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EXHIBIT 10.37   AGREEMENT OF SALE by and between MADISON TWO ASSOCIATES, Seller and HINES 70 WEST MADISON LP, Buyer




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TABLE OF CONTENTS Page1.
    
    Sale and Purchase
    
    
    12.
    
    Purchase Price
    
    
    23.
    
    Closing
    
    
    24.
    
    Condition of Title
    
    
    25.
    
    Possession, Assignment of Agreements and Leases
    
    
    46.
    
    Apportionments
    
    
    67.
    
    Closing Costs
    
    
    108.
    
    Municipal Improvements/Notices
    
    
    109.
    
    Sellers Representations
    
    
    1110.
    
    Delivery of Premises Documents
    
    
    1411.
    
    Buyer Representations
    
    
    1512.
    
    Conditions Precedent to Closing
    
    
    1513.
    
    Deliveries at Closing
    
    
    1714.
    
    Default
    
    
    1915.
    
    Notices; Computation of Periods
    
    
    2016.
    
    Fire or Other Casualty
    
    
    2217.
    
    Condemnation
    
    
    2318.
    
    Assignability
    
    
    24
 (i)




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Page19.
    
    Inspections/Inspection Period
    
    
    2420.
    
    Brokers
    
    
    2621.
    
    CONDITION OF PREMISES
    
    
    2622.
    
    Survival of Provisions
    
    
    2923.
    
    Miscellaneous
    
    
    3024.
    
    Sophistication of the Parties
    
    
    3225.
    
    Limited Liability
    
    
    3226.
    
    Enforcement
    
    
    3227.
    
    Waiver of Tender of Deed and Purchase Monies
    
    
    32
 (ii)




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AGREEMENT OF SALE AGREEMENT made this 10th day of March, 2005 by and between MADISON TWO ASSOCIATES (Seller),
a Texas general partnership, having an office c/o Hines Chicago Associates Limited, Three First
National Plaza, 70 West Madison Street, Suite 440, Chicago, Illinois 60602, and HINES 70 WEST
MADISON LP (Buyer), a Delaware limited partnership, having an office at 2800 Post Oak Boulevard,
Suite 5000, Houston, Texas 77056-6118. W I T N E S S E T H : 1. Sale and Purchase. Seller hereby agrees to sell and convey to Buyer, and Buyer hereby agrees to purchase from Seller,
upon the terms and conditions hereinafter set forth, the following (a) Real Property. Those certain lots or parcels of real property located in
Chicago, Illinois and commonly known as Three First National Plaza, 70 West Madison Street,
Chicago, Illinois, which is more particularly described on Exhibit A hereto, the
buildings, structures, parking areas and other improvements situate on each such parcel,
and the lessors and lessees interests under that certain Ground Lease Agreement dated
April 10, 1978 and originally recorded April 12, 1978 as Document 24400078 in the Official
Records of Cook County, Illinois (as amended and/or assigned by Documents 24639226,
26033148, 26565953, 86468007, 87121380, 87121381, 88338680, 88338681 in the Official
Records of Cook County, Illinois) (collectively, the Premises), together with all the
rights and appurtenances pertaining to the Premises, including any right, title and
interest of Seller (if any) in and to adjacent streets, alleys, rights-of-way and any
easement rights, subsurface rights, air rights, development rights, water rights,
wastewater capacities, and credit reservations; (b) Existing Leases. The interest as lessor in and to all the Existing Leases
and any new leases hereafter entered into pursuant to the terms hereof; (c) Personal Property. All of Sellers rights, title, and interest in and to
the fixtures, furnishings, equipment, artwork, and other items of personal property, if
any, owned by Seller and located on, and used in connection with the operation of the
Premises, excluding only the items, if any, listed on Exhibit B hereto
(collectively, the Personal Property, and, together with the Premises, the Property);
and (d) Related Materials. To the extent transferable and in the possession of
Seller or Sellers property manager, all of Sellers right, title, and interest in and to
all other licenses, permits and guaranties, if any, which relate to the Property being
conveyed to Seller by Buyer on the date hereof.




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2. Purchase Price. The purchase price to be paid by Buyer to Seller for the Premises and the Personal Property is the
sum of Two Hundred Thirty-Six Million and NO/100 Dollars ($236,000,000.00) (the Purchase Price),
adjusted in accordance with Section 6 hereof. The Purchase Price shall be paid as follows: (a) Deposit. The sum of Seven Million and NO/100 Dollars ($7,000,000.00) (the
Deposit) in immediate available funds shall be deposited with the Title Company, as
hereinafter defined (the Escrowee), on the date of the execution of this Agreement by
Buyer and Seller and delivery of a fully-executed counterpart to each (the Effective
Date). The Escrowee shall, pending consummation of this transaction, hold the Deposit in
escrow in an interest bearing account in accordance with the terms and provisions of the
Deposit Escrow Agreement of even date herewith by and among Seller, Buyer and Escrowee (the
Deposit Escrow Agreement). All interest earned on the Deposit shall be added to and made
a part of the Deposit for all purposes hereof. At Closing, the Deposit shall be paid to
Seller and credited against the Purchase Price. (b) Closing Payment. At Closing, Buyer shall pay the balance of the Purchase
Price to Seller, adjusted as hereinafter provided, either directly or, if the Closing
occurs in escrow with the Title Company, through the Title Company, by wire transfer of
immediate federal funds, to accounts specified by Seller at a bank or banks designated by
Seller. Seller agrees to pay to the holders of the two existing mortgages on the Premises,
one in the original principal amount of $100,000,000 and the other in the original
principal amount of $165,163,000, amounts sufficient to have such mortgages fully released
and discharged of record with respect to the Premises (documents from such holders which
will effect such release being herein referred to as the Mortgage Releases). 3. Closing. The closing of the transfers contemplated hereby (the Closing) shall be held and completed on
March 22, 2005 (the Closing Date), through an escrow with the Title Company or in another
mutually agreeable manner and location. Time shall be of the essence in respect of the Closing
Date. 4. Condition of Title. (a) Title to Premises. Sellers fee simple and ground leasehold interests and title
to the Premises shall be conveyed by Seller to Buyer at the completion of Closing by the Deed, as
hereinafter defined, subject only to the Permitted Encumbrances. Sellers interest in the Personal
Property shall be conveyed by Seller to Buyer at the completion of Closing by the Bill of Sale, as
hereinafter defined. Title to the Premises shall be such as will be insured by the Title Company
as provided herein pursuant to the commitment for title insurance dated February 14, 2005 issued by 2




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Chicago Title Insurance Company (Order Number 1401-008247956 D2) (the Title Commitment)
providing for the issuance of an ALTA form of Owners Title Insurance Policy (10-17-70, amended
10-17-84), with Extended Coverage (the Title Policy), free and clear of all liens and
encumbrances, except for the Permitted Encumbrances. The term Permitted Encumbrances shall mean
(x) the Existing Leases (as hereinafter defined) in effect as of the Closing Date, (y) those
matters set forth on Exhibit C hereto and/or reflected on the Survey Plan, and (z) any
matters reflected on any update of the Title Commitment as to which Buyer does not timely object in
accordance with this Paragraph 4. Title to the Personal Property, if any, shall also be subject to
the Permitted Encumbrances, to the extent applicable. (b) Survey. Within five (5) days of the Effective Date, Buyer will order, at its sole
cost and expense, a physical survey, from a licensed surveyor, of the Premises, to be certified to
Seller, Buyer and the Title Company as being in accordance with current ALTA/ACSM minimum detail
standards (the Survey Plan). Nothing contained in this Agreement, including the provisions of
Paragraph 1(a), shall constitute any warranty, representation or agreement by Seller as to the
location of separate lots in, or acreage of, the Premises. (c) Title Defects. Buyer has ordered, at its sole cost and expense, the Title
Commitment in the amount of the Purchase Price from the Title Company with respect to the Premises.
Buyer shall be deemed to have waived its right to object to any encumbrance or other title
exception or matter reflected in the Title Commitment and any matter reflected on the Survey Plan
unless Buyer shall have given Seller a specific written notice of its objection to any such matter
that is not a Permitted Encumbrance (a Title Notice) within five (5) days of Buyers receipt of
the last to be received of the Title Commitment and the Survey Plan. Buyer hereby provides a Title
Notice with respect to any encumbrance or other title exception (or condition to the issuance of
the Title Policy to the extent that such condition is under Sellers control or responsibility
under this Agreement) shown on the Title Commitment (except the Permitted Encumbrances). Buyer
shall be deemed to have waived its right to object to any encumbrance or other title exception
reflected on any update of the Title Commitment unless Buyer shall have given a Title Notice to
Seller prior to the earlier to occur of (x) the expiration of five (5) days after the receipt by
Buyer of such update to the Title Commitment or (y) the Closing. Seller shall have no obligation
to cure any alleged defect, objection or survey matter raised in the Title Notice, except for the
monetary liens referred to in subparagraph (e) of this Paragraph 4 that are to be paid by Seller at
or before Closing. Upon Buyers failure to timely object, any encumbrance or other title exception
or matter reflected on the Title Commitment or Survey Plan, and any update thereof, shall
thereafter be deemed a Permitted Encumbrance. Seller shall have the right, at its sole option,
upon written notice to Buyer within ten (10) days of receipt of Buyers Title Notice, to (A) defer
the Closing for a period not exceeding sixty (60) days after the Closing Date (but in no event,
including an extension under this clause (A), shall Closing be extended beyond May 15, 2005) to
give Seller an opportunity, at Sellers sole option, of attempting to remove any encumbrance or
other title exception or matter which is not a Permitted Encumbrance or (B) elect not to do (A), in
which event Buyer shall have the election set forth in subparagraph (e) of this Paragraph 4. Failure by Seller to deliver such
notice shall be deemed an election under subparagraph (B) above. 3




