Document:

EX-10.2 PURCHASE AND SALE AGREEMENT

 

EXECUTION COPY

Exhibit 10.2

PURCHASE AND SALE AGREEMENT 

AND ESCROW INSTRUCTIONS

BY AND BETWEEN

THE SELLER PARTIES IDENTIFIED HEREIN 

(“Seller”)

and

MPT OPERATING PARTNERSHIP, L.P.,

a Delaware limited partnership

(“Buyer”)

Dated effective as of March 13, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	ARTICLE I PURCHASE AND SALE	 	 	1	 
	 
	 	Section 1.1.	 	Agreement of Purchase and Sale  	 	 	1	 
	 
	 	Section 1.2.	 	Property Defined  	 	 	3	 
	 
	 	Section 1.3.	 	Purchase Price	 	 	3	 
	 
	 	Section 1.4.	 	Payment of Purchase Price 	 	 	4	 
	 
	 	Section 1.5.	 	Opening of Escrow; Deposit 	 	 	4	 
	 
	 	Section 1.6.	 	Liquidated Damages 	 	 	5	 
	 
	 	Section 1.7.	 	Title Company   	 	 	9	 
	 
	 	Section 1.8.	 	Independent Contract Consideration  	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II TITLE AND SURVEY	 	 	9	 
	 
	 	Section 2.1.	 	Title Contingency Period 	 	 	9	 
	 
	 	Section 2.2.	 	Title Examination 	 	 	10	 
	 
	 	Section 2.3.	 	Permitted Exceptions 	 	 	11	 
	 
	 	Section 2.4.	 	Conveyance of Title 	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III REVIEW OF PROPERTY	 	 	12	 
	 
	 	Section 3.1.	 	Right of Inspection 	 	 	12	 
	 
	 	Section 3.2.	 	Environmental Reports 	 	 	14	 
	 
	 	Section 3.3.	 	No Financing Contingency 	 	 	14	 
	 
	 	Section 3.4.	 	Review of Estoppel Certificates 	 	 	14	 
	 
	 	Section 3.5.	 	Due Diligence; Right of Termination 	 	 	16	 
	 
	 	Section 3.6.	 	Rights Upon Termination  	 	 	17	 
	 
	 	Section 3.7.	 	Shiloh Facility and HS Properties 	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV CLOSING	 	 	18	 
	 
	 	Section 4.1.	 	Time and Place  	 	 	18	 
	 
	 	Section 4.2.	 	Seller’s Obligations at Closing 	 	 	19	 
	 
	 	Section 4.3.	 	Buyer’s Obligations at Closing 	 	 	21	 
	 
	 	Section 4. 4.	 	Title Company’s Obligations at Closing 	 	 	22	 
	 
	 	Section 4.5.	 	Credits and Prorations 	 	 	22	 
	 
	 	Section 4.6.	 	Transaction Taxes and Closing Costs 	 	 	24	 
	 
	 	Section 4.7.	 	Conditions Precedent to Obligation of Buyer  	 	 	25	 
	 
	 	Section 4.8.	 	Conditions Precedent to Obligation of Seller 	 	 	27	 
	 
	 	Section 4.9.	 	Pre-Emptive Rights 	 	 	28	 
	 
	 	Section 4.10.	 	Termination of Agreement With Respect to Certain Properties	 	 	28	 
	 
	 	Section 4.11.	 	UCC Financing Statements 	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V REPRESENTATIONS, WARRANTIES AND COVENANTS	 	 	29	 
	 
	 	Section 5.1.	 	Representations and Warranties of Seller 	 	 	29	 
	 
	 	Section 5.2.	 	Survival of Seller’s Representations and Warranties 	 	 	32	 
	 
	 	Section 5.3.	 	Representations and Warranties of Buyer 	 	 	33	 
	 
	 	Section 5.4.	 	Survival of Buyer’s Representations and Warranties	 	 	35	 

i

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	Section 5.5.	 	Covenants of Seller 	 	 	35	 
	 
	 	Section 5.6.	 	Covenants of Buyer 	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI DEFAULT	 	 	37	 
	 
	 	Section 6.1.	 	Default by Buyer 	 	 	37	 
	 
	 	Section 6.2.	 	Default by Seller 	 	 	37	 
	 
	 	Section 6.3.	 	Recoverable Damages 	 	 	39	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII RISK OF LOSS	 	 	39	 
	 
	 	Section 7.1.	 	Risk of Loss 	 	 	39	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII COMMISSIONS	 	 	39	 
	 
	 	Section 8.1.	 	Brokerage Commissions 	 	 	39	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IX DISCLAIMERS AND WAIVERS	 	 	39	 
	 
	 	Section 9.1.	 	AS IS SALE; DISCLAIMERS 	 	 	39	 
	 
	 	Section 9.2.	 	Survival of Disclaimers 	 	 	41	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE X MISCELLANEOUS	 	 	41	 
	 
	 	Section 10.1.	 	Confidentiality 	 	 	41	 
	 
	 	Section 10.2.	 	Public Disclosure 	 	 	42	 
	 
	 	Section 10.3.	 	Assignment 	 	 	42	 
	 
	 	Section 10.4.	 	Notices 	 	 	42	 
	 
	 	Section 10.5.	 	Modifications 	 	 	43	 
	 
	 	Section 10.6.	 	Entire Agreement 	 	 	43	 
	 
	 	Section 10.7.	 	Further Assurances 	 	 	44	 
	 
	 	Section 10.8.	 	Counterparts 	 	 	44	 
	 
	 	Section 10.9.	 	Electronically Transmitted Signatures 	 	 	44	 
	 
	 	Section 10.10.	 	Severability 	 	 	44	 
	 
	 	Section 10.11.	 	Applicable Law; Venue 	 	 	44	 
	 
	 	Section 10.12.	 	No Third-Party Beneficiary 	 	 	45	 
	 
	 	Section 10.13.	 	Captions 	 	 	45	 
	 
	 	Section 10.14.	 	Construction 	 	 	45	 
	 
	 	Section 10.15.	 	Recordation 	 	 	45	 
	 
	 	Section 10.16.	 	Attorneys’ Fees 	 	 	45	 
	 
	 	Section 10.17.	 	Time of the Essence 	 	 	45	 
	 
	 	Section 10.18.	 	Joint and Several Liability 	 	 	45	 
	 
	 	Section 10.19.	 	Changes to Property Entitlements 	 	 	45	 
	 
	 	Section 10.20.	 	Dates 	 	 	46	 
	 
	 	Section 10.21.	 	Waiver of Jury Trial	 	 	46	 
	 
	 	Section 10.22.	 	No Waiver 	 	 	46	 
	 
	 	Section 10.23.	 	Legal Descriptions 	 	 	46	 
	 
	 	Section 10.24.	 	Matters Related to Specific States 	 	 	46	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XI MEMBERSHIP INTEREST	 	 	48	 
	 
	 	Section 11.1.	 	Additional Defined Terms 	 	 	48	 
	 
	 	Section 11.2.	 	Purchase and Sale of the Membership Interest	 	 	49	 
	 
	 	Section 11.3.	 	Additional Representations and Warranties of HCP 	 	 	49	 
	 
	 	Section 11.4.	 	Additional Representations of Buyer 	 	 	50	 
	 
	 	Section 11.5.	 	Additional Provisions Related to the Membership Interest	 	 	50	 

ii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XII PARTNERSHIP INTEREST	 	 	51	 
	 
	 	Section 12.1.	 	Additional Defined Terms 	 	 	51	 
	 
	 	Section 12.2.	 	Purchase and Sale of the Partnership Interests	 	 	52	 
	 
	 	Section 12.3.	 	Additional Representations and Warranties of HCP	 	 	53	 
	 
	 	Section 12.4.	 	Additional Representations of Buyer  	 	 	54	 
	 
	 	Section 12.5.	 	Additional Provisions Related to the Partnership Interests	 	 	54	 

EXHIBITS

	 	 	 	 	 
	A-l
	 	—	 	FEE PROPERTY DESCRIPTIONS AND ADDRESSES
	A-2
	 	—	 	GROUND LEASE PROPERTY DESCRIPTIONS AND ADDRESSES
	A-3
	 	—	 	DESCRIPTION OF GROUND LEASES
	B
	 	—	 	LIST OF EXCLUDED PERSONAL PROPERTY
	C
	 	—	 	ESCROW GENERAL PROVISIONS
	D
	 	—	 	LIST OF PROPERTY DOCUMENTS
	E
	 	—	 	ENVIRONMENTAL REPORTS
	F-l
	 	—	 	FORM OF TENANT ESTOPPEL
	F-2
	 	—	 	FORM OF LANDLORD/SELLER ESTOPPEL
	F-3
	 	—	 	FORM OF LESSOR ESTOPPEL
	F-4
	 	—	 	FORM OF SELLER GROUND LEASE ESTOPPEL
	G-l
	 	—	 	FORM OF DEED
	G-2
	 	—	 	FORM OF ASSIGNMENT AND ASSUMPTION OF GROUND LEASE
	H
	 	—	 	FORM OF BILL OF SALE
	I
	 	—	 	FORM OF ASSIGNMENT AND ASSUMPTION OF LEASES
	J
	 	—	 	FORM OF TENANT NOTICE
	K
	 	—	 	FORM OF ASSIGNMENT OF ANCILLARY DOCUMENTS
	L
	 	—	 	FORM OF FIRPTA CERTIFICATE
	M
	 	—	 	FORM OF ASSIGNMENT AND ASSUMPTION OF MEMBERSHIP INTEREST AGREEMENT
	N
	 	—	 	FORM OF RELEASE OF CLAIMS
	O
	 	—	 	FORM OF ASSIGNMENT AND ASSUMPTION OF PARTNERSHIP INTEREST AGREEMENT
	 
	 	 	 	 

SCHEDULES

	 	 	 	 	 
	1.1 (d)
	 	 	 	LIST OF LEASES
	1 .3
	 	 	 	ALLOCATED PURCHASE PRICE
	3.4(a)
	 	 	 	ESTOPPEL MATTERS
	5.1 (a)
	 	 	 	DBA NAMES
	5.1(f)
	 	 	 	LITIGATION
	5.l(g)
	 	 	 	GUARANTEES AND LETTERS OF CREDIT
	11.3(a)
	 	 	 	MEMBERSHIP INTERESTS OF HCPI/IDAHO FALLS, LLC
	12.3(a)
	 	 	 	PARTNERSHIP INTERESTS

iii

 

PURCHASE AND SALE AGREEMENT

AND ESCROW INSTRUCTIONS

     THIS PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS (this “Agreement”) is made
effective as of March 13, 2008 (the “Effective Date”), by and between HCP, INC. (formerly
known as Health Care Property Investors, Inc.), a Maryland corporation (“HCP”), FAEC
HOLDINGS (BC), LLC, a Delaware limited liability company (“FAEC”), HCPI TRUST, a Maryland
real estate trust (“HCPIT”), HCP DAS PETERSBURG VA, LP, a Delaware limited partnership
(“HCPDAS”), and TEXAS HCP HOLDING, L.P., a Delaware limited partnership (“THH”, and
together with HCP, HCPIT, HCPDAS and FAEC collectively, “Seller”), and MPT OPERATING
PARTNERSHIP, L.P., a Delaware limited partnership (“Buyer”).

ARTICLE I

PURCHASE AND SALE

     Section 1.1. Agreement of Purchase and Sale. Subject to the terms and conditions
hereinafter set forth, Seller agrees to sell and convey or cause to be sold and conveyed to Buyer,
and Buyer agrees to purchase from Seller, all of Seller’s right, title and interest in and to the
following:

     (a) (i) the fee interest in and to those certain tracts or parcels of land situated in
the States of Connecticut, Massachusetts, Louisiana, Missouri, Utah, Rhode Island, Arizona,
South Carolina, Texas, Arkansas, Kansas, Virginia, Florida and Idaho (subject, in the case of
the Idaho Property (as such term is defined in Section 11.1 hereof), the Arkansas
Property and the Kansas Property (as such terms are defined in Section 12.1 hereof),
to the provisions of Article XI and Article XII hereof, as applicable) and
more particularly described on Exhibit A-l attached hereto and made a part hereof,
(ii) the sub-subleasehold interest in and to that certain tract or parcel of land situated in
the State of West Virginia and more particularly described on Exhibit A-2 attached
hereto and made a part hereof pursuant to that certain Rehab Sublease described
on Exhibit A-3 attached hereto, and (iii) the leasehold interest in and to that
certain tract or parcel of land situated in the State of Connecticut and more particularly
described on Exhibit A-2 attached hereto and made a part hereof pursuant to that
certain lease described on Exhibit A-3 attached hereto (the properties described on
Exhibit A-2 being herein referred to collectively as the “Ground Lease
Properties”; and the leases described on Exhibit A-3 being referred
to collectively as the “Ground Leases”), in each case together with all easements,
rights and appurtenances pertaining to such property, including any water rights and right,
title and interest of Seller in and to adjacent streets, alleys, and rights-of-way (the
property described in clause (a) of this Section 1.1 being herein referred to as the
“Land”). The addresses for the parcels of Land are also set forth on Exhibit
A-l and Exhibit A-2;

     (b) the commercial buildings located on the Land, and any and all other
buildings, structures, fixtures and other improvements affixed to or located on the Land,
excluding trade fixtures owned by tenants (but including any rights of Seller to retain such
trade fixtures pursuant to the terms of the applicable Leases) (the property described in
clause (b) of this Section 1.1 being herein referred to collectively as the
“Improvements”);

1

 

     (c) all tangible personal property which is owned by Seller, located upon the Land
or within the Improvements and used exclusively in connection with the operation of the Land
and the Improvements, including, without limitation, any appliances, furniture, carpeting,
draperies and curtains, tools and supplies, and other items of personal property (the
“Personal Property”); provided, however, that Personal Property shall specifically
exclude (i) any tangible personal property owned by tenants or other occupants of the
Properties (as such term is defined in Section 1.2 hereof), and (ii) those specific
items of tangible personal property listed on Exhibit B as “Excluded Personal
Property”;

     (d) to the extent they are in effect on the date of the Closing (as such term is
defined in Section 4.1 hereof), any and all of Seller’s right, title and interest (i)
as landlord/lessor under those certain leases described on Schedule 1.1 (d) attached
hereto (the “Leases”), and (ii) in and to any other leases, licenses, occupancy
agreements, commitment letters, letters of intent and other rental agreements, whether
written or oral, if any, including all amendments or modifications thereto or
supplements thereof, that grant or will grant a possessory interest in and to any space in
the Real Property (as such term is defined in Section 1.2 hereof), or that otherwise
assign or convey rights with regard to all or any portion of the Real Property or
the Improvements, together with all rents, fees, and other sums due or payable thereunder
(the “Rents”) and any and all unapplied security and other deposits (including, without
limitation, deposits for taxes, insurance, maintenance or improvements) in Seller’s
possession in connection therewith (collectively, the “Security Deposits”);

     (e) to the extent they are in effect on the date of the Closing, any and all of
Seller’s right, title and interest in and to any subleases, sublicenses and other rental or
occupancy agreements between any tenants of the Real Properties (as such term is defined in
Section 1.2 hereof), and any subtenants, sublicensees or other occupants of the Real
Properties, whether written or oral, if any, including all amendments or modifications
thereto or supplements thereof (the property described in clause (e) of this Section
1.1 being referred to collectively as the “Subleases”);

     (f) to the extent they are in effect on the date of the Closing, any and all of
Seller’s assignable right, title and interest in and to any security agreements, guaranty
agreements, indemnification agreements, assignments of rents and leases, collateral
assignments, letters of credit (and any cash deposits made by tenants under Leases in lieu
thereof) and such other similar agreements or instruments, including all amendments or
modifications thereto or reaffirmations or supplements thereof, pursuant to which the Seller
is or has been granted any security interest, lien, encumbrance or other rights to
collateral, payment or performance of any kind whatsoever, which provide credit enhancements,
or which otherwise secure the obligations of tenants under the Leases (the property described
in clause (f) of this Section 1.1 being referred to collectively as the “Security
Documents”) (provided, however, that Buyer shall pay any and all costs associated with
the conveyance of Seller’s interest in the Security Documents);

     (g) to the extent they are in effect on the date of the Closing, any and all of
Seller’s assignable right, title and interest in and to any asset purchase agreements, merger
agreements, stock purchase agreements, development agreements, bills of sale, assignments,
instruments of transfer and other similar agreements or instruments, including all amendments
or modifications thereto or supplements thereof, in each case relating to the Seller’s
acquisition and development

2

 

of the Properties prior to the date hereof (the property described in clause (g) of this
Section 1.1 being referred to collectively as the “Acquisition Documents”);

     (h) to the extent they are in effect on the date of the Closing, any and all of Seller’s
assignable right, title and interest in and to any intercreditor agreements, forbearance
agreements, landlord waivers, subordination agreements and other similar agreements of Seller with
creditors of the tenants and subtenants of the Real Properties or otherwise with respect to the
Properties (but solely to the extent that the foregoing pertains exclusively to the Real
Properties) (the property described in clause (h) of this Section 1.1 being referred to
collectively as the “Intercreditor Documents”); and

     (i) all assignable existing warranties and guaranties (express or implied) issued to Seller
in connection with the Improvements or the Personal Property, all assignable existing permits,
licenses, approvals and authorizations issued to Seller by any governmental authority in
connection with the Properties, and, subject to Section 3.1(b) hereof, all assignable
right, title and interest of Seller in and to site plans, surveys, architectural drawings, plans
and specifications, engineering and environmental plans, floor plans, landscape plans and other
plans relating to the Properties (the property described in clause (i) of this Section
1.1. together with the Security Documents, Acquisition Documents, and Intercreditor Documents,
being sometimes herein referred to collectively as the “Intangibles”).

     Notwithstanding the foregoing or any other provision of this Agreement to the contrary,
Seller shall retain and reserve any and all indemnification rights that may currently exist for
the benefit of Seller under the Leases, Subleases, Intangibles or other documents or agreements to
the extent that the same pertain to any claims, liabilities or actions arising in connection with
acts, omissions or conditions that occurred or existed prior to Closing; provided,
however, that such retention and reservation shall be limited to the extent necessary to also
provide Buyer with the benefit of such indemnification rights if any claim is made against Buyer
arising out of or relating to those same acts, omissions or conditions.

     Section 1.2. Property Defined. The Land and the Improvements are hereinafter
sometimes referred to individually as a “Real Property,” and collectively as the “Real
Properties.” The Real Property, the Personal Property, the Leases, the Subleases and the
Intangibles are hereinafter sometimes referred to individually as a “Property”, and
collectively as the “Properties.” The term “Real Properties” and “Properties” shall be amended to
reflect any Partial Termination (as defined below) with respect to any Property as provided
herein.

     Section 1.3. Purchase Price. Subject to the terms and conditions hereof, Seller shall
sell and Buyer shall purchase the Properties for the amount of Three Hundred Seventy Million Nine
Hundred Thirty Six Thousand Seven Hundred Eighty Seven Dollars ($370,936,787) (as increased or
decreased by prorations and adjustments as herein provided or as a result of any Partial
Termination of this Agreement with respect to one or more Properties hereunder in accordance with
the terms of this Agreement) (the “Purchase Price”). The parties hereby agree that the
Purchase Price shall be allocated among each Property as set forth on Schedule 1.3 attached hereto
(the “Allocated Purchase Price”). The parties agree that the Allocated Purchase Price has
been arrived at by a process of arm’s-length negotiations, including, without limitation, the
parties’ best judgment as to the fair market value of each respective asset, and the parties

3

 

specifically agree to the Allocated Purchase Price as final and binding, and will consistently
reflect those allocations on their respective federal, state and local tax returns, including any
state, county and other local transfer or sales tax declarations or forms to be filed in
connection with this transaction, which obligations shall survive the Closing.

     Section 1.4. Payment of Purchase Price.

     The Purchase Price, as increased or decreased by prorations and adjustments as herein provided
and less the Deposit (as hereinafter defined) previously deposited by Buyer into Escrow (as
hereinafter defined), shall be payable in full at the Closing in cash by wire transfer of
immediately available funds to a bank account designated by Seller in writing to Buyer prior to the
Closing.

     Section 1.5. Opening of Escrow; Deposit.

