and buildings constructed on the Propetiy; (d) subject to any offsets, defenses or counterclaims which Tenant may be entitled to assert against any prior landlord (including Landlord); (e) bound by any payment of rent or additional rent by Tenant to any prior landlord (including Landlord) for more than one month in advance; (f) bound by any amendment, modification, termination or surrender of the Lease made without the written consent  of Lender;  or (g) liable or responsible for or with respect to the retention, application and/or return to Tenant of any security deposit paid to any prior landlord (including Landlord), whether or not still held by such prior landlord, unless and until Lender or any Successor Landlord has actually received said deposit for its own account as the landlord under the Lease as security for the performance of Tenant's obligation under the Lease (which deposit shall, nonetheless, be held subject to the provisions of the Lease);  provided,  however,  Lender agrees that if a physical defect exists either in Property or the Premises at the time any Successor Landlord becomes the owner of the Prope1iy (such as a broken air conditioner or a leak in the roof) that, unless such

physical defect was caused by or allowed to occur by Tenant in violation of the Lease, then such Successor Landlord shall, upon becoming owner of the Property, repair such physical defect at the Successor Landlord's cost to the extent and only to the extent that the Landlord under the Lease is required to make such repair, but such Successor Landlord shall not be liable for any damage of any type suffered by Tenant (such as destroyed equipment owned by Tenant caused by a leak in the roof) prior to Successor Landlord's actual becoming owner of the Property.

7.    Tenant hereby covenants and agrees to and with Lender to deliver to Lender, by ce1iified mail, return receipt requested, a duplicate of each notice of default delivered by Tenant to Landlord at the same time as such notice is given to Landlord and no such notice of default shall be deemed given  by Tenant under the Lease unless and until a copy of such notice shall have been so delivered  to Lender. Lender shall have the right (but shall not be obligated) to cure such default. Tenant further agrees to afford Lender a period of thirty (30) days beyond any period afforded to Landlord for the curing of such default during which period Lender may elect (but shall not be obligated) to seek to cure such default, or, if such default cannot be cured within that time, then such additional time as may be necessary to cure such default (including but not limited to commencement of foreclosure proceedings) during which period Lender may elect (but shall not be obligated) to seek to cure such default, prior to taking any action to terminate the Lease.

8.    Tenant acknowledges that the interest of Landlord under the Lease is assigned to Lender solely as security for the Promissory Note, and Lender shall have no duty, liability or obligation under the Lease or any extension or renewal thereof, unless Lender shall specifically undetiake such liability  in writing or Lender becomes and then only with respect to periods in which Lender  becomes, the fee owner of the Property.

9.    
 
This Agreement shall be governed by and construed in accordance with the laws of the State of Texas.

10.    This Agreement and each and every covenant, agreement and other provisions hereof  shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns (including, without limitation, any successor holder of the Promissory Note).

11.    All notices to be given under this Agreement shall be in writing and shall be deemed served upon receipt by the addressee if served personally or, if mailed, upon the first to occur of receipt or the refusal of delivery as shown on a return receipt, after deposit in the United States  Postal  Service cetiified mail, postage prepaid, addressed to the address of Landlord, Tenant or Lender appearing below. Such addresses may be changed by notice given in the same manner. If any patiy consists of multiple individuals or entities, then notice to any one of same shall be deemed notice to such party.

Lender's Address:    East West Bank
9090 Katy Freeway, 3rd Fl., Houston, Texas 77024 Attn.: Mr. Esau Liu

Tenant's Address:         

Landlord's Address:         

12.    In the event Lender shall acquire Landlord's interest in the Premises, Tenant shall look only to the estate and interest, if any, of Lender in the Property for the satisfaction of Tenant's remedies for the collection of a judgment (or other judicial process) requiring the payment of money in the event of any default by Lender as a Successor Landlord under the Lease or under this Agreement, and no other property or assets of Lender shall be subject to levy, execution or other enforcement procedure for the satisfaction of

		
	•
	Tenant's remedies under or with respect to the Lease, the relationship of the landlord and tenant under the Lease or Tenant's use or occupancy of the Premises or any claim arising under this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written.

