Document:

exv10w70

 

Exhibit 10.70

PURCHASE AND SALE

AGREEMENT

BETWEEN

3400 DATA DRIVE ASSOCIATES, LLC

as

“SELLER”

AND

HINES REIT PROPERTIES, L.P.

as

“PURCHASER”

DATED AS OF NOVEMBER 1, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	SECTION 1 PURCHASE AND SALE
	 	 	1	 
	 
	 	 	 	 
	SECTION 2 PURCHASE PRICE
	 	 	2	 
	 
	 	 	 	 
	2.1 Purchase Price; Delivery
	 	 	2	 
	 
	 	 	 	 
	SECTION 3 DELIVERIES, INSPECTION AND REPRESENTATIONS
	 	 	2	 
	 
	 	 	 	 
	3.1 Inspection Period
	 	 	2	 
	3.2 Title and Survey
	 	 	6	 
	3.3 Termination of Contracts
	 	 	8	 
	 
	 	 	 	 
	SECTION 4 REPRESENTATIONS AND WARRANTIES
	 	 	8	 
	 
	 	 	 	 
	4.1 Purchaser’s Representations and Warranties
	 	 	8	 
	4.2 Seller’s Representations and Warranties
	 	 	9	 
	4.3 “AS IS” SALE
	 	 	12	 
	4.4 RELEASE
	 	 	13	 
	 
	 	 	 	 
	SECTION 5 CLOSING
	 	 	15	 
	 
	 	 	 	 
	5.1 Closing
	 	 	15	 
	5.2 Possession
	 	 	15	 
	5.3 Proration
	 	 	15	 
	5.4 Closing Costs
	 	 	17	 
	5.5 Seller’s Obligations in Connection With the Closing
	 	 	18	 
	5.6 Purchaser’s Obligations in Connection With the Closing
	 	 	19	 
	5.7 Closing Escrow
	 	 	20	 
	5.8 Property Management Agreement
	 	 	20	 
	5.9 Purchaser’s Closing Conditions
	 	 	20	 
	5.10 Seller’s Closing Conditions
	 	 	21	 
	 
	 	 	 	 
	SECTION 6 RISK OF LOSS
	 	 	22	 
	 
	 	 	 	 
	6.1 Condemnation
	 	 	22	 
	6.2 Casualty
	 	 	23	 
	 
	 	 	 	 
	SECTION 7 DEFAULT; TERMINATION
	 	 	24	 
	 
	 	 	 	 
	7.1 Default by Seller
	 	 	24	 
	7.2 Default by Purchaser
	 	 	25	 
	7.3 Confirmation of Termination
	 	 	26	 
	7.4 Survival
	 	 	26	 
	 
	 	 	 	 
	SECTION 8 FUTURE OPERATIONS
	 	 	26	 
	 
	 	 	 	 
	8.1 Maintenance and Contracts
	 	 	26	 

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	8.2 Leasing
	 	 	26	 
	8.3 General
	 	 	27	 
	 
	 	 	 	 
	SECTION 9 MISCELLANEOUS
	 	 	27	 
	 
	 	 	 	 
	9.1 Notices
	 	 	27	 
	9.2 Real Estate Commissions
	 	 	30	 
	9.3 Entire Agreement
	 	 	30	 
	9.4 Amendment
	 	 	30	 
	9.5 Headings
	 	 	31	 
	9.6 Time of Essence
	 	 	31	 
	9.7 Successors and Assigns; Assignments
	 	 	31	 
	9.8 Invalid Provision
	 	 	31	 
	9.9 Attorneys’ Fees
	 	 	31	 
	9.10 Confidentiality
	 	 	32	 
	9.11 No Survival
	 	 	32	 
	9.12 Multiple Counterparts; Facsimile
	 	 	32	 
	9.13 Exhibits
	 	 	32	 
	9.14 Construction; Independent Counsel
	 	 	32	 
	9.15 No Recordation
	 	 	33	 
	9.16 JURY WAIVER
	 	 	33	 
	9.17 Governing Law
	 	 	33	 
	9.18 Documentary Transfer Tax
	 	 	33	 
	9.19 Audit Cooperation
	 	 	33	 
	 
	 	 	 	 
	SECTION 10 ESCROW PROVISIONS
	 	 	34	 
	 
	 	 	 	 
	10.1 Escrow Account and Notice
	 	 	34	 
	10.2 Dispute Regarding Escrow Payments
	 	 	35	 
	10.3 Limitation on Escrow Agent Liability
	 	 	35	 
	10.4 Survival
	 	 	35	 

EXHIBIT A —  Legal Description Of Land

EXHIBIT B —  Form of Deed

EXHIBIT C —  Form of Assignment of Leases

EXHIBIT D —  Form of Assignment & Assumption of Permits and Warranties

EXHIBIT E —  Form of Bill of Sale

EXHIBIT F —  Form of FIRPTA Affidavit

EXHIBIT G —  Form of Tenant Notice

EXHIBIT H —  Form of Estoppel Certificate

EXHIBIT I  —  Personal Property

EXHIBIT J  —  Property Documents

ADDENDUM TO PURCHASE AND SALE AGREEMENT — Addendum Regarding AVF III’s Obligations

ii

 

PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT (this “Agreement”), dated as of November 1, 2006 (the
“Effective Date”), is made by and between 3400 DATA DRIVE ASSOCIATES, LLC, a Colorado
limited liability company (“Seller”), and HINES REIT PROPERTIES, L.P., a Delaware limited
partnership (“Purchaser”).

     In consideration of the mutual covenants and agreements herein contained, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and
Purchaser agree as follows:

SECTION 1

PURCHASE AND SALE

     1.1 Subject to the terms and conditions of this Agreement, Seller hereby agrees to sell,
transfer and convey to Purchaser, and Purchaser hereby agrees to purchase from Seller, all of
Seller’s right, title and interest in and to the following property (collectively, the
“Property”):

          1.1.1 That certain parcel of land located in the City of Rancho Cordova, Sacramento County,
California, with the following street address: 3400 Data Drive, which is legally described on
Exhibit A, together with all of Seller’s right, title and interest in and to (a) any and
all hereditaments, privileges, easements, rights-of-way, and appurtenances belonging thereto or
benefiting the same, (b) any land lying in the bed of any street, road, alley or right-of-way, open
or closed, adjacent to or abutting the land, and (c) any and all air rights, subsurface rights,
development rights, entitlements, wastewater capacities and credit reservations, and water rights
pertaining to the land (collectively, the “Land”);

          1.1.2 The buildings, structures, improvements and fixtures located on the Land (collectively,
the “Improvements”; the Land and the Improvements are collectively referred to as the
“Real Property”);

          1.1.3 Seller’s interest in the Lease dated January 12, 2003, with Catholic Healthcare West
(the “Existing Tenant”) in effect with respect to the Real Property as of the Effective
Date (together with all amendments and modifications thereto, the “Lease”), together with
all security deposits, guarantees and other items given as security therefor;

          1.1.4 Seller’s right, title and interest in the personal property set forth in Exhibit
I attached hereto, together with all other personal property owned by Seller and located at the
Property, including, but not limited, tools, equipment, supplies, building materials and stock (the
“Tangible Personal Property”);

          1.1.5 Seller’s right, title and interest in all intangible property used in connection with
the Real Property and the Tangible Personal Property, including, but not limited to, (a) all
trademarks and trade names used in connection with the Property, (b) all plans and specifications
and other architectural and engineering drawings, if any, with respect to the Real Property, and
(c) all consents, authorizations, variances or waivers, licenses, permits, certificates of
occupancy, approvals, dedications, subdivision maps and entitlements from any governmental

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or quasi-governmental agency, department, board, commission, bureau or other entity or
instrumentality in respect of the Real Property (collectively, the “Intangible Property”,
together with the Tangible Personal Property, the “Personal Property”); and

          1.1.6 Seller’s right, title and interest in all assignable warranties, guarantees, licenses,
franchises and permits related to the Property, together with any new contracts to which Purchaser
consented pursuant to Section 8.1.2 (collectively, the “Agreements”).

SECTION 2

PURCHASE PRICE

     2.1 Purchase Price; Delivery.
Purchaser shall pay to Seller, as the purchase price for the
Property, the amount of Thirty-Three Million Dollars ($33,000,000.00) (the “Purchase
Price”), which shall be paid as follows:

          2.1.1 Initial Deposit. Within two (2) Business Days (as defined in Section
9.6) following the Effective Date, Purchaser must deposit with Stewart Title of Denver, Inc.,
whose address is listed in Section 9.1 (“Escrow Agent”), the amount of Two Million
Dollars ($2,000,000.00) (together with any accrued interest, the “Earnest Money”). This
Agreement shall automatically terminate if Purchaser does not deposit the Earnest Money with Escrow
Agent by such date.

          2.1.2 Balance of the Purchase Price. Subject to the adjustments set forth in
Sections 5.3 and 5.4, Purchaser shall deliver the balance of the Purchase Price to
Escrow Agent as confirmed by Escrow Agent before the close of business on the last Business Day
immediately before Closing Date (as defined in Section 5.1). The deposit shall be made by
wire transfer of immediately available funds in accordance with the terms and conditions of this
Agreement and in accordance with the amount stated on the Settlement Statement (as defined in
Subsection 5.5.11).

SECTION 3

DELIVERIES, INSPECTION AND REPRESENTATIONS

     3.1 Inspection Period.

          3.1.1 Contingency Date. By 5:00 p.m. Pacific Time on the earlier of (i) November 15,
2006, or (ii) the date that is fifteen (15) Business Days after the Effective Date hereof (said
time and date, the “Due Diligence Contingency Date”), Purchaser shall determine whether the
Property is suitable to purchase in Purchaser’s sole discretion. Purchaser shall have the right,
for any or no reason, to terminate this Agreement on or before the Due Diligence Contingency Date
and the Earnest Money shall be returned to Purchaser and neither party shall have any liability to
the other except for obligations which expressly survive termination (“Surviving
Obligations”). If Purchaser fails to deliver written notice to Seller exercising this
termination right on or before the Due Diligence Contingency Date, then the Earnest Money shall,
except as otherwise specifically set forth herein, be non-refundable to Purchaser and
Purchaser shall be conclusively deemed to have approved all aspects of the Property except as
otherwise specifically provided herein.

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          3.1.2 Deliveries. Seller has already delivered to Purchaser the documents, plans and
specifications, service contracts and other materials listed on Exhibit J attached hereto
and incorporated herein by this reference. Additionally, Seller has provided Purchaser with access
to a website with the information listed on Exhibit J under the heading “Made available via
Dynafile Website”. The documents, plans and specifications, service contracts and other
information listed on Exhibit J as well as any other non-proprietary or attorney-client
confidential documents or information in Seller’s or its property manager’s files, including, but
not limited to their lease files, are referred to herein as the “Property Documents”. By
executing this Agreement, Purchaser is acknowledging receipt and/or access to all of the Property
Documents listed on Exhibit J. Seller agrees to continue to provide Purchaser with access
to the Property Documents. Purchaser agrees and acknowledges that it is subject to the
confidentiality provision in Section 9.10 with regard to the documents and other
information provided by Seller under this Section 3.1.2.

          3.1.3 Copies of Documents for Inspection. Purchaser, at its expense, may make copies
of the Property Documents. If this Agreement is terminated for any reason prior to Closing,
Purchaser shall, upon receipt of written request from Seller, promptly return all Property
Documents (and any copies thereof) in its possession or control to Seller, unless the same is
needed in connection with any action to be taken against Seller in connection with a default by
Seller hereunder.

          3.1.4 No Representations as to Property Documents. Purchaser acknowledges that the
Property Documents are provided or made available for inspection with no representations or
warranties (except for Seller’s representations and warranties expressly set forth in Section
3.1.4, Section 4.2 and in the closing documents attached hereto as Exhibits) as to the truth,
accuracy, completeness, or methodology of preparation of the Property Documents, or otherwise, of
any kind, including without limitation any reports or audits or any other materials, data or other
information supplied to Purchaser in connection with Purchaser’s inspection of the Property.
Seller expressly disclaims any such representation or warranty (except for Seller’s representations
and warranties expressly set forth in Section 3.1.4, Section 4.2 and in the closing
documents attached hereto as Exhibits). Purchaser acknowledges that the Property Documents are
provided only for Purchaser’s convenience as a starting point for commencing Purchaser’s own
examination of the Property; provided, however, Seller represents that it has not intentionally
withheld any Property Documents from Purchaser. Purchaser agrees that, except for Seller’s
representations and warranties expressly set forth in Section 3.1.4, Section 4.2 and in the
closing documents attached hereto as Exhibits, it will rely exclusively on its own independent
investigation and evaluation of every aspect of the Property and not on the Property Documents
supplied by Seller. Except for Seller’s representations and warranties expressly set forth in
Section 3.1.4, Section 4.2 and in the closing documents attached hereto as Exhibits,
Purchaser expressly disclaims any intent and waives any right to rely on any of the Property
Documents provided to it by Seller, and agrees that it shall rely solely on its own independently
developed or verified information.

          3.1.5 Right of Entry; Limitations.

               (a) Right of Entry. Purchaser and its employees, agents and independent contractors,
at Purchaser’s sole risk, shall have from and after the Effective Date the

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right to enter the
Property during normal business hours and upon prior notice to Seller to inspect the same, conduct
tenant interviews, perform surveys, engineering studies, environmental assessments and other tests
and to conduct such other investigations and activities consistent with the purposes of this
Agreement (each an “Inspection”). Except as expressly described otherwise in this
Section 3.1.5(a), Purchaser agrees and acknowledges that it and its employees, agents and
independent contractors shall not conduct an Inspection without being accompanied by a
representative of Seller. Purchaser must provide Seller with at least forty-eight (48) hours prior
notice of its desire to conduct an Inspection. After receipt of such notice from Purchaser, Seller
shall work with Purchaser to select a mutually agreeable date and time during normal business hours
for Purchaser or its employees, agents and independent contractors to conduct an Inspection
accompanied by Seller’s representative. If Seller and Purchaser fail to agree on date and time for
an Inspection because of Seller’s bad faith or Seller fails to provide a representative for an
Inspection at the agreed upon time and date, Purchaser shall be permitted to conduct the Inspection
without being accompanied by Seller or its representative. Purchaser is solely responsible for the
costs of any such entry, survey, testing or investigation, and shall indemnify Seller against any
cost thereof.

               (b) Limitations. Purchaser must not, under any circumstances, compromise or affect
the structural integrity of the Improvements or violate any applicable law, rule or regulation.
Except as provided below in this Section 3.1.5(b), neither Purchaser nor any of its agents,
representatives or independent contractors may contact any tenant at the Property or Seller’s
service providers and vendors (each an “Interview”). Purchaser shall give Seller at least
forty-eight (48) hours prior notice of its desire to conduct an Interview. After receipt of such
notice from Purchaser, Seller shall work with Purchaser to select a mutually agreeable date and
time during normal business hours for Seller’s representative to accompany Purchaser or its agents,
representatives or independent contractors in connection with an Interview. If Seller and
Purchaser fail to agree on a date and time because of Seller’s bad faith or if Seller fails to make
a representative available at the agreed upon date and time, Purchaser shall be permitted to
conduct the Interview without the presence of Seller’s representative. Purchaser must obtain
Seller’s prior written approval, which Seller may withhold in its sole and absolute discretion, of
the scope and method of any physically intrusive inspection, testing or investigation of the
Property, including, but without limitation, any inspection which would involve taking subsurface
borings or related investigations, and any inspection that would alter the physical condition of
the Property in any material respect (provided, however, that nothing herein shall prohibit
Purchaser or any of its engineers or contractors from performing a non-invasive Phase I
environmental assessment or report or commercially reasonable non-invasive test for mold,
moisture-related conditions, asbestos and asbestos containing materials, seismic evaluations, air
quality tests or any similar non-invasive test which does not result in any material damage to the
Property). The right of entry granted in this Agreement is subject to the rights of any grantees
under any existing recorded easements and the rights of tenants of the Property, and Purchaser
shall not unreasonably interfere with the rights of such grantees and tenants.

               (c) Restoration and Indemnity. Purchaser shall restore the Property to substantially
the same condition existing immediately prior to Purchaser’s inspection thereof if Purchaser or its
contractors, consultants, employees or agents cause damage to the Property resulting from such
inspection. Purchaser agrees to indemnify, defend and hold harmless Seller, its members, agents,
employees, officers, directors, affiliates, counsel, advisors and asset

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managers for any loss,
liability, claims, damage, cost or expense caused by Purchaser or its contractors, consultants,
employees or agents acts on the Property including, but not limited to, mechanic’s and
materialmen’s liens filed against Seller or the Property and Purchaser’s failure to restore the
Property as required in this Subsection 3.1.5(c), except to the extent arising solely from
(i) the gross negligence or willful misconduct of Seller, its members, officers, directors,
affiliates, counsel, advisors, asset managers, employees, representatives, agents or consultants,
or (ii) any pre-existing liabilities, conditions or other matters merely discovered by Purchaser or
its employees, representatives, agents or consultants and promptly reported to Seller (e.g., latent
environmental contamination, latent construction or other physical defects or conditions, etc.).
Purchaser’s indemnification obligations pursuant to this Subsection shall survive and be
enforceable after the Closing or earlier termination of this Agreement.

               (d) Copies of Reports. If Purchaser elects not to purchase the Property, upon the
request of Seller, Purchaser shall deliver copies of any final third-party property condition
reports Purchaser obtains in connection with such inspection to Seller, including, without
limitation, any Phase I environmental site assessment performed by or on behalf of Purchaser, but
excluding any internal reports produced by Seller. Any such delivery shall be made without
recourse to Purchaser nor any representation or warranty from Purchaser.

               (e) Insurance. Purchaser shall maintain a policy of comprehensive general liability
insurance, with a single combined limit of not less than Two Million Dollars ($2,000,000), insuring
all activity and conduct of Purchaser and its agents, representatives and independent contractors
during any such entry, including contractual liability coverage. Seller shall be named as
additional insured on such comprehensive general liability policy, and Purchaser shall provide
proof of such insurance to Seller, in a form reasonably acceptable to Seller, prior to any such
entry.

               (f) Governmental Approvals. Nothing contained in this Agreement shall be construed as
authorizing Purchaser to apply for a zoning change, variance, subdivision maps, lot line
adjustment, or other discretionary governmental act, approval or permit with respect to the
Property prior to the Closing, and Purchaser agrees not to do so. Purchaser agrees not to submit
any reports, studies or other documents, including, without limitation, plans and specifications,
impact statements for water, sewage, drainage or traffic, environmental review forms, or energy
conservation checklists to any governmental agency, or any amendment or modification to any such
instruments or documents prior to the Closing, except to the extent required to do so under
applicable law. Purchaser’s obligation to purchase the Property is not subject to or conditioned
upon Purchaser’s obtaining any variances, zoning amendments, subdivision maps, lot line adjustment
or other discretionary governmental act, approval or permit.

               (g) Plumbing Leak. Seller hereby discloses to Purchaser that a plumbing leak occurred
in a chase and janitors room between the first and second floors of the
building located on the Property. Seller agrees to repair the water damage caused by the leak
to Purchaser’s reasonable satisfaction on or before the Closing.

          3.1.6 Knowledge of the Property. Seller agrees and acknowledges that as a result of
its inspection of the Property, as to many potentially relevant facts concerning the

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Property,
Seller is not in a position to have any more knowledge of the Property than Purchaser, and through
the due diligence process Purchaser can be expected to obtain greater knowledge concerning the
Property than is currently held by Seller.

     3.2 Title and Survey.

          3.2.1 Title Commitment. As soon as practicable following the Effective Date, Seller
shall obtain, from Stewart Title of Denver, Inc. (the “Title Company”), and deliver to
Purchaser a A.L.T.A. commitment for an extended coverage owner’s policy of title insurance (the
premium for such A.L.T.A. extended coverage shall be paid by Purchaser and Seller shall pay the
C.L.T.A. portion of such coverage, all in accordance with Section 5.4) (the “Title
Commitment”) with respect to the Real Property issued by the Title Company along with a legible
copy of each instrument listed as an exception thereon.

          3.2.2 Survey. As soon as practicable following the Effective Date, Purchaser may
order at its sole cost an update of the Existing Survey (the “Amended Survey”) of the Real
Property from the surveyor company who produced the Existing Survey (the “Surveyor”).
Purchaser will cause a duplicate of the Amended Survey to be delivered to Seller concurrently with
the delivery thereof to Purchaser. If the Amended Survey is not received three (3) Business Days
before the Title Approval Date, Purchaser may make objections to matters shown on the Amended
Survey but not shown on the Existing Survey to which a reasonable purchaser would object within
five (5) days after its receipt of the Amended Survey, but in no event after the Due Diligence
Contingency Date, by providing a title objection notice (also, a Title Objection Notice, as
hereinafter defined) to Seller. If Purchaser sends such notice to Seller, Purchaser and Seller
shall have the same rights and obligations with respect to such notice as apply to Purchaser’s
Title Objections under Sections 3.2.3 and 3.2.4 hereof and the Closing Date shall
be extended to accommodate the cure and response periods set forth in Section 3.2.4 and to
occur five (5) Business Days after the expiration of the last of such cure and response periods if
this Agreement is not terminated pursuant to Section 3.2.4. All matters in the Amended
Survey not timely objected to by Purchaser shall be deemed to be waived by Purchaser and such
matters shall be considered Approved Title Matters (as hereinafter defined).

          3.2.3 Title Objections. By the earlier of (a) five (5) Business Days after
Purchaser’s receipt of the last of the Title Commitment and the Amended Survey (but in all events
within five (5) business days after the Effective Date), or (b) November 9, 2006 (in either event,
the “Title Approval Date”), Purchaser shall have examined the Title Commitment and Amended
Survey or New Survey (or the Existing Survey if Purchaser does not receive the Amended Survey
before the Title Approval Date), and shall make any objections thereto (“Purchaser’s Title
Objections”) by written notice to Seller (the “Title Objection Notice”). The Title
Objection Notice shall state with specificity the reasons for Purchaser’s objection and the
curative steps requested by Purchaser which would remove the basis for Purchaser’s objection.
Any objections to matters shown in the Title Commitment and the Amended Survey or New Survey (or
the Existing Survey if Purchaser does not receive the Amended Survey before the Title Approval
Date) to which Purchaser has not objected by the Title Approval Date shall be deemed to be waived
by Purchaser and such matters shall be referred to as “Approved Title Matters.”

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          3.2.4 Cure of Title Objections. Seller shall notify Purchaser of whether it intends
to cure any or all of Purchaser’s Title Objections within two (2) Business Days of receipt of a
Title Objection Notice. If Seller fails to notify Purchaser of whether or not it intends to cure
any or all of the Purchaser’s Title Objections within such two (2) Business Day period, Seller
shall be deemed to have notified Purchaser that it will not cure any of Purchaser’s Title
Objections. If Seller confirms in writing that it will cure some or all of Purchaser’s Title
Objections, Seller is allowed until the Closing Date to cure Purchaser’s Title Objections. If
Seller agrees to cure any of Purchaser’s Title Objections, has used commercially reasonable efforts
pursing such cure, and such cure is not completed prior to the Closing Date, Seller shall not be in
default of this Agreement, provided, however, that Purchaser may terminate the Agreement on the
Closing Date by providing written notice to Seller and the Earnest Money shall be returned to
Purchaser and neither party shall have any liability to the other except for the Surviving
Obligations. If Seller fails to use commercially reasonable efforts to cure any objection which
Seller has agreed to cure, Seller shall be in default under this Agreement. If Seller notifies
Purchaser that it does not intend to cure all of Purchaser’s Title Objections or is deemed to have
elected not to cure Purchaser’s Title Objections, then, by providing written notice of Purchaser’s
election within two (2) Business Days after Purchaser’s receipt of Seller’s notice or deemed
notice, or on the Closing Date with respect to any matter which Seller agrees to cure but remains
uncured on Closing Date, Purchaser may elect to do one of the following:

	 	(a)	 	Terminate this Agreement and receive a refund
of the Earnest Money in which case neither party shall have any further
liability to the other except for Surviving Obligations; or
	 
	 	(b)	 	Waive one or more of the uncured Purchaser’s
Title Objections and proceed to Closing.

          If Purchaser does not timely give notice of its election to terminate this Agreement under
Subsection 3.2.4(a) or to proceed to Closing under Subsection 3.2.4(b) as provided
herein, Purchaser shall be deemed to have elected to waive Purchaser’s Title Objections and proceed
to Closing under Subsection 3.2.4(b).

          Notwithstanding anything herein to the contrary, Seller shall be obligated to pay, discharge
and remove all Monetary Objections. As used herein, the term “Monetary Objections” shall
mean (a) any mortgage, deed to secure debt, deed of trust or similar security instrument
encumbering all or any part of the Property, (b) any mechanic’s, materialman’s or similar lien
(unless resulting from any act or omission of Purchaser or any of its agents, contractors,
representatives or employees or any tenant of the Property, and, in the case of any such lien
arising from the act or omission of a tenant, which does not attach to the interest of the Seller
in and to the Property), (c) the lien of real or personal property taxes, assessments (general or
special) or governmental charges affecting all or any portion of the Property which are
delinquent or which are due and payable at or prior to Closing, and (d) any judgment of record
against Seller or otherwise affecting the Property.

          3.2.5 “Permitted Encumbrances” means all of the Approved Title Matters and any
Purchaser’s Title Objections that Purchaser has waived or is deemed to have waived.

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          3.2.6 Purchaser may, at or prior to Closing, notify Seller in writing of any additional
objections to title to the Real Property (a) raised by the Title Company between the Title Approval
Date and the Closing, and (b) not disclosed by the Title Company or otherwise known to Purchaser
prior to the Title Approval Date, provided that Purchaser must notify Seller of such new objection
to title within three (3) Business Days of obtaining notice or knowledge of the existence of such
matter. If Purchaser sends such notice to Seller, Purchaser and Seller shall have the same rights
and obligations with respect to such notice as apply to Purchaser’s Title Objections under
Sections 3.2.3 and 3.2.4 hereof and the Closing Date shall be extended to
accommodate the cure and response periods set forth in Section 3.2.4 and to occur five (5)
Business Days after the expiration of the last of such cure and response periods if this Agreement
is not terminated pursuant to Section 3.2.4.

     3.3 Termination of Contracts. All service contracts related to the Property entered into
by or on behalf of Seller or its property manager shall be terminated on or before the Closing
Date.

SECTION 4

REPRESENTATIONS AND WARRANTIES

     4.1 Purchaser’s Representations and Warranties.
Purchaser represents and warrants to
Seller that as of the Effective Date and as of Closing:

          4.1.1 Authority. Purchaser is a limited partnership, duly organized and in good
standing under the laws of the State of Delaware, and has the power to enter into this Agreement
and to execute and deliver this Agreement and to perform all duties and obligations imposed upon it
hereunder, and Purchaser has obtained all necessary corporate, partnership, limited liability
company, or other organizational authorizations required in connection with the execution, delivery
and performance of this Agreement and the transaction contemplated herein and has obtained the
consent of all entities and parties (whether private or governmental) necessary to bind Purchaser
to this Agreement.

