Document:

Exhibit 10.5

 

THIRD AMENDMENT TO

PURCHASE AND SALE AGREEMENT

(32 Properties)

 

THIS THIRD AMENDMENT TO PURCHASE AND SALE AGREEMENT
(this “Amendment”) is made and entered into this 24th day of June, 2010, by and
between Seller and Purchaser.

 

R E C
I T A L S:

 

A.            Seller and Purchaser have heretofore
entered into that certain Purchase and Sale Agreement, dated as of May 3,
2010, as amended by that certain First Amendment to Purchase and Sale
Agreement, dated as of May 11, 2010 and that certain Second Amendment to
Purchase and Sale Agreement, dated as of May 21, 2010 (as amended, the “Agreement”)
relating to the sale and purchase of the thirty-one (32) properties described
therein. All defined terms in the Agreement (as amended by this Amendment) are
used herein with the same meanings those terms have in the Agreement (as
amended by this Amendment).

 

B.            Seller and Purchaser desire to amend
the Agreement as set forth herein.

 

NOW, THEREFORE, in consideration of these premises, the
terms and conditions contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereby covenant and agree as follows:

 

A G R E E M E N T

 

1.             Recitals.  The recitals set forth above are hereby
incorporated herein.

 

2.             Closing Date. Section 1.1.11
of the Agreement is hereby amended and restated in its entirety as follows:

 

“1.1.11            “Closing Date”:
June 29, 2010, or such earlier date as may be agreed to in writing by
Purchaser and Seller.”

 

3.             Harborside Purchase and Sale
Agreement. Section 1.1.15 of the Agreement is hereby amended and
restated in its entirety as follows:

 

“1.1.15            “Harborside
Purchase and Sale Agreement”: That certain Member Interest Purchase
and Sale Agreement between Purchaser and Harborside Seller, dated as of May 3,
2010, as amended by that certain First Amendment to Member Interest Purchase
and Sale Agreement, dated as of May 11, 2010, as further amended by that
certain Second Amendment to Member Interest Purchase and Sale Agreement, dated
as of May 21, 2010 as further amended by that certain Third Amendment to
Member Interest Purchase and Sale Agreement, dated as of June 24, 2010.”

 

 

4.             Counterparts; Facsimile.  This Amendment may be executed and delivered
in any number of counterparts, each of which so executed and delivered shall be
deemed to be an original and all of which shall constitute one and the same
instrument.  For purposes of this
Amendment, any signature transmitted by facsimile or e-mail (in pdf format)
shall be considered to have the same legal and binding effect as any original
signature.

 

5.             Ratification. The Agreement,
as amended hereby, remains in full force and effect and is hereby ratified and
confirmed.

 

[Remainder
of Page Intentionally Left Blank;

Signature Page Follows]

 

 

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

 

	
  PURCHASER:

  
	
   

  	
   

  	
   

  	
   

  
	
  TRT
  ACQUISITIONS LLC, a Delaware limited
  liability company

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  DCTRT Real Estate Holdco LLC, Its Sole Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  Dividend Capital Total Realty Operating Partnership
  LP, Its Sole Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Dividend Capital Total Realty Trust Inc., Its
  General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Greg Moran

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Greg M. Moran

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
							

 

SELLER:

 

iSTAR CTL SOUTH HAVANA —
ENGLEWOOD LLC, a Delaware limited liability
company

 

iSTAR CTL WATERVIEW — DALLAS LLC, a Delaware limited liability company

 

iSTAR CTL SHADELANDS — WALNUT
CREEK LLC, a Delaware limited liability
company

 

iSTAR CTL NORTH GLENVILLE —
RICHARDSON LLC, a Delaware limited liability
company

 

iSTAR CTL SHEILA — COMMERCE LLC, a Delaware limited liability company

 

iSTAR CTL COLUMBIA — RICHFIELD
LLC, a Delaware limited liability company

 

iSTAR CTL COTTONWOOD — MILPITAS
LLC, a Delaware limited liability company

 

iSTAR CTL NORTH FAIRWAY DRIVE —
VERNON HILLS LLC, a Delaware limited liability
company

 

 

iSTAR CTL DOOLITTLE — REDONDO
BEACH LLC, a Delaware limited liability
company

 

iSTAR CTL CROWN COLONY — QUINCY
LLC, a Delaware limited liability company

 

iSTAR CTL RUE FERRARI — SAN JOSE
LLC, a Delaware limited liability company

 

iSTAR CTL CORPORATE CENTER DRIVE
— NEWBURY PARK LLC, a Delaware limited liability
company

 

iSTAR CTL COLUMBIA —
CAMPBELLSVILLE LLC, a Delaware limited liability
company

 

iSTAR CTL SUNSET HILLS — RESTON
LLC, a Delaware limited liability company

 

iSTAR CTL EAGLE LLC, a Delaware limited liability company

 

iSTAR CTL SYLVAN WAY — PARSIPPANY
LLC, a Delaware limited liability company

 

iSTAR CTL INVERNESS — ENGLEWOOD
LLC, a Delaware limited liability company

 

iSTAR CTL CORPORATE DRIVE — DIXON
LLC, a Delaware limited liability company

 

iSTAR CTL CONNECTION — IRVING LLC, a Delaware limited liability company

 

iSTAR CTL CHARLESTON — MOUNTAIN
VIEW LLC, a Delaware limited liability
company

 

iSTAR CTL DUBLIN LLC, a Delaware limited liability company

 

iSTAR GT, L.P., a Delaware limited partnership

 

iSTAR NG LP, a Delaware limited partnership

 

iSTAR CTL MAPLE — EL SEGUNDO LLC, a Delaware limited liability company

 

 

iSTAR CTL SW 80 — PLANTATION LLC, a Delaware limited liability company

 

 

	
  By:

  	
  /s/
  Samantha K. Garbus

  	
   

  
	
  Name:

  	
  Samantha
  K. Garbus

  	
   

  
	
  Title:

  	
  Senior
  Vice President

  	
   

  
	
  Date:

  	
  6/24/10

  	
   

  
	
   

  	
   

  	
   

  
	
  AGREED TO FOR PURPOSES OF
  SECTION 4.3.2:

  	
   

  
	
   

  	
   

  	
   

  
	
  iSTAR FINANCIAL INC., a
  Maryland corporation

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Samantha K. Garbus

  	
   

  
	
  Name:

  	
  Samantha
  K. Garbus

  	
   

  
	
  Title:

  	
  Senior
  Vice PresidentExhibit 10.6

 

PARTNERSHIP INTERESTS PURCHASE AND SALE AGREEMENT

 

 

BETWEEN

 

 

iSTAR NG INC.

 

AND

 

iSTAR NG GENPAR INC.,

COLLECTIVELY, AS SELLER

 

 

AND

 

 

TRT ACQUISITIONS LLC,

AS PURCHASER

 

 

DATED:  JUNE 25, 2010

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page No.

  
	
   

  	
   

  
	
  ARTICLE 1 BASIC INFORMATION

  	
  1

  
	
  1.1

  	
  Certain Basic Terms

  	
  1

  
	
  1.2

  	
  Closing Costs

  	
  6

  
	
  1.3

  	
  Notice Addresses

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2 PARTNERSHIP
  INTERESTS

  	
  8

  
	
  2.1

  	
  Partnership Interests

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3 EARNEST MONEY

  	
  8

  
	
   

  	
   

  
	
  ARTICLE 4 DUE DILIGENCE

  	
  9

  
	
  4.1

  	
  Due Diligence Materials To Be Delivered

  	
  9

  
	
  4.2

  	
  Physical Due Diligence

  	
  10

  
	
  4.3

  	
  Due Diligence/Financing Contingency Termination Rights

  	
  11

  
	
  4.4

  	
  Updated Property Information

  	
  11

  
	
  4.5

  	
  Return of Documents and Reports

  	
  12

  
	
  4.6

  	
  Service Contracts

  	
  12

  
	
  4.7

  	
  Proprietary Information; Confidentiality

  	
  12

  
	
  4.8

  	
  No Representation or Warranty by Seller

  	
  13

  
	
  4.9

  	
  Purchaser’s Responsibilities

  	
  13

  
	
  4.10

  	
  Purchaser’s Agreement to Indemnify

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5 TITLE AND SURVEY

  	
  14

  
	
  5.1

  	
  Title Commitment

  	
  14

  
	
  5.2

  	
  Updated Survey

  	
  14

  
	
  5.3

  	
  Title Review

  	
  14

  
	
  5.4

  	
  Delivery of Title Policy and Non-Imputation Endorsement at
  Closing

  	
  15

  
	
   

  	
   

  
	
  ARTICLE 6 OPERATIONS AND
  RISK OF LOSS

  	
  15

  
	
  6.1

  	
  Ongoing Operations

  	
  15

  
	
  6.2

  	
  Casualty

  	
  17

  
	
  6.3

  	
  Condemnation

  	
  18

  
	
  6.4

  	
  Tenant Estoppel Certificate/SNDA

  	
  18

  
	
   

  	
   

  
	
  ARTICLE 7 CLOSING

  	
  19

  
	
  7.1

  	
  Closing

  	
  19

  
	
  7.2

  	
  Conditions to Parties’ Obligation to Close

  	
  19

  
	
  7.3

  	
  Seller’s Deliveries in Escrow

  	
  23

  
	
  7.4

  	
  Purchaser’s Deliveries in Escrow

  	
  25

  
	
  7.5

  	
  Closing Statements

  	
  25

  
	
  7.6

  	
  Purchase Price

  	
  25

  
	
  7.7

  	
  Possession

  	
  25

  
	
  7.8

  	
  Delivery of Books and Records

  	
  26

  
	
  7.9

  	
  Notice to Northrop

  	
  26

  
	
   

  	
   

  
	
  ARTICLE 8 PRORATIONS,
  DEPOSITS, COMMISSIONS

  	
  26

  
	
  8.1

  	
  Prorations for Taxes

  	
  26

  

 

i

 

	
  8.2

  	
  Prorations for Tenant-Paid Operating Expenses

  	
  26

  
	
  8.3

  	
  Prorations for Non-Tenant Paid Items

  	
  26

  
	
  8.4

  	
  Miscellaneous Prorations

  	
  28

  
	
  8.5

  	
  Leasing Costs

  	
  28

  
	
  8.6

  	
  Closing Costs

  	
  29

  
	
  8.7

  	
  Final Adjustment After Closing

  	
  29

  
	
  8.8

  	
  Tenant Deposits

  	
  29

  
	
  8.9

  	
  Commissions

  	
  29

  
	
  8.10

  	
  Accounts

  	
  30

  
	
  8.11

  	
  Tax Appeals

  	
  30

  
	
   

  	
   

  
	
  ARTICLE 9 REPRESENTATIONS
  AND WARRANTIES

  	
  31

  
	
  9.1

  	
  Seller’s Representations and Warranties

  	
  31

  
	
  9.2

  	
  Purchaser’s Representations and Warranties

  	
  35

  
	
  9.3

  	
  Survival of Representations and Warranties

  	
  36

  
	
  9.4

  	
  Company Representations

  	
  37

  
	
   

  	
   

  
	
  ARTICLE 10 DEFAULT AND
  REMEDIES

  	
  38

  
	
  10.1

  	
  Seller’s Remedies

  	
  38

  
	
  10.2

  	
  Purchaser’s Remedies

  	
  39

  
	
  10.3

  	
  Attorneys’ Fees

  	
  39

  
	
  10.4

  	
  Other Expenses

  	
  39

  
	
   

  	
   

  
	
  ARTICLE 11 DISCLAIMERS,
  RELEASE AND INDEMNITY

  	
  39

  
	
  11.1

  	
  Disclaimers By Seller

  	
  39

  
	
  11.2

  	
  Sale “As Is, Where Is”

  	
  40

  
	
  11.3

  	
  Seller Released from Liability

  	
  41

  
	
  11.4

  	
  “Hazardous Materials” Defined

  	
  42

  
	
  11.5

  	
  Intentionally Deleted

  	
  42

  
	
  11.6

  	
  Survival

  	
  42

  
	
   

  	
   

  
	
  ARTICLE 12 MISCELLANEOUS

  	
  42

  
	
  12.1

  	
  Parties Bound; Assignment

  	
  42

  
	
  12.2

  	
  Headings

  	
  42

  
	
  12.3

  	
  Invalidity and Waiver

  	
  42

  
	
  12.4

  	
  Governing Law

  	
  42

  
	
  12.5

  	
  Survival

  	
  43

  
	
  12.6

  	
  Entirety and Amendments

  	
  43

  
	
  12.7

  	
  Time

  	
  43

  
	
  12.8

  	
  Intentionally Omitted

  	
  43

  
	
  12.9

  	
  No Electronic Transactions

  	
  43

  
	
  12.10

  	
  Notices

  	
  43

  
	
  12.11

  	
  Construction

  	
  44

  
	
  12.12

  	
  Calculation of Time Periods; Business Day

  	
  44

  
	
  12.13

  	
  Execution in Counterparts

  	
  44

  
	
  12.14

  	
  Recordation

  	
  44

  
	
  12.15

  	
  Further Assurances

  	
  44

  
	
  12.16

  	
  Discharge of Obligations

  	
  45

  
	
  12.17

  	
  ERISA

  	
  45

  

 

ii

 

	
  12.18

  	
  No Third Party Beneficiary

  	
  45

  
	
  12.19

  	
  Reporting Person

  	
  45

  
	
  12.20

  	
  Post-Closing Access

  	
  45

  
	
  12.21

  	
  Waiver of Jury Trial

  	
  45

  
	
  12.22

  	
  Information and Audit Cooperation

  	
  46

  
	
  12.23

  	
  Bulk Sales Laws

  	
  46

  

 

iii

 

LIST OF DEFINED TERMS

 

	
   

  	
   

  	
  Page No.

  
	
   

  	
   

  	
   

  
	
  Acquired Interests

  	
   

  	
  6

  
	
  Acquired Properties

  	
   

  	
  6

  
	
  Agreement

  	
   

  	
  1

  
	
  Assignment and Assumption

  	
   

  	
  23

  
	
  Balance Sheets

  	
   

  	
  34

  
	
  Books and Records

  	
   

  	
  5

  
	
  Business Day

  	
   

  	
  44

  
	
  Casualty

  	
   

  	
  17

  
	
  Casualty Tenant Termination Event

  	
   

  	
  17

  
	
  Casualty Tenant Termination Notice

  	
   

  	
  17

  
	
  CERCLA

  	
   

  	
  41

  
	
  CEVA Properties

  	
   

  	
  20

  
	
  Closing

  	
   

  	
  19

  
	
  Closing Date

  	
   

  	
  3

  
	
  Code

  	
   

  	
  35

  
	
  Code Plan

  	
   

  	
  35

  
	
  Co-Insurance

  	
   

  	
  15

  
	
  Company Representations

  	
   

  	
  37

  
	
  Condemnation

  	
   

  	
  18

  
	
  Condemnation Tenant Termination Event

  	
   

  	
  18

  
	
  Condemnation Tenant Termination Notice

  	
   

  	
  18

  
	
  Confidentiality Agreement

  	
   

  	
  3

  
	
  CTL Reston

  	
   

  	
  6

  
	
  CTL Reston Member Interest Purchase and Sale Agreement

  	
   

  	
  5

  
	
  CTL Reston Membership Interests

  	
   

  	
  6

  
	
  CTL Reston Seller

  	
   

  	
  6

  
	
  Effective Date

  	
   

  	
  2

  
	
  ERISA

  	
   

  	
  35

  
	
  ERISA Plan

  	
   

  	
  35

  
	
  Escrow Agent

  	
   

  	
  2

  
	
  Extended Coverage

  	
   

  	
  5

  
	
  Fidelity

  	
   

  	
  14

  
	
  Financial Advisor

  	
   

  	
  2

  
	
  Financial Statements

  	
   

  	
  10

  
	
  First American

  	
   

  	
  14

  
	
  Goodyear Properties

  	
   

  	
  20

  
	
  GP Partnership Interests

  	
   

  	
  3

  
	
  GP Seller

  	
   

  	
  3

  
	
  Guaranties

  	
   

  	
  4

  
	
  Guaranty

  	
   

  	
  4

  
	
  Harborside

  	
   

  	
  5

  
	
  Harborside Membership Interests

  	
   

  	
  5

  
	
  Harborside Purchase and Sale Agreement

  	
   

  	
  5

  
	
  Harborside Seller

  	
   

  	
  5

  

 

iv

 

	
  Hazardous Materials

  	
   

  	
  41

  
	
  Improvements

  	
   

  	
  3

  
	
  Indemnitor

  	
   

  	
  37

  
	
  Intangible Personal Property

  	
   

  	
  4

  
	
  iPortal

  	
   

  	
  8

  
	
  iStar

  	
   

  	
  3

  
	
  Land

  	
   

  	
  3

  
	
  Lease

  	
   

  	
  4

  
	
  Lease Event

  	
   

  	
  16

  
	
  Lease Files

  	
   

  	
  9

  
	
  Leases

  	
   

  	
  4

  
	
  Leasing Costs

  	
   

  	
  28

  
	
  License Agreements

  	
   

  	
  5

  
	
  LP Partnership Interests

  	
   

  	
  3

  
	
  LP Seller

  	
   

  	
  3

  
	
  Non-Imputation Endorsement

  	
   

  	
  15

  
	
  Northrop

  	
   

  	
  5

  
	
  OFAC

  	
   

  	
  32

  
	
  Operating Expenses

  	
   

  	
  26

  
	
  Operating Statements

  	
   

  	
  9

  
	
  Other Purchase and Sale Agreements

  	
   

  	
  6

  
	
  Other Real Properties

  	
   

  	
  6

  
	
  Other Sellers

  	
   

  	
  6

  
	
  Partnership Interests

  	
   

  	
  2

  
	
  Permitted Exceptions

  	
   

  	
  14

  
	
  Permitted Liabilities

  	
   

  	
  34

  
	
  Plan Assets

  	
   

  	
  35

  
	
  Portfolio Property

  	
   

  	
  3

  
	
  Portfolio Purchase and Sale Agreement

  	
   

  	
  3

  
	
  Portfolio Seller

  	
   

  	
  3

  
	
  Pre-Closing Tax Appeals

  	
   

  	
  30

  
	
  Property

  	
   

  	
  3

  
	
  Property Documents

  	
   

  	
  8

  
	
  Property Information

  	
   

  	
  8

  
	
  Purchase and Sale Agreements

  	
   

  	
  1

  
	
  Purchase Price

  	
   

  	
  1

  
	
  Purchaser

  	
   

  	
  1

  
	
  Real Property

  	
   

  	
  3

  
	
  Rent Roll

  	
   

  	
  9

  
	
  Reports

  	
   

  	
  12

  
	
  Seller

  	
   

  	
  1

  
	
  Seller’s Ownership Period

  	
   

  	
  5

  
	
  Seller’s Representatives

  	
   

  	
  36

  
	
  Service Contracts

  	
   

  	
  4

  
	
  Similar Law

  	
   

  	
  44

  
	
  SNDA

  	
   

  	
  19

  

 

v

 

	
  Subsidiary

  	
   

  	
  3

  
	
  Subsidiary Agreement

  	
   

  	
  3

  
	
  Survey

  	
   

  	
  9

  
	
  Survival Period

  	
   

  	
  36

  
	
  Tangible Personal Property

  	
   

  	
  4

  
	
  Taxes

  	
   

  	
  25

  
	
  Tenant Estoppel Certificate

  	
   

  	
  18

  
	
  Tenant Receivables

  	
   

  	
  26

  
	
  Terminations

  	
   

  	
  22

  
	
  Third Party Estoppel Certificate

  	
   

  	
  19

  
	
  Title Affidavits

  	
   

  	
  23

  
	
  Title Commitment

  	
   

  	
  14

  
	
  Title Company

  	
   

  	
  2

  
	
  Title Policy

  	
   

  	
  15

  
	
  Unbilled Tenant Receivables

  	
   

  	
  26

  
	
  Uncollected Delinquent Tenant Receivables

  	
   

  	
  27

  
	
  Updated Property Information

  	
   

  	
  11

  

 

vi

 

PARTNERSHIP INTERESTS PURCHASE AND SALE AGREEMENT

 

This
Partnership Interests Purchase and Sale Agreement (this “Agreement”)
is made and entered into by and between Purchaser and Seller.