TENANT:

By:-----------------
Name:      
Title:--------------------
LANDLORD:

By:     Name:         Title: --------------------
LENDER:

EAST WEST BANK,
a California state-chatiered bank

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By:-----------------
Name:      
Title:--------------------

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RP-2019-13688
# Pages 49
01/11/2019 09:56 AM
e-Filed & e-Recorded in the Official Public Records of HARRIS COUNTY
DIANE TRAUTMAN COUNTY CLERK
Fees    $204.00

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RECORDERS MEMORANDUM
This instrument was received and recorded electronically and any blackouts, additions or changes were present
at the time the instrument was filed and recorded.

Any provision herein which restricts the sale, rental, or use of the described real property because of color or race is invalid and unenforceable under federal law.
THE STATE OF TEXAS COUNTY OF HARRIS
I hereby certify that this instrument was FILED in
File Number Sequence on the date and at the time stamped hereon by me; and was duly RECORDED in the Official Public Records of Real Property of Harris County, Texas.

COUNTY CLERK
HARRIS COUNTY, TEXASExhibit

REAL PROPERTY MANAGEMENT AGREEMENT

THIS REAL PROPERTY MANAGEMENT AGREEMENT ("Agreement") is effective as of the 5th day of December 2018, by and between Hartman 11211, LLC, a Texas limited liability company ("Company"), and Hartman Income REIT Management, Inc., a Texas corporation ("Manager").

ARTICLE I
AGENCY; TERM

A.Appointment/Acceptance. Company hereby appoints Manager, and Manager hereby accepts appointment, on the terms and conditions hereinafter provided, as exclusive managing and leasing agent for all properties acquired by Company as set out on Exhibit A, attached hereto and made a part hereof. All properties acquired by Company which from time to time are subject to this Agreement are hereinafter referred to collectively as the "Properties" and individually as the "Property."

B.Term. Subject to Article IV below, the term of this Agreement (the "Term") shall be a period of one (1) year from the date first set forth above and thereafter shall be automatically extended on an annual basis unless terminated in writing by either Company or Manager at least thirty (30) days prior to the expiration of the Term or extension thereof.

ARTICLE II
MANAGER'S DUTIES

A.Power and Authority. Manager shall have, and is hereby granted, full power and authority to exercise all functions and perform all duties in connection with the operation and management of the Properties, subject to the right retained by Company to supervise the activities of Manager pursuant to this Agreement. The power and authority of Manager shall include but not be limited to:

I.    Investigating, hiring, paying, supervising and discharging all personnel necessary or desirable, in Manager's good faith judgment, to be employed in connection with the maintenance and operation of the Properties. Compensation for the service of all such employees and the cost of worker's compensation insurance and any benefits with respect to such employees shall be an operating expense of the Properties. Manager, on behalf of Company, may employ affiliated persons or entities of Manager or Company (hereinafter "Affiliates") as long as such employment is at rates that do not exceed commercially reasonable rates that would be paid to an unaffiliated person or entity for similar services, supplies, materials or other such dealings. Manager is authorized to engage, on behalf of and at the expense of Company, professional persons (such as lawyers and accountants) and consultants (such as tax and energy consultants) to render services for the Properties.

2.Maintaining business-like relations with tenants.

3.Using good faith efforts to lease vacant space in the Properties and renew existing leases with tenants in accordance with the current rental schedule from time to time submitted  by Manager and approved by Company (or in the absence of such current rental schedule approved by Company, at rents reasonably determined by Manager taking into consideration market factors then prevailing) and on such other terms and conditions as Manager in its sole discretion shall determine. Manager shall execute leases and rental agreements with tenants and agreements with concessionaires in Manager's name as agent for Company on such terms and conditions as Manager, in its sole discretion, shall determine. Manager shall have the right to reduce the rental rate by an amount up to ten percent (10%) of the rental rate stipulated on the then current rental schedule approved by Company (if any) if, in Manager's sole discretion, such reduction is necessary to expedite rental of such space under the competitive rental and economic conditions then prevailing.

4.Collecting all monthly rentals and other charges due from tenants, all rents and other charges due from concessionaires, users of parking spaces and from users or lessees of other facilities in the Properties. Company hereby authorizes and directs Manager to request, demand, collect, receive and receipt for any and all charges or rents which may at any time be or become due to Company, and to take such legal action as

necessary to evict tenant’s delinquent in payment of monthly rent and to take such legal action as necessary to collect any rentals owing from tenants.

