Document:

Exhibit 10.80

 

POST CLOSING AND INDEMNITY AGREEMENT

 

This Post Closing
and Indemnity Agreement (“Agreement”)
is dated as of this 25th day of July, 2006 by and among MB Herndon,  L.L.C., a Delaware limited liability company (“Purchaser” which for purposes of this
Agreement shall also include its successors and assigns), and Valley View Associates Limited Partnership (“Seller”), in connection with the
acquisition of Dulles Executive Center, located in Hemdon, Virginia (the “Property”) as defined in that certain
Agreement of Purchase and Sale dated July 6, 2006 (the “Contract”), as amended, by and between
Seller and Inland Real Estate Acquisitions, Inc. (“IREA”).

 

RECITALS:

 

A.                     IREA assigned
its interest in the Contract to Purchaser by assignment dated as of the date of
this Agreement.

 

B.                       As a
condition precedent to Purchaser proceeding to the Closing (as defined in the
Contract), Purchaser has required and Seller has agreed to certain undertakings
following the Closing and further, Purchaser has required and Seller has agreed
that Seller shall indemnify, defend and hold harmless Purchaser to the extent
provided for in this Agreement.

 

NOW, THEREFORE,
for good and valuable consideration including the mutual promises contained
herein, the parties hereto agree as follows:

 

1. Cisco
Estoppel / Seller’s Estoppel

 

(a)                    Cisco Systems,
Inc. (“Cisco”), as tenant, entered
into a lease dated December 20, 2000 for approximately 189,764 s.f., being all
of building known as 13560 Dulles Technology Drive (the “Premises”), one of the buildings on the
Property. The Cisco Lease was supplemented by a License Agreement dated
December 20, 2000, and amended by the First Amendment dated October 8, 2001 and
by the Second Amendment dated August 25, 2004 (collectively, the “Cisco Lease”).

 

(b)                   By the Second
Amendment to the Cisco Lease, Cisco assigned its rights to occupy the Premises
and certain other rights under the Cisco Lease to Lockheed Martin Corporation (“Lockheed”).

 

(c)                    As of the date
of Closing under the Contract, Seller could not provide an estoppel from Cisco
as to certain of the obligations of Cisco under the Cisco Lease. Purchaser has
agreed to proceed to Closing in consideration of which Seller has agreed as
follows: (i) at Closing, Seller shall provide a landlord estoppel (the “Landlord Estoppel”) with regard to the
Cisco Lease and the obligations of Cisco under the Cisco Lease in form
substantially as attached hereto as Exhibit A;
and (ii) Seller shall use commercially reasonable efforts to secure and provide
Purchaser with an estoppel from Cisco on or before August 25, 2006, with
respect to the same matters covered in the Landlord’s Estoppel, and addressed
to the same parties; and (iii) Seller shall indemnify and hold Purchaser
harmless with regard to

 

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any claims and/or
costs or damages suffered by Purchaser as a result of any of the statements in
the Landlord Estoppel being incorrect; provided this indemnity by Seller shall
terminate or lapse after the earlier to occur of (A) Purchaser’s receipt of the
Cisco estoppel without material variance from the Landlord Estoppel, and (B)
six months after the date of this Agreement (unless there is a material
variance between the Landlord’s Estoppel and the Cisco estoppel).

 

2.        Letters of Credit

 

(a)                    In conjunction
with their respective leases at the Property, both Nokia, Inc. (“Nokia”) and Exostar, LLC (“Exostar”) have provided Seller with letters
of credit to secure certain obligations of such tenants under their respective
leases and subject to the terms of their leases (the “Letters of Credit”). The Letters of Credit
are attached hereto as Exhibit “B” and
Exhibit “C”, respectively.

 

(b)                   As of the date
of Closing under the Contract the Letters of Credit had not been assigned
and/or reissued from Seller to Purchaser. Purchaser has agreed to proceed to
Closing in consideration of which Seller has agreed to use commercially
reasonable efforts to secure and provide Purchaser with an assignment of the
existing Letters of Credit, or to have such Letters of Credit re-issued to name
Purchaser as the secured party within thirty (30) days after the date of this
Agreement, all at Purchaser’s cost.

 

(c)                    Seller shall
indemnify and hold Purchaser harmless with regard to any claims and/or costs or
damages suffered by Purchaser as a result of Seller’s failure to comply with
the requirements of Subsection 2(b) above.

 

3.        Assignment Of TI Work Contracts

 

(a)                    Prior to the
Closing under the Contract, Seller has entered into certain contracts and
engaged in certain construction at the Property, as described on Exhibit “D”, with regard to work required
under tenant leases of the Property (the “TI
Contracts”).