     Buyer previously opened escrow (the “Escrow”) with First American Title Insurance
Company, a California corporation (the “Title Company”), having its office at 5775
Glenridge Drive Suite A-240, Atlanta Georgia 30328, pursuant to that certain Escrow Agreement,
dated as of February 15, 2008, by and between Buyer and Title Company (the “Escrow
Agreement”). Pursuant to the Escrow Agreement, Buyer previously deposited with Title Company a
sum equal to Two Million Dollars ($2,000,000) (the “First Deposit”) in good funds either
by certified bank or cashier’s check or by federal wire transfer. Concurrently with the execution
and delivery of this Agreement, (i) the parties hereby agree that the Escrow Agreement shall be of
no further force and effect and that Escrow, the First Deposit and (if applicable) the Second
Deposit described below shall be held and disbursed by Title Company in accordance with the terms
and conditions set forth in this Agreement and (ii) the parties shall deposit with Title Company a
fully executed original or original counterpart(s) of this Agreement. If this Agreement is not
terminated or deemed terminated by Buyer prior to the expiration of the Contingency Period
pursuant to Section 3.5 hereof, then within two (2) Business Days after the expiration of the
Contingency Period, Buyer shall deposit with Title Company an additional sum equal to Two Million
Dollars ($2,000,000) (the “Second Deposit”) in good funds either by certified bank or
cashier’s check or by federal wire transfer. The First Deposit and the Second Deposit (i.e.,
collectively, Four Million Dollars ($4,000,000)), but excluding interest and earnings thereon,
shall hereinafter be referred to collectively as the “Deposit”. The parties hereby direct Title
Company to immediately invest the Deposit and the income generated thereby following Title
Company’s receipt of the same, in a money market account that provides daily liquidity, or a
similar interest bearing money market or bank account as shall be approved by Buyer, in its sole
discretion. Title Company shall otherwise handle the Deposit and all earnings thereon in
accordance with the terms and conditions of this Agreement. All interest accrued on the Deposit
shall belong solely and exclusively to Buyer, and shall not be deemed part of the Deposit. Subject
to Section 4.1(c) hereof, the entire Deposit (exclusive of interest or earnings accrued
thereon) shall be credited to the Purchase Price upon the close of Escrow and, unless otherwise
expressly instructed by Buyer, all such interest and earnings shall be paid to Buyer upon the
close of Escrow. All costs and fees imposed on the Deposit account (including, without limitation,
Title Company’s fees) shall be paid equally by Buyer and Seller. The failure of Buyer to timely
deliver any portion of the Deposit hereunder shall constitute a material default by Buyer
hereunder (unless such failure is in connection with Buyer exercising its termination rights

4

 

hereunder), and shall entitle Seller, at Seller’s sole option, to terminate this Agreement
immediately, retain any portion of the Deposit previously delivered by Buyer to Escrow, and recover
from Buyer the full amount of any remaining portion of the Deposit that should have been deposited
into Escrow by Buyer hereunder. Except as otherwise specifically provided in this Agreement, the
Deposit (excluding the accrued interest thereon) shall be nonrefundable upon expiration of the
Contingency Period.

     Section 1.6. Liquidated Damages.

     (a) AFTER EXPIRATION OF THE CONTINGENCY PERIOD, IN THE EVENT THE SALE OF THE
PROPERTIES AS CONTEMPLATED HEREUNDER IS NOT CONSUMMATED IN ACCORDANCE WITH THE
TERMS OF THIS AGREEMENT FOR ANY REASON OTHER THAN BUYER’S MATERIAL BREACH OF THIS
AGREEMENT OR FAILURE OF THE CONDITION SET FORTH IN SECTION 4.8(c) TO BE
SATISFIED, TITLE COMPANY SHALL DELIVER TO BUYER THE DEPOSIT AND ALL INTEREST AND OTHER
AMOUNTS EARNED FROM THE INVESTMENT THEREOF WITHIN THREE (3) BUSINESS DAYS AFTER
TITLE COMPANY’S RECEIPT OF BUYER’S WRITTEN REQUEST.

     (b) AFTER EXPIRATION OF THE CONTINGENCY PERIOD, IN THE EVENT THE SALE OF THE
PROPERTIES AS CONTEMPLATED HEREUNDER IS NOT CONSUMMATED IN ACCORDANCE WITH THE
TERMS OF THIS AGREEMENT AS A RESULT OF BUYER’S MATERIAL BREACH OF THIS AGREEMENT OR FAILURE
OF THE CONDITION SET FORTH IN SECTION 4.8(c) TO BE SATISFIED, TITLE COMPANY SHALL (i)
DELIVER TO SELLER THE DEPOSIT AS LIQUIDATED DAMAGES AND (ii) DELIVER TO BUYER ALL INTEREST
AND OTHER AMOUNTS EARNED FROM THE INVESTMENT OF THE DEPOSIT WITHIN THREE (3) BUSINESS DAYS
AFTER TITLE COMPANY’S RECEIPT OF SELLER’S WRITTEN REQUEST.

     (c) THE BUYER AND SELLER RECOGNIZE THAT SELLER’S ACTUAL DAMAGES IN THE EVENT
THE SALE IS NOT CONSUMMATED AS A RESULT OF BUYER’S DEFAULT OR FAILURE OF THE CONDITION SET
FORTH IN SECTION
4.8(c) TO
BE SATISFIED ARE EXTREMELY DIFFICULT OR
IMPRACTICABLE
TO DETERMINE AT THE EFFECTIVE DATE. THEREFORE, BY
SEPARATELY EXECUTING THIS SECTION 1.6 BELOW, THE PARTIES ACKNOWLEDGE THAT
THE AMOUNT OF THE DEPOSIT HAS BEEN AGREED UPON, AFTER NEGOTIATION, AS THE PARTIES’
REASONABLE ESTIMATE OF SELLER’S DAMAGES AND NOT A PENALTY, AND SHALL BE SELLER’S SOLE AND
EXCLUSIVE REMEDY AGAINST BUYER ARISING FROM A FAILURE OF THE SALE TO CLOSE AS A RESULT
OF BUYER’S BREACH OF THIS AGREEMENT OR FAILURE OF THE CONDITION SET FORTH IN
SECTION 4.8(c) TO BE SATISFIED.

     (d) NOTWITHSTANDING THE FOREGOING, IN NO EVENT SHALL THIS SECTION 1.6 LIMIT THE
DAMAGES RECOVERABLE BY EITHER PARTY AGAINST THE OTHER PARTY DUE TO THE OTHER PARTY’S
OBLIGATION TO INDEMNIFY SUCH PARTY IN ACCORDANCE WITH THIS AGREEMENT OR BY REASON OF
THE OTHER PARTY’S OBLIGATION TO PAY THE PREVAILING PARTY’S ATTORNEYS’

5

 

FEES AND COSTS PURSUANT TO SECTION 10.16 HEREOF. BY SEPARATELY EXECUTING THIS SECTION
1.6. BELOW, BUYER AND SELLER ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTOOD THE ABOVE PROVISION
COVERING LIQUIDATED DAMAGES, AND THAT EACH PARTY WAS REPRESENTED BY COUNSEL WHO EXPLAINED THE
CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION AT THE TIME THIS AGREEMENT WAS EXECUTED.

     (e) The provisions of this Section 1.6 shall survive the termination of this
Agreement.

[Signature Page Follows]

6

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SELLER:	 	 	 	BUYER:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HCP, INC., a Maryland corporation	 	 	 	MPT OPERATING PARTNERSHIP, a	 	 
	 	 	 	 	 	 	 	 	Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Brian J. Maas	 	 	 	By:	 	MEDICAL PROPERTIES TRUST, LLC,	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name:	 	Brian J. Maas	 	 	 	 	 	a Delaware limited liability company,	 	 
	Its:	 	SVP	 	 	 	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	By:	 	MEDICAL PROPERTIES TRUST,	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	INC., a Maryland corporation,	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	By:
	 	/s/ Michael G. Stewart
 

	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Name:
	 	MICHAEL G. STEWART	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Its:
	 	EXECUTIVE VP AND GENERAL COUNSEL	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FAEC HOLDINGS (BC), LLC,	 	 	 	 	 	 	 	 	 	 	 	 
	Delaware limited liability company	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	HCP, INC., a Maryland corporation,	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	its Sole Member	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Brian J. Maas	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	 Brian J. Maas	 	 	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	SVP
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TEXAS HCP HOLDING, L.P.,	 	 	 	 	 	 	 	 	 	 	 	 
	a Delaware limited partnership	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	TEXAS HCP G.P., INC., a Delaware	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	corporation, its General Partner	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Brian J. Maas	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 Brian J. Maas	 	 	 	 	 	 	 	 	 	 
	 

	 	Its:	 	SVP	 	 	 	 	 	 	 	 	 	 	 	 

7

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HCPI TRUST, a Maryland real estate trust	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Brian J.Maas	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name:	 	Brian J.Maas	 	 	 	 	 	 	 	 	 	 	 	 
	Its:	 	SVP	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HCP DAS PETERSBURG VA, LP,	 	 	 	 	 	 	 	 	 	 	 	 
	Delaware limited partnership	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	HCP DAS PETERSBURG VA GP, LLC,

a Delaware limited liability company, its

General Partner	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Brian J.Maas
 

Brian J.Maas
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	SVP	 	 	 	 	 	 	 	 	 	 	 	 

8

 

     Section 1.7. Title Company.

     By its execution and delivery of this Agreement, Title Company agrees to be bound by the terms
and conditions of this Agreement to the extent applicable to its duties, liabilities and
obligations as “Title Company.” Title Company shall hold and dispose of the Deposit in
accordance with the terms of this Agreement. Title Company shall incur no liability in connection
with the safekeeping or disposition of the Deposit for any reason other than Title Company’s breach
of contract, willful misconduct or negligence. If Title Company is in doubt as to its duties or
obligations with regard to the Deposit, or if Title Company receives conflicting instructions from
Buyer and Seller with respect to the Deposit, Title Company shall not be required to disburse the
Deposit and may, at its option, continue to hold the Deposit until both Buyer and Seller agree as
to its disposition, or until a final judgment is entered by a court of competent jurisdiction
directing its disposition, or Title Company may interplead the Deposit in accordance with the laws
of the State of New York. Title Company shall not be responsible for any interest on the Deposit
except as is actually earned, or for the loss of any interest or other earnings resulting from the
withdrawal of the Deposit prior to the date interest is posted thereon. All such interest and
earnings shall belong solely to Buyer. The Escrow General Provisions are attached hereto as
Exhibit C and made a part hereof. In the event of any conflict between the terms and
provisions of this Agreement and the Escrow General Provisions, the terms and provisions of this
Agreement shall control.

     Section 1.8. Independent Contract Consideration.

     Notwithstanding anything in this Agreement to the contrary, One Hundred and No/100 Dollars
($100.00) of the Deposit is delivered to the Title Company for delivery to Seller as
“Independent Contract Consideration”, and the Deposit is reduced by the amount of the
Independent Contract Consideration so delivered to Seller, which amount has been bargained for and
agreed to as consideration for Seller’s execution and delivery of this Agreement.

ARTICLE II

TITLE AND SURVEY

     Section 2.1. Title Contingency Period. During the period beginning on the Effective
Date and ending (subject to the provisions of Section 3.7) at 5:00 p.m. Los Angeles, California
time on March 14, 2008 (such period, as may be extended as permitted herein, the “Title
Contingency Period”), Buyer shall have the right to review and investigate any and all
conditions and aspects of title to the Real Properties. Without limiting the foregoing, Buyer
shall have the right to review: (a) a current preliminary title report or title commitment
prepared by the Title Company covering each of the Real Properties and all underlying exceptions,
which shall be obtained by Buyer from the Title Company (the “Title Commitments”), and (b)
a copy of the most current ALTA survey of each of the Real Properties in Seller’s actual
possession and control, if any (the “Existing Surveys”) (the items referred to in clauses
(a) and (b) of this Section 2.1 are hereinafter referred to as the “Title Contingency
Items”); provided, however, in no event shall the Title Contingency Period be extended or
delayed if Seller does not possess or is unable to locate an Existing Survey of any of the Real
Properties. During the Title Contingency Period, Buyer shall also have the right to obtain and
review additional documentation relating to the Real Properties including, without limitation, a
new or updated

9

 

ALTA survey of each of the Real Properties prepared by a licensed surveyor or engineer, obtained
by Buyer at Buyer’s sole cost (the “New Surveys”); provided, however, that in no event
shall the Title Contingency Period be extended or delayed in order to permit Seller to obtain or
review any New Surveys. For purposes of the preceding sentence only, a “new or updated ALTA
Survey” shall mean an ALTA survey with the 2005 Minimum Standard Detail Requirements for ALTA/ACSM
Land Title Surveys jointly established and adopted by ALTA and ACSM in 2005 that meets the
Accuracy Standards, as adopted by ALTA and National Society of Professional Surveyors (a member
organization of the ACSM), to include items 1 (except for states that require record monument
platting), 2, 3, 4, 6, 7(a), 7(b)(l), 7(c), 8, 9, 10, 11(a), 13, 14, 16, 17, 18, and 19 (to the
extent possible, graphically depicting on the survey drawing the zoning setback lines) of Table A
thereof.

     Section 2.2. Title Examination. Buyer shall notify Seller in a reasonably detailed
writing (the “Title Objection Notice”) prior to the expiration of the Title Contingency
Period which exceptions to title (including survey matters), if any, will not be accepted by Buyer
and the specific reasonable grounds for disapproval thereof. Any exception to title, encumbrance or
other matter which is disclosed in the Title Contingency Items, any New Survey, or any other
materials delivered or made available to, or otherwise obtained by, Buyer prior to the expiration
of the Title Contingency Period, and which Buyer fails to disapprove prior to the expiration of the
Title Contingency Period shall be deemed conclusively to have been approved by Buyer; provided,
however, that notwithstanding the foregoing, Buyer shall have until the earlier to occur of seven
(7) days after (i) receipt of any New Survey, or (ii) the expiration of the Title Contingency
Period (the “Updated Survey Contingency Deadline”) to object to any matter that is
disclosed on such New Survey that (x) was not disclosed by the Existing Survey or any other
materials obtained by or made available to Buyer prior to the expiration of the Title Contingency
Period, (y) was not known to Buyer prior to the expiration of the Title Contingency Period and (z)
would have a material adverse effect on the value or utility of the Property to which it pertains.
If Buyer delivers any Title Objection Notice to Seller, then Seller shall have five (5) Business
Days after receipt of the Title Objection Notice to notify Buyer in writing that Seller either (i)
will remove such objectionable exception or matter from title or survey on or before the Closing
(provided that Seller may, at the time of Seller’s notice of its election to Buyer, request to
extend the Closing for such period as shall be reasonably required to effect such cure, but not
beyond thirty (30) days, in which case Buyer shall be required to either extend the Closing as so
requested or revoke Buyer’s notice with respect to such exception from title, and upon any such
revocation the parties hereto shall thereafter proceed to Closing without any extension therefor),
or (ii) elects not to cause such objection to be removed (a “Non-Removal Notice”). If
Seller fails to notify Buyer of its election within said five (5) Business Day period, then Seller
shall be deemed to have delivered a Non-Removal Notice as to that exception. The procurement by
Seller, at no additional cost to Buyer, of a commitment for the issuance of the Title Policy (as
defined below) or an endorsement thereto reasonably satisfactory to Buyer and insuring Buyer
against any title exception which was disapproved pursuant to this Section 2.2 shall be
deemed a cure by Seller of such disapproval. Any updates to any Existing Surveys or New Surveys
necessitated by Seller’s cure of any title objection shall be Buyer’s sole responsibility, both as
to performance and payment of costs therefor. If Seller gives (or is deemed to have given) Buyer a
Non-Removal Notice, then Buyer shall have until the date that is five (5) Business Days after the
date that Seller shall have given (or be deemed to have given) the Non-Removal Notice to notify
Seller in writing that Buyer elects to either (A) nevertheless proceed with the purchase and take

10

 

title to the Properties subject to such exceptions, or (B) terminate this Agreement with respect to
all, but not less than all, of the Properties, in which event the provisions of Section 3.6
below shall apply. If Buyer fails to notify Seller in writing, of its election on or prior to the
expiration of such five (5) Business Day period, then Buyer shall be deemed to have elected to
proceed with the purchase and take title to the Properties subject to such exceptions without any
reduction in the Purchase Price. The operation of the notice and approval provisions of this
Section 2.2 shall extend the Title Contingency Period only as to those matters which Buyer
has disapproved as of the original expiration of the Title Contingency Period and only until such
time as Buyer has either approved (or is deemed to have approved) the condition of title to the
Real Properties, or elected to terminate this Agreement in accordance with the provisions hereof.

     (b) Buyer may, at or prior to Closing, notify Seller in writing (the “Gap Notice”) of
any objection to any liens, encumbrances, easements, restrictions, conditions, covenants, rights,
rights-of-way, or other matters affecting title to the Properties (each, an “Intervening
Lien”) (i) raised by the Title Company after the expiration of the Title Contingency Period
and prior to the Closing or otherwise disclosed on any update or revision to any New Survey
received by Buyer after the Updated Survey Contingency Deadline and prior to the Closing, and (ii)
which (A) was not disclosed by the Title Company or by any Existing Survey, New Survey or other
materials made available to Buyer prior to the expiration of the Title Contingency Period or the
Updated Survey Contingency Deadline, as applicable, (B) was not known to Buyer prior to the
expiration of the Title Contingency Period, or (C) would not have been disclosed by a reasonable
physical inspection of the Properties prior to the expiration of the Title Contingency Period.
Buyer must notify Seller of such objection to any such Intervening Liens within three (3) Business
Days of receiving written notice of, or materials disclosing, the existence of such Intervening
Liens (provided, however, if receipt of written notice of, or materials disclosing, such
additional matters is less than three (3) Business Days prior to the Closing Date, then the
Closing Date shall be extended as necessary to permit the procedures in this section to be
implemented). Failure to timely deliver a Gap Notice to Seller shall be deemed to be Buyer’s
approval of any such Intervening Lien. If Buyer sends a Gap Notice to Seller, then Buyer and
Seller shall have the same rights and obligations with respect to such Gap Notice as apply to a
Title Objection Notice under Section 2.2(a).

     Section 2.3. Permitted Exceptions. The Properties shall be conveyed subject to the
following matters, which are hereinafter referred to as the “Permitted Exceptions”:

     (a) those matters that are either approved or deemed approved by Buyer in accordance with
Section 2.2 and Section 2.3 hereof;

     (b) the rights of tenants or other occupants under the Leases, any subleases and any other
occupancy agreements, including any Pre-Emptive Rights (as such term is defined in Section
4.9 hereof) thereunder;

     (c) the lien of all ad valorem real estate taxes and assessments not yet due and payable as
of the date of Closing, subject to proration as herein provided;

11

 

     (d) local, state and federal laws, ordinances or governmental regulations, including but not
limited to building and zoning laws, ordinances and regulations, now or hereafter in effect
relating to the Properties; and

     (e) items shown on the Title Commitments, Existing Surveys or New Surveys and not objected to
by Buyer, or waived or deemed waived by Buyer in accordance with Section 2.2 hereof and if
Buyer does not obtain New Surveys, those matters which would be disclosed by an accurate survey or
inspection of the Properties.

     Section 2.4. Conveyance of Title. At Closing, Seller shall convey and transfer, or
cause to be conveyed or transferred, to Buyer (a) with respect to each Real Property other than the
Ground Lease Properties, fee simple title to such Real Property by execution and delivery of the
Deeds (as defined in Section 4.2(a) hereof) and (b) with respect to the Ground Lease
Properties, the leasehold and sub-subleasehold interests, as applicable, in and to such Ground
Lease Properties by execution and delivery of an Assignment of Ground Lease (as defined in
Section 4.2(b) hereof). Evidence of delivery of such fee title and leasehold and
sub-subleasehold interests shall be the issuance by the Title Company of current ALTA Standard
Coverage Owner’s Policies of Title Insurance and ALTA Leasehold Policies of Title Insurance (or
their equivalent in the applicable jurisdictions), as applicable (each a “Title Policy”,
and collectively, the “Title Policies”) covering each Real Property, in the full amount of
the Allocated Purchase Price for such Real Property, showing fee title, leasehold interest or
sub-subleasehold interest, as applicable, to such Real Property vested exclusively in Buyer,
subject only to the Permitted Exceptions (or the Title Company’s written commitment to issue such
Title Policies). Except as provided below and in Section 4.6 hereof, the cost of the Title
Policies shall be paid by Seller. If prior to the Closing, Buyer shall deliver to Title Company New
Surveys meeting the minimum standards as required by the Title Company for issuance of ALTA
Extended Owner’s Policies of Title Insurance or Leasehold Policies of Title Insurance (or their
equivalent in the applicable jurisdictions), then Buyer shall be entitled to obtain ALTA Extended
Coverage Owner’s Policies or Leasehold Policies of Title Insurance (or their equivalent in the
applicable jurisdictions) in lieu of ALTA Standard Coverage Owner’s Policies or Leasehold Policies
(or their equivalent in the applicable jurisdictions) so long as the Closing is not thereby
delayed. Buyer shall pay the additional premium for such policies, including any endorsements
thereto, and the cost of such New Surveys.

ARTICLE III

REVIEW OF PROPERTY

     Section 3.1. Right of Inspection. During the period from the Effective Date and
ending (subject to the provisions of Section 3.7) at 5:00 p.m. Los Angeles, California
time on March 14, 2008 (hereinafter referred to as the “Contingency Period”), Buyer and
its authorized representatives (including its designated engineers, architects, surveyors and/or
consultants) shall have the right (i) to review and investigate any and all conditions and aspects
of the Properties in Buyer’s sole discretion (except as expressly provided below and except for
title and survey matters, which shall be governed by Article II hereof), (ii) to receive
and review copies of those items listed in Exhibit D attached hereto (the “Property
Documents”) to the extent in Seller’s possession or control, and (iii) at Buyer’s sole cost
and expense, to make physical inspections of and conduct tests and reviews upon the Real
Properties, including, but not limited to, an

12

 

inspection of the environmental condition thereof pursuant to the terms and conditions of this
Agreement and to examine such other documents and files (i.e., in addition to the Property
Documents) concerning the leasing, maintenance and operation of the Properties that are within
Seller’s actual possession or control and which have been made available to Buyer through the
secure website (the “E-Room”) to which Buyer has previously been granted access. If
required by law, Seller shall provide at Closing a Natural Hazards Disclosure Report or similar
disclosure report prior to the expiration of the Contingency Period.

     (b) Notwithstanding anything to the contrary contained in Section 3.1(a) above, Buyer
acknowledges that it shall have no right to examine any of the following documents in connection
with its review of the Properties: (i) partnership, limited liability company or corporate records
of Seller, (ii) internal memoranda of Seller, (iii) financial projections or budgets prepared by
or for Seller, (iv) appraisals prepared by or for Seller, (v) accounting or tax records of Seller,
(vi) similar proprietary, confidential or privileged information, and (vii) any internal memoranda
relating to the foregoing (collectively, the “Confidential Documents”).

