Document:

EX-10.1 PURCHASE AND SALE AGREEMENT

 

EXHIBIT
10.1

PURCHASE AND SALE AGREEMENT

BETWEEN

CSC ASSOCIATES, L.P.

AND

BENTLEYFORBES ACQUISITIONS, LLC

BANK OF AMERICA PLAZA

ATLANTA, GEORGIA

July 14, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE 1. DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE 2. PURCHASE AND SALE	 	 	7	 
	 2.1.
	 	      Agreement to Sell and Purchase	 	 	7	 
	 2.2.
	 	      Earnest Money	 	 	8	 
	 2.3.
	 	      Purchase Price	 	 	8	 
	 2.4.
	 	      Closing	 	 	8	 
	 2.5.
	 	      Defeasance of Existing Loan	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE 3. PURCHASER’S INSPECTION AND REVIEW RIGHTS	 	 	10	 
	 3.1.
	 	     Due Diligence Inspections	 	 	10	 
	 3.2.
	 	     Seller’s Deliveries to Purchaser; Purchaser’s Access to Seller’s Property Records	 	 	12	 
	 3.3.
	 	      Condition of the Property	 	 	13	 
	 3.4.
	 	      Confidentiality	 	 	14	 
	 
	 	 	 	 	 	 
	ARTICLE 4. TITLE AND PERMITTED EXCEPTIONS	 	 	15	 
	 4.1.
	 	     Permitted Exceptions	 	 	15	 
	 4.2.
	 	      Title Commitment; Survey	 	 	15	 
	 4.3.
	 	      Delivery of Title	 	 	15	 
	 4.4.
	 	      Purchaser’s Right to Accept Title	 	 	16	 
	 4.5.
	 	      Cooperation	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE 5. REPRESENTATIONS, WARRANTIES AND OTHER AGREEMENTS	 	 	17	 
	 5.1.
	 	     Representations and Warranties of Seller	 	 	17	 
	 5.2.
	 	      Knowledge Defined	 	 	19	 
	 5.3.
	 	      Covenants and Agreements of Seller	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE 6. CLOSING DELIVERIES, CLOSING COSTS AND PRORATIONS	 	 	22	 
	 6.1.
	 	      Seller’s Closing Deliveries	 	 	22	 
	 6.2.
	 	      Purchaser’s Closing Deliveries	 	 	24	 
	 6.3.
	 	      Closing Costs	 	 	25	 
	 6.4.
	 	      Prorations and Credits	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE 7. CONDITIONS TO CLOSING	 	 	28	 
	 7.1.
	 	      Conditions Precedent to Purchaser’s Obligations	 	 	28	 
	 7.2.
	 	      Conditions Precedent to Seller’s Obligations	 	 	30	 

 

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ARTICLE 8. CASUALTY AND CONDEMNATION	 	 	30	 
	 8.1.
	 	     Casualty	 	 	30	 
	 8.2.
	 	      Condemnation	 	 	31	 
	 
	 	 	 	 	 	 
	ARTICLE 9. DEFAULT AND REMEDIES	 	 	32	 
	 9.1.
	 	      Purchaser’s Default	 	 	32	 
	 
	 	 	 	 	 	 
	ARTICLE 10. ASSIGNMENT	 	 	33	 
	 10.1.
	 	      Assignment	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE 11. BROKERAGE COMMISSIONS	 	 	34	 
	 11.1.
	 	      Broker and Advisor	 	 	34	 
	 
	 	 	 	 	 	 
	ARTICLE 12. INDEMNIFICATION	 	 	34	 
	 12.1.
	 	      Indemnification by Seller	 	 	34	 
	 12.2.
	 	      Indemnification by Purchaser	 	 	34	 
	 12.3.
	 	      Limitations on Indemnification	 	 	35	 
	 12.4.
	 	      Survival	 	 	35	 
	 12.5.
	 	      Indemnification as Sole Remedy	 	 	35	 
	 
	 	 	 	 	 	 
	ARTICLE 13. MISCELLANEOUS	 	 	35	 
	 13.1.
	 	      Notices	 	 	35	 
	 13.2
	 	      Possession	 	 	37	 
	 13.3
	 	      Time Periods	 	 	37	 
	 13.4
	 	      Publicity	 	 	37	 
	 13.5
	 	      Discharge of Obligations	 	 	37	 
	 13.6
	 	      Severability	 	 	37	 
	 13.7
	 	      Construction	 	 	37	 
	 13.8
	 	      Sale Notification Letters	 	 	38	 
	 13.9
	 	      Access to Records Following Closing	 	 	38	 
	 13.10
	 	      Submission to Jurisdiction	 	 	38	 
	 13.11
	 	      Entire Agreement	 	 	38	 
	 13.12
	 	      General Provisions	 	 	39	 
	 13.13
	 	      Attorney’s Fees	 	 	39	 
	 13.14
	 	      Counterparts	 	 	39	 
	 13.15
	 	      Effective Agreement	 	 	39	 
	 13.16
	 	      1031 Exchange	 	 	39	 

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SCHEDULE OF EXHIBITS

	 	 	 
	Exhibit “A”

	 	Description of Land
	Exhibit “B”

	 	 List of Personal Property

	Exhibit “B-1”

	 	Personal Property Exclusions

	Exhibit “C”

	 	List of Existing Commission Agreements

	Exhibit “D”

	 	Form of Escrow Agreement
	Exhibit “E”

	 	List of Existing Environmental Reports
	Exhibit “F”

	 	List of Leases
	Exhibit “G”

	 	Title Exceptions
	Exhibit “H”

	 	Exception Schedule
	Exhibit “I”

	 	List of Service Contracts
	Exhibit “J-1”

	 	Form of Tenant Estoppel Certificate
	Exhibit “J-2”

	 	Form of Licensee Estoppel Certificate
	Exhibit “J-3”

	 	Form of Estoppel Certificate for Cross Parking License Agreement
	Exhibit “J-4”

	 	Form of Seller Estoppel
	Exhibit “K”

	 	List of Title Insurance Policy Endorsements and Reinsurance Limits
	Exhibit “L”

	 	Property Tax Appeals
	Exhibit “M”

	 	Description of Terms of Prospective new Leases and Lease
Amendments
	Exhibit “N”

	 	Unpaid Tenant Inducement Costs and Leasing Commissions
	Exhibit “O”

	 	Existing Security Documents

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SCHEDULE OF CLOSING DOCUMENTS

	 	 	 
	Schedule 1

	 	Form of Limited Warranty Deed
	Schedule 2

	 	Form of Assignment and Assumption of Leases and Security Deposits and
Leasing Commission Obligations
	Schedule 3

	 	Form of Bill of Sale to Personal Property
	Schedule 4

	 	Form of Assignment and Assumption of Service Contracts
	Schedule 5

	 	Form of General Assignment of Seller’s Interest in Intangible Property
	Schedule 6

	 	Form of Seller’s Affidavit (for Purchaser’s Title Insurance Purposes)
	Schedule 7

	 	Form of Seller’s Certificate (as to Seller’s Representations and Warranties)
	Schedule 8

	 	Form of Seller’s FIRPTA Affidavit
	Schedule 9

	 	Form of Purchaser’s Certificate (as to Purchaser’s Representations and
Warranties)
	Schedule 10

	 	Form of Affidavit of Transferor’s Residence

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PURCHASE AND SALE AGREEMENT

BANK OF AMERICA PLAZA

     THIS PURCHASE AND SALE AGREEMENT (the “Agreement”), made and entered into this
14th day of July, 2006, by and between CSC ASSOCIATES, L.P., a Georgia limited
partnership (“Seller”), and BENTLEYFORBES ACQUISITIONS, LLC, a Delaware limited liability
company (“Purchaser”).

WITNESETH:

     WHEREAS, Seller desires to sell certain improved real property commonly known as “Bank of
America Plaza” located at 600 Peachtree Street, N.E., Atlanta, Fulton County, Georgia, together
with certain related personal and intangible property, and Purchaser desires to purchase such real,
personal and intangible property; and

     WHEREAS, the parties hereto desire to provide for said sale and purchase on the terms and
conditions set forth in this Agreement;

     NOW, THEREFORE, for and in consideration of the premises, the mutual covenants and agreements
hereinafter set forth, and for other good and valuable consideration, the receipt, adequacy, and
sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby
covenant and agree as follows:

ARTICLE 1.

DEFINITIONS

     For purposes of this Agreement, each of the following capitalized terms shall have the meaning
ascribed to such terms as set forth below:

     “Advisor” shall have the meaning ascribed thereto in Section 11.1 hereof.

     “Assignment and Assumption of Leases” shall mean the form of assignment and assumption
of the Leases, the Security Deposits, the Cross Parking License Agreement and the obligations under
the Commission Agreements to be executed and delivered by Seller and Purchaser at the Closing in
the form attached hereto as Schedule 2.

     “Assignment and Assumption of Service Contracts” shall mean the form of assignment and
assumption of the Service Contracts to be executed and delivered by Seller and Purchaser at the
Closing in the form attached hereto as Schedule 4.

     “Basket Limitation” shall mean an amount equal to $100,000.00;

     “Bill of Sale” shall mean the form of bill of sale to the Personal Property to be
executed and delivered by Seller to Purchaser at the Closing in the form attached hereto as
Schedule 3.

 

 

     “Broker” shall have the meaning ascribed thereto in Section 11.1 hereof.

     “Business Day” shall mean any day other than a Saturday, Sunday or other day on which
banking institutions in the State of Georgia are authorized by law or executive action to close.

     “Cap Limitation” shall mean an amount equal to $8,450,000.00.

     “Closing” shall mean the consummation of the purchase and sale of the Property
pursuant to the terms of this Agreement.

     “Closing Date” shall have the meaning ascribed thereto in Section 2.4 hereof.

     “Closing Documents” shall mean any certificate, instrument or other document delivered
pursuant to this Agreement.

     “Commission Agreements” shall have the meaning ascribed thereto in Section 5.1(g)
hereof, and such agreements are more particularly described on Exhibit “C” attached hereto
and made a part hereof.

     “Cousins” shall mean Cousins Properties Incorporated, a Georgia corporation.

     “Cross Parking License Agreement” shall mean that certain Cross Parking License
Agreement between North Avenue Presbyterian Church and Seller dated February 7, 1996, as evidenced
by Memorandum of Cross Parking License Agreement dated as of March 1996, filed for record June 19,
1996, recorded in Deed Book 21081, page 235, Fulton County, Georgia records.

     “Due Diligence Date” shall have the meaning ascribed thereto in Section 3.1(d) hereof.

     “Due Diligence Material” shall have the meaning ascribed thereto in Section 3.4
hereof.

     “Earnest Money” shall mean the Initial Earnest Money, together with all interest which
accrues thereon as provided in Section 2.2(b) hereof and in the Escrow Agreement.

     “Effective Date” shall mean the last date upon which the following shall have
occurred: (a) Purchaser and Seller shall have delivered a fully executed counterpart of this
Agreement to the other, (b) Purchaser, Seller and Escrow Agent shall have executed and delivered at
least one (1) fully executed counterpart of the Escrow Agreement to each other party, and (c)
Purchaser shall have delivered the Initial Earnest Money (by federal wire transfer) to Escrow
Agent.

     “Environmental Law” shall mean any law, ordinance, rule, regulation, order, judgment,
injunction or decree now or hereafter relating to pollution or substances or materials which are
considered to be hazardous or toxic, including, without limitation, the Resource Conservation and
Recovery Act (42 U.S.C. § 6901 et seq.), the Comprehensive Environmental Response, Compensation and
Liability Act (codified in various sections of 26 U.S.C., 33 U.S.C., 42 U.S.C.

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and 42 U.S.C. § 9601 et seq.), the Hazardous Materials Transportation Act (49 U.S.C. § 1801 et
seq.), the Clean Water Act (33 U.S.C. § 1251 et seq.), the Safe Drinking Water Act (21 U.S.C. §
349, 42 U.S.C. § 201 et seq. and § 300 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2061
et seq.), the Emergency Planning and Community Right to Know Act (42 U.S.C. § 1100 et seq.), the
Clean Air Act (42 U.S.C. § 7401 et seq.), the Occupational Safety & Health Act (29 U.S.C. § 655 et
seq.), and any state and local environmental laws, all amendments and supplements to any of the
foregoing and all regulations and publications promulgated or issued pursuant thereto.

     “Escrow Agent” shall mean the Title Company, at its office at 5775 Glenridge Drive,
N.E., Suite A210, in Atlanta, Georgia.

     “Escrow Agreement” shall mean that certain Escrow Agreement in the form attached
hereto as Exhibit “D” entered into among Seller, Purchaser and Escrow Agent with respect
to the Earnest Money.

     “Existing Environmental Reports” shall mean those certain reports, correspondence and
related materials, if any, more particularly described on Exhibit “E” attached hereto and
made a part hereof.

     “Existing Loan” shall mean the loan made to Seller evidenced and secured by the
Existing Security Documents.

     “Existing Security Documents” shall mean those certain documents and instruments
listed and described on Exhibit “O” attached hereto.

     “Existing Survey” shall mean that certain survey with respect to the Land and the
Improvements prepared by Engineering & Inspection Systems, Inc. dated May 8, 2006.

     “FIRPTA Affidavit” shall mean the form of FIRPTA Affidavit to be executed and
delivered by Seller to Purchaser at Closing in the form attached hereto as Schedule 8.

     “General Assignment” shall mean an assignment by Seller of its interest in the
Intangible Property (being Seller’s interest in the Intangible Property being conveyed as a part of
the Property), to be executed by Seller and delivered at Closing, substantially in the form
attached hereto as Schedule 5 and made a part hereof.

     “Hazardous Substances” shall mean any and all pollutants, contaminants, toxic or
hazardous wastes or any other substances that might pose a hazard to health or safety, the removal
of which may be required or the generation, manufacture, refining, production, processing,
treatment, storage, handling, transportation, transfer, use, disposal, release, discharge,
spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized under
any Environmental Law (including, without limitation, lead paint, asbestos, urea formaldehyde foam
insulation, petroleum and polychlorinated biphenyls).

3

 

     “Improvements” shall mean, collectively, all buildings, structures and improvements
now or on the Closing Date situated on the Land, including without limitation, all parking areas
and facilities located on the Land and, to the extent owned by Seller, all built-in appliances,
machinery, equipment and fixtures located on the Land.

     “Initial Earnest Money” shall mean the sum of Ten Million and No/100 Dollars
($10,000,000.00 U.S.).

     “Intangible Property” shall mean all intangible property, if any, owned by Seller and
related to the Land and Improvements, including without limitation, Seller’s rights and interests,
if any, in and to the following (to the extent assignable): (a) all assignable entitlements,
development rights, plans and specifications and other architectural and engineering drawings for
the Land and Improvements; (b) all assignable warranties or guaranties given or made in respect of
the Improvements or Personal Property; (c) all transferable consents, authorizations, variances or
waivers, licenses, permits and approvals from any governmental or quasi-governmental agency,
department, board, commission, bureau or other entity or instrumentality solely in respect of the
Land or Improvements; and (d) all of Seller’s right, title and interest in and to all assignable
Service Contracts; but expressly excluding (i) all rights with respect to any insurance proceeds or
settlements for events occurring prior to Closing (subject to Section 8.1 below), and (ii) rights
in the names “Bank of America” and “CSC Associates”.

     “Land” shall mean those certain tracts or parcels of real property located in the City
of Atlanta, Fulton County, Georgia, which are more particularly described on Exhibit “A”
attached hereto and made a part hereof, together with all rights, privileges and easements
appurtenant to said real property, and all right, title and interest of Seller, if any, in and to
any land lying in the bed of any street, road, alley or right-of-way, open or closed, adjacent to
or abutting the Land.

     “Lease” and “Leases” shall mean the leases, license agreements or occupancy
agreements which are more particularly identified on Exhibit “F”  attached hereto, and any
amended or new leases entered into pursuant to Section 5.3(a) of this Agreement, which as of the
Closing affect all or any portion of the Land or Improvements.

     “Leasing Agreement” shall have the meaning ascribed thereto in Section 6.4(h) hereof.

     “Limited Warranty Deed” shall mean the form of deed attached hereto as Schedule
1.

     “Losses” shall have the meaning ascribed thereto as Section 12.1 hereof.

     “Major Tenant” or “Major Tenants” shall mean Bank of America, N.A. and
Troutman Sanders LLP.

     “Monetary Objection” or “Monetary Objections” shall mean (a) any mortgage,
deed to secure debt, deed of trust or similar security instrument encumbering all or any part of
the Property, including the Existing Security Documents, (b) any mechanic’s, materialman’s or
similar lien (unless resulting from any act or omission of Purchaser or any of its agents,

4

 

contractors, representatives or employees or any tenant of the Property), (c) the lien of ad
valorem real or personal property taxes, assessments and governmental charges affecting all or any
portion of the Property which are delinquent, and (d) any judgment of record against Seller in the
county or other applicable jurisdiction in which the Property is located.

     “Other Notices of Sale” shall have the meaning ascribed thereto in Section 6.1(q)
hereof.

     “Permitted Exceptions” shall mean, collectively, (a) liens for taxes, assessments and
governmental charges not yet due and payable or due and payable but not yet delinquent, (b) the
Leases, (c) the state of facts disclosed by the Existing Survey, and (d) the matters set forth on
Exhibit “G” attached hereto and made part hereof.

     “Personal Property” shall mean all furniture (including common area furnishings and
interior landscaping items), carpeting, draperies, appliances, personal property (excluding any
management office computer hardware and software), machinery, apparatus and equipment owned by
Seller and currently used exclusively in the operation, repair and maintenance of the Land and
Improvements and situated thereon, as generally described on Exhibit “B” attached hereto
and made a part hereof, and all non-confidential books, records and files (excluding any
appraisals, budgets, strategic plans for the Property, internal analyses, information regarding the
marketing of the Property for sale, submissions relating to Seller’s obtaining of corporate
authorization, attorney and accountant work product, attorney-client privileged documents, or other
information in the possession or control of Seller or Seller’s property manager which are
proprietary in nature) relating to the Land and Improvements. The Personal Property does not
include the items described on Exhibit “B-1” attached hereto and made a part hereof and
any property owned by tenants, contractors or licensees. The Personal Property shall be conveyed
by Seller to Purchaser subject to depletions, replacements and additions in the ordinary course of
Seller’s business.

     “Property” shall have the meaning ascribed thereto in Section 2.1 hereof.

     “Protected Tenant” shall have the meaning ascribed thereto in Section 6.4(h) hereof.

     “Purchase Price” shall be the amount specified in Section 2.3 hereof.

     “Purchaser Related Entities” shall have the meaning ascribed thereto in Section 12.1
hereof.

     “Purchaser Waived Breach” shall have the meaning ascribed thereto in Section 12.3
hereof.

     “Purchaser’s Certificate” shall mean the form of certificate to be executed and
delivered by Purchaser to Seller at the Closing with respect to the truth and accuracy of
Purchaser’s warranties and representations contained in this Agreement (modified and updated as the
circumstances require), in the form attached hereto as Schedule 9.

5

 

     “Purchaser’s Extension Option” shall have the meaning ascribed thereto in Section 2.4
hereof.

     “Replacement Estoppel” shall have the meaning ascribed thereto in Section 7.1(d)
hereof.

     “Required Estoppels” shall have the meaning ascribed thereto in Section 7.1(d) hereof.

     “Security Deposits” shall mean any security deposits, rent or damage deposits or
similar amounts (other than rent paid for the month in which the Closing occurs) actually held by
Seller with respect to any of the Leases.

     “Seller Estoppels” shall have the meaning ascribed thereto in Section 7.1(d) hereof.

     “Seller Related Entities” shall have the meaning ascribed thereto in Section 12.2
hereof.

     “Seller’s Affidavit” shall mean the form of owner’s affidavit to be given by Seller at
Closing to the Title Company in the form attached hereto as Schedule 6.

