Document:

exv10w27

 

Exhibit 10.27

AGREEMENT

     THIS AGREEMENT (“Agreement”) is made as of the 16th day of August, 2005 (“Agreement
Date”), among M. CLIFTON McCLURE and ROBERT M. CALLAGHAN, trustees of the NYC Land Trust, D.
MICHAEL ATKINS and ROBERT M. CALLAGHAN, trustees of the Sixty-four-616 Land Trust, M. CLIFTON
McCLURE and ROBERT M. CALLAGHAN, trustees of the One Ninth Land Trust, S-V ASSOCIATES, a Virginia
general partnership, as the record owners, and WENDELL W. WOOD, as the beneficial owner
(collectively, “Owner”) and HM ACQUISITION GROUP, LLC, a Virginia limited liability company (the
“Company”); and HM CAPITAL GROUP, LLC, a Virginia limited liability company (“Purchaser”).

Background:

     A. The Company was formed solely to acquire certain unimproved real property located in
Albemarle County (“County”), in the Commonwealth of Virginia, estimated to consist of 78-acres of
land, more particularly described on Exhibit A attached hereto (the “Land”) known as “Area
A of Hollymead Town Center”, for the purpose of investing in such real property for a mixed-use
commercial and residential project.

     B. The Company holds fee title to the Property (as defined below). Owner owns all of the
outstanding membership interests in the Company. Purchaser desires to acquire all of the
membership interests in the Company from Owner.

Agreement:

     In consideration of the mutual agreements herein, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties agree to the following
terms and conditions:

1.  DEFINITIONS

     1.1 “Assignment” means an Assignment of Membership Interests in the form attached hereto as
Exhibit B, duly executed by Owner, so as to convey to Purchaser all of the Membership
Interests.

     1.2 “Broker” means David Foulk or Frank S. Phillips Mortgage Company.

     1.3 “Closing” each mean such time as the Assignment is delivered to Purchaser.

     1.4 “Closing Agent” means Chicago Title Insurance Company, Attention: Traci Harris, 1129
20th Street, NW, Suite 300, Washington, DC, Telephone: 202-263-4716, Facsimile:
202-466-5080.

     1.5 “Documents” means all information and records possessed by Owner or to which Owner has
reasonable access relating to the Property, the physical condition thereof, and/or the use and
development of the Property including, without limitation, the most recent property tax bills,
title information, surveys, environmental testing, assessments, and reports, engineering reports,
soils reports, studies, test results, surveys, and including any architectural, design, and
development information pertaining to the Property such as site plans, drawings, correspondence
with municipal zoning and planning departments and other governmental authorities and agencies with
jurisdiction over the Property, materials relating to any litigation, condemnation, or other
proceedings affecting the Property.

     1.6 “Environmental Law” means any law, statute, ordinance or regulation pertaining to
Hazardous Materials, health, industrial hygiene or the environment including, without limitation,
CERCLA (Comprehensive Environmental Response, Compensation and Liability Act of 1980) and RCRA
(Resources Conservation and Recovery Act of 1976).

 

     1.7 “Hazardous Materials” means any asbestos, petroleum, petroleum product, dry cleaning
solvent or chemical, biological or medical waste, “sharps” or any other “hazardous substance,”
“toxic substance,” “hazardous waste” or “hazardous material” as defined in or regulated by any
Environmental Law in effect at the pertinent date or dates.

     1.8 “Membership Interests” means the interests in the Company held by each of the Owners as
Members, being all of the outstanding equity interests in the Company.

     1.9 “Permitted Exceptions” means only the following interests, liens and encumbrances:

           (a) Liens for ad valorem taxes and assessments not yet due; and

           (b) Other matters reflected in the Title Commitment and approved by Purchaser.

     1.10 “Property” means the Land owned by the Company as described on Exhibit A attached
hereto together with all improvements located thereon, all appurtenances to such real property and
improvements, and all rights appurtenant to such real property.

     1.11 “Purchase Price” means the sum of Forty Nine Million Dollars ($49,000,000.00) to be paid
on account of the purchase and sale of the Membership Interests.

     1.12 “Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, dumping or disposing into the outdoor environment, including,
without limitation, the abandonment or discarding of barrels, drums, containers, tanks and other
receptacles containing or previously containing any Hazardous Material.

     1.13 “Survey” means a map of a stake survey of the Property prepared by a licensed surveyor at
the request of Purchaser, which complies with Minimum Standard Detail Requirements for ALTA/ACSM
Land Title Surveys and is dated not earlier than the Agreement Date, and which is certified as of
the date said survey was made to the Company and the Title Company.

     1.14 “Title Commitment” means a title commitment issued by the Title Company for the Property.

     1.15 “Title Company” means Ticor Title Insurance Company, Attention: Selina Parelskin, 9150
Wilshire Boulevard, Suite 100, Beverly Hills, CA 90212, Telephone: 310-432-4707, Facsimile:
310-285-0299, through its local agent, Chicago Title Insurance Company.

     1.16 “Title Policy” means a 1970 ALTA Form B Owner’s Policy of Title Insurance, issued by the
Title Company, in the amount of $52,000,000 insuring in the Company marketable, fee simple title to
the Property, in a form acceptable to Purchaser and subject only to the Permitted Exceptions.

2.  RESERVED

3.  PAYMENT OF PURCHASE PRICE

     3.1 Initial Payment. At Closing, Purchaser shall pay the Purchase Price on account of
the Membership Interests, as follows (subject to credits, charges and adjustments as provided
below):

          (a) Cash in the amount of $9,000,000.00 (the “Cash Payment”).

          (b) A promissory note in the amount of $40,000,000 (the “Note”), secured by a first lien deed
of trust encumbering the Property (the “Deed of Trust”), the form of which will be mutually agreed
upon by

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Purchaser and Seller prior to Closing. The Note shall bear interest at the rate of 8% per
annum, payable one-half currently on a monthly basis and one-half at maturity, with principal due
and payable in annual installments of $10,000,000 on the first, second, third and fourth
anniversaries following the Closing, at which time all outstanding amounts shall be due and
payable, subject to satisfaction of the following conditions:

               (i) Owner shall, on or before the first anniversary following the Closing, have completed the
site work described in the Land Finish Schedule attached hereto as Schedule 1 (the “Site
Work”).

               (ii) Purchaser shall have the right to extend the first principal installment for a period of
three months, provided that all interest accrued for the first year is paid currently rather than
deferred until maturity.

     The Deed of Trust will include provisions for release of each of the parcels composing the
Property on terms more particularly provided therein.

4.  CLOSING. 

     The transactions contemplated by this Agreement shall be performed through a closing and
settlement with Closing Agent, on August 16, 2005, or as soon thereafter as the conditions to
closing described in Section 11 hereof have been satisfied (the “Closing Date”), in person
or by mail, as may be agreed by the parties.

     4.1 Prior to the Closing Date, Owner shall deliver to Closing Agent:

          (a) An Assignment of Membership Interests, in the form attached hereto as Exhibit B
(the “Assignment”), along with a resignation, duly executed by the managing member of the Company;

          (b) Payoff instructions for the current deed of trust financing encumbering the Property;

          (c) A FIRTA Certificate in the form attached hereto as Exhibit F (the “Certificate”);

          (d) An owner’s affidavit, gap affidavit and such further instruments of conveyance, transfer
and assignment and other documents as may reasonably be required by the Title Company in order to
effectuate the provisions of this Agreement and the consummation of the transactions contemplated
herein;

          (e) Resolutions authorizing the transactions described herein and the authority of the
signatories of the closing documents, certified by the appropriate authority;

          (f) Such other documents as Purchaser or Title Company may reasonably request to effect the
transaction contemplated by this Agreement; and

          (g) All Documents relating to the Property.

     4.2 On the Closing Date, Purchaser shall deliver to Closing Agent:

          (a) The Cash Payment;

          (b) A duly executed counterpart of the Assignment;

          (c) The Note and Deed of Trust, duly executed by Purchaser;

          (d) Resolutions authorizing the transactions described herein and the authority of the
signatories of the closing documents, certified by the appropriate authority; and

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          (e) Such other documents as the Title Company may reasonably request to effect the transaction
contemplated by this Agreement.

     4.3 Disbursements and Other Actions By Closing Agent. On the Closing Date, Owner and
Purchaser shall each approve a closing statement itemizing the adjustments and disbursements to be
made at Closing and, subject to the satisfaction of the conditions to closing herein contained,
Closing Agent will promptly thereafter undertake all of the following:

          (a) Deliver to Owner the Cash Payment, and less the amount of all items, costs and prorations
chargeable to the account of Owner;

          (b) Deliver the Assignment and the accompanying resignation to Purchaser;

          (c) Cause the Title Company to issue the Title Policy to the Company; and

          (d) Deliver the Note to Owner and cause the Deed of Trust to be recorded.

     4.4 At Closing, Owner shall be responsible for payment of:

          (a) The brokerage commission payable pursuant to a separate agreement between Owner and
Broker;

          (b) The cost of satisfying any liens or encumbrances on the Property;

          (c) The cost of curing any Title Defects.

     4.5 At Closing, Purchaser shall be responsible for payment of:

          (a) The cost of the Title Policy and the Survey;

          (b) Closing Agent’s fees and costs;

          (c) The cost of recording the Deed and the Deed of Trust.

     4.6 Prorations.

          (a) All non-delinquent real estate taxes, assessments and special taxes on the Property
(collectively, the “Taxes”) shall be prorated as of the Closing based on the actual current tax
bills. Credits due the Company, as grantee, shall reduce the amount of Cash Payment, and credits
due Owner shall increase the amount of the Cash Payment due at Closing. All supplemental real
property taxes billed before or after the Closing which are allocable to periods prior to the
Closing shall be paid promptly by Owner, including without limitation taxes attributable to change
in land usage or the change in ownership of the Property prior to the Company’s acquisition of the
Property. Any tax refunds received by the Company which are allocable to the period prior to the
Closing shall be paid by the Company to Owner.

          (b) All prorations shall be made as of the date of the Closing based on a 365 day year or a 30
day month, as applicable.

          (c) Prior to Closing, Owner shall distribute all assets of the Company other than the Property
to its members, and Owner shall assume and undertake to perform all liabilities and obligations of
the Company, actual or contingent, known or unknown, other than the obligation to pay
non-delinquent taxes and assessments, and

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shall indemnify, defend and hold Purchaser and the Company harmless from and against all
claims, costs and expenses, including attorneys’ fees, arising therefrom. The provisions of this
Paragraph 4.6 shall survive Closing.

