Document:

Exhibit 10.23

 

AMENDMENT NO. 5

 

TO

 

FINANCING AGREEMENT

 

THIS
AMENDMENT NO. 5 (this “Amendment”) is entered into as of May 14, 2008, by
and among RAFAELLA APPAREL GROUP, INC., a Delaware corporation (“Borrower”),
VERRAZANO, INC., a New York corporation (“Verrazano”), HSBC BANK USA, NATIONAL
ASSOCIATION (“HSBC”) and the other financial institutions which are now or
which hereafter become a party hereto (each a “Lender” and collectively, the “Lenders”)
and HSBC, as agent for the Lenders (in such capacity, the “Agent’’).

 

BACKGROUND

 

Borrower,
Verrazano, Agent and Lenders are parties to a Financing Agreement dated June 20,
2005 (as amended by Amendment No. 1 to Financing Agreement dated as of March 31,
2006, Amendment No. 2 to Financing Agreement effective as of December 31,
2006, Consent and Amendment No. 3 dated as of March 4, 2008,
Amendment No. 4 dated as of March 28, 2008, and as hereafter further
amended, restated, supplemented or otherwise modified from time to time, the “Financing
Agreement”) pursuant to which Agent and Lenders provide Borrower with certain
financial accommodations.

 

Borrower
has requested that Agent and Lenders amend the Net Income financial covenant
contained in the Financing Agreement, and Agent and Lenders are willing to do
so on the terms and conditions hereafter set forth.

 

NOW,
THEREFORE, in consideration of any loan or advance or grant of credit
heretofore or hereafter made to or for the account of Borrower by Agent and
Lenders, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree
as follows;

 

1.             Definitions. All
capitalized terms not otherwise defined herein shall have the meanings given to
them in the Financing Agreement.

 

2.             Amendment to
Financing Agreement. Subject to satisfaction of the conditions precedent
set forth in Section 3 below, Section 6.8(b) of the Financing
Agreement is hereby amended and restated in its entirety as follows:

 

“(b) Net Income. Maintain (i) Net
Income in excess of $0 during each fiscal quarter ending on or after September 30,
2005 through and including September 30, 2006, (ii) Net Income during
each fiscal quarter ending on or after December 31, 2006 in excess of
($3,000,000) (i.e., not suffer a loss of greater than $3,000,000 in any fiscal
quarter) and (iii) Net Income in excess of $0 during each period of two
consecutive fiscal quarters (on a rolling basis) ending on or after December 31,
2006; provided, however, for the two consecutive fiscal quarters
ending on March 31, 2008, Net Income shall be in excess of ($2,000,000)
(i.e., for

 

 

such
two fiscal quarter period Borrower shall not suffer a loss of greater than $2,000,000);
provided, further, for the two consecutive fiscal quarters (on a
rolling basis) ending on or after June 30, 2008, for purposes of
determining compliance with this Section 6.8(b), Net Income shall be
calculated so that, to the extent in calculating Net Income for such period Net
Income was decreased by noncash expenses consisting of (i) amortization
for customer relationships and non-compete agreements, (ii) original issue
discount on the Senior Secured Notes, (iii) deferred financing costs, and (iv) reduction
in value of intangible assets, the amounts which were deducted in calculating
Net Income for such period for the items described in clauses (i) through (iv) above
shall be added back to Net Income as calculated in accordance with GAAP; provided,
that, the maximum amount of the add backs to Net Income, in any one
quarter, shall not exceed $2,500,000 commencing with the fiscal quarters ending
on or after September 30, 2008.”

 

3.           Condition of
Effectiveness. This Amendment shall become effective upon receipt
by Agent of (i) four (4) copies of this Amendment executed by
Borrower, Verrazano, Agent and Lenders, and (ii) an administrative fee
equal to $30,000 which shall he charged by Agent to Borrower’s Account and
shall be shared pro rata by Lenders based upon their respective Commitment
Percentages.

 

4.           Representations
and Warranties. Borrower and Verrazano each hereby represents and
warrants as follows:

 

(a)           This Amendment
and the Financing Agreement, as amended hereby, constitute its legal, valid and
binding obligations and are enforceable against it in accordance with their
respective terms.

 

(b)           Upon the
effectiveness of this Amendment, it hereby reaffirms, in all material respects,
all representations, warranties and covenants made in the Financing Agreement
on and as of the date hereof except: (i) to the extent such representation,
warranties or covenants are limited by their terms to a specific date in which
case they shall be true and correct in all material respects as of such date or
(ii) for changes in the nature of its business or
operations that may occur after the Closing Date in the ordinary course of
business so long as Agent has consented to such changes or such changes are not
in violation of any provision of the Financing Agreement or any Other Document.

 

(C)           No Event of Default or
Default has occurred and is continuing or would exist after giving effect to
this Amendment.

 

(d)           It does not
have any defense, counterclaim or offset with respect to the Financing
Agreement.

 

2

 

5.             Effect on the Financing
Agreement.

 

(a)           Upon the
effectiveness of Section 2 hereof, each reference in the Financing
Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like
import shall mean and he a reference to the Financing Agreement as amended
hereby.

 

(b)           Except as
specifically amended herein, the Financing Agreement, and all other documents,
instruments and agreements executed and/or delivered in connection therewith,
shall remain in full force and effect, and are hereby ratified and confirmed.

 

(c)           The execution,
delivery and effectiveness of this Amendment shall not operate as a waiver of
any right, power or remedy of Agent or Lenders, nor constitute a waiver of any
provision of the Financing Agreement, or any other documents, instruments or
agreements executed and/or delivered under or in connection therewith.

 

6.             Governing Law This Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns and shall be governed by and construed in accordance with the laws of
the State of New York.

 

7.             Headings. Section headings in this Amendment are included
herein for convenience of reference only and shall not constitute a part of
this Amendment for any other purpose.

 

8.             Counterparts: Facsimile. This Amendment may be executed by the
parties hereto in one or more counterparts. each of which shall be deemed an
original and all of which when taken together shall constitute one and the same
agreement. Any signature delivered by a party by facsimile or electronic
transmission, including via “pdf” format, shall be deemed to be an original
signature hereto.

 

3

 

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

 

 

	
   

  	
  RAFAELLA
  APPAREL GROUP, as a Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Chad J. Spooner

  
	
   

  	
   

  	
  Name:
  CHAD J. SPOONER

  
	
   

  	
   

  	
  Title:
  CFO

  

 

 

	
   

  	
  VERRAZANO,
  INC., as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Chad J. Spooner

  
	
   

  	
   

  	
  Name:
  CHAD J. SPOONER

  
	
   

  	
   

  	
  Title:
  VICE PRESIDENT

  

 

 

	
   

  	
  HSBC
  BANK USA, NATIONAL, ASSOCIATION,

  as Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Lisa Augustus

  
	
   

  	
   

  	
  Name:
  Lisa Augustus

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

 

	
   

  	
  ISRAEL
  DISCOUNT BANK OF NEW YORK, as 

  a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:Exhibit
10.2

 

CLEAN ENERGY FUELS CORP.

2006 EQUITY INCENTIVE PLAN

 

STOCK AWARD AGREEMENT

 

Clean Energy Fuels
Corp., a Delaware  corporation (the “Company”), hereby awards a Stock Award of
Common Stock to the Participant named below. 
The terms and conditions of the Stock Award are set forth in this Stock Award
Agreement and in the Company’s 2006 Equity Incentive Plan (the “Plan”).  Capitalized terms not defined herein shall
have the meanings given to them in the Plan.

 

Date of Award:

 

Name of Participant:

 

Number of Shares of Common Stock
Awarded:

 

Price per Share:

 

Amount Paid by Participant for
the Shares of Common Stock Awarded:

 

Aggregate Fair Market Value of
Common Stock on Date of Award:

 

Vesting Schedule:

 

Dated:

 

	
  The Company:

  	
   

  	
  Participant:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:Exhibit 10.1

 

 

PURCHASE AND SALE AGREEMENT

 

by and between

 

NP NORMANDY OVERLOOK, LLC,

as Seller

 

and

 

ADOBE SYSTEMS INCORPORATED,

as Buyer

 

Effective Date:  May 12,
2008

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  1 -

  	
  CERTAIN
  DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  2 -

  	
  SALE OF
  PROPERTY

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  3 -

  	
  PURCHASE
  PRICE

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Initial Deposits

  	
  8

  
	
   

  	
  3.2

  	
  Cash at Closing

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  4 -

  	
  TITLE
  MATTERS

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Title to Real Property

  	
  9

  
	
   

  	
  4.2

  	
  No New Exceptions

  	
  9

  
	
   

  	
  4.3

  	
  Permitted Exceptions

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  5 -

  	
  BUYER’S DUE
  DILIGENCE/CONDITION OF THE PROPERTY

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Buyer’s Due Diligence

  	
  9

  
	
   

  	
  5.2

  	
  Access to the Property

  	
  10

  
	
   

  	
  5.3

  	
  Waiver and Release

  	
  10

  
	
   

  	
  5.4

  	
  Buyer’s Indemnity

  	
  10

  
	
   

  	
  5.5

  	
  Confidentiality

  	
  10

  
	
   

  	
  5.6

  	
  Subsequent Release of
  Hazardous Materials

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  6 -

  	
  CONSTRUCTION
  OF SHELL BUILDING IMPROVEMENTS

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Construction by Seller

  	
  11

  
	
   

  	
  6.2

  	
  Construction Period Matters

  	
  12

  
	
   

  	
  6.3

  	
  Seller Change Orders

  	
  13

  
	
   

  	
  6.4

  	
  Completion of Construction

  	
  14

  
	
   

  	
  6.5

  	
  Completion Requirements

  	
  15

  
	
   

  	
  6.6

  	
  Seller’s Covenants Regarding
  Certain Matters

  	
  15

  
	
   

  	
  6.7

  	
  Seller’s Post Closing
  Requirements

  	
  15

  
	
   

  	
  6.8

  	
  Early Access for Fit-Out
  Improvements

  	
  17

  
	
   

  	
  6.9

  	
  Referral of Disputes to
  Independent Architect.

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  7 -

  	
  BUYER CHANGE
  ORDERS

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  Proposed Change Orders

  	
  18

  
	
   

  	
  7.2

  	
  Seller’s Approval; Change
  Order Costs

  	
  20

  
	
   

  	
  7.3

  	
  Cost Estimate; Final Pricing

  	
  20

  
	
   

  	
  7.4

  	
  Buyer’s Authorization

  	
  21

  
	
   

  	
  7.5

  	
  Payment for Buyer Directed
  Change Orders

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  8 -

  	
  ADJUSTMENTS
  AND PRORATIONS

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Real Estate and Personal Property
  Taxes

  	
  22

  
	
   

  	
  8.2

  	
  Other Property Operating
  Expenses

  	
  23

  
	
   

  	
  8.3

  	
  Closing Costs

  	
  23

  
	
   

  	
  8.4

  	
  Apportionment Credit

  	
  23

  
	
   

  	
  8.5

  	
  Delayed Adjustment; Survival

  	
  23

  

 

i

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  9 -

  	
  CLOSING

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  Closing Date

  	
  24

  
	
   

  	
  9.2

  	
  Title Transfer and Payment of
  Purchase Price

  	
  24

  
	
   

  	
  9.3

  	
  Seller’s Closing Deliveries

  	
  24

  
	
   

  	
  9.4

  	
  Buyer’s Closing Deliveries

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  10 -

  	
  CONDITIONS
  PRECEDENT TO CLOSING

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  Conditions to Seller’s
  Obligations

  	
  26

  
	
   

  	
  10.2

  	
  Conditions to Buyer’s
  Obligations

  	
  26

  
	
   

  	
  10.3

  	
  Waiver of Failure of
  Conditions Precedent; Term

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  11 -

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.1

  	
  Buyer’s Representations

  	
  28

  
	
   

  	
  11.2

  	
  Seller’s Representations

  	
  28

  
	
   

  	
  11.3

  	
  General Provisions

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  12 -

  	
  MUTUAL
  COVENANTS

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.1

  	
  Publicity

  	
  32

  
	
   

  	
  12.2

  	
  Brokers

  	
  33

  
	
   

  	
  12.3

  	
  Tax Protests; Tax Refunds and
  Credits

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  13 -

  	
  DEFAULT;
  REMEDIES; TERMINATION; INABILITY TO COMPLETE CONSTRUCTION

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.1

  	
  Seller’s Termination Right

  	
  34

  
	
   

  	
  13.2

  	
  Buyer’s Remedies

  	
  34

  
	
   

  	
  13.3

  	
  Failure to Complete
  Construction

  	
  35

  
	
   

  	
  13.4

  	
  Specific Performance

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  14 -

  	
  ESCROW
  PROVISIONS

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  15 -

  	
  CONDEMNATION/CASUALTY

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.1

  	
  Right to Terminate

  	
  37

  
	
   

  	
  15.2

  	
  Allocation of Awards

  	
  37

  
	
   

  	
  15.3

  	
  Waiver

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 

  	
  16 -

  	
  MISCELLANEOUS

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.1

  	
  Buyer’s Assignment

  	
  37

  
	
   

  	
  16.2

  	
  Designation Agreement

  	
  39

  
	
   

  	
  16.3

  	
  Survival/Merger

  	
  39

  
	
   

  	
  16.4

  	
  Integration; Waiver

  	
  39

  
	
   

  	
  16.5

  	
  Governing Law

  	
  39

  
	
   

  	
  16.6

  	
  Captions Not Binding;
  Exhibits

  	
  39

  
	
   

  	
  16.7

  	
  Binding Effect

  	
  40

  
	
   

  	
  16.8

  	
  Severability

  	
  40

  
	
   

  	
  16.9

  	
  Notices

  	
  40

  
	
   

  	
  16.10

  	
  Counterparts

  	
  41

  

 

ii

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.11

  	
  No Recordation

  	
  41

  
	
   

  	
  16.12

  	
  Additional Agreements;
  Further Assurances

  	
  42

  
	
   

  	
  16.13

  	
  Construction

  	
  42

  
	
   

  	
  16.14

  	
  Maximum Aggregate Liability

  	
  42

  
	
   

  	
  16.15

  	
  Time of Essence

  	
  42

  
	
   

  	
  16.16

  	
  JURISDICTION

  	
  42

  
	
   

  	
  16.17

  	
  WAIVER OF JURY TRIAL

  	
  43

  
	
   

  	
  16.18

  	
  Facsimile Signatures

  	
  43

  
	
   

  	
  16.19

  	
  Limitation on Personal
  Liability

  	
  43

  
						

 

iii

 

EXHIBITS

 

	
  Exhibit A

  	
   

  	
  Legal Description

  
	
  Exhibit B

  	
   

  	
  Intentionally
  Omitted

  
	
  Exhibit C

  	
   

  	
  Form of
  Deed

  
	
  Exhibit D

  	
   

  	
  Intentionally
  Omitted

  
	
  Exhibit E

  	
   

  	
  Form of
  Bill of Sale

  
	
  Exhibit F

  	
   

  	
  Construction
  Plans

  
	
  Exhibit G

  	
   

  	
  Form of
  FIRPTA Affidavit

  
	
  Exhibit H

  	
   

  	
  Form of
  Title Affidavit

  
	
  Exhibit I

  	
   

  	
  Form of
  Surveyor Certification

  
	
  Exhibit J

  	
   

  	
  Intentionally
  Omitted

  
	
  Exhibit K

  	
   

  	
  Form of
  Change Order Escrow Account Agreement

  
	
  Exhibit L

  	
   

  	
  List
  of Defaults under Contracts

  
	
  Exhibit M

  	
   

  	
  Intentionally
  Omitted

  
	
  Exhibit N

  	
   

  	
  Form of
  Assignment of Construction Warranties, Contract Rights and Rights

  
	
  Exhibit O

  	
   

  	
  Title
  Commitment

  
	
  Exhibit P

  	
   

  	
  Existing
  Mortgages

  
	
  Exhibit Q

  	
   

  	
  Intentionally
  Omitted

  
	
  Exhibit R

  	
   

  	
  Form of
  Post-Closing Deliverables Escrow Agreement

  
	
  Exhibit S

  	
   

  	
  Form of
  Punchlist Escrow Agreement

  
	
  Exhibit T

  	
   

  	
  Form Contractor Consent, Form of Engineer Consent and
  Form of Architect Consent

  
	
  Exhibit U

  	
   

  	
  Insurance
  Certificate

  
	
  Exhibit V

  	
   

  	
  List
  of Documents

  
	
  Exhibit W-1

  	
   

  	
  HVAC
  Related Changes

  
	
  Exhibit W-2

  	
   

  	
  HVAC
  Initial Change Order

  
	
  Exhibit W-3

  	
   

  	
  LEED
  Related Changes

  
	
  Exhibit W-4

  	
   

  	
  LEED
  Initial Change Order

  
	
  Exhibit X

  	
   

  	
  Intentionally
  Omitted

  
	
  Exhibit Y

  	
   

  	
  Exceptions to Representation in Section 11.2

  

 

iv

 

PURCHASE AND SALE AGREEMENT

 

THIS
PURCHASE AND SALE AGREEMENT (this “Agreement”) is made to be
effective as of May 12, 2008, by and between NP NORMANDY OVERLOOK, LLC, a Delaware limited liability company
(“Seller”), and ADOBE SYSTEMS INCORPORATED, a Delaware corporation
(“Buyer”).