5.Causing the buildings, appurtenances and grounds on the Properties to be maintained according to customary industry standards including, but not limited to, landscaping, interior and exterior cleaning, painting and decorating, plumbing, steam fitting, carpentry and other normal maintenance and repair work or any extraordinary maintenance and repair work deemed necessary or desirable by Manager, in Manager's good faith judgment.

6.Making contracts for water, electricity, gas, fuel, oil, telephone, pest control, trash removal, insurance and other necessary services as Manager shall deem necessary or desirable, in Manager's good faith judgment. Additionally, Manager shall place purchase orders for such equipment, tools, appliances, materials and supplies as are necessary or desirable, in Manager's good faith judgment, to properly maintain the Properties. All such contracts and orders may at Manager's choice be made in either the name of Manager or in the name of Company and shall be on such terms and conditions as Manager deems advisable. Manager shall use good faith efforts to have such contracts provide that Manager (or Company, as applicable) can terminate the contract on thirty
(30) days' notice.

7.Taking such action as may be necessary or desirable, in Manager's good faith judgment, to comply with any orders or requirements affecting the Properties issued by federal, state, county or municipal authority having jurisdiction over the Properties. Manager shall promptly notify Company of the receipt and contents of any such governmental orders or requirements.

8.Causing to be disbursed or paid, from the monies collected from the operation of the Properties and such other monies as may or shall be advanced by Company to Manager: (I) salaries and any other compensation or fees due and payable to Manager and employees of tl1e Properties in connection with the management of the Properties and the cost of workers' compensation insurance with respect to such employees; (2) payments required to be made to the holders of any mortgages affecting the Properties; (3) current amounts due for premium charges under contracts of insurance for fire and other hazard insurance premiums and amounts due for ad valorem taxes or other assessments on the Properties; (4) sums otherwise due and payable in connection with the operation and management of the Properties, including but not limited to, utility bills, service bills, supply bills license fees and payroll taxes; (5) repair expenses, capital improvement costs and other sums retained for such reserves as Manager deems necessary or desirable, in Manager's good faith judgment, for the prudent management and operation of the Properties; and (6) the balance of funds, if any, shall be paid monthly to Company. Unless otherwise agreed to in writing by Manager and Company, such payments and disbursements shall be made by Manager in any order it may determine.

9.Verifying appraisals and bills for real estate and personal property taxes, improvement assessments and other like charges which are or may become liens against the Properties.  Manager may pay the bills or take such legal action as necessary to appeal such tax appraisals as Manager may decide, in its reasonable judgment, to be prudent.

B.Manager's Right to Subcontract. Manager reserves the right, in its sole discretion, to subcontract some or all of the property management and leasing functions described herein to property managers, leasing agents and certain other third parties. However, except as expressly provided herein, the fees to be paid to Manager under this Agreement are inclusive of fees payable to such third parties and Manager will pay the third parties with whom it subcontracts for these services a portion of its property management or leasing fees.

C.Company's Right to Supervise. Company at all times shall have the right to supervise Manager in its performance of any or all of these activities. Company shall have the right, if it so elects, to direct Manager in the conduct of any of these activities. Absent any such direction from Company, Manager shall be entitled to perform its duties hereunder in accordance with its own good faith judgment.

D.Agency: Payments. Except for the employment, supervision and discharge of personnel in connection with the maintenance and operation of the Properties, who shall be employees of Manager and not of Company (although all costs with respect to such employees shall, to the extent allocable to the Properties, be deemed costs of the Properties), all action taken by Manager pursuant to the provisions of this Agreement shall be done as agent of Company and obligations or expenses incurred thereunder shall be for the account, on behalf and at

the expense of Company, but any such actions may be taken or made either in Company's name or Manager's name. Any payments to be made by Manager hereunder shall be made out of such funds as are available from rentals and other collections from the Properties and such other monies as may be provided by Company. In the event anticipated disbursements for Properties expenses and Company management shall in any month be in excess of the anticipated revenues, Company agrees to advance sufficient funds to meet the obligations (including all costs with respect to the employees of the Properties described in Article Il(A)(l) hereof, including Affiliates, the Management Fee, reimbursement of expenses described in Article IIl(A) hereof,) within fifteen (15) days after Manager's request. Manager shall not be obligated to make any advance to or for the account of Company or to pay any sum contemplated by this Agreement except out of funds held by Manager on behalf of Company or out of funds provided by Company to Manager, nor shall Manager be obligated to incur any liability of or for the account of
Company without assurance or proof from Company that the necessary funds for the discharge thereof will be provided promptly.

