Document:

Exhibit 10.74

 

Loan
Number V_46690

 

FIXED RATE NOTE

 

$8,100,000.00

 

November
23, 2004

 

FOR VALUE
RECEIVED, A-S-K 41 ELDRIDGE-W. LITTLE YORK, L.P., a Texas limited partnership
(hereinafter referred to as “Borrower”),
promises to pay to the order of JPMORGAN CHASE BANK, N.A., a banking
association chartered under the laws of the United States of America, its
successors and assigns (hereinafter referred to as “Lender”), at the office of Lender or its agent, designee, or
assignee at 270 Park Avenue, New York, New York 10017, Attention: Loan
Servicing, or at such place as Lender or its agent, designee, or assignee may
from time to time designate in writing, the principal sum of EIGHT MILLION ONE
HUNDRED THOUSAND AND NO/100 DOLLARS ($8,100,000.00) in lawful money of the
United States of America, with interest thereon to be computed on the unpaid
principal balance from time to time outstanding at the Applicable Interest Rate
(hereinafter defined) at all times prior to the occurrence of an Event of
Default (as defined in the Security Instrument), and to be paid in installments
as set forth below. Unless otherwise herein defined, all initially capitalized
terms shall have the meanings given such terms in the Security Instrument.

 

1. PAYMENT TERMS

 

Principal and
interest due under this Note shall be paid as follows:

 

(a)                     A payment of
interest only on the date hereof for the period from the date hereof through
November 30, 2004, both inclusive; and

 

(b)                    A constant
payment of principal and interest in the amount of $63,549.09 on the first day
of January, 2005 and on the first day of each calendar month thereafter up to
and including the first day of November, 2014;

 

with payments under this
Note to be applied as follows:

 

(i)                         First, to
the payment of interest and other costs and charges due in connection with this
Note or the Debt, as Lender may determine in its sole discretion; and

 

(ii)                      The balance
shall be applied toward the reduction of the principal sum;

 

and the balance of said
principal sum, together with accrued and unpaid interest and any other amounts
due under this Note shall be due and payable on the first day of December, 2014
or upon earlier maturity hereof whether by acceleration or otherwise (the “Maturity Date”). Interest on the principal
sum of this Note shall be calculated on the basis of a three hundred sixty
(360) day year and paid for the actual number of days elapsed. All amounts due
under this Note shall be payable without setoff, counterclaim or any other
deduction whatsoever.

 

 

2. INTEREST

 

The term “Applicable Interest Rate” means from the
date of this Note through and including the Maturity Date, a rate of four and
eighty-eight hundredths percent (4.88%) per annum.

 

3. SECURITY

 

This Note is
secured by, and Lender is entitled to the benefits of, the Security Instrument,
the Assignment, the Environmental Indemnity, and the other Loan Documents
(hereinafter defined). The term “Security
Instrument” means the Deed of Trust and Security Agreement dated the
date hereof given by Borrower for the use and benefit of Lender covering the
estate of Borrower in certain premises as more particularly described therein
(which premises, together with all properties, rights, titles, estates and
interests now or hereafter securing the Debt and/or other obligations of Borrower
under the Loan Documents, are collectively referred to herein as the “Property”). The term “Assignment” means the Assignment of Leases
and Rents of even date herewith executed by Borrower in favor of Lender. The
term “Environmental Indemnity” means
the Environmental Indemnity Agreement of even date herewith executed by
Borrower in favor of Lender. The term “Guaranty” means that certain Guaranty of
even date herewith executed by Steven D. Alvis and Jay K. Sears in favor of
Lender The term “Loan Documents” refers
collectively to this Note, the Security Instrument, the Assignment, the
Environmental Indemnity, the Guaranty and any and all other documents executed
in connection with this Note or now or hereafter executed by Borrower and/or
others and by or in favor of Lender, which wholly or partially secure or
guarantee payment of this Note or pertain to the indebtedness evidenced by this
Note.

 

4. LATE FEE

 

If any installment
payable under this Note (including the final installment due on the Maturity Date)
is not received by Lender on or prior to the seventh (7th) calendar day after the same
is due (without regard to any applicable cure and/or notice period), Borrower
shall pay to Lender upon demand an amount equal to the lesser of (a) five
percent (5%) of such unpaid sum or (b) the maximum amount permitted by
applicable law to defray the expenses incurred by Lender in handling and
processing such delinquent payment and to compensate Lender for the loss of the
use of such delinquent payment, and such amount shall be secured by the Loan
Documents.

 

5. DEFAULT AND ACCELERATION

 

So long as an
Event of Default exists, Lender may, at its option, without notice or demand to
Borrower, declare the Debt immediately due and payable. All remedies hereunder,
under the Loan Documents and at law or in equity shall be cumulative. In the
event that it should become necessary to employ counsel to collect the Debt or
to protect or foreclose the security for the Debt or to defend against any
claims asserted by Borrower arising from or related to the Loan Documents,
Borrower also agrees to pay to Lender on demand all reasonable costs of
collection or defense incurred by Lender, including reasonable attorneys’ fees
for the services of counsel whether or not suit be brought.

 

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6. DEFAULT INTEREST

 

So long as an
Event of Default exists, Borrower shall pay interest on the then unpaid
principal sum and any other unpaid amounts due under the Loan Documents at the
rate equal to the lesser of (a) the maximum rate permitted by applicable law,
or (b) the greater of (i) five percent (5%) above the Applicable Interest Rate
or (ii) five percent (5%) above the Prime Rate (hereinafter defined), in effect
at the time of the occurrence of the Event of Default (the “Default Rate”). The term “Prime Rate” means the prime rate reported
in the Money Rates section of The Walt
Street Journal. In the event that The
Wall Street Journal should cease or temporarily interrupt
publication, the term “Prime Rate” shall
mean the daily average prime rate published in another business newspaper, or
business section of a newspaper, of national standing and general circulation
chosen by Lender. In the event that a prime rate is no longer generally
published or is limited, regulated or administered by a governmental or
quasi-governmental body, then Lender shall select a comparable interest rate
index which is readily available and verifiable to Borrower but is beyond
Lender’s control. The Default Rate shall be computed from the occurrence of the
Event of Default until the actual receipt and collection of a sum of money
determined by Lender to be sufficient to cure the Event of Default. Amounts of
interest accrued at the Default Rate shall constitute a portion of the Debt,
and shall be deemed secured by the Loan Documents. This clause, however, shall
not be construed as an agreement or privilege to extend the date of the payment
of the Debt, nor as a waiver of any other right or remedy accruing to Lender by
reason of the occurrence of any Event of Default.

 

7. PREPAYMENT

 

(a)                     Except as
otherwise expressly provided in this Section 7, the principal balance of
this Note may not be prepaid in whole or in part (except with respect to the
application of casualty or condemnation proceeds) prior to the Maturity Date.
If during the existence of any Event of Default, Borrower shall tender any
payment to Lender (other than regularly scheduled payments of principal and
interest) or Lender shall receive proceeds (whether through foreclosure or the
exercise of the other remedies available to Lender under the Security
Instrument or the other Loan Documents), which shall constitute a full or
partial prepayment of the principal balance of this Note, such payment or
receipt of proceeds shall constitute a prepayment in violation of the
provisions of this Section 7, and Borrower shall pay in addition to
interest accrued and unpaid on the principal balance of this Note and all other
sums then due under this Note and the other Loan Documents, a prepayment
consideration in an amount equal to the greater of (A) one percent (1%) of the
outstanding principal balance of this Note at the time such prepayment is
tendered or received, or (B) (x) the present value as of the date such
prepayment is tendered or received of the remaining scheduled payments of
principal and interest from the date such prepayment is tendered or received
through the Maturity Date (including any balloon payment) determined by
discounting such payments at the Discount Rate (as hereinafter defined), less
(y) the amount of the prepayment tendered or received. The term “Discount Rate” means the rate which, when
compounded monthly, is equivalent to the Treasury Rate (as hereinafter
defined), when compounded semi-annually. The term “Treasury Rate” means the yield calculated by the linear
interpolation of the yields, as reported in Federal Reserve Statistical Release
H.15-Selected Interest Rates under the heading “U.S. Government
Securities/Treasury Constant Maturities” for the week ending prior to the date
the payment or such proceeds are received, of U.S. Treasury constant maturities
with maturity dates (one longer

 

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and one shorter) most
nearly approximating the Maturity Date. In the event Release H.I5 is no longer
published, Lender shall select a comparable publication to determine the
Treasury Rate. Lender shall notify Borrower of the amount and the basis of
determination of the required prepayment consideration, which shall be conclusive,
except in the case of manifest error. Notwithstanding the foregoing, Borrower
shall have the additional privilege to prepay the entire principal balance of
this Note (together with any other sums constituting the Debt) on any scheduled
payment date occurring on or after that date which is three (3) months
preceding the Maturity Date without any fee or prepayment consideration for
such privilege.

 

(b)                    If the
prepayment results from the application to the Debt of the casualty or
condemnation proceeds from the Property, no prepayment consideration will be
imposed. Partial prepayments of principal resulting from the application of
casualty or condemnation proceeds to the Debt shall not change the amounts of
subsequent monthly installments nor change the dates on which such installments
are due, unless Lender shall otherwise agree in writing.