 

(b)                   At Closing,
Seller shall assign to Purchaser the TI Contracts; provided that (i) Purchaser
assumes no obligations under the TI Contracts, and (ii) Purchaser shall have
all rights to enforce the warranties of the contractors under the TI Contracts
post Closing; and (iii) the effective date of the assignment of the Open TI
Contract, as defined in Section 4, below, shall occur after all work under the
Open TI Contract has been completed, without further assignment required; and
(iv) Seller shall complete the obligations on its part to perform under the
Open TI Contract, as defined in Section 4, below.

 

4.        Open TI Contract

 

(a)                    As of the date
of Closing under the Contract the Construction Contract for a Fixed Sum dated
3/23/06 for work on the third floor of Building I (the “Open TI

 

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Contract”),
remains incomplete and there remains additional work, and additional costs
associated with that Open TI Contract.

 

(b)                   From and after
the date of this Agreement, Seller agrees to complete all work required under
the Open TI Contract on the part of Seller, as landlord under and as required
by the Lockheed lease. Purchaser grants Seller a license to enter Building I
with regard to such Open TI Contract.

 

(c)                    Seller shall
provide Purchaser with draw requests and contractor’s final lien waivers
showing that all amounts due under the Open TI Contract have been paid, and
Seller shall use any amounts paid by Lockheed Martin for its portion of such
costs, whether paid to Seller or Purchaser (which will be forwarded to Seller),
to pay such costs under the Open TI Contract.

 

(d)                   Seller shall
indemnify and hold Purchaser harmless from any and all actual losses, costs,
expenses and damages to persons or property, including actual and reasonable
attorneys’ fees and court costs, incurred as a result of the work under the
Open TI Contract, as provided in Section 8 of the Contract.

 

5.        Future Development Matters

 

(a)                    Seller has
engaged in activities and filed applications related to a proposed expansion of
the Property by the addition of a third building (the “Future Development”).

 

(b)                   At Closing,
Purchaser will reimburse Seller for $17,655.00 toward the application fee paid
by Seller related to the Future Development, and Purchaser shall have the right
to pursue such application, or not, at Purchaser’s sole discretion.

 

(c)                    Seller agrees that
all other costs incurred by Seller, and all obligations or contracts entered
into by Seller with respect to the Future Development, will be the sole
obligation of Seller and that Purchaser is not assuming any obligations under
any contracts related to the Future Development.

 

(d)                   Seller shall
indemnify and hold Purchaser harmless with regard to any claims and/or costs or
damages suffered by Purchaser as a result of Seller’s failure to comply with
the provisions of Subsection 5(c) above

 

6.        Audit
Letter

 

(a)                    Pursuant to
the terms of the Contract, Seller shall cooperate with Purchaser and Purchaser’s
accountants (at no cost to Seller) with regard to the audit of Seller’s books
and records related to rental income and operating expenses for the Property.

 

(b)                   Seller agrees
that from and after Closing, at Purchaser’s request, Seller shall execute an
audit letter in form and content reasonably acceptable to Seller and Purchaser,
making representations as to the matters related to rental income and

 

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operating expenses
for the Property prior to the date of Closing, and addressed to such auditors.

 

7.        Survival

 

The terms and provisions
of this Agreement shall expressly survive the Closing.

 

8.        Remedies

 

The remedies and
indemnities set forth herein are in addition to all rights of Purchaser as set
forth in the Contract.

 

9.        Further Assurances

 

Seller and Purchaser agree to cooperate with each
other following the Closing to confirm any matter and execute any document
reasonably required by the other party in furtherance of the Closing and
consistent with the requirements of this Agreement.

 

10.      Defined Terms

 

All capitalized terms which are not expressly defined
herein shall have the meanings set forth in the Contract.

 

11.      Miscellaneous

 

(a)                    This Agreement
shall be binding upon and inure to the benefit of the parties to this Agreement
and their respective successors and permitted assigns.

 

(b)                   This Agreement
may be executed in one or more counterparts, each of which shall constitute an
original and all of which taken together shall constitute one Agreement.
Facsimile transmission or scanned (pdf) copy of any executed original of this
Agreement shall be deemed to be the same as the delivery of an executed
original. At the request of any party hereto, the other parties shall confirm
facsimile transmissions by executing duplicate original documents and
delivering the same to the requesting party.

 

Signatures on following page.

 

4

 

IN WITNESS
WHEREOF, the parties have executed this Post Closing and Indemnity Agreement
effective the first date written above.