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(d) Reliance on Title Policy. Notwithstanding anything contained in this Agreement to
the contrary, with respect to all matters affecting title to the Premises and any liens or other
encumbrances affecting the Premises, Buyer acknowledges and agrees it is relying upon its title
insurance policy. If Buyer has a claim under its title insurance policy and the subject matter of
that claim also constitutes a breach of Sellers representation set forth in Paragraph 9(a)(v) or
in Paragraph 9(a)(vii) in this Agreement or the Deed, Buyer agrees that it will look first to its
title insurance policy for recovery on such claim, and Buyer shall not assert any claim against
Seller for a breach of a representation, warranty or covenant with respect to such claim unless and
until Buyer has pursued its remedies against the Title Company to final judgment and has not been
made whole. The provisions of this subparagraph (d) shall survive Closing and delivery of the
Deed. (e) Failure of Title. If on or before the Closing Date title to the Premises is not
insurable as set forth in the third sentence of subparagraph (a) above and Seller does not elect to
cure same as provided in subparagraph (c)(A) above, Buyer may elect, as its sole right and remedy
by reason thereof, within five (5) business days of Sellers notice in accordance with the
penultimate sentence of subparagraph (c) above, either (i) to take such title to the Premises as
Seller can convey, with no abatement of the Purchase Price (except as set forth below) or (ii) upon
written demand by Buyer to Seller and Escrowee, to terminate this Agreement and receive the return
of the Deposit. Notwithstanding the foregoing provisions of this Paragraph 4, Seller shall be
obligated to cause the removal of (a) the existing mortgage in the original principal amount of
$165,163,000 recorded as Document 88338689, (b) the existing mortgage in the original principal
amount of $100,000,000 recorded as Document 09062702, and (c) any other monetary lien arising as a
result of actions by Seller for a liquidated sum of up to $500,000 filed against the Premises prior
to Closing, other than the liens referred to in Paragraph 19(b). It is understood, however, that a
condition to Buyers obligation to close shall be the removal of all monetary liens. Upon the
return of the Deposit, this Agreement shall be and become null and void, neither party shall have
any further rights or obligations hereunder (except for the indemnity obligations of Buyer to
Seller as set forth in this Agreement and such of Sellers rights as set forth in Paragraph 23(g),
which shall survive the cancellation of this Agreement), and all executed counterparts of this
Agreement shall be returned to Seller. 5. Possession, Assignment of Agreements and Leases. (a) Existing Leases. Possession of the Premises and the Personal Property is to be
given by Seller to Buyer at the completion of Closing by delivery of the Deed, Bill of Sale and
General Assignment and Assumption Agreement. At Closing, pursuant to the General Assignment and
Assumption Agreement, Seller shall assign to Buyer, without any representation or warranty
whatsoever (except as otherwise expressly set forth in Paragraph 9 of this Agreement) and without
recourse (other than Sellers liability for any obligations thereunder relating to the period prior
to the date of Closing 4




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that Buyer has not assumed at Closing) the Existing Leases. During the period from the
expiration of the Inspection Period through Closing (or earlier termination of this Agreement or
default by Buyer hereunder), Seller shall not enter into new leases for portions of the Premises
now vacant or for portions of the Premises which may become vacant, or enter into any amendments of
any Existing Leases or consent to any renewals, extensions or expansions of Existing Leases (other
than those to which the tenant is entitled pursuant to the terms of the Existing Lease) without
first submitting such a copy of such proposed lease or lease amendment (including any renewal,
extension or expansion as to which the lessors consent is required) to Buyer for Buyers approval,
which may not be unreasonably withheld or delayed. If Buyer does not disapprove in writing such a
proposed lease or amendment (or renewal, extension or expansion agreement) within five (5) days of
Buyers receipt of a copy thereof, Buyer shall be deemed to have approved the proposed lease or
amendment (or renewal, extension or expansion agreement). All such new leases and modifications
approved or deemed approved by Buyer (and renewals, extensions or expansions approved or deemed
approved by Buyer or as to which the lessors consent is not required) and the presently existing
leases that are listed on Exhibit D-1" hereto are collectively herein called the Existing
Leases. Neither (i) the termination of any of the Existing Leases prior to Closing by reason of
the expiration of its term or the default of the tenant thereunder nor (ii) delinquency in the
payment of rent (i.e., a failure to pay which, with notice and the opportunity to cure, if any,
would constitute a default) by the tenant under any Existing Lease, shall excuse Buyer from its
obligation to complete Closing and to pay the full Purchase Price, unless such termination,
default, or delinquency under (i) or (ii) relates to tenant(s) whose base rent(s), in the
aggregate, equal more than five percent (5%) of the total base rent of all tenants under the
Existing Leases. (b) Assignment/Existing Agreements. At Closing, pursuant to the General Assignment and
Assumption Agreement, Seller shall assign to Buyer, without any representation or warranty
whatsoever (except as otherwise expressly set forth in Paragraph 9 of this Agreement) and without
recourse (other than Sellers liability for any payments required to be made thereunder relating to
the period prior to the date of Closing for which Buyer is not given a credit at Closing), to the
extent assignable, all of Sellers right, title and interest in, to and under the existing
agreements listed on Exhibit E hereto (together with any other agreements entered into in
accordance with this subparagraph (b) hereinafter collectively called the Existing Agreements).
Provided Hines Interests Limited Partnership shall have agreed in writing both to waive any
required notice periods and that such cancellation may be taken without Sellers incurring of any
costs in connection therewith, Seller shall terminate, as of Closing, the existing management
agreement with Hines Interests Limited Partnership. During the period from expiration of the
Inspection Period through Closing (or earlier termination of this Agreement or default by Buyer
hereunder), Seller shall not have the right to enter into new service or maintenance agreements or
modify any existing service or maintenance agreements in any material respect without Buyers
approval, which may not be unreasonably withheld or delayed and shall be deemed given if Buyer does
not disapprove within five (5) days of a request for approval; provided, however, that Buyers
approval shall not be required for any such new agreement that shall be terminable, without penalty
or premium, on not more than thirty (30) days notice. The termination 5




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of any of the Existing Agreements prior to Closing by reason of the expiration of its term or
by reason of a default thereunder shall not excuse Buyer from its obligation to complete Closing
and to pay the full Purchase Price. 6. Apportionments. (a) (i) Generally. As between Seller and Buyer, real estate taxes paid or payable
pursuant to real estate tax bills received in the calendar year in which the Closing occurs (i.e.,
2004 real estate taxes paid or to be paid pursuant to tax bills received in calendar year 2005)
shall be prorated on a cash basis, as set forth in clause (vi) below. Annual municipal or special
district assessments (on the basis of the actual fiscal tax years for which such taxes are
assessed), lienable water and sewer rentals, sums paid to or paid or payable by Seller under the
Existing Agreements, license, permit and inspection fees and rentals, sales tax and other sums paid
to and received by Seller under the Existing Leases shall be apportioned as of the Closing Date
between Buyer and Seller. (ii) Rent. Collected rent, including, without limitation, fixed rent, prepaid rent,
additional rent and percentage rent, if applicable, shall be apportioned as of the Closing Date in
accordance with the provisions of this Paragraph 6. With respect to any rent arrearages arising
under the Existing Leases for the period prior to the Closing Date, Buyer shall pay to Seller any
rent or payment actually collected after Closing which is designated as applicable to the period
preceding the Closing Date. All rent under the Existing Leases collected by Buyer after Closing
that is not so designated shall be applied first to the current months rent, then to unpaid rent
accruing prior to the Closing Date and then to unpaid rent accruing on or after the Closing Date.
During the nine (9) month period following Closing, Buyer shall use good faith commercially
reasonable efforts to recover any rent (or other tenant charge) arrearages in respect of the period
prior to the Closing Date, provided that Buyer shall not be required to incur any material cost or
commence any legal proceeding in connection therewith. Seller (upon notification to Buyer) shall
be entitled to sue a tenant, before and/or after Closing, for any delinquent rent (or other tenant
charges) due to Seller (and not previously paid to Seller) under an Existing Lease, so long as such
suit does not seek a termination of such Existing Lease or eviction of such tenant. In addition,
except for the right to commence litigation in all matters relative thereto, whether before or
after Closing, Seller expressly assigns to Buyer all rights to collect on behalf of Seller all
amounts due or owed by Urban Investment Trust, Inc. and John Terzakis pursuant to that certain
Stipulation dated April 22, 2004 entered into by Seller, Urban Investment Trust, Inc. and John
Terzakis in connection with the settlement of certain lease claims of Seller against Urban
Investment Trust, Inc. and John Terzakis (the Settlement Agreement). Buyer shall promptly remit
all such payments to Seller upon receipt. (iii) Leasing Costs. Subject to subparagraph (d) of this Paragraph 6, Seller shall
pay all leasing commissions and tenant costs (including, without limitation, tenant improvement
costs, moving costs, design costs incurred by the tenant, lease buyout costs and similar tenant
inducement costs) in connection with Existing Leases (and renewals, extensions or expansions
thereof) that become due and payable 6




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prior to the expiration of the Inspection Period. All leasing commissions and tenant costs
with respect to Existing Leases (and renewals, extensions or expansions thereof) becoming due and
payable on or after the expiration of the Inspection Period shall be the responsibility of Buyer
and Buyer shall indemnify, defend and hold Seller harmless with respect thereto. Notwithstanding
the foregoing, (i) Seller shall be responsible for all leasing commissions and tenant costs
(including, without limitation, tenant improvement costs, moving costs, design costs incurred by
the tenant, lease buyout costs and similar tenant inducement costs) for the tenants designated as
Sellers responsibility on Exhibit M-1 attached hereto and (ii) Buyer shall be
responsible for all leasing commissions and tenant costs (including, without limitation, tenant
improvement costs, moving costs, design costs incurred by the tenant, lease buyout costs and
similar tenant inducement costs) for the tenants designated as Buyers responsibility on
Exhibits M-2, M-3 and M-4 attached hereto. To the extent that the costs and
expenses referenced in clause (i) above shall remain unpaid as of Closing, Buyer shall receive a
credit from Seller therefor at Closing. To the extent that the costs and expenses referenced in
clause (ii) above shall have been paid by Seller, Seller shall be reimbursed by Buyer therefor at
Closing. (iv) Other Tenant Charges. Where the Existing Leases contain tenant obligations for
taxes, common area expenses, operating expenses or additional charges of any other nature, and
where Seller shall have collected any portion thereof in excess of amounts owed by tenants for such
items with respect to the period prior to the Closing, then there shall be an adjustment and credit
given to Buyer on the Closing Date for such excess amounts collected, if any. Buyer shall apply
all such excess amounts to the charges owed by Buyer for such items for the period for which they
were due and, if required by the Existing Leases, shall rebate or credit the tenants with any
remainder and Buyer shall indemnify, defend and hold Seller harmless with respect to any sums as to
which Buyer received a credit at Closing. If more amounts have been incurred for the operating
expenses and other items listed above than have been collected from tenants for such items, Buyer
shall pay such difference to Seller at such time as Buyer has recovered such amount from the
tenants. (v) Other Apportionments. Amounts payable under the Existing Agreements and other
Premises operation and maintenance expenses and other recurring costs, if any, shall be apportioned
as of the Closing Date. (vi) Taxes and Assessments. As between Seller and Buyer, real estate taxes paid or
payable pursuant to real estate tax bills received in the calendar year in which the Closing occurs
(i.e., 2004 real estate taxes paid or to be paid pursuant to tax bills received in calendar year
2005) shall be prorated on a cash basis, except for any portion of such real estate taxes that is
payable directly by a tenant to the taxing authority, which portion shall not be apportioned
between Seller and Buyer. At Closing, Seller shall receive a credit for the real estate taxes paid
by Seller based on the number of days between the Closing Date and June 30, 2005, divided by 181.
Assuming the Closing occurs on March 15, 2005 and the real estate tax bill due on March 1, 2005 has
been paid by Seller, Seller will receive a credit for 107/181sts (the number of days between March
15, 2005 and June 30, 2005, divided by 181) of such real estate tax bill paid by Seller. 7




