Document:

Exhibit 10.4

 

CONTRIBUTION AGREEMENT

 

by and among

 

GMH Communities, LP,

a Delaware limited partnership,

 

Gary M. Holloway, Sr.,

 

Bruce F. Robinson,

 

Joseph M. Coyle,

 

Robert DiGiuseppe,

 

and

 

Denise Hubley

 

 

Dated as of March 22, 2005

 

 

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

 

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

 

 

CONTRIBUTION AGREEMENT

 

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

 

Background

 

A.  Each Contributor is the owner of limited
partnership interests in W9/JP-M Real Estate Limited Partnership, a Delaware limited
partnership (the “Acquired Partnership”), in
the percentage amount set forth on Exhibit A attached hereto.  The partnership interest of each Contributor
in the Acquired Partnership shall be referred to herein as an “LP Interest” and collectively as the
“LP Interests.”

 

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

 

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

 

Agreement

 

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

 

1.                                      Definitions;
Usage.

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3.                                  Contribution
Consideration.

 

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

 

 

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

 

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

 

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

 

5.                                      OP
Units.

 

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

 

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

 

(c)  This Section 5 shall survive the Closing.

 

6.                                      Conditions
Precedent

 

(a)  Contributor’s Conditions
Precedent.  The performance by
each Contributor of his or her agreements and obligations under this Agreement,
including without limitation the obligation

 

 

to complete Closing, is
conditioned upon the satisfaction (or such Contributor’s written waiver) on or
prior to the Closing Date of all of the following conditions:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

7.                                      Partnership
Liabilities and Sales of Real Property

 

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

 

(i)                                     Use
its good faith, reasonable and diligent efforts to cause any sale or other
voluntary disposition of the LP Interests (and all assets received in exchange
for such LP Interests in which Acquiror has an adjusted tax basis substituted
from that of such LP Interests) to qualify for non-recognition of gain under
the Code (for example, by means of exchanges

 

 

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

 

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

 

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

 

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

 

In all events,
the Non-Taxable Disposition Period shall terminate, and the provisions of this
Section 7 only shall automatically be rendered null and void and shall be of no
further force or effect, as of the occurrence of an amendment or other material
revision to Code Section 1031 or the Treasury Regulations promulgated
thereunder, which amendment or revision materially and,

 

 

with respect to the REIT and Acquiror,
adversely alters the tax-treatment of “like-kind” exchanges of real estate
pursuant to such provisions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

 

10.                               Indemnities

 

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

 

(b)                               Acquiror’s Indemnities.

 

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

 

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

 

11.                               Closing

 

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

 

(b)                                 Closing Documents.

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

12.                               Default

 

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

 

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

 

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

 

14.                             Notices.  Any
notices, requests, claims, demand and other communications required or
permitted to be given hereunder shall be given in writing and shall be
delivered (a) in person, (b) by certified mail, postage prepaid, return receipt
requested, (c) by a commercial overnight

 

 

courier that guarantees next day delivery and provides to the sender a
delivery receipt or (d) by legible facsimile (followed by hard copy delivered
in accordance with preceding subsections (a)-(c)). Any notice shall be
effective only upon receipt (or refusal by the intended recipient to accept
delivery). Such notices shall be addressed as follows:

 

Contributors:

 

Gary M. Holloway, Sr.

c/o GMH Communities Trust

10 Campus Boulevard

Newtown Square, PA 19073

Fax: 610-355-8001

 

Bruce F. Robinson

c/o GMH Communities Trust

10 Campus Boulevard

Newtown Square, PA 19073

Fax: 610-355-8001

 

Joseph M. Coyle

c/o GMH Communities Trust

10 Campus Boulevard

Newtown Square, PA 19073

Fax: 610-355-8001

 

Robert DiGiuseppe

c/o GMH Communities Trust

10 Campus Boulevard

Newtown Square, PA 19073

Fax: 610-355-8001

 

Denise Hubley

c/o GMH Communities Trust

10 Campus Boulevard

Newtown Square, PA 19073

Fax: 610-355-8001

 

Acquiror:

 

