Document:

Exhibit 10.2

 

AGREEMENT FOR SALE OF PARTNERSHIP
INTERESTS

 

THIS AGREEMENT FOR SALE OF PARTNERSHIP INTERESTS is made as of this 22nd day of March, 2005 (this “Agreement”),
by and between WHITEHALL STREET REAL ESTATE LIMITED
PARTNERSHIP IX (“Whitehall”), a Delaware limited partnership, BRIDGE STREET REAL ESTATE FUND 1998, L.P. (“Bridge”), a
Delaware limited partnership, W9/JP-M GEN-PAR, INC.
(“Gen-Par”), a Delaware corporation, STONE STREET W9/JP-M CORP.
(“Stone Street”), a Delaware corporation, STONE STREET REAL ESTATE
FUND 1998, L.P., a Delaware limited partnership (“Stone Street Fund”,
together with Whitehall, Bridge, Gen-Par and Stone Street, sometimes
collectively hereinafter referred to as “Whitehall Sellers”), GARY
M. HOLLOWAY, SR. (“Holloway”), BRUCE F. ROBINSON (“Robinson”), FRANK TROPEA
(“Tropea”), JOSEPH M. COYLE (“J. Coyle”), MICHAEL MAYOCK (“Mayock”), LOUIS
BATTAGLIESE (“Battagliese”), ROBERT DIGIUSEPPE (“DiGiuseppe”),
DENISE HUBLEY (“Hubley”), DAVID FORREST (“Forrest”), MICHAEL
MAHER (“Maher”) and CATHY COYLE (“C.
Coyle”; together with Holloway, Robinson, Tropea, J. Coyle, Mayock,
Battagliese, DiGiuseppe, Hubley, Forrest and Maher, collectively hereinafter
referred to as “GMH Partners”), GHJP,
INC., a Delaware corporation (“GHJP”,
together with GMH Partners, sometimes collectively hereinafter referred to as “GMH
Sellers”), (Whitehall Sellers and GMH Sellers sometimes collectively
hereinafter referred to as, “Seller”) and NITTANY CROSSING
INTERMEDIATE, LLC, a Delaware limited liability company and GMH COMMUNITIES, LP, a Delaware limited partnership
(collectively, “Purchaser”).

 

 

WHEREAS, the
Whitehall Sellers and GMH Sellers are all of the partners of W9/JP-M REAL
ESTATE LIMITED PARTNERSHIP, a Delaware limited partnership (the “Partnership”),
which Partnership was formed pursuant to that certain Amended and Restated
Agreement of Limited Partnership of W9/JP-M Real Estate Limited Partnership
dated March 4, 2004, as amended by that certain Amendment to Amended and
Restated Agreement of Limited Partnership of W9/JP-M Real Estate Limited
Partnership dated of even date herewith, as amended (the “Partnership Agreement”);

 

WHEREAS, the
parties have agreed to enter into a transaction pursuant to which Purchaser
will acquire Seller’s entire partnership interests in the Partnership (the “Partnership
Interests”);

 

WHEREAS, the
parties hereto desire to enter into this Agreement in order to memorialize the
transaction described above.

 

NOW, THEREFORE, in consideration of the mutual promises
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, agree as follows:

 

ARTICLE 1

 

SALE OF THE
PROPERTY

 

1.1                                 Property to be Sold and
Conveyed.  Subject to the terms, conditions and covenants
of this Agreement, each of the GMH Sellers and Whitehall Sellers agrees to
sell, transfer and assign to Purchaser, and Purchaser agrees to purchase from
Seller, as a several but not joint obligation, their respective Partnership
Interests which Seller owns, which Partnership Interests shall be allocated
amongst Purchaser in the manner designated by Purchaser.  The Partnership is the current owner of fee
simple title to that certain 204 unit apartment project, known as Nittany

 

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Crossing Apartments located in
State College, Pennsylvania, being more particularly described in Exhibit ”A”
(the “Property”).

 

ARTICLE 2

 

CONSIDERATION

 

2.1                                 Purchase Price.  Purchaser shall pay to each of the Whitehall
Sellers and GMH Sellers for the sale (in the case of the Whitehall Sellers) and
sale and/or contribution (in the case of the GMH Sellers) of their respective
Partnership Interests to Purchaser for the aggregate price of Nineteen Million One
Hundred Forty-Two Thousand Five Hundred and 00/100 Dollars ($19,142,500.00)
(the “Purchase Price”) which shall be payable to the Whitehall Sellers in cash
and to the GMH Sellers in cash and/or operating units in GMH Communities, LP,
which Purchase Price shall be adjusted and apportioned as provided herein and
allocated amongst the Seller in accordance with their respective percentage
interests in the Partnership as specified in the Partnership Agreement (the “Percentage
Interests”), which Percentage Interests are as set forth on Schedule 2
attached hereto and made a part hereof.

 

2.2                                 Payment of the Purchase
Price.  The Purchase Price shall be paid as follows:

 

(a) A
deposit of TWO HUNDRED THOUSAND DOLLARS ($200,000.00) (the “Deposit”) shall be
paid by Purchaser to Commonwealth Land Title Insurance Company, 1700 Market
Street, Suite 2110, Philadelphia, Pennsylvania 19103, Attention: Celeste
Heuberger, as escrow agent (the “Escrow Agent”), within five (5) business
days after the Effective Date (as defined herein), which at Purchaser’s option
may be by certified or bank cashier’s check or by wire transfer.  For purposes of this Agreement, “Effective
Date” shall mean the date on which Purchaser and all of the Whitehall Sellers
and GMH Sellers have executed this Agreement. The Deposit shall remain
applicable to the Purchase Price and shall become non-refundable to

 

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Purchaser except as may otherwise
be provided in accordance with the terms and provisions hereof. The Deposit
shall be held in escrow until the Closing (defined below), at which time the
Deposit shall be allocated amongst the Whitehall Sellers and GMH Sellers in
accordance with their Percentage Interests, as a credit against the Purchase
Price, or may be sooner released in accordance with the terms hereof. Escrow
Agent shall be authorized, at Purchaser’s option, to invest the Deposit in an interest-bearing
account in the name of Escrow Agent in such commercial bank as it deems
appropriate. All interest or other earnings on the Deposit shall become a part
of the Deposit and be disbursed to the party entitled to the Deposit pursuant
to the terms and provisions hereof, and

 

(b)                                 The balance of the Purchase
Price shall be paid by Purchaser to the Whitehall Sellers, in cash, and GMH
Sellers, in cash and/or operating units, in accordance with their Percentage
Interests by wire transfer funds, or issuance of operating units, at Closing,
to such account or accounts as directed by the Whitehall Sellers and GMH Sellers,
as applicable, in writing.

 

ARTICLE 3

 

CLOSING

 

3.1                                 Closing.  The parties agree that the closing of the
purchase and sale of the Partnership Interests (the “Closing”) shall take place
on or prior to fifteen (15) days following the expiration of the Due Diligence
Period, TIME BEING OF THE ESSENCE, or such sooner date on which the parties may
agree (such date, as the same may be changed or extended, being referred to
herein as the “Closing Date”). The Closing shall take place through an escrow
closing with the Escrow Agent.

 

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3.2                                 Apportionments; Partnership
Allocations.

 

(a)                                  At the Closing, the
following items shall be apportioned as of the Closing Date:

 

(i)                                     Real estate taxes and
assessments, if any, for the current calendar year; provided, however, that if
the amount of such taxes and assessments for such year is not known at the time
of Closing, such apportionment shall be based upon the most current assessment
of the Property and the tax rate for the previous calendar year.  The current installment of any general or
special assessments levied or assessed for work completed prior to the Closing
shall be apportioned between Seller and Purchaser as of the Closing Date;
provided, however, that any prior installments of any general and special
assessments due and payable prior to the Closing Date shall be apportioned to
Seller and future installments of any general and special assessments due and
payable following the Closing Date shall be apportioned to Purchaser;

 

(ii)                                  Fuel, water, sewer use and
other municipal utility charges;

 

(iii)                               All rents collected from tenants under the Leases for
the month in which the Closing occurs and other income shall be prorated as of
the Closing Date in accordance with the terms hereof, and Seller shall retain
all rights to rents allocable to periods prior to the Closing Date. With
respect to such rents for the month in which Closing occurs which are actually
collected by the Partnership prior to Closing, the Partnership shall pay to
Purchaser, by deduction of the amount due on Purchaser’s closing statement, the
amount of any rents actually collected by the Partnership from tenants under
the Leases relative to the period from and after the Closing Date.  Rents received by the Partnership after the
Closing Date shall be applied by the Partnership first to current rents and/or
uncollected rents due for the period after the Closing Date, then to pay
reasonable costs of collection incurred by the Partnership,

 

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then to Seller, to the extent of
any uncollected rents for the period prior to the Closing Date (the “Delinquent
Rents”), then to Purchaser, for future rents due or to become due under the
Leases. The Partnership shall use reasonable efforts after Closing to collect
such Delinquent Rents, but nothing herein shall obligate or require the
Partnership to institute a lawsuit, evict any tenant, exercise any lease
remedies, or otherwise incur any costs or expenses to recover such amounts;

 

(iv)                              Purchaser shall receive a credit to the Purchase Price
equal to the amount of (A) that portion of any prepaid rents applicable to
the time period after the Closing
actually received by the Partnership, (B) security deposits and other
deposits paid by the tenants under any of the Leases not applied by the
Partnership prior to Closing; and (C) all interest unpaid and owing
thereon or required by law to be paid to tenants, if any; and

 

(v)                                 Amounts owing, prepaid or
received by the Partnership prior to Closing on all Contracts.

 

Purchaser, at its sole
option, shall have the exclusive right to file and prosecute an application for
a real estate tax abatement or reduction or any litigation against the
applicable taxing authorities relating to any taxes assessed against the
Property.  The GMH Sellers agree to fully
cooperate with Purchaser, at no cost or expense to the GMH Sellers, with
respect to any such application and/or litigation and further authorize
Purchaser to endorse and cash any tax abatement or reduction check which
Purchaser receives or which is issued to Purchaser and, for such purposes, the
GMH Sellers grant to Purchaser an irrevocable power of attorney coupled with an
interest.  The amount of any abatement or
reduction actually obtained, after adjustment of the legal fees, consultant
fees and related costs incurred in obtaining the abatement or reduction, shall
be apportioned between the parties.

 

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In the
event any apportionments pursuant to this Agreement or, subsequent to Closing,
are found to be erroneous, then either party hereto who is entitled to
additional monies shall invoice the other party for such additional amounts as
may be owing, with any substantiation reasonably requested by the other party,
and such amount shall be paid within twenty (20) days from receipt of the
invoice and verification of the same. This obligation shall survive the Closing
until the date of the Final True-Up (as hereinafter defined).  Notwithstanding the foregoing, if current
real estate taxes and assessments, if any, for the current fiscal tax period
cannot be determined at Closing, then such taxes and assessments shall be
adjusted when the actual amount(s) of such taxes and assessments are known (not
later than the date of the Final True-Up).

 

Except for
liabilities and expenses prorated and/or expressly assumed in this Agreement,
and/or the Closing Documents, the Partnership shall remain obligated for any
and all liabilities and expenses related to the ownership and operation of the
Property accruing prior to the Closing Date in accordance with the terms and
provisions of the Escrow Agreement (as hereinafter defined) and Purchaser shall
be liable for any and all liabilities and expenses related to the ownership and
operation of the Property accruing from and after the Closing Date.

 

(b)                                 All
items of income, gain, loss, deduction and credit for calendar year 2005 in
respect of the Partnership Interests shall be allocated between the Whitehall
Sellers and GMH Sellers, on the one hand, and Purchaser, on the other hand,
using the closing of the books method, notwithstanding anything to the contrary
set forth in the Partnership Agreement, except that the Whitehall Sellers and
GMH Sellers agree to deposit the sum of One Hundred Fifty Thousand Dollars
($150,000.00) of the Purchase Price into escrow with the Title Company (the “Reserve”)
under a mutually satisfactory escrow agreement (the “Escrow Agreement”), which

 

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Reserve shall either be
disbursed to Purchaser, or shall be augmented by Purchaser, in accordance with
the calculation of the Final True-Up which shall take place no later than 180
days after the Closing Date, at which time the balance of the Reserve in the escrow
account shall be disbursed to the Whitehall Sellers and GMH Sellers in
accordance with their Percentage Interests. The provisions of this paragraph
shall survive the execution and delivery of this Agreement and the Assignment
and Assumption (as hereinafter defined). 
This Section shall survive Closing
for a period of 180 days.  Prior to that
date which is 180 days after the Closing, the parties hereto shall conduct a
final accounting of all apportionments and adjustments provided for herein (the
“Final True-Up”).

 

3.3                                 Seller’s Deliveries.  At the Closing, each of the Whitehall Sellers
and GMH Sellers shall deliver, as a several but not joint and several
obligation, the following to Purchaser (each referred to hereinafter as a “Closing
Document”):

 

(a)                                  an agreement of assignment
and assumption of the Partnership Interests in the form attached hereto as Exhibit “B”
(the “Assignment and Assumption”);

 

(b)                                 a FIRPTA Affidavit; and

 

(c)                                  copies of organizational
documents and other evidence reasonably satisfactory to the Escrow Agent of the
capacity and authority of the persons signing, on behalf of each of the
Whitehall Sellers and GMH Sellers, this Agreement and all documents delivered
pursuant hereto and for the closing of this transaction.

