Document:

exv10w12

 

Exhibit 10.12

FIFTH AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE

OF REAL PROPERTY AND ESCROW INSTRUCTIONS 

     THIS FIFTH AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND ESCROW
INSTRUCTIONS (this “Amendment”) is made and entered into by and between GREIT- Hawthorne Plaza, LP,
a Virginia limited partnership, (“Seller”), and TMG PARTNERS, a California corporation (“Buyer”),
on and as of August 8, 2006.

RECITALS

     A. Buyer and Seller entered into that certain Agreement for Purchase and Sale of Real Property
and Escrow Instructions, dated June 26, 2006, as amended by that certain First Amendment to
Agreement for Purchase and Sale of Real Property and Escrow Instructions, dated August 2, 2006,
that certain Second Amendment to Agreement for Purchase and Sale of Real Property and Escrow
Instructions, dated August 3, 2006, that certain Third Amendment to Agreement for Purchase and Sale
of Real Property and Escrow Instructions, dated August 4, 2006, and that certain Fourth Amendment
to Agreement for Purchase and Sale of Real Property and Escrow Instructions, dated August 7, 2006
(the “Purchase Agreement”), pursuant to which Seller agreed to sell and Buyer agreed to purchase
certain improved real property commonly known as 75 Hawthorne and 95 Hawthorne in San Francisco,
California, together with certain associated real and personal property (the improved real property
and associated property is referred to in the Purchase Agreement, collectively, as the “Property”),
on the terms and conditions set forth therein.

     B. Buyer and Seller desire to amend the Purchase Agreement on each and all of the terms,
provisions and conditions contained herein.

     NOW THEREFORE, in consideration of the promises, terms and conditions contained herein
and such other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Buyer and Seller hereby agree as follows:

     1. Defined Terms. All capitalized terms used herein but not otherwise
defined herein shall have the meanings ascribed to such terms as set forth in the Purchase
Agreement.

     2. Purchase Price. The following language at the beginning of Section
2 of the Purchase Agreement is hereby deleted:

“Subject to the charges, prorations and other adjustments set forth in this
Agreement, the total purchase price of the Property shall be One Hundred Twenty
Seven Million Dollars ($127,000,000.00) (“Purchase Price”)”;

and the following language is hereby added at the beginning of Section 2 of the Purchase
Agreement in place thereof:

“Subject to the charges, prorations and other adjustments set forth in this
Agreement, the total purchase price of the Property shall be One Hundred Twenty Five
Million Dollars ($125,000,000.00) (“Purchase Price”)”.

     3. Release of Portion of Additional Deposit. Within one (1) business day
after Escrow Holder’s receipt of the Additional Deposit and a fully executed copy of this
Amendment, Escrow Holder shall release One Million Dollars ($1,000,000.00) of the Additional
Deposit to Seller. For all purposes of this Agreement, except as otherwise provided in Section 2.1.4
below, the portion of

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the Additional Deposit released to Seller under this Section shall nevertheless be deemed at
all times to comprise a portion of the Additional Deposit.”

     4. Section 2.1.4. Section 2.1.4 of the Purchase Agreement is hereby amended and
restated in its entirety as follows:

“Except to the extent that any portion of the Deposit is released by Escrow Holder
to Seller as expressly permitted by this Agreement, Escrow Holder
shall place the Deposit into an interest-bearing money market account at a bank or
other financial institution reasonably satisfactory to Buyer, and interest thereon
shall be credited to Buyer’s account.”

     5. Closing. Section 7.2.1 of the Purchase Agreement, which provides
“Escrow shall close (“Closing”) on the date that is thirty (30) days following the end of the
Inspection Period, or such earlier date as shall be mutually agreed to by the parties” is hereby
deleted, and replaced with the following: “Escrow shall close (“Closing”) on Thursday, September
14, 2006, or such earlier date as shall be mutually agreed to by the parties.”