     (c) All on-site inspections of the Properties shall be undertaken in accordance with the terms
and conditions of that certain Due Diligence License and Access Agreement, dated as of February 15,
2008, by and between Seller and Buyer (as may be amended, modified, supplemented and amended and
restated from time to time, the “Access Agreement”). Upon request by Seller, Buyer will
furnish to Seller copies of any reports received by Buyer relating to any inspection of the
Properties, without representation or warranty of any kind (express, implied or otherwise) as to
the content and accuracy thereof, and at no charge to Seller, but such reports shall at all times
be and remain the property of Buyer. Buyer agrees to protect, indemnify, defend (with counsel
reasonably satisfactory to Seller) and hold Seller and Seller’s employees, officers, directors,
representatives, invitees, tenants, agents, contractors, servants, attorneys, shareholders,
participants, affiliates, partners, members, parents, subsidiaries, successors and assignees, free
and harmless from and against any claim for liabilities, losses, costs, expenses (including
reasonable attorneys’ fees), damages or injuries arising out of, or resulting from the inspection
of the Properties by Buyer or its agents or consultants; provided, however, that Buyer shall not be
responsible for any liability, damage, loss, cost or expense arising out of Buyer’s discovery of a
pre-existing condition at any of the Properties, including reporting any such condition to the
appropriate authorities if required to do so by law and Seller shall be solely responsible for any
liability, damage, loss, cost or expense arising out of Buyer’s discovery of such pre-existing
condition at any of the Properties, and for compliance with any reporting obligation that arises
from such discovery. Notwithstanding anything to the contrary in this Agreement, (1) Buyer shall
not be relieved of its obligation to indemnify, defend and hold harmless Seller in the event that
any pre-existing condition is aggravated by Buyer and/or Buyer’s representatives in connection with
any inspection of the Properties, and (2) Buyer’s obligation to indemnify, defend and hold harmless
Seller pursuant to this Section 3.1(c) shall survive Closing or any termination of this
Agreement.

     (d) Buyer’s right of access to the Properties shall also include the right during the
Contingency Period to meet and confer with tenants of the Properties in accordance with the terms
and conditions of the Access Agreement.

13

 

     Section 3.2. Environmental Reports. SELLER SHALL PROMPTLY PROVIDE BUYER COPIES OF THE
ENVIRONMENTAL REPORTS LISTED ON EXHIBIT E (THE “ENVIRONMENTAL REPORTS”), WHICH
SHALL BE MADE AVAILABLE ON THE E-ROOM AS PART OF THE PROPERTY DOCUMENTS WITHOUT REPRESENTATION AND
WARRANTY. SELLER SHALL HAVE NO LIABILITY OR OBLIGATION WHATSOEVER FOR ANY INACCURACY IN OR OMISSION
FROM ANY ENVIRONMENTAL REPORT. BUYER SHALL HAVE NO CLAIMS AGAINST THE PREPARER OF ANY ENVIRONMENTAL
REPORT PROVIDED BY SELLER IN CONNECTION WITH ANY SUCH REPORT. BUYER HAS CONDUCTED, OR WILL CONDUCT
PRIOR TO THE EXPIRATION OF THE CONTINGENCY PERIOD, ITS OWN INVESTIGATION OF THE ENVIRONMENTAL
CONDITION OF THE PROPERTIES TO THE EXTENT BUYER DEEMS SUCH AN INVESTIGATION TO BE NECESSARY OR
APPROPRIATE.

     Section 3.3. No Financing Contingency. It is expressly agreed that there shall not be
any conditions making Buyer’s obligations under this Agreement contingent upon the obtaining of
any financing by Buyer. The purchase of the Properties under this Agreement shall be on an “ALL
CASH” basis, to be paid in accordance with Section 4.3 of this Agreement.

     Section 3.4. Review of Estoppel Certificates.

     (a) Seller shall prepare for each tenant under a Lease an estoppel certificate in
substantially the form attached hereto as Exhibit F-l (with such modifications thereto as are
necessary to conform it to the applicable provisions of the subject lease), or in the form or
containing such information as is required by any Lease (the “Tenant Estoppels”), and shall
deliver drafts of the same to Buyer for Buyer’s approval. Buyer shall have two (2) Business Days
from its receipt of any draft estoppel certificate to provide comments thereto or approve the
same. Failure of Buyer to so respond within such two (2) Business Day period shall be deemed to
constitute Buyer’s approval of said draft. Once draft estoppel certificates have been approved or
deemed approved by Buyer (a “Pre-Approved Form Estoppel”) Seller shall deliver the same to the
applicable tenants under the Leases and request that the tenants complete and sign the Tenant
Estoppels and return them to Seller within ten (10) days after each tenant’s receipt of the same
or such time period required by the terms of the applicable Lease. Seller shall use commercially
reasonable efforts to obtain an executed Tenant Estoppel from each tenant under a Lease at least
three (3) Business Days prior to Closing; provided, however, that in no event shall Seller be
required to declare an event of default under any Lease for a tenant’s failure to deliver a Tenant
Estoppel or otherwise be required to institute legal proceedings against any tenant in connection
therewith. Seller shall (i) use commercially reasonable efforts to obtain and deliver to Buyer, at
least three (3) Business Days prior to the Closing Date, Tenant Estoppels from tenants which
collectively occupy no less than eighty percent (80%) of the Allocated Purchase Price of those
Properties to be conveyed on the Closing Date, and (ii) deliver estoppel certificates executed by
Seller (“Seller Estoppels”), in the form of Exhibit F-2 attached hereto (with such modifications
thereto as are necessary to conform it to the applicable provisions of the subject Lease), or in
the form or containing such information as is required by such Lease (the “Pre-Approved Form
Seller Estoppel”), for those Tenant Estoppels of the tenants occupying the Properties to be
conveyed on the Closing Date which were not obtained, provided that in no event shall such Seller
Estoppels collectively pertain to Properties representing in excess of twenty percent (20%)

14

 

of the Allocated Purchase Price of the Properties to be conveyed on the Closing Date. Seller’s
failure to deliver Tenant Estoppels (or Seller Estoppels, as applicable) shall not constitute a
default by Seller hereunder. Buyer shall have two (2) Business Days after receipt of each executed
Tenant Estoppel and Seller Estoppel to review and approve such Tenant Estoppel and Seller
Estoppel; provided, however, that Buyer shall be required to approve any Tenant Estoppel or Seller
Estoppel which is (i) substantially in the form of the Pre-Approved Form Estoppel or Pre-Approved
Form Seller Estoppel, as applicable, or (ii) in the form or contains such information as is
required by the applicable Lease (each such estoppel not substantially in such form being referred
herein as an “Unacceptable Estoppel”). Notwithstanding any provision to the contrary herein,
neither references in any Tenant Estoppel or Seller Estoppel to any of the matters described on
Schedule 3.4(a), nor deviations from the Pre-Approved Form Estoppel or Pre-Approved Form Seller
Estoppel with regard to such matters, shall in any way constitute a basis for Buyer to deem any
estoppel certificate an Unacceptable Estoppel. Seller shall be released from liability under a
Seller Estoppel upon delivery to Buyer of a Tenant Estoppel from the corresponding tenant to the
extent such Tenant Estoppel is substantially in the form of the Pre-Approved Form Estoppel.

     (b) Seller shall prepare for each lessor under a Ground Lease an estoppel certificate in
substantially the form attached hereto as Exhibit F-3 (with such modifications thereto as
are necessary to conform it to the applicable provisions of the subject ground lease), or in the
form or containing such information as is required by any Ground Lease (the “Lessor
Estoppels”), and shall deliver drafts of the same to Buyer for Buyer’s approval. Buyer shall
have two (2) Business Days from its receipt of any draft lessor estoppel certificate to provide
comments thereto or approve the same. Failure of Buyer to so respond within such two (2) Business
Day period shall be deemed to constitute Buyer’s approval of said draft. Once draft lessor estoppel
certificates have been approved or deemed approved by Buyer (a “Pre-Approved Form Lessor
Estoppel”) Buyer shall deliver the same to the applicable lessors under the Ground Leases and
request that the lessors complete and sign the Lessor Estoppels and return them to Seller within
ten (10) days after each lessor’s receipt of the same or such time period required by the terms of
the applicable Ground Lease. Seller shall use commercially reasonable efforts to obtain an executed
Lessor Estoppel from each lessor under a Ground Lease at least three (3) Business Days prior to
Closing; provided, however, that in no event shall Seller be required to declare an event of
default under a Ground Lease for a lessor’s failure to deliver a Lessor Estoppel or otherwise be
required to institute legal proceedings against a lessor in connection therewith. In the event that
Seller is unable to deliver to Buyer, at least three (3) Business Days prior to Closing, a Lessor
Estoppel from a lessor under a Ground Lease, then Seller shall deliver an estoppel certificate
executed by Seller (the “Seller Ground Lease Estoppel”), in the form of Exhibit F-4
attached hereto (with such modifications thereto as are necessary to conform it to the applicable
provisions of the subject Ground Lease), or in the form or containing such information as is
required by such Ground Lease (the “Pre-Approved Form Seller Ground Lease Estoppel”), for
those Lessor Estoppels of the lessors which were not obtained. Seller’s failure to deliver a Lessor
Estoppel (or a Seller Ground Lease Estoppel, as applicable) shall not constitute a default by
Seller hereunder. Buyer shall have two (2) Business Days after receipt of each executed Lessor
Estoppel and Seller Ground Lease Estoppel, as applicable, to review and approve such Lessor
Estoppel and Seller Ground Lease Estoppel; provided, however, that Buyer shall be required to
approve any Lessor Estoppel or Seller Ground Lease Estoppel substantially in the form of the
Pre-Approved Form Lessor Estoppel or Pre-Approved Form Seller Ground

15

 

Lease Estoppel, as applicable (each such estoppel not substantially in such form being referred
herein as an “Unacceptable Ground Lease Estoppel”). Seller shall be released from liability
under a Seller Ground Lease Estoppel upon delivery to Buyer of a Lessor Estoppel from the
corresponding lessor to the extent such Lessor Estoppel is substantially in the form of the
Pre-Approved Form Lessor Estoppel.

     (c) In the event Seller fails to deliver the required number of Tenant Estoppels pursuant to
Section 3.4(a) hereof or if the Allocated Purchase Price of all Properties to be conveyed
on the Closing Date as to which there shall be Unacceptable Estoppels and Unacceptable Ground
Lease Estoppels exceeds ten percent (10%) of the Purchase Price of the Properties to be conveyed
on the Closing Date, then Buyer’s sole remedy shall be to either (i) waive the estoppel
requirement and proceed to Closing without any abatement in the Purchase Price, or (ii) terminate
this Agreement in its entirety and receive a return of the entire Deposit.

     (d) With regard to any Properties for which the Closing has been postponed beyond the initial
Closing Date pursuant to Section 4.1, the same requirements concerning the delivery of
estoppel certificates as are set forth in Section 3.4(a) and Section 3.4(b) shall
be applicable to such Properties, provided that:

          (i) the delivery date for such estoppel certificates shall be the date which is three (3)
Business Days prior to the Tranche 2 Closing Date (as defined in Section 4.1); and

          (ii) in calculating compliance with the requirements for delivery of at least 80% Tenant
Estoppels and no more than 20% of Seller Estoppels or 10% Unacceptable Estoppels and Unacceptable
Ground Lease Estoppels, such calculations shall be performed by taking into account all of the
Properties (including those previously conveyed on the initial Closing Date) and all Tenant
Estoppels, Seller Estoppels, Unacceptable Estoppels and Unacceptable Ground Lease Estoppels
delivered in connection therewith.

In the event of a failure of the estoppel requirements described in this Section 3.4(d) to
be satisfied, Buyer’s sole remedy shall be to either (x) waive such estoppel requirements and
proceed with the Closing of the Tranche 2 Properties without any abatement in the Purchase Price,
or (y) deem all (but not less than all) of the Tranche 2 Properties and the Tranche 3 Properties
(as defined in Section 4.1) to be Deleted Properties (as defined in Section 4.10),
in which case a Partial Termination (as defined in Section 4.10) shall be deemed to have
occurred with respect to all of the Tranche 2 Properties and the Tranche 3 Properties, and the
parties shall abide by the provisions of Section 4.10 with regard thereto.

     Section 3.5. Due Diligence; Right of Termination. Subject to the provisions of
Section 3.7 hereof, if for any reason whatsoever, Buyer determines that any of the
Properties or any aspect thereof is unsuitable for Buyer’s acquisition, Buyer shall have the right
to terminate this Agreement with respect to all, but not less than all (except as otherwise
expressly provided in this Agreement), of the Properties by giving written notice thereof to
Seller prior to the expiration of the Contingency Period, and if Buyer gives such notice of
termination within the Contingency Period, then this Agreement shall terminate in accordance with
the provisions of Section 3.6 below. If, prior to the expiration of the Contingency
Period, Buyer fails to give Seller written notice of Buyer’s election to proceed with the purchase
of the Properties pursuant

16

 

to the terms of this Agreement, then Buyer shall be deemed to have terminated this Agreement and
the provisions of Section 3.6 shall control; provided, however, Buyer’s approval (or deemed
approval of title and survey matters shall at all times be governed by Article II hereof).

     Section 3.6. Rights Upon Termination. If this Agreement is terminated or deemed
terminated by Buyer (other than in connection with a Partial Termination) in the manner and within
the applicable time period(s) provided pursuant to the provisions of this Agreement, or because of
a failure of a condition precedent to the parties’ obligations hereunder as set forth in
Section 4.7 and Section 4.8 below (other than the condition set forth in Section
4.8(c)), then (i) each party shall promptly execute and deliver to Title Company such documents as
Title Company may reasonably require to evidence such termination, (ii) the Deposit plus all
accrued interest thereon shall be returned to Buyer, (iii) all instruments in Escrow shall be
returned to the party depositing the same, (iv) at the request of Seller, Buyer shall return or
destroy all items previously delivered or made available by Seller to Buyer and/or copies of any
reports, surveys or other studies or investigations prepared or received by Buyer relating to the
Properties, (v) Buyer and Seller shall each pay one-half (1/2) of all Escrow and title cancellation
charges, and (vi) neither party shall have any further rights, obligations or liabilities
whatsoever to the other party concerning the Properties by reason of this Agreement, except for any
indemnity obligations of either party pursuant to the provisions of this Agreement or otherwise
expressly stated in this Agreement to survive termination. The provisions of this Section
3.6 shall survive the Closing or earlier termination of this Agreement, but shall not limit the
rights of (x) any party under Section 6.1 and Section 6.2 in the event of a default
under this Agreement by the other party, or (y) Seller under Section 1.6 in the event of
the failure of the condition in Section 4.8(c) to be satisfied.

     Section 3.7. Shiloh Facility and HS Properties.

     (a) Notwithstanding any provision to the contrary herein, from the date hereof up to the
Closing Date, Buyer shall have the right to continue to review and evaluate the Property leased to
River West, L.P., a Delaware limited partnership (the “Shiloh Tenant”), and the Shiloh
Tenant’s ability to perform its obligations under the Lease relating to that certain facility
located in Plaquemine, Louisiana and commonly referred to as the “River West Medical Center” (the
“Shiloh Facility”), in each case in accordance with the terms and provisions of
Article III. Seller shall cooperate with Buyer in such evaluation process, including,
without limitation, continuing to comply with the provisions of Article III with respect
thereto. Notwithstanding any provision in this Agreement to the contrary, if for any reason
whatsoever Buyer determines at any time prior to Closing that the Property constituting or
relating to the Shiloh Facility is unsuitable for Buyer’s acquisition, then Buyer shall have the
right to designate such Property as a Deleted Property (as defined in Section 4.10 hereof)
and to effect a Partial Termination (as defined in Section 4.10 hereof) with respect to
such Property, and, in such event, the parties shall treat such Property in accordance with
Section 4.10 hereof.

     (b) Notwithstanding any provision to the contrary herein, from the date hereof up to 5:00
p.m. Los Angeles, California time on March 28, 2008, Buyer shall have the right to continue to
review and evaluate the Properties located in the States of Florida, Virginia, Arkansas and Kansas
(the “HS Properties”), in each case in accordance with the terms and provisions of
Article II and Article III, and Seller shall cooperate with Buyer in such
evaluation

17

 

process, including, without limitation, continuing to comply with the provisions of Article
II and Article III with respect thereto. Notwithstanding any provision in this
Agreement to the contrary herein, if for any reason whatsoever Buyer determines at any time prior
to 5:00 p.m. Los Angeles, California time on March 28, 2008 that any of the HS Properties are
unsuitable for Buyer’s acquisition, then Buyer shall have the right to designate all (but not less
than all) of such HS Properties as Deleted Properties (as defined in Section 4.10) and to
effect a Partial Termination (as defined in Section 4.10) with respect to all (but not
less than all) of such HS Properties, and, in such event, the parties shall treat such HS
Properties in accordance with Section 4.10.

ARTICLE IV

CLOSING

     Section 4.1. Time and Place.

     (a) Subject to any rights of Seller to extend the Closing Date as hereinafter provided,
the consummation of the transaction contemplated hereby (“Closing”) shall occur on
March 28,
2008 (the “Closing Date”). The term “Closing” is used in this Agreement to mean the
time and
date the transactions hereby are closed with respect to the Properties (or, to the extent
applicable,
the Tranche 2 Properties and the Tranche 3 Properties) and the Title Policies are issued (or
the
Title Company has provided its written commitment to issue such Title Policies), regardless of
whether the Deeds are actually recorded in the land records in which the Properties are
situated;
provided, however, that in the event that (i) a Pre-Emptive Right Holder has not exercised or
waived its Pre-Emptive Rights prior to the Closing Date, or (ii) the parties from which
consent is
required (the “Consent Parties”) pursuant to Section 4.8(f), Section 11.5(c) and Section
12.5(c)
have not provided such consent (the “Consent Requirements”), then the Closing with regard to
the Property or Properties to which such Pre-Emptive Rights and/or Consent Requirements, as
applicable, pertain shall be postponed in accordance with the provisions of Section 4.1(b) and
Section 4.1(c) below.

     (b) With regard to any Property or Properties for which the Closing has been postponed beyond
the initial Closing Date of March 28, 2008 pursuant to Section 4.1(a), if, as applicable (i) the
Pre-Emptive Right Holder has waived, or is deemed to have waived, its Pre-Emptive Right and/or
(ii) the Consent Parties have provided the required consent, in each case on or before April 18,
2008, then the Closing for such Properties (collectively, the “Tranche 2 Properties”)
shall occur on April 22, 2008 (the “Tranche 2 Closing Date”). Upon the Closing of the
Tranche 2 Properties, Buyer shall be deemed to have waived all closing contingencies with respect
to the remaining Properties and Buyer shall in no event be entitled to terminate this Agreement
with regard to such Properties or to receive a return of the Deposit, except in connection with
any of the following: (a) the occurrence of a material default by Seller pursuant to Section
6.2; (b) the occurrence of a casualty or condemnation event giving rise to Buyer’s right to
terminate this Agreement in accordance with Article VII; or (c) the failure of any of the
conditions set forth in Section 4.7(h), Section 4.7(i) or Section 4.7(j)
to be satisfied.

     (c) With regard to any Properties for which the Closing has been postponed beyond the Tranche
2 Closing Date pursuant to Section 4.1(a), if, as applicable, the conditions set forth in
clauses (i) and/or (ii) of Section 4.1(b) above shall occur on or before May 15, 2008,
then the

18

 

Closing for such Properties (the “Tranche 3 Properties”) shall occur on May 15, 2008 or
such other date that is mutually acceptable to the parties (the “Tranche 3 Closing Date”).
Notwithstanding any provision to the contrary herein, in the event the Closing for any Property is
postponed beyond the initial Closing Date of March 28, 2008, then the Deposit shall only be
credited against the Purchase Price with respect to the Closing of the final Property under this
Agreement.

     (d) Closing shall be consummated through the Escrow administered by Title Company. At
Closing, Seller and Buyer shall perform the obligations set forth in, respectively, Section
4.2 and Section 4.3 hereof, the performance of which obligations shall be covenants to
the parties to perform and shall be concurrent conditions.

