Document:

exv10w42

 

Exhibit 10.42

AGREEMENT OF SALE

BY AND BETWEEN

LAKE WRIGHT PROPERTIES I, LLC

LAKE WRIGHT PROPERTIES II, LLC

TRIDENT PROPERTIES, LLC, and

SOUTHPORT CENTER, LLC,

AS SELLER

AND

ASSET CAPITAL PARTNERS, L.P., OR PERMITTED ASSIGNS,

AS PURCHASER

May 15, 2006

 

 

AGREEMENT OF SALE

     
THIS AGREEMENT OF SALE (“Agreement”) made as of the 15th day of May, 2006 by and between LAKE
WRIGHT PROPERTIES I, LLC, LAKE WRIGHT PROPERTIES II, LLC, TRIDENT PROPERTIES, LLC, and SOUTHPORT
CENTER, LLC, each a Virginia limited liability company (collectively the “Seller”), and ASSET
CAPITAL PARTNERS, L.P., a Delaware limited partnership, its permitted successors and assigns
(“Purchaser”).

RECITALS

     WHEREAS, Seller is the owner, in fee simple, of the real property described as follows:

     (i) Twin Oaks I, located at 5700 Lake Wright Drive, improved with an office building
containing approximately 81,886 net rentable square feet, and all land and parking areas associated
therewith, located in the City of Norfolk, Virginia (“Twin Oaks I”);

     (ii) Twin Oaks II, located at 5800 Lake Wright Drive, improved with an office building
containing approximately 84,749 net rentable square feet, and all land and parking areas associated
therewith, located in the City of Norfolk, Virginia (“Twin Oaks II”);

     (iii) Southport Centre, located at 4525 South Boulevard, improved with an office building
containing approximately 61,594 net rentable square feet, and all land and parking areas associated
therewith, located in the City of Virginia Beach, Virginia (“Southport Centre”); and

     (iv) Lynnhaven Corporate Center I, located at 770 Lynnhaven Parkway, improved with an office
building containing approximately 30,845 net rentable square feet, and all land and parking areas
associated therewith, located in the City of Virginia Beach, Virginia (“Lynnhaven Corporate Center
I”);

together with all improvements, rights, privileges and easements, fixtures, equipment and personal
property on, appurtenant to, attached to, installed or used in connection with the ownership or
operation of the said property or its grounds or amenities, except such personalty which is the
property of the Tenants (as defined below), including, without limitation, (i) all right, title and
interest of Seller in and to any land lying in the bed of any street (whether open or proposed)
adjacent to or abutting or adjoining the land; (ii) all rights, privileges, rights-of-way and
easements appurtenant to and/or benefiting the land, including, without limitation, all development
rights, air rights, water rights and any easements, rights-of-way or other interests in, on, or
under any land, highway, alley, street or right-of-way abutting or adjoining the land; (iii) any
rights of Seller relating to utilities, zoning or other benefits in respect thereof; (iv) all of
Seller’s right, title and interest as landlord in and to the Leases (as defined below), and in and
to all certificates of occupancy, business licenses and other licenses, certificates and
governmental approvals necessary for the operation, use and occupancy of the buildings on the land
(collectively, the “Governmental Approvals”); (v) all fixtures, equipment and personal property of
any nature that is owned by Seller and located at and

 

 

used in connection with the
land and the buildings (the “Personal Property”); and (vi) all right, title and interest of Seller
in and to any architectural, mechanical, electrical and structural plans, studies and related
documents and any warranties relating to the Buildings (collectively, the “Project Plans”) (said
land, buildings, rights, privileges and easements, Personal Property and right, title and interest
in and to the aforesaid Leases, Governmental Approvals and Project Plans being hereinafter
collectively referred to as the “Property”). Twin Oaks I, Twin Oaks II, Southport Centre and
Lynnhaven Corporate Center I are each referred to herein as a “Project” and collectively as the
“Projects”. The buildings located at Twin Oaks I, Twin Oaks, II, Southport Centre and Lynnhaven
Corporate Center I are each referred to herein as a “Building”, and are referred to collectively
herein as the “Buildings”. The land that is associated with Twin Oaks I, Twin Oaks II, Southport
Centre and Lynnhaven Corporate Center I is more particularly referred to herein as the “Land”. The
legal description of the Land for each Project is attached hereto as Exhibit A-1 through
Exhibit A-4; and

     WHEREAS, Seller desires to sell the Property to Purchaser, and Purchaser desires to purchase
the Property from Seller, for the price and upon the terms and conditions hereinafter set forth.

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

     1. Agreement of Purchase and Sale. Seller hereby agrees to sell and convey the
Property to Purchaser, and Purchaser hereby agrees to purchase the Property from Seller, at the
Purchase Price (as hereinafter defined) and upon the terms and conditions hereinafter set forth.
Except as otherwise expressly provided herein, Purchaser must acquire and Seller must sell all of
the Projects or none of the Projects pursuant to this Agreement, and any termination of this
Agreement by Purchaser or Seller shall be deemed a termination of this Agreement with respect to
all of the Projects; provided, however, that should Seller be in default under this Agreement, and
as a result of such default, unable to convey one or more Projects to Purchaser at Closing in
accordance with the terms of this Agreement, Purchaser may elect by delivery of written notice to
Seller to purchase only those Projects which Seller is able to convey in compliance with this
Agreement, and this Agreement shall be deemed modified accordingly.

     2. Title.

          A. Purchaser shall have until 5:00 p.m. local time at the Property on the date which is five
(5) business days prior to the expiration of the Feasibility Period (as defined below) (the
“Title/Survey Review Period”) to obtain a title insurance commitment (the “Title Commitment”) for,
a Survey (the “Survey”) of, the Property and to make written objection to Seller of any exceptions,
defects or conditions shown on the Title Commitment and/or the Survey to which Purchaser objects
(collectively, “Purchaser’s Objections”). Seller shall, within three (3) business days after
Purchaser’s notice to Seller of Purchaser’s Objections, notify Purchaser in writing that: (a)
Seller will cure all or certain of Purchaser’s Objections as of or prior to Closing, or (b) Seller
will not cure all or certain of Purchaser’s Objections. Seller shall have the right, but not the
obligation, to cure Purchaser’s Objections. If Seller fails to deliver the foregoing notice with
respect to all or any of

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Purchaser’s
Objections, Seller shall be deemed to have elected option (b) above with respect to any such
Purchaser’s Objections. If Seller elects, or is deemed to have elected, not to cure any or all of
Purchaser’s Objections, Purchaser may, as Purchaser’s sole and exclusive remedy, (x) waive said
Purchaser’s Objections or (y) only by written notice to Seller given on or prior to the expiration
of two (2) business days after the expiration of Seller’s response period described above,
terminate this Agreement, in which event Escrow Agent shall immediately return the Deposit to
Purchaser, and Seller and Purchaser shall have no further obligations hereunder (except as
otherwise expressly provided herein). Failure by Purchaser to waive such Purchaser’s Objections
shall be deemed Purchaser’s election to terminate this Agreement. All matters not agreed to be
removed by the Title Company and not objected to by Purchaser by notice to Seller or which
Purchaser has waived shall be deemed to be “Permitted Exceptions.”

          B. Notwithstanding anything in this Section 2 to the contrary, Seller shall be
obligated to cure and/or satisfy (a) any mortgage liens (“Mortgage Liens”), mechanics liens, and/or
judgment liens against the Property, and (b) any consensual liens or encumbrances agreed to by
Seller without Purchaser’s consent on or after the Effective Date (collectively, the “Curable
Matters”), which consent may be withheld by Purchaser in its sole discretion.

     3. Purchase Price. The purchase price for the Property (the “Purchase Price”) shall
be Thirty Nine Million Seven Hundred Thousand Dollars ($39,700,000.00). The amount of the Purchase
Price allocated to each Project is set forth on Schedule 3 attached hereto. The Purchase
Price shall be payable on the Closing Date as follows:

          A. In the event Purchaser elects to assume any of the “Existing Loans” in accordance with the
provisions of Section 21, below, that portion of the Purchase Price payable in cash (the “Cash
Portion”) shall be the Purchase Price, reduced by the outstanding principal balance due under each
of the Existing Loans so assumed; and

          B. In the event Seller elects to accept “Units” in Purchaser as all or any portion of the
Purchase Price in accordance with the provisions of Section 22, below, then the Cash Portion shall
be reduced (or further reduced) by the “Unit Value” determined in accordance with Section 22.

          C. In the event Purchaser elects to have all of the Existing Loans prepaid or defeased at
Closing in accordance with the provisions of Section 21, below, and Seller does not elect to accept
Units, the Cash Portion shall be the full amount of the Purchase Price.

     4. Deposit.

          A. Purchaser shall deposit with Fidelity National Title Insurance Company, as escrow agent
(the “Escrow Agent”), within three (3) business days after the execution of this Agreement by
Seller and Purchaser (the “Effective Date”), the amount of Eight Hundred Thousand Dollars
($800,000.00) as a deposit hereunder (the “Deposit”). If Purchaser does not terminate this
Agreement pursuant to Article 6 hereof prior to the date of expiration of the Feasibility Period,
then on or after the expiration of the Feasibility Period, the entire Deposit shall be
nonrefundable except in the event of a default on the part of Seller under this Agreement or as
otherwise specifically stated

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herein. The Deposit shall be held in an interest-bearing account in a money market fund or
other negotiable instrument designated by Purchaser, and all interest earned thereon (a) shall
belong to Purchaser in the event that Purchaser becomes entitled to receive payment of the Deposit
pursuant to the terms of this Agreement and (b) shall belong to Seller in the event that Purchaser
defaults in its obligation to close under the terms of this Agreement, as set forth in Article 13
hereof. At Closing (as hereinafter defined) hereunder, the Deposit, together with all interest
thereon, shall be applied against the Purchase Price.

          B. Should Purchaser at any time on or prior to the expiration of the Feasibility Period elect,
or be deemed to have elected, to terminate this Agreement for any reason, Escrow Agent shall
forthwith and without further direction from Seller disburse the Deposit, together with all
interest earned thereon, to Purchaser. Following expiration of the Feasibility Period without
termination, in the event of receipt from either party of (a) a signed certification, under oath,
that the other party has defaulted in its obligation to purchase or sell the Property pursuant to
the terms of this Agreement and (b) a copy of a letter advising the other party that it has
defaulted in its obligation to purchase or sell the Property pursuant to this Agreement, which
letter shall have been delivered to such other party at least five (5) business days prior to the
date of the certification described in clause (a) above, if the Escrow Agent does not receive an
objection from such other party to the proposed delivery of the Deposit within five (5) business
days after the date of the certification described in clause (a) above, then the Escrow Agent is
hereby authorized to and shall deliver the Deposit to the party requesting same. If the Escrow
Agent does receive an objection within such five (5) business day period or if any other
disagreement or dispute shall arise between any of the parties hereto or any other persons
resulting in adverse claims and demands being made for the Deposit, whether or not litigation has
been instituted, then, and in any such event, the Escrow Agent shall refuse to comply with any
claims or demands on it and shall continue to hold the Deposit until the Escrow Agent receives
either (i) a written notice signed by both Seller and Purchaser directing the delivery of the
Deposit, or (ii) a final order of a court of competent jurisdiction which is not appealable,
entered in a proceeding in which Seller, Purchaser and the Escrow Agent are named as parties,
directing the delivery of the Deposit, in either of which events the Escrow Agent shall then
deliver the Deposit in accordance with said direction.

     5. Closing. Closing on the purchase and sale of the Property (the “Closing”) shall
be held at the office of Escrow Agent, or such other place as may be mutually agreed upon by
Purchaser and Seller. Closing shall take place within thirty (30) days after the expiration of the
Feasibility Period, subject to the other provisions of this Section 5. The day set for Closing is
referred to herein as the “Closing Date.” However, anything in this Agreement to the contrary
notwithstanding, Seller and Purchaser shall each be entitled to extend the Closing Date to enable
the consummation of a loan assumption or defeasance in accordance with the provisions of Section
21, so long as Purchaser and Seller are continuing to diligently pursue in a commercially
reasonable manner all consents, approvals and documentation necessary to achieve such transactions;
provided, however, the Closing Date shall in any event occur on or before August 31, 2006.

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     6. Feasibility Period and Access to Property.

          A. In the event that Purchaser, in its sole discretion, based upon any tests or studies which
it makes or causes to be made, or the review of the documents to be furnished pursuant to Article
9.B. hereof, or the review of any title report obtained by Purchaser, or for any other reason
whatsoever, determines that the acquisition, ownership, use or financing of the Property as
Purchaser intends is not feasible, for any reason or for no reason, then Purchaser shall have the
right to elect to continue or terminate this Agreement by written notice to Seller given not later
than the date which is the later of: (i) thirty (30) days after the Effective Date, and (ii) June
30, 2006 (said period ending on such date being referred to herein as the “Feasibility Period”).
Failure to deliver notice of Purchaser’s election to continue, or delivery of a notice of
termination, shall each be an election to terminate this Agreement, and if Purchaser does thus
terminate this Agreement, the Deposit and all interest accrued thereon, if any, shall be disbursed
to Purchaser by Escrow Agent and the parties shall thereafter have no further liability to each
other hereunder.

          B. During the Feasibility Period and, if this Agreement is not terminated, then thereafter as
well, and provided that (i) Purchaser shall give Seller at least twenty-four (24) hours prior
notice and (ii) Purchaser shall maintain comprehensive general liability insurance, with a coverage
amount of not less than Two Million Dollars ($2,000,000), Purchaser and its employees, contractors
and agents shall have the right, at Purchaser’s sole cost and expense, but subject to the rights of
Tenants under the Leases and applicable law, to enter upon the Property during normal business
hours to inspect the Property and to conduct tests and studies thereon, including, without
limitation, all surveying, soil tests, geological tests, structural and environmental studies
reasonably desired by Purchaser. Purchaser shall indemnify and hold Seller harmless against and
from any and all liability, cost, damages, claims, or expenses resulting solely from Purchaser’s
conduct of such tests or studies and other activities at the Property, excluding any claims or
liabilities arising from Purchaser’s discovery of any condition relating to the Property.
Purchaser shall deliver to Seller all third party studies, tests and reports, including, without
limitation, any engineering, structural and environmental reports, which Purchaser has obtained
with respect to the Property within five (5) days after terminating this Agreement pursuant to this
Article 6 and payment to Purchaser of all costs, expenses and fees incurred in obtaining such
studies, tests and reports. All tests, investigations and other studies conducted with respect to
the Property shall be completed by Purchaser free and clear of all mechanic’s and materialmen’s
liens, and Purchaser shall indemnify and hold Seller harmless from and against all costs, damages,
expenses, liability, actions, and causes of actions arising by reason of any services or materials
provided for or on behalf of Purchaser with respect to the Property. The obligations and
indemnifications under this Article 6 shall survive any termination of this Agreement.

     7. Seller’s Representations and Warranties. Seller makes the following
representations and warranties to Purchaser, each and all of which shall be true and correct as of
the date hereof and as of the Closing Date:

          A. That attached hereto as Exhibit B-1 through Exhibit B-4, are true, correct
and complete inventories of all Personal Property except any owned by a Tenant.

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          B. That all service, maintenance, or other contracts of any nature to which Seller is a party
in connection with the Property, are set forth on Exhibit C-1 through Exhibit C-4,
attached hereto (the “Contracts”). Seller has provided Purchaser with true, correct and complete
copies of all such Contracts. Seller is not in default under any of the Contracts and, to Seller’s
actual knowledge, no contractor or provider under any Contract is in default thereunder.

          C. That there are no tenancies or other rights of occupancy at the Property, except for the
Leases more particularly described on the rent roll for each Building attached hereto as
Exhibit D-1 through Exhibit D-4, respectively (the “Rent Rolls”). The Rent Rolls
are true, correct and complete in all material respects. The Leases described thereon are referred
to herein as the “Leases” and the tenants under the Leases are referred to herein as the “Tenants”.
The Tenants have paid no rent or any other sum in advance for more than the current month and
except as shown on Exhibit D-1 through Exhibit D-4 or on attached Schedule
7C, all tenant allowances and reimbursements have been paid in full, and there are no monetary
defaults existing under any of the Leases. To the best of Seller’s knowledge, except as shown on
Exhibit D-1 through Exhibit D-4 or on attached Schedule 7C, no Tenant is in
default under any other provisions of the Leases, and no Tenant has asserted any claim, offset or
defense with respect to its Lease. The Leases are in full force and effect, enforceable in
accordance with their terms, to the best of Seller’s knowledge, there has been no default by the
landlord under the Leases, and the landlord has performed all construction and inducement
obligations required of it under the Leases. Seller has provided Purchaser true, correct and
complete copies of each of the Leases. The landlord is not required to render any services to the
Tenants except as specifically provided in the Leases, and the Leases represent the complete
agreement between Seller and the Tenants. No person has any option, right of first refusal or
other right to acquire title to the Property or any interest therein other than Purchaser.

          D. Except as disclosed on Schedule 7D, there is no pending or to Seller’s actual
knowledge, threatened litigation, proceeding, or investigation against Seller which would
materially affect Seller, this Agreement or the Property.

          E. That, to the best of Seller’s knowledge, all parties with whom Seller has contractual
arrangements are in compliance therewith and are not in default under any contract or obligation
relating to the Property.

          F. That all actions required by law and any agreement of Seller or the persons collectively
constituting Seller hereunder have been taken or will be taken prior to the Closing Date to
authorize the sale hereunder.

          G. That (i) no Seller, or constituent member or affiliate of Seller, has filed a petition in
bankruptcy or for reorganization pursuant to the Federal Bankruptcy Code or any similar Federal,
state or municipal law, or been adjudicated a bankrupt, or consented to the appointment of a
receiver or receivers of all or any substantial portion of its assets, (ii) to Seller’s actual
knowledge, no creditor of any Seller has filed a petition in bankruptcy against any Seller or for
reorganization of any Seller pursuant to the Federal Bankruptcy Code or any similar Federal, state
or municipal law, and (iii) no Seller has been declared insolvent, or seized, by any Federal or
state regulatory agency.

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          H. That Seller is not a “foreign person” as defined by Internal Revenue Code Section 1445.

          I. Seller has no knowledge of, nor has Seller received any notice from the property owners’
association under the CCRs (as hereinafter defined) regarding any violation of any covenants or
restrictions encumbering the Property or any defect that would materially adversely affect the
insurability of the Property or cause an increase in insurance premiums. Seller has no actual
knowledge of, and it has received no written notice of, (i) notice from a governmental agency
requiring repairs, alterations or corrections of any existing condition on the Property, or (ii)
any pending or threatened proceedings for condemnation or the exercise of the right of eminent
domain as to any part of the Property.