 

 

Seller:

 

Valley
View Associates Limited Partnership

 

	
  By:

  	
  FCD-Hersch Associates,
  LLC, a North Carolina limited liability company

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip W. Norwood

  	
   

  
	
   

  	
  Name:

  	
  Philip W. Norwood

  	
   

  
	
   

  	
  Its:

  	
   President

  	
   

  
					

 

 

Purchaser:

 

MB
HERNDON, L.L.C., a Delaware limited liability company

 

	
  By:

  	
  Minto Builders
  (Florida), Inc.,

  
	
   

  	
  a Florida corporation,
  its sole member

  
	
   

  	
   

  
	
  By:

  	
  /s/
  C. Benvenuto

  	
   

  
	
  Name:

  	
  C.
  Benvenuto

  	
   

  
	
  Its:

  	
  Authorized
  AgentExhibit
10(a)

INTERNATIONAL BANCSHARES CORPORATION

2006 EXECUTIVE INCENTIVE COMPENSATION PLAN

1.                    Purpose.

The principal purposes of the International Bancshares Corporation 2006
Executive Incentive Compensation Plan (the “Plan”) are to provide incentives and
rewards to executive officers of International Bancshares Corporation (the “Company”)
who have significant responsibility for the success and growth of the Company.

2.                    Administration
of the Plan.

The Plan shall be administered by the Salary and Steering Committee (the
“Committee”) of the Board of Directors of International Bank of Commerce,
Laredo, Texas (“IBC”).  The Committee
shall be appointed by the Board of Directors of IBC and shall consist of two or
more members of the Board of IBC who are also outside, disinterested members of
the Board of the Company.

The Committee shall have all the powers vested in it by the terms of
this Plan, such powers to include authority (within the limitations described
herein) to select the persons to be granted awards under the Plan, to determine
the time when awards will be granted, to determine whether objectives and
conditions for earning awards have been met, to determine whether awards will
be paid at the end of the award period or deferred, and to determine whether an
award or payment of an award should be reduced or eliminated.

The Committee shall have full power and authority to administer and
interpret the Plan and to adopt such rules, regulations, agreements, guidelines
and instruments for the administration of the Plan and for the conduct of its
business as the Committee deems necessary or advisable.  The Committee’s interpretations of the Plan,
and all actions taken and determinations made by the Committee pursuant to the
powers vested in it hereunder, shall be conclusive and binding on all parties
concerned, including the Company, its shareholders and any person receiving an
award under the Plan.

3.          Eligibility.

Executive officers of the Company selected by the Committee, in its
discretion, will be granted awards under the Plan.

4.          Awards.

(a)  Types of Awards.  Selected executive officers of the Company
shall be granted annual incentive awards under this Plan in January of each
year.

(b)  Performance Targets.  The Committee has established return on
average total assets and return on average total shareholders’ equity targets,
either one of which must be met in order for an award to be earned under this
Plan.  These targets will not be amended
without shareholder approval.

(c)  Payment of Awards.  Awards will be payable in cash each year upon
certification by the Committee that the Company achieved at least one of the
specified performance targets for the preceding year.  No payment under the Plan will be made unless
at least one of the return targets is met. 
IBC will pay all awards under the Plan.

(d)  Negative Discretion.  Notwithstanding the attainment by the Company
of at least one of the specified return targets, the Committee has the
discretion, by participant, to reduce some or all of an award that would be
otherwise paid.

(e)  Maximum Awards.  No participant may receive more than a
maximum of 2.5% of the total income before income taxes of the Company for the
year under the Plan in any calendar year.

5.                    Miscellaneous
Provisions.

(a)  Guidelines.  The Committee shall adopt from time to time
written policies for its implementation of the Plan.

 

(b)  Withholding Taxes.  The Company shall have the right to deduct
from all awards hereunder paid in cash any federal, state, local or foreign
taxes required by law to be withheld with respect to such awards.

(c)  No Rights to Awards.  Except as set forth herein, no employee or
other person shall have any claim or right to be granted an award under the
Plan.  Neither the Plan nor any action
taken hereunder shall be construed as giving any employee any right to be
retained in the employ of the Company or any of its subsidiaries or affiliates.

(d)  Costs and Expenses.  The cost and expenses of administering the
Plan shall be borne by IBC and not charged to any award nor to any employee
receiving an award.

(e)  Funding of Plan.  The Plan shall be unfunded.  Neither the Company nor IBC shall be required
to establish any special or separate fund or to make any other segregation of
assets to assure the payment of any award under the Plan.

6.                    Effective
Date, Amendments and Termination.

(a)  Effective Date.  The Plan shall become effective on the date
it is approved by the Company’s shareholders.

(b)  Amendments.  The Committee may at any time terminate or
from time to time amend the Plan in whole or in part, but no such action shall
adversely affect any rights or obligations with respect to any awards
theretofore made under the Plan.  Unless
the shareholders of the Company shall have first approved thereof, no amendment
of the Plan shall be effective which would increase the maximum amount which
can be paid to any one participant under the Plan, which would change the
specified performance goal for payment of awards or which would modify the
requirements as to eligibility for participation in the Plan.

(c)  Termination.  No awards shall be made under the Plan after
December 31, 2016.

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