          4.1.2 No Conflicts. Neither the execution nor the delivery of this Agreement, nor the
consummation of the purchase and sale transaction contemplated hereby, nor the fulfillment of or
compliance with the terms and conditions of this Agreement conflict with or will result in the
breach of any of the terms, conditions or provisions of any material agreement or instrument to
which Purchaser is a party or by which Purchaser or any of Purchaser’s assets is bound.

          4.1.3 Litigation. As of the Effective Date, to Purchaser’s Knowledge, there is no
pending, actual or threatened litigation, action or other proceeding against Purchaser in any court
or by or before any other governmental agency or instrumentality which would materially and
adversely affect the ability of Purchaser to carry out the transactions contemplated by this
Agreement.

          4.1.4 Bankruptcy. Purchaser has no pending or actual or, to Purchaser’s Knowledge,
threatened (i) general assignments for the benefit of creditors, (ii) involuntary petitions in
bankruptcy or involuntary petitions by Purchaser’s creditors, (iii) appointments of a

8

 

receiver to
take possession of all or substantially all of Purchaser’s assets, (iv) attachments or other
judicial seizure of all, or substantially all, of Purchaser’s assets, (v) inability to pay its
debts as they come due, or (vi) offers of settlement, extension or compromise to its creditors
generally.

          4.1.5 Due Diligence Representation. Purchaser represents and warrants to Seller that
Purchaser (i) is an experienced and sophisticated purchaser of properties such as the Property,
(ii) is specifically familiar with the Property, and (iii) has inspected and examined, or prior to
the Due Diligence Contingency Date will inspect and examine, all aspects of the Property and its
current condition that Purchaser believes to be relevant to its decision to consummate its purchase
of the Property. Purchaser acknowledges that Seller does not occupy the Property.

          4.1.6 Patriot Act of Representations. Purchaser is not (i) a person designated by the
U.S. Department of Treasury’s Office of Foreign Assets Control from time to time as a “specially
designated national or blocked person” or similar status, or (ii) a person described in Section 1
of U.S. Executive Order 13224, issued on September 23, 2001 or listed on the Annex (as amended to
date) of such Executive Order, or (iii) a person otherwise identified by any government or legal
authority as a person with whom Seller or any of its constituents or affiliates are prohibited from
transacting business.

   This Section 4.1 shall survive the Closing for a period of nine (9) months.

     4.2 Seller’s Representations and Warranties. Seller represents and warrants to Purchaser
that as of the Effective Date and the Closing:

          4.2.1 Authority. Seller is a limited liability company, duly organized and in good
standing under the laws of the State of Colorado and qualified to conduct business in the State of
California, and has the power to enter into this Agreement and to execute and deliver this
Agreement and to perform all duties and obligations imposed upon it hereunder, and Seller has
obtained all necessary corporate, partnership, limited liability company, or other organizational
authorizations required in connection with the execution, delivery and performance of this
Agreement and the transaction contemplated herein and has obtained the consent of all entities and
parties (whether private or governmental) necessary to bind Seller to this Agreement.

          4.2.2 No Conflicts. Neither the execution nor the delivery of this Agreement, nor the
consummation of the purchase and sale transaction contemplated hereby, nor the fulfillment of or
compliance with the terms and conditions of this Agreement conflict with or
will result in the breach of any of the terms, conditions or provisions of any material
agreement or instrument to which Seller is a party or by which Seller or any of Seller’s assets is
bound.

          4.2.3 Bankruptcy. Seller has no pending or actual or, to Seller’s Knowledge,
threatened, (i) general assignments for the benefit of creditors, (ii) involuntary petitions in
bankruptcy or involuntary petitions by Seller’s creditors, (iii) appointments of a receiver to take
possession of all or substantially all of Seller’s assets, (iv) attachments or other judicial
seizure of all, or substantially all, of Seller’s assets, (v) inability to pay its debts as they
come due, or (vi) offers of settlement, extension or compromise to its creditors generally.

9

 

          4.2.4 Condemnation. Seller has not been served with papers filing a condemnation
action affecting the Property. To Seller’s knowledge, there are no threatened condemnation
proceedings affecting the Property which would materially impair the current use and operation of
the Property or materially diminish the value of the Property.

          4.2.5 Litigation. To Seller’s knowledge (i) as of the Effective Date there is no
pending, actual or threatened litigation affecting the Property or Seller and (ii) as of the
Closing Date there is no pending, actual or threatened litigation affecting the Property that is
not covered by insurance.

          4.2.6 Not Foreign Person. Seller is not a foreign person within the meaning of
Section 1445 of the Internal Revenue Code of 1986, as amended.

          4.2.7 Violations. Seller has not received any written notice from any governmental
authority alleging that the Property, or any portion thereof, is in material violation of any law,
rule or regulation affecting the Property which has not been cured as of the Effective Date, or if
such matter arises after the Effective Date, as of the Closing Date.

          4.2.8 Lease and Contracts. As of the Closing, except for the Lease and Agreements,
there will not be any outstanding contracts for any improvements to the Property entered into or
assumed orally or in writing by Seller or its property manager or any other contracts affecting or
in any way relating to the Property entered into or assumed orally or in writing by Seller or its
property manager, including any construction, management, leasing or listing agreements, or any
other written or oral agreements with adjacent or nearby property owners or lessees or other third
parties not filed of record, which will be binding on Purchaser.

          4.2.9 Tenant Leases.

               (a) The Property Documents include a complete, true and correct copy of the Lease, including
all modifications and amendments thereto, and the Lease is the only lease or occupancy agreement
affecting the Property; and

               (b) Seller has neither given nor received a written notice of default under the Lease which
has not been cured before the Closing Date. To Seller’s knowledge, neither Tenant nor Landlord are
in default under the Lease.

               (c) Seller has not encumbered, pledged or assigned the Lease, except for any encumbrances or
assignments that will be released as of the Closing Date.

          4.2.10 Special Taxes. During Seller’s ownership period, Seller has received no notice
from a public authority that there are contemplated improvements to or adjoining the Real Property
by public authority, the cost of which are to be assessed as special taxes against the Real
Property.

          4.2.11 Environmental Condition. Except as disclosed in the Property Documents and any
tests or investigations conducted by Purchaser, and except for small quantities relating to the
operation of the Improvements that have been kept and used in accordance with all applicable
Environmental Laws (as defined in Section 4.4), to Seller’s Knowledge (i) the

10

 

Property does
not contain any Hazardous Substances nor (ii) has there been any production, disposal or storage on
or from the Property of any Hazardous Substances by Seller or by any tenant. To Seller’s Knowledge
and except as disclosed in the Property Documents and any tests or investigations conducted by
Purchaser, there has been no underground storage tanks installed on or under the Property nor has
the Property been used as a hazardous waste dump. Seller has received no written notice of any
violation of any applicable Environmental Laws nor has Seller received written notice of a formal
inquiry by a governmental entity or agency into any alleged violation of any applicable
Environmental Laws which has not been cured.

          4.2.12 Insurance. During Seller’s ownership period, Seller has not received any
written notice from any insurance company or board of fire underwriters of any defects or
inadequacies in or on the Property or any part or component thereof that would adversely affect the
insurability of the Property or cause any material increase in the premiums for insurance for the
Property.

          4.2.13 Options. Other than Existing Tenant’s right to purchase the Property, which
right shall be terminated with regard to this transaction on or before the Due Diligence
Contingency Date, no other tenant or any other party has any right or option (including any right
of first refusal or right of first offer) to purchase all or any part of the Property or any
interest therein.

          4.2.14 Brokerage Agreements. There are no lease brokerage agreements, leasing
commission agreements or other agreements providing for payments of any amounts for leasing
activities or procuring tenants with respect to the Property or any portion or portions thereof.

          4.2.15 Tax Protests. Seller has not filed, and has not retained anyone to file,
notices of protests against, or to commence any action to review, real property tax assessments
against the Property.

          4.2.16 Violations. During Seller’s ownership period, Seller has not received any
written notice of violation of any code, law, rule, regulation or other governmental or
quasi-governmental requirement for a violation which has not been cured, or written notice of an
intention to revoke any certificate of occupancy, license, or permit of material importance to the
use of the Property as an office building.

          4.2.17 Patriot Act Representations. Seller is not (i) a person designated by the U.S.
Department of Treasury’s Office of Foreign Assets Control from time to time as a “specially
designated national or blocked person” or similar status, or (ii) a person described in
Section 1 of U.S. Executive Order 13224, issued on September 23, 2001 or listed on the Annex
(as amended to date) of such Executive Order, or (iii) a person otherwise identified by any
government or legal authority as a person with whom Purchaser or any of its constituents or
affiliates are prohibited from transacting business.

          4.2.18 Property Documents. Seller represents to Purchaser that it has not
intentionally withheld any Property Documents from Purchaser.

          4.2.19 Definition of Seller’s Knowledge. “Seller’s Knowledge” means the
current actual knowledge of Scott McCormick, the asset manager of the Property, who is the

11

 

individual in Seller’s organization who works directly with the property manager (“Seller’s
Representative”) without independent inquiry or investigation; provided that “Seller’s
Knowledge” does not include the knowledge of any other person or firm and shall not apply to, or be
construed to include, information or material which may be in the possession of Seller generally or
incidentally, but of which Seller’s Representative is not actually aware.

          4.2.20 Right to Update. Prior to the Closing Date, Seller may notify Purchaser in
writing of any facts, conditions or circumstances which come to Seller’s Knowledge that render any
of the representations and warranties set forth in this Section 4.2 in any way inaccurate,
incomplete, incorrect or misleading. Except as set forth below, in the event of any update to
Seller’s warranties and representations, Seller shall not be in default hereunder and shall have no
liability as a result thereof. If an update makes any representation or warranty previously given
materially inaccurate, incomplete, incorrect or misleading, Purchaser may, at its option, (i)
proceed to purchase the Property pursuant to this Agreement, in which case Purchaser’s objection to
the inaccuracy of Seller’s representations and warranties shall be deemed waived by Purchaser, or
(ii) terminate this Agreement by giving written notice thereof to Seller, in which case the Earnest
Money shall be refunded to Purchaser and neither party shall have any further rights or obligations
hereunder except for the Surviving Obligations; provided, however, if such inaccuracy is
attributable to events or circumstances that existed prior to the execution of this Agreement of
which Seller or Seller’s Representative, as applicable, had knowledge or to intentional acts or
omissions of Seller taken in Bad Faith between the date of this Agreement and the Closing,
Purchaser shall be entitled to the remedies provided in Section 7.1. The warranties and
representations set forth in this Section 4.2 shall survive Closing for a period of nine
(9) months. As used in this Agreement when referring to the acts of Seller, “Bad Faith” shall mean
(i) an act that a reasonable third party would consider was taken outside of the ordinary course of
business in order to prevent or dissuade Purchaser from purchasing the Property from Seller,
including, but not limited to, the placement of a consensual lien upon the Property as a result of
the actions of Seller which is not released at or before Closing or an amendment to or termination
of the Lease executed by Seller to which Purchaser does not consent, or (ii) Seller’s failure to
satisfy its obligation to close the transaction contemplated by this Agreement. As used in this
Agreement when referring to the acts of Purchaser, “Bad Faith” shall mean an act that a reasonable
third party would consider was taken outside of the ordinary course of business in order to prevent
or dissuade Seller from selling the Property to Purchaser.

     4.3 “AS IS” SALE. PURCHASER ACKNOWLEDGES THAT IT WILL HAVE ADEQUATE OPPORTUNITY TO INSPECT THE PROPERTY, AND THAT
PURCHASER SHALL RELY SUBSTANTIALLY ON ITS OWN INVESTIGATION OF THE PROPERTY, AND ACCEPTS THE RISK
THAT ANY INSPECTION MAY NOT DISCLOSE ALL MATERIAL MATTERS AFFECTING THE PROPERTY. SUBJECT ONLY TO
THE TERMS OF SECTIONS 4.2, 6.1, 6.2 AND 8 OF THIS AGREEMENT AND OF THE CLOSING DOCUMENTS, PURCHASER
AGREES TO ACCEPT THE PROPERTY IN ITS “AS IS” “WHERE IS” AND “WITH ALL FAULTS” CONDITION AT CLOSING,
WITHOUT ANY RIGHT OF SET-OFF OR REDUCTION IN THE PURCHASE PRICE. PURCHASER FURTHER AGREES, EXCEPT
AS OTHERWISE PROVIDED IN SECTION 4.2 AND IN THE CLOSING DOCUMENTS, TO ACCEPT THE PROPERTY WITHOUT
ANY REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS, IMPLIED OR OTHERWISE, INCLUDING WITHOUT
LIMITATION AS TO THE: (A) VALUE, NATURE,

12

 

QUALITY OR PHYSICAL CONDITION OF THE PROPERTY; (B) INCOME
DERIVED FROM THE PROPERTY; (C) MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS OF THE
PROPERTY FOR A PARTICULAR PURPOSE; (D) COMPLIANCE OF OR BY THE PROPERTY OR ITS OPERATION WITH ANY
LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY GOVERNMENTAL AUTHORITY OR BODY; (E) MANNER OR QUALITY
OF CONSTRUCTION OR MATERIALS INCORPORATED INTO THE PROPERTY; (F) MANNER, QUALITY, STATE OF REPAIR
OR LACK OF REPAIR OF THE PROPERTY; (G) THE ENVIRONMENTAL CONDITION OF THE PROPERTY, OR (H) ANY
OTHER MATTER REGARDING THE PROPERTY, AND SELLER EXPRESSLY DISCLAIMS EACH AND EVERY SUCH
REPRESENTATION AND WARRANTY. THE PROVISIONS OF THIS SECTION 4.3 SHALL SURVIVE THE CLOSING.

     4.4 RELEASE. EXCEPT FOR ANY CLAIMS ARISING UNDER THIS AGREEMENT, PURCHASER RELEASES SELLER
AND ANY PARTY AFFILIATED WITH SELLER, AND THEIR RESPECTIVE REPRESENTATIVES, SUCCESSORS AND ASSIGNS
(THE “SELLER RELATED PARTIES”) FROM AND AGAINST ANY AND ALL DEMANDS AND CLAIMS AT LAW OR
EQUITY, WHICH PURCHASER OR ANY PARTY AFFILIATED WITH PURCHASER AND THEIR RESPECTIVE
REPRESENTATIVES, SUCCESSORS AND ASSIGNS (EACH A “PURCHASER RELATED PARTY”) HAS OR MAY HAVE
ARISING FROM OR RELATED TO ANY MATTER OR THING RELATING TO OR IN CONNECTION WITH THE PROPERTY,
INCLUDING BUT NOT LIMITED TO, THE DOCUMENTS AND INFORMATION REFERRED TO IN THIS AGREEMENT, THE
LEASE AND EXISTING TENANT, THE AGREEMENTS, ALL CONTRACTS, ANY CONSTRUCTION DEFECTS, ERRORS OR
OMISSIONS IN THE DESIGN OR CONSTRUCTION AND ANY ENVIRONMENTAL CONDITIONS, INCLUDING, BUT NOT
LIMITED TO, ANY CONDITION OF ENVIRONMENTAL CONTAMINATION AT, UNDER, IN, ABOVE OR ABOUT THE REAL
PROPERTY BY “HAZARDOUS SUBSTANCES” (DEFINED BELOW), HOWEVER AND WHENEVER OCCURRING, AND ANY OTHER
CONTAMINATION BY HAZARDOUS SUBSTANCES OF THE SOIL OR SURFACE OR GROUND WATER AT, UNDER, IN, ABOVE
OR ABOUT THE REAL PROPERTY, THE PRIOR, PRESENT OR FUTURE EXISTENCE OF ANY UNDERGROUND OR
ABOVEGROUND STORAGE TANKS (INCLUDING ALL ATTENDANT PIPING,
PRODUCT DISPENSERS, AND OTHER SYSTEMS) AT, UNDER OR IN THE VICINITY OF ANY PART OF THE REAL
PROPERTY, AND THE VIOLATION OR ALLEGED VIOLATION BY SELLER OR ANY PRIOR OWNER, TENANT, SUBTENANT OR
OTHER USER OF ANY PART OF THE REAL PROPERTY, OR BY ANY CONTRACTOR OR AGENT OF SELLER, OF ANY
ENVIRONMENTAL LAW (DEFINED BELOW) APPLICABLE TO THE REAL PROPERTY OR THE USE OR OCCUPANCY OF ANY
PORTION OF THE REAL PROPERTY, OR OTHER CONDITIONS AFFECTING THE REAL PROPERTY OR ANY PORTION
THEREOF; PROVIDED, HOWEVER, THE FOREGOING WAIVER AND RELEASE SHALL NOT APPLY WITH RESPECT TO ANY
CLAIMS, DEMANDS, PENALTIES, FINES, LIABILITIES, SETTLEMENTS, DAMAGES, COSTS OR EXPENSES, KNOWN OR
UNKNOWN, EXISTING AND FUTURE, INCURRED IN CONNECTION WITH OR RELATING TO: (X) ANY CLAIMS RESULTING
FROM EVENTS OCCURRING DURING SELLER’S OWNERSHIP PERIOD RELATED TO THE PROPERTY THAT ARE MADE BY
THIRD PARTIES FOR PERSONAL INJURY,

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PROPERTY DAMAGE OR DEATH, (Y) ANY CLAIMS BASED ON ANY GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF SELLER OR ITS OFFICERS, DIRECTORS, SHAREHOLDERS, AGENTS,
AFFILIATES, EMPLOYEES AND SUCCESSORS AND ASSIGNS, OR (Z) ANY CLAIMS RESULTING FROM EVENTS OCCURRING
DURING SELLER’S OWNERSHIP PERIOD MADE BY THIRD PARTIES (INCLUDING GOVERNMENTAL AUTHORITIES) AGAINST
PURCHASER OR ITS SUCCESSORS, ASSIGNS, AGENTS OR AFFILIATES RELATING TO HAZARDOUS SUBSTANCES ON,
UNDER, ADJACENT TO OR OTHERWISE AFFECTING THE PROPERTY. WITHOUT LIMITING THE SCOPE OR GENERALITY
OF THE FOREGOING WAIVER AND RELEASE PROVISIONS, THOSE PROVISIONS SHALL SPECIFICALLY INCLUDE AND
COVER (X) ANY CLAIM FOR OR RIGHT TO INDEMNIFICATION, CONTRIBUTION OR OTHER COMPENSATION BASED ON OR
ARISING OUT OF ANY ENVIRONMENTAL LAW NOW OR LATER EXISTING OR RELATING TO LIABILITY OF PROPERTY
OWNERS, OPERATORS OR OTHER USERS FOR ENVIRONMENTAL MATTERS, AND (Y) ANY ENVIRONMENTAL CLAIM BASED
ON TRESPASS, NUISANCE, WASTE, NEGLIGENCE, NEGLIGENCE PER SE, STRICT LIABILITY, INDEMNIFICATION OR
CONTRIBUTION ARISING UNDER THE COMMON LAW OF THE STATE OF CALIFORNIA (OR ANY OTHER APPLICABLE
JURISDICTION); PROVIDED, HOWEVER, THE FOREGOING WAIVER AND RELEASE SHALL NOT APPLY WITH RESPECT TO
ANY CLAIMS, DEMANDS, PENALTIES, FINES, LIABILITIES, SETTLEMENTS, DAMAGES, COSTS OR EXPENSES, KNOWN
OR UNKNOWN, EXISTING AND FUTURE, INCURRED IN CONNECTION WITH OR RELATING TO: (X) ANY CLAIMS
RESULTING FROM EVENTS OCCURRING DURING SELLER’S OWNERSHIP PERIOD RELATED TO THE PROPERTY THAT ARE
MADE BY THIRD PARTIES FOR PERSONAL INJURY, PROPERTY DAMAGE OR DEATH, (Y) ANY CLAIMS BASED ON ANY
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SELLER OR ITS OFFICERS, DIRECTORS, SHAREHOLDERS, AGENTS,
AFFILIATES, EMPLOYEES AND SUCCESSORS AND ASSIGNS, OR (Z) ANY CLAIMS RESULTING FROM EVENTS OCCURRING
DURING SELLER’S OWNERSHIP PERIOD MADE BY THIRD PARTIES (INCLUDING GOVERNMENTAL AUTHORITIES) AGAINST
PURCHASER OR ITS SUCCESSORS, ASSIGNS, AGENTS OR AFFILIATES RELATING TO HAZARDOUS SUBSTANCES ON,
UNDER, ADJACENT TO OR OTHERWISE
AFFECTING THE PROPERTY. THIS RELEASE INCLUDES CLAIMS OF WHICH PURCHASER DOES NOT PRESENTLY SUSPECT
TO EXIST WHICH, IF KNOWN BY PURCHASER, WOULD MATERIALLY AFFECT PURCHASER’S RELEASE OF THE SELLER
PARTIES. PURCHASER ACKNOWLEDGES THAT THE FOREGOING ACKNOWLEDGMENTS, RELEASES AND WAIVERS,
INCLUDING WITHOUT LIMITATION THE WAIVER OF THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542,
WERE EXPRESSLY BARGAINED FOR. THE WORD “CLAIMS” MEANS ALL CAUSES OF ACTION, CONTRACT
RIGHTS, DEBTS, DEMANDS, INDEMNITIES, LIABILITIES, OBLIGATIONS OF ANY KIND, AND RIGHTS OTHERWISE
ARISING BY CONTRACT AND/OR OPERATION OF LAW, WHETHER KNOWN OR UNKNOWN TO THE RELEASING PARTY, AND
EXISTING AS OF THE DATE OF THIS AGREEMENT OR ARISING FROM AND AFTER THE DATE OF THIS AGREEMENT.
THE PARTIES HERETO UNDERSTAND AND INTEND THAT NO RELIEF MAY BE HAD AS TO ANY RELEASED CLAIMS
WHETHER BY ACTUAL DAMAGES, AWARD, DECLARATORY

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RELIEF, INJUNCTION, NOMINAL DAMAGES, OFFSET, PUNITIVE
DAMAGES OR RECOVERY IN ANY FORM. AS USED IN THIS AGREEMENT, THE TERM “ENVIRONMENTAL LAW”
MEANS ALL FEDERAL, STATE OR LOCAL LAWS, ORDINANCES, REGULATIONS, ORDERS AND DIRECTIVES PERTAINING
TO HAZARDOUS SUBSTANCES ON, ABOUT OR ADJACENT TO ANY PORTION OF THE REAL PROPERTY, OR GENERALLY
DEALING WITH THE PUBLIC HEALTH AND SAFETY AND THE PROTECTION OF THE ENVIRONMENT. AS USED IN THIS
AGREEMENT, THE TERM “HAZARDOUS SUBSTANCES” SHALL MEAN ANY OIL OR PETROCHEMICAL PRODUCTS,
PCBS, ASBESTOS, UREA FORMALDEHYDE, SALTS, FLAMMABLE EXPLOSIVES, RADIOACTIVE MATERIALS, HAZARDOUS
WASTES, TOXIC, CORROSIVE, MUTAGENIC OR PATHOGENIC SUBSTANCES OR RELATED MATERIALS, INCLUDING,
WITHOUT LIMITATION, ANY SUBSTANCES DEFINED AS OR INCLUDED IN THE DEFINITION OF “HAZARDOUS
SUBSTANCES,” “HAZARDOUS WASTES,” “HAZARDOUS MATERIALS,” “TOXIC SUBSTANCES,” OR ANY SIMILAR TERM,
UNDER ANY APPLICABLE ENVIRONMENTAL LAW. NO PURCHASER RELATED PARTY SHALL LOOK TO ANY OF THE SELLER
RELATED PARTIES FOR ANY REDRESS OR RELIEF. THIS RELEASE SHALL BE GIVEN FULL FORCE AND EFFECT,
INCLUDING WITH REGARD TO UNKNOWN AND UNSUSPECTED CLAIMS, DAMAGES AND CAUSES OF ACTION. THE
PROVISIONS OF THIS SECTION 4.4 SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT OR THE
CLOSING DATE.

SECTION 5

CLOSING

     5.1 Closing. The closing of the purchase and sale transaction contemplated in this
Agreement (the “Closing”) shall take place on the date (the “Closing Date”) which
is five (5) Business Days after the Due Diligence Contingency Date, unless extended pursuant to the
terms hereof (provided, however, if the Closing Date as so determined does not fall on a Business
Day, the Closing Date shall be postponed until the next succeeding Business Day).

     5.2 Possession. Subject to the Existing Tenant’s right to possession of the Property under
the Lease, and the Approved Title Matters, sole and exclusive possession of the Property shall be
delivered to Purchaser at the Closing.

     5.3 Proration. The following adjustments will be made to the Purchase Price at Closing.

          5.3.1 General. All prorations made under this Section 5.3 with respect to the
Property for the month in which the Closing occurs shall be prorated as of 11:59 p.m. Pacific Time
on the day immediately preceding the Closing Date (the “Adjustment Date”). At least five
(5) Business Days prior to the Closing Date, Seller shall attempt to deliver to Purchaser a
proration statement setting forth Seller’s good faith estimates of all items to be prorated
hereunder.

          5.3.2 Rents. All rent and other charges payable by the Existing Tenant under the
Lease and collected by Seller shall be prorated between Seller and Purchaser as of the

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Adjustment
Date. At Closing, if Existing Tenant is delinquent in any rental payment required under the Lease
on the Adjustment Date or earlier, then such rent shall not be prorated and, to the extent
Purchaser receives the rental payments from Existing Tenant after Closing, Purchaser shall pay the
delinquent amounts to Seller after application in the manner set forth below. Purchaser shall
invoice the Existing Tenant for such delinquent amounts, provided Purchaser has no obligation
hereunder to file an action to collect or evict tenant, incur any material cost or expense or
otherwise enforce the payment of, the delinquent amounts. Seller reserves the right to institute
collection efforts at any time after the Closing against Existing Tenant for any pre-Closing
delinquent rents under the Lease provided that Seller may not sue Existing Tenant for nonpayment of
rent, seek the eviction of Existing Tenant, request that Purchaser declare Existing Tenant in
default under the Lease, seek the termination of the Lease or otherwise disturb Existing Tenant’s
possession thereunder in such collection efforts. All rents received by Purchaser after the
Closing shall be applied, after deducting therefrom any reasonable cost or expense incurred by
Purchaser in collecting such amounts, to any amounts owing to Purchaser for periods after the
Closing Date, and then to delinquent rents payable prior to Closing.