 

(c)                     (i)                        Notwithstanding
any provision of this Section 7 to the contrary, at any time after the
earlier of (1) the date which is two (2) years after the “startup day,” within
the meaning of Section 860G(a)(9) of the Internal Revenue Code of 1986, as
amended from time to time, or any successor statute (the “Code”), of a “real
estate mortgage investment conduit,” within the meaning of Section 860D of the
Code, that holds this Note, and (2) a regularly scheduled payment date on or
after that date which is four (4) years after the date of the first monthly
payment due under Section l(b), and provided no Event of Default (or any event
which with the passage of time or the giving of notice, or both, could become
an Event of Default) has occurred under the Security Instrument or under any of
the Loan Documents and is still continuing, Borrower may cause the release of
the Property (in whole but not in part) from the lien of the Security
Instrument and the other Loan Documents upon the satisfaction of the following
conditions precedent:

 

(A)                  the delivery of
not less than sixty (60) days prior written notice to Lender specifying a
regularly scheduled payment date (the “Release Date”) on which the Defeasance
Deposit (hereinafter defined) is to be made;

 

(B)                    the payment to
Lender of interest accrued and unpaid on the principal balance of this Note to
and including the Release Date;

 

(C)                    the payment to
Lender of all other unpaid sums, not including scheduled interest or principal
payments, due under this Note, the Security Instrument and the other Loan
Documents;

 

(D)                   the payment to
Lender of the Defeasance Deposit; and

 

(E)                     the delivery
to Lender of:

 

(1)                       a security
agreement, in form and substance satisfactory to Lender, creating a first
priority lien on the Defeasance Deposit and the U.S. Obligations (hereinafter
defined) purchased on behalf of Borrower with the Defeasance Deposit in
accordance with this subparagraph (the “Security Agreement”);

 

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(2)                       a release
of the Property from the lien of the Security Instrument (for execution by
Lender) in a form appropriate for the jurisdiction in which the Property is
located;

 

(3)                       an officer’s
certificate of Borrower certifying that the requirements set forth in this Subsection
(c)(i) have been satisfied;

 

(4)                       an opinion
of counsel in form satisfactory to Lender stating, among other things, that
defeasance of this Note will not cause any adverse consequences to any REMIC
holding the Loan or the holders of any securities issued by the REMIC or result
in a taxation of the income from the Loan to such REMIC or cause a loss of
REMIC status, and that Lender has a perfected first priority security interest in
the Defeasance Deposit and the U.S. Obligations purchased by Lender on behalf
of Borrower;

 

(5)                       an opinion
of a certified public accountant acceptable to Lender to the effect that the
Defeasance Deposit is adequate to provide payment on or prior to, but as close
as possible to, all successive scheduled payment dates after the Release Date
upon which interest and principal payments are required under this Note
(including the amounts due on the Maturity Date) and in amounts equal to the
scheduled payments due on such dates under this Note;

 

(6)                       evidence in
writing from the applicable Rating Agencies to the effect that such release
will not result in a re-qualification, reduction or withdrawal of any rating in
effect immediately prior to such defeasance for any Securities;

 

(7)                       payment of
all of Lender’s expenses incurred in connection with the defeasance including,
without limitation, reasonable attorneys fees; and

 

(8)                       such other
certificates, documents or instruments as Lender may reasonably request.

 

In connection with
the conditions set forth in Subsection (c)(i)(E) above, Borrower hereby
appoints Lender as its agent and attorney-in-fact for the purpose of using the
Defeasance Deposit to purchase U.S. Obligations which provide payment on or
prior to, but as close as possible to, all successive scheduled payment dates
after the Release Date upon which interest and principal payments are required
under this Note (including the amounts due on the Maturity Date) and in amounts
equal to the scheduled payments due on such dates under this Note (the “Scheduled
Defeasance Payments”). Borrower, pursuant to the Security Agreement or
other appropriate document, shall authorize and direct that the payments
received from the U.S. Obligations may be made directly to Lender and applied
to satisfy the obligations of the Borrower under this Note.

 

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(ii)                      Upon
compliance with the requirements of this Subsection (c), the Property
shall be released from the lien of the Security Instrument and the pledged U.S.
Obligations shall be the sole source of collateral securing this Note. Any
portion of the Defeasance Deposit in excess of the amount necessary to purchase
the U.S. Obligations required by Subsection (c)(i) above and satisfy the Borrower’s
obligations under this Subsection (c) shall be remitted to the Borrower
with the release of the Property from the lien of the Security Instrument.

 

(iii)                   For purposes of
this Subsection (c), the following terms shall have the following meanings:

 

(A)                  The term “Defeasance Deposit” shall mean an amount
equal to 100% of the remaining unpaid principal amount of this Note, the Yield
Maintenance Premium, any reasonable costs and expenses incurred or to be
incurred in the purchase of the U.S. Obligations necessary to meet the
Scheduled Defeasance Payments and any revenue, documentary stamp or intangible
taxes or any other tax or charge due in connection with the transfer of this
Note or otherwise required to accomplish the agreements of this Subsection
(c);

 

(B)                    The term “Yield Maintenance Premium” shall mean the
amount (if any) which, when added to the remaining unpaid principal amount of
this Note, will be sufficient to purchase U.S. Obligations providing the
required Scheduled Defeasance Payments; and

 

(C)                    The term “U.S. Obligations” shall mean direct
non-callable obligations of the United States of America.

 

(iv)                  Upon the release
of the Property in accordance with this Subsection (c), Borrower shall, at Lender’s request,
assign all its obligations and rights under this Note, together with the
pledged Defeasance Deposit, to a successor special purpose entity designated by
Borrower and approved by Lender in its reasonable discretion. Such successor
entity shall execute an assumption agreement in form and substance reasonably
satisfactory to Lender pursuant to which it shall assume Borrower’s obligations
under this Note and the Security Agreement. In connection with such assignment
and assumption, Borrower shall (x) deliver to Lender an opinion of counsel in
form and substance and delivered by counsel satisfactory to Lender in its
reasonable discretion stating, among other things, that such assumption
agreement is enforceable against Borrower and such successor entity in
accordance with its terms and that this Note, the Security Agreement and the
other Loan Documents, as so assumed, are enforceable against such successor
entity in accordance with their respective terms, and (y) pay all costs and
expenses incurred by Lender or its agents in connection with such assignment
and assumption (including, without limitation, the review of the proposed
transferee and the preparation of the assumption agreement and related
documentation). In connection with such assignment and assumption, Borrower and
any Guarantor shall be released of all personal liability under the Note and
the other Loan Documents, but only as to acts or events occurring after the
closing of such assignment and assumption.

 

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(v)                     Upon the
release of the Property in accordance with this Subsection (c), Borrower shall have no further right to
prepay this Note pursuant to the other provisions of this Section 7 or
otherwise.

 

8. SAVINGS CLAUSE

 

This Note is
subject to the express condition that at no time shall Borrower be obligated or
required to pay interest on the principal balance due hereunder at a rate which
could subject Lender to either civil or criminal liability as a result of being
in excess of the maximum interest rate which Borrower is permitted by
applicable law to contract or agree to pay. If by the terms of this Note,
Borrower is at any time required or obligated to pay interest on the principal
balance due hereunder at a rate in excess of such maximum rate, the Applicable
Interest Rate or the Default Rate, as the case may be, shall be deemed to be
immediately reduced to such maximum rate and all previous payments in excess of
the maximum rate shall be deemed to have been payments in reduction of
principal and not on account of the interest due hereunder. All sums paid or
agreed to be paid to Lender for the use, forbearance, or detention of the Debt,
shall, to the extent permitted by applicable law, be amortized, prorated,
allocated, and spread throughout the full stated term of this Note until
payment in full so that the rate or amount of interest on account of the Debt
does not exceed the maximum lawful rate of interest from time to time in effect
and applicable to the Debt for so long as the Debt is outstanding.
Notwithstanding anything to the contrary contained herein or in any of the
other Loan Documents, it is not the intention of Lender to accelerate the
maturity of any interest that has not accrued at the time of such acceleration
or to collect unearned interest at the time of such acceleration.

 

9. WAIVERS

 

(a)                     Except as
specifically provided in the Loan Documents, Borrower and any endorsers,
sureties or guarantors hereof jointly and severally waive presentment and
demand for payment, notice of intent to accelerate maturity, notice of acceleration
of maturity, protest and notice of protest and non-payment, all applicable
exemption rights, valuation and appraisement, notice of demand, and all other
notices in connection with the delivery, acceptance, performance, default or
enforcement of the payment of this Note and the bringing of suit and diligence
in taking any action to collect any sums owing hereunder or in proceeding
against any of the rights and collateral securing payment hereof. Borrower and
any surety, endorser or guarantor hereof agree that any or all of the following
events may occur without notice to them and without in any manner affecting
their liability under or with respect to this Note: (i) the time for any
payments hereunder may be extended from time to time without notice and
consent, (ii) the acceptance by Lender of further collateral, (iii) the release
by Lender of any existing collateral for the payment of this Note, (iv) any and
all renewals, waivers or modifications that may be granted by Lender with
respect to the payment or other provisions of this Note, and/or (v) additional
Borrowers, endorsers, guarantors or sureties may become parties hereto. No
extension of time for the payment of this Note or any installment hereof shall
affect the liability of Borrower under this Note or any endorser or guarantor
hereof even though the Borrower or such endorser or guarantor is not a party to
such agreement.

 

(b)                    Failure of
Lender to exercise any of the options granted herein to Lender upon the
happening of one or more of the events giving rise to such options shall not
constitute a waiver

 

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of the right to exercise
the same or any other option at any subsequent time in respect to the same or
any other event. The acceptance by Lender of any payment hereunder that is less
than payment in full of all amounts due and payable at the time of such payment
shall not constitute a waiver of the right to exercise any of the options
granted herein to Lender at that time or at any subsequent time or nullify any
prior exercise of any such option without the express written acknowledgment of
the Lender.