5.  TITLE INSURANCE; INSPECTIONS

     5.1 Title Insurance. Purchaser shall obtain the Survey and shall review the condition
of title to the Property, and shall have the right to notify Owner in writing prior to Closing of
any matters shown of record on the title to the Property and, if applicable, encroachments or other
items shown on the Survey, of which Purchaser disapproves (collectively, “Title Defects”). Owner
shall notify Purchaser whether Owner intends to cure any Title Defect or other objection. If Owner
elects to cure, Owner shall use diligent efforts to cure the Title Defects and/or objections. If
Owner elects not to cure or if such Title Defects and/or objections are not cured, Purchaser shall
have the right, in lieu of any other remedies, to: (i) receive a return of the Cash Payment,
together with all interest accrued thereon; or (ii) waive such Title Defects and/or objections.

6.  WARRANTIES, REPRESENTATIONS AND COVENANTS OF OWNER

     Owner warrants and represents as follows as of the date of this Agreement and as of the
Closing and where indicated covenants and agrees as follows:

     6.1 Title; Organization; Validity; Conflict. The Company is the fee owner of all of
the Property, and at Closing title to the Property to free and clear of all liens, claims,
liabilities and encumbrances other than the Permitted Exceptions. S-V Associates is a partnership,
duly formed and validly existing under the laws of the Commonwealth of Virginia. Each of the
parties composing Owner which is a trust is a duly created and validly existing trust formed under
the laws of the Commonwealth of Virginia, and each trustee has the power and authority under the
respective trust agreements to execute, deliver and perform its obligations under this Agreement.
This Agreement has been duly and validly executed and delivered and is enforceable against each of
the parties composing Owner in accordance with its terms and all agreements, instruments and
documents contemplated hereby to be executed by Owner will be as of the Closing duly authorized,
executed and delivered and enforceable against Owner in accordance with their terms. Neither the
execution and delivery of this Agreement by Owner nor the consummation by Owner of the transaction
contemplated hereby (a) requires any further consent or approval, (b) conflicts with or constitutes
a default under any organizational documents or any other agreement, contract, instrument or
document, or (c) violates any court order or other governmental requirement.

     6.2 The Company. The Company is a Virginia limited liability company, duly formed,
validly existing and in good standing under the laws of the Commonwealth of Virginia. Concurrently
herewith, Owner shall deliver to Purchaser all documents relating to the formation and operation of
the Company, including the articles of formation filed with the Virginia Secretary of State, and
the operating agreement of the Company (including any amendments, modifications or supplements
thereto) as executed by Owner. Owner owns all of the Membership Interests, free and clear of any
and all encumbrances, rights or claims of any third parties.

     6.3 Sale Agreements; Leases; Contracts; Owner Documents. The Property is not subject
to any outstanding agreement(s) of sale, option(s), or other right(s) of third parties to acquire
any interest therein, except for this Agreement. There are no leases, other occupancy agreements
or licenses permitting persons to occupy or use any portion of the Property, either oral or
written, which would bind the Company or encumber the Property after the Closing. Except as shown
in Schedule 2, there are no management, service, maintenance, utility or other contracts or
agreements affecting the Property, oral or written, which would bind the Company or encumber the
Property after the Closing. Concurrently with the execution and delivery of this Agreement, Owner
will deliver to Purchaser copies of each Review Document.

     6.4 Litigation; Condemnation. There is no litigation or proceeding pending, or to the
best of Owner’s knowledge, threatened against Owner relating to the Property. Neither the whole
nor any portion of the Property, including access thereto or any easement benefiting the Property,
is subject to temporary requisition of use by any

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governmental authority or has been condemned, nor is there now any pending or planned
condemnation, requisition or similar proceeding against the whole or any portion of the Property,
including access thereto or any easement benefiting the Property, excluding an action with regard
to road improvements which will be dedicated to public use, as more particularly described on
Schedule 1-B.

     6.5 Assessments; Zoning; Governmental Notices. Owner has paid all taxes, assessments,
and other charges affecting or relating to the Property and no new assessments are known to affect
the Property. The proposed use of the Property for commercial and residential purposes is
consistent with the comprehensive plan of Albemarle County. Owner has not entered into any
commitments or agreements with any governmental authorities or agencies affecting the Property that
have not been disclosed in writing to Purchaser nor received any notice from any governmental
authorities or agencies of uncured violations at the Property of building, fire, air pollution or
zoning codes, rules, ordinances or regulations, environmental and hazardous substances laws, or
other rules, ordinances or regulations relating to the Property.

     6.6 Environmental Matters. Owner has not, and has no knowledge of any other person
who has, caused any Release, threatened any Release, or disposal of any Hazardous Material at the
Property and Owner has not used any Hazardous Material at the Property and has no knowledge of any
other person doing so. To the best of Owner’s knowledge, the environmental condition of the
Property is as documented in the Phase I Environmental Assessment dated April 5, 2005, prepared by
Jeffery Sitler, PE.

     6.7 Deleted.

     6.8 Access to Documents. Owner has provided Purchaser with copies of or access to all
Documents in its possession materially impacting all or any part of the Property, or the
development of all or any part of the Property.

     6.9 Certification. Owner (and none of the parties composing Owner) is not a “foreign
person” within the meaning of Sections 1445 or 897 of the Internal Revenue Code, and at Closing
will, execute and deliver the Certificate, or if Owner fails to do so, Purchaser may deduct and
withhold from the Cash Payment such amounts as may be required by Purchaser in order to satisfy its
tax withholding obligations under Federal and State laws.

     6.10 Commissions. Owner shall be responsible for all brokerage commissions, finder’s
fees and other like payments payable in connection with this Agreement and/or the transaction
contemplated herein.

     The obligations of Owner pursuant to this Section 6 shall survive Closing.

7.  WARRANTIES AND REPRESENTATIONS OF PURCHASER

     Purchaser hereby warrants and represents as of the date of this Agreement and as of the
Closing and where indicated covenants and agrees as follows:

     7.1 Organization; Authority. Purchaser is duly organized, validly existing, and in
good standing under the laws of the state of its formation. Purchaser has the full power and
authority to execute, deliver and perform its obligations under this Agreement.

     7.2 Authorization; Validity. This Agreement and all agreements, instruments and
documents herein provided to be executed by Purchaser are and as of the Closing will be duly
authorized, executed and delivered by and are and will be binding upon Purchaser.

     7.3 Commissions. Purchaser has neither dealt with nor does it have any knowledge of
any broker or other party who has or may have any claim against Purchaser, the Company or Owner for
a brokerage commission or finder’s fee or like payment arising out of or in connection with the
transaction provided herein.

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8.  RESERVED

9.  RESERVED

10.  CONDITIONS PRECEDENT

     10.1 Conditions Precedent to Purchaser’s Obligations. The obligations of Purchaser
under this Agreement and the Note is subject to satisfaction (or written waiver by Purchaser) of
each of the conditions set forth below on the Closing Date and each payment date:

          (a) Owner’s warranties and representations under this Agreement shall be true and correct
(without regard to any qualifications or limitations based on knowledge).

          (b) All obligations of Owner contained in this Agreement, shall have been fully performed in
all material respects and Owner shall not be in default under any covenant, restriction,
right-of-way or easement affecting the Property.

          (c) The Property being free and clear from any persons and entities, leases, temporary
occupancy agreements, licenses, and all other third-party rights of use or occupancy of the
Property or any part thereof.

          (d) The Title Company shall have issued or irrevocably committed to issue the Title Policy,
subject only to the Permitted Exceptions.

     10.2 Conditions Precedent to Owner’s Obligations. The obligations of Owner under this
Agreement are subject to satisfaction (or written waiver by Owner) of each of the following
conditions or requirements on the Closing Date:

          (a) Purchaser’s warranties and representations under this Agreement shall be true and correct.

          (b) All obligations of Purchaser contained in this Agreement shall have been fully performed
in all material respects.

     10.3 Best Efforts. Subject to the provisions of this Agreement, each party shall use
reasonable best efforts to take or cause to be taken all actions necessary, proper or advisable to
consummate the transactions contemplated by this Agreement.

11.  RESERVED

12.  POST-CLOSING INDEMNITIES AND COVENANTS

     12.1 Owner’s Indemnity. Should this transaction close, Owner shall indemnify, defend,
protect and hold harmless Purchaser and the Company from all claims, demands, liabilities, damages,
penalties, costs and expenses, including, without limitation, reasonable attorneys’ fees and
disbursements, which may be imposed upon, asserted against or incurred or paid by Purchaser or the
Company by reason of, or on account of, any activities of the Company from its date of formation
until the Closing and any breach by Owner of Owner’s warranties, representations and covenants.
Owner’s warranties, representations and covenants, and the foregoing indemnity, shall survive the
Closing. Purchaser’s and the Company’s rights and remedies provided for herein against Owner shall
be in addition to, and not in lieu of all other rights and remedies at law or in equity.

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     12.2 Purchaser Indemnity. Should this transaction close, Purchaser shall indemnify,
defend, protect and hold harmless Owner from all claims, demands, liabilities, damages, penalties,
costs and expenses, including, without limitation, reasonable attorneys’ fees and disbursements,
which may be imposed upon, asserted against or incurred or paid by Owner by reason of, or on
account of, any activities of the Company following the Closing and any breach by Purchaser of
Purchaser’s warranties, representations and covenants. Purchaser’s warranties, representations and
covenants, and the foregoing indemnity, shall survive the Closing. Except as otherwise set forth
herein, Owner’s rights and remedies herein against Purchaser shall be in addition to, and not in
lieu of all other rights and remedies of Owner at law or in equity.

13.  CLOSING AGENT; DEPOSITS

     13.1 Duties. By signing a copy of this Agreement, Closing Agent agrees to comply with
the terms hereof insofar as they apply to Closing Agent. Closing Agent shall receive and hold the
funds and documents to be held in Escrow in trust, to be disposed of in accordance with the
provisions of this Agreement.

     13.2 Tax Identification. Owner and Purchaser shall provide to Closing Agent
appropriate Federal tax identification numbers.

14.  MISCELLANEOUS

     14.1 Entire Agreement. This Agreement constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof and may not be modified, amended or
otherwise changed in any manner except by a writing executed by Purchaser, Owner and the Company.

