Document:

exv10w65

 

Exhibit 10.65

AMENDED AND RESTATED

CONTRIBUTION AGREEMENT

(Future Membership Interests)

BY AND BETWEEN

Carr Capital Real Estate Investments, LLC

a Virginia limited liability company,

as Contributor

AND

Columbia Equity, LP,

a Virginia limited partnership,

as Acquirer

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE I THE CONTRIBUTION

	 	 	1	 
	1.1
	 	Contribution of Interests	 	 	1	 
	1.2
	 	Consideration	 	 	1	 
	1.3
	 	Redemption Rights for Units	 	 	2	 
	1.4
	 	Tax Consequences to Contributor	 	 	2	 
	ARTICLE II REPRESENTATIONS AND COVENANTS

	 	 	2	 
	2.1
	 	Representations by Acquirer	 	 	2	 
	2.2
	 	Representations by Contributor	 	 	4	 
	2.3
	 	Covenants of Acquirer	 	 	6	 
	2.4
	 	Covenants of Contributor	 	 	6	 
	ARTICLE III Conditions Precedent to the Closing

	 	 	7	 
	3.1
	 	Conditions to Acquirer’s Obligations	 	 	7	 
	3.2
	 	Conditions to Contributor’s Obligations	 	 	7	 
	ARTICLE IV Closing and Closing Documents

	 	 	8	 
	4.1
	 	Closing	 	 	8	 
	4.2
	 	Contributor’s Deliveries	 	 	8	 
	4.3
	 	Acquirer’s Deliveries	 	 	8	 
	4.4
	 	Fees and Expenses; Closing Costs	 	 	9	 
	4.5
	 	Adjustments	 	 	9	 
	ARTICLE V Miscellaneous

	 	 	9	 
	5.1
	 	Notices	 	 	9	 
	5.2
	 	Entire Agreement; Modifications and Waivers; Cumulative Remedies	 	 	10	 
	5.3
	 	Exhibits	 	 	10	 
	5.4
	 	Successors and Assigns	 	 	10	 
	5.5
	 	Article Headings	 	 	11	 
	5.6
	 	Governing Law	 	 	11	 
	5.7
	 	Counterparts	 	 	11	 
	5.8
	 	Survival	 	 	11	 
	5.9
	 	Severability	 	 	11	 
	5.10
	 	Attorneys’ Fees	 	 	11	 
	EXHIBITS

	A
	 	Assignment and Assumption Agreement	 	 	 	 

 

 

CONTRIBUTION AGREEMENT

      THIS CONTRIBUTION AGREEMENT (this “Agreement”) is made as of this 1st day
of April, 2005 by and between Carr Capital Real Estate Investments, LLC, a Virginia limited
liability company (“Contributor”); and Columbia Equity, LP, a Virginia limited partnership
(“Acquirer”).

RECITALS

      A. Carr Capital Corporation, a District of Columbia corporation (“CCC”) intends to
sponsor a publicly-owned real estate investment trust (the “REIT”), which REIT will own
property and membership interests in entities with direct or indirect ownership over various real
properties and improvements located thereon, contributed by and purchased from Contributor and
other entities in exchange for partnership units (the “Units”) in Acquirer or common stock
in the REIT (“Common Stock”).

      B. Contributor desires to pledge and contribute 100% of any ownership interests acquired by
Contributor during the period between the date first written above and the Closing Date (as defined
below) in any commercial office property (“Property”) in the Greater Washington, DC market
(the “Interests”) to Acquirer, on the terms and conditions hereinafter set forth.

      C. Acquirer desires to acquire the Interests from Contributor, on the terms and conditions
hereinafter set forth.

AGREEMENT

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

ARTICLE I

THE CONTRIBUTION

      1.1 Contribution of Interests. Contributor agrees to contribute, transfer, assign and
convey the Interests to Acquirer, and Acquirer agrees to acquire and accept transfer of the
Interests pursuant to the terms and conditions set forth in this Agreement. The Interests shall be
transferred to Acquirer free and clear of all liens, encumbrances, security interests, prior
assignments or conveyances, conditions, restrictions, voting agreements, claims, and any other
matters affecting title thereto.

      1.2 Consideration. The total consideration (the “Consideration”) for which
Contributor agrees to contribute and assign the Interests to Acquirer, and which Acquirer agrees to
pay or deliver to Contributor, subject to the terms of this Agreement, shall be the issuance to
Contributor of a number of either (i) Units or (ii) if Contributor notifies Acquirer at least
thirty (30) days prior to the IPO, shares of Common Stock, equal to (a) the Contributor’s actual
cash investment in the Interests, plus a rate of return calculated on such investment from the date
it is made until the Closing Date at the Libor Rate (as defined below), (b) divided by the price
per share at which the Common Stock is offered to the public in the underwritten initial public

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offering of the Common Stock (the “IPO”). The term “Libor Rate” shall mean
(a) the rate described as the “London Interbank Offered Rate” for one month in the Money
Rates section of the Wall Street Journal, determined on the Closing Date, plus (b) eight hundred
(800) basis points. On the Closing Date, the Units or Common Stock shall be issued to Contributor.
Upon the request of Contributor, Acquirer shall issue certificates reflecting Contributor’s
ownership of Units or Common Stock. The certificates evidencing the Units or Common Stock will
bear appropriate legends indicating (i) that the Units or Common Stock have not been registered
under the Securities Act of 1933, as amended (“Securities Act”), and (ii) that Acquirer’s
Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”)
restricts the transfer of the Units. Upon receipt of the Units and execution and delivery of the
Partnership Agreement, Contributor shall become a limited partner of Acquirer.

      1.3 Redemption Rights for Units. Each Unit shall be redeemable, at the option of the
holder, in accordance with, but subject to the restrictions contained in, the Partnership
Agreement; provided, however, that such redemption option may not be exercised prior to the first
anniversary of the Closing Date.