 

10. EXCULPATION

 

(a)                     Notwithstanding
anything in the Loan Documents to the contrary, but subject to the
qualifications below, Lender and Borrower agree that:

 

(i)                         Borrower
shall be liable upon the Debt and for the other obligations arising under the
Loan Documents to the full extent (but only to the extent) of Borrower’s
interest in the Property; provided, however, that in the event
(A) of fraud, willful misconduct or material misrepresentation by Borrower, its
general partners, if any, its members, if any, its principals, if any, or by
any Guarantor in connection with the loan evidenced by this Note, (B) of a
breach or default under Section 4.3 or Article 8 of the Security
Instrument, or (C) the Property or any part thereof becomes an asset in a
voluntary bankruptcy or insolvency proceeding, the limitation on recourse set
forth in this Subsection 10(a) will be null and void and completely
inapplicable, and this Note shall be with full recourse to Borrower.

 

(ii)                      If an Event
of Default occurs and is continuing, Lender shall not enforce the liability and
obligation of Borrower to perform and observe the obligations contained in this
Note or the Security Instrument by any action or proceeding wherein a money
judgment shall be sought against Borrower, except that Lender may bring a
foreclosure action, action for specific performance or other appropriate action
or proceeding to enable Lender to enforce and realize upon the Security
Instrument or any of the Other Loan Documents and the interest in the Property,
the Rents and any other collateral for which a lien or security interest has
been granted in favor of Lender under the Security Instrument and the Other
Loan Documents; provided, however, that any judgment in any
action or proceeding shall be enforceable against Borrower only to the extent
of Borrower’s interest in the Property, in the Rents and in any other
collateral for which a lien or security interest has been granted in favor of
Lender under the Security Instrument and the other Loan Documents. Lender, by
accepting this Note and the Security Instrument, agrees that it shall not,
except as otherwise herein provided (and only to the extent herein provided),
sue for, seek or demand any deficiency judgment against Borrower in any action
or proceeding, under or by reason of or in connection with this Note, the Other
Loan Documents or the Security Instrument.

 

(iii)                   The provisions
of this Subsection 10(a) shall not (A) constitute a waiver, release or
impairment of any obligation evidenced or secured by this Note, the Other Loan
Documents or the Security Instrument; (B) impair the right of Lender to name
Borrower as a party defendant in any action or suit for judicial foreclosure
and sale under the Security Instrument; (C) affect the validity or
enforceability of any indemnity, guaranty, master lease or similar instrument
made in connection with this Note, the Security Instrument, or the Other Loan
Documents; (D) impair the right of Lender to obtain the appointment of a
receiver; (E) impair the enforcement of the Assignment executed in connection
herewith; (F) impair the right of Lender

 

8

 

to enforce the provisions
of Article 11 of the Security Instrument; or (G) impair the right of
Lender to obtain a deficiency judgment or judgment on this Note against
Borrower if necessary to obtain any insurance proceeds or condemnation awards
to which Lender would otherwise be entitled under the Security Instrument; provided,
however, Lender shall only enforce such judgment against the insurance
proceeds and/or condemnation awards.

 

(iv)                  Notwithstanding
the provisions of this Article to the contrary, Borrower shall be personally
liable to Lender for the Losses (as defined under the Guaranty) Lender incurs
due to: (A) the misapplication or misappropriation of Rents by Borrower or
Guarantor; (B) the misapplication or misappropriation of insurance proceeds or
condemnation awards by Borrower or Guarantor; (C) Borrower’s failure to return
or to reimburse Lender for all Personal Property taken from the Property by or
on behalf of Borrower and not replaced with Personal Property of substantially
the same utility and of substantially the same or greater value; (D) any act of
intentional waste or arson by Borrower, any principal, general partner or
member thereof or by any Guarantor; (E) any fees or commissions paid by
Borrower to any principal, affiliate, general partner or member of Borrower or
any Guarantor in violation of the terms of this Note, the Security Instrument
or the Other Loan Documents; (F) Borrower’s failure to comply with the
environmental indemnification provisions of Article 11 of the Security
Instrument; or (G) any breach of the Environmental Indemnity.

 

(b)                    Nothing herein
shall be deemed to be a waiver of any right which Lender may have under
Sections 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code
to file a claim for the full amount of the Debt or to require that all
collateral shall continue to secure all of the Debt, owing to Lender in
accordance with this Note, the Security Instrument and the Other Loan
Documents.

 

11. AUTHORITY

 

Borrower (and the
undersigned representative of Borrower, if any) represents that Borrower has
full power, authority and legal right to execute, deliver and perform its
obligations pursuant to this Note and the other Loan Documents and that this
Note and the other Loan Documents constitute legal, valid and binding obligations
of Borrower. Borrower further represents that the loan evidenced by the Loan
Documents was made for business or commercial purposes and not for personal,
family or household use.

 

12. NOTICES

 

All notices or
other communications required or permitted to be given pursuant hereto shall be
given in the manner and be effective as specified in the Security Instrument,
directed to the parties at their respective addresses as provided therein.

 

13. TRANSFER

 

Lender shall have
the unrestricted right at any time or from time to time to sell this Note and
the loan evidenced by this Note and the Loan Documents or participation
interests therein. Borrower shall execute, acknowledge and deliver any and all
instruments reasonably requested by Lender to satisfy such purchasers or
participants that the unpaid indebtedness evidenced by this Note is outstanding
upon the terms and provisions set out in this Note and the other Loan

 

9

 

Documents. To the extent,
if any, specified in such assignment or participation, such assignee(s) or
participant(s) shall have the rights and benefits with respect to this Note and
the other Loan Documents as such assignee(s) or participant(s) would have if
they were the Lender hereunder.

 

14. WAIVER OF TRIAL BY JURY

 

BORROWER
HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY
JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH
RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS NOTE OR THE OTHER LOAN
DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION
THEREWITH INCLUDING, BUT NOT LIMITED TO, THOSE RELATING TO (A) ALLEGATIONS THAT
A PARTNERSHIP EXISTS BETWEEN LENDER AND BORROWER; (B) USURY OR PENALTIES OR
DAMAGES THEREFOR; (C) ALLEGATIONS OF UNCONSCIONABLE ACTS, DECEPTIVE TRADE
PRACTICE, LACK OF GOOD FAITH OR FAIR DEALING, LACK OF COMMERCIAL
REASONABLENESS, OR SPECIAL RELATIONSHIPS (SUCH AS FIDUCIARY, TRUST OR
CONFIDENTIAL RELATIONSHIP); (D) ALLEGATIONS OF DOMINION, CONTROL, ALTER EGO,
INSTRUMENTALITY, FRAUD, REAL ESTATE FRAUD, MISREPRESENTATION, DURESS, COERCION,
UNDUE INFLUENCE, INTERFERENCE OR NEGLIGENCE; (E) ALLEGATIONS OF TORTIOUS
INTERFERENCE WITH PRESENT OR PROSPECTIVE BUSINESS RELATIONSHIPS OR OF
ANTITRUST; OR (F) SLANDER, LIBEL OR DAMAGE TO REPUTATION. THIS WAIVER OF RIGHT
TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER, AND IS
INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE
RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED TO
FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS
WAIVER BY BORROWER.

 

15. APPLICABLE LAW

 

This Note shall be
governed by and construed in accordance with the laws of the state in which the
real property encumbered by the Security Instrument is located (without regard
to any conflict of laws or principles) and the applicable laws of the United
States of America.

 

16. JURISDICTION

 

BORROWER
HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY COURT OF COMPETENT
JURISDICTION LOCATED IN THE STATE IN WHICH THE PROPERTY IS LOCATED IN
CONNECTION WITH ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE.

 

17. NO ORAL CHANGE

 

The provisions of
this Note and the Loan Documents may be amended or revised only by an
instrument in writing signed by the Borrower and Lender. This Note and all the
other Loan Documents embody the final, entire agreement of Borrower and Lender
and supersede any and

 

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all prior commitments,
agreements, representations and understandings, whether written or oral,
relating to the subject matter hereof and thereof and may not be contradicted
or varied by evidence of prior, contemporaneous or subsequent oral agreements
or discussions of Borrower and Lender. There are no oral agreements between
Borrower and Lender.

 

11

 

This FIXED RATE
NOTE is executed as of the day and year first above written.

 

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  A-S-K 41 ELDRIDGE-W. LITTLE YORK, L.P., a Texas 

  
	
   

  	
  limited
  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  A-S-K
  41, L.C., a Texas limited liability company, 

  
	
   

  	
   

  	
  its
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Steven D. Alvis

  	
   

  
	
   

  	
   

  	
  Name: Steven D. Alvis

  
	
   

  	
   

  	
  Title: Member-Manager

  

 

 

 

ALLONGE

 

Loan
# 3150

	
  Asset
  Name:

  	
  Eldridge Lakes Town Center

  
	
   

  	
  6340 North Eldridge Parkway

  
	
   

  	
  Houston, TX 77041

  

 

Allonge endorsement on December 29, 2004 attached to the Note in the
stated original principal amount of 8100000 executed by A-S-K 41 Eldridge - W.
Little York, LP..

 

Pay to the order of Wells Fargo Bank,
N.A., as trustee for the registered Holders of J.P. Morgan Chase Commercial
Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates,
Series 2004-C3, without recourse, representation or warranty, expressed or
implied.

 

 

	
   

  	
   

  	
  JPMorgan
  Chase Bank, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Jordan Walder

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jordan Walder

  
	
   

  	
   

  	
  Title:

  	
  Authorized
  SignatoryExhibit 10.75

 

CLOSING AGREEMENT

(Spring Town Center)

 

THIS
CLOSING AGREEMENT (this “Agreement”)
made as of July 21, 2006 (the “Effective Date”),
by and between A-K-S 75 NEC SPRING TOWN CENTER, L.P., a Texas
limited partnership (“Seller”), and MB SPRING TOWN CENTER LIMITED PARTNERSHIP, an Illinois limited partnership (“Purchaser”).