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As between Seller and Buyer, reconciliation of real estate taxes shall be made when the
second-half tax bill for tax year 2004 is received (estimated to be in the fall of 2005). Such
reconciliation shall be computed by multiplying the sum of the real estate tax bills received in
the calendar year in which the Closing occurs by a fraction, the numerator of which is the number
of days in such calendar year which are the responsibility of Buyer or Seller, as applicable, and
the denominator of which is 365. Either party owing the other party a sum of money based on such
reconciliation of real estate taxes shall promptly pay such sum to the other party. If on the date
of Closing, bills for the real estate taxes imposed on the Premises have been issued but shall not
have been paid, such taxes shall be paid at the time of Closing. Seller expressly waives the right
to commence and conduct any tax certiorari or reduction proceedings relating to the Premises in
respect of the real estate tax year in which the Closing occurs and all prior real estate tax
years, whether or not such proceedings have already been commenced, and agrees to take such action,
at no cost to Seller, as shall be reasonably required to assign to Buyer such rights to commence
and conduct the same. Buyer expressly agrees that refunds, if any, for any such years, to the
extent such refunds are attributable to payments made by Seller and not by any tenant, shall be
immediately paid by Buyer to Seller and this provision shall survive the Closing. (vii) Contract Arrearages. Any portion of any payments received by Buyer after the
date of Closing under any of the Existing Agreements that relates to periods prior to Closing shall
be determined by Buyer upon receipt of such payment and shall immediately be paid by Buyer to
Seller. (viii) Accounting. From the Closing Date until such time as Seller shall have
received in full all sums which are potentially payable to it as provided in this Paragraph 6(a),
Buyer shall provide Seller a monthly accounting of all sums received and/or paid by Buyer under any
of the Existing Leases or Existing Agreements, subject to Paragraph 6(e). (ix) [Intentionally Deleted] (x) Preliminary Closing Adjustment. Seller and Buyer shall jointly prepare a
preliminary Closing Statement on the basis of the Existing Leases, Existing Agreements, real estate
taxes and other sources of income and expenses, and shall deliver such preliminary Closing
Statement to the Title Company on or prior to the Closing Date. All apportionments and prorations
provided for in this Paragraph 6 to be made as of the Closing Date shall be made, on a per diem
basis, as of midnight of the day immediately preceding the Closing Date. The preliminary Closing
Statement and the apportionments and/or prorations reflected therein shall be based upon actual
figures to the extent available. If any of the apportionments and/or prorations cannot be
calculated accurately based on actual figures on the Closing Date, then (other than with respect to
determination of real estate taxes that shall be computed as set forth in Clause (vi) above) they
shall be calculated based on Sellers and Buyers good faith estimates thereof, subject to
reconciliation as hereinafter provided. 8




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(xi) Post-Closing Reconciliation. If there is an error on the preliminary Closing
Statement or, if after the actual figures are available as to any items that were estimated on the
preliminary Closing Statement (excluding real estate taxes that were computed in accordance with
Clause (vi) above), it is determined that any actual proration or apportionment varies from the
amount thereof reflected on the preliminary Closing Statement, the proration or apportionment shall
be adjusted based on the actual figures as described in this clause (xi). An initial
reconciliation of the prorations and apportionments, except with respect to real estate taxes
computed in accordance with clause (vi) above, shall be made by Buyer and Seller within sixty (60)
days after the Closing Date. Any delinquent rental payments owed to Seller pursuant to clause (ii)
above shall be paid to Seller within thirty (30) days of receipt. A final reconciliation of all
prorations and apportionments, except with respect to real estate taxes computed in accordance with
clause (vi) above, shall be made by Buyer and Seller within nine (9) months after the Closing Date.
If on the date of such final reconciliation, actual figures cannot be precisely determined, Seller
and Buyer shall in good faith reasonably estimate such sums. Either party owing the other party a
sum of money based on any reconciliations and prorations described in this clause (xi) shall
promptly pay said sum to the other party. (b) Tenant Security Deposits. At Closing, Seller shall deliver or cause its property
manager to deliver to Buyer (or give Buyer a credit for), without consideration, all security
deposits, as shown on Exhibit D-2, then held by or for Seller under the Existing Leases,
as shown on Exhibit D-1 hereto. Buyer will cause the security deposits to be maintained
after Closing in accordance with the requirements of applicable law and shall indemnify and defend
Seller from all claims of tenants with respect to the security deposits actually delivered to Buyer
or for which Buyer received a credit at Closing. In the event any security deposits are in the
form of a letter of credit, then Seller shall deliver on Closing the original letter(s) of credit,
together with such documentation (executed by any required parties) as shall enable the letter(s)
of credit to be assigned to Buyer with no further action, and with any transfer fee charged by the
issuer of any such letter of credit to be paid by any party other than Buyer. (c) Utility Readings. Seller shall use reasonable efforts to obtain readings of the
water and electric meters on the Premises to a date no sooner than ten (10) days prior to the
Closing Date. At or prior to Closing, Seller shall pay all charges based upon such meter readings.
However, if after reasonable efforts Seller is unable to obtain readings of any meters prior to
Closing, Closing shall be completed without such readings and upon the obtaining thereof after
Closing, Seller shall pay the charges incurred prior to Closing as reasonably determined by Seller
and Buyer based upon such readings. (d) Reimbursements. At Closing, Buyer shall reimburse Seller for all leasing
commissions and tenant costs actually paid by Seller (i) for leases (or modifications or amendments
thereof) which costs become due and payable after the expiration of the Inspection Period, except
as set forth on Exhibit M-1 attached hereto, (ii) for leases, if any, set forth on
Exhibit D-1 hereto for which the tenant is not yet in occupancy of its leased premises on
the date hereof, except as set forth on Exhibit M-1 9




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attached hereto, and (iii) as a result of any renewal, extension or expansion of Existing
Leases exercised between the expiration of the Inspection Period and the Closing Date and which are
approved or deemed approved by Buyer or as to which the lessors consent is not required. Seller
shall provide Buyer with invoices and evidence of payment of such costs. Buyer shall timely pay,
after the Closing Date, and shall indemnify, defend and hold Seller harmless with respect to all
installments of leasing commissions and tenant costs which become due and payable after the
expiration of the Inspection Period (x) for leases (or modifications or amendments thereof)
executed after the expiration of the Inspection Period which are approved or deemed approved by
Buyer, (y) for leases, if any, set forth on Exhibit
D-1 hereto for which the tenant is
not yet in occupancy of its leased premises on the date hereof and (z) as a result of any renewal,
extension or expansion of Existing Leases exercised between the expiration of the Inspection Period
and the Closing Date and which are approved or deemed approved by Buyer or as to which the lessors
consent is not required. Tenant costs include, without limitation, tenant improvement costs and if
the lease so provides moving costs, design costs incurred by the tenant, lease buyout costs and
similar tenant inducement costs provided for in the Existing Leases. (e) Survival. The provisions of this Paragraph 6 shall survive Closing and delivery
of the Deed until the final reconciliation is made pursuant to this Paragraph 6(a), except for the
last sentence of Paragraph 6(a)(ii) which shall survive until all payments payable at the times
provided in the Settlement Agreement have been collected by Buyer and remitted to Seller. 7. Closing Costs. (a) Buyers Costs. Buyer shall pay (i) the costs of its counsel, architect, engineers
and other professionals and consultants, (ii) any recording and filing fees, (iii) city transfer
taxes, (iv) all Title Company charges, other than the basic title premium (to be paid by Seller
pursuant to Clause (b) below) for the standard ALTA (10-17-70, amended 10-17-84), with Extended
Coverage form of owners title policy, and (iv) the cost of obtaining the Survey Plan. (b) Sellers Costs. Seller shall pay (i) State and county transfer taxes and (ii) the
basic title premium for the ALTA (10-17-70, amended 10-17-84), with Extended Coverage Title Policy
in the amount of the Purchase Price, it being understood that Buyer shall pay the cost of any
endorsements to the standard form of ALTA (10-17-70, amended 10-17-84), with Extended Coverage 1992
owners title policy or any mortgagees policy or endorsements thereto. Seller shall reasonably
cooperate with the Title Company to cause the Title Company to issue the final Title Policy with
the endorsements in accordance with the Title Commitment. 8. Municipal Improvements/Notices. (a) Assessments. Buyer shall pay all unpaid installments becoming due on or after the
Closing Date in respect of assessments against the Premises or any part thereof for improvements or
other work (including any fines, interest or penalties 10




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thereon due to the non-payment thereof), and shall indemnify, defend and save Seller harmless
from any claims therefor or any liability, loss, cost or expenses arising therefrom. (b) Compliance. Seller shall be responsible to comply, up to the amount of $500,000,
with any notices received by Seller on or after the date hereof and prior to Closing concerning the
existence of an uncorrected violation of an ordinance, public regulation or statute issued by any
public authority (including any fines, interest or penalties thereon due to non-compliance
therewith) in respect of the Premises. Nothing contained in this Paragraph 8 shall be deemed to
limit any rights Buyer may have by reason of a breach of the representations of Seller set forth in
Paragraph 9(a)(ix) hereof or any right of Buyer to treat a failure or refusal of Seller to correct
such violation in excess of $500,000 as a failure of title pursuant to Paragraph 4(e). (c) Survival. The provisions of this Paragraph 8 shall survive Closing and delivery
of the Deed. 9. Sellers Representations. (a) Seller hereby represents to Buyer, as of the date hereof and as of Closing, as follows: (i) Organization. Seller is a general partnership, duly organized and validly
existing under the laws of the State of Texas and has all requisite partnership power and
authority to carry on its business as now conducted. (ii) Authorization. Seller has the partnership power and authority to enter
into and perform this Agreement and the transactions contemplated hereby, and Seller will
provide at Closing evidence of the due authorization for execution of this Agreement. (iii) Non-Contravention. The execution and delivery of this Agreement by
Seller and the consummation by Seller of the transactions contemplated hereby will not
violate any judgment, order, injunction, decree, regulation, or ruling of any court or
authority, or conflict with, result in a breach of, or constitute a default under, the
organizational documents of Seller, any note or other evidence of indebtedness, any
mortgage, deed of trust, or indenture, or any lease or other material agreement or
instrument to which Seller is a party or by which it is bound. (iv) Non-Foreign Entity. Seller is not a foreign person or foreign
corporation, as those terms are defined in the Internal Revenue Code of 1986, as amended,
and the regulations promulgated thereunder. (v) No Condemnation. To Sellers knowledge, there are no existing or pending
condemnation proceedings or deeds in lieu of condemnation affecting the Premises. 11