E.Bank Account.  Manager shall establish, in a manner to indicate the custodial nature thereof, with a bank, whose deposits are insured by the Federal Deposit Insurance Corporation, a separate bank account as agent of Company for the deposit of rentals and collections from the Properties, which shall not be commingled by Manager with funds from other projects or other funds of Manager or its Affiliates. Manager has authority to draw thereon (a) for any payments to be made by Manager pursuant to the terms of this Agreement, (b) to discharge any liabilities or obligations incurred pursuant to this Agreement, and (c) for the payment of the Management Fee described in Article III(A) hereof and the various expense reimbursements due Manager hereunder.

F.Operating Budget. On or before December 1 of each year, Manager shall prepare and submit to Company for its consent an operating budget with respect to the Properties for the next ensuing calendar year (the "Budget"). If Company does not consent to the Budget submitted by Manager then, pending such consent or the submission to Manager by Company of an alternative Budget, Manager shall be authorized to rely on the Budget for the prior year, but with a four percent (4%) increase in each line item.

G.Discretion. Manager shall have and is hereby granted sole and complete discretion to exercise the powers and functions granted herein and Manager shall not be required to consult with Company or obtain Company's approval before taking any action permitted hereunder; provided, however, except in cases of emergency, Manager shall not incur any obligation in excess of $10,000.00 without the consent of Company. The approval by Company of a Budget shall be deemed the consent of Company to the expenses indicated on such Budget. For these purposes, an "emergency" shall be deemed to exist if in the good faith judgment of Manager, prompt maintenance or repairs are needed in order to prevent death, bodily injury or material property damage.

H.Records. Manager shall maintain, or cause to be maintained, books of account of all receipts and disbursements from the management of the Properties. Manager shall provide monthly statements to Company containing occupancy information and collection and disbursement reports. Manager shall allow Company's accountant or other representatives to review the books and records of the Properties during reasonable business hours. Manager also shall provide Company with an annual report for the Properties containing information about occupancy and receipts and disbursements for the immediately preceding calendar year.

ARTICLE III COMPENSATION OF MANAGER

A.Property Management.

I.    Management Fee. Company shall pay to Manager, as base compensation for Manager's duties and obligations under this Agreement for the management of the Property or Properties managed by Manager hereunder, a property management fee (the "Management Fee") equal to three percent (3.0%) of the Effective Gross Revenues. Company shall pay the Management Fee to the Manager within ten (IO) days after the end of each calendar month, based upon the Effective Gross Revenues during said calendar month. For purposes of this Agreement, "Effective Gross Revenues" shall mean all payments actually collected from tenants and occupants of the Properties, exclusive of (a) security and deposits (unless and until such deposits have been applied to the payment of current or past due rent) and (b) payments received from tenants in reimbursement of expenses of repairing damage caused by tenants.

2.Leasing Fee. If Manager provides leasing services with respect to a Property, Company shall pay to Manager a leasing fee (the "Leasing Fee") in an amount equal to the leasing fees charged by unaffiliated persons rendering comparable services in the same geographic location of the applicable property. The Leasing Fee shall be payable upon execution of each lease.

3.Construction Management Fee. In the event that Manager supervises the construction or installation of tenant improvements to the Properties, Company shall pay Manager a construction management fee equal to 5% of the costs of the construction or installation of the tenant improvements.

4.Oversight Fee. In the event that Company contracts directly with a third-party property manager with respect to a Property, Company shall pay Manager an oversight fee equal to I% of the Effective Gross Revenues of the Property managed. In no event will the Company pay both a property management fee and an oversight fee to Manager with respect to any particular property. The foregoing fee shall be payable only from net cash flow from the Property after payment of all sums then due to the holder of the mortgage on the Property.