W I  T  N E S S E T H:

WHEREAS,
Seller and Purchaser are parties to that certain letter agreement (as
heretofore modified, amended and extended, the “LOI”)
dated May 18, 2005, setting forth the basic terms and conditions pursuant to
which Purchaser will purchase from Seller and Seller will sell to Purchaser
certain real property and improvements, including, without limitation, the
Property (as defined below).  Capitalized
terms used but not defined herein shall have the meanings ascribed thereto in
the LOI;

WHEREAS,
contemporaneously herewith, Seller desires to sell to Purchaser, and Purchaser
desires to purchase from Seller, the Property (as defined below), upon and
subject to the terms and conditions hereinafter set forth;

NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

1.                                       Purchase and Sale.  Subject to the terms of this Agreement and
the LOI, Seller hereby agrees to sell and convey, subject to the Permitted
Encumbrances (as defined below), and Purchaser hereby agrees to purchase and
pay for, notwithstanding the Permitted Encumbrances, the following property:

(a)                                  that certain
tract of land and easement estates (collectively, the “Land”)
situated in Harris County, Texas, as more particularly described on Exhibit A hereto, together
with all rights and appurtenances pertaining to such Land, and all right, title
and interest of Seller in and to (i) all streets, alleys, easements, and
rights of way in, on, across, in front of, abutting or adjoining the Land; and
(ii) all oil, gas and other minerals in, on or under the Land;

(b)                                 all
improvements situated on the Land and all fixtures and other property affixed
thereto (collectively, the “Improvements”);

(c)                                  any furniture,
furnishings, equipment, systems, facilities and machinery, and conduits to
provide life safety, heat, ventilation, air conditioning, electrical power,
lighting, plumbing, security, gas, sewer and water thereto, to the extent owned
by Seller and now located on or within the Land and the Improvements and used
in connection therewith (collectively, the “Personal
Property”);

 

 

 

(d)                                 all of Seller’s
right, title and interest as landlord in the leases, as amended, described on Exhibit B hereto for space
situated within the Land and Improvements (collectively, the “Leases”), and to the extent paid to Seller, all prepaid
rents under the Lease applicable to the period from and after the Closing (as
defined below), and security and other deposits under the Leases;

(e)                                  all of Seller’s
right, title and interest (but without warranty as to assignability) in all
written contracts (if any) relating solely to the improvement, maintenance or
operation of, or the provision of services or supplies solely to, the Land or
the Improvements (such as trash removal or elevator, HVAC or landscaping
maintenance contracts, and development and common area maintenance agreements)
(collectively, the “Service Contracts”);

(f)                                    all of Seller’s
right, title and interest (but without warranty as to assignability) in any
unexpired warranties, guaranties and bonds (including manufacturers’ warranties
on Personal Property and contractors’ warranties for tenant finish work) (if
any) attributable to the Improvements or Personal Property (the “Warranties”);

(g)                                 all of Seller’s
right, title and interest (but without warranty as to assignability) in all
governmental permits, licenses, certificates and authorizations, including,
without limitation, water, wastewater and other utility rights, allocation,
availability and/or capacity and certificates of occupancy, (if any) attributable
to the Land, Improvements or Personal Property (the “Permits”);

(h)                                 all of Seller’s
right, title and interest (but without warranty as to assignability) in and to
all trade names (excluding, however, the name “NewQuest Properties”), logos and
other intangible rights with respect to the Property (the “Intangibles”); and

(i)                                     all of Seller’s
right, title and interest (but without warranty as to assignability) in and to
all escrow and impound accounts held by the Lender (as hereinafter defined)
with respect to the Property (the “Impounds”).

The matters described in items (a) through (i) above are
hereinafter collectively referred to as the “Property.”  To the extent that any of the personal
property described in clause (c) above is owned by occupants of space at
the Property or owned by any service provider pursuant to any of the Service
Contracts or owned by a utility pursuant to one or more Permitted Encumbrances,
it shall be excluded from the definition of the term Property and from the term
Personal Property as used in this Agreement.

2.                                       Purchase Price.

(a)                                  The total
purchase price (the “Purchase Price”)
to be paid by Purchaser to Seller for the Property is SIXTEEN MILLION NINE
HUNDRED SIXTY-EIGHT THOUSAND FIVE HUNDRED ELEVEN AND 28/100 DOLLARS ($16,968,511.28).  The Purchase Price is to be paid by Purchaser
as follows:

 

2

 

(i)                                     The assumption by Purchaser and promise
to pay, according to the terms and subject to the limitations on personal
liability thereof, all principal and interest remaining unpaid as of the
Effective Date on the Existing Indebtedness (hereinafter defined); and

(ii)                                  The balance of the Purchase Price (i.e.,
an amount equal to the Purchase Price less the principal balance owing on the
Existing Indebtedness as of the Effective Date) shall be payable in cash or
other immediately available funds at Closing as set forth herein below.

“Existing Indebtedness” means the
indebtedness evidenced by that certain promissory note (as heretofore amended,
extended or modified, the “Existing Note”)
executed by Seller, originally payable to the order of JPMORGAN CHASE BANK,
N.A. (ALender”), dated December 29, 2004, and being in
the original principal amount of $8,200,000, such Existing Note having been
assigned to Wells Fargo Bank, N.A., as Trustee for the Registered Holders of
J.P. Morgan Chase Commercial Mortgage Securities Corp., Commercial Pass-Through
Certificates, Series 2004-C3, by instrument filed for record under Clerk’s File
No. Y580424 of the Official Public Records of Real Property of Harris County,
Texas.  The Existing Note is secured, in
part, by that certain Deed of Trust from Seller to Kim Sobieski, as Trustee for
Lender, of even date with the Existing Note, filed for record under Clerk’s
File No. Y141028 of the Official Public Records of Real Property of Harris
County, Texas (as heretofore amended, extended or modified the AExisting Mortgage@) and encumbering the Property.  The Existing Note, the Existing Mortgage and
all other documents, instruments and agreements evidencing or securing the Existing
Indebtedness are hereinafter sometimes collectively referred to as the “Existing
Loan Documents.”

(b)                                 The Purchase
Price set forth in Section 2(a) above is based upon (i) the Property being 100%
occupied at the time of Closing (except for vacant tenant space as to which the
following earnout provisions shall apply), with all tenants occupying their
space, open for business, and paying full rent, including common area
maintenance charges, taxes and insurance current, as shown on Exhibit B
attached to the LOI, and (ii) the Existing Indebtedness being presently defeasible,
and assuming Seller has paid all costs and expenses associated with the
defeasance of the Existing Indebtedness.  Since (a) the Property is less than 100%
occupied as of the Effective Date, and (b) the Existing Indebtedness on the Property is not
defeasible as of the Effective Date, only a portion (the “Cash at Closing”) of the balance of the Purchase Price described in Section 2(a)(ii) above (that portion
being $2,400,080.29) is being paid by Purchaser to Seller as of the
Closing.  The difference between the balance of the Purchase
Price described in Section 2(a)(ii) above and the Cash at Closing shall be
referred to herein as the “Earnout”.  The Earnout is comprised of (x) Earnout attributable
to the anticipated leasing of the Property (the “Leasing
Earnout”), which Leasing Earnout amount is $870,780.00, and (y) the
Earnout attributable to the successful defeasance of the Exisitng Indebtredness
(the “Loan Earnout”), which Loan Earnout amount
is $6,068,912.10.  The total Purchase
Price set forth above may be increased up to a maximum of one hundred ten
percent (110%) (utilizing the Purchase 

 

3

 

Price/Earnout Formula set forth in the LOI,
with the Base Rent Divider modified in accordance with Attachment 2
hereto) if actual rents achieved for vacant space in the Property leased after
the Closing exceed the pro forma rent set forth in Exhibit B attached to the
LOI with respect to such space.  In such
case, the Leasing Earnout resulting from the increased Purchase Price shall be
determined by subtracting from such increased Purchase Price that portion of
the original Purchase Price that was paid by Purchaser to Seller at the Closing
and the amount of the Loan Earnout as set forth below.  The Earnout shall be payable as follows:

(i)                                     Upon the
acceptance by Purchaser of any executed lease covering space in the Property
that was vacant on the Effective Date (as shown and depicted on the site plan
for the Property attached hereto as Attachment 1, herein called an “Accepted Lease”), Seller shall be responsible for the cost
and expense of leasing out and paying all costs related to placing such tenants
in their space.  However, Purchaser shall
pay to Seller (as a portion of the Leasing Earnout and as and when paid, or
required to be paid, by Seller pursuant to the terms of any such Accepted
Lease, even if required to be paid by Seller prior to a Leasing Earnout
Closing) an amount equal to tenant improvements and leasing commissions
actually paid or payable by Seller (not in excess of $15.00 per square foot for
tenant improvements [the “Pro Forma Tenant
Improvement Allowance”] and $3.00 per square foot for leasing
commissions) pursuant to the terms and provisions of any Accepted Lease. In the
event that Seller procures a prospective lease with a tenant improvement
allowance that exceeds the Pro Forma Tenant Improvement Allowance, regardless
of whether such excess tenant improvement allowance causes the rent to exceed
the proforma rent set forth on Exhibit B attached to the LOI, then in such
event, Purchaser, at its sole option, may elect to accept or reject such lease
(and upon acceptance, such lease would become an Accepted Lease), and, if
accepted, Purchaser shall pay such excess tenant improvement costs.  Purchaser agrees not to unreasonably
withhold, condition or delay its acceptance of any lease procured by Seller
provided that such lease is on the lease form previously approved by Purchaser,
the base rental provided for therein equals or exceeds the pro forma rent set
forth on Exhibit B attached to the LOI, and the tenant improvement allowance
does not exceed the Pro Forma Tenant Improvement Allowance.