 

RECITALS

 

A.            Defined terms are indicated by
initial capital letters.  Defined terms
shall have the meanings set forth herein, whether or not such terms are used
before or after the definitions are set forth.

 

B.            Purchaser desires to purchase the
Partnership Interests and Seller desires to sell the Partnership Interests, all
upon the terms and conditions set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual terms, provisions, covenants and
agreements set forth herein, as well as the sums to be paid by Purchaser to
Seller, and for other good and valuable consideration, the receipt and
sufficiency of which are acknowledged, Purchaser and Seller agree as follows:

 

ARTICLE 1

BASIC INFORMATION

 

1.1           Certain Basic Terms.  The following defined terms shall have the
meanings set forth below:

 

1.1.1        “Seller”:
collectively, GP Seller and LP Seller, provided that references herein to “Seller”
mean GP Seller with respect to the GP Partnership Interests, LP Seller with
respect to the LP Partnership Interests and, for all other references to “Seller”,
GP Seller and LP Seller, collectively, in each case, as the context requires.

 

1.1.2        “Purchaser”:
TRT Acquisitions LLC, a Delaware limited liability company.

 

1.1.3        “Purchase
Price”: $177,000,000.00; subject to adjustment as provided herein.
It is acknowledged and agreed by Purchaser and Seller that the Purchase Price
of the Partnership Interests is only for purposes of tax reporting and
calculation, accounting and allocation. In no event shall the Purchase Price of
the Partnership Interests be deemed or construed to reflect the sales price of
the Partnership Interests or the Property in a stand alone transaction.

 

1.1.4        “Other
Purchase and Sale Agreements”: collectively, the Portfolio Purchase
and Sale Agreement, the CTL Reston Member Interest Purchase and Sale Agreement
and the Harborside Purchase and Sale Agreement.

 

 

1.1.5        “Title
Company”:

 

First
American Title Insurance Company

National Commercial Services — Chicago

30 North LaSalle Street, Suite 2700

Chicago, Illinois 60602

 

Attn:  John E. Beckstedt, Jr.

Telephone number:  (312) 917-7223 

Facsimile number:  (888) 279-8547

E-mail:  jbeckstedt@firstam.com

 

And

 

Fidelity
Title Insurance Company

8450 E. Crescent Parkway, Suite 410

Greenwood Village, CO 80111

Attn:  Ms. Valena Bloomquist

Telephone number:  (303) 244-9198

Facsimile number:  (720) 489-7593

E-mail:  valena.bloomquist@fnf.com

 

1.1.6                              “Escrow Agent”:

 

First
American Title Insurance Company

National Commercial Services — Chicago

30 North LaSalle Street, Suite 2700

Attn:  John E. Beckstedt, Jr. 

Telephone number:  (312) 917-7223

Facsimile number:  (888) 279-8547

E-mail:  jbeckstedt@firstam.com

 

1.1.7        “Financial
Advisor”: HFF Securities L.P., an affiliate of Holliday Fenoglio
Fowler, LP.

 

1.1.8        “Effective
Date”: The date on which this Agreement is executed by the latter to
sign of Purchaser or Seller, as indicated on the signature page of this
Agreement.  If the execution date is left
blank by either Purchaser or Seller, the Effective Date shall be the execution
date inserted by the other party.

 

1.1.9        Intentionally
Deleted.

 

1.1.10      “Partnership
Interests”: collectively, the GP
Partnership Interests and the LP Partnership Interests, in each case, as the
context requires, it being agreed that references herein to the “Partnership
Interests” mean the GP Partnership Interests with respect to the GP Seller and
the LP Partnership Interests with respect to the LP Seller.

 

2

 

1.1.11      “Closing
Date”: June 29, 2010,
or such earlier date as may be agreed to in writing by Purchaser and Seller.

 

1.1.12      “Confidentiality
Agreement”: The letter agreement dated March 31, 2010 between
iStar Financial Inc., an affiliate of Seller (“iStar), and Purchaser.

 

1.1.13      “LP
Seller”: iStar NG Inc., a Delaware corporation.

 

1.1.14      “GP
Seller”: iStar NG GenPar Inc., a Delaware corporation.

 

1.1.15      “LP
Partnership Interests”: the ninety-nine percent (99%) limited
partnership interests in the Subsidiary owned by LP Seller.

 

1.1.16      “GP
Partnership Interests”: the one percent (1%) general partnership
interest in the Subsidiary owned by GP Seller.

 

1.1.17      “Subsidiary”:
iStar NG LP, a Delaware limited partnership, in each case, as applicable.

 

1.1.18      “Portfolio
Purchase and Sale Agreement”: That certain Purchase and Sale
Agreement between Purchaser and certain sellers a party thereto (individually
or collectively as the context requires, “Portfolio
Seller), dated as of May 3, 2010, as amended by that certain
First Amendment to Purchase and Sale Agreement, dated as of May 11, 2010,
as further amended by that certain Second Amendment to Purchase and Sale
Agreement, dated as of May 21, 2010 and as further amended by that certain
Third Amendment to Purchase and Sale Agreement dated as of the date hereof.

 

1.1.19      “Portfolio
Property”: Those certain properties described in the Portfolio
Purchase and Sale Agreement.

 

1.1.20      “Subsidiary
Agreement”: that certain Limited Partnership Agreement of the
Subsidiary dated April 10, 2003, and any amendments thereto, if any.

 

1.1.21      “Property”:
collectively, the following property:

 

(1)           Real
Property. The land described in Exhibit A hereto
(the “Land”), together with (a) all
improvements located thereon, including, without limitation, those certain
office buildings, but expressly excluding improvements and structures owned by
any tenant or other third party pursuant to the Leases (the “Improvements”), (b) all right, title
and interest of the Subsidiary, if any, in and to the rights, benefits,
privileges, easements, tenements, hereditaments, and appurtenances thereon or
in anywise appertaining thereto, including without limitation, any and all
minerals and mineral rights, oil, gas, and oil and gas rights, development
rights, air rights, water and water rights, wells, well rights and well
permits, water and sewer taps, and sanitary or storm sewer capacity, and (c) all
right, title, and interest of the Subsidiary, if any, in and to all strips and
gores and any land lying in the bed of any street, road or alley, open or
proposed, adjoining 

 

3

 

the
Land (the Land, together with items (a), (b) and (c) of this Section 1.1.21(1),
collectively, the “Real Property”).

 

(2)           Leases
and Guaranties. All of the Subsidiary’s right, title and
interest, without warranty except as set forth herein, in those existing leases
and subleases, including any amendments to such leases and subleases made by
the Subsidiary, described on Schedule 1.1.21(2) and
all leases or sublease which may be made by the Subsidiary after the Effective
Date and prior to Closing as permitted by this Agreement (individually a “Lease”“ and collectively the “Leases”), all guaranties of such Leases,
including any amendments to such guaranties, described on Schedule 1.1.21(2) (individually a “Guaranty”“ and collectively the “Guaranties”), and all other collateral
securing the Leases or Guaranties, including without limitation all security
deposits and letters of credit.

 

(3)           Tangible
Personal Property. All of the Subsidiary’s right, title and
interest, without warranty, except as set forth herein, in the equipment,
machinery, furniture, furnishings, supplies and other tangible personal
property, if any, owned by the Subsidiary and now or hereafter located in and
used in connection with the operation, ownership or management of the Real Property,
but specifically excluding any items of personal property owned or leased by
any tenants at or on the Real Property and further excluding any items of
personal property owned by third parties and leased to the Subsidiary
(collectively, the “Tangible Personal
Property”), which excluded items of personal property are listed on Schedule 1.1.21(3).

 

(4)           Intangible
Personal Property. All of the Subsidiary’s right, title and
interest, if any, without warranty, except as set forth herein, in all
intangible personal property related to the Real Property and the Improvements,
including, without limitation:  all trade
names and trade marks associated with the Real Property and the Improvements,
including the Subsidiary’s rights and interests, if any, in the name of the
Real Property; the plans and specifications and other architectural and
engineering drawings for the Improvements, if any; contract rights related to
the operation, ownership or management of the Real Property, including
maintenance, service, construction, supply and equipment rental contracts, if
any, but not including Leases or License Agreements (collectively, the “Service Contracts”); warranties;
governmental permits, approvals and licenses, if any; and telephone exchange
numbers (all of the items described in this Section 1.1.21(4) collectively
referred to as the “Intangible Personal
Property”). Tangible Personal Property and Intangible Personal
Property shall not include (a) any appraisals or other economic
evaluations of, or projections with respect to, all or any portion of the
Property, including, without limitation, budgets prepared by or on behalf of
Seller and the Subsidiary or any affiliate of Seller or the Subsidiary, (b) any
documents, materials or information which are subject to attorney/client, work
product or similar privilege, which constitute attorney communications with
respect to the Property, Seller and/or the Subsidiary, or which are subject to
a confidentiality agreement, (c) such documents, materials or information
received by Seller or the Subsidiary from 

 

4

 

tenants
and covered by confidentiality agreements between such tenants and Seller or
the Subsidiary, except that such documents, materials or information shall be
included in Tangible Personal Property if Purchaser shall have agreed in
writing to be bound by the terms of such confidentiality agreements prior to
Seller’s delivery of such documents, materials and information to Purchaser,
and (d) any trade name, mark or other identifying material that includes
the name “iStar” or any derivative thereof.

 

(5)           License
Agreements. All of the Subsidiary’s right, title and interest,
without warranty, except as set forth herein, in and to all agreements (other
than the Leases and the Guaranties), if any, for the leasing or licensing of
rooftop space or equipment, cable access and other space, telecommunications
equipment, equipment and facilities that are located on or within the Real
Property and generate income to the Subsidiary as the owner of the Real
Property, including agreements which may be made by the Subsidiary after the
Effective Date and prior to Closing as permitted by this Agreement (the “License Agreements”).

 

1.1.22      “Books
and Records”: collectively, all books and records maintained by
Seller and the Subsidiary in connection with the ownership or operation of the
Property or with respect to corporate matters of the Subsidiary.

 

1.1.23      “Extended
Coverage”: means the deletion of exceptions 2, 3, 4 and 5 from
Schedule B — Section 2 of the Title Commitment.

 

1.1.24      “Seller’s
Ownership Period”: The period beginning on May 15, 2002 and
continuing through the Closing Date.

 

1.1.25      “Harborside
Purchase and Sale Agreement”: That certain Member Interest Purchase
and Sale Agreement between Purchaser and iStar Harborside LLC, a Delaware
limited liability company (“Harborside Seller”),
dated as of May 3, 2010, as amended by that certain First Amendment to
Member Interest Purchase and Sale Agreement, dated as of May 11, 2010, as
further amended by that certain Second Amendment to Member Interest Purchase
and Sale Agreement, dated as of May 21, 2010 and as further amended by
that certain Third Amendment to Member Purchase and Sale Agreement, dated as of
the date hereof.

 

1.1.26      “Harborside”:
The property commonly known as Harborside Financial Center Plaza X, Jersey
City, New Jersey.

 

1.1.27      “Harborside
Membership Interests”: The one hundred percent (100%) membership
interests in American Financial Exchange L.L.C. owned by Harborside Seller.

 

1.1.28      “Northrop”:
Northrop Grumman Systems Corporation, a Delaware corporation.

 

1.1.29      “CTL
Reston Member Interest Purchase and Sale Agreement”: That certain
Member Interest Purchase and Sale Agreement between Purchaser and CTL Reston 

 

5

 

Seller, dated as of the
date hereof relating to the purchase and sale of the CTL Reston Membership
Interests.

 

1.1.30      “CTL
Reston Membership Interests”: One hundred percent (100%) of the
membership interests in CTL Reston.

 

1.1.31      “CTL
Reston”: iStar CTL Sunset Hills — Reston LLC, a Delaware limited
liability company.

 

1.1.32      “Other
Sellers”: collectively, CTL Reston Seller, Portfolio Seller and
Harborside Seller.

 

1.1.33      “Other
Real Properties”: collectively, (A) Harborside and (B) the
property commonly known as 11493 Sunset Hills Road, Reston, Virginia.

 

1.1.34      “Acquired
Interests”: collectively, the CTL Reston Membership Interests and
the Harborside Membership Interests.

 

1.1.35      “Other
Purchase and Sale Agreements”: collectively, the Harborside Purchase
and Sale Agreement, the Portfolio Purchase and Sale Agreement and the CTL
Reston Member Interest Purchase and Sale Agreement.

 

1.1.36        “Acquired
Properties”: collectively, the Partnership Interests, the Acquired
Interests and the Portfolio Property.

 

1.1.37      “CTL
Reston Seller”: iStar CTL Holdco LLC, a Delaware limited liability
company.

 

1.2           Closing Costs.  Closing costs shall be allocated and paid as
follows:

 

	
  Cost

  	
   

  	
  Responsible Party

  
	
  Title
  Commitment required to be delivered pursuant to Section 5.1

  	
   

  	
  Seller

  
	
  Premium
  for standard form Title Policy with Extended Coverage, Co-Insurance and
  one-half (1/2) of the Non-Imputation Endorsement (subject to this
  Section 1.2 and Section 5.4) required to be delivered pursuant to
  Section 5.4

  	
   

  	
  Seller

  
	
  Premium
  for any upgrade of the Title Policy for additional coverage, including,
  without limitation, the premium for any re-insurance, and any endorsements to
  the Title Policy desired by Purchaser (except that Purchaser shall pay only
  one-half (1/2) of the premium for the Non-Imputation Endorsement), any
  inspection fee charged by the Title Company, tax certificates, municipal and
  utility lien certificates, and any other Title Company charges other than
  those required in connection with satisfying any liens which are not
  Permitted Exceptions

  	
   

  	
  Purchaser

  

 

6

 

	
  Any
  increase in the premium for the Title Policy attributable to obtaining
  Co-Insurance as provided in Section 5.4

  	
   

  	
  Purchaser

  
	
  Any
  costs required to cause the Title Company to issue the Title Policy with
  Extended Coverage

  	
   

  	
  Seller

  
	
  Costs
  of a new survey and/or any revisions, modifications or recertifications to
  the existing Survey.

  	
   

  	
  Seller

  
	
  Costs
  for UCC Searches

  	
   

  	
  Purchaser

  
	
  Recording
  Fees

  	
   

  	
  Paid
  in accordance with local custom

  
	
  Any
  deed taxes, documentary stamps, transfer taxes, intangible taxes, mortgage
  taxes or other similar taxes, fees or assessments

  	
   

  	
  Paid
  in accordance with Schedule 1.2

  
	
  Any
  escrow fee charged by Escrow Agent for conducting the Closing

  	
   

  	
  Purchaser
  1⁄2 

  Seller
  1⁄2

  
	
  Real
  Estate Fee to Financial Advisor

  	
   

  	
  Seller

  
	
  All
  other closing costs and expenses incident to this transaction and the closing
  thereof shall be paid by the party incurring the same.

  	
   

  	
   

  

 

1.3           Notice Addresses.  All notices required or permitted to be sent
hereunder shall be sent as follows:

 

	
  Purchaser: 

  	
  TRT Acquisitions LLC

  	
  Copies to:

  	
  TRT Acquisitions LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  518
  17th Street, Suite 1700

  	
   

  	
  518
  17th Street, Suite 1700

  
	
   

  	
  Denver,
  CO 80202

  	
   

  	
  Denver,
  CO 80202

  
	
  Attention:
  

  	
  Mr. John
  Blumberg 

  	
   

  	
  Attention:
  Joshua J. Widoff, Esq.

  
	
   

  	
  Mr. Greg
  Moran

  	
   

  	
   

  
	
  Telephone:
  

  	
  303-228-2200

  	
   

  	
  Telephone:
  303-228-2200

  
	
  Facsimile:
  

  	
  303-577-9797

  	
   

  	
  Facsimile:
  303-869-4602

  
	
  E-mail:
  

  	
  gmoran@dividendcapital.com

  	
   

  	
  E-mail:
  jwidoff@dividendcapital.com

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  and
  

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Greenberg
  Traurig, LLP

  200 Park Avenue

  New York, NY 10166

  Attention: Robert J. Ivanhoe, Esq.

  Telephone: 212-801-9333

  Facsimile: 212-801-6400

  E-mail: ivanhoer@gtlaw.com

  
	
   

  	
   

  	
   

  	
   

  
	
  Seller: 

  	
  c/o iStar Financial Inc.

  	
  Copies to:

  	
  iStar
  Financial Inc.

  
	
   

  	
  1114
  Avenue of the Americas

  	
   

  	
  1114
  Avenue of the Americas

  
	
   

  	
  New
  York, NY 10036

  	
   

  	
  New
  York, NY 10036

  

 

7

 

	
   

  	
  Attention:

  	
  Samantha
  Garbus

  	
   

  	
  Attn:
  Mary-Beth Roselle, Esq.

  
	
   

  	
  Telephone:

  	
  212-930-9407

  	
   

  	
  Telephone:
  212-930-9481

  
	
   

  	
  Facsimile:

  	
  212-930-9494

  	
   

  	
  Facsimile: 212-930-9494

  
	
   

  	
  E-mail:

  	
  sgarbus@istarfinancial.com

  	
   

  	
  E-mail: mroselle@istarfinancial.com

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  iStar
  Asset Services Inc.

  180 Glastonbury Boulevard

  Glastonbury, CT 06033

  Attn: President

  Telephone: 860-815-5910

  Facsimile: 860-815-5901

  E-mail: brubin@istarfinancial.com

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Katten
  Muchin Rosenman LLP

  525 West Monroe St.

  Chicago, IL 60661-3693

  Attn: Gregory P.L. Pierce, Esq.

  Phone: 312-902-5541

  Fax: 312-577-8893

  Email: greg.pierce@kattenlaw.com

  

 

ARTICLE 2

PARTNERSHIP INTERESTS

 

2.1           Partnership Interests.  Subject to the terms and conditions of this
Agreement, Seller agrees to sell to Purchaser, and Purchaser agrees to purchase
from Seller, the Partnership Interests.