          5.3.3 Taxes.

               (a) General. Real estate, ad valorem, and personal property taxes and other state,
county and municipal taxes (collectively, “Real Estate Taxes”) for the Current Tax Period
(defined below) shall be prorated between Seller and Purchaser as of the Closing Date. Seller is
responsible for (i) all such taxes for all calendar years occurring prior to the Current Tax Period
and (ii) that portion of such taxes for the Current Tax Period determined on the basis of the
number of days which have elapsed from the first day of the Current Tax Period to the Closing Date,
inclusive, whether or not the same shall be payable prior to the Closing. The phrase “Current
Tax Period” refers to the calendar year of the applicable taxing authority in which the Closing
occurs. In the event that as of the Closing the actual tax bills for the year or years in question
are not available and the amount of taxes to be prorated as aforesaid cannot be
ascertained, then the proration shall be estimated based on the purchase price Seller paid
when it acquired the Property. If the transaction contemplated by this Agreement closes, Purchaser
shall be responsible for any increases in real estate taxes as a result of the sale of the Property
to Purchaser.

               (b) Special Assessments. Purchaser shall assume all special assessments (and charges
in the nature of or in lieu of such assessments) levied, pending or constituting a lien with
respect to any of the Real Property as of the Adjustment Date, to the extent applicable to the
period on or after the Closing Date.

               (c) Association Dues. Dues paid or owing to the owners’ association in which the Real
Property is included shall be prorated accordingly between Seller and Purchaser as of the
Adjustment Date.

          5.3.4 Security Deposits. All prepaid rents and all unused, refundable security
deposits (if any) in the possession or control of Seller (together with any interest accrued
thereon if interest is specifically required to be paid thereon under applicable law or under the
terms of the Lease) at Seller’s option shall either be (a) transferred to Purchaser at Closing and
not subject

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to adjustment, or (b) adjusted by way of a credit in favor of Purchaser. If Seller
transfers security deposits to Purchaser as provided above, Purchaser agrees to assume all such
deposits.

          5.3.5 Insurance. Seller shall cancel any insurance policies maintained by Seller with
respect to the Property as of the Closing Date, and Seller shall be entitled to any refund of
insurance premiums with respect thereto.

          5.3.6 Utilities; Utility Deposits.

               (a) All utility expenses, including water, fuel, gas, electricity, telephone, sewer, trash
removal, steam, heat and other services furnished to or provided for the Property shall be prorated
between Seller and Purchaser.

               (b) Seller agrees to seek to have all meters with respect to any such utilities read as of the
Adjustment Date. If a reading or the results thereof cannot be obtained by the Closing, then such
charges, if any, shall be apportioned based on extrapolation from the last reading therefor,
subject to adjustment if the actual amount becomes known within sixty (60) days after the Closing.
Utility deposits owned by Seller, if any, together with any accrued interest thereon, shall be
retained by Seller and not transferred to Purchaser at Closing.

          5.3.7 Reproration. In the event any prorations or computations made under this
Section are based on estimates or prove to be incorrect, then either party shall be entitled to an
adjustment to correct the same, provided that it makes written demand on the party from whom it is
entitled to such adjustment on or before the date that is one hundred eighty (180) days after the
Closing Date. The agreements of Seller and Purchaser set forth in this Section 5.3 shall
survive the Closing, subject to Section 7.

     5.4 Closing Costs.

          5.4.1 Paid by Purchaser. Purchaser shall pay, at the Closing, the title insurance
premium for any lender’s policy of title insurance, the cost of any endorsements to any title
insurance policies issued, including, but not limited to, the cost for the A.L.T.A. extended
coverage portion of the owner’s policy, the cost of the Amended Survey and/or New Survey, all
recording, filing and documenting charges and fees to record the documents evidencing the
conveyance of the Property, any transfer tax (except for city and county transfer taxes which will
be paid by Seller) and all other costs and charges of the closing and consummation of the purchase
and sale transaction contemplated in this Agreement as customarily charged to and payable by a
purchaser in such transactions in the location in which the Land is situated. Purchaser shall also
pay one-half of the escrow charges of the Title Company and Escrow Agent.

          5.4.2 Paid By Seller. Seller shall pay, at the Closing, the cost to prepare the Title
Commitment, the title insurance premium for the standard C.L.T.A. owner’s policy of title insurance
(excluding the cost of any endorsements thereto), any city and county transfer taxes, and all other
costs and charges of the closing and consummation of the purchase and sale transaction contemplated
in this Agreement as customarily charged to and payable by a seller in such transactions in the
location in which the Land is situated. Seller shall also pay one-half of the escrow charges of
the Title Company and Escrow Agent.

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          5.4.3 Paid According to Custom. Except as set forth herein to the contrary, any
federal, state, county or local documentary, excise, sales and stamp taxes shall be paid by either
Purchaser or Seller as is customary for a purchaser or seller, as the case may be, in such
transactions in the location in which the Land is situated.

          5.4.4 Attorneys and Professional Fees. Notwithstanding the foregoing, each party
shall pay its own attorney’s fees and fees of any accountants and/or advisors incurred in
connection with the transaction contemplated in this Agreement.

     5.5 Seller’s Obligations in Connection With the Closing. One Business Day prior to the
Closing, Seller shall deliver or cause to be delivered to Escrow Agent the following, duly executed
and acknowledged where applicable, for delivery to Purchaser at Closing:

          5.5.1 Deed. A grant deed (the “Deed”) conveying the Real Property to
Purchaser in the form of Exhibit B attached hereto.

          5.5.2 Assignment of Leases. An Assignment and Assumption of Leases in the form
attached to this Agreement as Exhibit C (the “Assignment of Leases”).

          5.5.3 Assignment of Intangible Personal Property, Permits and Warranties. An
Assignment and Assumption of Intangible Personal Property, Permits and Warranties in the form
attached to this Agreement as Exhibit D (the “Assignment”).

          5.5.4 Bill of Sale. A bill of sale in the form attached hereto as Exhibit E
(the “Bill of Sale”), conveying the Tangible Personal Property to Purchaser.

          5.5.5 FIRPTA Affidavit. An affidavit of Seller in form attached hereto as Exhibit
F, and if applicable and required, any equivalent state forms, certifying that Seller is not a
“foreign person,” as defined in Section 1445 of the Internal Revenue Code of 1986, as amended, and
in any applicable state laws for the State in which the Real Property is located.

          5.5.6 Seller’s Affidavit. Such reasonable and customary owner’s affidavit and
indemnities for mechanics’ liens, in each case as may be required by the Title Company to issue the
Policy.

          5.5.7 Tenant Notices. Notice to tenants under the Leases in the form attached hereto
as Exhibit G.

          5.5.8 Transfer Tax Forms; Other Forms. All transfer tax and other similar tax returns
which Seller is required by law to execute and acknowledge and to deliver, either individually or
together with Purchaser, to any governmental authority as a result of the sale, and Seller’s
payment of any such tax due to any city or county governmental authority as a result of the sale.

          5.5.9 Records, Files and Keys. To the extent not already delivered to Purchaser,
those records and files in Seller’s possession or control relating to operations, leasing and
maintenance (including, but not limited to, the Lease, all plans and specifications for the
Improvements, and all permits and certificates of occupancy for the Improvements) and all keys,

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access codes and such other passwords in Seller’s possession or control related to access to the
Property, provided that the parties agree to cooperate in good faith to deliver such items outside
of escrow.

          5.5.10 Evidence of Authority. Such authorizing documents of Seller as shall be
reasonably required by the Title Company to evidence Purchaser’s authority to consummate the
transactions contemplated by this Agreement.

          5.5.11 Settlement Statement. A settlement statement, showing the application of the
Earnest Money against the Purchase Price, the allocation of the Closing Costs and other prorations
and closing adjustments set forth in this Agreement, all consistent with the terms and conditions
of this Agreement (the “Settlement Statement”).

          5.5.12 Additional Documentation. Seller shall execute such other or further
instruments of conveyance, sale, assignment, certification, and transfer, and shall take or cause
to be taken such other or further actions, as is customarily and reasonably requested in similar
transactions to consummate the transactions contemplated herein.

     5.6 Purchaser’s Obligations in Connection With the Closing. One Business Day prior to the
Closing, Purchaser shall cause the following to be delivered to Escrow Agent, each duly executed
and acknowledged, as applicable, for delivery to Seller at Closing:

          5.6.1 Purchase Price. The portion of the Purchase Price payable pursuant to
Section 2.1, as adjusted pursuant to Sections 5.3 and 5.4, and such other amounts
as may be due
from Purchaser pursuant to the Settlement Statement, by wire transfer of immediately available
funds to Seller. The Earnest Money shall be applied to and credited against the Purchase Price,
and shall be disbursed to Seller by Escrow Agent at Closing.

          5.6.2 Evidence of Authority. Such authorizing documents of Purchaser as shall be
reasonably required by the Title Company to evidence Purchaser’s authority to consummate the
transactions contemplated by this Agreement.

          5.6.3 Assignment of Leases. A counterpart of the Assignment and Assumption of Leases.

          5.6.4 Assignment of Permits and Warranties. A counterpart of the Assignment.

          5.6.5 Transfer Tax Forms. All transfer tax and other similar tax returns which
Purchaser is required by law as a result of the transaction to execute and acknowledge and to
deliver, either individually or together with Seller, and Purchaser’s payment of any such tax due
to any governmental authority as a result of the sale (exclusive of the taxes payable by Seller
herein).

          5.6.6 Settlement Statement. A counterpart of the Settlement Statement.

          5.6.7 Additional Documentation. Purchaser shall execute such other or further
documents, and shall take or cause to be taken such other or further actions, as is customarily and
reasonably requested in similar transactions to consummate the transactions contemplated herein.

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     5.7 Closing Escrow.
Purchaser and/or Seller at their option may deposit the respective
Closing deliveries described in Sections 5.5 and 5.6 with Escrow Agent with
appropriate instructions for recording and disbursement consistent with this Agreement.

     5.8 Property Management Agreement.
At (and effective as of) Closing, Seller will terminate
its management and leasing agreements affecting the Property.

     5.9 Purchaser’s Closing Conditions.
The obligations of Purchaser under this Agreement are
contingent upon each of the following conditions (collectively, the “Purchaser’s Closing
Conditions”):

          5.9.1 Representations and Warranties. On the Closing Date, each of the
representations and warranties of Seller in Section 4.2 shall be true and correct in all
material respects as if the same were made on the Closing Date, subject to Seller’s right to update
such representations and warranties as provided in this Agreement.

          5.9.2 Performance by Seller. By the Closing Date, the Seller shall have performed all
covenants and obligations in all material respects and complied with all material conditions
required by this Agreement to be performed or complied with by Seller.

          5.9.3 Tenant Estoppel Certificates. Seller shall use commercially reasonable efforts
to obtain and deliver to Purchaser an original estoppel certificate from the Existing Tenant at
least five (5) Business Days before the Closing provided, however, if Seller is unable to deliver
the estoppel by such date, Seller shall be given an extension for up to fourteen (14) days to
obtain such estoppel and the Closing shall be extended as need be to occur five (5) Business Days
after Seller delivery of the estoppel to Purchaser meeting the requirements and in the form
described in the following sentence (the “Estoppel Requirement”). The form of estoppel
certificate delivered to Purchaser shall contain the information set forth in Exhibit H and may not
disclose any material defaults under the Lease or any material adverse information other than that
contained in the estoppel certificate set forth in Exhibit H. Purchaser shall have the right to
terminate this Agreement, receive a refund of the Earnest Money and both parties shall be released
from all liability under this Agreement except for the Surviving Obligations if the Estoppel
Requirement is not satisfied. Notwithstanding the foregoing, the Estoppel Requirement shall be
deemed satisfied if Existing Tenant delivers the estoppel certificate without agreeing to Section
11 in the estoppel set forth on Exhibit H. Seller shall not be in default under this Agreement or
have any liability to Purchaser if Seller is unable to obtain the foregoing described estoppel
certificate after using commercially reasonable efforts to obtain the same.

          5.9.4 Title Policy. Title Company shall, at Closing, be ready, willing and able to
issue to Purchaser an A.L.T.A. extended coverage (Form 1970-10/17/70)) owner’s policy of title
insurance for the Property in an amount equal to the Purchase Price insuring fee simple title to
the Property in Purchaser, subject only to the Permitted Encumbrances and containing such
endorsements as Purchaser shall request (said commitment to be evidenced by a pro forma policy
containing such endorsements requested by Purchaser) (the “Policy”);

          5.9.5 Closing Documents. Seller shall have deposited with the Escrow Agent all
documents required of Seller to be delivered into escrow hereunder pursuant to Section 5.5;

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          5.9.6 Court Orders. No order or injunction shall have been issued by any court or
administrative agency which prohibits the transactions contemplated by this Agreement;

          5.9.7 Tenant Default. Existing Tenant shall not be in material default under the
Lease (after the expiration of any applicable notice and cure periods that expire before the
Closing). If Tenant is in material default and the applicable cure period extends to or past the
Closing Date, the Closing Date shall be extended to occur five (5) Business Days after the
expiration of each such cure period. Neither existing Tenants nor any guarantor of the Lease shall
have filed for bankruptcy, be subject to an involuntary bankruptcy proceeding, been adjudicated
bankrupt or admitted in writing its inability to pay its debts as they become due or have had a
receiver appointed for any of its assets; and

          5.9.8 No Material Changes. Subject to ordinary wear and tear, and condemnation and
casualty which are addressed by Sections 6.1 and 6.2, respectively, the Property
shall be in substantially the same condition that it is in as of the Effective Date.

          5.9.9 Plumbing Leak. Seller has repaired the water damage to Purchaser’s reasonable
Satisfaction on or before the Closing Date in accordance with Section 3.1.5(g) above.

   If any conditions in this Section 5.9 have not been satisfied on or before the
applicable date set forth in this Section 5.9 with respect to each condition, then
Purchaser may terminate this Agreement by providing written notice to Seller on or before the
Closing Date and receive a refund of the Earnest Money, in which case neither party shall have any
further liability except for Surviving Obligations; provided, however, if the failure of any of the
conditions in Section 5.9 above is attributable to the Bad Faith acts of Seller, Purchaser
shall be entitled to the remedies provided in Section 7 (including, without limitation, the
right to receive reimbursement from Seller for Purchaser’s due diligence costs and other expenses
as provided in Section 7.1). Further, notwithstanding anything herein to the contrary, if
the failure of any of the conditions in Section 5.9 is the result of a default by Seller under this
Agreement, Purchaser shall have the remedies available to it under Section 7.1 hereinbelow. If
Purchaser does not terminate this Agreement on or before the Closing Date or proceeds to Closing
despite failure of a condition, time being of the essence, then Purchaser is deemed to have waived
that condition. The conditions in this Section 5.9 are specifically stated and for the
sole benefit of Purchaser. Purchaser in its discretion may unilaterally waive (conditionally or
absolutely) the fulfillment of any one or more of the conditions, or any part thereof, by notice to
Seller.

     5.10 Seller’s Closing Conditions.

The obligations of Seller under this Agreement are
contingent upon each of the following conditions:

          5.10.1 Representations and Warranties. On the Closing Date, each of the
representations and warranties of Purchaser in Section 4.1 shall be true and correct in all
material respects as if the same were made on the Closing Date.

          5.10.2 Performance by Purchaser. By the Closing Date, the Purchaser shall have
performed all covenants and obligations in all material respects and complied with all material
conditions required by this Agreement to be performed or complied with by Purchaser.

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   If any conditions in this Section 5.10 have not been satisfied on or before the
applicable date set forth in this Section 5.10 with respect to each condition, then Seller
may terminate this Agreement by providing written notice to Purchaser on or before the Closing Date
and receive a refund of the Earnest Money, in which case neither party shall have any further
liability except for Surviving Obligations; provided, however, if the failure of any of the
conditions in Section 5.10 above is attributable to the Bad Faith acts of Purchaser or if
the failure of any of the conditions in this Section 5.10 are a result of a default by
Purchaser under this Agreement, Seller shall be entitled to the remedies provided in Section
7.2. If Seller does not terminate this Agreement on or before the Closing Date or proceeds to
Closing despite failure of a condition, time being of the essence, then Seller is deemed to have
waived that condition. The conditions in this Section 5.10 are specifically stated and for
the sole benefit of Seller. Seller in its discretion may unilaterally waive (conditionally or
absolutely) the fulfillment of any one or more of the conditions, or any part thereof, by notice to
Purchaser.

SECTION 6

RISK OF LOSS

     6.1 Condemnation. If any Material (as defined below) portion of the Property is taken by
eminent domain proceedings or by deed in lieu thereof prior to the Closing, Seller shall promptly
notify Purchaser of such fact (“Seller’s Condemnation Notice”). Thereafter, Purchaser may
(at Purchaser’s option), either: (a) terminate this Agreement by written notice, in which case
Purchaser shall be entitled to the return of the Earnest Money, and thereafter neither party shall
have any rights or obligations under this Agreement, other than Surviving Obligations, or (b)
proceed to Closing. Purchaser shall notify Seller in writing of Purchaser’s election within ten
(10) days after Seller’s Condemnation Notice. If Purchaser fails to timely and properly notify
Seller of Purchaser’s election, Purchaser is deemed to have elected to proceed to Closing under
clause (b). If Purchaser chooses or is deemed in have chosen to proceed under clause (b), or if
the taking is not Material, then Seller shall assign all of Seller’s right, title and interest in
and to (or, if not assignable, pay to Purchaser at the time actually received by Seller, which
obligation of Seller shall survive the Closing) the award of the condemning authority, or the
settlement in the case of a deed in lieu of condemnation, to the extent not applied by Seller
towards reasonable costs to restore the Real Property prior to the Closing, to Purchaser at the
Closing and there shall be no reduction in the Purchase Price. For purposes of Sections
6.1 and 6.2, a (i) taking is “Material” if any portion of the Improvements are
taken or if any portion of the Land is taken which would materially affect the operation, use or
value of the Property as it exists prior to the taking; and (ii) casualty is “Material” if
the cost to repair and restore the Real Property to the condition existing prior to the casualty is
in excess of $100,000.00, as set forth in an estimate made by a contractor selected by Seller and
reasonably approved by Purchaser, which approval shall not be unreasonably withheld, conditioned or
delayed. Notwithstanding anything herein to the contrary, if Existing Tenant has the right to
terminate the Lease if a portion of the Property is condemned and exercises such right, Purchaser
may terminate this Agreement by written notice to Seller, in which case Purchaser shall be entitled
to the return of the Earnest Money, and thereafter neither party shall have any rights or
obligations under this Agreement, other than Surviving Obligations. If the time period to exercise
Existing Tenant’s termination right extends beyond the Closing Date and Existing Tenant has not
provided written notice exercising its termination right or foregoing its right to terminate before
the Closing Date (the “Condemnation Termination Notice”), the Closing shall be postponed to
occur five (5) Business Days after

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Seller’s receipt of the Condemnation Termination Notice or the
day Existing Tenant’s right to terminate the Lease as a result of such condemnation expires.

     6.2 Casualty. If any of the Property, or any part thereof, suffers any Material damage
from fire or casualty prior to the Closing, or if any of the Property, or any part thereof, suffers
Material damage that is not fully covered by Seller’s insurance (as evidenced by Seller’s failure
to provide to Purchaser a letter from the applicable insurance company addressed to Purchaser and
acknowledging the damage and expressly confirming such insurance company’s liability for the full
costs thereof, less any deductible), Seller will notify Purchaser of such fact (the “Seller’s
Casualty Notice”), and Purchaser may terminate this Agreement by notice to Seller given within
ten (10) days
following Seller’s Casualty Notice to Purchaser, in which case Purchaser shall be entitled to the
return of the Earnest Money, and thereafter neither party shall have any rights or obligations
under this Agreement, other than Surviving Obligations. If Purchaser fails to timely and properly
notify Seller of Purchaser’s election, Purchaser is deemed to have elected to waive its right to
terminate this Agreement pursuant to this Section 6.2. If Purchaser does not terminate or
is deemed to have elected not to terminate this Agreement, or if the damage suffered is not
Material, this Agreement shall remain in full force and effect and Seller shall assign all of
Seller’s assignable right, title and interest in and to the proceeds (or rights under the policy)
of any insurance covering such damage, less any reasonable costs incurred in connection with the
restoration of the Property and any portion of such proceeds paid or to be paid on account of the
loss of rents or other income from the Property for the period to (but excluding) the Closing Date
(the result, “Net Proceeds”), to Purchaser to the extent the amount of such Net Proceeds
does not exceed the Purchase Price, plus a credit in an amount equal to (i) Seller’s deductible
under its insurance policy applicable to such casualty, and (ii) the amount of any proceeds that
Seller cannot directly assign to Purchaser and instead retains, and there shall be no reduction in
the Purchase Price or obligation of Seller to complete restoration. Further, notwithstanding
anything herein to the contrary, if the damage is not Material but is not covered by Seller’s
insurance, Seller may either (i) pay to Purchaser at Closing (by a credit to the Purchase Price)
the reasonable costs to repair the Property to the condition existing immediately prior to such
casualty, as determined by a contractor selected by Purchaser and reasonably approved by Seller, or
(ii) provide notice to Purchaser before the Closing that Seller elects not to provide the credit
described in (i) above. If Seller elects (ii) above, Purchaser may either proceed to Closing in
which case Purchaser shall have no claim against Seller for such casualty or terminate this
Agreement by providing notice to Seller, in which case the Earnest Money shall be returned to
Purchaser and the parties to this Agreement shall be released from all obligations and liability
hereunder except for the Surviving Obligations. Notwithstanding anything herein to the contrary,
if Existing Tenant has the right to terminate the Lease if a portion of the Property is damaged by
a fire or other casualty and Existing Tenant exercises such right, Purchaser may terminate this
Agreement by written notice to Seller, in which case Purchaser shall be entitled to the return of
the Earnest Money, and thereafter neither party shall have any rights or obligations under this
Agreement, other than Surviving Obligations. If the time period to exercise Existing Tenant’s
termination right extends beyond the Closing Date and Existing Tenant has not provided written
notice exercising its termination right or foregoing its right to terminate before the Closing Date
(the “Casualty Termination Notice”), the Closing shall be postponed to occur five (5)
Business Days after Seller’s receipt of the Casualty Termination Notice or the day Existing
Tenant’s right to terminate the Lease as a result of such casualty expires.

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SECTION 7

DEFAULT; TERMINATION

     7.1 Default by Seller. In the event that Seller (i) defaults in the performance of any of
Seller’s obligations under this Agreement, which default remains uncured for five (5) Business Days
after written notice thereof to Seller; (ii) fails to consummate the transaction contemplated by
this Agreement; (iii) fails to pay the sums required to be paid by Seller under this Agreement, or
(iv) otherwise breaches this Agreement, Purchaser, as Purchaser’s sole and exclusive right and
remedy prior to Closing, may
either: (a) terminate this Agreement, or (b) pursue the remedy of specific performance of Seller’s
obligations under this Agreement. The remedy of specific performance is only available to
Purchaser if (i) any suit for specific performance is filed within ninety (90) days after Purchaser
first becomes aware of the breach or default by Seller, and (ii) Purchaser is not then in material
breach or default in the performance of any of its obligations under this Agreement. If Purchaser
properly terminates this Agreement under clause (a), the Earnest Money shall be refunded to
Purchaser by Escrow Agent, and if Seller fails to close in Bad Faith, Seller shall reimburse
Purchaser for its reasonable out-of-pocket expenses incurred in connection with this transaction
(including reasonable attorney’s fees, consultant costs, travel costs and similar expenses) up to
but not exceeding $150,000.00 and thereafter neither party shall have any rights or obligations
under this Agreement, other than Surviving Obligations. None of the provisions of this Section
7.1 shall limit, impair or affect Surviving Obligations.

   Notwithstanding anything to the contrary contained in this Agreement or in any exhibits
attached hereto or in any documents executed or to be executed in connection herewith
(collectively, the “Purchase Documents”), it is expressly agreed that: (1) the remedies of
Purchaser or its successors or assigns against Seller with respect to the alleged breach by Seller
of any representation, warranty, covenant, undertaking, indemnity or obligation contained in any of
the Purchase Documents (collectively, “Seller’s Undertakings”) discovered by Purchaser
following Closing shall (x) be deemed waived unless Purchaser has filed suit against Seller
regarding the alleged breach within nine (9) months after the Closing Date; (y) be limited to an
amount not to exceed $500,000.00 in the aggregate; and (z) may be asserted by Purchaser only if
Purchaser’s damages in the aggregate exceed $50,000.00 (whereupon Seller’s liability shall be from
the first dollar of such loss); (2) except with regard to the matters described in the Addendum
attached hereto and made a part hereof (the “Addendum”) no personal liability or personal
responsibility of any sort with respect to any of Seller’s Undertakings or any alleged breach
thereof is assumed by, or shall at any time be asserted or enforceable against, Seller or any of
its shareholders, directors, officers, employees, agents, constituent partners, members,
beneficiaries, trustees or representatives except as provided in (1) above with respect to Seller.
Further, notwithstanding anything herein to the contrary, the limit on Seller’s liability shall not
apply to Seller’s obligations under Sections 5.3.7, 5.4 and 9.2. Notwithstanding anything
to the contrary contained in the Purchase Documents, Purchaser agrees that Seller shall be liable
only for any direct or actual damages, but not any consequential or punitive damages, suffered by
Purchaser on account of any breach by Seller. If Purchaser becomes aware prior to the Closing that
any representation or warranty hereunder is untrue, or any covenant or condition to Closing has not
been fulfilled or satisfied, and Purchaser nonetheless proceeds to close on the purchase of the
Property, then Purchaser shall be deemed to have irrevocably and absolutely waived, relinquished
and released all rights and claims against Seller for any damage or other loss arising

24

 

out of or
resulting from such untrue representation or warranty or such unfulfilled or unsatisfied covenant
or condition.

     7.2 Default by Purchaser.

          7.2.1 In the event that Purchaser (i) defaults in the performance of any of its obligations
under this Agreement other than its obligation to proceed to Closing, which default
remains uncured for five (5) Business Days after written notice thereof to Purchaser, or (ii)
fails to proceed to Closing when obligated to do so under this Agreement, and Seller is not then
in material breach or default in the performance of any of its obligations under this Agreement,
Seller may terminate this Agreement by providing written notice of termination to Purchaser. Upon
a termination by Seller under this Section 7.2, Seller shall be entitled to receive and
retain the Earnest Money as liquidated damages (and not as a penalty or forfeiture) and as Seller’s
sole and exclusive remedy and relief hereunder (except with regard to the Surviving Obligations to
which such limitation shall not apply), the Earnest Money shall be forfeited to Seller, and Escrow
Agent shall pay the Earnest Money to Seller promptly after receiving written demand therefor from
Seller, subject in all events, however, to Escrow Agent’s rights and obligations described in
Section 10.

