Document:

exv10w3

 

Exhibit 10.3

ADVISORY AGREEMENT

Among

HINES REIT PROPERTIES, L.P.,

HINES ADVISORS LIMITED PARTNERSHIP,

and

HINES REAL ESTATE INVESTMENT TRUST, INC.

June __, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 1 DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 2 APPOINTMENT	 	 	5	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 3 DUTIES OF THE ADVISOR	 	 	5	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.01	 	 	Offering Services
	 	 	5	 
	 

	 	 	3.02	 	 	Acquisition Services
	 	 	6	 
	 

	 	 	3.03	 	 	Asset Management Services
	 	 	7	 
	 

	 	 	3.04	 	 	Shareholder Services
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 4 AUTHORITY OF ADVISOR	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	4.01	 	 	General
	 	 	10	 
	 

	 	 	4.02	 	 	Powers of the Advisor
	 	 	11	 
	 

	 	 	4.03	 	 	Approval by Directors
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 6 RECORDS AND FINANCIAL STATEMENTS	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 7 LIMITATION ON ACTIVITIES	 	 	13	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 8 RELATIONSHIP WITH DIRECTORS AND OFFICERS	 	 	14	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 9 FEES	 	 	14	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	9.01	 	 	Acquisition Fees
	 	 	14	 
	 

	 	 	9.02	 	 	Asset Management Fees
	 	 	15	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 10 EXPENSES	 	 	15	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	10.01	 	 	General
	 	 	15	 
	 

	 	 	10.02	 	 	Reimbursement to Advisor
	 	 	18	 
	 

	 	 	10.03	 	 	Reimbursement to Company
	 	 	18	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 11 OTHER SERVICES	 	 	18	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 12 RELATIONSHIP OF ADVISOR AND COMPANY; OTHER ACTIVITIES OF THE ADVISOR	 	 	19	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	12.01	 	 	Relationship
	 	 	19	 
	 

	 	 	12.02	 	 	Time Commitment
	 	 	20	 
	 

	 	 	12.03	 	 	Investment Opportunities and Allocation
	 	 	20	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 13 THE HINES NAME	 	 	20	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 14 TERM AND TERMINATION OF THE AGREEMENT	 	 	21	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	14.01	 	 	Term
	 	 	21	 
	 

	 	 	14.02	 	 	Termination by Either Party
	 	 	21	 
	 

	 	 	14.03	 	 	Termination by the Company
	 	 	22	 
	 

	 	 	14.04	 	 	Termination by the Advisor
	 	 	22	 

i

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 
	 	 	 	 
	 

	 	 	14.05	 	 	Payments on Termination and Survival of Certain Rights and Obligations
	 	 	22	 
	 

	 	 	14.06	 	 	Repurchase of Units
	 	 	23	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 15 ASSIGNMENT	 	 	24	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 16 INDEMNIFICATION AND LIMITATION OF LIABILITY	 	 	24	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	16.01	 	 	Indemnification by the Company
	 	 	24	 
	 

	 	 	16.02	 	 	Indemnification by the Advisor
	 	 	25	 
	 

	 	 	16.03	 	 	Advisor’s Liability
	 	 	26	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 17 MISCELLANEOUS	 	 	28	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	17.01	 	 	Notices
	 	 	28	 
	 

	 	 	17.02	 	 	Modification
	 	 	29	 
	 

	 	 	17.03	 	 	Severability
	 	 	29	 
	 

	 	 	17.04	 	 	Construction
	 	 	29	 
	 

	 	 	17.05	 	 	Entire Agreement
	 	 	29	 
	 

	 	 	17.06	 	 	Waiver
	 	 	29	 
	 

	 	 	17.07	 	 	Gender
	 	 	30	 
	 

	 	 	17.08	 	 	Titles Not to Affect Interpretation
	 	 	30	 
	 

	 	 	17.09	 	 	Counterparts
	 	 	30	 

ii

 

ADVISORY AGREEMENT

     This Advisory Agreement, dated as of June ___, 2006 is among Hines REIT Properties, L.P., a
Delaware limited partnership, Hines Advisors Limited Partnership, a Texas limited partnership and
Hines Real Estate Investment Trust, Inc., a Maryland corporation (the “Agreement”).

W I T N E S S E T H

     WHEREAS, the Company (as hereinafter defined) desires to avail itself of the knowledge,
experience, sources of information, advice, assistance and certain facilities available to the
Advisor (hereinafter defined) and to have the Advisor undertake the duties and responsibilities
hereinafter set forth herein on the terms set forth in this Agreement; and

     WHEREAS, the Advisor is willing to undertake to render such services on the terms and
conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
contained herein, the parties hereto agree as follows:

ARTICLE 1

DEFINITIONS

     The following defined terms used in this Advisory Agreement shall have the meanings specified
below:

     “Acquisition Expenses” has the meaning set forth in the Articles of Incorporation.

     “Advisor” means (i) Hines Advisors Limited Partnership, a Texas limited partnership,
or (ii) any successor advisor to the Company.

 

 

     “Affiliate” has the meaning set forth in the Articles of Incorporation. For the
purposes of this Agreement, the Advisor shall not be deemed to be an Affiliate of the Company, and
vice versa.

     “Articles of Incorporation” means the Articles of Incorporation of the General
Partner, as amended from time to time.

     “Asset” or “Assets” means any and all real estate investments (real, personal
or otherwise), tangible or intangible, owned or held by, or for the account of, the Company,
whether directly or indirectly through another entity or entities, including interests in any
Person or in joint ventures which directly or indirectly own real estate investments.

     “Board of Directors” means the Board Directors of the General Partner.

     “Bylaws” means the bylaws of the General Partner, as amended from time to time.

     “Cash Amount” has the meaning set forth in the Limited Partnership Agreement.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any
successor statute thereto. Reference to any provision of the Code shall mean such provision as in
effect from time to time, as the same may be amended, and any successor provision thereto, as
interpreted by any applicable regulations as in effect from time to time.

     “Company” means Hines REIT Properties, L.P., a Delaware limited partnership. Within
the context of discussions of the operations, business and administration of the Company, the term
“Company” shall mean, collectively, Hines REIT Properties, L. P. and the General Partner for the
purposes of this Agreement.

     “Director” means a member of the Board of Directors of the General Partner.

     “General Partner” means Hines Real Estate Investment Trust, Inc., a Maryland
corporation and general partner of the Company.

2

 

     “Gross Proceeds” has the meaning set forth in the Articles of Incorporation.

     “Hines” means Hines Interests Limited Partnership and its Affiliates.

     “Independent Director” has the meaning set forth in the Articles of Incorporation.

     “Initial Asset Value” means (i) in the case of an Asset other than a mortgage loan,
the gross purchase price of real estate investments acquired directly by the Company, including any
debt attributable to such investments, or the pro rata share of the gross asset value of real
estate investments held by entities in which the Company invests, and (ii) in the case of a
mortgage loan, the total amount of the funds advanced.

     “Limited Partnership Agreement” means the Amended and Restated Limited Partnership
Agreement of Hines REIT Properties, L.P., as the same may be amended and restated from time to
time.

     “Managing Dealer” means Hines Real Estate Securities, Inc., a Delaware corporation, or
such other entity selected by the Board of Directors to act as the managing dealer for the
Offering.

     “Offering” means a public offering of Shares pursuant to any Prospectus.

     “Operating Expenses” has the meaning set forth in the Articles of Incorporation.

     “Organizational and Offering Expenses” has the meaning set forth in the Articles of
Incorporation.

     “Participation Interest” has the meaning set forth in the Limited Partnership
Agreement.

     “Person” means an individual, corporation, partnership, estate, trust, a portion of a
trust permanently set aside for or to be used exclusively for the purposes described in Section
642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the
Code, joint stock company or other entity.

3

 

     “Property Manager” means Hines Interests Limited Partnership, a Texas limited
partnership, or an Affiliate thereof.

     “Property Management and Leasing Agreement” means any Property Management and Leasing
Agreement between the Company and the Property Manager.

     “Prospectus” means the General Partner’s final prospectus for any public offering
within the meaning of Section 2(10) of the Securities Act of 1933, as amended.

     “REIT” means a “real estate investment trust” under Sections 856 through 860 of the
Code.

     “REIT Shares Amount” has the meaning set forth in the Limited Partnership Agreement.

     “Securities” means any class or series of units or shares of the Company or the
General Partner, including common shares or preferred units or shares and any other evidences of
equity or beneficial or other interests, voting trust certificates, bonds, debentures, notes or
other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or
in general any instruments commonly known as “securities” or any certificates of interest, shares
or participations in, temporary or interim certificates for, receipts for, guarantees of, or
warrants, options or rights to subscribe to, purchase or acquire, any of the foregoing.

     “Shares” means shares of common stock of the General Partner, par value $.001 per
share.

     “Shareholders” means the registered holders of the outstanding Shares.

     “Termination Date” means the date of termination of this Agreement.

     “2%/25% Guidelines” has the meaning set forth in the Articles of Incorporation.

     “Units” has the meaning set forth in the Limited Partnership Agreement.

4

 

ARTICLE 2

APPOINTMENT

     The Company hereby appoints the Advisor to serve as its advisor on the terms and conditions
set forth in this Agreement, and the Advisor hereby accepts such appointment.

ARTICLE 3

DUTIES OF THE ADVISOR

     The Advisor is responsible for managing, operating, directing and supervising the operations
and administration of the Company and its Assets to the fullest extent allowed by law. The Advisor
shall, either directly or by engaging an Affiliate or third party, perform the following duties:

     3.01 Offering Services. The Advisor shall manage and supervise:

          (i) Development of the product offering, including the determination of the specific
terms of the Securities to be offered by the General Partner and/or the Company, preparation
of all offering and related documents, and obtaining all required regulatory approvals of
such documents;

          (ii) Along with the Managing Dealer, approval of the participating broker dealers and
negotiation of the related selling agreements;

          (iii) Coordination of the due diligence process relating to participating broker
dealers and their review of any Prospectus and other Offering and Company documents;

          (iv) Preparation and approval of all marketing materials contemplated to be used by the
Managing Dealer or others in the Offering of the General Partner’s Securities;

5

 

          (v) Along with the Managing Dealer, negotiation and coordination with the transfer
agent for the receipt, collection, processing and acceptance of subscription agreements,
commissions, and other administrative support functions;

          (vi) Creation and implementation of various technology and electronic communications
related to the Offering of the General Partner’s Securities; and

          (vii) All other services related to organization of the Company or the Offering,
whether performed and incurred by the Advisor or its Affiliates.

     3.02 Acquisition Services.

          (i) Serve as the Company’s investment and financial advisor and provide relevant market
research and economic and statistical data in connection with the Company’s assets and
investment objectives and policies;

          (ii) Subject to Section 4 hereof and the investment objectives and policies of the
Company: (a) locate, analyze and select potential investments; (b) structure and negotiate
the terms and conditions of transactions pursuant to which investments in Assets will be
made; (c) acquire Assets on behalf of the Company; and (d) arrange for financing related to
acquisitions of Assets;

          (iii) Perform due diligence on prospective investments and create due diligence reports
summarizing the results of such work;

          (iv) Prepare reports regarding prospective investments which include recommendations
and supporting documentation necessary for the Directors to evaluate the proposed
investments;

6

 

          (v) Obtain reports (which may be prepared by the Advisor or its Affiliates), where
appropriate, concerning the value of contemplated investments of the Company; and

          (vi) Negotiate and execute approved investments and other transactions.

     3.03 Asset Management Services.

          (i) Real Estate Services:

            (a) Investigate, select, and, on behalf of the Company, engage and conduct
business with such Persons as the Advisor deems necessary to the proper performance
of its obligations hereunder, including but not limited to consultants, accountants,
lenders, technical advisors, attorneys, brokers, underwriters, corporate
fiduciaries, escrow agents, depositaries, custodians, agents for collection,
insurers, insurance agents, developers, construction companies and any and all
Persons acting in any other capacity deemed by the Advisor necessary or desirable
for the performance of any of the foregoing services;

            (b) Negotiate and service the Company’s debt facilities and other financings;

            (c) Monitor applicable markets and obtain reports (which may be prepared by the
Advisor or its Affiliates) where appropriate, concerning the value of investments of
the Company;

            (d) Monitor and evaluate the performance of investments of the Company; provide
daily management services to the Company and perform

7

 

and supervise the various
management and operational functions related to the Company’s investments;

            (e) Coordinate with the Property Manager on its duties under any Property
Management and Leasing Agreement and assist in obtaining all necessary approvals of
major property transactions as governed by the applicable Property Management and
Leasing Agreement;

            (f) Coordinate and manage relationships between the Company and any joint
venture partners;

            (g) Consult with the officers and Directors of the General Partner and provide
assistance with the evaluation and approval of potential property dispositions,
sales or refinancings;

          (ii) Accounting and Other Administrative Services:

            (a) Manage and perform the various administrative functions necessary for the
management of the day-to-day operations of the Company;

            (b) From time-to-time, or at any time reasonably requested by the Directors,
make reports to the Directors on the Advisor’s performance of services to the
Company under this Agreement;

            (c) Coordinate with the Company’s independent accountants and auditors to
prepare and deliver to the General Partner’s audit committee an annual report covering the Advisor’s compliance with certain
material aspects of this Advisory Agreement;

8

 

            (d) Provide or arrange for administrative services and items, legal and other
services, office space, office furnishings, personnel and other overhead items
necessary and incidental to the Company’s business and operations;

            (e) Provide financial and operational planning services and portfolio
management functions;

            (f) Maintain accounting data and any other information requested concerning the
activities of the Company as shall be required to prepare and to file all periodic
financial reports and returns required to be filed with the Securities and Exchange
Commission and any other regulatory agency, including annual financial statements;

            (g) Maintain all appropriate books and records of the Company;

            (h) Provide tax and compliance services and coordinate with appropriate third
parties, including independent accountants and other consultants, on related tax
matters;

            (i) Supervise the performance of such ministerial and administrative functions
as may be necessary in connection with the daily operations of the Assets;

            (j) Provide the Company with all necessary cash management services;

            (k) Manage and coordinate with the transfer agent the quarterly dividend
process and payments to shareholders;

9

 

            (l) Consult with the officers and Directors of the General Partner and assist
the Directors in evaluating and obtaining adequate insurance coverage based upon
risk management determinations;

            (m) Provide the officers and Directors of the General Partner with timely
updates related to the overall regulatory environment affecting the Company, as well
as managing compliance with such matters, including but not limited to compliance
with the Sarbanes-Oxley Act of 2002;

            (n) Consult with the officers and Directors of the General Partner and the
Board of Directors relating to the corporate governance structure and appropriate
policies and procedures related thereto; and

            (o) Perform all reporting, record keeping, internal controls and similar
matters in a manner to allow the General Partner to comply with applicable law
including the Sarbanes-Oxley Act.

     3.04 Shareholder Services.

          (i) Manage communications with shareholders, including answering phone calls, preparing
and sending written and electronic reports and other communications; and

          (ii) Establish technology infrastructure to assist in providing shareholder support and
service.

ARTICLE 4

AUTHORITY OF ADVISOR

     4.01 General. All rights and powers to manage and control the day-to-day business and
affairs of the Company shall be vested in the Advisor to the fullest extent allowed by law. The

10

 

Advisor shall have the power to delegate all or any part of its rights and powers to manage and
control the business and affairs of the Company to such officers, employees, Affiliates, agents and
representatives of the Advisor or the Company as it may from time to time deem appropriate. Any
authority delegated by the Advisor to any other Person shall be subject to applicable law and the
limitations on the rights and powers of the Advisor specifically set forth in this Agreement or the
Articles of Incorporation.

     4.02 Powers of the Advisor. Subject to the express limitations set forth in this
Agreement, the power to direct the management, operation and policies of the Company shall to the
fullest extent allowed by law be vested in the Advisor, which shall have the power by itself and
shall be authorized and empowered on behalf and in the name of the Company to carry out any and all
of the objectives and purposes of the Company and to perform all acts and enter into and perform
all contracts and other undertakings that it may in its sole discretion deem necessary, advisable
or incidental thereto to perform its obligations under this Agreement.

     4.03 Approval by Directors.

          (i) Notwithstanding the foregoing any investment in Assets, including any acquisition
of an Asset by the Company or any investment by the Company in a joint venture, limited
partnership or similar entity owning real properties, will require
the prior approval of the Board of Directors. The Advisor will deliver to the Board of
Directors all documents required by it to properly evaluate the proposed investment.

          (ii) If the Articles of Incorporation require that a transaction be approved by the
Independent Directors, the Advisor will deliver to the Independent Directors all documents
required by them to properly evaluate the proposed investment in

11

 

the Asset. The prior approval of a majority of the Independent Directors will be required for each transaction
between the Company and the Advisor or its Affiliates.

ARTICLE 5

BANK ACCOUNTS

     The Advisor will maintain one or more bank accounts in the name of the Company and will
collect and deposit into any such account or accounts, and disburse from any such account or
accounts, any money on behalf of the Company. Notwithstanding the foregoing, no funds shall be
commingled with the funds of the Advisor.

ARTICLE 6

RECORDS AND FINANCIAL STATEMENTS

     Advisor, in the conduct of its responsibilities to the Company, shall maintain adequate and
separate books and records for the Company’s operations in accordance with United States generally
accepted accounting principles (“GAAP”), which shall be supported by sufficient
documentation to ascertain that such books and records are properly and accurately recorded. Such
books and records shall be the property of the Company. Such books and records shall include all
information necessary to calculate and audit the fees or reimbursements paid under this Agreement.
Advisor shall utilize procedures to attempt to ensure such control over accounting and financial
transactions as is reasonably required to protect the Company’s assets from theft,
error or fraudulent activity. All financial statements Advisor delivers to the Company shall be
prepared on an accrual basis in accordance with GAAP, except for special financial reports which by
their nature require a deviation from GAAP. Advisor shall maintain necessary liaison with the
Company’s independent accountants and shall provide such accountants with such reports and other
information as the Company shall request.

12

 

ARTICLE 7

LIMITATION ON ACTIVITIES

     Notwithstanding any provision in this Agreement to the contrary, the Advisor shall not take
any action which, in its sole judgment made in good faith, would (i) adversely affect the ability
of the General Partner to qualify or continue to qualify to be taxed as a REIT, (ii) subject the
Company or the General Partner to regulation under the Investment Company Act of 1940, as amended,
(iii) violate any law, rule or regulation of any governmental body or agency having jurisdiction
over the Company, the General Partner or their Securities, or (iv) violate the Articles of
Incorporation or Bylaws. In the event an action that would violate (i) through (iv) of the
preceding sentence but such action has been ordered by the Board of Directors acting on behalf of
the General Partner, the Advisor shall notify the Board of Directors of the Advisor’s judgment of
the potential impact of such action and shall refrain from taking such action until it receives
further clarification or instructions from the Board of Directors. In such event the Advisor
shall, to the fullest extent allowed by law, have no liability for acting in accordance with the
specific instructions of the Board of Directors so given. Notwithstanding the foregoing, none of
the Advisor, its Affiliates and none of their managers, directors, officers, employees and
equityholders, shall be liable to the Company, the General Partner, the Board of Directors or the
Shareholders for any act or omission by such Persons or individuals, except as provided in this
Agreement. THE PARTIES HERETO INTEND THAT THE LIMITATION OF LIABILITY SET FORTH IN THIS SECTION BE
CONSTRUED AND APPLIED AS WRITTEN NOTWITHSTANDING ANY RULE OF CONSTRUCTION TO THE CONTRARY. WITHOUT
LIMITING THE FOREGOING, THE LIMITATION OF LIABILITY SHALL, TO THE FULLEST EXTENT ALLOWED BY LAW,
APPLY

13

 

NOTWITHSTANDING ANY STATE’S “EXPRESS NEGLIGENCE RULE” OR SIMILAR RULE THAT WOULD DENY
COVERAGE BASED ON A PERSON’S SOLE, CONCURRENT OR CONTRIBUTORY ACTIVE OR PASSIVE NEGLIGENCE, GROSS
NEGLIGENCE OR STRICT LIABILITY. IT IS THE INTENT OF THE PARTIES THAT, TO THE EXTENT PROVIDED IN
THIS SECTION, THE LIMITATION OF LIABILITY SET FORTH HEREIN SHALL, TO THE FULLEST EXTENT ALLOWED BY
LAW, APPLY TO A PERSON’S SOLE, CONCURRENT OR CONTRIBUTORY ACTIVE OR PASSIVE NEGLIGENCE, GROSS
NEGLIGENCE OR STRICT LIABILITY. THE PARTIES AGREE THAT THIS PROVISION IS “CONSPICUOUS” FOR
PURPOSES OF ALL STATE LAWS.

ARTICLE 8

RELATIONSHIP WITH DIRECTORS AND OFFICERS

     Managers, Directors, officers and employees of the Advisor or any direct or indirect Affiliate
of the Advisor may serve as a Director and as officers of the General Partner, except that no
manager, director, officer or employee of the Advisor or any of its Affiliates who also is a
Director or officer of the General Partner shall receive any compensation from the Company or
General Partner for serving as a Director or officer other than reasonable reimbursement for travel
and related expenses incurred in attending meetings of the Board of Directors.

ARTICLE 9

FEES

     9.01 Acquisition Fees. The Company will pay the Advisor in cash as compensation for
services described in Section 3.02 an acquisition fee of 0.50% of the Initial Asset Value of each
Asset acquired by the Advisor as well as reimburse the Company for all out-of-pocket third-party

14

 

expenses incurred by the Advisor in connection with such services as required by Article 10. The
amount of such acquisition fees shall be subject to any limitations contained in the Articles of
Incorporation. The Advisor shall submit an invoice to the Company following the closing or closings
of each acquisition, accompanied by a computation of the fee. The fee shall be payable within ten
business days after receipt of the invoice by the Company.

     9.02 Asset Management Fees. The Company will pay the Advisor in cash as compensation for
services described in Section 3.03 an asset management fee in accordance with this Section 9.02 as
well as reimburse the Advisor for all out-of-pocket third-party expenses incurred by the Advisor in
connection with such services as required by Article 10. Subject to any limitations contained in
the Articles of Incorporation, this asset management fee shall be earned monthly and the amount of
this asset management fee payable by the Company to the Advisor shall equal 0.0625% multiplied by
the net equity invested in real estate investments as of the end of the applicable month. The
Advisor shall submit a monthly invoice to the Company, accompanied by a computation of the asset
management fee for the applicable period. The asset management fee shall be payable within ten
business days after receipt of the invoice by the Company.

ARTICLE 10

EXPENSES

     10.01 General. In addition to the compensation paid to the Advisor pursuant to Article 9
hereof, the Company shall pay directly or reimburse the Advisor for all of the expenses paid or
incurred by the Advisor or Affiliates in connection with the services provided to the Company
pursuant to this Agreement, including, but not limited to:

15

 

          (i) all Organizational and Offering Expenses; provided, however, that the Company shall
at no time reimburse the Advisor for any Organizational and Offering Expenses reimbursements
pursuant to this Article 10 to the extent that such reimbursement would violate Section 9.6
of the Articles of Incorporation. Additionally, the Advisor will provide the Independent
Directors upon request a summary of Organizational and Offering Expenses incurred prior to
the date of such request. The Company shall not reimburse the Advisor for any
Organizational and Offering Expenses a majority of the Independent Directors decide are not
fair and commercially reasonable to the Company.

          (ii) Acquisition Expenses incurred in connection with the selection and acquisition of
Assets including such expenses incurred related to assets pursued or considered but not
ultimately acquired by the Company;

          (iii) the actual out-of-pocket cost of goods and services used by the Company or the
General Partner and obtained from entities not Affiliated with the Advisor, including
brokerage fees paid in connection with the purchase and sale of Assets;

          (iv) taxes and assessments on income or Assets and taxes as an expense of doing
business and any other taxes otherwise imposed on the Company and its business or income;

          (v) out-of-pocket costs associated with insurance required in connection with the
business of the Company or by its officers and Directors;

          (vi) all out-of-pocket expenses in connection with payments to the Board of Directors
and meetings of the Board of Directors and Shareholders;

16

 

          (vii) personnel and related employment direct costs incurred by the Advisor or
Affiliates (a) in performing the services described in Sections 3.01 and 3.04 or (b) as
otherwise approved by Independent Directors, including but not limited to salary, benefits,
burdens and overhead of all employees directly involved in the performance of such services,
plus all out-of-pocket costs incurred;

          (viii) out-of-pocket expenses of maintaining communications with Shareholders,
including the cost of preparation, printing, and mailing annual reports and other
Shareholder reports, proxy statements and other reports required by governmental entities;

          (ix) audit, accounting and legal fees, and other fees for professional services
relating to the operations of the Company and all such fees incurred at the request, or on
behalf of, the Independent Directors or any committee of the Board of Directors;

          (x) out-of-pocket costs for the Company to comply with all applicable laws, regulation
and ordinances; and

          (xi) all other out-of-pocket costs necessary for the operation of the Company and its
Assets incurred by the Advisor in performing its duties hereunder.