 

3.4                                 Purchaser’s Deliveries and
Closing Conditions.  At the Closing, Purchaser shall
deliver to the Whitehall Sellers and GMH Sellers (a) copies of
organizational documents and other evidence reasonably satisfactory to the
Whitehall Sellers and GMH Sellers and the Escrow Agent of the capacity and
authority of the persons signing this Agreement on behalf of Purchaser

 

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and all documents delivered hereto,
(b) the balance of the Purchase Price, as adjusted, and (c) all other
executed documents and instruments reasonably necessary to close this
transaction or otherwise required by this Agreement. Purchaser’s obligations
hereunder are subject to (i) the representations and warranties of each of
the Whitehall Sellers and the GMH Sellers set forth in Section 7.2 hereof
being true and correct as of the Closing Date and (ii) the receipt by
Purchaser, at the Closing, of a bringdown or endorsement to the existing ALTA
Extended Owner’s Policy of Title Insurance (the “Title Policy”) issued by the
Escrow Agent, dated as of the Closing Date. 
Purchaser’s obligations hereunder are also subject to the assignment of
the Partnership Interests, which Partnership Interests shall be assigned by the
Whitehall Sellers and GMH Sellers to Purchaser “as is”; provided, however, that
the Partnership Interests shall be assigned free and clear of any liens,
claims, pledges and encumbrances.  The
Whitehall Sellers and GMH Sellers shall not, as a several and not a joint and several
obligation, encumber the Partnership Interests without Purchaser’s prior
written consent.

 

3.5                                 Closing.  Except to the extent provided herein, each
party shall pay its own costs and attorney’s fees associated with this
transaction. Any transfer, conveyance, documentary and intangible fees and
taxes due in connection with the assignment of the Partnership Interests to
Purchaser shall be split equally by Purchaser and the Partnership.  Purchaser shall pay for the costs of the
title search and the premium for issuance of the owner’s and lender’s Title
Policy and any endorsements thereto. Purchaser shall remain solely responsible
for the payment of all costs and fees associated with any and all updates to
the Existing Survey (as hereinafter defined) and any and all costs and fees
incurred by Purchaser in the performance of its due diligence investigation and
studies of the Property.  The reasonable
escrow fees of the Escrow Agent, if any, shall be paid one-half by the
Partnership and one-half by Purchaser.

 

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ARTICLE 4

 

TITLE AND
CONDITION OF PROPERTY

 

4.1                                 Title.  Purchaser shall have the right to obtain an
update (the “Updated Survey”) to any existing survey (the “Existing Survey”),
at its sole cost and expense.

 

4.2                                 Condition of Property.

 

(a)                                  PURCHASER ACKNOWLEDGES AND
AGREES THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER SELLER,
NOR ANY AGENT OR REPRESENTATIVE OF SELLER HAS MADE, AND SELLER IS NOT LIABLE OR
RESPONSIBLE FOR OR BOUND IN ANY MANNER BY, ANY EXPRESS OR IMPLIED REPRESENTATIONS,
WARRANTIES, COVENANTS, AGREEMENTS, OBLIGATIONS, GUARANTEES, STATEMENT,
INFORMATION OR INDUCEMENTS PERTAINING TO THE PROPERTY OR ANY PART THEREOF,
TITLE TO THE PROPERTY, THE PHYSICAL CONDITION THEREOF, THE ENVIRONMENTAL
CONDITION THEREOF, THE FITNESS AND QUALITY THEREOF, THE INCOME EXPENSES OR
OPERATION THEREOF, AND THE VALUE AND PROFITABILITY THEREOF, THE USES WHICH CAN
BE MADE THEREOF, CURRENT AND FUTURE ZONING, THE SUITABILITY OF THE PROPERTY OR
ANY PORTION THEREOF FOR RENOVATION OR CONSTRUCTION, OR ANY OTHER MATTER OR
THING WHATSOEVER WITH RESPECT THERETO. EXCEPT AS EXPRESSLY SET FORTH IN THIS
AGREEMENT, PURCHASER FOREVER RELEASES AND DISCHARGES SELLER FROM ANY AND ALL
OBLIGATIONS WITH RESPECT TO THE FOREGOING, INCLUDING, BUT NOT LIMITED TO, ANY
AND ALL CLAIMS OR OTHER LIABILITIES WHATSOEVER WITH RESPECT THERETO. EXCEPT AS
EXPRESSLY SET FORTH IN THIS AGREEMENT, PURCHASER ACKNOWLEDGES,

 

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AGREES, REPRESENTS AND WARRANTS
THAT PURCHASER IS NOT RELYING UPON ANY REPRESENTATION OR WARRANTY OF ANY SELLER
PARTY (AS HEREINAFTER DEFINED), NOR ANY BROKER OR REPRESENTATIVE OF SELLER,
WHETHER IMPLIED, PRESUMED OR EXPRESSLY PROVIDED AT LAW OR OTHERWISE, AND THAT
IT HAS HAD SUCH ACCESS TO THE PROPERTY AND TO INFORMATION AND DATA RELATING TO
ALL OF SAME AS PURCHASER HAS CONSIDERED NECESSARY, PRUDENT, APPROPRIATE OR
DESIRABLE FOR THE PURPOSES OF THIS TRANSACTION. WITHOUT LIMITING THE FOREGOING,
PURCHASER ACKNOWLEDGES AND AGREES THE PURCHASER IS PURCHASING THE PARTNERSHIP
INTERESTS “AS-IS”, EXCEPT AS OTHERWISE SET FORTH HEREIN.  PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT SELLER IS UNDER NO DUTY TO MAKE
ANY INQUIRY REGARDING ANY MATTER THAT MAY OR MAY NOT BE KNOWN TO ANY
SELLER PARTY OR ANY BROKER OF SELLER.  THIS
SECTION SHALL SURVIVE THE CLOSING, OR, IF THE CLOSING DOES NOT OCCUR,
SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT.

 

(b)                                 Without limiting the terms
and conditions of Article 4.2(a) above, none of the Whitehall Sellers
or the GMH Sellers warrant that the Property complies with any current
municipal, county, state or federal law, ordinance, regulation or building
code. Purchaser assumes all responsibility to review with such appropriate
governmental and quasi-governmental authorities as Purchaser deems necessary.
The provisions of this paragraph shall survive Closing. As used in this
Agreement, “Purchaser Party” or “Purchaser
Parties” shall mean Purchaser, any permitted assignee of Purchaser, and any
partner or member in, or, as applicable, any shareholder or director of
Purchaser, or any permitted assignee of Purchaser, as well as the officers,

 

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employees,
attorneys, and agents of Purchaser or any permitted assignee of Purchaser.  As used in
this Agreement, “Seller Party” or “Seller Parties” shall mean each of
the Whitehall Sellers and GMH Sellers, and any partner or member in, or, as
applicable, any shareholder or director of each of the Whitehall Sellers and
GMH Sellers, as well as the officers, employees, attorneys, and agents of each
of the Whitehall Sellers and GMH Sellers.

 

4.3                                 Waiver and Release.  Except as set forth in Section 7.2(A) hereof,
without limiting the provisions of Section 4.2(a) and (b), Purchaser,
for itself and any successors and assigns of Purchaser, waives its right to
recover from, and forever releases and discharges, and covenants not to
sue, any of the Whitehall Sellers or the GMH Sellers, Seller’s Affiliates or
any Seller Parties with respect to any and all Claims, whether direct or
indirect, known or unknown, foreseen or unforeseen, that may arise on account
of or in any way be connected with the Property including the physical,
environmental or structural condition of the Property or any law or regulation
applicable thereto, including, without limitation, any Claim or matter relating
to the use, presence, discharge or release of Hazardous Materials on, under,
in, above or about the Property.  In
connection with this Section 4.3, Purchaser hereby waives,
releases and agrees not to commence any action, legal proceeding, cause of
action or suits in law or equity, of whatever kind or nature, including, but
not limited to, a private right of action under the federal superfund laws, 42
U.S.C. Sections 9601 et. seq. or any similar law, rule or
regulation and any action or claim based upon any common law or case law
directly or indirectly, against any of the Whitehall Sellers or the GMH
Sellers, Seller’s Affiliates or Seller Parties, or their agents in connection
with the Claims described above, except as specifically otherwise provided by Section 7.2(A) hereof.  Purchaser elects to and does assume all risk
for such Claims heretofore and hereafter arising, whether now known or unknown
by Purchaser, except as specifically

 

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otherwise
provided by Section 7.2(A) hereof. 
To the extent permitted by law, Purchaser hereby agrees, represents and
warrants that Purchaser realizes and acknowledges that factual matters now
unknown to it may have given or may hereafter give rise to causes of action,
claims, demands, debts, controversies, damages, costs, losses and expenses
which are presently unknown, unanticipated and unsuspected, and Purchaser
further agrees, represents and warrants that the waivers and releases herein
have been negotiated and agreed upon in light of that realization and that,
except as specifically otherwise provided by Section 7.2(A) hereof,
Purchaser nevertheless hereby intends to release, discharge and acquit the
Whitehall Sellers and GMH Sellers from any such unknown causes of action,
claims, demands, debts, controversies, damages, costs, losses and expenses
which might in any way be included as a material portion of the consideration
given to such Sellers by Purchaser in exchange for the Seller’s performance
hereunder.  Without limitation of the
foregoing, if Purchaser has actual knowledge of (i) a default in any of
the covenants, agreements or obligations to be performed by any of the Sellers
under this Agreement and/or (ii) any breach of or inaccuracy in any
representation of any Seller made in this Agreement which would entitle
Purchaser to terminate this Agreement, and nonetheless elects to proceed to
Closing, then Purchaser shall be deemed to have waived any such default and/or
breach or inaccuracy and shall have no Claim against any Seller with respect
thereto.

 

ARTICLE 5

 

PRE-CLOSING
DELIVERIES OF SELLER; DUE DILIGENCE

 

5.1                                 Deliveries of GMH Sellers.  The GMH Sellers have provided, or shall
provide within five (5) business days following the Effective Date, to
Purchaser, copies of the Contracts, current rent rolls for the Property, a copy
of the certificate of insurance evidencing the insurance

 

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coverage in place as of the Effective
Date and, to the extent in the possession of the GMH Sellers or the
Partnership, copies of the Permits and Reports, the Miscellaneous Agreements
and all documents,
records and other information relating to the Property, including without
limitation all of the materials listed in Schedule 1 to the extent
such materials are in the possession of the GMH Sellers or the Partnership
(collectively, “Seller Deliverables”).  The Whitehall Sellers shall provide to the
GMH Sellers or the Purchaser copies of any and all tax returns of the
Partnership, and documentation in support thereof, which may not have been
previously given to the GMH Sellers.

 

5.2                                 No Obligation to Comply.  None of the Whitehall Sellers or the GMH
Sellers shall be obliged to cure any defects in the Property or violations of
law with respect to the Property, or to make any capital improvements to the
Property or repairs to the Property.  Between the Effective Date and the Closing
Date, the GMH Sellers will advise Purchaser of any written notice GMH Sellers
receive after the Effective Date from any Governmental Authority relating to or
in connection with the Property’s violation of any law or municipal ordinance,
order or requirement.

 

5.3                                 Due
Diligence.

 

(a)                                  Purchaser,
from time to time prior to Closing, shall have the right to inspect and
investigate each and every aspect of the Property, perform surveys, dig test
holes, make engineering studies, environmental studies and perform whatever
other tests and evaluations of the Property as Purchaser may elect, all either
independently or through agents, representatives or contractors of Purchaser’s
choosing.  Such investigation by
Purchaser may include, without limitation: (i)  matters
relating to governmental and other legal requirements with respect to the
Property, including without limitation taxes, assessments, zoning, use permit

 

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requirements and building codes; (ii)  compliance
with zoning, land use, building, environmental and other statutes, rules, or
regulations applicable to the Property; (iii)  the physical condition of
the Property, including, without limitation, the interior, the exterior, the
square footage of the improvements and of each tenant space therein, the
structure, the roof, the paving, the utilities, and all other physical and
functional aspects of the Property; and (iv) all matters relating to the
income and operating or capital expenses of the Property and all related
financial matters.  The GMH Sellers shall
freely cooperate with Purchaser’s due diligence of the Property, and shall
provide Purchaser with all documents, files and data requested by Purchaser
relating to the Property.

 

(b)                                 In
connection with any entry by Purchaser or any of its agents, employees or
contractors onto the Property, Purchaser shall give the GMH Sellers reasonable
advance notice of such entry and shall conduct such entry and any inspections
so as to reasonably minimize interference with Tenants.  Purchaser shall maintain, or shall cause its
contractors to maintain, public liability and property damage insurance
insuring Purchaser against any liability arising out of any entry or
inspections of the Property pursuant to the provisions hereof.  Such insurance shall be in the minimum amount
of $1,000,000 combined single limit for injury to or death of one or more
persons in an occurrence.  Purchaser
shall indemnify and hold the Partnership, the Whitehall Sellers and the GMH
Sellers harmless from and against any Claims arising out of or relating to any
entry on the Property by Purchaser in the course of performing any inspections,
testings or inquiries.

 

(c)                                  At
any time prior to the thirtieth (30th) day following the Effective Date (such
period, the “Due Diligence Period”), Purchaser may, in its sole and absolute
discretion, and for any or no reason whatsoever, terminate this Agreement by
written notice to the Whitehall

 

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Sellers and the GMH
Sellers, whereupon the Deposit shall be returned to Purchaser on the first
business day following such termination, by wire transfer (pursuant to
Purchaser’s wiring instructions) of immediately available funds.  The foregoing termination rights have been
granted to Purchaser in consideration of the payment of Ten Dollars ($10.00)
and other independent, valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by the Whitehall Sellers and the GMH Sellers.