     Section 4.2. Seller’s Obligations at Closing. At, or prior to Closing, Seller
shall:

     (a) with respect to each Real Property other than the Ground Lease Properties, deliver or
cause to be delivered to Buyer through Escrow a duly executed and acknowledged special warranty
deed or limited warranty deed (or their equivalent in applicable jurisdictions) in substantially
the form attached hereto as Exhibit G-l, but with such changes thereto as are required by
any applicable laws in the jurisdiction where such Real Property is located (the “Deeds”);

     (b) with respect to each Ground Lease Property, assign or cause to be assigned to Buyer, and
Buyer shall assume, Seller’s interest under the Ground Lease, by a duly executed assignment and
assumption of the ground lease in substantially the form attached hereto as Exhibit G-2
delivered through Escrow, but with such changes thereto as are required by any applicable laws in
the jurisdiction where such Ground Lease Property is located or to conform such form to apply to
the leasehold or sub-subleasehold interest being assigned thereby (the “Assignment of Ground
Lease”);

     (c) with respect to each Property, deliver or cause to be delivered to Buyer through Escrow a
duly executed bill of sale in the form attached hereto as Exhibit H (the “Bill of
Sale”) conveying to Buyer without warranty (except for such warranties as are specifically set
forth in Section 5.1 of this Agreement, subject in each case to the limitations on
liability and survival set forth in Section 5.2 hereof) all right, title and interest of
Seller in and to the Personal Property;

     (d) with respect to each Property, assign or cause to be assigned to Buyer without warranty
(except for such warranties as are specifically set forth in Section 5.1 of this
Agreement, subject in each case to the limitations on liability and survival set forth in
Section 5.2 hereof), and Buyer shall assume, Seller’s interest in and to the Leases,
Subleases, if any, Rents, and Security Deposits by a duly executed assignment and assumption
agreement (the “Assignment of Leases”) in the form attached hereto as Exhibit I
delivered through Escrow;

     (e) with respect to each Property, execute notices in the form attached hereto as Exhibit
J (the “Tenant Notices”), which Buyer shall send to each tenant under each of the
Leases promptly after the Closing, informing such tenant of the sale of such Property and of the
assignment to Buyer of Seller’s interest in, and obligations under, the Leases (including, if

19

 

applicable, any Security Deposits), and directing that all Rent and other sums payable after the
Closing under such Lease be paid as set forth in the notice;

     (f) with respect to each Property, to the extent assignable without charge or consent, assign
or cause to be assigned to Buyer without warranty (except for such warranties as are specifically
set forth in Section 5.1 of this Agreement, subject in each case to the limitations on
liability and survival set forth in Section 5.2 hereof), and Buyer shall assume, Seller’s
interest in and to the Security Documents, the Acquisition Documents and the Intercreditor
Documents by a duly executed assignment and assumption agreement (the “Assignment of Ancillary
Documents”) in the form attached hereto as Exhibit K delivered through Escrow;

     (g) if prior to Closing Seller becomes aware of any fact or circumstance which makes any
representation or warranty of Seller in this Agreement untrue, then (i) Seller shall promptly
disclose such fact in writing to Buyer, and (ii) at Closing, Seller shall deliver to Buyer a duly
executed original certificate of Seller (“Seller’s Closing Certificate”), dated as of the
Closing Date and executed on behalf of Seller by a duly authorized officer thereof, updating the
representations and warranties contained in Section 5.1, Section 11.3 and
Section 12.3 below to the Closing Date and identifying any representation or warranty
which is not, or no longer is, true and correct and explaining the state of facts giving rise to
the change. Notwithstanding any provision in this Agreement to the contrary, in no event shall
Seller be liable to Buyer for, or be deemed to be in default under this Agreement by reason of,
any such change to a representation or warranty (or the fact any such representation or warranty
was incorrect prior to such change). The occurrence of a change in a representation and warranty
shall, if materially adverse to Buyer and if not cured by Seller prior to Closing, constitute the
non-fulfillment of the condition set forth in Section 4.7(b) hereof. If, despite changes
or other matters described in Seller’s Closing Certificate, the Closing occurs, Seller’s
representations and warranties set forth in this Agreement shall be deemed to have been modified
by all statements made in such certificate;

     (h) deliver to Title Company such evidence as the Title Company may reasonably require as to
the authority of the person or persons executing documents on behalf of Seller;

     (i) deliver to Buyer through Escrow a certificate in the form attached hereto as Exhibit
L duly executed by Seller, stating that Seller is not a “foreign person”, a “foreign
corporation”, a “foreign partnership”, a “foreign trust”, a “foreign estate”, or a “disregarded
entity” as defined in the Federal Foreign Investment in Real Property Tax Act of 1980 and the 1984
Tax Reform Act, along with any applicable State or local law equivalent;

     (j) deliver to Buyer outside of Escrow or at the Properties the Leases together with all
leasing and property files and records which are material in connection with the continued
operation, leasing and maintenance of the Properties, but excluding any Confidential Documents.
Prior to the Closing, Seller may, at its sole cost, make a copy of all files, records and
documents which Seller has delivered to Buyer. In addition, for a period of three (3) years after
the Closing, Buyer shall allow Seller and its representatives access without charge to all files,
records and documents delivered to Buyer at or in connection with the Closing, upon reasonable
advance notice and at reasonable times, to make copies of any and all such files, records and
documents, which right shall survive the Closing;

20

 

     (k) deliver to Buyer possession and occupancy of the Properties, subject to the Permitted
Exceptions

     (1) execute and deliver a closing statement mutually acceptable to Seller and Buyer through
Escrow;

     (m) perform and satisfy all agreements and covenants required hereby to be performed by
Seller prior to or at the Closing; and

     (n) deliver such additional documents as shall be reasonably required to consummate the
transaction contemplated by this Agreement.

     Section 4.3. Buyer’s Obligations at Closing. At, or prior to Closing, Buyer
shall:

     (a) pay to Seller through Escrow the full amount of the Purchase Price (due credit shall be
given for the Deposit as provided herein), as increased or decreased by prorations and adjustments
as herein provided and as adjusted as a result of any Partial Termination of this Agreement in
accordance with the terms herein provided in immediately available wire transferred funds pursuant
to Section 1.5 hereof;

     (b) join Seller in execution and delivery through Escrow of the Assignment of Leases,
Assignment of Ground Lease and the Assignment of Ancillary Documents;

     (c) if prior to Closing Buyer becomes aware of any fact or circumstance which makes any
representation or warranty of Buyer in this Agreement untrue, then (i) Buyer shall promptly
disclose such fact in writing to Seller, and (ii) at Closing, Buyer shall deliver to Seller a duly
executed original certificate of Buyer (“Buyer’s Closing Certificate”), dated as of the
Closing Date and executed on behalf of Buyer by a duly authorized officer thereof, updating the
representations and warranties contained in Section 5.3, Section 11.4 and
Section 12.4 below to the Closing Date and identifying any representation or warranty
which is not, or no longer is, true and correct and explaining the state of facts giving rise to
the change. Notwithstanding any provision in this Agreement to the contrary, in no event shall
Buyer be liable to Seller for, or be deemed to be in default hereunder by reason of, any such
change to a representation or warranty (or the fact any such representation or warranty was
incorrect prior to such change); provided, however, that the occurrence of a change in a
representation or warranty shall, if materially adverse to Seller and if not cured by Buyer prior
to Closing, constitute the non-fulfillment of the conditions set forth in Section 4.8(c)
hereof, and entitle Seller to (among other things) execute its right under Section 1.6(b).
If, despite changes or other matters described in Buyer’s Closing Certificate, the Closing occurs,
Buyer’s representations and warranties set forth in this Agreement shall be deemed to have been
modified by all statements made in such certificate;

     (d) deliver to Title Company such evidence as the Title Company may reasonably require as to
the authority of the person or persons executing documents on behalf of Buyer;

     (e) execute and deliver a closing statement mutually acceptable to Seller and Buyer through
Escrow;

21

 

     (f) perform and satisfy all agreements and covenants required hereby to be performed by Buyer
prior to or at the Closing; and

     (g) execute and deliver to Seller a release of claims (the “Release”) in the form
attached hereto as Exhibit N;

     (h) execute and deliver a legally binding addendum to each LP Agreement (as such term is
defined in Section 12.1 hereof) in accordance with Section 10.8(a) thereof; and

     (i) deliver such additional documents as shall be reasonably required to consummate the
transaction contemplated by this Agreement.

     Section 4.4. Title Company’s Obligations at Closing. Title Company shall undertake
the following at or promptly after Closing:

     (a) If necessary, Title Company is authorized and instructed to insert the date Escrow closes
as the effective date of any documents conveying interests herein or which are to become operative
as of the Closing Date;

     (b) Cause the Deeds and any other recordable instruments which the parties so direct to be
recorded in the Official Records of the Recorder of the County in which the Properties are
located. If permitted by applicable law, Title Company is hereby instructed not to affix the
amount of the documentary transfer tax on the face of the Deeds, but to pay on the basis of a
separate affidavit of Seller not made a part of the public record;

     (c) Cause each non-recorded document to be delivered to the party acquiring rights
thereunder, or for whose benefit such document was obtained;

     (d) Deliver to Buyer the Title Policies; and

     (e) Deliver to Seller the Purchase Price and such other funds, if any, as may be due to
Seller by reason of credits under this Agreement, less all items chargeable to Seller under this
Agreement.

     Section 4.5. Credits and Prorations.

     (a) All Rent and other income and expenses, if any (pursuant to the express terms of any of
the Leases and the Ground Leases), of the Properties shall be apportioned as of 12:01 a.m. on the
day of Closing as if Buyer were vested with title to the Properties during the entire day upon
which Closing occurs. Such prorations, if and to the extent known and agreed upon as of the
Closing, shall be paid by Buyer to Seller (if the prorations result in a net credit to Seller) or
by Seller to Buyer (if the prorations result in a net credit to Buyer) by increasing or reducing
the cash to be paid by Buyer at the Closing. Any such prorations not determined or not agreed upon
as of the Closing shall be paid by Buyer to Seller, or by Seller to Buyer, as the case may be, in
cash as soon as practicable following the Closing.

     (b) Notwithstanding anything contained in Section 4.5(a) hereof:

22

 

          (i) Seller shall be entitled to a credit equal to one hundred percent (100%) of the amount of
all accounts receivable existing as of the Closing Date. A post-Closing true-up shall be performed
ninety (90) days after the Closing Date, at which time Seller shall pay to Buyer an amount equal to
any accounts receivable for which Seller received such a credit at Closing and which were not
received by Buyer from the applicable tenant(s) prior to such true-up. If, subsequent to any such
true-up, Buyer or Seller receives any funds from the tenant(s) from which such accounts receivable
were due, then such funds shall be disbursed (i) first to Seller up to the amount of any such
true-up payment previously made, and (ii) the remainder to Buyer. Subject to its rights under the
preceding sentence to retain funds in repayment of any such true-up payment, Seller shall promptly
deliver to Buyer any payments of Rent which Seller may receive subsequent to the Closing;

          (ii) At Closing, Seller shall, at Seller’s option, either (A) deliver to Buyer any Security
Deposits actually held by Seller pursuant to the Leases (to the extent such Security Deposits have
not been applied against delinquent Rents), or (B) credit to the account of Buyer the amount of
such Security Deposits held by Seller pursuant to the Leases (to the extent such Security Deposits
have not been applied against delinquent Rents);

          (iii) Charges referred to in Section 4.5(a) hereof which are payable by any tenant
directly to a third party shall not be apportioned hereunder, and Buyer shall accept title subject
to any of such charges unpaid and Buyer shall look solely to the tenant responsible therefor for
the payment of such charges. If Seller shall have paid any of such charges on behalf of any
tenant, and shall not have been reimbursed therefor by the time of Closing, Buyer shall credit to
Seller an amount equal to all such charges so paid by Seller; and

          (iv) Seller shall receive a credit equal to the amount of any rent or other expense that has
been paid by Seller pursuant to the Ground Leases prior to Closing and which pertains to any
period after Closing.

     (c) Any additional rent or other expenses due under the Leases or the Ground Leases
(collectively, the “Additional Rents”) shall be prorated on the Closing Date between Buyer
and Seller based on the best estimate of Buyer and Seller (and taking into account the prior year
adjustments). Within three (3) Business Days prior to Closing, Seller shall deliver to Buyer for
its review and approval a statement setting forth its estimate of the proration of such Additional
Rents. Buyer and Seller shall complete a final proration of Additional Rents within ninety (90)
days after Closing. Prior to Closing, Seller shall provide Buyer with information regarding
Additional Rents which were received by Seller prior to closing and the amount of reimbursable
expenses paid by Seller prior to closing. On or before the date which is sixty (60) days after
Closing, Buyer shall deliver to Seller a reconciliation of all expenses reimbursable by tenants
under the Leases, and the amount of Additional Rents received by Seller and Buyer relating thereto
(the “Reconciliation”). Upon reasonable notice and during normal business hours, each
party shall make available to the other all information reasonably required to confirm the
Reconciliation. In the event of any overpayment of Additional Rents by the tenants to Seller,
Seller shall promptly, but in no event later than fifteen (15) days after receipt of the
Reconciliation, pay to Buyer the amount of such overpayment and Buyer, as the landlord under the
particular Leases, shall pay or credit to each applicable tenant the amount of such overpayment.
In the event of an underpayment of Additional Rents by the tenants to Seller,

23

 

Buyer shall pay to Seller the amount of such underpayment within fifteen (15) days following
Buyer’s receipt of any such amounts from the tenants. Notwithstanding anything to the contrary
herein, Seller shall deliver to Buyer or credit against the Purchase Price at Closing any amounts
collected by Seller on account of Additional Rents from tenants, which based upon Seller’s
estimates, exceeds the actual Additional Rent owing from such tenants through the Closing (i.e.,
amounts collected from such tenants on account of Additional Rent in excess of such tenants’ actual
year-to-date share of expenses for which the same have been collected).

     (d) Except as otherwise provided herein, any revenue or expense amount which cannot be
ascertained with certainty as of Closing shall be prorated on the basis of the parties’ reasonable
estimates of such amount, and shall be the subject of a final proration sixty (60) days after
Closing, or as soon thereafter as the precise amounts can be ascertained. Buyer shall promptly
notify Seller when it becomes aware that any such estimated amount has been ascertained. Once all
revenue and expense amounts have been ascertained, Buyer shall prepare, and certify as correct, a
final proration statement which shall be subject to Seller’s approval. Upon Seller’s acceptance
and approval of any final proration statement submitted by Buyer, such statement shall be
conclusively deemed to be accurate and final. Any such revenue or expense amount shall be paid by
Buyer to Seller, or Seller to Buyer, as the case may be, in cash as soon as practicable following
Closing.

     (e) Notwithstanding any provision to the contrary herein or in any other document delivered
in connection with the transactions contemplated hereby, Buyer and Seller hereby agree that in no
event shall Seller have any liability or responsibility for any reimbursement or other obligations
related to any improvements pertaining to the Properties, whether constructed prior to or after
the Closing, and whether arising under the Leases or otherwise. Upon the Closing, Buyer shall
accept the Properties subject to any reimbursement or other obligations or responsibilities that
may now or hereafter exist with regard to any improvements relating to the Properties.

     (f) The provisions of this Section 4.5 shall survive
Closing.

     Section 4.6. Transaction Taxes and Closing Costs.

     (a) Seller and Buyer shall execute such returns, questionnaires and other documents as shall
be required with regard to all applicable real property transaction taxes imposed by applicable
federal, state or local law or ordinance.

     (b) Seller shall pay the fees of any counsel representing Seller in connection with this
transaction. Seller shall also pay the following costs and expenses:

          (i) one-half (1/2) of the escrow fee, if any, which is charged by the Title Company;

          (ii) the premium for the ALTA Standard Coverage Owner’s Policies of Title Insurance and ALTA
Standard Coverage Leasehold Policy of Title Insurance (or their equivalent in applicable
jurisdictions), as applicable, relating to the Properties to be issued to Buyer by the Title
Company at Closing (provided that in no event shall Seller be required to pay more than

24

 

$423,503 for the foregoing, as such amount may be reduced to account for any Properties which
become Deleted Properties or for which a Closing otherwise does not occur) (the “Base Policy
Premium”);

          (iii) the fees for recording the Deeds and any additional recording fees incurred in
connection with the satisfaction of Seller’s obligations hereunder (if any); and

          (iv) such portion, if any, of any documentary transfer tax or similar tax (including, without
limitation, City, County and State documentary transfer taxes, as applicable) which becomes payable
by reason of the transfer of the Properties (collectively, “Transfer Taxes”), and which is
customarily paid by sellers in comparable transactions in the jurisdiction in which each component
of the Property is located.

          (c) Buyer shall pay the fees of any counsel representing Buyer in connection with this

transaction. Buyer shall also pay the following costs and expenses:

          (i) one-half (1/2) of the escrow fee, if any, which is charged by the Title Company;

          (ii) any recording fees incurred in connection with the satisfaction of Buyer’s obligations
hereunder (if any);

          (iii) the premium for the Owner’s Policies of Title Insurance and Leasehold Policy of Title
Insurance to be issued to Buyer by the Title Company at Closing, and the entire cost of all
endorsements thereto, but only to the extent that those costs exceed the cost of the Base Policy
Premium which Seller is required to pay pursuant to Section 4.6(b)(ii);

          (iv) the cost of any New Surveys and Buyer’s own due diligence expenses; and

          (v) such portion, if any, of the Transfer Taxes as is customarily paid by buyers in
comparable transactions in the jurisdiction in which each component of the Property is located.

     (d) The Personal Property is included in this sale without charge and without any allocation
of Purchase Price thereto, however, Buyer shall be responsible for the amount of any and all sales
or similar taxes payable in connection with the transfer of the Personal Property.

     (e) All costs and expenses incident to this transaction and the Closing thereof, and not
specifically described above shall be paid by the party incurring same.

     (f) The provisions of this Section 4.6 shall survive the Closing.

     Section 4.7. Conditions Precedent to Obligation of Buyer. The obligation of Buyer to
consummate the transaction contemplated hereunder shall be subject to the fulfillment on or before
the date of Closing of all of the conditions set forth in this Section 4.7, any or all of
which may be waived by Buyer in its sole and absolute discretion. In the event Buyer terminates
this Agreement, which termination shall apply to all, but not less than all, of the Properties,
due to the

25

 

nonsatisfaction of any such conditions, then the termination provisions set forth in Section
3.6 above shall apply.

     (a) Seller shall have delivered to Buyer (or to Buyer through the Title Company) all
of the items required to be delivered to Buyer pursuant to the terms of this Agreement,
including
but not limited to, those provided for in Section 4.2 hereof;

     (b) All of the representations and warranties of Seller contained in this Agreement
shall be true and correct in all material respects as of the Closing Date as if made at and as
of
such time (with appropriate modification as permitted under this Agreement);

     (c) Seller shall have performed and observed, in all material respects, all covenants
and agreements of this Agreement to be performed and observed by Seller as of the date of
Closing;

     (d) The Title Company shall have issued or is irrevocably committed to issue the
Title Policies;

     (e) This Agreement and the transactions contemplated hereby shall have been
approved by the Board of Directors of Medical Properties Trust, Inc., which approval Buyer
shall seek to obtain on or prior to March 19, 2008;

     (f) Except with respect to any condemnation or eminent domain matters, which shall
be governed by Article VII hereof, there shall not have been instituted by any
creditor of Seller,
any governmental or quasi-government authority or any other third party, any suit, action or
proceeding which would materially and adversely affect the Properties or which would prevent
Seller from consummating the transactions contemplated by this Agreement;

     (g) The Board of Directors of Seller shall have approved the transactions
contemplated by this Agreement on or before the date that is the later of (i) seven (7) days
after
the expiration of the Contingency Period, and (ii) March 26, 2008, the failure of which shall
give
rise to Buyer’s right to terminate this Agreement;

     (h) Seller shall have obtained all approvals and consents necessary for Seller’s transfer or
sale of the Properties as contemplated by this Agreement, and such estoppel certificates as are
required to be obtained under this Agreement; provided, however, that failure to obtain any
consent described in Section 11.5(c) or Section 12.5(c) hereof (i) shall result
only in Buyer’s right to refrain from consummating the acquisition of the specific Property for
which such consent is not obtained until such time as such consent is obtained, and (ii) shall not
affect or delay the Closing of the other Properties;

     (i) All Pre-Emptive Rights Holders (as defined below) shall have either waived or exercised
their Pre-Emptive Rights (as defined below); provided, however, that failure of this condition to
be satisfied (i) shall result only in Buyer’s right to refrain from consummating the acquisition
of the specific Pre-Emptive Right Property or Pre-Emptive Right Properties for which the
applicable Pre-Emptive Rights have not been waived or exercised, and (ii) shall not affect or
delay the Closing of the other Properties; and

26

 

     (j) With respect to the Ground Lease Properties, Seller shall have obtained all consents
required in connection with the assignment of Seller’s right, title and interest under the Ground
Leases.

     Section 4.8. Conditions Precedent to Obligation of Seller. The obligation of Seller
to consummate the transactions contemplated hereunder shall be subject to the fulfillment on or
before the date of Closing of all of the following conditions, any or all of which may be waived
by Seller in its sole and absolute discretion:

     (a) Seller shall have received the Purchase Price as adjusted as provided herein, and
payable in the manner provided for in this Agreement;

     (b) Buyer shall have delivered to Seller (or to Seller through the Title Company) all
of the items required to be delivered to Seller pursuant to the terms of this Agreement,
including
but not limited to, those provided for in Section 4.3 hereof;

     (c) All of the representations and warranties of Buyer contained in this Agreement
shall be true and correct in all material respects as of the date of Closing (with appropriate
modification as permitted under this Agreement);

     (d) Buyer shall have performed and observed, in all material respects, all covenants
and agreements of this Agreement to be performed and observed by Buyer as of the date of
Closing;

     (e) Seller shall have obtained all approvals and third party consents necessary for the
transfer or sale of the Properties as contemplated by this Agreement; provided, however, that
failure to obtain any consent described in Section 11.5(c) or Section 12.5(c)
hereof (i) shall result
only in Seller’s right to refrain from consummating the acquisition of the specific Property
for
which such consent is not obtained until such time as such consent is obtained, and (ii) shall
not
affect or delay the Closing of the other Properties;

     (f) With respect to the Ground Lease Properties, Seller shall have obtained all consents
required in connection with the assignment of Seller’s right, title and interest under the Ground
Leases, and a release of Seller and its affiliates from their obligations under or with respect to
such Ground Leases and/or the Ground Lease Properties;

     (g) This Agreement and the transactions contemplated hereby shall have been ratified by the
Board of Directors of Seller, which ratification Seller shall seek to obtain on or prior to the
date that is the later of (i) seven (7) days after the expiration of the Contingency Period, and
(ii) March 26, 2008;

     (h) The Board of Directors of Medical Properties Trust, Inc. shall have approved the
transactions contemplated by this Agreement on or prior to March 19, 2008, the failure of which
shall give rise to Seller’s right to terminate this Agreement; and

     (i) All Pre-Emptive Right Holders (as defined below) shall have either waived or exercised
their Pre-Emptive Rights (as defined below); provided, however, that failure of this condition to
be satisfied (i) shall result only in Seller’s right to refrain from consummating the

27

 

acquisition of the specific Pre-Emptive Right Property or Pre-Emptive Right Properties for which
the applicable Pre-Emptive Rights have not been waived or exercised, and (ii) shall not affect or
delay the Closing of the other Properties.