          J. To Seller’s actual knowledge, a valid and permanent certificate of occupancy has been
obtained for all improvements at each Property. Seller has no actual knowledge of, nor has it
received written notification from any governmental authority, with respect to any violation of
zoning, building or other laws, ordinances, orders or regulations, relating to the continued
maintenance, operation or use of the Property.

          K. Seller has no actual knowledge and has received no written notice of any violation of
Environmental Laws related to the Property or the presence or release of Hazardous Materials on or
from the Property except as stated in the Phase I Environmental Report(s) described in Schedule
7K attached hereto (the “Environmental Reports”) and delivered to Purchaser as part of the
Property Information. To the best of Seller’s knowledge, Seller has not manufactured, introduced,
released or discharged from or onto the Property any Hazardous Materials or any toxic wastes,
substances or materials (including, without limitation, asbestos), and Seller has not used the
Property or any part thereof for the generation, treatment, storage, handling or disposal of any
Hazardous Materials, in violation of any Environmental Laws. The term “Environmental Laws”
includes without limitation the Resource Conservation and Recovery Act and the Comprehensive
Environmental Response Compensation and Liability Act and other federal laws governing the
environment as in effect on the date of this Agreement together with their implementing regulations
and guidelines as of the date of this Agreement, and all state, regional, county, municipal and
other local laws, regulations and ordinances that are equivalent or similar to the federal laws
recited above or that purport to regulate Hazardous Materials. The term “Hazardous Materials”
includes petroleum, including crude oil or any fraction thereof, natural gas, natural gas liquids,
liquified natural gas, or synthetic gas usable for fuel (or mixtures of natural gas or such
synthetic gas), asbestos and asbestos containing materials and any substance, material waste,
pollutant or contaminant listed or defined as hazardous or toxic under any Environmental Law. To
Seller’s knowledge and except as disclosed in the Environmental Reports, there are not now, nor
have there been, any above-ground or underground storage tanks located on the Property.

          L. Each Seller has been duly formed, is validly existing, and is in good standing as a
Virginia limited liability company. Each Seller is in good standing and is qualified to do
business in the state where the Property is located. Each Seller has the full right and authority
and has obtained any and all consents required to enter into this Agreement and to consummate or
cause to be consummated the transactions contemplated hereby. This Agreement has been, and all of
the

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documents to be delivered by Seller at the Closing will be, authorized and properly executed and
constitutes, or will constitute, as appropriate, the valid and binding obligation of Seller,
enforceable in accordance with their terms.

          M. Intentionally Deleted.

          N. Seller’s sale of the Property is not subject to any federal, state, or local withholding
obligation of Purchaser under the tax laws applicable to Seller or the Property.

          O. Neither Seller nor any of its affiliates (i) is listed on any Government Lists, (ii) has
been determined by competent authority to be subject to the prohibitions contained in Presidential
Executive Order No. 13244 (September 23, 2001) or in any enabling or implementing legislation or
other Presidential Executive Orders in respect thereof, (iii) is a person or entity who has been
previously indicted for or convicted of any felony involving a crime or crimes of moral turpitude
or for any violation of the Patriot Act, or (iv) is currently under investigation by any
governmental authority for alleged criminal activity. Seller has no reason to believe that this
transaction, including, without limitation, the source of its funds, would result in a violation by
Purchaser or Seller of the Patriot Act, OFAC Laws and Regulations, or any other anti-terrorism or
anti-money laundering laws or regulations, including, without limitation, the Bank Secrecy Act, as
amended, or the Money Laundering Control Act of 1986, as amended.

          P. All of the Leases and the Rent Roll and, to Seller’s actual knowledge, all of the other
Property Information and any other documents, reports and other information related to the Property
provided to Purchaser by Seller constitute complete originals or copies of the information provided
and constitute the documents on which Seller relies in the ordinary course of its business. Seller
shall promptly update and supplement Buyer with any updated or supplemental Property Information
received by Seller after the date first delivered or made available hereunder.

          Q. The Operating Statements to be delivered to Purchaser pursuant to this Agreement will show
all items of income and expense (operating and capital) incurred in connection with Seller’s
ownership, operation, and management of the Property for the periods indicated and will be true,
correct, and complete in all material respects, and represent the material financial information on
which Seller has relied in its operation, management and ownership of the Property.

     8. Purchaser’s Representations and Warranties. Purchaser makes the following
representation to Seller, which shall be true and correct as of the date hereof and as of the
Closing Date:

          A. That (i) Purchaser has not filed a petition in bankruptcy or for reorganization pursuant to
the Federal Bankruptcy Code or any similar Federal, state or municipal law, or been adjudicated a
bankrupt, or consented to the appointment of a receiver or receivers of all or any substantial
portion of its assets, (ii) to the best of Purchaser’s knowledge, no creditor of Purchaser or any
other person has filed a petition in bankruptcy against Purchaser or for reorganization of
Purchaser pursuant to the Federal Bankruptcy Code or any similar Federal, state or municipal law,
and (iii) Purchaser has not been declared insolvent, or seized, by any Federal or state regulatory

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agency.

          B. Neither Purchaser nor any of its affiliates (i) is listed on any Government Lists, (ii) has
been determined by competent authority to be subject to the prohibitions contained in Presidential
Executive Order No. 13244 (September 23, 2001) or in any enabling or implementing legislation or
other Presidential Executive Orders in respect thereof, (iii) is a person or entity who has been
previously indicted for or convicted of any felony involving a crime or crimes of moral turpitude
or for any violation of the Patriot Act, or (iv) is currently under investigation by any
governmental authority for alleged criminal activity. Purchaser has no reason to believe that this
transaction, including, without limitation, the source of its funds, would result in a violation by
Purchaser or Seller of the Patriot Act, OFAC Laws and Regulations, or any other anti-terrorism or
anti-money laundering laws or regulations, including, without limitation, the Bank Secrecy Act, as
amended, or the Money Laundering Control Act of 1986, as amended.

     9. Covenants.

          A. From and after the Effective Date of this Agreement, Seller covenants and agrees that:

               (i) Seller shall not engage in any activity or effect any transaction with respect to the
Property which is outside of the normal and ordinary course of business.

               (ii) Seller shall furnish to Purchaser copies of any and all notices which it receives from
any party, including, without limitation, any Tenant, any lender, or any governmental agency with
respect to the Property or any portion thereof within three (3) business days after Seller’s
receipt thereof, but in no event later than the Closing Date.

               (iii) Seller shall not enter into any agreement to sell or otherwise dispose of its interest
in the Property or any portion of the Property.

               (iv) Following the Effective Date and except as otherwise stated in this Agreement, prior to
the expiration of the Feasibility Period, Seller shall not enter into any new lease of any portion
of the Property or any modification to or amendment of any existing Lease without the prior written
consent of Purchaser, which consent shall not be unreasonably withheld, conditioned or delayed, and
which consent shall prior to the expiration of the Feasibility Period only be deemed to have been
given if Seller does not receive from Purchaser, within five (5) business days following Seller’s
delivery of any such lease or modification to or amendment of the Lease to Purchaser (together with
such additional information as Purchaser may reasonably request), Purchaser’s specific written
objections thereto and suggested changes therein, and following the expiration of the Feasibility
Period, Seller shall not enter into any new lease of any portion of the Property or any
modification to or amendment of any existing Lease without the prior written consent of Purchaser,
which consent may be withheld or denied in Purchaser’s sole and absolute discretion.

               (v) Seller shall continue to manage and operate the Property in the manner in which it has
been managed and operated as of the Effective Date.

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               (vi) Seller will not enter into any new contracts with respect to the Property which would
survive Closing.

               (vii) Seller shall at all time continue to perform all of its obligations and comply with the
terms of all Existing Loans, Contracts and Leases affecting the Projects.

          B. On or before the second (2nd) business day after the Effective Date, Seller shall furnish
to Purchaser copies of those documents listed on Exhibit E attached hereto and made a part
hereof (the “Property Information”), which relate to the ownership, financing, leasing and
occupancy of the Property. To the extent that any additional Property Information comes into
Seller’s possession or control, Seller shall promptly deliver copies thereof to Purchaser.

     10. Conditions Precedent to the Obligations of Purchaser. The obligations of Purchaser
to purchase the Property pursuant to the provisions of this Agreement shall be subject to the
following conditions (all or any of which may be waived in writing, in whole or in part, by
Purchaser):

          A. The representations and warranties made by Seller herein shall be true and correct in all
material respects as of the Closing Date with the same force and effect as if such representations
and warranties had been made on and as of such date.

          B. On the Closing Date, Seller shall have complied in all material respects with the covenants
contained in Article 9 hereof.

          C. On the Closing Date, the condition and status of record title to the Property shall not
have changed since the effective date of the Title Commitment, such that the Title Company shall be
obliged to issue its Owner’s Policy of Title Insurance (the “Title Policy”), in the form which
Title Company committed to issue prior to the end of the Feasibility Period.

          D. As a condition to Purchaser’s obligation to close, Seller shall obtain and deliver to
Purchaser, no later than five (5) days before Closing, estoppel certificates from Tenants who
occupy at least eighty percent (80%) of the occupied rentable square feet of each Building, in the
form reasonably acceptable to Purchaser and as required by Purchaser’s lender (unless a different
form is required by the Lease), addressed to both Purchaser and its lender (the “Estoppel
Certificates”). If the Estoppel Certificates (i) reflect the existence of any material default or
the existence of any materially adverse facts that were not previously disclosed to Purchaser or in
the Leases, or (ii) fail to reflect the rent or other material term in accordance with the terms of
the Leases and Exhibit D-1 through Exhibit D-4 hereto, then Purchaser may notify
Seller, within three (3) days following receipt, that the Estoppel Certificates are not acceptable,
and the reasons why the Estoppel Certificates are not acceptable. Notwithstanding the foregoing,
however, if Seller is unable to deliver the Estoppel Certificates signed by all of the Tenants,
Seller shall provide an estoppel certificate in a form reasonably acceptable to Purchaser and
Seller and signed by Seller (“Seller Estoppel”) in lieu of that to be delivered by a particular
Tenant. If at any time Seller obtains and delivers to Purchaser an estoppel certificate from a
Tenant for whom Seller had provided a Seller Estoppel which conforms to the requirements of this
paragraph, the Seller Estoppel shall be of no further force or effect.

10

 

          E. Purchaser shall be satisfied that none of Seller or any of its affiliates is listed on any
Government Lists and that the sale of the Property to Purchaser will not result in a violation of
the Patriot Act, any OFAC Laws and Regulations or any other anti-terrorism or anti-money laundering
laws and regulations, including, without limitation, the Bank Secrecy Act, as amended and the Money
Laundering Control Act of 1986, as amended. Seller shall deliver to Purchaser upon Purchaser’s
request from time to time such information requested by Purchaser regarding the identity of Seller
in order for Purchaser to comply with the Patriot Act, the OFAC Laws and Regulations and such other
anti-terrorism and anti-money laundering laws and regulations.

          F. Intentionally Deleted.

          G. Each lender with respect to an Existing Loan shall have executed and delivered to Escrow
Agent any and all documents necessary or appropriate to evidence the assumption and/or defeasance
transactions more particularly described in Section 21, if applicable, to be in form and substance
reasonably acceptable to Purchaser.

If any of the foregoing conditions are not satisfied or waived by Purchaser on the Closing Date,
then Purchaser may elect to terminate this Agreement or proceed to Closing. If Purchaser elects to
terminate, Purchaser shall be entitled to a refund of the Deposit without any further action
required by any party and, in such event, neither party shall have any further obligation to the
other, except to the extent that such failure occurred due to the default of either party hereunder
and except as otherwise expressly provided herein.

     11. Documents at Closing.

          A. On the Closing Date, Seller shall:

               (i) Execute, acknowledge and deliver to Purchaser a good and sufficient special warranty deed
or deeds conveying fee simple title to the Property to Purchaser, in a form reasonably acceptable
to Seller and Purchaser.

               (ii) Execute and deliver to Purchaser a bill of sale, which bill of sale shall transfer to
Purchaser title to all the Personal Property being sold hereunder, in a form reasonably acceptable
to the Seller and Purchaser.

               (iii) Execute and deliver to Purchaser an assignment in writing, transferring and delivering
to Purchaser all Contracts, the Leases (including any security deposits thereunder and interest on
said security deposit in the amount required by applicable law or the Leases, or, if any security
deposit is in the form of a letter of credit, then an assignment of such letter of credit to
Purchaser), unexpired warranties, and licenses and permits relating to the Property, in a form
reasonably acceptable to Seller and Purchaser.

               (iv) Execute and deliver to the Escrow Agent an owner’s affidavit in such form as attached
hereto as Exhibit X sufficient for the issuance of the Title Policy.

11

 

               (v) To the extent that they are transferable, transfer, deliver and convey to Purchaser
original copies of the Governmental Approvals and utilities which are held by Seller with respect
to the use and occupancy of the Property.

               (vi) Transfer, deliver and convey to Purchaser true and correct copies of all contracts or
agreements with respect to the operation, use and occupancy of the Property, except to the extent
that any of such agreements or contracts have been terminated or have expired on or before the
Closing Date.

               (vii) Transfer, deliver and convey to Purchaser its property management books, records,
operating reports, files and other materials pertaining to the operation, use and occupancy of the
Property, including, but not limited to, all lease files with respect to the Property, which are in
the possession of Seller or its property management agent, and all keys, codes and other means of
accessing the Property.

               (viii) Transfer, deliver and convey to Purchaser true and correct copies of all Project Plans
for the Property, if in the possession of Seller or its property management agent.

               (ix) Transfer, deliver and convey to Purchaser the original Leases and Contracts.

               (x) Execute and deliver to Purchaser a certificate executed by Seller under penalty of perjury
stating the United States taxpayer identification number for Seller and that Seller is not a
foreign person as defined in Internal Revenue Code Section 1445(b)(2), and any similar certificate
required under applicable state or local law.

               (xi) Execute and deliver to Escrow Agent a Substitute 1099-S certification.

               (xii) Execute and deliver to Escrow Agent a settlement statement setting forth the Purchase
Price, the Deposit, closing costs, and closing adjustments and prorations as set forth in this
Agreement (the “Settlement Statement”).

               (xiii) Execute and deliver to Purchaser any and all documents necessary or appropriate to
evidence the assumption and/or defeasance transactions more particularly described in Section 21.

               B. On the Closing Date, (i) Purchaser shall deliver to the Escrow Agent the Cash Portion of
the Purchase Price, reduced by the Deposit and any interest thereon held by Escrow Agent, and
subject to adjustment on account of amounts payable by or to Purchaser pursuant to Section 12, by
federal funds bank wire, and the Escrow Agent shall deliver to Seller such Purchase Price (by wire
transfer pursuant to instructions provided by Seller to the Escrow Agent), subject to reduction in
accordance with the provisions of Sections 3A and 3B, and less any sums required to remove all
Curable Matters (other than the Prepayment and Defeasance Costs) which Seller is required to
eliminate pursuant to Article 2 hereof or other items required to be paid by Seller

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pursuant
to this Agreement, (ii) Purchaser shall execute and deliver to the Escrow Agent the Settlement
Statement, and (xiii) Purchaser shall execute and deliver any and all documents necessary or
appropriate to evidence the assumption and/or defeasance transactions more particularly described
in Section 21.

          C. On the Closing Date, Seller shall deliver exclusive possession of the Property to Purchaser
subject only to the Permitted Exceptions and the rights of the Tenants under the Leases.

     12. Adjustments.

          A. All paid rent, current operating expenses, real estate taxes, ad valorem taxes, other taxes
and assessments (whether general or special), insurance, all utilities, water and sewer charges,
all utility deposits, charges under maintenance and service contracts, and other charges (if
applicable), fees, or assessments of any kind with respect to the Property shall be adjusted as of
the Closing Date. All security deposits (including, but not limited to, letters of credit which
serve as security deposits), key deposits and other deposits of any kind which are held by Seller
shall be transferred to Purchaser on the Closing Date, at which time and upon its receipt of same,
Purchaser shall assume liability for the return of such amounts which have been transferred to
Purchaser to the persons who deposited such amounts with Seller. All rents which are collected
after the Closing Date shall be applied first towards rent which is due and payable for the month
in which collected, and thereafter towards rent coming due after the Closing Date. Purchaser shall
be entitled, but shall not be obligated, to collect all rents which were due and unpaid as of the
Closing Date, and all such rents which are actually collected shall be paid to Seller and payment
to Purchaser of that portion of such rents which relates to the period between the Closing Date and
the last day of the month during which the Closing Date occurs; provided, however, that Seller
shall retain the right to pursue (including through litigation other than suits for possession of
leased premises at the Property) the collection of any rents which were due and unpaid as of the
Closing Date. Seller shall arrange for the rendition of final bills by the utility companies
involved as of the Closing Date. If data is not available on the Closing Date to make a final
adjustment of any of the foregoing items, then such adjustment(s) shall be made on the best
information then available and adjusted finally when the appropriate final data is obtained, at
which time Purchaser or Seller, as applicable, shall reimburse the other party for the amount of
any overpayment or underpayment, as applicable.

          B. Except as may otherwise be provided in this Agreement, expenses of examination of title,
title insurance, survey, and one-half of any escrow fees shall be paid by Purchaser, Seller shall
pay the cost of removing all Curable Matters (other than Prepayment and Defeasance Costs as defined
below) pursuant to Article 2 hereof and the cost of preparation of the closing documents to
be delivered by Seller to the Escrow Agent at Closing and one-half of any escrow fees (not to
exceed $1,500 per property per party), and Seller and Purchaser shall each pay one-half of the
Virginia grantor’s tax and all other recordation taxes and charges with respect to the deed
described in Article 11.A.(i) hereof, however the same may be designated. Purchaser shall pay all
such recordation taxes and charges with respect to any mortgage(s) or deed(s) of trust which
Purchaser places against the Property. Each party shall pay for the legal fees of its respective
attorneys, accountants and consultants in connection with this transaction. Purchaser shall pay or
reimburse to Seller at Closing all prepayment, yield maintenance or similar fees required to
satisfy all

13

 

Mortgage Liens, and all fees, lender attorney fees, and other costs, expenses and other
amounts of any kind necessary to complete the assumption or defeasance transaction described in
Section 21, below (the “Prepayment and Defeasance Costs”); provided that Seller shall pay the
outstanding principal and accrued interest, any delinquent amounts and all other amounts owed on
account of the debt secured by the Mortgage Liens as of Closing immediately preceding such
assumption or defeasance, and any lender attorney fees incurred as the result of Seller requesting
changes to assumption or defeasance documentation otherwise acceptable to Purchaser. At Closing,
either (i) all amounts held as reserves or impounds on account of the Existing Loans will be
released to Seller, or (ii) Seller shall receive a credit in the amount of, and Purchaser shall
assume, all such reserves or impounds.