GMH Communities, LP

10 Campus Boulevard

Newtown Square, PA 19073

Attention: Joseph M. Macchione

Fax: 610-355-8480

 

 

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

 

15.                               Miscellaneous

 

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

 

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

 

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

 

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

 

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

 

(f)                                  Attorneys’
Fees.  If any party hereto fails to
perform any of his, her or its obligations under this Agreement or if any
dispute arises between the parties hereto concerning the meaning or
interpretation of any provision of this Agreement, then the defaulting party or
the party not prevailing in such dispute, as the case may be, shall pay any and
all costs and expenses incurred by the other party on account of such default
and/or in enforcing or establishing its rights hereunder, including, without
limitation, court costs (including costs of any trial or appeal therefrom) and
reasonable attorneys’ fees and disbursements.

 

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

 

 

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

 

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

 

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

 

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

 

(l)                                     Survival.  Notwithstanding
any presumption to the contrary, all agreements, covenants and conditions
contained in this Agreement which, by their nature, impliedly or expressly
involve observance or performance in any respect after the Closing, or which
cannot be ascertained to have been fully observed or performed until after
Closing, and all representations and warranties of each Contributor and Acquiror
contained in this Agreement (but only for a period of six (6) months), shall
survive Closing and shall not merge with any Closing Document.

 

(m)                               Joint Undertaking.  In
addition to the obligations expressly required to be performed hereunder by
each Contributor and Acquiror, each party agrees to cooperate with the other
and to perform such other acts and to execute, acknowledge and deliver, before
and after the Closing, such other instruments, documents and materials as a
party may reasonably request and as shall be necessary in order to effect the
consummation of the transactions contemplated hereby; provided that no such
other instrument, document or material shall either extend or enlarge the
obligations of the non-requesting party beyond the express undertakings of this

 

 

Agreement or shall require or
could require the non-requesting party to make any payment or expend any funds
which are not expressly provided for herein.

 

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

 

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

 

[Remainder of Page Intentionally Left Blank; Signatures Set Forth on
the Following Page]

 

 

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

 

	
   

  	
  CONTRIBUTOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/ Gary M. Holloway, Sr.

  	
   

  
	
   

  	
  Gary M. Holloway, Sr.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/ Joseph M. Coyle

  	
   

  
	
   

  	
  Joseph M. Coyle

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/ Bruce F. Robinson

  	
   

  
	
   

  	
  Bruce F. Robinson

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/ Denise Hubley

  	
   

  
	
   

  	
  Denise Hubley

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/ Robert DiGiuseppe

  	
   

  
	
   

  	
  Robert DiGiuseppe

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ACQUIROR:

  
	
   

  	
   

  
	
   

  	
  GMH Communities Property, LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GMH Communities GP Trust, its general

  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Joseph M. Macchione

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Joseph M. Macchione

  
	
   

  	
   

  	
   

  	
  Title: Secretary

  
										

 

 

EXHIBIT A

 

Contributor’s LP Interest

 

	
  Gary M.
  Holloway, Sr.

  	
   

  	
   

  	
  6.9435

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bruce F.
  Robinson

  	
   

  	
   

  	
  0.522

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Joseph M.
  Coyle

  	
   

  	
   

  	
  0.225

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert
  DiGiuseppe

  	
   

  	
   

  	
  0.072

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Denise
  Hubley

  	
   

  	
   

  	
  0.0297

  	
  %

  

 

 

EXHIBIT B

 

[Legal Description of Property]Exhibit 4.3

 

AMENDMENT NO. 1 TO PREFERRED STOCK RIGHTS
AGREEMENT

 

This Amendment
No. 1 (this “Amendment”)
to the Preferred Stock Rights Agreement
dated as of March 4, 2005 (the “Rights Agreement”),
between Digital Impact, Inc., a Delaware corporation (the “Company”),
and Computershare Investor Services LLC, as Rights Agent (the “Rights Agent”), is made and entered
into as of March 24, 2005.