 

W I T N E S S E T H:

 

In consideration of the
mutual covenants and agreements set forth herein the parties hereto do hereby
agree as follows:

 

ARTICLE 1 - CERTAIN DEFINITIONS

 

As used herein, the
following terms shall have the following meanings:

 

“Architect” means
Perkins and Will.

 

“Architect’s Contract”
means that certain AIA Document B141/CMa 1992 Standard Form of Agreement
between Owner and Architect dated May 1, 2007.

 

“As-Built Survey”
shall have the meaning given in Section 6.5(b).

 

“Base Building Deposit”
shall mean the sum of Seven Million Dollars ($7,000,000), to the extent the
same is deposited by Buyer in accordance with the terms of Section 3.1
hereof, together with any interest earned thereon.

 

“Base Purchase Price”
shall mean the sum of Forty Four Million Six Hundred Eighty Five Thousand and
00/100 Dollars ($44,685,000).

 

“business day”
shall mean any day other than Saturday, Sunday, any federal holiday, or any
holiday in the Commonwealth of Massachusetts, the State of New Jersey or the
State of California.  If any period
expires on a day which is not a business day or any event or condition is
required by the terms of this Agreement to occur or be fulfilled on a day which
is not a business day, such period shall expire or such event or condition
shall occur or be fulfilled, as the case may be, on the next succeeding
business day.

 

“Buyer Change Order
Funds” shall have the meaning set forth in Section 13.2.

 

“Buyer Directed Change
Order Escrow Account” shall have the meaning set forth in Section 7.5.

 

“Buyer Delay”
shall mean any delay (measured in calendar days) in the performance or
completion of all or any portion of the Shell Building Improvements that causes
such completion to extend beyond the Target Completion Date, to the extent
attributable to:

 

(a)           the
review, processing and/or implementation of any Buyer Directed Change Order or
Buyer’s failure to pay the costs related to a Buyer Directed Change Order; or

 

 

(b)           any
act, omission or neglect of Buyer or any Buyer’s Representative in the
performance of Buyer’s obligations hereunder; provided, however, that in the
event of any such act, omission or neglect that could result in any Buyer
Delay, Seller shall notify Buyer thereof and Buyer shall have a period of two (2) business
days within which to cure the same and avoid any Buyer Delay attributable
thereto.

 

“Buyer Directed Change
Order” shall have the meaning set forth in Section 7.1(g).

 

“Buyer’s Reports”
shall mean the results of any physical examinations, inspections,
investigations, tests, studies, analyses, and/or evaluations prepared by or for
or otherwise obtained by any Buyer’s Representatives in connection with Buyer’s
Due Diligence.

 

“Buyer’s
Representatives” shall mean Buyer and any principal, direct or indirect
member, officer, director, employee, agent, representative or attorney of
Buyer.

 

“Carrying Costs”
shall mean the costs and expenses incurred by Seller in connection with the
ownership, maintenance and operation of the Property for the number of days by
which Substantial Completion was delayed attributable to Buyer Delay.  Such costs shall include, without limitation,
interest carry on the Construction Loan, the return on equity of Seller
attributable to such period calculated at eighteen percent (18%) per annum,
real estate taxes and operating expenses, insurance premiums, utilities,
Contractor’s general conditions (to the extent not included in the Final
Pricing of any Buyer Directed Change Orders) and similar costs of carrying the
Property during such period of Buyer Delay, as reasonably determined by
Seller.  Seller shall provide to Buyer at
least five (5) business days prior to the Closing a calculation of and
reasonable documentation (provided that no documentation shall be required in
connection with the return on equity of Seller) regarding the Carrying Costs.

 

“Change Order Escrow
Account Agreement” shall have the meaning set forth in Section 7.5.

 

“Change Order”
means any amendment, change or modification to the Construction Contract or the
Construction Plans.

 

“Closing” shall
mean the closing of the Transaction.

 

“Closing Date”
shall mean that date that is ten (10) business days following Seller’s
satisfaction of the Completion Requirements, as the same may be extended
pursuant to the terms of this Agreement.

 

“Closing Documents”
shall mean all documents and instruments executed and delivered by Buyer or
Seller pursuant to the terms of this Agreement in connection with the Closing,
including, without limitation, the documents and instruments required pursuant
to the terms of Article 9.

 

“Closing Tax Year”
shall mean the Tax Year in which the Closing Date occurs.

 

“Conditions Precedent”
shall have the meaning given in Section 10.2.

 

2

 

“Construction
Consultant” means, collectively, one or more construction consultants or
engineers employed by Buyer, at Buyer’s sole cost and expense, to advise with
respect to the construction of the Shell Building Improvements and the progress
thereof.

 

“Construction Contract”
means that certain AIA Document A121 CMc-2003 and AGC Document 565
Standard Form of Agreement Between Owner and Construction Manager between
Seller and Contractor, dated as of November 9, 2007, as amended by that
certain Amendment No. 1 dated November 13, 2007, as such contract may
be further amended or otherwise modified after the date hereof.

 

“Construction Loan”
shall mean that certain construction loan dated as of November 21, 2007,
by and between Seller and Lender.

 

“Construction Loan Documents”
shall mean, collectively, the loan agreement, the mortgage and the promissory
note, together with all other documents, instruments and certificates from time
to time evidencing, securing or executed in connection with the Construction
Loan as the same may be modified, renewed or restated from time to time.

 

“Construction Plans”
shall mean, collectively, the architectural, mechanical, engineering,
structural and electrical plans and specifications for the construction of the
Shell Building Improvements and the plans for the improvements to Hickory
Drive, as listed on Exhibit F, as the same may be modified pursuant
to the terms of this Agreement.

 

“Construction
Warranties” means, collectively, all warranties and guaranties from
Contractor and any subcontractors, suppliers and manufacturers relating to the
construction of the Shell Building Improvements or any portion thereof and the
installation of any equipment therein, including the benefits arising under the
subguard insurance policy and any other similar bond for Contractor or any
subcontractor.

 

“Contractor” means
William A. Berry & Son, Inc.

 

“Contracts” shall
mean, collectively, all material contracts, agreements, instruments or
documents relating to the ownership, operation, utility, construction or repair
of the Property executed by Seller (excluding the Architect’s Contract, the
Construction Contract, the Engineer’s Contract and the Construction Loan
Documents).

 

“Contract Rights”
shall mean, in each case, Seller’s right, title and interest in and to (a) any
Construction Warranties, and (b) any plans or specifications relating to
the Property.

 

“Cost Cap” shall
have the meaning set forth in Section 13.2.

 

“Cost Estimate”
means an estimate of the costs that will be incurred to implement a proposed
Buyer Directed Change Order, which estimate shall include design and
engineering costs, the incremental cost of any subcontractors, materials or
equipment, and the incremental costs of construction (with appropriate credit
to be given for equipment and work originally included in the Construction
Plans that would not be required if the proposed Buyer Directed Change Order
were authorized).

 

3

 

“deemed to know” (or words of similar import)
shall have the following meaning:

 

(a)        Buyer shall be “deemed
to know” of the existence of a fact or circumstance to the extent that:

 

(i)     any Buyer’s
Representative has actual knowledge of such fact or circumstance, or

 

(ii)    such fact or circumstance is disclosed by
this Agreement, the Documents, or any Buyer’s Reports.

 

(b)        Buyer shall be “deemed
to know” that any Seller’s Warranty is untrue, inaccurate or incorrect to the
extent that:

 

(i)     any of the Buyer’s Representatives has
actual knowledge of information which is inconsistent with such Seller’s
Warranty, or

 

(ii)    this Agreement, the Documents, or any Buyer’s
Reports contains information which is inconsistent with such of Seller’s
Warranties.

 

“Documents” shall
mean the documents and instruments applicable to the Property or any portion
thereof that any of the Seller Parties delivered to any Buyer’s Representatives
prior to the date of this Agreement or which were otherwise made available to
Buyer’s Representatives at the Property or obtained by any Buyer’s Representatives
prior to the date hereof in connection with Buyer’s Due Diligence, including,
without limitation, the Title Commitment, the Survey and the Property
Documents.

 

“Due Diligence”
shall mean Buyer’s review of the Real Property and the Documents.

 

“Engineer” shall
mean Tetra Tech Rizzo, Inc.

 

“Engineer’s Contract”
shall mean that certain Agreement dated April 27, 2007 between Engineer
and The Walsh Company LLC (“Walsh”), as assigned by Walsh to Seller
pursuant to that certain Assignment and Assumption of Contract dated November 12,
2007.

 

“Escrow Agent”
shall mean Fidelity National Title Insurance Company, whose mailing address is
133 Federal Street, 12th Floor, Boston, Massachusetts 02110,
Attention:  Charles P. Dattola, in
its capacity as escrow agent.

 

“Escrow Account”
shall have the meaning given in Section 3.1(b).

 

“Existing Mortgage”
shall mean the mortgage listed on Exhibit P attached hereto and
incorporated herein by this reference.

 

“Fit-Out Improvements”
means all build-out work, tenant improvements, work, finishes and installations
to prepare the Building for Buyer’s use and occupancy.  In no event shall the Shell Building
Improvements include any portion of the Fit-Out Improvements.

 

4

 

“Fit-Out Improvements
Work” means the facilities, materials, labor, supplies and work required
for the construction and completion of the Fit-Out Improvements.

 

“Force Majeure”
means an act of God, declared or undeclared war, riots, mob violence, acts of
terrorism, earthquake, labor difficulty not caused by Seller or Contractor,
civil commotion, fire, flood, explosion, acts of the elements, or other
casualty, shortage of labor, materials, facilities, energy, supplies or
equipment not caused by Seller, failure of transportation, lockouts, actions of
labor unions, condemnation, court orders, laws, rules, regulations or orders of
Governmental Authority not in existence as of the date hereof, permitting
delays not caused by Seller, unusually severe weather or other similar causes
beyond the reasonable control of Seller. 
Seller shall notify Buyer promptly following the inception of an event
of Force Majeure.

 

“Governmental
Authority” means any governmental or quasi-governmental authority or
official, including, without limitation, any federal, state, territorial,
county, district, municipal or other governmental or quasi-governmental agency,
board, branch, bureau, commission, court, department, other instrumentality,
political unit, subdivision or official, whether domestic or foreign.

 

“HVAC Related Changes
Estimate” shall have the meaning given in Section 7.1(a).

 

“I&I Covenant”
shall have the meaning given in Section 6.5(c).

 

“Independent Architect”
means William Harris of Signer Harris Architects.

 

“Land” shall mean
that certain parcel of land as legally described in Exhibit A
attached hereto and made a part hereof.

 

“Laws” shall mean
all municipal, county, state or federal statutes, codes, ordinances, laws, rules or
regulations.

 

“LEED Related Changes
Estimate” shall have the meaning given in Section 7.1(b).

 

“Lender” shall
mean National City Bank, a national banking association.

 

“Liabilities”
shall mean, collectively, any and all losses, costs, damages (excluding
consequential or punitive damages), claims, liabilities or expenses of any kind
or nature whatsoever.

 

“Liability Amount”
shall have the meaning set forth in Section 16.14.

 

“Major
Casualty/Condemnation” shall mean: (a) any condemnation or eminent
domain proceedings that occurs after the date hereof, if the same would result
in (i) the taking of any material portion of the office building or
parking structure that are to be constructed as part of the Shell Building
Improvements, or (ii) loss of access to the Real Property at the points
and to the extent contemplated by the Construction Plans that would be
reasonably likely to have a material adverse effect on the use or value of the
Property; and (b) any casualty that occurs after the date hereof, if as a
consequence thereof and despite the use of commercially reasonable efforts by
Seller, the Shell Building Improvements could not reasonably be completed and
the 

 

5

 

other Completion Requirements
set forth in Section 6.5 could not be satisfied by the Outside Completion
Date.

 

“New Special Permit”
shall mean that certain Special Permit to be issued by the City Council of the
City of Waltham and recorded with the Middlesex South Registry of Deeds (as the
same may thereafter be amended and/or replaced), which Special Permit shall
supersede and replace that certain Special Permit issued by the City Council of
the City of Waltham, Order Number 30032, dated September 27, 2004,
recorded with Middlesex South Registry of Deeds on November 1, 2004, in
Book 44017, Page 49, as affected by Order Number 30261 of the City Council
dated September 12, 2005, recorded with said Deeds in Book 46130, Page 33
as further affected by City Council Order Number 30517 dated September 11,
2006, recorded with said Deeds in Book 48426, Page 304, as further
affected by City Council Order Number 30765 dated September 24, 2007,
recorded with said Deeds in Book 50249, Page 48.

 

“Outside Completion
Date” shall have the meaning given in Section 6.1(c).

 

“Penalty Amount”
shall have the meaning given in Section 6.1(b).

 

“Permits” means,
collectively, any and all approvals, orders, licenses, permits, registrations,
certificates, qualifications, consents, authorizations, orders, variances,
determinations, filings and declarations required by any Governmental Authority
or other party, or pursuant to any agreement affecting the Property or by which
Seller is bound, necessary for the construction, completion, ownership or
operation of the Shell Building Improvements in accordance with the
Construction Plans, including, without limitation, the New Special Permit.

 

“Permitted Exceptions”
shall have the meaning given in Section 4.1.

 

“Personal Property”
shall mean, collectively, all equipment, machinery, supplies and other articles
of tangible personal property owned by Seller or hereafter acquired by Seller
that is located on the Real Property and used in the ownership, operation, use
and maintenance of the Real Property.

 

“Post-Closing
Requirements” shall have the meaning set forth in Section 6.7(a).

 

“Property” shall
mean, collectively, (a) the Real Property, (b) the Personal Property,
(c) the Shell Building Improvements, (d) the Contract Rights, and (e) the
Rights.

 

“Property Documents”
shall mean, collectively, (a) the Construction Plans, (b) the
Architect’s Contract, Engineer’s Contract and the Construction Contract, and (c) any
other documents or instruments which constitute, evidence or create any portion
of or interest in the Property.

 

“Punchlist Escrow
Agreement” shall have the meaning set forth in Section 6.7(c).

 

“Punchlist Items”
means, collectively, unfinished or incomplete items of construction, or items
of construction that require correction or adjustment, relating to the Shell
Building Improvements that are not necessary to be completed for the
commencement of Fit-Out Improvements or achievement of Substantial Completion,
the cost of completion or correction of which shall not exceed $250,000.

 

6

 

“Purchase Price”
shall mean the Base Purchase Price.

 

“Real Property”
shall mean, the Land, provided, however, that in the event of any condemnation
that occurs after the date hereof, the term “Real Property” shall not include
any portion of the Land that is taken as a result of any such condemnation
proceeding.

 

“Rights” means,
collectively, (i) any and all right, title and interest of Seller in and
to all easements or rights-of-way now or hereafter affecting or appurtenant to
the Land and any and all of Seller’s rights to use same; (ii) all of
Seller’s right, title and interest in any other rights affecting or related to
the Property, including, without limitation (A) all trademarks, logos and
any name or names by which the Property is called or known and (B) all
air, surface, subsurface, development and other rights associated with or
appurtenant to the Property, including, without limitation, all Permits.

 

“Seller-Allocated
Amounts” shall mean, with respect to any condemnation or eminent domain
proceedings with respect to any portion of the Property that occurs after the
date hereof, reasonable actual out-of-pocket third party costs, expenses and
fees, including reasonable attorneys’ fees, expenses and disbursements,
incurred by Seller in connection with obtaining payment of any award or
proceeds in connection with any such condemnation or eminent domain
proceedings.

 

“Seller Parties”
shall mean and include, collectively, (a) Seller, (b) its counsel, (c) Seller’s
Broker, (d) any direct or indirect owner of any beneficial interest in
Seller; and (e) any officer, director, employee, or agent of Seller,
counsel to Seller, Seller’s Broker, The Walsh Company or any direct or indirect
owner of any beneficial interest in Seller.

 

“Seller’s Broker”
shall mean, collectively, Jones Lang LaSalle and T3 Advisors.

 

“Seller’s knowledge”
or words of similar import shall refer only to the actual knowledge of Justin
Krebs or Kevin Daly (and, in connection with the representation set forth in Section 11.2(k),
Christopher Neelon), in each case without duty of inquiry.

 

“Seller’s Warranties”
shall mean Seller’s representations and warranties set forth in Section 11.2
and in the Closing Documents executed by Seller, as such representations and
warranties may be deemed modified or waived by Buyer pursuant to the terms of
this Agreement.

 

“Shell Building
Improvements” means, collectively, the improvements consisting of a six
story shell and core office building containing 108,469 square feet of space
together with a parking structure with 361 parking spaces, all to be
constructed on the Land substantially in accordance with the Construction Plans
and the terms of this Agreement.

 

“Survey” shall
mean, that certain survey of the Property prepared by Precision Land Surveying, Inc.,
dated October 10, 2007, entitled “#21 - #61 Hickory Drive,
ALTA/ACSM Land Title Survey in Waltham, Massachusetts.”

 

“Tax Year” shall
mean the year period commencing on July 1st of each calendar year and
ending on June 30th of the next calendar year, being the real estate tax
year for the county in which the Property is located.

 

7

 

“Title Commitment”
shall have the meaning given in Section 4.1.

 

“Title Company”
shall mean Fidelity National Title Insurance Company, in its capacity as title
insurer.

 

“Transaction”
shall mean the transaction contemplated by this Agreement.

 

ARTICLE 2 - SALE OF PROPERTY

 

Seller hereby agrees to
sell, transfer and assign to Buyer, and Buyer hereby agrees to purchase, accept
and assume, upon and subject to the terms and conditions set forth in this Agreement
and the Closing Documents, all of Seller’s right, title and interest in and to
the Property.