          C. Except as otherwise stated in this Agreement and except for any leasing commissions owed
(i) for any renewal term of any Lease which is exercised after the Closing Date and (ii) in the
event The Boeing Company, Mantech Systems Engineering or Orion International Consulting Group does
not exercise the termination option given in its Lease, Seller shall pay by Closing all leasing
commissions and any tenant improvement costs due with respect to any Leases existing as of the
Effective Date. Except as otherwise stated in this Agreement, any tenant improvement costs or
leasing commissions incurred with respect to any Leases executed between the Effective Date and
Closing shall be reimbursed to Seller at Closing or assumed by Purchaser.

13. Default. If Purchaser shall fail or refuse to make settlement hereunder as herein
required and Seller is not in default hereunder, the Deposit and all interest accrued thereon, if
any, shall be paid to Seller as its sole and exclusive remedy as agreed and liquidated damages for
such default, whereupon this Agreement shall become null and void and of no further force or
effect. It is hereby agreed that Seller’s damages in the event of a default by Purchaser hereunder
are uncertain and impossible to ascertain, and that the Deposit constitutes a reasonable
liquidation of such damages and is intended not as a penalty, but as full liquidated damages.
Notwithstanding the foregoing provisions of this Article 13, Purchaser shall remain liable for its
indemnification obligations pursuant to Articles 6 and 15.A. hereof. If Seller defaults in its
obligation to sell and convey the Property to Purchaser pursuant to this Agreement, Purchaser’s
sole remedy shall be to elect one of the following: (a) to terminate this Agreement, in which
event Purchaser shall be entitled to the return by the Escrow Agent to Purchaser of the Deposit and
recovery of Purchaser’s actual out-of-pocket expenses in entering into this Agreement and
performing its obligations hereunder, or (b) to bring a suit for specific performance provided that
any suit for specific performance must be brought within 60 days of Seller’s default, to the extent
permitted by law, Purchaser hereby waives the right to bring suit at any later date; provided,
however, that if specific performance is not a remedy available to Purchaser due to the willful or
intentional act of Seller (such as the prior conveyance of the Property to third party in violation
of this Agreement), then in lieu of specific performance, Purchaser shall have the right to recover
to pursue any and all available remedies, at law or in equity. .

     14. Risk of Loss; Condemnation. Risk of loss or damage from fire, other casualty, or
both, is assumed by Seller until the Closing is concluded subject to the following provisions. In
the event that any portion of the Property is destroyed or rendered uninhabitable by fire or other
casualty:

14

 

          A. If the total damage to all of the Property, as determined by the insurance adjuster, is not
more than $500,000, (i) Purchaser shall complete settlement and all insurance proceeds shall be
paid to Purchaser, and (ii) Seller shall pay to Purchaser on the Closing Date the full amount of
any deductible and all uninsured or underinsured amounts under Seller’s fire and extended coverage
insurance policy.

          B. If the total damage to all of the Property, as determined by the insurance adjuster, is
more than $500,000, Purchaser shall have the option to (i) complete settlement hereunder and
collect all available insurance proceeds, in which case Seller shall pay to Purchaser on the
Closing Date the full amount of any deductible and all uninsured or underinsured amounts under
Seller’s fire and extended coverage insurance policy, or (ii) cancel this Agreement and receive a
refund of the Deposit.

          C. If any material portion of the Property, which for the purpose of this Article 15.C. shall
mean more than ten percent (10%) of the aggregate rentable square footage of any Building, any
access to any Project or more than ten percent (10%) of the square footage of the Land located at
any of the Projects, is condemned by any governmental authority under its power of eminent domain
or becomes the subject of a notice of condemnation, Purchaser may elect to terminate this
Agreement, in which event the Deposit and all interest accrued thereon shall be returned to
Purchaser and the parties shall have no further liability to each other hereunder, or Purchaser may
elect to complete settlement hereunder, in which event Seller shall assign to Purchaser all of
Seller’s right, title and interest in and to any condemnation awards, whether pending or already
paid. Following the expiration of the Feasibility Period, Purchaser and Seller shall cooperate
during the pendency of any such condemnation proceeding to negotiate and otherwise deal with the
condemning authority in respect of such matter.

     15. Miscellaneous.

          A. The parties hereto represent and warrant to each other that there has been no broker, sales
representative or agent involved in this transaction who would be entitled to a commission or other
compensation, except CB Richard Ellis of Virginia, Inc., which has represented Seller. Seller
shall pay CB Richard Ellis of Virginia, Inc. any real estate commission due to CB Richard Ellis of
Virginia, Inc. pursuant to separate agreement with Seller. Purchaser agrees to and does hereby
indemnify and hold Seller harmless of and from any and all claims, damages, actions, or suits
(including all court costs and reasonable attorneys’ fees) arising out of or relating to any
alleged agreement by Purchaser to pay a commission or other compensation to any broker, sales
representative or agent, other than CB Richard Ellis of Virginia, Inc., in connection with this
transaction, and Seller agrees to and does hereby indemnify and hold Purchaser harmless of and from
any and all claims, damages, actions or suits (including all court costs and reasonable attorneys’
fees) arising out of or relating to any alleged agreement by Seller to pay a commission or other
compensation to any broker, sales representative or agent in connection with this transaction.

          B. This Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective successors and permitted assigns. This Agreement contains the entire agreement
between the parties hereto and there are no promises, agreements, conditions,

15

 

undertakings, warranties or representations, oral or written, express or implied, between them
other than as herein expressly contained or referred to. No waiver of any of the provisions of
this Agreement shall be valid unless in writing and signed by the parties against whom it is sought
to be enforced.

          C. Except with respect to the representation and warranty by Purchaser set forth in Article 8
hereof, indemnification obligations of Purchaser set forth in Articles 6 and 15.A. hereof, and the
indemnification obligation of Seller set forth in Article 15.A. hereof, all of which shall remain
operative, the representations, warranties and covenants contained in this Agreement shall remain
operative for twelve (12) months following the Closing Date and shall thereafter be of no force or
effect. If Closing shall have occurred, the aggregate liability of Seller for damages arising
pursuant to or in connection with the representations, warranties, indemnifications, covenants or
other obligations (whether expressed or implied) of Seller under this Agreement (or any document
executed or delivered in connection herewith) shall not exceed $600,000. In addition, Purchaser
shall have no recourse against Seller until the aggregate claims for the foregoing exceed
$25,000.00.

          D. This Agreement shall be construed and interpreted in accordance with the laws of the
Commonwealth of Virginia.

          E. Prior to Closing this Agreement shall not be assignable by Purchaser except to any entity
owned or controlled by Purchaser. However, at Closing and at the written request of Purchaser,
Seller shall convey the Property directly to such third parties as Purchaser directs, including,
without limitation, purchasers of tenant in common interests in the Property, provided that
Purchaser is not released from any of its obligations hereunder.

          F. This Agreement may be executed in counterparts, and all counterparts so executed shall
constitute one Agreement of Sale, binding upon all of the parties hereto, notwithstanding that all
of the parties are not signatory to the original or the same counterpart.

          G. All notices and other communications hereunder shall be in writing and shall be deemed to
have been duly given (i) upon receipt, if delivered by hand or sent via facsimile or (ii) if
mailed, upon deposit with the United States Postal Service, postage prepaid, by certified mail,
return receipt requested, or (iii) upon deposit with Federal Express or any other nationally
recognized overnight courier service , prepaid, for delivery the next business day:

               (i) if to Purchaser, addressed to:

ASSET CAPITAL PARTNERS, L.P..

4733 Bethesda Avenue, Suite 800

Bethesda, MD 20814

Facsimile: (301) 656-2333

ATTENTION: Blair Fernau

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with a copy to:

Howard Parelskin

KENNERLY LAMISHAW & ROSSI LLP

707 Wilshire Boulevard, Suite 1400

Los Angeles, CA 90017

Facsimile: (213) 312-1266

               (ii)
 if to Seller, addressed to:

GEE’S GROUP LLC

Twin Oaks I

5700 Lake Wright Drive, Suite 103

Norfolk, VA 23502

ATTENTION: David Gianascoli

with a copy to:

Lawrence H. Bryant, Esquire

WILLIAMS MULLEN

Suite 1700, Dominion Tower

999 Waterside Drive

Norfolk, VA 23510

Facsimile: (757) 629-0660

          (ii) if to Escrow Agent, addressed to:

Fidelity National Title Insurance Company

601 S. Figueroa Street

Suite 2130

Los Angeles, CA 90017

Facsimile: (213) 689-9330

ATTENTION: Tim Wilson

Any of the parties may effect a change of address by written notice to the other parties hereto.

     16. As-Is Condition. The parties recognize and agree that Purchaser is acquiring the
Property in “AS-IS, WHERE-IS” condition with all faults. Purchaser hereby acknowledges that it
shall be acquiring the Property in reliance solely upon its own investigations, studies and due
diligence. Without limiting the foregoing, Purchaser stipulates and agrees that, except as
expressly provided in this Agreement, it shall purchase the Property without any representation,
indemnification or warranty whatsoever by Seller relating to the Property, including, but not
limited to, the express warranties of merchantability and fitness for a particular purpose.

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     17. Special Conditions Regarding Leasing.

          A. Seller has executed and delivered a lease for Suite 400 in Twin Oaks I consisting of 6,372
rentable square feet to Zimm American and shall promptly deliver a copy thereof to Purchaser for
its review during the Feasibility Period. Seller shall be responsible for all transaction costs
relating to such lease, including, but not limited to, payment of tenant improvement allowances and
all commissions. To the extent a lease for Suite 400 is executed before Closing and any such costs
and expenses are not paid by the Closing Date, Seller shall provide Purchaser a credit at Closing
for the balance of any unpaid costs and expenses.

          B. On or about March 23, 2006, Seller executed a renewal of the current lease with Chasen’s
Business Interiors for Suite 100 of Twin Oaks II consisting of 6,895 rentable square feet. Seller
shall be responsible for all transaction costs, including, but not limited to, tenant improvement
allowances and all commissions owed under such renewal lease. If any such costs and expenses have
not been paid by the Closing Date, Seller shall provide a credit to Purchaser at Closing in an
amount equal to such unpaid costs and expenses and the Purchaser shall then assume payment of such
unpaid amounts to Seller’s contractor which shall complete the work. This renewal lease provides
for a tenant improvement allowance not to exceed $8.00 per rentable square foot and that any
amounts over such allowance must be paid by the tenant to the landlord. If Seller has paid more
than such allowance as of the Closing Date, then Purchaser shall reimburse Seller at Closing for
the amount of such excess payment solely to the extent the tenant has not paid such amount to
Seller.

          C. Seller, as tenant, and Purchaser, as landlord, agree to execute a lease at Closing for
Suite 103 in Twin Oaks I consisting of 4,908 rentable square feet, which is the current space
occupied by Seller. The base rent shall be Nineteen Dollars ($19.00) per rentable square foot, on
a full service basis, with annual rent escalations of three percent (3.0%). There shall be no
tenant improvement allowance or commissions owed by Purchaser. The lease shall provide for a term
of three (3) years, granting to Seller the right to terminate the lease, effective as of the end of
any full lease year, upon one hundred eighty (180) days prior written notice to Purchaser. The
lease shall be on Seller’s standard lease form for Twin Oaks I, or on such other form as is
acceptable to Purchaser, in its reasonable discretion.

          D. Two of the Leases include leases for Suites 301 and 302 of Southport Centre consisting of
4,460 square feet with Lawyer’s Escrow and Seniors First. Purchaser shall pay or reimburse Seller
at Closing for any tenant improvement costs and leasing commissions paid or owed with respect to
such leases for Suites 301 and 302 provided that tenant improvement costs shall not exceed $16.00
per square foot, and leasing commissions shall not exceed $1.51 per square foot.

     18. Time Is Of The Essence. Time is of the essence of this Agreement in each and
every term and provision hereof.

     19. Attorney Fees. If either party hereto fails to perform any of its obligations
under this Agreement or in the event a dispute arises concerning the meaning or interpretation of
any provision of this Agreement, the defaulting party or the party not prevailing in such dispute,
as the case may be,

18

 

shall pay any and all costs and expenses incurred by the other party in
enforcing or establishing its rights hereunder including, without limitation, court costs and
reasonable legal fees.

     20. Tax-Deferred Exchange. Purchaser and Seller acknowledge that either party may
wish to structure this transaction as a tax-deferred exchange of like-kind property within the
meaning of Section 1031 of the Internal Revenue Code. Each party agrees to reasonably cooperate
with the other party to effect such an exchange; provided, however, that (a) the
cooperating party shall not be required to acquire or take title to any exchange property, (b) the
cooperating party shall not be required to incur any expense or liability whatsoever in connection
with the exchange, including, without limitation, any obligation for the payment of any escrow,
title, brokerage or other costs including attorneys’ fees incurred with respect to the exchange,
(c) no substitution of the effectuating party shall release said party from any of its obligations,
warranties or representations set forth in this Agreement or from liability for any prior or
subsequent default under this Agreement by the effectuating party, its successors, or assigns,
which obligations shall continue as the obligations of a principal and not of a surety or
guarantor, (d) the effectuating party shall give the cooperating party at least two (2) business
days prior notice of the proposed changes required to effect such exchange and the identity of any
party to be substituted in the escrow, (e) the effectuating party shall be responsible for
preparing all additional agreements, documents and escrow instructions (collectively, the “Exchange
Documents”) required by the exchange, at its sole cost and expense, (f) the effectuating party
shall be responsible for making all determinations as to the legal sufficiency, tax considerations
and other considerations relating to the proposed exchange, the Exchange Documents and the
transactions contemplated thereby, and the cooperating party shall in no event be responsible for,
or in any way be deemed to warrant or represent any tax or other consequences of the exchange
transaction, and (g) the election to effect such an exchange shall not delay the Closing of the
transaction as defined herein.

     21. Existing Loans. As part of the Property Information, Seller agrees to provide to
Purchaser and its counsel full and complete copies of all documents (collectively, the “Existing
Loan Documents”) evidencing or securing the Mortgage Liens and the loans secured thereby
(individually, an “Existing Loan”, and collectively, the “Existing Loans”). Within 10 days
following the execution and delivery of this Agreement, Purchaser shall contact each lender to
investigate the feasibility of assuming each Existing Loan, and during the Feasibility Period,
Purchaser must elect as to each Existing Loan by delivery of written notice to Seller:

     (i) that such loan be paid in full at Closing (provided the same is permitted to be prepaid
under the terms of the Existing Loan Documents), or if payment is prohibited but defeasance is
permitted, defeased, in which case Seller shall be responsible for the principal amount and all
other amounts due on account of such Existing Loan, with Purchaser being responsible for any
prepayment penalty or defeasance costs and all other Prepayment and Defeasance Costs; or

     (ii) that Purchaser assume such loan (provided the same is permitted to be assumed under the
terms of the Existing Loan Documents), without modification of the Existing Loan Documents except
as otherwise approved by Purchaser, in which event the Cash Portion of the Purchase Price will be
reduced by the principal amount and delinquent amounts due on account of such Existing Loan as
provided in Section 3A, with Purchaser being responsible for any assumption fees and all

19

 

other
Prepayment and Defeasance Costs; provided, however, that such election shall be conditioned
upon the applicable lender agreeing that Seller and any guarantor of the applicable loan shall be
released from any post-closing obligations.

     Once an election has been made by Purchaser to assume a loan, following expiration of the
Feasibility Period, should Purchaser be unwilling or unable to proceed with the loan assumption due
to conditions imposed by the applicable lender or any other cause other than Seller’s default
hereunder or under the Existing Loan Documents, Purchaser shall nonetheless be obligated to proceed
to closing with respect to the applicable Property either by prepaying or defeasing the applicable
loan in accordance with the terms of this Agreement, if permitted by the Existing Loan Documents.

     Purchaser and Seller shall each use its good faith reasonable efforts to secure any consent or
approval necessary to prepay, assume or defease each Existing Loan, including, but not limited to,
supplying Lender with such information as Lender shall require, as soon as reasonably possible
following the Effective Date. Purchaser and Seller shall each act in good faith to execute and
deliver all documents and agreements necessary to effect the prepayment, assumption or defeasance
of each Existing Loan. Any assumption documentation shall include the lender’s certification as to
the absence of defaults, confirmation of all amounts due, and such other information as Purchaser
shall reasonably request.

     Notwithstanding anything to the contrary contained in Section 1, and despite the parties’ good
faith efforts to close on all Properties at the same time, should the timing of necessary consents
and approvals be such that Purchaser and the applicable lender are in a position to complete the
applicable prepayment, assumption or defeasance on one or more, but not all, of the Properties,
Purchaser shall have the right and option to elect to close the purchase of such Properties and
defer the closing for those Properties which remain, in which event the following shall apply:

     (i) Purchaser shall provide Seller and Escrow Agent not less than five (5) business days prior
written notice of its election, whereupon the Agreement shall be deemed to constitute four separate
agreements, one for the purchase and sale of each of the Properties, subject, however, to Section 1
of this Agreement, for the purchase price allocated to that Property as set forth on Schedule
3.

     (ii) the Deposit and any interest thereon held by Escrow Agent shall not be allocated,
credited to the Purchase Price or released until the closing for the last remaining Property
(except in the event of a default).

     (iii) All other terms of this Agreement shall apply to each transaction as appropriate in the
context of the applicable Property.