 

ARTICLE 3

EARNEST MONEY

 

Purchaser
and Seller acknowledge and agree (i) that Purchaser has deposited with
Escrow Agent Earnest Money (as defined in the Portfolio Purchase and Sale
Agreement) in the amount of $46,200,000.00, (ii) that a portion of the
Earnest Money equal to the Partnership Interests Earnest Money is allocated to
the purchase and sale of the Partnership Interests pursuant to this Agreement,
and (iii) the Earnest Money, including the Partnership Interests Earnest
Money, shall be held and disbursed by Escrow Agent pursuant to, and in
accordance with, the terms and provisions of the Portfolio Purchase and Sale
Agreement.  “Partnership Interests
Earnest Money” means the product of (1) the Earnest Money and (2) the
ratio of (A) the Purchase Price hereunder to (B) the sum of the (x) Purchase
Price hereunder, (y) the Purchase Price under the Portfolio Purchase and
Sale Agreement and (z) the Purchase Price under the CTL Reston Member
Interest Purchase and Sale Agreement

 

8

 

ARTICLE 4

DUE DILIGENCE

 

4.1           Due Diligence Materials To Be Delivered.  Seller has delivered to Purchaser complete
(to Seller’s knowledge) copies of, or made electronic copies available to
Purchaser on Seller’s iPortal internet site relating to the Property and
Partnership Interests (“iPortal”), the
following (the “Property Information,”  or the  “Property Documents”):

 

4.1.1        Rent Roll.  A current rent roll in Seller’s standard form
(“Rent Roll”) for the Property;

 

4.1.2        Financial Information.  Operating statements and summaries of capital
expenditures pertaining to the Property during the Seller’s Ownership Period
(collectively, “Operating Statements”);

 

4.1.3        Environmental Reports.  A copy of any environmental reports or
environmental site assessments related to the Property prepared for the benefit
of Seller or the Subsidiary, it being acknowledged by Purchaser that Purchaser
shall not be entitled to rely thereon absent an express reliance letter from
the company issuing such environmental reports or environmental site
assessments obtained by Purchaser at Purchaser’s sole cost and expense;

 

4.1.4        Tax Statements. Ad valorem tax
statements relating to the Property for Seller’s Ownership Period;

 

4.1.5        Survey.  A copy of the most current survey, if any, of
the Property in Seller’s possession (the “Survey”);

 

4.1.6        Service Contracts.  Copies of any Service Contracts for the
Property;

 

4.1.7        Personal Property.  A list of Tangible Personal Property for the
Property;

 

4.1.8        License Agreements.  Copies of any License Agreements for the
Property;

 

4.1.9        Lease Files.  The lease file for the Leases affecting the
Property, including, without limitation, the Leases, any amendments thereto,
the Guaranties (if applicable), any amendments thereto, any letter agreements,
any assignments which are then in effect and any letters of credit which are
then in effect (collectively, the “Lease
Files”);

 

4.1.10      Maintenance Records and Warranties.  Maintenance work orders for the Property for
the 12 months preceding the Effective Date and warranties for the Property, if
any, on roofs, air conditioning units, fixtures and equipment;

 

4.1.11      Plans and Specifications.  Building plans and specifications relating to
the Property, if any;

 

4.1.12      Licenses, Permits and Certificates of Occupancy.  Licenses, permits and
certificates of occupancy relating to the Property and umbrella policies
related thereto;

 

9

 

4.1.13      Insurance Certificates.
Copies of certificates evidencing the existing liability and casualty insurance
coverage for the Property maintained by the Subsidiary and other affiliates of
Seller;

 

4.1.14      Intentionally Deleted;

 

4.1.15      Organizational Documents.  The Subsidiary Agreement, all related
articles, charters, certificates of formation, and registrations and minutes,
and any amendments and modifications thereto;

 

4.1.16      Books and Records.  The Books and Records; and

 

4.1.17      Financial Statements.
Unaudited financial statements and reports of the Subsidiary in such form as
compiled by Seller or the Subsidiary during Seller’s Ownership Period
(collectively, the “Financial Statements”).

 

Except
for the Rent Roll contemplated in Section 4.1.1, Seller’s obligation to
deliver the items listed in this Section 4.1 shall be limited to the extent
such items are in the possession of Seller or the Subsidiary.

 

4.2           Physical Due Diligence.  As of the Effective Date, Purchaser
acknowledges and agrees that Purchaser has conducted such inspections and tests
of the Property, including surveys and architectural, engineering, geotechnical
and environmental inspections and tests, as Purchaser has deemed necessary to
satisfy itself as to the condition of the Property.  Commencing on the Effective Date and
continuing until the Closing, subject to the terms of the Leases, Purchaser
shall have reasonable access to the Property at all reasonable times during
normal business hours, upon appropriate notice to tenants as permitted or
required under the Leases, for the purpose of conducting such additional
reasonably necessary tests, including surveys and architectural, engineering,
geotechnical and environmental inspections and tests, provided that (a) Purchaser
must give Seller the greater of (i) two (2) full Business Days’  or (ii) the minimum notice period required by the
applicable Leases for the Property, written notice of any such inspection or
test, and with respect to any intrusive inspection or test (i.e., core
sampling) must obtain Seller’s prior written consent (which consent shall not
be unreasonably withheld or conditioned), (b) prior to performing any
inspection or test, Purchaser must deliver a certificate of insurance to Seller
evidencing that Purchaser and its contractors, agents and representatives have
in place (and Purchaser and its contractors, agents and representatives shall
maintain during the pendency of this Agreement) (1) commercial general
liability insurance with limits of at least One Million Dollars ($1,000,000)
per occurrence and Two Million Dollars ($2,000,000) in the aggregate for bodily
injury or death and property damage insurance including coverage for
contractual liability and personal and advertising injury with respect to
Purchaser’s obligations hereunder, and (2) workers’ compensation and
employers’ liability insurance with limits of at least $100,000 each accident,
$100,000 each employee and $500,000 policy limit, all covering any accident
arising in connection with the presence of Purchaser, its contractors, agents
and representatives on the Property, which insurance, except for workers’
compensation and employers’ liability, shall (A) name as additional
insureds thereunder Seller, the Subsidiary and such other parties holding
insurable interests as Seller may designate and (B) be written by a
reputable insurance company having a rating of at least “A+:VII” by Best’s
Rating Guide (or a

 

10

 

comparable rating by a successor rating service),
and (C) otherwise be subject to Seller’s prior approval, which approval
shall not be unreasonably withheld, conditioned or delayed, and (c) all
such tests shall be conducted by Purchaser in compliance with Purchaser’s
responsibilities set forth in Section 4.9 below.  The requirement to carry the insurance
specified in the preceding sentence may be satisfied through blanket or
umbrella insurance policies carried by Purchaser or its affiliates.  Purchaser shall bear the cost of all such
inspections or tests and shall be responsible for and act as the generator with
respect to any wastes generated by those tests, which obligation shall survive
the termination of this Agreement. 
Subject to the provisions of Section 4.7 hereof, Purchaser or
Purchaser’s representatives may communicate with any Seller-designated tenant
representative; provided, however, Purchaser must contact Seller at least three
(3) full Business Days in advance by telephone to inform Seller of
Purchaser’s intended communication with any Seller-designated tenant
representative and allow Seller the opportunity to participate in such
communication if Seller desires.  No
assurance or guaranty is afforded by Seller that any Seller-designated tenant
representative will communicate with Purchaser or Purchaser’s
representatives.  Subject to the
provisions of Section 4.7 and 4.10 hereof, Purchaser or Purchaser’s
representatives may, without Seller’s consent or participation, communicate
with any governmental authority for the sole purpose of gathering information
regarding current zoning compliance of the Real Property and current
entitlements with respect to the Real Property in connection with the
transaction contemplated by this Agreement. 
Other than as set forth in the previous sentence, Purchaser must contact
Seller at least three (3) full Business Days in advance by telephone to
inform Seller of Purchaser’s intended communication with any governmental
authority and to allow Seller the opportunity to participate in such
communication if Seller desires.  As used
in this Section 4.2, “communicate” and “communication” shall mean the
initiation of, response to, or sharing or exchange of information, knowledge or
messages, whether by oral, written or electronic methods or media, or by any
other means in person or otherwise, and includes requests for inspections or
other access to the Property.

 

4.3           Due Diligence/Financing Contingency Termination Rights.

 

4.3.1          Purchaser acknowledges and agrees that as of the Effective Date Purchaser
has received or had access to all Property Documents (as defined herein and in
the Other Purchase and Sale Agreements) and has conducted all inspections and
tests of the Property, the Acquired Properties and the Other Real Property that
it considers important.

 

4.3.2        Purchaser
intends to obtain financing for the transactions contemplated by this Agreement
and the Other Purchase and Sale Agreements from (i) Fixed Rate Lender,
Floating Rate Lender and Harborside Lender pursuant to the terms of the Fixed
Rate Loan Term Sheet, the Floating Rate Loan Term Sheet and the Harborside Term
Sheet, respectively, copies of which have been delivered to iStar and Seller,
and (ii) iStar in the form of the Mezzanine Loan.  iStar has agreed to provide the Mezzanine
Loan on and subject to the terms and conditions of Section 4.3.2 of the
Portfolio Purchase and Sale Agreement and Schedule 4.3.2 attached thereto.
Capitalized terms used in this Section 4.3.2 and not defined in this
Agreement shall have the meanings ascribed to such terms in the Portfolio
Purchase and Sale Agreement.

 

4.4           Updated Property Information.  From the Effective Date through the Closing
Date, if and to the extent that Seller or the Subsidiary receives from an
unaffiliated third-party any additional Property Information not previously
provided to Purchaser, or if and to the extent

 

11

 

that Seller or the Subsidiary receive any document,
notice or correspondence from an unaffiliated third-party or otherwise obtains
actual knowledge from an unaffiliated third-party source of a condition arising
after the Effective Date that would render any of the representations and
warranties of Seller in Section 9.1 untrue if and to the extent remade
after the Effective Date, Seller shall promptly so notify Purchaser and shall
make electronic copies of all such documents, notices, correspondence or other
information in Seller’s or the Subsidiary’s possession (“Updated
Property Information”) available to Purchaser on iPortal. Updated
Property Information may include any information disclosed in the Tenant
Estoppel Certificate, but such updated information shall remain subject to
Purchaser’s rights pursuant to Section 7.2.1(1) and 7.2.3.  The representations and warranties of Seller
in Section 9.1 shall be deemed amended to reflect such Updated Property
Information, provided that if the amendment or deemed amendment of any
representation or warranty reflects a fact or circumstance that would trigger a
termination, extension or other right of Purchaser under this Agreement, the
amendment or deemed amendment of any representation or warranty to reflect such
fact or circumstance shall not vitiate such right of Purchaser.

 

4.5           Return of Documents and Reports.  As additional consideration for the
transaction contemplated herein, if Purchaser terminates this Agreement,
Purchaser shall provide to Seller, if requested by Seller, promptly following
the receipt of notice from Seller after the termination of this Agreement,
copies of all “Reports”.  “Reports”“ mean (a) written third-party reports, tests,
investigations and studies that pertain to contamination of, or environmental
concerns regarding, the Property delivered to Purchaser or its affiliates, and (b) all
other written third party reports, investigations and studies, other than
economic analyses in each case under (a) and (b) prepared for
Purchaser in connection with its due diligence review of the Property,
including, without limitation, any and all Reports involving structural or
geological conditions, environmental, hazardous waste or hazardous substances
contamination of the Property, if any. 
The Reports shall not include any documents, materials or information
which are subject to attorney/client, work product or similar privilege, which
constitute attorney communications with respect to the Property and/or
Purchaser, or which are subject to a confidentiality agreement.  The Reports shall be delivered to Seller at
no cost to Seller and without any representation or warranty as to the
completeness or accuracy of the Reports or any other matter relating thereto.  Purchaser’s obligation to deliver the Reports
to Seller shall survive the termination of this Agreement.

 

4.6           Service Contracts.  On or prior to the Closing Date, Purchaser
will advise Seller in writing which Service Contracts Purchaser requests that
Seller or the Subsidiary terminate at or prior to Closing, provided Seller and
the Subsidiary shall have no obligation to terminate any Service Contracts
which by their terms cannot be terminated without penalty or payment of a fee
(unless Purchaser agrees in writing to pay such fee).  Seller shall deliver at Closing notices of
termination of all Service Contracts that Purchaser so directs.  The Subsidiary shall from and after the
Closing Date continue to be bound by those Service Contracts (a) that
Purchaser has elected not to have Seller or the Subsidiary terminate, and (b) for
which a termination notice is delivered as of or prior to Closing but for which
termination is not effective until after Closing.

 

4.7           Proprietary Information; Confidentiality.  Purchaser agrees that it is bound by the
Confidentiality Agreement as if it were a party thereto, and the
Confidentiality Agreement remains in full force and effect. Notwithstanding
anything to the contrary set forth in the

 

12

 

Confidentiality Agreement, (a) each party
acknowledges that the other party shall be allowed to disclose the existence of
this Agreement and the contents thereof in order to comply with certain
disclosure requirements relating to public companies and their affiliates and (b) Purchaser
shall be allowed to disclose the existence of this Agreement, and deliver the
Property Information and Updated Property Information, to third parties in
connection with such third parties’ potential acquisition from Purchaser of the
Partnership Interests, the Property or interests therein after the Closing Date
so long as such third parties have agreed in writing to be bound by the terms
of the Confidentiality Agreement prior to Purchaser’s disclosure of the
existence of this Agreement, and delivery of the Property Information and
Updated Property Information, to such third parties. The parties shall
coordinate, in advance, with respect to any such public filings and/or press
releases.  After the Closing there shall
be no restriction as between Purchaser, on the one hand, and Seller and the
Subsidiary, on the other hand, on Purchaser’s disclosure of Property
Information or Updated Property Information.

 

4.8           No Representation or Warranty by Seller.  Purchaser acknowledges that, except as
expressly set forth in this Agreement, Seller has not made and does not make
any warranty or representation regarding the truth, accuracy or completeness of
the Property Documents, the Updated Property Information or the source(s) thereof.  Purchaser further acknowledges that some if
not all of the Property Documents and Updated Property Information were
prepared by third parties other than Seller and the Subsidiary.  Except as expressly set forth in this
Agreement or in any of the documents delivered at the Closing, (a) Seller
expressly disclaims any and all liability for representations or warranties,
express or implied, statements of fact and other matters contained in such
information, or for omissions from the Property Documents or Updated Property
Information, or in any other written or oral communications transmitted or made
available to Purchaser, (b) Purchaser shall rely solely upon its own
investigation with respect to the Partnership Interests and the Property,
including, without limitation, their physical, environmental or economic
condition, compliance or lack of compliance with any ordinance, order, permit
or regulation or any other attribute or matter relating thereto, and (c) Seller
and the Subsidiary have not undertaken any independent investigation as to the
truth, accuracy or completeness of the Property Documents and Updated Property
Information and are providing the Property Documents and Updated Property
Information solely as an accommodation to Purchaser.

 

4.9           Purchaser’s Responsibilities.  In conducting any inspections, investigations
or tests of the Property, Property Documents and/or Updated Property
Information, Purchaser and its agents and representatives shall:  (a) not disturb the tenants or interfere
with their use of the Property pursuant to their respective Leases; (b) not
interfere with the operation and maintenance of the Property; (c) not
damage any part of the Property or any personal property owned or held by any
tenant or any third party; (d) not injure or otherwise cause bodily harm
to Seller or its agents, guests, invitees, contractors and employees or any
tenants or their agents, guests, invitees, contractors and employees; (e) comply
with all applicable laws; (f) promptly pay when due the costs of all
tests, investigations, and examinations done with regard to the Property; (g) not
permit any liens to attach to the Real Property by reason of the exercise of
its rights hereunder; (h) subject to the provisions of Section 4.10,
repair any damage to the Real Property resulting directly or indirectly from
any such inspection or tests; and (i) not reveal or disclose prior to
Closing any information obtained during the Inspection Period (as defined in
the Portfolio Purchase and Sale Agreement) concerning the Property, the
Property Documents and 

 

13

 

the Updated Property Information to anyone other
than the Permitted Recipients (as defined in the Confidentiality Agreement), in
accordance with the confidentiality standards set forth in Section 4.7
above, or except as may be otherwise required by law.  Purchaser’s obligations under this Section 4.9
shall survive the termination of this Agreement.

 

4.10         Purchaser’s Agreement to Indemnify.  Purchaser hereby agrees to indemnify, defend
and hold Seller and the Subsidiary harmless from and against any and all liens,
claims, causes of action, damages, liabilities and expenses (including
reasonable attorneys’ fees) arising out of Purchaser’s inspections or tests
permitted under this Agreement or any violation of the provisions of Sections
4.2, 4.7, and 4.9; provided, however, the indemnity shall not protect Seller
and the Subsidiary from any liabilities for matters merely discovered by
Purchaser (i.e., environmental contamination) so long as Purchaser’s actions do
not aggravate any pre-existing liability of Seller and the Subsidiary it being
agreed by Purchaser and Seller that the mere discovery by Purchaser of such
matters shall not constitute an aggravation of any pre-existing liability of
Seller and the Subsidiary.  Purchaser
also hereby agrees to indemnify, defend and hold any tenant harmless from and
against any and all claims, causes of action, damages, liabilities and expenses
which such tenant may suffer or incur due to Purchaser’s breach of its
obligation under Sections 4.7 and 4.9 above to maintain the confidential nature
of any Property Documents, Updated Property Information or other information
relative to such tenant.  Purchaser’s
obligations under this Section 4.10 shall survive the termination of this
Agreement and shall survive the Closing.

 

ARTICLE 5

TITLE AND SURVEY

 

5.1           Title Commitment.  Purchaser acknowledges that a copy of a
current commitment for title insurance or a preliminary title report with
respect to the Property, together with copies of all documents of record
referred to therein (the “Title Commitment”)
issued by First American on an ALTA 2006 Owner’s Form or state promulgated
form has been delivered or made available to Purchaser.

 

5.2           Updated Survey.  Purchaser has arranged, at Seller’s expense,
for the preparation of a new survey or the revision, modification, or
re-certification of the existing Survey as necessary in order for First
American to delete the survey exception from the Title Policy.

 

5.3           Title Review. 
Seller shall have no obligation to cure title objections except liens of
an ascertainable amount created by, under or through Seller or the Subsidiary,
or assumed by Seller or the Subsidiary, which liens Seller shall cause to be
released at or prior to Closing (with Seller having the right to apply the
Purchase Price or a portion thereof for such purpose), and Seller or the
Subsidiary shall deliver the Property free and clear of any such liens;
provided, however, that the foregoing requirement to discharge liens shall not
apply to liens on any tenant’s  leasehold
estate.  Seller further agrees to remove
any exceptions or encumbrances to title which are voluntarily created by, under
or through Seller or the Subsidiary after the Effective Date without Purchaser’s
consent (if requested, such consent shall not be unreasonably withheld or
delayed).  The term “Permitted
Exceptions”“ shall mean the exceptions to title set forth in the Pro
Forma Policy (as defined in the Portfolio Purchase and Sale Agreement) as
updated by

 

14

 

the Title Company as a result of (i) any
actions taken by Seller which are expressly permitted by the terms of this
Agreement or (ii) any acts or failure to act taken by Purchaser.

 

5.4           Delivery of Title Policy and Non-Imputation Endorsement at Closing.  The parties acknowledge that First American
Title Insurance Company, National Commercial Services — Chicago (“First American”) and Fidelity Title Insurance Company (“Fidelity”) constitute the Title Company. First American shall
act as the lead Title Company and underwriter and shall issue the Title Policy
and the Non-Imputation Endorsement; provided, however, that Purchaser may
obtain co-insurance from Fidelity in the amount of up to fifty percent (50%) of
the Purchase Price of the Property in the form of a co-insurance endorsement (“Co-Insurance”) so long as (i) the cost of such
Co-Insurance does not increase the total cost of title insurance that Seller
would otherwise pay to First American if First American were insuring the full
Purchase Price unless Purchaser pays for such increased cost of title insurance
and (ii) the issuance of such Co-Insurance does not delay the Closing.
Purchaser, at Purchaser’s sole cost and expense, may obtain re-insurance with
respect to the Title Policy from such third parties as Purchaser may elect so
long as obtaining such re-insurance does not delay the Closing. In the event
that the Title Company does not issue at Closing, or unconditionally commit at
Closing to issue, to Purchaser, (i) an owner’s title insurance policy and
Co-Insurance in accordance with the Title Commitment with Extended Coverage,
insuring the Subsidiary’s title interest in the Real Property in the amount of
the Purchase Price, subject only to the exclusions from coverage contained in
the policy and the Permitted Exceptions (the “Title Policy”)
and (ii) a non-imputation endorsement with respect to the conveyance of
the Partnership Interests in the form approved for issuance in the State of
Virgina (the “Non-Imputation Endorsement”),
Purchaser shall have the right, subject to the limitations of Sections 7.2.1(4) and
7.2.2(9), to terminate this Agreement, in which case the parties hereto shall
have no further rights or obligations, other than those that by their terms
survive the termination of this Agreement; provided, however, if either Title
Company alone is willing to deliver the Title Policy in the amount of the
Purchase Price and the Non-Imputation Endorsement, Purchaser agrees to accept
such Title Policy and Non-Imputation Endorsement and Purchaser shall have no
right to terminate this Agreement.