 

(d)                                 Notwithstanding any
provision in this Agreement to the contrary or unless required by law,
Purchaser shall not, and shall cause all of its agents, contractors or
representatives not to, contact or communicate with any Governmental Authority
regarding any Hazardous Materials (as hereinafter defined) on the Property,
without prior consent of the Whitehall Sellers and GMH Sellers.  The GMH Sellers shall have the right to have
a representative present when Purchaser or any agent, contractor or
representative of Purchaser has, or causes to be had, any such contact or
communication with any Governmental Authority. 
The GMH Sellers agree to cooperate in making a representative available
during normal business hours and upon 48 hours’ prior written notice for such
purposes.  As used herein, “Governmental Authority” shall mean any
federal, state, county or municipal government, or political subdivision
thereof, any governmental agency, authority, board, bureau, commission,
department, instrumentality, or public body, or any court or administrative
tribunal.  As used herein, “Hazardous
Materials” shall mean materials, wastes or substances that are (a) included
within the definition of any one or more of the terms “hazardous substances,” “hazardous
materials,” “toxic substances,” “toxic pollutants” and “hazardous waste” in the
Comprehensive Environmental Response, Compensation and Liability Act of 1980,
as amended (42 U.S.C. Sections 9601, et  seq.), the Resource
Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901, et  seq.),

 

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the Clean Water Act (33 U.S.C. Section 1251, et
seq.), the Safe Drinking Water Act (14 U.S.C. Section 1401, et
seq.), the Hazardous Materials Transportation Act (49 U.S.C. Section 1801,
et  seq.), and the Toxic Substance Control Act (15 U.S.C. Section 2601,
et  seq.) and the regulations promulgated pursuant to such laws, (b) regulated,
or classified as hazardous or toxic, under other federal, state or local
environmental laws or regulations, (c) petroleum, (d) asbestos or
asbestos-containing materials, (e) polychlorinated biphenyls, (f) flammable
explosives or (g) radioactive materials.

 

5.4                                 Intentionally
Omitted.

 

5.5                                 Title
and Survey.

 

(a)                                  Purchaser shall have the right to obtain,
at Purchaser’s expense, promptly after the Effective Date, a bringdown or
endorsement to the Title Policy (the “Title Bringdown”) as issued by the Escrow
Agent and legible copies of all recorded instruments and maps affecting the
Property and recited as exceptions or referred to in the Title Bringdown
(collectively, the “Exceptions”).

 

(b)                                 If Purchaser has an objection to any
matters disclosed in the Title Bringdown, the Exceptions, or the Updated Survey
and the Partnership is unwilling to cure any such Exceptions, Purchaser shall
have until the expiration of the Due Diligence Period to either (i) terminate
this Agreement, in which case the Deposit shall be refunded to Purchaser, and,
except as otherwise provided herein, neither party shall have any further
liability to the other hereunder, or (ii) elect to proceed with the
purchase of the Partnership Interests subject to such Exceptions without any
adjustment to the Purchase Price.  If
Purchaser fails to give such timely notice of termination, Purchaser shall
proceed with the purchase of the Partnership Interests as aforesaid.  Notwithstanding the foregoing, the
Partnership shall pay off and discharge all

 

17

 

mortgages and deeds of trust affecting the
Property as of the Closing Date out of the sale proceeds.

 

ARTICLE 6

 

CASUALTY
AND CONDEMNATION

 

6.1                                 Casualty.  (a) In the event of any fire or other casualty damage to the Property or
any part thereof, then, at either party’s option, by written notice to the
other party within ten (10) business days in the case of a termination by
the Whitehall Seller and/or the GMH Sellers, after the Partnership becomes
aware of such damage or, in the case of a termination by Purchaser, after
Purchaser receives notice of such damage from Seller, either may terminate this
Agreement, in which event the Deposit shall be refunded to Purchaser, this
Agreement shall be terminated, and the parties shall have no further
obligations to each other.  If neither
party terminates this Agreement as aforesaid, Purchaser shall have the right,
upon the occurrence of such event, at its sole option, to elect to consummate
the sale without a reduction of the Purchase Price on account of the same,
except that Purchaser shall receive a credit against the Purchase Price for the
amount of any deductible applicable under the Partnership’s insurance policy.  Notwithstanding the foregoing, Purchaser
shall, however, be obligated to close hereunder if the cost to repair such
damage shall be less than One Million Dollars ($1,000,000.00) and such damage
is fully covered by insurance or the Partnership agrees in writing to provide a
credit to Purchaser against the Purchase Price in an amount equal to the lesser
of (i) the actual costs to repair such damage less the sum of (A) the
amount of any insurance proceeds available to Purchaser plus (B) the
amount of the deductible under the Partnership’s insurance policy or (ii) the
sum of One Million Dollars ($1,000,000) less the sum of (A) the amount of
any insurance proceeds available to Purchaser plus (B) the amount of the
deductible under the Partnership’s insurance policy.

 

18

 

(b)                                 If, prior to the Closing, any portion of the
Property shall be taken for any public use (other than minor takings for street
widening) or access to or from the Property shall be permanently taken or
materially impaired, or any change(s) to public way(s) or the grade(s) thereof
shall be made which materially affects or are likely to materially affect the
value of the Property, or notice of any of the foregoing shall be made public
or otherwise come to Purchaser’s attention (unless such action is terminated on
or prior to the Closing), then, and in any of such events, by written notice to
the Whitehall Sellers and the GMH Sellers within ten (10) business days
after Purchaser receives notice of such events from the Partnership, Purchaser
may either (i) terminate this Agreement, in which event the Deposit shall
be refunded to Purchaser, and the parties shall have no further liability or
responsibility to each other, or (ii) elect to consummate the sale without
a reduction of the Purchase Price on account of the same.  The GMH Sellers shall promptly notify
Purchaser if and when the Partnership becomes aware of any such notice or
threat of taking.

 

(c)                                  In the event that either
party shall have the right to terminate this Agreement pursuant to this Article 6.1
and each party waives such right to terminate, then the Closing shall occur on
the later of the (i) day the Closing would have occurred but for the
casualty, taking or other event described above or (ii) date that is ten (10) business
days after the expiration or waiver of the permitted ten (10) day period
referred to above.

 

ARTICLE 7

 

WARRANTIES,
REPRESENTATIONS AND COVENANTS

 

7.1                                 Warranties and
Representations of Purchaser.  The Purchaser
warrants and represents to the Whitehall Sellers and the GMH Sellers as
follows, which representations and

 

19

 

warranties shall be deemed to be
repeated by Purchaser, and shall be true and correct, as of the Closing Date
and shall survive the Closing for a period of one (1) year:

 

(a)                                  Purchaser is a limited
liability company duly organized and validly existing under the laws of the
State of Delaware. The execution, delivery and performance by Purchaser of the
terms of this Agreement has been duly authorized by all necessary parties and
does not conflict with any agreement to which Purchaser is bound or is a party
or require the consent of any party.

 

(b)                                 This Agreement is the legal,
valid and binding obligation of Purchaser, enforceable against Purchaser in
accordance with its terms, subject only to bankruptcy and creditor’s rights
laws, matters affecting creditors of Purchaser generally and general equitable
principles (whether asserted in an action at law or equity).

 

(c)                                  Purchaser
is familiar with the source of funds for the Purchase Price of the Property and
represents that all such funds derived from
legitimate business activities within the United States of America and/or from
loans from a banking or financial institution chartered or organized within the
United States of America.

 

(d)                                 None
of Purchaser, the Purchaser Parties, or any Affiliate of Purchaser is subject
to sanctions of the United States government or in violation of any federal,
state, municipal or local laws, statutes, codes, ordinances, orders, decrees, rules or
regulations (“Laws”) relating to terrorism or money laundering, including,
without limitation, Executive Order No. 13224, 66 Fed.
Reg. 49079 (published September 25, 2001) (the “Terrorism Executive
Order”) or a Person (as hereinafter defined) similarly designated under any
related enabling legislation or any other similar Executive Orders
(collectively with the Terrorism Executive Order, the “Executive Orders”), the
Uniting and Strengthening America by Providing

 

20

 

Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56,
the “Patriot Act”), any sanctions and regulations promulgated under authority
granted by the Trading with the Enemy Act, 50 U.S.C. App. 1-44, as amended from
time to time, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-06,
as amended from time to time, the Iraqi Sanctions Act, Publ. L. No. 101-513;
United Nations Participation Act, 22 U.S.C. § 287c, as amended from time
to time, the International Security and Development Cooperation Act, 22 U.S.C. § 2349
aa-9, as amended from time to time, The Cuban Democracy Act, 22 U.S.C. §§ 6001-10,
as amended from time to time, The Cuban Liberty and Democratic Solidarity Act,
18 U.S.C. §§ 2332d and 2339b, as amended from time to time, and The
Foreign Narcotics Kingpin Designation Act, Publ. L. No. 106-120, as
amended from time to time.

 

(e)                                  None
of the Purchaser, the Purchaser Parties or any Affiliate of Purchaser is (i) listed
on the Specially Designated Nationals and Blocked Persons List (the “SDN List”)
maintained by the Office of Foreign Assets Control (“OFAC”), Department of the
Treasury, and/or on any other similar list (“Other Lists” and, collectively
with the SDN List, the “Lists”) maintained by the OFAC pursuant to any
authorizing statute, Executive Order or regulation (collectively, “OFAC Laws
and Regulations”); or (ii) a Person (a “Designated Person”) either (A) included
within the term “designated national” as defined in the Cuban Assets Control
Regulations, 31 C.F.R. Part 515, or (B) designated under
Sections 1(a), 1(b), 1(c) or 1(d) of the Terrorism Executive
Order or a Person similarly designated under any related enabling legislation
or any other similar Executive Orders (collectively, the “Executive Orders”),
including a “Prohibited Person”.  The
OFAC Laws and Regulations and the Executive Orders are collectively referred to
as the “Anti-Terrorism Laws”.  “Prohibited Person” is defined as follows:

 

21

 

(A)                              a
person or entity that is listed in the Annex to the Terrorism Executive Order,
or is otherwise subject to the provisions of the Terrorism Executive Order or
any other Executive Order;

 

(B)                                a person or entity owned or controlled by, or acting for or
on behalf of, any person or entity that is listed in the Annex to the Terrorism
Executive Order, or is otherwise subject to the provisions of the Terrorism
Executive Order or any other Executive Order;

 

(C)                                a
person or entity with whom Seller is prohibited from dealing or otherwise
engaging in any transaction by any terrorism or anti-money laundering Law,
including the Terrorism Executive Order, any other Executive Order and the
Patriot Act;

 

(D)                               a
person or entity who commits, threatens or conspires to commit or supports “terrorism”
as defined in the Terrorism Executive Order or any other Executive Order; or

 

(E)                                 a
person or entity that is named as a “specially designated national and blocked
person” on the most current list published by the U.S. Treasury Department
Office of Foreign Asset Control at its official website, http://www.treas.gov/ofac/tllsdn.pdf or any
replacement website or other replacement official publication of such list.

 

(f)                                    Purchaser has required and shall require, and has taken
and shall take all reasonable measures to ensure compliance with the
requirement that no Purchaser Parties or Affiliates of Purchaser is or shall,
be listed on any Lists be a Designated Person, or be in violation of any Laws,
including any OFAC Laws and Regulations.

 

22

 

(g)                                 None
of Purchaser, the Purchaser Parties or any Affiliate of Purchaser is or will (i) conduct
any business or engage in making or receiving any contribution of funds, goods
or services to or for the benefit of any Designated Person, (ii) deal in,
or otherwise engage in, any transaction relating to any property or interest in
property blocked pursuant to any Executive Order or the Patriot Act, or (iii) engage
in or conspire to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions
set forth in any Executive Order or the Patriot Act.

 

(h)                                 Items
(c) through (g) shall not apply to Purchaser Parties to the extent
that such Purchaser Parties’ interest in Purchaser is through a U.S. Publicly-Traded
or Pension Entity.  “U.S. Publicly-Traded
or Pension Entity” means either (A) a Person
(other than an individual) whose securities are listed on a national securities
exchange, or quoted on an automated quotation system, in the United States, or
a wholly-owned subsidiary of such a Person, or (B) an “employee pension
benefit plan” or “pension plan” as defined in Section 3(2) of
ERISA.  As used herein, “Person” means
any individual, partnership, corporation, limited liability
company, trust or other legal entity. 
As used herein, “Affiliate” means with respect to any Person (i) any
other Person that directly or indirectly through one or more intermediaries
controls or is controlled by or is under common control with such Person, (ii) any
other Person owning or controlling 10% or more of the outstanding voting
securities of or other ownership interests in such Person, (iii) any
officer, director or partner of such Person, or (iv) if such Person is an
officer, director or partner, any other company for which such Person acts in
any such capacity or any entity in which such Person, acting individually or
though any entity, is a member, partner or other principal.

 

23

 

7.2                                 Warranties and
Representations of Seller.  (A) Each of the
Whitehall Sellers and the GMH Sellers hereby represent and warrant, on a
several and not joint and several basis, to Purchaser as follows as of the
Effective Date:

 

(i)                                     Each such entity is duly
formed or incorporated and validly existing in the state of its formation or
incorporation.

 

(ii)                                  The execution, delivery and
performance by each such entity of the terms of this Agreement has been duly
authorized by all necessary action and does not conflict with any agreement to
which each such entity is bound or is a party or require the consent of any
party.

 

(iii)                               This Agreement is the legal, valid and binding
obligation of each such entity, enforceable against each such entity in
accordance with its terms, subject only to bankruptcy and creditor’s rights
laws, matters affecting creditors of each such entity generally and general
equitable principles (whether asserted in an action at law or equity).

 

(iv)                              Each such entity has not assigned, pledged or
encumbered any of its respective Partnership Interest and owns its respective Partnership Interest free and
clear of any and all liens, claims, pledges and encumbrances.