THE PARTIES HAVE AGREED THAT SELLER’S ACTUAL DAMAGES, IN THE EVENT ESCROW FAILS TO CLOSE SOLELY DUE
TO A DEFAULT BY PURCHASER, WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE. THEREFORE,
BY PLACING THEIR INITIALS BELOW, THE PARTIES ACKNOWLEDGE THAT THE AMOUNT OF THE EARNEST MONEY
TOGETHER WITH ALL INTEREST ACCRUED THEREON TO BE PAID TO SELLER HAS BEEN AGREED UPON, AFTER
NEGOTIATION, AS THE PARTIES’ REASONABLE ESTIMATE OF SELLER’S DAMAGES AND AS SELLER’S EXCLUSIVE
REMEDY AGAINST PURCHASER, AND THAT PAYMENT OF SUCH AMOUNT TO SELLER AS LIQUIDATED DAMAGES IS NOT
INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTION 3275 OR
3369, BUT INSTEAD, IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO OWNER PURSUANT TO SECTION 1671,
1676 AND 1677 OF THE CALIFORNIA CIVIL CODE. NOTWITHSTANDING THE FOREGOING LIMITATIONS ON DAMAGES,
SUCH LIMITATION SHALL NOT PRECLUDE SELLER FROM RECOVERING ATTORNEYS’ FEES AND COSTS INCURRED IN
SEEKING TO RECOVER THE LIQUIDATED DAMAGES UNDER THIS SECTION 7.2.

INITIALS: Seller                 Purchaser           

None of the provisions of this Section 7.2 shall limit, impair or affect Surviving
Obligations.

          7.2.2 Further, notwithstanding anything herein to the contrary, Seller agrees that Purchaser
shall only be liable for any direct or actual damages, but not any consequential or punitive
damages, suffered by Seller on account of any breach by Purchaser.

          7.2.3 Except with regard to the matters described in the Addendum, in no event whatsoever
shall recourse be had or liability asserted against any of Purchaser’s or Seller’s

25

 

partners,
members, shareholders, employees, agents, directors, officers or other owners of Purchaser or
Seller, or their respective constituent partners. Neither Purchaser’s nor Seller’s direct and
indirect shareholders, partners, members, beneficiaries and owners and their respective trustees,
officers, directors, employees, agents and security holders, assume any personal liability for any
obligations entered into on behalf of the parties under this Agreement and the closing documents.

     7.3 Confirmation of Termination. If this Agreement is terminated by either party pursuant
to the terms set forth herein, then at the request of Seller, Purchaser shall execute such
reasonable documentation, reasonably satisfactory to Seller and Purchaser in form and substance,
confirming the termination of this Agreement promptly upon written demand by Seller.

     7.4 Survival. This Section 7 shall survive Closing or the earlier termination of
this Agreement.

SECTION 8

FUTURE OPERATIONS

     8.1 Maintenance and Contracts. From the Effective Date through the Closing or earlier
termination of this Agreement:

          8.1.1 Seller shall continue to maintain and operate the Property in the customary and ordinary
manner consistent with Seller’s current practices in effect as of the Effective Date, ordinary wear
and tear, condemnation and casualty excepted; and

          8.1.2 Seller shall not enter into any new Contract or other service agreement that will not be
terminated as of the Closing Date without Purchaser’s prior written consent.

     8.2 Leasing. From the Effective Date through the Closing or earlier termination of this
Agreement:

          8.2.1 Seller shall comply with the terms and provisions of the Lease in all material respects;

          8.2.2 Seller shall have promptly delivered to Purchaser copies of any written notices of
default under the Lease that Seller sends to Existing Tenant or that Seller receives from Existing
Tenant, and

          8.2.3 Seller shall not enter into any renewal, material amendment, or extension of the Lease,
without the consent of Purchaser; provided, however, Purchaser’s consent is not required for the
exercise by Existing Tenant of rights set forth in the Lease, to the extent all of the material and
economic terms therefor have been agreed to in the existing Lease, but not otherwise.

26

 

     8.3 General. From the Effective Date through the Closing or earlier termination of this
Agreement:

          8.3.1 Seller shall maintain and keep in full force and effect insurance on the Property in
amounts currently in effect.

          8.3.2 Seller shall deliver to Purchaser any written notice received by Seller relating to the
Property from any governmental authority, insurance carrier or tenant.

          8.3.3 Seller shall not make any material alterations to the Property without the prior written
consent of Purchaser other than as required under the Leases or by law (and, in the event any such
alterations are so required, Seller shall promptly notify Purchaser prior to the commencement
thereof).

          8.3.4 Seller shall not enter into any contract or agreement regarding the sale, financing or
other disposition of all or any part of, or any interest in, the Property or authorize any broker,
agent or other party to do so on its behalf, and shall not amend or modify the Lease or enter into
any new lease agreements affecting the Property.

          8.3.5 Seller shall not sell, assign, or convey any right, title or interest whatsoever in or
to the Property, or create or permit to exist any lien, encumbrance, or charge thereon (other than
the Permitted Encumbrances).

          8.3.6 Seller shall maintain its files regarding the Property and continue to provide Purchaser
with access to Seller’s and the Property Documents until the Closing as provided in Section
3.1.1.

          8.3.7 Seller shall promptly provide Purchaser with written notice of any pending litigation
affecting the property.

SECTION 9

MISCELLANEOUS

     9.1 Notices. All notices, demands, requests and other communications which may be given or
which are required to be given by either party to the other under this Agreement, must be in
writing and shall be deemed effective and delivered either: (a) on the date personally delivered
to the address of the recipient set forth below, as evidenced by written receipt therefor, whether
or not actually received by the person to whom addressed; (b) on the third (3rd)
Business Day after being sent, by certified or registered mail postage prepaid, return receipt
requested, addressed to the intended recipient at the address specified below; (c) on the first
(1st) Business Day after being deposited into the custody of a nationally recognized
overnight delivery service such as Federal Express Corporation, Airborne Express, or United Parcel
Service, addressed to the recipient at the address specified below; or (d) at the time of
electronic confirmation of receipt after being sent before 5:00 p.m. Pacific time of recipient on a
Business Day by facsimile to the numbers set forth below for each recipient, provided that a copy
is also sent by nationally recognized overnight delivery service. For purposes of this Section
9.1, the addresses of the parties for all notices are as follows (unless changed by similar
notice in writing given by particular person whose address is to be changed):

27

 

	 	 	 	 	 
	If to Seller:	 	c/o Alliance Commercial Partners, LLC
	 	 	165 South Union Boulevard
	 	 	Suite 510
	 	 	Lakewood, CO 80228
	 

	 	Attn:
	 	Douglas McCormick
	 

	 	Phone:
	 	(303) 986-2222
	 

	 	Fax:
	 	(303) 986-7990

28

 

	 	 	 	 	 
	with a copy to:	 	Holme Roberts & Owen LLP
	 	 	1700 Lincoln Street, Suite 4100
	 	 	Denver, CO 80203-4541
	 

	 	Attn:
	 	Robert H. Bach
	 

	 	Phone:
	 	(303) 861-7000
	 

	 	Fax:
	 	(303) 866-0200
	 
	 	 	 	 
	If to Purchaser:	 	Hines REIT Properties, L.P.
	 	 	c/o Hines Interests Limited Partnership
	 	 	2800 Post Oak Boulevard, Suite 5000
	 	 	Houston, Texas 77056-6118
	 

	 	Attn:
	 	Charles N. Hazen
	 

	 	Phone:
	 	(713) 966-7602
	 

	 	Fax:
	 	(713) 966-7851
	 
	 	 	 	 
	with a copy to:	 	Hines Interests Limited Partnership
	 	 	West Regional Office
	 	 	101 California Street, Suite 1000
	 	 	San Francisco, California 94111
	 

	 	Attn:
	 	Paul Paradis
	 

	 	Phone:
	 	(415) 982-6200
	 

	 	Fax:
	 	(415) 398-1442
	 
	 	 	 	 
	with a copy to:	 	Hines Interests Limited Partnership
	 	 	West Regional Office
	 	 	101 California Street, Suite 1000
	 	 	San Francisco, California 94111
	 

	 	Attn:
	 	Cameron Falconer
	 

	 	Phone:
	 	(415) 339-6245
	 

	 	Fax:
	 	(415) 398-1442
	 
	 	 	 	 
	with a copy to:	 	Hines REIT Properties, L.P.
	 	 	c/o Hines Interests Limited Partnership
	 	 	2800 Post Oak Boulevard, Suite 5000
	 	 	Houston, Texas 77056-6118
	 

	 	Attn:
	 	Jason Maxwell
	 

	 	Phone:
	 	(713) 966-7638
	 

	 	Fax:
	 	(713) 966-2075

29

 

	 	 	 	 	 
	with a copy to:	 	Baker Botts, L.L.P.
	 	 	2001 Ross Avenue
	 	 	Dallas, Texas 75201-2980
	 

	 	Attn:
	 	Kristie G. King
	 

	 	Phone:
	 	(214) 953-6660
	 

	 	Fax:
	 	(214) 661-4660
	 
	 	 	 	 
	If to Escrow Agent:	 	Stewart Title of Denver, Inc.
	 	 	50 S. Steele Street, Suite 600
	 	 	Denver, CO 80209
	 

	 	Attn:
	 	Carma Allen-Weymouth
	 

	 	Phone:
	 	303-331-0333
	 

	 	Fax:
	 	303-331-9867

The attorneys for each party are authorized to give any notice specified in this Agreement on
behalf of their respective clients. This Section 9.1 shall survive the Closing or earlier
termination of this Agreement.

     9.2 Real Estate Commissions. Neither Seller nor Purchaser has authorized any broker or
finder to act on Purchaser’s or Seller’s behalf in connection with the sale and purchase hereunder
other than Randy Getz of CB Richard Ellis (“Broker”), and neither Seller nor Purchaser has
dealt with any broker or finder purporting to act on behalf of the other party other than Broker.
If and only if the Closing occurs, Seller shall pay Broker a real estate commission in accordance
with a separate written listing agreement. Purchaser agrees to indemnify, defend, protect and hold
harmless Seller from and against any and all demands, claims, losses, damages, liabilities, costs
or expenses of any kind or character (including reasonable attorneys’ fees and expenses) arising
out of or resulting from any agreement, arrangement or understanding alleged to have been made by
Purchaser or on Purchaser’s behalf with any broker or finder (other than Broker) in connection with
this Agreement or the transaction contemplated hereby. Seller agrees to indemnify, defend, protect
and hold harmless Purchaser from and against any and all demands, claims, losses, damages,
liabilities, costs or expenses of any kind or character, including reasonable attorneys’ fees and
expenses, arising out of or resulting from any agreement, arrangement or understanding alleged to
have been made by Seller or on Seller’s behalf with any broker or finder in connection with this
Agreement or the transactions contemplated hereby. Notwithstanding anything to the contrary
contained herein, this Section 9.2 shall survive the Closing or any earlier termination of
this Agreement.

     9.3 Entire Agreement. This Agreement embodies the entire agreement between the parties
relative to the subject matter hereof, and there is no oral or written agreement between the
parties, nor any representation made by either party relative to the subject matter hereof, which
is not expressly set forth herein.

     9.4 Amendment. This Agreement may be amended only by a written instrument executed by the party or parties to
be bound thereby.

30

 

     9.5 Headings. The captions and headings used in this Agreement are for convenience only
and do not in any way limit, amplify, or otherwise modify the provisions of this Agreement.

     9.6 Time of Essence. Time is of the essence of this Agreement; however, if the final date
of any period which is set out in any provision of this Agreement falls on a day which is not a
Business Day, then the time of such period shall be extended to the first succeeding Business Day.
The term “Business Day” means every day other than Saturdays, Sundays or other holidays on
which banking institutions in the state in which the Real Property is located are closed.

     9.7 Successors and Assigns; Assignments.

          9.7.1 Successors and Assigns. This Agreement shall inure to the benefit of Seller and
Purchaser and their respective heirs, executors, administrators, personal and legal
representatives, successors and permitted assigns.

          9.7.2 Assignments. Purchaser may not assign this Agreement or Purchaser’s rights
under this Agreement without the prior written consent of Seller, which consent may be withheld in
Seller’s sole and absolute discretion. Notwithstanding the foregoing, Purchaser may, without the
prior written consent of Seller, assign this Agreement to any entity or entities which are
Affiliates (as hereinafter defined) of Purchaser or of Hines Interests Limited Partnership, a
Delaware limited partnership (“Hines”), provided (i) such assignee accepts and assumes such
obligations, (ii) Purchaser provides written notice to Seller at least three (3) Business Days
before the Closing, and (iii) such assignment is consummated on the Closing Date. Upon any such
assignment, original Purchaser shall not be relieved from any and all liability under this
Agreement. This Agreement is solely for the benefit of Seller and Purchaser; there are no third
party beneficiaries hereof. Any assignment of this Agreement in violation of the foregoing
provisions shall at Seller’s option be null and void. For purposes of this Section 9.7,
the term “Affiliate” means any person or entity that directly, or indirectly through one or
more intermediaries, controls, is controlled by or is under common control with Purchaser or Hines,
as the case may be, and the term “control” means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of a person or entity,
whether through the ownership of voting securities, by contract or otherwise, and the terms
“controlling” and “controlled” have the meanings correlative to the foregoing.

     9.8 Invalid Provision. If any provision of this Agreement is held to be illegal, invalid
or unenforceable under present or future laws, such provision shall be fully severable; this
Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a part of this
Agreement; and, the remaining provisions of this Agreement shall remain in full force and effect
and shall not be affected by such illegal, invalid, or unenforceable provision or by its severance
from this Agreement.

     9.9 Attorneys’ Fees. In the event it becomes necessary for either party hereto to file
suit to enforce this Agreement or any provision contained herein, the party prevailing in such suit
shall be entitled to recover, in addition to all other remedies or damages as provided herein,

31

 

reasonable attorneys’ fees and expenses incurred in such suit. This Section 9.9 shall
survive the Closing or earlier termination of this Agreement.

     9.10 Confidentiality. All non-public information provided by Seller to Purchaser or
obtained by Purchaser relating to the Property in the course of Purchaser’s inspection, including,
without limitation, (a) the Property Documents, (b) any environmental assessment or audit, (c) the
identities of Seller and Purchaser, and the fact that they have entered into this Agreement, and
(d) the terms of this Agreement (collectively, the “Information”) shall be treated as
confidential by Purchaser. Purchaser agrees to transmit the Information only to such of its
attorneys, accountants, consultants, equity investors and lenders (“Representatives”) who
need to know the Information for the sole purpose of Purchaser’s review and who agree to maintain
the confidentiality of such Information. Purchaser agrees not to make any public announcements or
disclosures prior to the Closing with respect to the subject matter hereof, without the prior
written consent of Seller. In the event that this transaction is not closed for any reason, then
Purchaser shall return to Seller, upon written request from Seller, all copies of all Property
Documents in its possession or in the possession of any of its Representatives, shall maintain the
confidentiality of the Information, and shall require all Representatives not to disclose any
Information to any other party. Notwithstanding anything herein to the contrary, nothing shall
prohibit Purchaser, its affiliates or any entity advised by its affiliates, or its Representatives
from disclosing (i) any such Information to the extent required by law, (ii) any such Information
if required in connection with any agency, administrative, regulatory, or other similar filing,
report or disclosure by any such parties or as may be necessary in connection with any court action
of proceeding with respect to this Agreement, or (iii) any Information published as public
knowledge or which is generally available in the public domain. The provisions of this Section
9.10 shall survive the termination of this Agreement.

     9.11 No Survival. Except as otherwise expressly provided otherwise in this Agreement, any
and all rights of action of either party for any breach by the other party of any representation,
warranty, covenant or other obligation of such party contained in this Agreement shall merge with
the Deed and other instruments executed at Closing and shall not survive Closing, and no action
based thereon shall be commenced after the Closing Date.

     9.12 Multiple Counterparts; Facsimile. This Agreement may be executed in a number of identical counterparts which, taken together,
shall constitute collectively one agreement. In making proof of this Agreement, it shall not be
necessary to produce or account for more than one such counterpart with each party’s signature.
Any signature hereon may be transmitted by facsimile machine and such signature shall be valid and
accepted for all purposes hereof.

     9.13 Exhibits. The exhibits and schedules attached to this Agreement and referred to
herein are hereby incorporated into this Agreement by reference and made a part hereof for all
purposes.

     9.14 Construction; Independent Counsel. Seller and Purchaser each acknowledge that: (a)
they have been represented by independent counsel in connection with this Agreement; (b) they have
executed this Agreement with the advice of such counsel; and (c) this Agreement is the result of
negotiations between the parties hereto and the advice and assistance of their

32

 

respective counsel.
The fact that this Agreement was prepared by Seller’s counsel as a matter of convenience shall have
no import or significance, and the normal rule of contractual construction and interpretation 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 amendments or exhibits hereto.

     9.15 No Recordation. Seller and Purchaser hereby acknowledge that neither this Agreement
nor any memorandum or affidavit thereof shall be recorded of public record. Should Purchaser ever
record or attempt to record this Agreement, or a memorandum or affidavit thereof, or any other
similar document, then, notwithstanding anything herein to the contrary, said recordation or
attempt at recordation shall constitute a default by Purchaser hereunder, and, in addition to the
other remedies provided for herein, Seller has the express right to terminate this Agreement by
filing a notice of said termination in the public records. This provision does not apply to any
filing made by Purchaser in connection with any action brought by Purchaser under Section
7.1.

     9.16 JURY WAIVER. PURCHASER AND SELLER DO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE THEIR RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF,
OR UNDER OR IN CONNECTION WITH THIS AGREEMENT, THE DOCUMENTS DELIVERED BY PURCHASER OR BY SELLER AT
CLOSING, OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR
ANY ACTIONS OF EITHER PARTY ARISING OUT OF OR RELATED IN ANY MANNER WITH THIS AGREEMENT OR THE
PROPERTY (INCLUDING WITHOUT LIMITATION, ANY ACTION TO RESCIND OR CANCEL THIS AGREEMENT AND ANY
CLAIMS OR DEFENSES OTHERWISE VOID OR VOIDABLE). THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH
PARTY TO ENTER INTO AND ACCEPT THIS AGREEMENT AND THE DOCUMENTS DELIVERED BY THE OTHER PARTY AT
CLOSING AND SHALL SURVIVE THE CLOSING OR TERMINATION OF THIS AGREEMENT.

     9.17 Governing Law. This Agreement shall be governed by and interpreted in accordance with
the laws of the State of California without regard to conflicts of law principles. The provisions
of this Section 9.17 shall survive the Closing or the termination of this Agreement. The
parties agree that venue shall lie in any state or federal court located within the State of
California.

     9.18 Documentary Transfer Tax. Seller or Purchaser shall, at the time of recording the
Deed, in accordance with California Revenue and Taxation Code Section 11932, be entitled to request
that the amount of the documentary transfer tax due be shown on a separate paper which shall be
affixed to the Deed subsequent to recording.

     9.19 Audit Cooperation. Prior to and after the Closing Date, Seller shall provide to
Purchaser (at Purchaser’s expense) copies of, or shall provide Purchaser access to, such factual
information as may be reasonably requested by Purchaser, which is in the possession or control of
Seller, or its property manager or accountants, to enable Purchaser (or Hines or an affiliate of
Hines) to allow Purchaser’s auditor (Deloitte & Touche LLP or any successor auditor selected by

33

 

Purchaser) to conduct an audit of the income and expense statements of the Property up to the date
of Closing, plus up to the three (3) prior calendar years. Purchaser shall be solely responsible
for all out-of-pocket costs associated with this audit. Seller shall cooperate (at Purchaser’s
expense) with Purchaser’s auditor in the conduct of such audit. In addition, Seller agrees to
provide to Purchaser’s auditor historical financial statements for the Property, including income
and balance sheet data for the Property which may have been previously prepared, for up to three
(3) years prior to the year in which the Closing Date occurs. Without limiting the foregoing, at
Purchaser’s expense (i) Purchaser or its designated independent or other auditor may audit Seller’s
operating statements of the Property, and Seller shall provide such documentation as Purchaser or
its auditor may reasonably request in order to complete such audit, and (ii) Seller shall furnish
to Purchaser such financial and other information in the form such information is maintained or
held by Seller as may be reasonably required by Purchaser or an affiliate of Purchaser to make any
required filings with the Securities and Exchange Commission or other governmental authority.
Notwithstanding anything herein to the contrary, (a) the foregoing obligations of Seller shall be
limited to providing such information or documentation as may be in the possession of, or
reasonably obtainable by Seller (at Purchaser’s expense) from its property manager or accountants,
at no cost to Seller, and in the format that Seller (or its property manager or accountants) have
maintained such information; (b) while Seller will make such documentation and information
available, any information discovered by Purchaser or its agents which is believed to be inaccurate
or inconsistent with information provided to Purchaser pursuant to this Agreement in any event will
not afford Purchaser a basis for any legal action against Seller and Purchaser hereby expressly
waives the right to bring such a legal action against Seller; and (c) Purchaser acknowledges that
the documents, materials and other information provided pursuant to this Section 9.19 are
provided without representations or warranties as to the truth, accuracy, completeness, or
methodology of preparation thereof, and
Seller expressly disclaims any such representation or warranty. This Section 9.19 shall
survive the Closing of this Agreement.

SECTION 10

ESCROW PROVISIONS

     10.1 Escrow Account and Notice. The Earnest Money and Purchase Price (collectively, the
“Escrow Payments”) shall be held in escrow in a separate interest-bearing money market or
bank account by Escrow Agent until the earliest of (a) the Closing, on which date the Purchase
Price, subject to any credits or adjustments as provided herein, shall be released to Seller; (b)
five (5) days after Escrow Agent shall have delivered to the non-sending party a copy of the notice
sent by Seller or Purchaser stating that this Agreement has been terminated and that the party so
notifying Escrow Agent is entitled to the Escrow Payments, following which period the Escrow
Payments shall be delivered to the party who sent notice stating that it is entitled to the Escrow
Payments; provided, however, that within such five (5) day period, Escrow Agent does not receive
either a notice containing contrary instructions from the non-sending party hereto or a court order
restraining the release of all or any portion of the Escrow Payments; or (c) a joint notice
executed by Seller and Purchaser is received by Escrow Agent, in which event Escrow Agent shall
release the Escrow Payments in accordance with the instructions therein contained. Escrow Agent
shall immediately deliver a duplicate copy of any notice received by it in its capacity as Escrow
Agent to Seller and Purchaser.

34

 

     10.2 Dispute Regarding Escrow Payments. In the event that (a) Escrow Agent shall have
received a notice containing contrary instructions or a court order as provided for in Section
10.1 hereof and within the time therein prescribed, or (b) any other disagreement or dispute
shall arise between the parties hereto or resulting in adverse claims or demands being made for the
Escrow Payments, whether or not litigation has been instituted, then and in any such event Escrow
Agent shall refuse to comply with any claims or demands on it and continue to hold the Escrow
Payments until Escrow Agent receives either (i) a written notice signed by both Seller and
Purchaser directing the disposition of the Escrow Payments, or (ii) a final non-appealable order of
a court of competent jurisdiction directing the disposition of the Escrow Payments, in either of
which events Escrow Agent shall then dispose of the Escrow Payments in accordance with said
direction. Escrow Agent shall not be or become liable in any way to any person or entity for its
refusal to comply with any such claims or demands until and unless it has received a direction of
the nature described in (i) or (ii) above. Upon the taking by Escrow Agent of any of the actions
described in (i) and (ii) above, Escrow Agent shall be released of and from all liability hereunder
except for its own willful misconduct or negligence. Notwithstanding the foregoing provisions of
this Section 10.2, Escrow Agent may, on written notice to Seller and Purchaser, take such
affirmative reasonable steps as it may, at its option, elect in order to terminate its duties as
escrow agent hereunder, including, but not limited to, the deposit of the Escrow Payments with a
court of competent jurisdiction and/or the commencement of an action in interpleader. Upon the
taking by Escrow Agent of the actions described above, Escrow Agent shall be released of and from
liability hereunder except for its own willful misconduct or negligence.

     10.3 Limitation on Escrow Agent Liability. Escrow Agent shall not incur any liability in
acting upon any signature, notice, request, waiver, consent, receipt or other paper document in
good faith believed by Escrow Agent to be genuine. Escrow Agent has executed this Agreement solely
to confirm that it is holding and will hold the Escrow Payments in escrow pursuant to the
provisions of this Section 10 and for no other purpose.

     10.4 Survival. This Section 10 shall survive the Closing or earlier termination of
this Agreement.

   IN WITNESS WHEREOF, Seller and Purchaser have executed and delivered this Agreement as of the
Effective Date.

(Remainder of page intentionally blank; signature page follows)

35

 

SIGNATURE PAGE

TO

PURCHASE AGREEMENT

DATED NOVEMBER 1, 2006

BETWEEN

3400 DATA DRIVE ASSOCIATES, LLC

AND

HINES REIT PROPERTIES, L.P.

	 	 	 	 	 	 	 	 	 
	SELLER:	 	3400 DATA DRIVE ASSOCIATES, LLC,	 	 
	 	 	     a Colorado limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	AVF Management, LLC, its manager	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

36

 

SIGNATURE PAGE

TO

PURCHASE AGREEMENT

DATED NOVEMBER 1, 2006

BETWEEN

3400 DATA DRIVE ASSOCIATES, LLC

AND

HINES REIT PROPERTIES, L.P.

	 	 	 	 	 	 	 	 	 
	PURCHASER:	 	HINES REIT PROPERTIES, L.P.,

a Delaware limited partnership	 	 
	 	 	By:	 	Hines Real Estate Investment Trust, Inc.,

a Maryland corporation,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

37

 

JOINDER OF ESCROW AGENT

     The undersigned: (a) acknowledges receipt of the Earnest Money and a copy of this Agreement;
(b) agrees to act as Escrow Agent under the Agreement, (b) agrees to be the person responsible for
reporting the transaction to the Internal Revenue Service under then-current Treasury Regulations,
and (d) agrees to hold and disburse the Earnest Money in accordance with the provisions of this
Agreement.