(ii)                                  From and after
the Effective Date, a Leasing Earnout Closing shall occur, upon ten (10)
business days following written notice (a “Seller’s Notice”)
to Purchaser, which notice may not be given until such time as the tenant under
any Accepted Lease shall have accepted its space in the manner required by such
lease and taken total possession of such space, shall have opened for business,
and shall have commenced full rental payments, including common area
maintenance charges, taxes and insurance on a prorata basis, as shown on
Exhibit B to the LOI.  Within five (5)
days prior to any Leasing Earnout Closing, Seller shall furnish Purchaser a
current date down of the title insurance commitment showing no new 

 

4

 

                                                exceptions to
title other than current taxes not yet due and payable.  At any such Leasing Earnout Closing,
Purchaser shall pay to Seller the balance the Leasing Earnout applicable to the
tenant space covered by such Accepted Lease, calculated in accordance with paragraph
15 and Exhibit C of the LOI (with the Base Rent Divider modified in accordance
with Attachment 2 hereto), reduced by any amounts previously paid by
Purchaser to Seller for leasing commissions and tenant improvements, as
provided in Section 2(b)(i) above.

(iii)                               Reference is hereby made to the schedule
of rents (the “Schedule of Rents”) attached
hereto as Attachment 2.  Such
Schedule of Rents has been prepared as of the Effective Date, on a space by
space basis, for each of the existing tenant spaces (including the vacant
tenant spaces) in the Property.  For
purposes of this Subsection (iii), the total net rentable area for the Property
(the “Total NRA”) shall be the amount
reflected on Attachment 2, the “Vacant Space”
for the Property shall be the total amount of vacant space in the Property as
reflected on Attachment 2, and the “Existing Leased Space”
for the Property (which shall be a fixed number and shall not be subject to
change based on any tenant move-outs or lease terminations after the Effective
Date) shall be the Total NRA reduced by the amount of the Vacant Space as of
the Effective Date.  In addition to the
foregoing provisions of this Section 2(b), at such time as so much of the
Vacant Space has been leased after the Effective Date pursuant to any Accepted
Lease(s) such that the percentage obtained by dividing (1) the amount of the
Existing Leased Space plus the amount of Vacant Space that is leased after the
Effective Date pursuant to any Accepted Lease(s), by (2) the Total NRA, equals
or exceeds 6.85982%, any remaining portion of the Leasing Earnout shall be paid
to Seller.

(iv)                              The date upon which the Existing
Indebtedness first becomes defeasible shall be referred to herein as the “Initial Defeasance Date.” 
Seller shall have the option to designate an actual defeasance date (the
“Designated Defeasance Date”), which
Designated Defeasance Date must be no later than six (6) months following the
Initial Defeasance Date, by providing Purchaser at least fifteen (15) business
days prior written notice of such Designated Defeasance Date (the “Defeasance Notice”). 
In the event Seller fails to designate a date within such six (6) month
period, the Designated Defeasance Date shall be deemed to be the last day of
such six (6) month period.  At least
three (3) business days prior to the Designated Defeasance Date, Seller and/or Purchaser shall
request and obtain a final defeasance closing statement (the “Defeasance Closing Statement”), assuming a Designated
Defeasance Date settlement date, from Commercial Defeasance LLC (“Commercial Defeasance”), 11121 Carmel Commons Blvd, Suite
250, Charlotte, NC 28226, (704) 248-2608, Attn: Joseph Parry.  Purchaser has previously approved the form of
defeasance documents utilized by Commercial Defeasance and covenants and agrees
to use its best efforts to cause the defeasance of the Existing 

 

5

 

                                                Indebtedness to be completed on the
Designated Defeasance Date.  Seller shall
be solely responsible for all fees, expenses, penalties and other costs
incurred in connection with such defeasance, including, without limitation, all
legal and accounting fees associated with such defeasance.  Upon successful defeasance of the Existing
Indebtedness, the total amount of Seller’s costs and expenses in connection
with such defeasance, as reflected on the Defeasance Closing Statement, shall
be released from the Loan Earnout Escrow to pay the costs of the defeasance,
and all remaining
Loan Earnout Escrow Funds in the Loan Earnout Escrow shall be released to
Seller.  From and after the successful
defeasance of the Existing Indebtedness and release of the Loan Earnout Escrow Funds, as
provided hereinabove, Seller’s obligations pursuant to this Section 2(b)(iv)
shall be satisfied, and Seller shall be released from any further liability for
such costs and expenses.  Notwithstanding
anything to the contrary contained herein or in the LOI, Purchaser shall be
solely responsible for the payment of all principal and interest on the
Existing Indebtedness after the Effective Date of this Agreement.

(c)                                  Pursuant to the
provisions of the Leasing Earnout Escrow Agreement referred to in Section 5(o)
hereinafter, $870,780.00 (the “Leasing Earnout Escrow
Funds”) has been placed in escrow (the “Leasing
Earnout Escrow”) by Purchaser to secure the payment of the Leasing Earnout.  Notwithstanding anything to the contrary
contained in the LOI, Seller and Purchaser have agreed that Purchaser will
escrow the entire estimated Leasing Earnout into the Leasing Earnout
Escrow.  In the event the actual Purchase
Price and Leasing Earnout is increased pursuant to Section 2(b) of this
Agreement and pursuant to the LOI, and the Leasing Earnout exceeds the amount
in the Leasing Earnout Escrow, Purchaser shall remain liable to Seller for such
increased Leasing Earnout amount.  Funds
in the Leasing Earnout Escrow shall be drawn to satisfy the obligations of
Purchaser under this Section 2 and Paragraph 15 of the LOI.  Any funds remaining in the Leasing Earnout
Escrow after satisfaction by Purchaser of all of the obligations under this
Section 2 and Paragraph 15 of the LOI shall be disbursed to Purchaser.

(d)                                 Seller shall be
responsible on a monthly basis for all real property taxes for the space that
is vacant as of the Effective Date (and, thus, part of the Leasing Earnout formula)
until such time as the Seller procures an Accepted Lease for that space, but in
no event, for more than thirty-six (36) months after the Effective Date.  Purchaser shall be responsible for all common
area maintenance costs and insurance costs on space in the Property that is
vacant as of the Effective Date.

(e)                                  It is expressly
understood and agreed that Seller shall be deemed to have waived its right to
any unpaid Leasing Earnout with respect to any Seller’s Notice which has not
been sent to Purchaser within thirty-six (36) months after the Effective Date.  Notwithstanding the foregoing, if at the end
of the thirty-six (36) month Leasing Earnout period, twenty percent (20%) or
less of the vacant space in the Property in existence as of the Effective Date
remains unleased, such initial Leasing Earnout period shall be extended another
thirty-six (36) months provided that Seller 

 

6

 

“master leases” such vacant
space by depositing in escrow with the Escrow Agent (hereinafter defined)
(pursuant to an escrow agreement reasonably acceptable to Purchaser, Seller and
the title company) an amount equal to pro forma rent (as set forth on Exhibit B
attached to the LOI) and current common area maintenance costs, taxes and
insurance (as reasonably estimated by Purchaser and Seller) (the “Master Lease Escrow”) for such vacant space for such
additional thirty-six (36) month period. 
Thereafter, Purchaser shall be entitled to withdraw 1/36th of such
escrowed amount with respect to each vacant space on the first day of each
calendar month until such vacant space is leased, and upon payment of the Leasing
Earnout with respect to any Accepted Lease with respect to such vacant space,
the portion of the funds in the Master Lease Escrow which relate to such leased
space, from and after the date of such Accepted Lease, shall be released to
Seller.

(f)                                    Alternatively,
if at the end of the thirty-six (36) month Leasing Earnout period, fifteen
percent (15%) or less of the vacant space in the Property in existence as of
the Effective Date remains unleased, Purchaser shall, at Seller’s option and
within fifteen (15) days after the end of such 36-month Leasing Earnout period,
pay to Seller fifty percent (50%) of the remaining unpaid Leasing Earnout
allocable to the Property as of such date computed based upon the Purchase
Price/Leasing Earnout Formula for the Property utilizing the pro forma rents
pertaining to such vacant space as set forth on Exhibit B attached to the LOI.

(g)                                 Pursuant to the
provisions of the Loan Earnout Escrow Agreement referred to in Section 5(n)
hereinafter, $6,068,912.10 (the “Loan Earnout Escrow Funds”)
has been placed in escrow (the “Loan Earnout Escrow”)
by Purchaser to secure the payment of the Loan Earnout.  The Loan Earnout Escrow Funds shall be placed
in an interest bearing account, and all interest thereon shall be paid to Seler
upon receipt thereof by the escrow holder. 
Funds in the Loan Earnout Escrow shall be distributed as set forth
hereinabove to satisfy the obligations of Seller under this Section 2 and
Paragraph 1 of the LOI.

3.                                       Seller’s
Deliveries.

Prior
to the Effective Date, Seller has delivered to or made available to Purchaser,
originals or true, correct, complete copies of the following:

(a)                                  a current title
insurance commitment issued by American Title Company of Houston as agent on
behalf of Chicago Title Insurance Company (“Title
Company”), including copies of all recorded exceptions to title
referred to therein (collectively, the “Title Commitment”),
showing the status of title to the Land and Improvements according to the Title
Company.  Purchaser and Seller agree that
those exceptions shown on Exhibit F attached hereto shall be “Permitted Exceptions” hereunder;

(b)                                 Seller’s
existing surveys of the Land and
Improvements, together with updates of the same prepared in accordance with
Purchaser’s instructions (collectively, the “Survey”);

 

7

 

(c)                                  a rent roll of
the Property, together with copies of the Leases;

(d)                                 copies of all
written Services Contracts, Warranties and Permits;

(e)                                  copies of any
and all third-party inspection reports, including without limitation, soil
tests, environmental studies, and engineering reports in Seller’s possession;
but with no warranty as to the accuracy or completeness thereof; and,

(f)                                    copies of the
Existing Loan Documents and any documents necessary to consummate the
assignment by Seller, and assumption by Purchaser, of the Existing Indebtedness
(collectively, the “Assumption Documents”).