      1.4 Tax Consequences to Contributor. Notwithstanding anything to the contrary
contained in this Agreement, including without limitation the use of words and phrases such as
“sell,” “sale,” purchase,” and “pay,” the parties hereto acknowledge and agree that, if and to the
extent Contributor elects to take its Consideration in the form of Units, it is their intent that
the transaction contemplated hereby be treated for federal income tax purposes as the contribution
of the Interests by Contributor to Acquirer in exchange for Units pursuant to Section 721 of the
Internal Revenue Code of 1986, as amended (the “Code”), and not as a transaction in which
Contributor is acting other than in its capacity as a prospective partner of Acquirer.

ARTICLE II

REPRESENTATIONS AND COVENANTS

      2.1 Representations by Acquirer. Acquirer hereby represents and warrants unto
Contributor that the following statements are true, correct, and complete in every material respect
as of the date of this Agreement and will be true, correct, and complete as of the Closing Date:

            (a) Organization and Power. Acquirer is duly organized and validly existing, under
the laws of the Commonwealth of Virginia, and has full right, power, and authority to enter into
this Agreement and to perform all of its obligations under this Agreement; and, the execution and
delivery of this Agreement and the performance by Acquirer of its obligations under this Agreement
have been duly authorized by all requisite action of Acquirer and require no further action or
approval of Acquirer’s partners or of any other individuals or entities in order to constitute this
Agreement as a binding and enforceable obligation of Acquirer.

            (b) Noncontravention. Neither the entry into nor the performance of, or compliance
with, this Agreement by Acquirer has resulted, or will result, in any violation of, or default
under, or result in the acceleration of, any obligation under the Partnership Agreement, or any
mortgage, indenture, lien agreement, note, contract, permit, judgment, decree, order, restrictive
covenant, statute, rule, or regulation applicable to Acquirer.

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            (c) Litigation. There is no action, suit, or proceeding, pending or known to be
threatened, against or affecting Acquirer in any court or before any arbitrator or before any
federal, state, municipal, or other governmental department, commission, board, bureau, agency or
instrumentality which (i) in any manner raises any question affecting the validity or
enforceability of this Agreement, (ii) would reasonably be expected to materially and adversely
affect the business, financial position, or results of operations of Acquirer, or (iii) would
reasonably be expected to materially and adversely affect the ability of Acquirer to perform its
obligations hereunder, or under any document to be delivered pursuant hereto.

            (d) Units and Common Stock Validly Issued. The Common Stock, when and if issued, will
have been duly and validly authorized and issued, free of any preemptive or similar rights, and
will be fully paid and nonassessable. The Units, when and if issued, will have been duly and
validly authorized and issued, free of any preemptive or similar rights, and will be fully paid and
nonassessable, without any obligation to restore capital except as required by the Virginia Revised
Uniform Limited Partnership Act (the “Limited Partnership Act”). If Units are issued to
Contributor as Consideration hereunder, upon execution and delivery of the Partnership Agreement by
Contributor, Contributor shall be admitted as a limited partner of Acquirer as of the Closing Date
and shall be entitled to all of the rights and protections of a limited partner under the Limited
Partnership Act and the provisions of the Partnership Agreement, with the same rights, preferences,
and privileges as all other limited partners on a pari passu basis.

            (e) Consents. Each consent, approval, authorization, order, license, certificate,
permit, registration, designation, or filing by or with any governmental agency or body necessary
for the execution, delivery, and performance of this Agreement or the transactions contemplated
hereby by Acquirer has been obtained.

            (f) Bankruptcy with respect to Acquirer. No Act of Bankruptcy has occurred with
respect to Acquirer. As used herein, “Act of Bankruptcy” shall mean if a party hereto
shall (A) apply for or consent to the appointment of, or the taking of possession by, a receiver,
custodian, trustee or liquidator of itself or of all or a substantial part of its property, (B)
admit in writing its inability to pay its debts as they become due, (C) make a general assignment
for the benefit of its creditors, (D) file a voluntary petition or commence a voluntary case or
proceeding under the Federal Bankruptcy Code (as now or hereafter in effect), (E) be adjudicated
bankrupt or insolvent, (F) file a petition seeking to take advantage of any other law relating to
bankruptcy, insolvency, reorganization, winding-up or composition or adjustment of debts, (G) fail
to controvert in a timely and appropriate manner, or acquiesce in writing to, any petition filed
against it in an involuntary case or proceeding under the Federal Bankruptcy Code (as now or
hereafter in effect), or (H) take any action for the purpose of effecting any of the foregoing.

            (g) Brokerage Commission. Acquirer has not engaged the services of, nor has it or
will it or Contributor become liable to, any real estate agent, broker, finder or any other person
or entity for any brokerage or finder’s fee, commission or other amount with respect to the
transactions described herein on account of any action by Acquirer. Acquirer hereby agrees to
indemnify and hold Contributor and its employees, directors, members, partners, affiliates and
agents harmless against any claims, liabilities, damages or expenses arising out of a breach of the
foregoing. This indemnification shall survive Closing or any termination of this Agreement.

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      2.2 Representations by Contributor. Contributor hereby represents and warrants unto
Acquirer that each and every one of the following statements is true, correct, and complete in
every material respect as of the date of this Agreement and will be true, correct, and complete as
of the Closing Date:

            (a) Organization and Power. Contributor is duly organized, validly existing, and in
good standing as a limited liability company under the laws of the Commonwealth of Virginia.
Contributor has full right, power, and authority to enter into this Agreement and to assume and
perform all of its obligations under this Agreement; and the execution and delivery of this
Agreement and the performance by Contributor of its obligations hereunder have been duly authorized
by all requisite action of Contributor and require no further action or approval of Contributor’s
members or managers or of any other individuals or entities in order to constitute this Agreement
as a binding and enforceable obligation of Contributor.

            (b) Noncontravention. Neither the entry into nor the performance of, or compliance
with, this Agreement by Contributor has resulted, or will result, in any violation of, or default
under, or result in the acceleration of, any obligation under any limited liability company
agreement, operating agreement, regulation, mortgage, indenture, lien agreement, note, contract,
permit, judgment, decree, order, restrictive covenant, statute, rule, or regulation applicable to
Contributor or to the Proceeds.