     Except as specifically provided for above in (i) and (vii) related to Organization and
Offering Expenses, shareholder services expenses and other expenses, or as contemplated by Article
11, the expenses and payments subject to reimbursement by the Company in this Section 10.01 do not
include personnel and related direct employment or overhead costs of the Advisor or Affiliates.
The Company shall also reimburse the Advisor or Affiliates of the Advisor for all expenses incurred
on behalf of the Company or the General Partner prior to the execution of this Agreement.

17

 

     10.02 Reimbursement to Advisor. Expenses incurred by the Advisor on behalf of the Company
and payable pursuant to this Section 10 shall be reimbursed to the Advisor within 10 days after the
Advisor provides the Company with an invoice and supporting documentation relating to such
reimbursement.

     10.03 Reimbursement to Company. The Company shall not reimburse the Advisor during any
fiscal quarter for Operating Expenses that, in the four consecutive fiscal quarters then ended (the
“Expense Year”), exceed the 2%/25% Guidelines for such year (the “Excess Amount”),
unless the Independent Directors determine that such excess was justified, based on unusual and
non-recurring factors which they deem sufficient, in which case the Excess Amount may be
reimbursed. Any Excess Amount paid to the Advisor during a fiscal quarter without the Independent
Directors determining that such expenses were justified shall be repaid to the Company. Within 60
days after the end of any fiscal quarter of the Company for which total Operating Expenses for the
Expense Year exceed the 2%/25% Guidelines and the Independent Directors determined that such
expenses were justified, there shall be sent to the Shareholders a written disclosure of such fact,
together with an explanation of the factors the Independent Directors considered in determining
that such excess expenses were
justified. Such determination shall be reflected in the minutes of the meetings of the Board of
Directors. The Company will not reimburse the Advisor or its Affiliates for services for which the
Advisor or its Affiliates are entitled to compensation in the form of a separate fee.

ARTICLE 11

OTHER SERVICES

     Should (i) the General Partner request that the Advisor or any manager, officer or employee
thereof render services for the Company other than as set forth in this Agreement or

18

 

(ii) there are
changes to the regulatory environment in which the Advisor or Company operates that would increase
significantly the level of services performed such that the costs and expenses borne by the Advisor
for which the Advisor is not entitled to separate reimbursement for personnel and related
employment direct costs and overhead under Article 10 of this Agreement would increase
significantly, such services shall be separately compensated at such rates and in such amounts as
are agreed by the Advisor and the Independent Directors, subject to the limitations contained in
the Articles of Incorporation, and shall not be deemed to be services pursuant to the terms of this
Agreement.

ARTICLE 12

RELATIONSHIP OF ADVISOR AND COMPANY; OTHER ACTIVITIES OF THE ADVISOR

     12.01 Relationship. To the fullest extent allowed by law, the Company and the Advisor are
not partners or joint venturers with each other, and nothing in this Agreement shall be construed
to make them such partners or joint venturers. Nothing herein contained shall prevent the Advisor
from engaging in other activities, including, without limitation, the rendering of advice to other
Persons and the management of other programs advised, sponsored or organized by the Advisor or its
Affiliates. Nor shall this Agreement limit or restrict the right of any manager, director, officer, employee,
or equityholder of the Advisor or its Affiliates to engage in any other business or to render
services of any kind to any other Person. The Advisor may, with respect to any investment in which
the Company is a participant, also render advice and service to each and every other participant
therein. The Advisor shall promptly disclose to the Board of Directors the existence of any
condition or circumstance, existing or anticipated, of which it has knowledge, which creates or
could create a conflict of interest between the Advisor’s obligations to the Company and its
obligations to or its interest in any other Person.

19

 

     12.02 Time Commitment. The Advisor shall, and shall cause its Affiliates and their
respective employees, officers and agents to, devote to the Company such time as shall be
reasonably necessary to conduct the business and affairs of the Company in an appropriate manner
consistent with the terms of this Agreement. The Company acknowledges that the Advisor and other
Affiliates of Hines and their respective employees, officers and agents may also engage in
activities unrelated to the Company and may provide services to Persons other than the Company or
any of its Affiliates.

     12.03 Investment Opportunities and Allocation. The Advisor shall be required to use
commercially reasonable efforts to present a continuing and suitable investment program to the
Company which is consistent with the investment policies and objectives of the Company, but neither
the Advisor nor any Affiliate of the Advisor shall be obligated generally to present any particular
investment opportunity to the Company even if the opportunity is of character which, if presented
to the Company, could be taken by the Company. In the event an investment opportunity is located,
the allocation procedure set forth under the caption “Conflicts of Interest—Competitive Activities
of Hines and its Affiliates” in any
Prospectus (as may be amended from time to time) shall govern the allocation of the opportunity
among the Company and Affiliates of the Advisor.

ARTICLE 13

THE HINES NAME

     The Advisor, Hines and their Affiliates have a proprietary interest in the name “Hines”. The
Advisor hereby grants to the Company a non-transferable, non-assignable, non-exclusive royalty-free
right and license to use the name “Hines” during the term of this Agreement. Accordingly, and in
recognition of this right, if at any time the Company ceases to retain Hines or

20

 

an Affiliate thereof to perform the services of Advisor, the Company (including the General Partner) will, promptly after receipt of written
request from Hines, cease to conduct business under or use the name “Hines” or any derivative thereof and the Company and the General
Partner shall change the name of the Company and the General Partner to a name that does not contain the name “Hines” or any other word
or words that might, in the reasonable discretion of the Advisor, be susceptible of indication of some form of relationship between the Company
and the Advisor or any Affiliate thereof. At such time, the Company will also make any changes to any trademarks, servicemarks or other marks
necessary to remove any references to the word “Hines”. Consistent with the foregoing, it is specifically recognized that the Advisor or one or more
of its Affiliates has in the past and may in the future organize, sponsor or otherwise permit to exist other investment vehicles
(including vehicles for investment in real estate) and financial and service organizations having “Hines” as a part of their name,
all without the need for any consent (and without the right to object thereto) by the Company or the General Partner.

ARTICLE 14

TERM AND TERMINATION OF THE AGREEMENT

     14.01 Term.
This Agreement shall have an initial term of one year from the date of the
Agreement. This Agreement may be renewed for an unlimited number of successive one-year terms upon
mutual consent of the parties. Any such renewal must be approved by a majority of the Independent
Directors. The General Partner (through the Independent Directors) will evaluate the performance
of the Advisor annually before renewing the Agreement, and each such renewal shall be for a term of
no more than one year.

     14.02 Termination by Either Party.
This Agreement may be terminated upon 60 days’ written
notice without cause or penalty by either party.

21

 

     14.03 Termination by the Company.
This Agreement may be terminated immediately by the
Company upon (i) any fraudulent conduct, criminal conduct, willful misconduct or the negligent
breach of fiduciary duty of or by the Advisor, (ii) a material breach of this Agreement by the
Advisor not cured within 10 business days after the Advisor receives written notice of such breach,
or (iii) an event of the bankruptcy of the Advisor or commencement of any bankruptcy or similar
insolvency proceedings of the Advisor.

     14.04 Termination by the Advisor.
This Agreement may be terminated immediately by the Advisor in the event of (i) the bankruptcy of
the Company or commencement of any bankruptcy or similar insolvency proceedings of the Company, or
(ii) any material breach of this Agreement by the Company not cured by the Company within 10 days
after written notice thereof.

     14.05 Payments on Termination and Survival of Certain Rights and Obligations.
Payments to
the Advisor pursuant to this Section 14.05 shall be subject to the 2%/25% Guidelines to the extent
applicable.

          (i) After the Termination Date, the Advisor shall not be entitled to compensation for
further services hereunder except it shall be entitled to receive from the Company within 30
days after the effective date of such termination all unpaid reimbursements of expenses and
all earned but unpaid fees payable to the Advisor prior to termination of this Agreement.

          (ii) The Advisor shall promptly upon termination:

               (a) pay over to the Company all money collected pursuant to this Agreement, if
any, after deducting any accrued compensation and reimbursement for its expenses to
which it is then entitled;

22

 

               (b) deliver to the Directors a full accounting, including a statement showing
all payments collected by it and a statement of all money held by it, covering the
period following the date of the last accounting furnished to the Directors;

               (c) deliver to the Directors all assets and documents of the Company then in
the custody of the Advisor; and

               (d) cooperate with the Company to provide an orderly transition of advisory
functions.

Upon the expiration or termination of this Agreement, neither party shall have any further rights
or obligations under this Agreement, except that Articles 13, 16 and 17 shall survive the
termination or expiration of this Agreement.

     14.06 Repurchase of Units.
In the event this Agreement expires without the consent of the
Advisor, or is terminated for any reason other than by the Advisor pursuant to Section 14.02 or
Section 14.04, the Company shall (to the fullest extent funds are legally available for such
purpose) at the election of the Advisor or any of its Affiliates and at any time (and from time to
time) after the effective date of such expiration or termination, purchase all or a portion of the
Units or Participation Interest (as applicable) held by the Advisor and its Affiliates. The
purchase price shall be paid in cash or, at the election of the seller, Shares, and shall be
payable within 120 days after the Advisor or its Affiliates (as applicable) gives the Company
written notice of its desire to sell all or a portion of the Units or Participation Interest held
by such Person to the Company. The General Partner agrees to keep a sufficient number of
authorized but unissued Shares available for issuance pursuant to this Section 14.06 and shall
issue Shares as may be required hereunder. The purchase price of each interest in the Company
pursuant to

23

 

this Section 14.06 shall be (i) in the event the seller elects to receive cash, the
Cash Amount the seller would receive under a redemption of such interests under Section 3.2 of the
Limited Partnership Agreement assuming the Company paid cash for such redemption, or (ii) in the
event the seller elects to receive Shares, the REIT Shares Amount the seller would receive under a
redemption of such interests
under Section 3.2 of the Limited Partnership Agreement assuming the Company paid Shares for such
redemption.

ARTICLE 15

ASSIGNMENT

     This Agreement may be assigned by the Advisor to an Affiliate with the consent of the General
Partner by approval of a majority of the Independent Directors. The Advisor may assign any rights
to receive fees or other payments under this Agreement without obtaining the approval of the Board
of Directors. This Agreement shall not be assigned by the Company without the consent of the
Advisor.

ARTICLE 16

INDEMNIFICATION AND LIMITATION OF LIABILITY

               16.01 Indemnification by the Company. The Company shall indemnify and hold harmless
the Advisor and its Affiliates, including their respective managers, officers, directors, partners
and employees, from all liability, claims, damages or losses arising in the performance of their
duties hereunder, and related expenses, including reasonable attorneys’ fees, to the extent such
liability, claims, damages or losses and related expenses are not fully reimbursed by insurance,
subject to any limitations imposed by the laws of the State of Texas, the Articles of Incorporation
or Agreement of Limited Partnership of the Company, provided that: (i) the Advisor and its
Affiliates have determined that the course of conduct which caused the loss or

24

 

liability was in the
best interests of the Company, (ii) the Advisor and its Affiliates were acting on behalf of or
performing services for the Company, (iii) the indemnified claim was not the result of negligence,
misconduct, or fraud of the indemnified person or resulted from a breach of the agreement by the
Advisor, and (iv) in the event the loss , liability or expense arises from or out of an
alleged violation of federal or state securities laws by the Advisor or its Affiliates, the
conditions set forth in at least one of clauses (X), (Y) or (Z) of Section 12.2(b) of the Articles
of Incorporation must be satisfied (deeming, for purposes of this Agreement, that the Advisor or
its Affiliates are each an “Indemnitee” as such term is used in such clauses) for the Company to
provide such indemnification. Any indemnification of the Advisor may be made only out of the net
assets of the Company and not from the Shareholders.

     16.02 Indemnification by the Advisor.
The Advisor shall indemnify and hold harmless
the Company from contract or other liability, claims, damages, taxes or losses and related
expenses, including attorneys’ fees, to the extent that such liability, claims, damages, taxes or
losses and related expenses are not fully reimbursed by insurance and are incurred by reason of the
Advisor’s bad faith, fraud, willful misconduct or reckless disregard of its duties, but the Advisor
shall not be held responsible for any action of the Board of Directors in following or declining to
follow any of the Advisor’s advice or recommendation. THE PARTIES HERETO INTEND THAT THE
INDEMNITIES SET FORTH IN THIS AGREEMENT BE CONSTRUED AND APPLIED AS WRITTEN NOTWITHSTANDING ANY
RULE OF CONSTRUCTION TO THE CONTRARY. WITHOUT LIMITING THE FOREGOING, THE INDEMNITIES SHALL, TO
THE FULLEST EXTENT ALLOWED BY LAW, AND TO THE EXTENT PROVIDED IN THIS AGREEMENT, APPLY
NOTWITHSTANDING ANY STATE’S “EXPRESS NEGLIGENCE RULE” OR SIMILAR RULE THAT

25

 

WOULD DENY COVERAGE
BASED ON AN INDEMNIFIED PERSON’S SOLE, CONCURRENT OR CONTRIBUTORY ACTIVE OR PASSIVE NEGLIGENCE OR
STRICT LIABILITY OR
GROSS NEGLIGENCE. IT IS THE INTENT OF THE PARTIES THAT, TO THE EXTENT PROVIDED IN THIS
AGREEMENT, THE INDEMNITIES SET FORTH HEREIN SHALL, TO THE FULLEST EXTENT ALLOWED BY LAW, APPLY TO
AN INDEMNIFIED PERSON’S SOLE, CONCURRENT OR CONTRIBUTORY ACTIVE OR PASSIVE NEGLIGENCE OR STRICT
LIABILITY OR GROSS NEGLIGENCE. THE PARTIES AGREE THAT THIS PROVISION IS “CONSPICUOUS” FOR PURPOSES
OF ALL STATE LAWS.

     16.03 Advisor’s Liability

          (i) Notwithstanding any other provisions of this Agreement, in no event shall the
Company make any claim against Advisor, or its Affiliates, on account of any good faith
interpretation by Advisor of the provisions of this Agreement (even if such interpretation
is later determined to be a breach of this Agreement) or any alleged errors in judgment made
in good faith and in accordance with this Agreement in connection with the operation of the
operations of the Company hereunder by Advisor or the performance of any advisory or
technical services provided by or arranged by the Advisor. The provisions of this Section
16.3(a) shall not be deemed to release Advisor from liability for its gross negligence.

          (ii) The Company shall not object to any expenditures made by the Advisor in good faith
in the course of its performance of its obligations under this Agreement or in settlement of
any claim arising out of the operation of the Company unless such

26

 

expenditure is
specifically prohibited by this Agreement. The provisions of this Section 16.03(b) shall
not be deemed to release Advisor from liability for its gross negligence.

          (iii) IN NO EVENT WILL EITHER PARTY BE LIABLE FOR DAMAGES BASED ON LOSS OF INCOME,
PROFIT OR SAVINGS OR INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, PUNITIVE OR SPECIAL
DAMAGES OF THE OTHER PARTY OR PERSON, INCLUDING THIRD PARTIES, EVEN IF SUCH PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES IN ADVANCE, AND ALL SUCH DAMAGES ARE EXPRESSLY
DISCLAIMED. IN NO EVENT WILL ADVISOR’S AGGREGATE LIABILITY UNDER THIS AGREEMENT EVER EXCEED
THE TOTAL AMOUNT OF FEES IT ACTUALLY RECEIVES FROM THE COMPANY PURSUANT TO ARTICLE 9.

          (iv) THE PARTIES HERETO INTEND THAT THE RELEASE FROM LIABILITY SET FORTH IN SECTION
16.03 BE CONSTRUED AND APPLIED AS WRITTEN NOTWITHSTANDING ANY RULE OF CONSTRUCTION TO THE
CONTRARY. WITHOUT LIMITING THE FOREGOING, THE RELEASE FROM LIABILITY SHALL, TO THE

27

 

FULLEST
EXTENT ALLOWED BY LAW, APPLY NOTWITHSTANDING ANY STATE’S “EXPRESS NEGLIGENCE RULE” OR
SIMILAR RULE THAT WOULD DENY COVERAGE BASED ON A PERSON’S SOLE, CONCURRENT OR CONTRIBUTORY
ACTIVE OR PASSIVE NEGLIGENCE OR STRICT LIABILITY. IT IS THE INTENT OF THE PARTIES THAT, TO
THE EXTENT PROVIDED IN SECTION 16.03, THE RELEASE FROM LIABILITY SET FORTH HEREIN SHALL, TO
THE FULLEST EXTENT ALLOWED BY LAW, APPLY TO A RELEASED PERSON’S SOLE, CONCURRENT OR
CONTRIBUTORY ACTIVE OR PASSIVE
NEGLIGENCE OR STRICT LIABILITY. THE PARTIES AGREE THAT THIS PROVISION IS “CONSPICUOUS” FOR
PURPOSES OF ALL STATE LAWS.

ARTICLE 17

MISCELLANEOUS

     17.01 Notices.
Any notice, report or other communication required or permitted to be given
hereunder shall be in writing unless some other method of giving such notice, report or other
communication is required by the Articles of Incorporation, the Bylaws, or accepted by the party to
whom it is given, and shall be given by being delivered by hand or by overnight mail or other
overnight delivery service to the addresses set forth herein:

To the Company, the General Partner or the Directors:

Hines REIT Properties, L.P.

c/o Hines Real Estate Investment Trust, Inc.

2800 Post Oak Blvd., Suite 5000

Houston, Texas 77056

To the Advisor:

Hines Advisors Limited Partnership

2800 Post Oak Blvd., Suite 5000

Houston, Texas 77056

     Either party may at any time give notice in writing to the other party of a change in its
address for the purposes of this Section 17.01.

28

 

     17.02 Modification.
This Agreement shall not be changed, modified, terminated, or
discharged, in whole or in part, except by an instrument in writing signed by both parties hereto,
or their respective successors or assignees.

     17.03 Severability.
The provisions of this Agreement are independent of and severable from
each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of
the fact that for any reason any other or others of them may be invalid or unenforceable in whole
or in part.

     17.04 Construction.
The provisions of this Agreement shall be construed and interpreted in
accordance with the laws of the State of Texas.

     17.05 Entire Agreement.
This Agreement contains the entire agreement and understanding
among the parties hereto with respect to the subject matter hereof, and supersedes all prior and
contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or
written, of any nature whatsoever with respect to the subject matter hereof. The express terms
hereof control and supersede any course of performance and/or usage of the trade inconsistent with
any of the terms hereof. This Agreement may not be modified or amended other than by an agreement
in writing.

     17.06 Waiver.
Neither the failure nor any delay on the part of a party to exercise any
right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall
any single or partial exercise of any right, remedy, power or privilege preclude any other or
further exercise of the same or of any other right, remedy, power or privilege, nor shall any
waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a
waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver

29

 

shall be effective unless it is in writing and is signed by the party asserted to have granted such
waiver.

     17.07 Gender.
Words used herein regardless of the number and gender specifically used,
shall be deemed and construed to include any other number, singular or plural, and any other
gender, masculine, feminine or neuter, as the context requires.

     17.08 Titles Not to Affect Interpretation.
The titles of Articles and Sections contained
in this Agreement are for convenience only, and they neither form a part of this Agreement nor are
they to be used in the construction or interpretation hereof.

     17.09 Counterparts.
This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original as against any party whose signature appears thereon, and
all of which shall together constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts hereof, individually or taken together, shall bear the
signatures of all of the parties reflected hereon as the signatories

[The remainder of this page is intentionally left blank. Signature page follows.]

30

 

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

	 	 	 	 	 	 	 	 	 
	 	 	Hines REIT Properties, L.P.
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Hines Real Estate Investment Trust, Inc.
	 	 	Its:	 	General Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Hines Advisors Limited Partnership
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Hines Advisors GP LLC
	 	 	Its:	 	General Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Hines Real Estate Investment Trust, Inc.
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 

31exv10w64

 

Exhibit 10.64

CONTRACT OF SALE

BY AND BETWEEN

SUMITOMO LIFE REALTY (N.Y.), INC.

AND

HINES ONE ATLANTIC CENTER LP

May 18, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Page
	SECTION 1.	 	Purchase and Sale	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SECTION 2.	 	Purchase Price	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SECTION 3.	 	Payment of Purchase Price	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	3.1	 	 	Deposit	 	 	2	 
	 	 	 	3.2	 	 	Closing Payment	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SECTION 4.	 	Title Matters; Investigations, Estoppel Certificates, Conditions Precedent	 	 	3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	4.1	 	 	Title Matters	 	 	3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	4.1.1	 	 	Title to the Property
	 	 	3	 
	 

	 	 	 	 	 	 	4.1.2	 	 	Permitted Exceptions to Title
	 	 	5	 
	 

	 	 	 	 	 	 	4.1.3	 	 	Survey
	 	 	5	 
	 

	 	 	 	 	 	 	4.1.4	 	 	Endorsement to Owner’s Policy
	 	 	6	 
	 

	 	 	 	 	 	 	4.1.5	 	 	Assumption of Title Obligations
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	4.2	 	 	Investigations	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	4.2.1	 	 	Property Reports
	 	 	9	 
	 

	 	 	 	 	 	 	4.2.2	 	 	Cooperation with Purchaser’s Auditors and SEC Filing Requirements
	 	 	9	 
	 

	 	 	 	 	 	 	4.2.3	 	 	Purchaser’s Obligation to Close not Contingent on Investigations
	 	 	10	 
	 

	 	 	 	 	 	 	4.2.4	 	 	Property Information and Confidentiality
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	4.3	 	 	Tenant Estoppel Certificates	 	 	12	 
	 	 	 	4.4	 	 	MARTA	 	 	13	 
	 	 	 	4.5	 	 	Easement and Tunnel Agreement	 	 	15	 
	 	 	 	4.6	 	 	Extension of Closing Date	 	 	16	 
	 	 	 	4.7	 	 	Conditions Precedent to Obligations of Purchaser	 	 	16	 
	 	 	 	4.8	 	 	Conditions Precedent to Obligations of Seller	 	 	16	 
	 	 	 	4.9	 	 	Declaration Estoppel Certificate	 	 	17	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SECTION 5.	 	Closing	 	 	17	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	5.1	 	 	Seller Deliveries	 	 	18	 
	 	 	 	5.2	 	 	Purchaser Deliveries	 	 	21	 
	 	 	 	5.3	 	 	Closing Costs	 	 	22	 
	 	 	 	5.4	 	 	Prorations	 	 	23	 
	 	 	 	5.5	 	 	Utilities	 	 	27	 
	 	 	 	5.6	 	 	Obligations of Prior Tenant	 	 	27	 

i

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Page
	SECTION 6.	 	Condemnation or Destruction of Property	 	 	28	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	6.1	 	 	Generally	 	 	28	 
	 	 	 	6.2	 	 	Fourteenth Street Project	 	 	28	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SECTION 7.	 	Representations, Warranties and Covenants	 	 	31	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	7.1	 	 	Representations, Warranties and Covenants of Seller	 	 	31	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	7.1.1	 	 	Representations and Warranties of Seller
	 	 	31	 
	 