     “Seller’s Certificate” shall mean the form of certificate to be executed and delivered
by Seller to Purchaser at the Closing with respect to the truth and accuracy of Seller’s warranties
and representations contained in this Agreement (modified and updated as the circumstances
require), in the form attached hereto as Schedule 7.

     “Seller’s Extension Option” shall have the meaning ascribed thereto in Section 2.4
hereof.

     “Service Contracts” shall mean all those certain contracts and agreements more
particularly described on Exhibit “I” attached hereto and made a part hereof.

     “Taking” shall have the meaning ascribed thereto in Section 8.2 hereof.

     “Taxes” shall have the meaning ascribed thereto in Section 6.4(a) hereof.

     “Tenant Estoppel Certificate” or “Tenant Estoppel Certificates” shall mean (i)
certificates to be sought from the tenants under the Leases in substantially the form attached
hereto as Exhibit “J-1”, except that in the case of such of the Leases as constitute
license agreements, the certificates to be sought from the tenants (or licensees) thereunder shall
be in substantially the form attached hereto as Exhibit “J-2”, and (ii) a certificate to
be sought from North Avenue Presbyterian Church under the Cross Parking License Agreement in
substantially the form attached hereto as Exhibit “J-3”; provided, however, if any Lease
provides for the form or content of an estoppel certificate from the tenant thereunder, the Tenant
Estoppel Certificate with respect to such Lease may be in the form as called for therein. Each of
the foregoing shall be subject to review and reasonable comments by Purchaser as to the specifics
thereof communicated to Seller in writing on or before the later of (a) the date which is five (5)
days after Purchaser shall receive copies of the forms of the estoppel certificates to be submitted
to the tenants (with the dates and dollar amounts inserted therein), or (b) July 21, 2006, and such

6

 

certificates shall not be sent to tenants or any other parties prior to the earlier of (i) receipt
of Purchaser’s reasonable comments, or (ii) the later of the dates referred to in (a) and (b)
above.

     “Tenant Inducement Costs” shall mean any out-of-pocket payments required under a Lease
to be paid by the landlord thereunder to or for the benefit of the tenant thereunder which is in
the nature of a tenant inducement, including specifically, but without limitation, tenant
improvement costs, lease buyout payments, and moving, design, refurbishment and club membership
allowances and costs. The term “Tenant Inducement Costs” shall not include loss of income
resulting from any free rental period, it being understood and agreed that Seller shall bear the
loss resulting from any free rental period until the Closing Date and that Purchaser shall bear
such loss from and after the Closing Date.

     “Tenant Notices of Sale” shall have the meaning ascribed thereto in Section 6.1(p)
hereof.

     “Title Commitment” shall mean that certain title insurance commitment with respect to
the Land and Improvements issued by the Title Company in favor of Purchaser and having an effective
date of March 31, 2006, Commitment Number 09981.11.

     “Title Company” shall mean First American Title Insurance Company.

     “Title Policy” shall mean an owner’s title insurance policy issued by the Title
Company insuring Purchaser’s title to the Property subject only to the Permitted Exceptions and as
otherwise may be agreed upon in writing by Purchaser and Title Company prior to the Due Diligence
Date (which agreement, if any, shall be effectuated by the issuance of a proforma title insurance
policy by the Title Company which is approved by Purchaser in a written notice to Seller and Title
Company prior to the Due Diligence Date), in an amount equal to the Purchase Price, providing for
extended coverage, containing no arbitration provision (which, if applicable, can be deleted by
endorsement), containing the endorsements listed on Exhibit “K” attached hereto, and
including reinsurance from the title insurance companies and in the amounts specified on
Exhibit “K” attached hereto, pursuant to ALTA facultative reinsurance agreements
permitting direct access by the insured to the reinsurers.

ARTICLE 2.

PURCHASE AND SALE

     2.1. Agreement to Sell and Purchase. Subject to and in accordance with the terms and
provisions of this Agreement, Seller agrees to sell and Purchaser agrees to purchase, the following
property (collectively, the “Property”):

	 	(a)	 	the Land;
	 
	 	(b)	 	the Improvements;
	 
	 	(c)	 	all of Seller’s right, title and interest in and to the Leases, any guaranties
of the Leases and the Security Deposits;

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	 	(d)	 	all of Seller’s right, title and interest as a licensee under the Cross Parking
License Agreement;
	 
	 	(e)	 	the Personal Property; and
	 
	 	(f)	 	the Intangible Property.

     2.2. Earnest Money.

     (a) Contemporaneously with Purchaser’s execution and delivery of this Agreement, Purchaser has
delivered the Initial Earnest Money to Escrow Agent by federal wire transfer, payable to Escrow
Agent, which Initial Earnest Money shall be held and released by Escrow Agent in accordance with
the terms of the Escrow Agreement.

     (b) The Earnest Money shall be applied to the Purchase Price at the Closing and shall
otherwise be held, refunded, or disbursed in accordance with the terms of the Escrow Agreement and
this Agreement. All interest and other income from time to time earned on the Initial Earnest Money
shall be earned for the account of Purchaser, and shall be a part of the Earnest Money; and the
Earnest Money hereunder shall be comprised of the Initial Earnest Money and all such interest and
other income.

     2.3. Purchase Price. Subject to adjustment and credits as otherwise specified in this
Section 2.3 and elsewhere in this Agreement, the purchase price (the “Purchase Price”) to
be paid by Purchaser to Seller for the Property shall be FOUR HUNDRED THIRTY-SIX MILLION SIX
THOUSAND AND NO/100 DOLLARS ($436,006,390.00 U.S.). The Purchase Price shall be paid by Purchaser
to Seller at the Closing as follows:

     (a) The Earnest Money shall be paid by Escrow Agent to Seller at Closing; and

     (b) Prior to 2:00 P.M. Atlanta time on the Business Day immediately preceding the Closing
Date, the balance of the Purchase Price, after applying the Earnest Money as partial payment of the
Purchase Price, and subject to prorations and other adjustments specified in this Agreement, shall
be paid by Purchaser in immediately available funds to the Title Company, for further delivery at
the Closing to an account or accounts designated by Seller.

     2.4. Closing. The consummation of the sale by Seller and purchase by Purchaser of the
Property (the “Closing”) shall be held on August 24, 2006 (the “Closing Date”),
which date shall be Day 3 of the three consecutive Business Day defeasance closing process referred
to in Section 2.5 below. The Closing shall take place at the offices of the Title Company, 5775
Glenridge Drive, Atlanta, Georgia 30328. Notwithstanding the foregoing, if additional time is
required for Purchaser to satisfy any requirements of Purchaser’s lender, then Purchaser shall have
one option (the “Purchaser’s Extension Option”) to postpone the Closing Date from August 24, 2006
to September 7, 2006 (it being acknowledged by Purchaser, however, that Purchaser’s ability to
obtain financing shall not be a condition of Closing or a condition to Purchaser’s obligations
hereunder). To exercise the Purchaser’s Extension Option, Purchaser

8

 

must deliver written notice to Seller by 5:00 p.m. Atlanta, Georgia, time on August 18, 2006.
the failure by Purchaser to timely deliver written notice of its exercise of the Extension Option
shall be deemed a waiver by Purchaser of its right to exercise the Purchaser’s Extension Option.
Also, notwithstanding the foregoing, if Seller has not received the Required Estoppels as of the
date that is three (3) Business Days before the Closing Date, then Seller shall have one option
(the “Seller’s Extension Option”) to postpone the Closing Date to a date no later than
August 31, 2006. To exercise the Seller’s Extension Option, Seller must deliver written notice to
Purchaser by 5:00 p.m. Atlanta, Georgia time on the Business Day immediately preceding Day 1 of the
three consecutive Business Day defeasance closing process referred to in Section 2.5 below. The
failure by Seller to timely deliver written notice of its exercise of the Seller’s Extension Option
shall be deemed a waiver by Seller of its right to exercise the Seller’s Extension Option. It is
contemplated that the transaction shall be closed with the concurrent delivery of the documents of
title and the payment to Seller of the Purchase Price. Notwithstanding the foregoing, there shall
be no requirement that Seller and Purchaser physically meet for the Closing, and all documents to
be delivered at the Closing shall be delivered to the Title Company unless the parties hereto
mutually agree otherwise. Seller and Purchaser agree to use reasonable efforts to complete all
requirements for the Closing, including the execution and delivery into escrow with the Title
Company, of all Closing Documents, at least three (3) Business Days prior to the Closing Date so as
to facilitate the satisfaction of the requirements and conditions for the defeasance of the
Existing Loan as contemplated by Section 2.5 below.

     2.5. Defeasance of Existing Loan. Seller has advised Purchaser that the Existing Loan
may not be voluntarily prepaid by Seller, and accordingly, in order to convey the Property to
Purchaser free and clear of the Existing Security Documents at the Closing, Seller shall cause the
release of the Property from the lien and security title of the Existing Security Documents by
creating a first priority security interest in favor of Seller’s lender in certain defeasance
collateral, all in accordance with the terms and conditions of the Existing Security Documents and
customary practices and procedures relating to defeasance of loans similar to the Existing Loan.
Seller has engaged Commercial Defeasance LLC to assist Seller in connection with the defeasance of
the Existing Loan. The defeasance of loans similar to the Existing Loan involves a three
consecutive Business Day defeasance closing process. On Day 1 of such three consecutive Business
Day defeasance closing process (which shall be two (2) days prior to the then scheduled Closing
Date), Commercial Defeasance LLC will set up a conference call with representatives of Seller,
Purchaser, Purchaser’s lender, if any, and the Title Company, including counsel for each of Seller
and Purchaser, to confirm that Purchaser is prepared to wire transfer into the escrow account of
the Title Company on Day 2 of the three consecutive Business Day defeasance closing process the
remaining funds necessary to close and consummate the acquisition of the Property as provided in
Section 2.3(b) above, and after such conference call it is anticipated that Seller will authorize
Commercial Defeasance LLC to initiate the purchase on behalf of Seller of the portfolio of
securities that will constitute the defeasance collateral to be pledged by Seller in order to
obtain the release of the Property from the lien and security title of the Existing Security
Documents. No later than 2:00 p.m. on Day 2 of the three consecutive Business Day defeasance
closing process, (i) Purchaser shall wire transfer to the escrow account of the Title Company the
remaining funds necessary to close and consummate the acquisition of the Property as provided in
Section 2.3(b) hereof, and (ii) Seller and Purchaser will authorize and direct the Title Company in
writing (the “Closing Notice”) to complete the Closing and disburse

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the closing funds as soon as
possible on the morning of Day 3 of the three consecutive Business Day defeasance closing process.
Purchaser agrees to cooperate (at no material cost or expense to Purchaser) with Seller in
connection with the defeasance by Seller of the Existing Loan. Purchaser agrees that such
cooperation shall include the participation by an authorized representative of Purchaser in the
telephone conference on Day 1 of the three consecutive Business Day defeasance closing process, for
the purpose, at a minimum, of confirming that Purchaser will wire transfer into the escrow account
of the Title Company prior to 2:00 P.M. Atlanta time on the next following Business Day the
remaining funds necessary to close and consummate the acquisition of the Property as provided in
Section 2.3(b) above. Purchaser acknowledges that the willful failure by Purchaser (a) on Day 1 of
the three consecutive Business Day defeasance closing process to unconditionally confirm in the
above mentioned telephone conference that Purchaser will wire transfer into the escrow account of
the Title Company prior to 2:00 P.M. on the next following Business Day the remaining funds
necessary to close and consummate the acquisition of the Property as provided in Section 2.3(b)
above, or (b) prior to 2:00 P.M. on Day 2 of the three consecutive Business Day defeasance closing
process, to give the Closing Notice and to wire transfer into the Title Company’s escrow account
all remaining funds necessary to close and consummate the acquisition of the Property, unless in
either case such failure is due to Seller’s default under this Agreement or the failure of a
condition to Purchaser’s obligation to close as provided in this Agreement (other than a condition
of a nature to be satisfied at Closing), shall constitute a material default by Purchaser under
this Agreement and the failure by Purchaser to consummate this transaction which shall entitle
Seller to the immediate exercise of the rights and remedies of Seller under Section 9.1 of this
Agreement.

ARTICLE 3.

PURCHASER’S INSPECTION AND REVIEW RIGHTS

     3.1. Due Diligence Inspections.

     (a) From and after the Effective Date until the Closing Date or earlier termination of the
inspection rights of Purchaser under this Agreement, Seller shall permit Purchaser and its
authorized representatives to enter upon the Property in order to inspect the Property, to perform
due diligence and environmental investigations, to examine the records of Seller with respect to
the Property, and make copies thereof, at such times during normal business hours as Purchaser or
its representatives may request. Purchaser acknowledges that certain secured areas within the
premises leased by tenants may be visited or inspected by Purchaser only if the applicable tenant
consents thereto. All such inspections shall be non-destructive in nature, and specifically shall
not include any physically intrusive testing. All such inspections shall be performed in such a
manner to minimize any interference with the business of the tenants under the Leases, and, in each
case, in compliance with the rights and obligations of Seller as landlord under the Leases.
Purchaser agrees that Purchaser shall make no contact with and shall not interview any tenants or
governmental authorities without providing at least twenty-four (24) hours prior notice of such
contact or interview to Craig B. Jones or Jack A. LaHue on behalf of Seller, which notice, for
purposes of this Section 3.1(a) only, must be given during business hours (local Atlanta, Georgia
time) on a Business Day and may be given via electronic mail to both of the following addresses:
craigjones@cousinsproperties.com and jacklahue@cousinsproperties.com. At all times prior to

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the termination of this Agreement, subject to the terms of this Section 3.1(a), Purchaser shall have
the right to interview tenants and to make inquiries of any and all governmental agencies and
authorities having jurisdiction over the Property for purposes of determining the compliance of the
Property with any and all applicable laws, statutes, codes, ordinances, rules and regulations. All
inspection fees, appraisal fees, engineering fees and all other costs and expenses of any kind
incurred by Purchaser relating to the inspection of the Property shall be solely Purchaser’s
expense. Seller reserves the right to have a representative present at the time of making any such
inspection and at the time of any permitted interviews with tenants and governmental authorities.
Purchaser shall notify Seller not less than one (1) Business Day in advance of making any such
inspection.

     (b) If the Closing is not consummated hereunder, Purchaser shall promptly (and as a condition
to the refund of the Earnest Money) deliver to Seller copies of all reports, surveys and other
information furnished to Purchaser by third parties in connection with such inspections; provided,
however, that delivery of such copies and information shall be without warranty or representation
whatsoever, express or implied, including, without limitation, any warranty or representation as to
ownership, accuracy, adequacy or completeness thereof or otherwise and without any assignment to
Seller, by implication or otherwise, of any right to rely thereon. This Section 3.1(b) shall
survive the termination of this Agreement.

     (c) To the extent that Purchaser or any of its representatives, agents or contractors damages
or disturbs the Property or any portion thereof, Purchaser shall return the same to substantially
the same condition which existed immediately prior to such damage or disturbance. Purchaser hereby
agrees to and shall indemnify, defend and hold harmless Seller from and against any and all
expense, loss or damage which Seller may incur (including, without limitation, reasonable
attorney’s fees actually incurred) as a result of any act or omission of Purchaser or its
representatives, agents or contractors with respect to the Property; provided that such indemnity
obligation shall exclude any expenses, losses or damages due to (i) Seller’s negligence or
intentional misconduct and (ii) Purchaser’s discovery of an existing condition with respect to the
Property. Said indemnification agreement shall survive the Closing until the expiration of any
applicable statute of limitations and shall survive any earlier termination of this Agreement.
Purchaser shall maintain and shall ensure that Purchaser’s consultants and contractors maintain
commercial general liability insurance in an amount not less than $2,000,000, combined single
limit, and in form and substance adequate to insure against all liability of Purchaser and its
consultants and contractors, respectively, and each of their respective agents, employees and
contractors, arising out of inspections and testing of the Property or any part thereof made on
Purchaser’s behalf. Purchaser agrees to provide to Seller a certificate of insurance with regard
to each applicable liability insurance policy prior to any entry upon the Property by Purchaser or
its consultants or contractors, as the case may be, pursuant to this Section 3.1.

     (d) In the event that Purchaser shall determine, such determination to be made in Purchaser’s
sole and absolute discretion (and for any or no reason) on or before August 3, 2006 (the “Due
Diligence Date”), that the Property is not suitable for Purchaser’s purposes, then Purchaser
shall have the right to terminate this Agreement by delivery of written notice of such termination
to Seller at any time on or prior to the Due Diligence Date, whereupon (i) Escrow

11

 

Agent shall return all but $100.00 of the Earnest Money to Purchaser; (ii) Escrow Agent shall pay
$100.00 of the Earnest Money to Seller; and (iii) except for those provisions of this Agreement
which by their express terms survive the termination of this Agreement, no party hereto shall have
any other or further rights or obligations under this Agreement. Seller acknowledges that the sum
of $100.00 of the Earnest Money represents adequate bargained for consideration for the termination
rights of Purchaser in this Section 3.1(d). If Purchaser fails to terminate this Agreement prior
to the Due Diligence Date, Purchaser shall have no further right to terminate this Agreement
pursuant to this Section 3.1(d). The parties acknowledge that this Agreement shall not be void or
voidable for lack of mutuality.

     3.2. Seller’s Deliveries to Purchaser; Purchaser’s Access to Seller’s Property
Records.

     (a) Purchaser acknowledges receipt of the following (and Purchaser further acknowledges that
no additional items are required to be delivered by Seller to Purchaser except as may be expressly
set forth in other provisions of this Agreement):

	 	(i)	 	Copies of 2005 property tax bills with respect to the Property
and assessor’s statements of assessed value for 2006 with respect to the
Property.
	 
	 	(ii)	 	Copies of property operating statements for 2004 and 2005 with
respect to the Property.
	 
	 	(iii)	 	2006 Operating Budget with respect to the Property.
	 
	 	(iv)	 	Copies of all Leases and guarantees relating thereto existing
as of the Effective Date.
	 
	 	(v)	 	An aged tenant receivable report, if any, regarding income from
the tenants.
	 
	 	(vi)	 	Annual tenant, tax and operating expense billing statements and
general ledger for 2004 and 2005.
	 
	 	(vii)	 	Copies of the Commission Agreements.
	 
	 	(viii)	 	Copies of all Service Contracts currently in place at the Property.
	 
	 	(ix)	 	The Title Commitment and copies of the title documents listed
on Exhibit “G” attached hereto.
	 
	 	(x)	 	A copy of the Existing Survey.
	 
	 	(xi)	 	Copies of the Existing Environmental Reports.

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	 	(xii)	 	A copy of the Property Condition Assessment prepared by MACTEC
Engineering and Consulting, Inc. dated May 24, 2006, and a copy of the report
by Williamson & Associates relating to the roof dated May 8, 2006.
	 
	 	(xiii)	 	Copies of certificates of occupancy in the possession of Seller with respect
to the Property.
	 
	 	(xiv)	 	A copy of the Leasing Agreement.