            (c) Litigation. There is no action, suit, claim, or proceeding pending or threatened
against or affecting Contributor or the Interests in any court, or before any arbitrator, or before
any federal, state, municipal or other governmental department, commission, board, bureau, agency
or instrumentality which (A) in any manner raises any question affecting the validity or
enforceability of this Agreement, (B) would reasonably be expected to materially and adversely
affect the business, financial position or results of operations of Contributor, (C) would
reasonably be expected to materially and adversely affect the ability of Contributor to perform its
obligations hereunder, or under any document to be delivered pursuant hereto, (D) would reasonably
be expected to create a lien on the Interests, any part thereof, or any interest therein, or (E)
would reasonably be expected to adversely affect the Interests, any part thereof, or any interest
therein.

            (d) Good Title. (A) Contributor will have good title to the Interests on the Closing
Date, (B) the Interests on the Closing Date will be free and clear of all liens, encumbrances,
pledges, voting agreements and security interests whatsoever, and (C) Contributor has not granted
any other person or entity an option to purchase or a right of first refusal upon the Interests nor
are there any agreements or understandings between Contributor and any other person or entity with
respect to the disposition of the Interests.

            (e) No Consents. Each consent, approval, authorization, order, license, certificate,
permit, registration, designation, or filing by or with, any governmental agency or body necessary
of the execution, delivery, and performance of this Agreement or the transactions contemplated
hereby by Contributor has been obtained or will be obtained on or before the Closing Date.

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            (f) Securities Law Matters. (i) In acquiring the Units or Common Stock and engaging
in this transaction, neither Contributor nor any member or shareholder thereof is relying upon any
representations made to it by Acquirer, or any of its partners, officers, employees, or agents that
are not contained herein. Contributor is aware of and understands the risks involved in investing
in the Common Stock or in the Units and in the Common Stock issuable upon redemption of such Units.
Contributor has had an opportunity to ask questions of, and to receive answers from, Acquirer and
the REIT or a person or persons authorized to act on their behalf, concerning the terms and
conditions of an investment in the Units and the Common Stock and the financial condition, affairs,
and business of Acquirer and the REIT. Contributor confirms that all documents, records, and
information pertaining to its investment in Acquirer that have been requested by it, have been made
available or delivered to Contributor prior to the date hereof.

                  (ii) Contributor understands that none of the Common Stock, the Units or the Common Stock
issuable upon redemption of the Units have been registered under the Securities Act or any state
securities acts and are instead being offered and sold in reliance on an exemption from such
registration requirements. The Units or Common Stock issuable to Contributor are being acquired
solely for its own account, for investment, and are not being acquired with a view to, or for
resale in connection with, any distribution, subdivision, or fractionalization thereof, in
violation of such laws, and Contributor does not have any present intention to enter into any
contract, undertaking, agreement, or arrangement with respect to any such resale. Contributor
understands that any certificates representing the Units or Common Stock will contain appropriate
legends reflecting the requirement that such Units or Common Stock not be resold by Contributor
without registration under such laws or the availability of an exemption from such registration.

            (g) Accredited Investors. Contributor is an accredited investor as that term is
defined in Rule 501 of Regulation D under the Securities Act of 1933, as amended.

            (h) Tax Matters. Contributor represents and warrants that it has obtained from its
own counsel advice regarding the tax consequences of (i) the transfer of the Interests to Acquirer
and the receipt of Units or Common Stock as consideration therefor, (ii) Contributor’s admission as
a partner of Acquirer, and (iii) any other transaction contemplated by this Agreement. Contributor
further represents and warrants that it has not relied on Acquirer or Acquirer’s representatives or
counsel for such tax advice.

            (i) Bankruptcy with respect to Contributor. No Act of Bankruptcy has occurred with
respect to Contributor.

            (j) Brokerage Commission. Contributor has not engaged the services of, nor has it or
will it or Acquirer become liable to, any real estate agent, broker, finder or any other person or
entity for any brokerage or finder’s fee, commission or other amount with respect to the
transactions described herein on account of any action by Contributor. Contributor hereby agrees
to indemnify and hold Acquirer and its employees, directors, members, partners, affiliates and
agents harmless against any claims, liabilities, damages or expenses arising out of a breach of the
foregoing. This indemnification shall survive Closing or any termination of this Agreement.

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      2.3 Covenants of Acquirer. Acquirer agrees as follows:

            (a) Further Acts. In addition to the acts, instruments and agreements recited herein
and contemplated to be performed, executed and delivered by Acquirer and Contributor, Acquirer
shall perform, execute, and deliver or cause to be performed, executed, and delivered at the
Closing or after the Closing, any and all further acts, instruments, and agreements and provide
such further assurances as Contributor may reasonably require to consummate the transactions
contemplated hereunder.

      2.4 Covenants of Contributor. Contributor agrees as follows:

            (a) Actions Regarding Interests. Except as otherwise permitted hereby, from the date
hereof until the Closing Date, Contributor shall use reasonable commercial efforts not to take any
action or fail to take any action within Contributor’s control the result of which would (1) have a
material adverse effect on the Interests, any Property, Contributor’s ability to contribute,
transfer, assign and convey the Interests to Acquirer or Acquirer’s ability to continue the
ownership and operation thereof after the Closing Date in substantially the same manner as
presently conducted or (2) cause any of the representations and warranties contained in Section 2.2
to be untrue as of the Closing Date.

            (b) Confidentiality. Contributor acknowledges that the matters relating to the REIT,
the IPO, this Agreement, and the other documents, terms, conditions and information related thereto
(collectively, the “Information”) are confidential in nature. Therefore, Contributor
covenants and agrees to keep the Information confidential and will not (except as required by
applicable law, regulation or legal process, and only after compliance with the provisions of this
Section 2.4) prior to the IPO, without Acquirer’s prior written consent, disclose any Information
in any manner whatsoever; provided, however, that the Information may be revealed only to
Contributor’s employees, legal counsel and financial advisors, each of whom shall be informed of
the confidential nature of the Information. In the event that Contributor or its key employees,
legal counsel or financial advisors (collectively, the “Information Group”) are requested
pursuant to, or required by, applicable law, regulation or legal process to disclose any of the
Information, the applicable member of the Information Group will notify Acquirer promptly so that
it may seek a protective order or other appropriate remedy or, in its sole discretion, waive
compliance with the terms of this Section 2.4. Contributor acknowledges that remedies at law may
be inadequate to protect Acquirer or the REIT against any actual or threatened breach of this
Section 2.4, and, without prejudice to any other rights and remedies otherwise available,
Contributor agrees to the granting of injunctive relief in favor of the REIT and/or Acquirer
without proof of actual damages. Notwithstanding any other express or implied agreement to the
contrary, the parties agree and acknowledge that each of them and each of their employees,
representatives, and other agents 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 to any of them relating to such tax
treatment and tax structure, except to the extent that confidentiality is reasonably necessary to
comply with U.S. federal or state securities laws. For purposes of this paragraph, the terms “tax
treatment” and “tax structure” have the meanings specified in Treasury Regulation section
1.6011-4(c).

