Document:

Guaranty

    
      
        

      

    

    Exhibit
      10.15

    

    HARTMAN
      COMMERCIAL PROPERTIES REIT

    

    GUARANTY
      

    

    

    
      	
              To:

            	
              Each
                of the Lenders (collectively, the “Lenders”) which from time to time is a
                party to the Revolving Credit Agreement dated as of March 11, 2005
                (the
                “Loan Agreement”) among Hartman REIT Operating Partnership, L.P., a
                Delaware limited partnership (“HROP”) and each other Borrower from time to
                time party thereto including without limitation Hartman REIT Operating
                Partnership III, L.P., a Texas limited partnership (hereinafter
                collectively referred to as the “Borrower”), KeyBank National Association,
                individually and as administrative agent for the Lenders (in such
                agent
                capacity, the “Agent”), and KeyBanc Capital Markets, as Lead Arranger and
                Book Manager. Capitalized terms used herein and not otherwise defined
                shall have the same meanings as set forth in the Loan
                Agreement.

            

    

    

    1. Guaranty
      of Payment and Performance of Obligations.
      In
      consideration of the Lenders’ extending credit or otherwise in their discretion
      giving time, financial or banking facilities or accommodations to the Borrower,
      Hartman Commercial Properties REIT, a Maryland real estate investment trust,
      Hartman REIT Operating Partnership III GP LLC, a Texas limited liability company
      and Hartman REIT Operating Partnership III LP LTD, a Texas limited partnerhip
      (collectively, the “Guarantor”), hereby absolutely and unconditionally
      guarantees to the Agent and each Lender that the Borrower will duly and
      punctually pay or perform, at the place specified therefor, or if no place
      is
      specified, at the Agent’s Head Office, (i) all Obligations (as defined in the
      Loan Agreement); and (ii) without limitation of the foregoing, all fees, costs
      and expenses incurred by the Agent or the Lenders in attempting to collect
      or
      enforce any of the foregoing, accrued in each case to the date of payment
      hereunder (collectively, the “Obligations” and individually an “Obligation”).
      This Guaranty is an absolute, unconditional and continuing guaranty of the
      full
      and punctual payment and performance by the Borrower of the Obligations and
      not
      of their collectibility only and is in no way conditioned upon any requirement
      that any Lender or the Agent first attempt to collect any of the Obligations
      from the Borrower or resort to any security or other means of obtaining payment
      of any of the Obligations which any Lender or the Agent now has or may acquire
      after the date hereof or upon any other contingency whatsoever. Upon any Event
      of Default under (or as defined in) the Loan Agreement, the liabilities and
      obligations of the Guarantor hereunder shall, at the option of the Agent, become
      forthwith due and payable to the Agent and to the Lender or Lenders owed the
      same without demand or notice of any nature, all of which are expressly waived
      by the Guarantor. Payments by the Guarantor hereunder may be required by any
      Lender or the Agent on any number of occasions.

    

    2. Guarantor’s
      Further Agreements to Pay.
      The
      Guarantor further agrees, as the principal obligor and not as a guarantor only,
      to pay to each Lender and the Agent forthwith upon demand, in funds immediately
      available to the Lender or the Agent, all costs and expenses (including court
      costs and reasonable legal fees and expenses) incurred or expended by the Agent or such Lender in connection with
      this Guaranty and
      the enforcement hereof, together with interest on amounts recoverable under
      this
      Guaranty from 

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

       

    

    the
      time
      such amounts become due at a rate per annum equal to two percent (2%) above
      the
      Base Rate plus the Applicable Base Rate Margin until such amounts shall be
      paid
      in full (after as well as before judgment). In addition, the Guarantor shall
      pay
      a late charge equal to five percent (5%) of any such costs and expenses which
      are not paid within fifteen (15) days of the date of such demand.