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(vi) Existing Leases/REA. To Sellers knowledge, (1) the information with
respect to the Existing Leases set forth in Exhibit
D-1 hereto is true, correct
and complete in all material respects, (2) the information with respect to the rent roll
set forth in Exhibit D-2 hereto is true, correct, and compete in all material
respects as of March 1, 2005 and will be updated, if necessary, to be so as of Closing, (3)
there are no unpaid installments of leasing or brokerage commissions that are payable after
Closing with respect to the current term of Existing Leases entered into prior to the date
hereof, other than as set forth on Exhibit M-4 hereto, (4) there are no unpaid
landlord obligations for tenant improvements that are payable after Closing in connection
with the current term of Existing Leases entered into prior to the date hereof, other than
as set forth on Exhibits M-1 and M-3 hereto and (5) Seller has not given to any
tenant nor received from any tenant any written notice of default that remains uncured
under any of the Existing Leases, other than as set forth on
Exhibit M-5 hereto.
Seller represents that (A) at the time of Closing, Seller shall have accepted no prepayment
of rent under any of the Existing Leases (except for rental for the current month and
payments that are required to be made in advance pursuant to the terms and provisions of
the Existing Leases), (B) at the time of Closing, Seller shall not have terminated any of
the Existing Leases by agreement with the tenant (except by reason of a default by the
tenant thereunder or except for notices given to indicate the landlords intention not to
permit the term of the lease to continue or be renewed for an additional term), and (C) to
Sellers knowledge, the copies of the Existing Leases previously delivered or made
available to Buyer by or on behalf of Seller are true, correct and complete in all material
respects (including all material amendments thereto). Except as disclosed in the Rent Roll
set forth on Exhibit D-2 attached hereto, to Sellers knowledge, no tenant or any
guarantor of any Existing Lease has filed for bankruptcy, voluntarily or involuntarily, or
been adjudicated bankrupt or admitted in writing its inability to pay its debts as they
become due. (vii) Litigation. To Sellers knowledge, there is no pending litigation
against Seller with respect to the Premises except as set forth on Exhibit H
hereto. (viii) Possession. Seller has not granted to any party any license, lease, or
other right relating to the use or possession of the Premises or any part thereof, except
tenants under the Existing Leases. (ix) Purchase Rights. Seller has not granted to any person or entity any
options or other agreements of any kind, whereby any person or entity other than Buyer will
have acquired or will have any right to acquire title to all or any portion of the
Premises. (x) Existing Agreements. To Sellers knowledge, (i) the copies of the
Existing Agreements delivered to or made available to Buyer were true, correct and complete
in all material respects, and (ii) there exists no default under any Existing Agreement. 12




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(xi) Municipal Assessment/Notices. Seller represents to Buyer that, to
Sellers knowledge, (A) there are no outstanding unpaid municipal assessment notices
against the Premises, (B) all municipal improvements that were completed between the date
of Sellers acquisition of title to the Premises and the date hereof and with respect to
which the Premises can be assessed have been paid in full and (C) it has not received any
written notice from any public authority concerning the existence of any presently
uncorrected material violation of any ordinance, public regulation or statute of any
municipal, state or federal government or agency with respect to the Premises. (xii) Environmental Matters. Except for small quantities relating to the
operation of the Premises that have been kept and used in accordance with all applicable
environmental requirements, to Sellers knowledge, there has been no production, disposal,
or storage on or from the Premises or any hazardous substances, petroleum, petroleum
by-products, PCBs or other toxic or radioactive substances or matters by Seller or by any
tenant or any prior owner of the Premises. To Sellers knowledge, Seller has not received,
from any governmental authority or regulatory agency, any written notice alleging a
material violation of any law, rule, regulation or order that has not been cured prior to
the date hereof, relating to environmental conditions by reason of the presence of
hazardous substances or materials (as such terms are presently used under applicable
environmental laws, rules and regulations) at the Premises. (xiii) Defects. To Sellers knowledge, there are no material physical or
mechanical defects or deficiencies in the condition of the Property, including, but not
limited to, the roof, exterior walls, or structural components of the improvements, and the
heating, air conditioning, plumbing, ventilation, utility, sprinkler, and other mechanical
and electrical systems located in the improvements. (xiv) Insurance. To Sellers knowledge, Seller has not received any written
notice from any insurance company or board of fire underwriters of any defects or
inadequacies in or on the Premises or any part or component thereof that would adversely
affect the insurability of the Premises or cause any increase in the insurance premiums for
the Premises. (xv) Bulk Sales. Seller will file the notices seeking release from the
withholding obligations under Section 902(d) of the Illinois Income Tax Act and under the
City of Chicago Bulk Sales Ordinance (Section 3-4-140 of the Chicago Municipal Tax Code)
(Uniform Revenue Procedures Ordinance) (collectively, the Bulk Sales Laws) within three
(3) business days after the date hereof and will pay all taxes due, if any, within twenty
(20) business days after receipt of notice from the respective taxing authorities of the
amount due. At Closing, Seller will provide an updated certificate, to the extent practicable, reflecting any
changes in the above representations. 13




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(b) All references in this Paragraph 9 or elsewhere in this Agreement and/or in any other
document or instrument executed by Seller in connection with or pursuant to this Agreement, to
Sellers knowledge or to the knowledge of Seller and words of similar import shall refer solely
to facts within the actual knowledge (without independent investigation or inquiry) of            and Ted Minorini, and shall not be construed to refer to the knowledge of any other
employee, officer, director, shareholder or agent of Seller or any affiliate of Seller, and shall
in no event be deemed to include imputed or constructive knowledge. (c) At the Closing, as security for its post-closing obligations hereunder, including
prorations, indemnities, and the accuracy of Sellers representations and warranties made herein,
Seller shall deposit the amount of One Million Five Hundred Thousand Dollars ($1,500,000) to be
held by the Title Company, as escrow agent, in an interest bearing escrow account at a bank
mutually acceptable to Buyer and Seller (together with any interest earned thereon, the Claims
Account). The Claims Account shall be maintained for a period of nine (9) months after Closing,
at which time all amounts remaining in the Claims Account, if any, shall be distributed to Seller.
During such nine (9) months period, if the Buyer first becomes aware of a breach of a
representation, warranty, or obligation of Seller under this Agreement and as to which breach Buyer
at Closing had no knowledge, then Buyer shall send a written notice to Title Company and to Seller
providing reasonable and sufficient detail as to the nature of the claimed breach as well as
documentation supporting the amount of the actual damages suffered as a result of such breach. If
the parties agree in a writing delivered to Title Company on the claim and damages, an amount equal
to such actual damages shall be released from the Claims Account to Buyer. If there shall be any
dispute as to the facts of the claim and/or of the damages asserted which cannot be resolved by the
parties acting reasonably, the parties shall be entitled to submit the matter to arbitration in the
City of Chicago, Illinois in accordance with the rules of the American Arbitration Association and
with arbitrators who are independent of Buyer and Seller and, if applicable, the Title Company.
Buyer acknowledges that the amount to be deposited in the Claims Account is reasonable and
sufficient and that only one recovery and one remedy shall be had for any single claim exclusive of
Sellers obligation under Paragraph 22(c)(iv). 10. Delivery of Premises Documents. (a) Deliveries. Seller has furnished or made available to Buyer the following: (i) The current books and records (excluding, however, internal memoranda, appraisals
and documents and other information covered by the attorney-client privilege) and other
operating and maintenance documents and information customarily prepared by Seller, or by
Sellers property managers at Sellers request, or customarily maintained by Seller or
Sellers property managers with respect to the Premises, including, without limitation, to
the extent so prepared, the most recent rent roll, delinquency reports, financial
statements, operating expense reports and reconciliations, current and historical operating
and capital budgets, title, operations, repair and maintenance, environmental status and
structural/mechanical condition documents. 14




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(ii) Copies of all Existing Leases and Existing Agreements and any other occupancy
agreements currently in force with respect to the Premises. (iii) Copies of as-built plans and specifications and operating permits and
certificates of occupancy issued with respect to the Premises to the extent currently in
Sellers possession. (b) NO WARRANTY. NOTWITHSTANDING THE PRIOR PROVISIONS OF THIS PARAGRAPH 10 TO THE
CONTRARY, BUYER ACKNOWLEDGES AND UNDERSTANDS THAT SOME OF THE MATERIALS DELIVERED BY SELLER HAVE
BEEN PREPARED BY PARTIES OTHER THAN SELLER OR SELLERS CURRENT PROPERTY MANAGER. EXCEPT AS
EXPRESSLY SET FORTH IN PARAGRAPH 10, SELLER MAKES NO REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS
OR IMPLIED, AS TO THE COMPLETENESS, CONTENT OR ACCURACY OF THE DELIVERED MATERIALS WHICH WERE NOT
PREPARED BY SELLER OR SELLERS CURRENT PROPERTY MANAGER. 11. Buyer Representations. Buyer hereby represents to Seller, as of the date hereof and as of the date of Closing, as follows: (a) Organization. Buyer is a limited partnership, duly organized and validly
existing under the laws of the State of Delaware and has all requisite power and authority
to carry on its business as now conducted. (b) Authorization. Buyer has the requisite power and authority to enter into
and perform this Agreement and the transactions contemplated hereby and Buyer has duly
authorized the execution of this Agreement. (c) ERISA. Buyer is not acquiring the Premises or the Personal Property with
the assets of an employee benefit plan as defined in Section 3 (3) of the Employee
Retirement Income Security Act of 1974 (ERISA). 12. Conditions Precedent to Closing. (a) Buyer shall not be obligated to close under this Agreement unless each of the following
conditions shall be satisfied or waived by Buyer on or prior to the Closing Date: (i) Title Policy. The Title Company shall be prepared to issue, upon payment
of the title premium therefor, the Title Policy in the amount of the Purchase Price in
accordance with the Title Commitment subject only to the Permitted Encumbrances and otherwise as described in and in accordance with Paragraph
4(a) of this Agreement (the Title Policy); 15