	 	 	 	 	 	 	 	 	 
	ESCROW AGENT:	 	Stewart Title of Denver, Inc.
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	Date of Execution by Escrow Agent:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	                                                            , 2006	 	 

38exv10w71

 

Exhibit 10.71

EXECUTION COPY

Sale of Riverfront Plaza

Richmond, Virginia

* * *

PURCHASE AND SALE AGREEMENT

BETWEEN

COMMERZ GRUNDBESITZ-INVESTMENTGESELLSCHAFT mbH, A LIMITED

LIABILITY COMPANY UNDER GERMAN LAW, ACTING AS INVESTMENT

COMPANY FOR THE ACCOUNT OF THE GERMAN OPEN-ENDED REAL ESTATE

INVESTMENT FUND HAUS-INVEST GLOBAL,

AS SELLER

AND

HINES RIVERFRONT PLAZA LP,

AS PURCHASER

* * * *

Dated as of October 31, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1 PURCHASE AND SALE OF PROPERTY
	 	 	1	 
	 
	 	 	 	 
	1.1 Land
	 	 	1	 
	1.2 Improvements
	 	 	1	 
	1.3 Personal Property
	 	 	1	 
	1.4 Leases
	 	 	2	 
	1.5 Contracts
	 	 	2	 
	1.6 Permits
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 2 PURCHASE PRICE AND DEPOSIT
	 	 	2	 
	 
	 	 	 	 
	2.1 Purchase Price
	 	 	2	 
	2.2 Deposit
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 3 TITLE AND SURVEY
	 	 	4	 
	 
	 	 	 	 
	3.1 State of Title to be Conveyed
	 	 	4	 
	3.2 Title Commitment and Survey
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 4 PROPERTY INFORMATION
	 	 	5	 
	 
	 	 	 	 
	4.1 Property Information
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 5 PURCHASER’S DUE DILIGENCE
	 	 	6	 
	 
	 	 	 	 
	5.1 Access and Inspection Period
	 	 	6	 
	5.2 Indemnity
	 	 	6	 
	5.3 Property Information
	 	 	7	 
	5.4 As Is, Where Is
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 6 REPRESENTATIONS AND WARRANTIES
	 	 	8	 
	 
	 	 	 	 
	6.1 Seller’s Representations and Warranties
	 	 	8	 
	6.2 Purchaser’s Representations and Warranties
	 	 	10	 
	6.3 Knowledge
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 7 COVENANTS OF SELLER PRIOR TO CLOSING
	 	 	11	 
	 
	 	 	 	 
	7.1 Operation of Property
	 	 	11	 
	7.2 Governmental Notices
	 	 	12	 
	7.3 Litigation
	 	 	12	 
	7.4 Insurance
	 	 	12	 
	7.5 Estoppel Certificates
	 	 	12	 
	7.6 Withholding
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 8 CONDITIONS PRECEDENT TO CLOSING
	 	 	14	 
	 
	 	 	 	 
	8.1 Conditions Precedent to Purchaser’s Obligation to Close
	 	 	14	 
	8.2 Conditions Precedent to Seller’s Obligation to Close
	 	 	15	 
	8.3 Failure of a Condition
	 	 	15	 
	8.4 Representations and Warranties
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 9 CLOSING
	 	 	18	 

-i-

 

	 	 	 	 	 
	 	 	Page
	9.1 Closing Date
	 	 	18	 
	9.2 Seller’s Obligations at the Closing
	 	 	18	 
	9.3 Purchaser’s Obligations at the Closing
	 	 	20	 
	9.4 Intentionally Omitted
	 	 	21	 
	9.5 Costs and Adjustments at Closing
	 	 	21	 
	 
	 	 	 	 
	ARTICLE 10 DAMAGE AND CONDEMNATION
	 	 	24	 
	 
	 	 	 	 
	10.1 Damage
	 	 	25	 
	10.2 Condemnation and Eminent Domain
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 11 REMEDIES AND ADDITIONAL COVENANTS
	 	 	26	 
	 
	 	 	 	 
	11.1 Seller Default
	 	 	26	 
	11.2 Purchaser Default
	 	 	27	 
	11.3 Delivery of Materials
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 12 BROKERAGE COMMISSION
	 	 	28	 
	 
	 	 	 	 
	12.1 Brokers
	 	 	28	 
	12.2 Indemnity
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 13 NOTICES
	 	 	29	 
	 
	 	 	 	 
	13.1 Written Notice
	 	 	29	 
	13.2 Method of Transmittal
	 	 	29	 
	13.3 Addresses
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 14 ASSIGNMENT
	 	 	30	 
	ARTICLE 15 MISCELLANEOUS
	 	 	31	 
	 
	 	 	 	 
	15.1 Entire Agreement
	 	 	31	 
	15.2 Modifications
	 	 	31	 
	15.3 Gender and Number
	 	 	31	 
	15.4 Captions
	 	 	31	 
	15.5 Successors and Assigns
	 	 	31	 
	15.6 Controlling Law
	 	 	31	 
	15.7 Exhibits
	 	 	31	 
	15.8 No Rule of Construction
	 	 	31	 
	15.9 Severability
	 	 	31	 
	15.10 Time of Essence
	 	 	32	 
	15.11 Business Days
	 	 	32	 
	15.12 No Memorandum
	 	 	32	 
	15.13 Press Releases
	 	 	32	 
	15.14 Attorneys’ Fees and Costs
	 	 	32	 
	15.15 Counterparts and Expiration of Offer
	 	 	32	 
	15.16 Waiver of Jury Trial
	 	 	32	 
	15.17 Confidentiality
	 	 	33	 
	15.18 Cooperation with Purchaser’s Auditors and SEC Filing Requirements
	 	 	34	 
	15.19 Post-Closing Escrow
	 	 	35	 

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SCHEDULES AND EXHIBITS

Exhibits

Exhibit A – Legal Description

Exhibit B – List of Leases

Exhibit B-1 – List of Security Deposits

Exhibit B-2 – List of Leasing Commissions and Free Rent

Exhibit B-3 – List of Amounts Actually Billed to Tenants for month of October, 2006

Exhibit C – List of Service Contracts

Exhibit D – Escrow Agreement

Exhibit E-1 – Form of Tenant Estoppel Certificate

Exhibit E-2 – Form of Seller’s Estoppel Statement

Exhibit F – Form of Special Warranty Deed

Exhibit G – Form of Bill of Sale

Exhibit H – Form of Assignment and Assumption Agreement

Exhibit I – Form of Tenant Notification Letter

Exhibit J – Form of Post-Closing Escrow Agreement

Exhibit K – Metropolitan Loan Documents

Exhibit L – Expedited Arbitration Provisions

Exhibit M – Form of Withholding Escrow Agreement

Schedules

Schedule 3.1 — Permitted Exceptions

Schedule 3.2 — Schedule B – Section 1 of Title Commitment

Schedule 5.3 — Property Information

Schedule 6.1.3 — Litigation

Schedule 6.1.7 — Lease Defaults

Schedule 6.1.8 — Violations

Schedule 6.1.11 — Warranties and Guaranties

Schedule 9.5.3 — Rents and Other Outstanding Amounts Under Leases

Schedule 9.5.6-1 — Seller’s Tenant Allowance Credit Obligations

Schedule 9.5.6-2 — Tenant Improvement Allowance/Leasing Commission Escrow Amounts

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PURCHASE AND SALE AGREEMENT

     This PURCHASE AND SALE AGREEMENT (this “Agreement”) is made and entered into as of October
___, 2006 (the “Effective Date”), by and between COMMERZ GRUNDBESITZ-INVESTMENTGESELLSCHAFT mbH, a
limited liability company under German law, acting as investment company for the account of the
German open-ended real estate investment fund HAUS-INVEST Global (“Seller”), and HINES RIVERFRONT
PLAZA LP, a Delaware limited partnership (“Purchaser”).

ARTICLE 1 PURCHASE AND SALE OF PROPERTY

     On the terms and conditions stated in this Agreement, Seller hereby agrees to sell to
Purchaser and Purchaser hereby agrees to purchase from Seller all of the following described
property (collectively, the “Property”):

     1.1 Land. Seller’s fee simple interest in and to all of that certain tract of land situated
in the Commonwealth of Virginia, and described more particularly in Exhibit A attached
hereto and incorporated herein by reference, together with all rights and appurtenances pertaining
to such land, including, without limitation, all of Seller’s right, title and interest in and to
(i) all minerals, oil, gas, and other hydrocarbon substances thereon, (ii) all adjacent strips,
streets, roads, alleys and rights-of-way, public or private, open or proposed, (iii) all easements,
privileges, and hereditaments, whether or not of record, and (iv) all access, air, water, riparian,
development, utility, and solar rights (collectively, the “Land”);

     1.2 Improvements. Two (2) twenty-one (21) story office buildings of approximately 949,873
rentable square feet in the aggregate, situated at 901 and 951 E. Byrd Street, Richmond, Virginia
23219, and all other improvements and structures constructed on the Land (collectively, the
“Improvements”);

     1.3 Personal Property. All of Seller’s right, title and interest in and to (specifically
excluding any property owned by tenants under leases) the following (collectively, the “Personal
Property”):

          1.3.1 mechanical systems, fixtures and equipment comprising a part of or attached to or
located upon the Improvements;

          1.3.2 maintenance equipment and tools, if any, owned by Seller and used exclusively in
connection with, and located in or on, the Improvements;

          1.3.3 site plans, surveys, plans and specifications, marketing materials and floor plans in
Seller’s possession which relate to the Land or Improvements;

          1.3.4 pylons and other signs situated on or at the Land or Improvements, including signs
related to the Improvements located in public rights of way by permission;

          1.3.5 all books and records containing the operating expenses of the Property to the extent in
Seller’s possession or control;

 

 

          1.3.6 all trademarks, service mark and other intellectual property rights used in connection
with the Improvements, including without limitation, the “Riverfront Plaza” name and logo; and

          1.3.7 other tangible personal property owned by Seller and used exclusively in connection
with, and located in or on, the Land or Improvements;

     1.4 Leases. Seller’s interest in all leases, rental agreements, licenses, license agreements and
other occupancy agreements with tenants occupying all or any portion
of the Improvements , and all amendments thereto and all guarantees thereof (collectively, the
“Leases”), a current list of which is attached hereto as Exhibit B; and all security
deposits held by Seller in connection with the Leases and not applied pursuant to the terms
thereof, a current list of which is attached hereto as Exhibit B-1;

     1.5 Contracts. Subject to Section 7.1 hereof, Seller’s interest in all contract rights
related to the Land, Improvements, Personal Property or Leases that will remain in existence after
Closing (as hereinafter defined), to the extent assignable, including, without limitation, Seller’s
interest in the following: parking, maintenance, construction, architectural, parking, supply or
service contracts, warranties, guarantees and bonds and other agreements related to the
Improvements, Personal Property, or Leases, but expressly excluding the existing property
management agreement with Boston Properties, Inc., as manager, and the existing leasing agreement
with Dominion Realty Partners (formerly known as Daniel Realty Services, LLC), as leasing agent,
each of which will be terminated as of the time of Closing (collectively, the “Contracts”), a
current list of which is attached hereto as Exhibit C; and

     1.6 Permits. Seller’s right, title and interest in all permits, licenses, certificates of
occupancy, and governmental approvals which relate to the Land, Improvements, Personal Property,
Leases, or Contracts, to the extent assignable (collectively, the “Permits”).

ARTICLE 2 PURCHASE PRICE AND DEPOSIT

2.1 Purchase Price.

          2.1.1 The purchase price for the Property to be paid by Purchaser to Seller is Two Hundred
Seventy Seven Million Five Hundred Thousand and 00/100 Dollars ($277,500,000.00) (the “Purchase
Price”). The cash due at Closing on account of the Purchase Price shall be subject to adjustments
and credits as specifically set forth in this Agreement. The Purchase Price will be payable by wire
transfer of immediately available funds at the Closing and a portion of the Purchase Price shall be
deposited into the Post Closing Escrow and the Withholding Escrow in accordance with Sections 15.19
and 7.6 of this Agreement respectively.

          2.1.2 The Property is currently encumbered by a Deed of Trust, Security Agreement and Fixture
Filing (the “Deed of Trust”), executed January 16, 1998 but effective as
of January 22, 1998, made by Boston Properties Limited Partnership (predecessor-in-interest to
Seller) in favor of Patrick J. Milmoe and William A. Walsh, Jr., as trustees, for the benefit of

2

 

Metropolitan Life Insurance Company (“Metropolitan”), as beneficiary, as modified and restated by
that certain Modification and Restatement of Deed of Trust, Security Agreement and Fixture Filing
made as of May 16, 2005 by Seller, David W. Briggs and LaFonte Nesbitt, as trustees, for the
benefit of Metropolitan, as beneficiary. The Deed of Trust secures that certain loan (the
“Metropolitan Loan”) made by Metropolitan to Boston Properties Limited Partnership
(predecessor-in-interest to Seller) in the original principal amount of One Hundred Twenty One
Million Eight Hundred Thousand Dollars ($121,800,000), which Metropolitan Loan is evidenced by that
certain Promissory Note executed January 16, 1998 by Boston Properties Limited Partnership
(predecessor-in-interest to Seller) in favor of Metropolitan, which Promissory Note was assigned to
Seller by that certain Assignment and Assumption Agreement dated as of May 16, 2005 between and
among Boston Properties Limited Partnership, Seller, Metropolitan and David W. Briggs and LaFonte
Nesbitt, as trustees, and which Promissory Note was modified and restated by that certain
Modification and Restatement of Promissory Note, made as of May 16, 2005 by Seller and
Metropolitan, the outstanding principal amount of which is $135,900,000 as of October 1, 2006 (the
“Note”). At Closing, the Property shall be transferred to Purchaser subject to the Deed of Trust.
It shall be a condition to Closing that prior thereto Metropolitan shall have consented (the
“Metropolitan Consent”) to (a) the transfer of the Property by Seller to Purchaser (or its
assignee) and to Purchaser’s (or its assignee’s) assumption of the obligations of Seller first
arising as of the Closing Date under the Metropolitan Loan Documents (as defined in Section 6.1.9),
subject to any non-recourse provisions contained in the Metropolitan Loan Documents, but without
any requirement for any modifications thereto other than (x) certain changes to the permitted
entity transfer provisions permitting internal transfers of direct and indirect interests in
Purchaser, as required by Purchaser, and (y) the waiver of any requirement by Metropolitan for any
Liable Party (as defined in the Deed of Trust), other than Purchaser, in connection with the
Metropolitan Loan, and (b) the release of Seller from all liability arising under the Metropolitan
Loan Documents after Closing, such consents and release to be evidenced by an agreement to be
executed and delivered at Closing among Purchaser, Seller and Metropolitan (the “Loan Assumption
Agreement”). Purchaser and Seller (at no cost to Seller other than the administrative costs
associated with providing information) shall provide Metropolitan with such information as it may
require in connection with providing the Metropolitan Consent, Purchaser hereby confirming that it
has provided Metropolitan with all such information requested by Metropolitan from Purchaser prior
to the date hereof. At all times Purchaser shall use its commercially reasonable efforts and act
in good faith to obtain the modifications set forth in clause (a) and the release set forth in
clause (b) of this Section 2.1.2.

          2.1.3 At least one Business Day prior to the Closing Date, Seller shall provide Purchaser with
a letter issued by Metropolitan, which letter shall set forth as of the Closing Date the
outstanding principal balance of the Metropolitan Loan, together with any accrued but unpaid
interest thereon, if any (collectively, the “Metropolitan Amount”), and the amount of the actual
“Prepayment Fee” (as such term is defined in the Note). At Closing, upon the execution and
delivery of the Loan Assumption Agreement by Metropolitan and Purchaser, Seller shall pay to
Purchaser, as a credit against the Purchase Price, the Metropolitan Amount.

     2.2 Deposit.

3

 

          2.2.1 Within three (3) Business Days (as defined in Section 15.11) following the Effective
Date of this Agreement, Purchaser shall deposit with Commonwealth Land Title Insurance Company,
1015 15th Street N.W., Suite 300, Washington, D.C. 20005, Attn: David P. Nelson (the
“Escrow Agent”) by bank wire transfer the sum of Twenty Seven Million Seven Hundred Fifty Thousand
and 00/100 Dollars ($27,750,000.00), as a non-refundable deposit (except as otherwise specifically
provided herein) to assure Purchaser’s performance hereunder (together with all interest thereon,
the “Deposit”). Prior to making the Deposit, Seller, Purchaser and the Escrow Agent shall enter
into an escrow agreement substantially in the form of Exhibit D attached hereto (the
“Escrow Agreement”). Purchaser’s failure timely to deposit any amount required pursuant to this
Section 2.2.1 shall be deemed a default under this Agreement entitling Seller immediately and
without notice to terminate this Agreement as its sole remedy.

          2.2.2 Escrow Agent shall place the Deposit in an interest-bearing escrow account at a
federally-insured commercial bank acceptable to both Seller and Purchaser. The Escrow Agent shall
hold the Deposit in accordance with this Agreement and the Escrow Agreement. At Closing (as
defined below), Escrow Agent shall deliver the Deposit to Seller and credit the Deposit against the
Purchase Price.

ARTICLE 3 TITLE AND SURVEY

     3.1 State of Title to be Conveyed. Title to the Property shall be conveyed to Purchaser at
Closing in fee simple by Special Warranty Deed, free and clear of any and all liens, mortgages,
deeds of trust, security interests and other encumbrances, except for those items identified on
Schedule 3.1 attached hereto (the “Permitted Exceptions”).

     3.2 Title Commitment and Survey. Purchaser hereby acknowledges receipt of (i) a commitment
for owner’s title insurance policy for the Property, issued by Commonwealth Land Title Insurance
Company, c/o Commonwealth Land Title Insurance Company, 1015 15th Street N.W., Suite
300, Washington, D.C. 20005 (the “Title Company”), under Commitment No. 06-001712, dated with an
effective date of October 26, 2006 and revised on October 27, 2006 (the “Title Commitment”),
identifying no exceptions to title other than the Permitted Exceptions, together with copies of all
instruments giving rise to any liens, encumbrances, defects or other exceptions to title noted
therein; and (ii) a survey of the Property prepared by Landmark-fleet Surveyors, P.C. dated
September 25, 2006, as the same may be updated (the “Survey”), identifying no exceptions to title
other than the Permitted Exceptions. Provided Seller satisfies, to the extent required by the
Title Company, the requirements applicable to Seller listed on Schedule B – Section 1 of the Title
Commitment and extracted on Schedule 3.2 attached hereto on or before Closing (including,
without limitation, providing all documents and information to the Title Company and taking all
other actions as may be required to remove and discharge of record the mechanics’ lien referenced
in Item 11 of Schedule 3.2, or to cause the same to be
bonded or insured over), Purchaser hereby accepts the state of title and survey as reflected
in the Title Commitment and Survey and waives any claim of defect or other title or survey
objection based on matters revealed in the aforesaid Title Commitment or Survey. Purchaser must
accept title to the Property subject to all Additional Permitted Exceptions, and Purchaser hereby
waives any claim of defect, title objection, or right to terminate this Agreement with respect to
any and all Additional Permitted Exceptions. As used herein, the term “Additional Permitted

4

 

Exceptions” means exceptions to title which are not Permitted Exceptions and which satisfy all of
the following conditions: (a) arise after the date of the Title Commitment and (b) are not caused
by any act or omission of Seller and (c) do not, in Purchaser’s reasonable opinion, have a material
adverse affect on the marketability of title to the Property.

ARTICLE 4 PROPERTY INFORMATION

     4.1 Property Information. Seller has delivered, or otherwise made available, as appropriate,
to Purchaser, for Purchaser’s review, prior hereto, copies of all Leases, Contracts, Permits,
studies and other information pertaining to the Property in Seller’s possession (collectively, the
“Property Information”). Purchaser shall keep such Property Information confidential, subject to
Purchaser’s right to disseminate Property Information to or among the parties listed in Section
15.17 of this Agreement, and subject to the restrictions set forth in Section 15.17. Seller makes
no representation or warranty as to the truth or accuracy of the Property Information provided to
Purchaser, except as otherwise expressly provided in this Agreement.

5

 

ARTICLE 5 PURCHASER’S DUE DILIGENCE

     5.1 Access and Inspection Period.

          5.1.1 Purchaser’s access to the Property from and after the Effective Date shall be governed
by the terms of this Agreement and shall be subject to the terms and conditions (including, but
not, limited to, security and access restrictions) of all Leases of all or any portion of the
Property, and such other terms and conditions as Seller may reasonably require. Purchaser shall
not interfere with Seller’s operations at the Property and the rights of tenants of the Property.
Purchaser shall not alter or damage the Property in any manner and Purchaser shall not permit any
mechanics’ liens to be filed against all or any part of the Property as a result of the actions of
Purchaser, its agents, consultants or representatives. Purchaser shall notify Seller’s senior
property manager, Frank Mathews of Boston Properties (telephone: (804) 780-0800) at least one (1)
Business Day prior to any proposed physical inspections and proposed contacts with tenants or
subtenants. Frank Mathews or any other person Seller designates shall coordinate such inspections
as well as any conversations or visits with tenants or subtenants and shall have the right to be in
attendance at all inspections, conversations and visits, and Seller shall make such person
reasonably promptly available.

          5.1.2 Purchaser, in its sole and absolute discretion, may terminate this Agreement for any
reason (other than reasons based solely on the physical condition [other than the environmental
condition] of the Property, Purchaser hereby waiving any right to terminate this Agreement based on
the physical condition [other than the environmental condition] of the Property) by delivering to
Seller a written notice of termination (a “Section 5.1.2 Termination Notice”) at any time during
the period (“Inspection Period”) commencing on the Effective Date and ending at 5:00 p.m., Eastern
Daylight Savings Time, on November 3, 2006 (the “Expiration of the Inspection Period”), and if the
Section 5.1.2 Termination Notice is received by Seller prior to the Expiration of the Inspection
Period, then this Agreement shall terminate, the Deposit shall be returned to Purchaser, and Seller
and Purchaser shall have no further obligations hereunder except for the those obligations which
specifically survive termination of the Agreement. If Purchaser does not terminate this Agreement
before the Expiration of the Inspection Period, Purchaser shall have waived its right to terminate
this Agreement under this Section 5.1.2. Purchaser acknowledges and agrees that time shall be of
the essence with respect to the giving of the Section 5.1.2 Termination Notice and if the Section
5.1.2 Termination Notice is not timely received by Seller prior to the Expiration of the Inspection
Period, Purchaser shall have no further right to terminate this Agreement pursuant to this Section
5.1.2.

     5.2 Indemnity. Purchaser hereby agrees to indemnify, defend, and hold harmless Seller, its
partners, members, affiliates, property manager, and their respective officers, directors, agents,
employees, and representatives (collectively, the “Indemnified Parties”) from and against any and
all liens, claims, or damages of any kind or nature, including any demands, actions or causes of
action, assessments, losses, costs, expenses, liabilities, interest and penalties, and attorneys’
fees suffered, incurred, or sustained by any of the Indemnified Parties caused by Purchaser, its
agents or representatives with respect to any due diligence activities pursuant to this Agreement
or undertaken prior to the Effective Date; provided that Purchaser’s obligations
hereunder shall not apply to the discovery of any pre-existing conditions (including

6

 

environmental conditions) on the Property to the extent that the activities of Purchaser, its
agents and representatives do not exacerbate any such condition. Purchaser will promptly restore
the Property to its condition before any damages that may have been caused by Purchaser or its
agents or representatives in the conduct of the review. Notwithstanding anything set forth herein
to the contrary, the indemnification and restoration obligations of Purchaser in this Section shall
survive for a period of six (6) months after Closing or the earlier termination, for any reason, of
this Agreement. Prior to any entry onto the Property, Purchaser shall obtain and deliver to Seller
a certificate of liability and property damage insurance naming Seller and Seller’s property
manager as additional insureds, with combined single limit of coverage not less than Five Million
Dollars ($5,000,000), issued by a company authorized to do business in the Commonwealth of
Virginia.

     5.3 Property Information. Seller has delivered to Purchaser or made available for Purchaser’s
inspection at the Property, all of the materials described on Schedule 5.3 hereof (collectively,
the “Property Information”). Purchaser shall keep such Property Information confidential, subject
to Purchaser’s right to disseminate Property Information to or among the parties listed in Section
15.17.2 of this Agreement. Except as otherwise expressly provided in this Agreement, Seller makes
no representation or warranty as to the truth, accuracy or completeness of the Property
Information.

     5.4 As Is, Where Is.

          5.4.1 Except as provided in the express representations and warranties of Seller set forth in
Article 6 and in any other express provision in this Agreement to the contrary, and except for the
warranty set forth in the Deed (the “Express Representations”), Seller does not, by the execution
and delivery of this Agreement, and Seller shall not, by the execution and delivery of any document
or instrument executed and delivered in connection with Closing, make any representation or
warranty, express or implied, of any kind or nature whatsoever, with respect to the Property, and
all such warranties are hereby disclaimed.

          5.4.2 Without limiting the generality of the foregoing, other than the Express
Representations, Seller makes, and shall make, no express or implied warranty as to matters of
zoning, acreage, tax consequences, physical or environmental condition (including, without
limitation, laws, rules, regulations, orders and requirements pertaining to the use, handling,
generation, treatment, storage or disposal of any toxic or hazardous waste or toxic, hazardous or
regulated substance), valuation, governmental approvals, governmental regulations or any other
matter or thing relating to or affecting the Property (collectively, the “Disclaimed Matters”).

          5.4.3 Notwithstanding anything to the contrary set forth in this Agreement, the Property,
including without limitation the roofs, all structural components, all heating, ventilating, air
conditioning, mechanical, plumbing, and electrical systems, fire and life safety and all other
parts of the buildings constituting a portion of the Property, shall be conveyed to Purchaser, and
Purchaser shall accept same, in their “AS IS” “WHERE IS” condition on the Closing Date, “WITH ALL
FAULTS” and “SUBJECT TO ALL DEFECTS.” Purchaser
acknowledges that Seller’s willingness to sell the Property to Purchaser at the Purchase Price
has been induced, in part, by the agreement of Purchaser to purchase the Improvements and the

7

 

Personal Property in such “AS IS” condition. Purchaser hereby acknowledges, represents and
warrants that it is not in a disparate bargaining position with respect to Seller in connection
with the transaction contemplated hereby, that Purchaser freely and fairly agreed to the waivers
and conditions of this Section 5.4.3 as part of the negotiations of this Agreement, and Purchaser
has been represented by adequate legal counsel in connection herewith and has conferred with such
legal counsel concerning the waivers and other conditions of this Section.

          5.4.4 Without in any way limiting any provision of this Section, Purchaser specifically
acknowledges and agrees that, except with respect to the Express Representations and the
obligations of Seller set forth in Section 6.1 hereof and any other provisions of this Agreement to
the contrary, Purchaser hereby waives, releases and discharges any claim it has, might have had or
may have against Seller with respect to (a) the Disclaimed Matters, (b) the condition of the
Property as of the Closing Date, (c) the past, present or future condition or compliance of the
Property with regard to any environmental protection, pollution control or land use laws, rules,
regulations, orders or requirements, or (d) any other state of facts that exists with respect to
the Property. Notwithstanding the foregoing, nothing contained in this Section 5.4 shall be
construed to limit Purchaser’s right to implead Seller into any lawsuit in which Purchaser has been
named by a governmental entity or other third party as the result of the condition or compliance of
the Property with regard to any environmental protection or pollution control laws, rules,
regulations, orders or requirements during the period Seller owned the Real Property.

ARTICLE 6 REPRESENTATIONS AND WARRANTIES.