     Section 4.9. Pre-Emptive Rights. Buyer acknowledges and agrees that certain tenants
(or their affiliates) or other third parties have or may have certain rights of first refusal,
rights of first offer or other similar rights (any such right being referred to herein as a
“Pre-Emptive Right”) affecting the Properties (each individually a “Pre-Emptive Right
Property”). Seller shall promptly deliver to the current holder of each Pre-Emptive Right (each, a
“Pre-Emptive Right Holder”), such notice as is necessary to validly comply with Seller’s
obligations with respect to the applicable Pre-Emptive Right. Seller shall keep Buyer apprised of
the status of any Pre-Emptive Right request. If any Pre-Emptive Right is properly exercised by the
Pre-Emptive Right Holder, then Seller shall give Buyer prompt written notice thereof and this
Agreement shall be Partially Terminated with respect to such Pre-Emptive Right Property.

     Section 4.10. Termination of Agreement With Respect to Certain Properties. The
termination of this Agreement as to any particular Property pursuant to Section 4.9 or
Section 3.7 is referred to herein as a “Partial Termination” and any such Property
is referred to herein as a “Deleted Property.” In the event of any Partial Termination, (i) Buyer
and Seller shall remain obligated to effectuate the transactions contemplated hereunder with
respect to all other Properties upon the terms and conditions set forth in this Agreement, (ii)
the Purchase Price payable on the Closing Date for all the other Properties shall be reduced by
the Allocated Purchase Price of the Deleted Property(ies), (iii) each party shall promptly execute
and deliver to Title Company such documents as Title Company may reasonably require to evidence
the withdrawal of such Deleted Property(ies), (iv) all instruments in escrow with respect to such
Deleted Property shall be returned to the party depositing the same, (v) at the request of Seller,
Buyer shall return all items relating to such Deleted Property(ies) previously delivered to Buyer
and copies of any reports, surveys or other studies or investigations prepared or received by
Buyer solely relating to such Deleted Property(ies), and (vi) no party shall have any further
rights, obligations or liabilities whatsoever to the other parties concerning such Deleted
Property(ies) by reason of this Agreement, except for any indemnity obligations of any party with
respect to such Deleted Property(ies) pursuant to the provisions of this Agreement or otherwise
expressly stated in this Agreement to survive termination with respect to the Properties. The
Deposit shall not be reduced as a result of any withdrawal of one or more Deleted Properties. The
provisions of this Section 4.10 shall survive the Closing or any earlier termination of
this Agreement.

     Section 4.11. UCC Financing Statements. Buyer hereby acknowledges that Uniform
Commercial Code financing statements and/or fixture filings have or may have been filed in order
to perfect or continue the perfection of Seller’s security interest in the personal property and
other intangible property of the tenants under the Leases. Upon the Closing, Buyer shall file such
Uniform Commercial Code termination statements or amendments with the appropriate filing offices
as are necessary to either substitute Buyer as the secured party thereunder in lieu of the
applicable Seller entity or release Seller’s security interests with respect to the personal
property and other intangible property of the tenant’s under the Leases; provided, however, that
any and all such Uniform Commercial Code termination statements or amendments shall be prepared
and recorded at Buyer’s sole cost and expense.

28

 

ARTICLE V

REPRESENTATIONS, WARRANTIES AND COVENANTS

     Section 5.1. Representations and Warranties of Seller. The term “Knowledge” as used
herein with respect to Seller, shall mean the current actual and not implied or constructive
knowledge, without the duty of investigation or independent inquiry, of Thomas Kirby, Susan Tate
and Darrin Smith. Seller hereby represents and warrants to Buyer as of the Effective Date and as of
the Closing Date that:

     (a) Organization and Qualification.

          (i) HCP has been duly organized, is validly existing under the laws of the State of Maryland,
and (either itself or through a name under which HCP is doing business in certain jurisdictions as
set forth in Schedule 5.1 (a)) is qualified to do business and is in good standing (or is
in existence with respect to the Property located in West Virginia) in the States in which its
Properties are located.

          (ii) FAEC has been duly organized, is validly existing under the laws of the State of
Delaware, and is qualified to do business and is in good standing in the State in which its
Properties are located.

          (iii) HCPIT has been duly organized, is validly existing under the laws of the State of
Maryland, and is qualified to do business and is in good standing in the States in which its
Properties are located.

          (iv) THH has been duly organized, is validly existing under the laws of the State of
Delaware, and is qualified to do business and is in good standing in the States in which its
Properties are located.

     (b) Authority. Subject to the satisfaction or, if applicable, waiver of the
conditions
set forth in Section 4.8 and Section 4.9 above (i) Seller has, or will have
prior to Closing, the
requisite power and authority to execute, deliver and carry out the terms of this Agreement,
together with all documents and agreements necessary to give effect to the provisions of this
Agreement, and to consummate the transactions contemplated hereby and thereby; and (ii) all
corporate or company actions required to be taken by Seller (including, without limitation,
all
necessary actions by the shareholders, directors, managers, members and partners of Seller) to
authorize the execution, delivery and performance of this Agreement and all other documents,
agreements and instruments executed by Seller which are necessary to give effect thereto
(collectively, the “Seller Instruments”) and all transactions contemplated hereby and thereby,
have been duly and properly taken or obtained (or will be taken or obtained prior to Closing)
in
accordance and compliance with Seller’s charter, articles or certificate of incorporation,
formation or organization, bylaws or other documents or instruments which establish and/or set
forth the rules, procedures and rights with respect to Seller’s governance, including, without
limitation, any stockholders, limited liability company, operating or partnership agreement
related to Seller, in each case as amended, restated, supplemented and/or modified and in
effect
as of the date hereof (collectively, “Governing Documents”). Except for the action of
Seller’s
Board of Directors or other governing body, no other action on the part of Seller, or Seller’s

29

 

shareholders, directors, managers, members or partners, is necessary to authorize the execution,
delivery and performance of this Agreement, the Seller Instruments, or the transactions
contemplated hereby or thereby. Subject to the satisfaction of the condition set forth in
Section 4.8(g) hereof, this Agreement, the Seller Instruments, and all agreements to which
Seller will become a party hereunder are and will constitute the valid and legally binding
obligations of Seller, and are and will be enforceable against Seller in accordance with the
respective terms hereof or thereof, except as enforceability may be restricted, limited or delayed
by applicable bankruptcy, insolvency or other similar laws affecting creditors’ rights generally
and except as enforceability may be subject to and limited by general principles of equity
(regardless of whether considered in a proceeding in equity or at law) and by agreement of the
parties and set forth in this Agreement.

     (c) Absence of Conflicts. Seller’s execution, delivery and performance of this
Agreement and the Seller Instruments, and the consummation of the transactions contemplated
hereby and thereby, will not, with or without the giving of notice and/or the passage of time:
(i)
violate or conflict with any provision of any of Seller’s Governing Documents; (ii) to
Seller’s
Knowledge, violate any provision of any applicable law, rule or regulation to which Seller or
any
of its shareholders, members, managers or partners is subject; (iii) violate or conflict with
any
judgment, order, writ or decree of any court applicable to Seller; or (iv) to Seller’s
Knowledge,
result in or cause the creation of a lien or other encumbrance on the Properties.

     (d) Consents and Approvals. To Seller’s Knowledge, no license,
permit,
qualification, order, consent, authorization, approval or waiver of, or registration,
declaration or
filing with, or notification to, any Governmental Entity (as hereinafter defined) or other
third
party is required to be made or obtained by or with respect to Seller in connection with the
execution, delivery and performance of this Agreement or the Seller Instruments by Seller or
the
consummation of the transactions contemplated hereby or thereby, except for such filing
statements as may be required in connection with the recordation of the Deeds and the
Assignment of Ground Leases. As used herein, the term “Governmental Entity” means
any
national, federal, regional, state, local, provincial, municipal, foreign or multinational
court or
other governmental or regulatory authority, administrative body or government, department,
board, body, tribunal, instrumentality or commission.

     (e) Seller Not a Foreign Person; Patriot Act Compliance.

          (i) Seller is not a “foreign person” within the meaning of Section 1445(f)(3) of the Internal
Revenue Code of 1986, as amended.

          (ii) To the extent applicable to Seller, Seller has complied in all material respects with
the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, which
comprises Title III of the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001 (the “Patriot Act”) and the regulations
promulgated thereunder, and the rules and regulations administered by the U.S. Treasury
Department’s Office of Foreign Assets Control (“OFAC”), to the extent such Laws are applicable to
Seller. Seller is not included on the List of Specially Designated Nationals and Blocked Persons
maintained by the OFAC, or is a resident in, or organized or chartered under the laws of, (A) a
jurisdiction that has been designated by the U.S. Secretary of the Treasury under

30

 

Section 311 or 312 of the Patriot Act as warranting special measures due to money laundering
concerns or (B) any foreign country that has been designated as non-cooperative with international
anti-money laundering principles or procedures by an intergovernmental group or organization, such
as the Financial Action Task Force on Money Laundering, of which the United States is a member and
with which designation the United States representative to the group or organization continues to
concur.

     (f) Litigation. To Seller’s Knowledge, except as disclosed on Schedule
5.1(f)
attached hereto, Seller has not received written notice of any action, suit, arbitration,
unsatisfied
order or judgment, government investigation or proceeding pending against Seller which, if
adversely determined, could individually or in the aggregate materially and adversely affect
the
Properties or otherwise materially interfere with the consummation of the
transaction
contemplated by this Agreement. 

     (g) Leases, Guarantees and Letters of Credit. Schedule 1.1 (d) attached hereto
contains a true and correct list of the Leases. Schedule 5.1 (g) contains a true and
correct list of
the guarantees and the letters of credit (and, in the case of any Leases that provide for cash
deposits in lieu of letters of credit, such cash deposits) which have been provided to Seller
in
connection with the Leases, and all amendments thereto. Seller has not made any pledges or
assignments of Seller’s interest in the Leases, such guarantees, such letters of credit or
cash
deposits, or any of the Security Documents, Acquisition Documents or Intercreditor Documents,
for the benefit of third parties which shall remain in effect after the Closing.

     (h) Compliance with Environmental Laws. Except as disclosed in any of the
Environmental Reports, or any of the Property Documents or other materials provided or made
available by Seller or its agents to Buyer, or in any matter disclosed in any written reports,
surveys or other studies or investigations commissioned by Buyer or its agents, attorneys or
representatives:

          (i) to Seller’s Knowledge, no Governmental Entity nor any nongovernmental third party has
delivered written notice to Seller of any alleged violation or investigation of any suspected
violation under the Environmental Laws (as hereinafter defined) in connection with the Real
Property or the Improvements;

          (ii) to Seller’s Knowledge, there has been no release of any Hazardous Materials (as
hereinafter defined) by or at the direction of Seller at, on, under or from any of the Properties
which would constitute a violation of applicable law and which has not been remedied prior to the
date hereof;

          (iii) to Seller’s Knowledge, there are no conditions presently existing on, at or emanating
from the Real Property or the operation of the Improvements, that may result in any liability,
investigation or clean-up cost under any Environmental Law;

          (iv) to Seller’s Knowledge, no administrative order, litigation or settlement with respect to
any Hazardous Material is in existence, nor threatened, with respect to the Real Property; and

31

 

          (v) to Seller’s Knowledge, no written notice has been served on Seller from any Governmental
Entity claiming any violation of any Environmental Law, or requiring compliance with any
Environmental Law, or demanding payment or contribution for environmental damage or injury to
natural resources.

     As used herein, the term “Environmental Law” means each federal, state, local and
foreign law and regulation relating to pollution, protection or preservation of human health or the
environment, including ambient air, surface water, ground water, land surface or subsurface strata,
and natural resources, and including each law and regulation relating to emissions, discharges,
releases or threatened releases of Hazardous Materials, or otherwise relating to the manufacturing,
processing, distribution, use, treatment, generation, storage, containment (whether above ground or
underground), disposal, transport or handling of Hazardous Materials, or the preservation of the
environment or mitigation of adverse effects thereon and each law and regulation with regard to
record keeping, notification, disclosure and reporting requirements respecting Hazardous Materials,
including, without limitation, the Resource Conservation and Recovery Act of 1976, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the
Superfund Amendments and Reauthorization Act of 1986, the Hazardous Materials Transportation Act,
the Federal Water Pollution Control Act, the Clean Air Act, the Clean Water Act, the Toxic
Substances Control Act, the Safe Drinking Water Act, and all similar federal, state and local
environmental statutes, ordinances and the regulations, orders, or decrees now or hereafter
promulgated thereunder, in each case as amended from time to time.

     As used herein, the term “Hazardous Materials” means any substance deemed hazardous
under any Environmental Law, including, without limitation, asbestos or any substance containing
asbestos, the group of organic compounds known as polychlorinated biphenyls, flammable explosives,
radioactive materials, infectious wastes, biomedical and medical wastes, chemicals known to cause
cancer or reproductive toxicity, lead and lead-based paints, radon, pollutants, effluents,
contaminants, emissions or related materials and any items included in the definition of hazardous
or toxic wastes, materials or substances under any Environmental Law.

     Section 5.2. Survival of Seller’s Representations and Warranties. The representations
and warranties of Seller set forth in this Section 5.1, Section 11.3 and Section
12.3, as updated in accordance with the terms of this Agreement, and/or set forth in any
estoppel certificate or other document or agreement delivered by Seller pursuant to this Agreement
or in connection with the consummation of the transactions contemplated hereby (all such
representations and warranties of Seller, collectively, the “Seller’s Representations”), shall
survive Closing for a period of twelve (12) months. No claim for a breach of any Seller’s
Representation shall be actionable or payable unless each of the following conditions is
satisfied: (a) the valid claims for all such breaches, if any, collectively aggregate more than
Five Hundred Thousand Dollars ($500,000), (b) written notice containing a description of the
nature of such breach shall have been given by Buyer to Seller prior to the expiration of said
twelve (12) month period and an action shall have been commenced by Buyer against Seller within
sixty (60) days after the termination of the survival period provided for above in this
Section 5, and (c) the Closing has occurred and Buyer did not have knowledge that the
applicable Seller’s Representation was incorrect prior to Closing. Buyer agrees to first seek
recovery under any insurance policies, the Title Policies and other applicable agreements prior to
seeking recovery from Seller, and Seller shall not be liable

32

 

to Buyer to the extent Buyer’s claim is actually satisfied from such insurance policies, Title
Policies or other applicable agreements. Upon delivery of the Tenant Estoppels or Lessor Estoppel,
Seller shall be entirely released from any liability under Seller’s Representations concerning the
information contained in such Tenant Estoppels or Lessor Estoppel, as applicable, to the extent the
same is consistent with, or more favorable than, the information contained in Seller’s
Representations. Notwithstanding any provision of this Agreement to the contrary, in no event shall
(i) Seller’s aggregate liability to Buyer for breach of any Seller’s Representations exceed an
amount equal to one percent (1%) of the Purchase Price, or (ii) Seller be liable for any
consequential damages of Buyer or any punitive damages.

     Section 5.3. Representations and Warranties of Buyer. The term “Knowledge” as used
herein with respect to Buyer, shall mean the current actual and not implied or constructive
knowledge, and without the duty of investigation or independent inquiry, of R. Steven Hamner.
Buyer hereby represents and warrants to Seller as of the Effective Date and as of the Closing Date
that:

     (a) Organization. Buyer has been duly organized and is validly existing and in good
standing under the laws of its State of incorporation/formation and is, or will be prior to
Closing,
in good standing in the States in which the Properties are located.

     (b) Authority. Subject to the satisfaction or, if applicable, waiver of the
conditions
set forth in Section 4.7 above (i) Buyer has, or will have prior to Closing, the
requisite power and
authority to execute, deliver and carry out the terms of this Agreement, together with all
documents and agreements necessary to give effect to the provisions of this Agreement, and to
consummate the transactions contemplated hereby and thereby; and (ii) all corporate or company
actions required to be taken by Buyer (including, without limitation, all necessary actions by
the
shareholders, directors, managers, members and partners of Buyer) to authorize the execution,
delivery and performance of this Agreement and all other documents, agreements and
instruments executed by Buyer which are necessary to give effect thereto (collectively, the
“Buyer Instruments”) and all transactions contemplated hereby and thereby, have been duly and
properly taken or obtained (or will be taken or obtained prior to Closing) in accordance and
compliance with Buyer’s Governing Documents. Except for the action of Buyer’s Board of
Directors or other governing body, no other action on the part of Buyer, or Buyer’s
shareholders,
directors, managers, members or partners, is necessary to authorize the execution, delivery
and
performance of this Agreement, the Buyer Instruments, or the transactions contemplated hereby
or thereby. Subject to the satisfaction of the condition set forth in Section 4.8(h)
hereof, this
Agreement, the Buyer Instruments, and all agreements to which Buyer will become a party
hereunder are and will constitute the valid and legally binding obligations of Buyer, and are
and
will be enforceable against Buyer in accordance with the respective terms hereof or thereof,
except as enforceability may be restricted, limited or delayed by applicable bankruptcy,
insolvency or other similar laws affecting creditors’ rights generally and except as
enforceability
may be subject to and limited by general principles of equity (regardless of whether
considered
in a proceeding in equity or at law) and by agreement of the parties and set forth in this
Agreement.

     (c) Absence of Conflicts. Buyer’s execution, delivery and performance of this
Agreement and the Buyer Instruments, and the consummation of the transactions contemplated

33

 

hereby and thereby, will not, with or without the giving of notice and/or the passage of time: (i)
violate or conflict with any provision of any of Buyer’s Governing Documents; (ii) to Buyer’s
Knowledge, violate any provision of any applicable law, rule or regulation to which Buyer or any
of its shareholders, members, managers or partners is subject; or (iii) violate or conflict with
any judgment, order, writ or decree of any court applicable to Buyer.

     (d) Consents and Approvals. To Buyer’s Knowledge, no license,
permit,
qualification, order, consent, authorization, approval or waiver of, or registration,
declaration or
filing with, or notification to, any Governmental Entity (as hereinafter defined) or other
third
party is required to be made or obtained by or with respect to Buyer in connection with the
execution, delivery and performance of this Agreement or the Buyer Instruments by Buyer or the
consummation of the transactions contemplated hereby or thereby.

     (e) Absence of Litigation. There is no action, suit, arbitration, unsatisfied order
or
judgment, government investigation or proceeding pending against Buyer which, if adversely
determined, could individually or in the aggregate materially interfere with the consummation
of
the transaction contemplated by this Agreement.

     (f) No Bankruptcy. Buyer has not made a general assignment for the benefit of
creditors or filed a petition for voluntary bankruptcy or filed a petition or answer seeking
reorganization or an arrangement or composition, extension or readjustment of its
indebtedness,
and to Buyer’s Knowledge no involuntary bankruptcy action has been filed or threatened against
Buyer.

     (g) ERISA Compliance. Buyer is not acquiring the Property with the assets of an
“employee benefit plan” under, and as such term is defined in, the Employee Retirement Income
Security Act of 1974.

     (h) Patriot Act Compliance. To the extent applicable to Buyer, Buyer has complied in
all material respects with the International Money Laundering Abatement and Anti-Terrorist
Financing Act of 2001, which comprises Title III of the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “Patriot
Act”) and the regulations promulgated thereunder, and the rules and regulations administered by
the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”), to the extent such Laws
are applicable to Buyer. Buyer is not included on the List of Specially Designated Nationals and
Blocked Persons maintained by the OFAC, or is a resident in, or organized or chartered under the
laws of, (A) a jurisdiction that has been designated by the U.S. Secretary of the Treasury under
Section 311 or 312 of the Patriot Act as warranting special measures due to money laundering
concerns or (B) any foreign country that has been designated as non-cooperative with international
anti-money laundering principles or procedures by an intergovernmental group or organization, such
as the Financial Action Task Force on Money Laundering, of which the United States is a member and
with which designation the United States representative to the group or organization continues to
concur.

     (i) Compliance at Closing. The representations and warranties contained in this
Section 5.3, Section 11.4 and Section 12.4 shall be deemed to have been made again
as of the Closing, subject to Section 4.3(c) hereof.