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(ii) Accuracy of Representations. The representations and warranties made by
Seller in this Agreement or in an updated certificate delivered at Closing shall be true
and correct in all material respects as of the Closing Date; provided, however, that,
notwithstanding anything herein to the contrary, it shall not be deemed to be a failure of
a condition to Closing under this Section 12(a)(ii) (and shall also not be deemed to be a
default by Seller) if any such representations or warranties (which were true when made)
have become untrue after the date hereof due to any act expressly permitted to be taken by
Seller under this Agreement; and (iii) Tenant Estoppel Certificates. Seller shall have delivered to Buyer, at
or before Closing, a written statement from tenants occupying an aggregate of no less than
80% of the total rentable square footage of the Premises occupied by tenants under the
Existing Leases (the Estoppel Percentage) and in all events from the following tenants:
Bell Boyd & Lloyd, Sara Lee Corporation and Foley & Lardner LLP (the Major Tenants), in
substantially the form of, and as qualified by, the form of tenant estoppel certificate set
forth on Exhibit G attached hereto and made a part hereof and dated within
thirty-five (35) days of the date of Closing (Tenant Estoppel Certificate). In
determining whether the foregoing requirement has been satisfied, Buyer agrees not to
object to (i) any non-material (as determined in Buyers reasonable judgment)
qualifications or modifications which a tenant may make to the form of Tenant Estoppel
Certificate and (ii) any modification to a Tenant Estoppel Certificate to conform it to the
form of tenant estoppel the tenant is required to give under its lease. Notwithstanding
the foregoing provisions of this subparagraph (iii), Seller agrees to request a Tenant
Estoppel Certificate from each of the tenants under the Existing Leases. Sellers failure
to satisfy the Tenant Estoppel Percentage or its failure to provide Tenant Estoppel
Certificates from the Major Tenants shall not constitute a default by Seller hereunder. In
the event of such failure, Buyers sole remedy shall be to either (x) waive the estoppel
requirement and proceed to Closing without any abatement in the Purchase Price or (y)
terminate this Agreement and receive a return of the Deposit. (b) Seller shall not be obligated to close under this Agreement unless each of the following
conditions shall be satisfied or waived by Seller prior to the Closing Date: (i) Accuracy of Representations. The representations and warranties made by
Buyer in this Agreement shall be true and correct in all material respects as of the
Closing Date; and (ii) No Default. Buyer shall not be in default hereunder. 16




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13. Deliveries at Closing. (a) Sellers Deliveries. On the Closing Date, Seller shall deliver to Buyer or, at
Buyers direction, to the Title Company, the following: (i) Deed and Assignment of Ground Lease. A special warranty deed and
assignment of ground lease with respect to the Premises, in substantially the form attached
hereto as Exhibit I (the Deed), subject only to the Permitted Encumbrances. (ii) Bill of Sale. A bill of sale with respect to the Personal Property, if
any, in substantially the form attached hereto as Exhibit J (the Bill of Sale). (iii) General Assignment and Assumption Agreement. A general assignment and
assumption agreement with respect to the Existing Leases and Existing Agreements in
substantially the form of Exhibit F hereto (the General Assignment and
Assumption Agreement). (iv) Rent Roll. A Rent Roll with respect to the Premises in substantially the
form of Exhibit D-2 hereto, certified, to Sellers knowledge, as true and correct
in all material respects. (v) Security Deposits. With respect to each security deposit in the form of a
letter of credit, each original letter of credit and all necessary transfer documentation,
as set forth in Subparagraph 6(b) hereof. (vi) Authority Documents. If requested by the Title Company, evidence of
required partnership authority and an incumbency certificate to evidence the capacity of
the signatory for Seller. (vii) FIRPTA Certification. An affidavit in the form attached hereto as
Exhibit K with respect to compliance with the Foreign Investment in Real Property
Tax Act (Internal Revenue Code Sec. 1445, as amended, and the regulations issued
thereunder). (viii) Estoppel Certificates. The Tenant Estoppel Certificates referred to in
Paragraph 12(a) above. (ix) Tenant Notices. Written notice from Seller to each tenant of the
Premises under the Existing Leases in substantially the form attached hereto as Exhibit
L. (x) Possession and Keys. Possession of the Premises free and clear of all
parties in possession except tenants under the Existing Leases and (to the extent in
Sellers possession or the possession of Sellers property manager) all keys, codes and
other security devices for each parcel of the Property. 17




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(xi) Books and Records. Copies (to the extent in Sellers possession or the
possession of Sellers property manager) of all books and records reasonably required for
the orderly transition of operation of the Premises. (xii) Original Documents. The originals (to the extent in Sellers possession
or the possession of Sellers property manager) or, if unavailable, copies certified, to
Sellers knowledge, to be true, correct and complete in all material respects, of all
Existing Leases and the Existing Agreements and (to the extent in Sellers possession or
the possession of Sellers property manager) copies of as-built plans and specifications
for the improvements at the Premises, permits, licenses and other agreements and approvals
relating to the maintenance and operation of the Property. (xiii) Closing Statement. A preliminary Closing Statement, mutually
acceptable to Buyer and Seller. (xiv) Mortgage Releases. The two Mortgage Releases from the two mortgage
holders, unless the Title Company has made arrangements with the holders of the two
mortgages to deliver to the Title Company the two Mortgage Releases post-Closing and the
Title Company is willing to delete the two mortgages as exceptions to title. (xv) Local Law Documents. To the extent required to be filed or signed by
Seller, (1) State of Illinois Real Estate Transfer Declaration Form PTAX-203; (2) State of
Illinois Real Estate Transfer Declaration Supplemental Form A PTAX-203-A; (3) Cook County
Real Estate Transfer Declaration; (4) City of Chicago Department of Revenue Real Property
Transfer Tax Declaration Form 7551; and (5) City of Chicago Department of Water Management
Full Payment Certificate Application (it being understood that the Application described in
this subclause (5) shall be completed and filed by Seller prior to Closing in sufficient
time so as to obtain the necessary City of Chicago water certification allowing for
recordation of the Deed by the Title Company in connection with the Closing). (xvi) Other Documents. Any other documents which Seller is obligated to
deliver to Buyer pursuant to this Agreement. (xvii) Update Certificate. A certificate of Seller substantially in the form
attached hereto as Exhibit N confirming the continued accuracy of the
representations and warranties made by Seller in Section 9(a) hereof or updating or
correcting any changes to such representations and warranties, it being agreed that any
update to or change of the representations and warranties will not be a Seller default or
constitute a failure of a condition precedent to Closing if any such representations and
warranties (which were true when made) have become untrue due to any act expressly
permitted to be taken by Seller under this Agreement, as more particularly provided in
Section 12.1(a)(ii) hereof. 18




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Location at the Premises on the date of Closing of any of the materials referred to in clauses
(v), (viii), (ix), (x), (xi), and (xii) of this subparagraph (a) shall be deemed delivery to Buyer. (b) Buyers Deliveries. On the Closing Date, Buyer will deliver to Seller or, at
Sellers direction, to the Title Company, the following: (i) General Assignment and Assumption Agreement. The General Assignment and
Assumption Agreement. (ii) Authority Documents. An authorizing resolution and an incumbency
certificate, and such other documents as may be reasonably necessary to evidence the
authority and capacity of Buyer and the authority of the signatory for Buyer. (iii) Purchase Price. The balance of the Purchase Price payable at Closing. (iv) Closing Statement. A preliminary Closing Statement, mutually acceptable
to Buyer and Seller. (v) Local Law Documents. To the extent required to be filed or signed by
Buyer, (1) State of Illinois Real Estate Transfer Declaration Form PTAX-203; (2) State of
Illinois Real Estate Transfer Declaration Supplemental Form A PTAX-203-A; (3) Cook County
Real Estate Transfer Declaration; and (4) City of Chicago Department of Revenue Real
Property Transfer Tax Declaration Form 7551. (vi) Other Documents. Any other documents which Buyer is obligated to deliver
to Seller pursuant to this Agreement or that may be requested by the Title Company in order
to issue the Title Policy. 14. Default. (a) Buyer Default. If Buyer defaults under this Agreement at or prior to the Closing
Date by failing to complete Closing in accordance with the terms of this Agreement or in any other
respect, then the Deposit shall immediately be paid to Seller by the Escrowee and the Deposit shall
be retained by Seller as liquidated damages and not as a penalty. The retention of the Deposit
shall be Sellers sole remedy in the event of Buyers default at or prior to the Closing Date, and
Seller in such event hereby waives any right, unless Closing is completed, to recover the balance
of the Purchase Price. Seller and Buyer agree that the actual damages to Seller in the event of
such breach are impractical to ascertain as of the date of this Agreement and the amount of the
Deposit is a reasonable estimate thereof. Upon payment of the Deposit to Seller as liquidated
damages, this Agreement shall (except as herein otherwise expressly provided) be and become null
and void and all copies will be surrendered to Seller. Nothing contained in this Paragraph 14(a)
shall be deemed to limit Sellers rights against Buyer by reason of the indemnity obligations of Buyer to Seller set forth in this Agreement which shall survive
the termination of this Agreement. 19




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(b) Seller Default. The term Permitted Event shall mean the occurrence of the
following on the Closing Date: Buyer shall be ready, willing and able to complete Closing in
accordance with this Agreement; Buyer shall have appeared at the place designated for Closing and
shall have tendered the Purchase Price to Seller or the Title Company, as Closing escrow agent; and
Seller, notwithstanding the foregoing, shall have defaulted in its obligation to complete Closing
in accordance with this Agreement or is otherwise in material default under this Agreement. Except
upon the occurrence of the Permitted Event, Buyer agrees that Buyer shall not (and hereby waives
any right to) ever file or assert any lis pendens against any parcel of the Premises nor commence
or maintain any action against Seller for specific performance under this Agreement nor for a
declaratory judgment as to Buyers rights under this Agreement. If the sale of the Premises is not
consummated because of a default under this Agreement on the part of Seller and Buyer is ready,
willing and able to close, Buyer, as its sole and exclusive remedy, may either (i) terminate this
Agreement in its entirety by delivery of notice of termination to Seller, whereupon the Deposit
shall be immediately returned to Buyer or (ii) continue this Agreement pending Buyers action for
specific performance hereunder provided appropriate proceedings are promptly commenced by Buyer and
prosecuted with diligence and continuity. 15. Notices; Computation of Periods. (a) Notices. All notices given by either party to the other shall be in writing and
shall be sent either (i) by United States Postal Service registered or certified mail, postage
prepaid, return receipt requested, or (ii) by prepaid nationally recognized overnight courier
service for next business day delivery, addressed to the other party at the following addresses
listed below or (iii) via telecopier or facsimile transmission to the facsimile numbers listed
below; provided, however, that if such communication is given via telecopier or facsimile
transmission, an original counterpart of such communication shall concurrently be sent in the
manner specified in subparagraph (ii) above. All notices given by Seller under this Agreement
(including any Exhibit hereto) shall be binding upon Seller only if provided in a writing executed
by both partners of Seller, provided that with respect any notice given by Seller pursuant to
Paragraph 23(g) hereof, any such notice shall be sufficiently given if provided in a writing
executed solely by the non-managing general partner of Seller. Addresses and facsimile numbers of
the parties are as follows: As to Seller: Madison Two Associates
c/o Hines Chicago Associates Limited
Three First National Plaza
70 West Madison, Suite 440
Chicago, Illinois 60602
Attn: C. Kevin Shannahan
Telefax: (312) 346-4180 20