 

Each
of the Whitehall Sellers, severally and not jointly
and severally, hereby represents and warrants to Purchaser that, to the best of
its knowledge, it has not received any written notice of any fact or
circumstance which would cause the representations and warranties of the GMH
Sellers as set forth in subparagraph (B) to be misleading or untrue.  For the purposes of this Section 7.2(A),
“to the best of its knowledge” means the actual, conscious (and not
constructive) knowledge on the Effective Date of Thomas Ferguson, without
investigation or inquiry.

 

24

 

(B)                                The GMH Sellers hereby represent and warrant to
Purchaser as follows as of the Effective Date, which representations and
warranties shall be deemed to be repeated by the GMH Sellers, and shall be true
and correct, as of the Closing Date:

 

(i)                                     To Seller’s Knowledge, there is no
pending condemnation or similar proceeding or special assessment affecting the
Property, or any part thereof, nor, to Seller’s Knowledge, has Seller received
written notice that any such proceeding or assessment is contemplated by any
Governmental Authority.

 

(ii)                                  To
Seller’s Knowledge, Seller has not received any written notice or communication
from any Governmental Authority that the Property violates any applicable law,
statute, ordinance, code, regulation or rule.

 

(iii)                               To
Seller’s Knowledge, Seller is not a party to any litigation and has not
received written notice of any proceedings, claims or lawsuits, which if
adversely determined against Seller would have an adverse effect on the
Property or on Seller’s ability to consummate the transaction contemplated
hereunder.

 

As used in this Section 7.2
(B), “Seller’s Knowledge” shall mean the actual, conscious (and not implied or
constructive) knowledge, on the Effective Date and on the Closing Date, as
applicable, of Miles Orth, without investigation or inquiry.

 

(C)                                Notwithstanding
any provision to the contrary herein or in any Closing Document, (i) Purchaser
shall not be entitled to file any Claims (as hereinafter defined) against any
of the Whitehall Sellers or the GMH Sellers unless the total of such Claims, in
the aggregate, exceeds Fifty Thousand Dollars ($50,000) and (ii) the total
liability of all the Whitehall Sellers and the GMH Sellers for any or all
Claims (as hereinafter defined) hereunder or under any Closing Document shall
not exceed Five Hundred Thousand Dollars ($500,000).  As used herein,

 

25

 

“Claims” means any suits, actions, proceedings, investigations,
demands, claims, liabilities, fines, penalties, liens, judgments, losses,
injuries, damages, expenses or costs, including, without limitation, reasonable
attorneys’ and experts’ fees and costs of investigation actually incurred or
paid.  Except as otherwise specifically
set forth in this Agreement, the representations and warranties of the
Whitehall Sellers and the GMH Sellers contained herein or in any Closing Document
shall survive only until the one hundred twentieth (120th) day
following the Closing Date (the “Representation Expiration Date”).  Any Claim that Purchaser may have at any time
against the Whitehall Sellers and the GMH Sellers for a breach of any
representation or warranty, with respect to which a written notice of such
Claim (a “Claim Notice”) has not been delivered to the Whitehall Sellers and
the GMH Sellers on or prior to the Representation Expiration Date shall not be
valid or effective.  For the avoidance of
doubt, on the Representation Expiration Date, the Whitehall Sellers and the GMH
Sellers, their partners and agents shall be fully discharged and released
(without the need for separate releases or other documentation) from any
liability or obligation to Purchaser with respect to any Claims or any matter
relating to this Agreement, any Closing Document or the Property, except solely
for those matters that are then the subject of a pending Claim Notice delivered
by Purchaser to the appropriate Whitehall Seller or GMH Seller.  Any Claim that Purchaser may have at any time
against any Whitehall Seller or GMH Seller for a breach of any representation
or warranty, whether known or unknown, with respect to which a Claim Notice has
been delivered to the appropriate Whitehall Seller or GMH Seller on or prior to
the Representation Expiration Date may be the subject of subsequent litigation
brought by Purchaser against the appropriate Whitehall Seller or GMH Seller, provided that such litigation is commenced against the

 

26

 

appropriate
Whitehall Seller or GMH Seller on or prior to the sixtieth (60th) calendar day
following the Representation Expiration Date.

 

(D)                               If
Purchaser has actual knowledge of (i) a default in any of the covenants,
agreements or obligations to be performed by any of the Whitehall Sellers or
GMH Sellers under this Agreement or under any Closing Document and/or (ii) any
breach of or inaccuracy in any representation or warranty of any of the
Whitehall Sellers or GMH Sellers made in this Agreement, Purchaser shall notify
the appropriate Whitehall Seller or GMH Seller of same in writing, in which
case Seller shall have an opportunity to cure same (and, if necessary, extend
Closing for a period not to exceed thirty (30) days to cure same).  If Purchaser, with actual knowledge of (i) a
default in any of the covenants, agreements or obligations to be performed by
any of the Whitehall Sellers or GMH Sellers under this Agreement or under any
Closing Document and/or (ii) any breach of or inaccuracy in any
representation or warranty of any of the Whitehall Sellers or GMH Sellers made
in this Agreement, nonetheless elects to proceed to Closing, then, upon the
consummation of Closing, Purchaser shall be deemed to have waived any such
default and/or breach or inaccuracy and shall have no Claim against any of the
Whitehall Sellers or GMH Sellers with respect thereto.

 

(E)                                 This
Section 7.2 shall survive the Closing.

 

7.3                                 Covenants of the Partnership
and GMH Sellers.

 

(a)                                  Until Closing, GMH Sellers
on behalf of the Partnership shall enter into only those third party contracts
which are necessary to maintain the Property in a manner consistent with the
past practices and current operation of the Property.  If GMH Sellers enter into any such contract,
the GMH Sellers shall promptly give written notice thereof to Purchaser and
unless Purchaser, within seven (7) days thereafter, notifies Seller in
writing of its intention to

 

27

 

assume such contract, the GMH
Sellers shall cause such contract to be terminated prior to Closing.

 

(b)                                 The GMH Sellers agree, until
Closing, to cause the property manager to continue its rental program in a
manner consistent with the past practices and current operation of the Property.
Notwithstanding the foregoing, the Partnership or the GMH Sellers shall not (i) enter
into, alter, amend or otherwise modify or supplement any Lease, without the
prior written consent of Purchaser, except that the Partnership may enter into,
modify or terminate residential leases in the ordinary course of business, for
terms of not more than one year and at market rent rates, (ii) grant any
bonus, free month’s rental, rebate or other concession to any present or future
tenant of the Property, unless the same is fully applied prior to the Closing
or is otherwise acceptable to Purchaser, (iii) cause the termination of
any Lease without the prior written consent of Purchaser, unless the tenant is
in default thereunder, and (iv) apply any security deposits or other
deposits to amounts owing with respect to any tenants in possession on the
Closing Date unless such tenants are delinquent in the payment of rent or
otherwise in default under their Leases in which event Seller shall request
that such tenant replenish such security deposit if required under the
applicable lease.

 

(c)                                  Until Closing, the
Partnership shall cause all existing insurance covering the Property to be
maintained in full force and effect, and without material changes thereto.

 

(d)                                 Until Closing, the
Partnership shall cause the Property to be operated and maintained and repaired
in a manner consistent with past practices and its current operation and in
accordance with good business practices, such that the Property can be
delivered to Purchaser at Closing in their present condition, normal wear and
tear excepted.

 

28

 

 

ARTICLE 8

 

DEFAULT

 

8.1                                 Default by Purchaser.  The parties agree that if
Purchaser defaults in the performance of the terms of this Agreement by failing
to purchase the Property as required to do so, then either the Whitehall
Sellers or the GMH Sellers shall have the right to retain the Deposit as
liquidated damages, and not as a penalty, without the necessity of proving
actual damages, which Deposit shall be allocated amongst the Whitehall Sellers
and the GMH Sellers in accordance with their Percentage Interests. The
Purchaser hereby waives any right to challenge the enforceability of this
clause or its reasonability, and Purchaser hereby waives any and all rights it
may have at law or equity to dispute the right of the Whitehall Sellers and the
GMH Sellers to retain the liquidated damages provided for herein other than on
the basis that no default had occurred and thus the Whitehall Sellers and the
GMH Sellers were not entitled to any damages whatsoever.

 

8.2                                 Default by Seller.  In the event the purchase and
sale hereunder is not closed by reason of a default by any of the Whitehall
Sellers or the GMH Sellers hereunder in failing or refusing to sell the
Partnership Interests to Purchaser as provided in this Agreement, Purchaser
shall be entitled to (i) seek specific performance of this Agreement
against the defaulting Seller only by filing an action for specific performance
within 60 days of the breach thereof, or (ii) terminate this Agreement, in
which event the Deposit shall be refunded to Purchaser, and this Agreement
shall terminate and be null and void and of no further force and affect.  Purchaser hereby waives any right to receive
any damages or pursue any and all rights or remedies not specifically provided
for herein against Seller.

 

29

 

ARTICLE 9

 

ESCROW
AGENT

 

9.1                                 Deposit in Escrow.  The Deposit shall be held by the
Escrow Agent, in trust, on the terms set forth in this Agreement.

 

9.2                                 Disputes.  In the event of litigation between Seller and
Purchaser, the Escrow Agent may deliver the monies held in the escrow to the
Clerk of the Court in which such litigation is pending, or the Escrow Agent
shall take such affirmative steps as the Escrow Agent may, at the Escrow Agent’s
option elect in order to terminate the Escrow Agent’s duties including, but not
limited to, depositing the monies held in the escrow in any court which Escrow
Agent shall select in the Commonwealth of Pennsylvania, and may institute an
action for interpleader, the costs thereof to be borne by whichever of Seller,
in accordance with each of their Percentage Interests, or Purchaser is the
losing party.

 

9.3                                 Release and Indemnity.

 

(a)                                  It is agreed that the duties of the Escrow Agent are
only as herein specifically provided and are purely ministerial in nature, and
that the Escrow Agent shall incur no liability whatever except for willful
misconduct or gross negligence of Escrow Agent. The Seller and Purchaser each
release the Escrow Agent from any act done or omitted to be done by the Escrow
Agent in good faith in the performance of its duties hereunder.

 

(b)                                 Seller and Purchaser shall jointly and severally hold
Escrow Agent harmless from and against any loss, damage, liability or expense
incurred by Escrow Agent not caused by its willful misconduct or gross
negligence, arising out of or in connection with its entering into this
Agreement and the carrying out of its duties hereunder, including the
reasonable costs and expenses of defending itself against any claim of
liability or participating in any legal proceeding. Escrow Agent may consult
with counsel of its choice and shall have full

 

30

 

and complete
authorization and protection for any action taken or suffered by it hereunder
in good faith and in accordance with the opinion of such counsel.

 

ARTICLE 10

 

MISCELLANEOUS

 

10.1                           Entire Agreement.  This Agreement contains the
entire understanding of the parties hereto with respect to the subject matter
hereof, and no prior or other writing or oral agreement or undertaking
pertaining to any such matter shall be effective for any purpose. This
Agreement may not be changed or modified, nor any provision hereof waived,
except in writing by the party to be charged thereby.

 

10.2                           Broker or Consultant.  Purchaser and Seller represent
and warrant to each other that neither has dealt with any broker or consultant
in connection with this Agreement. Seller and Purchaser each agree to hold the
other harmless and to indemnify the other against any claims of, or liabilities
to, any broker or other person based upon dealings or alleged dealings which
are inconsistent with the foregoing representation.  The obligations of Purchaser and Seller under
this paragraph shall survive whether or not title closes hereunder and
notwithstanding any release of either party pursuant to any other provisions of
this Agreement.

 

10.3                           Notices.  All notices, requests, consents and other
communications hereunder shall be in writing and shall be personally delivered
or mailed by first class registered or certified mail, return receipt
requested, postage prepaid, by telecopy (with confirmation of receipt), or sent
by private overnight express delivery, addressed as follows:

 

	
  If to the Whitehall Sellers:

  	
   

  
	
   

  	
   

  
	
   

  	
  Goldman Sachs & Co.

  
	
   

  	
  100 Crescent Court

  
	
   

  	
  Suite 1000

  
	
   

  	
  Dallas, Texas 75201

  
	
   

  	
  Attention: Mr. Thomas Ferguson

  

 

31

 

	
  with a copy to:

  	
   

  
	
   

  	
   

  
	
   

  	
  Arent Fox PLLC

  
	
   

  	
  1050 Connecticut Avenue, N.W.

  
	
   

  	
  Washington, DC 20036

  
	
   

  	
  Attention: Mark Katz, Esquire

  
	
   

  	
   

  
	
   

  	
   

  
	
  If to GMH Sellers:

  	
   

  
	
   

  	
   

  
	
   

  	
  GMH Communities, LP

  
	
   

  	
  10 Campus Boulevard

  
	
   

  	
  Newtown Square, Pennsylvania 19073

  
	
   

  	
  Attention: Mr. Joseph M. Macchione

  
	
   

  	
   

  
	
   

  	
   

  
	
  If to Purchaser:

  	
   

  
	
   

  	
   

  
	
   

  	
  Nittany Crossing Intermediate, LLC

  
	
   

  	
  GMH Communities, LP

  
	
   

  	
  10 Campus Boulevard

  
	
   

  	
  Newtown Square, Pennsylvania 19073

  
	
   

  	
  Attention: Mr. Joseph M. Macchione

  
	
   

  	
   

  
	
   

  	
   

  
	
  with a copy to:

  	
   

  
	
   

  	
   

  
	
   

  	
  Reed Smith LLP

  
	
   

  	
  2500 One Liberty Place

  
	
   

  	
  1650 Market Street

  
	
   

  	
  Philadelphia, PA 19103

  
	
   

  	
  Attention: James F. Mogan, III, Esquire

  

 

or to such other address
as the respective party may direct by notice to the other party. Any such
notice, request, consent or other communication shall be deemed delivered at
such time as it is personally delivered on a business day, on the day it is so
deposited in the U. S. Mail, on the business day it is delivered by telecopy
and the delivering party shall have confirmed receipt of the same by telephone,
or on the first business day following its delivery to a private overnight
express delivery service, prepaid for next business day delivery, as the case
may be.