	 	 	 	 	 	 	7.1.2	 	 	General Disclaimer
	 	 	34	 
	 

	 	 	 	 	 	 	7.1.3	 	 	Change in Representation or Warranty
	 	 	35	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	7.2	 	 	Interim Covenants of Seller	 	 	36	 
	 	 	 	7.3	 	 	Representations, Warranties and Covenants of Purchaser	 	 	37	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SECTION 8.	 	Indemnification and Release	 	 	38	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	8.1	 	 	Indemnification by Purchaser	 	 	38	 
	 	 	 	8.2	 	 	Release	 	 	38	 
	 	 	 	8.3	 	 	Survival	 	 	38	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SECTION 9.	 	Remedies For Default and Disposition of the Deposit	 	 	38	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	9.1	 	 	Seller Defaults	 	 	38	 
	 	 	 	9.2	 	 	Purchaser Defaults	 	 	39	 
	 	 	 	9.3	 	 	Disposition of Deposit	 	 	39	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SECTION 10.	 	Miscellaneous	 	 	39	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	10.1	 	 	Brokers	 	 	39	 
	 	 	 	10.2	 	 	Exhibits; Entire Agreement; Modification	 	 	40	 
	 	 	 	10.3	 	 	Business Days	 	 	40	 
	 	 	 	10.4	 	 	Interpretation	 	 	40	 
	 	 	 	10.5	 	 	Governing Law	 	 	41	 
	 	 	 	10.6	 	 	Successors and Assigns	 	 	41	 
	 	 	 	10.7	 	 	Notices	 	 	41	 
	 	 	 	10.8	 	 	Third Parties	 	 	43	 
	 	 	 	10.9	 	 	Legal Costs	 	 	43	 
	 	 	 	10.10	 	 	Counterparts	 	 	43	 
	 	 	 	10.11	 	 	Effectiveness	 	 	43	 
	 	 	 	10.12	 	 	No Implied Waivers	 	 	43	 
	 	 	 	10.13	 	 	Discharge of Seller’s Obligations	 	 	43	 
	 	 	 	10.14	 	 	No Recordation	 	 	44	 
	 	 	 	10.15	 	 	Unenforceability	 	 	44	 
	 	 	 	10.16	 	 	Disclosure	 	 	44	 
	 	 	 	10.17	 	 	Designation of Reporting Person	 	 	44	 
	 	 	 	10.18	 	 	Time of Essence	 	 	45	 
	 	 	 	10.19	 	 	Delivery of Possession	 	 	45	 

ii

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Page
	 	 	 	10.20	 	 	USA Patriot Act	 	 	45	 
	 	 	 	10.21	 	 	Waiver of Trial by Jury	 	 	45	 
	 	 	 	10.22	 	 	Limitation of Liability	 	 	45	 

SCHEDULE OF EXHIBITS

	 	 	 
	EXHIBIT A-1

	 	Fee Simple Land
	EXHIBIT A-2

	 	Ground Lease Land
	EXHIBIT B

	 	Inventory
	EXHIBIT C

	 	Escrow Agreement
	EXHIBIT D

	 	Additional Exceptions to Title
	EXHIBIT E

	 	Property Reports
	EXHIBIT F

	 	Required Tenants
	EXHIBIT G

	 	Tenant Estoppel Certificate
	EXHIBIT H

	 	Seller’s Estoppel Certificate
	EXHIBIT I

	 	MARTA Estoppel Certificate
	EXHIBIT J

	 	Form of Limited Warranty Deed
	EXHIBIT K

	 	Assignment and Assumption of Ground Lease
	EXHIBIT L

	 	Assignment and Assumption of Easements and Operating Agreements
	EXHIBIT M

	 	Assignment and Assumption of Easement and Tunnel Agreement
	EXHIBIT N

	 	Assignment of Guaranties and Warranties
	EXHIBIT O

	 	Assignment and Assumption of Leases, Security Deposits and Brokerage
Agreements
	EXHIBIT P

	 	Bill of Sale and Assignment
	EXHIBIT Q

	 	Affidavit of Seller’s Residence
	EXHIBIT R

	 	Assignment and Assumption of Contracts
	EXHIBIT S

	 	Form of Tenant Notice Letter
	EXHIBIT T-1

	 	Owner’s Affidavit (Fee Simple Land)
	EXHIBIT T-2

	 	Owner’s Affidavit (Ground Lease Land)
	EXHIBIT U

	 	Capital Expenditures
	EXHIBIT V

	 	Purchaser Assumed Pre-Existing Brokerage and TI Costs
	EXHIBIT W

	 	Lease Exhibit
	EXHIBIT X

	 	Contracts
	EXHIBIT Y

	 	Brokerage Agreements
	EXHIBIT Z

	 	314 Audit Letter
	EXHIBIT AA

	 	Master Office Lease
	EXHIBIT BB

	 	Escrow Agreement (Holdback)
	EXHIBIT CC

	 	Declaration Estoppel Certificate
	EXHIBIT DD

	 	Seller’s Declaration Estoppel Certificate
	EXHIBIT EE

	 	Fourteenth Street Project Documents

iii

 

CONTRACT OF SALE

     THIS CONTRACT OF SALE (this “Agreement”) is made and entered into as of the 18th day of May,
2006 (the “Effective Date”), by and between SUMITOMO LIFE REALTY (N.Y.), INC., a New York
corporation, having an address at 1201 West Peachtree Street, Suite 5099, Atlanta, Georgia 30309
(“Seller”) and HINES ONE ATLANTIC CENTER LP, a Delaware limited partnership, having an address at
2800 Post Oak Boulevard, Suite 4800, Houston, Texas 77056 (“Purchaser”).

W I T N E S S E T H:

     A. Seller shall sell to Purchaser, and Purchaser shall purchase from Seller, at the price and
upon the terms and conditions set forth in this Agreement all right, title, interest, liabilities
and obligations of Seller: (a) whether as fee simple owner or owner of a leasehold estate, as
appropriate, in and to those tracts or parcels of land lying and being in Land Lots 105, 106 and
107 of the 17th District, City of Atlanta, Fulton County, Georgia [the portion of such
land with respect to which Seller is a fee simple owner is more particularly described on
Exhibit A-1 attached hereto and made a part hereof (the “Fee Simple Land”) and the portion
of such land with respect to which Seller is the owner of a leasehold estate is more particularly
described on Exhibit A-2 attached hereto and made a part hereof (the “Ground Lease Land”);
the Fee Simple Land and the Ground Lease Land are sometimes hereinafter collectively referred to as
the “Land”]; (b) to the buildings, improvements, and structures located upon the Land
(collectively, the “Improvements”); (c) to all easements and other rights appurtenant to the Land,
if any (collectively, the “Appurtenant Rights”); (d) in, to and under the Leases (as hereinafter
defined), excepting any interest of Seller as a tenant under any of the Leases, and the Contracts
(as hereinafter defined); and (e) in and to: (i) the fixtures, equipment and other personal
property identified on Exhibit B attached hereto and made a part hereof (such items
identified on Exhibit B are sometimes hereinafter referred to as the “Inventory”), together
with any other fixtures, equipment or other personal property owned by Seller and located on and
exclusively used in the operation, ownership or maintenance of the Land and the Improvements; and
(ii) to the extent assignable by Seller, all intangible property owned by Seller and relating to
the Land and the Improvements, if any, including, without limitation, all use, occupancy, building
and operating permits and licenses relating solely to the Land and the Improvements which do not
relate to Seller or its partners or agents, the internet domain name “1ac.com,” governmental
approvals and any trademarks or trade names associated with the Land and the Improvements
(including, without limitation, the name “One Atlantic Center,” but specifically excluding the
names “Sumitomo Life Realty (N.Y.), Inc.,” “Sumitomo Life Insurance Company” and any derivatives
thereof) (collectively, the “Intangible Property”); but excluded from the items listed in this
clause (e) are: (A) any such items owned by tenants of the Property (including Seller and any
affiliate of Seller, to the extent Seller or such affiliate is a tenant under any of the Leases);
and (B) any cash and proprietary software which software is not necessary or recommended for the
operation of the Improvements (such fixtures, equipment, other personal property and the Intangible
Property being sold by Seller to Purchaser are sometimes hereinafter collectively referred to as
the “Personal Property”) (the Land, the Appurtenant Rights, the Improvements, the Leases, the
Contracts and the Personal Property are sometimes hereinafter collectively referred to as the
“Property”).

1

 

     B. Except as expressly provided herein, Purchaser acknowledges that the Property is being sold
on an “as is” “where is” and “with all faults” basis on the terms and conditions hereinafter set
forth.

     NOW, THEREFORE, for $10.00 in hand paid and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

     1. Purchase and Sale. Upon the terms and conditions hereinafter set forth, Seller
shall sell to Purchaser, and Purchaser shall purchase from Seller, the Property.

     2. Purchase Price. The purchase price (the “Purchase Price”) for the Property shall
be the sum of THREE HUNDRED FIVE MILLION AND NO/100THS DOLLARS ($305,000,000.00). Fifteen Million
Three Hundred Thirty Thousand and No/100ths Dollars ($15,330,000.00) of the Purchase Price (the
“Fee Simple Purchase Price”) shall be allocated to the purchase of Seller’s right, title, interest,
liabilities and obligations with respect to the Fee Simple Land, the portion of the Improvements
and the Personal Property located thereon and any Leases and Contracts not associated with the
Ground Lease Land. The remainder of the Purchase Price, in the amount of Two Hundred Eighty Nine
Million Six Hundred Seventy Thousand and No/100ths Dollars ($289,670,000.00) (the “Ground Lease
Purchase Price”), shall be allocated to the purchase of Seller’s right, title, interest,
liabilities and obligations with respect to the Ground Lease Land, the portion of the Improvements
and the Personal Property located thereon, all Leases and Contracts associated therewith and the
Appurtenant Rights.

     3. Payment of Purchase Price. The Purchase Price shall be paid to Seller by Purchaser
as follows:

          3.1 Deposit. Concurrently herewith, Purchaser shall, within one (1) Business Day (as
hereinafter defined) after the Effective Date, deposit with Chicago Title Insurance Company, a
Missouri insurance company (“Escrowee”), by wire transfer of immediately available federal funds to
an account designated by Escrowee, the sum of FIVE MILLION AND NO/100THS DOLLARS ($5,000,000.00)
(the “Deposit”), which Deposit shall be held by Escrowee pursuant to the escrow agreement (the
“Escrow Agreement”) attached hereto as Exhibit C and hereby made a part hereof. The Escrow
Agreement shall be executed by Seller and Purchaser simultaneously with the execution of this
Agreement for delivery to and execution by Escrowee. Any interest earned on the Deposit shall be
for the benefit of Purchaser unless the Deposit is paid to Seller as a result of the default of
Purchaser or as otherwise provided hereunder, in which event all interest earned thereon shall be
paid to Seller. The Deposit, together with all interest earned thereon, shall be applied toward
the Purchase Price at Closing. The Deposit, and all interest earned thereon, shall be
non-refundable to Purchaser except as expressly provided herein. If Purchaser shall fail to
deposit the Deposit with Escrowee within one (1) Business Day after the Effective Date, at Seller’s
election, this Agreement shall be null, void ab initio and of no force or effect.

          3.2 Closing Payment. The Purchase Price, as adjusted by the application of the
Deposit (and any interest earned thereon) and by the prorations and credits specified herein, shall
be paid by Purchaser by wire transfer of immediately available federal funds to an account

2

 

or accounts designated in writing by Seller. Purchaser shall deposit all funds necessary to
consummate the Closing, by wire transfer, into Escrowee’s account no later than 12:00 noon Eastern
Time on the “Closing Date” (as hereinafter defined). In the event the Funds are deposited after
12:00 noon Eastern Time on the Closing Date, all prorations will be recalculated though the next
Business Day. Neither the “Deed” nor the “Assignment and Assumption of Ground Lease” (both as
hereinafter defined) shall be recorded until Seller receives confirmation that Escrowee has wired
to Seller the full amount of the Purchase Price, adjusted by the credits and prorations set forth
herein.

     4. Title Matters; Investigations, Estoppel Certificates, Conditions Precedent.

          4.1 Title Matters.

     4.1.1 Title to the Property.

          (a) As a condition to the Closing, and subject only to delivery of the title premium and the
documents contemplated herein, Chicago Title Insurance Company (the “Title Company”) shall have
unconditionally committed to insure Purchaser as the fee owner of the Fee Simple Land and the
lessee of the Ground Lease Land in the amount of the Purchase Price by issuance of a standard
American Land Title Association Owner’s Policy of Title Insurance Form 10/17/92 (the “Owner’s
Policy”) subject only to the Permitted Exceptions (as hereinafter defined). Owner’s and lender’s
title insurance coverage must be underwritten by and through Chicago Title Insurance Company,
Atlanta, Georgia, National Business Unit, pursuant to the “Title Commitment” referred to in Section
4.1.1(b) of this Agreement.

          (b) Purchaser acknowledges receipt of the Commitment for Title Insurance, Commitment-File
Number 90501467, revised 4/2/06 (the “Title Commitment”), issued by Chicago Title Insurance Company
with an effective date of December 13, 2005, at 8:00 A.M. (the “Title Commitment Effective Date”)
as well as copies of all instruments giving rise to the defects or exceptions to title to the
Property noted in the Title Commitment. All exceptions shown on the Title Commitment are Permitted
Exceptions. As of the Title Commitment Effective Date, Purchaser shall be deemed to have approved
the exceptions shown on the Title Commitment other than the “standard” exceptions. Any
exceptions(s) to title to the Property which first appear of record or on any updated Title
Commitment after the Title Commitment Effective Date are hereinafter referred to, collectively, as
the “Unpermitted Exceptions” and each, individually, as an “Unpermitted Exception.” If there are
any Unpermitted Exceptions subject to which Purchaser is unwilling to accept title, and Purchaser
provides Seller with written notice (the “Title Objection Notice”) thereof (which Title Objection
Notice must specify Purchaser’s objection or objections in reasonable detail) within five (5) days
after the Title Company shall notify Purchaser of such Unpermitted Exception (but, in any event, on
or before the Closing Date), Seller, in its sole and absolute discretion, may undertake to
eliminate the same subject to the terms and conditions of this Section 4.1. Purchaser hereby
waives any right Purchaser may have to advance, as objections to title or as grounds for
Purchaser’s refusal to close this transaction, any Unpermitted Exception of which Purchaser does
not notify Seller within such five (5) day period by submittal of a Title Objection Notice (failure
to so notify Seller shall be deemed to be a waiver by Purchaser of its right to raise such
Unpermitted Exception as an objection to title or as a ground for Purchaser’s refusal to close the
transaction

3

 

contemplated by this Agreement). Notwithstanding anything to the contrary contained in this
Agreement, Seller, in its sole discretion, shall have the right to adjourn the Closing for a period
ending not later than July 28, 2006 (such period of time being herein called the “Extension
Period”), to allow Seller additional time to endeavor to eliminate such Unpermitted Exceptions with
respect to which Purchaser has timely submitted a Title Objection Notice, provided that Seller
shall notify Purchaser, in writing, within ten (10) days after receipt by Seller of the applicable
Title Objection Notice, that it will endeavor to eliminate such Unpermitted Exceptions. If Seller
fails to notify Purchaser within such ten (10) day period that Seller has elected to exercise its
right pursuant to the immediately preceding sentence to adjourn the Closing for the Extension
Period, Seller shall be deemed to have elected not to exercise its right to adjourn the Closing for
the Extension Period. Notwithstanding the foregoing or anything to the contrary set forth in this
Agreement, Seller shall not under any circumstance be required or obligated to cause the cure or
removal of any Unpermitted Exception including, without limitation, to bring any action or
proceeding, to make any payments or otherwise to incur any expense in order to eliminate any
Unpermitted Exception or to arrange for title insurance insuring against enforcement of such
Unpermitted Exception against, or collection of the same out of, the Property, notwithstanding that
Seller may have attempted to do so, or may have obtained an adjournment of the Scheduled Closing
Date for such purpose; provided, however, Seller shall satisfy: (i) any mortgage, deed to secure
debt or deed of trust placed on the Property by Seller; and (ii) any monetary liens encumbering the
Property arising by, through or under Seller. If the Closing is not consummated for any reason
other than a default by Seller hereunder, Purchaser shall be responsible for any title or escrow
cancellation charges.

          (c) If Purchaser provides a Title Objection Notice with respect to any Unpermitted Exceptions,
the procurement by Seller of title insurance, without special premium to Purchaser, insuring
against enforcement of such Unpermitted Exceptions against, or collection of the same out of, the
Property shall be deemed to be an elimination of such Unpermitted Exceptions. In the event that
Seller is unable, or elects not, to eliminate all Unpermitted Exceptions with respect to which
Purchaser has timely provided a Title Objection Notice in accordance with the provisions of this
Section 4.1.1 and to convey title to the Property in accordance with the terms of this Agreement on
or before the Closing Date [whether or not the Closing is adjourned as provided in Section
4.1.1(b)], Seller shall notify Purchaser that it elects not to remove the same, in which event
Purchaser shall have the right, as its sole remedy for such election of Seller, by delivery of
written notice to Seller within three (3) Business Days following receipt of notice from Seller of
its election not to remove such Unpermitted Exceptions, to either (i) terminate this Agreement by
written notice delivered to Seller (in which event Escrowee shall return the Deposit, and all
interest earned thereon, to Purchaser and no party hereto shall have any further obligations in
connection herewith except under those provisions that expressly survive the Closing or a
termination of this Agreement), or (ii) accept title to the Property subject to such Unpermitted
Exception(s) without an abatement in or credit against the Purchase Price. The failure of
Purchaser to deliver timely any written notice of election under this Section 4.1.1(c) shall be
conclusively deemed to be an election under clause (ii) above.

          (d) If, on the Closing Date, there are any liens or encumbrances that Seller is obligated to
discharge under this Agreement, Seller shall have the right (but not the obligation) to either (i)
arrange, at Seller’s cost and expense, for affirmative title insurance or special

4

 

endorsements insuring against enforcement of such liens or encumbrances against, or collection
of the same out of, the Property, or (ii) use any portion of the Purchase Price to pay and
discharge the same, either by way of payment or by alternative manner reasonably satisfactory to
the Title Company, and the same shall not be deemed to be Unpermitted Exceptions.

          (e) Seller shall have no obligation to provide any indemnity or agreement to the Title Company
or Purchaser to support the issuance of the Owner’s Policy or any “Purchaser Requested Title
Endorsements” (as hereinafter defined) other than the “Title Affidavits” (as hereinafter defined).

               4.1.2 Permitted Exceptions to Title. The Property shall be sold and conveyed subject
to the following exceptions to title (the “Permitted Exceptions”):

          (a) any state of facts that an accurate survey may show and any exceptions to title which
would be disclosed by an inspection of the Property;

          (b) those matters specifically set forth on Exhibit D attached hereto and made a part
hereof;

          (c) all laws, ordinances, rules and regulations of the United States, the State of Georgia, or
any agency, department, commission, bureau or instrumentality of any of the foregoing having
jurisdiction over the Property (each, a “Governmental Authority”), as the same may now exist or may
be hereafter modified, supplemented or promulgated;

          (d) all presently existing and future liens of real estate taxes or assessments and water
rates, water meter charges, water frontage charges and sewer taxes, rents and charges, if any,
provided that such items are not yet due and payable and are apportioned as provided in this
Agreement;

          (e) any other matter or thing affecting title to the Property that Purchaser shall have agreed
or be deemed to have agreed to waive as an Unpermitted Exception, including, without limitation:
(i) any Unpermitted Exceptions with respect to which Purchaser does not timely submit a Title
Objection Notice; and (ii) any Unpermitted Exceptions with respect to which Purchaser does timely
submit a Title Objection Notice but which Seller elects not to remove or cure, subject to which
Purchaser has elected or is deemed to have elected to accept title to the Property; and

          (f) all violations of laws, ordinances, orders, requirements or regulations of any
Governmental Authority applicable to the Property and existing on the Closing Date, whether or not
noted in the records of or issued by any Governmental Authority.

               4.1.3 Survey. Purchaser acknowledges receipt of an ALTA/ACSM Land Title Survey of the
Property for Sumitomo Life Realty (N.Y.), Inc. and Chicago Title Insurance Company by Watts &
Browning Engineers, Inc., with a Date Surveyed of 02/01/06 and last revised 02/27/06 (the
“Survey”). Purchaser shall reimburse Seller at Closing for the cost of the Survey in the amount of
$11,887.22. In addition, Purchaser shall pay the cost, if any, of having the Survey revised to be
certified to Purchaser, Purchaser’s lender (if any), Seller and the Title Company as having been
prepared in accordance with the minimum detail requirements of

5

 

the ALTA land survey requirements. Purchaser shall also pay the cost of any changes to the
Survey desired by Purchaser and the cost of any additional surveys desired by Purchaser. Purchaser
shall cause copies of the Survey, as revised from time to time, to be delivered to Seller and
Seller’s attorneys simultaneously with the delivery of same to Purchaser. It shall be Purchaser’s
responsibility to provide the Title Company with a copy of the Survey and any other certifications,
affidavits or instruments which the Title Company may request or require in order to delete the
standard survey exceptions in the Title Commitment. The legal description of the Fee Simple Land
in the “Deed” (as defined below) shall be the legal description attached hereto as Exhibit A-1. If
the legal description of the Fee Simple Land from the Survey differs slightly from the legal
description attached hereto as Exhibit A-1, Seller shall also execute and deliver a Quitclaim Deed
to Purchaser, conveying the Fee Simple Land to Purchaser by reference to the legal description of
the Fee Simple Land from the Survey.

               4.1.4 Endorsement to Owner’s Policy. In the event that Purchaser shall request any
endorsements to the Owner’s Policy (“Purchaser Requested Title Endorsements”), the issuance of any
such Purchaser Requested Title Endorsements shall not be or be deemed to be a condition to closing
the transaction contemplated hereunder.

               4.1.5 Assumption of Title Obligations. By its acceptance of the Deed and the
Assignment and Assumption of Ground Lease and the Closing of the purchase and sale of the Property,
Purchaser agrees: (a) it is assuming for the benefit of Seller all of the obligations of Seller
with respect to the Permitted Exceptions which obligations arise from and after the Closing Date;
and (b) that Seller shall be conclusively deemed to have satisfied all of Seller’s obligations with
respect to title to the Property.