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With a copy to: Hines Interests Limited Partnership
c/o Hines Chicago Associates Limited
Three First National Plaza
70 West Madison, Suite 440
Chicago, Illinois 60602
Attn: Thomas Danilek
Telefax: (312) 419-1932 With a copy to: Dewey Ballantine LLP
1301 Avenue of the Americas
New York, New York 10019
Attn: Stephen MacDonald, Esq.
Telefax: (212) 259-6333 and As to Buyer: Hines 70 West Madison LP
2800 Post Oak Boulevard, Suite 5000
Houston, Texas 77056-6118
Attn: Edmund A. Donaldson
Telefax: (713) 966-2075
Attn: Charles Hazen
Telefax: (713) 966-7851 With a copy to: Baker Botts L.L.P.
One Shell Plaza
910 Louisiana Street
Houston, Texas 77002
Attn: Marley Lott, Esq.
Telefax: (713) 229-7766 21




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or to such other address as the respective parties may hereafter designate by notice in writing in
the manner specified above. Any notice may be given on behalf of any party by its counsel.
Notices given in the manner aforesaid shall be deemed sufficiently served or given for all purposes
under this Agreement upon the earliest of (i) actual receipt (including receipt of a facsimile
copy, but only if an original of such facsimile is properly sent by overnight courier as provided
above) or refusal by the addressee, or (ii) three days following the date such notices, demands or
requests shall be deposited in any Post Office, or branch Post Office regularly maintained by the
United States Government, or (iii) one business day after delivered to the overnight courier
service, as the case may be. (b) Computation of Periods. If the final day of any period of time in any provision
of this Agreement falls upon a Saturday, Sunday or a holiday observed by federally insured banks in
the State of New York and/or the State in which the Premises is located or by the United States
Postal Service, then, the time of such period shall be extended to the next day which is not a
Saturday, Sunday or holiday. Unless otherwise specified, in computing any period of time described
in this Agreement, the day of the act or event after which the designated period of time begins to
run is not to be included and the last day of the period is so computed is to be included, unless
such last day is a Saturday, Sunday or holiday in which event the period shall run until the end of
the next day which is neither a Saturday, Sunday or holiday. 16. Fire or Other Casualty. (a) Casualty Insurance. Seller agrees to maintain in effect until the Closing Date
the fire and extended coverage insurance policies now in effect on the Premises (or substitute
policies in equal or greater amounts). (b) Casualty Damage. If any portion of the Premises shall be damaged or destroyed by
fire or other casualty between the date of this Agreement and the Closing Date, Seller shall give
written notice thereof to Buyer. Subject to the right to terminate this Agreement in accordance
with subparagraph (c) below, the obligation of Buyer to complete Closing under this Agreement shall
in no way be voided or impaired by reason thereof, and Buyer shall be required to accept the
Premises and the Personal Property in their then damaged condition without abatement of the
Purchase Price. In such case, the proceeds of all fire and extended coverage insurance policies
attributable to the Premises or the Personal Property received by Seller prior to the Closing Date
and not used by Seller for the protection or emergency repairs to the Premises and the Personal
Property (and Buyer hereby authorizes Seller to use the proceeds for such purposes) shall be
disbursed by Seller to Buyer at Closing, and all unpaid claims under such insurance policies
attributable to the Premises and Personal Property shall be assigned by Seller to Buyer on the date
of Closing. There shall be no reduction in the Purchase Price by reason of such unpaid claim. 22




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(c) Right of Termination. Notwithstanding any of the preceding provisions of this
Paragraph 16, if substantial damage shall occur to the buildings on the Premises by fire or other
insured casualty prior to the Closing Date, Buyer shall have the right to terminate this Agreement
by written notice to the Seller. If Buyer desires to terminate this Agreement pursuant to this
subparagraph (c) Buyer must give a written notice of termination to Seller within five (5) business
days after Sellers notice to Buyer of the occurrence of the casualty. Upon such termination of
this Agreement, neither party shall have any further rights or obligations hereunder (except the
indemnity obligations of Buyer to Seller set forth in this Agreement and Sellers rights as set
forth in Paragraph 23(g) which shall survive the termination of this Agreement and except for any
default by Buyer which may have occurred prior thereto). Substantial damage shall mean such damage
that would cost, in the judgment of an independent third-party real estate professional retained by
Seller, at least $5,000,000 to repair or result in abatement or cancellation of more than five
percent (5%) of the total rent under the Existing Leases. If Buyer does not timely give notice of
a termination, Buyers obligations hereunder shall remain in effect notwithstanding such casualty
and Buyer shall remain obligated to consummate the purchase in accordance with the terms of this
Agreement, including, without limitation, subparagraph (b) above. 17. Condemnation. (a) Immaterial Taking. If any part of the Premises shall be taken by exercise of the
power of eminent domain after the date of this Agreement that does not materially interfere with
the use of the Premises for the purposes for which it is currently used, this Agreement shall
continue in full force and effect and there shall be no abatement of the Purchase Price. Seller
shall be relieved, however, of its duty to convey title to the portion of the parcel so taken, but
Seller shall, on the Closing Date, assign to Buyer all rights and claims to any awards arising
therefrom as well as any money theretofore received by Seller on account thereof, net of any
expenses actually incurred by Seller, including attorneys fees of collecting the same. Seller
shall promptly furnish Buyer with a copy of the declaration of taking property after Sellers
receipt thereof. (b) Material Taking. If any taking of a portion of the Premises materially interferes
with the use of the Premises for the purposes for which it is currently used, Buyer may terminate
this Agreement, by written notice to Seller within five (5) days of Sellers notice to Buyer of
such a taking. Upon the giving of such termination notice, the Deposit shall be returned to Buyer
and this Agreement shall become null and void, except for the indemnity obligations of Buyer to
Seller set forth in this Agreement and Sellers rights as set forth in Paragraph 23(g) which will
survive termination of this Agreement. If Buyer does not timely give notice of termination,
Buyers obligations hereunder shall remain in effect notwithstanding such condemnation and Buyer
shall remain obligated to consummate the purchase in accordance with the terms of this Agreement. 23




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18. Assignability. (a) Assignments Prohibited. Buyer may not assign or suffer an assignment of this
Agreement and/or its rights under this Agreement, without the prior written consent of Seller,
which consent Seller may deny in its sole and absolute discretion. Notwithstanding the foregoing,
Sellers consent shall not be required in respect of an assignment of the Buyers interest under
this Agreement, in its entirety only, to an entity wholly-owned and controlled by Buyer or its
other wholly-owned subsidiaries. No such assignment shall be effective, however, unless and until
Buyer shall have furnished to Seller both an executed copy of the assignment plus a written
assumption agreement, in form satisfactory to Seller, by the assignee to assume, perform and be
responsible, jointly and severally with the Buyer named herein, for the performance of all of the
obligations of Buyer under this Agreement and to pay all additional transfer or documentary taxes
imposed as a result of such assignment, and which contains a representation by the assignee that
all of the representations and warranties made by Buyer in this Agreement are true and correct with
respect to the assignee as of the date of the assumption agreement. In no event shall Buyer be
relieved of any liability hereunder by reason of an assignment of its rights hereunder and the
express terms of any assignment by Buyer shall reaffirm Buyers obligations hereunder. (b) Prohibited Assignments. Notwithstanding the foregoing provisions of subparagraph
(a), Buyer shall have no right, under any circumstances, to assign this Agreement (i) to any entity
owned or controlled by an employee benefit plan if Sellers sale of the Premises to such entity
would, in the reasonable judgment of Seller or Sellers counsel, either create, otherwise cause, or
raise a material question as to whether it would create or otherwise cause, a prohibited
transaction under the Employee Retirement Income Security Act of 1974, as amended (ERISA) or
(ii) to any person, or to any entity which has as a direct or indirect owner or partial owner a
person with a criminal record, currently under a criminal indictment or who is not of good moral
character. (c) Successors and Assigns. Subject to the foregoing limitations, this Agreement
shall extend to, and shall bind, the respective heirs, executors, personal representatives,
successors and assigns of Seller and Buyer. 19. Inspections/Inspection Period. (a) Right to Inspect. Buyer, and Buyers agents and representatives, shall have the
right, from time to time, prior to the Closing Date or earlier termination of this Agreement,
during normal business hours, to enter upon the Premises for the purpose of conducting visual
inspections of the Premises, testing of machinery and equipment, taking of measurements, making of
surveys and generally for the reasonable ascertainment of matters relating to the Premises;
provided, however, that Buyer shall (i) give Seller reasonable prior written notice of the time and
place of such entry, in order to permit a representative of Seller to accompany Buyer; (ii) use
best efforts not to interfere with the operations of the Premises or any tenant thereof; (iii)
restore any damage to the Premises or any adjacent property caused by such actions; (iv) indemnify,
defend and 24




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save Seller and, as the case may be, its partners, trustees, shareholders, directors,
officers, employees and agents harmless of and from any and all claims and/or liabilities which
Seller and its partners, trustees, shareholders, directors, officers, employees and agents may
suffer or be subject by reason of or in any manner relating to such entry and such activities,
including, without limitation, any claims by tenants and/or invitees of the Premises; (v) not enter
into any tenants leased premises or communicate with any tenant unless accompanied by Seller or
Sellers agent in each instance; (vi) prior to entry onto the Premises, furnish Seller with a
certificate of general liability and property damage insurance maintained by Buyer with single
occurrence coverage of at least $1,000,000 (and aggregate coverage of $2,000,000) and naming Seller
and its property manager as additional insureds; and (vii) not conduct any environmental
investigations or testing other than a standard Phase I investigation, without prior execution
of, and compliance with Sellers standard form of Environmental Access Agreement. All inspection
rights under this subparagraph (a) shall be subject to the rights of tenants under the Existing
Leases. To facilitate Buyers evaluation, Seller shall give Buyer, and its counsel, accountants,
and representatives reasonable access to the books, records, documents and information (other than
internal memoranda, appraisals, environmental and engineering reports, and documents and/or
information covered by the attorney-client privilege) in the possession of Seller or Sellers
property manager with respect to ownership, construction and operation of the Premises. (b) No Liens Permitted. Nothing contained in this Agreement shall be deemed or
construed in any way as constituting the consent or request of Seller, express or implied by
inference or otherwise, to any party for the performance of any labor or the furnishing of any
materials to the Premises or any part thereof, nor as giving Buyer any right, power or authority to
contract for or permit the rendering of any services or the furnishing of any materials that would
give rise to the filing of any liens against the Premises or any part thereof. Buyer agrees to
promptly cause the removal of, and indemnify, defend and hold Seller harmless with respect to, any
mechanics or similar lien filed against the Premises or any part thereof by any party performing
any labor or services at the Premises or supplying any materials to the Premises at Buyers
request. (c) Buyers Right of Termination. If Buyer determines that it is not satisfied with
the Premises and all matters relating thereto as a result of Buyers inspection, Buyer shall have
the right to terminate this Agreement, for any reason whatsoever, by giving Seller written notice
(Termination Notice) at any time prior to 5:00 p.m. Eastern Standard Time on February 28, 2005.
The period from January 3, 2005 to 5:00 p.m. Eastern Standard Time on February 28, 2005 is
hereinafter referred to as the Inspection Period. Upon giving the Termination Notice, this
Agreement shall immediately terminate (except for the indemnity obligations of Buyer to Seller
under this Agreement and Sellers rights as set forth in Paragraph 23(g) which shall survive
termination of this Agreement) and the Deposit shall be returned to Buyer, as Buyers sole and
exclusive remedy. Except as may otherwise be expressly provided in this Agreement, Buyer shall be
deemed to have consented to every fact, item and condition relating to the Property if a
Termination Notice is not delivered by Buyer prior to the expiration of the Inspection Period.
Buyers failure to deliver the Termination Notice prior to the expiration of the Inspection Period
shall be deemed a waiver of Buyers right 25