     6.1 Seller’s Representations and Warranties. Seller represents and warrants to Purchaser as
of the Effective Date of this Agreement as follows:

          6.1.1 Organization. Seller is duly formed, validly existing and in good standing
under the laws of the jurisdiction of its organization and is duly qualified to do business in, and
is in good standing under, the laws of the State of Virginia.

          6.1.2 Authority/Consent. Except as provided below, Seller possesses all requisite
power and authority, and has taken or will by Closing have taken all actions required by its
organizational documents and applicable law, to execute and deliver this Agreement and to
consummate the transactions contemplated by this Agreement.

          6.1.3 Litigation. Except as disclosed on Schedule 6.1.3 attached hereto, to
Seller’s knowledge, no action, suit or other proceeding (including, but not limited to, any
condemnation action) is pending or has been threatened in writing that concerns or involves the
Property.

          6.1.4 Bankruptcy. No bankruptcy, insolvency, reorganization or similar action or
proceeding, whether voluntary or involuntary, is pending, or, to Seller’s knowledge, threatened,
against Seller.

8

 

          6.1.5 Other Sales Agreements. Seller has not entered into any other contract to sell
the Property or any part thereof (or any options or rights of first offer or refusal) which is
currently in effect.

          6.1.6 Contracts. Attached hereto as Exhibit C is a complete, true and correct
list of all material contracts or material agreements and, to Seller’s knowledge, all other
contracts and agreements, with respect to or affecting the operation and ownership of the Property
including, without limitation, maintenance, service and utility contracts. Except for the
contracts referenced on the list of Contracts attached hereto as Exhibit C, there are no
material contracts or material agreements, or to Seller’s knowledge, any other contracts or
agreements, of construction, employment, management, leasing, brokerage, commission, service, or
supply in effect which will affect the Property or operations of the Property after Closing. As
used in this Section 6.1.6 only, the term “material” means any contract or agreement requiring
annual expenditures of more than $25,000.

          6.1.7 Leases. Attached hereto as Exhibit B is a complete, true and correct
list of all Leases, and true and correct copies of all such Leases have been delivered to Purchaser
prior to the execution of this Agreement. Except for the Leases referenced on the list of Leases
attached hereto as Exhibit B and leases, amendments or other occupancy agreements which may
be entered into by Seller pursuant to Section 7.1 hereof, there are no leases, rental agreements,
licenses, license agreements or other occupancy agreements with tenants in effect which will affect
the Property after Closing. To Seller’s knowledge, each Lease is in full force and effect in
accordance with its terms, and no rent has been paid more than one month in advance. To Seller’s
knowledge, except as may be described in Schedule 6.1.7 attached hereto, there exists no
default by Seller or any tenant under any of the Leases. To Seller’s knowledge, Exhibit
B-2 hereto identifies all outstanding leasing commissions payable with respect to the Leases,
and no other brokerage or leasing commissions or other compensation is due or payable with respect
to or on account of any of the Leases. Except as set forth on Schedules 9.5.6-1 and
9.5.6-2 and in the Leases, (i) to Seller’s knowledge, no tenant is entitled to any concession,
rebate, tenant improvement allowance, period of free occupancy, or period free of rent under its
Lease or any other agreement with Seller, and (ii) to Seller’s knowledge, each tenant has accepted
the premises covered by its Lease and is in possession of such premises in accordance with its
Lease. Except as set forth on Schedules 9.5.6-1 and 9.5.6-2, to Seller’s knowledge all
initial construction and installation work required of the landlord under the Leases has been fully
performed, paid for, and accepted by each tenant. Attached hereto as Exhibit B-3 is a true
and complete list of all amounts actually billed by Seller to tenants under Leases for the month of
October, 2006.

          6.1.8 Violations of Law. Except as disclosed on Schedule 6.1.8 attached
hereto, to Seller’s knowledge, Seller has not received written notice from any governmental
authority of any material violation of any federal, state, county or municipal laws, ordinances,
orders,
regulations and requirements affecting the Property or any portion thereof (including the
conduct of business operations thereon) which are unresolved.

          6.1.9 Metropolitan Loan. All documents, instruments and agreements evidencing or
relating to the Metropolitan Loan are listed on Exhibit K attached hereto and made

9

 

a part
hereof (collectively, the “Metropolitan Loan Documents”). Seller has delivered to Purchaser
complete and accurate copies of all such Metropolitan Loan Documents. Seller has not received any
written notice from Metropolitan asserting a default under the Metropolitan Loan Documents which
remains uncured or outstanding, and to Seller’s knowledge no default by Seller exists under the
Metropolitan Loan Documents.

          6.1.10 Prohibited Persons/Patriot Act. (i) Seller is not a person and/or entity with
whom Purchaser, a U.S. company or person, is restricted from doing business under the International
Emergency Economic Powers Act, 50 U.S.C. § 1701 et seq.; the Trading with the Enemy Act, 50 U.S.C.
App. § 5; any executive orders promulgated thereunder; any implementing regulations promulgated
thereunder by the U.S. Department of Treasury Office of Foreign Assets Control (“OFAC”) (including
those persons and/or entities named on OFAC’s List of Specially Designated Nationals and Blocked
Persons (the “SDN List”)); or any other applicable law of the United States, and (ii) to the best
of Seller’s knowledge, Seller did not purchase the property with funds that were derived from any
unlawful activity.

          6.1.11 Warranties. To Seller’s knowledge, Schedule 6.1.11 contains a true and
complete list of all guaranties and warranties that are currently in effect with respect to the
Property.

     6.2 Purchaser’s Representations and Warranties. Purchaser represents to Seller, as of the
Effective Date of this Agreement as follows:

          6.2.1 Organization. Purchaser is duly formed, validly existing and in good standing
under the laws of the jurisdiction of its organization.

          6.2.2 Authority/Consent. Purchaser possesses all requisite power and authority, has
taken all actions required by its organizational documents and applicable law, and has obtained all
necessary consents, to execute and deliver this Agreement and to consummate the transactions
contemplated in this Agreement.

          6.2.3 Prohibited Persons/Patriot Act. (i) Purchaser is not a person and/or entity with
whom Seller, a U.S. company or person, is restricted from doing business under the International
Emergency Economic Powers Act, 50 U.S.C. § 1701 et seq.; the Trading with the Enemy Act, 50 U.S.C.
App. § 5; any executive orders promulgated thereunder; any implementing regulations promulgated
thereunder by OFAC (including those persons and/or entities named on the SDN List); or any other
applicable law of the United States, and (ii) none of the funds to be used in connection with the
purchase of the property have been derived from any unlawful activity.

     6.3 Knowledge. For purposes of this Agreement, the phrase “to Seller’s knowledge” means the
present, actual knowledge of Stanley Shashoua and Joe Cianciotta of HRO Asset Management LLC
(“Asset Manager”), each of whom has been actively involved in the management of the Property on
behalf of the Asset Manager, as asset advisor to Seller, without investigation or review of files
relating to the Property. Such persons shall not have any personal liability for any matter set
forth in this Agreement. Seller represents and warrants to Purchaser

10

 

that the individuals named in
this Section 6.3 are knowledgeable representatives of Asset Manager with respect to the Property,
its leasing and operation.

ARTICLE 7 COVENANTS OF SELLER PRIOR TO CLOSING.

     7.1 Operation of Property. From the Effective Date until the Closing, Seller shall operate
the Property in accordance with the terms of this Section 7.1.

          7.1.1 From the Effective Date until the Closing, Seller shall continue to operate, maintain
and repair the Property in the ordinary course of business and in the same manner as Seller has
maintained and operated the Property in the past twelve (12) months, but shall not take any of the
following actions after the Effective Date without the prior written consent of Purchaser, which
consent (i) prior to the expiration of the Inspection Period, shall not be unreasonably withheld,
conditioned or delayed, and (ii) after the expiration of the Inspection Period may be withheld,
conditioned or denied in Purchaser’s sole and absolute discretion: (a) make or permit to be made
any material alterations to or upon the Property, (b) enter into any contracts for the provision of
services and/or supplies to the Property which are not terminable by Purchaser upon thirty (30)
days’ prior written notice following the Closing, or amend or modify the Contracts in any manner,
unless such Contract as amended may be terminated upon thirty (30) days’ prior written notice, (c)
enter into any leases with respect to the Property or any part thereof, or extend, modify, cancel
or otherwise alter any one or more of the Leases, (d) reduce or change in any material respect the
level of maintenance to the Property, or (e) alter or amend the zoning classification of the
Improvements. If Closing does not occur within forty-five (45) days after the Scheduled Closing
Date as a result of (i) the failure of the condition precedent to Closing set forth in Section
8.1.1, (ii) the occurrence of a casualty at the Property, or (iii) a dispute between Seller and
Purchaser, then notwithstanding the foregoing provisions of this Section 7.1.1, without the consent
of Purchaser (1) Seller may make material alterations at the Property if required by a Lease or if
needed to maintain the Property in good repair and condition or to restore a casualty; (2) Seller
may renew a Contract or enter into contracts for the provision of services and/or supplies to the
Property so long as such contracts are on commercially reasonable terms and conditions and are
terminable by Purchaser upon thirty (30) days’ prior written notice following the Closing, and (3)
Seller may enter into new leases with respect to the Property or any part thereof on then market
terms, or extend one or more of the Leases on market terms, provided that such market terms shall
be subject to Purchaser’s consent not to be unreasonably withheld, delayed or conditioned.
Purchaser shall notify Seller of whether Purchaser consents to such market terms within ten (10)
days after Purchaser has received a request for such consent from Seller. If Purchaser fails to
notify Seller of whether Purchaser consents to such market terms within said ten (10) day period,
such consent will be deemed
granted. With respect to clause (3) of this Section 7.1.1, if Purchaser withholds, delays or
conditions its consent to a new lease or an extension of the term of an expiring Lease, and Seller
believes such refusal, delay or conditioning of consent was unreasonable, then Seller can institute
an expedited arbitration proceeding pursuant to the provisions of Exhibit L attached hereto
(an “Expedited Arbitration”), and if the arbitrator determines in such proceeding in favor of
Seller, then Purchaser shall reimburse Seller for the economic loss incurred by Seller due to
Purchaser’s failure to consent to such leases or extensions.

11

 

          7.1.2 Seller shall have no obligation to Purchaser to (a) bring the Property into compliance
with any laws or regulations applicable to the Property, (b) make any repairs or improvements to
any portion of the Property that would improve the condition of the Property beyond the condition
of the Property as it exists on the Effective Date, or (c) make or perform, during the term of this
Agreement, any capital repairs or replacements unless necessary to comply with the provisions of
Section 7.1.1.

          7.1.3 Prior to the expiration of the Inspection Period, Purchaser shall determine which
service agreements and other contracts are terminable and, among those, which Purchaser elects to
have Seller terminate, and Seller will deliver notices of termination at Closing canceling such
agreements if Purchaser gives Seller notice of such decision three (3) Business Days prior to the
Closing Date. At Closing, Seller shall assign to Purchaser, and Purchaser shall assume, only the
Contracts identified on Exhibit C hereto pursuant to the Bill of Sale and Assignment and
Assumption Agreement.

     7.2 Governmental Notices. Promptly after receipt, Seller shall provide Purchaser with copies
of any written notices that Seller receives with respect to (i) any condemnation or eminent domain
proceedings affecting the Property; or (ii) any violation of any Environmental Law or any zoning,
health, fire, safety or other law, regulation or code applicable to the Property.

     7.3 Litigation. Seller will advise Purchaser promptly of any litigation, arbitration
proceeding or administrative hearing which concerns or affects the Property in any manner and which
is instituted after the Effective Date.

     7.4 Insurance. Prior to Closing, Seller will maintain Seller’s existing insurance coverage
with respect to the Property.

     7.5 Estoppel Certificates. Seller shall endeavor to obtain and deliver to Purchaser as soon
as possible, but in all events not later than one (1) Business Day prior to the Closing Date, an
estoppel certificate in substantially the form of Exhibit E-1 attached hereto from each
tenant at the Property or in the form required by each tenant’s lease if such form is delivered to
Seller by such tenant (provided that Seller shall initially submit to each tenant an estoppel
certificate in the form of said Exhibit E-1 or in such other form as Purchaser may
reasonably approve, Purchaser hereby acknowledging that Purchaser has approved a form other than
the form of said Exhibit E-1 with respect to the Major Listed Tenants (as hereafter
defined), and Seller shall request that each such tenant sign and return such certificate in such
form) (collectively, the “Lease Certificates”). Seller’s obligation to endeavor to obtain Lease
Certificates from all
tenants shall include making requests therefor but shall not include the payment of any money,
issuance of any default notices or any other action by Seller. As used in this Agreement, the term
“Major Listed Tenants” shall mean each of Hunton & Williams LLP; Wachovia Securities Financial
Holdings, LLC trading as Wachovia Bank, N.A.; LeClair Ryan; Commonwealth of Virginia, Department of
Economic Development; UBS Financial, Inc.; Reed, Smith LLP; and Morgan Keegan Company, Inc.; and
Deloitte & Touche USA LLP.

     7.6 Withholding.

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          7.6.1 Prior to Closing, Seller intends to file a Form 8288-B, FIRPTA Withholding Certificate
(the “FIRPTA Certificate”) in the form required by the Internal Revenue Service, a copy of which
shall be provided to Purchaser. The FIRPTA Certificate will indicate the taxable gain, if any,
that Seller will recognize upon the sale of the Property to Purchaser and the tax liability amount
required to be paid to the Internal Revenue Service in connection therewith (the “Certificate Tax
Amount”).

          7.6.2 In the event that Seller obtains approval by the Internal Revenue Service of the FIRPTA
Certificate prior to Closing, Seller shall provide a copy of the approved FIRPTA Certificate to
Purchaser and Purchaser shall withhold such amount as may be approved by the Internal Revenue
Service and remit such amount to the Internal Revenue Service in accordance with its obligations
set forth in Section 1461 of the Internal Revenue Code.

          7.6.3 In the event that Seller has not obtained a FIRPTA Certificate approved by the Internal
Revenue Service prior to closing and delivered such approved FIRPTA Certificate to Purchaser, then
pursuant to Section 4.01 of Revenue Procedure 2000-35, 2000-2 CB 211 (August 9, 2000) and the
filing of such FIRPTA Certificate with the Internal Revenue Service prior to the date of sale,
Purchaser is required to withhold from the sales proceeds ten percent (10%) of the gross sales
proceeds derived from the sale of the Property, but is not required to pay such withheld amounts to
the Internal Revenue Service pending approval of said FIRPTA Certificate by the Internal Revenue
Service. Accordingly, in the event that the circumstances described in the immediately preceding
sentence apply, Seller and Purchaser agree that Purchaser shall withhold ten percent (10%) of the
gross sales proceeds (the “Withholding Escrowed Funds”), from the Purchase Price and pay the
Withholding Escrowed Funds to the Escrow Agent, acting as withholding escrow agent (“Withholding
Escrow Agent”) to hold pending approval of the FIRPTA Certificate by the Internal Revenue Service.
Upon such approval of the FIRPTA Certificate by the Internal Revenue Service, Seller will cause a
copy of such approval to be delivered to Purchaser, and Seller and Purchaser shall direct
Withholding Escrow Agent to apply the Withholding Escrowed Funds to pay such approved tax liability
(the “Final Tax Liability”) within twenty (20) days after the date of such approval. If either
Seller or Purchaser fails to join in such direction to Withholding Escrow Agent within said twenty
(20) day period, then, after the expiration of said twenty (20) day period, either party may
unilaterally direct Withholding Escrow Agent to apply the Withholding Escrowed Funds to pay the
Final Tax Liability. If the Final Tax Liability is greater than the Withholding Escrowed Funds,
then Seller shall promptly pay such deficiency to the Withholding Escrow Agent for payment to the
Internal Revenue Service. If the Final Tax Liability is less than the Withholding Escrowed Funds,
then the
Withholding Agent shall promptly pay the excess to Seller, together with the interest or
income earned on the Withholding Escrowed Funds. It is anticipated that the Final Tax Liability
will approximate the Certificate Tax Amount.

          7.6.4 Seller shall file or cause to be filed any and all tax returns, information returns or
any other required filings in connection with the transfer on or before the due date, 
including any extension of time to file, of such returns with the Internal Revenue Service
and timely pay any and all tax liabilities associated therewith. Seller hereby agrees to
indemnify, defend and hold harmless Purchaser from and against any and all losses, liabilities,
claims, damages, costs and expenses (including reasonable attorneys’ fees, interest and penalties)

13

 

incurred or realized by Purchaser and relating to the payment to the Internal Revenue Service of
any such withholding tax due upon the sale of the Property by Seller to Purchaser, which obligation
shall not be limited by time or amount by any provision of this Agreement; provided, however, that
the foregoing indemnity shall not apply to any and all losses, liabilities, claims, damages, costs
and expenses (including reasonable attorneys’ fees, interest and penalties) incurred or realized by
Purchaser due to Purchaser’s failure to follow the procedures prescribed by the Internal Revenue
Code with respect to amounts that have been withheld and are to be remitted to the Internal Revenue
Service pursuant to Section 7.6.2 of this Agreement.

          7.6.5 In the event that the circumstances described in the first sentence of Section 7.6.3
apply, each of Seller and Purchaser agrees to execute and deliver at the Closing an escrow
agreement with Withholding Escrow Agent, in the form attached hereto as Exhibit M (the
“Withholding Escrow Agreement”). Such escrow agreement shall provide for the investment of the
Withholding Escrowed Funds in designated investments or accounts available to the Withholding
Escrow Agent and approved by Seller, and all interest or other income earned thereon shall be added
to and deemed a part of the Withholding Escrowed Funds. Seller will pay all costs and expenses
relating to the escrow account established pursuant to this Section 7.6.

          7.6.6 In the event that a FIRPTA Certificate is not filed in accordance with this Section 7.6
prior to Closing, Purchaser shall withhold ten percent (10%) of the gross sales proceeds from the
Purchase Price and remit such amount to the Internal Revenue Service in accordance with its
obligations set forth in Section 1461 of the Internal Revenue Code.

          7.6.7 The provisions of this Section 7.6 shall survive the Closing.

ARTICLE 8 CONDITIONS PRECEDENT TO CLOSING.

     8.1 Conditions Precedent to Purchaser’s Obligation to Close. Purchaser’s obligation to
purchase the Property is subject to satisfaction on the Closing Date (as such date may be extended
as provided herein) of the following conditions, any of which may be waived in writing by Purchaser
in Purchaser’s sole and absolute discretion.

          8.1.1 Title. A final examination of the title to the Real Property shall disclose no
title exceptions except for the Permitted Exceptions (and Additional Permitted Exceptions, if any),
matters caused by Purchaser or its activities on the Property, or other matters approved in
writing by Purchaser. There shall be no material adverse change in the matters reflected in
the Survey. In addition, the title insurance company conducting the title examination shall be
prepared to issue to Purchaser, at standard rates, an ALTA Form B (1992) owner’s title insurance
policy in the amount of the Purchase Price, insuring that the fee simple estate to the Property is
vested in Purchaser, subject only to the Permitted Exceptions (and Additional Permitted Exceptions,
if any), matters caused by Purchaser or its activities on the Property, or other matters approved
in writing by Purchaser.

          8.1.2 Required Estoppels. At least one (1) Business Day prior to the Closing Date,
Seller shall have obtained and delivered to Purchaser a Lease Certificate duly executed by or on
behalf of, (a) Wachovia Securities Financial Holdings, LLC trading as Wachovia Bank,

14

 

N.A., Hunton &
Williams LLP and LeClair Ryan, and (b) other tenants under Leases at the Property covering fifty
percent (50%) of the remaining rentable office and retail square footage of the Improvements that
are subject to Leases as of the Closing, exclusive of the rentable office and retail square footage
leased to the tenants set forth in clause (a) of this Section 8.1.2, (i.e., said 50% being equal to
109,781 rentable square feet) (collectively, the “Required Estoppels”). Notwithstanding anything
to the contrary contained herein, Purchaser shall not be obligated to accept any Lease Certificate
as satisfying the requirements of this Section 8.1.2 (an “Unacceptable Lease Certificate”) which
discloses any materially adverse matters that are not disclosed in Seller’s representations and
warranties hereunder or in the applicable Leases, and if such Lease Certificate is deemed to be an
Unacceptable Lease Certificate, the same shall not apply to the satisfaction of the condition to
Closing set forth in this Section 8.1.2; provided, however, that the foregoing shall not limit
Seller’s right to deliver a Seller’s Estoppel Statement pursuant to Section 8.3.2 of this Agreement
in lieu of any Unacceptable Lease Certificate. In any Lease Certificate, other than any Lease
Certificate relating to a Major Listed Tenant, any omission, qualification or limitation of or to
the statement set forth in paragraph 17 of the form of certificate attached as Exhibit E-1,
shall not cause a Lease Certificate to be deemed an Unacceptable Lease Certificate.

          8.1.3 Delivery of Closing Documents. Seller shall have delivered each of the Closing
Documents required to be delivered under Section 9.2.1 of this Agreement.

          8.1.4 Covenants. Seller shall have performed and observed, in all material respects ,
all covenants of Seller under this Agreement.

          8.1.5 Representations and Warranties. All representations and warranties of Seller
set forth in this Agreement shall be true and correct in all material respects as of the Closing
Date.

          8.1.6 Metropolitan Consent. The Metropolitan Consent shall have been obtained, and
Purchaser, Seller and Metropolitan shall have agreed upon the terms and conditions of the Loan
Assumption Agreement in accordance with the provisions of Section 2.1.2.

     8.2 Conditions Precedent to Seller’s Obligation to Close. Seller’s obligation to sell the
Property is subject to satisfaction, on or before the Closing Date (as such date may be extended as
provided herein) of the following conditions, any of which may be waived in writing by Seller, in
Seller’s sole and absolute discretion:

          8.2.1 Covenants. Purchaser shall have performed and observed, in all material
respects, all covenants of Purchaser under this Agreement.

          8.2.2 Representations and Warranties. All representations and warranties of Purchaser
set forth in this Agreement shall be true and correct in all material respects as if made on the
Closing Date.

     8.3 Failure of a Condition.

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          8.3.1 In the event that any condition precedent to Closing has not been satisfied on or before
the Closing Date, then the party whose conditions to Closing have not been satisfied (the
“Unsatisfied Party”) shall give notice to the other party of the condition or conditions which the
Unsatisfied Party asserts are not satisfied, and the Closing shall be extended for up to ten (10)
Business Days to permit the satisfaction of any such unsatisfied conditions. If the conditions
specified in such notice are not satisfied within ten (10) Business Days after receipt of such
notice, then either party may terminate this Agreement, whereupon the Deposit shall be promptly
refunded to Purchaser and thereafter neither party shall have any further rights or obligations
hereunder (other than any obligations of either party that expressly survive termination), except
if such failure of a condition is due to a default by one of the parties, in which event the
non-defaulting party shall have those rights and remedies set forth in Article 11. Notwithstanding
anything contained herein to the contrary, if any of the conditions precedent to Purchaser’s
obligation to close, as set forth in Section 8.1 hereof, are not satisfied within the ten (10)
Business Day period specified above and the same are reasonably susceptible of being cured, Seller
shall have the right to extend such period in which to satisfy the unsatisfied condition for a
period of up to thirty (30) additional days, by giving notice thereof to Purchaser within such ten
(10) Business Day period. It is understood and agreed that the failure of any condition set forth
in Section 8.1.1 hereof (Title) that is not reasonably susceptible of being cured within the time
allotted shall not constitute a default, breach of a covenant or other failure to perform by Seller
hereunder unless such failure was caused by an act or omission of Seller.

          8.3.2 If one or more of the Required Estoppels are not obtained and delivered pursuant to the
condition set forth in Section 8.1.2 hereof (or as otherwise specifically provided in Section
8.1.2) and such condition remains unsatisfied after the passage of the cure periods set forth in
Section 8.3.1 above, then Seller shall have the right, but not the obligation, to deliver to
Purchaser a certificate in the form of Exhibit E-2 attached hereto (a “Seller’s Estoppel
Statement”) executed by Seller in place of such Required Estoppel(s) that Seller is unable to
obtain in satisfaction of such condition, the representations and warranties of which shall survive
the Closing for a period of six (6) months; provided that, if Seller elects to deliver any such
Seller estoppel with respect to a Named Required Tenant, Purchaser shall have the right, in
Purchaser’s discretion, to (a) accept such Seller estoppel in satisfaction of such closing
condition
and proceed to Closing, or (b) reject such Seller estoppel, in which event the condition set
forth in Section 8.3.1 will be deemed not to have been satisfied with respect to such Named
Required Tenant and Purchaser shall have the right to terminate this Agreement, whereupon the
Deposit shall be promptly refunded to Purchaser and thereafter neither party shall have any further
rights or obligations hereunder (other than any obligations of either party that expressly survive
termination). If Seller provides a Seller estoppel pursuant to this Section 8.3.2, then Seller
shall have the right at any time to substitute a Lease Certificate which is subsequently obtained
from the tenant or tenants, and which satisfies the requirements of Section 8.1.2 above, in
replacement of the corresponding Seller’s estoppel previously delivered by Seller. As used herein,
“Named Required Tenant” shall mean each of Wachovia Bank, N.A. (Wachovia Securities), Hunton &
Williams LLP and LeClair Ryan.

          8.3.3 If the transaction contemplated by this Agreement closes, the parties shall be deemed to
have waived any and all unmet or unsatisfied conditions, other than any unmet or

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unsatisfied
conditions arising out of a breach by either party of any of its representations and warranties
hereunder of which the other party has no knowledge as of Closing.

8.4 Representations and Warranties.

          8.4.1 All representations and warranties of Seller set forth in this Agreement shall be true
and correct in all material respects as of the Closing Date and shall be updated and remade at
Closing by delivery of a certificate of representations and warranties, subject to changes not
willfully caused by Seller (e.g., a notice of condemnation) and changes in the ordinary course of
business, including, but not limited to, changes as a result of leases, lease terminations,
amendments and other occupancy agreements which may be entered into by Seller pursuant to Section
7.1 hereof.