 

32

 

10.4                           Governing Law.  This Agreement shall be governed
by and construed under the laws of the Commonwealth of Pennsylvania.

 

10.5                           Interpretation.  This Agreement shall be construed
reasonably to carry out its intent without presumptions against or in favor of
either party. If any provision hereof shall be declared invalid by a court or
in any administrative proceedings, then the provisions of this Agreement shall
be construed in such manner so as to preserve the validity hereof and the
substance of the transaction herein contemplated to the extent possible. The
paragraph and/or section headings and the arrangement of this Agreement is
for the convenience of the parties hereto and do not in any way affect, limit,
amplify or modify the terms and provisions hereof.

 

10.6                           Singular, Plural, Etc.  Wherever
herein the singular number is used the same shall include the plural and the
masculine gender shall include the feminine and neuter genders and vice versa,
as the context shall require.

 

10.7                           Counterparts.  This Agreement may be executed in several
counterparts, which shall constitute one and the same instrument.

 

10.8                           Intentionally Omitted.

 

10.9                           Further Assurances.  Seller and Purchaser each agree
to execute any and all documents necessary to effectuate the purposes of this
Agreement, provided, however, that any such instruments, documents and
materials are not inconsistent with the terms of this Agreement, do not create
any liability on the part of Seller and Purchaser that was not contemplated by
this Agreement or expand any liability that was contemplated and do not contain
any representation, warranty, indemnity or covenant that Seller or Purchaser is
not required to make under the terms of this Agreement.

 

33

 

10.10                     Recording.  Neither this Agreement nor any memorandum
hereof may be recorded, except in connection with a permitted action by
Purchaser for specific performance, without the express written consent of both
parties, and any party recording this Agreement without first having obtained
any necessary consent shall be in material breach hereof.

 

10.11                     Assignment; Successor and Assigns.  Purchaser may
not assign this Agreement or its rights hereunder without the express written
consent of each of the GMH Sellers and Whitehall Sellers, which consent may be
withheld, conditioned or delayed in the sole and absolute discretion of each of
the Sellers; provided, however, that Purchaser may assign each of its rights
under this Agreement on or prior to the Closing to an entity controlled by or
under common control with, or an affiliate of, GMH Communities, LP, without any
consent from any Seller. This Agreement shall inure to the benefit of and be
binding upon Seller and Purchaser and their respective heirs, personal
representatives, successors and permitted assigns.

 

10.12                     Time.  Unless otherwise specified to the contrary in
this Agreement, TIME IS OF THE ESSENCE WITH RESPECT TO ALL TIME PERIODS IN THIS
AGREEMENT. In the event that the date upon which any time period ends or any
duty or obligation hereunder is to be performed shall occur upon a Saturday,
Sunday or national banking holiday, then, in such event, the time period or the
due date for such performance shall be automatically extended to the next
succeeding day which is not a Saturday, Sunday or national banking holiday.

 

10.13                     Confidential
Information.  Purchaser acknowledges
that the transaction contemplated herein is of a confidential nature and shall
not be disclosed except (a) to Purchaser’s consultants, investors,
lenders, appraisers, attorneys, accountants, advisors, Purchaser Parties, and
Purchaser’s associated companies or affiliates, (b) as required by any applicable
statute, law or regulation, or (c) in accordance with any litigation that
may arise

 

34

 

between the parties in
connection with the transaction contemplated by this Agreement.  Purchaser agrees to treat any information
provided by Seller, or its agents, or relating to Seller or the Partnership or
the Property as confidential, preserve the confidentiality thereof, and not
disclose to any parties except the persons or entities set forth above or duplicate
or use such information except as provided above in connection with the
transaction contemplated hereby. 
Purchaser and Seller agree that confidentiality obligations set forth
herein shall not apply to information which (a) is or becomes generally
available to the public, (b) was in Purchaser’s possession prior to its
disclosure to Purchaser by Seller, Seller Parties, or Seller’s agents or the
Partnership, or (c) is or becomes available to Purchaser from a source
other than Seller, Seller Parties, or Seller’s agents or the Partnership.  In the event of the termination of this
Agreement for any reason whatsoever, Purchaser will return to Seller and/or the
Partnership all documents, work papers, and other written material (including
all copies thereof) obtained from Seller, or its agents, or the Partnership in
connection with the transaction contemplated hereby, and Purchaser shall
instruct its employees and others who have had access to such information, to
keep confidential and not to use any such information. The provisions of this Section shall
survive the Closing or, if the purchase and sale is not consummated, any
termination of this Agreement.  Any press
release or other public disclosure regarding this Agreement or the transactions
contemplated herein, and the wording of same, must be approved in advance by
both parties.

 

10.14                     Several
Covenants, Obligations, Representations and Warranties.  Notwithstanding any other term of this
Agreement, all covenants, obligations, representations and warranties of Seller
in this Agreement, or of the GMH Sellers and the Whitehall Sellers under this
Agreement, shall be made by such entities on a several, and not joint and
several, basis.

 

35

 

10.15                     Tax
Treatment.  The parties hereto agree
that Purchaser is purchasing partnership interests for the consideration
specified herein.  Furthermore, each
party hereto hereby agrees for federal income tax purposes to treat the
transactions contemplated by this Agreement as a sale of partnership
interests.  In particular, the parties
agree that the Whitehall Sellers and such of the GMH Sellers that are being
paid cash shall be treated for federal income tax purposes as selling their
respective partnership interests (or, in the case of a GMH Seller that is being
paid both cash and operating units in GMH Communities, LP, the proportionate
share of such Seller’s partnership interest attributable to such cash) to GMH
Communities, LP for the amount of cash specified in Section 2.1 of this
Agreement.  This provision is intended to
comply with the requirements of Treasury Regulation section 1.708-1(c)(4),
with GMH Communities, LP as the surviving partnership, and shall be interpreted
consistently therewith.

 

 

[Remainder of page intentionally blank; next page is
signature page]

 

36

 

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

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  WHITEHALL STREET REAL ESTATE LIMITED PARTNERSHIP IX, a Delaware limited partnership 

  
	
  Execution Date:

  	
  By:

  	
    WH Advisors, L.L.C. IX, its general
  partner

  
	
   

  	
   

  	
   

  
	
  March 22, 2005

  	
   

  	
  By:

  	
    /s/
  Thomas D. Ferguson

  	
   

  
	
   

  	
   

  	
    Name: Thomas
  D. Ferguson

  	
   

  
	
   

  	
   

  	
    Title:   Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BRIDGE STREET REAL ESTATE FUND 1998, L.P., a Delaware limited partnership 

  
	
  Execution Date:

  	
  By:

  	
    Stone Street 1998 Realty, L.L.C., its
  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  March 22, 2005

  	
   

  	
  By:

  	
    /s/
  Thomas D. Ferguson

  	
   

  
	
   

  	
   

  	
    Name: Thomas
  D. Ferguson

  	
   

  
	
   

  	
   

  	
    Title:   Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STONE STREET W9/JP-M CORP., a Delaware corporation

  
	
  Execution Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  March 22, 2005

  	
   

  	
  By:

  	
    /s/
  Thomas D. Ferguson

  	
   

  
	
   

  	
   

  	
    Name: Thomas
  D. Ferguson

  
	
   

  	
   

  	
    Title:   Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  W9/JP-M GEN-PAR, INC., a Delaware corporation

  
	
  Execution
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  March 22, 2005

  	
   

  	
  By:

  	
    /s/
  Thomas D. Ferguson

  	
   

  
	
   

  	
   

  	
    Name: Thomas
  D. Ferguson

  
	
   

  	
   

  	
    Title:   Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STONE STREET REAL ESTATE FUND 1998, L.P., a Delaware limited partnership 

  
	
  Execution Date:

  	
  By:

  	
    Stone Street 1998 Realty, L.L.C., its
  general partner

  
	
   

  	
   

  	
   

  
	
  March 22, 2005

  	
   

  	
  By:

  	
    /s/
  Thomas D. Ferguson

  	
   

  
	
   

  	
   

  	
    Name: Thomas
  D. Ferguson

  
	
   

  	
   

  	
    Title:   Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GHJP, INC.,
  a Delaware corporation

  
	
  Execution
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  March 22, 2005

  	
   

  	
  By:

  	
  /s/ Gary M. Holloway, Sr.

  	
   

  

 

37

 

	
  Gary
  M. Holloway

  	
   

  	
   

  	
  /s/ Gary M. Holloway, Sr.

  	
   

  
	
  Name: Gary M.
  Holloway

  	
   

  	
   

  	
  GARY
  M. HOLLOWAY, SR.

  	
   

  

 

38

 

	
  Bruce
  F. Robinson

  	
   

  	
   

  	
  /s/
  Bruce F. Robinson

  	
   

  
	
  Name: Bruce F. Robinson

  	
   

  	
   

  	
  BRUCE F. ROBINSON

  	
   

  

 

39

 

	
  Frank
  Tropea

  	
   

  	
   

  	
  /s/
  Frank Tropea

  	
   

  
	
  Name: Frank Tropea

  	
   

  	
   

  	
  FRANK TROPEA

  	
   

  

 

40

 

	
  Joseph
  M. Coyle

  	
   

  	
   

  	
  /s/
  Joseph M. Coyle

  	
   

  
	
  Name: Joseph M. Coyle

  	
   

  	
   

  	
  JOSEPH M. COYLE

  	
   

  

 

41

 

	
  Michael
  Mayock

  	
   

  	
   

  	
  /s/
  Michael Mayock

  	
   

  
	
  Name: Michael Mayock

  	
   

  	
   

  	
  MICHAEL MAYOCK

  	
   

  

 

42

 

	
  Louis
  Battagliese

  	
   

  	
   

  	
  /s/
  Louis Battagliese

  	
   

  
	
  Name: Louis Battagliese

  	
   

  	
   

  	
  LOUIS BATTAGLIESE

  	
   

  

 

43

 

	
  Cathy
  Coyle

  	
   

  	
   

  	
  /s/
  Cathy Coyle

  	
   

  
	
  Name: Cathy Coyle

  	
   

  	
   

  	
  CATHY COYLE

  	
   

  

 

44

 

	
  Robert
  DiGiuseppe

  	
   

  	
   

  	
  /s/
  Robert DiGiuseppe

  	
   

  
	
  Name: Robert DiGiuseppe

  	
   

  	
   

  	
  ROBERT DIGIUSEPPE

  	
   

  

 

45

 

	
  Denise
  Hubley

  	
   

  	
   

  	
  /s/
  Denise Hubley

  	
   

  
	
  Name: Denise Hubley

  	
   

  	
   

  	
  DENISE HUBLEY

  	
   

  

 

46

 

	
  David
  Forrest

  	
   

  	
   

  	
  /s/
  David Forrest

  	
   

  
	
  Name: David Forrest

  	
   

  	
   

  	
  DAVID FORREST

  	
   

  

 

47

 

	
  Michael
  Maher

  	
   

  	
   

  	
  /s/
  Michael Maher

  	
   

  
	
  Name: Michael Maher

  	
   

  	
   

  	
  MICHAEL MAHER

  	
   

  

 

48

 

	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  STATE
  COLLEGE INTERMEDIATE, LLC, a Delaware limited liability
  company 

  
	
  Execution
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  March 22, 2005

  	
   

  	
  By:

  	
  /s/ Joseph M. Macchione

  	
   

  
	
   

  	
   

  	
  Name: Joseph M.
  Macchione

  	
   

  
	
   

  	
   

  	
  Title: Vice
  President and Secretary

  
	
   

  	
   

  
	
   

  	
  GMH
  COMMUNITIES, LP, a Delaware limited partnership

  
	
   

  	
   

  
	
  Execution Date:

  	
  By:

  	
  GMH Communities
  GP Trust, its general partner

  
	
   

  	
   

  	
   

  
	
  March 22, 2005

  	
   

  	
  By:

  	
  /s/ Joseph M. Macchione

  	
   

  
	
   

  	
   

  	
  Name: Joseph M.
  Macchione

  	
   

  
	
   

  	
   

  	
  Title: Secretary

  

 

49

 

EXHIBIT
A

 

Land

 

 

EXHIBIT B

 

Form of
Assignment and Assumption of Partnership Interests

 

ASSIGNMENT AND ASSUMPTION OF PARTNERSHIP INTERESTS

 

THIS
ASSIGNMENT AND ASSUMPTION OF PARTNERSHIP INTERESTS (the “Assignment
and Assumption”) is made and entered into as of                          ,
2005 (the “Assignment Date”) by and among                      ,
a                                                   ,
                            ,
a                                                   ,
and                             ,
a                                                   
(collectively, “Assignor”), and                                     ,
a                                
(“Assignee”).

 

FOR VALUE
RECEIVED, Assignor hereby grants, conveys, sells, assigns,
releases and transfer to Assignee all of Assignor’s right, title and interest
as a partner of W9/JP-M Real Estate Limited Partnership, a Delaware limited
partnership (the “Partnership”), together with all of Assignor’s right,
title and interest in, to and under that certain Amended and Restated Agreement
of Limited Partnership dated as of March 4, 2004 (the “Partnership
Agreement,” and Assignor’s rights and obligations under the Partnership
Agreement, and Assignor’s entire interest in the Partnership including, without
limitation, the right to receive distributions, the “Partnership Interest”).

 

TO HAVE
AND TO HOLD the same unto Assignee, its legal
representatives, heirs, successors and assigns forever, subject, however, to
the terms, covenants, conditions and provisions contained in the Partnership
Agreement.