    

    3. Payments.
      The
      Guarantor covenants and agrees that the Obligations will be paid strictly in
      accordance with their respective terms regardless of any law, regulation or
      order now or hereinafter in effect in any jurisdiction affecting any of such
      terms or the rights of the Agent or any Lender with respect thereto. Without
      limiting the generality of the foregoing, the Guarantor’s obligations hereunder
      with respect to any Obligation shall not be discharged by a payment in a
      currency other than the currency in which the Obligation is denominated (the
      “Obligation Currency”) or at a place other than the place specified for the
      payment of the Obligation, whether pursuant to a judgment or otherwise, to
      the
      extent that the amount so paid on conversion to the Obligation Currency and
      transferred to Cleveland, Ohio, U.S.A., under normal banking procedures does
      not
      yield the amount of Obligation Currency due thereunder.

    

    4. Taxes.
      All
      payments hereunder shall be made without any counterclaim or set-off, free
      and
      clear of, and without reduction by reason of, any taxes, levies, imposts,
      charges and withholdings, restrictions or conditions of any nature (“Taxes”),
      which are now or may hereafter be imposed, levied or assessed by any country,
      political subdivision or taxing authority on payments hereunder, all of which
      will be for the account of and paid by the Guarantor. If for any reason, any
      such reduction is made or any Taxes are paid by the Agent or any Lender (except
      for taxes on income or profits of such Agent or Lender), Guarantor will pay
      to
      the Agent or such Lender such additional amounts as may be necessary to ensure
      that the Agent or such Lender receives the same net amount which it would have
      received had no reduction been made or Taxes paid.

    

    5. Consent
      to Jurisdiction.
      The
      Guarantor agrees that any suit for the enforcement of this Guaranty or any
      of
      the other Loan Documents may be brought in the courts of the State of Ohio
      or
      the State of Georgia, or any other court having jurisdiction over the Guarantor,
      and consents to the non-exclusive jurisdiction of such court and the service
      of
      process in any such suit being made upon the Guarantor by mail at the address
      specified in Section 15 hereof. The Guarantor hereby waives any objection that
      it may now or hereafter have to the venue of any such suit or any such court
      or
      that such suit is brought in an inconvenient court. In addition to the courts
      of
      the State of Ohio and the State of Georgia, and any other court having
      jurisdiction over the Guarantor, the Agent or any Lender may bring action(s)
      for
      enforcement on a nonexclusive basis where any collateral exists and the
      Guarantor consents to the non-exclusive jurisdiction of such court and the
      service of process in any such suit being made upon the Guarantor by mail at
      the
      address specified in Section 15 hereof. In any such action or proceeding, the
      Guarantor hereby absolutely and irrevocably waives personal service of any
      summons, complaint, declaration or other process and hereby
      absolutely and irrevocably agrees that the service thereof may be made by
      certified, registered or recorded first-class airmail directed to the Guarantor.
      Anything hereinbefore to the contrary notwithstanding, the Agent or any Lender
      may sue the Guarantor 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

       

    

     

    in
      the
      courts of any other country, State of the United States or place where the
      Guarantor or any of the property or assets of the Guarantor may be found or
      in
      any other appropriate jurisdictions.

    

    6. Unlimited
      Liability of Guarantor.
      The
      liability of the Guarantor hereunder shall be unlimited and, as to the
      Obligations of the Borrower, shall be joint and several with the liability
      of
      each other Guarantor and each other party who has guaranteed or who will
      guarantee the Obligations of the Borrower. The Agent and each Lender have and
      shall have the absolute right to enforce the liability of the Guarantor
      hereunder without resort to any other right or remedy including any right or
      remedy under any other guaranty, and the release or discharge of any guarantor
      of any Obligations shall not affect the continuing liability of the Guarantor
      hereunder.

    

    7. Effectiveness.
      The
      obligations of the Guarantor under this Guaranty shall continue in full force
      and effect and shall remain in operation until all of the Obligations shall
      have
      been paid in full or otherwise be fully satisfied, and continue to be effective
      or be reinstated, as the case may be, if at any time payment or other
      satisfaction of any of the Obligations is rescinded or must otherwise be
      restored or returned upon the bankruptcy, insolvency, or reorganization of
      the
      Borrower, or otherwise, as though such payment had not been made or other
      satisfaction occurred. No invalidity, irregularity or unenforceability by reason
      of applicable bankruptcy laws, or any other similar law, or any law or order
      of
      any government or agency thereof purporting to reduce, amend or otherwise
      affect, the Obligations, shall impair, affect, be a defense to or claim against
      the obligations of the Guarantor under this Guaranty.