4.                                       Investigation.  Prior to the Effective Date, Purchaser has
had the opportunity to investigate the Property and all matters relevant to its
acquisition, ownership and operation.

5.                                       The Closing.

The
consummation of the transaction contemplated by this Agreement (the “Closing”) shall take place through an escrow with Chicago
Title & Trust Company (the “Escrow Agent”) contemporaneously
herewith.  Unless waived by the party
entitled to the benefit thereof, the obligations of either party to close under
this Agreement shall be subject to the performance by the other party of all of
the material covenants, agreements and obligations required to be performed by
such party under this Agreement on or before the Closing.  At the Closing, the following shall occur:

(a)                                  Seller shall
deliver to Purchaser a duly executed and acknowledged Special Warranty Deed (collectively,
the “Deed”) in substantially the form
attached hereto as Exhibit C.

(b)                                 Seller and
Purchaser shall execute and deliver a Bill of Sale, Assignment and Assumption
of Contracts (“Bill of Sale”) in the form of Exhibit E hereto, conveying to Purchaser
the Personal Property, Service Contracts, Warranties and Intangibles.

(c)                                  Purchaser shall
pay the balance of the Purchase Price as provided in Section 2(b) hereof,
and the parties shall execute settlement statements reflecting the Purchase
Price and the prorations, adjustments and closing costs described in Section 6
hereof.

(d)                                 Seller and
Purchaser shall enter into an Assignment and Assumption of Leases in
substantially the form attached hereto as Exhibit D, whereby
Seller shall deliver as provided in this Agreement and assign to Purchaser the
landlord’s interest in the (i) Leases and (ii) any and all deposits
under the Leases and not previously applied and whereby Purchaser shall assume
all of the obligations of the landlord under the Leases arising from and after
the Closing, including any obligation to account for the security deposits
assigned to Purchaser.

 

8

 

(e)                                  Seller shall
deliver to Purchaser originals (or to the extent originals are not in Seller’s
possession, copies) of the Leases, Service Contracts, Warranties, Permits,
plans and specifications of the Improvements, tenant files and certificates of
occupancy (if applicable) relating to the Property within Seller’s possession.

(f)                                    The parties
shall execute a blank form written notice addressed to tenants under the Leases
notifying such tenants of the acquisition of the Property by Purchaser, which
shall be delivered to Purchaser at Closing.

(g)                                 Pursuant to the
terms and conditions of this Agreement, possession of the Property shall be
delivered to Purchaser at Closing.

(h)                                 Seller shall
deliver to Purchaser all keys to all locks on the Property within Seller’s
possession (or the possession of its agents).

(i)                                     Seller shall
deliver to Purchaser a “non-foreign affidavit”
acknowledging that Seller is not a nonresident alien within the meaning of
Section 1445 of the Internal Revenue Code of 1986, as amended.

(j)                                     Seller and
Purchaser shall each execute and deliver to the other party such disclosures as
may be required by applicable law.

(k)                                  Seller shall
deliver, or cause to be delivered, to Purchaser (or shall provide evidence that
the Title Company is unconditionally prepared to issue to Purchaser) a TLTA
Form B Owner’s Policy of Title Insurance (the “Title Policy”) with respect to the Property, together with
those endorsements set forth in Section 6(l) of this Agreement, and insuring
any appurtenant easements in the amount of the Purchase Price, insuring
Purchaser’s fee simple title to the Property to be good and indefeasible
subject to the terms of such Title Policy and the exceptions specified therein.

(l)                                     Each party
shall deliver to the other party such documentary and other evidence as may be
reasonably required by the Title Company including, without limitation, such
documents evidencing its existence and/or good standing and the authority of
the person or persons who are executing the various documents on its behalf in
connection with this Agreement, and a certificate confirming such party’s
representations and warranties and, in the case of Seller, Seller will execute
customary affidavits of debts, liens, and possession required by the Title
Company, including, including, without limitation, those required to limit any
exception for “parties in possession” to the rights of tenants, as tenants
only, under the Leases delivered to Purchaser in accordance with Section 3.

(m)                               The Purchaser
and NewQuest Properties shall execute and deliver to the other party a Leasing
Agreement in form and substance reasonably acceptable to Purchaser and NewQuest
Properties.

(n)                                 Each party
shall execute and deliver to the other party the escrow agreement (the “Loan Earnout Escrow Agreement”) relating to the escrow of
certain 

 

9

 

funds contemplated to be used to pay all
costs, premiums and penalties to defease the Existing Indebtedness, as contemplated
by Paragraph 1 of the LOI.

(o)                                 Each party
shall execute and deliver to the other party the escrow agreement (the “Leasing Earnout Escrow Agreement”) relating to the Leasing Earnout
Escrow (to which shall be attached the approved form of master lease
contemplated by Paragraph 15 of the LOI), as contemplated by Section 2 of this
Agreement and Paragraph 15 of the LOI.

(p)                                 Each party
shall execute and deliver to the other party such agreements as may be
reasonably required as contemplated by Paragraph 17 of the LOI, including, to
the extent applicable, any required REA or Sign Agreement contemplated therein.

(q)                                 Purchaser shall
execute and deliver the Assumption Documents.

6.                                       Prorations.

(a)                                  Taxes.  General real estate and personal property
taxes and assessments relating to the Property shall be prorated and shall be
assumed at Closing by Purchaser.  The
proration for such taxes and assessments shall be based upon, at Purchaser’s
option, the greater of (i) one hundred ten percent (110%) of the most recently
issued tax bill for the Property, or (ii) the estimated assessment for calendar
year 2006 utilizing the local tax assessor’s method of assessment.  If the most recent tax bill is not for the
current tax year, then the parties shall reprorate within thirty (30) days of
the receipt of the tax bill for the current tax year.  Purchaser shall receive a credit at Closing
equal to the prorated amount of such taxes through Closing.  Seller shall be responsible for all “roll-back”
taxes assessed against the Property for any period before or after the Closing.  After Closing, Purchaser shall have sole
authority to control the progress of, and to make all decisions with respect
to, any proceedings for the reduction of the assessed valuation of the
Property.  All net tax refunds and credits
attributable to any period prior to the Closing Date which Seller has paid or
for which Seller has given a credit to Purchaser shall belong to and be the
property of Seller, provided, however, that any such refunds and credits that
are the property of tenants under Leases shall be promptly remitted directly to
such tenants.  All net tax refunds and
credits attributable to any period subsequent to the Closing Date shall belong
to and be the property of Purchaser.

(b)                                 Fixed, Minimum
and Base Rents.  Subject to
Section 6(g) below, Seller shall be entitled to fixed, minimum and base
rents which are due or past due or not yet due but accrued under the terms of
the Leases, prorated to 11:59 p.m. of the day prior to the Closing, regardless
of when such payments are actually made. 
At Closing, rents for the month of Closing will be prorated as provided
below.  “Delinquent Amounts”, as defined
in Section 6(j) below, shall be handled in the manner provided in Section 6(j)
below).  All scheduled payments of fixed,
minimum or base rents received by Seller or Purchaser for the month of Closing
shall be prorated based upon the number of days in that month occurring before
the Closing.  If, as of the Closing, any 

 

10

 

scheduled payment of fixed, minimum or base
rents has not been paid by a tenant for the month of Closing (such amount being
referred to as the “Current Unpaid Rent”
for such tenant), than any subsequent payments made by such tenant after
Closing shall first be applied to (but only to the extent of) the Current
Unpaid Rent for such tenant.  If after
the Closing, Seller receives any payment from a tenant with Current Unpaid
Rent, Seller shall be entitled to retain from any such payment the amount of
the Current Unpaid Rent for such tenant (with the balance of any such payment
being treated as a “Delinquent Amount” and disposed of pursuant to the
provisions of Section 6(j) below, or if Purchaser receives any such payment
from a tenant with Current Unpaid Rent, Purchaser shall promptly remit to Seller
from any such payment the amount of the Current Unpaid Rent for such tenant
(with the balance of any such payment being treated as a “Delinquent Amount”
and disposed of pursuant to the provisions of Section 6(j) below.

(c)                                  Percentage
Rents.  Any percentage rents due or
paid under any of the Leases (“Percentage
Rent”) shall be prorated between Purchaser and Seller outside of
escrow as of the Closing Date on a LeaseBbyBLease basis, as
follows;  (a) Seller shall be
entitled to receive the portion of the Percentage Rent under each Lease for the
Lease Year in which Closing occurs, which portion shall be the ratio of the
number of days of said Lease Year in which Seller was Landlord under the Lease
to the total number of days in the Lease Year, and (b) Purchaser shall
receive the balance of Percentage Rent paid under each Lease for the Lease
Year.  As used herein, the term “Lease Year” means the twelve (12) month
period as to which annual Percentage Rent is owed under each Lease.  Upon receipt by either Seller or Purchaser of
any gross sales reports (“Gross Sales Reports”)
and any full or partial payment of Percentage Rent from any tenant of the
Property, the party receiving the same shall provide to the other party a copy
of the Gross Sales Report and a check for the other party’s proBrata share of the Percentage
Rent within five (5) days of the receipt thereof.  In the event that the tenant only remits a
partial payment, then the amount to be remitted to the other party shall be its
proBrata share of
the partial payment.  Nothing contained
herein shall be deemed or construed to require either Purchaser or Seller to
pay to the other party its proBrata share of the Percentage
Rent prior to receiving the Percentage Rent from the tenant, and the acceptance
or negotiation of any check for Percentage Rent by either party shall not be
deemed a waiver of that party’s right to contest the accuracy or amount of the
Percentage Rent paid by the tenant.