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            (c) Further Acts. In addition to the acts, instruments and agreements recited herein
and contemplated to be performed, executed and delivered by Acquirer and Contributor, Contributor
shall perform, execute, and deliver or cause to be performed, executed, and delivered at the
Closing or after the Closing, any and all further acts, instruments, and agreements and provide
such further assurances as Acquirer may reasonably require to consummate the transactions
contemplated hereunder.

ARTICLE III

CONDITIONS PRECEDENT TO THE CLOSING

      3.1 Conditions to Acquirer’s Obligations. In addition to any other conditions set
forth in this Agreement, Acquirer’s obligation to consummate the Closing is subject to the timely
satisfaction of each and every one of the conditions and requirements set forth in this Section
3.1, all of which shall be conditions precedent to Acquirer’s obligations under this Agreement.

            (a) Contributor’s Obligations. Contributor shall have performed all obligations of
Contributor hereunder which are to be performed prior to Closing, and shall have delivered or
caused to be delivered to Acquirer, all of the documents and other information required of
Contributor pursuant to Section 4.2.

            (b) Contributor’s Representations and Warranties. Contributor’s representations and
warranties set forth in Section 2.2 shall be true and correct in all material respects as if made
again on the Closing Date, and Contributor shall have executed and delivered to Acquirer at Closing
a certificate to the foregoing effect.

            (c) No Injunction. On the Closing Date, there shall be no effective injunction, writ,
preliminary restraining order or other order issued by a court of competent jurisdiction
restraining or prohibiting the consummation of the transactions contemplated hereby.

            (d) Completion of IPO. The IPO shall have been completed.

            (e) Closing. The Closing shall have occurred on or prior to June 30, 2005.

      3.2 Conditions to Contributor’s Obligations. In addition to any other conditions set
forth in this Agreement, Contributor’s obligation to consummate the Closing is subject to the
timely satisfaction of each and every one of the conditions and requirements set forth in this
Section 3.2, all of which shall be conditions precedent to Contributor’s obligations under this
Agreement.

            (a) Acquirer’s Obligations. Acquirer shall have performed all obligations of Acquirer
hereunder which are to be performed prior to Closing, and shall have delivered or caused to be
delivered to Contributor, all of the documents and other information required of Acquirer pursuant
to Section 4.3.

            (b) Acquirer’s Representations and Warranties. Acquirer’s representations and
warranties set forth in Section 2.1 shall be true and correct in all material respects as if made
again on the Closing Date, and Acquirer shall have executed and delivered to Contributor at Closing
a certificate to the foregoing effect.

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            (c) No Injunction. On the Closing Date, there shall be no effective injunction, writ,
preliminary restraining order or other order issued by a court of competent jurisdiction
restraining or prohibiting the consummation of the transactions contemplated hereby.

            (d) Completion of IPO. The IPO shall have been completed.

            (e) Closing. The Closing shall have occurred on or prior to June 30, 2005.

ARTICLE IV

CLOSING AND CLOSING DOCUMENTS

      4.1 Closing. The consummation and closing (the “Closing”) of the transactions
contemplated under this Agreement shall take place at the offices of Hunton & Williams LLP,
Washington, D.C., or such other place as is mutually agreeable to the parties, on the date of the
closing of the IPO (the “Closing Date”), or as otherwise set by agreement of the parties;
provided, however, that this Agreement shall terminate if Closing does not occur prior to June 30,
2005.

      4.2 Contributor’s Deliveries. At the Closing, Contributor shall deliver the following
to Acquirer in addition to all other items required to be delivered to Acquirer by Contributor:

            (a) Assignment of Interests. Contributor shall have executed and delivered to
Acquirer an Assignment and Assumption Agreement, in substantially the form of Exhibit A
attached hereto (the “Assignment and Assumption Agreement”);

            (b) Execution of Partnership Agreement. The Signature page of the Partnership
Agreement duly executed by Contributor as a limited partner; and

            (c) Authority Documents. Evidence satisfactory to Acquirer that the person or persons
executing the closing documents on behalf of Contributor has full right, power, and authority to do
so.

            (d) FIRPTA Certificate. An affidavit from Contributor certifying pursuant to Section
1445 of the Internal Revenue Code that Contributor is not a foreign corporation, foreign
partnership, foreign trust, foreign estate or foreign person (as those terms are defined in the
Internal Revenue Code and the Income Tax Regulations promulgated thereunder), in form and substance
satisfactory to Acquirer.

            (e) Certificate of Representations and Warranties. The certificate required by
Section 3.1(b).

            (f) Other Documents. Any other document or instrument reasonably requested by
Acquirer or required hereby.

      4.3 Acquirer’s Deliveries. At the Closing, Acquirer shall deliver the following to
Contributor:

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            (a) Certificates for Units or Common Stock. If certificates are issued, certificates
duly issued by Acquirer in the name of Contributor as of the Closing Date representing the Units or
Common Stock to which Contributor is entitled pursuant to Section 1.2 of this Agreement;

            (b) Assumption of Interests. Acquirer shall have executed and delivered to
Contributor an Assignment and Assumption Agreement.

            (c) Executed Partnership Agreement. An original of the Partnership Agreement, duly
executed by its general partner; and

            (d) Authority Documents. Evidence satisfactory to Contributor that the person or
persons executing the closing documents on behalf of Acquirer have full right, power, and authority
to do so.

            (e) Certificate of Representations and Warranties. The certificate required by
Section 3.2(b).