    

    8. Freedom
      of Lenders and Agent to Deal with Borrower and Other Parties.
      The
      Agent and each Lender shall be at liberty, without giving notice to or obtaining
      the assent of the Guarantor and without relieving the Guarantor of any liability
      hereunder, to deal with the Borrower and with each other party who now is or
      after the date hereof becomes liable in any manner for any of the Obligations,
      in such manner as the Agent or such Lender in its sole discretion deems fit,
      and
      to this end, without limiting the right of the Agent or such Lender to so deal
      with such party, the Guarantor gives to the Agent and each Lender full authority
      in its sole discretion to do any or all of the following things: (a) extend
      credit, make loans and afford other financial accommodations to the Borrower
      at
      such times, in such amounts and on such terms as the Agent or such Lender may
      approve, (b) vary the terms and grant extensions of any present or future
      indebtedness or obligation of the Borrower or of any other party to the Agent
      or
      such Lender, (c) grant time, waivers and other indulgences in respect thereto,
      (d) vary, exchange, release or discharge, wholly or partially, or delay in
      or
      abstain from perfecting and enforcing any security or guaranty or other means
      of
      obtaining payment of any of the Obligations which the Lender now has or may
      acquire after the date hereof, (e) accept partial payments from the Borrower
      or
      any such other party, (f) release or discharge, wholly or partially, any
      endorser or guarantor, and (g)
      compromise or make any settlement or other arrangement with the Borrower or
      any
      such other party. 

    
      

      9.
        Unenforceability
        of Obligations Against Borrower; Invalidity of Security or Other
        Guaranties.
        If for
        any reason any Borrower has no legal existence or is under no legal

    

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

     

    obligation
      to discharge any of the Obligations undertaken or purported to be undertaken
      by
      it or on its behalf, or if any of the moneys included in the Obligations have
      become irrecoverable from the Borrower by operation of law or for any other
      reason, this Guaranty shall nevertheless be binding on the Guarantor to the
      same
      extent as if the Guarantor at all times had been the principal debtor on all
      such Obligations. This Guaranty shall be in addition to any other guaranty
      or
      other security for the Obligations, and it shall not be prejudiced or rendered
      unenforceable by the invalidity of any such other guaranty or security.

    

    10.
      Representation
      and Warranties.
      The
      Guarantor hereby makes, for itself and on behalf of its Subsidiaries, the
      representations and warranties contained in Section 7 of the Loan Agreement
      that
      relate to the Guarantor and/or its Subsidiaries (the “Representation and
      Warranties”) as if each such Representation and Warranty were set forth fully
      herein, and such Representations and Warranties are hereby incorporated by
      reference and shall survive until payment in full of all of the
      Obligations.

    

    11.
      Covenants.
      The
      Guarantor hereby covenants that it will, and will cause its Subsidiaries to,
      comply with each of the covenants contained in Sections 8, 9 and 10 of the
      Loan
      Agreement that relate to the Guarantor and its Subsidiaries (the “Covenants”) as
      if each such Covenant were fully set forth herein, and such Covenants are
      incorporated by reference. In addition, the Guarantor agrees that it will at
      all
      times be the sole general partner of HROP and that it will not transfer, sell
      or
      encumber its general partnership interest in HROP.

    

    12.
      Representations
      True; Covenant Compliance; No Event of Default.
      Each of
      the Representations and Warranties made by the Guarantor for itself and on
      behalf of its Subsidiaries shall be true as of the date as of which it was
      made
      and shall also be true at and as of the time of the making of each Loan under
      the Loan Agreement or the issuance, extension or renewal of each Letter of
      Credit under the Loan Agreement, with the same effect as if made at and as
      of
      that time (except to the extent that such Representations and Warranties relate
      expressly to an earlier date). 