     22. Unit Election. At Seller’s election, which shall be exercised by the delivery of
written notice to Buyer not less than ten (10) business days prior to expiration of the Feasibility
Period, Seller shall have the right to receive limited partnership units in Purchaser (“Units”), in
lieu of cash for all or any portion of the Purchase Price as set forth in such notice, subject to
the conditions set forth in this Paragraph. In the event of such election, Seller and Purchaser
shall execute an

20

 

amendment to this Agreement, setting forth the terms and conditions of the
exchange of the Units. The number of Units
to be delivered shall be determined by dividing (i) that portion of the Purchase Price to be
payable by Units by (b) $8.50 (the “Unit Value”). The Units will be subject to a minimum one year
holding period and other restrictions customarily associated with an exchange of property interests
for interests in an operating partnership. Seller shall pay one-half of all transactional costs
and expenses associated with the exchange of the Units, including, without limitation, any and all
legal fees incurred by Purchaser in preparing the amendment, the registration rights agreement, and
the other documentation involved in such exchange.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day
and year first hereinabove written.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	SELLER:	 	 
	 
	 	 	 	 	 	 
	 	 	LAKE WRIGHT PROPERTIES I, LLC, a	 	 
	 	 	Virginia limited liability company	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ David Gianascoli	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Manager	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	LAKE WRIGHT PROPERTIES II, LLC, a
	 	 
	 	 	Virginia limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David Gianascoli	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Manager	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	TRIDENT PROPERTIES, LLC, a
	 	 
	 	 	Virginia limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David Gianascoli	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Manager	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SOUTHPORT CENTER, LLC, a
	 	 
	 	 	Virginia limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David Gianascoli	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Manager	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	PURCHASER:	 	 
	 
	 	 	 	 	 	 
	 	 	ASSET CAPITAL PARTNERS, L.P.,
	 	 
	 	 	a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Blair D. Fernau	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Chief Investment Officer	 	 
	 
	 	 	 	 	 	 
	 	 	ESCROW AGENT:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

22

 

EXHIBITS

Exhibit A-1 —Legal Description of the Property (Twin Oaks I)

Exhibit A-2 —Legal Description of the Property (Twin Oaks II)

Exhibit A-3 —Legal Description of the Property (Southport Centre)

Exhibit A-4 —Legal Description of the Property (Lynnhaven Corporate Center I)

Exhibit B-1 —Inventory of Personal Property (Twin Oaks I)

Exhibit B-2 —Inventory of Personal Property (Twin Oaks II)

Exhibit B-3 —Inventory of Personal Property (Southport Centre)

Exhibit B-4 —Inventory of Personal Property (Lynnhaven Corporate Center I)

Exhibit C-1 —Agreements, Contracts and Commitments (Twin Oaks I)

Exhibit C-2 —Agreements, Contracts and Commitments (Twin Oaks II)

Exhibit C-3 —Agreements, Contracts and Commitments (Southport Centre)

Exhibit C-4 —Agreements, Contracts and Commitments (Lynnhaven Corporate Center I)

Exhibit D-1 —Rent Roll (Twin Oaks I)

Exhibit D-2 —Rent Roll (Twin Oaks II)

Exhibit D-3 —Rent Roll (Southport Centre)

Exhibit D-4 —Rent Roll (Lynnhaven Corporate Center I)

Exhibit E —List of Due Diligence Documents to Be Provided by Seller (under Article 9.B.)

Schedule 3 —Allocation of Purchase Price

Schedule 7C —Lease Matters

Schedule 7D —Litigation matters

Schedule 7K —List of Environmental Reportsexv10w43

 

Exhibit 10.43

AGREEMENT OF PURCHASE AND SALE

Hollymead Retail Block A1

ARTICLE 1: PROPERTY/PURCHASE PRICE

          1.1 Certain Basic Terms.

	 	 	 
	(a) Purchaser and Notice Address:

	 	With a copy to:
	Edens & Avant Investments Limited Partnership, a

	 	Gottlieb & Smith, P.A.
	Delaware limited partnership

	 	1901 Main Street, Suite 600
	Attn: Steve Boyle

	 	Columbia, SC 29201
	7200 Wisconsin Avenue, Suite 710

	 	Attn: Durham T. Boney, Esquire
	Bethesda, MD 20814

	 	Telephone: (803) 765-9291
	Telephone: 301/652-7400

	 	Facsimile: (803) 254-2682
	Facsimile: 301/652-3588

	 	E-mail: durham@gottliebsmith.com
	E-mail: sboyle@edensandavant.com
	 	 
	 
	 	 
	 

	 	And to:
	 

	 	1901 Main Street, Suite 900
	 

	 	Columbia, SC 29201
	 

	 	Attn: Jodie W. McLean
	 

	 	Telephone: (803) 779-4420
	 

	 	Facsimile: (803) 254-4983
	 

	 	E-mail: jmclean@edensandavant.com
	 
	 	 
	(b) Seller and Notice Address:

	 	With a copy to:
	HM Acquisition Group LLC, a Virginia limited

	 	Kennerly Lamishaw & Rossi LLP
	liability company

	 	Attn: Howard Parelskin
	c/o Octagon Partners

	 	707 Wilshire Boulevard, Suite 1400
	Attn: J.P. Williamson

	 	Los Angeles, CA 90017
	210 5th Street, NE

	 	Telephone: 213/426-2075
	Charlottesville, VA 22902

	 	Facsimile: 213/596-5791
	E-mail: jp@octagonpartners.com

	 	E-mail: howardparelskin@klrfirm.com
	 
	 	 
	And to:
	 	 
	Asset Capital Corporation, LLC, a
	 	 
	Delaware limited liability company
	 	 
	Attn: Peter Minshall
	 	 
	4733 Bethesda Avenue, Suite 800
	 	 
	Bethesda, MD 20814
	 	 
	Telephone: 301/656-2333
	 	 
	Facsimile: 301/656-1960
	 	 
	E-mail: pminshall@assetcapitalcorp.com
	 	 

 

 

	 	 	 
	(c) Title Company:

	 	(d) Escrow Agent:
	First American Title Insurance Company

	 	First American Title Insurance Company
	5775 Glenridge Drive, Suite A-240

	 	5775 Glenridge Drive, Suite A-240
	Atlanta, Georgia 30328

	 	Atlanta, Georgia 30328
	Attention: Ann Broadaway

	 	Attention: Ann Broadaway
	Telephone: 404-836-6358

	 	Telephone: 404-836-6358
	Facsimile: 404-303-1235

	 	Facsimile: 404-303-1235
	Email: ABroadaway@firstam.com

	 	Email: ABroadaway@firstam.com

	 	 	 	 	 
	 

	 	(e) Date of this	 	 
	 

	 	     Agreement:
	 	The latest date of execution by the Seller or the Purchaser, as
indicated on the signature page.
	 
	 	 	 	 
	 

	 	(f) Purchase Price:
	 	$27,000,000.00; provided from and after the
365th day after the Date of this Agreement (the “Escalation Date”), the
Purchase Price shall increase by $157,500.00 each successive 30th day after
the Escalation Date until the Closing Date occurs. Notwithstanding the foregoing,
however, such escalation in the Purchase Price shall not accrue during (i) any period
in which the Closing Date is delayed due to Seller’s default under this Agreement; or
(ii) after the date that is thirty (30) days after Site Plan Approval if Seller has not
obtained all necessary Seller’s Work Approvals in order for the Closing to occur.
	 
	 	 	 	 
	 

	 	(g) Earnest Money:
	 	$2,500,000.00, plus interest thereon.
	 
	 	 	 	 
	 

	 	(h) Closing Date:
	 	As designated by the Purchaser upon not less than five
days’ prior notice, but no later than the earlier of (i) 30 days after Seller has
obtained Development Approvals (as defined in Section 2.4) , or (ii) 540 days following
the Date of this Agreement.
	 
	 	 	 	 
	 

	 	(i) Broker:
	 	CB Richard Ellis.
	 
	 	 	 	 
	 

	 	(j) Proposed Project:
	 	Commercial shopping center as shown on the Site Plan.
	 
	 	 	 	 
	 

	 	(k) Seller’s Work:
	 	The rough grading, infrastructure and other work and
obligations described on Exhibits C-1 and C-2;
	 
	 	 	 	 
	 

	 	(l) Seller’s Work	 	 
	 

	 	     Approvals:
	 	The issuance by all applicable governmental agencies having
jurisdiction over the Seller’s Work, of all approvals, permits and
authorizations that are necessary to evidence completion of all the Seller’s
Work Seller’s Work Approvals shall not be considered to have been obtained if

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	 	 	 	all required County and/or Virginia Department of
Transportation (VDOT) bonds securing completion of Seller’s
Work have not been posted. Seller’s Work Approvals also
shall include any approvals, agreements, rights of way or
dedications required by private entities in order for Seller
to fully perform and complete Seller’s Work, such as by way
of illustration, and without limitation, to bring required
utility systems to the boundary of the Property or to acquire
right of way for necessary off-site road improvements.
	 
	 	 	 	 
	 

	 	(m) Site Plan:
	 	The preliminary site plan attached hereto as Exhibit
D. The term “Site Plan” shall mean the current site plan attached hereto together
with any modifications to such site plan, from time to time, in accordance with (i) the
provisions of this Agreement or (ii) as otherwise required by governmental authority
during the process of obtaining Zoning Approval and/or Site Plan Approval and provided
that such modifications are otherwise permitted in accordance with the provisions of
Section 2.4 below.
	 
	 	 	 	 
	 

	 	(n) Site Plan Approval:
	 	All of the following: (a) all necessary and required
preliminary and final development plan and site plan approvals necessary to obtain
permits for and to construct the Proposed Project on the Property in accordance with
the Site Plan have been approved by Albemarle County, Virginia and any other
governmental, quasi-governmental, or private entity having approval rights over the
site plans for such Proposed Project; (b) all periods within which challenges or
appeals could be filed have expired with no appeal or challenges having been filed; and
(c) Purchaser’s right to proceed with permitting and development of the Proposed
Project on the Property pursuant to the Site Plan have become fully vested under
Virginia law (subject only to approval and permitting of building plans and issuance of
building permits in conformity with applicable building code requirements for safety
and health).
	 
	 	 	 	 
	 

	 	(o) Subdivision	 	 
	 

	 	     Approval:
	 	A final plat of subdivision for the Property (the “Subdivision
Plat”) and recordation of the Subdivision Plat in the land records of Albemarle
County, or a boundary line adjustment in lieu thereof, establishing the
Property as legally subdivided lot or parcel of land separate and apart from
any other real property and with a separate tax map number (with boundaries
substantially conforming to those depicted on the Site Plan).

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	 	(p) Zoning Application:
	 	ZMA 2005-015, filed with Albemarle County,
Virginia, requesting rezoning of the Property to Planned Development — Mixed
Commercial (“PD-MC”); together with the Application Plan for Hollymead Town Center,
Area A, TM 32 Parcels 42A, 42C, 44, 45, 50, TM 46 Parcel 5, DB 3009 Page 96, Rio
District, Albemarle County, Virginia, consisting of sheets A1 through A7; together with
SP 2005-027 requesting a special permit for a drive-up window for a bank on the
Property; together with all subsequent submittals, special use permit applications, and
proposed proffers with respect to the foregoing in accordance with the terms of this
Agreement.
	 
	 	 	 	 
	 

	 	(q) Zoning Approval:
	 	All of the following: (a) the Zoning Application (as
amended to substitute the Site Plan for the current application plan under the Zoning
Application) has been approved by Albemarle County, Virginia; (b) the 30 day period
within which challenges or appeals could be filed have expired with no appeal or
challenges having been filed. Notwithstanding any provision herein to the contrary, in
no event shall the Zoning Approval be deemed to be obtained prior to the end of the of
the Site Plan Revision Period provided in Section 2.3 unless Purchaser waives in
writing any further right to modify the Site Plan pursuant to Section 2.3.

     1.2 Property. Subject to the terms and conditions of this Agreement, Seller agrees to
sell to Purchaser, and Purchaser agrees to purchase from Seller, the approximately 31 acres of land
located in Albemarle County, Virginia, as described in Exhibit A attached hereto, together
with all and singular the rights, benefits, privileges, easements, tenements, hereditaments, and
appurtenances thereunto belonging or appertaining thereto, and Seller’s rights, easements or other
interests, if any, in and to adjacent streets, alleys and rights-of-way, or other property abutting
such real property, and together with any and all minerals and mineral rights, water and water
rights, wells, well rights and well permits, water and sewer taps, sanitary or storm sewer capacity
or reservations and rights under utility agreements with any applicable governmental or
quasi-governmental entities or agencies with respect to the providing of utility services to such
real property and together with originals or the right to copy all files and records which are in
the possession or control of Seller to the extent same relates to the Property and are required for
the development and operation of said land; and together with all assignable guaranties and
warranties, if any, and transferable permits, licenses, construction contracts and documents,
goodwill and all other intangible property, if any, related solely to said land and appurtenances
related to the land (to the extent there are guaranties and warranties, if any, and permits,
licenses, construction contracts, documents, instruments and other contractual rights benefiting or
relating in part to said land and appurtenances and in part to other property retained by Seller,
then Seller agrees to reasonably cooperate with Purchaser in exercising rights under same for the
benefit of the Property and the Purchaser’s Proposed Project and, solely with respect to the
Property, to

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permit Purchaser to enforce same against third parties in the name and stead of Seller); and
together with all of Seller’s right, title and interest in and to any leases, licenses or other
rights of occupancy or use, if any, relating to the land and all copies of files, documents and
materials relating to any such leases, licenses or rights of use or occupancy, if any (all of the
foregoing being collectively hereinafter referred to as the “Property”).

     1.3 Earnest Money. Concurrently with execution and delivery of this Agreement by
Purchaser and Seller, Purchaser shall deposit the Earnest Money, in immediately available federal
funds, with the Escrow Agent. The Earnest Money shall be held and disbursed by the Escrow Agent
pursuant to Article 9 of this Agreement. The Earnest Money shall be applied to the Purchase
Price at Closing. If this Agreement terminates pursuant to any express right of Purchaser to
terminate this Agreement, the Earnest Money shall be refunded to Purchaser immediately upon
request, and all further rights and obligations of the parties under this Agreement shall
terminate, except those which by their terms survive any termination of this Agreement.

ARTICLE 2: INSPECTION AND DEVELOPMENT APPROVALS

     2.1 Seller’s Delivery of Specified Documents. Seller has previously provided to
Purchaser the following (the “Property Information”) to the extent in Seller’s possession
or control:

     (a) the latest property tax bills and value renditions from all taxing authorities;

     (b) any environmental, soils or engineering reports prepared for Seller concerning the
Property;

     (c) any existing plans, specifications, permits, approvals (and any applications for permits
or approvals), maps and surveys (including, without limitation, archaeological, boundary,
topographic and tree surveys);

     (d) any subdivision reports or applications;

     (e) any traffic studies, and historical reviews;

     (f) any existing title report, commitment or policy, and a current survey of the Property;

     (g) any written notices of violations or infractions from any governmental authority
concerning the Property;

     (h) any agreements with any governmental authority with respect to any zoning modification,
variance, exception, platting or other matter relating to the zoning, use, development, subdivision
or platting of the Property;

     (i) any contracts or agreements relating to the Property and services being provided or to be
provided to the Property which would be binding upon Purchaser following the Closing;

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     (j) any letters of intent or leases concerning leasing or occupancy of the Property, including
a proposed lease with Kohl’s Department Stores, Inc. (the “Kohl’s Lease”); and

     (k) a description of the infrastructure improvements to be completed by Seller’s
predecessor-in-interest or its affiliate for the benefit of the Property, and information regarding
any bonds or other security to provide assurances of the completion of that work.

     Seller shall use good faith efforts to provide all Property Information in the same form as
such materials are kept, used, stored or maintained by Seller in Seller’s ordinary course of
business. Seller does not have actual knowledge of any material inaccuracies with same except as
otherwise disclosed in writing to Purchaser. Except as otherwise expressly provided herein, Seller
makes no representations or warranties as to the accuracy or completeness of the Property
Information. Notwithstanding anything to the contrary contained in this Agreement, Purchaser
agrees that in the event this Agreement is terminated for any reason, all Property Information
shall be promptly returned to Seller, which obligation shall survive any termination of this
Agreement.

     2.2 Investigations. Purchaser and its agents, employees, and representatives shall
have a continuing right of reasonable access to the Property, and to all information relating
thereto, during the pendency of this Agreement for the purpose of conducting surveys, engineering,
geotechnical, and environmental inspections and tests of a non-invasive nature; provided, coring
and sampling of soils and ground water in accordance with commercially accepted testing practices
shall be permitted. Purchaser may, in its discretion, undertake zoning and traffic studies,
historical reviews, and any other inspections, studies, or tests reasonably required by Purchaser.
In the course of its investigations Purchaser may, with Seller’s consent, make inquiries to third
parties including, without limitation, lenders, contractors, and municipal, local, and other
government officials and representatives. Purchaser shall keep the Property free and clear of any
liens and will indemnify, defend, and hold Seller harmless from all claims and liabilities asserted
against Seller as a result of any such entry by Purchaser, its agents, employees, or
representatives; provided, the foregoing indemnity shall not indemnify Seller from any liability
resulting merely from the fact that Purchaser’s investigations identify environmental matters or
other adverse conditions affecting the Property that were not created by Purchaser. If any
inspection or test disturbs the Property, Purchaser will restore the Property to the same condition
as existed prior to any such inspection or test. Purchaser’s obligations under this paragraph
shall survive the Closing and any termination of this Agreement.

     2.3 Amendment to Current Application Plan to Substitute Site Plan; Special Use Permit;
Site Plan Modifications. Purchaser acknowledges that Seller has previously prepared an
application plan for the development of the Property which has been submitted to Albemarle County
in connection with the existing Zoning Application. As soon as practicable following the Date of
this Agreement (but in any event during the Site Plan Revision Period after Purchaser and Seller
have met with the planner and Purchaser has indicated that it has approved such Site Plan for
submission), Seller shall (i) file an amendment to the current Zoning Application to substitute the
Site Plan in lieu of the current application plan referenced above in accordance with the
provisions of this Agreement and all references in this Agreement to the Zoning Application shall
mean the Zoning Application as amended to substitute the Site Plan for the existing application
plan (the amended Zoning Application shall provide that the uses for the

-6-

 

Proposed Project (i.e. with floor area exceeding 200,001 square feet and with up to three
hundred twenty-five thousand (325,000) square feet of leasable retail space, including a pharmacy
with drive through, restaurant space for full-service sit down restaurants of up to 70,000 square
feet and a theater with not less than 2100 seats) will be subject only to the minimum number of
required parking spaces for a “Shopping Center” under the Code (i.e. 4.50 parking spaces per 1000
square feet of floor area)(and not the required number of parking spaces applicable to any of the
individual uses within the Proposed Project(i.e. restaurant uses are not required to independently
park at 13 parking spaces per 1000 square feet; cinemas at 1 parking space for each three (3)
seats; etc); and (ii) a special use application to permit the operation of a drive through for the
pharmacy and bank as depicted on the Site Plan). The amended application plan shall provide
flexibility to construct two (2) stories for the premises labeled as “Kohls” on the Site Plan and
to eliminate or delay construction of the second floor theater and structured parking deck.