     (b) From the Effective Date until the Closing Date or earlier termination of this Agreement,
Seller shall allow Purchaser and Purchaser’s representatives, on reasonable advance notice and
during normal business hours, to have access to Seller’s existing non-confidential books, records
and files relating to the Property, at Seller’s on-site management office at the Property or at
Seller’s office at 2500 Windy Ridge Parkway, Suite 1600, Atlanta, Georgia 30339, for the purpose
of inspecting and (at Purchaser’s expense) copying the same, including, without limitation, copies
of any financial statements or other financial information of the tenants under the Leases (and the
Lease guarantors, if any), written information relative to the tenants’ payment history and tenant
correspondence, to the extent Seller has the same in its possession, available surveys, plans and
specifications, copies of any permits, licenses or other similar documents, available records of
any operating costs and expenses and similar materials relating to the operation, maintenance,
repair, management and leasing of the Property, all to the extent any or all of the same are in the
possession of Seller; subject, however, to the limitations of any confidentiality or non-disclosure
agreement to which Seller may be bound, and provided that Seller shall not be required to deliver
or make available to Purchaser any appraisals, strategic plans for the Property, internal analyses,
information regarding the marketing of the Property for sale, submissions relating to Seller’s
obtaining of corporate authorization, attorney and accountant work product, attorney-client
privileged documents, or other information in the possession or control of Seller which is
confidential or proprietary in nature. Alternatively, at Purchaser’s request and at Purchaser’s
cost and expense, and subject to the provisions hereof, Seller will make copies of non-confidential
and non-proprietary due diligence materials relating to the Property as may be reasonably requested
by Purchaser in writing, and as may be in Seller’s possession or control, and will deliver the same
to Purchaser. Purchaser acknowledges and agrees, however, that Seller makes no representation or
warranty of any nature whatsoever, express or implied, with respect to the ownership,
enforceability, accuracy, adequacy or completeness or otherwise of any of such records,
evaluations, data, investigations, reports or other materials. If the Closing contemplated
hereunder fails to take place for any reason, Purchaser shall promptly return (or certify as having
destroyed) all copies of materials copied from Seller’s books, records and files of Seller or
furnished by Seller or Seller’s representatives relating to the Property. It is understood and
agreed that Seller shall have no obligation to obtain, commission or prepare any such books,
records, files, reports or studies not now in Seller’s possession. The obligation of Purchaser in
the second preceding sentence shall survive the termination of this Agreement.

     3.3. Condition of the Property.

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     (a) Seller recommends that Purchaser employ one or more independent engineering and/or
environmental professionals to perform engineering, environmental and physical assessments on
Purchaser’s behalf in respect of the Property and the condition thereof and/or to review and
evaluate any of the foregoing assessments in Seller’s possession. Purchaser and Seller mutually
acknowledge and agree that the Property is being sold in an “AS IS” condition and “WITH ALL
FAULTS,” known or unknown, contingent or existing. Purchaser has the sole responsibility to fully
inspect the Property, to investigate all matters relevant thereto, including, without limitation,
the condition of the Property, and to reach its own, independent evaluation of any risks
(environmental or otherwise) or rewards associated with the ownership, leasing, management and
operation of the Property. Effective as of the Closing and except as expressly set forth in this
Agreement, Purchaser hereby waives and releases Seller and its partners and their respective
officers, directors, shareholders, agents, affiliates, employees and successors and assigns from
and against any and all claims, obligations and liabilities arising out of or in connection with
the Property.

     (b) Subject to Seller’s representations and warranties hereunder, to the fullest extent
permitted by law, Purchaser does hereby unconditionally waive and release Seller and its partners
and their respective officers, directors, shareholders, agents, affiliates and employees from any
present or future claims and liabilities of any nature arising from or relating to the presence or
alleged presence of Hazardous Substances in, on, at, from, under or about the Property or any
adjacent property, including, without limitation, any claims under or on account of any
Environmental Law, regardless of whether such Hazardous Substances are located in, on, at, from,
under or about the Property or any adjacent property prior to or after the date hereof. The terms
and provisions of this Section 3.3 shall survive the Closing hereunder until the expiration of any
applicable statute of limitations.

     (c) Notwithstanding anything in this Agreement to the contrary, the releases set forth in
Sections 3.3(a) and 3.3(b) above are not intended to and do not include (i) any claims arising from
a breach of Seller’s representations or warranties set forth in this Agreement and (ii) any
obligation or other covenant of Seller under this Agreement which, by its terms, survives the
Closing or under the Closing Documents.

     3.4. Confidentiality. All information acquired by Purchaser or any of its designated
representatives (including by way of example, but not in limitation, the officers, directors,
shareholders and employees of Purchaser, and Purchaser’s engineers, consultants, counsel and
prospective lenders, and the officers, directors, shareholders and employees of each of them) with
respect to the Property, whether delivered by Seller or any of Seller’s representatives or obtained
by Purchaser as a result of its inspection and investigation of the Property, examination of
Seller’s books, records and files in respect of the Property, or otherwise (collectively, the
“Due Diligence Material”) shall be used solely for the purpose of determining whether the
Property is suitable for Purchaser’s acquisition and ownership thereof and for no other purpose
whatsoever. The terms and conditions which are contained in this Agreement and all Due Diligence
Material which is not published as public knowledge or which is not generally available in the
public domain shall be kept in strict confidence by Purchaser and shall not be disclosed to any
individual or entity other than to those authorized representatives of Purchaser and Purchaser’s
accountants, consultants,
attorneys and prospective lenders who need to know the information

14

 

for the purpose of assisting
Purchaser in evaluating the Property for Purchaser’s potential acquisition thereof; provided,
however, that Purchaser shall have the right to disclose any such information if required by
applicable law or as may be necessary in connection with any court action or proceeding with
respect to this Agreement. Purchaser agrees that Purchaser shall be responsible for any
unpermitted disclosure of any of the Due Diligence Material by Purchaser’s accountants,
consultants, attorneys and lenders and/or the use of any Due Diligence Material by any of such
parties for any purpose other than as herein contemplated and permitted. The foregoing covenants
shall not extend to disclosure of any Due Diligence Material (i) as may be required by applicable
law to be disclosed or (ii) that is or becomes public knowledge other than by virtue of a breach of
Purchaser’s covenant under this Section 3.4. If Purchaser or Seller elects to terminate this
Agreement pursuant to any provision hereof permitting such termination, or if the Closing
contemplated hereunder fails to occur for any reason, Purchaser will promptly return to Seller all
Due Diligence Material in the possession of Purchaser and any of its representatives, and destroy
all copies, notes or abstracts or extracts thereof, as well as all copies of any analyses,
compilations, studies or other documents prepared by Purchaser or for its use (whether in written
or electronic form) containing or reflecting any Due Diligence Material; provided that any Due
Diligence Materials which were not delivered to Purchaser by Seller or Seller’s representatives
shall be delivered by Purchaser without representation or warranty of any kind. In the event of a
breach or threatened breach by Purchaser or any of its representatives of this Section 3.4, Seller
shall be entitled, in addition to other available remedies, to an injunction restraining Purchaser
or its representatives from disclosing, in whole or in part, any of the Due Diligence Material and
any of the terms and conditions of this Agreement. Nothing contained herein shall be construed as
prohibiting or limiting Seller from pursuing any other available remedy, at law or in equity, for
such breach or threatened breach. The provisions of this Section shall survive any termination of
this Agreement for a period of two (2) years but shall be of no further force or effect after the
Closing.

ARTICLE 4.

TITLE AND PERMITTED EXCEPTIONS

     4.1. Permitted Exceptions. The Property shall be sold and is to be conveyed, and
Purchaser agrees to purchase the Property, subject to the Permitted Exceptions.

     4.2. Title Commitment; Survey. Purchaser has received and reviewed the Title
Commitment, the Existing Survey, and copies of all title exception documents referred to in the
Title Commitment. Subject to Section 3.1(d) hereof, all title exceptions and matters set forth in
Schedule B, Section 2 of the Title Commitment and on the Existing Survey shall be deemed Permitted
Exceptions and are hereby approved by Purchaser; provided, however, that prior to the Due Diligence
Date, Purchaser may make any arrangements with respect thereto with Title Company as Purchaser may
so desire. Purchaser may, at its sole cost and expense, arrange for updates to the Title
Commitment and for updates and/or re-certifications of the Existing Survey.

     4.3. Delivery of Title.

     (a) At the Closing, Seller shall obtain releases of any Monetary Objections, and Seller may
utilize the proceeds of the Purchase Price payable to Seller at Closing for such

15

 

purpose. Other
than as set forth above, Seller shall not be required to take or bring any action or proceeding or
any other steps to remove any title exception or to expend any moneys therefor, nor shall Purchaser
have any right of action against Seller, at law or in equity, for Seller’s inability to convey
title subject only to the Permitted Exceptions.

     (b) Notwithstanding the foregoing, in the event that Seller is unable to convey title subject
only to the Permitted Exceptions, and Purchaser has not, prior to the Closing Date, given written
notice to Seller that Purchaser is willing to waive objection to each title exception which is not
a Permitted Exception, Seller shall have the right, in Seller’s sole and absolute discretion, to
(i) take such action as Seller shall deem advisable to attempt to discharge each such title
exception which is not a Permitted Exception or (ii) terminate this Agreement. In the event that
Seller shall elect to attempt to discharge such title exceptions which are not Permitted
Exceptions, Seller shall be entitled to an adjournment of the Closing Date for a period of seven
(7) days. If, for any reason whatsoever, Seller has not discharged such title exceptions which are
not Permitted Exceptions prior to the expiration of such adjournment, and if Purchaser is not
willing to waive objection to such title exceptions, this Agreement shall be terminated as of the
expiration of such adjournment. In the event of a termination of this Agreement pursuant to this
subsection 4.3(b), the Earnest Money shall be refunded to Purchaser and neither party shall have
any further rights or obligations hereunder except for those that expressly survive the termination
of this Agreement. Nothing in this subsection 4.3(b) shall require Seller, despite any election by
Seller to attempt to discharge any title exceptions, to take or bring any action or proceeding or
any other steps to remove any title exception or to expend any moneys therefor. Nothing in this
subsection 4.3(b) shall limit or qualify Seller’s obligations under subsection 4.3(a) or give
Seller the right to adjourn the Closing Date or to terminate this Agreement as a result of Seller’s
failure or refusal to discharge Monetary Objections as to which Seller is required to obtain
releases as provided in subsection 4.3(a).

     4.4. Purchaser’s Right to Accept Title. Notwithstanding the foregoing provisions of
this Article 4, Purchaser may, by written notice given to Seller at any time prior to the earlier
of (x) the Closing Date and (y) the termination of this Agreement, elect to accept such title as
Seller can convey, notwithstanding the existence of any title exceptions which are not Permitted
Exceptions. In such event, this Agreement shall remain in effect and the parties shall proceed to
Closing but Purchaser shall not be entitled to any abatement of the Purchase Price, any credit or
allowance of any kind or any claim or right of action against Seller for damages or otherwise by
reason of the existence of any title exceptions which are not Permitted Exceptions, except for
title exceptions as to which Seller has an obligation to obtain releases as provided in Section
4.3(a).

     4.5. Cooperation. In connection with obtaining the Title Policy, Purchaser and
Seller, as applicable, and to the extent requested by the Title Company, will deliver to the Title
Company (a) evidence sufficient to establish (i) the legal existence of Purchaser and Seller and
(ii) the authority of the respective signatories of Seller and Purchaser to bind Seller and
Purchaser, as the case may be, (b) a certificate of existence of Seller issued by the Georgia
Secretary of State, (c) a so-called “gap” indemnity in favor of the Title Company with respect to
the period between the date of Closing and the date on which the Limited Warranty Deed shall

16

 

be filed in the real property
records of Fulton County, Georgia, and (d) any other reasonable and customary affidavits as may be
required by Title Company to issue the Title Policy.

ARTICLE 5.

REPRESENTATIONS, WARRANTIES AND OTHER AGREEMENTS

     5.1. Representations and Warranties of Seller. Seller hereby makes the following
representations and warranties to Purchaser:

     (a) Organization, Authorization and Consents. Seller is a duly organized and validly
existing limited partnership under the laws of the State of Georgia whose general partners are
Cousins and C & S Premises — SPE, Inc. Seller has the right, power and authority to enter into
this Agreement and to convey the Property in accordance with the terms and conditions of this
Agreement, to engage in the transactions contemplated in this Agreement and to perform and observe
the terms and provisions hereof.

     (b) Action of Seller, Etc. Seller has taken all necessary action to authorize the
execution, delivery and performance of this Agreement, and upon the execution and delivery of any
document to be delivered by Seller on or prior to the Closing, this Agreement and such document
shall constitute the valid and binding obligation and agreement of Seller, enforceable against
Seller in accordance with its terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws of general application affecting the rights
and remedies of creditors.

     (c) No Violations of Agreements. Neither the execution, delivery or performance of
this Agreement by Seller, nor compliance with the terms and provisions hereof, will result in any
breach of the terms, conditions or provisions of, or conflict with or constitute a default under,
or result in the creation of any lien, charge or encumbrance upon the Property or any portion
thereof pursuant to the terms of any indenture, deed to secure debt, mortgage, deed of trust, note,
evidence of indebtedness or any other agreement or instrument by which Seller is bound.

     (d) Litigation. Except as disclosed on Exhibit “H” attached hereto, Seller
has not received written notice of any pending suit, action or proceeding, which (i) if determined
adversely to Seller, materially and adversely affects the use or value of the Property, or (ii)
questions the validity of this Agreement or any action taken or to be taken pursuant hereto, or
(iii) involves condemnation or eminent domain proceedings involving the Property or any portion
thereof.

     (e) Existing Leases. Other than the Leases listed on Exhibit “F” attached
hereto, Seller has not entered into any contract or agreement with respect to the occupancy of the
Property or any portion or portions thereof which will be binding on Purchaser after the Closing.
The copies of the Leases heretofore delivered by Seller to Purchaser are true, correct and complete
copies thereof, and the Leases have not been amended except as evidenced by amendments similarly
delivered and listed on Exhibit “F” attached hereto and constitute the
entire agreement between Seller and the tenants thereunder, except for certain subordination and
non-disturbance agreements entered into with tenants and Seller’s existing lender which will

17

 

have
no force or effect after the Closing. Except as set forth in Exhibit “H” attached hereto,
Seller has not received any written notice of Seller’s default or failure to comply with the terms
and provisions of the Leases which remain uncured.

     (f) Right of First Offer. No tenant has any right or option (including any right of
first refusal or right of first offer) to purchase all or any part of the Property or any interest
therein.

     (g) Leasing Commissions and Tenant Inducement Costs. There are no lease brokerage
agreements, leasing commission agreements or other agreements providing for payments of any amounts
for leasing activities or procuring tenants with respect to the Property or any portion or portions
thereof other than as disclosed in Exhibit “C” attached hereto (the “Commission
Agreements”), and all leasing commissions and brokerage fees accrued or due and payable under
the Commission Agreements as of the date hereof and at the Closing have been or shall be paid in
full, except as set forth on Exhibit “N” attached hereto. Notwithstanding anything to the
contrary contained herein, Purchaser shall be responsible for the payment of all leasing
commissions payable for (a) any new leases entered into after the Effective Date that have been
approved (or deemed approved) by Purchaser, and (b) the renewal, expansion or extension of any
Leases existing as of the Effective Date and exercised or effected after the Effective Date. There
are no unpaid Tenant Inducement Costs under the existing Leases except as set forth on Exhibit
“N” attached hereto.

     (h) Management Agreement. Except for the existing management agreement between Seller
and Cousins which will be terminated by Seller at the Closing, there is no agreement currently in
effect relating to the management of the Property by any third-party management company.

     (i) Taxes and Assessments. Except as may be set forth on Exhibit “L”
attached hereto and made a part hereof, Seller has not filed, and has not retained anyone to
file, notices of protests against, or to commence action to review, real property tax assessments
against the Property.

     (j) Compliance with Laws. To Seller’s knowledge and except as set forth on
Exhibit “H”, Seller has received no written notice alleging any violations of law
(including any Environmental Law), municipal or county ordinances, or other legal requirements with
respect to the Property where such violations remain outstanding.

     (k) Other Agreements. To Seller’s knowledge, except for the Leases, the Service
Contracts, the Commission Agreements, and the Permitted Exceptions, there are no leases, management
agreements, brokerage agreements, leasing agreements or other agreements or instruments in force or
effect that grant to any person or any entity (other than Seller) any right, title, interest or
benefit in and to all or any part of the Property or any rights relating to the use, operation,
management, maintenance or repair of all or any part of the Property which will survive the Closing
or be binding upon Purchaser other than those which Purchaser is agreeing herein to
assume or which are terminable upon thirty (30) days notice without payment of premium or penalty.
The copies of the Service Contracts heretofore delivered by Seller to Purchaser are true, correct
and complete copies thereof, and the Service Contracts have not been

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amended except as evidenced by
an amendment similarly delivered and constitute the entire agreement between Seller and the
providers thereunder.

     (l) Seller Not a Foreign Person. Seller is not a “foreign person” which would subject
Purchaser to the withholding tax provisions of Section 1445 of the Internal Revenue Code of 1986,
as amended.

     (m) Employees. Seller has no employees to whom by virtue of such employment Purchaser
will have any obligation after the Closing.

     (n) Environmental Reports. To Seller’s knowledge, the Existing Environmental Reports
comprise all of the reports with respect to the environmental condition of the Land and/or
Improvements in Seller’s possession.

     The representations and warranties made in this Agreement by Seller shall be continuing, shall
survive the Closing as provided in Section 12.4 hereof, and shall be deemed remade by Seller as of
the Closing Date, with the same force and effect as if made on, and as of, such date, subject to
Seller’s right to update such representations and warranties by written notice to Purchaser and in
Seller’s Certificate to be delivered pursuant to Section 6.1(h) hereof.

     Except as otherwise expressly provided in this Agreement or in any documents to be executed
and delivered by Seller to Purchaser at the Closing, Seller has not made, and Purchaser has not
relied on, any information, promise, representation or warranty, express or implied, regarding the
Property, whether made by Seller, on Seller’s behalf or otherwise, including, without limitation,
the physical condition of the Property, the financial condition of the tenants under the Leases,
title to or the boundaries of the Property, pest control matters, soil conditions, the presence,
existence or absence of hazardous wastes, toxic substances or other environmental matters,
compliance with building, health, safety, land use and zoning laws, regulations and orders,
structural and other engineering characteristics, traffic patterns, market data, economic
conditions or projections, past or future economic performance of the tenants or the Property, and
any other information pertaining to the Property or the market and physical environments in which
the Property is located. Purchaser acknowledges (i) that Purchaser has entered into this Agreement
with the intention of making and relying upon its own investigation or that of Purchaser’s own
consultants and representatives with respect to the physical, environmental, economic and legal
condition of the Property and (ii) that Purchaser is not relying upon any statements,
representations or warranties of any kind, other than those specifically set forth in this
Agreement or in any document to be executed and delivered by Seller to Purchaser at the Closing,
made (or purported to be made) by Seller or anyone acting or claiming to act on Seller’s behalf.
Purchaser will inspect the Property and become fully familiar with the physical condition thereof
and, subject to the terms and conditions of this Agreement, shall purchase the Property in its “as
is” condition, “with all faults,” on the Closing Date. The provisions of the foregoing paragraph
shall survive the Closing until the expiration of any applicable statute of limitations.

     5.2. Knowledge Defined. All references in this Agreement to “the knowledge of Seller”
or “to Seller’s knowledge” shall refer only to the actual knowledge of Michael Hoffer and

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Jack A.
LaHue, each of whom has been actively involved in the management of Seller’s business in respect of
the Property in the capacities of Senior Property Manager and Senior Vice President, respectively,
of Cousins. The term “knowledge of Seller” or “to Seller’s knowledge” shall not be construed, by
imputation or otherwise, to refer to the knowledge of Seller, or any affiliate of Seller, or to any
other partner, beneficial owner, officer, director, agent, manager, representative or employee of
Seller, or any of their respective affiliates, or to impose on any of the individuals named above
any duty to investigate the matter to which such actual knowledge, or the absence thereof,
pertains. There shall be no personal liability on the part of the individuals named above arising
out of any representations or warranties made herein or otherwise.