          8.4.2 If any of Seller’s representations or warranties set forth in Section 6.1 hereof is not
true and correct in all material respects as of the Closing Date, Purchaser shall notify Seller of
such inaccuracy and shall include in such notice (the “Section 8.4.2 Notice”) an estimate of an
amount determined by Purchaser in good faith to compensate Purchaser for any loss or damage to
Purchaser resulting from such representation or warranty being untrue (such amount, the
“Appropriate Compensation Amount”). Promptly following receipt of such Section 8.4.2 Notice (and
in all events prior to Closing), Seller shall notify Purchaser whether Seller, in its sole
discretion, elects to compensate the Purchaser for all loss or damage to Purchaser resulting from
such representation or warranty being untrue (an “Election to Compensate”). If Seller exercises
its Election to Compensate, Seller and Purchaser shall use good faith efforts to agree on the
Appropriate Compensation Amount, and, if they are unable to so agree within five (5) Business Days
after Seller’s notification of its Election to Compensate, the dispute shall be referred for
determination by Expedited Arbitration, and any amount not in dispute shall be promptly paid by
Seller to Purchaser. In no event shall the Closing be delayed on account of (a) Purchaser’s
delivery of the Section 8.4.2 Notice, (b) Seller’s delivery of its Election to Compensate (provided
the same is timely delivered prior to Closing), (c) any failure to reach agreement on the
Appropriate Compensation Amount or (d) any referral of such dispute to Expedited Arbitration. In
the event that Closing occurs and Seller and Purchaser have not yet
agreed upon the Appropriate Compensation Amount, then, upon the earlier of agreement by Seller
and Purchaser on the Appropriate Compensation Amount or final determination of same by Expedited
Arbitration, Seller and Purchaser shall jointly direct Escrow Agent to pay Purchaser the
Appropriate Compensation Amount (less any amount previously remitted by Seller to Purchaser on
account thereof) from the Post Closing Escrow. To the extent the Post Closing Escrow is, in
Purchaser’s reasonable opinion, insufficient at Closing to cover the likely extent of the
Appropriate Compensation Amount and all other post-Closing obligations of Seller under this
Agreement (including, without limitation, under Sections 9.5 and 11.1.2 and Article 12), Seller
shall deposit into the Post Closing Escrow additional sums to make the Post Closing Escrow so
sufficient, such sufficiency to be determined by Expedited Arbitration in the event of dispute.

          8.4.3 If, after receipt of such Section 8.4.2 Notice, Seller fails to notify Purchaser of its
Election to Compensate prior to the Closing or Seller notifies Purchaser that Seller elects not to
exercise its Election to Compensate, Purchaser shall have the right, in its sole discretion, either
to (i) terminate this Agreement, whereupon the Deposit shall be promptly

17

 

refunded to Purchaser and
thereafter neither party shall have any further rights or obligations hereunder (other than any
obligations of either party that expressly survive termination and, in the case of any deliberate
and intentional act of Seller that causes such breach of Seller’s representations or warranties,
subject to Purchaser’s right to reimbursement of its actual third-party out of pocket costs and
expenses pursuant to Section 11.1.1 of this Agreement), or (ii) proceed to Closing.

          8.4.4 All representations and warranties of Seller set forth in this Agreement shall survive
Closing for a period of six (6) months after Closing. In the event that after Closing but within
such 6-month period Purchaser discovers a breach of Seller’s representations and warranties set
forth herein, Purchaser’s sole rights and remedies with respect to such breach of Seller’s
representations and warranties shall be as set forth in Section 11.1 hereof.

          8.4.5 The provisions of this Section 8.4 shall survive Closing.

ARTICLE 9 CLOSING

     9.1 Closing Date. The consummation of the transaction contemplated hereby (the “Closing”)
will take place at the office of Seller’s counsel at DLA Piper US LLP, 1200 Nineteenth Street, NW,
Washington, D.C. 20036-2412, on November 16, 2006, or such earlier date as Seller and Purchaser may
mutually agree upon in writing (the “Scheduled Closing Date”). Notwithstanding the foregoing,
Seller shall have the right to extend the Scheduled Closing Date by delivering written notice to
Purchaser not later than two (2) days prior to the Scheduled Closing Date, if such extension is
necessary to comply with any notice requirement applicable to the prepayment or assumption of any
loan secured by the Property. TIME IS OF THE ESSENCE to close on the sale of the Property pursuant
to this Agreement (i) on or before the Scheduled Closing Date, or (ii) as the same may be extended
by Seller pursuant to this Section 9.1, provided, however, that Purchaser shall have a one-time
right to extend the Scheduled Closing Date by three Business Days, provided that Metropolitan
approves such extension. The date on which the Closing occurs is referred to herein as the
“Closing Date.”

     9.2 Seller’s Obligations at the Closing. At the Closing, Seller will do, or cause to be done,
the following:

          9.2.1 Closing Documents. Seller shall execute, acknowledge (if necessary) and deliver
originals of the following documents:

          9.2.1.1 Special Warranty Deed in the form of Exhibit F hereto;

          9.2.1.2 Bill of Sale in the form of Exhibit G hereto;

          9.2.1.3 Assignment and Assumption Agreement in the form of Exhibit H hereto;

     9.2.1.4 Letters to each tenant under the Leases in the form and substance of
Exhibit I hereto, notifying tenants of the conveyance of the Property to Purchaser
and advising them that, following the Closing Date, all future payments of rent are to be
made to Purchaser or at Purchaser’s direction;

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     9.2.1.5 Settlement statement showing all of the payments, adjustments and prorations
provided for in Section 9.5 and otherwise agreed upon by Seller and Purchaser;

     9.2.1.6 Such transfer tax forms as may be required as a condition to the recordation of
the Special Warranty Deed;

     9.2.1.7 Customary form of affidavit for the benefit of the Title Company certifying (i)
the absence of claims which would give rise to mechanics’ and materialmen’s liens, and (ii)
that Seller and the tenants under the Leases are the only parties in possession of the
Property. Seller shall also deliver to the Title Company such evidence as may be reasonably
required by the Title Company with respect to the authority of the person(s) executing the
deed of conveyance;

     9.2.1.8 The Loan Assumption Agreement and such other documents as may be required in
connection with the assumption of, and the release of Seller after Closing under, the
Metropolitan Loan Documents, as described in Section 2.1.2;

     9.2.1.9 A certificate of representations and warranties pursuant to Section 8.4 and
Section 9.2.1.11, together with such other documents and instruments as are contemplated by
this Agreement or reasonably requested by Purchaser (provided that such reasonably requested
documents and instruments do not increase the liabilities or obligations of Seller or
decrease the rights of Seller);

     9.2.1.10 A revised Schedule 9.5.3 updated to reflect all delinquent rents and
other outstanding amounts under Leases as of the Closing Date, which revised Schedule
9.5.3 shall be certified to be true and correct as of the Closing Date; and

     9.2.1.11 Post-Closing Escrow Agreement in the form of Exhibit J hereto.

          9.2.2 Original Property Information Documents. Seller will deliver to Purchaser
originals within Seller’s possession of all items comprising the Property Information referenced in
Article 4, including all electronic/computer programs and disks, if any.

          9.2.3 Possession. Seller will deliver possession of the Property, subject to the
Leases.

          9.2.4 Keys. Seller will deliver all keys and electronic access codes in the
possession or subject to the control of Seller, including, without limitation, master keys as well
as combinations, card keys and cards for the security systems, if any.

          9.2.5 Costs. Seller will pay all costs allocated to Seller pursuant to Section 9.5 of
this Agreement.

          9.2.6 FIRPTA Certificate and Withholding Escrow Agreement. Seller will deliver to
Purchaser the FIRPTA Certificate, duly executed by Seller, together with the

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Withholding Escrow
Agreement, duly executed by Seller, all as more particularly described in Section 7.6 hereof.

     9.3 Purchaser’s Obligations at the Closing. At the Closing, Purchaser will do, or cause to be
done, the following:

          9.3.1 Closing Documents. At Closing, Purchaser shall execute, acknowledge (if
necessary) and deliver originals of the following documents:

     9.3.1.1 Bill of Sale in the form of Exhibit G hereto;

     9.3.1.2 Assignment and Assumption Agreement in the form and substance of Exhibit
H hereto;

     9.3.1.3 Settlement statement showing all of the payments, adjustments and prorations
provided for in Section 9.5 and otherwise agreed upon by Seller and Purchaser;

     9.3.1.4 Such transfer tax forms as may be required as a condition to the recordation of
the Special Warranty Deed;

     9.3.1.5 Such evidence as may be reasonably required by the Title Company with respect
to the authority of the person(s) executing the documents required to be executed by
Purchaser on behalf of Purchaser;

     9.3.1.6 The Loan Assumption Agreement and such other documents as may be required in
connection with the assumption of, and the release of Seller after Closing under, the
Metropolitan Loan Documents, as described in Section 2.1.2;

     9.3.1.7 The Withholding Escrow Agreement; and

     9.3.1.8 The Post Closing Escrow Agreement.

          9.3.2 Payment of Consideration. Purchaser will pay to Seller the Purchase Price in
accordance with Article 2 of this Agreement, as adjusted in accordance with the provisions of this
Agreement. At Closing, Purchaser shall pay to the Escrow Agent for disbursement to Seller a sum
equal to the remaining portion of the Purchase Price (subject to the credits, prorations and
adjustments provided hereby) via wire transfer of immediately available funds from the Escrow Agent
to an account designated by Seller in a written notice to Purchaser delivered at least two days
prior to the Closing Date, such notice to contain all information necessary for the Escrow Agent to
effectuate such transfer. The net closing proceeds shall be wire transferred to such account or
accounts as Seller may designate, and actually received in such account or accounts, no later than
1:00 p.m. (local New York, NY time) on the Closing Date (the “Wiring Deadline”), with time being
strictly of the essence thereto (and in the event the net closing proceeds are not actually
received in such account or accounts as of the Wiring Deadline, then the Apportionment Time (as
hereinafter defined) for the prorations required to be performed under Section 9.5 shall

20

 

be revised
to be effective as of 11:59 p.m. (local New York, NY time) on the day prior to the day on which
Seller’s net proceeds are actually received prior to the Wiring Deadline).

          9.3.3 Costs. Purchaser will pay all costs allocated to Purchaser pursuant to Section
9.5 of this Agreement.

     9.4 Intentionally Omitted.

     9.5 Costs and Adjustments at Closing.

          9.5.1 Expenses. Seller shall pay the Virginia Grantor’s Tax payable pursuant to
§58.1-802 of the Code of Virginia. Purchaser shall pay, in connection with the recording of the
Deed, the state recordation tax and any city and county recordation tax payable pursuant to
§58.1-801 and §58.1-814 of the Code of Virginia. Any other taxes and recording fees imposed upon
or payable in connection with the recordation of the deed to the Property, and any closing or
escrow fees of the Escrow Agent shall be paid one-half by Purchaser and one-half by Seller.
Purchaser shall pay all costs and fees for title examination, title insurance and other title
company charges, any updates of the survey of the Property required by Purchaser and all of
Purchaser’s due diligence studies and investigations. Purchaser shall pay all costs in connection
with the assignment and assumption of the Metropolitan Loan, including, without limitation, any
application or assumption fees charged by Metropolitan and any recordation taxes in connection
therewith. Seller and Purchaser shall each pay its respective attorney’s fees.

          9.5.2 Real Estate and Personal Property Taxes. Real estate, personal property and ad
valorem taxes for the year in which the Closing occurs, and any vault charges will be prorated
between Seller and Purchaser as of the Apportionment Time on the basis of actual bills therefor, if
available. If such bills are not available, then such taxes and other charges shall be prorated on
the basis of the most currently available tax bills and, thereafter, promptly re-prorated upon the
availability of actual bills for the period. All rebates or reductions in taxes received subsequent
to Closing, net of costs of obtaining the same, shall be prorated as of the
Apportionment Time, when received. The current installment of all special assessments, if any,
which are a lien against the Property at the time of Closing and which are being or may be paid in
installments shall be prorated as of the Apportionment Time. As used herein, the term
“Apportionment Time” shall mean 11:59 p.m. local New York, NY time on the date immediately prior to
the Closing Date.

          9.5.3 Fixed Rents and Additional Rents.

     a) To the extent that Seller or Purchaser receives Rents under any Lease after
the Closing Date, the same shall be held in trust by Seller or Purchaser, as the
case may be, and shall be applied in accordance with this Section 9.5.3.

     b) Fixed rents paid or payable by tenants under Leases (collectively, “Fixed
Rents”) shall be adjusted and prorated, as of the Apportionment Time, on an as, if
and when collected basis. Any Fixed Rents collected by Purchaser or

21

 

Seller after
the Closing from any tenant who owes Fixed Rents for the period during which Closing
occurs or for periods prior to the Closing shall be applied first, in
payment of Fixed Rents owed by such tenant for the month in which the Closing occurs
[and, if, and only if, the Closing occurs within the first ten days of a calendar
month, the immediately preceding month]; second, in payment of Fixed Rents
owed by such tenant for the period after the month in which the Closing occurs
through the end of the month in which such amount is collected; and third,
after Fixed Rents for all current periods have been paid in full, in payment of
Fixed Rents owed by such tenant for the period prior to the month immediately
preceding the month in which the Closing occurs. Each such amount, less any
out-of-pocket third party costs of collection (including reasonable attorneys’ fees
and expenses) reasonably allocable thereto, shall be adjusted and prorated as
provided above, and the party who receives any such amount shall promptly pay over
to the other party any portion thereof to which it is so entitled. Set forth on
Schedule 9.5.3 is a list of all delinquent rents and other outstanding amounts due
Seller under the Leases as of the date hereof. Any Fixed Rents received by Seller
after the Closing from any tenant who is not delinquent with respect to Fixed Rents
as of the Closing shall belong solely to Purchaser and shall be promptly paid by
Seller to Purchaser.

     c) Purchaser shall bill tenants who owe Fixed Rents and “Operating Expense
Recoveries” (as defined below) (collectively, “Rents”) for the applicable period
during which the Closing occurs and for periods prior to the Closing on a monthly
basis for a period of twelve (12) consecutive months following the Closing,
provided, however, that Purchaser shall have no obligation to commence any action or
proceeding or to make any out-of-pocket expenditure (other than de minimis items
such as postage, telephone charges and similar items) to collect any such past due
Rents. Notwithstanding Purchaser’s good faith compliance with the provisions of the
immediately preceding sentence, if Purchaser does not collect
such past due Rents, Seller shall have the right, upon prior written notice to
Purchaser, to commence proceedings to collect such delinquencies, provided that (i)
Seller shall not be entitled to pursue any Lease termination, dispossess, eviction
or similar proceedings against any such tenant and (ii) the sole remedy which may be
sought by Seller against any such tenant is money damages. Any payment by a tenant
to Purchaser after the Closing Date in an amount less than the full amount of Rents
then due and payable by such tenant shall be applied first to Fixed Rents (in the
order of priority as to time periods as is set forth in Section 9.5.3(b)) to
the extent of all such Fixed Rents that are then due and payable by such tenant, and
thereafter to Operating Expense Recoveries (in accordance with the provisions set
forth in Sections 9.5.3(d) below).

     d) At least three (3) Business Days prior to Closing, Seller will prepare and
submit to Purchaser an estimated reconciliation as of the Apportionment Time of the
amounts of all billings and charges for taxes, insurance charges and other operating
expenses owed by the tenants under the Leases, taking into account all applicable
base years, expense stops, caps or

22

 

similar matters specified under the Leases
(collectively, “Operating Expense Recoveries”), for calendar year 2006. If less
amounts have been collected from tenants for Operating Expense Recoveries for
calendar year 2006 than would have been owed by tenants under the Leases if the
reconciliations under such Leases were completed as of the Apportionment Time based
on the taxes, insurance charges and other operating expenses incurred by Seller for
calendar year 2006 up to the Apportionment Time, Purchaser will pay such difference
to Seller at Closing as an addition to the Purchase Price. If more amounts have
been collected from tenants for Operating Expense Recoveries for calendar year 2006
than would have been owed by tenants under the Leases if the reconciliations under
such Leases were completed as of the Apportionment Time based on the taxes,
insurance charges and other operating expenses incurred by Seller for calendar year
2006 up to the Apportionment Time, Seller will pay to Purchaser at Closing as a
credit against the Purchase Price such excess collected amount.

          9.5.4 Utilities. Water, sewer, electric and other utility charges, other than those
for which tenants under Leases are responsible directly to the provider, shall be prorated as of
the Apportionment Time. If consumption of any of the foregoing is measured by meter, Seller shall,
prior to the Closing Date, endeavor to obtain a reading of each such meter and a final bill as of
the Closing Date. If there is no such meter or if the bill for any of the foregoing will not have
been issued as of the Closing Date, the charges therefor shall be adjusted as of the Apportionment
Time on the basis of the charges of the prior period for which such bills were issued and shall be
further adjusted between the parties when the bills for the correct period are issued. Seller and
Purchaser shall cooperate to cause the transfer of utility accounts from Seller to Purchaser.
Seller shall be entitled to retain any utility security deposits to be refunded. At Closing,
Purchaser shall post substitute utility security deposits to replace those previously paid by
Seller or, if the utility provider will not refund such deposits to Seller, Seller shall be
reimbursed therefor by Purchaser at Closing provided the utility provider recognizes the
security deposit to be thereafter held for the account of Purchaser or the Property.

          9.5.5 Insurance Policies. Premiums on insurance policies will not be adjusted. As of
the Closing Date, Seller will terminate its insurance coverage and Purchaser will effect its own
insurance coverage.

          9.5.6 Leasing Commissions and Tenant Allowances. Seller shall be solely responsible
for the payment of the leasing commissions and tenant allowance obligations that are identified on
Exhibit B-2 and/or Schedules 9.5.6-1 and 9.5.6-2 attached hereto. To the extent
that any such items identified on said Exhibit B-2 or Schedule 9.5.6-1 remain
unpaid as of Closing, Seller shall pay to Purchaser, as a credit against the Purchase Price, the
unpaid balance of all such items, and Purchaser shall then be responsible for the payment of all
such items from and after Closing. Except as provided in the immediately preceding sentence,
Purchaser shall not be entitled to any credit against or reduction of the Purchase Price for any
other leasing commissions or tenant allowances. At Closing, Seller, at Seller’s election, shall
either (i) assign and turn over to Purchaser the escrow account containing the amounts listed in
the “Outstanding Balance” column set forth on Schedule 9.5.6-2 attached hereto for payment
by Purchaser of the leasing commissions and tenant allowance obligations identified on such
Schedule 9.5.6-2, or (ii)

23

 

in lieu of the assignment contemplated by clause (i) of this
sentence, grant Purchaser a credit against the Purchase Price equal to the amounts listed in the
“Outstanding Balance” column set forth on Schedule 9.5.6-2.

          9.5.7 Security Deposits. Seller shall pay to Purchaser, as a credit against the
Purchase Price, the amount of any security deposits actually received by Seller pursuant to the
Leases and not yet refunded to tenants or applied against tenant defaults as permitted pursuant to
the Leases; provided, however, with respect to any security deposits which are other than cash,
Seller shall deliver to Purchaser at the Closing the original documentation related thereto and if
held in the form of a letter of credit, Seller shall deliver the original of such letter of credit
and Seller shall cooperate with Purchaser to cause such letter of credit to be reissued in
Purchaser’s name or transferred to Purchaser on the Closing Date. Further, Seller agrees to
transfer to Purchaser all of Seller’s right, title and interest in and to the escrow account
established pursuant to that certain Escrow Agreement by and between Boston Properties Limited
Partnership, as Landlord, and Leclair Ryan, a Professional Corporation, as Tenant, and Lawyers
Title Insurance Corporation as Escrow Agent, dated September 20, 2004. Purchaser agrees to
indemnify, hold harmless and defend Seller from and against any and all obligations, liabilities,
costs and claims (including reasonable attorneys’ fees) suffered or incurred by Seller on account
of the misapplication or misappropriation on or after Closing of any security deposits so credited
or transferred.

          9.5.8 Other Income and Expenses. All other income and ordinary operating expenses for
or pertaining to the Property, including, but not limited to, public utility charges, maintenance,
service charges, and license fees, will be prorated as of the Apportionment Time.

          9.5.9 Preliminary Closing Statement. The preliminary estimated Closing prorations
contemplated by this Section 9.5 shall be prepared by Seller and submitted to Purchaser for review
and approval at least three (3) Business Days prior to the Closing Date. Purchaser and its
representatives shall be afforded reasonable access to Seller’s books and records with respect to
back-up evidence and Seller’s work papers directly pertaining to such preliminary prorations to
confirm the accuracy thereof. Such prorations, once agreed upon by Purchaser and Seller, shall be
delivered to the Escrow Agent for purposes of making the preliminary proration adjustments at
Closing, subject to the final post-Closing adjustments provided for below. The preliminary
proration shall be paid at Closing by Purchaser to Seller (if the preliminary prorations result in
a net credit to Seller) or by Seller to Purchaser (if the preliminary prorations result in a net
credit to Purchaser) by increasing or reducing the cash to be delivered by Purchaser in payment of
the remaining portion of the Purchase Price at the Closing.

          9.5.10 Post-Closing Adjustment. All adjustments for items to be prorated pursuant to
Section 9.5 shall be done at Closing if known, and if not known, shall be completed within one
hundred eighty (180) days after the Closing Date.

          9.5.11 Survival. The provisions of this Section 9.5 shall survive Closing.

ARTICLE 10 DAMAGE AND CONDEMNATION

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     10.1 Damage. If, prior to the Closing, all or any portion of the Property is damaged by fire
or any other cause whatsoever, Seller shall promptly give Purchaser written notice of such damage.

          10.1.1 Minor Damage. If (a) the cost for repairing such damage is less than Five
Million Dollars ($5,000,000) (as determined by an architect or contractor selected by Seller and
reasonably acceptable to Purchaser), (b) no Named Required Tenant shall exercise its right to
terminate its respective Lease in connection with any such damage, and (c) Purchaser receives
reasonably satisfactory evidence that the insurer under Seller’s existing and in force insurance
policies does not contest that the damage in question is covered by the applicable insurance
policy(ies) and has agreed to the estimate of the cost of repairing such damage as determined
pursuant to clause (a) above (any such damage satisfying the requirements of clauses (a), (b) and
(c), a “Minor Damage”), then Purchaser shall have the right at Closing to receive as a
credit against the Purchase Price the amount of the deductible(s) of such applicable insurance
policy (policies), plus all insurance proceeds (including all proceeds of rent loss or business
interruption insurance to the extent attributable to periods on and after the Closing) received by
Seller as a result of such loss, and an assignment of Seller’s rights to such insurance proceeds,
and this Agreement shall continue in full force and effect with no other reduction in the Purchase
Price, and Seller shall have no further liability or obligation to repair such damage or to replace
the Property.

          10.1.2 Major Damage. If the damage does not constitute a Minor Damage, then Purchaser
shall have the option, exercisable by written notice delivered to Seller within twenty (20) days
(the “20 Day Period”) after Seller’s notice of damage to Purchaser (which notice shall
be accompanied by an estimate of the cost to repair such damage, as determined by an architect
or contractor selected by Seller and reasonably acceptable to Purchaser), either (i) to receive the
amount of the deductible(s) of such applicable insurance policy (policies) plus all insurance
proceeds (including all proceeds of rent loss or business interruption insurance to the extent
attributable to periods on and after the Closing) received by Seller as a result of such loss, and
an assignment of Seller’s rights to such insurance proceeds, and this Agreement shall continue in
full force and effect with no reduction in the Purchase Price, and Seller shall have no further
liability or obligation to repair such damage or to replace the Property; or (ii) to terminate this
Agreement. If Purchaser elects to terminate this Agreement, Purchaser shall give notice to Seller
thereof within the 20 Day Period, the Deposit shall be returned to Purchaser, and thereafter
neither party will have any further rights or obligations hereunder, except for any obligations
that expressly survive termination. If Purchaser fails to notify Seller within the 20 Day Period
of Purchaser’s intention to terminate this Agreement, then Purchaser shall be deemed to have
elected option (ii).

     10.2 Condemnation and Eminent Domain. In the event that any condemnation proceedings are
instituted, or notice of intent to condemn is given, with respect to all or any portion of the
Property, Seller shall promptly notify Purchaser thereof, in which event if (a) the value of the
portion of the Property so condemned is less than one (1%) percent of the Purchase Price (as
mutually agreed between Purchaser and Seller, and if Seller and Purchaser cannot agree on the value
thereof, then they shall jointly retain an appraiser to determine such value), (b) no Named
Required Tenant shall exercise its right to terminate its respective Lease in connection

25

 

with any such condemnation, and (c) no material portion of any net rentable area of the
Property or any material portion of the parking is taken and the existing access to the Property is
not materially and adversely affected or alternative access to the Property is not provided (any
such condemnation satisfying the requirements of clauses (a), (b) and (c), a “Minor
Condemnation”), then Purchaser shall consummate the purchase of the Property without reduction
of the Purchase Price, and the right to collect any condemnation award or compensation for such
condemnation shall be assigned by Seller to Purchaser at Closing. In the event that any
condemnation proceedings are instituted, or notice of intent to condemn is given, with respect to
all or any portion of the Property, and such condemnation does not qualify as a Minor Condemnation,
then Purchaser shall have the option, exercisable by written notice delivered to Seller within
twenty (20) days after Seller’s notice of the condemnation to Purchaser (which notice shall be
accompanied by an estimate of the value, provided by a jointly retained appraiser, of the portion
of the Property to be taken), either (i) to consummate the purchase of the Property without
reduction of the Purchase Price, and the right to collect any condemnation award and compensation
for such condemnation shall be assigned by Seller to Purchaser at Closing; or (ii) to terminate
this Agreement. If Purchaser elects to terminate this Agreement, Purchaser shall give notice to
Seller thereof, the Deposit shall be returned to Purchaser, and thereafter neither party will have
any further rights or obligations hereunder, except for any obligations that expressly survive
termination. If Purchaser fails to notify Seller within such twenty (20)-day period of Purchaser’s
intention to terminate this Agreement, then Purchaser shall be deemed to have elected option (ii).

ARTICLE 11 REMEDIES AND ADDITIONAL COVENANTS

     11.1 Seller Default.

          11.1.1 If Seller breaches its obligation to consummate the Closing hereunder, then Purchaser’s
sole and exclusive remedy shall be either to (i) terminate this Agreement by giving written notice
thereof to Seller prior to or at the Closing, in which event the Deposit shall be returned to
Purchaser, and after the return to Purchaser of the Deposit, neither Seller nor Purchaser will have
any further rights or obligations under this Agreement, except for any obligations that expressly
survive termination, or (ii) specifically enforce this Agreement (but, except as expressly provided
below, no other action, for damages or otherwise, shall be permitted); provided that any action by
Purchaser for specific performance must be commenced, if at all, within forty-five (45) days of
Seller’s breach, the failure of which shall constitute a waiver by Purchaser of such right and
remedy; and provided further that, notwithstanding anything in this Agreement to the contrary, in
the event that such default is an intentional, willful breach of this Agreement by Seller then
Seller shall also be obligated to reimburse Purchaser for the actual third-party out-of-pocket
costs and expenses incurred by Purchaser in connection with its negotiation of this Agreement, in
connection with its assumption of the Metropolitan Loan, including any application or other fees or
expenses paid or reimbursed to Metropolitan, and in connection with Purchaser’s due diligence
review of the Property, in an aggregate amount up to, but not to exceed, $250,000.00 (which
reimbursement obligation shall survive any termination of this Agreement). For purposes of this
Agreement, an action shall be deemed to have been “commenced” if a complaint has been filed in a
court of competent jurisdiction and the defendant has been served within such time period. If
Purchaser shall not have commenced an

26

 

action for specific performance within the aforementioned time period or so notified Seller of
its election to terminate this Agreement, Purchaser’s sole and exclusive remedy shall be to
terminate this Agreement in accordance with clause (i) above, and this Agreement shall
automatically terminate and be of no further force or effect (except for any obligations that
expressly survive termination) on the fiftieth (50th) day after the scheduled Closing
Date. If there is a failure in any material respect of any condition precedent to Closing
hereunder, as set forth in Section 8.1 hereof (except as otherwise specifically provided to the
contrary in this Agreement), and such failure is not remedied within the time periods specified in
Section 8.1, then (except as otherwise specifically provided to the contrary in this Agreement)
Purchaser’s sole and exclusive remedy shall be to terminate this Agreement by giving written notice
thereof to Seller prior to or at the Closing, in which event the Deposit shall be returned to
Purchaser, and, after the return to Purchaser of the Deposit, neither Seller nor Purchaser will
have any further rights or obligations under this Agreement, except for any obligations that
expressly survive termination.