     Purchaser shall have the absolute right in Purchaser’s sole discretion, from time to time
during the period commencing on the Date of this Agreement and continuing through the
180th day after the Day of this Agreement (the “Site Plan Revision Period”), to
materially change or modify the form of Site Plan attached to this Agreement, and any subsequent
revisions thereto between the Date of this Agreement and the expiration of the Site Plan Revision
Period. Seller acknowledges that such changes may be necessary based on responses from prospective
tenants and such other factors as Purchaser may determine in its sole discretion during the Site
Plan Revision Period. Purchaser shall provide Seller with copies of such revised site plans during
the Site Plan Revision Period in order to coordinate the Zoning Approval process. In the event
Purchaser modifies the Site Plan under the foregoing provision during the Site Plan Revision
Period, then Seller shall, from time to time as appropriate, (i) file an amendment to the then
current Zoning Application to substitute the modified site plan as the application plan under the
Zoning Application and all references in the Agreement to the Zoning Application shall mean the
Zoning Application as amended to substitute such new application plan (and all references in this
Agreement to Site Plan shall mean and refer to said modified site plan); provided however, Seller
may elect to wait to resubmit an amendment to the Zoning Application to substitute any such Site
Plan until Purchaser has confirmed in writing that it is settled upon such Site Plan as its final
plan and Purchaser elects to waive the remainder of the Site Plan Revision Period (in which event,
the Site Plan Revision Period shall be deemed to end on the date Purchaser gives notice of such
waiver). Upon expiration of the Site Plan Revision Period (by natural expiration and/or waiver),
Seller agrees to submit an amendment to the Zoning Application to substitute the Site Plan as the
Zoning Application Plan no later than ten (10) days after the end of the Site Plan Revision Period.
Upon expiration of the Site Plan Revision Period, Purchaser shall have no further right to
voluntarily revise the Site Plan except in response to comments and revisions that may be required
by applicable governmental authority to obtain Zoning Approval and/or Site Plan Approval unless
Purchaser elects to waive in writing Zoning Approval and Site Plan Approval and to proceed to
Closing (but Seller shall remain obligated to complete Seller’s Work in any such event). Purchaser
agrees that in connection with formalizing the final Site Plan and pursuing Zoning Approval and
Site Plan Approval that the design of such site improvements will be comparable to or exceed the
quality of the improvements developed on the adjoining Regency project (i.e. the adjoining
Target/Harris Teeter project).

-7-

 

     2.4 Developmental Approvals. Purchaser shall not be obligated to close this
transaction unless Seller has finally obtained all of the following: (i) the Zoning Approval on
terms and conditions reasonably acceptable to Purchaser and Seller; (ii) Site Plan Approval on
terms and conditions reasonably acceptable to Purchaser; (iii) the special use permits referenced
in Section 2.3(ii) above; (iv) any required rights of way or dedications that may be required to
perform Seller’s Work or to otherwise extend any utility to the boundary of the Property; (v) any
VDOT or other governmental permits or approvals for curb cuts or entrances to the Property as
depicted on the Site Plan and all transportation approvals, water quality certifications, wetlands
permits, and any other discretionary environmental approvals to be obtained in order to proceed
with the development of the Property in accordance with the Site Plan; (vi) any other Seller Work
Approvals which are other than administrative, non-discretionary permits and approvals issueable as
of right after obtaining final site plan approval and provided that the applicable plans for
Seller’s Work comply with code requirements for safety and health (collectively, items (i) through
(vi) above are referred to as the “Development Approval”); provided, however, to the extent
portions of Offsite Improvements included in Seller’s Work are not required to be completed in
order to obtain certificates of occupancy or equivalent to open and operate the Property as the
Proposed Project (including in order to extend utility service (including sanitary sewer and storm
water drainage) to the Property, and to complete the portions of Meeting Street and Town Center
Drive contiguous to the Property and providing ingress and egress to Route 29 at all access points
depicted on the Site Plan), then Purchaser agrees to proceed to Closing on the Closing Date and
Seller will diligently seek to obtain all such other permits and approvals post-closing in order
to complete Seller’s Work under this Agreement. Seller’s efforts to obtain the Development Approval
shall be at its sole cost and expense (including the posting of any fiscal/bond requirements),
provided that Purchaser shall be responsible for any engineering fees and other costs associated
with the preparation and delivery of the initial Site Plan attached to this Agreement, or to
revisions thereto voluntarily made by Purchaser during the Site Plan Revision Period in accordance
with the above provisions (Seller shall be responsible for engineering and other costs to take the
Site Plan through Zoning Approval and Site Plan Approval due to changes required to satisfy
governmental requirements and comments).

     Seller shall use good faith reasonable efforts to obtain Development Approval prior to the
outside date for Closing to occur. Purchaser agrees to cooperate with Seller, without expense to
Purchaser, to enable Seller to apply for and obtain Development Approval in a timely manner.
However, in no event shall Seller be obligated to agree to any proffers, additional fees or
charges, or modifications which would result in any material additional costs to Seller in
completing Seller’s Work or obtaining Seller’s Work Approvals, or any material additional financial
obligations of Seller beyond those set forth in the proffers attached hereto as Exhibit D
(the “Proforma Proffers”), and in no event shall Seller agree to any changes, modifications,
restrictions or proffers requested by governmental authorities as a condition to the Development
Approval without Purchaser’s prior written consent, which consent shall not be unreasonably
withheld, conditioned or delayed, unless such matters are susceptible of being performed by Seller
as part of Seller’s Work, and Seller in fact agrees to assume full responsibility for the
performance of such matters as part of Seller’s Work. In no event shall Purchaser be obligated to
consent to: (i) any changes that would alter in any respect that is material and adverse to the
Property, the Zoning Application with respect to the use, operation, access, layout or density
applicable to the Property as set forth or depicted on the Site Plan approved by Purchaser, (ii)
any change that would alter, in any respect that is material and adverse to the Property, the

-8-

 

access, ingress and egress to any portion of the Property over Route 29, Towncenter Drive or
Meeting Street; and/or (iii) any change which would otherwise impose any additional monetary costs
(other than which are de minimis) (and/or increase in any material respect the difficulty of
construction or operations of Purchaser with respect to the Property) or otherwise change the
proffers in a way materially more burdensome to the owner of the Property (monetarily or otherwise,
insofar as same applies to the Property) (a “Material Modification”).

     In the event Albemarle County or any other governmental authority imposes conditions which are
reasonably unacceptable to Purchaser (and Seller has been unable to get such authority to waive
such conditions after reasonable diligent efforts) and Seller is not willing or able to assume the
related obligations as provided above, then unless otherwise agreed by Purchaser and Seller, Seller
shall be entitled to notify Purchaser in writing of such condition and require Purchaser to elect
within thirty (30) days of receipt of such written notice from Seller to either accept such
condition or elect to terminate this Agreement, in which event the Earnest Money shall be returned
to Purchaser and except as expressly provided herein, neither party shall thereafter have or incur
further liability or obligations hereunder; Purchaser shall be deemed to have elected to terminate
this Agreement under the preceding sentence unless it affirmatively elects in writing to waive any
objection to such condition within such thirty (30) day period.

     In the event the parties mutually determine after the twelfth (12th) month after
the Date of this Agreement that any of the Development Approvals are not going to be obtainable in
accordance with the terms of this Agreement, then, in such event, unless otherwise agreed by
Purchaser and Seller, either party shall be entitled to notify the other in writing of is election
to terminate this Agreement, in which event the Earnest Money shall be returned to Purchaser and
except as expressly provided herein, neither party shall thereafter have or incur further liability
or obligations hereunder; provided, Purchaser may avoid any such termination exercised by Seller in
the event that Purchaser gives notice to Seller within thirty (30) days of receipt of Seller’s
notice that Purchaser elects to waive the applicable Development Approval which is not obtainable
and proceed to Closing (otherwise in accordance with the terms of this Agreement and obtaining any
remaining Development Approvals which are obtainable).

     Seller shall make good faith efforts to, among other things, keep Purchaser informed as to:
(i) the nature of anticipated upcoming meetings, conferences, calls and other communications with
governmental, quasi-governmental and/or private bodies, groups, agencies (and/or such groups’,
bodies’ and/or agencies’ staffs ) and/or individuals), (ii) the substance of and outcome of
meetings, conferences, calls and other communications with governmental, quasi-governmental and/or
private bodies, groups, agencies (and/or such groups’, bodies’ and/or agencies’ staffs ) and/or
individuals); (iii) the progress of its Zoning Application, Site Plan Approval and other
information pertaining to the Development Approval, specifically including, but not limited to,
information regarding (and providing copies of) any amendments and modifications that may be
requested by Albemarle County or other public officials or that Seller reasonably believes are
necessary or desirable in connection with obtaining Zoning Approval and/or Site Plan Approval
(following any necessary consultation with Purchaser, as provided herein).

     Seller will notify Purchaser, as soon as practicable (but, in any event, in advance thereof),
of the hearing dates of scheduled public or non-public hearings or meetings before the zoning or

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planning commission formally or informally scheduled to consider or discuss the Zoning
Application, application for Site Plan Approval or any related matters. Seller will provide
Purchaser advance review of each subsequent zoning/site plan submittals and notice and opportunity
to attend zoning meetings and conferences together.

     To the extent this Agreement obligates Seller to pay all financial proffers and to
perform all off-site proffer obligations associated with the rezoning pursuant to the Zoning
Application (subject to Seller’s approval of proffer obligations in accordance with the terms of
this Agreement), Purchaser will not withhold consent to same to the extent Seller is obligated to
perform same and such obligation is to be performed either before Closing or otherwise in a manner
that will not hinder Purchaser’s development and opening of the Property for the Proposed Project
provided a sufficient escrow is established at Closing as provided herein to secure Seller’s
obligation to pay and/or perform same post-Closing in a timely manner. Seller agrees to perform,
at Seller’s sole cost and expense, all off-site improvements (i.e. outside of the Property) which
may be required to be proffered as a condition to approval of the Zoning Application or to
development of the Property and/or issuance of certificates of occupancy, or equivalent
authorizations, for the Property for operation of the Property in accordance with the Site Plan;
provided, Seller shall not be required to expand its proffer obligations beyond that contained in
the Proforma Proffers unless otherwise agreed to by Seller under the terms of this Agreement and
Seller shall not have any obligation to perform any additional off-site improvements or other
obligations which may be required due to any change in use or layout of the Property from that
provided for in the Site Plan Approval. Seller shall pay, at Seller’s sole cost and expense, all
monetary proffer contributions required to be funded as a condition to approval of the Zoning
Application or to development of the Property and/or issuance of certificates of occupancy, or
equivalent authorizations, for the Property for operation for the Proposed Project to the extent
contained in the Proforma Proffers or otherwise agreed to be performed by Seller under the terms of
this Agreement.

     Notwithstanding the description of the “Property” attached to this Agreement, Purchaser and
Seller agree to attempt to cause the “Pond” and “Stream Mitigation Area” to be separately
subdivided out from the Property and retained by Seller instead of being conveyed as part of the
Property provided same does not adversely affect Zoning Approval or other development entitlements
with respect to the Property or Seller’s Retained Land. In such event, Seller will grant to
Purchaser all necessary easements to connect to utilities located within such area and to utilize
the Pond and Stream Mitigation Area in accordance with the Storm Water Agreement.

     Following receipt of Zoning Approval, Purchaser, at its expense, shall cause its engineers to
engineer and design the Site Plan and all other related plan submissions required to be submitted
in order to prepare a package for initial submittal for Site Plan Approval (e.g. landscaping plans,
utility plans, lighting plans, etc.) (collectively, the ”Site Plan Package”) to be engineered and
designed consistent with the Zoning Approval. Purchaser shall have the right to be actively
involved with its design engineers to comment and revise the form of the Site Plan Package prior to
submission as long as such comments and revisions are consistent with the Zoning Approval. The
parties shall endeavor in good faith to complete the preparation of the final Site Plan Package in
a form suitable for submission for Site Plan Approval within [60] days following issuance of Zoning
Approval and to submit same within ten (10) days after Purchaser has confirmed final approval of
the Site Plan Package. Upon Purchaser’s approval of such Site

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Plan Package in accordance with the above provisions, all reference in this Agreement to the
“Site Plan” shall mean and refer to the form of site plan included with such Site Plan Package.
Seller shall pay all reasonable costs of preparation of the Site Plan Package and for processing
such submission through Site Plan Approval. Seller, at its sole cost and expense, shall submit the
Site Plan Package and cause engineers approved by Purchaser to take such Site Plan Package through
final Site Plan Approval (including, without limitation, making any necessary revisions to such
Site Plan Package as required to process same through final Site Plan Approval provided such
revisions are otherwise acceptable to Purchaser). Purchaser shall have the right to be actively
involved with Seller’s engineers and other professionals retained to process the Site Plan Package
through Site Plan Approval and to comment upon and approve any required revisions required to
obtain Site Plan Approval consistent with the Zoning Approval.

     2.5 Kohl’s Lease. Purchaser and Seller acknowledge that Seller is in the final stages
of negotiating the Kohl’s Lease. Notwithstanding same, for so long as this Agreement remains in
effect and Purchaser is not in default hereunder, Seller shall not enter into the Kohl’s Lease
without the prior written consent of Purchaser, which may be withheld by Purchaser for any reason.
Purchaser shall have the right to assume the negotiation of a lease transaction with Kohl’s (but no
such lease transaction entered into by Purchaser with Kohl’s shall be binding on the Seller or the
Property prior to Closing without the written consent of Seller). Purchaser may contact Kohl’s
directly and without Seller participating in any such negotiations.

ARTICLE 3: TITLE AND SURVEY REVIEW

     3.1 Delivery of Title Commitment and Survey. Purchaser has caused to be prepared:
(i) a current, effective commitment for title insurance (the “Title Commitment”) issued by
the Title Company, in the amount of the Purchase Price with Purchaser as the proposed insured, and
accompanied by true, complete, and legible copies of all documents referred to in the Title
Commitment, a copy of which has been provided to Seller. Purchaser and Seller agree to jointly
coordinate a current ALTA survey of the Property (the “Survey”), prepared by Rivanna Engineering &
Surveying PLC, which Survey will be utilized as the Subdivision Plat for the Property. Seller will
pay the cost of the Survey which would otherwise would have been charged to prepare a boundary line
adjustment plat for the Property in a form suitable for obtaining the Subdivision Approval
(including placing pins along property boundaries) and Purchaser shall pay any increase in the cost
of the Survey attributable to compliance by the surveyor with Purchaser’s ALTA requirements.

     3.2 Title Review and Cure. The term “Permitted Exceptions” shall mean
Exceptions 5, 7 through 16 and 28 in the Title Commitment and those matters disclosed on Seller’s
existing survey of the Property entitled “Plat Showing Boundary Survey of Tax Map 32 Parcels 42A,
42C, 44, 45, 50 & Tax Map 46, Parcel 5, Hollymead Towncenter – Area A, Rivanna District, Albemarle
County, Virginia”, dated August 5, 2005, consisting of sheets 1 through 7, prepared by Rivanna
Engineering & Surveying, PLC (the “Existing Survey”); provided, however, it shall be a condition
precedent to Purchaser’s obligation to Close that (i) Seller shall be required to obtain a
modification to that certain landscape easement created by that certain Cross Access Easement and
Construction Use and Maintenance Agreement (Book 2678, Page 502)(Exception 28 in the Title
Commitment) in order to permit curb cuts and access drives within such landscape easement area as
depicted on the Site Plan; and (ii) Seller shall be required to obtain a vacation

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and termination of those certain utility easements affecting the Property recorded at Deed
Book 233, Page 420 and 421 (Exception 27 in the Title Commitment); provided, if Seller determines
after 90 days after the Effective Date (Seller having exercised reasonable efforts to obtain the
vacation of such easements) that Seller will be unable to eliminate such exception prior to the
Closing Date, then Seller shall have the right to require Purchaser to elect within sixty (60) days
of receipt of Seller’s notice to either (a) terminate this Agreement, in which event the Deposit
shall be refunded to Purchaser or (b) waive the requirement that Seller obtain the vacation of such
easement exceptions as a condition to Closing; (iii) Seller shall either provide the Title Company
with evidence satisfactory to the Title Company in order to deleted Exception 8 on the basis that
all such post closing obligations burdening the Property have been fully performed or bonded to
VDOT or the County or Seller shall establish an escrow in an amount reasonably acceptable to
Purchaser at Closing in order to assure that any outstanding obligations under Exception 8 that
burden the Property are satisfactorily and timely performed; (iv) Seller, at its sole cost and
expense, to the extent not previously performed, shall perform all construction obligations of (a)
“Wood” under that certain Cross Access Easement and Construction Use and Maintenance Agreement
dated January 23, 2004, with respect to “Part II of Access Road A” and “Part III of Access Road A”,
“Ridge Road” and all other construction obligations of Wood whatsoever under such instrument, to
the extent not previously performed; and (b) “Wood” under that certain Storm Water Management
Drainage and Construction Easement dated January 23, 2004, with respect to the “Pond” and other
“Improvements”, “Easement Area”, “Stream Easement Area”, “Buffer Area” and all other construction
obligations of Wood whatsoever under such instrument, to the extent not previously performed or
Seller shall establish an escrow in an amount reasonably acceptable to Purchaser at Closing in
order to assure that any outstanding obligations under such agreements are satisfactorily and
timely performed.

     In the event any new title or survey matter first arises after the effective date of the Title
Commitment or Survey, as applicable, that is material and adverse to the Property, then Purchaser
shall have the option of terminating this Agreement within ten (10) days of notice from Seller that
Seller is unwilling or unable to cure same, in which event the Earnest Money shall be returned by
Escrow Agent to Purchaser and neither party shall incur any further liability or obligations under
this Agreement; provided, notwithstanding any provision herein to the contrary, Seller shall have
the obligation to cure any of the following title matters: (a) liens of an ascertainable amount
created by, through or under Seller, which shall be released at the Closing, and (b) any exceptions
or encumbrances to title which are created by, through or under Seller (inclusive of tax liens and
non-appealable judgment liens) and which are (i) either unrecorded of record in the applicable land
records of the Property as of the date of the Title Commitment except to the extent otherwise
disclosed in and made part of this Agreement or (ii) are created by, through or under Seller
(including tax liens and non-appealable judgment liens) after the date of the Title Commitment
without the written consent of Purchaser, which shall be removed by the Closing Date. Seller will
not (i) mortgage, pledge or subject any of the Property or any part thereof to an unbonded lien or
other encumbrance, which is not discharged on or prior to Closing, (ii) permit any mechanic’s or
materialmen’s lien for work performed at the instance of Seller or which is part of the Seller’s
Work to attach against any of the Property, (iii) execute or cause or permit to be entered into,
executed or placed of record any declarations, easements, rights of way, covenants, conditions,
restrictions, encumbrances, or other document or agreements affecting title to any portion of the
Property without the consent of Purchaser, which consent shall not be unreasonably withheld,
conditioned or delayed; (iv) enter into, or subject

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any portion of the Property to any option contract, sales contract, lease, assignment, or any
other agreement pursuant to which any party shall have any right to occupy any portion of the
Property that would be binding on Purchaser or the Property following Closing.