    

    13.
      Waivers
      by Guarantor.
      The
      Guarantor waives: notice of acceptance hereof, notice of any action taken or
      omitted by the Agent or any Lender in reliance hereon, and any requirement
      that
      the Agent or any Lender be diligent or prompt in making demands hereunder,
      giving notice of any default by the Borrower or asserting any other rights
      of
      the Agent or any Lender hereunder. The Guarantor also irrevocably waives, to
      the
      fullest extent permitted by law, all defenses that at any time may be available
      in respect of the Guarantor’s obligations hereunder by virtue of any statute of
      limitations, valuation, stay, moratorium law or other similar law now or
      hereafter in effect.

     

    
      14.
        Waiver
        of Subrogation Rights.
        Notwithstanding any other provision to the contrary contained herein or provided
        by applicable law and until such time as all Obligations have been indefeasibly
        paid in full in cash to the Lenders, the Guarantor hereby irrevocably waives
        any
        and all rights it may have at any time (whether arising directly or indirectly,
        by operation of law or by contract) to assert any claim against the Borrower
        on

    

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    
account
      of payments made under this Guaranty or otherwise, including, without
      limitation, any and all rights of or claim for subrogation, contribution,
      reimbursement, exoneration and indemnity, and further waives any benefit of
      and
      any right to participate in any collateral which may be held by the Agent or
      any
      Lender or any affiliate of the Agent or any Lender. Without limitation of the
      foregoing, in proceedings under applicable bankruptcy laws or insolvency
      proceedings of any nature, the Guarantor will not prove in competition with
      the
      Agent or any Lender in respect of any payment hereunder or be entitled to have
      the benefit of any counterclaim or proof of claim or dividend or payment by
      or
      on behalf of the Borrower or the benefit of any other security for any
      Obligation which, now or hereafter, the Agent or any Lender may hold or in
      which
      it may have any share. In addition, the Guarantor will not claim any set-off
      or
      counterclaim against the Borrower in respect of any liability it may have to
      the
      Borrower. The payment of any amounts due with respect to any indebtedness of
      the
      Borrower now or hereafter held by the Guarantor which arises as a result of
      the
      Guarantor’s payment of any sum recoverable hereunder is hereby subordinated to
      the prior payment in full of the Obligations. The Guarantor agrees that the
      Guarantor will not demand, sue for or otherwise attempt to collect any such
      indebtedness of the Borrower to the Guarantor until the Obligations shall have
      been paid in full. If, notwithstanding the foregoing sentence, the Guarantor
      shall collect, enforce or receive any amounts in respect of such indebtedness,
      such amounts shall be collected, enforced and received by the Guarantor as
      trustee for the Agent and the Banks and be paid over to the Agent on account
      of
      the Obligations without affecting in any manner the liability of the Guarantor
      under the other provisions of this Guaranty.

    

    15.
      Demands
      and Notices.
      Any
      demand on or notice to the Guarantor made or required to be given pursuant
      to
      this Guaranty shall be in writing and shall be delivered in hand, mailed by
      United States registered or certified first class mail, postage prepaid, sent
      by
      overnight courier, or sent by telegraph, telecopy, telefax or telex and
      confirmed by delivery via courier or postal service, addressed as
      follows:

    

    (a)    if
      to the
      Guarantor, at Hartman Commercial Properties REIT, 1450 West Sam Houston Parkway
      North, Suite 100, Houston, Texas 77043, Attention: Allen R. Hartman, with a
      copy
      to General Counsel 1450 West Sam Houston Parkway North, Suite 100, Houston,
      Texas 77043or at such other address for notice as the Guarantor shall last
      have
      furnished in writing to the person giving the notice; and 

    

    (b)    if
      to the
      Agent, to 1200 Abernathy Road NE, Suite 1550, Atlanta, Georgia 30328, attention:
      Meredith Hall, Vice President (facsimile: (770) 510-2195), [with a copy to
      ____________, KeyBank National Association, 127 Public Square, Cleveland, OH
      44114], or such other address for notice as the Agent shall have last furnished
      in writing to the person giving the notice, with a copy
      to
      Pamela M. MacKenzie, Esq., Goulston & Storrs, 400 Atlantic Avenue, Boston,
      Massachusetts 02110-3333 (facsimile: (617) 574-7615), or at such other address
      for notice as the Agent shall last have furnished in writing to the person
      giving the notice; and

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

     

    

    (c)    if
      to any
      Lender, at such Lender’s address set forth on Schedule 2 to the Loan Agreement,
      or such other address for notice as such Lender shall have last furnished in
      writing to the Person giving the notice.