34

 

     Section 5.4. Survival of Buyer’s Representations and Warranties. The representations
and warranties of Buyer set forth in Section 5.3, Section 11.4 and Section 12.4
hereof as updated as of the Closing in accordance with the terms of this Agreement, shall survive
Closing for a period of twelve (12) months. No claim for a breach of any representation or warranty
of Buyer shall be actionable or payable unless each of the following conditions is satisfied: (a)
the valid claims for all such breaches, if any, collectively aggregate more than Five Hundred
Thousand Dollars ($500,000), and (b) written notice containing a description of the nature of such
breach shall have been given by Seller to Buyer prior to the expiration of said twelve (12) month
period. Notwithstanding any provision of this Agreement to the contrary, in no event shall (i)
Buyer’s liability to Seller for breaches of any representations or warranties of Buyer in this
Agreement or the Buyer’s Closing Certificate exceed an amount equal to one percent (1%) of the
Purchase Price, or (ii) Buyer be liable for any consequential damages of Seller or any punitive
damages. The provisions of this Section 5.4 shall be subject to the provisions of
Section 1.6(b), and nothing in this Section 5.4 shall limit or restrict in any way
Seller’s right to receive the Deposit as liquidated damages in accordance with Section
1.6(b).

     Section 5.5. Covenants of Seller. From the date hereof until the Closing Date or the
sooner termination of this Agreement:

     (a) Maintenance/Operation. Seller shall conduct its business with respect to the
Properties in a reasonable and prudent manner in the ordinary course of its business
consistent
with past practice.

     (b) Leases. After the date that is three (3) Business Days prior to the expiration of
the
Contingency Period, Seller shall not enter into a new lease; modify or amend any Lease (except pursuant to the exercise by a tenant thereunder of a renewal, extension or expansion option or
other right expressly contained in such tenant’s Lease); consent to any assignment or sublease
in
connection with any Lease; or remove any tenant under any Lease, whether by summary
proceedings or otherwise. Seller shall furnish Buyer with a written notice of any of the
foregoing proposed actions which shall contain detailed information regarding the proposed
action, reasonably necessary to enable Buyer to make informed decisions with respect to the
advisability of the proposed action. If Buyer fails to object in writing to any such
proposed
action within five (5) Business Days after receipt of the aforementioned information, Buyer
shall
be deemed to have approved the proposed action (with the understanding that Buyer’s reasonable
request for additional information shall not be deemed to constitute Buyer’s failure to object
or
respond within such five (5) Business Day period). Except as otherwise set forth herein, on
or
before the Closing Date, Seller shall pay any and all brokerage fees and commissions
associated
with the leasing of any space within the Properties to tenants under Leases existing as of the
Closing Date.

     (c) Representations and Warranties. Seller shall not take any action that would cause
any of the representation or warranties of Seller contained herein (with appropriate
modifications
permitted under this Agreement), to become inaccurate in any material respect or any of the
covenants of Seller to be breached in any material respect. If at any time after execution of
this
Agreement and prior to Closing, Seller becomes aware of any fact or information which makes a
representation or warranty of Buyer contained in this Agreement untrue in any material
respect,
Seller shall promptly disclose such fact in writing to Buyer.

35

 

     (d) No Shop. Neither Seller, nor any investment banker, attorney, accountant,
representative or other person or entity retained by or on behalf of Seller, shall directly or
indirectly, enter into any binding agreement with any other person or entity (other than Buyer or
its designees) regarding the sale, lease, transfer or other disposition of any of the Properties.
Nothing herein is intended to prevent Seller or its representatives from initiating contact with,
responding to, soliciting or encouraging any inquiries, proposals or offers by, or participating
in any discussions or negotiations with respect to a sale, lease, transfer, or other disposition
relating to the Properties. The provisions of this Section 5.5(d) shall not survive the
termination of this Agreement in the event the Closing does not occur.

     Section 5.6. Covenants of Buyer. Until the Closing Date or the sooner termination of
this Agreement:

     (a) 1031 Exchange. Seller may be selling the Properties (or portions thereof) as part
of a multi-property transaction to qualify as a tax-free exchange, including potentially a
so-called
reverse Starker exchange (“1031 Exchange”) under Section 1031 of the Internal Revenue Code
of 1986, as amended. Buyer shall, to the extent provided below, cooperate with Seller’s
request
to allow Seller to attempt to qualify for the 1031 Exchange, including, without limitation:
(i)
executing and delivering amendments to this Agreement and/or amendments to and restatements
of this Agreement so that the transactions contemplated hereby are incorporated into one or
more
cross-contingent agreements; (ii) executing and delivering one or more assignments of this
Agreement or any of the agreements described in the preceding clause (i) from Buyer to an
affiliate of Buyer or by any Seller to an affiliate of Seller or to a qualified exchange
accommodator of Seller or such affiliate; and (iii) executing and delivering such other
documents; provided, however, in each case that Buyer’s obligation to cooperate with Seller
shall be limited and conditioned as follows: (w) Buyer shall receive written notice from
Seller
prior to the scheduled Closing Date, which shall identify the parties involved in such 1031
Exchange and enclose all documents for which Buyer’s signature shall be required, (x) in no
event shall Buyer be required to execute any document or instrument which may (A) subject
Buyer to any additional liability or obligation to Seller or any other individual, entity or
governmental agency, or (B) diminish or impair Buyer’s rights under this Agreement, (y) Seller
shall not be relieved of any of its obligations under this Agreement by reason of the 1031
Exchange, and (z) Buyer shall not be required to incur any material costs or expenses in
connection with the 1031 Exchange. Seller’s failure to effectuate any intended 1031 Exchange
shall not relieve Seller from its obligations to consummate the purchase and sale transaction
contemplated by this Agreement and the consummation of such 1031 Exchange shall not be a
condition precedent to Seller’s obligations under this Agreement.

     (b) Representations and Warranties. Buyer shall not take any action that would cause
any of the representation or warranties of Buyer contained herein (with appropriate
modifications
permitted under this Agreement) to become inaccurate in any material respect or any of the
covenants of Buyer to be breached in any material respect. If at any time after execution of
this
Agreement and prior to Closing, Buyer becomes aware of any fact or information which makes a
representation or warranty of Seller contained in this Agreement untrue in any material
respect,
Buyer shall promptly disclose such fact in writing to Seller.

     (c) Ground Leases. Buyer shall cooperate with Seller’s efforts to obtain the consent
of the lessors under the Ground Leases to the proposed assignment of Seller’s right, title and

36

 

interest as tenant/lessee under the Ground Leases and the release of Seller and its affiliates
from all obligations pertaining to the Ground Leases and/or the Ground Lease Properties. Such
cooperation shall include, but not be limited to, the submission to such lessors of any
information reasonably requested by such lessors.

ARTICLE VI

DEFAULT

     Section 6.1. Default by Buyer. If the sale of the Properties as contemplated
hereunder is not consummated due to Buyer’s material default hereunder, then Seller shall be
entitled, as its sole and exclusive remedy, to terminate this Agreement and retain the Deposit as
liquidated damages as more particularly set forth in Section 1.6 above.

     Section 6.2. Default by Seller.

     (a) If the sale of the Properties as contemplated hereunder is not consummated due to
Seller’s material default hereunder or failure of the condition set forth in Section 4.7(b) to
be
satisfied (provided Buyer has promptly notified Seller when it becomes aware that such
condition has not been satisfied) then Buyer shall be entitled, as its sole and exclusive
remedy, to
(i) receive (x) the return of the Deposit which return shall operate to terminate this
Agreement
and release Seller from any and all liability hereunder (other than those obligations that
expressly
survive a termination of this Agreement), and (y) in connection with any such termination, and
solely with regard to any such material Seller default of which Buyer does not have knowledge
prior to the expiration of the Contingency Period, Buyer shall be entitled to receive the
actual
documented out-of-pocket costs that it has theretofore incurred for third party consultants
and
attorneys’ fees in connection with its diligence reviews and investigations of the Properties,
not
to exceed the aggregate amount of One Million Dollars ($1,000,000), or (ii) solely in the case
of
the failure of the sale to be consummated due to Seller’s material default hereunder, to
enforce
specific performance of Seller’s obligation to consummate this transaction as contemplated by
this Agreement. Buyer shall be deemed to have elected to terminate this Agreement and receive
back the Deposit if Buyer fails to file suit for specific performance against Seller in a
court
having jurisdiction in the county and state in which the Property is located, on or before
thirty
(30) days following the date upon which Closing was to have occurred.

     (b) AS A MATERIAL CONSIDERATION FOR SELLER ENTERING INTO THIS
AGREEMENT, BUYER EXPRESSLY WAIVES FOR ANY DEFAULT BY SELLER (A) ANY
RIGHT UNDER ANY STATE OR FEDERAL STATUTE, OR AT COMMON LAW OR
OTHERWISE TO RECORD OR FILE A LIS PENDENS OR A NOTICE OF PENDENCY OF
ACTION OR SIMILAR NOTICE AGAINST ALL OR ANY PORTION OF THE PROPERTIES,
(B) ANY RIGHT TO SEEK DAMAGES IN THE EVENT OF SELLER’S DEFAULT
HEREUNDER, AND (C) ITS RIGHT TO BRING ANY ACTION THAT WOULD IN ANY WAY
AFFECT TITLE TO OR RIGHT OF POSSESSION OF ALL OR ANY PORTION OF THE
PROPERTIES. BUYER ACKNOWLEDGES AND AGREES THAT PRIOR TO THE CLOSING,
BUYER SHALL NOT HAVE ANY RIGHT, TITLE OR INTEREST IN AND TO THE
PROPERTIES OR ANY PORTION THEREOF. BUYER HEREBY EVIDENCES ITS SPECIFIC
AGREEMENT TO THE TERMS OF THIS WAIVER BY PLACING ITS SIGNATURE OR
INITIALS IN THE SPACE PROVIDED HEREINAFTER.

[Buyer’s and Seller’s initials on following page]

37

 

	 	 	 	 	 	 	 	 	 
	 

	 	/s/ MGS	 	 	 	/s/ BJM	 	 
	 

	 	 

Buyer’s Initials
	 	 	 	 

Seller’s Initials on behalf of
	 	 
	 

	 	 	 	 	 	HCP, FAEC, HCPIT,	 	 
	 

	 	 	 	 	 	HCPDAS and THH	 	 
	 
	 	 	 	 	 	 	 	 

38

 

     Section 6.3. Recoverable Damages. Notwithstanding Section 6.1 and Section
6.2 hereof, in no event shall the provisions of Section 6.1 and Section 6.2 limit the damages recoverable by either party against the other party due to the other party’s
obligation to indemnify such party in accordance with this Agreement or the non-prevailing party’s
obligation to pay the prevailing party’s attorneys’ fees and costs pursuant to Section
10.16 hereof.

ARTICLE VII

RISK OF LOSS

     Section 7.1. Risk of Loss. In the event of loss or damage to the Properties or any
portion thereof due to casualty or condemnation, this Agreement shall remain in full force and
effect without any reduction in the Purchase Price, provided that at Closing Seller shall assign
to Buyer all of Seller’s right, title and interest in and to any claims and proceeds Seller may
have with respect to any casualty insurance policies or condemnation awards relating to the
Properties; provided, however, that if any such loss or damage to the Properties exceeds Twenty
Million Dollars ($20,000,000) in the aggregate (as determined by an architect or other qualified
expert selected by Seller and reasonably approved by Buyer), then Buyer shall have the right,
exercisable by giving written notice to Seller within at least ten (10) Business Days after
Buyer’s receipt of Seller’s written notice informing Buyer of such loss or damage, to terminate
this Agreement with respect to all, but not less than all, of the Properties, in which event
Section 3.6 shall apply. If Buyer does not elect to terminate this Agreement within said
ten (10) Business Day period, then Buyer shall be deemed to have elected to proceed with Closing
without any reduction in the Purchase Price. Upon Closing, full risk of loss with respect to the
Properties shall pass to Buyer.

ARTICLE VIII

COMMISSIONS

     Section 8.1. Brokerage Commissions. With respect to the transaction contemplated by
this Agreement, Seller and Buyer each represents to the other that no brokerage commission,
finder’s fee or other compensation of any kind is due or owing to any person or entity. Each party
hereby agrees that if any person or entity makes a claim for brokerage commissions or finder’s
fees related to the sale of the Properties by Seller or the acquisition of the Properties by
Buyer, and such claim is made by, through or on account of any acts or alleged acts of said party
or its representatives, then said party will protect, indemnify, defend and hold the other party
free and harmless from and against any and all loss, liability, cost, damage and expense
(including reasonable attorneys’ fees) in connection therewith. The provisions of this paragraph
shall survive Closing or any termination of this Agreement.

ARTICLE IX

DISCLAIMERS AND WAIVERS

     Section 9.1. AS IS SALE: DISCLAIMERS. EXCEPT AS EXPRESSLY SET FORTH IN THIS
AGREEMENT:

39

 

     (a) EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES OF SELLER EXPRESSLY SET FORTH IN THIS
AGREEMENT, SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF
ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTIES, INCLUDING, BUT NOT
LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY, MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.

     (b) UPON CLOSING SELLER SHALL SELL AND CONVEY TO BUYER AND BUYER SHALL ACCEPT THE PROPERTIES
“AS IS, WHERE IS CONDITION, WITH ALL FAULTS,” EXCEPT TO THE EXTENT OF THE REPRESENTATIONS
AND WARRANTIES OF SELLER EXPRESSLY SET FORTH IN THIS AGREEMENT. EXCEPT FOR THE REPRESENTATIONS AND
WARRANTIES OF SELLER EXPRESSLY SET FORTH IN THIS AGREEMENT, BUYER HAS NOT RELIED AND WILL NOT RELY
ON, AND SELLER IS NOT LIABLE FOR OR BOUND BY, ANY EXPRESS OR IMPLIED WARRANTIES, GUARANTIES,
STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTIES OR RELATING THERETO
(INCLUDING SPECIFICALLY, WITHOUT LIMITATION, OFFERING PACKAGES DISTRIBUTED WITH RESPECT TO THE
PROPERTIES) MADE OR FURNISHED BY SELLER OR ANY REAL ESTATE BROKER OR AGENT REPRESENTING OR
PURPORTING TO REPRESENT SELLER, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN
WRITING. ALL MATERIALS, DATA AND INFORMATION DELIVERED BY SELLER TO BUYER IN CONNECTION WITH THE
TRANSACTION CONTEMPLATED HEREBY ARE PROVIDED TO BUYER AS A CONVENIENCE ONLY AND ANY RELIANCE ON OR
USE OF SUCH MATERIALS, DATA OR INFORMATION BY BUYER SHALL BE AT THE SOLE RISK OF BUYER, EXCEPT AS
OTHERWISE EXPRESSLY STATED HEREIN. NEITHER SELLER, NOR ANY, AFFILIATE OF SELLER, NOR THE PERSON OR
ENTITY WHICH PREPARED ANY REPORT OR REPORTS DELIVERED BY SELLER TO BUYER SHALL HAVE ANY LIABILITY
TO BUYER FOR ANY INACCURACY IN OR OMISSION FROM ANY SUCH REPORTS. BUYER ACKNOWLEDGES THAT THE
PURCHASE PRICE REFLECTS AND TAKES INTO ACCOUNT THAT THE PROPERTIES ARE BEING SOLD “AS IS,” SUBJECT
ONLY TO THE EXPRESS REPRESENTATIONS AND WARRANTIES OF SELLER SET FORTH HEREIN.

     (c) BUYER REPRESENTS AND COVENANTS TO SELLER THAT BUYER HAS CONDUCTED, OR WILL CONDUCT PRIOR
TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTIES, INCLUDING BUT NOT LIMITED TO, THE PHYSICAL AND
ENVIRONMENTAL CONDITIONS THEREOF, AS BUYER DEEMS NECESSARY OR DESIRABLE TO SATISFY ITSELF AS TO
THE CONDITION OF THE PROPERTIES AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN
WITH RESPECT TO ANY HAZARDOUS OR TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTIES, AND WILL
RELY SOLELY UPON SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER OR ITS
AGENTS OR EMPLOYEES WITH RESPECT THERETO.

40

 

     (d) UPON CLOSING, BUYER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED
TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN
REVEALED BY BUYER’S INVESTIGATIONS. EXCEPT TO THE EXTENT EXPRESSLY SET FORTH HEREIN, BUYER, UPON
CLOSING, SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND RELEASED SELLER (AND SELLER’S OFFICERS,
DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES
OF ACTION (INCLUDING CAUSES OF ACTION IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES
(INCLUDING REASONABLE ATTORNEYS’ FEES) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH
BUYER MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER (AND SELLER’S OFFICERS, DIRECTORS,
SHAREHOLDERS, EMPLOYEES AND AGENTS) AT ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT
CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS AND ANY AND ALL
OTHER ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTIES (OTHER THAN WITH
RESPECT TO SELLER’S BREACH OF ANY REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH HEREIN).

     Section 9.2. Survival of Disclaimers. The provisions of this Article IX shall
survive Closing or any termination of this Agreement.

ARTICLE X

MISCELLANEOUS

     Section 10.1. Confidentiality. Seller and Buyer each agree to maintain the
confidentiality of the terms and provisions of this Agreement; provided, however, that Seller may
disclose such terms and provisions to Pre-Emptive Right Holders. Prior to Closing, Buyer and its
representatives shall hold in confidence all data and information obtained from Seller or its
agents with respect to Seller or its business (other than data and information which is publicly
available), whether obtained before or after the execution and delivery of this Agreement, and
shall not disclose the same to others; provided, however, that Buyer may disclose such data and
information to such of its employees, officers, directors, lenders, consultants, accountants and
attorneys who have agreed in writing to treat such data and information confidentially, and except
as may be required by law or in connection with any legal proceeding concerning the Property or
this Agreement. If this Agreement is terminated or Buyer fails to perform hereunder, Buyer shall
promptly return to Seller any statements, documents, schedules, exhibits or other written
information obtained from Seller in connection with this Agreement or the transaction contemplated
herein. In the event of a breach or threatened breach by either party hereto (or its respective
agents or representatives) of this Section 10.1, the other party shall be entitled to an
injunction restraining the party breaching or threatening to breach this Section 10.1 (or
its respective agents or representatives) from disclosing, in whole or in part, such confidential
information. Nothing herein shall be construed as prohibiting either party hereto from pursuing
any other available remedy at law or in equity for such breach or threatened breach. The
provisions of this Section 10.1 shall survive Closing or any termination of this
Agreement.

41

 

     Section 10.2. Public Disclosure. Prior to and after the Closing, any press release or
other written release to the public of information with respect to the sale contemplated herein or
any matters set forth in this Agreement will be made only in the form approved in writing by Buyer
and Seller; provided, however, that any release of information required to be made pursuant to
applicable law, including, without limitation, federal and state securities laws and the rules and
regulations of the NYSE or NASDAQ, or the inclusion of any information in a prospectus, prospectus
supplement or other offering circular or memorandum in connection with public or private capital
raising activities undertaken by Buyer, Seller or their respective Affiliates, shall not require
approval from the other party; provided further, however, that, for the avoidance of doubt, any
press release or similar voluntary written communication to the general public shall require the
other party’s written consent. The provisions of this Section 10.2 shall survive the
Closing or any termination of this Agreement.

     Section 10.3. Assignment. Subject to the provisions of this Section 10.3, the
terms and provisions of this Agreement are to apply to and bind the permitted successors and
assigns of the parties hereto. Buyer may not otherwise assign its rights under this Agreement
without first obtaining Seller’s written approval, which approval may be given or withheld in
Seller’s sole discretion; provided, however, that Buyer intends, and shall be permitted without
the prior consent of Seller, to assign this Agreement to one or more entities controlling,
controlled by, or under common control with Buyer, provided that (a) Buyer shall send Seller
written notice of its request at least five (5) Business Days prior to Closing, which written
request shall include the legal name of the proposed assignee, and provide Seller any information
that Seller may reasonably request with respect to such entities, (b) Buyer and the proposed
assignee shall execute an assignment and assumption or joinder of this Agreement in form and
substance reasonably satisfactory to Seller, and (c) in no event shall any assignment of this
Agreement release or discharge Buyer from any liability or obligation hereunder unless expressly
agreed otherwise by Seller in writing. Any transfer, directly or indirectly (whether by merger,
consolidation or otherwise) of any stock, partnership interest or other ownership interest in
Buyer, or any other transaction which results (whether directly or indirectly) in a change in
control of Buyer, shall constitute an assignment of this Agreement. Seller may assign its rights
under this Agreement to one or more affiliates of Seller without the consent of Buyer. Any other
assignment of Seller’s rights under this Agreement shall require the consent of Buyer. In no event
shall any assignment of this Agreement release or discharge Seller from any liability or
obligation hereunder unless expressly agreed otherwise by Buyer in writing. Notwithstanding any
provision herein to the contrary, Seller shall be permitted, prior to Closing and without the
consent of Buyer, to transfer one or more Properties to one or more affiliates of Seller, provided
that in no event shall any such transfers release or discharge Seller from any liability or
obligation hereunder unless expressly agreed otherwise by Buyer in writing.

     Section 10.4. Notices. Any notice pursuant to this Agreement shall be given in
writing by (a) personal delivery, (b) reputable overnight delivery service with proof of delivery,
(c) United States Mail, postage prepaid, registered or certified mail, return receipt requested,
or (d) legible facsimile transmission with a confirmation sheet, sent to the intended addressee at
the address set forth below, or to such other address or to the attention of such other person as
the addressee shall have designated by written notice sent in accordance herewith. Any notice so
given shall be deemed to have been given upon receipt or refusal to accept delivery, or, in the
case of facsimile transmission, as of the date of the facsimile transmission provided that an

42

 

original of such facsimile is also sent to the intended addressee by means described in clauses
(a), (b) or (c) above. Unless changed in accordance with the preceding sentence, the addresses for
notices given pursuant to this Agreement shall be as follows:

	 	 	 	 	 
	 

	 	If to Seller:
	 	HCP, Inc.
	 