          4.2 Investigations. Purchaser acknowledges and agrees that, prior to the Effective
Date, it has had access to due diligence files for the Property and has had the opportunity to
examine documents and files concerning the Property, as well as copies of the “Property Reports”
(as hereinafter defined). From and after the Effective Date, through the earlier of the Closing
Date or the date on which this Agreement is terminated, Purchaser shall have the right to examine,
review and inspect all matters pertaining to the purchase of the Property, including undertaking
and completing the “314 Audit” (as hereinafter defined) (such examinations, reviews and
inspections, including, without limitation, the 314 Audit, are hereinafter referred to collectively
as the “Investigations”), which Investigations shall at all times be subject to Purchaser’s
compliance with the provisions of this Section 4.2. In connection with such Investigations, Seller
shall provide Purchaser with reasonable access to the Property upon reasonable advance notice and
shall also make available to Purchaser, at the offices of Seller and/or the property manager of the
Property, access to such leases, service contracts, and other contracts and agreements with respect
to the Property in Seller’s possession as Purchaser shall reasonably request, all upon reasonable
advance written notice; provided, however, in no event shall Seller be obligated to make available
(1) any document or correspondence which would be subject to the attorney- client privilege; (2)
any document or item which Seller is contractually or otherwise bound to keep confidential; (3) any
documents pertaining to the marketing of the Property for sale to prospective purchasers; (4) any
internal memoranda, reports or assessments of Seller or Seller’s affiliates relating to Seller’s
valuation of the Property; (5) appraisals of the Property whether prepared internally by Seller or
Seller’s affiliates or externally; or (6) any documents which Seller considers confidential or
proprietary; provided, however, third party

6

 

reports shall not be considered confidential or proprietary unless the report in question
falls within any category described in clauses (1)-(5) above. Any entry upon the Property and all
Investigations shall be made or performed during Seller’s normal business hours and at the sole
risk and expense of Purchaser, and shall not interfere with the activities on or about the Property
of Seller, its tenants and their respective employees and invitees. Purchaser shall:

          (a) promptly repair any damage to the Property resulting from the Investigations and promptly
replace and refill any portion of the Property used for any inspections or tests and promptly
restore the Property to the same condition in which it existed prior to the Investigations;

          (b) fully comply with all laws applicable to the Investigations and all other activities
undertaken in connection therewith;

          (c) permit Seller to have a representative present during all Investigations undertaken
hereunder;

          (d) take all actions and implement all protections necessary to ensure that the
Investigations, and the equipment, materials, and substances generated, used or brought onto the
Property in connection with the Investigations, pose no threat to the safety or health of persons
or the environment, and cause no damage to the Property or other property of Seller, any tenant or
other occupant of the Property or other persons;

          (e) take reasonable precautions so that any and all Investigations shall cause minimum
disruption to parties in possession and Seller’s employees, if any, located on the Property;

          (f) furnish to Seller, at no cost or expense to Seller, copies of all surveys, soil test
results, engineering, asbestos, environmental and other studies and reports (other than internal
analysis and proprietary information of the Purchaser) relating to the Investigations which
Purchaser shall obtain with respect to the Property promptly [but not more than three (3) Business
Days] after Purchaser’s receipt of same;

          (g) maintain or cause to be maintained, at Purchaser’s expense, a policy of commercial general
liability insurance, with a broad form contractual liability endorsement and with a combined single
limit of not less than $1,000,000 per occurrence for bodily injury and property damage, automobile
liability coverage including owned and hired vehicles with a combined single limit of $1,000,000
per occurrence for bodily injury and property damage, and an excess umbrella liability policy for
bodily injury and property damage in the amount of $5,000,000, insuring Purchaser, Seller, PM
Realty Group, L.P., Jones Lang LaSalle Americas, Inc. and Cushman & Wakefield of Georgia, Inc., as
additional insureds, against any injuries or damages to persons or property that may result from or
are related to (i) Purchaser’s and/or Purchaser’s Representatives’ (as hereinafter defined) entry
upon the Property, (ii) any Investigations or other activities conducted thereon, and/or (iii) any
and all other activities undertaken by Purchaser and/or Purchaser’s Representatives, all of which
insurance shall be on an “occurrence form” and otherwise in such forms acceptable to Seller and
with an insurance

7

 

company acceptable to Seller, and deliver a copy of such insurance policy to Seller prior to
the first entry on the Property;

          (h) not permit any of the Investigations or any other activities undertaken by Purchaser or
Purchaser’s Representatives to result in any liens, judgments or other encumbrances being filed or
recorded against the Property, and Purchaser shall, at its sole cost and expense, promptly [but in
any event on or before the earlier of the Closing Date or twenty (20) days after Purchaser receives
notice of the filing or recording of any such lien or encumbrance] discharge of record any such
liens or encumbrances that are so filed or recorded (including, without limitation, liens for
services, labor or materials furnished); and

          (i) indemnify Seller and any agent, advisor, representative, affiliate, employee, director,
partner, member, beneficiary, investor, servant, shareholder, trustee or other person or entity
acting on Seller’s behalf or otherwise related to or affiliated with Seller (each individually a
“Seller Related Party,” and collectively the “Seller Related Parties”) and hold harmless Seller and
Seller Related Parties from and against any and all claims, demands, causes of action, losses,
damages, liabilities, costs and expenses (including, without limitation, attorneys’ fees and
disbursements), suffered or incurred by Seller or Seller Related Parties and arising out of or in
connection with (i) Purchaser’s and/or Purchaser’s Representatives’ entry upon the Property, (ii)
any Investigations or other activities conducted thereon by Purchaser or Purchaser’s
Representatives, (iii) any liens or encumbrances filed or recorded against the Property as a
consequence of the investigations and/or (iv) any and all other activities undertaken by Purchaser
or Purchaser’s Representatives with respect to the Property, whether such claims, demands, etc.
arise from the active or passive or sole or concurrent negligence or strict liability of any of the
Seller Related Parties or otherwise. The foregoing indemnity shall not include any claims,
demands, causes of action, losses, damages, liabilities, costs or expenses (including, without
limitation, attorneys’ fees and disbursements) that result solely from the mere discovery, by
Purchaser or Purchaser’s Representatives, of existing conditions on the Property during
Investigations conducted pursuant to, and in accordance with, the terms of this Agreement.

               Without limiting the foregoing, in no event shall Purchaser or Purchaser’s Representatives,
without the prior written consent of Seller: (x) make any type of intrusive physical testing
(environmental, structural or otherwise) at the Property (including, without limitation, soil
borings, water samplings or the like), (y) interview, communicate with or otherwise contact any
tenant or other occupant of the Property prior to the Closing without notifying Seller no less than
one (1) Business Day prior to such requested contact date and giving Seller or its agents,
employees or designated representatives the opportunity to accompany Purchaser or Purchaser’s
Representatives in each such instance, or (z) contact concerning or about the Property, or provide
any information, correspondence or other materials concerning or about the Property to, the
Department of Transportation, an agency of the State of Georgia (the “GA DOT”), Metropolitan
Atlanta Rapid Transit Authority (“MARTA”) or the Midtown Alliance.

               The foregoing obligations shall survive the Closing or a termination of this Agreement.

8

 

               4.2.1 Property Reports.

               (a) Purchaser acknowledges that, prior to the Effective Date, Seller has made available to
Purchaser copies of the environmental and other reports listed on Exhibit E attached hereto
and made a part hereof (collectively, the “Property Reports”; each, individually, a “Property
Report”). If Seller delivers any additional environmental reports to Purchaser, Purchaser will
acknowledge in writing that Purchaser has received such reports promptly after Purchaser’s receipt
thereof. Purchaser acknowledges that any Property Reports made available to Purchaser by Seller or
Seller’s agents or consultants are being made available solely as an accommodation to Purchaser and
will not be relied upon by Purchaser in connection with the purchase of the Property. Except in
connection with a breach of a representation or warranty set forth in this Agreement, Seller shall
have no liability or obligation whatsoever for any inaccuracy or omission from any Property Report.
Purchaser has, and shall be deemed to have, approved the physical and environmental condition of
the Property as of the Effective Date. The provisions of this Section 4.2.1 shall survive the
Closing or any termination of this Agreement.

               (b) At Purchaser’s written request, Seller agrees to request in writing from any consultant
that has issued a Property Report addressed to Seller that such consultant provide a reliance
letter to Purchaser. Purchaser shall be solely responsible for the payment of all fees and charges
of any such consultants in connection with the issuance of reliance letters to Purchaser and shall
pay any such amounts within ten (10) days after Purchaser’s receipt of an invoice or other written
request for payment.

               4.2.2 Cooperation with Purchaser’s Auditors and SEC Filing Requirements. Seller shall
use commercially reasonable efforts to provide to Purchaser (at Purchaser’s expense) copies of, or
shall use commercially reasonable efforts to provide Purchaser access to, such factual information
as may be reasonably requested by Purchaser and which is in the possession or control of Seller or
its property manager or accountants, to enable Purchaser’s auditor (Deloitte & Touche LLP, or any
successor auditor selected by Purchaser) to conduct an audit of the income statements of the
Property for the year to date of the year in which the Closing occurs plus up to the three (3)
prior calendar years (the “314 Audit”). Purchaser shall be responsible for all out-of-pocket costs
associated with the 314 Audit. Seller shall use commercially reasonable efforts to cooperate (at
no cost to Seller) with Purchaser’s auditor in the conduct of the 314 Audit. In addition, Seller
agrees to provide to Purchaser’s auditor a letter of representation in substantially the form
attached hereto as Exhibit Z (the “Representation Letter”) and, if requested by such
auditor, historical financial statements for the Property, including income and balance sheet data
for the Property, whether requested before or after Closing. Without limiting the foregoing: (a)
Purchaser or its designated independent or other auditor may, as part of the 314 Audit, audit
Seller’s operating statements of the Property, at Purchaser’s expense, and Seller shall use
commercially reasonable efforts to provide such documentation as Purchaser or its auditor may
reasonably request in order to complete such audit; and (b) Seller shall use commercially
reasonable efforts to furnish to Purchaser such financial and other information as may be
reasonably required by Purchaser or any affiliate of Purchaser to make any required filings with
the Securities and Exchange Commission or other governmental authority; provided, however, that the
foregoing obligations of Seller shall be limited to providing such information or documentation as
may be in the possession of, or reasonably obtainable by, Seller, its property manager or
accountants, at no material cost to

9

 

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

               4.2.3 Purchaser’s Obligation to Close not Contingent on Investigations.
NOTWITHSTANDING ANYTHING CONTAINED IN THIS AGREEMENT TO THE CONTRARY, PURCHASER’S OBLIGATION TO
PURCHASE THE PROPERTY HEREUNDER IS NOT CONTINGENT UPON PURCHASER’S PERFORMANCE OF ANY
INVESTIGATIONS OR UPON PURCHASER’S APPROVAL OF OR SATISFACTION WITH THE RESULTS OF ANY
INVESTIGATIONS. THEREFORE, IN NO EVENT SHALL THE PERFORMANCE OF ANY INVESTIGATIONS BY PURCHASER OR
PURCHASER’S APPROVAL OF OR SATISFACTION WITH THE RESULTS OF ANY SUCH INVESTIGATIONS BE DEEMED TO BE
A CONDITION PRECEDENT TO PURCHASER’S OBLIGATION TO PURCHASE THE PROPERTY HEREUNDER. PURCHASER
ACKNOWLEDGES THAT SELLER HAS AGREED TO ALLOW PURCHASER TO PERFORM INVESTIGATIONS SOLELY AS A
CONVENIENCE TO PURCHASER. AS SET FORTH IN SECTION 7.1.2 OF THIS AGREEMENT, PURCHASER SHALL BE
DEEMED TO HAVE ACCEPTED AND BE FULLY SATISFIED IN ALL RESPECTS WITH THE PHYSICAL CONDITION,
ENVIRONMENTAL CONDITION, VALUE, FINANCING STATUS, USE, OPERATION, TAX AND ASSESSMENT STATUS, INCOME
AND EXPENSES OF THE PROPERTY AND, EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT AND IN THE
DOCUMENTS TO BE DELIVERED AT CLOSING, THE SALE OF THE PROPERTY HEREUNDER IS AND WILL BE MADE ON AN
“AS IS,” ”WHERE IS,” AND “WITH ALL FAULTS” BASIS, WITHOUT REPRESENTATIONS AND WARRANTIES OF ANY
KIND OR NATURE, EXPRESS, IMPLIED OR OTHERWISE.

               4.2.4 Property Information and Confidentiality. All Information (as hereinafter
defined) provided to Purchaser shall be subject to the following terms and conditions:

               (a) Neither Seller nor any Seller Related Party makes any representation or warranty as to the
truth, accuracy or completeness of the Information, or any other studies, documents, reports or
other information provided to Purchaser hereunder and expressly disclaims any implied
representations as to any matter disclosed or omitted.

               (b) Purchaser agrees that neither Purchaser nor Purchaser’s Representatives shall, at any time
or in any manner, either directly or indirectly, divulge, disclose or communicate to any person,
entity or association the Information, or any other knowledge or information acquired by Purchaser
or Purchaser’s Representatives from Seller, any Seller Related Party or by Purchaser’s own
inspections and investigations, other than matters that are in the public domain. Without Seller’s
prior written consent, Purchaser shall not disclose and Purchaser shall direct Purchaser’s
Representatives not to disclose to any person, entity or association any of the terms, conditions
or other facts with respect to this Agreement, including, without limitation, the status hereof,
and shall not market or offer the Property for sale. Notwithstanding the foregoing, but subject to
the last sentence of this Section 4.2.4(b), Purchaser may disclose such of the Information and its
other reports, studies, documents and other matters generated by it and the terms of this Agreement
(i) as required by law or court order (provided prior written notice of such disclosure shall be
provided to Seller) and (ii) as Purchaser deems

10

 

necessary or desirable to Purchaser’s Representatives in connection with Purchaser’s
Investigations and the transaction contemplated hereby, provided that those to whom such
Information is disclosed are informed of the confidential nature thereof and agree(s) to keep the
same confidential in accordance with the terms and conditions hereof. In no event shall Purchaser
provide any governmental entity or agency with any information concerning the environmental
condition of any portion of the Property without obtaining Seller’s prior written consent, which
may be granted or withheld in Seller’s sole discretion except that Seller shall provide such
written consent in the event Purchaser is required by applicable law to provide such information to
a governmental entity or agency.

               (c) Purchaser shall indemnify and hold harmless Seller and all Seller Related Parties from and
against any and all claims, demands, causes of action, losses, damages, liabilities, costs and
expenses (including, without limitation, attorneys’ fees and disbursements) suffered or incurred by
Seller or any Seller Related Party and arising out of or in connection with a breach by Purchaser
or Purchaser’s Representatives of the provisions of this Section 4.2.4.

               (d) Purchaser and Purchaser’s Representatives shall use reasonable care to maintain in good
condition all of the Information furnished or made available to Purchaser and/or Purchaser’s
Representatives in accordance with this Section 4.2. In the event this Agreement is terminated,
Purchaser and Purchaser’s Representatives shall, within five (5) Business Days after the effective
date of such termination, deliver to Seller all originals and all copies of all of the Information
provided by or obtained from Seller in the possession of Purchaser and Purchaser’s Representatives
and copies of all non-confidential third-party reports related to the Property obtained or prepared
by or on behalf of Purchaser or Purchaser’s Representatives.

               (e) As used in this Agreement, the term “Information” shall mean any of the following: (i) all
information and documents in any way relating to the Property, the operation thereof or the sale
thereof, including, without limitation, all Property Reports, leases and contracts furnished to, or
otherwise made available for review by, Purchaser or its directors, officers, employees,
affiliates, partners, members, brokers, agents or other representatives, including, without
limitation, attorneys, accountants, contractors, consultants, engineers and financial advisors
(collectively, “Purchaser’s Representatives”), by Seller or any Seller Related Party or their
agents or representatives, including, without limitation, their contractors, engineers, attorneys,
accountants, consultants, brokers or advisors, and (ii) all analyses, compilations, data, studies,
reports or other information or documents prepared or obtained by Purchaser or Purchaser’s
Representatives containing or based on, in whole or in part, the information or documents described
in the preceding clause (i), the Investigations, or otherwise reflecting their review or
investigation of the Property.

               (f) Prior to and after the Closing, any press release or other public disclosure of
information with respect to the sale contemplated herein or any matters set forth in this Agreement
made or released by or on behalf of Purchaser shall be subject to Seller’s prior written approval.
Seller and the affiliates of Seller shall have the right, without Purchaser’s consent, to make
prior to and after the Closing press releases and other public disclosures with respect to the sale
contemplated herein and matters set forth in this Agreement.

11

 

               (g) In addition to any other remedies available to Seller, Seller shall have the right to seek
equitable relief, including, without limitation, injunctive relief or specific performance, against
Purchaser or Purchaser’s Representatives in order to enforce the provisions of this Section 4.2.4.

               (h) Notwithstanding any terms or conditions in this Agreement to the contrary, no conditions
of confidentiality within the meaning of IRC §6111(d) or the Treasury Regulations promulgated under
IRC Sec. 6011 are intended, and the parties hereto are expressly authorized to disclose every U.S.
federal income tax aspect of any transaction covered by this Agreement with any and all persons,
without limitation of any kind.

               (i) Notwithstanding the foregoing, Purchaser (its affiliates or any entity advised by
Purchaser’s affiliates) shall be permitted to disclose this transaction and/or the terms of this
transaction and any such information relating to the Property in any document as may be necessary
to comply with any applicable federal or state securities laws, rules, or regulations or to comply
with the requirements of the Securities and Exchange Commission, the New York Stock Exchange or any
similar agency or body.

               (j) The provisions of this Section 4.2.4 shall survive the Closing or a termination of this
Agreement.

        4.3 Tenant Estoppel Certificates. Receipt of estoppel certificates (each, a “Tenant
Estoppel Certificate”, and collectively, the “Tenant Estoppel Certificates”) from (a) the tenants
identified on Exhibit F attached hereto and made a part hereof (collectively, the “Required
Tenants”), and (b) a sufficient number of other tenants occupying space at the Property such that
estoppel certificates shall have been received pursuant to clauses (a) and (b) hereof with respect
to not less than eighty percent (80%) of the total net rentable square footage of the Property
covered by all Leases (excluding license agreements) in effect as of the Scheduled Closing Date,
shall be a condition precedent to Purchaser’s obligation to purchase the Property hereunder.
Seller shall not be required to obtain Tenant Estoppel Certificates (or any other estoppel
certificates) from any party occupying space at the Property under a license agreement. Seller
shall use commercially reasonable efforts (and, as used in this Agreement, commercially reasonable
efforts shall not be deemed to include any obligation to institute legal proceedings, deliver
notices of default or to expend any monies) to obtain such Tenant Estoppel Certificates, which
certificates shall be substantially in the form attached hereto and made a part hereof as
Exhibit G (or if Seller, after attempting to obtain certificates in such form, is unable to
obtain the same, then in the form, if any, prescribed in the applicable lease or other operative
document). Although such Tenant is not a Required Tenant, Seller expressly agrees to use
commercially reasonable efforts to obtain a Tenant Estoppel Certificate from the current tenant
under that certain “Master Lease” by and between Seller and Atlantic Center Associates I (“ACA I”),
dated April 12, 1989, recorded April 12, 1989, in Deed Book 12413, Page 226, Office of the Clerk of
the Superior Court of Fulton County, Georgia (the “Garage Master Lease”). Obtaining a Tenant
Estoppel Certificate with respect to the Garage Master Lease is a condition precedent to
Purchaser’s obligation to purchase the Property hereunder. Notwithstanding the foregoing, Seller
may, in compliance with its obligations hereunder, deliver a Tenant Estoppel Certificate in any
form which contains substantially the same representations made in the form of Tenant Estoppel
Certificate in Exhibit G. If any Tenant Estoppel Certificate identifies information under

12

 

the applicable Lease not previously disclosed to Purchaser in writing, or discloses
information in such Tenant Estoppel Certificate not substantially the same as the terms of the
applicable Lease (as made available to Purchaser), Purchaser shall have the right to object to such
Tenant Estoppel Certificate by submitting written notice of such objection (an “Estoppel Objection
Notice”) to Seller (which Estoppel Objection Notice must specify Purchaser’s objection or
objections in reasonable detail) within three (3) Business Days after receipt by Purchaser of the
objectionable Tenant Estoppel Certificate (but in any event on or before the Closing Date). If
Purchaser fails to timely submit an Estoppel Objection Notice to Seller with respect to any
particular Tenant Estoppel Certificate, then such Tenant Estoppel Certificate shall be deemed to be
acceptable to Purchaser. Purchaser shall have no right to object to any Tenant Estoppel
Certificate in the event the applicable Tenant Estoppel Certificate contains the information
required to be given by the tenant under the terms of the applicable lease or other operative
document (as distinguished from the form of Tenant Estoppel Certificate attached hereto), provided
the information contained in such Tenant Estoppel Certificate does not conflict with the terms of
the Lease. Notwithstanding anything contained in this Agreement to the contrary, in the event
Seller is unable to obtain a Tenant Estoppel Certificate from any particular tenant under any Lease
(other than a Required Tenant), Seller shall have the right (but not the obligation) to deliver to
Purchaser on the Closing Date a certificate (a “Seller’s Estoppel Certificate”) in the form
attached hereto and made a part hereof as Exhibit H, executed by Seller, and in such event,
Seller shall be deemed to have delivered a Tenant Estoppel Certificate with respect to such tenant
for purposes of satisfying the condition under this Section 4.3 (and Purchaser shall have no right
to terminate this Agreement pursuant to the terms of this Section 4.3). In addition, Seller shall
be released from any liability with respect to such Seller’s Estoppel Certificate upon the sooner
to occur of (i) one hundred eighty (180) days following the Closing Date and (ii) the date of
delivery to Purchaser of a Tenant Estoppel Certificate executed by the tenant for which Seller has
delivered such Seller’s Estoppel Certificate. The form Tenant Estoppel Certificates and Seller’s
Estoppel Certificates shall reflect appropriate changes thereto for tenants who have not yet
occupied the premises leased under their Leases and for Leases pursuant to which Seller has not yet
completed the tenant improvement work required thereunder or fully funded the allowances due
thereunder. If, on or before the date which is three (3) days prior to the Closing Date (as may be
adjourned as set forth in Section 4.6 of this Agreement), Seller fails to submit to Purchaser the
Tenant Estoppel Certificates required to meet the condition precedent to Purchaser’s obligation to
purchase the Property set forth in the first sentence of this Section 4.3, then Purchaser’s sole
option shall be to either (A) waive the delivery of the applicable Tenant Estoppel Certificate(s)
and proceed with the Closing, without any abatement or other adjustment in the Purchase Price, or
(B) terminate this Agreement in which event the Deposit and all interest accrued thereon shall be
returned to Purchaser and each of the parties hereto shall be relieved of all further obligations
hereunder, except for any obligations which are expressly stated herein to survive the expiration
or earlier termination of this Agreement. If Purchaser fails to terminate this Agreement as set
forth in the immediately preceding sentence prior to the Closing Date, the condition precedent to
Purchaser’s obligation to purchase the Property set forth in the first sentence of this Section 4.3
shall be deemed to have been met and Purchaser shall be deemed to have elected to proceed with the
Closing.

               4.4 MARTA. The Title Commitment identifies that certain Amended and Restated Lease
Agreement by and between MARTA and The Murphree Company (“Murphree”), dated as of September 1,
1984, recorded in Deed Book 9214, page 393, Fulton County, Georgia

13

 

Records, as assigned by Murphree to CF Atlanta Associates, Ltd. (“CF Atlanta”) by that certain
Lease Assignment and Assumption, dated as of September 1, 1984, recorded in Deed Book 9214, page
478, aforesaid records, as further assigned by CF Atlanta to ACA I by that certain Lease Assignment
and Assumption Agreement, dated as of December 19, 1984, recorded in Deed Book 9314, page 106,
aforesaid records, as amended by that certain First Amendment to Amended and Restated Lease
Agreement By and Between Metropolitan Atlanta Rapid Transit Authority and The Murphree Company,
dated January 31, 1986, recorded in Deed Book 9947, page 81, aforesaid records, as further amended
by that certain Second Amendment to Amended and Restated Lease Agreement By and Between
Metropolitan Atlanta Rapid Transit Authority and The Murphree Company, dated April 29, 1986,
recorded in Deed Book 10108, page 130, aforesaid records, as further assigned to Seller by that
certain Assignment and Assumption of Ground Lease, dated April 12, 1989, recorded in Deed Book
12413, page 190, aforesaid records (collectively, as amended and assigned to Seller, the “Ground
Lease”).

               4.4.1 The Ground Lease provides that it may not be transferred or assigned by Seller (as the
“Lessee” thereunder) without the express prior written consent and approval of MARTA. Receipt of
the written consent and approval of MARTA of the assignment of the Ground Lease to, and the
assumption of the Ground Lease by, Purchaser (“MARTA Approval”) shall be a condition precedent to
Purchaser’s obligation to purchase the Property and Seller’s obligation to sell the Property
hereunder. Seller shall use commercially reasonable efforts (and, as used in this Agreement,
commercially reasonable efforts shall not be deemed to include any obligation to institute legal
proceedings, deliver notices of default or to expend any monies) to obtain MARTA Approval.
Purchaser shall use commercially reasonable efforts to cooperate with Seller in obtaining MARTA
Approval, which efforts by Purchaser shall include, without limitation, providing any information
(financial or otherwise) reasonably requested by MARTA which indicates that Purchaser has the
capability (financial or otherwise) to fully perform and comply with all of the obligations, duties
and responsibilities of the “Lessee” under the Ground Lease. If Seller fails to obtain MARTA
Approval on or before the Closing Date (as the same may be adjourned as set forth in Section 4.6 of
this Agreement), then either Seller or Purchaser may elect to terminate this Agreement by written
notice to the other party, in which event the Deposit and all interest accrued thereon shall be
returned to Purchaser and each of the parties hereto shall be relieved of all further obligations
hereunder, except for any obligations which are expressly stated herein to survive the expiration
or earlier termination of this Agreement. If neither Seller nor Purchaser terminates this
Agreement as set forth in the immediately preceding sentence, the condition precedent to
Purchaser’s obligation to purchase the Property set forth in the second sentence of this Section
4.4.1 shall be deemed to have been met and Seller and Purchaser shall proceed with the Closing.