 

ARTICLE 6

OPERATIONS AND RISK OF LOSS

 

6.1           Ongoing Operations.  From the Effective Date through Closing:

 

6.1.1        Leases, Service Contracts and License Agreements.  Seller will cause the Subsidiary
to perform their material obligations under the Leases, Service Contracts and
License Agreements unless the Subsidiary are excused from performing such
obligations pursuant to such Leases, Services Contracts and License Agreements.

 

6.1.2        New Contracts.  Except as provided in Section 6.1.4,
Seller will not cause the Subsidiary to enter into any contract that will be an
obligation affecting the Property subsequent to the Closing, except contracts
entered into in the ordinary course of business that are terminable without
cause and without the payment of any termination penalty on not more than 30
days’ prior notice.

 

15

 

6.1.3        Maintenance of Improvements; Removal of Personal Property.  Subject to Sections 6.2  and 6.3, Seller shall cause the Subsidiary
to maintain or cause the Subsidiary to use reasonable efforts to cause the
tenants under the Leases to maintain all Improvements substantially in their
present condition (ordinary wear and tear and casualty excepted) and in a
manner consistent with the Subsidiary’s maintenance of the Improvements during
the Subsidiary’s period of ownership. 
Seller will cause the Subsidiary not to remove any Tangible Personal
Property except as may be required for necessary repair or replacement or with
respect to items that, in Seller’s judgment are obsolete, and replacement shall
be of approximately equal quality and quantity as the removed item of Tangible
Personal Property.

 

6.1.4        Leasing; License Agreements.  Seller will cause the Subsidiary not to (i) amend
or terminate any existing Lease or License Agreement, (ii) consent to the
assignment of any Lease or License Agreement, (iii) enter into any new
Lease or new License Agreement, (iv) grant their consent, to the extent
the Subsidiary’s consent is required, to a sublease of the Property, a
modification of a sublease, an assignment of a sublease or other item for which
a consent is required under any Lease or License Agreement or (v) grant an
acknowledgement with respect to a sublease of the Property, a modification of a
sublease or an assignment of a sublease (the foregoing items (i), (ii), (iii), (iv) and
(v) are each referred to herein as, a “Lease
Event”) after the Effective Date and prior to the Closing Date without
first (a) providing Purchaser all relevant supporting documentation, as
reasonably determined by Seller, including, without limitation, financial
information for the assignee, tenant, subtenant and any guarantor to the extent
in Seller’s or the Subsidiary’s possession, and (b) obtaining Purchaser’s
approval of such Lease Event.  Purchaser
shall be held to the same standard for approval as Seller or the Subsidiary, as
applicable, are held to in the document giving rise to such approval, consent,
or acknowledgement right, and Purchaser agrees to give Seller written notice of
its approval or disapproval of a proposed Lease Event within three (3) Business
Days after Purchaser’s receipt of the items in Section 6.1.4(a) and Section 6.1.4(b).  If Purchaser does not respond to Seller’s
request within such time period, then Purchaser will be deemed to have approved
such Lease Event. So long as Purchaser has complied with the standard for
review described above, Purchaser may withhold its approval in its reasonable
discretion, and Seller will cause the Subsidiary not to execute or grant such
Lease Event without Purchaser’s written approval.

 

Seller
shall cause the Subsidiary not to apply any tenant or licensee security
deposits on account of any alleged default by any tenant or licensee unless the
Subsidiary has terminated the applicable Lease or License Agreement and
obtained possession of the demised or licensed premises.  All tenant and licensee security deposits
collected and not applied by the Subsidiary as of the Effective Date are set
forth on Schedule 6.1.4.

 

6.1.5          Insurance.  Seller will cause the Subsidiary not to
terminate or allow any insurance maintained by the Subsidiary with respect to
the Property or any umbrella coverage insurance carried by any affiliate of
Seller which insures the Property to lapse unless replaced by equivalent
coverage. Upon the Effective Date, Seller shall cause the Subsidiary and Seller’s
affiliates to name Purchaser as an additional insured on all insurance
maintained by the Subsidiary with respect to the Property and on all umbrella
insurance coverage carried by any affiliate of Seller which insures the
Property.

 

16

 

6.1.6          No Amendment.  After the Effective Date, Seller shall not,
and Seller shall not permit the Subsidiary, to amend the Subsidiary Agreement.

 

6.1.7          No Merger. Seller shall not permit
the Subsidiary to merge or consolidate with or agree to merge or consolidate
with, or purchase or agree to purchase all or substantially all of the assets
of, or otherwise acquire, any corporation, partnership or other business
organization.

 

6.1.8          Partnership Interests.  Seller shall not permit the Subsidiary to
authorize for issuance, issue, sell or delivery any additional partnership
interests in the Subsidiary or grant any option, warrant or other right to
purchase any such partnership interests. Seller shall not permit the Subsidiary
to split, combine or reclassify any of the partnership interests in the
Subsidiary.

 

6.1.9          Debt.  Seller shall not permit the Subsidiary to
incur or become subject to, nor agree to incur, any debt for borrowed money,
guaranty any indebtedness, or incur any liabilities other than and specifically
excluding liabilities incurred in the ordinary course of business related to
the ownership and management of the Property.

 

6.1.10        Conditions and Obligations.
To the extent performance of any obligation of Seller under this Agreement or
the satisfaction of any condition of Purchaser’s obligation to close requires
the performance of the Subsidiary, Seller shall cause the applicable
Subsidiary, as the case may be, to perform or satisfy same.

 

6.2           Casualty.  If after
the Effective Date and prior to the Closing the Property is damaged by fire or
other casualty (a “Casualty”),
Seller shall, promptly upon Seller or the Subsidiary receiving actual knowledge
thereof, notify Purchaser of the same. 
If, as a result of such Casualty, Northrop is entitled to and elects to
terminate its Lease with respect to the Property (a “Casualty
Tenant Termination Event”), then Seller shall promptly upon Seller
or the Subsidiary receiving notice of such Casualty Tenant Termination Event
notify Purchaser of the same (a “Casualty Tenant
Termination Notice”). Within five (5) days after receipt of the
Casualty Tenant Termination Notice (but in no event later than the Closing
Date), Purchaser shall notify Seller in writing of Purchaser’s election to
either (i) subject to the limitations of Section 7.2.1(4) and
7.2.2(9), terminate this Agreement, in which case the parties hereto shall have
no further rights or obligations hereunder, except for rights and obligations
which, by their terms, survive the termination hereof, or (ii) to acquire
the Partnership Interests notwithstanding the Casualty Tenant Termination
Event. If (i) Purchaser elects to acquire the Partnership Interests
notwithstanding the Casualty Tenant Termination Event or fails to terminate
this Agreement with respect to the Partnership Interests within such five (5) day
period, or (ii) such Casualty does not give rise to a Casualty Tenant
Termination Event, then Purchaser shall proceed to Closing, and as of Closing, (1) Seller
shall provide written confirmation that any resulting insurance proceeds
(including any rent loss insurance and rent abatement insurance applicable to
any period beginning with the Closing Date) due the Subsidiary or an affiliate
of Seller as a result of such Casualty will be available after Closing to the
Subsidiary to effectuate the needed repairs, (2) the Subsidiary shall
maintain full responsibility for all needed repairs (subject to the terms of
the Lease with respect to any rights of Northrop), and (3) Purchaser shall
receive a credit at Closing for any deductible amount under such insurance
policies to the extent not payable by Northrop.

 

17

 

Notwithstanding anything contained herein to the
contrary, if a Casualty shall occur to the Property and, as a result of such
Casualty, the lender providing the Fixed Rate Loan or the Floating Rate Loan
will not close the Fixed Rate Loan or the Floating Rate Loan, as applicable,
with respect to such Property, then, subject to the limitations of Sections
7.2.1(4) and 7.2.2(9), this Agreement shall automatically terminate, in
which case the parties hereto shall have no further right or obligations
hereunder, except for rights and obligations which, by their terms, survive the
termination hereof.

 

6.3           Condemnation. If after the Effective Date and prior to the Closing Seller or the
Subsidiary receives notice of, or proceedings are instituted for, eminent
domain with respect to the Property or any portion thereof (a “Condemnation”), Seller shall, promptly upon Seller or the
Subsidiary receiving actual knowledge thereof, notify Purchaser of the
same.  If, as a result of such
Condemnation, Northrop is entitled to and elects to terminate its Lease with
respect to such Condemnation (a “Condemnation Tenant
Termination Event”), then Seller shall promptly upon Seller or any
Affiliate receiving notice of such Condemnation Tenant Termination Event notify
Purchaser of the same (a “Condemnation Tenant
Termination Notice”). Within five (5) days after receipt of the
Condemnation Tenant Termination Notice (but in no event later than the Closing
Date), Purchaser shall notify Seller in writing of Purchaser’s election to
either (i) subject to the limitations of Section 7.2.1(4) and
7.2.2(9), terminate this Agreement, in which case the parties hereto shall have
no further rights or obligations hereunder, except for rights and obligations
which, by their terms, survive the termination hereof, or (ii) to acquire
the Partnership Interests notwithstanding the Condemnation Tenant Termination
Event. If (i) Purchaser elects to acquire the Partnership Interests
notwithstanding the Condemnation Tenant Termination Event or fails to terminate
this Agreement with respect to the Partnership Interests within such five (5) day
period, or (ii) such Condemnation does not give rise to a Condemnation
Tenant Termination Event, then Purchaser shall proceed to Closing, and as of
Closing, the Subsidiary shall maintain the right to negotiate and otherwise
deal with the condemning authority in respect of such Condemnation (subject to
the terms of the Lease with respect to any rights of Northrop). Notwithstanding
anything contained herein to the contrary, if a Condemnation shall occur to any
Property and, as a result of such Condemnation, the lender providing the Fixed
Rate Loan or the Floating Rate Loan will not close the Fixed Rate Loan or the
Floating Rate Loan, as applicable, with respect to such Property, then, subject
to the limitations of Sections 7.2.1(4) and 7.2.2(9), this Agreement shall
automatically terminate, in which case the parties hereto shall have no further
right or obligations hereunder, except for rights and obligations which, by
their terms, survive the termination hereof.

 

6.4           Tenant Estoppel Certificate/SNDA.

 

6.4.1        Purchaser
and Seller acknowledge and agree that as of the Effective Date, Seller, on
behalf of the Subsidiary, has sent Northrop (with a copy to Purchaser) a
request for an estoppel certificate in the form approved by Purchaser (such
estoppel certificate is referred to herein as the “Tenant Estoppel Certificate”). 
Purchaser acknowledges that it has approved the form of the Tenant
Estoppel Certificate sent to Northrop as of the Effective Date.  Seller and the Subsidiary shall not be obligated
to expend any funds in connection with obtaining the Tenant Estoppel
Certificate, declare any default under the Northrop Lease or commence any legal
action for enforcement of the Northrop Lease in order to obtain such Tenant
Estoppel Certificate. Seller and the Subsidiary shall copy Purchaser on the
initial correspondence soliciting the Tenant

 

18

 

Estoppel Certificate and
shall use commercially reasonable efforts to forward to Purchaser any written
communications, including, without limitation, letters, memorandums, e-mails,
comments and conditions, received from Northrop in connection with Northrop’s
execution of the Tenant Estoppel Certificate.

 

6.4.2        Purchaser
and Seller acknowledge and agree that as of the Effective Date, Seller, on
behalf of the Subsidiary, has sent an estoppel certificate addressed to the
party listed on Schedule 6.4.2
(the “Third Party Estoppel Certificate”).  Seller and the Subsidiary shall not be
obligated to expend any funds in connection with obtaining any such Third Party
Estoppel Certificate, declare any default under any agreement or commence any
legal action for enforcement of any agreement in order to obtain any such Third
Party Estoppel Certificate.  Seller shall
copy Purchaser on the initial correspondence soliciting the Third Party
Estoppel Certificate and shall use commercially reasonable efforts to forward
to Purchaser any written communications, including, without limitation,
letters, memorandums, e-mails, comments and conditions, received from the third
parties in connection with the third parties’ execution of the Third Party
Estoppel Certificate.

 

6.4.3        Purchaser
and Seller acknowledge and agree that as of the Effective Date, Seller, on
behalf of the Subsidiary, has sent Northrop (with a copy to Purchaser) a
request for a subordination, non-disturbance and attornment agreement in a form
approved by Fixed Rate Lender and/or the Floating Rate Lender (such
subordination, non-disturbance and attornment agreement is referred to herein
as, an “SNDA”).  Seller and the Subsidiary shall not be
obligated to expend any funds in connection with obtaining the SNDA, declare
any default under the Northrop Lease or commence any legal action for
enforcement of the Northrop Lease in order to obtain the SNDA.  Seller and the Subsidiary shall copy
Purchaser on the initial correspondence soliciting the SNDA and shall use
commercially reasonable efforts to forward to Purchaser any written
communications, including, without limitation, letters, memorandums, e-mails,
comments and conditions, received from any Northrop in connection with Northrop’s
execution of the SNDA.

 

ARTICLE 7

CLOSING

 

7.1           Closing.  The
consummation of the transaction contemplated herein (“Closing”)
shall occur on the Closing Date at the offices of Escrow Agent (or such other
location as may be mutually agreed upon by Seller and Purchaser).  Funds shall be deposited into and held by
Escrow Agent in a closing escrow account with a bank satisfactory to Purchaser
and Seller.  Upon satisfaction or
completion of all closing conditions and deliveries, the parties shall direct
Escrow Agent to immediately record those closing documents which are to be
recorded, and deliver originals or copies of the closing documents to the
appropriate parties and make disbursements according to the closing statements
executed by Seller and Purchaser.

 

7.2           Conditions to Parties’ Obligation to Close.  In addition to all other conditions set forth
herein, the obligation of Seller, on the one hand, and Purchaser, on the other
hand, to consummate the transactions contemplated hereunder are conditioned
upon the following:

 

19

 

7.2.1        Conditions to Seller’s Obligations to Close.

 

(1)           Representations and Warranties.  Purchaser’s representations and warranties contained
herein shall be true and correct in all material respects as of the Effective
Date and the Closing Date;

 

(2)           Deliveries.  As of the Closing Date, Purchaser shall have
tendered all deliveries to be made by Purchaser at Closing;

 

(3)           Actions, Suits, etc.  There shall exist no pending or threatened
actions, suits, arbitrations, claims, attachments, proceedings, assignments for
the benefit of creditors, insolvency, bankruptcy, reorganization or other
proceedings, against Purchaser that would materially and adversely affect
Purchaser’s ability to perform its obligations under this Agreement;

 

(4)           Property. It shall be a condition
to Seller’s obligation to close hereunder that neither (x) this Agreement
shall have been terminated with respect to the Partnership Interests nor (y) the
Other Purchase and Sale Agreements shall have been terminated with respect to
more than two (2) of the Acquired Properties (exclusive of the Partnership
Interests; it being agreed by Purchaser and Seller that a termination of this
Agreement with respect to the Partnership Interests is addressed in the
foregoing clause (x) and that the two (2) Acquired Properties
referenced in the foregoing clause (y) shall not include the Partnership
Interests for purposes of the application of the foregoing clause (y)) (it
being understood that a termination of the Portfolio Purchase and Sale
Agreement with respect to one or more of the separate sites constituting the
Portfolio Properties leased by The Goodyear Tire & Rubber Company
(collectively, the “Goodyear Properties”)
or one or more separate sites constituting the Portfolio Properties leased by
CEVA Freight, LLC (collectively, the “CEVA
Properties”) shall be deemed in both cases to be a termination of
the Portfolio Purchase and Sale Agreement with respect to only one Portfolio
Property notwithstanding the Lease with The Goodyear Tire & Rubber
Company and the Lease with CEVA Freight, LLC cover multiple Portfolio
Properties). For clarification, the parties agree that it is possible for a
closing condition (A) under the Harborside Purchase and Sale Agreement not
to be satisfied (for example, the bankruptcy of Schwab) which would allow
Purchaser not to close and to terminate with respect to the Harborside
Membership Interests but proceed to closing under this Agreement, the Portfolio
Purchase and Sale Agreement and the CTL Reston Member Interest Purchase and
Sale Agreement or (B) under this Agreement not to be satisfied (for
example, the bankruptcy of Northrop) which would allow Purchaser not to close
and to terminate this Agreement with respect to the Partnership Interests and,
as a result of such termination, there would be a failure of a condition to
close under the Other Purchase and Sale Agreements which would allow Other
Sellers to terminate the Other Purchase and Sale Agreements; and

 

(5)           Simultaneous Closing.
It shall be a condition to Seller’s obligation to close hereunder that the
Closing of the transaction contemplated by this

 

20

 

Agreement
occur simultaneously with the closing of the transactions contemplated by the
Other Purchase and Sale Agreements.

 

7.2.2      Conditions to Purchaser’s Obligations to Close.

 

(1)           Representations and Warranties.
Seller’s representations and warranties contained herein shall be true and
correct in all material respects as of the Effective Date and the Closing Date,
subject to the provisions of Sections 4.4 and 9.3.  Notwithstanding Sections 4.4 and 9.3, Seller
and Purchaser acknowledge and agree that Section 7.2.3 shall apply to any
material change in the representations and warranties of Seller due to any
Updated Property Information or changes that that are not a result of a breach
by Seller or any of its covenants;

 

(2)           Deliveries.  As of the Closing Date, Seller shall have
tendered and shall have caused the Subsidiary to have tendered all deliveries
to be made by Seller and the Subsidiary at Closing;

 

(3)           Actions, Suits, etc.  There shall exist no pending or threatened
actions, suits, arbitrations, claims, attachments, proceedings, assignments for
the benefit of creditors, insolvency, bankruptcy, reorganization or other
proceedings, against Seller or the Subsidiary that would materially and
adversely affect Seller’s ability to perform its obligations under this Agreement;

 

(4)           Intentionally Deleted.