 

WHEREAS, the Company and the Rights Agent have previously executed and
entered into the Rights Agreement;

 

WHEREAS, pursuant to Section 27 of the Rights Agreement, the Company may
from time to time supplement or amend the Rights Agreement in accordance with
the provisions thereof;

 

WHEREAS, the Company intends to enter into an Agreement and Plan of
Merger (as it may be amended or supplemented from time to time, the “Merger Agreement”) by and among
Acxiom Corporation, a Delaware corporation (“Parent”),
the Company and Adam Merger Corporation, a Delaware corporation and a
wholly-owned subsidiary of Parent (“Merger Sub”)
(any capitalized term used in this Amendment and not otherwise defined herein
shall have the meaning ascribed thereto in the Rights Agreement); and

 

WHEREAS, on March 24, 2005, the Board of Directors of the Company has
approved and deemed desirable the amendment of the Rights Agreement to the effect
that (i) Parent shall not be an “Acquiring Person” under the Rights Agreement
solely by virtue of entering into the Merger Agreement and the performance of
the transactions contemplated thereby, including the Merger and the Offer (as such
terms are defined in the Merger Agreement), and (ii) the entry into the Merger
Agreement, and the Merger, the Offer and the performance of the transactions
contemplated thereby shall not result in the grant of rights to any Person under
the Rights Agreement or enable or require the Company Rights (as defined in the
Merger Agreement) to be exercised, distributed or triggered, and has authorized the entering into of this Amendment.

 

NOW, THEREFORE, in consideration of the promises and the mutual agreements
herein set forth, the parties hereby agree as follows:

 

1.                                       Section 1(a) of the Rights Agreement is hereby amended and
restated in its entirety as follows:

 

(a)                                  “Acquiring Person” shall mean any
Person, who or which, together with all Affiliates and Associates of such
Person, shall be the Beneficial Owner of 15% or more of the Common Shares then
outstanding, but shall not include the Company, any Subsidiary of the Company
or any employee benefit plan of the Company or of any Subsidiary of the
Company, or any entity holding Common Shares for or pursuant to the terms of
any such plan.  Notwithstanding the foregoing, no Person shall be deemed
to be an Acquiring Person as the result of an acquisition of Common Shares by
the Company which, by reducing the number of shares outstanding, increases the
proportionate number of shares beneficially owned by such Person to 15% or more
of the

 

 

Common Shares of the Company then outstanding;
provided, however, that if a Person shall become the Beneficial Owner of 15% or
more of the Common Shares of the Company then outstanding by reason of share
purchases by the Company and shall, after such share purchases by the Company,
become the Beneficial Owner of any additional Common Shares of the Company (other
than pursuant to a dividend or distribution paid or made by the Company on the
outstanding Common Shares in Common Shares or pursuant to a split or
subdivision of the outstanding Common Shares), then such Person shall be deemed
to be an Acquiring Person unless upon becoming the Beneficial Owner of such
additional Common Shares of the Company such Person does not beneficially own
15% or more of the Common Shares of the Company then outstanding.  Notwithstanding the foregoing, if the Company’s
Board of Directors determines in good faith that a Person who would otherwise
be an “Acquiring Person,” as defined pursuant to the foregoing provisions of
this paragraph (a), has become such inadvertently (including, without
limitation, because (i) such Person was unaware that it beneficially owned
a percentage of the Common Shares that would otherwise cause such Person to be
an “Acquiring Person,” as defined pursuant to the foregoing provisions of this
paragraph (a), or (ii) such Person was aware of the extent of the Common
Shares it beneficially owned but had no actual knowledge of the consequences of
such beneficial ownership under this Agreement) and without any intention of
changing or influencing control of the Company, and if such Person divested or
divests as promptly as practicable a sufficient number of Common Shares so that
such Person would no longer be an “Acquiring Person,” as defined pursuant to
the foregoing provisions of this paragraph (a), then such Person shall not be
deemed to be or to have become an “Acquiring Person” for any purposes of this
Agreement including, without limitation Section 1(gg) hereof.  Notwithstanding the foregoing, none of Acxiom Corporation, a
Delaware corporation (“Parent”), or
any of its Subsidiaries, shall be deemed to be an “Acquiring Person,” as
defined pursuant to the foregoing provisions of this paragraph (a) by virtue of: (A) the execution, delivery
and performance of the Agreement and Plan of Merger by and among Parent, the
Company and Adam Merger Corporation (as it may be amended or supplemented from
time to time, the “Merger Agreement”), (B) the acquisition
of Beneficial Ownership of Common Shares by Adam Merger Corporation pursuant to
the Offer (as defined in the Merger Agreement) in exchange for the Offer Price (as
defined in the Merger Agreement) in accordance with the Merger Agreement, or
(C) the consummation of the Merger (as defined in the Merger Agreement) or the
transactions expressly contemplated by the Merger Agreement (each of the events
set forth in the foregoing clauses (A) to (C), an “Exempt
Event”).