          11.1.2 In the event that Purchaser discovers after Closing that Seller breached any of its
representations or warranties (or Closing occurs under Section 8.4 hereof notwithstanding a
breach), including, without limitation, any representations and warranties in any Seller Estoppel
Statement, Purchaser’s sole and exclusive remedy shall be the right to pursue a claim against
Seller for Purchaser’s actual monetary damages resulting from such breach, which may in no event
exceed the aggregate sum of Three Million Dollars ($3,000,000); provided that, in no event shall
Seller have any liability to Purchaser unless an action is commenced within one hundred eighty
(180) days following the Closing, TIME BEING OF THE ESSENCE. Notwithstanding the foregoing,
Purchaser hereby expressly waives, relinquishes and releases any right or remedy available to
Purchaser at law, in equity or under this Agreement to make a claim against Seller for damages that
Purchaser may incur, or to rescind this Agreement and the transactions contemplated hereby, as the
result of any of Seller’s representations or warranties being untrue, inaccurate or incorrect if
(1) Purchaser knew or is deemed to have known (as defined below) that such representation or
warranty was untrue, inaccurate or incorrect at the time of the Closing and Purchaser nevertheless
closes title hereunder except pursuant to Section 8.4 hereof, or (2) Purchaser’s damages as a
result of such representations or warranties being untrue, inaccurate or incorrect are less than
One Hundred Fifty Thousand Dollars ($150,000.00), in the aggregate. Purchaser shall be “deemed to
have known” that a representation or warranty was untrue, inaccurate or incorrect at the time of
the Closing if the Property Information furnished or made available to Purchaser by or on behalf of
Seller contains information which is inconsistent with such representation or warranty. Seller’s
representations and warranties shall survive the Closing for a period of one hundred eighty (180)
days following the Closing.

          11.1.3 In no event whatsoever shall Purchaser be entitled to specific performance or any
damages, rights or remedies against Seller as a result of any default of Seller hereunder, other
than as specifically set forth in this Section 11.1.

     11.2 Purchaser Default. The parties acknowledge and agree that Seller should be entitled to
compensation for any detriment suffered if Purchaser defaults in its obligation to consummate the
purchase of the Property on the Closing Date for any reason other than a default by Seller or the
failure of any condition to Closing expressly set forth herein, but agree that it

27

 

would be extremely difficult to ascertain the extent of the actual detriment Seller would
suffer as a result of such breach or default by Purchaser. Consequently, if Purchaser defaults in
its obligation to consummate the purchase of the Property on the Closing Date and Seller is not
then in default hereunder and all conditions to Closing of Purchaser set forth in Section 8.1
hereof have been satisfied, then Seller, as its sole and exclusive remedy, shall be entitled to
terminate this Agreement by giving written notice thereof to Purchaser at the Closing, in which
event the Deposit shall be paid to Seller as fixed, agreed and liquidated damages, and, after the
payment of the Deposit to Seller, neither Seller nor Purchaser will have any further rights or
obligations under this Agreement, except for any obligations that expressly survive termination.
In no event whatsoever shall Seller be entitled to any damages, rights or remedies against
Purchaser as a result of any default or breach of any representation or warranty of Purchaser
hereunder, other than retaining the Deposit as specifically set forth in this Section 11.2. The
provisions of this Section 11.2 shall not in any manner limit or otherwise condition any of the
representations or warranties of Purchaser set forth in Section 6.2.3 hereof, and Purchaser’s
representations and warranties set forth in such Section 6.2.3 shall survive the Closing.

     11.3 Delivery of Materials. Notwithstanding anything contained in this Agreement to the
contrary, if this Agreement is terminated for any reason whatsoever, then Purchaser shall promptly
deliver to Seller, without any warranty, representation or recourse whatsoever, all Property
Information provided to Purchaser by Seller, including copies thereof in any form whatsoever,
including electronic form, along with copies of any and all tests and studies of the Property
performed by or on behalf of Purchaser pursuant to Article 5; provided, however, if such
termination is the result of Seller’s default hereunder, Purchaser shall have no obligation to
deliver any such tests and studies performed pursuant to Article 5 unless Seller pays (or
reimburses) the cost thereof. The obligations of Purchaser under this Section 11.3 shall survive
any termination of this Agreement.

ARTICLE 12 BROKERAGE COMMISSION

     12.1 Brokers. Seller represents and warrants to Purchaser that Seller has not contacted or
entered into any agreement with any real estate broker, agent, finder, or any party in connection
with this transaction, except for Eastdil Secured, LLC (“Seller’s Advisor”) and that Seller has not
taken any action which would result in any real estate broker’s or finder’s fees or commissions
being due and payable to any party other than Seller’s Advisor with respect to the transaction
contemplated hereby. Seller shall pay all real estate broker’s or finder’s fees or commissions due
and payable to Seller’s Advisor, and Purchaser shall have no obligation or liability with respect
thereto. Purchaser hereby represents and warrants to Seller that Purchaser has not contracted or
entered into any agreement with any real estate broker, agent, finder, or any party in connection
with this transaction, and that Purchaser has not taken any action which would result in any real
estate broker’s or finder’s fees or commissions being due or payable to any party with respect to
the transaction contemplated hereby.

     12.2 Indemnity. Each party hereby indemnifies and agrees to hold the other party harmless
from any loss, liability, damage, cost, or expense (including, without limitation, reasonable
attorneys’ fees) paid or incurred by the other party by reason of a breach of the representation,
warranty and covenants made by such party under this Article 12.

28

 

Notwithstanding anything to the contrary contained in this Agreement, the indemnities set
forth in this Section 12.2 shall survive the Closing.

ARTICLE 13 NOTICES

     13.1 Written Notice. All notices, demands and requests which may be given or which are
required to be given by either party to the other party under this Agreement must be in writing.

     13.2 Method of Transmittal. All notices, demands, requests or other communications required
or permitted to be given hereunder must be sent (i) by United States certified mail, postage fully
prepaid, return receipt requested, (ii) by hand delivery, (iii) by Federal Express or a similar
nationally recognized overnight courier service, or (iv) by facsimile with both telephonic
confirmation of successful receipt and a confirmation copy delivered by overnight courier service.
All such notices, demands, requests or other communications (other than those delivered by
facsimile) shall be deemed to have been given for all purposes of this Agreement upon the date of
receipt or refusal, except that whenever under this Agreement a notice is either received on a day
which is not a Business Day or is required to be delivered on or before a specific day which is not
a Business Day, the day of receipt or required delivery shall automatically be extended to the next
Business Day. All such notices, demands, requests or other communications delivered by facsimile
shall be deemed to have been given for all purposes of this Agreement on the date of transmission,
provided such transmission occurs on a Business Day and the sender receives electronic confirmation
of successful transmission and thereafter delivers a confirmation copy of such transmission by
overnight courier service.

     13.3 Addresses. The addresses for proper notice under this Agreement are as follows:

	 	 	 	 	 
	 

	 	As to Seller:
	 	Commerz Grundlbesitz-Invetmentgesellschaft mbH,
	 

	 	 	 	c/o HRO Asset Management, LLC
	 

	 	 	 	100 W. 33rd Street, Suite 1002
	 

	 	 	 	New York, New York 10001
	 

	 	 	 	Attn: Larry Wyman
	 

	 	 	 	Phone: (212) 225-9400
	 

	 	 	 	Facsimile: (212) 225-9401
	 
	 	 	 	 
	 

	 	With a copy to:
	 	DLA Piper US LLP
	 

	 	 	 	1251 Avenue of the Americas
	 

	 	 	 	New York, New York 10020
	 

	 	 	 	Attn: Martin D. Polevoy, Esq.
	 

	 	 	 	Phone: (212) 335-4610
	 

	 	 	 	Facsimile: (212) 884-8600
	 
	 	 	 	 
	 

	 	As to Purchaser:
	 	Hines Riverfront Plaza LP
	 

	 	 	 	c/o Hines Interests Limited Partnership
	 

	 	 	 	555 13th Street, NW, Suite 1020 East
	 

	 	 	 	Washington, DC 20004

29

 

	 	 	 	 	 
	 

	 	 	 	Attention: John B. Harned
	 

	 	 	 	Phone: (202) 434-0275

	 

	 	 	 	Facsimile: (202) 347-2802
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Hines Riverfront Plaza LP
	 

	 	 	 	c/o Hines Interests Limited Partnership
	 

	 	 	 	2800 Post Oak Boulevard, Suite 5000
	 

	 	 	 	Houston, Texas 77056-6118
	 

	 	 	 	Attention: Charles N. Hazen
	 

	 	 	 	Phone: (713) 966-7602
	 

	 	 	 	Facsimile: (713) 966-7851
	 
	 	 	 	 
	 

	 	And with a copy to:
	 	Hines Riverfront Plaza LP
	 

	 	 	 	c/o Hines Interests Limited Partnership
	 

	 	 	 	2800 Post Oak Boulevard, Suite 5000
	 

	 	 	 	Houston, Texas 77056-6118
	 

	 	 	 	Attention: Jason Maxwell, Esq.
	 

	 	 	 	Phone: (713) 966-7638
	 

	 	 	 	Facsimile: (713) 966-2705
	 
	 	 	 	 
	 

	 	And with a copy to:
	 	Baker Botts L.L.P.
	 

	 	 	 	2001 Ross Avenue, Suite 600
	 

	 	 	 	Dallas, TX 75201-2980
	 

	 	 	 	Attention: Joel M. Overton, Jr., Esq.
	 

	 	 	 	Phone: (214) 953-6938
	 

	 	 	 	Facsimile: (214) 661-4938
	 
	 	 	 	 
	 

	 	As to Escrow Agent:
	 	Commonwealth Land Title Insurance Company
	 

	 	 	 	1015 15th Street N.W., Suite 300
	 

	 	 	 	Washington, D.C. 20005
	 

	 	 	 	Attention: David P. Nelson
	 

	 	 	 	Phone: (202) 312-5109
	 

	 	 	 	Facsimile: (202) 737-4108

     Either party may from time to time by written notice to the other party designate a different
address for notices within the United States of America. Notices given by the attorneys named in
this Section 13.3 shall be deemed equivalent to notices given by Seller or Purchaser (as the case
may be).

ARTICLE 14 ASSIGNMENT

     Except for an assignment by Seller as permitted pursuant to Article 16 hereof, neither party
shall have the right to assign this Agreement without the prior written consent of the other, which
consent may be granted or withheld in the sole and absolute discretion of the party whose consent
has been requested; provided that, Purchaser shall have the right to assign its interest in

30

 

this Agreement to any entity controlled by, controlling, or under common control with,
Purchaser so long as Seller is provided evidence satisfactory to Seller that the proposed assignee
has the financial capability and other powers and authority necessary to perform the obligations of
Purchaser hereunder and the original Purchaser remains fully liable for all obligations of
Purchaser hereunder and under the documents required to be delivered by Purchaser at Closing and
such assignment occurs no less than seven (7) days prior to the Closing Date and notice of such
assignment is given by Purchaser to Seller within one (1) day of such assignment.

ARTICLE 15 MISCELLANEOUS

     15.1 Entire Agreement. This Agreement embodies the entire agreement between the parties and
cannot be varied except by the written agreement of the parties and supersede all prior agreements
and undertakings.

     15.2 Modifications. This Agreement may not be modified except by the written agreement of the
parties.

     15.3 Gender and Number. Words of any gender used in this Agreement will be construed to
include any other gender and words in the singular number will be construed to include the plural,
and vice versa, unless the context requires otherwise.

     15.4 Captions. The captions used in connection with the Articles, Sections and Subsections of
this Agreement are for convenience only and will not be deemed to expand or limit the meaning of
the language of this Agreement.

     15.5 Successors and Assigns. This Agreement will be binding upon and inure to the benefit of
the parties hereto and their respective legal representatives, successors and assigns.

     15.6 Controlling Law. This Agreement will be construed under, governed by and enforced in
accordance with the laws of the Commonwealth of Virginia (without reference to conflicts of laws
principles).

     15.7 Exhibits. All exhibits, attachments, annexed instruments and addenda referred to herein
will be considered a part hereof for all purposes with the same force and effect as if set forth
verbatim herein.

     15.8 No Rule of Construction. Seller and Purchaser have each been represented by counsel in
the negotiations and preparation of this Agreement; therefore, this Agreement will be deemed to be
drafted by both Seller and Purchaser, and no rule of construction will be invoked respecting the
authorship of this Agreement.

     15.9 Severability. In the event that any one or more of the provisions contained in this
Agreement (except the provisions relating to Seller’s obligations to convey the Property and
Purchaser’s obligation to pay the Purchase Price, the invalidity of either of which shall cause
this Agreement to be null and void) are held to be invalid, illegal, or unenforceable in any
respect, such invalidity, illegality, or unenforceability will not affect any other provisions
hereof, and this Agreement shall be construed as if such invalid, illegal, or unenforceable
provision had not been

31

 

contained herein, provided, however, that the parties hereto shall endeavor in good faith to
rewrite the affected provision to make it (i) valid, and (ii) consistent with the intent of the
original provision.

     15.10 Time of Essence. Time is important to both Seller and Purchaser in the performance of
this Agreement, and Purchaser has agreed that TIME IS OF THE ESSENCE as to Purchaser’s obligations
with respect to any date set out in this Agreement.

     15.11 Business Days. “Business Day” means any day on which business is generally transacted
by banks in the State of New York. If the final date of any period which is set out in any
paragraph of this Agreement falls upon a day which is not a Business Day, then, and in such event,
the time of such period will be extended to the next Business Day.

     15.12 No Memorandum. Purchaser and Seller agree not to record this Agreement or any
memorandum hereof.

     15.13 Press Releases. Prior to Closing, except as otherwise expressly permitted by Section
15.17, any release to the public of information with respect to the matters set forth in this
Agreement will be made only in the form approved by Purchaser and Seller and their respective
counsel.

     15.14 Attorneys’ Fees and Costs. In the event either party is required to resort to
litigation to enforce its rights under this Agreement, the prevailing party in such litigation will
be entitled to collect from the other party all costs, expenses and reasonable attorneys’ fees
incurred in connection with such action.

     15.15 Counterparts and Expiration of Offer. This Agreement may be executed in multiple
counterparts (which counterparts may be executed by facsimile or electronic signature) which shall
together constitute a single document. However, this Agreement shall not be effective unless and
until all counterpart signatures have been obtained. An unsigned draft of this Agreement shall not
be considered an offer by either party.

     15.16 Waiver of Jury Trial. EACH PARTY HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING,
CLAIM OR COUNTERCLAIM BROUGHT BY EITHER PARTY IN CONNECTION WITH ANY MATTER ARISING OUT OF OR IN
ANY WAY CONNECTED WITH THIS AGREEMENT, THE RELATIONSHIP OF SELLER AND PURCHASER HEREUNDER,
PURCHASER’S OWNERSHIP OR USE OF THE PROPERTY, AND/OR ANY CLAIMS OF INJURY OR DAMAGE. The
jurisdiction and venue for any disputes among the parties hereto arising under this Agreement shall
exclusively be the United States District Court for the Northern District of Virginia, and the
appropriate appeals courts therefrom. The language to be used in the legal proceedings shall be
English and the official version of this Agreement shall be in English. THE PARTIES CONSENT TO AND
AGREE TO SUBMIT TO THE JURISDICTION OF SUCH COURTS, AND EXPRESSLY HEREBY WAIVE THE RIGHT TO OBJECT
TO THIS MUTUALLY AGREED CHOICE OF VENUE AS INCONVENIENT OR OTHERWISE. EACH OF THE PARTIES HERETO
AGREE THAT A JUDGMENT, AFTER EXHAUSTION OF ALL AVAILABLE APPEALS, IN ANY SUCH

32

 

ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND BINDING UPON THE PARTIES HERETO, AND MAY BE
ENFORCED IN ANY OTHER JURISDICTION BY A SUIT UPON SUCH JUDGMENT, A CERTIFIED COPY OF WHICH SHALL BE
CONCLUSIVE EVIDENCE OF THE JUDGMENT. SELLER HEREBY IRREVOCABLY DESIGNATES, APPOINT AND EMPOWER CT
CORPORATION SYSTEMS, 4701 COX ROAD, GLENN ALLEN, VIRGINIA 23060, SO LONG AS THIS AGREEMENT IS IN
EFFECT, AS ITS DESIGNEE, APPOINTEE AND AGENT WITH RESPECT TO ANY ACTION IN RESPECT HEREOF, SERVICE
OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS WHICH MAY BE SERVED IN ANY SUCH ACTION
OR PROCEEDING AND AGREES THAT THE FAILURE OF ANY SUCH AGENT TO GIVE ANY NOTICE OF ANY SERVICE OF
PROCESS TO SELLER SHALL NOT IMPAIR OR AFFECT THE VALIDITY OF SUCH SERVICE OR OF ANY JUDGMENT BASED
THEREON. Nothing contained in this Section 15.16 shall prevent any party hereto from seeking
injunctive relief for any breach of this Agreement in any other court that has jurisdiction over
the matter that is reasonably necessary to obtain such relief.

     15.17 Confidentiality.

          15.17.1 Except as provided otherwise in this Section 15.17, Purchaser and Seller, for the
benefit of each other, hereby agree that neither of them will release or cause or permit to be
released to the public any press notices, publicity (oral or written) or advertising promotion
relating to, or otherwise publicly announce or disclose or cause or permit to be publicly announced
or disclosed, in any manner whatsoever, the terms, conditions or substance of this Agreement or the
transactions contemplated herein, without first obtaining the consent of the other party hereto,
which shall not be unreasonably withheld. Notwithstanding the foregoing, each party consents to
any disclosure of this Agreement which the other party reasonably believes is required by law or
which is recommended in good faith by counsel to such other party. Without limiting the generality
of the foregoing, Purchaser acknowledges that Seller is governed under German law by the German
Investment Law (InvG) and any required disclosures thereunder shall not be deemed a breach by
Seller of this Section 15.17. Further, without limiting the generality of the foregoing, Seller
acknowledges that Purchaser (or its affiliates or any entity advised by Purchaser’s affiliates)
shall be permitted to disclose the transaction contemplated by this Agreement and/or the terms of
this Agreement and any such information relating to the Property in any document as may be
necessary to comply with any applicable federal or state securities laws, rules, or regulations or
to comply with the requirements of the Securities and Exchange Commission, the New York Stock
Exchange or any similar agency or body, and any such disclosures shall not be deemed a breach by
Purchaser of this Section 15.17.

          15.17.2 It is understood that the foregoing shall not preclude any party from discussing the
substance or any relevant details of the transactions contemplated in this Agreement on a
confidential basis with such party’s spouse or any of its attorneys, accountants, auditors,
professional consultants, financial advisors, rating agencies, or potential lenders and investors,
title companies, surveyors, third party contractors conducting due diligence investigations,
tenants in connection with requesting the Lease Certificates, or governmental authorities in
connection with requesting certificates of zoning compliance, as the case may be, or prevent any
party hereto, or its affiliates or advisors, from complying with applicable laws,

33

 

including, without limitation, governmental regulatory, disclosure, tax and reporting
requirements.

          15.17.3 Purchaser shall indemnify and hold Seller harmless, and Seller shall indemnify and
hold Purchaser and the affiliates of Purchaser harmless, from and against any and all actual direct
claims, demands, causes of action, losses, damages, liabilities, costs and expenses (including,
without limitation, reasonable attorneys’ fees and disbursements) suffered or incurred by the other
party and proximately caused by a breach by Purchaser or Seller, as the case may be, of the
provisions of Section 15.17; but this Section 15.17.3 will not entitle either Purchaser, Seller,
Purchaser’s affiliates or Seller’s affiliates, or any other person or entity, to recover
consequential damages.

          15.17.4 In addition to any other remedies available to Seller and Purchaser, Seller and
Purchaser shall each have the right to seek equitable relief, including, without limitation,
injunctive relief or specific performance, against the other party or its representatives in order
to enforce the provisions of Section 15.17.

          15.17.5 Notwithstanding any other provision of this Agreement, the provisions of Section 15.17
shall survive the termination of this Agreement for one (1) year following the Effective Date.

     15.18 Cooperation with Purchaser’s Auditors and SEC Filing Requirements.

          15.18.1 Prior to and after the Closing, Seller shall provide to Purchaser (at Purchaser’s
expense) copies of, or shall provide Purchaser access to, such factual information as may be
reasonably requested by Purchaser, and in the possession or control of Seller, or its property
manager or accountants, to enable Purchaser (or Hines Interests Limited Partnership [“HILP”] or an
affiliate of HILP) and/or Purchaser’s auditor (Deloitte & Touche LLP or any successor auditor
selected by Purchaser) to conduct an audit of the income statements of the Property for calendar
year 2005 and calendar year 2006 year to date. Purchaser shall be responsible for all
out-of-pocket costs associated with this audit. Seller shall cooperate (at no cost to Seller) with
Purchaser (or HILP or an affiliate of HILP) and Purchaser’s auditor in the conduct of such audit.
In addition, to the extent the same are in the possession or control of Seller, or its property
manager or accountants, Seller agrees to provide to Purchaser (or HILP or an affiliate of HILP)
and/or Purchaser’s auditor such additional historical financial statements for the Property,
including income and balance sheet data for the Property for up to three (3) years prior to the
year in which the Closing occurs. Without limiting the foregoing, (i) Purchaser (or HILP or an
affiliate of HILP) or its designated independent or other auditor may audit Seller’s operating
statements of the Property, at Purchaser’s expense, and Seller shall provide such documentation as
Purchaser or its auditor may reasonably request in order to complete such audit, and (ii) Seller
shall furnish to Purchaser (or HILP or an affiliate of HILP) such financial and other information
as may be reasonably required by Purchaser (or HILP or an affiliate of HILP) to make any required
filings with the Securities and Exchange Commission or other governmental authority; provided,
however, that the foregoing obligations of Seller shall be limited to providing such information or
documentation as may be in the possession of, or reasonably obtainable by, Seller, its property
manager or accountants, at no material cost to

34

 

Seller, and in the format that Seller (or its property manager or accountants) have maintained
such information.

          15.18.2 Purchaser acknowledges that any such audit and other information provided by Seller
pursuant to Section 15.18.1 shall be subject to the confidentiality provisions set forth in Section
15.17 above.

          15.18.3 The provisions of this Section 15.18 shall survive the Closing.

     15.19 Post-Closing Escrow. Seller and Purchaser hereby agree that Purchaser shall deposit on
the Closing Date a portion of the Purchase Price in an amount equal to Three Million and 00/100
($3,000,000.00) Dollars (which amount may be subject to increase pursuant to Section 8.4.2), with
Escrow Agent pursuant to an escrow agreement in the form attached hereto as Exhibit J (the
“Post-Closing Escrow Agreement”), which sum (as so increased, if applicable) shall hereinafter be
referred to as the “Post Closing Escrow”. The Post Closing Escrow shall be held by Escrow Agent in
a separate interest-bearing account pursuant to the terms of the Post-Closing Escrow Agreement and
all earnings or interest on the Post Closing Escrow shall be paid to Seller upon termination of the
Post Closing Escrow or upon earlier demand by Seller. Disbursements from the Post Closing Escrow
shall be made in accordance with the terms of the Post-Closing Escrow Agreement to reimburse
Purchaser only for claims (i) for breaches of Seller’s representations or warranties pursuant to
Section 11.1.2 hereof or for any damage, loss, cost or expense suffered by Purchaser as a result of
materially adverse matters disclosed in an Unacceptable Lease Certificate for which Seller elects
to deliver a Seller’s Estoppel Statement in lieu thereof pursuant to Section 8.3.2 of this
Agreement, in each case actions for which are commenced within one hundred eighty (180) days
following the Closing, (ii) for any amounts due to Purchaser pursuant to Sections 8.4.2 or 9.5, or
(iii) for any breach by Seller of its representations, warranties or obligations under Article 12.
If any amounts remain in the Post Closing Escrow as of the date which is one hundred eighty (180)
days after the Closing Date, unless and to the extent Purchaser has commenced such an action for
any such breach under clauses (i) or (iii) of this Section 15.19 or submitted a claim for any
disbursement from the Post Closing Escrow under clause (ii) of this Section 15.19 on or before such
date, Seller and Purchaser shall cause such amounts to be promptly disbursed to Seller by the
Escrow Agent. In the event that, as of the date which is one hundred eighty (180) days after the
Closing Date, Purchaser has, in the case of clauses (i) or (iii) of this Section 15.19, commenced
such an action or, in the case of clause (ii) of this Section 15.19, submitted a claim for any
disbursement from the Post Closing Escrow in accordance with the immediately preceding sentence,
and there remain amounts in the Post Closing Escrow which would not be necessary to satisfy such
claims and disbursements, Seller and Purchaser shall cause such remaining amounts to be promptly
disbursed to Seller by the Escrow Agent. The provisions of this Section 15.19 shall survive the
Closing.

35

 

     IN WITNESS WHEREOF, the parties have executed this Purchase and Sale Agreement as of the date
first written above.

	 	 	 	 	 
	 	 	SELLER:
	 
	 	 	 	 
	 	 	COMMERZ GRUNDBESITZ-INVESTMENTGESELLSCHAFT mbH, a limited
liability company under German law, acting as investment
company for the account of the German open-ended real
estate investment fund HAUS-INVEST Global
	 
	 	 	 	 
	 

	 	By:	 	/s/
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	Authorized Signatory
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

	 	 	 	 	 	 	 
	 	 	PURCHASER:
	 
	 	 	 	 	 	 
	 	 	HINES RIVERFRONT PLAZA LP, a Delaware limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	Hines Riverfront Plaza GP LLC, a Delaware limited liability

company, its general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	Authorized Signatory
	 

	 	 	 	 	 	 

36

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