 

Assignee
hereby assumes the Partnership Interest from and after the Assignment Date and
agrees, for the benefit of Assignor and other party(ies) to the Partnership
Agreement, to perform and discharge all obligations and duties of Assignor
under the Partnership Agreement from and after the Assignment Date.

 

Assignor
represents, warrants and covenants that (i) Assignor is the sole owner of
the Partnership Interest and has not previously assigned, pledged, transferred
or encumbered the Partnership Interest, and (ii) Assignor has the full
authority and right to sell, transfer and assign the Partnership Interest to
Assignee.

 

 

IN
WITNESS WHEREOF, Assignor and Assignee have executed this
Assignment and Assumption as of the Assignment Date.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ASSIGNEE:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Schedule 1

 

1.                                       Bankruptcy/Default/Workout History – A detailed narrative of
any bankruptcy filings, foreclosure proceedings or significant loan
modifications involving Seller.  If no
such events have occurred, please provide a statement to that effect.

 

2.                                       Financial Information – Current, audited (if available)
financial statements for the Partnership.

 

3.                                       Property Level Information – Originals or legible copies of
the following property level information:

 

a.                                       A
current title report for each parcel comprising the Property issued by a
national title insurance company, together with complete legible copies of all
documents reference therein.

b.                                      ALTA
as-built surveys and legal descriptions of each parcel comprising the Property
in insurable form.

c.                                       Real
estate tax bills for each parcel comprising the Property for the three most
recently ended tax years and, the extent available, for the current tax
year.  Also, the most recent tax
assessment for each parcel comprising the Property, any current or threatened
betterment assessments, and complete files on any pending tax appeal
proceedings.

d.                                      A
detailed listing of all capital expenditures on the Property made during the
last three years.

e.                                       All
existing and proposed leases, lease proposals and standard lease forms.

f.                                         All
service contracts, management agreements, leasing agreements, reciprocal
easement and/or operating agreements, common area maintenance agreements,
option agreements, land purchase agreements and other agreements relating to
the Property, including all amendments thereto.

g.                                      Any
environmental, asbestos, lead paint, engineering and other physical reports of
the Property in the Partnership’s possession or obtainable by the Partnership.

h.                                      Any
appraisals of the Property completed within the past three years.

i.                                          Operating
statements for the Property for the two most recently ended calendar years, and
operating statements for the Property through the most recently ended calendar
month of the current calendar year. 
Audited financial statements for the Property (if available) for the
three most recently ended calendar years.

j.                                          Rent-rolls
for the Property for the past three months, identifying any rental concessions
currently in effect.

k.                                       A
schedule of all licenses, permits (including grading, building and other
permits for any work currently in progress), certificates of occupancy, etc.
for the Property currently in effect together with copies thereof and of all
amendments thereto.

 

 

l.                                          Zoning
compliance letters of governmental authorities and/or similar evidence that the
Property are in compliance with zoning, subdivision and other land use
requirements.

m.                                    Utility
bills for the Property for the past twenty-four months, which will be made
available on site.

n.                                      An
inventory of all personal property at the Property.

o.                                      Complete
files and details on any pending or threatened litigation at or affecting the
Property.

p.                                      The
current year’s operating, leasing and capital budget for the Property and a
proposed operating, leasing and capital budget for the first 12 months after
closing.

q.                                      As-built
plans and specifications for the Property together with a full set of soil
reports.

r.                                         An
incident report for the Property for the past twenty-four months.

s.                                       A
description of all loans currently secured by the Property, together with
copies of the loan documents.

t.                                         A
list of names of all architects and engineers and all major subcontractors,
materialmen and suppliers used in construction and development of the Property,
to the best of the Partnership’s capability.

u.                                      Loss
runs for any and all insurance claims for the history of the Property.

 

 

SCHEDULE 2

 

	
  GENERAL PARTNERS

  	
   

  	
  PERCENTAGE
  INTERESTS

  	
   

  
	
  1.     W9/JP-M GEN-PAR, INC.

  	
   

  	
  0.20

  	
  %

  
	
  2.     GHJP, INC.

  	
   

  	
  1.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  LIMITED PARTNERS

  	
   

  	
  PERCENTAGE INTERESTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.     WHITEHALL
  STREET REAL ESTATE LIMITED PARTNERSHIP IX

  	
   

  	
  84.8

  	
  %

  
	
  2.     STONE STREET
  W9/JP-M CORP.

  	
   

  	
  0.202

  	
  %

  
	
  3.     STONE STREET
  REAL ESTATE FUND 1998, L.P.

  	
   

  	
  2.59

  	
  %

  
	
  4.     BRIDGE STREET
  REAL ESTATE FUND 1998, L.P.

  	
   

  	
  2.208

  	
  %

  
	
  5.     GARY M.
  HOLLOWAY, SR.

  	
   

  	
  6.9435

  	
  %

  
	
  6.     BRUCE F.
  ROBINSON

  	
   

  	
  0.522

  	
  %

  
	
  7.     FRANK TROPEA

  	
   

  	
  0.288

  	
  %

  
	
  8.     JOSEPH M. COYLE

  	
   

  	
  0.225

  	
  %

  
	
  9.     MICHAEL MAYOCK

  	
   

  	
  0.18

  	
  %

  
	
  10.   LOUIS
  BATTAGLIESE

  	
   

  	
  0.18

  	
  %

  
	
  11.   CATHY COYLE

  	
   

  	
  0.522

  	
  %

  
	
  12.   ROBERT DIGIUSEPPE

  	
   

  	
  0.072

  	
  %

  
	
  13.   DENISE HUBLEY

  	
   

  	
  0.0297

  	
  %

  
	
  14.   DAVID FORREST

  	
   

  	
  0.027

  	
  %

  
	
  15.   MICHAEL MAHER

  	
   

  	
  0.0108

  	
  %Exhibit 10.3

 

CONTRIBUTION
AGREEMENT

 

by and among

 

GMH
Communities, LP,

a Delaware limited partnership,

 

Gary M.
Holloway, Sr.

 

Bruce F.
Robinson,

 

Joseph M.
Coyle,

 

Robert
DiGiuseppe,

 

and

 

Denise
Hubley

 

 

Dated as of March 22, 2005

 

 

IN MAKING AN INVESTMENT DECISION INVESTORS
MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING,
INCLUDING THE MERITS AND RISKS INVOLVED. THE SECURITIES REFERENCED HEREIN HAVE
NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY
AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE
ACCURACY OR ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

 

THESE SECURITIES ARE SUBJECT TO RESTRICTIONS
ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS
PERMITTED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE APPLICABLE
STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.
INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISK
OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

 

CONTRIBUTION
AGREEMENT

 

This Contribution Agreement (“Agreement”) is entered into and
shall be effective as of this 22nd day of March, 2005 (“Effective Date”), by
and among GMH Communities, LP, a Delaware limited partnership (the “Acquiror” or “GMH
Communities”), Gary M. Holloway, Sr. (“Gary”),
Bruce F. Robinson (“Bruce”), Joseph M. Coyle (“Joseph”), Robert DiGiuseppe (“Robert”) and Denise Hubley (“Denise”).  Gary, Bruce, Joseph, Robert and Denise are
sometimes collectively referred to herein as the “Contributors”
and each individually as a “Contributor.”

 

Background

 

A. 
Each Contributor is the owner of a membership interest in WHGMH Realty,
LLC, a Delaware limited liability company (the “Acquired
Company”), in the percentage amounts set forth on Exhibit A
attached hereto.  The membership interest
of each Contributor in the Acquired Company shall be referred to in this
Agreement as a “Membership Interest” and
collectively as the “Membership Interests.”

 

B.  Acquiror
is the operating partnership of the REIT (as hereinafter defined).

 

C. 
Each Contributor, as part of an integrated transaction involving various
other members of the Acquired Company, wishes to contribute his or her
Membership Interest to Acquiror, and Acquiror wishes to accept such Membership
Interest in accordance with the terms and conditions set forth in this
Agreement.  The various other members of
the Acquired Company intend to transfer their respective membership interests
to Acquiror for cash in accordance with the terms and condition of a separate
agreement entitled Agreement for Sale of Membership Interests dated as of the
Effective Date.

 

Agreement

 

NOW, THEREFORE, for and in consideration of
the mutual covenants and agreements contained in this Agreement, and for other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, intending to be legally bound, the parties agree as
follows:

 

1.                                      Definitions;
Usage.

 

(a)  In
addition to the terms defined in the introductory paragraph and Background section of
this Agreement, the initially capitalized terms set forth below shall have the
following meanings:

 

(i)                                     “Accredited Investor” has the meaning
set forth in Regulation D promulgated under the Securities Act.

 

 

(ii)                                  “Affiliate”
shall mean with respect to any Person (i) any other Person that directly or
indirectly through one or more intermediaries controls or is controlled by or
is under common control with such Person, (ii) any other Person owning or
controlling ten percent (10%) or more of the outstanding voting securities of
or other ownership interests in such Person, (iii) any officer, director or
partner of such Person, or (iv) if such Person is an officer, director or
partner, any other company for which such Person acts in any such capacity.

 

(iii)                               “Claim”
means any and all suits, actions, proceedings, investigations, demands, claims,
liabilities, fines, penalties, liens, judgments, losses, injuries and damages.

 

(iv)                              “Closing”
means the consummation of the transactions contemplated by this Agreement.

 

(v)                                 “Closing
Date” means March 22, 2005.

 

(vi)                              “Closing
Documents” shall mean all the documents to be executed and
delivered by the parties at Closing.

 

(vii)                           “Code”
means the U.S. Internal Revenue Code of 1986, as amended.

 

(viii)                        “Common
Shares” means the common shares of beneficial interest of the
REIT, $0.001 par value (or such other common shares of beneficial interest of
the REIT that are then currently traded on a national securities exchange).

 

(ix)                                “Contribution
Consideration” has the meaning set forth in Section 3(a).

 

(x)                                   “Informational Materials” has the
meaning set forth in Section 5(a).

 

(xi)                                “Knowledge”
shall mean the actual, conscious (and not implied or constructive) knowledge on
the Effective Date and on the Closing Date, as applicable, without
investigation or inquiry.

 

(xii)                             “Non-Recognition
Code Provisions” has the meaning set forth in Section 7(a)(i).

 

(xiii)                          “Non-Taxable
Disposition Period” shall mean the five (5) year period
commencing on the Closing Date and ending on the fifth anniversary of the
Closing Date, as such period may be sooner terminated in accordance with Section 7.

 

(xiv)                         “OP
Unit” means a unit of limited partnership interest in GMH
Communities.

 

(xv)                            “Partnership
Agreement” means the Second Amended and Restated Agreement of
Limited Partnership of GMH Communities, LP, dated as of November 2, 2004.

 

 

(xvi)                         “Person”
shall mean any individual, partnership, corporation, limited liability company,
trust or other legal entity and any governmental authority, agency or body.

 

(xvii)                      “Property”
shall mean Nittany Crossing Apartments, a legal description of which is
attached to this Agreement as Exhibit B.

 

(xviii)                   “REIT”
means GMH Communities Trust, a Maryland real estate investment trust. The REIT controls
the sole general partner of GMH Communities, and all
references in this Agreement to the “REIT GP”
means such sole general partner.

 

(xix)                           “SEC”
means the Securities and Exchange Commission.

 

(xx)                              “Securities
Act” means the Securities Act of 1933, as amended.

 

(xxi)                           “Tax-Related
Event” has the meaning set forth in Section 7(b)(i).

 

(xxii)                        “Tax-Related
Notice” has the meaning set forth in Section 7(b)(i).

 

(b)  References
to this “Agreement” shall mean this Agreement, including all amendments,
modifications and supplements hereto and any exhibits or schedules to any of
the foregoing, and shall refer to this Agreement as the same may be in effect
at the time such reference becomes operative. The words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Agreement as a whole, including
the exhibits and schedules hereto, as the same may from time to time be
amended, modified, restated or supplemented, and not to any particular article,
section, subsection or clause contained in this Agreement. The words “including”
and “include” and other words of similar import shall be deemed to be followed
by the phrase “without limitation.” Wherever from the context it appears
appropriate, each term stated in either the singular or plural shall include
the singular and the plural, and pronouns stated in the masculine, feminine or
neuter gender shall include the masculine, the feminine and the neuter gender.
The captions of the sections of this Agreement are for convenience only and
have no meaning with respect to this Agreement or the rights or obligations of
the parties hereto.

 

2.                                      Contribution
of Contributor Assets.  Subject to
the terms and conditions hereof, each Contributor shall contribute and convey
to Acquiror or its designee, and Acquiror agrees to accept or cause its
designee to accept from each Contributor, all of such Contributor’s right,
title and interest in and to his or her Membership Interest.

 

3.                                      Contribution
Consideration.

 

(a)  In
consideration of the contribution of the Membership Interest by each
Contributor, Acquiror at the Closing shall issue a number of OP Units to each Contributor
equal to the cash value of the LP Interests of such Contributor as contributed
to the Acquiror; provided that the OP Units shall be valued based on the
average of the closing price of the Common Shares as reported on the New York
Stock Exchange during the period of the most recent ten (10) trading days,
ending on the last trading day before the Closing Date.  Such consideration shall be referred to in
this Agreement as the “Contribution Consideration.”  If the determination of the

 

 

Contribution Consideration results in a fractional number of OP Units
to be delivered to each Contributor, Acquiror shall round that fraction up to
the nearest whole number of OP Units.

 

(b)  The
OP Units shall be redeemable for Common Shares or cash (or a combination
thereof) in accordance with the procedures described in the Partnership
Agreement. Each Contributor acknowledges that the OP Units will not be
certificated and that, therefore, the issuance of the OP Units shall be
evidenced by a Schedule of Partners to be attached to the Partnership
Agreement, as such schedule may be updated from time to time by the Acquiror
in accordance with the terms of the Partnership Agreement.  Each Contributor shall be admitted to Acquiror
as a limited partner of Acquiror upon execution of such documents as are
required to be executed by new limited partners under the terms of the Partnership
Agreement, and upon the approval of the admission of each Contributor as a new
limited partner by the REIT GP.