    

    Any
      such
      notice or demand shall be deemed to have been duly given or made and to have
      become effective (i) if delivered by hand, overnight courier or facsimile to
      the
      party to which it is directed, at the time of the receipt thereof by such party
      or the sending of such facsimile and (ii) if sent by registered or certified
      first-class mail, postage prepaid, on the third Business Day following the
      mailing thereof.

    

    16.
      Amendments,
      Waivers, Etc.
      No
      provision of this Guaranty can be changed, waived, discharged or terminated
      except by an instrument in writing signed by the Agent and the Guarantor
      expressly referring to the provision of this Guaranty to which such instrument
      relates; and no such waiver shall extend to, affect or impair any right with
      respect to any Obligation which is not expressly dealt with therein. No course
      of dealing or delay or omission on the part of the Agent or the Lenders or
      any
      of them in exercising any right shall operate as a waiver thereof or otherwise
      be prejudicial thereto.

    

    17.
      Set-off.
      Regardless of the adequacy of any collateral or other means of obtaining
      repayment of the Obligations, each Lender and the Agent may at any time and
      without notice to the Guarantor set off the whole or any portion or portions
      of
      any or all such deposits and other sums credited by or due from such Lender
      or
      the Agent to the Guarantor or subject to withdrawal by the Guarantor against
      amounts payable under this Guaranty, whether or not any other person or persons
      could also withdraw money therefrom. Any deposits or other sums which may at
      any
      time be credited to the Guarantor by or due to it from any Lender may at any
      time be applied to or set off by such Lender against the Guarantor’s obligations
      hereunder. The Guarantor irrevocably invites each financing institution which
      may consider becoming a Lender to rely on the provisions contained in this
      Section 17 as making the Lender a creditor of the Guarantor and agrees that
      its
      becoming a Lender shall constitute an acceptance of the offer hereby
      made.

    

    18.
      Agent;
      Application of Funds.
      This
      Guaranty has been delivered to the Agent and the Agent has been authorized
      to
      enforce this Guaranty on behalf of each of the Lenders pursuant to the Loan
      Documents. All payments by the undersigned pursuant to this Guaranty shall
      be
      made to the Agent for the ratable benefit of the Lenders and the Agent and,
      after the payment of all expenses as provided in this Guaranty, shall be applied
      to the payment of the Obligations until the same are paid in full. 

    

    19.
      Further
      Assurances.
      The
      Guarantor at its sole cost and expense agrees to do all such things and execute,
      acknowledge and deliver all such documents and instruments as  the
      Agent
      from time to time may reasonably request in order to give full effect to this
      Guaranty and to perfect and preserve the rights and powers of the Agent and
      the
      Lenders hereunder.

    
      

      20.
        Miscellaneous
        Provisions.
        This
        Guaranty is intended to take effect as a sealed instrument to be governed
        by and
        construed in accordance with the laws of the State of Ohio and shall inure
        to
        the benefit of the Agent, each Lender and its respective successors

    

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

       

       

    

    in
      title
      and assigns, and shall be binding on the Guarantor and the Guarantor’s
      successors in title, assigns and legal representatives. The rights and remedies
      herein provided are cumulative and not exclusive of any remedies provided by
      law
      or any other agreement. The invalidity or unenforceability of any one or more
      sections of this Guaranty shall not affect the validity or enforceability of
      its
      remaining provisions. Captions are for ease of reference only and shall not
      affect the meaning of the relevant provisions. The meanings of all defined
      terms
      used in this Guaranty shall be equally applicable to the singular and plural
      forms of the terms defined.