ARTICLE 4: SELLER’S WORK; RISK OF LOSS

     4.1 Seller’s Work. Following governmental approval of the Zoning Approval, Seller
agrees to promptly commence and thereafter diligently pursue to completion the Seller’s Work
described on Exhibit C-2. All of Seller’s Work shall be performed in a good and workmanlike
manner and in accordance with the approved Preliminary Plans (defined below) and Schedule (defined
below) and otherwise in accordance with the provisions of this Agreement. Purchaser shall have the
right at any time and from time to time to inspect the progress of Seller’s Work and to receive
copies of all construction documents, including, without limitation, bid packages, professional
certifications, payment applications and lien waivers. Seller warrants that all of Seller’s Work
described on Exhibit C-1 has been performed in a good and workmanlike manner and is
suitable for development of the Property for the Proposed Project and that Seller shall provide
engineering certifications from engineers reasonably satisfactory to Purchaser and other data
within thirty (30) days after the Date of this Agreement to verify that such work is in fact
completed and if any such work is not in fact completed then Seller will complete same as if such
work were made part of Exhibit C-2 under this Agreement.

     
Seller shall employ Rivanna Engineering and Surveying, whose address is                     
                    , or
another professional firm approved by Purchaser (such employed party being referred to as the
“Project Engineer”) to prepare the Preliminary Plans (defined below) for Seller’s Work in
accordance the concepts and specifications set forth in the Site Plan, Exhibit C-2. Seller
shall employ Gooch Engineering and Testing, whose address is                                     
                        , or another
professional firm approved by Purchaser (such employed party being referred to as the “Soils
Engineer”) to prepare the soils report referenced on Exhibit C-2 and to supervise and
certify compaction/proctoring of the grading included within Seller’s Work. Purchaser shall have
the right from time to time to engage an independent nationally/regionally recognized and reputable
environmental soils engineer to review and verify certifications and testing by the Soils Engineer
and to audit any such tests, reports and certifications.

     Following receipt of Zoning Approval, Seller, at its sole cost and expense, shall prepare
preliminary plans and specifications (“Preliminary Plans”) for Seller’s Work in such detail as to
be acceptable to the governmental authorities having jurisdiction over the Property in order for
the Seller to obtain Seller’s Work Approvals. The Preliminary Plans shall conform to the Site Plan,
and the scope of Seller’s Work on Exhibit C-2. Seller’s Preliminary Plans shall show in
reasonable detail the sequencing of Seller’s Work (“Schedule”) in order to substantially complete
same by no later than nine (9) months after Site Plan Approval has been obtained and otherwise in
accordance with the milestone schedule on Exhibit C-3 (with all on-site grading and work
required within the Property in order for Purchaser to proceed with vertical construction being
substantially completed within no later than three (3) months after final Site Plan Approval has
been issued). As used in this Agreement, the term “substantially complete” or “substantially
completed” or a similar reference shall mean such work is in fact complete subject only to minor
punch list items which can be completed within thirty (30) days and which do not interfere with

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the development, operation, use or occupancy of the Proposed Project for the purposes
intended. Purchaser shall have ten (10) days after receipt of the Preliminary Plans to notify
Seller in writing of any objections that Purchaser may have thereto. If Purchaser so objects on
the basis that such Preliminary Plans fail to conform the scope of Seller’s Work on Exhibit
C-2, Seller shall have thirty (30) days to prepare and submit revised plans and specifications
to Purchaser (and such plans as revised shall be the Preliminary Plans hereunder). The Preliminary
Plans shall be deemed approved for all purposes if Purchaser does not object to same in writing
within the period specified above. Neither the recommendation, designation, comment upon or
approval by Purchaser of the Preliminary Plans (or any other plans prepared by Seller) (nor any
other architects or engineers plans with respect to Seller’s Work), shall constitute a
representation or warranty by Purchaser that such plans either (a) are complete or suitable for
their intended purpose, or (b) comply with applicable governmental requirements; and Seller
expressly agrees that Purchaser assumes no responsibility or liability whatsoever to Seller or to
any other person or entity for such completeness, suitability or compliance of the Preliminary
Plans and Seller shall be solely responsible for assuring that such plans comply with any design
criteria specified in this Agreement for Seller’s Work. Seller shall not make any material changes
in the approved Preliminary Plans (or construct improvements other than as authorized by the
approved Preliminary Plans) except to the extent Seller is otherwise expressly permitted to do so
under this Agreement. Upon approval of the Preliminary Plans by Purchaser, Seller shall use good
faith efforts to promptly apply for all necessary Seller’s Work Approvals to perform Seller’s Work.

     Seller’s Work shall be performed by reputable, financially responsible contractors. Seller
shall cause all professional certifications regarding completion of Seller’s Work, or portions
thereof, to run for the benefit of Purchaser, its successors and assigns. Seller shall promptly pay
all contractors and materialmen amount due in connection with the performance of Seller’s Work.
Each contractor shall be required to provide construction warranties running to the benefit of
Purchaser, its successors and assigns, that all such work has been completed in a good and
workmanlike manner and in accordance with the permitted set of Preliminary Plans. Seller shall
cause all professional certifications regarding completion of Seller’s Work, or portions thereof,
to run for the benefit of Purchaser, its successors and assigns. Seller shall promptly pay all
contractors and materialmen amount due in connection with the performance of Seller’s Work.

     Upon completion of Seller’s Work, Seller shall furnish to Purchaser (i) a complete set of
sealed as-built (to the extent different from the Preliminary Plans approved by Purchaser) plans
and specifications for the Seller’s Work described on Exhibit C-1 and C-2, signed
by the approved architect/engineer; (ii) final payment applications from all contractors and
materialmen; (iv) certificate of Seller that Seller’s Work is in fact complete. Purchaser shall
have the right to inspect Seller’s Work upon completion and identify any items of work which are
incomplete and the parties shall agree upon a punchlist of any items that remain to be completed
and Seller shall promptly complete such punchlist items, if any.

     Seller shall immediately correct any deficiencies in Seller’s Work notice of which is given to
Seller within one (1) year after the later of the date of completion of Seller’s Work or the
Closing Date.

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     In the event Seller’s Work as described on Exhibit C-2 is not complete or bonded for
completion as of the Closing Date, Seller shall not be in default under this Agreement, but rather
Purchaser and Seller shall select a mutually satisfactory contractor to provide a firm bid of the
cost to complete such work, and after Closing, Seller shall complete Seller’s Work in strict
accordance with the Schedule, and there shall be withheld from the closing proceeds otherwise due
Seller an amount equal to 125% of the amount of such bid, which shall be applied to reimburse
Seller for the reasonable costs incurred by Seller for completing Seller’s Work, with any balance
remaining upon completion of such work, to be remitted to Seller (in the event Seller is unable to
obtain such a firm bid prior to Closing or the parties are unable to agree upon a mutually
satisfactory contractor, then Purchaser shall be entitled to reasonably estimate the costs to
complete such work and such amount shall be utilized for purposes of the foregoing provision).
Should Seller fail to substantially complete any of such work in accordance with the Schedule, and
should such failure continue for a period in excess of 30 days following written notice from
Purchaser (or if such failure cannot be remedied within 30 days, should Seller failure commence
commercially reasonable actions to complete such work within such 30 day period, and thereafter
diligently pursues such work until completion), then Purchaser shall have the right, by delivery of
not less than 5 days prior written notice to Seller, to assume responsibility for such work, in
which event Purchaser shall seek reimbursement for all reasonable costs and expenses incurred in
completion of Seller’s Work together with an administrative charge of 10% of such costs incurred by
Purchaser to complete Seller’s Work out of the escrow (and Purchaser, to the extent insufficient
funds exist in the escrow, shall be entitled to reimbursement from the Seller for such amounts).
Seller shall cause all construction contracts, professional contracts and other construction
related documents to include a provision that such contracts and documents are expressly assignable
to Purchaser in the event Purchaser exercises its self-help right under the foregoing provisions
for Purchaser, and in the event Purchaser exercises the self-help hereunder, Seller shall be deemed
to assign to Purchaser all right, title and interest of Seller in any construction contracts,
professional contracts, other construction documents and permits and licenses as may be required to
complete such Seller’s work.

     In the event Seller fails to substantially complete Seller’s Work in accordance with the
Schedule other than due to force majeure events beyond the control of Seller (excluding financial
reasons and defaults by contractors) and such failure delays Purchaser’s construction and/or
opening of building improvements on the Property, then Seller shall pay Purchaser the sum of $4,800
per day for each day of delay as a reimbursement expense of the carry charge that the parties
reasonably estimate that Purchaser is likely to incur in being unable to commence the operation of
the Property. Said amount is agreed to as liquidated damages for the increased carry that Purchaser
is likely to incur for the Property and the parties agree that it is a reasonable forecast of the
damages that Purchaser is likely to incur to carry the Property until opening and a more precise
estimate cannot be determined. Such liquidated delay damages are in addition to any other right
and remedy Purchaser may have under this Agreement for failure to perform or complete Seller’s
Work.

     Seller shall (or to the extent allowed and/or defined by applicable governmental requirements,
cause its selected site contractor to) timely apply for and procure prior to commencement of any of
the Seller’s Work a stormwater discharge permit in compliance with the National Pollution Discharge
Elimination System (“NPDES”) requirements of the Clean Water Act (33 U.S.C. Section 1251 et seq.)
(the “Permit”), and any corresponding state and local

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implementing regulations. Such application process shall include (a) filing with all
applicable Governmental Authorities, a Notice of Intent to obtain permit coverage under an
applicable general permit for storm water discharges from construction activities, or the
equivalent as may be required by the applicable governmental authorities, (b) developing (and
filing, if required, with all applicable governmental authorities) a Storm Water Pollution
Prevention Plan, or the equivalent as may be required by the applicable Governmental Authorities
(“SWPPP”), and (c) developing (and filing, if required) all other information and materials
required by the applicable governmental authorities (such as, but not limited to, a grading and
erosion control plan and wetlands, critical habitat and endangered species certificate, if
applicable) in order to obtain and comply with the Permit. The Permit shall be maintained
(including renewal if necessary) until completion of all of the Seller’s Work in accordance with
the terms of this Agreement. Seller shall cooperate with Purchaser upon request to transfer the
Permit into Purchaser’s name after Closing and completion of Seller’s Work. Seller shall provide
an on-site representative to be responsible for implementing, monitoring and ensuring compliance
with the SWPPP, the requirements of the Permit (including applicable inspection requirements), and
all other requirements of the applicable governmental authorities with respect to storm water
management so long as the Permit is outstanding and Seller’s Work is incomplete. Seller shall be
responsible for filing (or causing to be filed) all necessary documentation with the appropriate
governmental authorities (i) during the Permit period and with respect to the period prior to
completion of Seller’s Work to evidence compliance with the Permit and (ii) when all the work for
which the Permit is required has been completed (including a Notice of Termination or the
equivalent as may be required by the applicable governmental authorities), to evidence the
termination of the Permit (assuming Purchaser does not request a transfer of the Permit into
Purchaser’s name).

     Seller shall indemnify, defend and save Purchaser harmless against all losses, costs,
(including reasonable attorney’s fees) claims (including mechanics and materialmen liens), demands
and causes of actions arising out of or related to claims, demands, orders, or judgments by third
parties or governmental entities with respect to the Seller’s Work (including, for personal injury,
including death, and/or property damage attributable directly or indirectly to any act or omission
of Seller, its contractors or agents or for failure to comply with the governmentally approved
SWPPP) and not resulting solely from the negligence or misconduct of Purchaser, its employees and
agents. Seller shall promptly repair any damage to the Property caused in connection with the
performance of Seller’s Work.

     Seller’s existing grading plan is attached hereto as Exhibit C-2B (the “Existing
Grading Plan”). The parties acknowledge that the approved Preliminary Plans will include a new
grading plan for grading the Property in conformance with the Site Plan. To the extent the Seller’s
Work required to complete the grading in accordance with the approved Preliminary Plans requires
Seller, as part of performance of Seller’s Work under (A) and (B) on Exhibit C-2, to: (i)
blast rock from the Property in excess of that required to grade the Property in conformance with
the Existing Grading Plan; (ii) construct substantially more retaining walls than Seller otherwise
would have been required to construct under the Existing Grading Plan, (iii) haul off in excess of
20,000 cubic yards of soil material from the site in excess of that which otherwise would be
required based on the Existing Grading Plan, or (iv) haul into the Property structural fill
materials in excess of 70,000 cubic yards in excess of what would be required to grade the Property
based on the Existing Grading Plan, then Purchaser and Seller shall agree to additional
compensation to Seller for performing such excess work as follows (except as provided in (i)
through (iv) above, Seller shall be

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responsible for all costs of grading the Property in accordance with the approved Prelimiary
Plans without additional cost to Purchaser): Seller will bid such work to at least four (4)
reputable contractors pursuant to a bid package reasonably approved by Purchaser, and Seller will
accept the lowest conforming qualified bidder for such work as reasonably approved by Purchaser.
Purchaser will reimburse Seller the incremental increase as determined by such accepted bid in the
cost resulting from such excess work (without overhead or project management fees to Seller) on a
percentage completion basis. Purchaser shall have the right to designate bidders for any such
excess work. Seller shall be responsible for project management of the contractor awarded the bid
for any such excess work.

     In the event the parties disagree over whether or not any such excess work is involved, then
the parties agree to submit the issue to the Project Engineer to determine what portion of such
work, if any, constitutes excess work. In the event that either or both parties disagree with the
Project Engineer’s determination, then each party shall have a right to designate a separate,
reputable and independent national or regional engineering firm to review the issue together with
the Project Engineer as a group with instructions to determine the portion of such work, if any,
that constitutes excess work under this provision. The parties shall split the cost of the Project
Engineer and each party shall pay the fees of the engineering firm appointed by such party in
resolving any issue over what constitutes excess work. Neither party shall have ex parte contacts
with the Project Engineer or the independent engineering firms engaged to help resolve the issue
with respect to the disputed issue and the parties shall jointly notify the selected engineering
firms of engagement to resolve the issue (upon issuing their final opinion regarding the matter,
the engineering firms shall certify that such engineers have not had any ex parte contact with
either party with regard to the matter under dispute).

     Within fifteen (15) days after the Date of this Agreement, Seller shall cause the applicable
geotechnical engineer of record to provide Purchaser the following qualification and certification
with respect to the engineering characteristics of existing structural fill placement, subgrade
preparation and utility placements at the Property (the “Existing Soils Information”): (i) fill for
slabs, paved areas and utility line backfill (as depicted on the Site Plan) was placed and
compacted in accordance with the recommendations provided by the geotechnical engineer and sound
engineering practice. A certification shall be provided specifying that structural fill and natural
subgrade soils and exposed rock are capable of supporting the design loads of the proposed
commercial/retail structures based on the Site Plan; (ii) any available data concerning settlement
monitoring in areas of deep fill shall be provided with an assessment of the anticipated future
settlement predictions for the proposed buildings shown on the Site Plan; (iii) all topsoil
stripping, vegetative grubbing and subgrade preparation was performed in accordance with the
engineer’s recommendations prior to placement of fill; (iv) all structural fill placed is free of
swell prone soil, construction debris/rubble and other unsuitable or deleterious materials; (v) a
copy of the structural fill certification along with all supporting documentation including field
compaction tests, laboratory moisture/density (i.e., “proctor”) tests, moisture content, Atterberg
limits and sieve analysis shall be provided; (vi) a certified copy of the geotechnical
investigation performed prior to earthwork should also be obtained for the record.

     In the absence of the foregoing information in a form and content reasonably acceptable to
Purchaser to evaluate the suitability of the existing soil characteristics of the Property and to
determine that same is acceptable for development in accordance with the Proposed Project, the
Seller shall cause a geotechnical engineer approved by Purchaser to perform additional geotechnical

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investigations to include test borings and test pits throughout the Property and appropriate
laboratory tests to evaluate pertinent engineering properties of natural earthen subgrades in cut
areas, fill areas, and the depth and condition of rock and ground water and Seller’s Work shall
include correction of any unacceptable conditions as reasonably determined based on the
recommendations of such geotechnical engineer in order to develop the Project for the Proposed
Project and the completion of any such work shall not be “excess work” under the second to the next
preceding paragraph.

     4.2 Condemnation. By notice to Seller given within 10 days after Purchaser receives
notice of proceedings in eminent domain that are contemplated, threatened or instituted by any body
having the power of eminent domain, and if necessary the Closing Date shall be extended to give
Purchaser the full 10-day period to make such election, Purchaser may: (i) terminate this
Agreement and the Earnest Money shall be immediately returned to Purchaser; or (ii) proceed under
this Agreement, in which event Seller shall, at the Closing, assign to Purchaser its entire right,
title and interest in and to any condemnation award, and Purchaser shall have the sole right during
the pendency of this Agreement to negotiate and otherwise deal with the condemning authority in
respect of such matter.

ARTICLE 5: CLOSING

     5.1 Closing. The consummation of the transaction contemplated herein
(“Closing”) shall occur on the Closing Date at the offices of the Escrow Agent. Closing
shall occur through an escrow with the Escrow Agent. Funds shall be deposited into and held by
Escrow Agent in a closing escrow account with a bank satisfactory to Purchaser and Seller. Upon
satisfaction or completion of all closing conditions and deliveries, the parties shall direct the
Escrow Agent to immediately record and deliver the closing documents to the appropriate parties and
make disbursements according to the closing statements executed by Seller and Purchaser. The
Escrow Agent shall agree in writing with Purchaser that (1) recordation of the Deed constitutes its
representation that it is holding the closing documents, closing funds and closing statements and
is prepared and irrevocably committed to disburse the closing funds in accordance with the closing
statements and (2) release of funds to the Seller shall irrevocably commit it to issue the Title
Policy in accordance with this Agreement.