 

ARTICLE 3 - PURCHASE PRICE

 

In consideration of the
sale of the Property to Buyer, Buyer shall pay to Seller an amount equal to the
Purchase Price, as prorated and adjusted as set forth in Article 8, Section 9.2,
or as otherwise provided under this Agreement. 
The Purchase Price shall be paid as follows:

 

3.1          Initial Deposits.

 

(a)           Payment
of Deposits.  Within three (3) business
days after the full and final execution of this Agreement and as a condition
precedent to the effectiveness of this Agreement, Buyer shall pay the Base
Building Deposit and the HVAC Related Changes Estimate (provided for in Section 7.1(a))
and the LEED Related Changes Estimate (provided for in Section 7.1(b)) to
Escrow Agent.  Any failure by Buyer to
make the Base Building Deposit and the HVAC and LEED Related Changes Estimates
in accordance with the terms of this Agreement shall constitute an automatic
termination of this Agreement by Buyer. 
Upon any such automatic termination, all further rights and obligations
of the parties under this Agreement shall terminate, except those obligations
which expressly survive termination.

 

(b)           Applicable
Terms.  The Base Building Deposit
shall be paid to the account (the “Escrow Account”) designated in
writing by Escrow Agent by wire transfer of immediately available funds.  The Base Building Deposit shall be held in an
interest-bearing account at a financial institution reasonably acceptable to
Buyer.  Except as expressly otherwise set
forth herein, the Base Building Deposit shall be non-refundable to Buyer, shall
be applied against the Purchase Price on the Closing Date and shall otherwise
be held and delivered by Escrow Agent in accordance with the provisions of Article 14.  The HVAC and LEED Related Changes Estimates
shall be paid, held and disbursed in accordance with the Buyer Directed Change
Order Escrow Account Agreement.

 

3.2          Cash at Closing.  On the Closing Date, Buyer shall deposit with
Escrow Agent by wire transfer of immediately available funds as more
particularly set forth in Section 9.2, an amount equal to the
difference between the Purchase Price and the Base Building Deposit (including
the interest earned thereon) as prorated and adjusted as set forth in Article 8
or as otherwise provided under this Agreement.

 

8

 

ARTICLE 4 - TITLE MATTERS

 

4.1          Title to Real
Property.  Buyer has obtained a title
insurance commitment issued by the Title Company (File No.: 08-0073) with
respect to the Real Property a copy of which is attached as Exhibit O
hereto (the “Title Commitment”). 
Buyer hereby waives any objection to any of the title exceptions shown
in the Title Commitment and acknowledges that the state of title reflected in
the Title Commitment is acceptable to Buyer in all respects, except that Seller
shall be required to discharge the Existing Mortgage specified on Exhibit P
attached hereto.

 

4.2          No New Exceptions.  From and after the date hereof, Seller shall
not execute any deed, easement, restriction, covenant or other matter affecting
title to the Property unless (i) such matter is required for the future
operation of the Property for its intended purpose and Buyer has received a
copy thereof and has approved the same in writing, which approval Buyer shall
not unreasonably withhold, condition or delay, or (ii) such matter will be
satisfied, discharged or otherwise released as a matter affecting title to the
Real Property on or prior to the Closing Date at no cost to Buyer.

 

4.3          Permitted
Exceptions.  “Permitted Exceptions”
shall mean and include all of the following:  (a) applicable zoning and
building ordinances and land use regulations, (b) all
matters set forth on Exhibit O (except those matters specified in Section 4.1),
(c) the lien of real estate taxes and
assessments (subject to Section 8.1(b)) not yet due and payable, (d) matters shown on the As-Built Survey, other than
encroachments of (i) any portion of the Shell Building Improvements over
the boundary lines of the Real Property or (ii) any portion of the
Building into any set backs affecting the Real Property, (e) any
exceptions caused by any Buyer’s Representative,  and (f) any matters approved by Buyer under Subsection
4.2 hereof.

 

(a)          In
addition to the Existing Mortgage, Seller hereby agrees that it will at or
before Closing remove or discharge as an exception to title (i) all
mechanic’s liens relating to labor or services performed or material furnished
or delivered in connection with the Real Property, (ii) any lien or other
title exception created or consented to by Seller that is not a Permitted
Exception, and (iii) any lien or other title exception that is not a
Permitted Exception if Seller can remove the same by the payment of a sum of
money not in excess of $250,000.  In the
event that Seller proposes to deliver an indemnity or other similar agreement
to Title Company in order to permit Title Company to insure over any title
exception, Seller shall inform Buyer of the nature of such title exception and
the terms of any such indemnity or other similar agreement and the same shall
be subject to Buyer’s prior written consent, which shall not be unreasonably
withheld, conditioned or delayed; provided, however, that with respect to mechanic’s
lien claims, no such indemnity shall be permitted and Seller shall be required
to cause the mechanics’ lien to be removed or to post a bond against which any
such lien claim must be asserted (as opposed to title to the Property) from and
after the Closing.

 

ARTICLE 5 - BUYER’S DUE DILIGENCE/CONDITION
OF THE PROPERTY

 

5.1          Buyer’s Due
Diligence.  As of the date hereof,
Buyer has conducted the Due Diligence it deems necessary or advisable in
connection with entering into this Agreement, and Buyer has approved the
condition of the Real Property as of the date hereof.

 

9

 

5.2          Access to the
Property.  Seller will continue to
allow Buyer and Buyer’s Representatives access to the Property upon reasonable
prior notice and at reasonable times, provided (a) such access does not
interfere with the construction of the Shell Building Improvements or operation
of the Property; (b) Buyer shall provide Seller not less than twenty-four
(24) hours advance notice to Seller of any Buyer’s Representatives intent to
visit the Property and any Buyer’s Representative shall coordinate with Seller
prior to and during each visit to the Property by any Buyer’s Representatives
such that representatives of Seller may accompany Buyer’s Representatives
during each such visit; and (c) Buyer’s Representatives shall not be
permitted to perform any invasive testing or other physical evaluation of the
Property.  Prior to such time as any of
Buyer’s Representatives enter the Property, Buyer shall (i) obtain a
policy of general liability insurance which insures Buyer’s Representatives
with liability insurance limits of not less than $1,000,000 combined single
limit for personal injury and property damage and names Seller as additional
insured, and (ii) provide Seller with a certificate of insurance
evidencing that Buyer has obtained the aforementioned policy of insurance.  Buyer’s Representatives shall not contact any
governmental official or representative regarding the Property without Seller’s
prior written consent thereto, which consent shall not be unreasonably withheld,
conditioned or delayed, and, if Seller’s consent to any such governmental
contact is obtained by Buyer, Seller shall be entitled to receive at least two (2) days
prior notice (which may be oral) of the intended contact and to have a
representative present when any Buyer’s Representatives has any such contact
with any governmental official or representative; provided, however, that
following the date which is twenty (20) days after the issuance of the building
permit, the foregoing restriction shall pertain only to matters related to the
Shell Building Improvements, the Fit Out Improvements and the construction
thereof, and shall not pertain to matters related to Buyer’s use of the
Property or the operations of Buyer proposed to be located therein (including,
without limitation, matters such as economic incentives or tax relief that
might be available to Buyer).

 

5.3          Waiver and Release.  Buyer, for itself and all of the other Buyer’s
Representatives, hereby waives and releases Seller and each of the Seller
Parties from all claims resulting directly or indirectly from access to,
entrance upon, or inspection of the Property by Buyer’s Representatives except
to the extent caused by the gross negligence, fraud or willful misconduct of
the Seller Parties.  The provisions of
this Section 5.3 shall survive any termination of this Agreement.

 

5.4          Buyer’s Indemnity.  Buyer hereby agrees to indemnify, defend, and
hold Seller and each of the other Seller Parties free and harmless from and
against any and all actual losses, costs, damages (excluding consequential or
punitive damages), claims, liabilities, expenses, demands or obligations, of
any kind or nature whatsoever (including reasonable attorneys’ fees, expenses
and disbursements) arising out of or resulting from the entry on the Property
and/or any investigations or other activities conducted thereon in connection
with Buyer’s Due Diligence by any Buyer’s Representatives; provided, however,
that the foregoing obligations shall not apply to the mere discovery of a
pre-existing environmental or physical condition at the Property.  The provisions of this section shall survive
the Closing (and not be merged therein) or any earlier termination of this
Agreement.

 

5.5          Confidentiality.  Buyer acknowledges that any material
information heretofore or hereafter furnished to Buyer with respect to the
Property is intended to be confidential.

 

10

 

Accordingly, Buyer shall make reasonable efforts to hold, and shall
cause each of its representatives to make reasonable efforts to hold, in
confidence, and shall not intentionally disclose, and shall prohibit each of
its representatives from intentionally disclosing, to any other person (other
than any such representative) without the prior written consent of Seller, any
of the material information in respect of the Property delivered to or for the
benefit of Buyer whether by any Buyer’s Representatives or by any of the Seller
Parties, including, but not limited to, any information heretofore or hereafter
obtained by any Buyer’s Representatives in connection with its Due
Diligence.  In the event this Agreement
is terminated, Buyer shall promptly return to Seller all copies of Documents
furnished by any of the Seller Parties to Buyer or any of Buyer’s
Representatives without retaining any copy thereof or extract therefrom.  Notwithstanding anything to the contrary
hereinabove set forth, Buyer may disclose such information (i) on
a need-to-know basis to its employees, prospective equity members, members of
professional firms serving it or potential lenders, (ii) as
any governmental agency may require in order to comply with applicable Laws or
court order or as may be required by any legal process, and (iii) to the
extent that such information is a matter of public record or otherwise commonly
available to the public.  The provisions
of this Section 5.5 shall survive any termination of this Agreement (but
not the Closing).

 

5.6          Subsequent Release
of Hazardous Materials.  If, after
the date hereof, there is a release of Hazardous Materials (as defined below)
on any portion of the Real Property or the Shell Building Improvements, Seller
shall notify Buyer in writing of the nature and extent thereof promptly after
obtaining knowledge thereof.  If such
release was caused by any act or omission of Seller, Contractor or any
subcontractor or supplier engaged in construction of the Shell Building
Improvements, prior to the Closing Seller shall remediate or cause to be
remediated, such release in accordance with and as required by applicable Law.  If such release was caused by a third-party
not involved with the construction of the Shell Building Improvements, Seller
shall remediate, or cause to be remediated, such release in accordance with and
as required by applicable Law, but Seller shall not be required to spend more
than $250,000 in connection with such remediation effort.  Notwithstanding anything to the contrary
contained herein provided any such release was not caused by the gross
negligence or willful misconduct of Seller, if necessary, the Outside
Completion Date shall be extended a reasonable period of time in order for
Seller to remediate any such release.  As
used herein, “Hazardous Materials” shall mean any material or substance
that is defined or regulated as a hazardous or toxic material, substance or
waste, or as a pollutant or contaminant under any federal, state or local law,
ordinance or regulation pertaining to the environment, pollution or public or
workplace health or safety, or materials or substances which are regulated by
any such law, ordinance or regulation including without limitation, asbestos
and polychlorinated biphenyls.

 

ARTICLE 6 - CONSTRUCTION OF SHELL BUILDING
IMPROVEMENTS

 

6.1          Construction by
Seller.  Seller and Buyer acknowledge
that Seller has commenced construction of the Shell Building Improvements prior
to the date of this Agreement.  At all
times from and after the date hereof, Seller shall use commercially reasonable
efforts to cause the construction of the Shell Building Improvements
substantially in accordance with the Construction Plans and in accordance with
the requirements of the Permits and applicable Laws.

 

11

 

(a)           Target
Completion Date.  Seller shall use
commercially reasonable efforts to achieve Substantial Completion of the Shell
Building Improvements by May 1, 2009 (the “Target Completion Date”).  Seller shall inform Buyer from time to time
of any revisions to the anticipated date of Substantial Completion of the Shell
Building Improvements.

 

(b)           Penalty
Date.  If Substantial Completion of
the Shell Building Improvements has not been achieved by Seller by July 1,
2009, subject to a day-for-day extension for Buyer Delay and Force Majeure,
Seller shall reimburse Buyer for all reasonably documented actual,
out-of-pocket expenses incurred by Buyer to maintain an alternative office
location for Buyer’s employees to work (i.e., rent or holdover rent, as the
case may be), for the period of any such delay, such amount in no event to
exceed $1,500,000 (the “Penalty Amount”)

 

(c)           Outside
Completion Date.  If Substantial
Completion of the Shell Building Improvements has not been satisfied by November 15,
2009 (the “Outside Completion Date”), subject to a day-for-day extension
for Buyer Delay and Force Majeure (provided that the Outside Completion Date
shall not be extended for more than an total of forty-five (45) days as a
result of events of Force Majeure), then Buyer shall have the rights provided
for in Sections 13.2 or 13.3, as applicable.

 

6.2          Construction
Period Matters.

 

(a)           Insurance.  Seller has obtained and shall maintain in
full force and effect for the entire period prior to the Closing (or the
earlier termination of this Agreement) the policies of “all-risk” and other
insurance specified on the certificate of insurance attached hereto as Exhibit U.

 

(b)           Permits
and Approvals.  Seller shall obtain,
maintain in full force and effect and substantially comply with the
requirements of all of the Permits required for the construction of the Shell
Building Improvements in accordance with the Construction Plans.  Seller shall, promptly upon issuance thereof,
deliver to Buyer a true, correct and complete copy of the New Special Permit
and the foundation permit and the building permit for the Shell Building Improvements.  Copies of any other material Permit or other
governmental approval issued or obtained after the date hereof relating to the
construction of the Shell Building Improvements shall be available at the Property
for review.

 

(c)           New
Contracts.  Seller shall not take any
action to enter into, amend, terminate, renew or otherwise alter, any Contract
that will be binding upon Buyer or the Property after Closing, in each case
without the consent of Buyer, which consent may be given or withheld in Buyer’s
sole and absolute discretion.  Seller
shall not take any action to enter into any lease or occupancy agreement
affecting the Property.  Buyer
acknowledges that Seller has engaged NSTAR to provide a transformer and
electrical service to the Property.  In addition,
to the extent that alternative rate schedules are available, Buyer shall
determine the utility rate schedule applicable to the Property and Seller shall
not commit to any rate schedule that would apply to the Property after the
Closing without Buyer’s prior approval. 
Any rebates payable by any utility provider or otherwise shall be
payable to Buyer (or if paid prior to the Closing, Buyer shall receive a credit
in the amount thereof at the Closing).

 

12

 

(d)           Construction
Consultant.  Seller shall keep Buyer
informed as to the status and progress of construction of the Shell Building
Improvements and any changes in the anticipated completion of construction
thereof.  For such purpose, Seller and
Buyer’s Construction Consultant shall meet periodically (and such meetings
shall include Contractor, Architect and other persons as may reasonably
requested by Construction Consultant), and Seller and the Construction
Consultant shall agree upon a schedule for such meetings two (2) weeks
prior to each such meeting.  In addition,
the Construction Consultant shall be informed reasonably in advance of Seller’s
periodic construction meetings with Contractor and/or Architect and shall be
entitled to attend such construction meetings as an observer.  Seller shall provide Construction Consultant
with twenty-four (24) hours prior notice of any change in the date, time or
location of scheduled construction meetings. 
In the case of any construction meeting called on an emergency basis,
Seller shall provide Construction Consultant with as much notice as is given to
all other participants of the emergency construction meeting.  Construction Consultant shall also be
permitted to have access to the Real Property and the Shell Building
Improvements to observe the construction thereof and to the As-Built Documents,
shop drawings, architectural records, building permits and permit inspection
records, materials samples, engineering, inspection and testing reports, and
other tests and studies performed in connection with the construction of the
Shell Building Improvements (and Construction Consultant shall have the right
to be present at Building Department inspections and at  on-site tests of the curtain wall and other
major elements of the Shell Building Improvements); provided, however, that
Construction Consultant’s activities shall be solely for the purpose of
examination and inspection, and in no event shall Construction Consultant be
entitled to require that any construction work be demolished or otherwise
modified for Construction Consultant’s examination or inspection.  As between Seller and Buyer, Seller shall
have control over all construction means, methods, techniques, sequences and
procedures, and for coordinating all portions of construction of the Shell
Building Improvements in accordance with the terms of this Agreement.

 

All construction
monitoring and inspection costs for the benefit of Buyer shall be paid by
Buyer.

 

(e)           As-Built
Documents.  Seller shall maintain at
the site one copy of the drawings, specifications, addenda, change orders,
change directives and other modifications, in good order and marked currently
to record field changes and selections made during construction with respect to
the Shell Building Improvements (the “As-Built Documents”).

 

6.3          Seller Change
Orders.  Seller may, without the
consent of Buyer, enter into any Change Order (per material or equipment to be
substituted, as applicable, and not in the aggregate) that does not exceed the
sum of $25,000 and satisfies all of the following conditions and requirements:

 

(a)           the
change shall not, in Seller’s reasonable determination, involve any material
substitution or elimination of materials, or if it does involve material
substitution, the substituted materials are of equal or superior quality,
durability and appearance to the materials which are being replaced, and the
substitution shall not materially change the appearance or use of the Property;

 

13

 

(b)           the
change shall not materially diminish the value or utility of the Property or
the mechanical, structural or architectural integrity thereof;

 

(c)           the
change shall not require any material change or modification to or amendment of
any material Permit; and

 

(d)           Seller
shall give notice to Construction Consultant and Buyer of the change within a
reasonable time after the change is effected; provided, however, inadvertent
failure to give the notice shall not constitute a default hereunder if such
change complies with subsections (a) through (c) above.