     14.2 Notices. All written notices and demands of any kind which either party may be
required or may desire to serve upon the other party in connection with this Agreement shall be in
writing and may be delivered (as an alternative to personal service) by registered or certified
mail, overnight courier service or facsimile (followed promptly by hard copy) at the addresses set
forth below:

	 	 	 	 	 	 	 
	 

	 	As to Owner:
	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Fax:                                         	 	 

	 	 	 	 	 	 	 
	 

	 	As to Purchaser:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Fax:                                         	 	 

Any such notice or demand given by reputable overnight courier with postage or charges thereon
fully prepaid and addressed to the party to be served at the addresses set forth above shall
constitute proper notice hereunder upon delivery to the addressee. Time-stamped facsimile
transmission confirmations or attempted transmission confirmations to the facsimile numbers above
shall constitute delivery at the time of such transmission or attempted transmission; however, all
facsimile sent pursuant hereto shall be followed-up with a hard copy in accordance with the
delivery requirements hereof. Refusal to accept delivery or inability to deliver due to change of
address shall be deemed receipt.

     14.3 Headings. The titles and headings of the various sections hereof are intended
solely for means of reference and are not intended for any purpose whatsoever to modify, explain or
place any construction on any of the provisions of this Agreement.

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     14.4 Construction; Severability. In the case of any uncertainty or ambiguity
regarding any part of this Agreement, the language shall be construed in accordance with its fair
meaning rather than being interpreted against the party who caused the uncertainty to exist. No
third parties, including any brokers or creditors, shall be beneficiaries hereof. Wherever the
terms “herein,” “hereof,” “hereunder,” and other like words are used, the same shall be deemed to
mean this Agreement as a whole, and not merely the particular section or provision in which the
respective word appears, unless the context in which the word appears requires otherwise. The
unenforceability, invalidity or illegality of any provision hereof shall not render any of the
other provisions herein unenforceable, invalid or illegal.

     14.5 Waiver. Except as expressly set forth to the contrary herein, none of the
provisions of this Agreement or rights provided herein shall be deemed waived unless waived in
writing by the party benefited thereby.

     14.6 Gender; Plural; Singular; Terms. A reference in this Agreement to any gender,
masculine, feminine or neuter, shall be deemed a reference to the other, and the singular shall be
deemed to include the plural and vice versa, unless the context otherwise requires. The terms
“herein,” “hereof,” “hereunder,” and other words of a similar nature mean and refer to this
Agreement as a whole and not merely to the specified section or clause in which the respective word
appears unless expressly so stated.

     14.7 Deleted.

     14.8 Time of Essence. Time is of the essence of this Agreement.

     14.9 Date of Performance. If the date on which any performance required hereunder is
on a weekend or is a national holiday, then such performance shall be required on the next business
day thereafter.

     14.10 Governing Law. This Agreement shall be governed by the laws of the Commonwealth
of Virginia and the parties hereto agree that any litigation between the parties hereto relating to
this Agreement shall take place (unless otherwise required by law) in a court located in the County
in which the Property is located. Each party waives its right to jurisdiction or venue in any
other location.

     14.11 Successors and Assigns. The terms and provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns. Notwithstanding anything to the contrary set forth herein, Purchaser shall have the
right, upon written notice to Owner but without Owner’s consent, to assign Purchaser’s rights and
obligations under this Agreement to any other person or entity.

     14.12 Joint and Several Obligations. The obligations and liabilities of NYC Land
Trust, Sixty-four-616 Land Trust,, One Ninth Land Trust, S-V Associates and, prior to Closing, HM
Acquisition Group, LLC, hereunder shall be joint and several, and any act or notice of or to or
refund to, or the signature of, any one or more of these entities shall be fully binding upon each
entity.

     14.13 Survival. The obligations of Owner and Purchaser intended to be performed after
the Closing shall survive the Closing.

     14.14 Further Instruments. Owner and Purchaser shall perform all acts and make,
execute and deliver such written instruments as shall be reasonably necessary to carry out the
terms and provisions of this Agreement.

     14.15 Exhibits; Schedules. All Exhibits and Schedules attached hereto are incorporated
herein by reference to the same extent as though such exhibits were included in the body of this
Agreement verbatim.

     14.16 Counterparts. This Agreement may be executed in several counterparts, each of
which may be deemed an original, and all of such counterparts together shall constitute one and the
same Agreement.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

OWNER:

	 	 	 	 	 
	/s/ M. Clifton McClure, Trustee

	 	/s/ Robert M. Callaghan, Trustee
	 	 
	 

	 	 	 	 
	M. CLIFTON McCLURE, Trustee of

	 	ROBERT M. CALLAGHAN, Trustee of	 	 
	the NYC Land Trust

	 	the NYC Land Trust	 	 
	 
	 	 	 	 
	/s/ D. Michael Atkins, Trustee

	 	/s/ Robert M. Callaghan, Trustee	 	 
	 

	 	 	 	 
	D. MICHAEL ATKINS, Trustee of

	 	ROBERT M. CALLAGHAN, Trustee of	 	 
	the Six-Four-616 Land Trust

	 	the Six-Four-616 Land Trust	 	 
	 
	 	 	 	 
	/s/ M. Clifton McClure, Trustee

	 	/s/ Robert M. Callaghan, Trustee	 	 
	 

	 	 	 	 
	M. CLIFTON McCLURE, Trustee of

	 	ROBERT M. CALLAGHAN, Trustee of	 	 
	the One Ninth Land Trust

	 	the One Ninth Land Trust	 	 

	 	 	 	 	 
	S-V ASSOCIATES, a Virginia general partnership
	 
	 	 	 	 
	By:

	 	/s/ Wendell Wood	 	 
	 

	 	 	 	 
	Name: Wendell W. Wood

	Its: General Partner

	 	 	 	 	 	 	 
	PURCHASER:	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	HM CAPITAL GROUP, L.L.C.,	 	HM ACQUISITION GROUP, LLC,	 	 
	a Virginia limited liability company	 	a Virginia limited liability company	 	 
	 
	 	 	 	 	 	 
	By: ASSET CAPITAL PARTNERS, L.P., its Sole Member

	 	By:
	 	/s/ Wendell Wood	 	 
	 

	 	 	 	 	 	 
	 

	 	Name: Wendell W. Wood
	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 
	  By: ACC GP, LLC, its Managing Partner  
	 
	 	 	 	 
	     By: ASSET CAPITAL CORPORATION, INC.,
its Managing Member
	 
	 	 	 	 
	      By:

	 	/s/ Peter Minshall	 	 
	 

	 	 	 	 
	 

	 	Peter Minshall, Chief Executive Officer	 	 

10exv10w28

 

Exhibit 10.28

AGREEMENT OF SALE AND PURCHASE

OF IMPROVED REAL PROPERTY

     THIS AGREEMENT made as of the 18th day of April, 2005 by and between EXECUTIVE TOWER
ASSOCIATES, LIMITED PARTNERSHIP (a New Mexico limited partnership, hereinafter sometimes referred
to as “Seller”), with a principal place of business at 330 Garfield Street, Santa Fe, New Mexico
87501 and ASSET CAPITAL CORPORATION, L.L.C. (a Delaware limited liability company, hereinafter
referred to as the “Purchaser”), its successors and or assigns with a principal place of business
at 7315 Wisconsin Avenue, Suite 205 East, Bethesda, Maryland 20814.

WITNESSETH:

     WHEREAS, Seller is the owner of:

     a. Land. That certain real property (the “Land”) commonly known as Executive Tower,
2101 Executive Drive, Hampton, Virginia 23666, being more particularly described in Exhibit
A attached hereto;

     b. Appurtenances. All rights, privileges and easements appurtenant to and for the
benefit of the Land, including, without limitation, all minerals, oil, gas and other hydrocarbon
substances on and under the Land, as well as all development rights, air rights, water, water
rights and water stock relating to the Land and any other easements, rights-of-way or appurtenances
owned by Seller and used in connection with the beneficial operation, use and enjoyment of the
Land, the Leases, the Rents, the Improvements, the Intangible Property, or any other appurtenance,
together with all rights of Seller in and to streets, sidewalks, alleys,

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driveways, parking areas and areas adjacent thereto or used in connection therewith, and all
rights of Seller in any land lying in the bed of any existing or proposed street adjacent to
the Land (all of which are collectively referred to as the “Appurtenances”);

     c. Improvements. All improvements and fixtures located or to be located on the Land,
including, without limitation, all buildings and structures presently located on the Land or to be
located thereon on the Closing Date, all apparatus, equipment and appliances presently located on
the Land and used in connection with the operation or occupancy thereof, such as heating and air
conditioning systems and facilities used to provide any utility services, parking services,
refrigeration, ventilation, garbage disposal, recreation or other services thereto, and all
landscaping and leasehold improvements of tenants, if any, which become the property of the owner
of the Land (all of which are collectively referred to as the “Improvements”);

     d. Leases and Rents. All leases, occupancy agreements and other similar agreements to
which Seller is a party or by which it is bound, together with all modifications, extensions and
renewals thereof, and any guarantees of any of the foregoing with respect to or demising any part
of the Land, Appurtenances or Improvements (the “Leases”), all income, receipts, funds and revenues
of any kind whatsoever payable under the Leases or otherwise accruing after the Closing Date with
respect to all or any portion of the Land, Appurtenances or Improvements (the “Rents”);

     e. Personal Property. All tangible personal property located or to be located on, or
situated or to be situated in and used in connection with, the Land and/or the Improvements
(“Personal Property”);

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     f. Intangible Property. All of the interest of Seller in (i) any intangible personal
property which relates to and is reasonably required for the operation and functioning of the Land,
Improvements or Personal Property generally, and (ii) any and all warranties, guarantees,
permits, contracts and other rights owned by Seller relating to the ownership, operation or
functioning of all or any part of the Property, as defined below (including without limitation all
third party guarantees and warranties, express or implied, in connection with the construction of
the Improvements) and all of Seller’s right, title and interest, if any, in and to the name
“Executive Tower” (all of the foregoing are collectively referred to as the “Intangible
Property”).

     All of the items described in Sections a, b, c, d, e and f above are hereinafter collectively
referred to as the “Property”. The items described in Sections a, b, and c above are hereinafter
referred to collectively as the “Real Property”; and

     WHEREAS, the Seller desires to sell the Property to the Purchaser on the terms and conditions
hereinafter set forth; and

     WHEREAS, the Purchaser desires to purchase the Property from the Seller and accept the terms
and conditions hereinafter set forth;

     NOW, THEREFORE, in consideration of the covenants, terms and conditions contained herein and
for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Seller and the Purchaser hereby agree as follows:

1. Purchase and Sale.

     The Seller agrees to convey to the Purchaser, and the Purchaser agrees to purchase from the
Seller the Property for the purchase price of FIFTEEN MILLION FIVE HUNDRED THOUSAND DOLLARS AND
NO/100ths ($15,500,000, and hereinafter referred to as the

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“Purchase Price”). The Purchase Price will be paid as hereinafter more particularly set forth. This sale includes all right, title and
interest of the Seller, in and to the Land, Appurtenances, Improvements, Rents, Leases, Personal
Property and Intangible Property.