	 	 	 	3760 Kilroy Airport Way, Suite 300
	 

	 	 	 	Long Beach, CA 90806
	 

	 	 	 	Attention: Legal Department
	 

	 	 	 	Telephone No.: (562) 733-5100
	 

	 	 	 	Facsimile No.: (562) 733-5200
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Latham & Watkins LLP
	 

	 	 	 	600 West Broadway, Suite 1800
	 

	 	 	 	San Diego, CA 92101
	 

	 	 	 	Attention: Robert Frances
	 

	 	 	 	Telephone No.: (619) 238-2929
	 

	 	 	 	Facsimile No.: (619) 696-7419
	 
	 	 	 	 
	 

	 	If to Buyer:
	 	MPT Operating Partnership, L.P.
	 

	 	 	 	1000 Urban Center Drive, Suite 501
	 

	 	 	 	Birmingham, Alabama 35242
	 

	 	 	 	Attention: Michael G. Stewart, Esq.
	 

	 	 	 	Telephone No.: (205) 969-3755
	 

	 	 	 	Facsimile No.: (205) 969-3756
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Baker, Donelson, Bearman, Caldwell &
Berkowitz, P.C.
	 

	 	 	 	420 20th Street North Suite 1600
	 

	 	 	 	Birmingham, Alabama 35203
	 

	 	 	 	Attention: Thomas O. Kolb
	 

	 	 	 	Telephone No.: (205) 250-8321
	 

	 	 	 	Facsimile No.: (205) 488-3721

     Section 10.5. Modifications.

     This Agreement cannot be changed orally, and no executory agreement shall be effective to
waive, change, modify or discharge it in whole or in part unless such executory agreement is in
writing and is signed by the parties against whom enforcement of any waiver, change, modification
or discharge is sought.

     Section 10.6. Entire Agreement. This Agreement, including the exhibits and schedules
hereto, the Access Agreement, and that certain Confidentiality Agreement between Buyer and Seller,
dated as of November 30, 2007, contains the entire agreement between the parties hereto pertaining
to the subject matter hereof and fully supersedes all prior written or oral agreements and
understandings between the parties pertaining to such subject matter (including, without
limitation, that certain Letter of Intent, dated as of February 8, 2008, by and between the
parties, which shall be of no further force or effect from and after the Effective Date).

43

 

     Section 10.7. Further Assurances. Each party agrees that it will execute and deliver
such other documents and take such other action, whether prior or subsequent to Closing, as may be
reasonably requested by the other party to consummate the transaction contemplated by this
Agreement. Without limiting the generality of the foregoing, Seller shall (i) assist Buyer with
respect to the reissuance in Buyer’s name, effective as of Closing, of any letter of credit
required under any applicable Lease that is not transferable (which assistance shall include making
a request of the applicable tenant to cause such reissuance), (ii) use commercially reasonable
efforts to transfer the transferable letters of credit to Buyer, including without limitation,
executing any required change of beneficiary forms and delivering such forms, together with the
original letter of credit, to the applicable issuing bank, and (iii) cooperate with Buyer to seek
to cause each of the tenants under the Leases to have Buyer listed, effective as of Closing, as an
additional insured, named insured or beneficiary, as applicable, under each of the insurance
policies maintained by such tenant pursuant to the applicable Lease; provided,
however, the cost of any such reissuance or transfer pursuant to clauses (i) or (ii) above
and any actions pursuant to clause (iii) above shall be the responsibility of Buyer. The provisions
of this Section 10.7 shall survive Closing.

     Section 10.8. Counterparts. This Agreement may be executed in counterparts, all such
executed counterparts shall constitute the same agreement, and the signature of any party to any
counterpart shall be deemed a signature to, and may be appended to, any other counterpart.

     Section 10.9. Electronically Transmitted Signatures. In order to expedite the
transaction contemplated herein, telecopied signatures or signatures sent by electronic mail may
be used in place of original signatures on this Agreement or any document delivered pursuant
hereto (other than the Deeds, the notarized original of which shall be required prior to Closing).
Seller and Buyer intend to be bound by the signatures on the telecopied or electronically mailed
document, are aware that the other party will rely on the telecopied or electronically mailed
signatures, and hereby waive any defenses to the enforcement of the terms of this Agreement based
on the form of signature. Following any facsimile or electronic mail transmittal, the party shall
promptly deliver the original instrument by reputable overnight courier in accordance with the
notice provisions of this Agreement.

     Section 10.10. Severability. If any provision of this Agreement is determined by a
court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement
shall nonetheless remain in full force and effect; provided that the invalidity or unenforceability
of such provision does not materially adversely affect the benefits accruing to any party
hereunder.

     Section 10.11. Applicable Law; Venue. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard to any principle or
rule of law that would require the application of the law of any other jurisdiction. Each party
hereby (a) irrevocably submits to the exclusive jurisdiction of the state and federal courts of
the state of California and consents to service of process of any legal proceeding arising out of,
or in connection with, this Agreement, by any means authorized by the laws of the state of
California; (b) agrees that the state courts of Los Angeles County, California, or in the United
States District Court for the District in which Los Angeles County is located shall be the
exclusive venue and irrevocably waives, to the fullest extent permitted by law, any objection
which any party may now or hereafter have to the laying of venue of any litigation arising out of,
or in connection

44

 

with, this Agreement, brought in the state courts of Los Angeles County, California, or in the
United States District Court for the District in which Los Angeles County is located; and (c)
irrevocably waives any claim that any litigation brought in any such court has been brought in an
inconvenient forum. Buyer and Seller agree that the provisions of this Section 10.11 shall
survive the Closing or any termination of this Agreement.

     Section 10.12. No Third-Party Beneficiary. The provisions of this Agreement and of
the documents to be executed and delivered at Closing are and will be for the benefit of Seller
and Buyer only and are not for the benefit of any third party; and, accordingly, no third party
shall have the right to enforce the provisions of this Agreement or of the documents to be
executed and delivered at Closing.

     Section 10.13. Captions. The section headings appearing in this Agreement are for
convenience of reference only and are not intended, to any extent and for any purpose, to limit or
define the text of any section or any subsection hereof.

     Section 10.14. Construction. The parties acknowledge that the parties and their
counsel have reviewed and revised this Agreement and that the normal rule of construction to take
effect that any ambiguities are to be resolved against the drafting party shall not be employed in
the interpretation of this Agreement or any exhibits or amendments hereto.

     Section 10.15. Recordation. This Agreement many not be recorded by any party hereto
without the prior written consent of the other party hereto. The provisions of this Section
10.15 shall survive the Closing or any termination of this Agreement.

     Section 10.16. Attorneys’ Fees. Notwithstanding anything to the contrary in this
Agreement, in the event either party files a lawsuit or demand for arbitration or other legal
action (including in bankruptcy court) in connection with this Agreement, or any provisions
contained herein or therein, then the party that prevails in such action shall be entitled to
recover, in addition to all other remedies to which it is entitled, reasonable attorneys’ fees and
costs incurred in such action. Any court costs and attorneys’ fees shall be set by the court or
arbitrator and not by jury. The provisions of this Section 10.16 shall survive the Closing
or any termination of this Agreement.

     Section 10.17. Time of the Essence.Time is of the essence of each and every provision
of this Agreement.

     Section 10.18. Joint and Several Liability. Seller acknowledges and agrees that all
of the obligations of the entities constituting Seller hereunder are joint and several, and that
such entities shall be personally liable and responsible for all obligations and liabilities of
each other Seller with respect to the Property or Properties.

     Section 10.19. Changes to Property Entitlements. Nothing contained in this Agreement
shall be construed as authorizing Buyer to apply for a zone change, variance, subdivision map, lot
line adjustment or other discretionary governmental act, approval or permit with respect to the
Properties prior to the Closing, and Buyer agrees not to do so without Seller’s prior written
approval, which approval may be withheld in Seller’s sole and absolute discretion. Buyer agrees

45

 

not to submit any reports, studies or other documents, including, without limitation, plans and
specifications, impact statements for water, sewage, drainage or traffic, environmental review
forms, or energy conservation checklists to any governmental agency, or any amendment or
modification to any such instruments or documents prior to the Closing unless first approved by
Seller, which approval Seller may withhold in Seller’s sole discretion. Buyer’s obligation to
purchase the Properties shall not be subject to or conditioned upon Buyer’s obtaining any
variances, zoning amendments, subdivision maps, lot line adjustment, or other discretionary
governmental act, approval or permit. Nothing herein shall be deemed to prevent or limit Buyer’s
right to seek any zoning or other compliance letter from any applicable governmental authorities.

     Section 10.20. Dates. If, pursuant to this Agreement, any date indicated herein falls
on any non-Business Day, the date so indicated shall mean the next Business Day following such
date. As used herein, the term “Business Day” shall mean each Monday, Tuesday, Wednesday,
Thursday and Friday which is not a day on which national banks in the City of New York, New York
are authorized, or obligated, by law or executive order, to close.

     Section 10.21. Waiver of Jury Trial. Seller and Buyer, to the extent they may legally
do so, hereby expressly waive any right to trial by jury of any claim, demand, action, cause of
action, or proceeding arising under or with respect to this Agreement, or in any way connected
with, or related to, or incidental to, the dealings of the parties hereto with respect to this
Agreement or the transactions related hereto or thereto, in each case whether now existing or
hereafter arising, and irrespective of whether sounding in contract, tort, or otherwise. To the
extent they may legally do so, Seller and Buyer hereby agree that any such claim, demand, action,
cause of action, or proceeding shall be decided by a court trial without a jury and that any party
hereto may file an original counterpart or a copy of this Section with any court as written
evidence of the consent of the other party or parties hereto to waiver of its or their right to
trial by jury.

     Section 10.22. No Waiver. Failure of either party at any time to require performance
of any provision of this Agreement shall not limit the party’s right to enforce the provision.
Waiver of any breach of any provision shall not be a waiver of any succeeding breach of the
provision or a waiver of the provision itself or any other provision.

     Section 10.23. Legal Descriptions. The parties hereby acknowledge that the legal
descriptions of the Properties set forth on Exhibit A-1 and Exhibit A-2 attached
hereto (the Legal Descriptions) have been prepared based on information available to Seller and
Buyer as of the Effective Date. The parties hereby agree to work together in good faith to make
any modifications to the Legal Descriptions prior to Closing that may be necessary to: (1) correct
any inaccuracies and (2) reflect the intent of the parties that Seller shall transfer and convey
all of Seller’s rights, title and interest in all of the real properties located at the addresses
for such Properties set forth in Exhibit A-1 and Exhibit A-2 attached hereto.

     Section 10.24. Matters Related to Specific States.

     (a) Texas. The parties hereto waive any rights under the Uniform Vendor and Purchaser
Risk Act of the State of Texas contained in Section 5.007 of the Texas Property Code.

46

 

     (b) Connecticut. In the event that the sale of the Real Property located in
Connecticut pursuant to this Agreement is determined to be a transfer of an “establishment” under
the Connecticut General Statutes Section 22a-134 et seq (the “Transfer Act”), Seller and
Buyer agree to cooperate in complying with the requirements of the Transfer Act. Notwithstanding
the foregoing, Seller’s responsibility regarding compliance with the Transfer Act shall be limited
to assisting in the completion of the appropriate property transfer program form(s) and signing any
such form(s) as the “transferor” in connection with the sale contemplated by this Agreement. Seller
also agrees to assist Buyer in causing the responsible party to comply with the Transfer Act
including but not limited to signing the appropriate property transfer forms as the “certifying
party,” as such term is defined in the Transfer Act or associated forms, and filing same with the
Connecticut Department of Environmental Protection.

     (c) Florida. Notification pursuant to Section 404.056, Florida Statutes:

“RADON GAS: RADON IS A NATURALLY OCCURRING RADIOACTIVE GAS THAT, WHEN IT HAS
ACCUMULATED IN A BUILDING IN SUFFICIENT QUANTITIES, MAY PRESENT HEALTH RISKS TO
PERSONS WHO ARE EXPOSED TO IT OVER TIME. LEVELS OF RADON THAT EXCEED FEDERAL AND
STATE GUIDELINES HAVE BEEN FOUND IN BUILDINGS IN FLORIDA. ADDITIONAL INFORMATION
REGARDING RADON AND RADON TESTING MAY BE OBTAINED FROM YOUR COUNTY HEALTH
DEPARTMENT”

     (d) Louisiana.

          (i) For purposes of Louisiana law, (a) each reference to a “county” will mean a Louisiana
“parish”; (b) each reference to a “lien” will include a reference to a “privilege” “mortgage”,
and/or “security interest”, as appropriate; (c) each reference to an “easement” or “easements”
will include a reference to a “servitude” and “servitudes”; (d) the terms “land”, “real property”,
and “real estate” will mean “immovable property” as that term is used in the Louisiana Civil Code;
(e) the term “personal property” will mean “movable property” as that term is used in the
Louisiana Civil Code; (f) the term “tangible” will mean “corporeal” as that term is used in the
Louisiana Civil Code; (g) the terms “fee interest,” “fee title,” and “fee simple title” will mean
full ownership interest under Louisiana law; and (h) the term “joint and several liability” means
“solidary liability” for purposes of Louisiana law.

          (ii) The Bill of Sale for the property located in Louisiana will contain the following
waivers in addition to the waivers set out in Exhibit H:

     In addition, and except for such representations and warranties as are set forth in
Section 5.1 of the Purchase Agreement (subject to the limitations on liability and
survival set forth in Section 5.2 of the Purchase Agreement), this conveyance is without
any warranties whatsoever with respect to the Personalty, and the Personalty is being sold and
transferred “as is, where is,” without any warranty of any nature or kind whatsoever, and Buyer
hereby expressly waives all warranties whatsoever with respect to the Personalty, including
without limitation, all warranty whatsoever with respect to the condition of the Personalty, all
warranties with respect to the fitness of the Personalty for any particular use or purpose, and
all

47

 

warranties under La. Civ. Code art. 2475 with respect to the condition of the Personalty, and La.
Civ. Code arts. 2520 through 2548 or any other provision of law. Buyer expressly acknowledges the
foregoing and waives any and all rights or causes of action that Buyer has or may have to rescind
or resolve this transfer or to demand a reduction in purchase price based upon the existence of any
redhibitory or other vices, defects, or other deficiencies in the physical condition of Personalty,
based upon the unsuitability of the Personalty or any of its components or parts for Buyer’s
intended use or any other use, this sale being at Buyer’s sole peril and risk with respect to all
such Personalty. Buyer acknowledges and agrees that the foregoing disclaimers and waiver of
warranties have been fully explained to Buyer and that Buyer understands the same. Buyer
acknowledges that neither Seller nor any other person or entity has made any representation,
warranty or covenant of any nature whatsoever, directly or indirectly, express or implied, with
respect to the existence, merchantability, condition, quality, or description of or otherwise in
connection with the Personalty or with respect to the use, title, merchantability, condition,
quality, description, durability or fitness of the Personalty for any particular use or purpose or
otherwise.

          (iii) The Assignment of Leases for the property located in Louisiana will contain the
following waiver of warranties in addition to the other provisions set out on Exhibit I:

               Except for the representations and warranties as are set forth in Section 5.1 of the
Purchase Agreement (subject to the limitations on liability and survival set forth in Section
5.2 of the Purchase Agreement), this assignment is without any warranties whatsoever with
respect to the Lease Agreements or the rents, cleaning fees, security deposits and other refundable
deposits paid in connection with the Lease Agreements (collectively, the “Assigned
Rights”), and Assignee waives all representations and warranties, express or implied, with
respect to the Lease Agreements and the other Assigned Rights, including without limitation, all
warranties with respect to the solvency of any tenant or other obligor, the existence of any
defenses to enforcement or payment, or any other warranties set forth in La. Civ. Code Arts. 2642
through 2654, inclusive, or any other provision of applicable law. Without limiting the generality
of the foregoing, and except for the representations and warranties as are set forth in Section
5.1 of the Purchase Agreement (subject to the limitations on liability and survival set forth
in Section 5.2 of the Purchase Agreement), Assignee hereby waives any right, claim, or
cause of action that it has or may have to rescind or resolve this assignment, in whole or in part,
or to demand a diminution or reduction in purchase price based on any defects or defenses, or to
otherwise seek the recovery of damages due to or arising out of any occurrences or nonoccurrences
relating to any matters covered by any warranty waived herein.

ARTICLE XI

MEMBERSHIP INTEREST

     Section 11.1. Additional Defined Terms. For all purposes of this Agreement, the
terms defined in this Section 11.1 shall have the following meanings:

          “Assignment and Assumption of Membership Interest Agreement” means, with respect to
Idaho LLC, an Assignment and Assumption of Membership Interest Agreement in substantially the same
form as is attached hereto as Exhibit M.

48

 

          “Idaho LLC” means HCPI/IDAHO FALLS, LLC, a Delaware limited liability company.

          “Idaho Property” means that certain real property owned by Idaho LLC and located in
Idaho Falls, Idaho as more particularly described on Exhibit A-l attached hereto.

          “Membership Interest” means HCP’s entire membership interest in Idaho LLC, including
without limitation HCP’s economic interest therein, any and all rights of HCP to vote and
otherwise participate in Idaho LLC’s affairs, and HCP’s rights to any and all benefits to which
HCP may be entitled as a member thereof.

          “Operating Agreement” means that certain Limited Liability Company Operating
Agreement of Idaho LLC, dated as of September 6, 2001.

     Section 11.2. Purchase and Sale of the Membership Interest.

     (a) Notwithstanding anything to the contrary in this Agreement, on the Closing Date, subject
to the other terms and conditions of this Article XI, in lieu of Buyer acquiring direct title to
the Idaho Property, HCP agrees to sell, assign, transfer, convey and deliver to Buyer, and Buyer
shall purchase, acquire and accept from HCP, the Membership Interest, with no reduction or
modification of the Purchase Price and the Allocated Purchase Price of the Idaho Property shall be
the Allocated Purchase Price of the Membership Interest.

     (b) All of the provisions of this Agreement applicable to the purchase of the Properties
shall apply, to the extent applicable, to the purchase of the Membership Interest in Idaho LLC,
except as follows:

          (i) In lieu of a Deed and Bill of Sale, with respect to the Idaho Property and the Idaho LLC,
HCP and Buyer shall execute and deliver the Assignment and Assumption of Membership Interest
Agreement; and

          (ii) Any Title Policy with respect to the Idaho Property shall be in the name of Idaho LLC.

     (c) Effective upon the Closing, HCP shall withdraw and resign as the managing member of Idaho LLC, pursuant to a written agreement reasonably acceptable to Buyer.

     Section 11.3. Additional Representations and Warranties of HCP. Without limiting the
representations and warranties of HCP or any other Seller pursuant to Section 5.1 of this
Agreement, HCP further represents and warrants as follows:

     (a) Membership Interests.

          (i) The Membership Interest represents eighty-eight percent (88%) of the outstanding
ownership interests of the members of Idaho LLC, subject to adjustment in accordance with the
provisions of the Operating Agreement. HCP owns the Membership Interest free and clear of any
restrictions on transfer, tax liens, security interests, options, warrants, purchase rights,
contracts, commitments, equities, claims, and demands of any kind (other than

49

 

any restrictions under the Securities Exchange Act, state securities laws and the Operating
Agreement).

          (ii) To HCP’s Knowledge, a true and correct list of the members of Idaho LLC and their
respective ownership percentages are attached hereto as Schedule 11.3(a).

          (iii) HCP is not a party to any purchase right or other contract or commitment that could
require HCP to sell, transfer or otherwise dispose of all or any portion of the Membership
Interest, except as provided in the Operating Agreement.

          (iv) The Membership Interest shall be conveyed to Buyer free and clear of any restrictions on
transfer, taxes, security interests, options, warrants, purchase rights, contracts, commitments,
equities, claims, and demands of any kind (other than any restrictions under the Securities
Exchange Act, state securities laws and the Operating Agreement).

     (b) Governing Documents. HCP has delivered to Buyer true, correct and complete copies
of the Governing Documents of Idaho LLC. To HCP’s Knowledge, there is no claim or dispute by any
member, officer, director or affiliate of Idaho LLC pending or otherwise threatened against HCP
regarding HCP’s noncompliance with any responsibilities or obligations of HCP required under the
Governing Documents or by law, nor does HCP have Knowledge of any facts which might result in any
such claim or dispute.

     (c) Organization, Qualification of Idaho LLC. Idaho LLC has been duly organized, is
validly existing under the laws of the State of Delaware, and is qualified to do business and in
good standing in the State of Idaho.

     (d) Power and Authority of Idaho LLC. Idaho LLC has limited liability company power
and authority and all licenses, permits, and authorizations necessary to carry on the business in
which it is engaged and to own the Idaho Property. Prior to Closing, no person other than HCP
shall have the right to manage or control Idaho LLC.

     (e) Business. The only material business in which Idaho LLC is engaged is to own and
lease the Idaho Property.

     Section 11.4. Additional Representations of Buyer. Without limiting the
representations and warranties of Buyer pursuant to Section 5.3 of this Agreement, Buyer
further represents and warrants as follows:

     (a) Investment Intent. Buyer is acquiring the Membership Interest for its own account
for investment purposes and not with a view to the distribution thereof to others.

     (b) AS IS. Except as otherwise specifically provided herein, HCP has not made any
representations, warranties, or agreements concerning the Membership Interest or any assets or
liabilties of Idaho LLC, and Buyer is acquring the Membership Interest of Idaho LLC “AS
IS” and agrees to bear all risk regarding all attributes and conditions relating to the
Membership Interest and Idaho LLC and the assets and liabilites thereof.

     Section 11.5. Additional Provisions Related to the Membership Interest.