 

Except as
otherwise provided for above, Seller shall not enter into Change Order without
first providing Buyer with prior written notice of the proposed Change Order
and obtaining Buyer’s approval thereof, which Buyer may approve or disapprove
in its reasonable discretion; provided, however, that if Buyer does not approve
or disapprove of such proposed Change Order within three (3) business days
following the date of its receipt of Seller’s notice, Seller’s proposed Change
Order shall be deemed to have been approved by Buyer.

 

6.4          Completion of
Construction.

 

(a)           Substantial
Completion.  As used in this
Agreement, the terms “Substantial Completion,” “Substantially
Complete,” “Substantially Completed” or derivations thereof used
with respect to completion of construction of the Shell Building Improvements,
shall mean that, except for Punchlist Items as determined in accordance with Section 6.4(c) (provided,
however that the Shell Building Improvements shall be deemed not to be
Substantially Complete if the cost to complete Punchlist Items exceeds
$250,000), all Shell Building Improvements have been completed in substantial
accordance with (A) the Construction Plans and Buyer Directed Change
Orders, if any, and (B) Buyer has received an A.I.A. Form G704
executed by Architect, Seller and Contractor. 
Any dispute between Buyer and Seller regarding Substantial Completion of
the Shell Building Improvements or the date the same is achieved shall be
submitted by Buyer and Seller to the Independent Architect for
determination.  The determination of the
Independent Architect shall be binding upon Seller and Buyer.  Any costs associated with the Independent
Architect’s determination of the date of substantial completion shall be shared
equally by Buyer and Seller.

 

(b)           Substantial
Completion Notice.  Seller shall
provide Buyer with written notice when Seller believes that Substantial
Completion of the Shell Building Improvements has been achieved (the “Substantial
Completion Notice”).

 

(c)           Inspection
and Punchlist.  Within two (2) business
days after delivery by Seller of the Substantial Completion Notice, a
representative of Seller and Construction Consultant together with Architect
and Contractor shall inspect the Shell Building Improvements.  Upon completion of such inspection, Architect
shall prepare the list of Punchlist Items and the cost to complete such
Punchlist Items and shall deliver a copy thereof to Seller and Buyer.  The Punchlist Items and the cost to complete
such Punchlist Items shall be subject to review and approval by Buyer and
Seller.  Any dispute between Seller and
Buyer with respect to the list of Punchlist Items or the cost to complete any
Punchlist Item shall be determined by the 

 

14

 

Independent Architect, whose determination shall be
binding upon Seller and Buyer.  The
agreed upon or determined Punchlist Items are referred to herein as the “Final
Punchlist”.

 

6.5          Completion
Requirements.  The following constitute
the requirements that must be satisfied by Seller in connection with Seller’s
obligation to complete construction of the Shell Building Improvements (the “Completion
Requirements”).

 

(a)           Certificate
of Substantial Completion.  Seller
has delivered to Buyer the A.I.A. Form G704 Certificate of Substantial
Completion duly executed by Architect, Seller and Contractor, as provided for
in Section 6.4(a).

 

(b)           As-Built
Survey.  Seller shall deliver to
Buyer a current as-built survey of the Property (the “As-Built Survey”)
prepared by a registered land surveyor, containing a certification to Buyer and
Title Company in the form of Exhibit I attached hereto.

 

(c)           I&I
Covenant.  Seller shall use
commercially reasonable efforts to deliver to Buyer reasonably satisfactory
evidence that Seller has satisfied the requirements for the issuance of a
certificate of occupancy as more particularly set forth in that certain
Covenant and Agreement To Provide Inflow & Infiltration (I&I)
Sewer Mitigation to the City of Waltham recorded in Book 50365 at Page 375
in the Middlesex County Registry of Deeds (the “I&I Covenant”); and
in the event Seller is unable to deliver such evidence the terms of Section 6.7(b) shall
apply (Seller’s delivery of such evidence shall not be a condition precedent to
Closing) and Seller shall provide a list of projects approved by the City of
Waltham that once completed will satisfy Seller’s obligations under the I&I
Covenant.

 

(d)           Satisfaction
of Requirements.  Seller has
delivered to Buyer reasonably satisfactory evidence that all payments required
to be made and all other conditions of approval for development of the Real
Property under the Permits, the Construction Plans, the Documents and the
Property Documents have been made or satisfied.

 

(e)           Site
Conditions.  The Shell Building
Improvements shall be broom clean and the exterior and interior portions shall
be free of trash, rubbish and construction materials, all windows (exterior and
interior) shall be washed, and Contractor shall have removed all construction
equipment from the site (except for equipment required for completion of the
Final Punchlist).

 

6.6           Seller’s
Covenants Regarding Certain Matters. 
Prior to the Closing, Seller shall use good faith efforts (a) to
have Hickory Drive accepted by the City of Waltham as a public street, and (b) provided
Buyer has not accessed the Property to begin construction of the Fit-Out
Improvements, to secure a temporary certificate of occupancy if, and to the
extent, the same may be issued by the applicable Governmental Authority upon
Substantial Completion of the Shell Building Improvements (satisfaction of (a) and/or
(b) set forth in this Section 6.6 shall not be a condition precedent
to Closing).

 

6.7           Seller’s Post
Closing Requirements.

 

(a)           Post-Closing
Deliveries.  After the Closing,
Seller shall be responsible for the following items (collectively, “Post-Closing
Requirements”):

 

15

 

(i)           Seller
will provide reasonably satisfactory evidence that all components of the
building systems constituting part of the Shell Building Improvements are
complete and operational in accordance with their respective design
specifications;

 

(ii)          Seller
will cause the Contractor to provide Buyer with a complete set of As-Built
Documents in hard copy and electronic format; and

 

(iii)         Seller
will provide Buyer with two (2) complete sets of operation and maintenance
manuals, including applicable warranties, for all components of the Shell
Building Improvements.

 

Buyer and Seller agree
that the sum of Two Hundred Thousand and 00/100 Dollars ($200,000) shall be
held back from the Purchase Price (the “Post-Closing Escrowed Funds”)
and will not be paid to Seller at Closing. 
The Escrow Agent shall hold the Post-Closing Escrowed Funds pursuant to
that certain “Post-Closing Deliverables Escrow Agreement” in
substantially the form attached hereto as Exhibit R.  The provisions of this Section 6.7(a) shall
survive the Closing (and not be merged therein).

 

(b)           Completion
of Approved I&I Obligations.  In
the event that Seller has not satisfied the requirements of the I&I
Covenant for the issuance of a certificate of occupancy prior to the Closing,
Buyer and Seller agree that an amount equal to four hundred percent (400%)  of the cost of the remaining work (the “I&I
Escrowed Amount”) to be completed to satisfy the requirements for the
issuance of the certificate of occupancy, as more particularly set forth in the
I&I Covenant (the “Remaining Work”) shall be held back from the
Purchase Price and will not be paid to Seller at Closing.  The I&I Escrowed Amount shall be
deposited with the Post-Closing Escrowed Funds and held and disbursed in
accordance with the Post Closing Deliverables Escrow Agreement.  Following the Closing, Seller shall complete the
Remaining Work as promptly as reasonably possible; provided, however, that if
the Remaining Work has not been completed within 30 days after the Closing, the
I&I Escrowed Amount shall be released to Buyer and Seller shall be relieved
of the obligation to complete the Remaining Work.  The provisions of this Section 6.7(b) shall
survive the Closing (and not be merged therein).

 

(c)           Completion
of Final Punchlist.  Seller shall use
commercially reasonable efforts to complete the Final Punchlist within sixty
(60) days following Closing, provided, however, that Seller shall have such
additional time as may reasonably be required with diligent efforts to complete
items on the Final Punchlist of a seasonal nature which cannot or should not be
performed until a later date or to obtain any particular fixture or piece of
equipment that cannot reasonably be obtained within said sixty (60) day
period.  Seller shall cause the Punchlist
Items to be completed in a good and workmanlike manner in substantial
accordance with the Construction Plans and in accordance with all applicable
Property Documents and Laws, and Seller shall coordinate the timing and
execution of such work so as to minimize any interference with any ongoing
construction of the Fit-Out Improvements. 
Buyer and Seller agree that an amount equal to one hundred fifty percent
(150%) of the amount necessary to complete the Final Punchlist (the “Punchlist
Funds”) shall be held back from the Purchase Price and will not be paid to
Seller at Closing.  The Escrow Agent
shall hold and deliver the Punchlist Funds in accordance with that certain “Punchlist
Escrow Agreement” in substantially the form attached hereto as 

 

16

 

Exhibit S (the “Punchlist
Escrow Agreement”).  The provisions
of this Section 6.7(c) shall survive the Closing (and not be merged
therein).

 

(d)           Post
Closing Assistance.  Seller shall,
for a period of one (1) year following the Closing, assist Buyer in all
reasonable respects, provided any such assistance is at no cost or liability to
Seller, in pursuing any available remedies against the design and/or
construction professionals engaged in connection with the construction of the
Shell Building Improvements.  The provisions
of this Section 6.7(d) shall survive the Closing (and not be merged
therein).

 

6.8          Early Access for
Fit-Out Improvements.  Buyer shall have the right to request access to the
Property prior to the Closing from Seller in order to begin construction of the
Fit-Out Improvements and, provided that (a) in Seller’s reasonable
judgment any such Fit-Out Improvements Work shall not interfere with or delay
the substantial completion of the Shell Building Improvements and satisfaction
of the Completion Requirements set forth in Section 6.5 hereof, and (b) Buyer
and Seller agree prior to the commencement of any Fit-Out Improvements Work (i) on
a firm Closing Date based on a then projected substantial completion date
provided by Contractor and reasonably agreed to by the Construction Consultant,
and (ii) on modifications to the A.I.A. G704 Certificate of Substantial
Completion to be issued pursuant to Section 6.5(a) and the
satisfaction of the Completion Requirements based on the Fit-Out Improvements
Work and its impact on Seller’s ability to comply with the obligations set
forth in this Agreement, Seller shall agree to provide Buyer and Contractor,
engaged on behalf of Buyer for construction of the Fit-Out Improvements, access
to the Property prior to the Closing to begin Fit-Out Improvement Work.

 

6.9          Referral of
Disputes to Independent Architect.

 

(a)           Generally.  Seller and Buyer have agreed to utilize the
Independent Architect for the resolution of disputes that may arise with
respect to the determinations regarding Substantial Completion and Punchlist
Items.

 

(b)           Referral
Process.  If, after good faith
negotiations for a reasonable period of time under the circumstances (taking
into account the nature of the dispute), but in any event not more than five (5) business
days, between Seller and Buyer as to any matter that is subject to resolution
by the Independent Architect, Seller and Buyer are unable to come to a mutual
agreement regarding the same, either party may require that the matter be
referred to and resolved by the Independent Architect.  All involved participants in the disputed
matter, including to the extent applicable, Seller, Buyer, the Architect,
and/or the Contractor, shall submit to the Independent Architect in writing
within two (2) business days a description in reasonable detail of the
disputed matter and such participant’s proposed resolution thereof.  Independent Architect shall be entitled to
consult with any consultant(s) that Independent Architect determines
necessary and with all or any of Seller, Buyer, the Architect, and/or the
Contractor, in order that Independent Architect can reach a final determination
as to the disputed matter within five (5) business days after receipt of
the above referenced information.  The
determination by Independent Architect shall be in writing and shall be binding
on the parties.

 

17

 

(c)           Costs.  Any costs incurred in connection with the
resolution process, including, without limitation, payment of fees to
arbitrator and any other consultant arbitrator engages to assist in resolving
the dispute, shall be borne equally by Seller and Buyer.

 

ARTICLE 7 - BUYER CHANGE ORDERS

 

7.1          Proposed Change
Orders.

 

(a)           HVAC
Related Changes.  As of the date
hereof, Buyer has identified certain changes to the HVAC system specified in
the Construction Plans for the Shell Building Improvements (the “HVAC
Related Changes”), which changes are identified on Exhibit W-1
attached hereto.  Seller and Buyer have
begun to evaluate and price such HVAC Related Changes, and as of the date
hereof Seller and Buyer have agreed upon an estimate of the cost for such HVAC
Related Changes in the amount specified in Exhibit W-1 (the “HVAC
Related Changes Estimate”), which estimated amount shall be deposited by
Buyer in the Buyer Change Order Escrow Account at the time Buyer makes the Base
Building Deposit as provided for in Section 3.1(a).  Prior to the date hereof, Buyer has notified
Seller of certain matters to be clarified with respect to the HVAC Related
Changes, and Buyer has authorized Seller to commence redesign of the HVAC
system (the “HVAC Redesign Notification”).  Together with the HVAC Redesign Notification,
Buyer approved Change Order Request ADOBE – 001 rev 5/2/08, a copy of which is
attached hereto as Exhibit W-2 (the “HVAC Initial Change Order”).  Based on the HVAC Redesign Notification,
Seller shall proceed with the redesign of the HVAC system and obtain Final
Pricing for the HVAC Related Changes subject to Buyer’s Final Approval, in
accordance with the terms of Sections 7.3 - 7.5.

 

(b)           LEED
Related Changes.  Buyer is
contemplating the evaluation of and possible changes to the Shell Building
Improvements for purposes of obtaining LEED certification for the Shell
Building Improvements (the “LEED Related Changes”).  The scope of such evaluation and possible
changes is identified on Exhibit W - 3 (the “LEED Related
Changes Estimate”), and the pricing and authorization to proceed with such
evaluation is set forth on Change Order Request ADOBE – 002 rev 5/2/08, a copy
of which is attached as Exhibit W - 4 (the “LEED Initial Change
Order”).  Prior to the date hereof,
Buyer has notified Seller of Buyer’s approval of the LEED Related Changes
Estimate and LEED Initial Change Order, including possible items to be included
in the LEED evaluation of the Shell Building Improvements (the “LEED Related
Changes Notification”); and the amount of the LEED Related Changes Estimate
shall be deposited by Buyer in the Buyer Change Order Escrow Account at the
time Buyer makes the Base Building Deposit as provided for in Section 3.1(a).  Based on the LEED Related Changes
Notification, Seller shall instruct Architect to proceed with a design
submission to the U.S. Green Building Council (“USGBC”); and Buyer and
Seller shall work diligently with Architect to identify and evaluate various
LEED Related Changes to be included in such submission.  Change orders for LEED Related Changes shall
be prepared following such USGBC submission in accordance with the terms of
Sections 7.3 - 7.5.

 

(c)           Potential
Change Orders Affecting Slab Work. 
Buyer has identified certain aspects of the Shell Building Improvements
that Buyer is likely to want to modify, which modifications would affect the
sizing and locations for underground plumbing lines and/or otherwise affect the
construction of the slab portions of the Shell Building Improvements, such 

 

18

 

slab related changes pertain to possible changes to the cafeteria and
fitness center portions of the Shell Building Improvements, the sizing and
location of the conduit for data and security lines, the mudset in the entry
lobby area, the installation of a vapor barrier beneath the slab and any other
modifications that may impact the slab work (collectively, “Slab Related
Changes”).  Such Slab Related Changes
proposed by Buyer shall be subject to Seller’s approval, which approval shall
not be unreasonably withheld, conditioned or delayed.  On or before August 1, 2008, Buyer shall
provide to Seller documentation and information sufficient for the Architect,
Contractor, any engineer and any manufacturer, as applicable to the Slab
Related Changes, to provide a Cost Estimate for any Slab Related Changes
proposed by Buyer (the “Slab Package”). 
Seller shall use commercially reasonable efforts to provide Buyer with a
Cost Estimate to complete the Slab Related Changes within seven (7) days
after Seller’s receipt of the Slab Package, provided that any third party
involved in determining the Cost Estimate responds to Seller within such seven
day period.  In the event Buyer does not
provide Seller the Slab Package on or before August 1, 2008, Seller shall
have no obligation to incorporate any Slab Related Changes and Seller shall
proceed with construction of the slab in accordance with the Construction
Plans.

 

(d)           Finish
Work.  Buyer has indicated that it
may want to change some or all of the finishes and fixtures in the entry lobby,
the elevator lobbies and the restrooms (collectively, the “Finishes”).  In the event Buyer determines to change some
or all of the Finishes (the “Finish Changes”), Buyer shall notify Seller
on or before June 28, 2008 (the “Finishes Notice”), of the Finishes
that Buyer elects to accept and those that Buyer elects either to eliminate or
to specify a substitute Finish item therefor (which substitute Finish items
shall be subject to Seller’s approval, which approval shall not be unreasonably
withheld, conditioned or delayed). 
Seller shall install as part of the Shell Building Improvements those
Finish items that Buyer accepts; and with respect to those Finish items that
Buyer elects to eliminate (or with respect to which Buyer has specified a
substitution but thereafter Buyer does not approve the Cost Estimate or Final
Pricing therefor), Seller shall issue a Change Order removing such Finish items
from the Construction Plans and Buyer shall receive a credit against the
Purchase Price in the amount of the cost savings attributable to such Finish
items eliminated from the Construction Plans. 
With respect to Finish items for which Buyer proposes a substitution and
Seller has approved such substitution, Buyer shall include with the Finishes
Notice documentation and information sufficient for the Architect, Contractor,
any engineer and any manufacturer, as applicable to such Finish Changes, to
provide a Cost Estimate for such Finish Changes (the “Changed Finishes
Package”).  Seller shall use
commercially reasonable efforts to provide Buyer with a Cost Estimate for the
Finish Changes specified in the Changed Finishes Package within seven (7) days
after Seller’s receipt of the Changed Finishes Package, provided that any third
party involved in determining the Cost Estimate responds to Seller within such
seven day period.  In the event Buyer
does not provide the Finishes Notice to Seller on or before June 28, 2008,
Seller shall proceed with construction of all of the Finishes in accordance
with the Construction Plans.