 

4.                                      Federal
Income Tax Treatment.  Contributors
and Acquiror hereby agree that the contribution of the Membership Interests by
each Contributor to Acquiror in return for OP Units under the terms and
conditions of this Agreement shall be treated as a nonrecognition transaction
under Section 721(a) of the Code for Federal income tax purposes and
reported consistently therewith for tax and financial accounting purposes
unless otherwise required by applicable law.

 

5.                                      OP
Units.

 

(a) 
Each Contributor hereby acknowledges and agrees that the ownership of OP
Units by him or her and his or her rights and obligations as a limited partner
of Acquiror (including the right to transfer, encumber, pledge and exchange OP
Units) shall be subject to all of the express limitations, terms, provisions
and restrictions set forth in the Partnership Agreement.  Each Contributor acknowledges that Acquiror
made available to him or her, and he or she has reviewed, prior to the date
hereof, (i) the Partnership Agreement and (ii) the charter documents and bylaws
of the REIT (all such materials, collectively, the “Informational
Materials”), and he or she has otherwise had an opportunity to
conduct a due diligence review of the affairs of Acquiror and the REIT and he or
she has been afforded the opportunity to ask questions of, and receive
additional information from, representatives of Acquiror and the REIT regarding
the business, operations, conditions (financial or otherwise) and the current
prospects of Acquiror and the REIT.

 

(b) 
Each Contributor may only sell, transfer, assign, pledge or encumber, or
otherwise convey any or all of the OP Units delivered to him or her in strict
compliance with the Partnership Agreement, the charter documents of the REIT,
the registration and other provisions of the Securities Act (and the rules
promulgated thereunder), any state securities laws and the rules of the New
York Stock Exchange, in each case as may be applicable.

 

(c)  This
Section 5 shall survive the Closing.

 

 

6.                                      Conditions
Precedent

 

(a)  Contributor’s Conditions Precedent. 
The performance by each Contributor of each of his or her agreements
and obligations under this Agreement, including without limitation the
obligation to complete Closing, is conditioned upon the satisfaction (or such Contributor’s
written waiver) on or prior to the Closing Date of all of the following
conditions:

 

(i)                                     Acquiror’s Representations and Warranties.  The representations and warranties of Acquiror
herein contained shall be true and correct in all material respects on the
Effective Date and on the Closing Date.

 

(ii)                                  Acquiror’s
Performance.  Acquiror shall
have performed, observed and complied with all agreements and obligations
required by this Agreement to be performed, observed and complied with on its
part hereunder, including without limitation delivery of those items required
to be delivered by Acquiror pursuant to Section 11.

 

(b)  Acquiror Conditions
Precedent.  The performance by
Acquiror of all of its agreements and obligations under this Agreement,
including without limitation the obligation to complete Closing, is conditioned
upon the satisfaction (or Acquiror’s written waiver) on or prior to the Closing
Date of all of the following conditions:

 

(i)                                     Contributors’ Representations and Warranties.  The representations and warranties of each Contributor
herein contained shall be true and correct in all material respects on the
Effective Date and on the Closing Date.

 

(ii)                                  Contributor’s
Performance.  Each Contributor shall
have performed, observed and complied with all agreements and obligations
required by this Agreement to be performed, observed and complied with
hereunder, including without limitation delivery of those items required to be
delivered by each Contributor pursuant to Section 11.

 

(iii)                               Execution of
Partnership Agreement. Each Contributor shall have executed such
documents as may be necessary to admit such Contributor as a limited partner to
Acquiror under the terms of the Partnership Agreement.

 

(c)                                  Failure of a
Condition Precedent.  In the
event that on or prior to the Closing Date any of the foregoing conditions
precedent cannot be satisfied on the Closing Date and Contributor or Acquiror,
as the case may be, is not willing to give a written waiver of such condition
precedent, then any Contributor or Acquiror shall have the right to terminate
this Agreement upon written notice of such failure, and this Agreement shall be
deemed terminated without any further act of deed of any party.

 

7.                                      Partnership
Liabilities and Sales of Real Property

 

(a)                                  Disposition
Obligations.  Subject to this Section 7(a),
during the Non-Taxable Disposition Period, Acquiror shall:

 

(i)                                     Use its good faith,
reasonable and diligent efforts to cause any sale or other voluntary
disposition of the Membership Interests (and all assets received in exchange
for

 

 

such Membership Interests in which Acquiror has an adjusted tax basis
substituted from that of such Membership Interests) to qualify for
non-recognition of gain under the Code (for example, by means of exchanges
contemplated under Code Sections 351, 354, 355, 368, 721, 1031 (but only if
there is no “boot”) or 1033), in the manner the Code provides from time to time
(the “Non-Recognition Code Provisions”);
provided, however, that if Acquiror is unable, after using its good faith,
reasonable and diligent efforts, to structure any such sale or other
disposition in a manner that qualifies for non-recognition under the Code, then
Acquiror shall be free in its sole and absolute discretion, without any
liability whatsoever hereunder or otherwise to any Contributor, to cause any
sale or other voluntary disposition of the Membership Interests (and all assets
received in exchange for such Membership Interests in which Acquiror has an
adjusted tax basis substituted from that of such Membership Interests) in a
manner that does not qualify for non-recognition of gain under the Code;

 

(ii)                                  Cause the Acquired
Company, by virtue of its rights as a limited partner (if any) to consent to
any sale or transfer of the Property by the Acquired Company contained in the
limited partnership agreement of the Acquired Company, to use its good faith,
reasonable and diligent efforts in any sale or other voluntary disposition
(other than through a deed in lieu of foreclosure, a foreclosure action, or an
act of eminent domain) of the Property (and all assets received in exchange for
such Property in which the Acquired Company has an adjusted tax basis
substituted from that of such Property) to qualify for non-recognition of gain
under the Non-Recognition Code Provisions; provided, however, that if the
Acquired Company is unable, after using its good faith, reasonable and diligent
efforts, to structure any such sale or other disposition in a manner that
qualifies for non-recognition of gain under the Non-Recognition Code Provisions,
then Acquiror’s obligations hereunder shall cease in respect of the sale or
other voluntary disposition of the Property (and all assets received in
exchange for such Property in which the Acquired Company has an adjusted tax
basis substituted for that of such Property) by the Acquired Company without
any liability whatsoever hereunder or otherwise to any Contributor;

 

(iii)                               Use its good faith,
reasonable and diligent efforts to avoid a distribution of property that would
cause Gary to recognize income or gain in excess of $250,000 pursuant to the
provisions of either or both of Code Sections 704(c)(1)(B) and 737, provided,
further, that, if Acquiror is unable, after using its good faith, reasonable
and diligent efforts, to structure any disposition of property in a manner that
will not cause Gary to recognize income or gain in excess of $250,000 pursuant
to the provisions of either or both of Code Sections 704(c)(1)(B) and 737, then
Acquiror shall be free in its sole and absolute discretion, without any
liability whatsoever hereunder or otherwise to Gary, to complete the disposition
of property in a manner that will cause Gary to recognize income or gain in
excess of $250,000 pursuant to the provisions of either or both of Code
Sections 704(c)(1)(B) and 737;

 

(iv)                              As
long as Gary remains as a partner of Acquiror, Acquiror agrees to
utilize the “traditional method,” without curative allocations (as contemplated
for in the Partnership Agreement), of allocating gain and depreciation under
Code Section 704(c) for the Membership Interests or Property, if
applicable.

 

 

In all events, the Non-Taxable Disposition
Period shall terminate, and the provisions of this Section 7 only shall
automatically be rendered null and void and shall be of no further force or
effect, as of the occurrence of an amendment or other material revision to Code
Section 1031 or the Treasury Regulations promulgated thereunder, which
amendment or revision materially and, with respect to the REIT and Acquiror,
adversely alters the tax-treatment of “like-kind” exchanges of real estate
pursuant to such provisions.

 

(b)                                 Notice of
Certain Transactions.  In the
event, on or before the expiration of the Non-Taxable Disposition Period, Acquiror
expects any of the following (each, a “Tax-Related Event”)
to occur: (A) a post-Closing sale of the Property by the Acquired Company; (B)
an attempt by Acquiror to effect a transfer of Membership Interests as
permitted by Section 7(a)(i) above; or (C) an attempt by the Acquired
Company to effect a transfer of the Property as permitted in Section 7(a)(ii)
above, but the terms of Section 1031 of the Code or the regulations promulgated
thereunder have changed such that the mechanics for implementing a tax-deferred
exchange of real estate are materially and adversely altered (whether with
respect to the timing required to identify and close upon an exchange property
or otherwise) from those mechanics in place as of the Effective Date, and, in
any case, provided that the obligations of Acquiror under Section 7 shall
not have otherwise terminated by the terms of such Section, then Acquiror shall
give written notice of such Tax-Related Event (a “Tax-Related
Notice”) to each Contributor as soon as practicable after the
occurrence of such event becomes reasonably likely, or, if later, on the date
on which Acquiror is, in the reasonable judgment of its securities counsel,
legally permitted, under applicable federal and state securities laws and
regulations, and the rules and regulations of the New York Stock Exchange, to
disseminate such Tax-Related Notice to each Contributor.

 

(c)           The
provisions of this Section 7 shall survive the Closing.

 

8.                                      Representations
and Warranties of Contributor.  In
order to induce Acquiror to enter into this Agreement and to complete the
Closing, each Contributor represents and warrants to Acquiror as follows:

 

(a)                                  Accredited
Investor; Experience.  Contributor
is an Accredited Investor.  Contributor
has such knowledge and experience in financial and business matters so as to be
fully capable of evaluating the merits and risks of an investment in the OP
Units and entering into this Agreement. 
Except for the representations and warranties of Acquiror expressly set
forth in this Agreement, Contributor is relying on its own investigations and
assessments in entering into this Agreement.

 

(b)                                 Litigation
and Other Proceedings.  There
is no existing or, to the Knowledge of Contributor, threatened legal action of
any kind involving Contributor which would interfere with the ability of
Contributor to consummate the transactions contemplated by this Agreement.

 

(c)                                  Undisclosed
Liabilities.  To the Knowledge
of Contributor, Contributor does not have any material liabilities or
obligations of any nature, whether accrued, absolute, contingent
or otherwise, that could adversely affect the transactions contemplated hereby.

 

 

(d)                                 Interests.  Contributor is the exclusive and equitable
owner of, and has good title to the Membership Interest, free and clear of any
claims, liens, encumbrances, pledges or security interests.  There are not outstanding restrictions,
options, contracts, calls, commitments or demands of any nature relating to his
or her ownership of the Membership Interest.

 

(e)                                  OP Units.  The OP Units are being acquired by
Contributor with the present intention of holding such OP Units for purposes of
investment, and not with a view towards sale or any other distribution.  Contributor recognizes that he or she may be
required to bear the economic risk of an investment in the OP Units for an
indefinite period of time.  Contributor
has been furnished with the Informational Materials and has read and reviewed
such materials and understands the contents thereof.  Contributor been afforded the opportunity to
ask questions of those persons they consider appropriate and to obtain any
additional information they desire in respect of the OP Units and the business,
operations, conditions (financial and otherwise) and current prospects of Acquiror
and the REIT.  Contributor has consulted
its own financial, legal and tax advisors with respect to the economic, legal
and tax consequences of delivery of the OP Units.

 

9.                                      Representations
and Warranties of Acquiror.  In
order to induce each Contributor to enter into this Agreement and to complete
the Closing, Acquiror represents and warrants to the Contributors as follows:

 

(a)                                  Organization;
Experience.  Acquiror is a
limited partnership, validly existing and in good standing under the laws of
Delaware with full power and authority and legal right to enter into and
perform its obligations under this Agreement and to carry on its business in
the manner and in the locations in which such business has been and is now
being conducted by it. Acquiror has made all necessary filings relating to its
existence and doing business and is qualified to do business in those
jurisdictions in which it is required by law to be so qualified, and it neither
maintains nor conducts business in any other state. Acquiror is a sophisticated
and experienced real estate investor fully capable of assessing the risks and
rewards of entering into this Agreement. 
Except for the representations and warranties of each Contributor
expressly set forth in this Agreement, Acquiror is relying on its own
investigations and assessments in entering into this Agreement.

 

(b)                                 Due
Authorization and Execution.  This
Agreement has been duly authorized, executed and delivered by Acquiror, and all
consents and approvals required under the governing documents of Acquiror or
any entity holding an interest in Acquiror necessary for Acquiror to enter into
and perform its obligations under this Agreement have been obtained.  No consent, approval or waiver of any other
third party is required for the consummation of the transactions contemplated
by this Agreement.

 

(c)                                  Undisclosed
Liabilities.  To the Knowledge
of Acquiror, Acquiror does not have any material liabilities or obligations of
any nature, whether accrued, absolute, contingent or
otherwise, that could materially adversely affect the transactions contemplated
hereby.

 

 

(d)                                 Litigation
and Other Proceedings.  There
is no existing or, to the Knowledge of Acquiror, threatened legal action of any
kind involving Acquiror which would interfere with the ability of Acquiror to
consummate the transactions contemplated by this Agreement.

 

10.                               Indemnities

 

(a)                                  Contributor’s
Indemnities.  Provided Closing takes
place, each Contributor shall, severally not jointly, indemnify, protect and
hold harmless Acquiror against any Claim arising in connection with any (a)
breach or inaccuracy of any representation or warranty made by him or her,
provided that with respect to a breach or inaccuracy of any representation or
warranty Acquiror shall have given notice of such breach or inaccuracy within
six (6) months following the Closing Date to such Contributor, and (b) failure
by such Contributor in any material respect to observe or perform when due any
agreement or obligation contained herein or in any Closing Document, provided
notice of a Claim is provided to such Contributor within six (6) months
following (i) the Closing, or (ii) the date on which Acquiror first acquires Knowledge
of a Claim if the Claim relates to an agreement or obligation that survives the
Closing.