               4.4.2 Receipt of an estoppel certificate from MARTA (the “MARTA Estoppel Certificate”) shall
be a condition precedent to Purchaser’s obligation to purchase the Property hereunder. Seller
shall use commercially reasonable efforts (and, as used in this Agreement, commercially reasonable
efforts shall not be deemed to include any obligation to institute legal proceedings, deliver
notices of default or to expend any monies) to obtain such MARTA Estoppel Certificate, which
certificate shall be substantially in the form attached hereto and made a part hereof as
Exhibit I (or if Seller, after attempting to obtain a certificate in such form, is unable
to obtain the same, then in the form, if any, prescribed in the Ground Lease). Notwithstanding the
foregoing, Seller may, in compliance with its obligations hereunder, deliver

14

 

a MARTA Estoppel Certificate in any form which does not materially vary from the
representations made in the form of MARTA Estoppel Certificate in Exhibit I. If Seller
fails to obtain the MARTA Estoppel Certificate on or before the Closing Date (as the same may be
adjourned as set forth in Section 4.6 of this Agreement), or if the MARTA Estoppel Certificate
contains or discloses information which is materially different (and less favorable to Purchaser)
from the applicable information set forth in the form of MARTA Estoppel Certificate attached hereto
and made a part hereof as Exhibit I, then Purchaser’s sole option shall be to either (a)
waive the delivery of the MARTA Estoppel Certificate and proceed with the Closing, without any
abatement or other adjustment in the Purchase Price, or (b) terminate this Agreement in which event
the Deposit and all interest accrued thereon shall be returned to Purchaser and each of the parties
hereto shall be relieved of all further obligations hereunder, except for any obligations which are
expressly stated herein to survive the expiration or earlier termination of this Agreement,
provided, however, Purchaser shall not have the right to terminate this Agreement, but shall
proceed with the Closing, in the event the MARTA Estoppel Certificate contains the information
required to be given by MARTA under the terms of the Ground Lease (as distinguished from the form
of MARTA Estoppel Certificate attached hereto). If Purchaser fails to terminate this Agreement as
set forth in the immediately preceding sentence prior to the Closing Date, the condition precedent
to Purchaser’s obligation to purchase the Property set forth in the first sentence of this Section
4.4.2 shall be deemed to have been met and Purchaser shall be deemed to have elected to proceed
with the Closing.

          4.5 Easement and Tunnel Agreement. The Title Commitment identifies that certain
Easement and Tunnel Agreement, dated as of May 16, 1986, by and between GA DOT, and ACA I, recorded
in Deed Book 10122, page 404, aforesaid records, as assigned to Seller by that certain Assignment
and Assumption of Easement and Tunnel Agreement, dated April 12, 1989, recorded in Deed Book 12413,
page 204, aforesaid records (collectively, as assigned to Seller, the “Easement and Tunnel
Agreement”). The Easement and Tunnel Agreement provides that it may not be transferred or assigned
by Seller (as the successor to the interest of “Atlantic” thereunder) without the prior approval of
GA DOT and the concurrence therewith by the Federal Highway Administration, an agency of the United
States of America (the “FHWA”). Receipt of the prior approval of GA DOT and the concurrence
therewith by FHWA of the assignment of the Easement and Tunnel Agreement to, and the assumption of
Seller’s duties, covenants and obligations under the Easement and Tunnel Agreement by, Purchaser
shall be a condition precedent to Purchaser’s obligation to purchase the Property and Seller’s
obligation to sell the Property hereunder. Seller shall use commercially reasonable efforts (and,
as used in this Agreement, commercially reasonable efforts shall not be deemed to include any
obligation to institute legal proceedings, deliver notices of default or to expend any monies) to
obtain such prior approval of GA DOT and the concurrence therewith by FHWA. If Seller fails to
obtain the prior approval of GA DOT and the concurrence therewith by FHWA of the assignment of the
Easement and Tunnel Agreement to, and the assumption of Seller’s duties, covenants and obligations
under the Easement and Tunnel Agreement by, Purchaser on or before the Closing Date (as the same
may be adjourned as set forth in Section 4.6 of this Agreement), then either Seller or Purchaser
may elect to terminate this Agreement by written notice to the other party, in which event the
Deposit and all interest accrued thereon shall be returned to Purchaser and each of the parties
hereto shall be relieved of all further obligations hereunder, except for any obligations which are
expressly stated herein to survive the expiration or earlier termination of this Agreement. If
neither Seller nor Purchaser terminates this Agreement as set forth in the

15

 

immediately preceding sentence, the condition precedent to Purchaser’s obligation to purchase
the Property set forth in the third sentence of this Section 4.5 shall be deemed to have been met
and Seller and Purchaser shall proceed with the Closing.

          4.6 Extension of Closing Date. If, on or before June 28, 2006: (a) the requirements
of Section 4.3 above with respect to Tenant Estoppel Certificates and Section 4.9 with respect to
the RDED estoppel have not been met and such requirements have not been waived by Purchaser; (b)
MARTA Approval has not been obtained as required by Section 4.4.1 above; (c) the MARTA Estoppel
Certificate has not been obtained as required by Section 4.4.2 above and receipt of the MARTA
Estoppel Certificate has not been waived by Purchaser; or (d) the prior approval of GA DOT and the
concurrence therewith by FHWA has not been obtained as required by Section 4.5 above, the Closing
Date shall be automatically extended until July 28, 2006, or to such earlier date as Purchaser and
Seller may mutually agree. If, on or before July 28, 2006: (i) the requirements of Section 4.3
above with respect to Tenant Estoppel Certificates and Section 4.9 with respect to the RDED
estoppel have not been met and such requirements have not been waived by Purchaser; (ii) MARTA
Approval has not been obtained as required by Section 4.4.1 above; (iii) the MARTA Estoppel
Certificate has not been obtained as required by Section 4.4.2 above and receipt of the MARTA
Estoppel Certificate has not been waived by Purchaser; or (iv) the prior approval of GA DOT and the
concurrence therewith by FHWA has not been obtained as required by Section 4.5 above, then
Purchaser (but not Seller) may elect, by written notice to the Seller given on or before July 28,
2006, to further extend the Closing Date until August 28, 2006, or to such earlier date as
Purchaser and Seller may mutually agree.

          4.7 Conditions Precedent to Obligations of Purchaser. The obligation of Purchaser to
consummate the transactions contemplated by this Agreement shall be subject to the performance and
observance by Seller of all covenants, warranties and agreements of this Agreement to be performed
or observed by Seller prior to or on the Closing Date and the fulfillment on or before the Closing
Date of all other conditions precedent to Closing benefiting Purchaser specifically enumerated in
this Agreement, any or all of which may be waived by Purchaser in its sole discretion. If
Purchaser does not elect to waive such unsatisfied conditions and proceed to Closing, and subject
to any automatic extension of the Closing Date and Purchaser’s right to further extend the Closing
Date as provided herein, Purchaser may terminate this Agreement on the then-scheduled Closing Date
by sending written notice of such termination to Seller, in which event the Deposit and all
interest accrued thereon shall be returned to Purchaser and each of the parties hereto shall be
relieved of all further obligations hereunder, except for any obligations which are expressly
stated herein to survive the expiration or earlier termination of this Agreement; provided,
however, that if any of such conditions has not been satisfied due to a default by Purchaser or
Seller hereunder, then Purchaser’s and Seller’s respective rights, remedies and obligations shall
instead be determined in accordance with Section 9.1. or Section 9.2, as the case may be.

          4.8 Conditions Precedent to Obligations of Seller. The obligation of Seller to
consummate the transactions contemplated by this Agreement shall be subject to the performance and
observance by Purchaser of all covenants and agreements of this Agreement to be performed or
observed by Purchaser prior to or on the Closing Date and the fulfillment on or before the Closing
Date of all other conditions precedent to Closing benefiting Seller specifically set forth in this
Agreement, any or all of which may be waived by Seller in its sole discretion. If

16

 

Seller does not elect to waive such unsatisfied conditions and proceed to Closing, and subject
to any automatic extension of the Closing Date, and to Purchaser’s right to further extend the
Closing Date, as provided herein, Seller may terminate this Agreement on the then-scheduled Closing
Date by sending written notice of such termination to Purchaser, in which event the Deposit and all
interest accrued thereon shall be returned to Purchaser and each of the parties hereto shall be
relieved of all further obligations hereunder, except for any obligations which are expressly
stated herein to survive the expiration or earlier termination of this Agreement; provided,
however, that if any of such conditions has not been satisfied due to a default by Purchaser or
Seller hereunder, then Purchaser’s and Seller’s respective rights, remedies and obligations shall
instead be determined in accordance with Section 9.1. or Section 9.2, as the case may be.

          4.9 Declaration Estoppel Certificate. Seller shall use commercially reasonable
efforts (and, as used in this Agreement, commercially reasonable efforts shall not be deemed to
include any obligation to institute legal proceedings, deliver notices of default or to expend any
monies) to obtain an estoppel certificate, which certificate shall be substantially in the form
attached hereto and made a part hereof as Exhibit CC (the “Declaration Estoppel
Certificate”), from the owner of Atlantic Center Plaza (the “ACP Owner”), in connection with that
certain Reciprocal Development and Easements Declaration made by ACA I, dated April 12, 1989,
recorded April 12, 1989 in Deed Book 12413, Page 69, aforesaid records, as modified by First
Modification of Reciprocal Development and Easements Declaration by Seller and Atlantic Center,
Inc., dated August 20, 1998, recorded August 21, 1998, in Deed Book 25020, Page 1, aforesaid
records (the “RDED”). Purchaser shall have no right to object to the Declaration Estoppel
Certificate in the event the Declaration Estoppel Certificate contains the information required to
be given by the ACP Owner under the terms of the RDED (as distinguished from the form of
Declaration Estoppel Certificate attached hereto), provided the information contained in such
Declaration Estoppel Certificate does not conflict with the terms of the RDED. Obtaining the
Declaration Estoppel Certificate from the ACP Owner as described in this Section 4.9 is a condition
precedent to Purchaser’s obligation to consummate the transactions contemplated by this Agreement;
provided, however, in the event Seller is unable to obtain such estoppel, Seller shall have the
right (but not the obligation) to deliver to Purchaser on the Closing Date a certificate in the
form attached hereto and made a part hereof as Exhibit DD (the “Seller’s Declaration
Estoppel Certificate”) executed by Seller and, in such event, Seller shall be deemed to have
delivered the Declaration Estoppel Certificate under this Section 4.9 (and Purchaser shall have no
right to terminate this Agreement for failure to deliver the Declaration Estoppel Certificate under
this Section 4.9).

     5. Closing. The closing (the “Closing”) of the sale and purchase contemplated herein
shall occur at 10:00 a.m. Eastern Time on the “Closing Date” (as hereinafter defined). The Closing
shall occur on July 3, 2006 (the “Scheduled Closing Date”), or on such earlier date as Purchaser
and Seller may mutually agree, TIME BEING OF THE ESSENCE with respect to Purchaser’s obligation to
close on such date, through an escrow and pursuant to escrow instructions consistent with the terms
of this Agreement and otherwise mutually satisfactory to Seller and Purchaser (the date on which
the Closing shall occur being herein referred to as the “Closing Date”). The Closing shall
constitute approval by each party of all matters to which such party has a right of approval and a
waiver of all conditions precedent.

17

 

          5.1 Seller Deliveries. One (1) Business Day prior to the Closing, Seller shall
deliver or cause to be delivered to the Escrowee the following items executed and acknowledged by
Seller, “Broker” or “PM” (both as hereinafter defined), as appropriate:

               (a) a limited warranty deed (the “Deed”) in the form attached hereto and made a part hereof as
Exhibit J.

               (b) an assignment (the “Assignment and Assumption of Ground Lease”), in the form attached
hereto and made a part hereof as Exhibit K, of all right, title, interest, liabilities and
obligations of Seller as “Lessee” under the Ground Lease. The Assignment and Assumption of Ground
Lease shall include Purchaser’s assumption of Seller’s liabilities and obligations under the Ground
Lease accruing from and after the Closing Date.

               (c) an assignment (the “Assignment and Assumption of Easements and Operating Agreements”), in
the form attached hereto and made a part hereof as Exhibit L, of all right, title, interest
and claim of Seller in and to all easements, operating agreements and maintenance agreements
entered into in connection with the ownership and operation of the Property. The Assignment and
Assumption of Easements and Operating Agreements shall include Purchaser’s assumption of Seller’s
duties, covenants and obligations under such easements, operating agreements and maintenance
agreements accruing from and after the Closing Date.

               (d) an assignment (the “Assignment and Assumption of Easement and Tunnel Agreement”), in the
form attached hereto and made a part hereof as Exhibit M, of all right, title, interest and
claim of Seller in and to the Easement and Tunnel Agreement. The Assignment and Assumption of
Easement and Tunnel Agreement shall include Purchaser’s assumption of Seller’s duties, covenants
and obligations under the Easement and Tunnel Agreement accruing from and after the Closing Date.

               (e) two (2) counterparts of an assignment (the “Assignment of Guaranties and Warranties”), in
the form attached hereto and made a part hereof as Exhibit N, of all right, title, interest
and claim of Seller in and to those certain guaranties and warranties delivered to Assignor in
connection with the construction, ownership or operation of the Property (subject, however, to
certain easements, restrictions, covenants, encumbrances and other exceptions described in the
Assignment of Guaranties and Warranties).

               (f) four (4) counterparts of an assignment (the “Assignment and Assumption of Leases, Security
Deposits and Brokerage Agreements”) of all right, title, interest, liabilities and obligations of
Seller under: (i) the Leases (to the extent assignable) which are in effect on the Closing Date;
(ii) all security deposits held by Seller under the Leases (to the extent the foregoing security
deposits were made by tenants under the Leases, and were not forfeited or applied prior to the
Closing Date); and (iii) all liabilities and obligations of Seller and Seller’s leasing agent(s)
under the Brokerage Agreements, without recourse, representation or warranty, in the form attached
hereto and made a part hereof as Exhibit O, which shall include Purchaser’s assumption of:
(x) Seller’s obligations under the Leases, and the obligations of Seller and Seller’s leasing
agent(s) under the Brokerage Agreements accruing from and after the Closing Date, including,
without limitation, with respect to any tenant improvements, leasing

18

 

commissions, allowances, credits or other concessions which are described in such documents or
specified in the Assignment and Assumption of Leases, Security Deposits and Brokerage Agreements;
(y) Seller’s obligation to pay any unpaid Seller Leasing Costs with respect to which Purchaser will
receive a credit pursuant and subject to Section 5.4 of this Agreement; and (z) the Purchaser
Leasing Costs (as hereinafter defined).

               (g) a bill of sale and assignment (the “Bill of Sale and Assignment”) in the form attached
hereto and made a part hereof as Exhibit P, conveying the Personal Property without
warranty, express or implied, as to merchantability or fitness for any purpose.

               (h) two (2) counterparts of an affidavit of Seller’s residence in the form attached hereto and
made a part hereof as Exhibit Q and any other affidavit necessary to comply with the terms
of O.C.G.A. § 48-7-128.

               (i) four (4) counterparts of an assignment (the “Assignment and Assumption of Contracts”) of
all right, title and interest of Seller (or of Seller’s property manager, if applicable) under the
Contracts (to the extent assignable) which are in effect on the Closing Date and to which Seller
(or Seller’s property manager, if applicable) is a party, without recourse, representation or
warranty, in the form attached hereto and made a part hereof as Exhibit R, which shall
include Purchaser’s assumption of Seller’s obligations (or the obligations of Seller’s property
manager, if applicable) under the Contracts accruing from and after the Closing Date. Purchaser
shall be deemed to have elected to assume all of the Contracts except for those Contracts specified
by Purchaser in a written notice received by Seller at least thirty (30) days prior to the Closing
Date. If Purchaser timely gives such notice to Seller, the Contracts specified in such notice will
not be assigned to Purchaser pursuant to the Assignment and Assumption of Contracts and shall be
terminated by Seller effective as of the Closing Date, and Seller shall be responsible for all sums
due under such Contracts not assumed by Purchaser. Notwithstanding the foregoing, Seller shall
have no obligation to terminate, and Purchaser shall be obligated to assume, any Contracts which by
their terms: (i) cannot be terminated by Seller; (ii) cannot be terminated by Seller within thirty
(30) days; or (iii) cannot be terminated by Seller without penalty or payment of a fee or other
cost to Seller.

               (j) four (4) counterparts of a master office lease between Purchaser, as “Landlord,” and
Seller, as “Tenant” (the “Master Office Lease”), in the form attached hereto and made a part hereof
as Exhibit AA.

               (k) three (3) counterparts of an escrow agreement [the “Escrow Agreement (Holdback)”], in the
form attached hereto and made a part hereof as Exhibit BB. At Closing, in connection with
Seller’s rent payments under the Master Lease, Five Million and No/100ths Dollars ($5,000,000.00)
of the proceeds from the sale of the Property, less the amount due and payable to Purchaser as
landlord on the Closing Date, shall be deducted and placed in an escrow account with Escrow Agent
pursuant to the terms and conditions of the Escrow Agreement (Holdback).

               (l) any documentation and transfer requests which Seller is obligated to execute under Section
5.4.1(b) of this Agreement in order to request a transfer or reissuance to Purchaser of any letters
of credit issued as security deposits under the Leases.

19

 

               (m) all existing surveys, blueprints, drawings, plans and specifications for or with respect
to the Property or any part thereof, to the extent the same are in Seller’s possession.

               (n) all keys to the Improvements, to the extent the same are in Seller’s possession.

               (o) all Leases in effect on the Closing Date, to the extent the same are in Seller’s
possession.

               (p) all Contracts that shall remain in effect after the Closing, to the extent the same are in
Seller’s possession.

               (q) all applicable transfer tax forms, if any.

               (r) such further instruments as may be reasonably necessary to record the Deed and the
Assignment and Assumption of Ground Lease.

               (s) notices to each of the tenants under the Leases (each, a “Tenant Notice”, and
collectively, the “Tenant Notices”) in the form attached hereto and made a part hereof as
Exhibit S, advising such tenants of the sale of the Property to Purchaser and directing
them to make all payments to Purchaser or its designee, which Tenant Notices Purchaser shall, at
Purchaser’s sole cost and expense, either mail by certified mail return receipt requested or
hand-deliver to each applicable tenant.

               (t) evidence reasonably satisfactory to the Title Company and Purchaser respecting the due
organization of Seller and the due authorization and execution by Seller of this Agreement and the
documents required to be delivered hereunder.

               (u) two (2) counterparts of a title affidavit to the Title Company relating to the Fee Simple
Land in the form attached hereto as Exhibit T-1 and by this reference made a part hereof
and two (2) counterparts of a title affidavit to the Title Company relating to the Ground Lease
Land in the form attached hereto as Exhibit T-2 and by this reference made a part hereof
(each, individually, a “Title Affidavit” and collectively the “Title Affidavits”). Subject to the
provisions of Section 4 hereof, it is hereby agreed that delivery of the Title Affidavits shall not
be a covenant of Seller, but if and to the extent that Seller is unable or unwilling to deliver
such Title Affidavits in the attached forms because the facts stated therein are not true as of the
Closing Date, then delivery of the Title Affidavits shall only be a condition of Purchaser’s
obligation to close, and Purchaser shall not have any obligation to close if each Title Affidavit
is not delivered in the applicable form. In addition, if Seller is unable or unwilling to deliver
the Title Affidavits in the attached forms because the facts stated therein are not true as of the
Closing Date, Seller shall not be in default under this Agreement (unless the facts stated therein
are untrue as a result of a violation by Seller of a covenant of Seller set forth elsewhere in this
Agreement), and, in such event, Purchaser may elect to waive such condition and proceed to Closing,
or may elect to terminate this Agreement by written notice to Seller, and in the event of
Purchaser’s election to terminate this Agreement, Purchaser shall receive a refund of the Deposit,
and all interest accrued thereon, if any, and no party hereto shall have any further

20

 

obligations in connection herewith except under those provisions that expressly survive the
Closing or a termination of this Agreement.

               (v) lien waivers and releases executed by Broker and PM, which reflect the payment of the
brokerage commissions described in Section 10.1.2 hereof, and waive, in a manner reasonably
satisfactory to the Title Company, any and all lien rights which Broker or PM may have with respect
to the Property under O.C.G.A. Section 44-19-600, et seq.

               (w) a “FIRPTA” affidavit attesting to facts pertaining to Seller’s name, address, tax
identification number and non-foreign status as required by Section 1445 of the Internal Revenue
Code and regulations.

               (x) eight (8) counterparts of a closing statement (the “Closing Statement”) in form and
substance acceptable to Seller reflecting all credits, prorations, apportionments and adjustments
contemplated hereunder.

               (y) a certificate, for the benefit of Purchaser, certifying that the representations and
warranties of Seller set forth in Section 7.1.1 of this Agreement are true and correct as of the
Closing Date (which certificate may set out any modifications to or qualifications of the
representations set forth in Section 7.1.1 of this Agreement).

               (z) such other documents as Seller has agreed to provide or deliver under the terms of this
Agreement.

          5.2 Purchaser Deliveries. One (1) Business Day prior to the Closing, Purchaser shall
deliver or cause to be delivered to the Escrowee the following items executed and acknowledged by
Purchaser, as appropriate [provided, however, that Purchaser shall not be obligated to deliver the
Purchase Price to Escrowee pursuant to Section 5.2(a) of this Agreement until the Closing Date]:

               (a) payment of the Purchase Price (as adjusted by the prorations set forth herein) to be made
in accordance with Section 3 above.

               (b) the Deed.

               (c) the Assignment and Assumption of Ground Lease.

               (d) the Assignment and Assumption of Easements and Operating Agreements.

               (e) the Assignment and Assumption of Easement and Tunnel Agreement.

               (f) four (4) counterparts of the Assignment and Assumption of Leases, Security Deposits and
Brokerage Agreements.

               (g) the Bill of Sale and Assignment.

21

 

               (h) four (4) counterparts of the Assignment and Assumption of Contracts.

               (i) four (4) counterparts of the Master Office Lease.

               (j) three (3) counterparts of the Escrow Agreement (Holdback).

               (k) all applicable transfer tax forms, if any.

               (l) such further instruments as may be reasonably necessary to record the Deed and the
Assignment and Assumption of Ground Lease.

               (m) the Tenant Notices.

               (n) eight (8) counterparts of the Closing Statement in form and substance reasonably
acceptable to Purchaser.

               (o) (i) copies of Purchaser’s organizational documents and resolutions and/or consents
authorizing Purchaser to purchase the Property and to consummate the closing of the transactions
contemplated hereunder and to execute and deliver all documents which Purchaser is required to
execute and deliver hereunder, all certified as true and correct; and (ii) such other partnership
and/or corporate documentation as may be reasonably requested by the Title Company. All such
documents described in this Section 5.2(o) must be reasonably satisfactory to Seller and the Title
Company.

               (p) any documents required to be obtained by the Title Company in connection with the Closing,
including, without limitation, Schedule B, Section I requirements to the issuance of the Owner’s
Policy and the elimination of the “standard” exceptions and brokerage lien waiver affidavits, that
are within the purview of Purchaser’s responsibilities hereunder, or otherwise to comply with any
state or federal law.

               (q) a certificate, for the benefit of Seller, certifying that the representations and
warranties of Purchaser set forth in Section 7.3 of this Agreement are true and correct as of the
Closing Date.

               (r) such other documents as Purchaser has agreed to provide or deliver under the terms of this
Agreement.

          5.3 Closing Costs. The transfer taxes payable in connection with the recording of the
Deed (including transfer taxes of the State of Georgia and of the County of Fulton) shall be
calculated based on the Fee Simple Purchase Price, and Seller shall be responsible for the payment
of such transfer taxes. Transfer taxes will not be paid in connection with the Ground Lease
Purchase Price, the assignment and assumption of the Ground Lease and transfer of title to the
Improvements on the Ground Lease Land. Seller shall also pay: (a) fifty percent (50%) of the costs
and fees of Escrowee for its services as escrow agent under the Escrow Agreement, and (b) the
brokerage commission owed to Broker, as set forth in Section 10.1.2 of this Agreement. Purchaser
shall pay: (a) the fee for the title examination and the Title Commitment, the base premium for the
Owner’s Policy and the cost of any title endorsements

22

 

and affirmative insurance required by Purchaser, including the Purchaser Requested Title
Endorsements and any charges in connection with the issuance of any mortgagee title insurance
policy, (b) the costs of the Survey, and any updates thereto (to the extent Seller has previously
paid any such costs relating to the Survey, Purchaser shall reimburse Seller for such amounts at
Closing), (c) all recording charges payable in connection with the recording of the Deed,
Assignment and Assumption of Ground Lease, Assignment and Assumption of Easements and Operating
Agreements and Assignment and Assumption of Easement and Tunnel Agreement and any other documents
to be recorded in connection with the transaction contemplated hereby, (d) fifty percent (50%) of
the costs and fees of Escrowee for its services as escrow agent under the Escrow Agreement, (e) all
fees, costs or expenses in connection with Purchaser’s Investigations and other reviews hereunder,
and (f) any and all fees or other amounts payable in connection with a transfer or reissuance to
Purchaser of letters of credit issued as security deposits under the Leases. Any other closing
costs shall be allocated in accordance with local custom. Except as expressly provided in the
indemnities set forth in this Agreement, Seller and Purchaser shall pay their respective legal,
consulting and other professional fees and expenses incurred in connection with this Agreement and
the transaction contemplated hereby and their respective shares of prorations as hereinafter
provided. The provisions of this Section 5.3 shall survive the Closing or a termination of this
Agreement.