 

(5)           Occupancy/Non Bankruptcy.  It shall be a condition to Purchaser’s
obligations to close hereunder that (a) as of the Closing Date, Northrop
shall not have terminated, or given notice of its intent to terminate, its
Lease, except with respect to a Casualty Tenant Termination Event or a
Condemnation Tenant Termination Event and (b) Northrop shall have not
vacated, abandoned or ceased operations at the Real Property, or filed for
voluntary or involuntary bankruptcy or similar protection;

 

(6)           Closing of Fixed Rate Loan, Floating Rate Loan and Mezzanine Loan.  (A) The closing of the
Mezzanine Loan simultaneously with (1) the Closing and (2) the
closing of the Fixed Rate Loan and the Floating Rate Loan and (B) the
closing of the Fixed Rate Loan and the Floating Rate Loan on the Closing Date
(unless the Fixed Rate Loan or the Floating Rate Loan fails to close as a
result of (x) Purchaser’s uncured default under the Fixed Rate Term Sheet
or the Floating Rate Term Sheet, as the case may be, (y) the failure of
one or more conditions to close which are within Purchaser’s reasonable control
to satisfy, or (z) Purchaser’s failure to accept documentation for the
Fixed Rate Loan or the Floating Rate Loan that is commercially reasonable for
such transactions), shall be conditions to Purchaser’s obligation to close
hereunder. Capitalized terms used in this Section 7.2.2(6) and not
defined in this Agreement shall have the meanings ascribed to such terms in the
Portfolio Purchase and Sale Agreement;

 

(7)           Intentionally Deleted;

 

21

 

(8)           Title Policy and Non-Imputation Endorsement. It shall be a condition to Purchaser’s obligations to close hereunder
that the Title Company shall have issued the Title Policy (in the forms of the
Pro Forma Policy as updated by the Title Company as a result of (i) any
actions taken by Seller which are expressly permitted by the terms of this
Agreement or (ii) any acts or failure to act taken by Purchaser; provided,
however, Purchaser and Seller agree that in no event shall the Title Company’s
failure to deliver the Title Policy in the form of the Pro Forma Policy be a
failure of a condition to Purchaser’s obligation to Close if such failure to
issue the Title Policy in the form of the Pro Forma Policy results from the
Title Company not receiving such documents and instruments, which are (i) required
by the Title Company to issue the Title Policy in the forms of the Pro Forma
Policy and (ii) not required to be obtained and delivered by Seller to
Purchaser, the Title Company or otherwise pursuant to the terms of this
Agreement), Co-Insurance and the Non-Imputation Endorsement subject to, and in
accordance with, Section 5.4;

 

(9)           Property. It shall be a condition
to obligation to close hereunder that neither (x) this Agreement shall
have been terminated with respect to the Partnership Interests nor (y) the
Other Purchase and Sale Agreements shall have been terminated with respect to
more than two (2) of the Acquired Properties (exclusive of the Partnership
Interests; it being agreed by Purchaser and Seller that a termination of this
Agreement with respect to the Partnership Interests is addressed in the
foregoing clause (x) and that the two (2) Acquired Properties referenced
in the foregoing clause (y) shall not include the Partnership Interests
for purposes of the application of the foregoing clause (y)) (it being
understood that a termination of the Portfolio Purchase and Sale Agreement with
respect to one or more of the separate sites constituting the Goodyear
Properties or one or more separate sites constituting the CEVA Properties shall
be deemed in both cases to be a termination of the Portfolio Purchase and Sale
Agreement with respect to only one Portfolio Property notwithstanding the Lease
with The Goodyear Tire & Rubber Company and the Lease with CEVA
Freight, LLC cover multiple Portfolio Properties). For clarification, the
parties agree that it is possible for a closing condition (A) under the
Harborside Purchase and Sale Agreement not to be satisfied (for example, the
bankruptcy of Schwab) which would allow Purchaser not to close and to terminate
with respect to the Harborside Membership Interests but proceed to closing
under this Agreement, the Portfolio Purchase and Sale Agreement and the CTL
Reston Member Interest Purchase and Sale Agreement or (B) under this
Agreement not to be satisfied (for example, the bankruptcy of Northrop) which
would allow Purchaser not to close and to terminate this Agreement with respect
to the Partnership Interests and, as a result of such termination, there would
be a failure of a condition to close under the Other Purchase and Sale
Agreements which would allow Other Sellers to terminate the Other Purchase and
Sale Agreements;

 

(10)         Terminations. Terminations of the
officers, directors and managers of the Subsidiary (the “Terminations”), effective immediately as of
the Closing; and

 

22

 

(11)         Simultaneous Closing.
It shall be a condition to Purchaser’s obligation to close hereunder that the
Closing of the transaction contemplated by this Agreement occur simultaneously
with the closing of the transactions contemplated by the Other Purchase and
Sale Agreements.

 

7.2.3        Failure to Satisfy Conditions.  So long as a party is not in default
hereunder, if any condition to such party’s obligation to proceed with the
Closing hereunder has not been satisfied as of the Closing Date (or such
earlier date as is provided herein), subject to any applicable notice and cure
periods provided in Sections 10.1 and 10.2, such party may, in its sole
discretion either (i) subject to the limitations of Sections 7.2.1(4) and
7.2.2(9)), terminate this Agreement in its entirety by delivering written
notice to the other party and Escrow Agent on or before the Closing Date (or
such earlier date as is provided herein) and thereafter the parties hereto
shall have no further rights or obligations hereunder, except for rights and
obligations which, by their terms, survive the termination hereof, or (ii) elect
to close notwithstanding the non-satisfaction of such condition, in which event
such party shall be deemed to have waived any such condition. In the event such
party elects to close, notwithstanding the non-satisfaction of such condition,
said party shall be deemed to have waived said condition, and there shall be no
liability on the part of any other party hereto for breaches of representations
and warranties of which the party electing to close had knowledge at the Closing.

 

7.3           Seller’s Deliveries in Escrow.  As of or prior to the Closing Date, Seller
shall deliver, or shall cause the delivery by the Subsidiary, as applicable, in
escrow to Escrow Agent the following:

 

7.3.1        Assignment.  An Assignment and Assumption of Partnership
Interests in substantially the form of Exhibit B hereto (the “Assignment and Assumption”);

 

7.3.2        Intentionally Deleted;

 

7.3.3        Conveyancing or Transfer Tax Forms or Returns.  Such conveyancing and transfer
tax forms or returns, if any, as are required to be delivered or signed by
Seller by applicable state and local laws in connection with the transfer of
the Partnership Interests;

 

7.3.4        FIRPTAs.  Foreign Investment in Real Property Tax Act
affidavits in the forms of Exhibit D hereto executed by iStar;

 

7.3.5        Authority. Evidence of the
existence and authority of Seller and the Subsidiary of the authority of the
persons executing documents on behalf of Seller and the Subsidiary reasonably
satisfactory to First American;

 

7.3.6        Title Affidavits.  A title affidavit in form reasonably required
by First American as to the rights of tenants in occupancy, the status of
mechanics’ liens and “gap” indemnities, and such other matters as the First
American may reasonably require in order to issue the Title Policy and the
Non-Imputation Endorsement (collectively, the “Title Affidavits”);

 

7.3.7        Additional Documents.  Any additional documents that First American
may reasonably require for the proper consummation of the transaction
contemplated by this Agreement (provided, however, no such additional document
shall expand any obligation, 

 

23

 

covenant,
representation or warranty of Seller or the Subsidiary or result in any new or
additional obligation, covenant, representation or warranty of Seller under
this Agreement beyond those expressly set forth in this Agreement);

 

7.3.8        Tenant Estoppel Certificate.  If received by Seller, the Tenant Estoppel
Certificate, it being agreed that the failure of Seller to obtain the Tenant
Estoppel Certificate shall not (i) be a breach or default by Seller
hereunder, (ii) constitute grounds for Purchaser to delay the Closing or (iii) give
rise to a reduction of the Purchase Price;

 

7.3.9        Third Party Estoppel Certificate.  If received, the Third Party Estoppel
Certificate, it being agreed that the failure of Seller to obtain the Third
Party Estoppel Certificate shall not (i) be a breach or default by Seller
hereunder, (ii) constitute grounds for Purchaser to delay the Closing or (iii) give
rise to a reduction of the Purchase Price;

 

7.3.10      Searches.  A Uniform Commercial Code Search, indicting
that the partnership interests in the Subsidiary are unencumbered by an lien,
encumbrance or other security interest thereon, except for liens, encumbrances
or security interests in favor of GE pursuant to the GE Loan, and federal and
state law searches for Seller and the Subsidiary indicating the absence of any
bankruptcy proceeding, federal or state tax lien, litigation and unsatisfied
judgments;

 

7.3.11      Good Standing Certificates.  A good standing certificate dated within
thirty (30) days of the Closing Date from the Secretary of State of Delaware as
to the good standing of the Subsidiary in the State of Delaware;

 

7.3.12      Insurance Policies.  Copies of all insurance policies maintained
by iStar or Seller on behalf of the Subsidiary;

 

7.3.13      Bringdown Certificate.
A certificate confirming that all of the representations and warranties of
Seller in Section 9.1 are true and accurate as of the Closing Date,
subject to Section 4.4 and the first sentence of Section 9.3;

 

7.3.14      Updated Rent Roll.  A Rent Roll updated to the Closing Date, or
as close as possible;

 

7.3.15      SNDA.  If received by Seller, the SNDA, it being
agreed that the failure of Seller to obtain the SNDA shall not (i) be a
breach or default by Seller hereunder, (ii) constitute grounds for
Purchaser to delay the Closing or (iii) give rise to a reduction of the
Purchase Price;

 

7.3.16      Terminations. The executed
Terminations; and

 

7.3.17      A Past Conduct Certificate.
A Past Conduct Certificate in the form agreed to by Purchaser and Seller and
executed by the Subsidiary; and

 

7.3.18      Partnership Certificates.
The original Certificate of Limited Partnership Interest of the Subsidiary
issued to LP Seller and designated certificate no. 1 together with an executed
original transfer power in blank and the original Certificate of General
Partnership

 

24

 

Interest of the Subsidiary
issued to GP Seller and designated certificate no. 1 together with an executed
original transfer power in blank.

 

7.4           Purchaser’s Deliveries in Escrow.  As of or prior to the Closing Date, Purchaser
shall deliver in escrow to Escrow Agent the following:

 

7.4.1        Assignment and Assumption.
An executed counterpart to the Assignment and Assumption;

 

7.4.2        Intentionally Deleted;

 

7.4.3        Conveyancing or Transfer Tax Forms or Returns.  Such conveyancing or transfer
tax forms or returns, if any, as are required to be delivered or signed by Purchaser
by applicable state and local laws in connection with the transfer of the
Partnership Interests;

 

7.4.4        Authority.  Evidence of the existence, organization and
authority of Purchaser and of the authority of the persons executing documents
on behalf of Purchaser reasonably satisfactory to First American;

 

7.4.5        Additional Documents.  Any additional documents that Seller, Escrow
Agent or First American may reasonably require for the proper consummation of
the transaction contemplated by this Agreement (provided, however, no such
additional document shall expand any obligation, covenant, representation or
warranty of Purchaser or result in any new or additional obligation, covenant,
representation or warranty of Purchaser under this Agreement beyond those
expressly set forth in this Agreement); and

 

7.4.6        Bringdown Certificate.  A certificate confirming that all of the
representations and warranties of Purchaser in Section 9.2 are true and
accurate as of the Closing Date.

 

7.5           Closing Statements.  As of or prior to the Closing Date, Seller
and Purchaser shall deposit with Escrow Agent an executed closing statement
with respect to the adjustments herein in the form required by Escrow
Agent.  Seller shall provide a draft of
the same at least one week prior to the scheduled Closing Date.

 

7.6           Purchase Price.  At or before 3:00 p.m. (Eastern Time) on
the Closing Date, Purchaser shall deliver to Escrow Agent the Purchase Price
plus or minus applicable prorations and any adjustment to the Purchase Price
made in accordance with the terms of this Agreement, in immediate, same-day
U.S. federal funds wired for credit into Escrow Agent’s escrow account, which
funds must be delivered in a manner to permit Escrow Agent to deliver good
funds to Seller or its designee on the Closing Date (and, if requested by
Seller, by wire transfer); in the event that Escrow Agent is unable to deliver
good funds to Seller or its designee prior to 4:00 p.m. (Eastern Time) on
the Closing Date, then the closing statements and related prorations will be
revised as necessary.

 

7.7           Possession.  As
of Closing, there shall be no change in the Subsidiary’s possession of the
Property.

 

25

 

7.8           Delivery of Books and Records.  Within ten (10) Business Days after the
Closing, Seller shall deliver to the offices of Purchaser:  (i) original Lease File; (ii) original
Service Contracts and License Agreements, (iii) to the extent in Seller’s
or the Subsidiary’s possession:  (a) maintenance
records and warranties; (b) plans and specifications; (c) licenses,
permits and certificates of occupancy; (d) copies or originals of all
books and records of account, contracts, and copies of correspondence with tenants
and suppliers; (e) advertising materials; (f) booklets; and (g) keys;
and (iv) the Books and Records.

 

7.9           Notice to Northrop.  Seller and Purchaser shall each execute and
Purchaser shall deliver to Northrop immediately after the Closing, a notice regarding
the sale in substantially the form of Exhibit G hereto, or such
other form as may be required by applicable state law.  This obligation on the part of Purchaser
shall survive the Closing.

 

ARTICLE 8

PRORATIONS, DEPOSITS, COMMISSIONS

 

8.1           Prorations for Taxes.  To the extent tenants are required to pay
real and personal ad valorem taxes (“Taxes”)
directly under their respective Leases, Taxes will not be prorated, and
accordingly, Purchaser shall look solely to the tenants under their respective
Leases for payment of all Taxes. To the extent tenants are not required to pay
Taxes directly under their respective Leases, then the following shall apply
with respect to the proration of Taxes:

 

8.1.1        If
Taxes for the year of Closing are not known or cannot be reasonably estimated,
Taxes shall be prorated based on Taxes for the year prior to Closing;

 

8.1.2        Any
additional Taxes relating to the year of Closing arising out of a change in
ownership shall be assumed by Purchaser effective as of Closing and paid by
Purchaser when due and payable, and Purchaser shall indemnify Seller from and
against any and all such Taxes, which indemnification obligation shall survive
the Closing; and

 

8.1.3        Purchaser
and Seller shall reasonably cooperate to file all tax returns of the Subsidiary
in respect of the tax year in which the Closing shall occur.

 

8.2           Prorations for Tenant-Paid Operating Expenses.  To the extent tenants are
required to pay operating costs and expenses of the Real Property (“Operating Expenses”) directly under their respective Leases,
which Operating Expenses may include, without limitation, fees and assessments;
prepaid expenses; obligations under Service Contracts; any assessments by
private covenant; insurance; utilities; common area maintenance expenses; and
other operating costs and expenses incurred in connection with the ownership,
operation, maintenance and management of the Real Property, Operating Expenses
will not be prorated, and accordingly, Purchaser shall look solely to the
tenants under such Leases for payment of all Operating Expenses.

 

8.3           Prorations for Non-Tenant Paid Items.  To the extent tenants are not required to pay
Operating Expenses or Taxes directly under their respective Leases, but are
required to escrow Operating Expenses or Taxes under their respective Leases
and/or to reimburse their landlord for all or any portion of such Operating
Expenses or Taxes, then the following items shall be prorated as of the Closing
Date with all items of income and expense for the Property

 

26

 

being borne by the Subsidiary for Purchaser’s
account from and after (and including) the Closing Date and Seller’s account
prior to the Closing Date:

 

8.3.1      Utilities.  Purchaser shall take all steps necessary to
post deposits with the utility companies on behalf of the Subsidiary for the
period after the Closing Date. Seller shall ensure that all utility meters are
read as of the Closing Date. Seller shall be entitled to recover any and all
deposits held by any utility company on behalf of the Subsidiary as of the
Closing Date.

 

8.3.2      Tenant Receivables.
Rents due from tenants under Leases and from tenants or licensees under License
Agreements and Operating Expenses and Taxes payable by tenants under Leases and
licenses under License Agreements (collectively, “Tenant Receivables”) and not collected by the Subsidiary as of
Closing shall not be prorated between Seller and Purchaser at Closing but shall
be apportioned on the basis of the period for which the same is payable and if,
as and when collected, as follows:

 

(a)           Tenant Receivables and other income received
from tenants under Leases, and/or tenants or licensees under License Agreements
after Closing shall be applied in the following order of priority:  (1) first, to payment of the current
Tenant Receivables then due for the month in which the Closing Date occurs,
which amount shall be apportioned between Purchaser and Seller as of the
Closing Date as set forth in Section 8.3 hereof (with Seller’s portion thereof
to be delivered to Seller); (2) second, to payment of Tenant Receivables
first coming due after Closing but applicable to the period of time before
Closing, (collectively, “Unbilled Tenant
Receivables”), which amount shall be delivered to Seller; (3) third,
to Tenant Receivables first coming due after Closing and applicable to the
period of time after Closing, which amount shall be retained by the Subsidiary;
and (4) thereafter, to delinquent Tenant Receivables which were due and
payable as of Closing but not collected by the Subsidiary as of Closing
(collectively, “Uncollected Delinquent Tenant
Receivables”), which amount shall be delivered to Seller.  Notwithstanding the foregoing, Seller shall
have the right to pursue on behalf of the Subsidiary the collection of
Uncollected Delinquent Tenant Receivables for a period of six (6) months
after Closing without prejudice to Seller’s rights or Purchaser’s obligations
hereunder, provided, however, Seller shall have no right to cause the
Subsidiary to cause any such tenant or licensee to be evicted or to exercise
any other “landlord” remedy (as set forth in such tenant’s Lease or licensee’s
License Agreement) against such tenant other than to sue for collection.  Any sums received by the Subsidiary to which Seller
is entitled shall be held in trust for Seller on account of such past due rents
payable to the Subsidiary, and Purchaser shall remit to Seller any such sums
received by the Subsidiary to which Seller is entitled within ten (10) Business
Days after receipt thereof less reasonable, actual costs and expenses of
collection, including reasonable attorneys’ fees, court costs and
disbursements, if any.  Seller expressly
agrees that if Seller receives any amounts after the Closing Date which are
attributable, in whole or in part, to any period from and after the Closing
Date, Seller shall hold the same in trust for the Subsidiary and remit to
Purchaser that portion of the monies so received by Seller to which the
Subsidiary are entitled within ten Business Days after receipt thereof.  With respect to Unbilled Tenant Receivables,
Purchaser covenants and agrees to cause the Subsidiary to (A) bill the
same when billable and (B) cooperate with Seller to determine the correct
amount of operating expenses and/or taxes due. 
Seller shall

 

27

 

provide Purchaser with the necessary information to bill the same when
billable and cooperate with Purchaser to maximize collection of the Unbilled
Tenant Receivables.  The provisions of
this Section 8.3.2(a) shall survive the Closing.

 

(b)           Purchaser acknowledges that the Subsidiary as
the landlord under the Leases (and/or as the licensors under the License
Agreements) may be collecting from tenants under the Leases (and/or licensees
under the License Agreements) additional rent relating to Operating Expenses or
Taxes.  To the extent that any such
additional rent is paid by any tenants to the landlord under the Leases (and/or
by any licensees to the licensor under the License Agreements) based on an
estimated payment basis (whether monthly, quarterly, or otherwise) for which a
future reconciliation of actual Operating Expenses or Taxes to estimated
payments of Operating Expenses or Taxes is required to be performed at the end
of a reconciliation period, Purchaser and Seller shall determine prior to the
Closing whether such tenants and/or licensees have, in the aggregate, made an
overpayment or underpayment of additional rent relating to Operating Expenses
or Taxes (such determination to be based on a comparison of reasonable
estimates of actual annual Operating Expenses and Taxes to the estimated
payments being made by such tenants and/or licensees).  If such determination indicates that such
tenants and/or licensees have made an overpayment of additional rent relating
to Operating Expenses or Taxes, Purchaser shall receive a credit toward the
Purchase Price in the amount of such overpayment and the Subsidiary shall
retain all obligations and liabilities relating to such overpayment.  If, however, such determination indicates
that such tenants and/or licensees have made an underpayment of additional rent
relating to Operating Expenses or Taxes, Purchaser shall cause the Subsidiary
to bill the tenants for the same promptly after the Closing and remit the same
to Seller as and when collected.  If such
review indicates that it cannot be determined as of the Closing Date whether a
tenant has overpaid or underpaid its additional rent relating to Operating Expenses
or Taxes, Purchaser shall cause the Subsidiary to bill the tenant for the same
at the end of the reconciliation period, and any overpayment with respect to
the period prior to the Closing Date shall be paid by Seller to Purchaser or
any underpayment with respect to the period prior to the Closing Date, when
received from the tenant, shall be paid by Purchaser to Seller. Notwithstanding
anything contained herein to the contrary, to the extent Purchaser, Seller or
the Subsidiary receives a check or wire transfer from any tenant in the exact
amount of the item payable by such tenant or referencing the item to which the
check or wire transfer relates, such check or wire transfer shall be (i) applied
directly to the applicable item or (ii) if such item was previously paid
by the Subsidiary during Seller’s Ownership Period, reimbursed to Seller, or if
such item was paid by the Subsidiary thereafter, reimbursed to Purchaser.