     5.3. Covenants and Agreements of Seller.

     (a) Leasing Arrangements. During the pendency of this Agreement, Seller will not
enter into any lease affecting the Property, or modify or amend in any material respect, or
terminate, any of the existing Leases without Purchaser’s prior written consent in each instance,
which consent shall not be unreasonably withheld, delayed or conditioned prior to the Due Diligence
Date and may thereafter be withheld in Purchaser’s sole discretion and which shall be deemed given
unless withheld by written notice to Seller given within three (3) Business Days after Purchaser’s
receipt of Seller’s written request therefor, each of which requests shall be accompanied by a copy
of any proposed modification or amendment of an existing Lease or of any new Lease that Seller
wishes to execute between the Effective Date and the Closing Date, including, without limitation, a
description of any Tenant Inducement Costs and leasing commissions associated with any proposed
renewal or expansion of an existing Lease or with any such new Lease. If Purchaser fails to notify
Seller in writing of its approval or disapproval within said three (3) Business Day period, such
failure by Purchaser shall be deemed to be the approval of Purchaser. At Closing, Purchaser shall
reimburse Seller for any Tenant Inducement Costs, leasing commissions or other expenses, including
reasonable attorney’s fees, actually incurred by Seller pursuant to a renewal or expansion of any
existing Lease or new Lease approved (or deemed approved) by Purchaser hereunder. Notwithstanding
anything contained herein to the contrary, Purchaser acknowledges and agrees that prior to Closing,
Seller may enter into those certain amendments to the Leases and the new leases which are described
on Exhibit “M” attached hereto, provided that each such amendment and/or new lease shall
be consistent with the terms set forth on Exhibit “M” attached hereto.

     (b) New Contracts. During the pendency of this Agreement, Seller will not enter into
any contract, or modify, amend, renew or extend any existing contract, that will be an obligation
affecting the Property or any part thereof subsequent to the Closing without Purchaser’s prior
written consent in each instance (which Purchaser agrees not to withhold or delay unreasonably
prior to the Due Diligence Date and may thereafter be withheld in Purchaser’s sole discretion),
except contracts entered into in the ordinary course of business that are terminable without cause
(and without penalty or premium) on 30 days (or less) notice. At Closing, Purchaser and Cousins
shall enter into a new management agreement and a new leasing agreement with respect to the
Property, the forms of which shall be agreed upon by the parties hereto prior to the Due Diligence
Date.

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     (c) Operation of Property. During the pendency of this Agreement, Seller shall
continue to operate the Property in a good and businesslike fashion consistent with Seller’s past
practices.

     (d) Insurance. During the pendency of this Agreement, Seller shall, at its expense,
continue to maintain the fire insurance policy covering the Improvements which is currently in
force and effect.

     (e) Tenant Estoppel Certificates and SNDAs. Seller shall endeavor in good faith (but
without obligation to incur any material cost or expense) to obtain and deliver to Purchaser prior
to Closing a written Tenant Estoppel Certificate in the form attached hereto as Exhibit
“J-1”, “J-2” or “J-3”, as applicable (as the same may be modified upon the reasonable request
of Purchaser submitted to Seller prior to the later of the dates referred to in (a) and (b) in the
definition of “Tenant Estoppel Certificate” set forth in this Agreement), signed by each tenant or
licensee under each of the Leases (or if the applicable Lease provides for a particular form of
estoppel certificate to be given by the tenant or licensee thereunder, the Tenant Estoppel
Certificate with respect to such Lease may be in the form as called for therein); provided that
delivery of such signed Tenant Estoppel Certificates shall be a condition of Closing only to the
extent set forth in Section 7.1(d) hereof; and in no event shall the inability or failure of Seller
to obtain and deliver said Tenant Estoppel Certificates (Seller having used its good faith efforts
as set forth above) be a default of Seller hereunder. Seller shall also cooperate with Purchaser,
at no material cost or expense to Seller, in obtaining any subordination, non-disturbance and
attornment agreements as may be required by Purchaser’s lender, provided that the delivery of any
thereof shall not be a condition of Closing or a condition to Purchaser’s obligations hereunder.
Purchaser shall use commercially reasonable efforts to provide to Seller the forms of such
subordination, non-disturbance and attornment agreements, if any, to be submitted to the tenants on
or before July 21, 2006.

     5.4. Representations and Warranties of Purchaser. Purchaser hereby makes the
following representations and warranties to Seller:

     (a) Organization, Authorization and Consents. Purchaser is a duly organized and
validly existing limited liability company under the laws of the State of Delaware. Purchaser has
the right, power and authority to enter into this Agreement and to purchase the Property in
accordance with the terms and conditions of this Agreement, to engage in the transactions
contemplated in this Agreement and to perform and observe the terms and provisions hereof.

     (b) Action of Purchaser, Etc. Purchaser has taken all necessary action to authorize
the execution, delivery and performance of this Agreement, and upon the execution and delivery of
any document to be delivered by Purchaser on or prior to the Closing, this Agreement and such
document shall constitute the valid and binding obligation and agreement of Purchaser, enforceable
against Purchaser in accordance with its terms, except as enforceability may be limited
by bankruptcy, insolvency, reorganization, moratorium or similar laws of general application
affecting the rights and remedies of creditors.

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     (c) No Violations of Agreements. Neither the execution, delivery or performance of
this Agreement by Purchaser, nor compliance with the terms and provisions hereof, will result in
any breach of the terms, conditions or provisions of, or conflict with or constitute a default
under the terms of any indenture, deed to secure debt, mortgage, deed of trust, note, evidence of
indebtedness or any other agreement or instrument by which Purchaser is bound.

     (d) Litigation. To Purchaser’s knowledge, Purchaser has received no written notice
that any action or proceeding is pending or threatened, which questions the validity of this
Agreement or any action taken or to be taken pursuant hereto.

     The representations and warranties made in this Agreement by Purchaser shall be continuing,
shall survive the Closing as provided in Section 12.4 hereof, and shall be deemed remade by
Purchaser as of the Closing Date, with the same force and effect as if made on, and as of, such
date subject to Purchaser’s right to update such representations and warranties by written notice
to Seller and in Purchaser’s Certificate to be delivered pursuant to Section 6.2(c) hereof.

ARTICLE 6.

CLOSING DELIVERIES, CLOSING COSTS AND PRORATIONS

     6.1. Seller’s Closing Deliveries. For and in consideration of, and as a condition
precedent to Purchaser’s delivery to Seller of the Purchase Price, Seller shall obtain or execute
and deliver to Purchaser at Closing the following documents, all of which shall be duly executed,
acknowledged and notarized where required:

     (a) Limited Warranty Deed. A limited warranty deed with respect to the Land and
Improvements, in the form attached hereto as Schedule 1 (the “Limited Warranty
Deed”), subject only to the Permitted Exceptions, and executed and acknowledged by Seller. The
legal descriptions of the Land set forth in said Limited Warranty Deed shall conform to the legal
descriptions attached hereto as Exhibit “A”;

     (b) Bill of Sale. The Bill of Sale for the Personal Property, executed by Seller;

     (c) Assignment and Assumption of Leases and Security Deposits. Two (2) counterparts
of the Assignment and Assumption of Leases, executed by Seller;

     (d) Assignment and Assumption of Service Contracts. Two (2) counterparts of the
Assignment and Assumption of Service Contracts, executed by Seller;

     (e) General Assignment. The General Assignment, executed by Seller;

     (f) Seller’s Affidavit. The Seller’s Affidavit, executed by an authorized officer of
a general partner of Seller;

     (g) Seller’s Certificate. The Seller’s Certificate, executed by Seller;

     (h) FIRPTA Affidavit. The FIRPTA Affidavit, executed by Seller;

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     (i) Affidavit of Transferor’s Residence. An affidavit from Seller in the form
attached hereto as Schedule 10 confirming that Seller is a Georgia resident for purposes
of O.C.G.A. § 48-7-128 so that proceeds from the sale of the Property are not subject to the
withholding laws of the State of Georgia;

     (j) Evidence of Authority. Such documentation as may reasonably be required by
Purchaser’s title insurer to establish that this Agreement, the transactions contemplated herein,
and the execution and delivery of the documents required hereunder, are duly authorized, executed
and delivered on behalf of Seller;

     (k) Settlement Statement. A settlement statement setting forth the amounts paid by or
on behalf of and/or credited to each of Purchaser and Seller pursuant to this Agreement. A draft
of the settlement statement shall be delivered by Seller not later than five (5) days before the
Closing, and Seller and Purchaser shall use reasonable efforts to finalize same as soon as possible
before Closing;

     (l) Surveys and Plans. Such surveys, site plans, plans and specifications, and other
matters relating to the Property as are in the possession of Seller to the extent not theretofore
delivered to Purchaser;

     (m) Certificates of Occupancy. To the extent the same are in Seller’s possession,
original or photocopies of certificates of occupancy for all space within the Improvements located
on the Property;

     (n) Leases. To the extent the same are in Seller’s possession, original executed
counterparts of the Leases;

     (o) Tenant Estoppel Certificates. All originally executed Tenant Estoppel
Certificates as may be in Seller’s possession, together with such Seller Estoppels as Seller may
elect to execute and deliver as provided in Section 7.1(d) hereof;

     (p) Notices of Sale to Tenants. Seller will join with Purchaser in executing a
notice, in form and content reasonably satisfactory to Seller and Purchaser (the “Tenant
Notices of Sale”), which Purchaser shall send to the tenants under the Leases informing the
tenants of the sale of the Property and of the assignment to and assumption by Purchaser of
Seller’s interest in the Leases and the Security Deposits and directing that all rent and other
sums payable for periods after the Closing under such Lease shall be paid as set forth in said
notices;

     (q) Notices of Sale to Service Contractors and Leasing Agents. Seller will join with
Purchaser in executing notices, in form and content reasonably satisfactory to Seller and
Purchaser (the “Other Notices of Sale”), which Purchaser shall send to each service
provider and leasing agent under the Service Contracts and Commission Agreements (as the case may
be) assumed by Purchaser at Closing informing such service provider or leasing agent (as the case
may be) of the sale of the Property and of the assignment to and assumption by Purchaser of
Seller’s obligations under the Service Contracts and Commission Agreements arising after the

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Closing Date and directing that all future statements or invoices for services under such
Service Contracts and/or Commission Agreements for periods after the Closing be directed to Seller
or Purchaser as set forth in said notices;

     (r) Keys and Records. All of the keys to any door or lock on the Property and the
original tenant files and other non-confidential books and records (excluding any appraisals,
budgets, strategic plans for the Property, internal analyses, information regarding the marketing
of the Property for sale, submissions relating to Seller’s obtaining of corporate authorization,
attorney and accountant work product, attorney-client privileged documents, or other information in
the possession or control of Seller which Seller deems proprietary) relating to the Property in
Seller’s possession;

     (s) Termination of Leasing Agreement and Existing Management Agreement. Evidence of
the termination by Seller of the Leasing Agreement and Seller’s existing management agreement with
Cousins;

     (t) New Management and Leasing Agreements. A new management agreement for the
Property executed by Cousins and a new leasing agreement for the Property executed by Cousins in
the forms to be determined by the parties hereto prior to the Due Diligence Date; and

     (u) Other Documents. Such other documents as shall be reasonably requested by the
Title Company to effectuate the purposes and intent of this Agreement.

     6.2. Purchaser’s Closing Deliveries. Purchaser shall obtain or execute and deliver to
Seller at Closing the following documents, all of which shall be duly executed, acknowledged and
notarized where required:

     (a) Assignment and Assumption of Leases. Two (2) counterparts of the Assignment and
Assumption of Leases, executed by Purchaser;

     (b) Assignment and Assumption of Service Contracts. Two (2) counterparts of the
Assignment and Assumption of Service Contracts, executed by Purchaser;

     (c) Purchaser’s Certificate. The Purchaser’s Certificate, executed by Purchaser;

     (d) Notice of Sale to Tenants. The Tenant Notices of Sale, executed by Purchaser, as
contemplated in Section 5.1(p) hereof;

     (e) Notices of Sale to Service Contractors and Leasing Agents. The Other Notices of
Sale to service providers and leasing agents, as contemplated in Section 5.1(q) hereof;

     (f) Settlement Statement. A settlement statement setting forth the amounts paid by or
on behalf of and/or credited to each of Purchaser and Seller pursuant to this Agreement. A draft
of the settlement statement shall be delivered by Seller not later than five (5) days before the
Closing, and Seller and Purchaser shall use reasonable efforts to finalize same as soon as possible
before Closing;

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     (g) Evidence of Authority. A copy of resolutions of the managing member of Purchaser,
certified by an officer or manager of such managing member to be in force and unmodified as of the
date and time of Closing, authorizing the purchase contemplated herein, the execution and delivery
of the documents required hereunder, and designating the signatures of the persons who are to
execute and deliver all such documents on behalf of Purchaser;

     (h) New Management and Leasing Agreements. A new management agreement between
Purchaser and Cousins and a new leasing agreement between Purchaser and Cousins and in the forms to
be determined by the parties hereto prior to the Due Diligence Date; and

     (i) Other Documents. Such other documents as shall be reasonably requested by the
Title Company or Seller’s counsel to effectuate the purposes and intent of this Agreement.

     6.3. Closing Costs. Seller shall pay the attorney’s fees of Seller, one-half of any
escrow closing fees charged by the Title Company, the cost of the Existing Survey, the cost of the
transfer taxes imposed by the State of Georgia or other taxing authority upon the conveyance of the
Property, and all other costs and expenses incurred by Seller in closing and consummating the
purchase and sale of the Property pursuant hereto. Purchaser shall pay the cost of any owner’s
title insurance premium, including the premium or fees for the issuance of any endorsements to such
policy or for any reinsurance policies, the cost of any update or re-certifications of the Existing
Survey, any transfer fees payable upon the transfer of any letter of credit, all recording fees on
all instruments to be recorded in connection with this transaction, the attorney’s fees of
Purchaser, one-half of any escrow closing fees charged by the Title Company, and all other costs
and expenses incurred by Purchaser in the performance of Purchaser’s due diligence inspection of
the Property and in closing and consummating the purchase and sale of the Property pursuant hereto.

     6.4. Prorations and Credits. The following items in this Section 6.4 shall be
adjusted and prorated between Seller and Purchaser as of 11:59 P.M. on the day preceding the
Closing, based upon the actual number of days in the applicable month or year:

     (a) Taxes. All general real estate taxes imposed by any governmental authority
(“Taxes”) for the year in which the Closing occurs shall be prorated between Seller and
Purchaser as of the Closing. If the Closing occurs prior to the receipt by Seller of the tax bill
for the calendar year or other applicable tax period in which the Closing occurs, Taxes shall be
prorated for such calendar year or other applicable tax period based upon the prior year’s tax
bill.

     (b) Reproration of Taxes. Within fifteen (15) days of receipt of final bills for
Taxes, the party receiving said final bills shall furnish copies of the same to the other party and
shall prepare and present to the other party a calculation of the reproration of such Taxes, based
upon the actual amount of such Taxes for the year in which the Closing occurs. The parties shall
make the appropriate adjusting payment between them within thirty (30) days after presentment of
such calculation and appropriate back-up information. The provisions of this Section 6.4(b) shall
survive the Closing for a period of one (1) year after the Closing Date.

25

 

     (c) Rents, Income and Other Expenses. Rents and any other amounts payable by tenants
shall be prorated as of the Closing Date and be adjusted against the Purchase Price on the basis of
a schedule which shall be prepared by Seller and delivered to Purchaser for Purchaser’s review and
approval prior to Closing. Purchaser shall receive at Closing a credit for Purchaser’s pro rata
share of the rents, additional rent, common area maintenance charges, tenant reimbursements and
escalations, and all other payments payable for the month of Closing and for all other rents and
other amounts that apply to periods from and after the Closing, but which are received by Seller
prior to Closing. Purchaser agrees to pay to Seller, upon receipt, any rents or other payments by
tenants under their respective Leases that apply to periods prior to Closing but are received by
Purchaser after Closing; provided, however, that any delinquent rents or other payments by tenants
shall be applied first to any current amounts owing by such tenants, then to delinquent rents in
the order in which such rents are most recently past due, with the balance, if any, paid over to
Seller to the extent of delinquencies existing at the time of Closing to which Seller is entitled;
it being understood and agreed that Purchaser shall not be legally responsible to Seller for the
collection of any rents or other charges payable with respect to the Leases or any portion thereof,
which are delinquent or past due as of the Closing Date; but Purchaser agrees that Purchaser shall
send monthly notices for a period of three (3) consecutive months in an effort to collect any rents
and charges not collected as of the Closing Date. Any reimbursements payable by any tenant under
the terms of any tenant lease affecting the Property as of the Closing Date, which reimbursements
pertain to such tenant’s pro rata share of increased operating expenses or common area maintenance
costs incurred with respect to the Property at any time prior to the Closing, shall be prorated
upon Purchaser’s actual receipt of any such reimbursements, on the basis of the number of days of
Seller and Purchaser’s respective ownership of the Property during the period in respect of which
such reimbursements are payable; and Purchaser agrees to pay to Seller Seller’s pro rata portion of
such reimbursements within thirty (30) days after Purchaser’s receipt thereof. Conversely, if any
tenant under any such Lease shall become entitled at any time after Closing to a refund of tenant
reimbursements actually paid by such tenant prior to Closing, then, Seller shall, within thirty
(30) days following Purchaser’s demand therefor, pay to Purchaser an amount equal to Seller’s pro
rata share of such reimbursement refund obligations, said proration to be calculated on the same
basis as hereinabove set forth. Seller hereby retains its right to pursue any tenant under the
Leases for sums due Seller for periods attributable to Seller’s ownership of the Property;
provided, however, that Seller (i) shall be required to notify Purchaser in writing of its
intention to commence or pursue such legal proceedings; (ii) shall only be permitted to commence or
pursue any legal proceedings after the date which is three (3) months after Closing, except that
Seller shall be entitled to continue to pursue any legal proceedings commenced prior to Closing;
(iii) shall not be permitted to commence or pursue any legal proceedings against any tenant seeking
eviction of such tenant or the termination of the applicable Lease; and (iv) shall not commence
insolvency or bankruptcy proceedings against any tenant. The provisions of this Section 6.4(c)
shall survive the Closing for a period of one (1) year after the Closing Date.

     (d) Percentage Rents. Percentage rents, if any, collected by Purchaser from any
tenant under such tenant’s Lease for the percentage rent accounting period in which the Closing
occurs shall be prorated between Seller and Purchaser as of the Closing Date, as, if, and when
received by Purchaser, such that Seller’s pro rata share shall be an amount equal to the total
percentage rentals paid for such percentage rent accounting period under the applicable Lease
multiplied by a fraction, the numerator of which shall be the number of days in such accounting
period prior to Closing and the denominator of which shall be the total number of days in such
accounting

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period; provided, however, that such proration shall be made only at such time as such tenant
is current or, after application of a portion of such payment, will be current in the payment of
all rental and other charges under such tenant’s Lease that accrue and become due and payable from
and after the Closing. The provisions of this Section 6.4(d) shall survive the Closing for a
period of one (1) year after the Closing Date.

     (e) Tenant Inducement Costs. Set forth on Exhibit “N” attached hereto and
made a part hereof is a list of tenants at the Property with respect to which Tenant Inducement
Costs and/or leasing commissions have not been paid in full as of the Effective Date. The
responsibility for the payment of such Tenant Inducement Costs and leasing commissions shall be
allocated as between Seller and Purchaser as set forth on Exhibit “N”. All of such Tenant
Inducement Costs and leasing commissions set forth on Exhibit “N” become due and payable
after the scheduled date for Closing under this Agreement. Accordingly, if said amounts which are
the responsibility of Seller as set forth on Exhibit “N” have not been paid in full on or
before the Closing Date (such payment to be evidenced by documentation reasonably acceptable to
Purchaser), Purchaser shall assume such payment obligation at Closing, and Purchaser shall receive
a credit against the Purchase Price in the aggregate amount of the said unpaid Tenant Inducement
Costs and leasing commissions. Except as may be specifically provided to the contrary elsewhere in
this Agreement, Purchaser shall be responsible for the payment of all Tenant Inducement Costs and
leasing commissions which become due and payable (whether before or after Closing) as a result of
any renewals or extensions or expansions of existing Leases approved or deemed approved by
Purchaser in accordance with Section 5.3(a) hereof between the Effective Date and the Closing Date
and under any new Leases, approved or deemed approved by Purchaser in accordance with said Section
5.3(a). The provisions of this Section 6.4(e) shall survive the Closing.