          5.4 Prorations.

               5.4.1 The following shall be prorated between Seller and Purchaser as of 11:59 p.m. on the day
preceding the Closing Date (on the basis of the actual number of days elapsed over the applicable
period):

               (a) All real estate taxes, water charges, sewer rents, vault charges and assessments on the
Property (including, without limitation, all taxes, fees and assessments of any community
improvement district, authority or similar organization or entity imposing taxes, fees or
assessments against or in connection with the Property, or any portion thereof, or applicable to or
assessed against any of the Personal Property used in connection therewith) on the basis of the
fiscal year for which assessed. In no event shall Seller be charged with or be responsible for any
increase in the taxes on the Property resulting from the sale of the Property or from any
improvements made or leases entered into on or after the Closing Date. If any assessments on the
Property are payable in installments, then the installment for the current period shall be prorated
(with Purchaser assuming the obligation to pay any installments due after the Closing Date).

               (b) Subject to this Section 5.4.1(b), all fixed rent and regularly scheduled items of
additional rent under the Leases, and other tenant charges if, as and when received. Seller shall
deliver or provide a credit in an amount equal to all prepaid rentals for periods after the Closing
Date and all refundable cash security deposits (to the extent the foregoing were made by tenants
under the Leases and are not applied or forfeited prior to the Closing Date) to Purchaser on the
Closing Date. At Closing, Seller shall cooperate and execute all reasonable documentation and
transfer requests, in order to request a transfer or reissuance to Purchaser of any letters of
credit issued as security deposits under the Leases. Rents which are delinquent as of the Closing
Date shall not be prorated on the Closing Date. Purchaser shall include such delinquencies in its
normal billing and shall diligently pursue the collection thereof

23

 

in good faith after the Closing Date (but Purchaser shall not be required to litigate or
declare a default in any Lease). To the extent Purchaser receives rents on or after the Closing
Date, such payments shall be applied first toward the rents for the month in which the Closing
occurs, second to the rents for the month preceding the month in which the Closing occurs, third to
the rents that shall then be due and payable to Purchaser, and fourth to any delinquent rents owed
to Seller, with Seller’s share thereof being held by Purchaser in trust for Seller and promptly
delivered to Seller by Purchaser. To the extent Seller receives rents on or after the Closing
Date, such payments shall be applied first toward the rents for the month in which the Closing
occurs, second to the rents for the month preceding the month in which the Closing occurs, third to
the rents that shall then be due and payable to Purchaser, and fourth to any delinquent rents owed
to Seller, with Purchaser’s share thereof being held by Seller in trust for Purchaser and promptly
delivered to Purchaser by Seller. Purchaser may not waive any delinquent rents nor modify a Lease
so as to reduce or otherwise affect amounts owed thereunder for any period in which Seller is
entitled to receive a share of charges or amounts without first obtaining Seller’s written consent,
which consent may be given or withheld in Seller’s sole and absolute discretion. Seller hereby
reserves the right to pursue any remedy against any tenant owing delinquent rents and any other
amounts to Seller (but shall not be entitled to terminate any lease or any tenant’s right to
possession), other than the right to continue or commence legal actions or proceedings against any
tenant. Delivery of the Assignment and Assumption of Leases shall not constitute a waiver by
Seller of such right, and such right shall survive the Closing. Purchaser shall use commercially
reasonable efforts to assist Seller with any collection efforts hereunder (but shall not be
required to litigate or declare a default under any Lease). With respect to delinquent rents and
any other amounts or other rights of any kind respecting tenants who are no longer tenants of the
Property as of the Closing Date, Seller shall retain all rights relating thereto, except with
respect to the specific obligations of Arnall Golden & Gregory, LLP (“AGG”) described in Section
5.6 below.

               (c) All operating expenses.

               (d) Intentionally omitted.

               (e) Charges and payments under Contracts or permitted renewals or replacements thereof
assigned to Purchaser pursuant to the Assignment and Assumption of Contracts.

               (f) Any prepaid items, including, without limitation, fees for licenses which are transferred
to Purchaser at the Closing and annual permit and inspection fees.

               (g) Utilities, including, without limitation, telephone, steam, electricity and gas, on the
basis of the most recently issued bills therefor, subject to adjustment after the Closing when the
next bills are available, or if current meter readings are available, on the basis of such
readings.

               (h) Personal property taxes, if any, on the basis of the fiscal year for which assessed.

24

 

               (i) Permitted administrative charges, if any, on those tenants’ security deposits transferred
by Seller pursuant to the Assignment and Assumption of Leases.

               (j) Taxes payable by Seller relating to operations of the Property, including, without
limitation, business and occupancy taxes and sales taxes, if any.

               (k) Such other items as are customarily apportioned between sellers and purchasers of real
properties of a type similar to the Property and located in the State of Georgia subject to Section
7.2.3(a) hereof.

               5.4.2

               (a) Seller shall be given a credit for any payments Seller shall have made as of the Closing
Date, in good faith and in the ordinary course of business, in respect of the capital expenditures
described on Exhibit U attached hereto and made a part hereof. Purchaser shall assume all
liability for such capital expenditures as of the Closing.

               (b) Except as otherwise provided herein, and expressly excepting any adjustment or
apportionment between Seller and Purchaser required by this Section 5.4.2 as a result of the
“Reconciliation Statements” (as hereinafter defined), if any of the items described in Section
5.4.1 hereof cannot be apportioned at the Closing because of the unavailability of information as
to the amounts which are to be apportioned or otherwise, or are incorrectly apportioned at Closing
or subsequent thereto, such items shall be apportioned or reapportioned, as the case may be, as
soon as practicable after the Closing Date or the date such error is discovered, as applicable;
provided that (i) with the exception of any item required to be apportioned pursuant to Section
5.4.1(a), (b), (g) or Section 5.4.2(c), neither party shall have the right to request apportionment
or reapportionment of any such item at any time following the one hundred eightieth
(180th) day after the Closing Date and (ii) with respect to the items required to be
apportioned pursuant to Section 5.4.1(a), (b) or (g), neither party shall have the right to request
apportionment or reapportionment of any such item at any time following the one (1) year
anniversary of the Closing Date. In addition, neither party shall have the right to request
apportionment or reapportionment of any item related to a Reconciliation Statement at any time
following June 1, 2008. If the Closing shall occur before a real estate or personal property tax
rate or assessment is fixed for the tax year in which the Closing occurs, the apportionment of
taxes at the Closing shall be upon the basis of the tax rate or assessment for the preceding fiscal
year applied to the latest assessed valuation. Promptly after the new tax rate or assessment is
fixed, the apportionment of taxes or assessments shall be recomputed and any discrepancy resulting
from such recomputation and any errors or omissions in computing apportionments at Closing shall be
promptly corrected and the proper party reimbursed, which obligations shall survive the Closing,
provided that such reapportionment is requested on or before the one (1) year anniversary of the
Closing Date, as set forth above. Any reconciliation of revenue or expense amounts relating to
Leases, including, but not limited to, the Reconciliation Statements, with respect to calendar year
2006 shall be prepared by Purchaser and submitted to Seller for Seller’s review and approval as
soon as reasonably practicable, but in all events Reconciliation Statements shall be submitted to
Seller at least thirty (30) days prior to the date on which such submission is required to be made
to the applicable tenant. Seller shall not unreasonably withhold its approval of any
Reconciliation Statements submitted for Seller’s approval, and

25

 

failure to approve or disapprove any Reconciliation Statement in writing within thirty (30)
days after such Reconciliation Statement is submitted to Seller shall be deemed to be an approval
of such Reconciliation Statement. If Seller disapproves any Reconciliation Statement, Purchaser
shall revise such Reconciliation Statement as necessary to address Seller’s reasonable objections.
Promptly after Seller approves (or is deemed to have approved) the Reconciliation Statements,
Purchaser shall submit such Reconciliation Statements to the applicable tenants in accordance with
the applicable Leases, provided that Purchaser must submit Reconciliation Statements to all tenants
no later than June 1, 2007. Purchaser shall promptly notify Seller when it becomes aware that any
such estimated amount has been ascertained. When all revenue and expense amounts have been
ascertained, Purchaser shall prepare, and certify as correct, a final proration statement which
shall be in a form consistent with the Closing Statement and which shall be subject to Seller’s
approval. Upon Seller’s acceptance and approval of any final proration statement submitted by
Purchaser, such statement shall be conclusively deemed to be accurate and final, and any payment
due to any party as a result of such final proration shall be made within thirty (30) days after
such approval by Seller.

               (c) For a period of three (3) years after the Closing, Purchaser shall allow Seller and its
agents and representatives access without charge to (i) all files, records and documents delivered
to Purchaser at the Closing, and (ii) the financial records and financial statements for the
Property (including but not limited to, financial records and financial statements related to the
Reconciliation Statements) for the calendar year in which the Closing occurs and for the calendar
year preceding the calendar year in which the Closing occurs, upon reasonable advance notice and at
all reasonable times, to examine and to make copies of any and all such files, records, documents
and statements, which right shall survive the Closing. Purchaser shall prepare and provide to the
tenants under the Leases a statement of the reconciliation of Operating Costs between the landlord
and the tenants under the Leases in accordance with the terms of the Leases (the “Reconciliation
Statements”), and Purchaser shall provide Seller with copies of the Reconciliation Statements at
the same time that they are furnished to the Tenants. If amounts are due from any tenants based on
the Reconciliation Statements, Purchaser shall use commercially reasonable efforts after Closing to
collect the same in the usual course of Purchaser’s operation of the Property, and upon collection,
to remit to Seller Seller’s share of those amounts in accordance with the terms of Section 5.4
hereof; however, Purchaser shall not be obligated to litigate or declare a default under any Lease.
Seller may attempt to collect amounts due to it pursuant to the reconciliation of Operating Costs
between the landlord and the tenants in accordance with the terms of the Leases, but Seller may not
institute any lawsuit. The provisions of this Section 5.4.2(c) shall survive the Closing.

               5.4.3 Items to be prorated at the Closing shall include a credit to Seller for costs and
expenses paid by Seller and which were incurred by Seller in connection with any new Leases or
modifications to any existing Leases entered into after the Effective Date in accordance with the
terms and conditions set forth in Section 7.2.3(a) of this Agreement. Seller shall be responsible
for all brokerage and leasing commissions and tenant improvement costs for the initial term of all
Leases entered into prior to the Effective Date and for any extension, renewal or expansion of any
such Lease exercised prior to the Effective Date (collectively, “Seller Leasing Costs”). The
portion of the Seller Leasing Costs set forth on Exhibit V (as the same may be reduced by
amounts paid by Seller prior to Closing, the “Purchaser Assumed Pre-Existing Brokerage and TI
Costs”) will remain unpaid as of the Closing Date. Purchaser shall be

26

 

responsible for and expressly assumes the obligation to pay: (a) all Purchaser Assumed
Pre-Existing Brokerage and TI Costs; (b) all payments required under any new leases entered into
from and after the Effective Date and under any extension, renewal or expansion of any existing
Lease exercised from and after the Effective Date to be paid by the landlord thereunder to or for
the benefit of the tenant thereunder which is in the nature of a tenant inducement, including,
without limitation, tenant improvement costs, lease buyout costs and moving, design, refurbishment
and club membership allowances; and (c) brokerage and leasing commissions [including, without
limitation, amounts owed under the Brokerage Agreements and amounts owed to Seller’s leasing agent,
Jones Lang LaSalle Americas, Inc. (“JLL”), under that certain Leasing Agreement, dated as of
October 15, 2001, by and between Seller and JLL] and reasonable legal fees incurred by Seller in
connection with any new leases entered into from and after the Effective Date and with any
extension, renewal or expansion of any existing Lease exercised from and after the Effective Date.
The costs specified in the immediately preceding sentence are sometimes hereinafter collectively
referred to as the “Purchaser Leasing Costs.” If at the Closing Seller has paid any Purchaser
Leasing Costs, the prorations at the Closing shall include an appropriate credit to Seller. If at
the Closing there remain unpaid Seller Leasing Costs (including the Purchaser Assumed Pre-Existing
Brokerage and TI Costs) and Purchaser has assumed the responsibility to pay such unpaid Seller
Leasing Costs, the prorations at the Closing shall include an appropriate credit to Purchaser.

                 5.4.4 Any charges referred to in this Section 5.4 which are payable by any tenant to a third
party shall not be apportioned hereunder, and Purchaser shall accept title subject to any such
charges unpaid, and Purchaser shall look solely to the tenant responsible therefor for the payment
of the same. If Seller shall have paid any of such charges on behalf of any tenant and shall not
have been reimbursed therefor by the time of Closing, Purchaser shall credit to Seller an amount
equal to all such charges paid by Seller.

                 5.4.5 The provisions of this Section 5.4 shall survive the Closing.

          5.5 Utilities. Purchaser shall cause all utilities to be transferred into Purchaser’s
name and account at the time of Closing, and shall make any utility deposits. All of Seller’s
utility deposits shall be refunded to Seller, and if Purchaser receives any Seller utility
deposits, Purchaser shall promptly pay them over to Seller.

          5.6 Obligations of Prior Tenant. AGG previously leased certain space located on the
26th through the 30th floors (the “AGG Premises”) of the office building
located on the Ground Lease Land (the “Office Building”) under: (a) that certain Lease Agreement,
dated December 17, 1993, by and between Seller and AGG, as amended by that certain First Amendment
to Lease Agreement, dated July 21, 1994, by and between Seller and AGG and that certain Second
Amendment to Lease Agreement, dated August 31, 1995, by and between Seller and AGG (collectively,
the “AGG Original Lease”); and (b) that certain Lease Agreement, dated March 5, 1998, by and
between Seller and AGG (the “AGG 30th Floor Lease”). The AGG Original Lease and the AGG
30th Floor Lease are sometimes hereinafter collectively referred to as the “AGG Lease.”
Notwithstanding the fact that the AGG Lease expired on October 31, 2004, and AGG has vacated the
AGG Premises, certain obligations of AGG under the AGG Lease relating to the removal of stairways
installed by AGG in the AGG Premises survived the expiration of the AGG Lease, including, without
limitation, the obligation to reimburse the

27

 

“Landlord” under the AGG Lease for costs incurred in removing the stairways and restoring the
applicable floors to pre-penetration slab condition, all as more fully set forth in, and subject to
the terms of, the AGG Lease. Prior to the execution of this Agreement by Seller and Purchaser,
Seller has undertaken to remove the stairway between the 27th and 28th floors
of the Office Building. Seller shall retain the right to seek reimbursement from AGG relating to
the removal of the stairway between the 27th and 28th floors of the Office
Building, regardless of whether such reimbursement is paid by AGG prior to or after Closing.
However, pursuant to the Assignment and Assumption of Leases, Security Deposits and Brokerage
Agreements, Seller will assign to Purchaser, without warranty, any remaining right of Seller to
seek reimbursement under the AGG Lease for any other stairway removal work. Any such right to
reimbursement from AGG assigned to Purchaser shall be subject to the terms and conditions of the
AGG Lease.

     6. Condemnation or Destruction of Property.

          6.1 Generally. Subject to the terms of Section 6.2 of this Agreement, in the event
that, after the Effective Date but prior to the Closing Date, either any portion of the Property is
taken pursuant to eminent domain proceedings or condemnation or any of the improvements on the
Property are damaged or destroyed by fire or other casualty, Seller shall (except with respect to
the “Fourteenth Street Project,” as hereinafter defined), at the Closing, assign to Purchaser all
of Seller’s interest in all awards or other proceeds for such taking by eminent domain or
condemnation or any insurance claims of Seller or proceeds received for such damage or destruction
(unless Seller shall have repaired such damage or destruction prior to the Closing and except to
the extent any such awards, proceeds or insurance are attributable to lost rents or items
applicable to any period prior to the Closing), less the amount of all costs incurred by Seller in
connection with the repair of such damage or destruction or collection costs of Seller respecting
any awards or other proceeds for such taking by eminent domain or condemnation or any uncollected
insurance proceeds which Seller may be entitled to receive from such damage or destruction, as
applicable. Subject to the terms of Section 6.2 of this Agreement, in connection with any
assignment of awards, proceeds or insurance hereunder, Seller shall credit Purchaser with an amount
equal to the applicable deductible amount under Seller’s insurance (but not more than the amount by
which the cost, as of the Closing Date, to repair the damage is greater than the amount of
insurance proceeds assigned to Purchaser); provided, however, if the amount of the damage (as
determined by an independent third party contractor or engineer selected by Seller and reasonably
approved by Purchaser) or the amount of condemnation award (for any condemnation other than in
connection with the Fourteenth Street Project) shall exceed the sum of TWO MILLION AND 00/100
DOLLARS ($2,000,000.00), Purchaser shall have the right to terminate this Agreement by notice to
Seller given within ten (10) days after notification to Purchaser of the estimated amount of
damages or the determination of the amount of any condemnation award whereupon the Deposit (and all
interest earned thereon) shall be promptly returned to Purchaser, and this Agreement and the
obligations of the parties hereunder shall terminate (and no party hereto shall have any further
obligations in connection herewith except under those provisions that expressly survive the Closing
or a termination of this Agreement). The parties hereby waive the provisions of any statute which
provides for a different outcome or treatment in the event of a casually or a condemnation or
eminent domain proceeding.

          6.2 Fourteenth Street Project. Seller has received notice from GA DOT that
acquisition of title to and easements over a portion of the Fee Simple Land and a portion of the

28

 

Ground Lease Land are required in connection with the proposed widening of Fourteenth Street
by GA DOT (the “Fourteenth Street Project”). Purchaser is aware of the Fourteenth Street Project
and has reviewed such materials as Purchaser deems necessary or desirable in connection with the
Fourteenth Street Project. The approximate location and approximate dimensions of the portions of
the Fee Simple Land and the Ground Lease Land which will be acquired by GA DOT in fee simple
(collectively, the “Fee Parcels”) and the approximate location and nature of the easements to be
acquired by GA DOT (collectively, the “DOT Easements”) in connection with the Fourteenth Street
Project are described in Exhibit EE attached hereto and made a part hereof (such description,
together with any attached documents, are collectively referred to as the “Fourteenth Street
Project Documents”). Purchaser has reviewed and hereby approves the Fee Parcels and the DOT
Easements as described in the Fourteenth Street Project Documents.

               6.2.1 Notwithstanding anything contained in this Agreement (including, without limitation,
Section 6.1 of this Agreement) to the contrary, Purchaser shall have no right to terminate this
Agreement as a result of or in connection with any eminent domain proceedings or condemnation (or
conveyance by Seller in lieu thereof) relating to the Fourteenth Street Project, regardless of the
amount of any awards or other proceeds received by Seller with respect thereto.

               6.2.2 Except as set forth in Section 6.2.7 of this Agreement: (a) if, on or before the Closing
Date (as it may be extended), Seller has received proceeds in connection with any eminent domain
proceedings or condemnation (or conveyance by Seller in lieu thereof) with respect to the
Fourteenth Street Project, then Seller shall be entitled to retain all such proceeds, and Purchaser
shall not be entitled to a credit against the Purchase Price for the amount of such proceeds
retained by Seller; (b) if portions of the Property (or easements encumbering any portion of the
Property) are taken by GA DOT under a declaration of taking or other eminent domain proceedings or
condemnation whereby title is transferred to GA DOT on or before the Closing Date, Seller shall be
entitled to receive all proceeds derived from such declaration of taking or other eminent domain or
condemnation procedure, whether such proceeds are paid before or after Closing, and Purchaser
shall not be entitled to a credit against the Purchase Price for such amounts received by Seller;
and (c) if portions of the Property (or easements encumbering any portion of the Property) are
taken by eminent domain or condemnation (or conveyance by Purchaser in lieu thereof) in connection
with the Fourteenth Street Project after the Closing, then Purchaser and Seller shall each be
entitled to receive one-half the net proceeds received in connection with such taking or conveyance
in lieu thereof within one (1) year after the Closing Date. The net proceeds will be the amount
paid by the condemning authority in connection with such eminent domain or condemnation proceeding
(or conveyance in lieu thereof), after deducting from such amount the amounts payable to MARTA and
the ACP Owner and all reasonable attorneys’ fees, consultant’s fees and collection costs incurred
by Seller and Purchaser in connection with the Fourteenth Street Project. In such event, Seller
shall be reimbursed by Purchaser from the proceeds for all of its reasonable attorneys’ fees,
consultant’s fees and collection costs in connection with the Fourteenth Street Project incurred
before Closing and Purchaser shall be reimbursed for all of its reasonable attorneys’ fees and
collection costs in connection with the Fourteenth Street Project incurred on and after the Closing
Date. In the event that both Seller and Purchaser have incurred fees or costs in connection with
the Fourteenth Street Project which are to be reimbursed as set forth above, but the total proceeds
actually received by Seller and Purchaser in connection with the Fourteenth Street Project (after

29

 

deducting from such amount the amounts payable to MARTA and the ACP Owner) are insufficient to
pay the full amount reimbursable to both Seller and Purchaser, the amounts which each party would
otherwise be entitled to receive as reimbursement of fees and costs under this Section 6.2.2 shall
be reduced prorata so that the total reimbursements do not exceed the proceeds actually received by
Seller and Purchaser.

               6.2.3 If title to any of the Fee Parcels is acquired by GA DOT on or prior to the Closing Date
by declaration of taking or other eminent domain proceedings or condemnation, or conveyance by
Seller in lieu thereof, the legal descriptions of the Fee Simple Land and the Ground Lease Land
shall be modified to exclude such Fee Parcels from such legal descriptions and from the Property to
be conveyed by Seller to Purchaser in the transactions contemplated by this Agreement.

               6.2.4 If any of the DOT Easements are acquired by GA DOT on or prior to the Closing Date by
declaration of taking or other eminent domain proceedings or condemnation, or conveyance by Seller
in lieu thereof, such DOT Easements shall be Permitted Exceptions under Section 4.1.2 of this
Agreement and shall be included in the list of Permitted Exceptions to be utilized as an exhibit to
the documents to be delivered at Closing, as contemplated by this Agreement.

               6.2.5 Purchaser hereby agrees to the modifications of the legal descriptions of the Fee Simple
Land and the Ground Lease Land to be made under Section 6.2.3 above and to the addition to the list
of Permitted Exceptions of the DOT Easements under Section 6.2.4 above. Purchaser agrees that the
exclusion of such Fee Parcels from the legal descriptions under Section 6.2.3 above and the
addition of the DOT Easements to the list of Permitted Exceptions under Section 6.2.4 above shall
not: (a) constitute Unpermitted Exceptions to title to the Property; (b) require any adjustment of
or credit against the Purchase Price; or (c) entitle Purchaser to terminate this Agreement or
refuse to consummate the transactions contemplated by this Agreement.

               6.2.6 The following shall be subject to the approval of Purchaser, such approval not to be
unreasonably withheld, conditioned or delayed: (a) any “Material Change” (as hereinafter defined)
in the Fee Parcels and any Material Change in the DOT Easements; and (b) the form and terms of any
deeds of conveyance, easements, options to purchase or other similar documents in favor of GA DOT.
If Purchaser fails to either approve or disapprove in writing any such item specified in the
immediately preceding sentence within two (2) Business Days after its receipt thereof, Purchaser
shall be deemed to have approved such item. If Purchaser disapproves any Material Change in the
Fee Parcels, Seller shall not voluntarily convey the changed Fee Parcels to GA DOT. If Purchaser
disapproves a Material Change in one or more of the DOT Easements, Seller shall not voluntarily
convey the changed DOT Easements to GA DOT. If Purchaser disapproves any deeds of conveyance,
easements, options to purchase or other similar documents in favor of GA DOT, Seller shall not
voluntarily execute such documents. However, Seller and Purchaser acknowledge that: (i) if any
changed Fee Parcels or changed DOT Easements are acquired by GA DOT prior to Closing by declaration
of taking or other eminent domain proceedings or condemnation, such taking shall be considered a
taking in connection with the Fourteenth Street Project and such taking shall be governed by the
provisions of Section 6.2 of this Agreement; and (ii) if any portion of the Property is taken by GA
DOT under a

30

 

declaration of taking or other eminent domain proceedings or condemnation, the operative
documents shall not be subject to the approval requirement contained in this Section 6.2.6.