2. Permitted Exceptions.

     The Real Property will be sold and conveyed to the Purchaser and accepted by the Purchaser
subject to the Permitted Exceptions (as defined in Paragraph 5 hereof).

3. Purchase Price.

     The Purchase Price shall be paid by the Purchaser as follows:

     (a) ONE HUNDRED THOUSAND AND NO/100ths DOLLARS ($100,000) in good funds, certified or
cashier’s check, upon mutual execution of this Agreement, shall be deposited by Purchaser with
Ticor Title Insurance Company (Attention: Selina Parelskin) as escrow agent (“Escrow Agent”) as an
initial deposit to be held in escrow by Escrow Agent pursuant to the provisions of Paragraph 3(d)
(this amount hereinafter described as the “Initial Deposit”). The Escrow Agent shall comply with
the terms of this Agreement, and the escrow provisions attached hereto as Exhibit B.

     (b) TWO HUNDRED THOUSAND AND NO/100ths DOLLARS ($200,000) in good funds, certified or
cashier’s check, within three (3) business days following Purchaser’s written notification to
Seller of its intention to proceed with the purchase of the Property in accordance with Paragraph
6(a) of this Agreement, shall be deposited by Purchaser with Escrow Agent as an additional deposit
to be held in escrow by Escrow Agent pursuant to the provisions of Paragraph 3(d) hereof and as
otherwise provided herein (this amount “Additional Deposit” together the Initial Deposit and any
interest earned thereon hereinafter described as the “Deposit”).

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     I            Purchaser shall pay to the Escrow Account, as hereinafter defined, maintained by Escrow
Agent pursuant hereto, on the Closing Date, immediately available funds in an amount equal to the
Purchase Price less the Deposit.

     (d) The parties agree that the Deposit made by the Purchaser pursuant to Paragraph 3(a) and
3(b) above, shall be held in escrow by Escrow Agent in an interest bearing account,
approved by Purchaser (the “Escrow Account”), and the interest earned thereon shall become
part of the Deposit.

4. Delivery of Documents.

     (a) Seller shall deliver to Purchaser a copy of its most recent survey of the Property (the
“Existing Survey”) and any existing title policies in Seller’s possession. Purchaser may then
obtain a commitment to issue an extended coverage ALTA owner’s title insurance policy relating to
the Property (the “Commitment”), or the Virginia equivalent thereof, issued by Ticor Title
Insurance Company or its local affiliate (the “Title Company”) and accompanied by copies of all
documents and instruments referred to in the Commitment ( the “Exceptions”). Seller shall also
deliver to Purchaser copies of all existing or proposed easements, covenants, restrictions,
agreements or other documents which affect the ownership of title to the Property and which are not
disclosed by the Commitment for the Property, if any.

     (b) Seller shall, within three (3) business days following execution and delivery of this
Agreement, deliver to Purchaser for Purchaser’s review the following documents, but only to the
extent that the following are in Seller’s possession or control or in the possession or control of
Seller’s Manager or affiliates (collectively, the “Property Information”):

     (i) Operating statements for the years 2002, 2003, 2004 and the current year;

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     (ii) Phase I Environmental Report; and if performed, a Phase II Environmental Report;

     (iii) Certificates of Occupancy;

     (iv) Building Plans;

     (v) Copies of service contracts and agreements relating to the Property (the “Service
Contracts”) and all warranties, guaranties and permits relating to the Property;

     (vi) Tax statements for 2003, 2003, 2004, and to the extent available, 2005;

     (vii) Copies of all soils and hazardous materials reports, termite reports, engineering
studies, topographical maps, appraisals and other reports, studies, maps and analyses with
respect to the Property and the Improvements;

     (viii) Copies of subdivision maps and condominium plans;

     (ix) Copies of all documents and certificates from appropriate governmental authorities
relating to the zoning, building and platting status of the Property;

     (x) A description of existing and proposed local improvements affecting the Property,
including assessment levels;

     (xi) Copies of all correspondence with all governmental entities with respect to the
Property;

     (xii) A copy of all property tax statements and assessed value notices. Copies of all
approvals, permits and licenses from each governmental authority having jurisdiction over
the Property as are necessary to permit full use and occupancy of the Property;

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     (xiii) Copies of all Leases, including all tenant leases, amendments, and proposed
tenant leases on the Property and all billings, and common area maintenance charge
reconciliations;

          (xiv) Copies of all plans and construction drawings for all buildings to be constructed on the
Property

          (xv) Insurance loss runs and crime and accident reports for 2002, 2003, 2004 and the current
year;

          (xvi) Capital expenditure reports for 2002, 2003, 2004 and the current year, and capital
expenditure budgets for the current and following calendar years

          (xvii) Current rent roll (to be updated at least monthly), and historical delinquency reports
for 2002, 2003, 2004 and the current year; and

          (xviii) An inventory of all Personal Property.

     Seller shall also deliver to Purchaser such documents, instruments, agreements, reports,
records, studies or other materials or information relating to the Property in the possession of
Seller or Seller’s manager as Purchaser may reasonably request.

     (c) If this Agreement is terminated for any reason prior to completion of the transaction
contemplated herein, Purchaser shall return to Seller all items delivered to Purchaser by Seller
pursuant to Sections 4(a) and 4(b) hereof.

     (d) Purchaser may cause the Existing Survey to be updated, at its own cost and expense, to
reflect the exceptions set forth in the Commitment and any additional matters that would be
revealed by an accurate current survey of the Real Property. Such updated survey (the “Survey”)
shall be delivered to Seller, upon its request.

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5. Title.

     Title Defects. Prior to the expiration of the Review Period (as hereinafter defined),
Purchaser shall notify Seller of any title matters to which Purchaser objects (the “Title Defects”)
(“Purchaser’s Notice”). Any matter disclosed in a Commitment or Survey and not objected to by
Purchaser or subsequently waived by Purchaser shall be deemed a permitted exception (“Permitted
Exception”). Seller shall notify Purchaser of Seller’s decision not to cure any Title Defect
within three (3) days after receipt of Purchaser’s Notice; provided, however, Seller shall remove
monetary liens relating to borrowed funds or other liens securing indebtedness of an
ascertainable amount and mechanic or materialmen’s liens, if any. Seller’s failure to respond
shall be deemed a decision by Seller not to cure any Title Defect other than monetary liens as
provided in the preceding sentence. Within five (5) days of Seller’s election not to cure certain
Title Defects, Purchaser may (i) elect to waive such Title Defects or (ii) terminate this Agreement
in which event Purchaser shall receive a return of the Initial Deposit and, if applicable, the
Additional Deposit, and all interest accrued thereon. Purchaser’s failure to respond shall be
deemed a decision by Purchaser to waive the Title Defects to which Seller decides not to cure.

6. Review Period.

     (a) Purchaser shall have until 5:00 PM Mountain Time on the date Thirty (30) days after the
date hereof (the “Review Period”) to make an evaluation of the Property. If Purchaser elects in
the exercise of its sole discretion to proceed with the purchase of the Property, Purchaser shall
deliver written notice to Seller on or prior to the conclusion of the Review Period, of its
intention to proceed with the purchase of the Property in accordance with the Agreement whereupon,
Purchaser shall be deemed to have waived its right to terminate this Agreement in

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accordance with this Paragraph 6. In the event that Purchaser fails to deliver such written notice on or prior to
the conclusion of the Review Period, then this Agreement shall thereupon be deemed terminated
whereupon the Initial Deposit and all interest thereon shall be returned to Purchaser, and the
parties shall be released from all further obligations under this Agreement.

     (b) At reasonable times and upon reasonable notice to Seller within the Review Period,
Purchaser and its employees, agents and licensees shall have the right to inspect Seller’s books
and records with respect to the Property and to enter the Property for purposes of conducting
soils, environmental and similar tests and of inspecting the Property and its components thereof.
Purchaser may, at its option, retain engineers or other consultants for the
purposes of performing or assisting in such tests and inspections. Seller agrees to cooperate
reasonably with any such investigations, inspections, or tests (so long as such cooperation is at
no expense to Seller), which cooperation shall include providing such notices to the tenants of the
Property as are required by law or to permit Purchaser and its employees and agents to inspect the
Property and interview tenants, provided that a representative of Seller shall have the right to be
present during any interview. (Seller shall provide such representative upon written notice to
Purchaser given not less than one business day prior to the proposed interview date). Purchaser
shall repair and restore the Property or any part or component thereof damaged by any inspection or
test conducted by or at the direction of Purchaser, and shall indemnify, protect, defend and hold
Seller harmless from any loss, cost, damage, expense or liability (including reasonable attorneys’
fees) arising out of property damage or injury to persons occurring as a result of investigations
or tests conducted by or at the direction of Purchaser under this Section 6(b).

7. Closing.

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     (a) The closing of the purchase and sale of the Property shall take place at the offices of
the Escrow Agent, or at such other place as the parties may hereafter agree in writing no later
than Thirty (30) days after the expiration of the Review Period or at such earlier date as may
be agreed to in writing by Seller and Purchaser (herein called the “Closing Date”); provided,
however, that Purchaser shall have the right to extend the Closing Date for up to thirty (30) days,
by delivery of written notice to Seller at least three (3) business days prior to the then
scheduled Closing Date, and concurrently delivering to Escrow Agent an additional deposit in the
amount of $50,000 (this amount, the “Extension Deposit”, to be held along with the Initial Deposit
and the Additional Deposit as part of the Deposit hereunder.).