 

2.                                       Section 1(k) of the Rights Agreement is hereby amended by adding
the following sentence at the end thereof:

 

“Notwithstanding the foregoing, a
Distribution Date shall not be deemed to have occurred as a result of (i) any
Exempt Event or (ii) the Offer pursuant to the terms of the Merger Agreement.”

 

3.                                       Section 1(gg) of the Rights Agreement is hereby amended by adding
the following sentence at the end thereof:

 

“Notwithstanding the foregoing, a Shares
Acquisition Date shall not be deemed to have occurred as a result of any Exempt
Event.”

 

 

4.                                       Section 7(a) of the Rights Agreement is hereby amended and
restated in its entirety as follows:

 

(a)                                  Subject to
Sections 7(e), 23(b) and 24(b) hereof, the registered holder of any Rights
Certificate may exercise the Rights evidenced thereby (except as otherwise
provided herein), in whole or in part, at any time after the Distribution Date,
upon surrender of the Rights Certificate, with the form of election to purchase
on the reverse side thereof duly executed, to the Rights Agent at the office of
the Rights Agent designated for such purpose, together with payment of the
Exercise Price for each one-thousandth (0.001) of a Preferred Share (or,
following a Triggering Event, other securities, cash or other assets as the
case may be), as to which the Rights are exercised, at or prior to the earliest of (i) the time immediately prior to
the consummation of the Merger (as defined in the Merger Agreement), (ii) the
Close of Business on the Expiration Date, (iii) the time at which the Rights
are redeemed as provided in Section 23 hereof, or (iv) the time at which such
Rights are exchanged as provided in Section 24 hereof.

 

5.                                       A new Section 20(l) of the Rights Agreement is hereby added as
follows:

 

(l)                                     The Rights
Agent shall not be subject to, be required to comply with, or determine if any
Person has complied with, the Merger Agreement or any agreements and documents
related to or referred to in the Merger Agreement or any other agreement
between or among the parties thereto, even though reference thereto may be made
in this Agreement.

 

6.                                       The undersigned officer of the Company, being an appropriate
officer of the Company and authorized to do so by resolution of the Board of
Directors of the Company duly adopted and approved at a meeting held March 24,
2005, hereby certifies to the Rights Agent that this Amendment is in compliance
with Section 27 of the Rights Agreement.

 

7.                                       This Amendment shall be subject to the
provisions of Sections 26 (Notices), 27 (Supplements and Amendments), 28
(Successors), 29 (Determination and Actions by the Board of Directors, etc.),
30 (Benefits of this Agreement), 31 (Severability), 32 (Governing Law), 33
(Counterparts) and 34 (Descriptive Headings) of the Rights Agreement as if set
forth herein.

 

8.                                       Except as set forth herein, the Rights Agreement shall remain in
full force and effect.

 

9.                                       This Amendment may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an
original, but all such counterparts shall together constitute one and the same
instrument.

 

 

IN WITNESS
WHEREOF, this Amendment has
been duly executed by the Company and the Rights Agent as of the day and year
first written above.

 

 

	
  COMPANY

  	
  DIGITAL IMPACT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Oppenheimer

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  David Oppenheimer

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President, Chief Financial
  Officer

  & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Attest:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Oppenheimer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  David Oppenheimer

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President, Chief Financial
  Officer

  & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
  RIGHTS AGENT

  	
  COMPUTERSHARE INVESTOR
  SERVICES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gerry Mullins

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Gerry Mullins

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

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