(d)                                 Utilities
Charges and Deposits.  Water and
sewer service charges, telephone, cable television and charges for all other
utilities, including, without limitation, steam, electricity and gas shall be
prorated to the date of Closing.  Seller
shall cause all utility meters to be read on the Closing Date and Seller shall
pay to Purchaser (or furnish evidence of prior payment) an amount equal to
utility charges incurred or accrued up to the reading of such utility
meters.  Seller shall retain the right to
any security deposits on deposit with any utility companies, and Purchaser
shall be required to deposit with any such utility companies security deposits
for its own account.  If final readings
and billings cannot be obtained as of the Closing Date, the 

 

11

 

final bills when received shall be prorated
based upon the number of days Seller owned the Subject Properties in such final
billing period.

(e)                                  Rent
Concessions, Tenant Improvements and Commissions.  Purchaser shall be credited at Closing with
the amount of any and all rent concessions (except for those, if any, that are
reflected in Paragraph 18 and Paragraph 19 of the LOI, as to which no credit
shall be given to Purchaser) given by Seller to any tenant of the Property for
any period beyond the Closing Date.  Seller
shall be responsible for all leasing commissions and all tenant improvement
costs, refurbishment allowances and other tenant inducements, which relate to
the Leases which were entered into by or on behalf of Seller or any prior owner
of the Property prior to the Effective Date hereof, whether or not payment for
such item is due before or after the Closing. 
With respect to any Leases entered into after the Effective Date of this
Agreement, Purchaser shall be responsible for any such expenses; provided,
however, with respect to any Lease entered into after the Effective Date
covering tenant space that is the subject matter of the Leasing Earnout Escrow
Agreement, the terms and provisions of Section 2 of this Agreement and the Leasing
Earnout Escrow Agreement shall govern and control with respect to the
allocation of responsibility between Seller and Purchaser for the payment of
leasing commissions and tenant improvements. 
At Closing, Purchaser shall be entitled to a credit against the Purchase
Price in the total amount of such items for which Seller is responsible.

(f)                                    Lender Escrow
Accounts and Impounds.  At
Closing, Seller shall be credited for the full amount of any escrow accounts
and impounds maintained by the Lender with respect to the Property, Seller’s
interest in such escrow accounts and impounds having been assigned by Seller to
Purchaser contemporaneously with the Closing.

(g)                                 Other Items of
Expense or Receipt.  All other
customarily prorated items of expense or receipt (excluding those items
previously addressed in this Section 6 above) shall be prorated between the Seller
and Purchaser as of the Closing, except to the extent certain expenses are
payable by tenants under the Leases on a annual basis after Closing, in which
event such expenses shall be not be prorated and shall be assumed in their
entirety by Purchaser.  To the extent Purchaser
will assume any obligations which are attributable to periods of time prior to
the Closing Date, Purchaser shall receive a credit for such amount at
Closing.  The Seller shall retain (and
the Assignment of Leases shall reserve to Seller) all receivables from tenants
for common area maintenance, taxes and insurance for 2006 and previous years
and Seller shall have the right to pursue and collect such receivables from all
tenants after the Closing; provided, Seller shall have no right to sue any
current tenant under the Leases. 
Purchaser shall cooperate with Seller in the collection of such
receivables.  Purchaser shall have no
obligation to take any enforcement action, but if any such amounts are paid to Purchaser,
they shall be paid immediately to Seller by Purchaser.  If the apportionment of any payments relating
to common area maintenance charges for calendar year 2006 (which have, as of
the Closing, been billed, but not collected, by Seller) received by Purchaser
after the date of Closing from a tenant under any of the Leases on account of
periods prior to Closing and on account of sums which are 

 

12

 

attributable to expenses incurred by the
lessor/landlord for periods of time prior to Closing (and which are not
reimbursed or credited by Purchaser to Seller pursuant to any other provision
of this Agreement), cannot be precisely determined at the time of Closing, such
sums shall be apportioned on a cash basis at closing pro-rata between Purchaser
and Seller on a per diem basis as of the date of Closing.  A post closing adjustment shall be made, if
necessary, between Purchaser and Seller for such apportioned items (including
specifically, without limitation, the payment by Purchaser to Seller of common
area maintenance charges for calendar year 2006 to the extent collected by
Purchaser from and after the Closing Date) within thirty (30) days after the
sums can be precisely determined. The provisions hereof shall expressly survive
the Closing.  Except with respect to
items prorated at the Closing and the items referred to in Section 2 of this
Agreement and the Leasing Earnout Escrow Agreement, Seller shall be responsible
for payment of any and all bills or charges incurred on or prior to the Closing
for work, services, supplies or materials relating to the Property, and Purchaser
shall be responsible for payment of any and all bills or charges incurred after
the Closing for work, services, supplies or materials relating to the Property
for which Purchaser has engaged the party performing or delivering such items
or has expressly assumed such obligations pursuant to an express provision
herein or in a separate document executed at Closing.

(h)                                 Adjustments.  Prorations shall be accomplished by an
adjustment in the Purchase Price due Seller on the Closing, except as otherwise
expressly provided in this Agreement.

(i)                                     Post-Closing
Adjustments.  Seller and
Purchaser shall, on or before the Closing, agree upon and furnish to the Escrow
Agent an agreed schedule of the foregoing prorations. To the extent possible,
the amount of any adjustment described in this section shall be estimated and
paid at the Closing based upon the best information available to Purchaser and
Seller at the time, and shall be adjusted as soon thereafter as may be
reasonably practicable when final billings are available or when such amounts
may be determined with reasonable certainty.  In the event any adjustments
pursuant to this Section 6 are, subsequent to Closing, found to be erroneous,
then either party hereto who is entitled to additional monies shall invoice the
other party for such additional amounts as may be owing, and such amount shall
be paid within ten (10) days from receipt of the invoice.  This covenant shall expressly survive
Closing.

(j)                                     Collections and
Application of Payments after the Closing.  After the Closing, Purchaser shall bill the
tenants for all amounts due under Leases, including amounts accruing prior to
the Closing but only with respect to the calendar year of Closing.  Any amounts or charges payable by the tenants
on or after the Closing with respect to which Seller is entitled to receive a
share under this Agreement, which are not paid within thirty (30) days after
the due date, and any amount due and owing Seller before the Closing by tenants
under the Leases which are unpaid as of the Closing, are collectively herein
called “Delinquent Amounts”.  Notwithstanding the foregoing or any
direction from tenants to the contrary, (i) Current Unpaid Rent shall not be
considered to be a Delinquent Amount for purposes of this Section 6(j), and (ii)
rental 

 

13

 

and other payments received by Purchaser or
Seller from the tenants (other than Current Unpaid Rent, which shall be handled
in the manner provided in Section 6(b) above) shall be first applied toward
rent and other charges (including, without limitation, costs of collection) due
for any period after Closing, then toward Delinquent Amounts for periods prior
to the calendar month of Closing, and any excess monies received shall be
applied toward any other amounts due to Purchaser.

(k)                                  Service
Contract Charges.  Amounts due
and payable under any Service Contract assigned to Purchaser at Closing shall
be prorated as of the Closing, and, at the Closing, Seller or Purchaser, as the
case may be, shall pay to the other any amount required as a result of such
adjustment, and this covenant shall not merge with the deed delivered hereunder
but shall survive the Closing.

(l)                                     Closing Costs.  Any escrow fee and expenses charged by the
Title Company shall be paid equally by Seller and Purchaser.  Seller shall pay (i) all costs for the
Title Commitment and the basic premium for the Title Policy; (ii) all
costs for title curative matters to the extent required by this Agreement or
the LOI; (iii) its share of the prorations described above, (iv) one-half (1/2)
of the costs of the updated Survey, and (v) all fees and expenses incurred in
connection with the assumption by Purchaser of the Existing Indebtedness, including, without limitation, all
legal and accounting fees associated with such assumption.  Purchaser shall pay (i) the cost of
recording the Deed for the Real Property; (ii) one-half (1/2) of the costs
of the updated Survey; (iii) all premiums for any modifications or endorsements
to the Title Policy, including any premium charged to obtain the T-19.1, T-23
and T-25 Endorsements and the “shortages in area” deletion and any inspection
fee imposed by the Title Company in order to issue the Title Policy without any
exception for rights of parties in possession (except for rights of tenants
under written leases described in the certified rent roll to be delivered by
Seller to Purchaser at Closing); and (iv) its proportionate share of the
prorations described above.  Each party
shall be responsible for the payment of its own attorneys’ fees incurred in
connection with this Agreement and all other expenses which such party
incurs.  Additionally, any expenses,
charges and fees of closing, not specifically allocated herein or incurred by a
specific party, shall be borne by the parties in accordance with general custom
in the county where the Property is located, or, if no such custom exists,
shall be borne equally between the parties.

(m)                               Survival.  Unless otherwise expressly provided herein,
this Section 6 shall survive until the first anniversary of the Closing.

7.                                       Remedies; Post-Closing
Defaults. 
Notwithstanding anything to the contrary contained herein, if after the
Closing a party (the “Defaulting Party”)
breaches an obligation under this Agreement which is expressly stated to
survive the termination of this Agreement or the Closing, as the case may be,
the Defaulting Party shall be liable to the other party (the “Non-Defaulting Party”) for the actual damages incurred by
the Non-Defaulting Party as a direct result of such breach, subject to the
terms and provisions contained herein.  The
Non-Defaulting Party shall also have the right to pursue any remedy available
to it in law or in equity in the event of a breach by the Defaulting Party of
any covenant or agreement contained 

 

14

 

herein.  However, in no event
shall the Non-Defaulting Party be entitled to recover from the Defaulting Party
any punitive, consequential or speculative damages.