     (b) On the Closing Date, Seller shall deliver to Escrow Agent (or ,where indicated, to
Purchaser) the following, duly executed and acknowledged if required:

     (i) A Special Warranty Deed conveying to Purchaser fee simple title to the Property
free and clear of all matters created by, through or under Seller, and subject only event to
the Permitted Exceptions (the “Deed”) in the form attached as Exhibit D;

     (ii) A Bill of Sale conveying all of Seller’s right, title, and interest in and to the
Personal Property in the form attached as Exhibit E;

     (iii) An Assignment and Assumption of the Leases, Contracts and Intangibles assigning
all of Seller’s right, title and interest in and to all assignable Service Contracts (to the
extent Purchaser elects during the Review Period to accept the assignment thereof),
intangible property, if any, and the Leases, in the form attached hereto as Exhibit
F (the “Assignment of Leases”), together with notices in the form required by law, and

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reasonably acceptable to Purchaser, executed by Seller, to the tenants under the Leases
notifying them of the change in ownership of the Property;

     (iv) A settlement statement to be prepared by Escrow Agent;

     (v) An affidavit of Seller under the penalty of perjury stating Seller’s United States
taxpayer identification number and that Seller is not a foreign person as defined in
Internal Revenue Code Section 1445;

     (vi) Tenant estoppel certificates in a form to be supplied by Purchaser prior to
expiration of the Review Period, reasonably acceptable to Seller (“Tenant Estoppel
Certificate”) from tenants occupying not less than eighty-five (85%) percent of the rented
square footage of the Property, which executed certificate shall be acceptable to Purchaser
with no adverse disclosure therein, shall have been delivered to Purchaser. If Seller is
unable to procure estoppel certificates from tenants totaling eighty-five (85%) percent of
the rented square footage of the Property, Purchaser may terminate this Agreement. Seller
shall furnish Purchaser with an estoppel certificate covering any Lease(s) for which an
estoppel certificate has not been obtained from the tenant(s) certifying as to the matters
set forth in the form of Tenant Estoppel Certificate which certificate may be accepted by
Purchaser, in its sole discretion. Upon subsequent delivery to Purchaser of any missing
tenant estoppel certificate in the form required herein with no adverse disclosure therein,
Seller’s estoppel certificate shall be null and void as to the Lease covered by such
estoppel certificate and Purchaser shall cancel Seller’s estoppel certificate executed in
lieu thereof and return such canceled Seller’s estoppel certificate to Seller to the extent
that a separate estoppel certificate has been issued for that tenant;

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     (vii) All documents reasonably required by the title insurance company issuing the
Policy to complete the Closing, including but not limited to those documents required by the
title insurance company from Seller for the issuance of an ALTA Extended Coverage Policy of
Title Insurance without standard printed exceptions and with so-called “gap” coverage. In
addition, Seller shall provide UCC searches showing that there are no UCC filings in the
name of Seller or Seller’s general partner or otherwise affecting Seller’s interest in the
Property or, if there are such filings, Seller covenants and agrees the same shall be
removed at or prior to the Closing;

     (viii) All keys and entrance cards used on any part of the Property in Seller’s
possession or control;

     (ix) All original Leases and tenant correspondence files and Service Contracts;

     (x) Originals or copies of any warranties and guaranties received by Seller and to be
assigned to Purchaser, from any contractors, subcontractors, suppliers or materialmen in
connection with any construction, repairs or alterations of the Improvements or any tenant
improvements;

     (xi) Originals or copies of all certificates of occupancy, licenses and permits for the
Improvements;

     (xii) All existing as-built plans and specifications for the Improvements in the
possession of Seller or its manager; and

     (xiii) Copies of all records, books of account, ledgers, statements and other business
records relating to the ownership and operation of the Property and/or the

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administration of the Leases, in whatever mode maintained, including information contained on computer disks.

     (c) Purchaser’s obligation to consummate the transactions contemplated hereby at Closing shall
be subject to and conditioned upon the prior satisfaction or waiver of each of the following
conditions:

(i) The representations and warranties of Seller set forth in this Agreement shall be true,
correct and complete in all material respects as of the Closing, without regard to any
qualification therein as to Seller’s knowledge.

(ii) Seller shall have performed all of its materials obligations under this Agreement, and
the Title Company shall be prepared to issue the Title Policy subject only to the Permitted
Encumbrances and otherwise in the form and subject to the terms agreed upon prior to the
expiration of the Review Period.

(iii) Seller shall have satisfied all of its material obligations under this Agreement,
including delivery of the documents described in Paragraph 7(b) above.

(iv) Purchaser shall be satisfied that none of Seller or any of its affiliates is listed on
any “government lists” and that the sale of the Property to Purchaser will not result in a
violation of the Patriot Act, any OFAC Laws and Regulations or any other anti-terrorism or
anti-money laundering laws and regulations, including, without limitation, the Bank Secrecy
Act, as amended and the Money Laundering Control Act of 1986, as amended.

     So long as Purchaser is not in default hereunder, if any condition to Purchaser’s obligation
to proceed with the Closing has not been satisfied as of the Closing Date, Purchaser may, in its
sole discretion, (i) terminate this Agreement by delivering written notice to Seller on

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or before the Closing Date, (ii) elect to extend the Closing until such condition is satisfied, or (iii)
elect to consummate the transaction, notwithstanding the non-satisfaction of such condition, in
which event Purchaser shall be deemed to have waived any such condition. Notwithstanding the
foregoing, the failure of a condition due to the breach of this Agreement shall not relieve such
breaching party from any liability it would otherwise have hereunder. In the event Purchaser elects
to terminate this Agreement pursuant to this Paragraph 7(c), the Deposit shall be returned to
Purchaser. Purchaser may waive compliance on Seller’s part under any of the foregoing items by an
instrument in writing.

     (d) On the Closing Date, Purchaser shall deliver to Escrow Agent the following, duly executed
and acknowledged if required:

     (i) The balance of the Purchase Price, in accordance with the terms set forth in
Paragraph 3 above, adjusted to reflect any prorations pursuant to Paragraph 9;

     (ii) The Assignment and Assumption of Leases, Contracts and Intangibles; and

     (iii) A settlement statement to be prepared by Escrow Agent.

     (e) Provided that Escrow Agent has received all of the items required to be delivered pursuant
to this Agreement (or a waiver from the party for whose benefit such item is being delivered) and
that it has not received prior written notice from Purchaser that Purchaser has elected to
terminate its rights and obligations hereunder, and provided that Purchaser has received the
Commitment subject only to the Permitted Exceptions and conditioned solely upon recordation of the
Deed and the Title Company is prepared to issue the Title Policy, Escrow Agent is authorized and
instructed (i) with respect to the Property, to record the Deed and other

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documents delivered to the Escrow Agent in accordance with recording instructions set forth in a letter to be delivered to
Escrow Holder by Purchaser (or if no such letter is received prior to the closing, in accordance
with customary practice), (ii) to deliver those other documents and instruments delivered into
Escrow to the party for whose benefit such documents or instruments were made and (iii) to deliver
the Purchase Price, as adjusted pursuant to Section 9 hereof, upon receiving confirmation of
recording.

8. Expenses.

     Seller and Purchaser shall each pay one-half of the grantor’s taxes and the state, city, or
county taxes relating to the transfer of the real, personal or intangible property. Purchaser shall
pay the cost of updating the Existing Survey, as well as the premium for a standard Title Insurance
Policy, and the extra premium for extended coverage under such title policy. Purchaser shall also
pay for the cost of a new Phase I Environmental Study (if desired). Escrow costs charged by the
Escrow Agent shall be shared equally by Seller and Purchaser. All other
closing costs shall be allocated between Purchaser and Seller by Escrow Agent in accordance
with practice and custom for commercial real estate closings in Hampton, Virginia. The Purchaser
shall pay the fees of the Purchaser’s attorney, and any other closing expenses incurred by the
Purchaser. Seller shall pay the real estate brokerage commission payable to the Broker (as
hereinafter defined) upon the closing of title, as provided in Paragraph 13 hereof. The Seller
shall pay the fees of the Seller’s attorney, and any other closing expenses incurred by the Seller,
and the costs and expenses required to be paid by Seller as provided in this Agreement.

9. Closing Prorations.

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     The following items shall be prorated and adjusted between the Seller and the Purchaser as of
midnight on the day preceding the Closing Date:

     (a) Rents. All rents and other receipts actually received in the month in which the
Closing occurs shall be prorated as of the Closing. All prepaid rent and security deposits not
forfeited by Tenant, shall be delivered to Purchaser at Closing. Purchaser shall use reasonable
efforts after the Closing to collect delinquent rents for the period up to the Closing, provided,
however, that all collections shall be applied first to rent and charges for periods commencing
after the Closing including costs of collection, if any, and then to periods prior to the Closing,
and Purchaser shall not be required to institute litigation or to terminate a tenant’s lease in
order to pursue collection. Percentage Rents (if any) shall be prorated by Purchaser when received
by Purchaser, based on twelve thirty (30) day months.

     (b) Common Area Maintenance Charges. All reimbursable expenses (other than items
described under the next succeeding paragraph) and revenues actually collected and attributable to
reimbursement of those expenses shall be reconciled at Closing, such that if Seller has collected
sums in excess of its reimbursable expenses under the Leases, Seller shall pay such
excess to Purchaser. In the event that such reconciliation shows that Seller has collected
less than its incurred reimbursable expenses under the Leases, Purchaser shall remit the shortfall
to Seller, when and to the extent actually collected from tenants (with such collections applied
first to amounts due to Purchaser, and then to Seller) not later than the expiration of three
months after the conclusion of the twelve-month period then in progress with respect to the
budgeting of such expenses under the Leases.

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     (c) Taxes. Real estate taxes, recurring assessments, and personal property taxes, if
any, on all or any portion of the Property, based on the regular and supplemental tax bills for the
calendar year in which the Closing occurs (or, if such tax bill has not been issued as of the date
of Closing the regular and supplemental tax bill for the calendar year preceding that in which the
Closing occurs) shall be prorated as of the Closing. If any supplemental real estate taxes are
levied for any period preceding the Closing, the parties will, immediately after the closing or the
issuance of the supplemental real estate tax bill (whichever last occurs), prorate between
themselves, in cash, without interest and to the date of the Closing Date, the supplemental real
estate taxes shown by such bill.

     (d) Utilities. Unless such items are subject to proration under subparagraph (b)
above, all utilities, including gas, water, sewer, electricity, telephone and other utilities
supplied to the Property shall be read as of the Closing Date. Seller shall pay, prior to the
Closing Date, all such amounts for which a bill has been received or for which service was rendered
prior to the Closing Date.

     (e) Service Contracts. Amounts payable under Service Contracts which are not being
terminated shall be prorated on an accrual basis. Seller shall pay, prior to the Closing Date, all
such amounts for which a bill has been received or for which service was rendered prior to the
Closing Date. Seller shall deliver to Escrow, for the benefit of Purchaser, evidence of the
cancellation or termination of all Service Contracts other than those to be assumed by Purchaser in
its discretion, and Seller shall be responsible for all such cancellation costs.