5.Disposition Fee. If Manager provides a substantial amount of services, as determined by Company's managers, in connection with the sale of one or more assets, Manager will receive a disposition fee  equal to (1) in the case of the sale of real property, the lesser of: (A) one-half of the aggregate brokerage commission paid (including the disposition fee) or, if none is paid, the amount that customarily would be paid, or (B) 3% of the sales price of each property sold, and (2) in the case of the sale of any asset other than real property, 3% of the sales price of such asset.

6.Reimbursement of Expenses. Company, within fifteen (15) days of a request by Manager, shall reimburse Manager for all reasonable and necessary expenses incurred or monies advanced by Manager in connection with the management and operation of the Properties. However, Manager shall not be reimbursed for its overhead, including the salaries and expenses of employees relating to the management of the Properties except as expressly provided in Article II(A)(l) hereof. Manager shall have no obligation to advance any of its own funds for the management of the Properties.

B.Miscellaneous. The fees and reimbursements set forth in the Article III are cumulative; and the obligations of Company pursuant to Article III shall survive the termination of this Agreement.

ARTICLE IV TERMINATION

A.Termination. Notwithstanding anything herein to the contrary, but subject to Article IV(B) below, Manager and Company shall each have the right, upon sixty (60) days prior written notice to the other party to terminate this Agreement in its entirety or as to a specific Property or Properties.

B.Default. Notwithstanding anything herein to the contrary, either party shall have  the  right (without limitation of its other rights and remedies) to terminate this Agreement in the event of a default by the other party if such default is not cured within thirty (30) days after written notice is given to the other party (provided that if such default cannot reasonably be cured within such thirty (30) day period, the cure period shall be extended as may reasonably be required provided that the party obligated to cure such default endeavors with diligence to do so). Additionally, Company shall have the right (without limitation of its other rights and remedies) to immediately terminate this Agreement at any time upon written notice to Manager in the event of Manager's fraud, gross malfeasance, gross negligence or willful misconduct.

C.Termination Payments. Upon termination in whole or as to any Properties, Company and Manager shall immediately account to each other with respect to all matters outstanding and all sums owing each other as of the effective date of termination. Manager shall be entitled to retain copies of such books and records pertaining to such Properties as Manager deems appropriate, provided Manager shall bear the cost of such photocopying.

ARTICLEV
INSURANCE; INDEMNIFICATION OF MANAGER

A.Insurance. Except as otherwise agreed in writing between the parties hereto, Manager shall maintain (subject to reimbursement as an expense of the Properties) all risk casualty insurance, and public liability insurance for the Properties with a broad form comprehensive general liability endorsement, in such amounts as Manager may deem appropriate. Any and all other insurance maintained for the Properties shall be the sole responsibility of Company. Each party shall provide the other with copies of all insurance policies maintained by such party with respect to the Properties.

B.Indemnification. Manager shall have no liability to Company for any loss suffered by Company which arises out of any action or inaction of Manager if Manager, in good faith, determined that such course of conduct was in the best interest of Company and such course of conduct did not constitute gross negligence or willful misconduct of Manager. Company shall indemnify Manager against all claims, actions, damages, losses, judgments, liabilities, costs and expenses (including attorneys' fees) and amounts paid in settlement of any claims sustained by Manager in connection with the management of the Properties and the management services provided pursuant to this Agreement, provided that the same were not the result of fraud, gross negligence or willful misconduct on the part of Manager (collectively, "Unauthorized Acts"). Manager shall indemnify Company against all claims, actions, damages, losses, judgments, liabilities, costs and expenses (including attorneys' fees) and amounts paid in settlement of any claims sustained by Company arising out of or in connection with Unauthorized Acts. Indemnities herein contained shall not apply to any claim with respect to which the indemnified party is covered by insurance, provided that the foregoing exclusion does not invalidate the indemnified party's insurance coverage. The indemnification provisions set forth herein shall survive termination of this Agreement.

C.Waiver. Notwithstanding anything herein to the contrary, each party hereby expressly waives any claim against the other to the extent recoverable by insurance carried or required to be carried by the claimant hereunder.