8.                                       Real Estate
Commissions.

Each
party hereto represents to the other that it has not authorized any broker or
finder to act on its behalf in connection with the sale and purchase of the
Property and that such party has not dealt with any broker or finder purporting
to act on behalf of any other party. 
Each party hereto agrees to indemnify and hold harmless the other party
from and against any and all losses, liens, claims, judgments, liabilities,
costs, expenses or damages (including reasonable attorneys’ fees and
disbursements and court costs) of any kind or character arising out of or
resulting from any agreement, arrangement or understanding alleged to have been
made or dealing by such party or on its behalf with any broker or finder in
connection with this Agreement or the transaction contemplated hereby.

9.                                       Notice.

Any
notice required hereunder must be given in writing (by a party or by such party’s
attorney), sent by (a) personal delivery, (b) overnight delivery
service with proof of delivery, (c) United States Postal Service, postage
prepaid, registered or certified mail, return receipt requested, or
(d) telecopy, except as otherwise expressly provided in this Agreement,
addressed as follows:

If to Purchaser:

 

MB SPRING TOWN CENTER
LIMITED PARTNERSHIP

2901 Butterfield Road

Oak Brook, Illinois 
60523

Attn: Lori Faust

Telephone: (630) 218-8000

Telecopy: (630) 645-7242

 

With a copy to:

 

The Inland Real Estate Group, Inc.

2901 Butterfield Road

Oak Brook, Illinois 60523

Attn: Dennis K. Holland, Associate Counsel

Telephone: (630) 218-8000

Telecopy: (630) 218-4900

 

 

15

 

If to Seller:

 

8807 W. Sam Houston Pkwy. North

Suite 200

Houston, Texas 
77040

Attn:  Steven D.
Alvis

Telephone:  (281)
477-4310

Telecopy:  (281)
477-4311

 

with a copy to:

 

Nathan Sommers + Jacobs

A Professional Corporation

2800 Post Oak Boulevard, 61st Floor

Houston, Texas 77056

Attention: Louis B. Sullivan III, Esq.

Telephone: (713) 892-4830

Telecopy: (713) 892-4840

 

Any
such notice shall be deemed to have been given and received either, in the case
of personal delivery, at the time of personal delivery; in the case of delivery
service, as of the date of the first attempted delivery at the address and in
the manner provided herein; in the case of mailing, the earlier of actual
receipt or three (3) business days after depositing with the U.S. Postal Service;
or in the case of telecopy, upon transmission; provided, however, that if the
last date permitted for notice shall be the business day before the Closing or
the Closing, then such notice must be given so that it is actually received on
such day.  E-mail or electronic mail is
not sufficient notice.

10.                                 Post Closing Obligations.

(a)                                  Development of Adjacent Tract. 
It is understood and agreed by Purchaser and Seller that Seller (or an
affiliate of Seller) owns an additional parcel of land (the “Adjacent Tract”) comprised of approximately 14.02 acres
located adjacent to the Property.  At the
request of Seller, Purchaser agrees to consent to the addition of the Adjacent
Tract into the property covered by that certain Easements with Covenants and
Restrictions Affecting Land (the “ECR”), dated
January 31, 2003, and recorded under Clerk’s File No. W397224 of the Official
Records of Real Property of Harris County, Texas (and at Seller’s request any
other restrictive covenants or reciprocal easement agreements affecting the
Property), and to cooperate in good faith with Seller (including executing,
delivering or recording any documents so required) to cause such Adjacent Tract
to be added to the property covered by the ECR (or other such agreements).  In connection with such addition or grant of
easements, and thereafter, with respect to any consent required by Purchaser as
owner under the ECR, no consent or joinder by Purchaser’s lender(s), if any,
shall be required with respect to such addition, grant or consent.  Seller may file a memorandum in the Real
Property Records of Harris County, Texas, setting forth the agreement contained
herein. The provisions of this Section 10(a) shall automatically expire, and be
of no further force and effect, 

 

16

 

upon the earlier to occur of (i) five years from the Effective Date of
this Agreement, and (ii) the date that the addition of the Adjacent Tract has
been completed.

(b)                                 Pylon Signs.  Purchaser
agrees to cooperate in good faith with Seller (or any partnership which Seller
or its affiliates control) to allow Seller (or such controlled partnership) to
utilize any available (meaning that Purchaser (or the Partnership) does not
need any such unused sign panel(s) for vacant space(s) in the Property)
space(s) on pylon or monument signs within the Property for use in connection
with the Adjacent Tract.

 

11.                                 Attorney’s Fees
and Legal Expenses.

In
the event that either party hereto institutes any action or proceeding in court
to enforce or interpret any provision hereof or for damages by reason of any
alleged breach of any provision of this Agreement or for any other judicial
remedy, the prevailing party shall be entitled to receive from the losing party
all reasonable attorneys’ fees and disbursements and all court costs in
connection with said proceedings.

12.                                 Section
Headings; Other Terms.

The
section headings contained in this Agreement are for convenience only and shall
in no way enlarge or limit the scope or meaning of the various and several
paragraphs hereof.  The words “herein,” “hereof,”
“hereto,” “hereunder,” and others of similar import refer to the Agreement as a
whole and not to any particular section, subsection or clause contained in this
Agreement.  The singular of a term shall
include the plural and the plural shall include the singular.  The terms “includes” and “including” are not
limiting.

13.                                 Entire
Agreement.

The
LOI and this Agreement embodies the entire agreement between the parties hereto
relating to the subject matter hereof and supersedes any prior understandings
or written or oral agreements between the parties concerning the Property.  Further, this Agreement cannot be varied,
modified, amended, altered or terminated except by the written agreement of the
parties.

14.                                 Applicability.

The
terms and provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective permitted successors and
assigns, except as expressly set forth herein.

15.                                 Exhibits.

All
exhibits and schedules described herein and attached hereto are fully
incorporated into this Agreement by this reference for all purposes.

 

17

 

16.                                 Applicable Law.

THIS
AGREEMENT SHALL BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE INTERNAL
LAWS OF THE STATE OF TEXAS WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAW.

17.                                 Counterparts.

This
Agreement may be executed in counterparts, all such executed counterparts shall
constitute the same agreement, and the signature of any party to any
counterpart shall be deemed a signature to, and may be appended to, any other
counterpart.

18.                                 Facsimile
Signatures.

In
order to expedite the transaction contemplated herein, telecopied signatures
may be used in place of original signatures on this Agreement.  Seller and Purchaser intend to be bound by
the signatures on the telecopied document, and are aware that the other party
will rely on the telecopied signatures, and hereby waive any defenses to the
enforcement of the terms of this Agreement based upon the form of
signature.  If telecopied signatures are
delivered, Seller and Purchaser will each forward original counterpart
signatures to the other promptly after delivery of the telecopied signatures as
set forth herein.

19.                                 Business Day.

As
used herein, the term “business day”
shall mean all days, excluding Saturdays, Sundays and all days observed by
either the State of Texas or the Federal Government as legal holidays.  In the event that any date for performance
falls on a day other than a business day, then performance shall be postponed
until the next business day.

20.                                 Strict
Performance.

It
is specifically agreed that “time is of the essence” as to all matters provided
for in this Agreement.

21.                                 Additional
Notices.

(a)                                  If the Property
is situated in a utility or other statutorily created district providing water,
sewer, drainage, or flood control facilities and services, Chapter 49 of the
Texas Water Code requires Seller to deliver and Purchaser to sign the statutory
notice relating to the tax rate, bonded indebtedness, or standby fee of the
district prior to final execution of this Agreement.

(b)                                 If the Property is located outside the
limits of a municipality, Seller notifies Purchaser under Section 5.011, Texas
Property Code, that the Property may now or later be included in the
extraterritorial jurisdiction of a municipality and may now or later be subject
to annexation by the municipality.  Each
municipality maintains a map that depicts its boundaries and extraterritorial
jurisdiction. To determine if the Property is located within a municipality’s
extraterritorial jurisdiction 

 

18

 

or is likely to be located within a municipality’s
extraterritorial jurisdiction, contact all municipalities located in the
general proximity of the Property for further information.

 

22.                                 Conflict with
LOI.

This
Agreement is being entered into pursuant to and in accordance with the terms
and provisions of the LOI.  The LOI shall
survive the execution of this Agreement. 
In the event of a direct conflict between the terms of this Agreement
and the terms of the LOI, the LOI shall control.  Notwithstanding the forgoing, the matters set
forth in Section 2 of this Agreement are meant to be construed in conjunction with
the LOI and neither document shall control over the other with respect to such
Section 2.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

19

 

IN WITNESS WHEREOF, this Agreement is executed in multiple originals by
Seller and Purchaser.

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  A-K-S 75 NEC SPRING TOWN CENTER, L.P., a Texas limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  A-K-S 75, L.C., a Texas limited liability company,
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/
  Steven D. Alvis

  	
   

  
	
   

  	
   

  	
   

  	
  Steven
  D. Alvis

  
	
   

  	
   

  	
   

  	
  Member-Manager

  
	
   

  	
   

  	
   

  	
   

  

 

 

20

 

IN WITNESS WHEREOF, this Agreement is executed as of the Effective Date
by Purchaser.

	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  MB SPRING TOWN CENTER LIMITED
  PARTNERSHIP, an
  Illinois limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  MB Spring Town Center GP, L.L.C., a Delaware limited
  liability company, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Minto Builders
  (Florida), Inc., a Florida corporation, its sole member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/

  	
  Debra A. Palmer

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  	
  Debra A. Palmer

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
     

  	
  Assistant Secretary

  	
   

  
									

 

 

21

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