     (f) Security Deposits. Purchaser shall receive at Closing a credit for all Security
Deposits transferred and assigned to Purchaser at Closing in connection with the Leases, together
with a detailed inventory of such Security Deposits. In addition, Seller shall assign (to the
extent assignable) and deliver to Purchaser at Closing any and all letters of credit and other
instruments held by Seller as security deposits under the Leases. In the event any letter of
credit or other instrument held by Seller as security deposits under the Leases is not assignable
(such as a letter of credit that is not transferable), Seller shall use commercially reasonable
efforts to provide Purchaser, at no cost to Seller, with the economic benefits of such property by
enforcing such property (solely at Purchaser’s discretion) for the benefit and at the expense of
Purchaser; provided Purchaser shall take all reasonable steps required (including making a demand
on the tenant) to effectively transfer or reissue to Purchaser such security deposit promptly after
Closing; and provided further that Purchaser shall indemnify, defend and hold harmless Seller
against all claims, liabilities or expenses (including reasonable attorney’s fees) arising from a
claim that Purchaser improperly exercised its rights under the letters of credit at any time after
Closing. The obligations of Seller under this Section 7.1(f) shall survive the Closing until the
expiration of the term of the applicable letter of credit, and the obligations of Purchaser under
this Section 7.1(f) shall survive the Closing until the expiration of the applicable statute of
limitations. Seller shall receive a credit at Closing in the amount of all refundable cash or
other deposits posted with utility companies serving the Property which are duly assigned to
Purchaser at Closing.

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     (g) Operating Expenses. Personal property taxes, installment payments of special
assessment liens, vault charges, sewer charges, utility charges, and normally prorated operating
expenses actually paid or payable as of the Closing Date shall be prorated as of the Closing Date
and adjusted against the Purchase Price, provided that within ninety (90) days after the Closing,
Purchaser and Seller will make a further adjustment for such taxes, charges and expenses which may
have accrued or been incurred prior to the Closing Date, but not collected or paid at that date.
In addition, within ninety (90) days after the close of the fiscal year(s) used in calculating the
pass-through to tenants of operating expenses and/or common area maintenance costs under the Leases
(where such fiscal year(s) include(s) the Closing Date), Seller and Purchaser shall, upon the
request of either, re-prorate on a fair and equitable basis in order to adjust for the effect of
any credits or payments due to or from tenants for periods prior to the Closing Date. All
prorations shall be made based on the number of calendar days in such year or month, as the case
may be. If possible, utility prorations will be handled by final meter readings on the Closing
Date. If final readings are not possible, or if any such charges are not separately metered, such
charges will be prorated on a fair and equitable basis utilizing the billing information for the
most recent period(s) for which costs are available. The provisions of this Section 6.4(g) shall
survive the Closing for a period of one (1) year after the Closing Date.

     (h) Commissions for Pending Lease Transactions. Pursuant to that certain Property
Leasing Agreement between Seller and Cousins Real Estate Corporation dated September 29, 1989, as
amended and as assigned by Cousins Real Estate Corporation to Cousins (the “Leasing
Agreement”), Cousins solicits tenants and negotiates leases for the Property. For any
Protected Tenant (as hereinafter defined) who enters into a lease, lease renewal, lease extension
or lease expansion with Purchaser within ninety (90) days after the Closing Date, Purchaser hereby
agrees to pay Cousins a commission calculated in accordance with the Leasing Agreement. Seller
shall deliver to Purchaser a list of Protected Tenants on or before July 31, 2006. As used herein,
“Protected Tenant” shall mean any tenant (existing or proposed) with whom Cousins has been,
within ninety (90) days of the Closing, holding substantive negotiations for a lease (or a renewal
of or expansion under a Lease) relating to the Property. The provisions of this Section 6.4(h)
shall survive the Closing for a period of one (1) year after the Closing Date.

ARTICLE 7.

CONDITIONS TO CLOSING

     7.1. Conditions Precedent to Purchaser’s Obligations. The obligations of Purchaser
hereunder to consummate the transaction contemplated hereunder shall in all respects be conditioned
upon the satisfaction of each of the following conditions prior to or simultaneously with the
Closing, any of which may be waived by Purchaser in its sole discretion by written notice to Seller
at or prior to the Closing Date:

     (a) Seller shall have delivered to Purchaser all of the items required to be delivered to
Purchaser pursuant to Section 6.1 hereof;

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     (b) Seller shall have performed or complied with, in all material respects, each obligation
and covenant required by this Agreement to be performed or complied with by Seller on or before the
Closing;

     (c) All representations and warranties of Seller as set forth in this Agreement shall be true
and correct in all material respects as of the date of this Agreement and as of Closing, provided
that solely for purposes of this subparagraph such warranties and representations shall be deemed
to be given without being limited to Seller’s knowledge and without modification (by update or
otherwise, as provided in the Seller’s Certificate);

     (d) Tenant Estoppel Certificates from each of the Major Tenants plus such additional tenants
which, together with the Major Tenants, lease 75% in the aggregate of the leased floor area of the
Improvements (the “Required Estoppels”) shall have been delivered to Purchaser, with each
such Tenant Estoppel Certificate (i) to be substantially in the form attached hereto as Exhibit
“J-1” (or if the applicable Lease provides for a particular form of estoppel certificate to be
given by the tenant thereunder, the Tenant Estoppel Certificate with respect to such Lease may be
in the form as called for therein), (ii) to be dated within thirty (30) days prior to the Closing
Date, (iii) to confirm the material terms of the applicable Lease, as contained in the copies of
the Leases obtained by or delivered to Purchaser, and (iv) to confirm the absence of any (A)
material defaults under the applicable Lease as of the date thereof and (B) claims by or right to
offset in favor of the tenant thereunder. The insertion by the tenant of the phrase “to the
Tenant’s knowledge” or words of similar import into the statements made by the Tenant in paragraphs
6 and 7 of the form attached hereto as Exhibit “J-1” shall not cause a Tenant Estoppel
Certificate to fail to be in substantially the form attached hereto. Likewise, the deletion of
Paragraphs 13 and/or 14 of the form attached hereto as Exhibit “J-1” shall not cause a
Tenant Estoppel Certificate to fail to be in substantially the form attached hereto. The delivery
of said Required Estoppels shall be a condition of Closing; provided, however, in
the event Seller is unable to deliver all the Required Estoppels at the Closing, Seller shall have
the right (in its sole and absolute discretion, with no obligation) to deliver certificates
executed by Seller substantially in the form attached hereto as Exhibit “J-4” (the
“Seller Estoppels”), which shall be dated as of the Closing Date and shall count towards
the Required Estoppels; provided further that Seller shall not be entitled to deliver
Seller Estoppels for the Major Tenants or for tenants occupying more than 10% of the leased floor
area of the Improvements; and provided further that if at any time, on or after Closing,
Purchaser receives a Tenant Estoppel Certificate with respect to a Lease for which Seller
previously delivered a Seller Estoppel (a “Replacement Estoppel”), the Replacement Estoppel
shall supersede and replace the Seller Estoppel and Seller shall have no further liability under
the applicable Seller Estoppel. Purchaser’s closing condition as set forth in this subsection
7.1(d) shall be deemed satisfied and irrevocably waived by Purchaser with respect to a Required
Estoppel from a particular tenant if a Tenant Estoppel Certificate from such tenant has been
delivered to Purchaser and Purchaser does not object in a written notice to Seller specifying
Purchaser’s objections to the form of such Tenant Estoppel Certificate within five (5) Business
Days after receipt thereof by Purchaser. The failure or inability of Seller to obtain and deliver
said Required Estoppels, Seller having used its good faith efforts to obtain the same, shall not
constitute a default by Seller under this Agreement; and

29

 

     (e) Title to the Property shall be delivered to Purchaser in the manner required under Section
4.1 hereof and the Title Company is irrevocably committed, upon payment of the policy premium
(including the premiums for endorsements and any reinsurance), to issue to Purchaser upon the
Closing the Title Policy.

In the event any of the conditions in this Section 7.1 have not been satisfied (or otherwise waived
in writing by Purchaser) prior to or on the Closing Date (as same may be extended or postponed as
provided in this Agreement), Purchaser shall have the right to terminate this Agreement by written
notice to Seller given prior to the Closing, whereupon (i) Escrow Agent shall return the Earnest
Money to Purchaser; and (ii) except for those provisions of this Agreement which by their express
terms survive the termination of this Agreement, no party hereto shall have any other or further
rights or obligations under this Agreement.

     7.2. Conditions Precedent to Seller’s Obligations. The obligations of Seller
hereunder to consummate the transaction contemplated hereunder shall in all respects be conditioned
upon the satisfaction of each of the following conditions prior to or simultaneously with the
Closing, any of which may be waived by Seller in its sole discretion by written notice to Purchaser
at or prior to the Closing Date:

     (a) Purchaser shall have paid and Seller shall have received the Purchase Price, as adjusted
pursuant to the terms and conditions of this Agreement, and all other amounts then payable by
Purchaser to Seller hereunder, which Purchase Price and other amounts shall be payable in the
amount and in the manner provided for in this Agreement;

     (b) Purchaser shall have delivered to Seller all of the items required to be delivered to
Seller pursuant to Section 6.2 hereof;

     (c) Purchaser shall have performed or complied with, in all material respects, each obligation
and covenant required by the Agreement to be performed or complied with by Purchaser on or before
the Closing; and

     (d) All representations and warranties of Purchaser as set forth in this Agreement shall be
true and correct in all material respects as of the date of this Agreement and as of Closing,
provided that solely for purposes of this subparagraph such warranties and representations shall be
deemed to be given without being limited to Purchaser’s knowledge and without modification (by
update or otherwise, as provided in the Purchaser’s Certificate).

ARTICLE 8.

CASUALTY AND CONDEMNATION

     8.1. Casualty. Risk of loss up to the Closing shall be borne by Seller. In the event
of any immaterial damage or destruction to the Property or any portion thereof, Seller and
Purchaser shall proceed to close under this Agreement, and Purchaser will receive (and Seller will
assign to Purchaser at the Closing Seller’s rights under insurance policies to receive) any
insurance proceeds (including any rent loss insurance applicable to any period on and after the
Closing Date) due Seller as a result of such damage or destruction (less any amounts reasonably

30

 

expended for restoration or collection of proceeds) and assume responsibility for such repair, and
Purchaser shall receive a credit at Closing for any deductible amount under said insurance
policies. For purposes of this Agreement, the term “immaterial damage or destruction”
shall mean such instances of damage or destruction: (i) which can be repaired or restored at a
cost of $5,000,000.00 or less; (ii) which can be restored and repaired within one hundred eighty
(180) days from the date of such damage or destruction; (iii) which are not so extensive as to
allow tenants leasing more than one percent (1%) in the aggregate of the leased floor area of the
Improvements to terminate their Leases on account of such damage or destruction; and (iv) in which
Seller’s rights under its rent loss insurance policy covering the Property are assignable to
Purchaser and will continue pending restoration and repair of the damage or destruction.

     In the event of any material damage or destruction to the Property or any portion thereof,
Purchaser may, at its option, by notice to Seller given within the earlier of fifteen (15) days
after Purchaser is notified by Seller of such damage or destruction, or the Closing, but in no
event less than ten (10) days after Purchaser is notified by Seller of such damage or destruction
(and if necessary the Closing Date shall be extended to give Purchaser the full 10-day period to
make such election): (i) terminate this Agreement, whereupon Escrow Agent shall immediately return
the Earnest Money to Purchaser, or (ii) proceed to close under this Agreement, receive (and Seller
will assign to Purchaser at the Closing Seller’s rights under insurance policies to receive) any
insurance proceeds (including any rent loss insurance applicable to the period on or after the
Closing Date) due Seller as a result of such damage or destruction (less any amounts reasonably
expended for restoration or collection of proceeds) and assume responsibility for such repair, and
Purchaser shall receive a credit at Closing for any deductible amount under said insurance
policies. If Purchaser fails to deliver to Seller notice of its election within the period set
forth above, Purchaser will conclusively be deemed to have elected to proceed with the Closing as
provided in clause (ii) of the preceding sentence. If Purchaser elects clause (ii) above, Seller
will cooperate with Purchaser after the Closing to assist Purchaser in obtaining the insurance
proceeds from Seller’s insurers. For purposes of this Agreement “material damage or
destruction” shall mean all instances of damage or destruction that are not immaterial, as
defined herein.

     8.2. Condemnation. If, prior to the Closing, all or any part of the Property is
subjected to a bona fide threat of condemnation by a body having the power of eminent domain or is
taken by eminent domain or condemnation (or sale in lieu thereof), or if Seller has received
written notice that any condemnation action or proceeding with respect to the Property is
contemplated by a body having the power of eminent domain (collectively, a “Taking”),
Seller shall give Purchaser immediate written notice of such Taking. In the event of any
immaterial Taking with respect to the Property or any portion thereof, Seller and Purchaser shall
proceed to close under this Agreement. For purposes of this Agreement, the term “immaterial
Taking” shall mean such instances of Taking of a Property: (i) which do not result in a taking
of any portion of the building structure of the building occupied by tenants on the Property; (ii)
which do not result in a decrease in the number of parking spaces at the Property (taking into
account the number of additional parking spaces that can be provided within 180 days of such
Taking); and (iii) which are not so extensive as to allow a tenant to terminate its Lease or abate
or reduce rent payable thereunder [unless business loss or rent insurance (subject to applicable
deductibles) or condemnation award proceeds shall be available in the full amount of such abatement
or

31

 

reduction, and Purchaser shall receive a credit at Closing for such deductible amount] on account
of such Taking.

     In the event of any material Taking of the Property or any portion thereof, Purchaser may, at
its option, by written notice to Seller given within fifteen (15) days after receipt of such notice
from Seller, elect to terminate this Agreement, or Purchaser may choose to proceed to close. If
Purchaser chooses to terminate this Agreement in accordance with this Section 8.2, then the Earnest
Money shall be returned immediately to Purchaser by Escrow Agent and the rights, duties,
obligations, and liabilities of the parties hereunder shall immediately terminate and be of no
further force and effect, except for those provisions of this Agreement which by their express
terms survive the termination of this Agreement. For purposes of this Agreement “material
Taking ” shall mean all instances of a Taking that are not immaterial, as defined herein.

     If Purchaser does not elect to, or has no right to, terminate this Agreement in accordance
herewith on account of a Taking, this Agreement shall remain in full force and effect and the sale
of the Property contemplated by this Agreement, less any interest taken by eminent domain or
condemnation, or sale in lieu thereof, shall be effected with no further adjustment and without
reduction of the Purchase Price, and at the Closing, Seller shall assign, transfer, and set over to
Purchaser all of the right, title, and interest of Seller in and to any awards applicable to the
Property that have been or that may thereafter be made for such Taking. At such time as all or a
part of the Property is subjected to a bona fide threat of condemnation and Purchaser shall not
have elected to terminate this Agreement as provided in this Section 8.2, (i) Purchaser shall
thereafter be permitted to participate in the proceedings as if Purchaser were a party to the
action, and (ii) Seller shall not settle or agree to any award or payment pursuant to condemnation,
eminent domain, or sale in lieu thereof without obtaining Purchaser’s prior written consent thereto
in each case.

ARTICLE 9.

DEFAULT AND REMEDIES

     9.1. Purchaser’s Default. If Purchaser fails to consummate this transaction for any
reason other than Seller’s default, failure of a condition to Purchaser’s obligation to close, or
the exercise by Purchaser of an express right of termination granted herein, Seller shall be
entitled, as its sole remedy hereunder, to terminate this Agreement and to receive and retain the
Earnest Money as full liquidated damages for such default of Purchaser, the parties hereto
acknowledging that it is impossible to estimate more precisely the damages which might be suffered
by Seller upon Purchaser’s default, and that said Earnest Money is a reasonable estimate of
Seller’s probable loss in the event of default by Purchaser. The retention by Seller of said
Earnest Money is intended not as a penalty, but as full liquidated damages. The right to retain
the Earnest Money as full liquidated damages is Seller’s sole and exclusive remedy in the event of
default hereunder by Purchaser, and Seller hereby waives and releases any right to (and hereby
covenants that it shall not) sue the Purchaser: (a) for specific performance of this Agreement, or
(b) to recover actual damages in excess of the Earnest Money. The foregoing liquidated damages
provision shall not apply to or limit Purchaser’s liability for Purchaser’s obligations under
Sections 3.1(b), 3.1(c), 3.4 and 11.1 of this Agreement or for Purchaser’s obligation to pay to
Seller all attorney’s fees and costs of Seller to enforce the provisions of this

32

 

Section 9.1. Purchaser hereby waives and releases any right to (and hereby covenants that it shall
not) sue Seller or seek or claim a refund of said Earnest Money (or any part thereof) on the
grounds it is unreasonable in amount and exceeds Seller’s actual damages or that its retention by
Seller constitutes a penalty and not agreed upon and reasonable liquidated damages.

     9.2. Seller’s Default. If Seller fails to perform any of its obligations under this
Agreement for any reason other than Purchaser’s default or the permitted termination of this
Agreement by Seller or Purchaser as expressly provided herein, Purchaser shall be entitled, as its
sole remedy, either (a) to receive the return of the Earnest Money from Escrow Agent and
reimbursement from Seller for the out-of-pocket costs and expenses actually incurred by Purchaser
in connection with the negotiation of and performance of this Agreement, Purchaser’s investigation
of the Property and any rate lock breakage fees in connection with Purchaser’s proposed financing
for the Property, including, without limitation, attorney’s fees and expenses, all in an amount not
to exceed $2,000,000.00, which return and reimbursement shall operate to terminate this Agreement
and release Seller from any and all liability hereunder, or (b) to enforce specific performance of
Seller’s obligation to execute and deliver the documents required to convey the Property to
Purchaser in accordance with this Agreement; it being specifically understood and agreed that the
remedy of specific performance shall not be available to enforce any other obligation of Seller
hereunder. Except as expressly set forth in the immediately preceding sentence and for Seller’s
indemnification obligations under Section 11.1 of this Agreement, Purchaser expressly waives its
rights to seek damages in the event of Seller’s pre-Closing default hereunder. Purchaser shall be
deemed to have elected to terminate this Agreement and to receive a return of the Earnest Money
from Escrow Agent if Purchaser fails to file suit for specific performance against Seller in a
court having jurisdiction in the county and state in which the Property is located, on or before
sixty (60) days following the date upon which the Closing was to have occurred.

ARTICLE 10.

ASSIGNMENT

     10.1. Assignment. Subject to the next following sentence, this Agreement and all
rights and obligations hereunder shall not be assignable by any party without the written consent
of the other. Notwithstanding the foregoing to the contrary, this Agreement and Purchaser’s rights
hereunder may be transferred and assigned to any entity controlling, controlled by or under common
control with Purchaser. Any assignee or transferee under any such assignment or transfer by
Purchaser as to which Seller’s written consent has been given or as to which Seller’s consent is
not required hereunder shall expressly assume all of Purchaser’s duties, liabilities and
obligations under this Agreement by written instrument delivered to Seller as a condition to the
effectiveness of such assignment or transfer. No assignment or transfer shall relieve the original
Purchaser of any duties or obligations hereunder, and the written assignment and assumption
instrument shall expressly so provide. For purposes of this Section 10.1, the term “control” shall
mean the direct or indirect ownership of at least fifty percent (50%) of the applicable entity or
the ability through ownership of shares or member or partnership interests, as the case may be, to
direct the actions and make management decisions on behalf of the applicable entity. Subject to
the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective legal representatives, successors and permitted assigns. This

33

 

Agreement is not intended and shall not be construed to create any rights in or to be enforceable
in any part by any other persons.

ARTICLE 11.