            (f) Other Documents. Any other document or instrument reasonably requested by
Contributor or required hereby.

      4.4 Fees and Expenses; Closing Costs. Acquirer shall pay all fees, expenses and
closing costs relating to the transactions contemplated by this Agreement; provided however, that
Contributor shall pay its own attorneys’ and consultants’ fees and expenses.

      4.5 Adjustments. Acquirer shall deliver the number of Units or Common Stock, whether
certificated or otherwise, to which Contributor is entitled pursuant to Section 1.2 of this
Agreement without any setoffs or adjustments.

ARTICLE V

MISCELLANEOUS

      5.1 Notices. Any notice provided for by this Agreement and any other notice, demand,
or communication required hereunder shall be in writing and either delivered in person (including
by confirmed facsimile transmission) or sent by registered or certified mail or overnight courier,
return receipt requested, in a sealed envelope, postage prepaid, and addressed to the party for
which such notice, demand or communication is intended at such party’s address as set forth in this
Section. All notices to Acquirer shall be addressed as follows:

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      Acquirer:

Columbia Equity, LP

c/o Carr Capital Corporation

1750 H Street, NW, Suite 500

Washington, DC 20005

Telephone:(202) 303-3060

Facsimile:(202) 303-3078

Attn: Oliver T. Carr, III

Contributor’s address for all purposes under this Agreement shall be the following:

      Contributor:

Carr Capital Real Estate Investments, LLC

c/o Carr Capital Corporation

1750 H Street, NW, Suite 500

Washington, DC 20005

Any address or name specified above may be changed by a notice given by the addressee to the other
party. Any notice, demand or other communication shall be deemed given and effective as of the
date of delivery in person or receipt set forth on the return receipt. The inability to deliver
because of changed address of which no notice was given, or rejection or other refusal to accept
any notice, demand or other communication, shall be deemed to be receipt of the notice, demand or
other communication as of the date of such attempt to deliver or rejection or refusal to accept.

      5.2 Entire Agreement; Modifications and Waivers; Cumulative Remedies. This Agreement
supersedes any existing letter of intent between the parties, constitutes the entire agreement
among the parties hereto and may not be modified or amended except by instrument in writing signed
by the parties hereto, and no provisions or conditions may be waived other than by a writing signed
by the party waiving such provisions or conditions. No delay or omission in the exercise of any
right or remedy accruing to Contributor or Acquirer upon any breach under this Agreement shall
impair such right or remedy or be construed as a waiver of any such breach theretofore or
thereafter occurring. The waiver by Contributor or Acquirer of any breach of any term, covenant,
or condition herein stated shall not be deemed to be a waiver of any other breach, or of a
subsequent breach of the same or any other term, covenant, or condition herein contained. All
rights, powers, options, or remedies afforded to Contributor or Acquirer either hereunder or by law
shall be cumulative and not alternative, and the exercise of one right, power, option, or remedy
shall not bar other rights, powers, options, or remedies allowed herein or by law, unless expressly
provided to the contrary herein.

      5.3 Exhibits. All exhibits referred to in this Agreement and attached hereto are
hereby incorporated in this Agreement by reference.

      5.4 Successors and Assigns. Except as set forth in this Article, this Agreement may
not be assigned by Acquirer or Contributor without the prior approval of the other party hereto.

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This Agreement shall be binding upon, and inure to the benefit of, Contributor, Acquirer, and
their respective legal representatives, successors, and permitted assigns.

      5.5 Article Headings. Article headings and article and section numbers are inserted
herein only as a matter of convenience and in no way define, limit, or prescribe the scope or
intent of this Agreement or any part hereof and shall not be considered in interpreting or
construing this Agreement.

      5.6 Governing Law. This Agreement shall be construed and interpreted in accordance
with the laws of the Commonwealth of Virginia, without regard to conflicts of laws principles.

      5.7 Counterparts. This Agreement may be executed in any number of counterparts and by
any party hereto on a separate counterpart, each of which when so executed and delivered shall be
deemed an original and all of which taken together shall constitute but one and the same
instrument.

      5.8 Survival. All representations and warranties contained in this Agreement, and all
covenants and agreements contained in the Agreement which contemplate performance after the Closing
Date shall survive the Closing.

      5.9 Severability. In case any one or more of the provisions contained in this
Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect,
such invalidity, illegality, or unenforceability shall not affect any other provision hereof, and
this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never
been contained herein.

      5.10 Attorneys’ Fees. Should a party employ an attorney or attorneys to enforce any
of the provisions hereof or to protect its interest in any manner arising under this Agreement, or
to recover damages for breach of this Agreement, any non-prevailing party in any action pursued in
a court of competent jurisdiction (the finality of which is not legally contested) shall pay to the
prevailing party all reasonable costs, damages, and expenses, including reasonable attorneys’ fees,
expended or incurred in connection therewith.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

[SIGNATURES APPEAR ON FOLLOWING PAGE]

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      IN WITNESS WHEREOF, this Agreement has been entered into effective as of the date first above
written.

	 	 	 
	CONTRIBUTOR:

	

	 	 
	Carr Capital Real Estate Investment, LLC, a Virginia limited liability company

	

	 	 
	

	 	By: Carr Capital Corporation, a District of
Columbia corporation, its managing member
	

	 	 
	

	 	By: /s/ Oliver T. Carr, III
	

	 	 
	

	 	Name: Oliver T. Carr, III
	

	 	Title: President & Chief Executive Officer
	

	 	 
	ACQUIRER:

	

	 	 
	

	 	 
	Columbia Equity, LP, a Virginia limited partnership

	

	 	 
	By:

	 	Columbia Equity Trust, Inc., a Maryland
corporation, its general partner
	

	 	 
	

	 	By: /s/ Oliver T. Carr, III
	

	 	 
	

	 	Name: Oliver T. Carr, III
	

	 	Title: Chairman & Chief Executive Officer

-12-

 

EXHIBIT A

Assignment and Assumption Agreement

Carr Capital Real Estate Investments, LLC, a Virginia limited liability company
(“Assignor”), for good and valuable consideration paid to the Assignor by Columbia Equity,
LP, a Virginia limited partnership (“Assignee”), pursuant to the Contribution Agreement
dated as of [                    ], 2005, by and between Assignor and Assignee (the “Agreement”) and
for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, does hereby sell, assign, transfer, convey and deliver to the Assignee, its
successors and assigns, good and indefeasible title to the membership interests (the
“Interests”) in the limited liability companies (the “Limited Liability Companies”)
identified on Schedule 1 attached hereto, free and clear of all liens, encumbrances,
security interests, prior assignments, conditions, restrictions, pledges, voting agreements,
claims, and other matters affecting title thereto, subject to the operating agreements of the
Limited Liability Companies. Assignee does hereby accept the foregoing Assignment and assumes and
agrees to be responsible for all liabilities and obligations under the operating agreements of the
Limited Liability Companies from and after the date hereof relating to the Interests.