ARTICLE VI MISCELLANEOUS

A.Binding Obligation: Assignment. This Agreement shall inure to the benefit of and constitute a binding obligation upon the parties hereto and their respective successors and assigns. Subject to Article VI(G), no party may assign its rights or delegate its duties hereunder without the prior written consent of the other party, such consent not to be unreasonably withheld.

B.Entire Agreement. This Agreement shall not be changed, modified or amended, except by an instrument in writing after this date signed by both of the parties hereto with the same formalities as the execution of this Agreement.

C.Relief. Company and Manager each shall be entitled to injunctive and other equitable relief to enforce the provisions of this Agreement.

D.Competitive Activities. Manager (and any Affiliate) may acquire, own, promote, develop, operate and manage real property (or any one or more of the foregoing) on its own behalf or on behalf of any other person or entity.  Manager (and any Affiliate), notwithstanding the existence of this Agreement, may engage in any activity it so chooses, whether such activity is competitive with the Properties or Company or otherwise, without having or incurring any obligation to offer any interest in such activities to Company. Neither this Agreement nor any activity undertaken pursuant hereto shall prevent Manager (and any Affiliate) from engaging in such activities or require Manager (and any Affiliate) to permit Company to participate in such activities, and, as a material part of the consideration for Manager's execution hereof, Company hereby waives, relinquishes and reserves any  such right  or claim of participation.

E.Time Obligation. Manager shall not be required to spend all of its time in the performance of its duties hereunder, but, rather, shall spend such time as it deems reasonably necessary for the business-like management of the Properties.

F.Notices. Notices or other communications required or permitted to be given  hereunder  shall  be deemed duly made or given, as the case  may be,  if in writing,  signed  by or on behalf of  the person making or  giving  the same, and shall be deemed completed upon the first to occur of receipt or two (2) days after deposit  in the United States mail, first class, postage prepaid, addressed to the person or persons to whom such offer, acceptance, election, approval, consent, certification, request, waiver, or notice is to be made or given, at their respective addresses:

If to Company:

If to Manager:
 
Hartman 11211, LLC
2909 Hillcroft
Suite 420
Houston, Texas 77057
Attention: Office of General Counsel

Hartman Income REIT Management, Inc. 2909 Hillcroft
Suite 420
Houston, Texas 77057 Attention: Allen R. Hartman

or, in any case, at such other address as shall have been set forth in a notice sent pursuant to the provisions of this paragraph.

G.Consents: Approval. Wherever in this Agreement the consent or approval of a party is required, such consent or approval shall not be withheld unreasonably (except as expressly set forth herein  to the contrary) and shall be deemed to have been given if the party whose consent or approval is requested  does not notify in writing the party requesting such consent or approval otherwise within ten (I 0) days after receipt of a written request for such consent or approval.

H.Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original, but all of which shall constitute one instrument.

I.Situs. This Agreement and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of Texas, without regard to the conflict of law’s provisions thereof.

J.Headings. Article and section titles or captions contained in this Agreement are inserted only as a matter of convenience and for reference and shall not be construed in any way to define, limit, extend or describe the scope of any of the provisions hereof.

K.Definitions. The words such as "herein," "hereinafter," "hereof," and "hereunder" refer to this Agreement as a whole and not merely to a subdivision in which such words appear unless the context otherwise requires. The singular shall include the plural, and the masculine gender shall include the feminine and neuter, and vice versa, unless the context otherwise requires.

L.Severability: Invalidity. Each provision of this Agreement shall be considered separable and if for any reason any provision or provisions herein are determined to be invalid and contrary to any existing or future law, such invalidity shall not impair the operation of or affect those portions of this Agreement which are valid.

M.Additional Instruments, Acts. Each of the parties hereto shall hereafter execute and deliver such further instruments and do such further acts and things as may be required or useful to carry out the intent and purpose of this Agreement and as are not inconsistent with the provisions hereof.

		
	N.
	Time. Time is of the essence with respect to the dates set forth in this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written pursuant to due authority.

COMPANY:

HARTMAN 11211, LLC,
a Texas limited liability company

By: Its Manager, Hartman SPE Management, LLC, a Delaware limited liability company

By its Manager, Hartman Short Term Income Properties XX, Inc., a Delaware corporation

MANAGER:

ANAGEMENT, INC.,

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