     (f) Improvement Lien Assessments. All improvement lien assessments due and payable
prior to the Closing Date shall be paid in full by Seller at Closing.

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     (g) Other Items. All other proratable items, including without limitation licenses
and permits being assumed by Purchaser (if any) and other income from, and expenses associated
with, the Property shall be prorated between Purchaser and Seller as of the Closing:

     (i) All outstanding tenant finish and improvement costs, architect fees, space
planning and design fees, leasing commission costs and all other tenant concessions, costs,
expenses and legal fees (collectively, “Lease Expenses”) paid or incurred in connection with
Leases or amendments thereof executed prior to the date hereof shall be the responsibility
of Seller.

     (ii) Any Lease Expenses paid or incurred in connection with Leases or amendments
thereof executed on or after the date hereof in accordance with Paragraph 15.6 hereof,
including third party referral fees with respect to Leases or other rental agreements
(including, without limitation options, renewals and extensions) payable by Purchaser
pursuant to Paragraph 15.6 hereof, shall be the responsibility of Purchaser, provided that
the subject lease and the attendant costs are disclosed to and approved by Purchaser.
Seller shall receive a credit at Closing for any such Lease Expenses for which Purchaser is
responsible and which have been paid by Seller prior to the Closing Date.

     Purchaser shall be solely responsible for the payment of all Lease Expenses payable in

connection with any options, renewals, extensions, or otherwise, accruing or arising under Leases
and amendments thereof (whether executed before or after the Closing Date) after the Closing
Date provided that such Lease Expenses by Seller in Exhibit C to this Agreement, or
otherwise approved in writing by Purchaser.

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     Purchaser and Seller’s obligation to prorate shall survive the Closing for a period of one (1)
year (unless within such time Purchaser or Seller makes a claim against the other party to this
Agreement with respect to such obligation to prorate, in which case such obligation shall survive
without limitation), and Purchaser and Seller shall use good faith efforts to conclude prorations
with respect to percentage rent and common area maintenance charges as soon as practicable after
the determination of the amounts thereof. Notwithstanding the foregoing, in the event that any of
the tenants at the Property challenge any expense pass-throughs or reimbursable expense
reconciliations with respect to any period prior to the Closing, Seller hereby agrees that it shall
be solely responsible to repay to such tenant any overpayments by such tenant, and shall repay such
overpayments (and any other amounts owing by the landlord under the relevant lease and relating to
such overpayment, including without limitation audit costs and interest, if applicable) to such
tenant within ten (10) days after the determination of the amount thereof. Seller hereby
indemnifies Purchaser from and against any and all loss, costs and expense incurred by Purchaser as
a result of any such overpayments by tenants. Seller’s obligations under the immediately preceding
two sentences shall survive the Closing without limitation. Nothing in the Assignment of Leases
shall be construed to amend, modify or diminish in any way the provisions of this Section 9.

     The net amount of all prorations and adjustments shall be credited or debited, as the case may
be, against the Purchase Price payable at the Closing pursuant to Paragraph 3 above. The Purchaser
hereby acknowledges that it has no right, title or interest in or to any refunds which
may hereafter be payable to the Seller, or the tenants, in respect of real estate taxes, water or
sewer charges or other assessments which accrued and related to the period prior to the Closing

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Date, except to the extent that (i) a claim or offset for such amount is raised against Purchaser
by a tenant, or (ii) the credit also applies to periods following the Closing Date. To the extent
that such refunds are paid to Seller and are due to tenants, Seller does hereby covenant and agree
that it shall, upon receipt thereof, reimburse tenants for their applicable share of such refunds.

10. Payment of Liens.

     If, on or before the Closing Date, there be any other liens or encumbrances which the Seller
is obligated to pay and discharge, the Seller may use any portion of the Purchase Price to satisfy
the same. The existence of any such taxes or other liens and encumbrances shall not be deemed
objections to title if the Seller shall take such steps as shall be necessary to cause the Title
Company insuring the title of the Property in favor of the Purchaser to omit same or to insure
against collection of same out of the Property.

11. Representations by Seller.

     All understandings and agreements heretofore had between the parties hereto are merged in this
Agreement, which alone fully and completely expresses their agreement. The Purchaser is entering
into this Agreement not relying upon any statement or representation not embodied in this Agreement
made by any person. Prior to the expiration of the Review Period, the Purchaser will have had an
opportunity to inspect the Property. Neither the Seller nor any persons purporting to act for the
Seller has made or now makes any representations or warranties as to the physical condition,
income, expense, operation or any other matter of thing affecting or relating to the Property,
except as herein specifically set forth. The Seller is not liable or bound in any manner by any
financial statements or written agreements or statements, or representations which
have been made, or any real estate brokers’ “set-ups” or information pertaining to the
Property

-20-

 

furnished, by any real estate broker, agent or employee, servant or other persons. Except
as specifically provided herein, but without in any way limiting the generality of the foregoing as
to matters not specifically stated, the Purchaser further acknowledges and agrees that in entering
into this Agreement and purchasing the Property:

     (i) The Seller and has not made, will not and does not make any warranties or
representations, whether express or implied, with respect to the Property, the value,
profitability or marketability thereof; and

     (ii) The Seller has not and will not make any warranties with respect to the Property,
whether express or implied, of merchantability, habitability or fitness for a particular
use; and

     Notwithstanding anything to the contrary contained in the foregoing provisions of this
Paragraph 11, the Seller does hereby make the following representations to the Purchaser effective
as of date of this Agreement and again as of the Closing Date which Purchaser is entitled to rely
upon:

     As used herein and elsewhere in this Agreement, the term “Seller’s actual knowledge” shall
mean the actual knowledge of each of Edward M. Gilbert and Cheryl S. Willoughby, without any duty
of investigation of any kind. Seller represents and warrants that the foregoing persons are the
only persons employed by General Partner of Seller or its manager with day-to-day managerial or
supervisorial authority over the Property.

     11.1 Authority. Seller is duly organized and validly existing under the laws of the
jurisdiction of its organization, is duly qualified to conduct business and own real property in
the Commonwealth of Virginia, and has all requisite power to own all of its properties and assets
and

-21-

 

to carry on its business as presently conducted. The execution, delivery and performance of
this Agreement and all other agreements contemplated hereby has been duly and validly authorized by
all necessary action of Seller and the Agreement and all other agreements contemplated thereby are
and will be valid and binding obligations of Seller, enforceable against Seller in accordance with
their respective terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or affecting generally the enforcement of
creditors’ rights and general principles of equity.

     11.2 Title Seller holds fee simple title to the Property, and to Seller’s actual
knowledge, such fee simple title is free and clear of all liens, encumbrances, security interests,
charges, adverse claims and other exceptions to title, except for the Leases, Service Contracts,
Existing Loan (which shall be paid in full and satisfied at Closing), matters disclosed by the
Survey and the Permitted Exceptions. Nothing in the Deed shall be construed to amend, modify or
diminish the effectiveness or survival of the foregoing representation.

     11.3 The Leases. A list of the current Leases is set forth in the rent roll attached
hereto as Exhibit G (the “Rent Roll”). The information contained in the Rent Roll is
complete, accurate and consistent with Seller’s records (as they relate to the Property), which
records have been maintained by Seller in accordance with good property management standards.
True, complete and correct copies of the Leases and all amendments and modifications thereto have
been delivered to Purchaser. Except for the Leases set forth in the Rent Roll, there are no other
leases, licenses or other agreements affecting the occupancy of the Property. With respect to each
Lease:

-22-

 

     (i) The Lease is in full force and effect, and constitutes the valid and binding legal
obligation of Seller and the respective tenant, enforceable against each of them in
accordance with its terms;

     (ii) There are no understandings, oral or written, between the parties to the Lease
which in any manner vary the obligations or rights of either party as set forth in the Lease
(and all amendments thereto delivered to Purchaser);

     (iii) Except as indicated on the Rent Roll, there is no default by Seller under the
Lease, there is no default by the tenant under the Lease with respect to payment of base
rent and reimbursable expenses and to Seller’s knowledge, there is no other default by the
tenant under the Lease; and

     (iv) No rent or additional rent under the lease has been paid for more than thirty (30)
days in advance of its due date.

     (v) The Rent Roll states all security deposits, prepaid rents and other deposits or
prepayments for each Lease and Seller or Seller’s agent are currently in possession of all
such deposits. No tenant is entitled to any rebate, concession, special allowance or other
benefits, except as stated in the Leases.

     11.4 No Litigation or Adverse Events. Seller has received no written notice of, and
to Seller’s actual knowledge, there are no pending or threatened investigations, actions, suits,
proceedings or claims against or affecting Seller or the Property, at law or in equity or before or
by any federal, state, municipal or other governmental department, commission, board, agency, or
instrumentality, domestic or foreign.

-23-

 

     11.5 Compliance with Laws. To the best of Seller’s knowledge, Seller is in
compliance in all material respects with all applicable laws, ordinances, rules and regulations
applicable to the ownership or operation of the Property. Seller has not received from any
insurance company or board of fire underwriters or any governmental authority any notice, which
remains uncured, of any defect or inadequacy in connection with the Property or its operation.

     11.6 No Defaults in Other Agreements. To Seller’s actual knowledge, neither Seller
nor any other party is in material default under any Service Contract affecting the Property, and
no event exists which, with the passage of time or the giving of notice or both, will become a
material default thereunder on the part of the Seller or any other party thereto. To Seller’s
knowledge, Seller is in compliance in all material respects with the terms and provisions of the
covenants, conditions, restrictions, rights-of-way or easements affecting the Property.

     11.7 Eminent Domain. To Seller’s actual knowledge, there is no existing or proposed
or threatened eminent domain or similar proceeding, or private purchase in lieu of such a
proceeding which would affect the Property in any material way.

     11.8 Licenses, Permits, CO’s, Zoning, etc. To Seller’s actual knowledge, all permits,
certificates of occupancy, business licenses and all other notices, licenses, permits, certificates
and authority required as of the date hereof and as of the Closing Date in connection with the use
or occupancy of the Property have been obtained and are in full force and effect and in good
standing.

- 24 -

 

     11.9 Taxes and Assessments. All real property taxes, and all Seller’s personal
property taxes, relating to the Property, excepting those for the current tax year which are not
yet overdue (i.e., which are still payable without interest or penalty), have been paid in full.