BROKERAGE COMMISSIONS

     11.1. Broker and Advisor. Upon the Closing, and only in the event the Closing occurs,
Seller shall pay a brokerage commission to CB Richard Ellis, Inc. (the “Broker”) pursuant
to a separate agreement between Seller and Broker. Broker is representing Seller in this
transaction. Also upon the Closing, and only in the event the Closing occurs, Seller shall pay an
advisory fee to Banc of America Securities, LLC (“Advisor”), an affiliate of one of the general
partners of Seller, pursuant to a separate agreement between Seller and Advisor. Seller shall and
does hereby indemnify and hold Purchaser harmless from and against any and all liability, loss,
cost, damage, and expense, including reasonable attorney’s fees actually incurred and costs of
litigation, Purchaser shall ever suffer or incur because of any claim by any agent, salesman, or
broker, whether or not meritorious, for any fee, commission or other compensation with regard to
this Agreement or the sale and purchase of the Property contemplated hereby, and arising out of any
acts or agreements of Seller, including any claims asserted by Broker and Advisor, but excluding
any claims asserted by The Bentley Forbes Group, LLC. Likewise, Purchaser shall and does hereby
indemnify and hold Seller free and harmless from and against any and all liability, loss, cost,
damage, and expense, including reasonable attorney’s fees actually incurred and costs of
litigation, Seller shall ever suffer or incur because of any claim by any agent, salesman, or
broker, whether or not meritorious, for any fee, commission or other compensation with respect to
this Agreement or the sale and purchase of the Property contemplated hereby and arising out of the
acts or agreements of Purchaser. This Section 11.1 shall survive the Closing until the expiration
of any applicable statute of limitations and shall survive any earlier termination of this
Agreement.

ARTICLE 12.

INDEMNIFICATION

     12.1. Indemnification by Seller. Following the Closing and subject to Sections 12.3
and 12.4, Seller shall indemnify and hold Purchaser, its affiliates, members and partners, and the
partners, shareholders, officers, directors, employees, representatives and agents of each of the
foregoing (collectively, “Purchaser-Related Entities”) harmless from and against any and
all costs, fees, expenses, damages, deficiencies, interest and penalties (including, without
limitation, reasonable attorney’s fees and disbursements) suffered or incurred by any such
indemnified party in connection with any and all losses, liabilities, claims, damages and expenses
(“Losses”), arising out of, or in any way relating to, (a) any breach of any representation
or warranty of Seller contained in this Agreement or in any Closing Document, and (b) any breach of
any covenant of Seller contained in this Agreement which survives the Closing or in any Closing
Document.

     12.2. Indemnification by Purchaser. Following the Closing and subject to Section
12.4, Purchaser shall indemnify and hold Seller, its affiliates, members and partners, and the
partners, shareholders, officers, directors, employees, representatives and agents of each of the

34

 

foregoing (collectively, “Seller-Related Entities”) harmless from any and all Losses
arising out of, or in any way relating to, (a) any breach of any representation or warranty by
Purchaser contained in this Agreement or in any Closing Document, and (b) any breach of any
covenant of Purchaser contained in this Agreement which survives the Closing or in any Closing
Documents.

     12.3. Limitations on Indemnification. Notwithstanding the foregoing provisions of
Section 12.1, (a) Seller shall not be required to indemnify Purchaser or any Purchaser Related
Entities under this Agreement unless the aggregate of all amounts for which an indemnity would
otherwise be payable by Seller under Section 12.1 above exceeds the Basket Limitation and, in such
event Seller shall be responsible for the entire amount of such Losses, (b) in no event shall the
liability of Seller with respect to the indemnification provided for in Section 12.1 above exceed
in the aggregate the Cap Limitation, (c) if prior to the Closing, Purchaser obtains actual written
knowledge of any inaccuracy or breach of any representation, warranty or covenant of Seller
contained in this Agreement (a “Purchaser Waived Breach”) and nonetheless proceeds with and
consummates the Closing, then Purchaser and any Purchaser-Related Entities shall be deemed to have
waived and forever renounced any right to assert a claim for indemnification under this Article 12
for, or any other claim or cause of action under this Agreement, at law or in equity on account of
any such Purchaser Waived Breach, and (d) notwithstanding anything herein to the contrary, the
Basket Limitation and the Cap Limitation shall not apply with respect to Losses suffered or
incurred as a result of breaches of any covenant or agreement of Seller set forth in Section 6.3,
Section 6.4, or Section 11.1 of this Agreement.

     12.4. Survival. The representations, warranties and covenants contained in this
Agreement and the Closing Documents shall survive for a period of one (1) year after the Closing
unless a longer or shorter survival period is expressly provided for in this Agreement, or unless
on or before the date that is one (1) year following the Closing, Purchaser or Seller, as the case
may be, delivers written notice to the other party of such alleged breach specifying with
reasonable detail the nature of such alleged breach and files an action with respect thereto within
sixty (60) days after the giving of such notice.

     12.5. Indemnification as Sole Remedy. If the Closing has occurred, the sole and
exclusive remedy available to a party in the event of a breach by the other party to this Agreement
of any representation, warranty, or covenant or other provision of this Agreement or any Closing
Document which survives the Closing shall be the indemnifications provided for under Section
3.1(c), Section 11.1, and this Article 12.

ARTICLE 13.

MISCELLANEOUS

     13.1. Notices. Wherever any notice or other communication is required or permitted
hereunder, such notice or other communication shall be in writing and shall be delivered by
overnight courier, hand, facsimile transmission, or sent by U.S. registered or certified mail,
return receipt requested, postage prepaid, to the addresses or facsimile numbers set out below or
at such other addresses as are specified by written notice delivered in accordance herewith:

	 	 	 
	PURCHASER:	 	c/o BentleyForbes

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	 	 	10250 Constellation Boulevard

	 	 	Suite 2300

	 	 	Los Angeles, California 90067

	 	 	Attention: David W. Cobb and C. Shane Cates

	 	 	Facsimile: (310) 282-8585

	 	 	 

	with a copy to:
	 	DLA Piper Rudnick Gray Cary US LLP

	 	 	550 South Hope Street

	 	 	Suite 2300

	 	 	Los Angeles, California 90071

	 	 	Attention: Richard C. Mendelson, Esq.

	 	 	Facsimile: (213) 330-7545

	 	 	 

	SELLER:
	 	CSC Associates, L.P.

	 	 	c/o Cousins Properties Incorporated

	 	 	2500 Windy Ridge Parkway

	 	 	Suite 1600

	 	 	Atlanta, Georgia 30339-5683

	 	 	Attention: Corporate Secretary

	 	 	Facsimile: (770) 857-2360

	 	 	 

	with a copy to:
	 	C & S Premises — SPE, Inc.

	 	 	c/o Bank of America, N.A.

	 	 	525 North Tryon Street

	 	 	NC1-023-04-03

	 	 	Charlotte, North Carolina 28255

	 	 	Attention: Robert C. Vail

	 	 	Facsimile: (704) 387-0505

	 	 	 

	with a copy to:
	 	Troutman Sanders LLP

	 	 	Suite 5200

	 	 	600 Peachtree Street, N.E.

	 	 	Atlanta, Georgia 30308-2216

	 	 	Attn: John W. Griffin

	 	 	Facsimile: (404) 962-6577

	 	 	 

	with a copy to:
	 	Bank of America, N.A.

	 	 	FL1-400-16-12

	 	 	101 East Kennedy Boulevard, 16th Floor (33602)

	 	 	P.O. Box 31590

	 	 	Tampa, Florida 33631-3590

	 	 	Attention: Claire Bailey Carraway

	 	 	Facsimile: (704) 409-0916

Any notice or other communication (i) mailed as hereinabove provided shall be deemed effectively
given or received on the third (3rd) business day following the postmark date of such

36

 

notice or
other communication, (ii) sent by overnight courier or by hand shall be deemed effectively given or
received upon receipt, and (iii) sent by facsimile transmission shall be deemed effectively given
or received on the day of such electronic transmission of such notice and confirmation of such
transmission if transmitted and confirmed prior to 5:00 p.m. local Atlanta, Georgia time on a
Business Day and otherwise shall be deemed effectively given or received on the first Business Day
after the day of transmission of such notice and confirmation of such transmission.

     13.2 Possession. Full and exclusive possession of the Property, subject to the
Permitted Exceptions and the rights of the tenants under the Leases, shall be delivered by Seller
to Purchaser on the Closing Date.

     13.3 Time Periods. If the time period by which any right, option, or election
provided under this Agreement must be exercised, or by which any act required hereunder must be
performed, or by which the Closing must be held, expires on a Saturday, Sunday, or holiday, then
such time period shall be automatically extended through the close of business on the next
regularly scheduled Business Day.

     13.4 Publicity. The parties agree that, prior to Closing, except as may be required
by law, no party shall, with respect to this Agreement and the transactions contemplated hereby,
make any public announcements or issue press releases regarding this Agreement or the transactions
contemplated hereby to any third party without the prior written consent of the other party hereto.
Seller and Purchaser shall each have the right to approve the press release of the other party
issued in connection with the Closing, which approval shall not be unreasonably withheld. No party
shall record this Agreement or any notice hereof.

     13.5 Discharge of Obligations. The acceptance by Purchaser of Seller’s Limited
Warranty Deed hereunder shall be deemed to constitute the full performance and discharge of each
and every warranty and representation made by Seller and Purchaser herein and every agreement and
obligation on the part of Seller and Purchaser to be performed pursuant to the terms of this
Agreement, except those warranties, representations, covenants and agreements which are
specifically provided in this Agreement to survive Closing.

     13.6 Severability. This Agreement is intended to be performed in accordance with, and
only to the extent permitted by, all applicable laws, ordinances, rules and regulations. If any
provision of this Agreement, or the application thereof to any person or circumstance, shall, for
any reason and to any extent be invalid or unenforceable, the remainder of this Agreement and the
application of such provision to other persons or circumstances shall not be affected thereby but
rather shall be enforced to the greatest extent permitted by law.

     13.7 Construction. This Agreement shall not be construed more strictly against one
party than against the other merely by virtue of the fact that this Agreement may have been
prepared by counsel for one of the parties, it being mutually acknowledged and agreed that Seller
and Purchaser and their respective counsel have contributed substantially and materially to the
preparation and negotiation of this Agreement. Accordingly, the normal rule of construction to

37

 

the
effect that any ambiguities are to be resolved against the drafting party shall not be employed in
the interpretation of this Agreement or any exhibits or amendments hereto.

     13.8 Sale Notification Letters. Promptly following the Closing, Purchaser shall
deliver the Tenant Notices of Sale to each of the respective tenants under the Leases and the Other
Notices of Sale to each service provider and leasing agent, the obligations under whose respective
Service Contracts and Commission Agreements Purchaser has assumed at Closing. The provisions of
this Section shall survive the Closing.

     13.9 Access to Records Following Closing. Purchaser agrees that for a period of two
(2) years following the Closing, Seller shall have the right during regular business hours, on five
(5) days’ written notice to Purchaser, to examine and review at Purchaser’s office (or, at
Purchaser’s election, at the Property), the books and records relating to the ownership and
operation of the Property which were delivered by Seller to Purchaser at the Closing. Likewise,
Seller agrees that for a period of two (2) years following the Closing, Purchaser shall have the
right during regular business hours, on five (5) days’ written notice to Seller, to examine and
review at Seller’s office, all books, records and files, if any, retained by Seller relating to the
ownership and operation of the Property by Seller prior to the Closing. The provisions of this
Section shall survive the Closing for a period of two (2) years after the Closing Date.

     13.10 Submission to Jurisdiction. Each of Purchaser and Seller irrevocably submits to
the jurisdiction of (a) the Superior Court of Fulton County, Georgia located in Atlanta, Georgia,
and (b) the United States District Court for the Northern District of Georgia for the purposes of
any suit, action or other proceeding arising out of this Agreement or any transaction contemplated
hereby. Each of Purchaser and Seller further agrees that service of any process, summons, notice
or document by U.S. registered mail to such party’s respective address set forth above shall be
effective service of process for any action, suit or proceeding in Georgia with respect to any
matters to which it has submitted to jurisdiction as set forth above in the immediately preceding
sentence. Each of Purchaser and Seller irrevocably and unconditionally waives trial by jury and
irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or
proceeding arising out of this Agreement or the transactions contemplated hereby in (a) the
Superior Court of Fulton County, Georgia located in Atlanta, Georgia, and (b) the United States
District Court for the Northern District of Georgia, and hereby further irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that any such action,
suit or proceeding brought in any such court has been brought in an inconvenient forum.

     13.11 Entire Agreement. Except as provided in this Section 13.11 and except for that
certain Advisory Fee Agreement of even date herewith by and among Seller, Purchaser and Avalon
Capital Partners, LLC, this Agreement contains the entire agreement of the parties hereto, and no
representations, inducements, promises, or agreements, oral or otherwise, between the parties not
embodied herein shall be of any force or effect. The terms and provisions of that certain Access
and Confidentiality Agreement dated July 12, 2006, by and between Seller and Purchaser are hereby
incorporated herein and shall remain in full force and effect except that, to
the extent of any conflict or inconsistency between the terms of said Access and Confidentiality
Agreement and this Agreement, the terms of this Agreement shall govern and control.

38

 

     13.12 General Provisions. No failure of either party to exercise any power given
hereunder or to insist upon strict compliance with any obligation specified herein, and no custom
or practice at variance with the terms hereof, shall constitute a waiver of either party’s right to
demand exact compliance with the terms hereof. Any amendment to this Agreement shall not be
binding upon Seller or Purchaser unless such amendment is in writing and executed by both Seller
and Purchaser. Subject to the provisions of Section 10.1 hereof, the provisions of this Agreement
shall inure to the benefit of and be binding upon the parties hereto and their respective heirs,
legal representatives, successors, and permitted assigns. Time is of the essence in this
Agreement. The headings inserted at the beginning of each paragraph are for convenience only, and
do not add to or subtract from the meaning of the contents of each paragraph. This Agreement shall
be construed and interpreted under the laws of the State of Georgia. Except as otherwise provided
herein, all rights, powers, and privileges conferred hereunder upon the parties shall be cumulative
but not restrictive to those given by law. All personal pronouns used in this Agreement, whether
used in the masculine, feminine, or neuter gender shall include all genders, and all references
herein to the singular shall include the plural and vice versa.

     13.13 Attorney’s Fees. If Purchaser or Seller brings an action at law or equity
against the other in order to enforce the provisions of this Agreement or as a result of an alleged
default under this Agreement, the prevailing party in such action shall be entitled to recover
court costs and reasonable attorney’s fees actually incurred from the other.

     13.14 Counterparts. This Agreement may be executed in one or more counterparts, each
of which when taken together shall constitute one and the same original. To facilitate the
execution and delivery of this Agreement, the parties may execute and exchange counterparts of the
signature pages by facsimile, and the signature page of either party to any counterpart may be
appended to any other counterpart.

     13.15 Effective Agreement. The submission of this Agreement for examination is not
intended to nor shall constitute an offer to sell, or a reservation of, or option or proposal of
any kind for the purchase of the Property. In no event shall any draft of this Agreement create
any obligation or liability, it being understood that this Agreement shall be effective and binding
only when a counterpart of this Agreement has been executed and delivered by each party hereto.

     13.16 1031 Exchange. Either party hereto may elect to seek to structure its purchase
or sale, as applicable, of the Property as a tax-deferred exchange pursuant to Section 1031 of the
Internal Revenue Code of 1986, as amended, and the treasury regulations promulgated thereunder
(“1031 Exchange”), subject to the limitations set forth herein. Each party shall
reasonably cooperate with the other, at no material cost to such cooperating party, in connection
with the same, including, but not limited to, executing and delivering a consent to an assignment
to a qualified exchange intermediary of rights (but not obligations) under this Agreement; provided
that (i) neither party shall be required to incur any additional liabilities or financial
obligations as a consequence of such cooperation, (ii) neither party shall be relieved of its
obligations, representations or warranties under this Agreement, and (iii) such 1031 Exchange shall not delay
the Closing. Additionally, in connection with any 1031 Exchange, neither party

39

 

shall be required
to acquire title to any other property. Any risk that such an exchange or conveyance might not
qualify as a tax-deferred transaction shall also be borne solely by the party seeking to effectuate
the same, and each party acknowledges that the other has not provided, and will not provide, any
tax, accounting, legal or other advice regarding the efficacy of any attempt to structure the
transaction as a 1031 Exchange. Each party hereby agrees to save, protect, defend, indemnify and
hold the other harmless from any and all losses, costs, claims, liabilities, penalties and
expenses, including, without limitation, reasonable attorney’s fees, fees of accountants and other
experts, and costs of any judicial or administrative proceeding or alternative dispute resolution
to which the other may be exposed, due to any attempt to structure the transaction as a 1031
Exchange. The provisions of this Section 13.16 shall survive the Closing until the expiration of
any applicable statute of limitations.

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

	 	 	 	 	 
	 	SELLER:

	 
	 	CSC ASSOCIATES, L.P.,

a Georgia limited partnership

	 
	 	By:  	Cousins Properties Incorporated,

a Georgia corporation, general partner

	 
	 	By:  	                   /s/ Craig B. Jones
 	 
	 	 	Name:  	Craig B. Jones 	 
	 	 	Title:  	Executive Vice President 	 
	 

	 	 	 	 	 
	 	By:  	C & S Premises — SPE, Inc., a North

Carolina corporation, general partner

	 
	 	By:  	               /s/ Robert C. Vail
 	 
	 	 	Name:  	Robert C. Vail 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	PURCHASER:

	 	BENTLEYFORBES ACQUISITIONS, LLC,

a Delaware limited liability company

	 
	 	By:  	                         /s/ David W. Cobb
 	 
	 	 	Name:  	David W. Cobb 	 
	 	 	Title:  	President and CEO 	 
	 

40

 

FIRST AMENDMENT TO

PURCHASE AND SALE AGREEMENT

     This First Amendment to Purchase and Sale Agreement (the “First Amendment”) is made and
entered into as of the 3rd day of August, 2006, between CSC ASSOCIATES, L.P., a Georgia
limited partnership (“Seller”) and BENTLEYFORBES ACQUISITIONS, LLC, a Delaware limited liability
company (“Purchaser”).

W I T N E S S E T H:

     WHEREAS, Seller and Purchaser entered into that certain Purchase and Sale Agreement dated July
17, 2006 (the “Agreement”), relating to certain real property located at 600 Peachtree Street,
N.E., Atlanta, Fulton County, Georgia, more particularly described in the Agreement; and

     WHEREAS, Seller and Purchaser desire to modify and amend the Agreement to extend the “Due
Diligence Date” under the Agreement.

     NOW, THEREFORE, for and in consideration of the premises, the sum of Ten Dollars ($10.00) in
hand paid by each of the parties hereto to the other, and other good and valuable consideration,
Seller and Purchaser hereby agree as follows:

     1. Extension of Due Diligence Date. The date of “August 3, 2006” set forth in the
first sentence of Section 3.1(d) of the Agreement is hereby deleted and the date of “August ___,
2006” is hereby substituted in lieu thereof.

     2. Ratification. Except as modified herein, the Agreement and all of the terms and
provisions thereof shall remain unmodified and in full force and effect and are hereby ratified and
confirmed.

     3. Counterparts. This First Amendment may be executed in one or more counterparts,
each of which when taken together shall constitute one and the same original. To facilitate the
execution and delivery of this First Amendment, the parties may execute and exchange counterparts
of the signature pages by facsimile, and the signature page of either party to any counterpart may
be appended to any other counterpart.

 

 

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

	 	 	 	 	 
	 	“SELLER”:

CSC ASSOCIATES, L.P.,

a Georgia limited partnership

 	 
	 	By:  	Cousins Properties Incorporated,
 	 
	 	 	a Georgia corporation, general partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                      /s/ Craig B. Jones
 	 
	 	 	Name:  	Craig B. Jones 	 
	 	 	Title:  	E.V.P. 	 
	 