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to terminate this Agreement under this Paragraph 19 or by reason of the physical condition of
the Premises or any other matter whatsoever relating to the Premises and the Deposit shall become
non-refundable. (d) Survival. The provisions of this Paragraph 19 shall survive termination of this
Agreement and/or the Closing and delivery of the Deed. 20. Brokers. Seller and Buyer each represents and warrants to the other that it has dealt with no broker or
other intermediary in connection with this transaction. If any broker or other intermediary claims
to be entitled to a fee or commission by reason of having dealt with Seller or Buyer in connection
with this transaction, or having introduced the Premises to Buyer for sale, or having been the
inducing cause to the sale, the party with whom such broker claims to have dealt shall indemnify,
defend and save harmless the other party of and from any claim for commission or compensation by
such broker or other intermediary. This Paragraph 20 shall survive the termination of this
Agreement and/or the Closing and delivery of the Deed. 21. CONDITION OF PREMISES. (a) NO WARRANTIES. THE ENTIRE AGREEMENT BETWEEN THE SELLER AND BUYER WITH RESPECT TO
THE PREMISES AND THE PERSONAL PROPERTY AND THE SALE THEREOF IS EXPRESSLY SET FORTH IN THIS
AGREEMENT AND THE DEPOSIT ESCROW AGREEMENT. THE PARTIES ARE NOT BOUND BY ANY AGREEMENTS,
UNDERSTANDINGS, PROVISIONS, CONDITIONS, REPRESENTATIONS OR WARRANTIES (WHETHER WRITTEN OR ORAL AND
WHETHER MADE BY SELLER OR ANY AGENT, EMPLOYEE OR PRINCIPAL OF SELLER OR ANY OTHER PARTY) OTHER THAN
AS ARE EXPRESSLY SET FORTH AND STIPULATED IN THIS AGREEMENT. WITHOUT IN ANY MANNER LIMITING THE
GENERALITY OF THE FOREGOING, BUYER ACKNOWLEDGES THAT IT AND ITS REPRESENTATIVES HAVE FULLY
INSPECTED THE PREMISES, THE PERSONAL PROPERTY, THE EXISTING LEASES AND EXISTING AGREEMENTS, OR WILL
BE PROVIDED WITH AN ADEQUATE OPPORTUNITY TO DO SO, ARE OR WILL BE FULLY FAMILIAR WITH THE FINANCIAL
AND PHYSICAL (INCLUDING, WITHOUT LIMITATION, ENVIRONMENTAL) CONDITION THEREOF, AND THAT THE
PREMISES, THE PERSONAL PROPERTY, THE EXISTING LEASES AND EXISTING AGREEMENTS HAVE BEEN PURCHASED BY
BUYER IN AN AS IS AND WHERE IS CONDITION AND WITH ALL EXISTING DEFECTS (PATENT AND LATENT) AS A
RESULT OF SUCH INSPECTIONS AND INVESTIGATIONS AND NOT IN RELIANCE ON ANY AGREEMENT, UNDERSTANDING,
CONDITION, WARRANTY (INCLUDING, WITHOUT LIMITATION, WARRANTIES OF HABITABILITY, MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE) OR REPRESENTATION MADE BY SELLER OR ANY AGENT, EMPLOYEE OR
PRINCIPAL OF SELLER OR ANY OTHER PARTY (EXCEPT AS OTHERWISE 26




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EXPRESSLY ELSEWHERE PROVIDED IN THIS AGREEMENT) AS TO THE FINANCIAL OR PHYSICAL (INCLUDING,
WITHOUT LIMITATION, ENVIRONMENTAL) CONDITION OF THE PREMISES OR THE PERSONAL PROPERTY OR THE AREAS
SURROUNDING THE PREMISES, OR AS TO ANY OTHER MATTER WHATSOEVER, INCLUDING, WITHOUT LIMITATION, AS
TO ANY PERMITTED USE THEREOF, THE ZONING CLASSIFICATION THEREOF OR COMPLIANCE THEREOF WITH FEDERAL,
STATE OR LOCAL LAWS, AS TO THE INCOME OR EXPENSE IN CONNECTION THEREWITH, OR AS TO ANY OTHER MATTER
IN CONNECTION THEREWITH, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT. BUYER
ACKNOWLEDGES THAT, EXCEPT AS OTHERWISE EXPRESSLY ELSEWHERE PROVIDED IN THIS AGREEMENT, NEITHER
SELLER, OR ANY AGENT OR EMPLOYEE OF SELLER NOR ANY OTHER PARTY ACTING ON BEHALF OF SELLER HAS MADE
OR SHALL BE DEEMED TO HAVE MADE ANY SUCH AGREEMENT, CONDITION, REPRESENTATION OR WARRANTY EITHER
EXPRESSED OR IMPLIED. THIS PARAGRAPH SHALL SURVIVE CLOSING AND DELIVERY OF THE DEED, AND SHALL BE
DEEMED INCORPORATED BY REFERENCE AND MADE A PART OF ALL DOCUMENTS DELIVERED BY SELLER TO BUYER IN
CONNECTION WITH THE SALE OF THE PREMISES AND THE PERSONAL PROPERTY. (b) CHANGE OF CONDITIONS. SUBJECT TO SELLERS OBLIGATIONS UNDER SUBPARAGRAPH (d)
BELOW, BUYER SHALL ACCEPT THE PREMISES AND THE PERSONAL PROPERTY AT THE TIME OF CLOSING IN THE SAME
CONDITION AS THE SAME ARE AS OF THE DATE OF THIS AGREEMENT, AS SUCH CONDITION SHALL HAVE CHANGED BY
REASON OF WEAR AND TEAR AND, SUBJECT TO PARAGRAPH 16 HEREOF, DAMAGE BY FIRE OR OTHER CASUALTY.
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, BUYER SPECIFICALLY ACKNOWLEDGES THAT THE FACT
THAT ANY PORTION OF THE PREMISES OR THE PERSONAL PROPERTY OR ANY EQUIPMENT OR MACHINERY THEREIN OR
ANY PART THEREOF MAY NOT BE IN WORKING ORDER OR CONDITION AT THE CLOSING DATE BY REASON OF WEAR AND
TEAR OR DAMAGE BY FIRE OR OTHER CASUALTY, OR BY REASON OF ITS PRESENT CONDITION, SHALL NOT RELIEVE
BUYER OF ITS OBLIGATION TO COMPLETE CLOSING UNDER THIS AGREEMENT AND PAY THE FULL PURCHASE PRICE.
EXCEPT AS PROVIDED IN SUBPARAGRAPH (d) BELOW, SELLER HAS NO OBLIGATION TO MAKE ANY REPAIRS OR
REPLACEMENTS REQUIRED BY REASON OF WEAR AND TEAR OR FIRE OR OTHER CASUALTY, BUT MAY, AT ITS OPTION
AND ITS COST, MAKE ANY SUCH REPAIRS AND REPLACEMENTS PRIOR TO THE CLOSING DATE. (c) Condition of Delivery. Seller has no obligation to deliver the Premises in a
broom clean condition, and at Closing Seller may leave in the Premises all items of personal
property and equipment, partitions and debris as are now presently therein. 27




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(d) Seller Repairs. Between the date of the execution of this Agreement and the
Closing Date, Seller shall perform all customary ordinary repairs to the Premises and the Personal
Property as Seller has customarily previously performed to maintain them in substantially the same
condition as they are as of the date of this Agreement, as said condition shall be changed by wear
and tear, damage by fire or other casualty, or vandalism. Notwithstanding the foregoing, Seller
shall have no obligation to make any structural or extraordinary repairs or capital improvements
between the date of this Agreement and Closing. (e) RELEASE. WITHOUT LIMITING THE PROVISIONS OF SUBPARAGRAPH (a) ABOVE AND
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, BUYER HEREBY RELEASES SELLER
AND (AS THE CASE MAY BE) SELLERS OFFICERS, DIRECTORS, SHAREHOLDERS, TRUSTEES, PARTNERS, EMPLOYEES,
MANAGERS AND AGENTS FROM ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTIONS, LOSSES, DAMAGES,
LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS FEES WHETHER THE SUIT IS INSTITUTED OR NOT)
WHETHER KNOWN OR UNKNOWN, LIQUIDATED OR CONTINGENT (HEREINAFTER COLLECTIVELY CALLED THE CLAIMS)
ARISING FROM OR RELATING TO (i) ANY DEFECTS (PATENT OR LATENT), ERRORS OR OMISSIONS IN THE DESIGN
OR CONSTRUCTION OF THE PREMISES WHETHER THE SAME ARE THE RESULT OF NEGLIGENCE OR OTHERWISE, OR (ii)
ANY OTHER CONDITIONS, INCLUDING ENVIRONMENTAL AND OTHER PHYSICAL CONDITIONS, AFFECTING THE PREMISES
WHETHER THE SAME ARE A RESULT OF NEGLIGENCE OR OTHERWISE. THE RELEASE SET FORTH IN THIS SECTION
SPECIFICALLY INCLUDES, WITHOUT LIMITATION, ANY CLAIMS UNDER ANY ENVIRONMENTAL LAWS OF THE UNITED
STATES, THE STATE IN WHICH THE PREMISES IS LOCATED OR ANY POLITICAL SUBDIVISION THEREOF OR UNDER
THE AMERICANS WITH DISABILITIES ACT OF 1990, AS ANY OF THOSE LAWS MAY BE AMENDED FROM TIME TO TIME
AND ANY REGULATIONS, ORDERS, RULES OF PROCEDURES OR GUIDELINES PROMULGATED IN CONNECTION WITH SUCH
LAWS, REGARDLESS OF WHETHER THEY ARE IN EXISTENCE ON THE DATE OF THIS AGREEMENT. BUYER
ACKNOWLEDGES THAT BUYER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF BUYERS SELECTION AND
BUYER IS GRANTING THIS RELEASE OF ITS OWN VOLITION AND AFTER CONSULTATION WITH BUYERS COUNSEL.
THE RELEASE SET FORTH HEREIN DOES NOT APPLY TO (i) THE REPRESENTATIONS OF SELLER EXPRESSLY SET
FORTH IN THIS AGREEMENT OR ANY INDEMNITY OR WARRANTY EXPRESSLY MADE BY SELLER IN ANY DOCUMENT
DELIVERED BY SELLER AT CLOSING OR (ii) ANY CLAIM IN THE NATURE OF CONTRIBUTION MADE AS A RESULT OF
CLAIMS MADE AGAINST BUYER BY ANY THIRD PARTY FOR ANY PERIOD DURING SELLERS OWNERSHIP OF THE
PROPERTY. SELLER AGREES TO TRANSFER AND ASSIGN TO BUYER IN THE DEED TO BE DELIVERED AT CLOSING AND
UPON REASONABLE REQUEST OF BUYER TO TAKE SUCH ADDITIONAL ACTION AFTER CLOSING AS SHALL BE
REASONABLY REQUIRED TO TRANSFER AND ASSIGN TO 28