 

(b)                                 Acquiror’s Indemnities.

 

(i)                                     Provided Closing
takes place, Acquiror shall indemnify, protect and hold harmless each Contributor
against any Claim suffered or incurred by such Contributor in connection with
any (a) breach or inaccuracy of any representation or warranty of Acquiror
contained herein, provided that with respect to a breach or inaccuracy of any
representation or warranty Contributor shall have given notice of such breach
or inaccuracy within six (6) months following the Closing Date to Acquiror, or (b)
failure by Acquiror to observe or perform when due any agreement or obligation
contained herein or in any Closing Document, provided notice of a Claim is
provided to Acquiror within six (6) months following (i) the Closing, or (ii)
the date on which such Contributor first acquires Knowledge of a Claim if the
Claim relates to an agreement or obligation that survives the Closing.  Notwithstanding the foregoing, Acquiror shall
have no indemnification obligation with respect to Sections 7(a)(i), 7(a)(ii) and 7(a)(iv) of this Agreement.

 

(c)                                  Survival.  This Section 10 shall survive
Closing.

 

11.                               Closing

 

(a)                                  Closing Date.  The Closing shall be held on the Closing Date
at a time and place as directed by Acquiror upon notice to each Contributor
given at least one (1) business day prior to the date of Closing.

 

(b)                                 Closing
Documents.

 

(i)                                     At Closing, each Contributor
shall deliver and, as applicable, execute the following:

 

 

(1)  a duly executed assignment and assumption agreement and
conveyance document to Acquiror, reasonably acceptable to Acquiror, in respect
of the Membership Interests;

 

(2)  to
the extent such Contributor is not already a limited partner of the Acquiror, a
duly executed counterpart signature page to the Partnership Agreement as
provided by Acquiror; and

 

(3)  such certificates, disclosures and reports as are reasonably
required by applicable state and local law in connection with the contribution
of the Membership Interests or by Acquiror to effectuate the transactions
contemplated hereby.

 

(ii)                                  At Closing, Acquiror
shall deliver and, as applicable, execute the following:

 

(1)  a duly executed assignment and assumption agreement and
conveyance document from each Contributor to Acquiror, reasonably acceptable to
Acquiror, in respect of the Membership Interests; and

 

(2)  such certificates, disclosures and reports as are reasonably
required by applicable state and local law in connection with the contribution
of the Membership Interests or by any Contributor to effectuate the
transactions contemplated hereby.

 

(c)                                  Taxes.  Each party shall bear the cost of its own
sales, partnership, transfer or other taxes which may be due in connection with
this Agreement.

 

12.                               Default

 

(a)                                  Acquiror’s
Default.  If a Contributor
complies with all of his or her obligations under this Agreement, and at the
time of Closing Acquiror defaults in its obligation to complete such Closing
hereunder, then such Contributor shall have, as his or her sole and exclusive
remedy, the right to terminate this Agreement. Upon such termination, Acquiror
shall reimburse each Contributor for all of such Contributor’s actual,
reasonable out-of-pocket costs incurred with the negotiation and performance of
this Agreement, and each of the Contributors and Acquiror shall be released
from all further liability and obligations hereunder.

Each Contributor acknowledges that his or her right to terminate this
Agreement and recover his or her out-of-pocket costs shall be the sole remedy
available to him or her in the event of any default by Acquiror hereunder, and each
Contributor hereby waives any and all other rights and remedies.

 

(b)                                 Contributor’s
Default.  If a Contributor
defaults in the observance or performance of any of his or her agreements or
obligations hereunder, Acquiror shall have, in addition to all other rights and
remedies available at law or in equity, the right of specific performance of
this Agreement.

 

 

13.                               Brokers.  Each
Contributor and Acquiror represent and warrant to each other that he, she or it
has not engaged, hired or utilized any parties or persons that are due an agent’s,
broker’s or finder’s fee in connection with this transaction, and each of the Contributors
and Acquiror shall defend, indemnify and save each other harmless from all
Claims with respect to such fees and commissions. This Section shall
survive Closing.

 

14.                               Notices.  Any
notices, requests, claims, demand and other communications required or
permitted to be given hereunder shall be given in writing and shall be
delivered (a) in person, (b) by certified mail, postage prepaid, return receipt
requested, (c) by a commercial overnight courier that guarantees next day
delivery and provides to the sender a delivery receipt or (d) by legible
facsimile (followed by hard copy delivered in accordance with preceding
subsections (a)-(c)). Any notice shall be effective only upon receipt (or
refusal by the intended recipient to accept delivery). Such notices shall be
addressed as follows:

 

Contributor:

 

Gary M. Holloway, Sr.

c/o GMH
Communities Trust

10 Campus Boulevard

Newtown Square, PA 19073

Fax: 610-355-8001

 

Bruce F. Robinson

c/o GMH
Communities Trust

10 Campus Boulevard

Newtown Square, PA 19073

Fax: 610-355-8001

 

Joseph M. Coyle

c/o GMH Communities
Trust

10 Campus Boulevard

Newtown Square, PA 19073

Fax: 610-355-8001

 

Robert DiGiuseppe

c/o GMH
Communities Trust

10 Campus Boulevard

Newtown Square, PA 19073

Fax: 610-355-8001

 

Denise Hubley

c/o GMH
Communities Trust

10 Campus Boulevard

Newtown Square, PA 19073

Fax: 610-355-8001

 

 

Acquiror:

 

GMH Communities, LP

10 Campus Boulevard

Newtown Square, PA 19073

Attention: Joseph M. Macchione

Fax: 610-355-8480

 

or to such other
address as any party may from time to time specify in writing to the other parties.

 

15.                               Miscellaneous

 

(a)                                  Confidentiality
of Informational Materials. 
Each Contributor acknowledges and agrees that the REIT is subject to the
reporting requirements set forth under the Securities Exchange Act of 1934, as
amended.  Except as otherwise required by
law and except to the extent any such material or information is already
publicly available, each Contributor shall keep confidential the transactions
contemplated by this Agreement; provided however, a Contributor may disclose
such materials to its attorneys, accountants or other advisors in connection
with this Agreement. Furthermore, each Contributor hereby acknowledges that Acquiror
and the REIT shall have the right to disclose the terms and conditions of this
Agreement by describing same in any and all necessary filings with the SEC.

 

(b)                                 Entire
Agreement.  This Agreement
sets forth all of the agreements, representations, warranties and conditions of
the parties hereto with respect to the subject matter hereof, and supersedes
all prior or contemporaneous discussions, letters of intent, agreements,
representations, warranties and conditions. This Agreement contains all
representations, warranties and covenants made by each Contributor and Acquiror,
and constitutes the entire understanding between the parties hereto, with
respect to the subject matter hereof. Any correspondence, memoranda or
agreements between the parties relating to the subject matter hereof are not
binding on or enforceable against any party, and are superseded and replaced in
total by this Agreement.

 

(c)                                  Amendments.  This Agreement may be amended or modified
only by a written instrument signed by each Contributor and Acquiror.

 

(d)                                 Time.  Time is of the essence in the performance of
each of the parties’ respective agreements and obligations contained herein.

 

(e)                                  Closing
Costs.  Except in connection
with a default hereunder, each party to this Agreement shall bear the costs and
expenses incurred by it, including fees of its accountants and attorneys, in
connection with this Agreement and the transaction contemplated hereunder.

 

(f)                                    Attorneys’
Fees.  If any party hereto fails to
perform any of his, her or its obligations under this Agreement or if any
dispute arises between the parties hereto concerning the meaning or interpretation
of any provision of this Agreement, then the defaulting party or the

 

 

party not prevailing in such dispute, as the case may be, shall pay any
and all costs and expenses incurred by the other party on account of such
default and/or in enforcing or establishing its rights hereunder, including,
without limitation, court costs (including costs of any trial or appeal
therefrom) and reasonable attorneys’ fees and disbursements.

 

(g)                                 Governing
Law.  This Agreement and all
issues arising hereunder shall be governed by the laws of the State of Delaware,
regardless of the conflicts of laws principles thereof.

 

(h)                                 Waiver of
Trial by Jury.  EACH PARTY
HEREBY WAIVES, IRREVOCABLY AND UNCONDITIONALLY, TRIAL BY JURY IN ANY ACTION
BROUGHT ON, UNDER OR BY VIRTUE OF OR RELATING IN ANY WAY TO THIS AGREEMENT OR
ANY OF THE DOCUMENTS EXECUTED IN CONNECTION HEREWITH, THE PROPERTY, OR ANY
CLAIMS, DEFENSES, RIGHTS OF SET-OFF OR OTHER ACTIONS PERTAINING HERETO OR TO
ANY OF THE FOREGOING.

 

(i)                                     Successors and Assigns; No Third-Party Beneficiary.  The terms, conditions and covenants of this
Agreement shall be binding upon and shall inure to the benefit of the parties
and their respective successors and permitted assigns.  No party hereto shall have any right to assign
or otherwise transfer this Agreement or its rights hereunder without the prior
written consent of the other parties hereto; provided, however, that Acquiror
shall at all times have the right to designate an Affiliate to acquire from a Contributor
his or her Membership Interest. The provisions of this Agreement are not
intended to benefit any Person who is not a party to this Agreement.

 

(j)                                     Severability.  If any
provision of this Agreement, or the application thereof to any person, place or
circumstance, shall be held by a court of competent jurisdiction to be invalid,
unenforceable or void, the remainder of this Agreement and such provisions as
applied to other persons, places and circumstances shall remain in full force
and effect.

 

(k)                                  Drafts
Not an Offer to Enter into a Legally Binding Contract.  The parties hereto agree that the submission
of a draft of this Agreement by one party to another is not intended by either
party to be an offer to enter into a legally binding contract with respect to
the purchase and sale of the Membership Interests.  The parties shall be legally bound with
respect to the assignment and acceptance of the Membership Interests pursuant
to the terms of this Agreement only if and when the parties have been able to
negotiate all of the terms and provisions of this Agreement in a manner
acceptable to each of the parties in their respective sole discretion, and each
Contributor and Acquiror have fully executed and delivered to each other a
counterpart of this Agreement.

 

(l)                                     Survival.  Notwithstanding
any presumption to the contrary, all agreements, covenants and conditions
contained in this Agreement which, by their nature, impliedly or expressly
involve observance or performance in any respect after the Closing, or which
cannot be ascertained to have been fully observed or performed until after
Closing, and all representations and warranties of each Contributor and Acquiror
contained in this Agreement

 

 

(but only for a period of six (6) months),
shall survive Closing and shall not merge with any Closing Document.

 

(m)                               Joint
Undertaking.  In addition to
the obligations expressly required to be performed hereunder by each
Contributor and Acquiror, each party agrees to cooperate with the other and to
perform such other acts and to execute, acknowledge and deliver, before and
after the Closing, such other instruments, documents and materials as a party
may reasonably request and as shall be necessary in order to effect the
consummation of the transactions contemplated hereby; provided that no such other
instrument, document or material shall either extend or enlarge the obligations
of the non-requesting party beyond the express undertakings of this Agreement
or shall require or could require the non-requesting party to make any payment
or expend any funds which are not expressly provided for herein.

 

(n)                                 Counterparts;
Facsimile Signatures.  The
parties may execute this Agreement in one or more counterparts, all of which
shall be considered one and the same document. The parties may also execute
this Agreement by the facsimile exchange of executed signature pages.

 

(o)                                 Limitation
of Liability.  No party shall
have any recourse against any past, present or future trustee, shareholder,
partner, member, officer or employee of the other or any of the other’s
Affiliates for any obligation of such party under this Agreement or under any
document executed in connection herewith or pursuant hereto, or for any claim
based thereon or otherwise in respect thereof, whether by virtue of any statute
or rule of law, or by the enforcement of any assessment or penalty or
otherwise, all such liability being expressly waived and released by each party
on its own behalf and on behalf of all parties claiming by, through or under
it.

 

[Signatures Set Forth on the
Following Page]

 

 

In witness
whereof, the parties hereto have entered into this Agreement as of the
Effective Date.

 

 

	
   

  	
  CONTRIBUTOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Gary M. Holloway, Sr.

  	
   

  
	
   

  	
  Gary M. Holloway, Sr.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Joseph M. Coyle

  	
   

  
	
   

  	
  Joseph M. Coyle

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   /s/ Bruce F. Robinson

  	
   

  
	
   

  	
  Bruce F. Robinson

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   /s/ Denise Hubley

  	
   

  
	
   

  	
  Denise Hubley

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    s/ Robert DiGiuseppe

  	
   

  
	
   

  	
  Robert DiGiuseppe

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ACQUIROR:

  
	
   

  	
   

  
	
   

  	
  GMH Communities Property, LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GMH Communities GP Trust, its general

  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Joseph M. Macchione

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Joseph M. Macchione

  
	
   

  	
   

  	
   

  	
  Title: Secretary

  
										

 

 

EXHIBIT A

 

Contributor’s
Membership Interest

 

	
  Gary M. Holloway, Sr.

  	
   

  	
   

  	
  7.615

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bruce F. Robinson

  	
   

  	
   

  	
  0.58

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Joseph M. Coyle

  	
   

  	
   

  	
  0.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert DiGiuseppe

  	
   

  	
   

  	
  0.08

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Denise Hubley

  	
   

  	
   

  	
  0.033

  	
  %

  

 

 

EXHIBIT B

 

[Description of Property]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]