[Signatures continued on following page]

2

 

[Signatures continued from previous page]

	 	 	 	 	 
	 	“PURCHASER”:

BENTLEYFORBES ACQUISITIONS, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ David W. Cobb
 	 
	 	 	Name:  	David W. Cobb 	 
	 	 	Title:  	President 	 
	 

3

 

REINSTATEMENT AND SECOND AMENDMENT TO

PURCHASE AND SALE AGREEMENT

     THIS REINSTATEMENT AND SECOND AMENDMENT TO PURCHASE AND SALE AGREEMENT (this “Amendment”) is
made as of August 11, 2006 by and between CSC ASSOCIATES, L.P., a Georgia limited partnership
(“Seller”), and BENTLEYFORBES ACQUISITIONS, LLC, a Delaware limited liability company
(“Purchaser”).

RECITALS

     A. Seller and Purchaser entered into that certain Purchase and Sale Agreement dated as of July
17, 2006, as amended by that certain First Amendment to Purchase and Sale Agreement dated as of
August 3, 2006 (as so amended, the “Purchase Agreement”), with respect to that certain real
property located in Fulton County, State of Georgia and more particularly described in the Purchase
Agreement (the “Property”). All capitalized terms used but not otherwise defined herein shall have
the meanings ascribed to them in the Purchase Agreement.

     B. Pursuant to that certain letter dated as of August 11, 2006 from Purchaser to Seller (the
“Termination Notice”), the Purchase Agreement was terminated.

     C. The parties hereto desire to reinstate and amend the Purchase Agreement as set forth
herein.

AGREEMENT

     In consideration of the mutual covenants herein contained, the sum of Ten Dollars paid by each
party to the other, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Seller and Purchaser agree as follows:

     1. Reinstatement. The Purchase Agreement is hereby reinstated and the Termination
Notice shall be of no further force or effect.

     2. Escrow Agent. Seller and Purchaser agree that all references in the Purchase
Agreement to “Escrow Agent” shall mean Fidelity National Title Insurance Company, having its office
at 601 South Figueroa Street, Suite 2130, Los Angeles, California 90017, Attention: Linda Hamilton,
Telephone: (213) 689.9301. As soon as practical after the date hereof, Seller and Purchaser shall
(i) re-execute and deliver to each other original counterparts of the Escrow Agreement, provided
that the same shall be revised to name Fidelity National Title Insurance Company as the Escrow
Agent thereunder, (ii) cause Fidelity National Title Insurance Company to execute and deliver to
each of Seller and Purchaser original counterparts of the Escrow Agreement, and (iii) instruct
First American Title Insurance Company in writing to wire transfer the Earnest Money to Fidelity
National Title Insurance Company pursuant to wire transfer instructions to be provided by Fidelity
National Title Insurance Company. At such time as the revised Escrow Agreement has been duly
executed and delivered by each of the parties thereto and the Earnest Money has been transferred as
described above, the original Escrow

 

 

Agreement shall terminate and be of no further force or effect, except that each of Seller and
Purchaser shall continue to be obligated to pay one-half of the fee, if any, charged by First
American Title Insurance Company for services rendered under the original Escrow Agreement.

     3. Title Company; Reinsurance. Seller and Purchaser agree that all references in the
Purchase Agreement to “Title Company” shall mean Fidelity National Title Insurance Company with
First American Title Insurance Company as fifty percent (50%) co-insurer. Exhibit “K” of the
Purchase Agreement is hereby deleted in its entirety and replaced with Exhibit “K” attached hereto
and made a part hereof by this reference.

     4. Closing Date. Section 2.4 of the Purchase Agreement is hereby amended to provide
that the Closing Date shall be September 28, 2006. Neither Seller nor Purchaser shall have the
right to extend the Closing Date under Section 2.4 of the Purchase Agreement.

     5. Allocation of Escrow Closing Fee. Notwithstanding anything contained in Section
6.3 of the Purchase Agreement to the contrary, Seller’s share of the escrow closing fee charged by
the Title Company shall in no event exceed $1,250.00, and Purchaser hereby agrees that if the
escrow closing fee charged by the Title Company shall exceed $2,500.00, Purchaser shall be
responsible for the payment of the entire amount of such fee in excess of $2,500.00.

     6. Net Operating Income Holdback Agreement. Notwithstanding anything in the Purchase
Agreement to the contrary, at Closing, Seller and Purchaser shall (i) execute and deliver to each
other original counterparts of, and shall use their reasonable efforts to cause Fidelity National
Title Company to execute and deliver to each of Seller and Purchaser duly executed original
counterparts of, a tri-party escrow agreement among Seller, Purchaser and Fidelity National Title
Company (the “Holdback Agreement”), which Holdback Agreement shall be in the form of Exhibit “X”
attached hereto and made a part hereof by this reference, provided, however that Seller and
Purchaser shall incorporate such additional terms as may be requested by Fidelity National Title
Company and as are customarily required by title insurance companies or affiliates thereof serving
as escrow agents under escrow agreements similar to the Holdback Agreement, and (ii) instruct
Escrow Agent, in writing, to retain the Holdback Amount (as defined in the Holdback Agreement) from
the funds which would otherwise have been delivered to Seller at Closing and deliver such Holdback
Amount to Fidelity National Title Company under the Holdback Agreement.

     7. Management Agreement Form Approved. Cousins (by virtue of the execution of this
Amendment by Cousins in its capacity as general partner of Seller) and Purchaser acknowledge that
the form of Management Agreement circulated by counsel for Cousins to Messrs Cobb, Jones and Shiner
and Ms. Hanna by E-mail on August 8, 2006 has been approved by Cousins and Purchaser, except that
Purchaser may elect, at Purchaser’s option, to cause a management company affiliated with The
BentleyForbes Group, LLC to enter into the Management Agreement as “Owner” thereunder (with
appropriate changes in the form of the Management Agreement to reflect the status of such
management company), in which case Purchaser shall execute a Consent and Joinder to the Management
Agreement pursuant to which Purchaser, as owner of the Property, shall consent to the Management
Agreement and agree to be jointly and severally liable for all of the obligations and undertakings
of the “Owner” under the Management Agreement and shall agree to cause any successor owner of the
Property during the

2

 

term of the Management Agreement to expressly assume in writing the obligations of Purchaser
under such Consent and Joinder.

     8. Miscellaneous. Except to the extent expressly modified by this Amendment, the
Purchase Agreement is ratified and remains in full force and effect. To the extent of any
inconsistency between this Amendment and the Purchase Agreement, the terms and conditions of this
Amendment shall control. This Amendment may be executed in multiple counterparts, all of which,
taken together, shall constitute one document. This Amendment shall be deemed effective against a
party upon receipt by the other party (or its counsel) of a counterpart executed by facsimile.

[Next page is signature page]

3

 

     IN WITNESS WHEREOF, Seller and Purchaser have executed this Amendment as of the date first set
forth above.

	 	 	 	 	 
	SELLER: 	CSC ASSOCIATES, L.P.,

a Georgia limited partnership

 	 
	 	By:  	Cousins Properties Incorporated,
 	 
	 	 	a Georgia corporation, 	 
	 	 	its general partner 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                               /s/ Craig B. Jones
 	 
	 	 	Name:  	Craig B. Jones 	 
	 	 	Title:  	E.V.P. 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                      C & S Premises -- SPE, Inc.,
 	 
	 	 	a North Carolina corporation, 	 
	 	 	its general partner 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                               /s/ Robert C. Vail
 	 
	 	 	Name:  	Robert C. Vail 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 
	PURCHASER: 	BENTLEYFORBES ACQUISITIONS, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ David W. Cobb
 	 
	 	 	Name:  	David W. Cobb 	 
	 	 	Title:  	President & CEO 	 
	 

4exv4w1

 

Exhibit 4.1

DIODES INCORPORATED

Certificate No. R-

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (THE “DEPOSITARY”, WHICH TERM INCLUDES ANY SUCCESSOR
DEPOSITARY FOR THE CERTIFICATES) TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREIN IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     THIS NOTE HAS BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT, FOR PURPOSES OF SECTIONS 1272, 1273, AND
1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. UPON REQUEST OF THE HOLDER OF THIS NOTE,
THE COMPANY WILL PROMPTLY MAKE AVAILABLE TO THE HOLDER OF THIS NOTE, (I) THE ISSUE PRICE OF THE
NOTE, (II) THE AMOUNT OF ORIGINAL ISSUE DISCOUNT IN RESPECT THEREOF, (III) THE ISSUE DATE OF THE
NOTE, (IV) THE COMPARABLE YIELD OF THE NOTE, AND (V) THE PROJECTED PAYMENT SCHEDULE OF THE NOTE, IN
EACH CASE AS DETERMINED UNDER THE ORIGINAL ISSUE DISCOUNT RULES OF THE U.S. INTERNAL REVENUE CODE.
PLEASE CONTACT DIODES INCORPORATED, ATTN: CHIEF FINANCIAL OFFICER, 3050 EAST HILLCREST DRIVE,
WESTLAKE VILLAGE, CALIFORNIA 91362

     % Convertible Senior Note due 2026

CUSIP No.                     

     Diodes
Incorporated, a Delaware corporation (the “Company”), for value received, hereby
promises to pay to Cede & Co., or its registered assigns, the principal sum of
dollars ($ ) on October 1, 2026 and to pay interest thereon, as provided on the reverse hereof,
until the principal and any unpaid and accrued interest are paid or duly provided for.

     Interest Payment Dates: April 1 and October 1, with the first payment to be made on April 1,
2007.

     Record Dates: March 15 and September 15.

     The provisions on the back of this certificate are incorporated as if set forth on the face
hereof.

[Remainder of page intentionally left blank]

1

 

IN WITNESS WHEREOF, Diodes Incorporated has caused this instrument to be duly signed.

	 	 	 	 	 
	 	DIODES INCORPORATED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated:

CERTIFICATE OF AUTHENTICATION

This is one of the Securities referred to in the within-mentioned Indenture.

Union Bank of California, N.A., as Authenticating Agent

By: Union Bank of California, N.A.

			
	By:	 	
 
Authorized Signatory

Dated:

 

 

[REVERSE OF SECURITY]

DIODES INCORPORATED

     % Convertible Senior Note due 2026

     1. Interest.
Diodes Incorporated, a Delaware corporation (the
“Company”), promises to pay
interest on the principal amount of this Security at the rate per annum shown above. The Company
will pay interest, payable semi-annually in arrears, on April 1 and October 1 of each year, with
the first payment to be made on April 1, 2007. Interest on the Securities will accrue on the
principal amount from, and including, the most recent date to which interest has been paid or
provided for or, if no interest has been paid, from, and including, October      , 2006, in each case
to, but excluding, the next interest payment date or Maturity Date, as the case may be. Interest
will be computed on the basis of a 360-day year of twelve 30-day months.

     In addition, if the average Contingent Interest Trading Price of a Security for the five (5)
consecutive trading day period (the “Contingent Interest
Measurement Period”) immediately preceding
the first day of any six (6) month period (each a “Contingent Interest Period”) from and including
an interest payment date to but excluding the next interest payment date, commencing with the six
(6) month period beginning October 1, 2011, is equal to or greater than one hundred and twenty
percent (120%) of the principal amount of such Security, then the Company shall pay contingent
interest (“Contingent Interest”) to the Holders.

     The amount of Contingent Interest payable per $1,000 principal amount of Securities in respect
of any Contingent Interest Period, if applicable, shall be equal to      % (     % per year payable
semi-annually) of the average Contingent Interest Trading Price per $1,000 principal amount of the
Securities during the Contingent Interest Measurement Period. Contingent Interest, if any, shall
accrue from the first day of the applicable Contingent Interest Period through, but excluding, the
interest payment date at the end of such Contingent Interest Period, and Contingent Interest shall
be payable to Holders in the same manner as regular cash interest. Regular cash interest shall
continue to accrue at the per annum rate of      % on the principal amount of the Securities whether
or not Contingent Interest is paid.

     The Company shall instruct the Bid Solicitation Agent to determine the daily Contingent
Interest Trading Prices of the Securities during each Contingent Interest Measurement Period during
which any Securities are outstanding. Upon determining that the Securities shall begin to accrue
Contingent Interest during a Contingent Interest Period, the Company shall, on or before the start
of such Contingent Interest Period, publicly announce, through a reputable national newswire
service, and publish on the Company’s website, the fact that Contingent Interest has become payable
and the amount of such Contingent Interest payable per $1,000 principal amount of Securities.

     The
“Contingent Interest Trading Price” of a Security on any trading day means the average
secondary market bid quotations obtained by the Bid Solicitation Agent for five million dollars
($5,000,000) principal amount of Securities at approximately 4:00 p.m., New York City time, on such
trading day from three (3) independent nationally recognized securities

 

 

dealers selected by the
Company; provided, however, that if the Bid Solicitation Agent
reasonably determines that it can obtain only two (2) such bids, then the average of such two
(2) bids shall instead be used, and if the Bid Solicitation Agent reasonably determines that it can
obtain only one (1) such bid, then such one (1) bid shall be used; provided further, that if the
Bid Solicitation Agent reasonably determines that it cannot obtain at least one (1) such bid, then
the Contingent Interest Trading Price per $1,000 principal amount of the notes shall be determined
by a nationally recognized securities dealer retained by the Company for such purpose.

     2. Maturity. The Securities will mature on October 1, 2026.

     3. Method of Payment. Except as provided in the Indenture (as defined below), the Company
will pay interest on the Securities to the persons who are Holders of record of Securities at the
close of business on the record date set forth on the face of this Security next preceding the
applicable interest payment date; provided, however, that on the Maturity Date, the Company will
pay interest on the Securities to the Holder to whom the Company pays the principal amount.
Holders must surrender Securities to a Paying Agent to collect the principal amount, Redemption
Price, Option Purchase Price or Fundamental Change Repurchase Price of the Securities, plus, if
applicable, accrued and unpaid interest, if any, payable as herein provided upon Redemption,
Purchase at Holder’s Option or Repurchase Upon Fundamental Change, as the case may be. The Company
will pay, in money of the United States that at the time of payment is legal tender for payment of
public and private debts, all amounts due in cash with respect to the Securities, which amounts
shall be paid (A) in the case this Security is in global form, by wire transfer of immediately
available funds to the account designated by the Depositary or its nominee; (B) in the case this
Security is held, other than in global form, by a Holder of more than five million dollars
($5,000,000) in aggregate principal amount of Securities, by wire transfer of immediately available
funds to the account within the United States of America specified by such Holder or, if such
Holder does not specify an account, by mailing a check to the address of such Holder set forth in
the register of the Registrar; and (C) in the case this Security is held, other than in global
form, by a Holder of five million dollars ($5,000,000) or less in aggregate principal amount of
Securities, by mailing a check to the address of such Holder set forth in the register of the
Registrar. If a payment date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue on that
payment for the additional period of time.

     4. Paying Agent, Registrar, Conversion Agent. Initially, Union Bank of California, N.A. (the
“Trustee”) will act as Paying Agent, Registrar and Conversion Agent. The Company may change any
Paying Agent, Registrar, Bid Solicitation Agent or Conversion Agent without notice.

     5. Indenture. The Company issued the Securities under an Indenture dated as of October ___,
2006 (the “Indenture”) between the Company and the Trustee. The terms of the Securities include
those stated in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the
“TIA”) as amended and in effect from time
to time. The Securities are subject to all such terms, and Holders are referred to the Indenture
and the TIA for a statement of such terms. The Securities are general unsecured senior subordinate
obligations of the Company limited to $200,000,000

 

 

aggregate principal amount ($230,000,000 if the
Underwriters have elected to exercise in full the
Option to purchase up to an additional $30,000,000 aggregate principal amount of the
Securities), except as otherwise provided in the Indenture (except for Securities issued in
substitution for destroyed, mutilated, lost or stolen Securities). Terms used herein without
definition and which are defined in the Indenture have the meanings assigned to them in the
Indenture.

     6. Optional Redemption. The Company shall have the right, at the Company’s option, at any
time, and from time to time, on a Redemption Date on or after October 1, 2011, to redeem all or any
part of the Securities at a price payable in cash equal to one hundred percent (100%) of the
principal amount of the Securities to be redeemed, plus accrued and unpaid interest, if any, to,
but excluding, the Redemption Date, provided, however, that in no event shall any Redemption Date
be a Legal Holiday; provided, further, that if such Redemption Date is after the close of business
on a record date for the payment of an installment of interest and on or before the related
interest payment date, then the accrued and unpaid interest, if any, to, but excluding, such
interest payment date shall be paid on such interest payment date to the Holder of record of such
Securities (without any surrender of such Securities by such Holder) at the close of business on
such record date, and the Holder surrendering such Securities for Redemption shall receive only the
Redemption Price and shall not be entitled to any such interest unless such Holder was also the
Holder of record of such Securities at the close of business on such record date. The Company
shall make at least ten (10) semi-annual interest payments with respect to the Securities prior to
redeeming any Securities pursuant to this paragraph (including the interest payments on April 1,
2007 and October 1, 2011).

     7. Notice of Redemption. Notice of Redemption will be mailed at least thirty (30) calendar
days but not more than sixty (60) calendar days before the Redemption Date to each Holder of
Securities to be redeemed at its address appearing in the security register. Securities in
denominations larger than $1,000 principal amount may be redeemed in part but only in integral
multiples of $1,000 principal amount.

     8. Purchase by the Company at the Option of the Holder. Subject to the terms and conditions
of the Indenture, the Company shall become obligated to purchase, at the option of each Holder, the
Securities held by such Holder on October 1, 2011, October 1, 2016 and October 1, 2021 (each, an
“Option Purchase Date”) at an Option Purchase Price, payable in cash, equal to one hundred percent
(100%) of the principal amount of the Securities to be purchased, plus accrued and unpaid interest,
if any, to, but excluding, the applicable Option Purchase Date, upon delivery of a Purchase Notice
containing the information set forth in the Indenture, at any time from the opening of business on
the date that is twenty (20) Business Days prior to the applicable Option Purchase Date until the
close of business on the Business Day immediately preceding the applicable Option Purchase Date and
upon delivery of the Securities to the Paying Agent by the Holder as set forth in the Indenture;
provided, that if such Option Purchase Date is after the close of business on a record date for the
payment of an installment of interest and on or before the related interest payment date, then such
accrued and unpaid interest shall be paid on such interest payment date to the Holder of record of
such Securities (without any surrender of such Securities by such Holder) at the close of business
on such record date and the Holder surrendering such Securities for purchase shall receive only the
Option Purchase

 

 

Price and shall not be entitled to any such interest unless such Holder was also
the Holder of record of such Securities at the close of business on such record date.

     9. Repurchase at Option of Holder Upon a Fundamental Change. Subject to the terms and
conditions of the Indenture, in the event of a Fundamental Change, each Holder of the Securities
shall have the right, at the Holder’s option, to require the Company to repurchase such Holder’s
Securities including any portion thereof which is $1,000 in principal amount or any integral
multiple thereof on a date selected by the Company (the “Fundamental Change Repurchase Date”),
which date is no later than thirty five (35) days, nor earlier than twenty (20) days, after the
date on which notice of such Fundamental Change is mailed in accordance with the Indenture, at a
price payable in cash equal to one hundred percent (100%) of the principal amount of such Security,
plus accrued and unpaid interest to, but excluding, the Fundamental Change Repurchase Date;
provided, that if such Fundamental Change Repurchase Date is after the close of business a record
date for the payment of an installment of interest and on or before the related interest payment
date, then the accrued and unpaid interest, if any, to, but excluding, such interest payment date
shall be paid on such interest payment date to the Holder of record of such Securities (without any
surrender of such Securities by such Holder) at the close of business on such record date, and the
Holder surrendering such Securities for repurchase shall receive only the Fundamental Change
Repurchase Price and shall not be entitled to any such interest unless such Holder was also the
Holder of record of such Securities at the close of business on such record date.