 

(e)           Other
Buyer Change Orders.  In addition to
HVAC Related Changes, LEED Related Changes, Slab Related Changes and Finish
Changes, any other proposed modifications to the Construction Plans (the “Other
Buyer Change Orders”) shall be subject to Seller’s reasonable approval and
such changes shall not in the reasonable judgment of Seller: (i) have a
material adverse effect on the value or utility of the Property, (ii) require
any modification or amendment to the zoning of the Real Property, the New
Special Permit, the foundation permit 

 

19

 

or the building permit, (iii) conflict with any applicable Law, (iv) impair
or substantially modify the foundation, structure of shell or structural
integrity of the Shell Building Improvements, (v) create any significant
construction complication, as reasonably determined by Seller, or (vi) cause
or, in Seller’s reasonable judgment are likely to cause, any delay in
substantial completion of the Shell Building Improvements.  If Buyer proposes any Other Buyer Change
Order, Buyer shall submit a notice to Seller which includes a detailed and
clear description of the scope of the proposed Other Buyer Change Order, which
description shall include the items that are being replaced and/or work that is
being modified, a description of the proposed new design, and either plans
therefor or sufficient information to permit the Architect, Contractor, any
engineer and any manufacturer, as applicable with respect to the proposed Other
Buyer Change Order, to provide a Cost Estimate for the proposed Other Buyer
Change Order (each, a “Change Order Package”).  Seller shall use commercially reasonable
efforts to provide Buyer with a Cost Estimate within seven (7) days after
Seller’s receipt of a Change Order Package, provided that any third party
involved in determining the Cost Estimate responds to Seller within such
seven-day period.  Buyer may from time to
time request Other Buyer Change Orders; provided, however, notwithstanding
anything to the contrary contained herein, Seller shall have no obligation to
implement any Other Buyer Change Orders submitted to Seller after August 1,
2008, provided, however, Seller shall use good faith efforts to address Buyer’s
concerns with respect to any Other Buyer Change Orders submitted after August 1,
2008.

 

(f)            For
purposes of Sections 7.2 - 7.5 hereof, the term “Buyer Directed Change Order”
shall mean each of the HVAC Related Changes, the LEED Related Changes, the Slab
Related Changes, the Finish Changes and the Other Buyer Change Orders, as
applicable.

 

7.2          Seller’s Approval;
Change Order Costs.

 

(a)           Seller
shall have the right to review and approve Buyer Directed Change Orders
(provided, however, that the HVAC Related Changes and LEED Related Changes have
been approved by Seller prior to the date hereof).  If Seller disapproves any proposed Buyer
Directed Change Order or any aspect thereof, Seller shall notify Buyer and
provide detailed, specific comments to Buyer of the reasons for such
disapproval.  Simultaneous with issuing
each Cost Estimate, Seller shall provide a good faith estimate of the
implications of the proposed Buyer Directed Change Order, if any, on the
schedule for construction of the Shell Building Improvements and whether Seller
reasonably believes that the proposed Buyer Directed Change Order may result in
Buyer Delay, and if so, the estimated length of the Buyer Delay.

 

(b)           All
third-party, out-of-pocket costs reasonably incurred by Seller in connection
with the any Buyer Directed Change Order shall be paid by Buyer, including,
without limitation, costs and expenses related to architecture and engineering
and other consultants, whether or not the Buyer Directed Change Order is
ultimately approved by Seller or authorized by Buyer for construction.  With respect to any Buyer Directed Change
Order not authorized by Buyer or deemed disapproved by Buyer, Buyer shall pay
such costs to Seller upon five (5) business days notice from Seller to
Buyer which notice shall include reasonable evidence of the calculation of such
costs.

 

7.3          Cost Estimate;
Final Pricing.  Seller’s cost
estimate (“Cost Estimate”) for a Buyer Directed Change Order shall consist of a
reasonably detailed estimate of the costs that will 

 

20

 

be incurred to implement
a proposed Buyer Directed Change Order. 
Buyer shall approve or disapprove in writing any Cost Estimate received
from Seller with five (5) days after Buyer’s receipt of such Cost
Estimate.  If the Cost Estimate is not
acceptable to Buyer, Buyer may modify the proposed Buyer Directed Change Order
to achieve an acceptable cost by submitting a revised request to Seller;
provided, however, any such revised request must be delivered to Seller
together with the timely written disapproval of the Cost Estimate.  Following Buyer’s approval of the Cost
Estimate, Seller will provide Buyer with progress and final drawings for a
proposed Buyer Directed Change Order for Buyer’s review and approval (unless
Seller and Buyer have agreed that the same are not reasonably necessary), and
Buyer shall approve or disapprove the progress and final drawings within five (5) days
of receipt of the same.  In the event
that Buyer disapproves of any progress and/or final drawings, Buyer shall state
in detail Buyer’s basis for such disapproval. 
Failure of Buyer to timely respond shall be deemed Buyer’s disapproval
of such progress and/or final drawings and Seller shall proceed with
construction in accordance with the Construction Plans.  Following Buyer’s approval of the final
drawings for a Buyer Directed Change Order, Seller shall provide Buyer with its
determination of Buyer Delay attributable to the proposed Buyer Directed Change
Order and documentation of the final pricing of the proposed Buyer Directed
Change Order (“Final Pricing”), which pricing shall be “open-book” and
include sufficient detail as Buyer may reasonably request to enable Buyer to
review the Final Pricing.  Seller shall
use commercially reasonable efforts to achieve competitive pricing for all
Buyer Directed Change Orders, including competitive bidding where reasonably
practicable, and in any event the cost of any Buyer Directed Change Order shall
include only the direct cost of implementing the applicable change (with
appropriate credit being given for the cost of any work or equipment, if any,
previously included in the Construction Plans that will not be required as a
consequence of such change), plus the Contractor’s fee of 9.5% (which consists
of 5% for General Conditions, 3.25% for Change Orders and 1.25% for subguard
insurance) and The Walsh Company’s fee of 3%.

 

7.4          Buyer’s
Authorization.  If the Final Pricing
is acceptable to Buyer, Buyer shall give final authorization for inclusion of
the proposed Buyer Directed Change Order in the Construction Plans by
delivering written notice thereof to Seller within three (3) business days
after receipt of the Final Pricing, which authorization shall constitute Buyer’s
approval of the Buyer Directed Change Order, the Final Pricing therefor and
Seller’s estimate of any Buyer Delay attributable thereto (“Final Approval”).  Buyer’s failure to timely respond shall be
deemed Buyer’s disapproval of the Final Pricing and/or Seller’s estimate of any
Buyer Delay, and thereafter Seller shall proceed with construction in
accordance with the Construction Plans.

 

7.5          Payment for Buyer
Directed Change Orders.  The amount
of the Final Pricing authorized by Buyer shall be paid by Buyer into an escrow
account established with Escrow Agent (the “Buyer Directed Change Order
Escrow Account”) within five (5) business days of Buyer’s approval of
the Final Pricing (except with respect deposits made by Buyer for HVAC Related
Changes and LEED Related Changes, which shall be made pursuant to Sections 7.1 (a) and
(b)).  Funds in the Buyer Change Order
Escrow Account shall be held and disbursed in accordance with the terms of that
certain escrow agreement dated as of the date hereof by and among Seller, Buyer
and Escrow Agent (the “Change Order Escrow Account Agreement”), in the
form attached hereto as Exhibit K. 
Notwithstanding anything to the contrary contained herein, Seller shall
have no obligation to implement or continue to implement any Buyer Direct
Change Order unless Buyer timely deposits the amount of the Final Pricing into
the Buyer 

 

21

 

Change Order Escrow Account as
set forth in this Section 7.5.  Pursuant to Section 9.4(b), at Closing
Buyer shall pay the Carrying Costs with respect to any Buyer Delay as a result
of any Buyer Directed Change Order.

 

ARTICLE 8 - ADJUSTMENTS AND PRORATIONS

 

The following adjustments and prorations shall be made
at Closing:

 

8.1          Real Estate and
Personal Property Taxes.

 

(a)           Proration
of Ad Valorem Taxes.  Buyer and
Seller shall only prorate ad valorem
real estate and personal property taxes for the Property that are actually due
and payable during Closing Tax Year, regardless of the year for which such
taxes are assessed.  There shall be no
proration of ad valorem real
estate or personal property taxes other than as set forth hereinabove and, as
between Buyer and Seller, Buyer agrees that it shall be solely responsible for
all such ad valorem real estate
and personal property taxes due and payable after the Closing and Seller agrees
that it shall be solely responsible for all such ad valorem
real estate and personal property taxes due and payable for any Tax Year prior
to the Closing Tax Year.  The proration
of the ad valorem real estate and
personal property taxes actually due and payable during the Closing Tax Year
shall be calculated as follows:

 

(i)           Seller
shall be responsible for that portion of such taxes equal to (i) the total
such taxes due and payable during the Closing Tax Year, multiplied  by
(ii) a fraction, the numerator of which shall be the number of days in the
Closing Tax Year prior to the Closing Date, and the denominator of which shall
be 365; and

 

(ii)          Buyer
shall be responsible for that portion of such taxes equal to (i) the total
such taxes due and payable during the Closing Tax Year, multiplied  by
(ii) a fraction, the numerator of which shall be the number of days in the
Closing Tax Year subsequent to and including the Closing Date, and the
denominator of which shall be 365.

 

(b)           Special
Assessments.  Seller shall pay in
full and discharge any special assessment levied prior to the date hereof for
improvements or betterments serving the Real Property that have been completed
prior to the date hereof.  With respect
to any special assessment levied after the date hereof, Seller shall pay all
installments thereof due and payable prior to the Closing Date and Buyer shall
pay all installments thereof due and payable on and after the Closing Date,
with such special assessment to be prorated in the manner provided above for
the proration of real estate taxes; provided, however, that (i) if Seller
has the election to pay any such special assessment either immediately or under
a payment plan with interest, Seller may elect to pay under a payment plan,
which election shall be binding on Buyer; and (ii) Seller shall not be
required by the foregoing to pay any installments of special assessments which
have not been confirmed or which relate to projects that have not been
commenced prior to the Closing Date.

 

22

 

(c)                                  Reassessment.  In the event the Property has been assessed
for property tax purposes at such rates as would result in reassessment (i.e., “escape assessment” or “roll-back
taxes”) based upon the change in land usage or ownership of the Property on or after
the Closing Date, Buyer hereby agrees to pay all such taxes that are due and
payable, or otherwise applicable to the period, after the Closing based upon
such reassessment and Seller hereby agrees to pay all such taxes that are due
and payable, or otherwise attributable to the period, prior to the Closing
based upon such reassessment.

 

8.2                               Other
Property Operating Expenses. 
Operating expenses for the Property shall be prorated as of 12:01 a.m.
on the Closing Date.  Seller shall pay
all utility charges and other operating expenses attributable to the Property
to, but not including, the Closing Date, and Buyer shall pay all utility
charges and other operating expenses attributable to the Property on or after
the Closing Date.  To the extent that the
amount of actual consumption of any utility services is not determined prior to
the Closing Date, a proration shall be made at Closing based on the last
available reading and post-closing adjustments between Buyer and Seller shall
be made within twenty (20) days of the date that actual consumption for such
pre-closing period is determined, which obligation shall survive the Closing
and not be merged therein.  Seller shall
not assign to Buyer any deposits which Seller has with any of the utility
services or companies servicing the Property. 
Buyer shall arrange with such services and companies to have accounts
opened in Buyer’s name beginning at 12:01 a.m. on the Closing Date.

 

8.3                               Closing
Costs.  Buyer shall pay the following
costs and expenses associated with the Transaction:  (a) all premiums and charges of
the Title Company for the Title Commitment and the title insurance policy
issued pursuant thereto (including endorsements), (b) all
recording and filing charges in connection with the instruments by which Seller
conveys the Property, (c) fifty percent (50%)
of all escrow or closing charges of Escrow Agent, (d) all
costs of Buyer’s Due Diligence, (e) all fees due its consultants and
attorneys, (f) all lender fees related to any
financing to be obtained by Buyer, if any, and (g) all transfer taxes,
deed stamps, sales taxes and similar charges, if any, applicable to the
transfer of the Property to Buyer attributable to the Buyer Change Order Funds
and the Carrying Costs.  Seller shall pay
the following costs and expenses associated with the Transaction:  (i) the commission due Seller’s Broker, (ii) all transfer taxes, deed stamps, sales taxes and
similar charges attributable to the Base Purchase Price, if any, applicable to
the transfer of the Property to Buyer, excluding any
mortgage tax or other tax associated with Buyer’s financing, if any, (iii) all
fees and costs associated with the release of the Existing Mortgage, (iv) fifty
percent (50%) of all escrow or closing charges of Escrow Agent, (v) the
cost of the As-Built Survey, and (vi) all fees
due its consultants and attorneys.  The
obligations of the parties under this Section 8.3 shall survive the
Closing (and not be merged therein) or any earlier termination of this
Agreement.

 

8.4                               Apportionment
Credit.  In the event the
apportionments to be made at the Closing result in a credit balance (a) to Buyer, such sum shall be paid at the Closing
by giving Buyer a credit against the Purchase Price in the amount of such
credit balance, or (b) to Seller, Buyer shall pay
the amount thereof to Seller through Escrow as part of the Closing.

 

8.5                               Delayed
Adjustment; Survival.  If at any time
following the Closing Date, the amount of an item listed in any section of this
Article 8 shall prove to be incorrect (whether as a result of an error in
calculation or a lack of complete and accurate information as of the Closing), 

 

23

 

the party owing money as a result of such error or adjustment shall pay
to the other party the sum necessary to correct such error or make such
adjustment promptly following receipt of reasonable proof of the same (but in
no event later than thirty (30) days thereafter), provided that such reasonable
proof is received by the party from whom payment is to be made on or before
that date which is one hundred eighty (180) days after Closing.  The provisions of this Article 8 shall
survive the Closing and not be merged therein.

 

ARTICLE 9 - CLOSING

 

Buyer and Seller hereby
agree that the Transaction shall be consummated as follows:

 

9.1                               Closing
Date.  The Closing shall occur on the
date (the “Closing Date”) ten (10) business days following the
satisfaction of the Completion Requirements. 
The parties shall endeavor to conduct an escrow-style closing through the
Escrow Agent so that it will not be necessary for any party to attend the
Closing.  If, however, either Buyer or
Seller determines in good faith that such an escrow Closing is not practical,
Buyer and Seller shall conduct a “pre-closing” at 10:00 a.m. Eastern Time
on the last business day prior to the Closing Date at the offices of Escrow
Agent with title transfer and payment of the Purchase Price to be completed on
the Closing Date as set forth in Section 9.2.

 

9.2                               Title
Transfer and Payment of Purchase Price. 
Provided all conditions precedent to Seller’s obligations hereunder have
been satisfied, Seller agrees to convey, transfer and assign the Property to
Buyer upon confirmation of receipt of the Purchase Price and Carrying Costs by
the Escrow Agent as set forth below. 
Provided all conditions precedent to Buyer’s obligations hereunder have
been satisfied, Buyer agrees to pay the amount specified in Section 3.2
by timely delivering the same to the Escrow Agent no later than 1:00 p.m.
Eastern Time on the Closing Date and causing the Escrow Agent to deposit the
Base Building Deposit, any funds remaining in the Buyer Change Order Account
that are due to Seller, Carrying Costs, if any, and the balance of the Purchase
Price in Seller’s designated account by 3:00 p.m. Eastern Time on the
Closing Date.

 

9.3                               Seller’s
Closing Deliveries.  At Closing,
Seller shall deliver or cause to be delivered the following:

 

(a)                                  Deed.  A deed in the form of Exhibit C attached hereto and
incorporated herein by this reference (the “Deed”), executed and
acknowledged by Seller.

 

(b)                                 Bill of Sale.  A Bill of Sale in the form of Exhibit E attached hereto and
incorporated herein by this reference (“Bill of Sale”) with respect to
the Personal Property, executed by Seller.

 

(c)                                  Assignment of
Contract Rights and Rights.  An
assignment of the Contract Rights and the Rights in the form of Exhibit N attached hereto and
incorporated herein by this reference (“Assignment of Contract Rights and
Rights”) executed by Seller.

 

(d)                                 Assignments and Contractor,
Architect and Engineer Consents.  An
assignment by Seller to Buyer of Seller’s rights and benefits under the
Construction Contract, the 

 

24

 

Engineers Contract and the Architect’s Contract, each executed by
Seller, together with the consent thereto executed by the Contractor, the
Architect and the Engineer, as applicable, each in the form attached hereto as Exhibit T.

 

(e)                                  Non-Foreign Status
Affidavit.  A non-foreign status
affidavit in the form of Exhibit G
attached hereto and incorporated herein by this reference, as required by Section 1445
of the Internal Revenue Code, executed by Seller.