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BUYER ALL RIGHTS THAT SELLER MAY HAVE AGAINST ANY THIRD PARTY CONCERNING THE PROPERTY OR
PREVIOUS OPERATIONS OR ACTIVITIES THEREON OR CIRCUMSTANCES RELATED THERETO, EXCEPT FOR THOSE
RIGHTS, IF ANY, THAT HAVE BEEN EXPRESSLY RESERVED HEREIN. (f) Seller Reports. Buyer acknowledges that Seller makes no warranties or
representations regarding the adequacy, accuracy or completeness of Sellers environmental and/or
engineering reports or other materials relating to the Premises made available to Buyer
(collectively, the Reports) or other documents relating to the Premises, and Buyer shall have no
claim against Seller based upon the Reports or such other documents relating to the Premises or
Sellers failure to deliver any documents relating to the Premises to Buyer. Buyer further
acknowledges that Buyer has had full opportunity to perform such physical inspections,
environmental and engineering investigations and appraisals as Buyer deems appropriate prior to
Closing, and Buyer obtained or shall obtain its own physical inspections, environmental and
engineering reports and appraisals of the Premises. (g) Effect of Disclaimers. Buyer acknowledges and agrees that the Purchase Price has
been negotiated to take into account that the Premises and Personal Property are being sold subject
to the provisions of this Paragraph 21 and that Seller would have charged a higher purchase price
if the provisions in this Paragraph 21 were not agreed upon by Buyer. (h) Survival. The provisions of this Paragraph 21 shall survive Closing and delivery
of the Deed. 22. Survival of Provisions. (a) Acceptance by Buyer of the Deed at Closing shall constitute an acknowledgment by Buyer of
full performance by Seller of all of Sellers obligations under this Agreement, except for the
obligations of Seller which are expressly provided in this Agreement to survive Closing. (b) Any of Buyers obligations under this Agreement that are expressly provided in this
Agreement to survive Closing or that shall possibly imply performance or observance after the
Closing Date shall survive Closing and delivery of the Deed, notwithstanding any presumption to the
contrary. (c) (i) Notwithstanding any provision to the contrary set forth in this Agreement, the
representations of Seller expressly set forth in Paragraph 9 of this Agreement shall survive
Closing under this Agreement for a period of nine (9) months (the Survival Period); provided,
however, that the representations of Seller set forth in this Agreement with respect to Existing
Leases for which a Tenant Estoppel Certificate is delivered, to the extent such Tenant Estoppel
Certificate specifically covers such representation (other than a representation of no default by
the tenant), shall not survive Closing. 29




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(ii) If Buyer actually determines that any of the representations of Seller are breached on or
prior to the Closing Date, Buyers sole right and remedy shall be to terminate this Agreement by
giving to Seller written notice of such termination on or prior to the Closing Date. If Buyer
fails to give such written termination notice to Seller on or prior to the Closing Date, Buyer
shall be deemed to have waived any right or remedy (including, without limitation, any right under
this Agreement to terminate this Agreement) by reason of such breach. (iii) Subject to Paragraph 9(c) hereof, Seller shall have no liability to Buyer by reason of a
breach or default of any of Sellers post-closing obligations hereunder, including prorations,
indemnities, and the accuracy of Sellers representations and warranties made herein, unless Buyer
shall have given to Seller written notice (Warranty Notice) of such breach or default within the
Survival Period, and shall have given to Seller an opportunity to cure any such breach or default
within a reasonable period of time after Buyers Warranty Notice. No claim for breach of any
representation or warranty of Seller under Paragraph 9(a) (except under Paragraph 9(a)(xv)) shall
be actionable or payable unless the valid claims for all such breaches collectively aggregate more
than $200,000, in which event the full amount of such claims shall be actionable. In no event
shall the aggregate liability of Seller to Buyer by reason of breach or default of Sellers
post-closing obligations hereunder, including prorations, indemnities, and the accuracy of Sellers
representations and warranties made herein, exceed $1,500,000. Notwithstanding the foregoing,
neither the Survival Period nor the limitation to $1,500,000 applies to the warranties, if any,
under the closing documents, the indemnity in Paragraph 22(c)(iv), or obligations that occurred
prior to Closing and that were not assumed by Buyer. In any event, Sellers liability shall be
limited to actual damages and shall not include consequential damages. (iv) Notwithstanding the foregoing, Seller shall indemnify, defend and hold harmless Buyer
from and against any and all actual liabilities, claims, and damages incurred, sustained, or
suffered as a result of a breach of the representation in Section 9(a)(xv) above or otherwise
relating to any transferee liability under the Bulk Sales Laws, and there shall be an unlimited
survival period and no minimum or maximum liability thresholds under this Section 22 relative
thereto. (d) Survival. The provisions of this Paragraph 22 shall survive Closing and delivery
of the Deed. 23. Miscellaneous. (a) Captions or Headings; Interpretation. The captions or headings of the Paragraphs
and subparagraphs of this Agreement are for convenience only, and shall not control or affect the
meaning or construction of any of the terms or provisions of this Agreement. Wherever in this
Agreement the singular number is used, the same shall include the plural and vice versa and the
masculine gender shall include the feminine gender and vice versa as the context shall require. 30




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(b) Amendments and Waivers. No change, alteration, amendment, modification or waiver
of any of the terms or provisions of this Agreement shall be valid, unless the same shall be in
writing and signed by Buyer and both partners of Seller. (c) Counterparts. This Agreement may be executed in multiple counterparts each of
which shall be deemed an original but together shall constitute one agreement. (d) Applicable Law. This Agreement shall be governed and construed according to the
laws of the State of Illinois. (e) Right to Waive Conditions or Contingency. Either party may waive any of the terms
and conditions of this Agreement made for its benefit provided such waiver is in writing and signed
by the party waiving such term or condition. (f) Partial Invalidity. If any term, covenant, condition or provision of this
Agreement or the application thereof to any person or circumstance shall be invalid or
unenforceable, at any time or to any extent, the remainder of this Agreement, or the application of
such term or provision to persons or circumstances other than those as to which it is held invalid
or unenforceable, shall not be affected thereby, unless such invalidity or unenforceability
materially frustrates the intent of the parties as set forth herein. Each term, covenant,
condition and provision of this Agreement shall be valid and enforced to the fullest extent
permitted by law. (g) Confidentiality. An affiliate of Buyer has entered into a Confidentiality
Agreement dated as of January 3, 2005 with Seller (the Confidentiality Agreement) and Buyer and
Seller hereby agree that, without replacing the Confidentiality Agreement, the provisions of the
Confidentiality Agreement shall be incorporated herein and made fully a part hereof and that the
fourth and fifth sentences of paragraph 2 of the Confidentiality Agreement shall survive the later
of the Closing or any termination hereof. Buyer and Seller expressly agree that the documents and
information provided to Buyer and the Representatives (as defined in the Confidentiality Agreement)
pursuant to the terms of this Agreement shall be deemed to be governed by the terms and provisions
of the Confidentiality Agreement and that Buyer and Seller agree to keep this Agreement and its
contents confidential (and Buyer further agrees to cause its Representatives to keep this Agreement
and its contents confidential) until such time as Closing occurs. Buyer agrees that after Closing
occurs, Buyer will limit the delivery of this Agreement to persons who are required to know or need
to know the contents hereof pursuant to any court or governmental order, tax regulations, financial
reporting requirements or other applicable laws or regulations, provided that any delivery of this
Agreement or any portion hereof or the disclosure of the contents hereof after Closing shall be
subject to the limitations set forth in the fourth and fifth sentences of paragraph 2 of the
Confidentiality Agreement. The provisions of this Paragraph 23(g) shall survive Closing and the
delivery of the Deed. 31




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24. Sophistication of the Parties. Each party hereto hereby acknowledges and agrees that it has consulted legal counsel in connection
with the negotiation of this Agreement and that it has bargaining power equal to that of the other
parties hereto in connection with the negotiation and execution of this Agreement. Accordingly,
the parties hereto agree the rule of contract construction to the effect that an agreement shall be
construed against the draftsman shall have no application in the construction or interpretation of
this Agreement. 25. Limited Liability. Prior to the Closing Date, the obligations of Seller under this Agreement or directly or
indirectly arising out of this Agreement shall be limited solely to Sellers interest in the
Premises and Personal Property, and neither Buyer nor any one else claiming by or through Buyer
shall have any claim against any other asset of Seller or any partner of Seller. 26. Enforcement. If either party hereto fails to perform any of its obligations under this Agreement or if a dispute
arises between the parties hereto concerning the meaning or interpretation of any provision of this
Agreement, then the defaulting party or the party not prevailing in such dispute shall pay any and
all costs and expenses incurred by the other party on account of such default and/or in enforcing
or establishing its rights hereunder, including, without limitation, court costs and reasonable
attorneys fees and disbursements. Any such attorneys fees and other expenses incurred by either
party in enforcing a judgment in its favor under this Agreement shall be recoverable separately
from and in addition to any other amount included in such judgment, and such attorneys fees
obligation is intended to be severable form the other provisions of this Agreement and to survive
and not be merged into any such judgment. 27. Waiver of Tender of Deed and Purchase Monies. The tender of an executed Deed by Seller and the tender by Buyer of the portion of the Purchase
Price payable at Closing are hereby mutually waived; but nothing herein contained shall be
construed as a waiver of Sellers obligation to deliver the Deed and/or of the concurrent
obligation of Buyer to pay the Purchase Price at Closing. [Remainder of page intentionally left blank.] 32




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IN WITNESS WHEREOF, the parties hereto, intending legally to be bound hereby, have executed
this Agreement as of the date first above written. SELLER:MADISON TWO ASSOCIATES,
a Texas general partnershipBy:
    
    Hines Chicago Associates Limited,
a Texas limited partnershipBy:
    
    Hines Chicago, Inc.,
a Texas corporationBy:
    
/s/
Kevin ShannahanName: Kevin Shannahan
Title: Executive Vice PresidentBUYER:HINES 70 WEST MADISON LP,
A Delaware limited partnershipBy:
    
    Hines 70 West Madison GP LLC,
A Delaware limited liability companyBy:
    
/s/
Charles N. HazenName:
Title:
    
    Charles N. Hazen
Manager