Capitalized terms used but not defined herein shall have the respective meanings ascribed to them
in the Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Assignment and Assumption Agreement to be
signed by a duly authorized officer of each, this ___day of                     , 2005.

	 
	ASSIGNOR:

	 

	                                                                                , a

                                                                                

	 	 	 
	By:
	 	 
	

	 	 
	Name:
	 	 
	

	 	 
	Title:
	 	 
	

	 	 
	 
	 	 
	ASSIGNEE:

	 
	 	 
	Columbia Equity, LP, a Virginia limited partnership

	 
	 	 
	By:
	 	 
	

	 	 
	Name:
	 	 
	

	 	 
	Title:exv10w66

 

Exhibit 10.66

AMENDED AND RESTATED

CONTRIBUTION AGREEMENT

(Future Membership Interests)

BY AND BETWEEN

Carr Holdings, LLC

a Maryland limited liability company,

as Contributor

AND

Columbia Equity, LP,

a Virginia limited partnership,

as Acquirer

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE I THE CONTRIBUTION
	 	 	1	 
	1.1
	 	Contribution of Interests	 	 	1	 
	1.2
	 	Consideration	 	 	1	 
	1.3
	 	Redemption Rights for Units	 	 	2	 
	1.4
	 	Tax Consequences to Contributor	 	 	2	 
	ARTICLE II REPRESENTATIONS AND COVENANTS
	 	 	2	 
	2.1
	 	Representations by Acquirer	 	 	2	 
	2.2
	 	Representations by Contributor	 	 	4	 
	2.3
	 	Covenants of Acquirer	 	 	6	 
	2.4
	 	Covenants of Contributor	 	 	6	 
	ARTICLE III Conditions Precedent to the Closing
	 	 	7	 
	3.1
	 	Conditions to Acquirer’s Obligations	 	 	7	 
	3.2
	 	Conditions to Contributor’s Obligations	 	 	7	 
	ARTICLE IV Closing and Closing Documents
	 	 	8	 
	4.1
	 	Closing	 	 	8	 
	4.2
	 	Contributor’s Deliveries	 	 	8	 
	4.3
	 	Acquirer’s Deliveries	 	 	9	 
	4.4
	 	Fees and Expenses; Closing Costs	 	 	9	 
	4.5
	 	Adjustments	 	 	9	 
	ARTICLE V Miscellaneous
	 	 	9	 
	5.1
	 	Notices	 	 	9	 
	5.2
	 	Entire Agreement; Modifications and Waivers; Cumulative Remedies	 	 	10	 
	5.3
	 	Exhibits	 	 	10	 
	5.4
	 	Successors and Assigns	 	 	10	 
	5.5
	 	Article Headings	 	 	11	 
	5.6
	 	Governing Law	 	 	11	 
	5.7
	 	Counterparts	 	 	11	 
	5.8
	 	Survival	 	 	11	 
	5.9
	 	Severability	 	 	11	 
	5.10
	 	Attorneys’ Fees	 	 	11	 
	EXHIBITS

	A
	 	Assignment and Assumption Agreement	 	 	 	 

 

 

AMENDED AND RESTATED

CONTRIBUTION AGREEMENT

      THIS CONTRIBUTION AGREEMENT (this “Agreement”) is made as of this 1st day
of April, 2005 by and between Carr Holdings, LLC, a Maryland limited liability company
(“Contributor”); and Columbia Equity, LP, a Virginia limited partnership
(“Acquirer”).

RECITALS

      A. Carr Capital Corporation, a District of Columbia corporation (“CCC”) intends to
sponsor a publicly-owned real estate investment trust (the “REIT”), which REIT will own
property and membership interests in entities with direct or indirect ownership over various real
properties and improvements located thereon (the “Properties”), contributed by and
purchased from Contributor and other entities in exchange for partnership units (the
“Units”) in Acquirer or common stock in the REIT (“Common Stock”).

      B. Contributor desires to pledge and contribute 100% of any ownership interests acquired by
Contributor during the period between the date first written above and the Closing Date (as defined
below) in any commercial office property (“Property”) in the Greater Washington, DC market
(the “Interests”) to Acquirer, on the terms and conditions hereinafter set forth.

      C. Acquirer desires to acquire the Interests from Contributor, on the terms and conditions
hereinafter set forth.

AGREEMENT

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

ARTICLE I

THE CONTRIBUTION

      1.1 Contribution of Interests. Contributor agrees to contribute, transfer, assign and
convey the Interests to Acquirer, and Acquirer agrees to acquire and accept transfer of the
Interests pursuant to the terms and conditions set forth in this Agreement. The Interests shall be
transferred to Acquirer free and clear of all liens, encumbrances, security interests, prior
assignments or conveyances, conditions, restrictions, voting agreements, claims, and any other
matters affecting title thereto.