     6. Leasing Costs.

          (a) Seller and Buyer hereby acknowledge and agree that no new leases or amendments to
existing Leases have been entered into by Seller during the period commencing with the Effective
Date and ending on the date that is five (5) business days prior to the Due Diligence Expiration
Date and, accordingly, Buyer shall not bear any tenant improvement costs or leasing commissions
pursuant to Section 7.6.1(f)(B) of the Purchase Agreement.

          (b) Seller and Buyer acknowledge and agree that Seller’s obligations under the second
paragraph of Section 7.6.1(f) of the Purchase Agreement include the obligation to pay for (via a
credit to Buyer at Closing) the following: All hard and soft costs of (i) construction of a
multi-tenant corridor on the 20th floor to provide Vibrant Media with access to emergency exit
stairs and bathrooms and as otherwise required by law; and (ii) demising partitions on both ends of
the Vibrant Media space, which partitions shall be finished (ready-for-paint) on both sides of the
partitions. Notwithstanding the foregoing, Buyer’s obligations under the third paragraph of Section
7.6.1(f) of the Purchase Agreement to bear tenant improvement costs and leasing commissions of the
lease dated June 5, 2006, by and between Vibrant Media, as tenant, and Seller, as landlord, which
tenant improvement costs and commissions are identified on Exhibit E to the Purchase
Agreement, remains unchanged.

     7. List of Leases. The List of Leases attached as Exhibit F to the Purchase Agreement
is hereby deleted in its entirety and replaced with the List of Leases attached as Exhibit A
to this Amendment.

     8. Bill of Sale. The form of Bill of Sale attached to the Purchase Agreement as
Exhibit D thereto is hereby modified by deleting the first paragraph thereof and replacing it
with the following:

For good and valuable consideration, receipt and sufficiency of which is hereby
acknowledged, the undersigned,                     , a                     
(“Seller”), does hereby give, grant, bargain, sell,
transfer, assign, convey and deliver to                    , a                    
(“Buyer”), all personal property of Seller located on, in, or used or useful in
connection with that certain real property (the “Real Property”) located in the City
and County of San Francisco, State of California, commonly known as 75

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Hawthorne and 95 Hawthorne, which personal property includes, without
limitation, that personal property listed on Exhibit A attached hereto.

Seller and Buyer agree that Exhibit A to the Bill of Sale shall be in the form of Exhibit B
attached to this Amendment.

     9. Estoppels. Buyer acknowledges that Seller has obtained and delivered to
Buyer prior to the Due Diligence Date estoppels in form and substance satisfactory to Buyer from
Tenants representing seventy percent (70%) of the leasable area of the Real Property that was
leased and occupied as of the Effective Date as required by Section 10.1.3 of the Purchase
Agreement; provided, however, Buyer does not waive the requirement that all estoppels be dated
within forty-five (45) days of Closing. The third sentence in Section 10.1.3 of the Purchase
Agreement which reads “Buyer shall notify Seller within three (3) business days of receipt of a
copy of the executed estoppel certificate of its approval or disapproval and the basis of such
disapproval, if disapproved” is hereby deleted.

     10. Reaffirmation of Purchase Agreement. Buyer and Seller acknowledge and
agree that the Purchase Agreement, as modified by this Amendment, is hereby reaffirmed, ratified
and confirmed in its entirety. Except as modified by this Amendment, the terms and provisions of
the Purchase Agreement shall remain unchanged. If there is any conflict between the terms and
provisions of the Purchase Agreement and this Amendment, the terms and provisions of this Amendment
shall control and prevail. References to the Purchase Agreement in the exhibits to the Purchase
Agreement shall be deemed to refer to, or shall be modified prior to Closing to refer to, the
Purchase Agreement as amended by this Amendment.

     11. Governing Law. This Amendment shall be governed by, construed and enforced
in accordance with, the laws of the State of California.