 

8.4           Miscellaneous Prorations.  Without
duplication of, and to the extent not addressed by Sections 8.1, 8.2 and 8.3,
all other items that are customarily subject to proration and adjustment,
including without limitation, “Base Rent”, shall be prorated as of the Closing
Date, it being agreed that for purposes of prorations and adjustments,
Purchaser shall be deemed the owner of the Partnership Interests on the Closing
Date.

 

8.5           Leasing Costs. 
Seller agrees to cause the Subsidiary pay or discharge at or prior to
Closing (and provide Purchaser with evidence of payment thereof), or provide
Purchaser with

 

28

 

a credit at Closing in the amount of, all leasing
commissions, costs for tenant improvements, lease buyout costs, moving
allowances, design allowances, legal fees and other costs, expenses and
allowances incurred in order to induce a tenant to enter into a Lease or Lease
renewal or extension or to induce a licensee to enter into a License Agreement
(collectively, the “Leasing Costs”)
that are indicated on Schedule 9.1.5
as being payable by Seller.  Purchaser
agrees to cause the Subsidiary to pay all Leasing Costs indicated on Schedule 9.1.5 as being payable by Purchaser as and when
they become due. Seller shall have no obligation to pay, and as of Closing the
Subsidiary shall retain, the obligation to pay, all Leasing Costs payable with
respect to any option to renew or option to expand that has not been exercised
prior to the Effective Date, which obligation shall survive the Closing.  Additionally, as of Closing, the Subsidiary
shall retain all obligations for Leasing Costs incurred with respect to Leases
and Lease renewals and extensions and License Agreements and License Agreement
renewals and extensions executed subsequent to the Effective Date pursuant to
the terms of this Agreement.

 

8.6           Closing Costs. 
Closing costs shall be allocated between Seller and Purchaser in
accordance with Section 1.2.

 

8.7           Final Adjustment After Closing.  If final bills are not available or cannot be
issued prior to Closing for any item being prorated under Sections 8.1, 8.3 and
8.5, then Purchaser and Seller agree to allocate such items on a fair and
equitable basis as soon as such bills are available, final adjustment to be
made as soon as reasonably possible after the Closing.  Payments in connection with the final
adjustment shall be due within thirty (30) days of written notice.  All such rights and obligations shall survive
the Closing.

 

8.8           Tenant Deposits. All tenant and licensee
security deposits collected and not applied by the Subsidiary (and interest
thereon if required by law or contract) as of the Closing Date shall be
retained by the Subsidiary at Closing. 
As of the Closing, the Subsidiary shall retain their obligations related
to tenant and licensee security deposits, but only to the extent the security
deposits are retained by the Subsidiary at Closing.  Notwithstanding the foregoing provisions of
this Section 8.8, deposits in the form of letters of credit will not be
transferred or credited at the Closing. 
All letters of credit will remain in the name of the Subsidiary at
Closing.  Purchaser and Seller shall each
pay one-half (1/2) of the costs and expenses, if any, of delivering the letters
of credit to Purchaser. In the event that prior to a transfer of any such
letter of credit to Purchaser, Purchaser deems it advisable to cause the
Subsidiary to draw on the same, Seller will cooperate in such presentation, and
direct payment by virtue of any such presentation to the Subsidiary, and if
Seller receives any such payment it will promptly deliver such payment in the
form received and endorsed, without recourse, to Purchaser on behalf of the
Subsidiary.  Purchaser shall defend,
indemnify and hold Seller harmless from all claims, causes of actions, actions,
damages, costs, liabilities and expenses, including (without limitation)
reasonable attorneys’ fees, that may arise out of any such presentation or
related payment, other than by reason of any actions of Seller other than at
the written direction of Purchaser.  If
any security deposit is held in a form other than cash or a letter of credit,
for example, debt or equity securities, at Closing, such debt or equity
securities shall continue to be held by the Subsidiary.

 

8.9           Commissions. 
Seller is responsible to Financial Advisor for a real estate fee at
Closing in accordance with a separate agreement between Seller and Financial
Advisor and at Closing Seller shall pay to Financial Advisor the entire real
estate fee due under the separate

 

29

 

agreement between Seller and Financial Advisor.  Financial Advisor may share its commission
with any other financial advisor or licensed broker involved in this
transaction.  Subject to Seller’s
representations in this Section 8.9, under no circumstances shall Seller
owe a commission or other compensation directly to any financial advisor,
broker, agent or person other than Financial Advisor.  No affiliate, subsidiary or party related in
any way to Purchaser shall claim a commission or fee from Seller or Financial
Advisor.  Seller represents and warrants
to Purchaser that no real estate brokerage commission or real estate fee is
payable to any person or entity in connection with the transaction contemplated
hereby other than Financial Advisor, and agrees to and does hereby indemnify
and hold Purchaser harmless against the payment of any commission or real
estate fee to any other person or entity claiming by, through or under Seller
including Financial Advisor. Purchaser represents and warrants to Seller that
no real estate brokerage commission or real estate fee is payable to any person
or entity in connection with the transaction contemplated hereby, and agrees to
and does hereby indemnify and hold Seller harmless against the payment of any
commission or real estate fee to any other person or entity claiming by,
through or under Purchaser excluding Financial Advisor. The foregoing
indemnifications shall extend to any and all claims, liabilities, costs and
expenses (including reasonable attorneys’ fees and litigation costs) arising as
a result of such claims and shall survive the Closing.

 

8.10         Accounts.  At or prior to Closing, Seller
shall cause all then existing accounts in the name of the Subsidiary to be
closed and the proceeds therein distributed to Seller.

 

8.11         Tax Appeals. 
Subject to the rights of tenants under Leases, following the Closing, (i) Purchaser
shall have the right to pursue on behalf of the Subsidiary all tax appeals in
progress as of the Closing Date which relate to the year of Closing and all
subsequent years and (ii) Seller shall have the right to pursue on behalf
of the Subsidiary all tax appeals in progress as of the Closing Date which
relate to all years prior to the year of Closing (the “Pre-Closing
Tax Appeals”) and any proceeds of the Pre-Closing Tax Appeals shall
be the property of Seller unless such proceeds are required to be paid to the
tenant under the applicable Lease, in which case, Seller shall promptly upon
receipt of such proceeds remit to Purchaser such proceeds less Seller’s
out-of-pocket costs, including, without limitation, reasonable attorney’s fees,
incurred in connection with such Pre-Closing Tax Appeal, but in no event less
than the amounts owed to the tenant under the applicable Lease.  Notwithstanding the foregoing, in no event
shall Seller on behalf of the Subsidiary settle any Pre-Closing Tax Appeal
without the prior consent of Purchaser, not to be unreasonably withheld,
conditioned or delayed, unless Seller is required to settle such Pre-Closing
Tax Appeal on behalf of the Subsidiary pursuant to the terms of the applicable
Lease. If Seller elects not to pursue on behalf of the Subsidiary any
Pre-Closing Tax Appeal, Seller shall so notify Purchaser within a reasonable
period after the Closing, and Purchaser, at its option, may elect to pursue on
behalf of the Subsidiary such Pre-Closing Tax Appeal, unless Purchaser is
required to pursue on behalf of the Subsidiary such Pre-Closing Tax Appeal
pursuant to the terms of the applicable Leases, in which case Purchaser shall
pursue on behalf the Subsidiary such Pre-Closing Tax Appeal.  With respect to (i) any Pre-Closing Tax
Appeal which Seller elects on behalf of the Subsidiary not to pursue and which
Purchaser elects or is obligated on behalf of the Subsidiary to pursue, and (ii) any
tax appeal in progress as of the Closing Date with respect to the year of
Closing, Seller shall cooperate with Purchaser and the Subsidiary, including,
without limitation, substituting counsel, making Seller’s experts available

 

30

 

to Purchaser and the Subsidiary and providing
Purchaser with copies of such appeals and any relevant documentation. The
provisions of this Section 8.10 shall survive the Closing.

 

ARTICLE 9

REPRESENTATIONS AND WARRANTIES

 

9.1           Seller’s Representations and Warranties.  Seller represents and warrants to Purchaser
that:

 

9.1.1        Organization and Authority.  Seller and the Subsidiary are validly
existing, and in good standing in the states in which they were was
formed.  Seller has the full right and
authority and has obtained any and all consents required to enter into this
Agreement and to consummate or cause the Subsidiary to consummate the
transactions contemplated hereby.  This
Agreement has been, and all of the documents to be delivered by Seller and the
Subsidiary at the Closing will be, authorized and executed and constitute, or
will constitute, as appropriate, the valid and binding obligation of Seller the
Subsidiary, enforceable in accordance with their terms.

 

9.1.2        No Conflicts.  The execution, delivery and performance by
Seller and the Subsidiary, as applicable, of this Agreement and the instruments
referenced herein and the transaction contemplated hereby will not conflict
with, or with or without notice or the passage of time or both, result in a
breach of, violate any term or provision of, or constitute a default under any
articles of formation, bylaws, partnership agreement (oral or written),
operating agreement, indenture, deed of trust, mortgage, contract, agreement,
judicial or administrative order, or any law to which Seller, the Subsidiary,
the Partnership Interests or any portion of the Property is bound.

 

9.1.3        Consents; Binding Obligations.  No approval or consent is required from any
person (including any partner, shareholder, member, creditor, investor or governmental
body) for Seller or the Subsidiary, as applicable, to execute, deliver or
perform this Agreement or the other instruments contemplated hereby or for
Seller or the Subsidiary, as applicable, to consummate the transaction
contemplated hereby.  This Agreement and
all documents required hereby to be executed by Seller or the Subsidiary, as
applicable, are and shall be valid, legally binding obligations of and
enforceable against Seller and the Subsidiary in accordance with their terms.

 

9.1.4        Pending Actions. Except as set
forth on Schedule 9.1.4, there is
no action or proceeding pending or threatened against Seller or the Subsidiary
including, but not limited to, those relating to the Partnership Interests, the
Subsidiary Agreement, the Real Property, the Improvements, the Leases, the
Guaranties, the Tangible Personal Property or the Intangible Personal Property.

 

9.1.5        Leases, Guaranties, Tenants and Guarantors.  Schedule 1.1.21(2) is a true, correct and complete list
of all Leases, Guaranties, tenants and guarantors in effect as of the Effective
Date.  Seller has delivered, or has
caused the Subsidiary to deliver, or has made available to Purchaser true,
correct and complete copies of the Leases and the Guaranties.  To Seller’s knowledge, no tenant or guarantor
of any Lease has been released or discharged,

 

31

 

voluntarily or
involuntarily, or by operation of law, from any obligation related to such
Lease.  To Seller’s knowledge, Seller and
the Subsidiary have not received notice of any default under, and to Seller’s
knowledge, no other party is in default under, any of its obligations under any
of the Leases or Guaranties, and to Seller’s knowledge, there is no event which
with the giving of notice or passage of time, or both, would be a default
thereunder (other than with respect to the curtain wall on the Property as
referenced in that certain Curtain Wall Snap Cover Failure Investigation
prepared by Wiss, Janney, Elstner Associates, Inc. dated April 23,
2010, which Purchaser has knowledge of). 
Without limiting the foregoing, to Seller’s knowledge, Seller and the
Subsidiary have not received any notice from any tenant or guarantor under the
Guaranties asserting any presently accrued defenses, offsets or disputes
thereunder. The Rent Roll is true and correct in all material respects.  Except as disclosed on Schedule 9.1.5, there are no Leasing Costs
or other obligations to brokers due or which will become due under any of the
Leases, except for Leasing Costs incurred with respect to Leases and Lease
renewals and extensions and License Agreements and License Agreement renewals
and extensions executed subsequent to the Effective Date pursuant to the terms
of this Agreement. Except as disclosed on Schedule
9.1.5, all Leasing Costs have been fully paid and satisfied by
Seller, except for Leasing Costs incurred with respect to Leases and Lease
renewals and extensions and License Agreements and License Agreement renewals
and extensions executed subsequent to the Effective Date pursuant to the terms
of this Agreement.

 

9.1.6        Service Contracts and License Agreements.  To Seller’s knowledge, Schedule 9.1.6 is a true, correct and
complete list of all Service Contracts and License Agreements with respect to
the Property.  To Seller’s knowledge,
Seller has delivered or caused the Subsidiary to deliver true, correct and
complete copies of the Service Contracts and License Agreements to
Purchaser.  To Seller’s knowledge, Seller
and the Subsidiary have not received notice of any default under, and to Seller’s
knowledge, no other party is in default under, any of its obligations under any
of the Service Contracts or License Agreements, and to Seller’s knowledge,
there is no event which with the giving of notice or passage of time, or both,
would be a default thereunder.  Without
limiting the foregoing, to Seller’s knowledge, Seller and the Subsidiary have
not received any notice from any party under the Service Contracts or License
Agreements asserting any presently accrued defenses, offsets or disputes
thereunder.

 

9.1.7        Notices
from Governmental Authorities.  To Seller’s knowledge, except as set forth on
Schedule 9.1.7 or as may be reflected
by the Property Documents or otherwise disclosed by Seller to Purchaser in
writing, Seller and the Subsidiary have not received from any governmental authority during the Seller’s Ownership Period
written notice of any violation of any laws, that has not been corrected.

 

9.1.8        Prohibited Persons and Transactions.  Neither Seller nor any of its affiliates is,
nor will they become, a person or entity with whom U.S. persons or entities are
restricted from doing business under regulations of the Office of Foreign Asset
Control (“OFAC”) of the Department
of the Treasury (including those named on OFAC’s Specially Designated and
Blocked Persons List) or under any statute, executive order (including the September 24,
2001, Executive Order Blocking Property and Prohibiting Transactions with
Persons Who Commit, Threaten to Commit, or Support Terrorism), or other
governmental action and is not and will not engage in any dealings or
transactions or be otherwise associated with such persons or entities.

 

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9.1.9        Operating Statements.  The Operating Statements delivered by Seller
or made available to Purchaser are true and complete copies of the operating
statements for the Property which Seller and the Subsidiary rely upon for the
purposes of operating the Property.

 

9.1.10      Insurance.  Schedule
9.1.10 is a true, correct and complete list of the insurance
maintained by Seller and the Subsidiary with respect to the Property.  Seller, and the Subsidiary have not received
any written notice or request from any insurance company requesting the
performance of any work or alteration with respect to the Property, which have
not been fully and completely corrected. 
Seller and the Subsidiary have not received written notice from any
insurance company concerning any defects or inadequacies in the Property,
which, if not corrected, would result in the termination of insurance coverage
or increase its cost.

 

9.1.11      Employees.  There are no employees of Seller or the
Subsidiary employed in connection with the use, management, maintenance or
operation of the Property whose employment will continue after the Closing
Date.  There is no bargaining unit or
union contract relating to any employees of Seller or the Subsidiary.

 

9.1.12      Third Party Agreements.
Other than the Leases, the License Agreements, the Service Contracts, the
Permitted Exceptions and the agreements set forth on Schedule 9.1.12, there are no agreements to which Seller or
the Subsidiary is party to.  To Seller’s
knowledge, except as set forth on Schedule
9.1.12, Seller is not in default of, and no other party is in
default of, any of its obligations under any of the agreements set forth on Schedule 9.1.12, and there is no event
which, with the giving of notice or passage of time, or both, would be a
default thereunder.

 

9.1.13      Seller’s Representatives.
Seller’s Representatives are the individuals involved in supervising Seller’s
and the Subsidiary’s ownership, operation, and maintenance of the Property,
have knowledge of the operation and maintenance of the Property and have
reviewed the representations of Seller set forth in, and the schedules and
exhibits referenced in, this Section 9.1.13.

 

9.1.14      Ownership.  (A) LP Seller is the sole limited
partner of, and owns ninety-nine percent (99%) of the partnership interests in,
the Subsidiary, and (B) GP Seller is the sole general partner of, and owns
one percent (1%) of the partnership interests in, the Subsidiary.  Except for the liens, encumbrances,
liabilities, claims, covenants and restrictions relating to that portion of the
GE Loan secured by the Partnership Interests and the Property, which will be
repaid, (i) LP Seller owns its interests in the Subsidiary free and clear
of all liens, encumbrances, liabilities, claims, covenants and restrictions of
any kind or character, including but not limited to, any security interests or,
any restriction on sale or assignment or granting of any option, right or
agreement for the purchase or acquisition of the same or any interest in the
same and LP Seller has not transferred, assigned, sold, conveyed, pledged,
mortgaged, granted a security interest in, or otherwise disposed of any of such
interests or any portion thereof or interest therein or granted any option to
any person or entity to acquire any of such interests, and (ii) GP Seller
owns its interests in the Subsidiary free and clear of all liens, encumbrances,
liabilities, claims, covenants and restrictions of any kind or character,
including but not limited to, any security interests or, any restriction on
sale or assignment or granting of any option, right or agreement for the
purchase or acquisition of the same or any interest in the same and GP Seller
has not transferred,

 

33

 

assigned, sold, conveyed,
pledged, mortgaged, granted a security interest in, or otherwise disposed of
any of such interests or any portion thereof or interest therein or granted any
option to any person or entity to acquire any of such.

 

9.1.15      Intentionally Deleted.

 

9.1.16      Subleases. Schedule 9.1.16 is a true, correct and
complete list of all subleases covering the Property acknowledged, or consented
to, by Seller and such additional subleases as to which Seller has knowledge
of.

 

9.1.17      Subsidiary Agreement.  Seller has delivered to Purchaser
a true, complete and accurate copies of the Subsidiary Agreement, and all
amendments thereto, all of which are each in full force and effect and have not
been amended or modified, and there has been no material default by Seller or
the Subsidiary under the Subsidiary Agreement.

 

9.1.18      Subsidiary.  Other than the Subsidiary, there
are no corporations, partnerships, joint ventures, associations or other
entities in which Seller owns, of record or beneficially, any direct or
indirect equity or other interest or any right to acquire same.

 

9.1.19      Books and Records.  The Books and Records contain
accurate records of all meetings and accurately reflect all other actions taken
by the members, boards of directors and all committees of the Subsidiary.
Complete and accurate copies of all Books and Records of the Subsidiary have
been provided by Seller to the Purchaser.

 

9.1.20      Bankruptcy. No petition in bankruptcy (voluntary or, to Seller’s knowledge,
involuntary), assignment for the benefit of creditors or petition seeking
reorganization or arrangement or other action under federal or state bankruptcy
or insolvency laws is pending against or, to Seller’s knowledge, threatened
against the Subsidiary.

 

9.1.21      Permitted Liabilities.  The Subsidiary have no
liabilities other than (i) those reflected on the consolidated balance
sheet of each respective entity, dated as of March 31, 2010 (collectively,
the “Balance Sheets”) and (ii) liabilities
incurred in the ordinary course of the Subsidiary’s business related to the
Property from April 1, 2010 through the Effective Date, which ordinary
course liabilities (A) shall not materially exceed the corresponding line
items for such ordinary course liabilities set forth in the Balance Sheets and (B) are
subject to Purchaser’s consent rights otherwise contained in this Agreement
(items (i) and (ii) of this Section 9.1.19 are referred to
herein collectively as, the “Permitted
Liabilities”), which Permitted Liabilities shall be paid prior to or
at Closing except for Permitted Liabilities prorated in accordance with the
terms of this Agreement.