     11.10 Property Information. All Property Information delivered to or made available to
Purchaser have been prepared and assembled in the ordinary course of business by Seller, and are
believed by Seller to be true, complete and accurate and have been relied upon by Seller.

     11.11 Hazardous Materials. To the best of Seller’s knowledge, other than as disclosed in the
environmental reports delivered to Purchaser during the Review Period, no hazardous conditions
exist at the Property in violation of Environmental Laws. As used herein, “Environmental Laws” mean
any federal, state or local environmental statutes, regulation or ordinance in effect as of the
date hereof related to Hazardous Substances, and “Hazardous Substances” means any substance or
material defined or designated as a hazardous or toxic waste material or substance under federal or
state laws, statutes or regulations. Seller has no notice of the presence of mold or similar
substances at the Property.

     11.12 Employees. Seller has no employees.

     11.13 Mechanic’s Liens. All bills and claims for labor performed and materials
furnished to or for the benefit of the Property currently due and contracted for by Seller or its
manager have been paid in full, and there are no mechanic’s or materialmen’s liens (whether or not
perfected) on or affecting the Property as a result of labor performed or materials furnished and
contracted for by the Seller or its manager.

- 25 -

 

     11.14 Operating Statements. To Seller’s actual knowledge, the financial and operating
statements and related information delivered by Seller to Purchaser fairly present the profit or
loss from the management and operation of the Property for the periods covered thereby and, in all
material respects, accurately reflect all rents and other gross receipts, and all amounts paid by
Seller for electricity, water, sewer, other utility services, insurance, fuel, maintenance and
repairs (whether capitalized or expensed), real estate taxes, payroll and payroll taxes and all
other operating and other expenses associated with the Property.

     11.15 Reserved.

     11.16 No Leases of Property or Assets. No material portion of the Personal Property
or fixtures with respect to the Property (other than fixtures owned or installed by tenants) is
leased by the Seller as lessee.

     11.17 Contracts, Commissions. Seller has delivered to Purchaser true, complete and
correct copies of all Service Contracts.

     The representations and warranties set forth in this Section 11 shall survive the execution
and delivery of this Agreement, the delivery of the Deed and transfer of title to the Property,
until the date that is one year after the Closing Date; provided however, that in the event
Purchaser makes a written claim against Seller with respect to any representation or warranty prior
to the date which is one year after the closing date, then such representation or warranty shall
survive without limitation as to such written claim.

     Notwithstanding anything contained in this Agreement to the contrary, all of the
representations, warranties and certifications (the “Representations”) which are made by Seller

- 26 -

 

and set forth herein or in any of the documents or instruments required to be delivered by
Seller hereunder, shall be subject to the following conditions and limitations:

     (i) There shall be no liability on the part of Seller, after the Closing, for breaches
of representations of which Purchaser had actual knowledge prior to the Closing; and

     (ii) In the event that, after the date hereof and prior to the time of Closing, during
the course of Purchaser’s inspections, studies, tests and investigations conducted pursuant
to Section 6 hereof, or through other sources, Purchaser gains actual knowledge that a
Representation was or has become untrue or inaccurate, and such fact or circumstance was not
intentionally withheld from Purchaser by Seller with the intent to defraud Purchaser, then
Purchaser shall have the right to (a) declare this Agreement terminated, in which event the
Deposit shall be returned to Purchaser and Seller shall reimburse Purchaser for its actual
out of pocket expenses incurred in entering into this Agreement and conducting its
inspections and investigations concerning the Property, up to but not to exceed $25,000.00,
or (b) in the alternative commence an action for specific performance of this Agreement by
Seller.

     SUBJECT TO THE EXPRESS REPRESENTATIONS AND WARRANTIES OF SELLER CONTAINED IN THIS AGREEMENT,
AND EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, SELLER MAKES NO REPRESENTATION,
CERTIFICATION OR WARRANTY OF ANY KIND, INCLUDING ANY REPRESENTATION, CERTIFICATION OR WARRANTY,
EXPRESS OR IMPLIED, AS TO THE CONDITIONS OR STATE OF REPAIR OF THE REAL ESTATE, PERSONAL

- 27 -

 

PROPERTY,
OR ANY PORTION THEREOF, OR OF VISIBLE OR HIDDEN DEFECTS IN MATERIAL, WORKMANSHIP OR CAPACITY OF THE
REAL ESTATE, PERSONAL PROPERTY, OR ANY PORTION
THEREOF, AND THERE ARE NO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE
AS TO THE REAL ESTATE, PERSONAL PROPERTY, OR ANY PORTION THEREOF EXCEPT AS EXPRESSLY PROVIDED IN
THIS AGREEMENT. EXCEPT AS PROVIDED IN THIS AGREEMENT, DELIVERY OF THE REAL PROPERTY AND PERSONAL
PROPERTY AT CLOSING WILL BE “AS IS, WHERE IS” AND WITH ALL FAULTS, AND, EXCEPT AS EXPRESSLY STATED
IN THIS AGREEMENT, SELLER HAS DISCLAIMED ANY EXPRESS OR IMPLIED WARRANTIES WITH RESPECT TO THE
MERCHANTABILITY PHYSICAL CONDITION OR FITNESS FOR PARTICULAR USE OR PURPOSE OF THE REAL ESTATE AND
PERSONAL PROPERTY.

12. Limitation of Seller’s Liability.

     If the Seller shall be unable to convey good and indefeasible title subject to and in
accordance with this Agreement, or fails to deliver such title in accordance with the terms and
conditions of this Agreement, or any of the Seller’s representations made herein shall prove to be
false in any material respect, in the absence of gross negligence, willful or intentional
misconduct or breach, or fraud, the Purchaser shall have the right to:

     (i) Declare this Agreement terminated, in which event the Deposit shall be returned to
Purchaser and Seller shall promptly reimburse Purchaser for its actual out of pocket
expenses incurred in entering into this Agreement and conducting its inspections and
investigations concerning the Property and this Agreement, up to but not to exceed

- 28 -

 

$25,000.00, and the parties obligations hereunder, shall be terminated and shall have no
force or effect; or

     (ii) Commence an action for specific performance of this Agreement against Seller.

     The Seller shall not be required to bring any action or proceedings or otherwise incur
any expenses to render title to the Property indefeasible except as required by Paragraph 5 hereof.
The Purchaser may, nevertheless, accept such title as the Seller may be able to convey, without a
reduction of the Purchase Price or credit or allowance against the same and without further
liability on the part of Seller.

     In the event Seller breaches this Agreement as a result of gross negligence, willful or
intentional misconduct or breach, or fraud, Purchaser shall be entitled to pursue any and all
remedies available under applicable law or in equity.

13. Brokerage.

     The Purchaser represents that no broker, licensed or otherwise, brought the Property to the
attention of the Purchaser or had any communication with the Purchaser in regard to same except
Cushman & Wakefield (“Broker”). If any claim is made for brokerage commissions as a result of the
acts of the Purchaser other than by Broker, the Purchaser hereby agrees to indemnify the Seller
against, and to defend and hold the Seller harmless from any and all claims for brokerage
commissions by and for any legal fees and expenses incurred in defending such claims. The
Purchaser agrees that the foregoing representation and indemnity shall survive the delivery of the
Deed without limitation and shall inure to the benefit of the Seller and to the Seller’s successors
and assigns. The Seller represents that no broker, licensed or otherwise, has

- 29 -

 

been retained by
Seller except the Broker. The Seller agrees to pay any and all commissions due to the Broker. If
any claim is made for brokerage commissions by Broker or as a result of the acts of the Seller, the
Seller hereby agrees to indemnify the Purchaser against, and to defend and
hold the Purchaser harmless from any and all claims for brokerage commissions and for any
legal fees and expenses incurred in defending such claims. The Seller agrees that the foregoing
representation and indemnity shall survive the delivery of the Deed without limitation and shall
inure to the benefit of the Purchaser and to the Purchaser’s successors and assigns.

14. Liquidated Damages.

     If this transaction is not consummated by reason of a material default by Purchaser hereunder
following the expiration of the Review Period and Seller is not then in default, then Seller shall
retain the Deposit as full compensation for its damages and as it sole remedy, except that Seller
shall be entitled to exercise any rights or remedies it may have by virtue of any indemnity created
or granted herein.

15. Pre-Closing Management and Operation.

     From the execution of this Agreement through the Closing:

     15.1 Maintenance. In addition to Seller’s other obligations hereunder, Seller shall,
upon and after the date of this Agreement and to and including the Closing Date, at Seller’s sole
cost and expense, pay all taxes, assessments, fines, penalties, charges, insurance premiums and
other operating expenses, and maintain the Property in the ordinary course of business consistent
with past practice, shall make all repairs, maintenance and replacements of the Improvements and
any Personal Property and otherwise operate the Property in its ordinary and customary manner, and
otherwise in the same manner as before the making of this Agreement, the same as

- 30 -

 

though Seller were
retaining the Property. Seller shall not make any alterations to the Property without first
receiving Purchaser’s prior written consent thereto. Seller shall, throughout the remaining term
of this Agreement, maintain all risk fire and extended coverage casualty insurance, insuring for
full replacement value the Improvements and Personal Property, and shall
maintain rent continuation insurance coverage valid for a period of not less than 12 months
following any casualty.

     15.2 Agreements. After the date hereof, without Purchaser’s prior written consent
(which will not be unreasonably withheld) in no event shall Seller enter into any agreement or
contract with respect to the Property, which is not terminable on thirty (30) days’ prior notice
(without premium or penalty) or which will be binding upon Purchaser following the Closing.

     15.3 Encumbrances. Seller shall not, in between the date of this Agreement and the
Closing Date, mortgage, encumber or suffer to be encumbered all or any portion of the Property,
which encumbrances would survive the Closing Date, without the prior written consent of Purchaser.

     15.4 Consents and Notices. Seller and Purchaser shall cooperate with each other and
exercise commercially reasonable efforts to obtain as of the Closing Date, all consents from, and
provide all notices to, any third party and any governmental or regulatory authority which are
required pursuant to any Contract or any applicable laws as a condition to or in connection with
the execution, delivery or performance of this Agreement or other documents and instruments
contemplated thereby.