 

(f)                                    Punchlist Escrow.  The Punchlist Escrow Agreement, executed by
Seller.

 

(g)                                 Post-Closing
Deliverables.  The Post-Closing
Deliverables Escrow Agreement, executed by Seller.

 

(h)                                 Evidence of
Authority.  Documentation to
establish to Title Company’s reasonable satisfaction the due authorization of
Seller’s sale and transfer of the Property and Seller’s execution of the
Closing Documents required to be delivered by Seller and the consummation of
the Transaction.

 

(i)                                     Other Documents.  A title affidavit in the form of Exhibit H attached hereto and
incorporated herein by this reference and such other documents as may be
reasonably required by the Title Company or as may be agreed upon by Seller and
Buyer to consummate the Transaction.

 

(j)                                     Closing
Statement.  A form of closing
statement, setting forth the prorations and adjustments to the Purchase Price
respecting the Property to be made pursuant to Article 8 (the “Closing
Statement”), executed by Seller.

 

(k)                                  Keys and Original
Documents.  Keys and key cards and
alarm codes to, and all combinations to all locks on, all entrance doors to,
and any equipment and utility rooms located in, the Buildings, appropriately
tagged for identification, and originals or, if originals are not available,
copies, of all of the Property Documents, to the extent not previously
delivered to Buyer.

 

The items to be delivered
by Seller in accordance with the terms of Subsections (a) through (k) of
this Section 9.3 shall be delivered to Escrow Agent no
later than 5:00 p.m. Eastern Time on the business day prior to the Closing
Date; provided, however, that the items to be delivered by Seller in accordance
with the terms of Subsection (k) of this Section 9.3
may be delivered outside of escrow and shall be deemed delivered if the same
are located at the Property on the Closing Date.

 

9.4                               Buyer’s
Closing Deliveries.  At the Closing,
Buyer shall deliver or cause to be delivered the following:

 

(a)                                  Purchase Price.  The Purchase Price, as adjusted for the
prorations and escrows provided for in this Agreement.

 

(b)                                 Carrying Costs.  Carrying Costs, if any.

 

25

 

(c)                                  Evidence of
Authority.  Documentation to
establish to Title Company’s reasonable satisfaction the due authorization of
Buyer’s acquisition of the Property and Buyer’s execution of and the Closing
Documents required to be delivered by Buyer and the consummation of the
Transaction.

 

(d)                                 Punchlist Escrow.  The Punchlist Escrow Agreement, executed by
Buyer.

 

(e)                                  Post-Closing
Escrow.  The Post-Closing
Deliverables Escrow Agreement, executed by Buyer.

 

(f)                                    Other Documents.  Such other documents as may be reasonably
required by the Title Company or may be agreed upon by Seller and Buyer to
consummate the Transaction.

 

(g)                                 Closing Statement.  The Closing Statement, executed by Buyer.

 

The Purchase Price and
Carrying Costs, if any, shall be paid in accordance with the terms of Section 9.2
hereof and the items to be delivered by Buyer in accordance with the terms of
Subsections (b) through (g) of this Section 9.4
shall be delivered to Escrow Agent no later than 5:00 p.m. Eastern Time on
the business day prior to the Closing Date.

 

ARTICLE 10 - CONDITIONS PRECEDENT TO CLOSING

 

10.1                         Conditions
to Seller’s Obligations.  Seller’s
obligation to close the Transaction is conditioned on all of the following, any
or all of which may be waived by Seller by an express written waiver, at its
sole option:

 

(a)                                  Representations
True.  Subject to the provisions of Section 11.3(a),
all representations and warranties made by Buyer in this Agreement, as the same
may be amended as provided in Section 11.3(a), shall
be true and correct in all material respects on and as of the Closing Date, as
if made on and as of such date except to the extent they expressly relate to an
earlier date;

 

(b)                                 Buyer’s Financial
Condition.  No petition has been
filed by or against Buyer under the Federal Bankruptcy Code or any similar
state or federal Law in effect as of the Closing; and

 

(c)                                  Buyer’s Deliveries
Complete.  Buyer shall have delivered
the funds required hereunder and all of the documents to be executed by Buyer
set forth in Section 9.4 and shall have performed all
other covenants, undertakings and obligations, and complied with all conditions
required by this Agreement, to be performed or complied with by Buyer at or
prior to the Closing.

 

10.2                         Conditions
to Buyer’s Obligations.  Buyer’s obligation
to close the Transaction is subject to satisfaction or waiver of each of the
conditions set forth in Section 10.2 (the “Conditions Precedent”).

 

26

 

(a)                                  Completion of
Construction.  The Shell Building
Improvements shall be Substantially Completed and the other Completion
Requirements shall have been satisfied or performed by Seller.

 

(b)                                 Casualty.  There shall not exist any casualty or damage
to the Shell Building Improvements that has not been repaired prior to the
Closing.

 

(c)                                  Permits.  There shall have been issued by all
Governmental Authorities all Permits. 
All Permits shall be in full force and effect without the presence or
existence of any unsatisfied conditions or requirements with respect thereto.

 

(d)                                 No Change in
Physical Condition.  There shall have
been no release of Hazardous Materials on the Real Property or the Shell
Building Improvements that has not been remediated in accordance with and as
required by applicable Law.

 

(e)                                  Representations
True.  Subject to the provisions of Section 11.3(b),
all representations and warranties made by Seller in this Agreement, as the
same may be amended as provided in Section 11.3(b), shall
be true and correct in all material respects on and as of the Closing Date, as
if made on and as of such date except to the extent that they expressly relate
to an earlier date;

 

(f)                                    Title Conditions
Satisfied.  At the time of the
Closing, title to the Property shall be subject only to the Permitted
Exceptions as provided in Article 4 of this Agreement;

 

(g)                                 Seller’s Financial
Condition.  No petition has been
filed by or against Seller under the Federal Bankruptcy Code or any similar
state or federal Law in effect as of the Closing; and

 

(h)                                 Seller’s Deliveries
Complete.  Seller shall have
delivered all of the documents and other items required pursuant to Section 9.3
and shall have performed all other covenants, undertakings and obligations, and
complied with all conditions required by this Agreement, to be performed or
complied with by Seller at or prior to the Closing.

 

10.3                         Waiver
of Failure of Conditions Precedent; Term. 
At any time or times on or before the date specified for the
satisfaction of any condition, Seller or Buyer may elect in writing to waive
the benefit of any such condition set forth in Section 10.1 or Section 10.2.  By closing the Transaction, Seller and Buyer
shall be conclusively deemed to have waived the benefit of any remaining
unfulfilled conditions set forth in Section 10.1 or Section 10.2.  In the event any of the conditions set forth
in Sections 10.1 or Section 10.2 are neither waived nor fulfilled, Seller
or Buyer (as appropriate) may exercise such rights and remedies, if any, that
such party may have pursuant to the terms of Article 13 hereof; provided,
however, that if any condition set forth in Section 10.2 is not satisfied
or waived by Buyer and if the failure of such condition does not arise as a
consequence of a default by Seller hereunder, then the Base Building Deposit
shall be returned to Buyer and the entire amount deposited from time to time by
Buyer in the Buyer Directed Change Order Escrow Account shall be paid to Buyer
by Seller, and thereafter this Agreement shall terminate and neither party to
this Agreement shall have any further rights or obligations hereunder other
than any arising under any section herein which expressly provides that it
shall survive the termination of this Agreement.

 

27

 

ARTICLE 11 - REPRESENTATIONS AND WARRANTIES

 

11.1                         Buyer’s
Representations.  Buyer represents
and warrants to Seller as follows:

 

(a)                                  Buyer’s
Authorization.  Buyer (a) is duly organized (or formed), validly existing
and in good standing under the laws of the State of Delaware, and to the extent
required by applicable Law, qualified to do business in the State in which the
Property is located, (b) is authorized to
consummate the Transaction and fulfill all of its obligations hereunder and
under all Closing Documents to be executed by Buyer, and (c) has
all necessary power to execute and deliver this Agreement and all Closing
Documents to be executed by Buyer, and to perform all of Buyer’s obligations
hereunder and thereunder.  This Agreement
has been, and all Closing Documents to be executed by Buyer will be, duly
authorized by all requisite corporate or other required action on the part of
Buyer and are and/or at the Closing will be the valid and legally binding
obligation of Buyer, enforceable in accordance with their respective terms,
except to the extent limited by bankruptcy or insolvency laws, or laws
affecting creditor’s rights generally. 
Neither the execution and delivery of this Agreement and all Closing
Documents to be executed by Buyer, nor the performance of the obligations of
Buyer hereunder or thereunder will (i) to Buyer’s knowledge, result in the
violation of any Law, (ii) result in the violation of any provision of the
organizational documents of Buyer, or (iii) conflict with any order or
decree of any court or governmental instrumentality of any nature by which
Buyer is bound.

 

(b)                                 Buyer’s Financial
Condition.  No petition has been
filed by or against Buyer under the Federal Bankruptcy Code or any similar
state or federal Law.

 

(c)                                  Patriot Act
Compliance. 
Buyer is not acting, directly or
indirectly for, or on behalf of, any person, group, entity or nation named by
any Executive Order (including the September 24, 2001, Executive Order
Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism) or the United States Treasury
Department as a terrorist, “Specially Designated National and Blocked Person,”
or other banned or blocked person, group, entity or nation pursuant to any Law
that is enforced or administered by the Office of Foreign Assets Control, and
Buyer is not engaging in this Transaction, directly or indirectly, on behalf
of, or instigating or facilitating this Transaction, directly or indirectly, on
behalf of, any such person, group, entity or nation.

 

(d)                                 Buyer’s FEIN.  Buyer’s tax identification number is
77-0019522.

 

11.2                         Seller’s
Representations.  Seller represents
and warrants to Buyer as follows:

 

(a)                                  Seller’s
Authorization.  Seller (a) is duly organized (or formed), validly existing
and in good standing under the laws of the State of Delaware and to the extent
required by applicable Law, qualified to do business in the State in which the
Property is located, (b)  is authorized to
consummate the Transaction and fulfill all of its obligations hereunder and
under all Closing Documents to be executed by Seller, and (c) has
all necessary power to execute and deliver this Agreement and all Closing
Documents to be executed by Seller, and to perform all of Seller’s obligations
hereunder and thereunder.  This Agreement
has been, and all Closing Documents to be executed by Seller will be, duly
authorized by all requisite partnership, corporate or other required action on
the part of Seller and are and/or at the Closing will be the 

 

28

 

valid and legally binding obligation of Seller, enforceable in
accordance with their respective terms, except to the extent limited by
bankruptcy or insolvency laws, or laws affecting creditor’s rights
generally.  Neither the execution and
delivery of this Agreement and all Closing Documents to be executed by Seller,
nor the performance of the obligations of Seller hereunder or thereunder will (i) to
Seller’s knowledge, result in the violation of any Law, (ii) result in the
violation of any provision of the organizational documents of Seller, or (iii) conflict
with any order or decree of any court or governmental instrumentality of any
nature by which Seller or the Property is bound.

 

(b)                                 Pending Litigation.  Seller has not received any written notice of
any current or pending litigation against Seller which, if determined adversely
to Seller, is reasonably likely to have a materially adverse effect on Seller
or the Property, and Seller has no actual knowledge of the existence or threat
of any such action, suit, proceeding or other litigation.

 

(c)                                  Contracts.  Seller has not received or given any written
notice of default under the terms of any of the Architect’s Contract, Engineer’s
Contract, Construction Contract, Construction Loan Documents or any other
Contract, except as listed in Exhibit L
attached hereto.

 

(d)                                 Leases.  Seller has not, and prior to the Closing
Seller will not, enter into, and Seller has no knowledge of, any lease or
occupancy agreement affecting the Property.

 

(e)                                  Seller’s Financial
Condition.  No petition has been
filed by Seller under the Federal Bankruptcy Code or any similar State or
federal Law.

 

(f)                                    Patriot Act
Compliance.  Seller is not acting,
directly or indirectly for, or on behalf of, any person, group, entity or
nation named by any Executive Order (including the September 24, 2001,
Executive Order Blocking Property and Prohibiting Transactions With Persons Who
Commit, Threaten to Commit, or Support Terrorism) or the United States Treasury
Department as a terrorist, “Specially Designated National and Blocked Person,”
or other banned or blocked person, group, entity or nation pursuant to any Law
that is enforced or administered by the Office of Foreign Assets Control, and
Seller is not engaging in this Transaction, directly or indirectly, on behalf
of, or instigating or facilitating this Transaction, directly or indirectly, on
behalf of, any such person, group, entity or nation.

 

(g)                                 Seller’s FEIN
Number.  Seller’s tax identification
number is 20-5430619.

 

(h)                                 Governmental Requirements.  Except as set forth on Exhibit Y,
Seller does not have knowledge of any development agreements or similar
governmental requirements applicable to the construction of the Shell Building
Improvements that are not recorded in the public records of Middlesex County,
on file with the City of Waltham, or that are not generally applicable to all
other similar projects in Middlesex County that would be binding on Buyer after
the Closing.

 

(i)                                     Documents.  Each document set forth on Exhibit V
attached and incorporated herein delivered by any of the Seller Parties to
Buyer or any Buyer’s Representative prior to the date hereof is a true, correct
and complete copy of such document.

 

29

 

(j)                                     Permits.  Seller has obtained all Permits required for
the development of the Real Property and the construction of the Shell Building
Improvements thereon, except for the New Special Permit and the foundation
permit, building permit and other similar construction Permits not required to
have been obtained by Seller prior to the date hereof based upon the work
undertaken prior to the date hereof.

 

(k)                                  Agreements
Affecting Property.  Seller has not
entered into, and Seller has no actual knowledge of, any unrecorded agreement,
with any third party affecting or limiting title to the Real Property, the use
and operation thereof, or which requires the payment of money to or the
undertaking of any mitigation measures for the benefit of such third party that
would be binding on Buyer or the Property after the Closing.

 

(l)                                     Actions
Affecting Property.  Seller has not
received written notice of any pending condemnation proceeding or proposed
change in zoning affecting the Real Property, and Seller has no actual
knowledge of the threat of any such condemnation proceeding or zoning change.

 

(m)                               No Violations.  Seller has not received written notice from
any Governmental Authority of any violation of any Law applicable to the Real
Property or construction of the Shell Building Improvements that has not been
corrected.

 

11.3                         General Provisions.

 

(a)                                  Breach of Buyer’s
Warranties - Prior to Closing.

 

(i)                                If at or prior to the
Closing, any Seller’s Party obtains actual knowledge that any of Buyer’s
Warranties are untrue, inaccurate or incorrect in any material respect, Seller
shall give Buyer written notice thereof within five (5) business days of
obtaining such knowledge (but, in any event, prior to the Closing).  If at or prior to the Closing, Buyer obtains
actual knowledge that any of Buyer’s Warranties are untrue, inaccurate or
incorrect in any material respect, Buyer shall give Seller written notice
thereof within five (5) business days of obtaining such knowledge (but, in
any event, prior to the Closing).  In
either such event, Buyer shall have the right to cure such misrepresentation or
breach and shall be entitled to a reasonable adjournment of the Closing (not to
exceed thirty (30) days) for the purpose of such cure.

 

(ii)                             If any misrepresentation
or breach of any of Buyer’s Warranties is first discovered by Seller after the
date of this Agreement but prior to Closing and Buyer either does not elect to
or is not able to so cure any such misrepresentation or breach, then Seller, as
its sole remedies for any and all such misrepresentations or breaches, shall
have the following rights:

 

(A)                              If any of Buyer’s
Warranties are, in the aggregate, untrue, inaccurate or incorrect in any
material respect, then Seller may elect to terminate this Agreement by written
notice given to Seller on or prior to the Closing Date, in which case the terms
of Section 13.1(a) shall apply.

 

30

 

(B)                                If any of Buyer’s
Warranties are untrue, inaccurate or incorrect but are not, in the aggregate,
untrue, inaccurate or incorrect in any material respect, Seller shall be deemed
to waive such misrepresentation or breach of warranty, and Seller shall be
required to consummate the Transaction.

 

(iii)                          The untruth, inaccuracy or
incorrectness of Buyer’s Warranties shall be deemed material for purposes of
this Agreement only if such untruth, inaccuracy or incorrectness of Buyer’s
Warranties precludes Buyer from proceeding with the Closing and paying the
Purchase Price and all other amounts owing to Seller hereunder.

 

(b)                                 Breach of Seller’s
Warranties - Prior to Closing.

 

(i)                                If at or prior to the
Closing, any Buyer’s Representative obtains actual knowledge that any of Seller’s
Warranties are untrue, inaccurate or incorrect in any material respect, Buyer
shall give Seller written notice thereof within five (5) business days of
obtaining such knowledge (but, in any event, prior to the Closing).  If at or prior to the Closing, Seller obtains
actual knowledge that any of Seller’s Warranties are untrue, inaccurate or
incorrect in any material respect, Seller shall give Buyer written notice
thereof within five (5) business days of obtaining such knowledge (but, in
any event, prior to the Closing).  In
either such event, Seller shall have the right to cure such misrepresentation
or breach and shall be entitled to a reasonable adjournment of the Closing (not
to exceed thirty (30) days) for the purpose of such cure.