               6.2.7 Notwithstanding anything contained in this Section 6.2 to the contrary, if any Fee
Parcels or DOT Easements are acquired by GA DOT by declaration of taking or other eminent domain
proceedings or condemnation (or voluntary conveyance in lieu thereof), and if such taking
represents a Material Change in one or more of the Fee Parcels or a Material Change in one or more
of the DOT Easements, the terms of this Section 6.2.7 shall control solely with respect to any
“Excess Proceeds” (as hereinafter defined) received in connection with such taking. If, and only
if, such changed Fee Parcels or changed DOT Easements represent a Material Change, one hundred
percent (100%) of the Excess Proceeds shall be credited to Purchaser at Closing, if such Excess
Proceeds are received by Seller before Closing, and shall be retained by Purchaser if such Excess
Proceeds are paid to Purchaser on or after the Closing Date. The term “Excess Proceeds,” as used
in this Section 6.2, means the amount by which the proceeds received from GA DOT after the Material
Change exceed the last amount offered by GA DOT for the Fee Parcels and the DOT Easements prior to
the Material Change. The term “Material Change,” as used in this Section 6.2, means a change in
the size of the Fee Parcels or the area or nature of the DOT Easements which results in a material
reduction in the value of the Property or has a material and unfavorable impact on the long-term
operations of the Property.

               6.2.8 The provisions of Section 6.2 shall survive the Closing.

     7. Representations, Warranties and Covenants.

          7.1 Representations, Warranties and Covenants of Seller.

               7.1.1 Representations and Warranties of Seller. Subject to the provisions of this
Section 7.1.1, Seller hereby represents to Purchaser that, as of the Effective Date:

               (a) Leases. There are no leases, licenses or other occupancy agreements to which
Seller is a party or is bound affecting any portion of the Property which will be in force on the
Closing Date other than the Leases. As used herein, “Leases” shall be deemed to mean,
collectively, (i) the leases and other documents described on Exhibit W attached hereto and
made a part hereof (the “Lease Exhibit”) and (ii) the leases entered into in accordance with this
Agreement. To the best of Seller’s knowledge, the Lease Exhibit is true and correct in all
material respects. To the best of Seller’s knowledge, all of the Leases are in full force and
effect and Seller has not sent notice of default to any tenant under its Lease which default has
not been cured within applicable grace periods, and, to Seller’s knowledge, no tenant is in default
under the terms of its Lease. To Seller’s knowledge, Seller has not received a notice of a
landlord default under any of the Leases. To Seller’s knowledge, no tenant has any right not set
forth in the leases and other documents listed on the Lease Exhibit to cause the landlord to
perform (or pay for) work in its premises, and, except as set forth on Exhibit V, Seller has paid
all Seller Leasing Costs (as such term is defined in Section 5.4.3 of this Agreement).

31

 

               (b) Litigation. To the best of Seller’s knowledge, except for the Fourteenth Street
Project, there is no material pending or threatened litigation or condemnation action against the
Property or against Seller with respect to the Property as of the Effective Date.

               (c) No Insolvency. Seller is not a debtor in any state or federal insolvency,
bankruptcy, receivership proceeding.

               (d) Non-Foreign Person. Seller is not a “foreign person” as defined in Section 1445
of the Internal Revenue Code, as amended (the “Code”).

               (e) Contracts. Neither Seller nor any authorized agent of Seller has entered into any
service or equipment leasing contracts relating to the Property which will be in force after the
Closing, except for the Contracts. As used in this Agreement, the “Contracts” shall be deemed to
mean, collectively, (i) the contracts described on Exhibit X attached hereto and made a
part hereof, (ii) contracts which are cancelable on thirty (30) days notice or less without premium
or penalty, and (iii) contracts entered into by Seller or an authorized agent of Seller which
Seller is permitted to enter into in accordance with this Agreement. To the best of Seller’s
knowledge, Exhibit X is true and correct in all material respects.

               (f) Lease Brokerage Agreements; Leasing Commission Agreements. Neither Seller nor any
authorized agent of Seller has entered into any lease brokerage agreements or lease commission
agreements other than as described on Exhibit Y attached hereto and made a part hereof or
in the Leases that shall be binding upon Purchaser following Closing (the lease brokerage
agreements and the lease commission agreements described on Exhibit Y or in the Leases,
together with any lease brokerage agreements or lease commission agreements executed by Seller or
an authorized agent of Seller with respect to new leases entered into in accordance with this
Agreement from and after the Effective Date and any extension, renewal or expansion of any existing
Leases exercised from and after the Effective Date, are collectively referred to as the “Brokerage
Agreements”).

               (g) Property Reports. All Property Reports made available to Purchaser by Seller
pursuant to the terms of this Agreement have been provided to Purchaser in their entirety, and
Seller has not redacted any portion of any such Property Reports.

               (h) Ground Lease. The Ground Lease has not been modified or amended and is in full
force and effect. To the best of Seller’s knowledge, Seller has not sent a notice of default to
MARTA under the Ground Lease which default has not been cured within applicable grace periods, and,
to Seller’s knowledge, MARTA is not in default under the terms of the Ground Lease. To Seller’s
knowledge, Seller has not received a notice of a default under the Ground Lease.

               (i) Due Authority. This Agreement and all agreements, instruments and documents
herein provided to be executed or to be caused to be executed by Seller are, or on the Closing Date
will be, duly authorized, executed and delivered by and are binding upon Seller. Seller is a
corporation, duly organized, validly existing and in good standing under the laws of the State of
New York, and is duly authorized and qualified to do all things required of it under this
Agreement. The execution and delivery of this Agreement and delivery by Seller of this

32

 

Agreement and all agreements, instruments and documents herein provided to be executed by
Seller, the performance by Seller of its obligations under this Agreement and such other
agreements, instruments and documents and the consummation by Seller of the transaction
contemplated hereby have been duly authorized by all necessary action of Seller and duly approved
by the board of directors of Seller. The execution and delivery of this Agreement by Seller, the
performance by Seller of its obligations under this Agreement and such other agreements,
instruments and documents and the consummation by Seller of the transaction contemplated hereby
will not: (i) violate any provision of Seller’s certificate of incorporation or bylaws; (ii)
violate any material agreement to which Seller is a party; or (iii) violate any law, judgment,
order, injunction, award or decree of any Governmental Authority against or binding upon Seller or
the property or business of Seller.

Notwithstanding and without limiting the foregoing, (i) if any of the representations or warranties
of Seller that survive Closing contained in this Agreement or in any document or instrument
delivered in connection herewith are materially false or inaccurate, or Seller is in material
breach or default of any of its obligations under this Agreement that survive Closing, and
Purchaser nonetheless closes the transactions hereunder and purchases the Property, then Seller
shall have no liability or obligation respecting such false or inaccurate representations or
warranties or other breach or default (and any cause of action resulting therefrom shall terminate
upon the Closing) in the event that either (x) on or prior to Closing, Purchaser shall have had
knowledge of the false or inaccurate representations or warranties or other breach or default, or
(y) the accurate state of facts pertinent to such false or inaccurate representations or warranties
or other breach or default was contained in any of the Information furnished or made available to
or otherwise obtained by Purchaser, and (ii) to the extent the copies of the Leases, the Contracts
or any other Information furnished or made available to or otherwise obtained by Purchaser contain
provisions or information that are inconsistent with the foregoing representations and warranties,
Seller shall have no liability or obligation respecting such inconsistent representations or
warranties (and Purchaser shall have no cause of action or right to terminate this Agreement with
respect thereto), and such representations and warranties shall be deemed modified to the extent
necessary to eliminate such inconsistency and to conform such representations and warranties to
such Leases, Contracts and other Information.

               References to the “knowledge”, “best knowledge” and/or “actual knowledge” of Seller or words
of similar import shall refer only to the current, actual (as opposed to implied or constructive)
knowledge of Cynthia Robinson Alexander, Senior Vice President of Seller, and shall not be
construed, by imputation or otherwise, to refer to the knowledge of Seller or any parent,
subsidiary or affiliate of Seller or to any other officer, agent, manager, representative or
employee of Seller or to impose upon Cynthia Robinson Alexander any duty to investigate the matter
to which such actual knowledge, or the absence thereof, pertains. Notwithstanding anything to the
contrary contained in this Agreement, Cynthia Robinson Alexander shall have no personal liability
hereunder or otherwise related to the transactions contemplated hereby. The representations and
warranties of Seller contained in this Section 7.1.1 shall survive the Closing for a period of one
hundred eighty (180) days. Any claim which Purchaser may have against Seller for any breach of any
representation or warranty contained in this Section 7.1.1, whether such breach is known or
unknown, which is not specifically asserted by written notice to Seller within such one hundred
eighty (180) day period shall not be valid or effective, and Seller shall have no liability with
respect thereto.

33

 

               7.1.2 General Disclaimer. Except for any express representation or express warranty
of Seller specifically set forth in this Agreement, the sale of the Property hereunder is and will
be made on an “as is,” ”where is,” and “with all faults” basis, without representations and
warranties of any kind or nature, express, implied or otherwise, including any representation or
warranty concerning title to the Property, the physical condition of the Property (including the
condition of the soil or the Improvements), the environmental condition of the Property (including
the presence or absence of hazardous substances on or affecting the Property), the compliance of
the Property with applicable laws and regulations (including zoning and building codes or the
status of development or use rights respecting the Property), the financial condition of the
Property or any other representation or warranty respecting any income, expenses, charges, liens or
encumbrances, rights or claims on, affecting or pertaining to the Property or any part thereof.
Purchaser acknowledges that Purchaser will examine, review and inspect all matters which in
Purchaser’s judgment bear upon the Property and its value and suitability for Purchaser’s purposes.
Except as to matters specifically set forth in this Agreement: (a) Purchaser will acquire the
Property solely on the basis of its own physical and financial examinations, reviews and
inspections and the title insurance protection afforded by the Owner’s Policy, and shall not rely,
and shall have no right to rely, on any representation of Seller, any Seller Related Parties or its
or their respective agents, representatives and employees, whether actual or implied; (b) Purchaser
shall rely wholly on its own inquiry and investigation to determine the merits, usefulness and
suitability of the Property, the financial condition of the Property and the quality and extent of
construction of the Improvements; (c) Purchaser acknowledges and agrees that any Information or
other materials provided to Purchaser by Seller are provided solely as a convenience to Purchaser
in the performance of the Investigations, that Seller makes no warranty or representation of any
kind or nature whatsoever as to the truth, accuracy or completeness of all or any portion of any of
the Information or other materials provided to Purchaser by Seller and that Purchaser shall rely
upon any such Information or other materials at its own risk, without recourse to Seller; (d) in no
event shall Seller have any obligation to make or effect any repairs or improvements to the
Property; (e) Purchaser acknowledges that neither Seller nor any of Seller’s affiliates, nor any of
its or their respective agents, employees or representatives, has made any representations, or held
out any inducements, to Purchaser or to Purchaser’s Representatives (other than those, if any,
expressed herein); (f) Seller shall not be liable or bound in any manner by any verbal or written
information pertaining to the Property furnished by Seller or any of the Seller Related Parties, or
its or their respective agents, employees, representatives, or by any real estate broker including
Broker and PM; (g) Purchaser shall be deemed to have fully examined and inspected the Property,
including the construction, use and operation thereof, and Purchaser shall be deemed to have
determined to its own satisfaction the status of and compliance with all of the licenses, permits,
certificates, approvals, authorizations and variances issued for or with respect to the Property by
any governmental or quasi-governmental authority, and all governmental and quasi-governmental laws,
ordinances and regulations applicable to the Property, and Purchaser shall be deemed to have
accepted and be fully satisfied in all respects with the foregoing and with the physical condition,
environmental condition, value, financing status, use, operation, tax and assessment status, income
and expenses of the Property; and (h) without limiting the foregoing, Purchaser waives any right it
otherwise may have at law or in equity, including, without limitation, the right to seek damages
from Seller in connection with the environmental condition of the Property, but specifically
excluding any right of contribution under the Comprehensive

34

 

Environmental Response Compensation and Liability Act (“CERCLA”). Notwithstanding anything
contained herein to the contrary, any right of Purchaser to seek contribution from Seller under
CERCLA shall be subject to the limitations of liability contained in Section 10.22 of this
Agreement. The delivery by Seller and acceptance by Purchaser of the Deed and the Assignment and
Assumption of Ground Lease shall be a discharge of all of the respective obligations of Seller
hereunder, except for those obligations as are expressly made to survive the delivery of the Deed
and the Assignment and Assumption of Ground Lease pursuant to the terms of this Agreement. The
provisions of this Section 7.1.2 shall survive the Closing.

               7.1.3 Change in Representation or Warranty. If any representation or warranty of
Seller in Section 7.1.1 was true, correct and complete when made (or deemed to be made) but is
inaccurate or incomplete as of the applicable Closing Date (other than as a result of the actions
or failure to act of Seller), then such inaccuracy or incompleteness shall not be deemed to
constitute a breach of representation or warranty by Seller hereunder. However, such inaccuracy or
incompleteness of any representation or warranty of Seller in Section 7.1.1, except with respect to
an inaccuracy or incompleteness of any of the representations or warranties of Seller in Section
7.1.1(a), shall constitute the failure of a Closing condition and Purchaser shall have the
applicable rights set forth in Section 4.7 hereof. Any representation or warranty of Seller in
Section 7.1.1(a) that was true, correct and complete when made (or deemed to be made) but is
inaccurate or incomplete as of the applicable Closing Date (other than as a result of the actions
or failure to act of Seller) is hereinafter referred to as a “Change in Lease Status.” In the
event that a Change in Lease Status constitutes a “Material Tenant Default” or a “Bankruptcy Event”
(both as hereinafter defined) by a Required Tenant, then such Change in Lease Status shall
constitute the failure of a Closing condition and Purchaser shall have the applicable rights set
forth in Section 4.7 hereof. In the event there is a Change in Lease Status which does not
constitute a Material Tenant Default or a Bankruptcy Event by a Required Tenant, then such
inaccuracy or incompleteness shall not be deemed to constitute a breach of Seller’s representations
or warranties or the failure of a Closing condition, and this Agreement shall remain in full force
and effect without adjustment to the Purchase Price or any other consideration to be delivered to
Purchaser at any Closing. For purposes of this Section 7.1.3, each use of the terms capitalized
and defined below in this Section 7.1.3 shall be deemed to refer to, and shall have the respective
meanings set forth in, the following definitions:

               (a) “Bankruptcy Event” means, with respect to any “Person” (as hereinafter defined), that such
Person has: (i) made an assignment for the benefit of creditors; (ii) commenced any “Legal
Proceeding” (as hereinafter defined) for the appointment of a custodian, receiver or trustee for it
or a substantial part of its assets; (iii) commenced any Legal Proceeding under any bankruptcy,
reorganization, arrangement, readjustment of debt, dissolution or liquidation law of any
jurisdiction whether now or hereafter in effect; or (iv) had any such Legal Proceeding (described
in (ii) and/or (iii) above) filed or commenced against it.

               (b) “Legal Proceeding” means an action, litigation, arbitration, administrative proceeding,
and other legal or equitable proceeding of any kind.

               (c) “Material Tenant Default” means, with respect to any Lease: (i) the failure to pay when
due one month’s fixed rent and additional rent, and/or any other amounts due under such Lease which
in the aggregate equal or exceed one month of such tenant’s fixed

35

 

rent and additional rent; (ii) the failure to restore within applicable notice and grace
periods a portion of its Tenant Deposit equal to or greater than one month of its fixed rent and
additional rent, which the Seller has applied to such tenant’s Lease obligations; or (iii) the
occurrence of any material non-monetary default under such Lease.

               (d) “Person” means an individual person, a corporation, partnership, trust, joint venture,
limited liability company, partnership, estate, association, land trust, other trust, governmental
or quasi-governmental entity or other incorporated or unincorporated enterprise, entity or
organization of any kind.

               (e) “Tenant Deposits” means all security deposits (including letters of credit), paid or
deposited by the tenants with the landlord, or any other person on the landlord’s behalf pursuant
to the Leases (together with any interest which has accrued thereon, but only to the extent such
interest has accrued for account of the respective tenants).

          7.2 Interim Covenants of Seller. Until the Closing Date or the sooner termination of
this Agreement in accordance with the terms and conditions of this Agreement:

               7.2.1 Seller shall maintain the Property in substantially the same manner as prior hereto
pursuant to Seller’s normal course of business (such as maintenance obligations but not including
extraordinary capital expenditures or expenditures not incurred in such normal course of business),
subject to reasonable wear and tear and further subject to destruction by casualty or other events
beyond the control of Seller. Seller shall not negotiate for sale, sell, assign, rent, convey
(absolutely or as security), grant a security interest in, or otherwise encumber or dispose of, the
Property (or any part thereof or estate therein) in any manner that will survive Closing, except as
approved in writing by Purchaser or as expressly provided in this Agreement.

               7.2.2 Seller shall not modify, extend, renew or cancel (except as a result of a default by the
other party thereunder) or enter into any additional service contracts or other similar agreements
without the prior consent of Purchaser, which consent shall not be unreasonably withheld or
delayed; provided, however, Purchaser’s consent shall not be required if such contract is
cancelable upon not more than thirty (30) days notice.

               7.2.3

               (a) Seller shall have the right to continue to offer the Property for lease in the same manner
as prior hereto pursuant to its normal course of business and shall keep Purchaser reasonably
informed as to the status of leasing prior to the Closing Date. However, except with respect to
new leases which are terminable on no more than thirty (30) days’ written notice without payment of
any penalty, fee or other cost to Seller or Purchaser and modifications of existing Leases which
are required by such existing Leases, Seller shall not during the term of this Agreement enter into
any new leases or material modifications of existing Leases without the prior written consent of
Purchaser, which consent shall not be unreasonably withheld, conditioned or delayed.
Notwithstanding the foregoing or anything to the contrary set forth in this Agreement, (x)
Purchaser’s failure to disapprove any request for consent by Seller under this Section 7.2.3 within
five (5) Business Days following Seller’s request therefor shall be deemed

36

 

to constitute Purchaser’s consent thereto, and (y) Purchaser shall bear all costs and expenses
related to any new leases or modifications of existing Leases or service contracts entered into
after the Effective Date in accordance with the provisions of this Section 7.2.3 (including tenant
improvement costs and leasing commissions) and, without limiting the foregoing, the prorations at
the Closing shall include an appropriate credit to Seller consistent with the foregoing.

               (b) Seller makes no representations and assumes no responsibility with respect to the
continued occupancy of the Property or any part thereof by any tenant. The removal of a defaulting
tenant (irrespective of the size of the applicable demised premises) whether by summary proceedings
or otherwise prior to the Closing Date shall not give rise to any claim on the part of Purchaser.
Further, Purchaser agrees that, except in the event of a Material Tenant Default by a Required
Tenant or a Bankruptcy Event by a Required Tenant, it shall not be grounds for Purchaser’s refusal
to close this transaction that any tenant of the Property may be a holdover tenant or in default
under its Lease on the Closing Date and Purchaser shall accept title subject to such holding over
or default without abatement in, credit against, or reduction of, the Purchase Price.

               7.2.4 Seller will use commercially reasonable efforts keep in force and effect with respect to
the Property the insurance policies currently carried by Seller or policies providing similar
coverage through the Closing Date.

               7.2.5 During the term of this Agreement, Seller shall not take any actions or grant any
approvals under the terms of the RDED or any other declaration, reciprocal easement agreement or
restrictive covenant affecting the Land without the prior written consent of Purchaser, which
consent shall not be unreasonably withheld, conditioned or delayed. Seller shall keep Purchaser
reasonably informed as to the status of proposed actions or requests for approval under the terms
of the RDED or any other declaration, reciprocal easement agreement or restrictive covenant
affecting the Land. Notwithstanding the foregoing or anything to the contrary set forth in this
Agreement, Purchaser’s failure to disapprove any request for consent by Seller under this Section
7.2.5 within five (5) Business Days following Seller’s written request therefor shall be deemed to
constitute Purchaser’s consent thereto.

               7.2.6 Seller shall not modify, amend or cancel the Ground Lease without the prior written
consent of Purchaser, which consent may be granted or withheld in Purchaser’s sole and absolute
discretion.

          7.3 Representations, Warranties and Covenants of Purchaser. Purchaser hereby
represents and warrants to Seller that: (a) there is no action, suit, arbitration, unsatisfied
order or judgment, government investigation or proceeding pending against Purchaser which, if
adversely determined, could individually or in the aggregate interfere with the consummation of the
transaction contemplated by this Agreement; and (b) this Agreement and all agreements, instruments
and documents herein provided to be executed or caused to be executed by Purchaser are, or on the
Closing Date will be, duly authorized, executed and delivered by and are binding upon Purchaser.
Purchaser is a Delaware limited partnership, duly organized and validly existing and in good
standing under the laws of the State of Delaware, and is duly authorized and qualified to do all
things required of it under this Agreement. The representations and warranties of Purchaser shall
survive the Closing. The representations and warranties of Purchaser

37

 

contained in this Section 7.3 shall survive the Closing for a period of one hundred eighty
(180) days. Any claim which Seller may have against Purchaser for any breach of any representation
or warranty contained in this Section 7.3, whether such breach is known or unknown, which is not
specifically asserted by written notice to Purchaser within such one hundred eighty (180) day
period shall not be valid or effective, and Purchaser shall have no liability with respect thereto.

     8. Indemnification and Release.

          8.1 Indemnification by Purchaser. Purchaser shall hold harmless, indemnify and defend
Seller and the Seller Related Parties from and against: (a) any and all third party claims for
personal injury or property damage related to the Property or the ownership, operation or
maintenance thereof and occurring on or after the Closing Date, (b) any and all loss, damage or
third party claims in any way arising from Purchaser’s inspections or examinations of the Property
prior to the Closing Date, including, without limitation, any Investigations made by Purchaser, and
(c) all costs and expenses (including, without limitation, reasonable attorneys’ fees and
disbursements) incurred by Seller as a result of the foregoing.

          8.2 Release. Effective as of the Closing, and except with respect to Seller’s breach
of a representation or warranty set forth in this Agreement or in any of the documents to be
delivered by Seller at Closing or with respect to any indemnification obligation of Seller set
forth herein, Purchaser shall be deemed to have released Seller and all Seller Related Parties from
all claims which Purchaser or any agent, representative, affiliate, employee, director, officer,
partner, member, servant, shareholder or other person or entity acting on Purchaser’s behalf or
otherwise related to or affiliated with Purchaser (each individually a “Purchaser Related Party,”
and collectively the “Purchaser Related Parties”) has or may have arising from or related to any
matter or thing related to or in connection with the Property including the documents and
information referred to herein, the leases and the tenants thereunder, any construction defects,
errors or omissions in the design or construction of all or any portion of the Property and any
environmental conditions, and Purchaser shall not look to Seller or any Seller Related Parties in
connection with the foregoing for any redress or relief. This release shall be given full force
and effect according to each of its expressed terms and provisions, including those relating to
unknown and unsuspected claims, damages and causes of action.