     10. Conversion.

     Conversion Based on Closing Sale Price of Common Stock. Subject to earlier Redemption,
Purchase at Holder’s Option or Repurchase Upon Fundamental Change, Holders may surrender Securities
in integral multiples of $1,000 principal amount for conversion into cash or, at the Company’s
option, cash and shares of Common Stock on any Business Day of a calendar quarter after the
calendar quarter ending December 31, 2006, if the Closing Sale Price for each of twenty (20) or
more Trading Days in a period of thirty (30) consecutive Trading Days ending on the last Trading
Day of the immediately preceding calendar quarter exceeds one hundred and twenty percent (120%) of
the Conversion Price in effect on the last Trading Day of the immediately preceding calendar
quarter. Solely for purposes of determining whether the Securities shall have become convertible
pursuant to this paragraph, the Board of Directors shall, in its good faith determination, which
shall be described in a Board Resolution, make appropriate adjustments to the Closing Sale Prices
and/or such Conversion Price used to determine whether the Securities shall have become convertible
pursuant to this paragraph to account for any adjustments to the Conversion Rate which shall have
become effective, or any event requiring an adjustment to the Conversion Rate where the Ex Date of
such event occurs, during the period of thirty (30) consecutive Trading Days ending on the last
Trading Day of the immediately preceding calendar quarter.

     Conversion Upon Satisfaction of Trading Price Condition. Subject to earlier Redemption,
Purchase at Holder’s Option or Repurchase Upon Fundamental Change, Holders may surrender Securities
in integral multiples of $1,000 principal amount for conversion into cash or, at the Company’s
option, cash and shares of Common Stock during the five (5) consecutive Business Days immediately
after any five (5) consecutive Trading Day period (such

 

 

five (5) consecutive Trading Day period,
the “Note Measurement Period”) in which the average Trading Price per $1,000 principal amount of
the Securities was equal to or less than ninety eight percent (98%) of the average Conversion Value
(as defined below) during the Note
Measurement Period (such condition, the “Trading Price Condition”). The Bid Solicitation
Agent shall not have any obligation to determine the Trading Price unless the Company has requested
such determination in writing, and the Company shall have no obligation to make such request unless
a Holder provides the Company with reasonable evidence that the Trading Price per $1,000 principal
amount of the Securities would be equal to or less than ninety eight percent (98%) of the
Conversion Value. Upon receipt of such evidence, the Company shall instruct the Bid Solicitation
Agent in writing to determine the Trading Price per $1,000 principal amount of the Securities for
each of the five (5) successive Trading Days immediately after the Company receives such evidence
and on each Trading Day thereafter until the first Trading Day on which the Trading Price Condition
is no longer satisfied. For purposes of this paragraph, the “Conversion Value” per $1,000
principal amount of Securities, on a given Trading Day, means the product of the Closing Sale Price
on such Trading Day and the Conversion Rate in effect on such Trading Day.

     Conversion Based on Redemption. A Security, or portion of a Security, which has been called
for Redemption pursuant to Section 3.01 of the Indenture and paragraph 6 may be surrendered in
integral multiples of $1,000 principal amount for conversion into cash or, at the Company option,
cash and shares of Common Stock; provided, however, that such Security or portion thereof may be
surrendered for conversion pursuant to this paragraph only until the close of business on the
Business Day immediately preceding the Redemption Date.

     Conversion Upon Certain Distributions. Subject to earlier Redemption, Purchase at Holder’s
Option or Repurchase Upon Fundamental Change, if the Company takes any action, or becomes aware of
any event, that would require an adjustment to the Conversion Rate pursuant to Sections 10.05(b),
10.05(c), 10.05(d) or 10.05(e) of the Indenture, the Securities may be surrendered for conversion
in integral multiples of $1,000 principal amount into cash, or at the Company’s option, cash and
shares of Common Stock beginning on the date the Company mails the notice to the Holders as
provided in Section 10.10 of the Indenture (or, if earlier, the date the Company is required under
the Indenture to mail such notice) and at any time thereafter until the close of business on the
Business Day immediately preceding the Ex Date (as defined in Section 10.05(g) of the Indenture) of
the applicable transaction or until the Company announces that such transaction will not take
place.

     Conversion Upon Occurrence of Certain Corporate Transactions. Subject to earlier Redemption,
Purchase at Holder’s Option or Repurchase Upon Fundamental Change, if either:

     (i) a Fundamental Change or a Make-Whole Fundamental Change occurs; or

     (ii) the Company is a party to a consolidation, merger or binding share exchange, sale of all
or substantially all of the Company’s properties and assets or other similar transaction, in each
case, pursuant to which the Common Stock would be converted into or exchanged for, or would
constitute solely the right to receive, cash, securities or other property,

 

 

     then, in each case, the Securities may be surrendered for conversion into cash and, if
applicable, shares of Common Stock at any time during the period that begins on, and includes, the
date that is thirty (30) calendar days prior to the date originally announced by the
Company as the anticipated effective date of such Fundamental Change, consolidation, merger or
binding share exchange (which anticipated effective date the Company shall disclose, in good faith,
in the written notice, public announcement and publication referred to in Section 10.01(c) of the
Indenture) and ends on, and includes, the date that is thirty (30) calendar days after the actual
effective date of such Fundamental Change, consolidation, merger or binding share exchange;
provided, however, that if such transaction is a Make-Whole Fundamental Change, then the Securities
may also be surrendered for conversion into cash, or, at the Company’s option, cash and shares of
Common Stock at any time during the Make-Whole Conversion Period applicable to such Make-Whole
Fundamental Change; and provided, further, that if such transaction is a Fundamental Change, then
the Securities may also be surrendered for conversion into cash or, at the Company’s option, cash
and shares of Common Stock at any time until, and including, the Fundamental Change Repurchase Date
applicable to such Fundamental Change.

     Conversion on or after October 1, 2024 and at any time from September 1, 2011 to October 1,
2011. Subject to earlier Redemption, Purchase at Holder’s Option or Repurchase Upon Fundamental
Change, the Securities may be surrendered for conversion into cash and, if applicable, shares of
Common Stock at any time on or after October 1, 2024 and prior to the Maturity Date or the earlier
Redemption by the Company or Purchase at Holder’s Option, and at any time from, and including,
September 1, 2011 to, and including, October 1, 2011.

     To convert a Security, a Holder must (1) complete and sign the Conversion Notice, with
appropriate signature guarantee, on the back of the Security, (2) surrender the Security to a
Conversion Agent, (3) furnish appropriate endorsements and transfer documents if required by the
Registrar or Conversion Agent, (4) pay the amount of interest, if any, the Holder must pay in
accordance with the Indenture and as described below and (5) pay any tax or duty if required
pursuant to the Indenture. A Holder may convert a portion of a Security if the portion is $1,000
principal amount or an integral multiple of $1,000 principal amount.

     Upon conversion of a Security, the Holder thereof shall be entitled to receive the cash or, at
the Company’s option cash and shares of Common Stock, payable upon conversion in accordance with
Article X of the Indenture.

     The initial Conversion Rate is      shares of Common Stock per $1,000 principal amount of
Securities (which results in an effective initial Conversion Price of approximately $      per
share) subject to adjustment in the event of certain circumstances as specified in the Indenture.
The Company will deliver cash in lieu of any fractional share. On conversion, no payment or
adjustment for any unpaid and accrued interest or Contingent Interest on the Securities will be
made. If a Holder surrenders a Security for conversion after the close of business on the record
date for the payment of an installment of interest on or before the related interest payment date,
such Security, when surrendered for conversion, must be accompanied by payment in cash of an amount
equal to the interest thereon which the registered Holder at the close of business on such record
date is to receive (other than overdue interest, if any, that has accrued on such Security), unless
such Security has been called for Redemption as described in the Indenture.

 

 

     The Conversion Rate applicable to each Security that is surrendered for conversion, in
accordance with the Securities and Article X of the Indenture, at any time during
the Make-Whole Conversion Period with respect to a Make-Whole Fundamental Change shall be
increased to an amount equal to the Conversion Rate that would, but for Section 10.14 of the
Indenture, otherwise apply to such Security pursuant to Article X of the Indenture, plus an amount
equal to the Make-Whole Applicable Increase; provided, however, that such increase to the
Conversion Rate shall not apply if either (i) such Make-Whole Fundamental Change constitutes a
Public Acquirer Fundamental with respect to which the Company shall have duly made, and given full
effect to, an election, pursuant to and in accordance with Section 10.14(e) of the Indenture, to
make an Acquirer Stock Conversion Right Adjustment; or (ii) such Make-Whole Fundamental Change is
announced by the Company but shall not be consummated.

     11. Denominations, Transfer, Exchange. The Securities are in registered form, without
coupons, in denominations of $1,000 principal amount and integral multiples of $1,000 principal
amount. The transfer of Securities may be registered and Securities may be exchanged as provided
in the Indenture. The Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents. No service charge shall be made for any such registration of
transfer or exchange, but the Company and the Trustee may require payment of a sum sufficient to
cover any tax or similar governmental charge that may be imposed in connection with certain
transfers or exchanges. The Company or the Trustee, as the case may be, shall not be required to
register the transfer of or exchange any Security (i) during a period beginning at the opening of
business twenty (20) calendar days before the mailing of a notice of redemption of the Securities
selected for Redemption under Section 3.04 of the Indenture and ending at the close of business on
the day of such mailing or (ii) for a period of twenty (20) calendar days before selecting,
pursuant to Section 3.03 of the Indenture, Securities to be redeemed or (iii) that has been
selected for Redemption or for which a Purchase Notice has been delivered pursuant to Section 3.08
or 3.09, and not withdrawn, in accordance with the Indenture, except, in the case of a partial
redemption, purchase or repurchase, that portion of Securities not being redeemed or repurchased.

     12. Persons Deemed Owners. The registered Holder of a Security may be treated as the owner of
such Security for all purposes.

     13. Merger or Consolidation. Except as provided in the Indenture, the Company shall not
consolidate with, or merge with or into, or sell, transfer, lease, convey or otherwise dispose of
all or substantially all of the property or assets of the Company to, another person, whether in a
single transaction or series of related transactions, unless (i) such other person is a corporation
organized and existing under the laws of the United States of America, any State thereof or the
District of Columbia; (ii) such person assumes by supplemental indenture all the obligations of the
Company under the Securities and the Indenture; and (iii) immediately after giving effect to the
transaction, no Default or Event of Default shall exist.

     14. Amendments, Supplements and Waivers. Subject to certain exceptions, the Indenture or the
Securities may be amended or supplemented with the consent of the Holders of at least a majority in
aggregate principal amount of the outstanding Securities, and certain existing Defaults or Events
of Default may be waived with the consent of the Holders of a majority in aggregate principal
amount of the Securities then outstanding. In accordance with

 

 

the terms of the Indenture, the
Company, with the consent of the Trustee, may amend or supplement this Indenture or the Securities
without notice to or the consent of any
Securityholder: (i) to comply with Section 10.11 of the Indenture and, in accordance with
Section 10.14(e) of the Indenture, to give effect to an election, pursuant to such Section
10.14(e), by the Company to make an Acquirer Stock Conversion Right Adjustment with respect to a
Public Acquirer Fundamental Change; (ii) to make adjustments in accordance with the Indenture to
the right to convert the Securities upon certain reclassifications or changes in the Common Stock
and certain consolidation mergers and binding share exchanges upon the sale, transfer, lease,
conveyance or other deposition of all or substantially all the Company’s property or assets; (iii)
to secure the obligations of the Company in respect of the Securities; (iv) to add to the covenants
of the Company described in the Indenture for the benefit of Securityholders or to surrender any
right or power conferred upon the Company; (v) to make provisions with respect to adjustments to
the Conversion Rate as required by the Indenture or to increase the Conversion Rate in accordance
with the Indenture; (vi) to evidence the assumption of the Company’s Obligations under the
Indenture or the Securities, as the case may be, by a successor upon the Company’s consolidation or
merger or the sale, transfer, lease, conveyance or other disposition of all or substantially all of
the Company’s property or assets in accordance with the Indenture. In addition, the Company and
the Trustee may enter into a supplemental indenture without the consent of Holders of the
Securities to cure any ambiguity, defect, omission or inconsistency in the Indenture in a manner
that does not, individually or in the aggregate with all other modifications made or to be made to
the Indenture, adversely affect the rights of any Holder in any material respect; (vii) to comply
with the rules or regulations of any securities exchange or automated quotation system on which any
of the Securities may be listed or traded; or (viii) to add to, change or eliminate any of the
provisions of this Indenture as shall be necessary or desirable in accordance with any amendments
to the TIA, provided that such action does not adversely affect the rights or interests of any
Holder of Securities.

     15. Defaults and Remedies.

     If an Event of Default (excluding an Event of Default specified in Section 6.01(viii) or (ix)
of the Indenture with respect to the Company (but including an Event of Default specified in
Section 6.01(viii) or (ix) of the Indenture solely with respect to a Significant Subsidiary of the
Company or any group of Subsidiaries that in the aggregate would constitute a Significant
Subsidiary of the Company)) occurs and is continuing, the Trustee by notice to the Company or the
Holders of at least twenty five percent (25%) in principal amount of the Securities then
outstanding by notice to the Company and the Trustee may declare the Securities to be due and
payable. Upon such declaration, the principal of, and any premium and accrued and unpaid interest
(including, without limitation, any Contingent Interest) on, all Securities shall be due and
payable immediately. If an Event of Default specified in Section 6.01(viii) or (ix) of the
Indenture with respect to the Company (excluding, for purposes of this sentence, an Event of
Default specified in Section 6.01(viii) or (ix) of the Indenture solely with respect to a
Significant Subsidiary of the Company or any group of Subsidiaries that in the aggregate would
constitute a Significant Subsidiary of the Company) occurs, the principal of, and premium and
accrued and unpaid interest (including, without limitation, any Contingent Interest) on, all the
Securities shall ipso facto become and be immediately due and payable without any declaration or
other act on the part of the Trustee or any Holder. The Holders of a majority in aggregate
principal amount of the Securities then outstanding by written notice to the Trustee may rescind or
annul an

 

 

acceleration and its consequences if (A) the rescission would not conflict with any order
or decree, (B) all existing Events of Default, except the nonpayment of principal, premium or
interest (including, without limitation, Contingent Interest) that has become due solely
because of the acceleration, have been cured or waived and (C) all amounts due to the Trustee under
Section 7.07 of the Indenture have been paid.

     Holders may not enforce the Indenture or the Securities except as provided in the Indenture.
The Holders of a majority in aggregate principal amount of the Securities then outstanding may
direct the time, method and place of conducting any proceeding for any remedy available to the
Trustee or exercising any trust or power conferred on it. However, the Trustee may refuse to
follow any direction that conflicts with law or the Indenture, is unduly prejudicial to the rights
of other Holders or would involve the Trustee in personal liability unless the Trustee is offered
indemnity reasonably satisfactory to it; provided, that the Trustee may take any other action
deemed proper by the Trustee which is not inconsistent with such direction.

     If a Default or Event of Default occurs and is continuing as to which the Trustee has received
written notice pursuant to the provisions of the Indenture, or as to which a Responsible Officer of
the Trustee shall have actual knowledge, the Trustee shall mail to each Holder a notice of the
Default or Event of Default within thirty (30) days after it occurs unless such Default or Event of
Default has been cured or waived. Except in the case of a Default or Event of Default in payment
of any amounts due with respect to any Security, the Trustee may withhold the notice if, and so
long as it in good faith determines that, withholding the notice is in the best interests of
Holders. The Company must deliver to the Trustee an annual compliance certificate.

     16. Tax Treatment. The Company agrees, and by acceptance of beneficial ownership interest in
the Securities each Holder of the Securities will be deemed to have agreed, for U.S. federal income
tax purposes (A) to treat the Securities as indebtedness that is subject to Treas. Reg. Sec.
1.1275-4 (the “Contingent Payment Regulations”) and, for purposes of the Contingent Payment
Regulations, to treat the cash and the fair market value of any stock beneficially received by a
Holder upon any conversion of the Securities as a contingent payment and (B) to be bound by the
Company’s determination of the “comparable yield” and “projected payment schedule,” within the
meaning of the Contingent Payment Regulations, with respect to the Securities. A Holder may obtain
the issue price, amount of original issue discount, issue date, yield to maturity, comparable yield
and projected payment schedule for the Securities by submitting a written request for such
information to the Company at the following address: Diodes Incorporated, Attention: Chief
Financial Officer, 3050 East Hillcrest Drive, Westlake Village, California 91362.

     17. [Intentionally omitted.]

     18. Trustee’s and Dealings with the Company. The Trustee and each banking institution, if
any, serving as successor Trustee thereunder, in its individual or any other capacity, may make
loans to, accept deposits from, and perform services for, the Company or its Affiliates, and may
otherwise deal with the Company or its Affiliates, as if it were not Trustee.

 

 

     19. No Recourse Against Others. No past, present or future director, officer, employee or
shareholder, as such, of the Company shall have any liability for any obligations of the Company
under the Securities or the Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder, by accepting a Security, waives
and releases all such liability. The waiver and release are part of the consideration for the
issue of the Securities.

     20. Authentication. This Security shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent in accordance with the Indenture.

     21. Governing Law. The Internal laws of the State of New York shall govern and be used to
construe this Security, including without limitation, Sections 5-1401 and 5-1402 of the New York
General Obligations Law and New York Civil Practice Laws and Rules 327(b).

     22. Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (Uniform Gifts to Minors Act).

     THE COMPANY WILL FURNISH TO ANY HOLDER UPON WRITTEN REQUEST AND WITHOUT CHARGE A COPY OF THE
INDENTURE. REQUESTS MAY BE MADE TO:

Diodes Incorporated

3050 East Hillcrest Drive

Westlake Village, California 91362

Attention: Chief Financial Officer

 

 

FORM OF ASSIGNMENT

I or we assign to

PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER

 

 

 

 

(please print or type name and address)

 

 

 

 

the within Security and all rights thereunder, and hereby irrevocably constitute and appoint

 

Attorney to transfer the Security on the books of the Company with full power of substitution in
the premises.

Dated:

NOTICE: The signature on this assignment must correspond with the name as it appears
upon the face of the within Security in every particular without alteration or
enlargement or any change whatsoever and be guaranteed by a guarantor institution
participating in the Securities Transfer Agents Medallion Program or in such other
guarantee program acceptable to the Registrar.

Signature Guarantee:

 

 

CONVERSION NOTICE

To convert this Security in accordance with the Indenture, check the box: o

To convert only part of this Security, state the principal amount to be converted (must be in
multiples of $1,000):

$

If you want the stock certificate representing the shares of Common Stock, if any, issuable upon
conversion made out in another person’s name, fill in the form below:

 

 

(Insert other person’s soc. sec. or tax I.D. no.)

 

 

 

 

 

 

 

 

(Print or type other person’s name, address and zip code)

	 	 	 
	Date:

	 	Signature(s):
	 

	 	 
	 

	 	(Sign exactly as name appears on the other side of this Section)
	Signatures guaranteed by:

	 	 
	 

	 	(All signatures must be guaranteed by a guarantor institution
participating in the Securities Transfer Agent Medallion
Program or in such other guarantee program acceptable to the
Trustee).

 

 

PURCHASE NOTICE

Certificate No. of Security:

     If you want to elect to have this Security purchased by the Company pursuant to Section 3.08
of the Indenture, check the box: o

     If you want to elect to have this Security purchased by the Company pursuant to Section 3.09
of the Indenture, check the box: o

     If you want to elect to have only part of this Security purchased by the Company pursuant to
Section 3.08 or Section 3.09 of the Indenture, as applicable, state the principal amount to be so
purchased by the Company:

$
 

(in an integral multiple of $1,000)

	 	 	 
	Date:

	 	Signature(s):
	 
	 	 
	 

	 	(Sign exactly as name(s) appear(s) on the other side of this Section)
	 
	 	 
	Signatures guaranteed by:

	 	 
	 
	 	 
	 

	 	(All signatures must be guaranteed by a
guarantor institution participating in
the Securities Transfer Agent Medallion
Program or in such other guarantee
program acceptable to the Trustee).

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