 

(ii)                             If any misrepresentation
or breach of any of Seller’s Warranties is first discovered by Buyer after the
date of this Agreement but prior to Closing and Seller is not able to so cure
any such misrepresentation or breach, then Buyer, as its sole remedies for any
and all such misrepresentations or breaches, shall have the following rights:

 

(A)                              If any of Seller’s
Warranties are, in the aggregate, untrue, inaccurate or incorrect in any
material respect, then Buyer may elect either (A) to waive such
misrepresentations or breaches and consummate the Transaction without any
reduction of or credit against the Purchase Price, or (B) to terminate
this Agreement by written notice given to Seller on or prior to the Closing
Date, in which case the terms of Section 13.2(a) shall apply.

 

(B)                                If any of Seller’s
Warranties are untrue, inaccurate or incorrect but are not, in the aggregate,
untrue, inaccurate or incorrect in any material respect, Buyer shall be deemed
to waive such misrepresentation or breach of warranty, and Buyer shall be
required to consummate the Transaction 

 

31

 

without any reduction of
or credit against the Purchase Price.

 

(iii)                          The untruth, inaccuracy or
incorrectness of Seller’s Warranties shall be deemed material for purposes of
this Agreement only if Buyer’s aggregate damages resulting from the untruth,
inaccuracy or incorrectness of Seller’s Warranties are reasonably estimated to
exceed Twenty-Five Thousand Dollars ($25,000).

 

(c)                                  Survival;
Limitation on Liability.  The
representations and warranties of the parties set forth above shall survive the
Closing and not be merged therein for a period of nine (9) months.  Either party shall only be liable to the
other for a breach of any representation or warranty with respect to which a
claim is made on or before the date which is nine (9) months after the
date of the Closing.  Notwithstanding the
foregoing, however, if the Closing occurs, Buyer hereby expressly waives,
relinquishes and releases any right or remedy available to it at law, in
equity, under this Agreement or otherwise to make a claim against Seller for
damages that Buyer may incur, or to rescind this Agreement and the Transaction,
as the result of any of Seller’s Warranties being untrue, inaccurate or
incorrect if (a) Buyer knew or is deemed to know that such representation
or warranty was untrue, inaccurate or incorrect at the time of the Closing, or (b) Buyer’s
damages as a result of such representations or warranties being untrue,
inaccurate or incorrect are reasonably estimated to aggregate less than Two
Hundred Thousand Dollars ($200,000). 
Anything in this Agreement to the contrary notwithstanding, the maximum
aggregate liability of Seller for breaches of Seller’s Warranties shall be
limited as set forth in Section 16.14 hereof.

 

ARTICLE 12 - MUTUAL COVENANTS

 

Buyer and Seller hereby
mutually agree as follows:

 

12.1                         Publicity.  Seller and Buyer each hereby covenant and
agree that neither of Seller nor Buyer shall issue any Release (as hereinafter
defined) with respect to the Transaction without the prior consent of the
other, except to the extent required by applicable Law, and any Release issued
at any time by either of Seller or Buyer shall be subject to the review and
approval of both parties (which approval shall not be unreasonably withheld,
conditioned or delayed), except to the extent required by applicable Law.  If either of Seller or Buyer is required by
applicable Law to issue a Release, such party shall, at least one (1) business
day prior to the issuance of the same, deliver a copy of the proposed Release
to the other party for its review.  As
used herein, the term “Release” shall mean any press release or public
statement with respect to the Transaction or this Agreement, provided, however,
that any statement or filing required to be made by either party with the
Securities and Exchange Commission (“SEC”) or any other Governmental
Authority with respect to entering into this Agreement or the Transaction or
any aspect thereof (including, without limitation, the filing of this Agreement
with the SEC on Form 8-K) shall not be deemed to be a Release and shall
not be subject to the terms of this Section 12.1 (except that, in the case
of the filing of this Agreement with the SEC on Form 8-K, the party making
such filing shall make good faith efforts to provide a copy of the transaction
summary to be included as part of such filing to the other party prior to the
filing thereof).

 

32

 

12.2                         Brokers.  Seller and Buyer expressly acknowledge that
Seller’s Broker has acted as the exclusive broker with respect to the
Transaction and with respect to this Agreement. 
Seller shall pay any brokerage commission due to Seller’s Broker in
accordance with the separate agreement between Seller and Seller’s Broker.  Seller agrees to hold Buyer harmless and
indemnify Buyer from and against any and all Liabilities (including reasonable
attorneys’ fees, expenses and disbursements) suffered or incurred by Buyer as a
result of any claims by Seller’s Broker or any other party claiming to have
represented Seller as broker in connection with the Transaction.  Buyer agrees to hold Seller harmless and
indemnify Seller from and against any and all Liabilities (including reasonable
attorneys’ fees, expenses and disbursements) suffered or incurred by Seller as
a result of any claims by any party claiming to have represented Buyer as
broker in connection with the Transaction. 
The provisions of this Section 12.3 shall survive the Closing (and
not be merged therein) or earlier termination of this Agreement.

 

12.3                         Tax
Protests; Tax Refunds and Credits. 
Seller shall have the right to continue and to control the progress of
and to make all decisions with respect to any contest of the real estate taxes
and personal property taxes for the Property due and payable during the Closing
Tax Year and all prior Tax Years, provided that such contest proceeding for the
Closing Tax Year shall not be finally settled by Seller without the prior
consent of Buyer, which consent shall not be unreasonably withheld, conditioned
or delayed.  If Buyer, at any time
following the Closing, institutes tax reduction or other proceedings not
previously instituted by Seller to reduce the assessed valuation of the Real
Property with respect to the Closing Tax Year, then such proceeding shall not
be finally settled by Buyer without the prior consent of Seller, which consent
shall not be unreasonably withheld, conditioned or delayed.  Buyer shall have the right to control the
progress of and to make all decisions with respect to any tax contest of the
real estate taxes and personal property taxes for the Property due and payable
during all Tax Years subsequent to the Closing Tax Year.  All real estate and personal property tax
refunds and credits received after Closing with respect to the Property for any
period that includes the period prior to the Closing Date, shall be applied in
the following order of priority:  first,
to pay the costs and expenses (including reasonable attorneys’ fees, expenses
and disbursements) incurred in connection with obtaining such tax refund or
credit; and second, apportioned between Buyer and Seller as follows:

 

(a)                                  with respect to any
refunds or credits attributable to real estate and personal property taxes due
and payable during the Closing Tax Year (regardless of the year for which such
taxes are assessed), such refunds and credits shall be apportioned between
Buyer and Seller in the manner provided in Section 8.1;

 

(b)                                 with respect to any
refunds or credits attributable to real estate and personal property taxes due
and payable during any period prior to the Closing Tax Year (regardless of the
year for which such taxes are assessed), Seller shall be entitled to the entire
refunds and credits; and

 

(c)                                  with respect to any
refunds or credits attributable to real estate and personal property taxes due
and payable during any period after the Closing Tax Year (regardless of the
year for which such taxes are assessed), Buyer shall be entitled to the entire
refunds and credits.

 

33

 

The provisions of this Section 12.4 shall survive the Closing (and
not be merged therein) or earlier termination of this Agreement.

 

ARTICLE 13 - DEFAULT; REMEDIES; 

TERMINATION; INABILITY TO COMPLETE CONSTRUCTION

 

13.1                         Seller’s
Termination Right.  If, on the
Closing Date, (i) Buyer is in default of any of its obligations hereunder,
or (ii) any of Buyer’s representations or warranties are, in the aggregate,
untrue, inaccurate or incorrect in any material respect, as specified in Section 11.3(a),
or (iii) the Closing otherwise fails to occur on the Closing Date by
reason of Buyer’s failure or refusal to perform its obligations hereunder in a
prompt and timely manner or a failure of a condition to Seller’s obligation to
close, which failure arises as a consequence of a default by Buyer hereunder,
and any such circumstance described in any of clauses (i), (ii) or (iii) continues
uncured for five (5) business days after written notice from Seller to
Buyer, which written notice shall detail such default, untruth or failure, as
applicable, then Seller may elect, as its sole and exclusive remedy, to: (a) terminate
this Agreement by written notice to Buyer, promptly after which (A) the
Base Building Deposit, and (B) any funds in the Buyer Directed Change
Order Escrow Account (except to the extent that any such funds in the Buyer
Directed Change Order Escrow Account have not yet been spent or have not yet
been irrevocably committed to be spent in connection with the Buyer Directed
Change Order for which any such escrowed funds were deposited; and, in that
regard, Seller shall, to the extent possible, cancel any such Buyer Directed
Change Order that has not yet been undertaken) shall be paid to Seller as
liquidated damages and, thereafter, the parties shall have no further rights or
obligations hereunder except for obligations which expressly survive the
termination of this Agreement; or (b) waive the condition and proceed to
close the Transaction.

 

13.2                         Buyer’s
Remedies.  If, on the Closing Date, (i) Seller
is in default of any of its obligations hereunder, or (ii) any of Seller’s
Warranties are, in the aggregate, untrue, inaccurate or incorrect in any
material respect, as specified in Section 11.3(b), or (iii) the Closing
otherwise fails to occur on the Closing Date by reason of Seller’s failure or
refusal to perform its obligations hereunder in a prompt and timely manner or a
failure of a condition to Buyer’s obligation to close, which failure arises as
a consequence of a default by Seller hereunder, and any such circumstance
described in any of clauses (i), (ii) or (iii) continues uncured
for five (5) business days after written notice from Buyer to Seller, which
written notice shall detail such default, untruth or failure, as applicable,
then Buyer may elect, as its sole and exclusive remedy, to: (a) terminate
this Agreement by written notice to Seller, in which case (A) the Base
Building Deposit shall be returned to Buyer, and (B) Seller shall pay to
Buyer (x) the entire amount deposited from time to time by Buyer in the
Buyer Directed Change Order Escrow Account (the “Buyer Change Order Funds”),
(y) the accrued and unpaid Penalty Amount, and (z) the actual
out-of-pocket costs and expenses incurred by Buyer in connection with this
Agreement and the actions undertaken by Buyer in connection therewith,
including, without limitation, the actual out-of-pocket costs of Buyer’s Due
Diligence, Buyer’s Representatives, Construction Consultant, and Change Orders,
but in no event shall Buyer’s recovery under this clause (z) exceed Five
Hundred Thousand Dollars ($500,000) (the “Cost Cap”), and, thereafter,
the parties shall have no further rights or obligations hereunder except for obligations
which expressly survive the termination of this Agreement; or (b) enforce
specific performance of Seller’s obligation to 

 

34

 

satisfy the Completion Requirements and convey the Property (in which
case (a) if Buyer is the prevailing party in such action Buyer shall be
entitled to recover from Seller its reasonable attorneys’ fees and costs
incurred in such action for specific performance and (b) if Seller is the
prevailing party, Seller shall be entitled to recover from Buyer its reasonable
attorneys’ fees and costs incurred in such action for specific performance).

 

13.3                         Failure
to Complete Construction. 
Notwithstanding anything to the contrary set forth herein, if
Substantial Completion of the Shell Building Improvements has not been achieved
by the Outside Completion Date (as determined pursuant to Section 6.1(c) hereof),
then Buyer may elect to: (a) extend the Outside Completion Date for a
reasonable period under the circumstances, as mutually agreed upon by Seller
and Buyer, in order to allow Seller additional time to satisfy the Completion
Requirements (provided that, if the Completion Requirements have not been
achieved by such extended Outside Completion Date, Buyer shall then elect to
proceed under either clause (b) or clause (c) that follow); (b) terminate
this Agreement by written notice to Seller, in which case (A) the Base
Building Deposit shall be returned to Buyer, and (B) Seller shall pay to
Buyer (x) the entire amount of the Buyer Change Order Funds, (y) the
accrued and unpaid Penalty Amount, and (z) the actual out-of-pocket costs
and expenses incurred by Buyer in connection with this Agreement and the
actions undertaken by Buyer in connection therewith, including, without
limitation, the actual out-of-pocket costs of Buyer’s Due Diligence, Buyer’s
Representatives, Construction Consultant, and Change Orders, but in no event
shall Buyer’s recovery under this clause (z) exceed the Cost Cap, and,
thereafter, the parties shall have no further rights or obligations hereunder
except for obligations which expressly survive the termination of this
Agreement; or (c) elect to proceed with the Closing and accept the
Property in its then current condition, in which case the Purchase Price shall
be reduced by an amount equal to one hundred ten percent (110%) of the cost to
complete and pay for the Shell Building Improvements and the other Completion
Requirements and to satisfy the other obligations of Seller hereunder (but in
no event shall the Purchase Price be less than the outstanding balance of the
Construction Loan).  Any dispute between
Seller and Buyer with respect to the items to be completed or the cost to
complete such items shall be determined by the Independent Architect pursuant
to Section 6.9, whose determination shall be binding upon Seller and
Buyer.

 

13.4                         Specific
Performance.  As a condition
precedent to Buyer exercising any right it may have to bring an action for
specific performance hereunder, Buyer must commence such an action within
ninety (90) days after the Outside Completion Date (as the same may be extended
as provided for herein).  Buyer agrees
that its failure to timely commence such an action for specific performance
within such ninety (90) day period shall be deemed a waiver by it of its right
to commence an action for specific performance as well as a waiver by it of any
right it may have to file or record a notice of lis pendens or notice of pendency of action or similar
notice against any portion of the Property.

 

ARTICLE 14 - ESCROW PROVISIONS

 

The Base Building Deposit
shall be held by the Escrow Agent, in trust, and disposed of only in accordance
with the following provisions:

 

35

 

(a)                                  The Escrow Agent
shall invest the Base Building Deposit in government insured interest-bearing
instruments reasonably satisfactory to both Buyer and Seller, shall not
commingle the Base Building Deposit with any funds of the Escrow Agent or
others, and shall promptly provide Buyer and Seller with confirmation of the
investments made.

 

(b)                                 If the Closing occurs,
the Escrow Agent shall deliver the Base Building Deposit to, or upon the
instructions of, Seller on the Closing Date and as a credit against the
Purchase Price.

 

(c)                                  If for any reason the
Closing does not occur, the Escrow Agent shall deliver the Base Building
Deposit to Seller or Buyer only upon receipt of a written demand therefor from
such party, subject to the following provisions of this Subsection (c).  If for any reason the Closing does not occur
and either party makes a written demand upon the Escrow Agent for payment of
the Base Building Deposit, the Escrow Agent shall give written notice to the
other party of such demand.  If the
Escrow Agent does not receive a written objection from the other party to the
proposed payment within ten (10) business days after the giving of such
notice, the Escrow Agent is hereby authorized to make such payment.  If the Escrow Agent does receive such written
objection within such period, the Escrow Agent shall continue to hold such
amount until otherwise directed by written instructions signed by Seller and
Buyer or a final judgment of a court.

 

(d)                                 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 willful disregard of this Agreement, but shall
be liable for its gross negligence, willful misconduct and bad faith.  Seller and Buyer shall jointly and severally
indemnify and hold the Escrow Agent harmless from and against all Liabilities
(including reasonable attorneys’ fees, expenses and disbursements) 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 willful disregard of this Agreement or involving gross negligence on
the part of the Escrow Agent.

 

(e)                                  Any interest earned
on the Base Building Deposit shall be income of Buyer if paid to Buyer (or
released to Seller as part of the Purchase Price) or income of Seller if paid
to Seller in connection with the termination of this Agreement as a consequence
of a default hereunder by Buyer.  Buyer
and Seller each represents and warrants to the Escrow Agent that its respective
taxpayer identification numbers are as set forth elsewhere in this Agreement.

 

(f)                                    The Escrow Agent
has executed this Agreement in the place indicated on the signature page hereof
in order to confirm that the Escrow Agent has received and shall hold the Base
Building Deposit in escrow, and shall disburse the Base Building Deposit
pursuant to the provisions of this Article 14 and the other terms of this
Agreement.

 

The provisions of
this Article 14 shall survive the Closing (and not be merged therein) or
earlier termination of this Agreement.

 

36

 

ARTICLE 15 - CONDEMNATION/CASUALTY

 

15.1                         Right
to Terminate.  If, after the date
hereof, (a) any portion of the Real Property is taken by condemnation or
eminent domain (or is the subject of a pending taking which has not yet been
consummated), or (b) any portion of the Property is damaged or destroyed,
Seller shall notify Buyer in writing of such fact promptly after obtaining
knowledge thereof.  If the Real Property
is the subject of a Major Casualty/Condemnation that occurs after the date
hereof, this Agreement shall terminate, unless (i) in the case of a
casualty, the parties shall otherwise agree, in their respective sole and
absolute discretion, or (ii) in the case of a condemnation, Buyer shall
otherwise agree, in its sole and absolute discretion.  If this Agreement is terminated pursuant to
this Section 15.1, the Base Building Deposit and the entire
amount deposited from time to time by Buyer in the Buyer Directed Change Order
Escrow Account shall be returned to Buyer; and, thereafter, this Agreement
shall terminate and neither party to this Agreement shall have any further
rights or obligations hereunder other than any arising under any section herein
which expressly provides that it shall survive the termination of this Agreement.

 

15.2                         Allocation
of Awards.  If a condemnation or
casualty occurs after the date hereof and this Agreement is not terminated as
provided for in Section 15.1, then this Agreement shall
remain in full force and effect and Seller shall proceed with construction of
the Shell Building Improvements (including restoration of any damaged portions
thereof) and the Buyer shall pay the Purchase Price without reduction, and in
the case of a condemnation, at the Closing:

 

(a)                                  if any condemnation
award has been paid to Seller prior to Closing, Buyer shall receive a credit at
Closing equal to (i) the amount of any such award on account of such
condemnation, less (ii) an amount equal to the Seller-Allocated Amounts;
and

(b)                                 to the extent that any
such award has not been paid to Seller prior to Closing, Seller shall assign to
Buyer at the Closing (without recourse to Seller) the rights of Seller to, and
Buyer shall be entitled to receive and retain any such award; provided,
however, that promptly following receipt of such awards or proceeds, Buyer
shall pay to Seller an amount equal to the Seller-Allocated Amounts not
previously paid to Seller.