          8.3 Survival. The provisions of this Section 8 shall survive the Closing or earlier
termination of this Agreement.

     9. Remedies For Default and Disposition of the Deposit.

          9.1 Seller Defaults. If the transaction herein provided shall not be closed by reason
of Seller’s default under this Agreement, then Purchaser shall have, as its exclusive remedies, the
right to either (a) terminate this Agreement [in which event the Deposit (and all interest earned
thereon) shall be returned to Purchaser, and neither party hereto shall have any further obligation
or liability to the other except with respect to those provisions of this Agreement which expressly
survive the termination of this Agreement], Purchaser hereby waiving any right or claim to damages
for Seller’s breach, or (b) specifically enforce this Agreement (but no other action, for damages
or otherwise, shall be permitted); provided that any action by Purchaser for specific performance
must be filed, if at all, within thirty (30) days of

38

 

Seller’s default, and the failure to file within such period shall constitute a waiver by
Purchaser of such right and remedy. If Purchaser shall not have filed an action for specific
performance within the aforementioned time period or so notified Seller of its election to
terminate this Agreement, Purchaser’s sole remedy shall be to terminate this Agreement in
accordance with clause (a) above. Purchaser shall not have any other rights or remedies hereunder
as a result of any default by Seller prior to Closing, and Purchaser hereby waives any other such
remedy as a result of a default hereunder by Seller. Without limiting the generality of the
foregoing, Purchaser expressly waives its rights to seek damages from Seller in the event of
Seller’s default hereunder. Nothing contained in this Section 9.1 will be deemed to limit
Purchaser’s rights or Seller’s obligations under any Seller indemnity requirement under this
Agreement.

          9.2 Purchaser Defaults. Notwithstanding anything to the contrary set forth in Section
9.1, in the event the transaction contemplated by this Agreement shall not close on account of
Purchaser’s default, the Deposit (and all interest earned thereon) shall be paid to Seller, as full
liquidated damages, and when such payment has been received, this Agreement shall terminate
(subject to the provisions of this Agreement that expressly survive the termination of this
Agreement), and no other remedy, including the remedy of specific performance, shall be available
for Purchaser’s breach of this Agreement; provided, however, nothing in this Agreement shall be
construed to limit Seller’s rights or damages under any indemnities given by Purchaser to Seller
under this Agreement. Purchaser and Seller acknowledge and agree that it would be difficult or
impossible to accurately and precisely ascertain the actual damages suffered by Seller as a result
of any default by Purchaser and agree that the amount of the Deposit (together with all interest
earned thereon) is a reasonable pre-estimate of the probable loss to Seller, and that receipt of
the Deposit (and all interest earned thereon) as liquidated damages is reasonable compensation, as
permitted by O.C.G.A. Section 13-6-7, and does not constitute a penalty. Nothing contained in this
Section 9.2 will be deemed to limit Seller’s rights or Purchaser’s obligations under Sections 4.2
(including, without limitation, Section 4.2.3) and 10.1.

          9.3 Disposition of Deposit. In the event the transaction contemplated by this
Agreement shall close, the Deposit (and all interest earned thereon) shall be applied as a partial
payment of the Purchase Price.

     10. Miscellaneous.

          10.1 Brokers.

               10.1.1 Except as provided in Section 10.1.2 below, Seller represents and warrants to
Purchaser, and Purchaser represents and warrants to Seller, that no broker or finder has been
engaged by it, respectively, in connection with the sale contemplated under this Agreement. In the
event of a claim for broker’s or finder’s fee or commissions in connection with the sale
contemplated by this Agreement, then Seller shall indemnify, defend and hold harmless Purchaser
from the same if it shall be based upon any statement or agreement alleged to have been made by
Seller, and Purchaser shall indemnify, defend and hold harmless Seller from the same if it shall be
based upon any statement or agreement alleged to have been made by Purchaser. The indemnification
obligations under this Section 10.1.1 shall survive the Closing or a termination of this Agreement.

39

 

               10.1.2 If and only if the sale contemplated hereunder closes, Seller has agreed to pay a
brokerage commission to Cushman & Wakefield of Georgia, Inc., a Georgia corporation (“Broker”),
pursuant to a separate written agreement between Seller and Broker. Broker shall pay a portion of
such brokerage commission to PM Realty Group, L.P., a Delaware limited partnership (“PM”), pursuant
to a separate written agreement between Broker and PM. Seller shall indemnify, defend and hold
harmless Purchaser from and against any claim by Broker or PM for any payment due by virtue of the
transaction contemplated under this Agreement. Section 10.1.1 hereof is not intended to apply to
leasing commissions incurred in connection with the Leases.

          10.2 Exhibits; Entire Agreement; Modification. All exhibits attached and referred to
in this Agreement are hereby incorporated herein as if fully set forth in (and shall be deemed to
be a part of ) this Agreement. All prior statements, understandings, letters of intent,
representations and agreements between the parties, oral or written, are superseded by and merged
in this Agreement, which alone fully and completely expresses the agreement between Seller and
Purchaser in connection with this transaction and which is entered into after full investigation,
neither party relying upon any statement, understanding, representation or agreement made by the
other not embodied in this Agreement. Except as otherwise expressly provided herein, all of
Seller’s representations, warranties, covenants and agreements herein shall merge in the documents
and agreements executed at the Closing and shall not survive the Closing. This Agreement may not
be modified or amended except by written agreement signed by both parties. Typewritten or
handwritten provisions inserted in this Agreement or in the exhibits hereto (and initialed by the
parties) shall control all printed provisions in conflict therewith.

          10.3 Business Days. Whenever any action must be taken (including the giving of notice
or the delivery of documents) under this Agreement during a certain period of time (or by a
particular date) that ends (or occurs) on a non-Business Day, then such period (or date) shall be
extended until the next succeeding Business Day. As used herein, the term “Business Day” shall be
deemed to mean any day, other than a Saturday or Sunday, on which commercial banks in the State of
Georgia are not required or authorized to be closed for business.

          10.4 Interpretation. Section headings shall not be used in construing this Agreement.
Each party acknowledges that such party and its counsel, after negotiation and consultation, have
reviewed and revised this Agreement. As such, the terms of this Agreement shall be fairly
construed and the usual rule of construction, to wit, that ambiguities in this Agreement should be
resolved against the drafting party, shall not be employed in the interpretation of this Agreement
or any amendments, modifications or exhibits hereto or thereto. Whenever the words “including”,
“include” or “includes” are used in this Agreement, they shall be interpreted in a non-exclusive
manner. Use of the words “herein,” “hereof,” “hereunder” and any other words of similar import
refer to this Agreement as a whole and not to any particular article, section or other paragraph of
this Agreement unless specifically noted otherwise in this Agreement. Except as otherwise
indicated, all Exhibit and Section references in this Agreement shall be deemed to refer to the
Exhibits and Sections in this Agreement.

40

 

          10.5 Governing Law. This Agreement shall be construed and enforced in accordance with
the laws of the State of Georgia, without reference to the conflicts of laws or choice of law
provisions thereof.

          10.6 Successors and Assigns. Purchaser may not assign or transfer its rights or
obligations under this Agreement without the prior written consent of the Seller, which consent may
be given or withheld in the sole and absolute discretion of Seller; provided that, in the event of
such an assignment or transfer, the transferee shall assume in writing all of the transferor’s
obligations hereunder (but Purchaser or any subsequent transferor shall not be released from its
obligations hereunder). Notwithstanding and without limiting the foregoing, no consent given by
Seller to any transfer or assignment of Purchaser’s rights or obligations hereunder shall be deemed
to constitute a consent to any other transfer or assignment of Purchaser’s rights or obligations
hereunder and no transfer or assignment in violation of the provisions hereof shall be valid or
enforceable. Subject to the foregoing, this Agreement and the terms and provisions hereof shall
inure to the benefit of and be binding upon the successors and assigns of the parties.

          10.7 Notices. Any notice or communication required or permitted hereunder shall be in
writing and shall be sent either by: (a) personal delivery service with charges therefor billed to
shipper; (b) nationally recognized overnight delivery service (such as Federal Express or United
Parcel Service) with charges therefor billed to shipper; or (c) facsimile (provided that a copy of
such facsimile is sent by personal delivery or recognized overnight delivery service in the manner
previously described on the same day as transmission of the facsimile), addressed to Seller or
Purchaser at the address set forth below, or at such other address as Seller or Purchaser may have
designated by notice to the other given as provided above. Any notice or communication sent as
above provided shall be deemed effective only if and when received by the party to be notified
between the hours of 8:00 a.m. and 5:00 p.m. of any Business Day with delivery made after such
hours to be deemed received the following Business Day. Notices given by counsel to the Purchaser
shall be deemed given by Purchaser and notices given by counsel to the Seller shall be deemed given
by Seller. Any notice or communication required or permitted hereunder shall be addressed as
follows:

To Seller:

Sumitomo Life Realty (N.Y.), Inc.

1201 West Peachtree Street

Suite 5099

Atlanta, Georgia 30309

Attention: Ms. Cynthia Robinson Alexander,

                 Senior Vice President

Facsimile: (404) 364-3265

Telephone: (404) 364-3260

With a Copy to:

41

 

Sumitomo Life Realty (N.Y.), Inc.

600 Lexington

101 East 52nd Street

Second Floor

New York, New York 10022

Attention: Mr. Norio Morimoto,

                 President

Facsimile: (212) 750-7931

Telephone: (212) 521-8370

With a Copy To:

Scoggins & Goodman, P.C.

2800 Marquis One Tower

245 Peachtree Center Avenue

Atlanta, Georgia 30303-1227

Attention: Randall B. Scoggins, Esq.

Facsimile: (404) 659-3021

Telephone: (404) 420-5701

To Purchaser:

c/o Hines Interests Limited Partnership

2800 Post Oak Blvd., 48th Floor

Houston, Texas 77056-6118

Attention: Mr. Edmund Donaldson

Facsimile: (713) 966-2075

Telephone: (713) 966-2660

with a copy to:

c/o Hines Interests Limited Partnership

Five Ravinia Drive

Atlanta, GA 30345

Attention: Mr. Kurt Hartman

Facsimile: (770) 206-5325

Telephone: (770) 206-5300

with a copy to:

King & Spalding LLP

1180 Peachtree Street

Atlanta, Georgia 30309

Attention: Scott J. Arnold, Esq./ D. Clayton Howell, Esq.

Facsimile: (404) 572-4600

Telephone: (404) 572-5131

42

 

          10.8 Third Parties. Nothing in this Agreement, whether expressed or implied, is
intended to confer any rights or remedies under or by reason of this Agreement upon any other
person other than the parties hereto and their respective permitted successors and assigns, nor is
anything in this Agreement intended to relieve or discharge the obligation or liability of any
third persons to any party to this Agreement, nor shall any provision give any third parties any
right of subrogation or action over or against any party to this Agreement. This Agreement is not
intended to and does not create any third party beneficiary rights whatsoever.

          10.9 Legal Costs. The parties hereto agree that they shall pay directly any and all
legal costs which they have incurred on their own behalf in the preparation of this Agreement and
all deeds and other agreements pertaining to this transaction, and that such legal costs shall not
be part of the closing costs.

          10.10 Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original, but all of which shall constitute one and the same document.
Facsimile and .PDF signatures shall be deemed originals for purposes of this Agreement. In the
event that this Agreement is executed and delivered by way of facsimile or electronic transmission,
each party delivering a facsimile or .PDF counterpart shall promptly deliver an ink-signed original
counterpart of the Agreement to the other party by overnight courier service; provided however,
that the failure of a party to deliver an ink-signed original counterpart shall not in any way
affect the validity, enforceability or binding effect of a counterpart executed and delivered by
facsimile or electronic transmission.

          10.11 Effectiveness. The parties hereto agree that the submission of a draft of this
Agreement by one party to another is not intended by either party to be an offer to enter into a
legally binding contract with respect to the purchase and sale of the Property. The parties shall
be legally bound with respect to the purchase and sale of the Property pursuant to the terms of
this Agreement only if and when the parties have been able to negotiate all of the terms and
provisions of this Agreement in a manner acceptable to each of the parties in their respective sole
discretion, and both Seller and Purchaser have fully executed and delivered to each other a
counterpart of this Agreement.

          10.12 No Implied Waivers. No failure or delay of either party in the exercise of any
right or remedy given to such party hereunder or the waiver by any party of any condition hereunder
for its benefit (unless the time specified in this Agreement for exercise of such right or remedy
has expired) shall constitute a waiver of any other or further right or remedy nor shall any single
or partial exercise of any right or remedy preclude other or further exercise thereof or any other
right or remedy. No waiver by either party of any breach hereunder or failure or refusal by the
other party to comply with its obligations shall be deemed a waiver of any other or subsequent
breach, failure or refusal to so comply.

          10.13 Discharge of Seller’s Obligations. Except as otherwise expressly provided in
this Agreement, the delivery by Seller and the acceptance by Purchaser of the Deed and the
execution and delivery by Seller and Purchaser of the Assignment and Assumption of Ground Lease,
shall be deemed a discharge of all of the obligations of Seller hereunder and all of Seller’s
representations, warranties, covenants and agreements in this Agreement shall merge in the
documents and agreements executed at the Closing and shall not survive the Closing, except and

43

 

to the extent that, pursuant to the express provisions of this Agreement, any of such
representations, warranties, covenants or agreements are to survive the Closing.

          10.14 No Recordation. Neither this Agreement, nor any short-form or memorandum of
this Agreement, shall be recorded in the public records. Any attempts to record this Agreement, or
any short-form or memorandum of this Agreement, by or on behalf of Purchaser shall, at Seller’s
option, cause all of the effect of enforcement of any of its terms to become null and void, and
same shall not constitute constructive notice of its existence or constitute a cloud on title.
Purchaser hereby indemnifies and exonerates Seller from all loss, claim, expense, liability, action
or demand (including, but not limited to, reasonable attorneys’ fees and expenses through and
including all appellate proceedings) arising out of or in connection with the improper or
unauthorized recording of this Agreement or any short-form or memorandum of this Agreement or any
reference hereto by Purchaser or any agent or representative of Purchaser in any recorded document.

          10.15 Unenforceability. If all or any portion of any provision of this Agreement
shall be held to be invalid, illegal or unenforceable in any respect, then such invalidity,
illegality or unenforceability shall not affect any other provision hereof, and such provision
shall be limited and construed as if such invalid, illegal or unenforceable provision or portion
thereof were not contained herein unless doing so would materially and adversely affect a party or
the benefits that such party is entitled to receive under this Agreement.

          10.16 Disclosure. Notwithstanding any terms or conditions in this Agreement to the
contrary, but subject to restrictions reasonably necessary to comply with federal or state
securities laws, any person may disclose to any and all persons, without limitation of any kind,
the tax treatment and tax structure of the transaction and all materials of any kind (including
opinions or other tax analyses) that are provided relating to such tax treatment and tax structure.
For the avoidance of doubt, this authorization is not intended to permit disclosure of the names
of, or other identifying information regarding, the participants in the transaction, or of any
information or the portion of any materials not relevant to the tax treatment or tax structure of
the transaction. The provisions of this Section shall survive the Closing.

          10.17 Designation of Reporting Person. In order to assure compliance with the
requirements of Section 6045 of the Code and any related reporting requirements of the Code, the
parties hereto agree as follows:

               (a) The Title Company (for purposes of this Section, the “Reporting Person”), by its execution
hereof, hereby assumes all responsibilities for information reporting required under Section
6045(e) of the Code.

               (b) Seller and Purchaser each hereby agree:

          (i) to provide to the Reporting Person all information and certifications regarding
such party, as reasonably requested by the Reporting Person or otherwise required to be
provided by a party to the transaction described herein under Section 6045 of the Code; and

44

 

          (ii) to provide to the Reporting Person such party’s taxpayer identification number and
a statement (on Internal Revenue Service Form W-9 or an acceptable substitute form, or on
any other form the applicable current or future Code sections and regulations might require
and/or any form requested by the Reporting Person), signed under penalties of perjury,
stating that the taxpayer identification number supplied by such party to the Reporting
Person is correct.

               (c) Each party hereto agrees to retain this Agreement for not less than four years from the
end of the calendar year in which Closing occurred, and to produce it to the Internal Revenue
Service upon a valid request therefor.

               (d) The addresses for Seller and Purchaser are as set forth in Section 10.7 hereof, and the
real estate subject to the transfer provided for in this Agreement is described in Exhibit A-1 and
Exhibit A-2.

The provisions of this Section 10.17 shall survive the Closing.

          10.18 Time of Essence. Time is of the essence of this Agreement.

          10.19 Delivery of Possession. Possession of the Property shall be granted to
Purchaser at Closing, subject to the rights of tenants in possession.

          10.20 USA Patriot Act. Each of Purchaser and Seller represents to the other that it
is not: (a) an individual or entity listed on the Annex, or otherwise subject, to section 1 of
Presidential Executive Order No. 13224; or (b) or a person, group, nation or entity identified in
the “Alphabetical Listing of Blocked Persons, Specially Designated Nationals, Specially Designated
Terrorists, Foreign Terrorist Organizations and Specially Designated Narcotics Traffickers” in
Appendix A to 31 C.F.R. Chapter V, as amended and in effect from time to time and maintained by the
U.S. Department of the Treasury’s Office of Foreign Assets Control.

          10.21 Waiver of Trial by Jury. SELLER AND PURCHASER HEREBY WAIVE TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER ARISING IN TORT OR CONTRACT) BROUGHT BY EITHER AGAINST
THE OTHER ON ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT. The provisions
of this Section shall survive the Closing.

          10.22 Limitation of Liability.

               10.22.1 NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT OR ANY DOCUMENTS
EXECUTED IN CONNECTION HEREWITH, IF THE CLOSING OF THE TRANSACTION CONTEMPLATED HEREUNDER SHALL
HAVE OCCURRED, THE AGGREGATE LIABILITY OF SELLER ARISING PURSUANT TO OR IN CONNECTION WITH THE
REPRESENTATIONS, WARRANTIES, INDEMNIFICATIONS, COVENANTS OR OTHER OBLIGATIONS (WHETHER EXPRESS OR
IMPLIED) OF SELLER UNDER THIS AGREEMENT (OR ANY DOCUMENT OR CERTIFICATE EXECUTED OR DELIVERED IN
CONNECTION

45

 

HEREWITH) SHALL NOT EXCEED SEVEN MILLION AND NO/100THS DOLLARS ($7,000,000.00).

               10.22.2 NO CLAIM BY PURCHASER ALLEGING A BREACH BY SELLER OF ANY REPRESENTATION, WARRANTY
AND/OR COVENANT OF SELLER CONTAINED HEREIN OR IN ANY OTHER DOCUMENT ASSOCIATED WITH THE TRANSACTION
CONTEMPLATED HEREBY MAY BE MADE, AND SELLER SHALL NOT BE LIABLE FOR ANY JUDGMENT IN ANY ACTION
BASED UPON ANY SUCH CLAIM, UNLESS AND UNTIL SUCH CLAIM, EITHER ALONE OR TOGETHER WITH ANY OTHER
CLAIMS BY PURCHASER ALLEGING A BREACH BY SELLER OF ANY SUCH REPRESENTATION, WARRANTY AND/OR
COVENANT, IS FOR AN AGGREGATE AMOUNT IN EXCESS OF TWO HUNDRED FIFTY THOUSAND AND NO/100THS DOLLARS
($250,000.00) (THE “FLOOR AMOUNT”), IN WHICH EVENT SELLER’S LIABILITY RESPECTING ANY FINAL JUDGMENT
CONCERNING SUCH CLAIM OR CLAIMS SHALL BE FOR THE ENTIRE AMOUNT THEREOF, SUBJECT TO THE LIMITATION
SET FORTH IN SECTION 10.22.1 ABOVE; PROVIDED, HOWEVER, THAT IF ANY SUCH FINAL JUDGMENT IS FOR AN
AMOUNT THAT IS LESS THAN OR EQUAL TO THE FLOOR AMOUNT, THEN SELLER SHALL HAVE NO LIABILITY WITH
RESPECT THERETO.

               10.22.3 NO SHAREHOLDER OR AGENT OF SELLER, NOR ANY SELLER RELATED PARTIES, SHALL HAVE ANY
PERSONAL LIABILITY, DIRECTLY OR INDIRECTLY, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY
AGREEMENT MADE OR ENTERED INTO UNDER OR PURSUANT TO THE PROVISIONS OF THIS AGREEMENT, OR ANY
AMENDMENT OR AMENDMENTS TO ANY OF THE FOREGOING MADE AT ANY TIME OR TIMES, HERETOFORE OR HEREAFTER,
AND PURCHASER AND ITS SUCCESSORS AND ASSIGNS AND, WITHOUT LIMITATION, ALL OTHER PERSONS AND
ENTITIES, SHALL LOOK SOLELY TO SELLER’S ASSETS FOR THE PAYMENT OF ANY CLAIM OR FOR ANY PERFORMANCE,
AND PURCHASER, ON BEHALF OF ITSELF AND ITS SUCCESSORS AND ASSIGNS, HEREBY WAIVES ANY AND ALL SUCH
PERSONAL LIABILITY. PURCHASER FURTHER AGREES NOT TO SUE OR OTHERWISE SEEK TO ENFORCE ANY PERSONAL
OBLIGATION AGAINST ANY SHAREHOLDER OR AGENT OF SELLER, OR ANY SELLER RELATED PARTIES, WITH RESPECT
TO ANY MATTERS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, PURCHASER HEREBY UNCONDITIONALLY AND
IRREVOCABLY WAIVES ANY AND ALL CLAIMS AND CAUSES OF ACTION OF ANY NATURE WHATSOEVER IT MAY NOW OR
HEREAFTER HAVE AGAINST ANY SHAREHOLDER OR AGENT OF SELLER, OR ANY SELLER RELATED PARTIES, AND
HEREBY UNCONDITIONALLY AND IRREVOCABLY RELEASES AND DISCHARGES ANY SHAREHOLDER OR AGENT OF SELLER,
OR ANY SELLER RELATED PARTIES, FROM ANY AND ALL LIABILITY WHATSOEVER WHICH MAY NOW OR HEREAFTER
ACCRUE IN FAVOR OF PURCHASER AGAINST ANY SHAREHOLDER OR AGENT OF SELLER, OR ANY SELLER RELATED
PARTIES,

46

 

IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

               10.22.4
PURCHASER SHALL FIRST SEEK RECOVERY FROM ANY APPLICABLE INSURANCE POLICIES, CONTRACTS AND LEASES PRIOR TO SEEKING ANY RECOVERY FROM SELLER. SELLER SHALL NOT BE LIABLE TO PURCHASER IF
PURCHASER’S CLAIM IS SATISFIED FROM SUCH INSURANCE POLICIES, CONTRACTS OR LEASES.

               10.22.5 The provisions of this Section 10.22 shall survive the Closing or a termination of
this Agreement.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

	 	 	 	 	 
	 

	 	SELLER:
	 
	 	 	 	 
	 	 	SUMITOMO LIFE REALTY (N.Y.), INC.,
	 	 	a New York corporation
	 
	 	 	 	 
	 

	 	By:	/s/ Cynthia Robinson Alexander 
	 

	 	 	 
	 

	 	 	Cynthia Robinson Alexander,
	 

	 	 	Senior Vice President
	 
	 	 	 	 
	 

	 	Attest:	/s/ Shinichi Kawanishi 
	 

	 	 
	 

	 	 	Shinichi Kawanishi, Vice President

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

47

 

	 	 	 	 	 	 	 
	 	 	PURCHASER:
	 
	 	 	 	 	 	 
	 	 	HINES ONE ATLANTIC CENTER LP,
	 	 	a Delaware limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	Hines One Atlantic GP LLC,
	 	 	 	 	a Delaware limited liability company,
	 	 	 	 	its general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/  Edmund A. Donaldson
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Edmund A. Donaldson,
	 

	 	 	 	 	 	Manager

WITH RESPECT TO SECTION 10.17 ONLY:

CHICAGO TITLE INSURANCE COMPANY,

a Missouri insurance company

	 	 	 	 	 
	By:
	 	/s/  	 	 
	 

	 	 

	 	 
	Name:

	 	 
	 	 
	 

	 	 

	 	 
	Title:

	 	Authorized signatory
	 	 
	 

	 	 

	 	 

The undersigned, Hines-Sumisei US Core Office Properties LP, a Delaware limited partnership, as the
owner of no less than eighty percent (80%) of the direct or indirect interests in Purchaser, hereby
absolutely, unconditionally and irrevocably guarantees and promises to Seller the prompt, complete
and full payment and performance when due of Purchaser’s obligations under the within and foregoing
Contract of Sale, subject, in all instances, to the same limitation on liability as applicable to
Purchaser.

	 	 	 	 	 	 	 
	 	 	HINES-SUMISEI US CORE
OFFICE 

PROPERTIES LP, a Delaware limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	Hines-Sumisei U.S. Core Office Trust,
	 	 	 	 	a Maryland real estate investment trust,
	 	 	 	 	its general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/  Edmund A. Donaldson
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Edmund A. Donaldson,
	 

	 	 	 	 	 	Vice President

48

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]