    

    21.
      WAIVER
      OF JURY TRIAL.
      THE
      GUARANTOR HEREBY IRREVOCABLY WAIVES TRIAL BY JURY IN ANY JURISDICTION AND IN
      ANY
      COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS GUARANTY,
      THE
      OBLIGATIONS, THE LOAN DOCUMENTS, OR ANY OTHER INSTRUMENT OR DOCUMENT DELIVERED
      PURSUANT HERETO OR THERETO OR ANY OTHER CLAIM OR DISPUTE HOWSOEVER ARISING,
      AMONG THE GUARANTOR, THE BORROWER, THE AGENT AND/OR THE LENDERS. THIS WAIVER
      OF
      JURY TRIAL SHALL BE EFFECTIVE FOR EACH AND EVERY DOCUMENT EXECUTED BY THE
      GUARANTOR, THE AGENT OR THE LENDERS AND DELIVERED TO THE AGENT OR THE LENDERS,
      AS THE CASE MAY BE, WHETHER OR NOT SUCH DOCUMENTS SHALL CONTAIN SUCH A WAIVER
      OF
      JURY TRIAL. EXCEPT TO THE EXTENT EXPRESSLY PROHIBITED BY LAW, THE GUARANTOR
      HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION
      REFERRED TO IN THE PRECEDING SENTENCE ANY SPECIAL, EXEMPLARY, PUNITIVE OR
      CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL
      DAMAGES, INCLUDING ANY DAMAGES PURSUANT TO M.G.L. C. 93A ET SEQ. THE GUARANTOR
      (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY LENDER OR THE
      AGENT HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH LENDER OR THE AGENT
      WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS
      AND
      (B) ACKNOWLEDGES THAT THE AGENT AND THE LENDERS HAVE BEEN INDUCED TO ENTER
      INTO
      THE LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS TO WHICH THEY ARE PARTIES BY,
      AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS CONTAINED HEREIN. THE
      GUARANTOR CONFIRMS THAT THE FOREGOING WAIVERS ARE INFORMED AND FREELY
      MADE.

    

     

    
      [remainder
        of page intentionally blank]

 

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    

    [Signature
      page to Guaranty]

    

    IN
      WITNESS WHEREOF, the Guarantor has executed this Guaranty as of the 11th day
      of
      March, 2005.

     

     

    GUARANTOR:          
      HARTMAN COMMERCIAL PROPERTIES REIT,      

                                                
      a Maryland real estate investment trust

     

                                                      
      By:   /s/ Allen R.
      Hartman                                 
      

    Allen
      R.
      Hartman, President

     

    GUARANTOR:          
      HARTMAN
      REIT OPERATING PARTNERSHIP III GP LLC, 

                                                
      a
      Texas limited liability company 

     

                                                
      By:   
      Hartman REIT Operating Partnership, L.P., 

                                                          
      a
      Delaware limited partnership, 

                                                          
      Its
      Sole Member

     

                                          
      By:    Hartman Commercial Properties REIT, 

     a
      Maryland real estate investment trust, 

     Its
      sole General Partner

     

          
By: 
      /s/ Allen R.
      Hartman                    
      

                  
      Allen R. Hartman, President

    

    GUARANTOR:            
      HARTMAN
      REIT OPERATING PARTNERSHIP III LP LTD, 

    a
      Texas
      limited partnership 

    

    By:  
      Hartman REIT Operating Partnership III GP LLC

            
a
      Texas
      limited liability company

            
Its
      sole
      General Partner

     

                                           
       By:    Hartman REIT Operating Partnership,
      L.P.,

                                                      
      a
      Delaware limited partnership, 

                                                       Its
      sole
      member

     

                                                     
      By:   Hartman Commercial Properties REIT, 

                                                              
      a
      Maryland real estate investment trust, 

                                                              
      Its
      sole General Partner

     

              
      By:   /s/ Allen R.
      Hartman                      
      

                       
      Allen
      R.
      Hartman, PresidentNegative Pledge Agreement

    
      
        

      

    

    Exhibit
      10.16

     

    
 