 

9.1.22      Financial Statements.  Seller has delivered to Purchaser
true, correct and complete copies of the Financial Statements. The Financial
Statements present fairly in all material respects the financial position,
results of operations and cash flows of the Subsidiary as of the dates thereof
and for the periods covered thereby, in accordance with GAAP applied on a
consistent basis.

 

34

 

9.1.23      Taxes and Tax Returns.  The Subsidiary do not file federal, state or
local tax returns. The taxable financial results of the Subsidiary are included
in the consolidated federal, state and local tax returns filed by iStar.

 

9.1.24      Undisclosed Liabilities.  There is no basis for any present
action, suit, proceeding, hearing, investigation, charge, complaint, claim or
demand against the Subsidiary giving rise to any liability, except for (i) liabilities
set forth on the Financial Statements and (ii) the Permitted Liabilities.

 

9.1.25      Collective Bargaining and Employee Plans. 
Neither Seller nor the Subsidiary is a party to any collective
bargaining or similar agreement with respect to the Property. As of the date
hereof, there are no employee benefit plans or arrangements with respect to the
Subsidiary.

 

9.2           Purchaser’s Representations and Warranties.  Purchaser represents and warrants to Seller
that:

 

9.2.1        Organization and Authority.  Purchaser is validly existing as a limited
liability company in good standing in the State of Delaware. Purchaser has the
full right and authority and has obtained any and all consents required to
enter into this Agreement and to consummate or cause to be consummated the
transactions contemplated hereby, and this Agreement has been, and all of the
documents to be delivered by Purchaser at the Closing will be, authorized and
properly executed and constitute, or will constitute, as appropriate, the valid
and binding obligation of Purchaser, enforceable in accordance with their
terms.

 

9.2.2        No Conflicts.  The execution, delivery and performance by
Purchaser of this Agreement and the instruments referenced herein and the
transaction contemplated hereby will not conflict with, or with or without
notice or the passage of time or both, result in a breach of, violate any term
or provision of, or constitute a default under any articles of formation,
bylaws, partnership agreement (oral or written), operating agreement,
indenture, deed of trust, mortgage, contract, agreement, judicial or
administrative order, or any law to which Purchaser is bound.

 

9.2.3        Consents; Binding Obligations.  Except as set forth in Section 9.2.1, (a) no
approval or consent is required from any person (including any partner,
shareholder, member, creditor, investor or governmental body) for Purchaser to
execute, deliver or perform this Agreement or the other instruments
contemplated hereby or for Purchaser to consummate the transaction contemplated
hereby, and (b) this Agreement and all documents required hereby to be
executed by Purchaser are and shall be valid, legally binding obligations of
and enforceable against Purchaser in accordance with their terms.

 

9.2.4        Pending Actions.  There is no action or proceeding pending or,
to Purchaser’s knowledge, threatened against Purchaser which challenges or
impairs Purchaser’s ability to execute or perform its obligations under this
Agreement.

 

9.2.5        ERISA.  (a) Purchaser is neither (i) an “employee
benefit plan” (as defined in Section 3(3) of the Employment
Retirement Income Security Act of 1974, as amended (“ERISA”)) which is subject to Title I of ERISA (an “ERISA Plan”), nor (ii) a “plan” (as

 

35

 

defined in Section 4975(e)(1) of
the Internal Revenue Code of 1986, as amended (the “Code”)) which is subject to Section 4975 of the Code (a “Code Plan”); (b) the assets of
Purchaser do not constitute “plan assets” (as defined in Section 3(42) of
ERISA) of one or more ERISA Plans or Code Plans (“Plan Assets”) because, at the time of the Closing, the stock
of Purchaser’s parent constitutes “publicly offered securities” (as defined in
29 C.F.R. Section 2510.3-101(b)(2)), which parent owns one hundred percent
(100%) of the issued and outstanding equity of Purchaser; (c) Purchaser is
not using Plan Assets in the performance or discharge of its obligations under
this Agreement; (d) Purchaser is not a “governmental plan” (within the
meaning of Section 3(32) of ERISA) and assets of Purchaser do not
constitute plan assets of one or more such plans; and (e) transactions by
or with Purchaser are not in violation of state statutes applicable to
Purchaser regulating investments of and fiduciary obligations with respect to
governmental plans.

 

9.2.6        Prohibited Persons and Transactions.  Neither Purchaser nor any of its affiliates
is, nor will they become, a person or entity with whom U.S. persons or entities
are restricted from doing business under regulations of OFAC (including those
named on OFAC’s Specially Designated and Blocked Persons List) or under any
statute, executive order (including the September 24, 2001, Executive
Order Blocking Property and Prohibiting Transactions with Persons Who Commit,
Threaten to Commit, or Support Terrorism), or other governmental action and is
not and will not engage in any dealings or transactions or be otherwise
associated with such persons or entities.

 

9.2.7        Availability of Funds.  Subject to obtaining the financing
contemplated by the Fixed Rate Term Sheet, the Floating Rate Term Sheet and the
Mezzanine Loan as provided in Section 4.3.2,  Purchaser currently has available and will at the Closing
have available sufficient funds to pay the Purchase Price and to pay any and
all other amounts payable by Purchaser pursuant to this Agreement and to effect
the transactions contemplated hereby.

 

9.3           Survival of Representations and Warranties.  The representations and warranties set forth
in this Article 9 are made as of the Effective Date, are remade as of the
Closing Date (subject to update for Updated Property Information pursuant to Section 4.4
and, changes that are not the result of a breach by Seller or Purchaser or any
of their covenants in this Agreement), and shall not be deemed to be merged
into or waived by the instruments of Closing, but shall survive the Closing for
a period of nine (9) months (the “Survival Period”).  Terms such as “to Seller’s knowledge,” “to the
best of Seller’s knowledge” or like phrases mean the actual knowledge of the
following persons:  Barclay Jones,
Executive Vice President, Michael Dorsch, Executive Vice President, Samantha
Garbus, Senior Vice President, Nancy Zoeckler, Senior Vice President, Mary-Beth
Roselle, Senior Vice President, Scott Quigle, Vice President, Carrie Crain,
Vice President and the persons whose names are set forth on Schedule 9.3 (the foregoing persons are referred to herein
collectively as, the “Seller’s Representatives”),
without any duty of inquiry or investigation except in connection with such
persons’ review of the representations and warranties of Seller set forth in Section 9.1
hereof as provided in Section 9.1.13 hereof; provided that so qualifying
Seller’s knowledge shall in no event give rise to any personal liability on the
part of Seller’s Representatives, or any of them, or any other officer or employee
of Seller, on account of any breach of any representation or warranty made by
Seller herein.  Said terms do not include
constructive knowledge, imputed knowledge or knowledge Seller or such persons
do not have but could have obtained through further investigation or

 

36

 

inquiry.  No
financial advisor, broker, agent, or party other than Seller is authorized to
make any representation or warranty for or on behalf of Seller.  Subject to Section 9.4 hereof and
Sections 9.4 of the Harborside Purchase and Sale Agreement and the CTL Reston
Member Interest Purchase and Sale Agreement, each party shall have the right to
bring an action against the other on the breach of a representation or warranty
or covenant hereunder or in the documents delivered by Seller at the Closing,
but only on the following conditions:  (1) the
party bringing the action for breach first learns of the breach after Closing
and files such action within the Survival Period, (2) Seller shall not
have the right to bring a cause of action for a breach of a representation or
warranty or covenant unless the damage to Seller on account of such breach
(individually or when combined with damages from other breaches including
damages on account of breaches by Purchaser under the Other Purchase and Sale
Agreements) equals or exceeds $5,000,000, in which event Purchaser shall be
liable to Seller for one-half of all such damage up to $5,000,000 and for all
damage above $5,000,000, and (3) Purchaser shall not have the right to
bring a cause of action for a breach of a representation or warranty or
covenant unless the damage to Purchaser on account of such breach (individually
or in the aggregate) equals or exceeds (i) $2,000,000 if such breach
relates to the Property and the Partnership Interests, in which event Seller
shall be liable to Purchaser for one-half of all such damage up to $2,000,000
and for all such damage above $2,000,000 with respect to the Property and the
Partnership Interests or (ii) $5,000,000 for the Property, the Acquired
Properties and the Other Real Property, in which event Seller shall be liable
(without duplication of any claims made pursuant to subclause (i) of this
clause (3)) to Purchaser for one-half of all such damage up to $5,000,000 and
for all such damage above $5,000,000 with respect to the Property, the Acquired
Properties and the Other Real Property, subject to the further provisions of
this Section 9.3.  Neither party
shall have any liability after Closing for the breach of a representation or
warranty or covenant hereunder of which the other party hereto had actual
knowledge as of Closing.  Notwithstanding
any other provision of this Agreement or of any closing deliveries of Seller
contemplated by this Agreement:  (a) subject
to Section 9.4 hereof and Sections 9.4 of the Harborside Purchase and Sale
Agreement and the CTL Reston Member Interest Purchase and Sale Agreement and
other than Leasing Costs, or any rights which Purchaser might otherwise have at
law, equity, or by statute, whether based on contract or some other claim,
Purchaser agrees that any liability of Seller to Purchaser pursuant to this Section 9.3
and any liability of Other Sellers pursuant to Sections 9.3 of the Other
Purchase and Sale Agreements will in the aggregate be limited to five percent
(5%) of the aggregate Purchase Price of the Acquired Properties and (b) there
shall be no threshold or limitation or limitation on survival on Seller’s
obligation to pay or credit Purchaser for Leasing Costs payable by Seller under
Section 8.5 (and the corresponding representation in Section 9.1.5
regarding Leasing Costs), whether or not the obligations to pay any Leasing
Costs first becomes known to Purchaser before, at or after the Closing; i.e.,
Seller shall pay or credit Purchaser for Leasing Costs payable by Seller under Section 8.5
(and the corresponding representation in Section 9.1.5 regarding Leasing
Costs) regardless of the amount thereof and regardless of when the Leasing Cost
becomes known to Purchaser.  In no event
shall either party be liable to the other party for incidental, consequential,
or punitive damages as a result of the breach of any or all representations or
warranties set forth in this Agreement. The provisions of this Section 9.3
shall survive the Closing. Any breach of a representation or warranty or
covenant that occurs prior to Closing shall be governed by ARTICLE 10.

 

9.4           Company Representations.  Anything
in this Agreement to the contrary notwithstanding, including Section 9.3, (i) there
shall be no cap or floor on liability and

 

37

 

Purchaser
shall not share in such liability pursuant to Section 9.3, for any
misrepresentation or other breach of any representation or warranty contained
in the following subsections of this Agreement and such subsections shall
survive the Closing without limitation: 
Sections 9.1.1, 9.1.2, 9.1.3, 9.1.4, 9.1.14, 9.1.17, 9.1.18, 9.1.20,
9.1.22 and 9.1.23, (ii) there shall be no cap or floor on liability and
the Survival Period shall be two (2) years from Closing and Purchaser
shall not share in such liability pursuant to Section 9.3, for any
misrepresentation or other breach of any representation or warranty contained
in the following subsections of this Agreement: 
Sections 9.1.19, 9.1.21 and 9.1.24, and (iii) the Survival Period
for Section 9.1.12 shall be two (2) years from Closing and remain
subject to the caps, floors, and sharing of liability as set forth in Section 9.3
(items (i), (ii) and (iii) of this Section 9.4 are referred to
herein collectively as, the “Company Representations”),
subject to the applicable statues of limitation.  Seller and iStar (“Indemnitor”)
shall each indemnify Purchaser and hold Purchaser harmless from and against,
any and all claims, liabilities, damages, losses, costs or expenses (including
reasonable attorneys’ fees) incurred by Purchaser arising from the Company
Representations.  This Section 9.4
shall survive the Closing.

 

ARTICLE 10

DEFAULT AND REMEDIES

 

10.1         Seller’s Remedies.  If Purchaser defaults on its obligations
hereunder or under the Other Purchase and Sale Agreements at or prior to
Closing for any reason, or if prior to Closing any one or more of Purchaser’s
representations or warranties or covenants hereunder, or under the Other
Purchase and Sale Agreements, are breached in any material respect that impairs
Purchaser’s ability to close under this Agreement or under the Other Purchase
and Sale Agreements and such default or breach is not cured by the earlier of
the third (3rd) Business Day after written notice thereof from Seller or the
Closing Date (except no notice or cure period shall apply if Purchaser fails to
consummate the purchase of the Partnership Interests hereunder or the other
Acquired Properties pursuant to the Other Purchase and Sale Agreements), Seller
shall be entitled, as its sole remedy hereunder (except as provided in Sections
4.10, 8.8, 10.3 and 10.4 hereof), to terminate this Agreement.  Notwithstanding anything in this Section 10.1
to the contrary, in the event of Purchaser’s default or a termination of this
Agreement, Seller shall have all remedies available at law or in equity in the
event Purchaser or any party related to or affiliated with Purchaser is
asserting any claims or right to the Partnership Interests or the Property that
would otherwise delay or prevent Seller from having clear, indefeasible and
marketable title to the Partnership Interests or the Property.  In all other events Seller’s remedies shall
be limited to those described in this Section 10.1 and Sections 4.10, 8.8,
10.3 and 10.4 hereof.  If Closing is
consummated, Seller shall have all remedies available at law or in equity in
the event Purchaser fails to perform any obligation of Purchaser under this
Agreement. IN NO EVENT SHALL PURCHASER’S DIRECT OR INDIRECT PARTNERS,
SHAREHOLDERS, MEMBERS, MANAGERS, OWNERS OR AFFILIATES, ANY OFFICER, MANAGER,
DIRECTOR, EMPLOYEE OR AGENT OF THE FOREGOING, OR ANY AFFILIATE OR CONTROLLING
PERSON THEREOF HAVE ANY LIABILITY FOR ANY CLAIM, CAUSE OF ACTION OR OTHER
LIABILITY ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE PARTNERSHIP
INTERESTS OR THE PROPERTY, WHETHER BASED ON CONTRACT, COMMON LAW, STATUTE,
EQUITY OR OTHERWISE.

 

38

 

10.2         Purchaser’s Remedies. If Seller defaults on its
obligations hereunder, or Other Sellers default in their obligations under the
Other Purchase and Sale Agreements at or prior to Closing for any reason, or if
prior to Closing any one or more of Seller’s, or, with respect to the Other
Purchase and Sale Agreements, Other Sellers’, representations or warranties or
covenants are breached in any material respect (subject to the provisions of Section 4.4
hereof and of the Other Purchase and Sale Agreements and the first Sentence of Section 9.3
hereof and of the Other Purchase and Sale Agreements), and such default or
breach is not cured by the earlier of the third (3rd) Business Day after
written notice thereof from Purchaser or the Closing Date (except no notice or
cure period shall apply if Seller fails to consummate the sale of the
Partnership Interests hereunder or Other Sellers fail to consummate the sale of
the other Acquired Properties under the Other Purchase and Sale Agreements),
Purchaser shall elect, as its sole remedy hereunder, either to (a) terminate
this Agreement by giving Seller timely written notice of such election prior to
or at Closing, (b) enforce specific performance to consummate the sale of
the Partnership Interests hereunder, or (c) waive said failure or breach
and proceed to Closing without any reduction in the Purchase Price.  Notwithstanding anything herein to the
contrary, Purchaser shall be deemed to have elected to terminate this Agreement
in its entirety if Purchaser fails to deliver to Seller written notice of its
intent to proceed otherwise on or before ten (10) Business Days following
the scheduled Closing Date or, having given notice that it intends to seek
specific performance, fails to file a lawsuit asserting such claim or cause of
action in New York County, New York within two months following the scheduled
Closing Date.  EXCEPT FOR iSTAR’S
POTENTIAL LIABILITY PURSUANT TO THE MEZZANINE LOAN AND SECTION 9.4, IN
NO EVENT SHALL SELLER’S DIRECT OR INDIRECT PARTNERS, SHAREHOLDERS, MEMBERS,
MANAGERS, OWNERS OR AFFILIATES, ANY OFFICER, MANAGER, DIRECTOR, EMPLOYEE OR
AGENT OF THE FOREGOING, OR ANY AFFILIATE OR CONTROLLING PERSON THEREOF HAVE ANY
LIABILITY FOR ANY CLAIM, CAUSE OF ACTION OR OTHER LIABILITY ARISING OUT OF OR
RELATING TO THIS AGREEMENT, THE PARTNERSHIP INTERESTS OR PROPERTY, WHETHER
BASED ON CONTRACT, COMMON LAW, STATUTE, EQUITY OR OTHERWISE.

 

10.3         Attorneys’ Fees.  In the event either party hereto employs an
attorney in connection with claims by one party against the other arising from
the operation of this Agreement, the non-prevailing party shall pay the
prevailing party all reasonable fees and expenses, including attorneys’ fees,
incurred in connection with such claims.

 

10.4         Other Expenses.  If this Agreement is terminated due to the
default of a party, then the defaulting party shall pay any fees or charges due
to the Title Company for preparation and/or cancellation of the Title
Commitment.

 

ARTICLE 11

DISCLAIMERS, RELEASE AND INDEMNITY

 

11.1         Disclaimers By Seller.  Except as expressly set forth in this
Agreement and/or the Closing documents, it is understood and agreed that Seller
and the Subsidiary and Seller’s and the Subsidiary’s agents or employees have
not at any time made and are not now making, and they specifically disclaim,
any warranties, representations or guaranties of any kind or character, express
or implied, with respect to the Partnership Interests, the Property, including,
but not

 

39

 

limited to, warranties, representations or
guaranties as to (a) matters of title, (b) environmental matters
relating to the Property or any portion thereof, including, without limitation,
the presence of Hazardous Materials in, on, under or in the vicinity of the
Property, (c) geological conditions, including, without limitation,
subsidence, subsurface conditions, water table, underground water reservoirs,
limitations regarding the withdrawal of water, and geologic faults and the
resulting damage of past and/or future faulting, (d) whether, and to the
extent to which the Property or any portion thereof is affected by any stream
(surface or underground), body of water, wetlands, flood prone area, flood
plain, floodway or special flood hazard, (e) drainage, (f) soil
conditions, including the existence of instability, past soil repairs, soil
additions or conditions of soil fill, or susceptibility to landslides, or the
sufficiency of any undershoring, (g) the presence of endangered species or
any environmentally sensitive or protected areas, (h) zoning or building
entitlements to which the Property or any portion thereof may be subject, (i) the
availability of any utilities to the Property or any portion thereof,
including, without limitation, water, sewage, gas and electric, (j) usages
of adjoining property, (k) access to the Property or any portion thereof, (l) the
value, compliance with the plans and specifications, size, location, age, use,
design, quality, description, suitability, structural integrity, operation,
title to, or physical or financial condition of the Property or any portion
thereof, or any income, expenses, charges, liens, encumbrances, rights or
claims on or affecting or pertaining to the Property or any part thereof, (m) the
condition or use of the Property or compliance of the Property with any or all
past, present or future federal, state or local ordinances, rules, regulations
or laws, building, fire or zoning ordinances, codes or other similar laws, (n) the
existence or non-existence of underground storage tanks, surface impoundments,
or landfills, (o) any other matter affecting the stability and integrity
of the Property, (p) the potential for further development of the
Property, (q) the merchantability of the Property or fitness of the
Property for any particular purpose, (r) the truth, accuracy or
completeness of the Property Documents or Updated Property Information, (s) tax
consequences, or (t) any other matter or thing with respect to the
Property.