 

15.3                         Waiver.  The provisions of this Article 15
supersede the provisions of any applicable Laws with respect to the subject
matter of this Article 15.

 

ARTICLE 16 - MISCELLANEOUS

 

16.1                         Buyer’s
Assignment.

 

(a)                                  Buyer shall not
assign this Agreement or its rights hereunder to any individual or entity,
without the prior written consent of Seller, which consent Seller may grant or
withhold in its sole and absolute discretion, and any such assignment shall be
null and void ab initio.  Any transfer, directly or indirectly, of any
stock, partnership interest or other ownership interest in Buyer shall
constitute an assignment of this Agreement; provided, however, that the
foregoing shall not apply to, or be construed to prohibit or limit in any way
the transfer of stock in, a publicly traded company.

 

37

 

(b)                               Notwithstanding the
above provisions of Section 16.1(a) to the contrary, Buyer may, upon
notice to (except to the extent that Buyer is precluded by applicable Law or
regulations) but without the requirement of consent by Seller, assign this
Agreement to a corporation, partnership, limited liability company, trust or
other entity controlled by or under common control with Buyer or in connection
with any merger, consolidation, or other reorganization affecting Buyer, or a
sale of any substantial portion of Buyer’s assets.  Notwithstanding any such assignment, Buyer
shall remain liable under this Agreement and not be released from any
obligation or liability hereunder.

 

(c)                                In the event Buyer
intends to seek Seller’s consent to an assignment of its rights hereunder:

 

(i)                                Buyer shall send Seller
written notice of its request at least five (5) business days prior to the
Closing Date, which notice shall include the legal name and structure of the
proposed assignee and evidence reasonably satisfactory to Seller of the valid
legal existence of Buyer’s assignee, its qualification (if necessary) to do
business in the jurisdiction in which the Property is located and of the
authority of Buyer’s assignee to execute and deliver any and all documents
required of Buyer under the terms of this Agreement; and

 

(ii)                             Buyer shall provide Seller
any other information that Seller may reasonably request with respect to the
proposed assignee; and

 

(iii)                          Buyer and the proposed
assignee shall execute an assignment and assumption of this Agreement pursuant
to which Buyer’s obligations hereunder are expressly assumed by such assignee.

 

(d)                               Notwithstanding any
provision in this Agreement to the contrary:

 

(i)                                Any permitted
assignment by Buyer shall not relieve Buyer of any of its obligations and
liabilities hereunder including obligations and liabilities which survive the
Closing or the termination of this Agreement, nor shall any such assignment
alter, impair or relieve such assignee from the waivers, acknowledgements and
agreements of Buyer set forth herein, including, but not limited to, those set
forth in Article 5, Article 11 and Article 12 hereof, all of
which will be binding upon any assignee of Buyer.

 

(ii)                             No transfer by Buyer of
any interest in this Agreement and no transfers of direct or indirect interests
in Buyer shall be permitted if the same would cause the representations and
warranties made in Section 11.1 to be untrue, inaccurate or incomplete
(following any necessary restatement of the representation and warranty set
forth in Section 11.1(d) in order to be accurate with respect to such
assignee) and Buyer covenants to cooperate with Seller’s requests to provide
documentation reasonably necessary or desirable for Seller to verify that such
representations and warranties are true, accurate and complete prior to
Closing.

 

38

 

16.2                         Designation
Agreement.  Section 6045(e) of
the United States Internal Revenue Code and the regulations promulgated
thereunder (herein collectively called the “Reporting Requirements”) require
an information return to be made to the United States Internal Revenue Service,
and a statement to be furnished to Seller, in connection with the
Transaction.  Escrow Agent is either (x) the person responsible for closing the
Transaction (as described in the Reporting Requirements) or
(y) the disbursing title or escrow company that is most significant
in terms of gross proceeds disbursed in connection with the Transaction (as
described in the Reporting Requirements). 
Accordingly:

 

(a)                                  Escrow Agent is
hereby designated as the “Reporting Person” (as defined in the Reporting
Requirements) for the Transaction. 
Escrow Agent shall perform all duties that are required by the Reporting
Requirements to be performed by the Reporting Person for the Transaction.

 

(b)                                 Seller and Buyer shall
furnish to Escrow Agent, in a timely manner, any information requested by
Escrow Agent and necessary for Escrow Agent to perform its duties as Reporting
Person for the Transaction.

 

(c)                                  Seller acknowledges
that any failure by Seller to provide Escrow Agent with Seller’s correct
taxpayer identification numbers may subject Seller to civil or criminal
penalties imposed by law.

 

(d)                                 Each of the parties
hereto shall retain this Agreement for a period of four (4) years
following the calendar year during which Closing occurs.

 

16.3                         Survival/Merger.  Except for the provisions of this Agreement
which are explicitly stated to survive the Closing or are otherwise expressly
stated to be post-Closing obligations or requirements hereunder, (a) none
of the terms of this Agreement shall survive the Closing, and (b) the
delivery of the Purchase Price, the Deed and the other Closing Documents and
the acceptance thereof shall effect a merger, and be deemed the full
performance and discharge of every obligation on the part of Buyer and Seller
to be performed hereunder.

 

16.4                         Integration;
Waiver.  This Agreement, together
with the Exhibits hereto, embodies and constitutes the entire understanding
between the parties with respect to the Transaction and all prior agreements,
understandings, representations and statements, oral or written, are merged
into this Agreement.  Neither this
Agreement nor any provision hereof may be waived, modified, amended, discharged
or terminated except by an instrument signed by the party against whom the
enforcement of such waiver, modification, amendment, discharge or termination
is sought, and then only to the extent set forth in such instrument.  No waiver by either party hereto of any
failure or refusal by the other party to comply with its obligations hereunder
shall be deemed a waiver of any other or subsequent failure or refusal to so
comply.

 

16.5                         Governing
Law.  This Agreement shall be
governed by, and construed in accordance with, the law of the State in which
the Property is located.

 

16.6                         Captions
Not Binding; Exhibits.  The captions
in this Agreement are inserted for reference only and in no way define,
describe or limit the scope or intent of this Agreement or of 

 

39

 

any of the provisions hereof.  All Exhibits attached hereto shall be
incorporated by reference as if set out herein in full.

 

16.7                       Binding Effect.  This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns.

 

16.8                       Severability.  If any term or provision of this Agreement or
the application thereof to any persons or circumstances shall, to any extent,
be invalid or unenforceable, the remainder of this Agreement or the application
of such term or provision to persons or circumstances other than those as to
which it is held invalid or unenforceable shall not be affected thereby, and
each term and provision of this Agreement shall be valid and enforced to the
fullest extent permitted by law.

 

16.9                       Notices.  Any notice, request, demand, consent,
approval and other communications under this Agreement shall be in writing, and
shall be deemed duly given or made at the time and on the date (i) when
received by facsimile or by e-mail (provided, however, that with a notice
delivered by email, such notice is also delivered by one of the other methods
permitted under this Section) or (ii) when personally delivered as shown
on a receipt therefor (which shall include delivery by a nationally recognized
overnight delivery service) or (iii) when delivered after being mailed by
prepaid registered or certified mail, return receipt requested, in each case to
the address for each party set forth below, or upon refusal to accept delivery
of such notice.  Any party, by written
notice to the other in the manner herein provided, may designate an address
different from that set forth below.

 

IF TO BUYER:

 

Adobe Systems
Incorporated

345 Park Avenue

San Jose, CA 95110

Attention:  Director of Real Estate
Facilities

Telephone:                                    (408)
536-6444

Telecopy:                                           (408)
536-6616

E-Mail Address:  rknox@adobe.com

 

COPY TO:

 

Adobe
Systems Incorporated

345 Park Avenue

San Jose, CA 95110

Attention:  Office of General Counsel

Telephone:                                    (408)
536-4553

Telecopy:                                           (408)
537-4060

E-Mail Address:  chouse@adobe.com

 

40

 

and

 

Shartsis Friese
LLP

One Maritime Plaza, 18th Floor

San Francisco, CA 94111

Attention:  David H. Kremer, Esq.

Telephone:                                    (415)
421-6500

Telecopy:                                           (408)
421-2922

E-Mail Address:  dkremer@sflaw.com

 

IF TO
SELLER:

 

Normandy
Real Estate Partners

99 Summer Street

Boston, MA 02109

Attention:  Justin D. Krebs

Telephone:                                    (203)
445-7035

Telecopy:                                           (617)
443-0711

E-Mail Address: 
jkrebs@normandyrealty.com

 

COPY TO:

 

Normandy Real
Estate Partners

1776 On the Green

67 Park Place East, 8th Floor

Morristown, NJ 07960

Attention:  Raymond P. Trevisan

Telephone:                                    (973)
898-1239

Telecopy:                                           (973)
898-1140

E-Mail Address: 
rtrevisan@normandyrealty.com

 

and

 

Goodwin Procter
LLP

Exchange Place

Boston, MA 02109

Attention:  Diane J. McCabe, Esq.

Telephone:                                    (617)
570-1604

Telecopy:                                           (617)
523-1231

E-Mail Address: 
dmccabe@goodwinprocter.com

 

16.10                 Counterparts.  This Agreement may be executed in
counterparts, each of which shall be an original and all of which counterparts
taken together shall constitute one and the same agreement.

 

16.11                 No Recordation.  Seller and Buyer agree that neither this
Agreement nor any memorandum or notice hereof shall be recorded and Buyer
agrees not to file any notice of pendency or other instrument (other than a
judgment) against the Property or any portion thereof 

 

41

 

in connection herewith. 
Notwithstanding the foregoing, if the same is permitted pursuant to
applicable Laws, Buyer shall be entitled to record a notice of lis pendens if Buyer is seeking specific performance of this
Agreement by Seller in accordance with the terms of Section 13.2
hereof.

 

16.12                   Additional
Agreements; Further Assurances. 
Subject to the terms and conditions herein provided, each of the parties
hereto shall execute and deliver such documents as the other party shall
reasonably request in order to consummate and make effective the Transaction;
provided, however, that the execution and delivery of such documents by such
party shall not result in any additional liability or cost to such party.

 

16.13                   Construction.  The parties acknowledge that each party and
its counsel have reviewed and revised this Agreement and 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,
any amendment or modification hereof or any of the Closing Documents.

 

16.14                   Maximum
Aggregate Liability.  Notwithstanding
any provision to the contrary contained in this Agreement or the Closing
Documents, the maximum aggregate liability of the Seller Parties, and the
maximum aggregate amount which may be awarded to and collected by Buyer, in
connection with the Transaction, the Property, under this Agreement and under
all Closing Documents (including, without limitation, in connection with the
breach of any of Seller’s Warranties for which a claim is timely made by Buyer)
shall not exceed $2,500,000 (the “Liability Amount”); provided, however,
that foregoing limitation on liability shall not apply in the case of fraud or
with respect to Sections 13.2(a)  or 13.3(b) with respect to the
return of the Base Building Deposit, payment of the Buyer Change Order Funds,
the payment of the Penalty Amount, if any, and the payment of the Cost
Cap.  The provisions of this section
shall survive the Closing (and not be merged therein) or any earlier
termination of this Agreement.

 

16.15                   Time
of Essence.  Time is of the essence
with respect to this Agreement.

 

16.16                   JURISDICTION.  WITH RESPECT TO ANY SUIT, ACTION OR
PROCEEDINGS RELATING TO THE TRANSACTION, THIS AGREEMENT, THE PROPERTY OR THE
RELATIONSHIP OF BUYER AND SELLER HEREUNDER (“PROCEEDINGS”) EACH PARTY
IRREVOCABLY (A) SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE
COUNTY OF MIDDLESEX, COMMONWEALTH OF MASSACHUSETTS AND THE UNITED STATES
DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS, AND (B) WAIVES ANY
OBJECTION WHICH IT MAY HAVE AT ANY TIME TO THE LAYING OF VENUE OF ANY
PROCEEDINGS BROUGHT IN ANY SUCH COURT, WAIVES ANY CLAIM THAT SUCH PROCEEDINGS
HAVE BEEN BROUGHT IN AN INCONVENIENT FORUM AND FURTHER WAIVES THE RIGHT TO
OBJECT, WITH RESPECT TO SUCH PROCEEDINGS, THAT SUCH COURT DOES NOT HAVE
JURISDICTION OVER SUCH PARTY.  THE
PROVISIONS OF THIS SECTION SHALL SURVIVE THE CLOSING (AND NOT BE MERGED
THEREIN) OR ANY EARLIER TERMINATION OF THIS AGREEMENT.

 

42

 

16.17                   WAIVER
OF JURY TRIAL.  EACH PARTY HEREBY
WAIVES TRIAL BY JURY IN ANY PROCEEDINGS BROUGHT BY THE OTHER PARTY IN
CONNECTION WITH ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THE
TRANSACTION, THIS AGREEMENT, THE PROPERTY OR THE RELATIONSHIP OF BUYER AND
SELLER HEREUNDER.  THE PROVISIONS OF THIS
SECTION SHALL SURVIVE THE CLOSING (AND NOT BE MERGED THEREIN) OR ANY
EARLIER TERMINATION OF THIS AGREEMENT.

 

16.18                   Facsimile
Signatures.  Signatures to this
Agreement transmitted by telecopy shall be valid and effective to bind the
party so signing.  Each party agrees to
promptly deliver an execution original to this Agreement with its actual
signature to the other party, but a failure to do so shall not affect the
enforceability of this Agreement, it being expressly agreed that each party to
this Agreement shall be bound by its own telecopied signature and shall accept
the telecopied signature of the other party to this Agreement.

 

16.19                   Limitation
on Personal Liability.

 

(a)                                  Except as expressly
set forth in this Section 16.19 below, Buyer agrees that it shall not look
to Seller’s directors, officers, employees, shareholders, members, partners,
affiliates or agents, to enforce Buyer’s rights hereunder, and that none of the
directors, officers, employees, shareholders, members, partners, affiliates or
agents of Seller shall have any personal obligation or liability hereunder, and
that Buyer shall not seek to assert any claim or enforce any of Buyer’s rights
hereunder against any directors, officers, employees, shareholders, members,
partners, affiliates or agents of Seller or against any other person,
partnership, limited liability company, corporation or trust, as principal of
Seller, whether disclosed or undisclosed. 
Normandy Real Estate Fund AIV, LP hereby guarantees Seller’s obligations
arising under Section 16.14 up to an amount not to exceed the Liability
Amount.

 

(b)                                 Seller agrees that it
shall not look to Buyer’s directors, officers, employees, shareholders,
members, partners,
affiliates or agents, to enforce Seller’s rights hereunder, and that none of the
directors, officers, employees, shareholders, members, partners, affiliates or
agents of Buyer shall have any personal obligation or liability hereunder, and
that Seller shall not seek to assert any claim or enforce any of Seller’s
rights hereunder against any directors, officers, employees, shareholders,
members, partners, affiliates or agents of Buyer or against any other person,
partnership, limited liability company, corporation or trust, as principal of
Buyer, whether disclosed or undisclosed.

 

(c)                                  The provisions of
this Section 16.19 shall survive the Closing.

 

[Remainder of page intentionally blank]

 

43

 

IN WITNESS WHEREOF, each party hereto has
caused this Agreement to be duly executed to be effective as of the day and
year first above written.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  NP NORMANDY OVERLOOK, LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Jeffrey K. Gronning

  
	
   

  	
  Name: 

  	
  Jeffrey K. Gronning

  
	
   

  	
  Title: 

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
  ADOBE SYSTEMS INCORPORATED,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Mark Garrett

  
	
   

  	
  Name: 

  	
  Mark Garrett

  
	
   

  	
  Title: 

  	
  Executive Vice President & Chief Financial Officer

  
									

 

 

GUARANTY OF NORMANDY REAL ESTATE FUND AIV, LP

 

Acknowledged and agreed
to, solely for the purpose set forth in Section 16.19 of the Agreement,
by:

 

 

	
   

  	
  NORMANDY REAL ESTATE FUND AIV, LP,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Normandy Real Estate Fund GP, L.L.C.,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Normandy Venture Partners I,

  
	
   

  	
   

  	
   

  	
  L.L.C., its managing member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Normandy Venture Partners,

  
	
   

  	
   

  	
   

  	
   

  	
  L.L.C., its manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey K. Gronning

  
	
   

  	
  Name:

  	
  Jeffrey K. Gronning

  
	
   

  	
  Title:

  	
  Managing Member

  

 

44

 

AGREEMENT OF ESCROW AGENT

 

The undersigned has
executed this Agreement solely to confirm its agreement to (a) hold
the Base Building Deposit in escrow in accordance with the provisions hereof
and (b) be bound by the terms of this Agreement
that are applicable to the Escrow Agent in its role as escrow agent pursuant to
this Agreement.

 

In witness whereof, the
undersigned has executed this Agreement as of May 12, 2008.

 

	
   

  	
  FIDELITY NATIONAL TITLE INSURANCE

  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles P. Dattola

  
	
   

  	
  Name:

  	
  Charles P. Dattola

  
	
   

  	
  Title

  	
  V. P.

  
					

 

45

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