50

 

     (a) Credits. Notwithstanding anything contained in this Agreement to the contrary,
Seller shall be entitled to a credit at Closing equal to the amount that HCP would receive if one
hundred percent (100%) of the accounts receivable existing with respect to the Idaho Property as of
the Closing Date were collected by Idaho LLC immediately prior to Closing and disbursed to the
members thereof prior to Closing in accordance with the terms of the Operating Agreement. A
post-Closing true-up shall be performed ninety (90) days after the Closing Date, at which time
Seller shall pay to Buyer an amount equal to that portion of such credit that pertains to any such
accounts receivable which were not received by Idaho LLC from the applicable tenant prior to such
true-up. Subsequent to Buyer’s receipt of any such true-up payment from Seller, if Buyer, Seller or
Idaho LLC receives any funds from the tenant from which such accounts receivable were due, then the
portion of such funds to which Buyer shall be entitled by virtue of its ownership of the Membership
Interest shall be disbursed (i) first to Seller up to the amount of any such true-up payment
previously made, and (ii) the remainder to Buyer. Buyer shall cause Idaho LLC to make any
distributions necessary to effectuate the provisions of this paragraph. Subject to its rights under
this paragraph to retain funds in repayment of any such true-up payment, Seller shall promptly
deliver to Buyer any payments of Rent pertaining to the Idaho Property which Seller may receive
subsequent to the Closing.

     (b) Distributions. Notwithstanding anything contained in this Agreement to the
contrary, prior to the Closing, HCP shall be entitled to cause Idaho LLC to make distributions to
its members with respect to amounts received and applicable to the period of time prior to
Closing.

     (c) Partial Termination. Notwithstanding anything contained in this Agreement to the
contrary, in the event HCP does not receive consent from the non-managing member under the
Operating Agreement to transfer the Membership Interest to Buyer and withdraw as managing member
of Idaho LLC, then unless HCP and Buyer shall otherwise agree, this Agreement shall be Partially
Terminated with regard to the Membership Interest and the Membership Interest shall be deemed to
be a “Deleted Property” for purposes of this Agreement.

     (d) Tax Reporting. The taxable year of Idaho LLC shall end on the Closing Date for
federal income tax purposes and the accounting and financial books of Idaho LLC shall close on the
Closing Date. All items of income, gain, loss and deduction of Idaho LLC attributable to the
Membership Interest for the taxable year of Idaho LLC that ends on the Closing Date shall be
allocated to HCP and all items of income, gain, loss and deduction of Idaho LLC attributable to
the Membership Interest for the taxable year that commences on the day after the Closing Date and
ends with Idaho LLC’s fiscal year end shall be allocated to Buyer.

ARTICLE XII

PARTNERSHIP INTEREST

     Section 12.1. Additional Defined Terms. For all purposes of this Agreement, the terms
defined in this Section 12.1 shall have the following meanings:

     “Assignment and Assumption of Partnership Interest Agreement” means, with respect to
Fayetteville LP and Wichita LP, an Assignment and Assumption of Partnership Interest Agreement in
substantially the same form as is attached hereto as Exhibit O.

51

 

          “Fayetteville LP” means Fayetteville Health Associates Limited Partnership, a
Delaware limited partnership.

          “Fayetteville LP Agreement” means that certain Agreement of Limited Partnership of
Fayetteville LP, dated as of March 28, 1990, as amended by that certain Amendment to Agreement of
Limited Partnership of Fayetteville LP, dated as of December 31, 1994, each by and between AHP of
Fayetteville, Inc. (as predecessor in interest to HCP) and Northwest Arkansas Rehabilitation
Hospital, Ltd., an Alabama limited partnership.

          “Fayetteville Partnership Interest” means HCP’s entire partnership interest in
Fayetteville LP, including without limitation HCP’s economic interest therein, any and all rights
of HCP to vote and otherwise participate in Fayetteville’s affairs, and HCP’s rights to any and
all benefits to which HCP may be entitled as a partner thereof.

          “Fayetteville Property” means that certain real property owned by Fayetteville LLC
and located in Fayetteville, Arkansas as more particularly described on Exhibit A-l
attached hereto.

          “Limited Partnerships” mean, collectively, the Fayetteville LP and the Wichita LP.

          “LP Properties” mean, collectively, the Wichita Property and the Fayetteville
Property.

          “LP Agreements” mean, collectively, the Fayetteville LP Agreement and the Wichita LP
Agreement.

          “Partnership Interests” mean, collectively, the Fayetteville Partnership Interest and
the Wichita Partnership Interest.

          “Wichita LP” means Wichita Health Associates Limited Partnership, a Delaware limited
partnership.

          “Wichita LP Agreement” means that certain Agreement of Limited Partnership of Wichita
LP, dated as of December 18, 1990, by and between AHP of Wichita, Inc. (as predecessor in interest
to HCP) and CMS Wichita Rehabilitation, Inc., a Delaware corporation.

          “Wichita Partnership Interest” means HCP’s entire partnership interest in Wichita LP,
including without limitation HCP’s economic interest therein, any and all rights of HCP to vote
and otherwise participate in Wichita LP’s affairs, and HCP’s rights to any and all benefits to
which HCP may be entitled as a partner thereof.

          “Wichita Property” means that certain real property owned by Wichita LP and located
in Wichita, Kansas as more particularly described on Exhibit A-l attached hereto.

     Section 12.2. Purchase and Sale of the Partnership Interests.

52

 

     (a) Notwithstanding anything to the contrary in this Agreement, on the Closing Date, subject
to the other terms and conditions of this Article XII, in lieu of Buyer acquiring direct title to
the LP Properties, HCP agrees to sell, assign, transfer, convey and deliver to Buyer, and Buyer
shall purchase, acquire and accept from HCP, the Partnership Interests, with no reduction or
modification of the Purchase Price and the Allocated Purchase Price of the LP Properties shall be
treated as the Allocated Purchase Price of the Partnership Interests in the Limited Partnership.

     (b) All of the provisions of this Agreement applicable to the purchase of the Properties
shall apply, to the extent applicable, to the purchase of the Partnership Interests in the Limited
Partnerships, except as follows:

          (i) In lieu of a Deed and Bill of Sale, with respect to the LP Properties and the Limited
Partnerships, HCP and Buyer shall execute and deliver the Assignment and Assumption of Partnership
Interest Agreement; and

          (ii) Any Title Policies with respect to the LP Properties shall be in the name of the
applicable Limited Partnerships.

     (c) Effective upon the Closing, HCP shall withdraw and resign as the general partner of each Limited Partnership, pursuant to a written agreement reasonably acceptable to Buyer.

     Section 12.3. Additional Representations and Warranties of HCP. Without limiting the
representations and warranties of HCP or any other Seller pursuant to Section 5.1 of this
Agreement, HCP further represents and warrants as follows:

     (a) Partnership Interests.

          (i) The Fayetteville Partnership Interest represents ninety-seven percent (97%) of the
outstanding partnership interests of the partners of the Fayetteville LP and consists of a seven
percent (7%) interest as general partner and a ninety percent (90%) interest as limited partner.
The Wichita Partnership Interest represents ninety-seven percent (97%) of all partnership
interests of the partners of the Wichita LP and consists of a seven percent (7%) interest as
general partner and a ninety percent (90%) interest as limited partner. HCP owns the Partnership
Interests free and clear of any restrictions on transfer, tax liens, security interests, options,
warrants, purchase rights, contracts, commitments, equities, claims, and demands of any kind
(other than any restrictions under the Securities Exchange Act, state securities laws and the LP
Agreements).

          (ii) To HCP’s Knowledge, a true and correct list of the general and limited partners of the
Limited Partnerships and their respective ownership percentages are attached hereto as
Schedule 12.3(a).

          (iii) HCP is not a party to any purchase right or other contract or commitment that could
require HCP to sell, transfer or otherwise dispose of all or any portion of the Partnership
Interests, except as provided in the LP Agreements.

          (iv) The Partnership Interests shall be conveyed to Buyer free and clear of any restrictions
on transfer, taxes, security interests, options, warrants, purchase rights, contracts,

53

 

commitments, equities, claims, and demands of any kind (other than any restrictions under the
Securities Exchange Act, state securities laws and the LP Agreements).

     (b) Governing Documents. HCP has delivered to Buyer true, correct and complete copies
of the Governing Documents of the Limited Partnerships. To HCP’s Knowledge, there is no claim or
dispute by any partner, officer, director or affiliate of the Limited Partnerships pending or
otherwise threatened against HCP regarding HCP’s noncompliance with any responsibilities or
obligations of HCP required under the Governing Documents or by law, nor does HCP have Knowledge of
any facts which might result in any such claim or dispute.

     (c) Organization, Qualification of the Limited Partnerships. Each Limited Partnership
has been duly organized, is validly existing under the laws of the State of Delaware, and is
qualified to do business and in good standing in the state in which its property is located.

     (d) Power and Authority of the Limited Partnerships. The Limited Partnerships have
limited partnership power and authority and all licenses, permits, and authorizations necessary to
carry on the businesses in which they are engaged and to own their respective LP Properties. Prior
to Closing, HCP shall be the sole general partner of the Limited Partnerships and no person other
than HCP shall have the right to manage or control the Limited Partnerships.

     (e) Business. The only material business in which each Limited Partnership is engaged
is to own and lease its respective LP Property.

     Section 12.4. Additional Representations of Buyer. Without limiting the
representations and warranties of Buyer pursuant to Section 5.3 of this Agreement, Buyer
further represents and warrants as follows:

     (a) Investment Intent. Buyer is acquiring the Partnership Interests for its own
account for investment purposes and not with a view to the distribution thereof to others.

     (b) AS IS. Except as otherwise specifically provided herein, HCP has not made any
representations, warranties, or agreements concerning the Partnership Interests or any assets or
liabilties of the Limited Partnerships, and Buyer is acquring the Partnership Interests of the
Limited Partnerships “AS IS” and agrees to bear all risk regarding all attributes and
conditions relating to the Partnership Interests and the Limited Partnerships and the assets and
liabilites thereof.

     (c) Acceptable Successor. Buyer shall qualify as an acceptable successor general
partner under the LP Agreements, as (i) Buyer has not directly or indirectly derived more than ten
percent (10%) of its gross revenues during the calendar year immediately preceding the Closing
from the operation of comprehensive rehabilitation or acute care hospitals, and (ii) Buyer has a
minimum net worth of $15,000,000.

     Section 12.5. Additional Provisions Related to the Partnership Interests.

     (a) Credits. Notwithstanding anything contained in this Agreement to the contrary,
Seller shall be entitled to a credit at Closing equal to the amount that HCP would receive if one
hundred percent (100%) of the accounts receivable existing with respect to the LP Properties as

54

 

of the Closing Date were collected by the Limited Partnerships immediately prior to Closing and
disbursed to the partners thereof prior to Closing in accordance with the terms of the LP
Agreements. A post-Closing true-up shall be performed ninety (90) days after the Closing Date, at
which time Seller shall pay to Buyer an amount equal to that portion of such credit that pertains
to any such accounts receivable which were not received by the Limited Partnerships from the
applicable tenants prior to such true-up. Subsequent to Buyer’s receipt of any such true-up
payment from Seller, if Buyer, Seller or the Limited Partnerships receives any funds from the
tenant from which such accounts receivable were due, then the portion of such funds to which Buyer
shall be entitled by virtue of its ownership of the Partnership Interests shall be disbursed (i)
first to Seller up to the amount of any such true-up payment previously made, and (ii) the
remainder to Buyer. Buyer shall cause the Limited Partnerships to make any distributions necessary
to effectuate the provisions of this paragraph. Subject to its rights under this paragraph to
retain funds in repayment of any such true-up payment, Seller shall promptly deliver to Buyer any
payments of Rent pertaining to the LP Properties which Seller may receive subsequent to the
Closing.

     (b) Distributions. Notwithstanding anything contained in this Agreement to the
contrary, prior to the Closing, HCP shall be entitled to cause the Limited Partnerships to make
distributions to the respective partners therein with respect to amounts received and applicable
to the period of time prior to Closing.

     (c) Tax Reporting. The taxable year of each Limited Partnership shall end on the
Closing Date for federal income tax purposes and the accounting and financial books of each
Limited Partnership shall close on the Closing Date. All items of income, gain, loss and deduction
of each Limited Partnership attributable to the applicable Partnership Interest for the taxable
year of each Limited Partnership that ends on the Closing Date shall be allocated to HCP and all
items of income, gain, loss and deduction of each Limited Partnership attributable to the
applicable Partnership Interest for the taxable year that commences on the day after the Closing
Date and ends with each Limited Partnership’s fiscal year end shall be allocated to Buyer

     (d) Partial Termination. Notwithstanding anything contained in this Agreement to the
contrary, in the event HCP does not receive (i) consents from the limited partners under the LP
Agreements to transfer the Partnership Interests to Buyer and withdraw as general partner of the
Limited Partnerships, and (ii) a waiver of the requirement for delivery of any opinions necessary
for such transfers, and of Section 10.4 of each LP Agreement, then unless HCP and Buyer shall
otherwise agree, this Agreement shall be Partially Terminated with regard to the Partnership
Interests and the Partnership Interests shall be deemed to be a “Deleted Property” for purposes of
this Agreement.

     (e) Additional Documentation. In order to effectuate the transfer of the general
partnership interest of each of the Limited Partnerships in accordance with Section 10.8 of each
of the LP Agreements, Buyer shall (i) execute and deliver to each of the Limited Partnerships a
legally binding addendum to each of the LP Agreements whereby Buyer agrees to be bound by all of
the terms and conditions thereof and to serve as general partner thereof, elects to continue the
business of the applicable Limited Partnership, and accepts all of the duties and obligations of
the general partner thereof, and (ii) with respect to each of the Limited Partnerships, execute
and file with the Office of Secretary of State to the State of Delaware an amended Certificate of

55

 

Limited Partnership of the applicable Limited Partnership effecting the substitution of Buyer as
the general partner thereunder.

[Signature Page Follows]

56

 

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective
Date.

	 	 	 	 	 	 	 
	 

	 	SELLER:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	HCP, INC., a Maryland corporation
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Brain J. Maas
	 

	 	Name:
	 	Brain J. Maas
	 

	 	Its:
	 	SVP	 	 
	 
	 	 	 	 	 	 
	 	 	FAEC HOLDINGS (BC), LLC,

a Delaware limited liability company
	 
	 	 	 	 	 	 
	 	 	By:	 	HCP, INC., a Maryland corporation 

its Sole Member
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Brain J. Maas
	 

	 	 	 	Name:
	 	Brain J. Maas
	 

	 	 	 	Its:
	 	SVP
	 
	 	 	 	 	 	 
	 	 	HCP DAS PETERSBURG VA, LP,

a Delaware limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	HCP DAS PETERSBURG VA GP, LLC, a
Delaware limited Iiability company, its
General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Brain J. Maas
	 

	 	 	 	Name
	 	Brain J. Maas
	 

	 	 	 	Its:
	 	SVP
	 
	 	 	 	 	 	 
	 	 	TEXAS HCP HOLDING, L.P., 

a Delaware limited
partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	TEXAS HCP G.P., INC.,
a Delaware corporations-its General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Brain J. Maas
	 

	 	 	 	Name:
	 	Brain J. Maas
	 

	 	 	 	Its:
	 	SVP

S-1

 

	 	 	 	 	 
	 	 	HCPI TRUST, a Maryland real estate trust
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Brain J. Maas
	 

	 	Name:
	 	Brain J. Maas
	 

	 	Its:
	 	SVP

S-2

 

	 	 	 	 	 	 	 	 	 
	 

	 	BUYER:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	MPT OPERATING PARTNERSHIP, L.P. 

a Delaware limited partnership
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	MEDICAL PROPERTIES TRUST, LLC, 
a Delaware limited liability company,
its General Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	MEDICAL PROPERTIES TRUST, INC., 

a Maryland corporation, its Sole Member

	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Michael G. Stewart
	 

	 	 	 	 	 	Name:
	 	MICHAEL G. STEWART
	 

	 	 	 	 	 	Its:
	 	EXECUTIVE VP & GENERAL COUNSEL

S-3EX-10.3 FIRST AMEND. TO PURCHASE & SALE AGREEMENT

 

EXECUTION
COPY

Exhibit 10.3

 

FIRST AMENDMENT TO

PURCHASE AND SALE AGREEMENT

AND ESCROW INSTRUCTIONS

BY AND BETWEEN

THE SELLER PARTIES IDENTIFIED HEREIN

(“Seller”)

and

MPT OPERATING PARTNERSHIP, L.P.,

a Delaware limited partnership

(“Buyer”)

Dated
effective as of March 28, 2008

 

 

 

FIRST AMENDMENT TO

PURCHASE AND SALE AGREEMENT

AND ESCROW INSTRUCTIONS

     THIS FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS (this
“Amendment”) is made effective as of March 28, 2008 (the “Effective Date”), by and between HCP,
INC. (formerly known as Health Care Property Investors, Inc.), a Maryland corporation (“HCP”), FAEC
HOLDINGS (BC), LLC, a Delaware limited liability company
(“FAEC”), HCPI TRUST, a Maryland real
estate trust (“HCPIT”), HCP DAS PETERSBURG VA, LP, a Delaware limited partnership (“HCPDAS”), and
TEXAS  HCP HOLDING, L.P., a Delaware limited partnership
(“THH”, and together with HCP, HCPIT,
HCPDAS and FAEC collectively, “Seller”), and MPT OPERATING PARTNERSHIP, L.P., a Delaware limited
partnership (“Buyer”).

RECITALS

	A.	 	Buyer and Seller entered into that certain Agreement of Purchase and Sale dated as of March
13, 2008 (the “Purchase Agreement”), for the purchase and sale of certain properties more
particularly described therein. All capitalized terms used but not defined in this Amendment
shall have the same meanings as set forth in the Purchase Agreement.
	 
	B.	 	Buyer and Seller wish to amend the Purchase Agreement as set forth below.

AGREEMENT

          NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer
and Seller agree that the Purchase Agreement is amended as follows:

	1.	 	Closing Date. In the first sentence of Section 4.1(a) of the Purchase Agreement,
“March 28, 2008” is hereby replaced with “March 31, 2008”, such that the Closing Date under the

Purchase Agreement shall be March 31, 2008.
	 
	2.	 	Continuity of Purchase Agreement. Except as amended by
this Amendment, the Purchase Agreement remains in full force and effect and is hereby ratified and confirmed.
	 
	3.	 	Counterparts. This Amendment may be executed in
counterparts, all such executed counterparts shall constitute the same agreement, and the signature of any party to any
counterpart shall be deemed a signature to, and may be appended to, any other counterpart.
	 
	4.	 	Electronically Transmitted Signatures. Telecopied signatures or signatures sent by
electronic
mail may be used in place of original signatures on this Amendment. Seller and Buyer
intend to be bound by the signatures on the telecopied or electronically mailed document, are
aware that the other party will rely on the telecopied or electronically mailed signatures, and
hereby waive any defenses to the enforcement of the terms of this Amendment based on the

 

 

	 	 	form of signature. Following any facsimile or electronic mail transmittal, the party shall
promptly deliver the original instrument by reputable overnight courier in accordance with the
notice provisions of the Purchase Agreement. 

	5.	 	Severabilitv. If any provision of this Amendment is determined by a court of
competent
jurisdiction to be invalid or unenforceable, the remainder of this Amendment shall
nonetheless remain in full force and effect.
	 
	6.	 	Governing Law. This Amendment shall be governed by and construed in accordance with
the laws of the State of New York without regard to any principle or rule of law that would
require the application of the law of any other jurisdiction.

[Signature Pages Follow]

2

 

     IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of the Effective
Date.

	 	 	 	 	 	 	 	 	 
	 	 	SELLER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HCP, INC., 

a Maryland corporation  	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/
Brian J. Maas	 	 
	 	 	Name:	 	Brian J. Maas	 	 
	 	 	Its:	 	SVP	 	 

	 	 	 	 	 	 	 	 	 
	 	 	FAEC HOLDINGS (BC), LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	HCP, INC., a Maryland
corporation 
its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Brian J. Maas	 	 
	 

	 	 	 	Name:
	 	Brian J. Maas	 	 
	 

	 	 	 	Its:
	 	SVP	 	 

	 	 	 	 	 	 	 	 	 
	 	 	HCP DAS PETERSBURG VA, LP,

a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	HCP DAS PETERSBURG VA GP, LLC,

a Delaware limited liability company,
its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Brian J. Maas	 	 
	 

	 	 	 	Name:
	 	Brian J. Maas	 	 
	 

	 	 	 	Its:
	 	SVP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TEXAS HCP HOLDING, L.P.,

a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TEXAS HCP G.P., INC.,

a Delaware corporation, its
General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/
Brian J. Maas	 	 
	 

	 	 	 	Name:
	 	Brian J. Maas	 	 
	 

	 	 	 	Its:
	 	SVP	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	HCPI TRUST,

a Maryland real estate trust	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Brian J. Maas	 	 
	 	 	Name:	 	Brian J. Maas	 	 
	 

	 	Its:
	 	SVP	 	 	 	 

Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	BUYER:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	MPT OPERATING PARTNERSHIP, L.P.,

a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	MEDICAL PROPERTIES TRUST, LLC,

a Delaware limited liability company, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	MEDICAL PROPERTIES TRUST, INC., 

a Maryland corporation, its Sole Member

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Emmett E McLean

	 

	 	Name:
	 	Emmett E McLean
	 

	 	Its:
	 	Executive Vice President and COO

Signature Page

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]