      1.2 Consideration. The total consideration (the “Consideration”) for which
Contributor agrees to contribute and assign the Interests to Acquirer, and which Acquirer agrees to
pay or deliver to Contributor, subject to the terms of this Agreement, shall be the issuance to
Contributor of a number of either (i) Units or (ii) if Contributor notifies Acquirer at least
thirty (30) days prior to the anticipated effective date of the IPO (defined below), shares of
Common Stock, equal to (a) the Contributor’s actual cash investment in the Interests, plus a rate
of return calculated on such investment from the date it is made until the Closing Date at the
Libor Rate

-1-

 

(as defined below), (b) divided by the price per share at which the Common Stock is offered to
the public in the underwritten initial public offering of the Common Stock (the “IPO”), .
The term “Libor Rate” shall mean (a) the rate described as the “London Interbank
Offered Rate” for one month in the Money Rates section of the Wall Street Journal, determined
on the Closing Date, plus (b) eight hundred (800) basis points. On the Closing Date, the Units or
Common Stock shall be issued to Contributor. Upon the request of Contributor, Acquirer shall issue
certificates reflecting Contributor’s ownership of Units or Common Stock. The certificates
evidencing the Units or Common Stock will bear appropriate legends indicating (i) that the Units or
Common Stock have not been registered under the Securities Act of 1933, as amended (“Securities
Act”), and (ii) that Acquirer’s Amended and Restated Agreement of Limited Partnership (the
“Partnership Agreement”) restricts the transfer of the Units. Upon receipt of the Units
and execution and delivery of the Partnership Agreement, Contributor shall become a limited partner
of Acquirer.

      1.3 Redemption Rights for Units. Each Unit shall be redeemable, at the option of the
holder, in accordance with, but subject to the restrictions contained in, the Partnership
Agreement; provided, however, that such redemption option may not be exercised prior to the first
anniversary of the Closing Date.

      1.4 Tax Consequences to Contributor. Notwithstanding anything to the contrary
contained in this Agreement, including without limitation the use of words and phrases such as
“sell,” “sale,” purchase,” and “pay,” the parties hereto acknowledge and agree that, if and to the
extent Contributor elects to take its Consideration in the form of Units, it is their intent that
the transaction contemplated hereby be treated for federal income tax purposes as the contribution
of the Interests by Contributor to Acquirer in exchange for Units pursuant to Section 721 of the
Internal Revenue Code of 1986, as amended (the “Code”), and not as a transaction in which
Contributor is acting other than in its capacity as a prospective partner of Acquirer.

ARTICLE II

REPRESENTATIONS AND COVENANTS

      2.1 Representations by Acquirer. Acquirer hereby represents and warrants unto
Contributor that the following statements are true, correct, and complete in every material respect
as of the date of this Agreement and will be true, correct, and complete as of the Closing Date:

            (a) Organization and Power. Acquirer is duly organized and validly existing, under
the laws of the Commonwealth of Virginia, and has full right, power, and authority to enter into
this Agreement and to perform all of its obligations under this Agreement; and, the execution and
delivery of this Agreement and the performance by Acquirer of its obligations under this Agreement
have been duly authorized by all requisite action of Acquirer and require no further action or
approval of Acquirer’s partners or of any other individuals or entities in order to constitute this
Agreement as a binding and enforceable obligation of Acquirer.

            (b) Noncontravention. Neither the entry into nor the performance of, or compliance
with, this Agreement by Acquirer has resulted, or will result, in any violation of, or default
under, or result in the acceleration of, any obligation under the Partnership Agreement, or

-2-

 

any mortgage, indenture, lien agreement, note, contract, permit, judgment, decree, order,
restrictive covenant, statute, rule, or regulation applicable to Acquirer.

            (c) Litigation. There is no action, suit, or proceeding, pending or known to be
threatened, against or affecting Acquirer in any court or before any arbitrator or before any
federal, state, municipal, or other governmental department, commission, board, bureau, agency or
instrumentality which (i) in any manner raises any question affecting the validity or
enforceability of this Agreement, (ii) would reasonably be expected to materially and adversely
affect the business, financial position, or results of operations of Acquirer, or (iii) would
reasonably be expected to materially and adversely affect the ability of Acquirer to perform its
obligations hereunder, or under any document to be delivered pursuant hereto.

            (d) Units and Common Stock Validly Issued. The Common Stock, when and if issued, will
have been duly and validly authorized and issued, free of any preemptive or similar rights, and
will be fully paid and nonassessable. The Units, when and if issued, will have been duly and
validly authorized and issued, free of any preemptive or similar rights, and will be fully paid and
nonassessable, without any obligation to restore capital except as required by the Virginia Revised
Uniform Limited Partnership Act (the “Limited Partnership Act”). If Units are issued to
Contributor as Consideration hereunder, upon execution and delivery of the Partnership Agreement by
Contributor, Contributor shall be admitted as a limited partner of Acquirer as of the Closing Date
and shall be entitled to all of the rights and protections of a limited partner under the Limited
Partnership Act and the provisions of the Partnership Agreement, with the same rights, preferences,
and privileges as all other limited partners on a pari passu basis.

            (e) Consents. Each consent, approval, authorization, order, license, certificate,
permit, registration, designation, or filing by or with any governmental agency or body necessary
for the execution, delivery, and performance of this Agreement or the transactions contemplated
hereby by Acquirer has been obtained.

            (f) Bankruptcy with respect to Acquirer. No Act of Bankruptcy has occurred with
respect to Acquirer. As used herein, “Act of Bankruptcy” shall mean if a party hereto
shall (A) apply for or consent to the appointment of, or the taking of possession by, a receiver,
custodian, trustee or liquidator of itself or of all or a substantial part of its property, (B)
admit in writing its inability to pay its debts as they become due, (C) make a general assignment
for the benefit of its creditors, (D) file a voluntary petition or commence a voluntary case or
proceeding under the Federal Bankruptcy Code (as now or hereafter in effect), (E) be adjudicated
bankrupt or insolvent, (F) file a petition seeking to take advantage of any other law relating to
bankruptcy, insolvency, reorganization, winding-up or composition or adjustment of debts, (G) fail
to controvert in a timely and appropriate manner, or acquiesce in writing to, any petition filed
against it in an involuntary case or proceeding under the Federal Bankruptcy Code (as now or
hereafter in effect), or (H) take any action for the purpose of effecting any of the foregoing.

            (g) Brokerage Commission. Acquirer has not engaged the services of, nor has it or
will it or Contributor become liable to, any real estate agent, broker, finder or any other person
or entity for any brokerage or finder’s fee, commission or other amount with respect to the
transactions described herein on account of any action by Acquirer. Acquirer hereby agrees to
indemnify and hold Contributor and its employees, directors, members, partners, affiliates and

-3-

 

agents harmless against any claims, liabilities, damages or expenses arising out of a breach
of the foregoing. This indemnification shall survive Closing or any termination of this Agreement.