     12. Counterparts. This Amendment may be executed in one or more counterparts.
All executed counterparts shall constitute one agreement and each counterpart shall be deemed an
original. The parties hereby acknowledge and agree that facsimile signatures or signatures
transmitted by electronic mail in so-called “pdf’ format shall be legal and binding and shall have
the same full force and effect as if an original of this Amendment had been delivered. Seller and
Buyer (i) intend to be bound by the signatures on any document sent by facsimile or electronic
mail, (ii) are aware that the other party will rely on such signatures, and (iii) hereby waive any
defenses to the enforcement of the terms of this Amendment based on the foregoing forms of
signatures.

     13. Warranty of Authority. The signatories hereto represent that they have
full and complete authority to bind their respective parties to this Amendment and that no other
consent is necessary or required in order for the signatories to execute this Amendment on
behalf of their respective parties.

[text and signatures continue on next page]

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	SELLER:
	 
	 	 	 	 	 	 	 	 	 	 
	GREIT — HAWTHORNE PLAZA, LP,

a Virginia limited partnership
	 	 	By:	 	GREIT — Hawthorne Plaza GP, LLC
	 	 	 	 	a Virginia limited liability company
	 	 	Its:	 	General Partner
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	G REIT, L.P.
	 	 	 	 	 	 	a Virginia limited partnership
	 	 	 	 	Its:	 	Sole Member
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	G REIT, Inc.
	 	 	 	 	 	 	 	 	a Maryland corporation
	 	 	 	 	 	 	Its:	 	General Partner
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	/s/ Andrea R. Biller
	 

	 	 	 	 	 	 	 	Name:
	 	Andrea R. Biller
	 

	 	 	 	 	 	 	 	Title:
	 	Executive Vice President
	 
	 	 	 	 	 	 	 	 	 	 
	BUYER:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	TMG PARTNERS,
	 	 	a California corporation
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Cathy Greenwold
	 	 	 	 	Cathy Greenwold
	 	 	Its:	 	Executive Vice-President

4EX-10.14 FORM OF EMPLOYMENT AGREEMENT R. SALOMON

 

Exhibit 10.14

Form of Employment Agreement, dated as of August 9, 2006, by and between

Robert Salomon and Ashton Woods USA, L.L.C.

     By memorandum dated April 30, 2006, our Board of Directors confirmed to Robert Salomon, our Chief
Financial Officer, his annual salary, bonus calculation and certain severance payments if Mr.
Salomon is terminated following a sale of the Company resulting in a
change of control of our
equity. On August 9, 2006, we entered into an employment agreement with Mr. Salomon, which
addresses the provisions set forth in the memorandum in more detail. The agreement is for a term
of five years ending August 2011, subject to automatic renewal for additional one-year terms absent
notice of termination from either party. The employment agreement provides for an annual based
salary of $200,000 and an annual bonus in an amount equal to 0.75% of our annual net income,
calculated in accordance with generally accepted accounting principles and reflected in our annual
audited financial statements, as adjusted to exclude initial start-up losses of any new division
during the first two years of operation, imputed interest on equity, bonuses paid at the
operational level and specific projects as agreed from time to
time.

     The Agreement also provides for the following payments to Mr. Salomon upon termination of his
employment:

	 	•	 	Upon termination without cause, including upon expiration of the agreement, Mr. Salomon
will be entitled to a severance payment equal to (a) one year of base salary and (b) a
prorated amount of the bonus payable for the then current year through the date of
termination.
	 
	 	•	 	Upon termination for any reason following the sale of the Company, irrespective of form,
Mr. Salomon will be entitled to a severance payment equal to the greater of (a) the bonus
paid pursuant to the employment agreement for the most recently completed fiscal year and
(b) $500,000.

     The agreement also provides for termination with cause and upon death or disability, in which case
Mr. Salomon will receive any accrued salary to the date of termination and any other benefits to
which he is entitled under then existing benefit plans.

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