 

11.2         Sale “As Is, Where Is”.  Purchaser acknowledges and agrees that upon
Closing, Seller shall sell and convey to Purchaser and Purchaser shall accept
the Partnership Interests and all beneficial interests arising therefrom “AS IS, WHERE IS, WITH ALL FAULTS,” except to the extent
expressly provided otherwise in this Agreement and any document executed by
Seller and delivered to Purchaser at Closing. 
Except as expressly set forth in this Agreement or such Closing
documents, Purchaser has not relied and will not rely on, and Seller has not made
and is not liable for or bound by, any express or implied warranties,
guarantees, statements, representations or information pertaining to the
Partnership Interests, the Property or relating thereto (including
specifically, without limitation, Property information packages distributed
with respect to the Property) made or furnished by Seller, or any property
manager, real estate broker, financial advisor, agent or third party
representing or purporting to represent Seller, to whomever made or given,
directly or indirectly, orally or in writing. 
Purchaser represents that it is a knowledgeable, experienced and
sophisticated purchaser of real estate and that, except as expressly set forth
in this Agreement, it is relying solely on its own expertise and that of
Purchaser’s consultants in purchasing the Partnership Interests and shall make
an independent verification of the accuracy of any documents and information
provided by Seller.  Purchaser will
conduct such inspections and investigations of the Partnership Interests

 

40

 

and the Property as Purchaser deems necessary,
including, but not limited to, the physical and environmental conditions of the
Property, and shall rely upon same. 
Purchaser acknowledges that Seller has afforded Purchaser a full opportunity
to conduct such investigations of the Partnership Interests and the Property as
Purchaser deemed necessary to satisfy itself as to the Partnership Interests
and the condition of the Property and the existence or non-existence or
curative action to be taken with respect to any Hazardous Materials on or
discharged from the Property, and will rely solely upon same and not upon any
information provided by or on behalf of Seller or its agents or employees with
respect thereto, other than such representations, warranties and covenants of
Seller as are expressly set forth in this Agreement.  Upon Closing, Purchaser shall assume the risk
that adverse matters, including, but not limited to, adverse physical or construction
defects or adverse environmental, health or safety conditions, may not have
been revealed by Purchaser’s inspections and investigations. Purchaser hereby
represents and warrants to Seller that:  (a) Purchaser
is represented by legal counsel in connection with the transaction contemplated
by this Agreement; and (b) Purchaser is purchasing the Partnership
Interests for business, commercial, investment or other similar purpose.  Purchaser waives any and all rights or
remedies it may have or be entitled to, deriving from disparity in size or from
any significant disparate bargaining position in relation to Seller.

 

11.3         Seller Released from Liability. Purchaser acknowledges
that it has had the opportunity to inspect the Property and observe its
physical characteristics and existing conditions and the opportunity to conduct
such investigation and study on and of the Property and adjacent areas as
Purchaser deems necessary, and, except as set forth herein or in any Closing
document, Purchaser hereby FOREVER RELEASES AND DISCHARGES Seller from all responsibility
and liability, including without limitation, liabilities and responsibilities
for the landlord’s obligations under the Leases relating to the physical,
environmental or legal compliance status of the Property, arising after the
Effective Date, and liabilities under the Comprehensive Environmental Response,
Compensation and Liability Act Of 1980 (42 U.S.C. Sections 9601 et seq.), as
amended (“CERCLA”), regarding the condition,
valuation, salability or utility of the Property or its suitability for any
purpose whatsoever (including, but not limited to, with respect to the presence
in the soil, air, structures and surface and subsurface waters, of Hazardous
Materials or other materials or substances that have been or may in the future
be determined to be toxic, hazardous, undesirable or subject to regulation and
that may need to be specially treated, handled and/or removed from the Property
under current or future federal, state and local laws, regulations or
guidelines, and any structural and geologic conditions, subsurface soil and
water conditions and solid and hazardous waste and Hazardous Materials on,
under, adjacent to or otherwise affecting the Property).  Except as set forth herein or in any closing documents,
Purchaser further hereby WAIVES (and by Closing this transaction will be deemed
to have WAIVED) any and all objections and complaints (including, but not
limited to, federal, state and local statutory and common law based actions,
and any private right of action under any federal, state or local laws,
regulations or guidelines to which the Property are or may be subject,
including, but not limited to, CERCLA) concerning the physical characteristics
and any existing conditions of the Property, including, without limitation, the
landlord’s obligations under the Leases relating to the physical, environmental
or legal compliance status of the Property, arising after the Effective
Date.  Purchaser further hereby assumes
the risk of changes in applicable laws and regulations relating to past,
present and future environmental conditions on the Property and the risk that
adverse physical characteristics and conditions, including, without limitation,
the presence of Hazardous Materials or other contaminants, may not have been
revealed by its investigation.

 

41

 

11.4         “Hazardous
Materials” Defined.  For purposes hereof, “Hazardous
Materials”“ means “Hazardous Material,” “Hazardous Substance,” “Pollutant
or Contaminant,” and “Petroleum” and “Natural Gas Liquids,” as those terms are
defined or used in Section 101 of CERCLA, and any other substances
regulated because of their effect or potential effect on public health and the
environment, including, without limitation, PCBs, lead paint, asbestos, urea
formaldehyde, radioactive materials, putrescible materials, and infectious
materials.

 

11.5         Intentionally Deleted.

 

11.6         Survival.  The terms
and conditions of this ARTICLE 11 shall expressly survive the Closing, and
shall not merge with the provisions of any closing documents.

 

Purchaser
acknowledges and agrees that the disclaimers and other agreements set forth
herein are an integral part of this Agreement and that Seller would not have
agreed to sell the Partnership Interests to Purchaser for the Purchase Price
without the disclaimers and other agreements set forth above.

 

ARTICLE 12

MISCELLANEOUS

 

12.1         Parties Bound; Assignment.  This Agreement, and the terms, covenants, and
conditions herein contained, shall inure to the benefit of and be binding upon
the heirs, personal representatives, successors, and assigns of each of the
parties hereto.  Purchaser may, at
Purchaser’s sole cost and expense and at no cost or expense to Seller, assign
its rights under this Agreement upon the following conditions:  (a) the assignee of Purchaser must be (i) an
entity controlling, controlled by, or under common control with Purchaser or (ii) an
entity advised by an affiliate of Purchaser’s advisor, Dividend Capital Total
Advisors LLC, (b) Intentionally Deleted, (c) Intentionally Deleted, (d) the
assignee of Purchaser shall assume all obligations of Purchaser hereunder, but
Purchaser shall remain primarily liable for the performance of Purchaser’s
obligations, (e) a copy of the fully executed written assignment and
assumption agreement shall be delivered to Seller at least five (5) Business
Days prior to Closing, (f) the requirements in Section 12.17 are
satisfied and (g) such assignment shall in no event delay the Closing.

 

12.2         Headings.  The
article, section, subsection, paragraph and/or other headings of this Agreement
are for convenience only and in no way limit or enlarge the scope or meaning of
the language hereof.

 

12.3         Invalidity and Waiver.  If any portion of this Agreement is held
invalid or inoperative, then so far as is reasonable and possible the remainder
of this Agreement shall be deemed valid and operative, and, to the greatest
extent legally possible, effect shall be given to the intent manifested by the
portion held invalid or inoperative.  The
failure by either party to enforce against the other any term or provision of
this Agreement shall not be deemed to be a waiver of such party’s right to
enforce against the other party the same or any other such term or provision in
the future.

 

12.4         Governing Law.  This
Agreement shall be governed in all respects, including validity, construction,
interpretation and effect, by the laws of the State of New York, without

 

42

 

giving effect to its principles or rules of
conflict of laws to the extent such principles or rules would require or
permit the application of the laws of another jurisdiction.  Each of Purchaser and Seller hereby (i) irrevocably
submits to the jurisdiction of the courts of the State of New York and the Federal
courts of the United States of America located in the State, City and County of
New York for the purpose of any action or proceeding arising out of this
Agreement or any of the transactions contemplated by this Agreement, (ii) agrees
that it will not attempt to deny or defeat such personal jurisdiction by motion
or other request for leave from any such court, and (iii) agrees that it
will not bring any action relating to this Agreement or any of the transactions
contemplated by this Agreement in any court other than a New York state court
or federal court located in the State, City and County of New York.  Each of Purchaser and Seller hereby consents
to and grants any such court jurisdiction over the person of such party and
over the subject matter of any such dispute and agrees that mailing of process
or other papers in connection with any such action or proceeding in the manner
provided in Section 12.10, or in such other manner as may be permitted by
law, shall be valid and sufficient service thereof on such party.

 

12.5         Survival.  The
provisions of this Agreement that contemplate performance after the Closing and
the obligations of the parties not fully performed at the Closing (other than
any unfulfilled closing conditions which have been waived or deemed waived by
the other party) shall survive the Closing and shall not be deemed to be merged
into or waived by the instruments of Closing.

 

12.6         Entirety and Amendments.  The exclusivity obligations and covenants set
forth in that certain letter of intent dated April 2, 2010 between iStar
Financial Inc., on behalf of Seller, and Purchaser are hereby incorporated
herein and made a part of this Agreement. This Agreement embodies the entire
agreement between the parties and supersedes all prior agreements and
understandings relating to the Property. This Agreement may be amended or
supplemented only by an instrument in writing executed by the party against
whom enforcement is sought. All Schedules and Exhibits hereto are incorporated
herein by this reference for all purposes. All information disclosed on any one
Schedule and not disclosed on the other Schedules shall, to the extent
applicable, be deemed to be disclosed on such other Schedules.

 

12.7         Time.  Time is of
the essence in the performance of this Agreement.

 

12.8         Intentionally Omitted.

 

12.9         No Electronic Transactions.  The parties hereby acknowledge and agree this
Agreement shall not be executed, entered into, altered, amended or modified by
electronic means.  Without limiting the
generality of the foregoing, the parties hereby agree the transactions
contemplated by this Agreement shall not be conducted by electronic means,
except as specifically set forth in the “Notices” section of this Agreement.

 

12.10       Notices.  All notices
required or permitted hereunder shall be in writing and shall be served on the
parties at the addresses set forth in Section 1.3.  Any such notices shall, unless otherwise
provided herein, be given or served (a) by depositing the same in the
United States mail, postage paid, certified and addressed to the party to
be notified, with return receipt requested, (b) by overnight delivery
using a nationally recognized overnight courier, (c) by

 

43

 

personal delivery, or (d) by Portable Document
Format (PDF) so long as a copy thereof is also sent by one of the other
delivery methods set forth in Sections 12.10(a), (b) or (c).  Notice given in accordance herewith for all
permitted forms of notice other than by electronic mail, shall be effective
upon the earlier to occur of actual delivery to the address of the addressee or
refusal of receipt by the addressee.  In
no event shall this Agreement be altered, amended or modified by electronic
mail or electronic record.  A party’s
address may be changed by written notice to the other party; provided, however,
that no notice of a change of address shall be effective until actual receipt
of such notice.  Copies of notices are
for informational purposes only, and a failure to give or receive copies of any
notice shall not be deemed a failure to give notice.  Notices given by counsel to the Purchaser
shall be deemed given by Purchaser and notices given by counsel to the Seller
shall be deemed given by Seller.

 

12.11       Construction.  The
parties acknowledge that the parties and their counsel have reviewed and
revised this Agreement and agree that the normal rule of construction to
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.

 

12.12       Calculation of Time Periods; Business Day.  Unless otherwise specified, in computing any
period of time described herein, the day of the act or event after which the
designated period of time begins to run is not to be included and the last day
of the period so computed is to be included, unless such last day is not a
Business Day, in which event the period shall run until the end of the next day
which is a Business Day.  The last day of
any period of time described herein shall be deemed to end at midnight local
time in New York, New York.  As used
herein, the term “Business Day”“
means any day that is not a Saturday, Sunday or legal holiday for national
banks in the City of New York, New York or Colorado.

 

12.13       Execution in Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original, and all of
such counterparts shall constitute one Agreement.

 

12.14       Recordation. 
Without the prior written consent of Seller, there shall be no
recordation of either this Agreement or any memorandum hereof, or any affidavit
pertaining hereto, and any such recordation of this Agreement or memorandum or
affidavit by Purchaser without the prior written consent of Seller shall
constitute a default hereunder by Purchaser, whereupon Seller shall have the
remedies set forth in Section 10.1 hereof. 
In addition to any such remedies, Purchaser shall be obligated to
execute an instrument in recordable form releasing this Agreement or memorandum
or affidavit, and Purchaser’s obligations pursuant to this Section 12.14
shall survive any termination of this Agreement as a surviving obligation.

 

12.15       Further Assurances.  In addition to the acts and deeds recited
herein and contemplated to be performed, executed and/or delivered by either
party at Closing, each party agrees to perform, execute and deliver, but
without any obligation to incur any additional liability or expense, on or
after the Closing any further deliveries and assurances as may be reasonably
necessary to consummate the transactions contemplated hereby or to further
perfect the transfer of the Partnership Interests to Purchaser.

 

44

 

12.16       Discharge of Obligations.  The acceptance of the Partnership Interests
Power by Purchaser shall be deemed to be a full performance and discharge of
every representation and warranty made by Seller herein and every agreement and
obligation on the part of Seller to be performed pursuant to the provisions of
this Agreement, except those which are herein specifically stated to survive
Closing.

 

12.17       ERISA.  Under no
circumstances shall Purchaser have the right to assign this Agreement to any
person or entity owned or controlled by an “employee benefit plan” (as defined
in Section 3(3) of ERISA) if Seller’s sale of the Partnership
Interests to such person or entity would, in the reasonable opinion of Seller’s
ERISA advisors or consultants, create or otherwise cause a “prohibited
transaction” under ERISA or any other applicable law with an effect similar to
that of Section 406 of ERISA including, but not limited to, Section 4975
of the Code (each such law, a “Similar Law”). In the event Purchaser assigns this
Agreement or transfers any ownership interest in Purchaser, and such assignment
or transfer would make the consummation of the transaction hereunder a “prohibited
transaction” under ERISA or any Similar Law and would therefore either (a) necessitate
the termination of this Agreement, or (b) cause Seller to incur liability
under ERISA or such Similar Law if the transaction were consummated, then, in
either case, notwithstanding any contrary provision which may be contained
herein, Seller shall have the right to terminate this Agreement and thereafter
the parties hereto shall have no further rights or obligations hereunder,
except for rights and obligations which, by their terms, survive the
termination hereof.  Anything in this Section 12.17
to the contrary notwithstanding, Seller shall have no right to terminate this
Agreement under this Section 12.17 if Purchaser’s assignee expressly
reaffirms in a writing addressed to Seller the representation in Section 9.2.5.

 

12.18       No Third Party Beneficiary.  The provisions of this Agreement and of the
documents to be executed and delivered at Closing are and will be for the
benefit of Seller and Purchaser only and are not for the benefit of any third
party, and accordingly, no third party shall have the right to enforce the
provisions of this Agreement or of the documents to be executed and delivered
at Closing, except that a tenant of the Property may enforce Purchaser’s
indemnity obligation under Section 4.10 hereof.

 

12.19       Reporting Person.  Purchaser and Seller hereby designate First
American as the “reporting person” pursuant to the provisions of Section 6045(e) of
the Internal Revenue Code of 1986, as amended.

 

12.20       Post-Closing Access.  From and after the Closing, the Purchaser
will, at Seller’s sole cost and expense, permit Seller and Seller’s agents and
representatives access (and will permit copying of materials pertaining to the
period prior to the Closing), during business hours from time to time, to the
Lease Files and other Property-related information upon reasonable advance
notice to the Purchaser.  This Section 12.20
shall survive the Closing.

 

12.21       Waiver of Jury Trial.  SELLER AND PURCHASER HEREBY WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF, DIRECTLY OR INDIRECTLY, THIS AGREEMENT OR ANY OF THE RELATED
DOCUMENTS, ANY DEALINGS BETWEEN SELLER AND PURCHASER RELATING TO THE SUBJECT
MATTER OF THE TRANSACTIONS

 

45

 

CONTEMPLATED BY THIS AGREEMENT OR ANY RELATED
TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN SELLER
AND PURCHASER.  THE SCOPE OF THIS WAIVER
IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE
FILED IN ANY COURT (INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY
CLAIMS).  THIS WAIVER IS IRREVOCABLE,
MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS
WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT, ANY RELATED DOCUMENTS, OR ANY OTHER DOCUMENTS
OR AGREEMENTS RELATING TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR
ANY RELATED TRANSACTIONS.  IN THE EVENT
OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL
BY THE COURT.

 

12.22       Information and Audit Cooperation. Within 75 days after the
Closing Date, Seller, at Purchaser’s sole cost and expense and at no cost or
expense to Seller, shall allow Purchaser’s auditors access to the books and
records of Seller relating to the operation of the Property for the two (2) year
period prior to the Closing Date to enable Purchaser to comply with any
financial reporting requirements applicable to Purchaser, upon at least three (3) Business
Days prior written notice to Seller. In addition, Seller shall provide
Purchaser’s designated independent auditors a representation letter regarding
the books and records of the Property in substantially the form attached hereto
as Exhibit H.

 

12.23       Bulk Sales Laws.
Seller shall (i) comply with the bulk transfer requirements of the state
in which the Property is located, (ii) keep Purchaser apprised of Seller’s
compliance with such requirements and (iii) indemnify, defend and hold
Purchaser harmless of and from any and all liabilities, claims, demands and
expenses of any kind or nature which arise out of the failure of Seller to so
comply with such requirements.

 

[SIGNATURE PAGES, SCHEDULES AND EXHIBITS TO FOLLOW]

 

46

 

SIGNATURE PAGE TO AGREEMENT OF

PURCHASE AND SALE

BY AND BETWEEN

iSTAR CTL HOLDCO LLC,

AS SELLER

AND

TRT ACQUISITIONS LLC,

AS PURCHASER

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and
year written below.

 

	
  PURCHASER:

  
	
   

  	
   

  	
   

  	
   

  
	
  TRT ACQUISITIONS LLC, a Delaware
  limited liability company 

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  DCTRT
  Real Estate Holdco LLC, Its Sole Member 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  Dividend
  Capital Total Realty Operating Partnership LP, Its Sole Member 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Dividend
  Capital Total Realty Trust Inc., Its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Greg Moran

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Greg
  M. Moran

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice
  President

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
  June 25,
  2010

  	
   

  
							

 

	
  SELLER:

  	
   

  
	
   

  	
   

  	
   

  
	
  iSTAR NG INC., a Delaware
  corporation

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Samantha K. Garbus

  	
   

  
	
  Name:

  	
  Samantha
  K. Garbus

  	
   

  
	
  Title:

  	
  Senior
  Vice President

  	
   

  
	
  Date:

  	
  June 25,
  2010

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  iSTAR NG GENPAR INC., a Delaware
  corporation

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Samantha K. Garbus

  	
   

  
	
  Name:

  	
  Samantha
  K. Garbus

  	
   

  
	
  Title:

  	
  Senior
  Vice President

  	
   

  
	
  Date:
  

  	
  June 25,
  2010

  	
   

  

 

 

	
  AGREED TO FOR PURPOSES OF
  SECTION 4.3.2 AND 9.4:

  
	
   

  	
   

  	
   

  
	
  iSTAR FINANCIAL INC., a Maryland
  corporation

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Samantha K. Garbus

  	
   

  
	
  Name:

  	
  Samantha
  K. Garbus

  	
   

  
	
  Title:

  	
  Senior
  Vice President

  	
   

  
	
  Date:

  	
  June 25,
  2010

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