    
      	         STATE
              OF TEXAS	                            This
              Instrument
              Prepared By
	 	                            and
              After
              Recording Return to:
	  COUNTY
              OF
              HARRIS	                            Pamela
              M. MacKenzie, Esq.
	 	                            Goulston
&
              Storrs
	 	                   
              400 Atlantic Avenue
	 	                            Boston,
              MA
              02110-3333

    

    
       

       

    

    NEGATIVE
      PLEDGE AGREEMENT

    

    [Property
      Name]

    [Property
      Address]

     

     

    This
      Agreement is made as of March 11, 2005, between HARTMAN REIT OPERATING
      PARTNERSHIP III LP (the “Company”), and KEYBANK NATIONAL ASSOCIATION, with its
      head office at 127 Public Square, Cleveland, Ohio 44114, in its capacity as
      Administrative Agent (in such capacity, hereinafter called the “Administrative
      Agent”) for the Lenders under and as defined in the Loan Agreement referred to
      below.

    

    For
      consideration paid, and to secure the payment of any and all Obligations under
      (and as defined in) the Revolving Credit Agreement dated as of March 11, 2005
      (as the same may be amended, modified and supplemented from time to time, the
      “Loan Agreement”) among the Company, the other parties who are or from time to
      time become a borrower under the Loan Agreement, the Lenders, the Administrative
      Agent and KeyBanc Capital Markets, as Lead Arranger and Book Manager, the
      parties hereby agree as follows:

    

    1.    Representation
      of Company.
      To
      induce the Lenders to make the loans evidenced by the Notes (as defined in
      the
      Loan Agreement), the Company hereby represents and warrants that it has good
      and
      marketable fee, record and insurable title to each of the Eligible Unencumbered
      Properties, which term is defined in the Loan Agreement and which includes
      the
      property listed on Exhibit A hereto
      (the
      “Negative Pledge Property”). In addition, the Company hereby represents and
      warrants that it will keep the Negative Pledge Property free from all mortgages,
      liens, charges and encumbrances whatsoever, except for Permitted Liens (as
      defined in the Loan Agreement).

    

    2.    Negative
      Pledge.
      The
      Company will not, and will not permit any other Person (as defined in the Loan
      Agreement) to, create, assume, incur, or suffer to exist any lien, mortgage,
      pledge, charge, security interest or other encumbrance of any kind on or with
      respect to the Negative Pledge Property (other than a Permitted Lien). If the
      Company breaches this covenant, it shall constitute an event of default
      hereunder, and an Event of Default under the Loan Agreement. 

     

    3.    Remedies.
      Upon
      the occurrence of any event of default hereunder or an Event of Default under
      the Loan Agreement, the Administrative Agent and the Lenders may pursue any
      remedy available to them under the Loan Agreement, the other

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    Loan
      Documents (as defined in the Loan Agreement), at law or in equity, including
      without limitation any remedy provided for by the Uniform Commercial Code.
      All
      remedies shall be cumulative and not exclusive.

    

    4.    Waivers
      by Administrative Agent and the Lenders.
      No
      course of dealing by the Administrative Agent and the Lenders, or delay in
      exercising any of their remedies hereunder or under the Loan Agreement or any
      other Loan Document following an event of default hereunder, shall affect the
      Administrative Agent’s or any Lender’s rights later to take such action with
      respect thereto, and no waiver as to any one default or event of default shall
      affect the Administrative Agent’s or any Lender’s rights as to any other default
      or event of default. No waiver by the Administrative Agent or the Lenders shall
      be effective unless in writing and signed by the Administrative Agent or the
      Lenders and Company to which the waiver relates.

    

    5.    Term.
      This
      Agreement shall remain in full force and effect until the Maturity Date.
      Maturity Date shall mean March 11, 2008 or such earlier date on which the
      Revolving Credit Loans (as defined in the Loan Agreement) shall become due
      and
      payable pursuant to the terms thereof. On the Maturity Date, this Negative
      Pledge shall terminate, and the Administrative Agent shall, upon request and
      at
      the Company’s expense, execute all such documentation necessary to terminate any
      financing statement filed in connection with this negative pledge and to release
      any recording of this Negative Pledge in any real estate records.