     5.2 Conditions to the Parties’ Obligations to Close. In addition to all other
conditions set forth herein, the obligation of Seller, on the one hand, and Purchaser, on the other
hand, to consummate the transactions contemplated hereunder shall be contingent upon the following:

     (a) The other party’s representations and warranties contained herein shall be true and
correct as of the date of this Agreement and the Closing Date. For purposes of this clause (a), if
a representation is made to knowledge, but the factual matter that is the subject of the
representation is false notwithstanding any lack of knowledge or notice to the party making the
representation, such event shall constitute a failure of this condition only, and not a default by
Seller; and

     (b) Seller, as a condition to Purchaser’s obligation to consummate Closing (but not Seller’s
obligation to consummate Closing) shall have obtained Development Approval, as contemplated by
Paragraph 2.4.

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     (c) Seller as a condition to Purchaser’s obligation to consummate Closing (but not Seller’s
obligation to consummate Closing) shall have substantially completed Seller’s Work or an escrow
shall be established, as contemplated by Paragraph 4.1; provided, Seller shall be required to
actually have completed the removal and remediation of the underground storage tank and any
associated remediation to the site as required by applicable governmental authorities to close out
such removal prior to Closing and as a condition to Purchaser’s obligation to Close.

     (d) As of the Closing Date, the other party shall have performed its obligations hereunder in
all material respects and all deliveries to be made at Closing have been tendered.

     Each party agrees to promptly notify the other in writing as to the satisfaction of any or all
of the conditions described in this Paragraph 5.2. So long as a party is not in default
hereunder, if any condition to such party’s obligation to proceed with the Closing hereunder has
not been satisfied as of the Closing Date, such party may, in its sole discretion, (i) terminate
this Agreement by delivering written notice to the other party on or before the Closing Date, in
which event, unless otherwise expressly provided herein, the Earnest Money shall be disbursed to
Purchaser (unless the failure of the condition was due to Purchaser’s default or misrepresentation
and Purchaser thereby is unwilling or unable to Close and to tender the Purchase Price, in which
event the Earnest Money shall be disbursed to Seller), and neither party shall incur any further
liability or obligations under this Agreement, or (ii) elect to consummate this transaction
notwithstanding the non-satisfaction of such condition, in which event such party shall be deemed
to have waived any such condition. In the event such party elects to close, notwithstanding the
nonsatisfaction of such condition, there shall be no liability on the part of any other party
hereto for breaches of representations and warranties of which the party electing to close had
actual knowledge at the Closing. Notwithstanding the foregoing, the failure of a condition due to
the breach of a party shall not relieve such breaching party from any liability it would otherwise
have hereunder, and in the event of such default resulting in a termination of this Agreement,
disbursement of the Earnest Money shall be made in accordance with the provisions of Paragraph
8.

     5.3 Seller’s Deliveries in Escrow. On or prior to the Closing Date, Seller shall
deliver in escrow to the Escrow Agent the following:

     (a) Deed. A special warranty deed in form provided for under the law of the state
where the Property is located or otherwise in conformity with the custom in such jurisdiction and
mutually satisfactory to the parties, executed and acknowledged by Seller, conveying to Purchaser
good, indefeasible and marketable fee simple title to the Property, subject only to the Permitted
Exceptions (the “Deed”). The Deed shall contain a deed covenant and restriction running to
the benefit of the Property and burdening Seller’s Retained Property (i.e. Land Blocks B1, B2, C1,
C2, C3, D1 and D2) such that with respect to any limitation on the total developable gross floor
area for the entire development in which the Property is a part that not less than 320,000 square
feet of gross floor area developable for retail, restaurant, cinema and other commercial uses (the
“Reserved GFA Allocation”) is allocated and reserved exclusively to the Property and no action or
development activity shall be taken on Seller’s Retained Property which would limit development of
the Property with up to the Reserved GFA Allocation.

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     (b) Assignment of Intangible Property. Such assignments and other documents and
certificates as Purchaser may reasonably require in order to fully and completely transfer and
assign to Purchaser all of Seller’s right, title, and interest, in and to the Development Approval,
all documents and contracts related thereto, and any other permits, rights under utility agreements
and similar rights applicable to the Property (the “Assignment of Rights”). Such
assignment shall include a provision assigning rights of Seller with regard to the completion of
portions of Seller’s Work by Seller’s predecessor-in-interest and its affiliated entity or
entities.

     (c) Development Approval. If any plats or approvals required in connection with the
Development Approval are to be recorded at or immediately after the Closing, the final executed
site plan, plat or approval in form for recording according to applicable law.

     (d) Deleted.

     (e) State Law Disclosures. Such disclosures and reports, required by applicable state
and local law in connection with the conveyance of real property.

     (f) FIRPTA. A Foreign Investment in Real Property Tax Act affidavit executed by
Seller. If Seller fails to provide the necessary affidavit and/or documentation of exemption on
the Closing Date, Purchaser may proceed with withholding provisions as provided by law.

     (g) Authority. Evidence of existence, organization, and authority of Seller and the
authority of the person executing documents on behalf of Seller reasonably satisfactory to
Purchaser, the Escrow Agent, and the Title Company.

     (h) Escrow Agreement. An escrow agreement (the “Closing Escrow Agreement”) , if
applicable, in a form reasonably acceptable to Seller and Purchaser, wherein Seller shall deposit
with Escrow Agent at Closing out of the Purchase Price a sum equal to (a) 125% of the amount
reasonably estimated as the cost of Seller completing Seller’s Work (as determined in Section 4.1),
if any, which has not been completed or bonded to the County or VDOT prior to the Closing plus (b)
the amount reasonably estimated by Purchaser as the total costs of performing or paying all
financial obligations not otherwise included in the Seller’s Work under all proffers applicable to
the Property to the extent such financial obligations are to be performed, bonded to the County or
VDOT or paid by Seller under the terms of this Agreement and have not been fully performed, bonded
or paid prior to the Closing. Such escrow agreement shall provide, as to Seller’s Work that should
Seller fail to substantially complete any of Seller’s Work in accordance with the provisions of
this Agreement, and should such failure continue for a period in excess of 30 days following
written notice from Purchaser then Purchaser may draw against such escrowed sums to pay the costs
of completing any of Seller’s Work, plus an administrative fee payable to Purchaser in the amount
of ten (10%) percent of all such costs of completion, as a result of Seller’s failure or
unwillingness in completing such work in accordance with the terms of this Agreement. Such escrow
agreement shall provide that Purchaser may draw against such escrowed sums to pay all financial
proffer obligations that are not paid by Seller when due provided that Seller shall fail to make
such past due payments, together with interest and penalties, if any, within 5 business days
following written notice from Purchaser. Seller shall be permitted to draw against the escrowed
funds to pay the actual costs to third parties for completing Seller’s Work (supported by invoices
and payment applications reasonably

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acceptable to Purchaser and lien waivers reasonably acceptable to Purchaser) and to pay
financial proffer obligations attributable to the Property to the extent included within the escrow
under (b) above. Upon completion of Seller’s Work and upon Seller providing final invoices, payment
applications and lien waivers in a form reasonably acceptable to Purchaser and Seller, the parties
shall instruct the Escrow Agent to disburse any remaining balance of funds deposited to Seller
under (a) above. Upon payment of all outstanding financial proffer obligations, the parties shall
instruct the Escrow Agent to disburse any remaining balance of funds deposited under (b) above.

     (i) Storm Water Agreement. With respect to that certain Storm Water Management
Drainage and Construction Agreement Easement, dated January 23, 2004 (“Storm Water Agreement”) and
that certain Cross Access Easement and Construction Use and Maintenance Agreement, dated January
23, 2004 (“Cross Access Easement”), at Closing, Seller and Purchaser will duly execute, acknowledge
and record (or cause the applicable owner to do same) an instrument in a form reasonably approved
by Purchaser and Seller equitably allocating between Seller and Purchaser based on land area
(excluding any land area within the Stream Easement Area or Easement Area under the forgoing
instrument) toward the thirty (30%) percent of the costs of maintaining and operating the “Pond”,
“Easement Area” and “Stream Mitigation Area” under the Storm Water Agreement. The contribution
obligation shall constitute a covenant and lien against each applicable land block to secure
payment of such contribution obligation which may be foreclosed in the same manner that a deed of
trust or mortgage instrument may be foreclosed but the lien of which shall be subordinate to lien
of any first mortgage/deed of trust or similar security instrument held by a bank, credit union,
insurance company, financing company, or other institutional lending entity and/or loan
securitization pool; provided, however, that such covenant to pay assessment contributions
(including assessment contributions arising prior to any such foreclosure) shall run with the land
and after foreclosure the owner of the applicable land shall remain obligated to pay such
contribution obligations.

     (j) Cross Access Easement. With respect to that certain Cross Access Easement and
Construction Use and Maintenance Agreement, dated January 23, 2004 (“Cross Access Easement”), at
Closing, Seller will duly execute, acknowledge and record (or cause the applicable owner to do
same) an instrument in a form reasonably approved by Purchaser obligating (i) the Property and
Seller’s Retained Property to contribute prorata, based on land area (excluding any land area
within the Stream Easement Area or Easement Area under the Storm Water Agreement) toward the costs
of performing the maintenance obligations (but not the obligation to initially construct) of “Wood”
under such Cross Access Agreement or with respect to payment of any contribution obligations of
“Wood” under such Cross Access Agreement with respect to Town Center Drive or the portion of
Meeting Street abutting the Property; and (ii) obligating Seller’s Retained Property (but not the
Property) to contribute the costs of performing the maintenance obligations of “Wood” under such
Cross Access Agreement or with respect to payment of any contribution obligations of “Wood” under
such Cross Access Agreement with respect to the “Service Road” and other reimbursements under such
instrument. The contribution obligation of the Property and Seller’s Retained Property shall
constitute a covenant and lien against each applicable land block to secure payment of such
contribution obligation which may be foreclosed in the same manner that a deed of trust or mortgage
instrument may be foreclosed.

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     (k) Certificate. A certificate, executed by Seller as of the Closing Date,
certifying, to the extent true, that all representations and warranties of Seller in this
Agreement are true and correct in all material respects as if such statements were made as of the
Closing Date, or identifying any material changes. In the event such certificate excepts to any
material changes, then Purchaser shall have the right to terminate this Agreement and obtain a
refund of the Earnest Money.

     (l) Additional Documents. Any additional documents that Purchaser, the Escrow Agent
or the Title Company may reasonably require for the proper consummation of the transaction
contemplated by this Agreement.

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

     (a) Purchase Price. The Purchase Price, less the Earnest Money, plus or minus
applicable prorations, deposited by Purchaser with the Escrow Agent in immediate, same-day federal
funds wired for credit into the Escrow Agent’s escrow account.

     (b) Assignment Documents. Counterparts of the Assignment of Rights, duly executed by
Purchaser.

     (c) State Law Disclosures. Such disclosures and reports required by applicable state
and local law in connection with the conveyance of real property.

     (d) Additional Documents. Any additional documents that Seller, the Escrow Agent or
the Title Company may reasonably require for the proper consummation of the transaction
contemplated by this Agreement.

     5.5 Closing Statements. At Closing, Seller and Purchaser shall deposit with the
Escrow Agent executed closing statements consistent with this Agreement in form required by the
Escrow Agent. If Seller and Purchaser cannot agree on the closing statement to be deposited as
aforesaid because of a dispute over the prorations and adjustments set forth therein, the Closing
nevertheless shall occur, and the amount in dispute shall be withheld from the Purchase Price and
placed in an escrow with the Title Company, to be paid out upon the joint direction of the parties
or pursuant to court order upon resolution or other final determination of the dispute.

     5.6 Delivery of Title Policy at Closing. At the Closing, the Title Company shall
deliver to Purchaser an ALTA (or other form required by state law) Owner’s Policy of Title
Insurance (“Title Policy”) issued by the Title Company, dated the date and time of the
recording of the Deed in the amount of the Purchase Price, insuring Purchaser as owner of good,
marketable and indefeasible fee simple title to the Property, subject only to the Permitted
Exceptions. Seller shall execute at Closing an affidavit in the form of Exhibit E so that
the Title Company can delete or modify the standard printed exceptions as to parties in possession,
unrecorded liens and encumbrances, and similar matters and, if required to issue the Title Policy
at Closing, the customary gap indemnity. The Title Policy may be delivered after the Closing if at
the Closing the Title Company issues a currently effective, duly-executed “marked-up” Title
Commitment and irrevocably commits in writing to issue the Title Policy in the form of the
“marked-up” Title Commitment promptly after the Closing Date.

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     5.7 Possession. Seller shall deliver possession of the Property to Purchaser at the
Closing subject only to the Permitted Exceptions.

ARTICLE 6: PRORATIONS

     6.1 Proration of Taxes and Assessments. Purchaser shall receive a credit for any
accrued but unpaid general real estate taxes and assessments (including without limitation any
assessments imposed by private covenant, “Taxes”) applicable to any period before the
Closing Date, even if such Taxes are not yet due and payable. If the amount of any Taxes has not
been determined as of Closing, such credit shall be based on the most recent ascertainable Taxes
and shall be reprorated upon issuance of the final tax bill. Purchaser shall receive a credit for
any special assessments which are levied or charged against the Property, whether or not then due
and payable. Notwithstanding any provision herein to the contrary, Seller shall be solely
responsible for payment of any rollback taxes and any special assessments for improvements to
off-site roads and facilities (e.g. Route 29) that may be required in connection with the initial
development of the Property for the Proposed Project.

     If the Property is taxed as portion of a larger parcel, the parties agree to pay the Taxes
covering the year of Closing (and any previous years) for the entire parcel to taxing authorities
at the Closing, or, if the tax bill is not available, pay into escrow the estimated amount of such
Taxes (and any future Taxes for such larger parcel anticipated to become due prior to the creation
of separate tax lots) for payment by the Escrow Agent directly to the taxing authorities when the
tax bill becomes available. The parties shall execute and deliver such documentation before and
after Closing as may be necessary to cause the Property to be assessed as a separate parcel, which
obligation shall survive the Closing.

     6.2 Sales, Transfer, and Documentary Taxes. Seller shall pay the “grantor’s tax”
applicable to the transfer of the Property to Purchaser. All other transfer taxes, recordation
fees, and the like associated with or due upon recordation of the Deed shall be the responsibility
of Purchaser.

     6.3 Commissions. Seller and Purchaser represent and warrant each to the other that
they have not dealt with any real estate broker, sales person or finder in connection with this
transaction other than Broker. If this transaction is closed, Seller shall pay Broker in
accordance with their separate agreement. Broker is an independent contractor and is not
authorized to make any agreement or representation on behalf of either party. Except as expressly
set forth above, in the event of any claim for broker’s commissions, finder’s fees or similar
compensation in connection with the negotiation, execution or consummation of this Agreement or the
transactions contemplated hereby, each party shall indemnify and hold harmless the other party from
and against any such claim based upon any statement, representation or agreement of such party.

     6.4 Title and Survey Costs. The cost of the Survey and the premium for the Title
Policy, including any search and exam fees and the premium for the Purchaser’s Endorsements, shall
be paid by Purchaser.

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     6.5 Other Expenses. Unless otherwise expressly agreed in writing between Seller and
Purchaser, no other expense related to the ownership or operation of the Property shall be charged
to or paid or assumed by Purchaser, whether allocable to any period before or after the Closing.

ARTICLE 7: REPRESENTATIONS AND WARRANTIES

     7.1 Seller’s Representations and Warranties. As a material inducement to Purchaser to
execute this Agreement and consummate this transaction, Seller represents and warrants to Purchaser
that:

     (a) Authority. Seller has been duly organized and is validly existing as a limited
liability company, is in good standing in the state of its organization and is qualified to do
business, and is in good standing, in the state in which the Property is located. Seller has the
full right and authority and has obtained any and all consents required therefor to enter into this
Agreement, consummate or cause to be consummated the sale and make or cause to be made transfers
and assignments contemplated herein. The persons signing this Agreement on behalf of Seller are
authorized to do so. This Agreement has been, and the documents to be executed by Seller pursuant
to this Agreement will be, authorized and properly executed and does and will constitute the valid
and binding obligations of Seller, enforceable against Seller in accordance with their terms.

     (b) Sale Agreements; Leases; Contracts; Owner Documents. Seller has not entered into
any outstanding agreement(s) of sale, option(s), or other right(s) of third parties to acquire any
interest in the Property and, to Seller’s knowledge, the Property is not subject to any outstanding
agreement(s) of sale, option(s), or other right(s) of third parties to acquire any interest
therein, except for this Agreement. There are no leases, other occupancy agreements or licenses
permitting persons to occupy or use any portion of the Property, either oral or written, which
would bind Purchaser or encumber the Property after the Closing. There are no management, service,
maintenance, utility or other contracts or agreements affecting the Property, oral or written,
which would bind the Company or encumber the Property after the Closing. Seller has not granted
any declarations, easements, rights of way, covenants, conditions, restrictions, agreements or
encumbrances that would bind the Property or Purchaser upon Closing except as set forth in the
applicable public records for the Property on the date of the Title Commitment. Seller
has not entered into any agreements with any governmental authorities or VDOT to pay any special
assessments, perform any proffer obligations, or perform any off-site improvements that would be
binding upon Purchaser or the Property upon Closing except as included in the Zoning Application or
disclosed in the Property Information.

     (c) Litigation; Condemnation. There is no litigation or proceeding pending, or to
Seller’s knowledge, threatened against Seller relating to the Property. Neither the whole nor any
portion of the Property, including access thereto or any easement benefiting the Property, is
subject to temporary requisition of use by any governmental authority or has been condemned, nor is
there now any pending or planned condemnation, requisition or similar proceeding against the whole
or any portion of the Property, including access thereto or any easement benefiting the Property,
excluding an action with regard to road improvements to be performed as part of Seller’s Work which
will be dedicated to public use, as more particularly described in the

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Property Information. Seller has received no notice and is not aware of any default or breach
or liability for indemnity under any of declarations, easements, rights of way, covenants,
conditions, restrictions, or encumbrances affecting the Property or any portion thereof, including,
specifically, without limitation, any storm water detention or management agreement or obligations
with Albemarle County. All obligations to pay assessment and all obligations of Seller to perform
any maintenance under any declarations, easements, rights of way, covenants, conditions,
restrictions, or encumbrances affecting the Property are current and have been fully performed.

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

     (e) Environmental Matters. To Seller’s knowledge, the environmental condition of the
Property is as documented in the Phase I Environmental Assessment dated April 5, 2005, prepared by
Jeffery Sitler, PE.

     (f) Withholding Obligation. Seller’s sale of the Property is not subject to any
federal, state or local withholding obligation of Purchaser under the tax laws applicable to Seller
or the Property.