- 31 -

 

     15.5 Reserved.

     15.6 Leases. To the extent that any new leasing proposals are given serious
consideration by Seller, Seller agrees to provide Purchaser with information in its possession and
with regular updates regarding such proposals, including without limitation a list of all Leasing
Expenses incurred in connection therewith. After the date hereof, provided the Agreement has not
been terminated, the Purchaser shall have the right to review and approve any additional leasing.
The parties agree that if the Purchaser has approved any new lease(s) and said lease(s) is/are
fully executed after the date hereof and prior to Closing, that:

     (i) Purchaser agrees to be bound as landlord subsequent to Closing;

     (ii) Purchaser shall pay to Seller at Closing all Leasing Expenses incurred in
connection therewith, so long as such Leasing Expenses were disclosed to Purchaser prior to
Purchaser’s approval of such Lease, and any sums expended by Seller and disclosed to
Purchaser prior to Purchaser’s approval of such lease for tenant improvements; and

     (iii) Purchaser shall assume responsibility to complete all landlord’s obligations
after Closing set forth in such Lease.

16. Notices.

     Notices, requests and other communications under this Agreement shall be in writing and shall
be deemed to have been given upon (a) hand delivery, (b) receipt by mail, postage prepaid, return
receipt requested (as evidenced by an executed return receipt), or refusal of delivery thereof, (c)
upon receipt from any reliable overnight courtier service, or (d) upon electronic confirmation of
receipt of facsimile transmission addressed as follows:

- 32 -

 

	 	 	 
	If to the Purchaser:

	 	Asset Capital Corporation, LLC
	 

	 	7315 Wisconsin Avenue, Suite 205 East
	 

	 	Bethesda, MD 20814
	 

	 	Attn: William B. Le Blanc
	 

	 	Phone: (301) 656-2333
	 

	 	Fax: (301) 656-1960

- 33 -

 

	 	 	 
	With a Copy to:

	 	DLA Piper Rudnick Gray Cary US LLP
	 

	 	550 S. Hope Street, 24th Floor
	 

	 	Los Angeles, CA 90071
	 

	 	Attn: Howard A. Parelskin
	 

	 	Phone: (213) 330-7775
	 

	 	Fax: (213) 330-7575
	 
	 	 
	If to Seller:

	 	Executive Tower Associates,
	 

	 	Limited Partnership
	 

	 	c/o BGK Realty, Inc.
	 

	 	330 Garfield Street
	 

	 	Santa Fe, NM 87501
	 

	 	Attn: Edward M. Gilbert
	 

	 	Phone: (505) 992-5100
	 

	 	Fax: (505) 983-7813

or at such other address of which the Seller or the Purchaser shall have given notice to the other
as herein provided.

17. Casualty or Condemnation.

     If, prior to the Closing, all or any material portion of the Property shall be destroyed or
damaged, or if, prior to the Closing, any portion of the Property shall be subjected to a threat of
condemnation, or shall become the subject of any proceedings, judicial, administrative, or
otherwise, with respect to a taking by eminent domain or condemnation, Seller shall promptly notify
Purchaser thereof, and Purchaser, at its option, may, within fifteen (15) days after receipt of
such notice thereof, cancel this Agreement by written notice, in which event the parties hereto
shall be relieved and released of and from any further duties, obligations, rights, or liabilities
hereunder, and the Deposit shall be returned to Purchaser. If the Closing Date is within the
aforesaid fifteen (15) day period, then the Closing shall be extended to the next business day
following the end of said fifteen (15) day period. If under such circumstances Purchaser elects to
complete the transactions contemplated in this Agreement, or if less than a material portion of the

- 34 -

 

Property is destroyed or damaged or taken by eminent domain or condemnation, this
Agreement shall remain in full force and effect, and the purchase contemplated herein, less
any portion of the Property destroyed or damaged or taken by eminent domain or condemnation, shall
be consummated with no further adjustment or modification, and at the Closing, Seller shall assign,
transfer, and set over to Purchaser all the right, title, and interest of Seller in and to any
insurance proceeds resulting from any casualty or any awards that have been or may thereafter be
made for any taking or condemnation, and Purchaser shall receive a credit at the Closing in the
amount of any proceeds received in accordance with this Section 18 and in the amount of any
deductible provided for in Seller’s insurance policy, plus any additional amounts which Purchaser
reasonably determines which are necessary to complete required repairs.

     A “material portion” of the Property shall be deemed taken or subject to a casualty if:

     (i) The cost to repair or replace such portion exceeds $500,000;

     (ii) Purchaser determines that the Property so affected is materially and adversely
affected by such taking or threatened taking; or

     (iii) Any lessee or group of lessees leasing 15,000 square feet or more in the
aggregate (as set forth on the Rent Roll) has a right to terminate its lease (or leases) as
a result of such taking or threatened taking and does not irrevocably waive such right prior
to Closing in a form reasonably acceptable to Purchaser.

18. Seller’s Affidavit.

     If a search of the title to the Property discloses judgments, bankruptcies, or other
returns against other persons having names the same as or similar to that of the Seller, the Seller
will, on request, deliver to the Purchaser or to the Title Company, an affidavit showing that such

- 35 -

 

judgments, bankruptcies, or other returns are not against the Seller. In addition, Seller
shall, on request, deliver to the Purchaser or to the Title Company, an ERISA representation and
affidavit to facilitate the closing of the transaction and issuance of an ALTA extended Title
Policy.

19. Possession.

     Possession of the Property shall be delivered to Purchaser on the Closing Date pursuant to the
terms of this Agreement, subject to the Permitted Exceptions, the Leases disclosed on the Rent
Roll, and all new written leases theretofore disclosed to Purchaser and approved by Purchaser
during the Review Period or otherwise executed by Seller with Purchaser’s consent.

20. Purchaser’s Authority.

     The Purchaser does hereby represent and warrant for itself and its assigns that:

     (i) Subject to receiving approval of Purchaser’s Board of Directors, the Purchaser has
the full right and power to enter into this Agreement and to observe, fulfill and perform
its obligations hereunder; and

     (ii) The execution and delivery of this Agreement and the consummation of the
transactions contemplated herein and compliance with the terms and conditions of this
Agreement, do not and will not conflict with or result in a breach of any judgment, order or
decree of any governmental body or court, domestic or foreign, having jurisdiction over the
Purchaser or its assigns, and do not and will not conflict with any other agreement entered
into by the Purchaser or its assigns.

21. Assignment.

     Purchaser may assign all or any portion of its rights under this Agreement to any person or
entity with the prior written consent of Seller which content shall not be unreasonably

-36-

 

withheld. If such assignment is to an affiliate or successor by merger or an entity
controlled by Purchaser, then no consent to such assignment shall be required.

22. Survival.

     Any representation and warranties made herein by the Seller shall survive the Closing Date as
set forth in Section 11 hereof. Covenants shall survive the Closing Date and delivery of the Deed
without limitation. Proration obligations shall survive as set forth elsewhere in this Agreement.

23. Binding Effect.

     This Agreement may not be changed or terminated orally. This Agreement applies to and binds
and inures to the benefit of the heirs, executors, administrators, successors and assigns of the
respective parties.

24. Construction.

     This Agreement shall be governed by and construed in accordance with the laws of the
Commonwealth of Virginia.

25. Counterpart Originals.

     This Agreement may be executed in any number of counterpart duplicate originals all of which
will be deemed to constitute but one document.

26. Time of Essence.

     Time is of the essence in connection with all dates and time periods specified in this
Agreement.

	27.	 	Confidentiality.

-37-

 

     Purchaser and Seller shall keep all of the terms and conditions of this Agreement confidential
except for disclosure to such partners, investors, attorneys, accountants, consultants and lenders
with a bona fide need to know.

-38-

 

29. Submission.

     Submission of this Agreement by Seller or ‘eller’s agent, or their respective agents or
representatives, to Purchaser for examination and/or execution shall not in any manner bind Seller
and no obligations on Seller shall arise under this Agreement unless and until this Agreement is
fully signed and delivered by Seller and Purchaser. Submission of this Agreement by Purchaser or
Pur’haser’s agent, or their respective agents or representatives, to Seller for examination and/or
execution shall not in any manner bind Purchaser and no obligations on Purchaser shall arise under
this Agreement unless and until this Agreement is fully signed and delivered by Purchaser and
Seller.

30. No Recording.

     Seller and Purchaser agree that neither this Agreement nor any memorandum thereof shall be
recorded.

31. No Personal Liability of Officers or Directors of General Partner of Seller or of Purchaser.

     Purchaser and Seller respectively acknowledge that this Agreement is entered into by a limited
partnership as Seller and a limited liability company as Purchaser and each party agrees that no
individual officer or director or representative of Seller or Purchaser or its partners shall have
any personal liability under this Agreement or any document executed in connection with the
transactions contemplated by this Agreement.

32. No Third Party Rights.

-39-

 

     Nothing in this Agreement, express or implied, is intended to confer upon any person, other
than the parties hereto and their respective successors and assigns, any rights or remedies under
or by reason of this Agreement.

33. Attorneys’ Fees.

     If any litigation is initiated or defended by any party to the Agreement against the other
party to this Agreement relating to this Agreement or the subject matter hereof, the party
prevailing in such litigation shall be entitled to recover, in addition to all damages allowed and
other relief, all reasonable attorneys’ fees, court costs and other litigation costs incurred in
connection therewith.

34. Audit Cooperation.

     At Purchaser’s requiest, at any time before or after Closing, .Seller shall provide to
Purchaser’s designated independent auditor access to the books and records of the Property, and all
related information regarding the period for which Purchaser is required to have the Property
audited under the regulations of the Securities and Exchange Commission, and Seller shall provide
to such auditor a representation letter regarding the books and records of the Property, in
substantially the form of Exhibit H attached hereto, in connection with the normal course
of auditing the Property in accordance with generally accepted auditing standards. The Purchaser
agrees to indemnify and hold harmless the Seller from any claim, damage, loss, or liability to
which Seller is at any time subjected by any person who is not a party to this Agreement as a
result of Seller’s compliance with this paragraph.

[Signature Page to Follow]

-40-

 

     IN WITNESS WHEREOF, this Agreement has been duly executed by the Purchaser and the Seller
hereto on the day and year set forth below opposite their respective signatures.

	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	The Seller:	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	EXECUTIVE TOWER ASSOCIATES,	 	 
	 	 	 	 	LIMITED PARTNERSHIP	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	By:	 	BGK Realty, Inc., its general partner	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Paul S. Gerwin	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	 Paul S. Gerwin	 	 
	 

	 	 	 	Its:
	 	Executive Vice President	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	The Purchaser:	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	ASSET CAPITAL CORPORATION, L.L.C.	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ William LeBlanc	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	 William B. LeBlanc III	 	 
	 

	 	 	 	Its:
	 	Principal	 	 

-41-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]