    

    6.    Notices.
      Unless
      otherwise specified herein, all notices hereunder to any party hereto shall
      be
      in writing and shall be given in accordance with Section 21 of the Loan
      Agreement, and thereby shall be deemed to have been given.

    

    7.    Counterparts.
      This
      document may be signed in counterparts and will be fully effective as so
      signed.

    

    8.    Applicable
      Law.
      The
      terms of this Agreement shall be governed by and construed under the laws of
      the
      State of New York (without regard to conflict of laws provisions).

    

    9.    Amendment.
      This
      Agreement may not be changed or amended orally, but only by an agreement in
      writing signed by the party to be charged.

    

    10.         
      Severability.
      If any
      term or provision of this Agreement, or the application thereof to any person
      or
      circumstance, shall to any extent be invalid or unenforceable, the remainder
      of
      this Agreement, or the application of such term or provision to person or
      circumstances other than those as to which it is invalid or unenforceable,
      shall
      not be affected thereby, and each term and provision of this Agreement shall
      be
      valid and enforceable to the fullest extent permitted by law.

     

    
      11.    Principal
        Amount Secured.
        The
        principal amount secured by the Negative Pledge Property is up to
        $100,000,000.00.

      
 

      (signatures
        on next page)

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

 

    IN
      WITNESS WHEREOF, each of the parties hereto has executed this Agreement, or
      has
      caused this Agreement to be executed on its behalf by its duly authorized
      officer, as set forth below, all as of the date first hereinabove
      written.

    

    
      	 	
              HARTMAN
                REIT OPERATING PARTNERSHIP III LP 

            
	 	 
	 	
              By:
                Hartman REIT Operating Partnership III GP LLC, a Texas 

                    
                limited liability company, its Sole General Partner

               

            
	 	
                    
                By: Hartman REIT Operating Partnership, L.P., a  

                         Delaware
                limited partnership, its Sole Member

               

            
	
              WITNESS:

               

               

              __________________

            	
              By:
                Hartman Commercial Properties REIT, a Maryland 

                    
                real estate investment trust, its Sole General Partner

               

              By:
                _________________________________

                          
                Allen R. Hartman, President

            
	 	 

    

    

    

    STATE
      OF
      TEXAS:

                        SS

    COUNTY
      OF
      HARRIS:      

    

                                                                                                                          
      __________ __, 2005

    

    Then
      personally appeared Allen R. Hartman, President of Hartman Commercial Properties
      REIT, the sole general partner of Hartman REIT Operating Partnership, L.P.,
      which is the sole member of Hartman REIT Operating Partnership III GP LLC,
      which
      is the sole general partner of Hartman REIT Partnership III LP and acknowledged
      the foregoing instrument to be his free act and deed on behalf of Hartman
      Commercial Properties REIT, Hartman REIT Operating Partnership, L.P., Hartman
      REIT Operating Partnership III GP LLC and Hartman REIT Partnership III
      L.P.

    

    

    Before
      me,

    

                                            _______________________________

                                            Notary
      Public

                                            My
      commission
      expires: ____________

    

    
 

    [Signatures
      continued on Next Page]

    

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

     

    
      	
              WITNESS:

            	
              
                KEYBANK
                  NATIONAL ASSOCIATION, as 

                Administrative
                  Agent

              

            
	 	 
	________________________ 	
               

              By:_____________________________

                   
                Name:

                   
                Title:

            
	 	
                    

            
	 	 

    

     

    
 

    STATE
      OF
      _________:                                                                                                                                                                      
      SS

    COUNTY
      OF
      _______:        

    

                                                                                                                                               
      __________ __, 2005

    

    Then
      personally appeared ________________, ________________ of KeyBank National
      Association, and acknowledged the foregoing instrument to be his free act and
      deed on behalf of KeyBank National Association.

    

    

    Before
      me,

    

    

                           
      ______________________________

                                Notary
      Public

                                My
      commission
      expires: ___________

    

    

    

    -4-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]