     7.2 Purchaser’s Representations and Warranties. As a material inducement to Seller to
execute this Agreement and consummate this transaction, Purchaser represents and warrants to Seller
that:

     (a) Organization and Authority. Purchaser has been duly organized and is validly
existing as a Maryland [real estate investment trust/corporation], in good standing in the State of
Maryland, and qualified to do business in state in which the Property is located. Purchaser has
the full right and authority and has obtained any and all consents required therefor to enter into
this Agreement, consummate or cause to be consummated the sale. This Agreement and all of the
documents to be delivered by Purchaser at the Closing have been and will be authorized and properly
executed and will constitute the valid and binding obligations of Purchaser, enforceable in
accordance with their terms.

     (b) Conflicts and Pending Action. There is no agreement to which Purchaser is a party
or to Purchaser’s knowledge binding on Purchaser which is in conflict with this Agreement. There
is no action or proceeding pending or to Purchaser’s knowledge, threatened, against Purchaser which
challenges or impairs Purchaser’s ability to execute or perform its obligations under this
Agreement.

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     7.3 Survival of Representations and Warranties. The representations and warranties
set forth in this Article 7 are made as of the date of this Agreement and are remade as of the
Closing Date and shall not be deemed to be merged into or waived by the instruments of Closing, but
shall survive the Closing for a period of 1 year. Seller and Purchaser shall have the right to
bring an action thereon only if Seller or Purchaser, as the case may be, has given the other party
written notice of the circumstances giving rise to the alleged breach within such 1 year period.
Each party agrees to defend and indemnify the other against any claim, liability, damage or expense
asserted against or suffered by such other party arising out of the breach or inaccuracy of any
such representation or warranty.

ARTICLE 8: DEFAULT AND REMEDIES

     8.1 Default by Purchaser. If Purchaser shall default in its obligation to close
hereunder, or Purchaser otherwise defaults in the performance of any other material obligation of
Purchaser under this Agreement and fails to cure such other default within 5 business days
following written notice thereof (provided, if such default cannot be reasonably cured within such
5 business day period but Purchaser commences to cure same and diligently pursues cure to
completion, then such period shall be extended a reasonable period of time but in no event later
than the Closing Date) or to Close and tender the full Purchase Price to Seller (plus and minus the
adjustments provided for under this Agreement), Purchaser agrees that Seller, as its sole and
exclusive right and remedy for Purchaser’s default, shall have the right to terminate this
Agreement and to have the Escrow Agent deliver the Earnest Money to Seller as liquidated damages to
recompense Seller for time spent, labor and services performed, and the loss of its bargain.
Purchaser and Seller agree that it would be impracticable or extremely difficult to affix damages
if Purchaser so defaults and that the Earnest Money, together with the interest thereon, represents
a reasonable estimate of Seller’s damages. Seller agrees to accept the Earnest Money as Seller’s
total damages and relief hereunder if Purchaser defaults in its obligation to close hereunder,
Seller waiving all other rights and remedies.

     8.2 Default by Seller. If Seller defaults in its obligation to sell and convey the
Property to Purchaser pursuant to this Agreement, or Seller otherwise defaults in the performance
of any other material obligation of Seller under this Agreement and fails to cure such other
default within 5 business days following written notice thereof, Purchaser’s sole remedy shall be
to elect one of the following: (a) to terminate this Agreement, in which event Purchaser shall be
entitled to the return by the Escrow Agent to Purchaser of the Earnest Money, or (b) to bring a
suit for specific performance provided that any suit for specific performance must be brought
within 60 days of Seller’s default, to the extent permitted by law, Purchaser waiving the right to
bring suit at any later date. Purchaser agrees not to file a lis pendens or other similar notice
against the Property except in connection with, and after, the proper filing of a suit for specific
performance. Notwithstanding the foregoing to the contrary, in the case of a willful and
intentional default by Seller, (i) if Purchaser elects to terminate this Agreement, Purchaser also
shall be entitled to recover its out-of-pocket expenses and costs in connection with this
Agreement, including, but not limited to, the costs of conducting its due diligence investigation
of the Property, together with costs and attorney’s fees in any action for which Purchaser is the
prevailing party for recovery of such costs and expenses; and (ii) if the nature of Seller’s
default results in the remedy of specific performance being unavailable or inadequate to place
Purchaser in substantially the same position it would have been had there been no default and
resulted from

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Seller voluntarily conveying the Property or interest therein to another person, then
Purchaser may recover any other remedy available at law or in equity; provided, in no event shall
Purchaser be entitled to consequential or punitive or speculative damages.

     8.3 Other Expenses. If this Agreement is terminated due to the default of a party,
then the defaulting party shall pay any fees due to the Escrow Agent for holding the Earnest Money
and any fees due to the Title Company for cancellation of the Title Commitment.

ARTICLE 9: EARNEST MONEY PROVISIONS

     9.1 Investment and Use of Funds. The Escrow Agent shall invest the Earnest Money in a
government insured interest-bearing account satisfactory to Purchaser at an institution having
assets of not less than $125,000,000, shall not commingle the Earnest Money with any funds of the
Escrow Agent or others, and shall promptly provide Purchaser and Seller with confirmation of the
investments made. If the Closing under this Agreement occurs, the Escrow Agent shall deliver the
Earnest Money to, or upon the instructions of, Purchaser on the Closing Date. Provided such
supplemental escrow instructions are not in conflict with this Agreement as it may be amended in
writing from time to time, Seller and Purchaser agree to execute such supplemental escrow
instructions as may be appropriate to enable Escrow Agent to comply with the terms of this
Agreement.

     9.2 INTENTIONALLY DELETED.

     9.3 Other Terminations. Upon a termination of this Agreement, either party to this
Agreement (the “Terminating Party”) may give written notice to the Escrow Agent and the
other party (the “Non-Terminating Party”) of such termination and the reason for such
termination and a statement, if in accordance with this Agreement, that such Terminating Party is
entitled to have release of the Earnest Money to the Terminating Party. The Non-Terminating Party
shall then have five business days in which to object in writing to the release of the Earnest
Money to the Terminating Party. If the Non-Terminating Party provides such an objection, then the
Escrow Agent shall retain the Earnest Money until it receives written instructions executed by both
Seller and Purchaser as to the disposition and disbursement of the Earnest Money, or until ordered
by final court order, decree or judgment, which is not subject to appeal, to deliver the Earnest
Money to a particular party, in which event the Earnest Money shall be delivered in accordance with
such notice, instruction, order, decree or judgment.

     9.4 Interpleader. Except as provided in Paragraph 9.2 above, Seller and
Purchaser mutually agree that in the event of any controversy regarding the Earnest Money, unless
mutual written instructions are received by the Escrow Agent directing the Earnest Money’s
disposition, the Escrow Agent shall not take any action, but instead shall await the disposition of
any proceeding relating to the Earnest Money or, at the Escrow Agent’s option, the Escrow Agent may
interplead all parties and deposit the Earnest Money with a court of competent jurisdiction in
which event the Escrow Agent may recover all of its court costs and reasonable attorneys’ fees.
Seller or Purchaser, whichever loses in any such interpleader action, shall be solely obligated to
pay such costs and fees of the Escrow Agent, as well as the reasonable attorneys’ fees of the
prevailing party in accordance with the other provisions of this Agreement.

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     9.5 Liability of Escrow Agent. The parties acknowledge that the Escrow Agent is
acting solely as a stakeholder at their request and for their convenience, that the Escrow Agent
shall not be deemed to be the agent of either of the parties, and that the Escrow Agent shall not
be liable to either of the parties for any action or omission on its part taken or made in good
faith, and not in disregard of this Agreement, but shall be liable for its negligent acts and for
any loss, cost or expense incurred by Seller or Purchaser resulting from the Escrow Agent’s mistake
of law respecting the Escrow Agent’s scope or nature of its duties. Seller and Purchaser shall
jointly and severally indemnify and hold the Escrow Agent harmless from and against all costs,
claims and expenses, including reasonable attorneys’ fees, incurred in connection with the
performance of the Escrow Agent’s duties hereunder, except with respect to actions or omissions
taken or made by the Escrow Agent in bad faith, in disregard of this Agreement or involving
negligence on the part of the Escrow Agent.

     9.6 Escrow Fee. Except as expressly provided herein to the contrary, the escrow fee,
if any, charged by the Escrow Agent for holding the Earnest Money or conducting the Closing shall
be shared equally by Seller and Purchaser.

ARTICLE 10: MISCELLANEOUS

     10.1 Parties Bound. Neither party may assign this Agreement without the prior written
consent of the other, and any such prohibited assignment shall be void; provided that Purchaser may
assign this Agreement without Seller’s consent to an Affiliate or to effect an Exchange pursuant to
Paragraph 10.17 hereof. Subject to the foregoing, this Agreement shall be binding upon and
inure to the benefit of the respective legal representatives, successors, assigns, heirs, and
devisees of the parties. For the purposes of this paragraph, the term “Affiliate” means
(a) an entity that directly or indirectly controls, is controlled by or is under common control
with the Purchaser or (b) an entity at least a majority of whose economic interest is owned by
Purchaser; and the term “control” means the power to direct the management of such entity through
voting rights, ownership or contractual obligations.

     10.2 Headings. The article and paragraph headings of this Agreement are for
convenience only and in no way limit or enlarge the scope or meaning of the language hereof.

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

     10.4 Governing Law. This Agreement and said other instruments shall, in all respects,
be governed, construed, applied, and enforced in accordance with the law of the state in which the
Property is located.

     10.5 Intentionally Deleted.

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     10.6 No Third Party Beneficiary. This Agreement is not intended to give or confer any
benefits, rights, privileges, claims, actions or remedies to any person or entity as a third party
beneficiary, decree, or otherwise.

     10.7 Entirety and Amendments. This Agreement embodies the entire agreement between
the parties and supersedes all prior agreements and understandings relating to the Property. This
Agreement may be amended or supplemented only by an instrument in writing executed by the party
against whom enforcement is sought.

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

     10.9 Confidentiality. Between the date hereof and for a period ending 1 year after
the Closing Date, Seller will not release or cause or permit to be released any press notices, or
publicity (oral or written) or advertising promotion relating to, or otherwise announce or disclose
or cause or permit to be announced or disclosed, the terms, conditions or substance of this
Agreement without first obtaining the written consent of Purchaser. The foregoing shall not
preclude Seller from discussing the substance or any relevant details of such transactions with any
of its attorneys, accountants, consultants, partners, or investors, or prevent Seller from
complying with applicable laws, rules, regulations and court orders, including without limitation,
governmental regulatory, disclosure, tax and reporting requirements.

     10.10 Attorneys’ Fees. Should either party employ attorneys to enforce any of the
provisions hereof, the party losing in any final judgment agrees to pay the prevailing party all
reasonable costs, charges and expenses, including attorneys’ fees, expended or incurred in
connection therewith.

     10.11 Notices and Deliveries. All notices required or permitted hereunder shall be in
writing and shall be served on the parties at the addresses set forth in Paragraph 1.1.
Any such notices shall be either (a) sent by overnight delivery using a nationally recognized
overnight courier, in which case notice shall be deemed delivered one business day after deposit
with such courier, (b) sent by facsimile, with written confirmation by overnight or first class
mail, in which case notice shall be deemed delivered upon receipt of confirmation transmission of
such facsimile notice; provided, if the receiving machine fails to receive on three successive
attempts as evidenced by a error transmission report, such notice shall still be deemed delivery
upon such attempt to send provided confirmation is sent by overnight delivery using a nationally
recognized overnight courier,, or (c) sent by personal delivery, in which case notice shall be
deemed delivered upon receipt. Any notice sent by facsimile or personal delivery and delivered
after 5:00 p.m. local time where the Property is located shall be deemed received on the next
business day. A party’s address may be changed by written notice to the other party; provided,
however, that no notice of a change of address shall be effective until actual receipt of such
notice. Copies of notices are for informational purposes only, and a failure to give or receive
copies of any notice shall not be deemed a failure to give notice. Notices given by counsel to the
Purchaser shall be deemed given by Purchaser, notices given by counsel to the Seller shall be
deemed given by Seller, and notices given to a party’s counsel shall be deemed given to the party.
Notwithstanding the inclusion of a party’s e-mail address in Paragraph 1.1, notices sent by
e-mail shall not be effective notice. Any funds or documents delivered to Title Company or Escrow
Holder shall only be delivered on a business day, and any funds or documents delivered after

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2:00 p.m. local time where the Property is located shall be deemed delivered on the next
business day.

     10.12 Construction. The parties acknowledge that the parties and their counsel have
reviewed and revised this Agreement and agree that the normal rule of construction to the effect
that any ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement or any exhibits or amendments hereto.

     10.13 Calculation of Time Periods. Unless otherwise specified, in computing any
period of time described herein, the day of the act or event after which the designated period of
time begins to run is not to be included and the last day of the period so computed is to be
included, unless such last day is a Saturday, Sunday or legal holiday, in which event the period
shall run until the end of the next day which is neither a Saturday, Sunday, or legal holiday. The
last day of any period of time described herein shall be deemed to end at 5:00 p.m. local time
where the Property is located.

     10.14 Procedure for Indemnity. The following provisions govern actions for indemnity
under this Agreement. Promptly after receipt by an indemnitee of notice of any claim, such
indemnitee will, if a claim in respect thereof is to be made against the indemnitor, deliver to the
indemnitor written notice thereof and the indemnitor shall have the right to participate in, and,
if the indemnitor agrees in writing that it will be responsible for any costs, expenses, judgments,
damages and losses incurred by the indemnitee with respect to such claim, to assume the defense
thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnitee
shall have the right to retain its own counsel, with the fees and expenses to be paid by the
indemnitor, if the indemnitee reasonably believes that representation of such indemnitee by the
counsel retained by the indemnitor would be inappropriate due to actual or potential differing
interests between such indemnitee and any other party represented by such counsel in such
proceeding. The failure to deliver written notice to the indemnitor within a reasonable time of
notice of any such claim shall relieve such indemnitor of any liability to the indemnitee under
this indemnity only if and to the extent that such failure is prejudicial to its ability to defend
such action, and the omission so to deliver written notice to the indemnitor will not relieve it of
any liability that it may have to any indemnitee other than under this indemnity. If an indemnitee
settles a claim without the prior written consent of the indemnitor, then the indemnitor shall be
released from liability with respect to such claim unless the indemnitor has unreasonably withheld
such consent.

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

     10.16 Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, and all of such counterparts shall
constitute one Agreement. To facilitate execution of this Agreement, the parties may execute and
exchange by telephone facsimile counterparts of the signature pages.

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     10.17 Section 1031 Exchange. Either party may consummate the purchase or sale (as
applicable) of the Property as part of a so-called like kind exchange (an “Exchange”)
pursuant to §1031 of the Internal Revenue Code of 1986, as amended (the “Code”), provided
that: (a) the Closing shall not be delayed or affected by reason of the Exchange nor shall the
consummation or accomplishment of an Exchange be a condition precedent or condition subsequent to
the exchanging party’s obligations under this Agreement; (b) the exchanging party shall effect its
Exchange through an assignment of this Agreement, or its rights under this Agreement, to a
qualified intermediary (c) neither party shall be required to take an assignment of the purchase
agreement for the relinquished or replacement property or be required to acquire or hold title to
any real property for purposes of consummating an Exchange desired by the other party; and (d) the
exchanging party shall pay any additional costs that would not otherwise have been incurred by the
non-exchanging party had the exchanging party not consummated the transaction through an Exchange.
Neither party shall by this Agreement or acquiescence to an Exchange desired by the other party
have its rights under this Agreement affected or diminished in any manner or be responsible for
compliance with or be deemed to have warranted to the exchanging party that its Exchange in fact
complies with §1031 of the Code.

     10.18 WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES
HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     10.19 Limitation of Liability. Notice is hereby given that all persons dealing with
Seller and Purchaser, respectively, shall look to the assets of Seller and Purchaser, respectively,
for the enforcement of any claim against Seller and Purchaser, respectively, as none of the
trustees, officers, employees and shareholders of Seller and Purchaser, respectively, assume any
personal liability for obligations entered into by or on behalf of Seller and Purchaser,
respectively.

ARTICLE 11: POST CLOSING ARRANGEMENTS

     The parties agree that should Seller continue to own and elect to develop for retail use
adjacent property currently owned by Seller and identified as Land Blocks B1, B2, C1, C2, C3, D1
and D2 (collectively, “Seller’s Retained Property”) at any time within two years following the Date
of this Agreement, so long as Purchaser continues to own the Property, that in the event that
Seller desires to retain a third party unaffiliated with Seller or its principals, then Seller
agrees to offer to Purchaser the first opportunity to serve as the property manager and/or leasing
agent for Seller’s property, provided that (i) Purchaser is duly qualified to serve in such
capacity, (ii) Purchaser agrees to compensation commensurate with prevailing rates then being paid
to similarly qualified professional organizations in the Albemarle County area providing similar
services, and (iii) Seller and Purchaser are, within thirty (30) days following delivery of written
notice to Purchaser of such opportunity along with a copy of Seller’s proposed form of agreement,
able to reach a definitive agreement with respect to such services.

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SIGNATURE PAGE TO AGREEMENT OF

PURCHASE AND SALE

BY AND BETWEEN

EDENS & AVANT

AND

HM ACQUISITION GROUP LLC

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	EDENS & AVANT	 	 
	 	 	 	 	 	 	INVESTMENTS LIMITED	 	 
	 

	 	 	 	 	 	PARTNERSHIP
		 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By: Edens & Avant Administrative,	 	 
	 

	 	 	 	 	 	LLC	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	/s/ Jodie W. McLean	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 	Jodie W. McLean	 	 
	Date:

	 	May 4, 2006	 	 	 	 	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	                                                  “Purchaser”	 	 

	 	 	 
	 

	 	HM ACQUISITION GROUP LLC
	 

	 	  By: HM CAPITAL GROUP, L.L.C., its sole member
	 

	 	    By: Asset Capital Partners, L.P., its sole member
	 

	 	        By: ACC GP, LLC, its Managing Partner
	 

	 	          By: Asset Capital Corporation, Inc., its sole member

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Peter C. Minshall	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Peter C. Minshall	 	 
	Date:

	 	May 4, 2006
	 	 	 	Title:
	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	                                                                                “Seller”	 	 

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Escrow Agent has executed this Agreement in order to confirm that the Escrow Agent has received and
shall hold the Earnest Money and the interest earned thereon, in escrow, and shall disburse the
Earnest Money, and the interest earned thereon, pursuant to the provisions of Article 9.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	FIRST AMERICAN TITLE INSURANCE

COMPANY
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 	 	 

-33-

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