      2.2 Representations by Contributor. Contributor hereby represents and warrants unto
Acquirer that each and every one of the following statements is true, correct, and complete in
every material respect as of the date of this Agreement and will be true, correct, and complete as
of the Closing Date:

            (a) Organization and Power. Contributor is duly organized, validly existing, and in
good standing as a Maryland limited liability company. Contributor has full right, power, and
authority to enter into this Agreement and to perform all of its obligations under this Agreement;
and the execution and delivery of this Agreement and the performance by Contributor of its
obligations hereunder have been duly authorized by all requisite action of Contributor and require
no further action or approval of Contributor’s members or managers or of any other individuals or
entities in order to constitute this Agreement as a binding and enforceable obligation of
Contributor.

            (b) Noncontravention. Neither the entry into nor the performance of, or compliance
with, this Agreement by Contributor has resulted, or will result, in any violation of, or default
under, or result in the acceleration of, any obligation under any limited liability company
agreement, operating agreement, regulation, mortgage, indenture, lien agreement, note, contract,
permit, judgment, decree, order, restrictive covenant, statute, rule, or regulation applicable to
Contributor or to the Interests.

            (c) Litigation. There is no action, suit, claim, or proceeding pending or threatened
against or affecting Contributor or the Interests in any court, or before any arbitrator, or before
any federal, state, municipal or other governmental department, commission, board, bureau, agency
or instrumentality which (A) in any manner raises any question affecting the validity or
enforceability of this Agreement, (B) would reasonably be expected to materially and adversely
affect the business, financial position or results of operations of Contributor, (C) would
reasonably be expected to materially and adversely affect the ability of Contributor to perform its
obligations hereunder, or under any document to be delivered pursuant hereto, (D) would reasonably
be expected to create a lien on the Interests, any part thereof, or any interest therein, or (E)
would reasonably be expected to adversely affect the Interests, any part thereof, or any interest
therein.

            (d) Good Title. (A) Contributor will have good title to the Interests on the Closing
Date, (B) the Interests on the Closing Date will be free and clear of all liens, encumbrances,
pledges, voting agreements and security interests whatsoever, and (C) Contributor has not granted
any other person or entity an option to purchase or a right of first refusal upon the Interests nor
are there any agreements or understandings between Contributor and any other person or entity with
respect to the disposition of the Interests.

            (e) No Consents. Each consent, approval, authorization, order, license, certificate,
permit, registration, designation, or filing by or with, any governmental agency or body necessary
of the execution, delivery, and performance of this Agreement or the transactions

-4-

 

contemplated hereby by Contributor has been obtained or will be obtained on or before the
Closing Date.

            (f) Securities Law Matters. (i) In acquiring the Units or Common Stock and engaging
in this transaction, neither Contributor nor any member or shareholder thereof is relying upon any
representations made to it by Acquirer, or any of its partners, officers, employees, or agents that
are not contained herein. Contributor is aware of and understands the risks involved in investing
in the Common Stock or in the Units and in the Common Stock issuable upon redemption of such Units.
Contributor has had an opportunity to ask questions of, and to receive answers from, Acquirer and
the REIT or a person or persons authorized to act on their behalf, concerning the terms and
conditions of an investment in the Units and the Common Stock and the financial condition, affairs,
and business of Acquirer and the REIT. Contributor confirms that all documents, records, and
information pertaining to its investment in Acquirer that have been requested by it, have been made
available or delivered to Contributor prior to the date hereof.

                  (ii) Contributor understands that none of the Common Stock, the Units or the Common Stock
issuable upon redemption of the Units have been registered under the Securities Act or any state
securities acts and are instead being offered and sold in reliance on an exemption from such
registration requirements. The Units or Common Stock issuable to Contributor are being acquired
solely for its own account, for investment, and are not being acquired with a view to, or for
resale in connection with, any distribution, subdivision, or fractionalization thereof, in
violation of such laws, and Contributor does not have any present intention to enter into any
contract, undertaking, agreement, or arrangement with respect to any such resale. Contributor
understands that any certificates representing the Units or the Common Stock will contain
appropriate legends reflecting the requirement that such Units or Common Stock not be resold by
Contributor without registration under such laws or the availability of an exemption from such
registration.

            (g) Accredited Investors. Contributor is an accredited investor as that term is
defined in Rule 501 of Regulation D under the Securities Act of 1933, as amended.

            (h) Tax Matters. Contributor represents and warrants that it has obtained from its
own counsel advice regarding the tax consequences of (i) the transfer of the Interests to Acquirer
and the receipt of Units or Common Stock as consideration therefor, (ii) Contributor’s admission as
a partner of Acquirer, and (iii) any other transaction contemplated by this Agreement. Contributor
further represents and warrants that it has not relied on Acquirer or Acquirer’s representatives or
counsel for such tax advice.

            (i) Bankruptcy with respect to Contributor. No Act of Bankruptcy has occurred with
respect to Contributor.

            (j) Brokerage Commission. Contributor has not engaged the services of, nor has it or
will it or Acquirer become liable to, any real estate agent, broker, finder or any other person or
entity for any brokerage or finder’s fee, commission or other amount with respect to the
transactions described herein on account of any action by Contributor. Contributor hereby agrees
to indemnify and hold Acquirer and its employees, directors, members, partners, affiliates

-5-

 

and agents harmless against any claims, liabilities, damages or expenses arising out of a
breach of the foregoing. This indemnification shall survive Closing or any termination of this
Agreement.

      2.3 Covenants of Acquirer. Acquirer agrees as follows:

            (a) Further Acts. In addition to the acts, instruments and agreements recited herein
and contemplated to be performed, executed and delivered by Acquirer and Contributor, Acquirer
shall perform, execute, and deliver or cause to be performed, executed, and delivered at the
Closing or after the Closing, any and all further acts, instruments, and agreements and provide
such further assurances as Contributor may reasonably require to consummate the transactions
contemplated hereunder.

      2.4 Covenants of Contributor. Contributor agrees as follows:

            (a) Actions Regarding Interests. Except as otherwise permitted hereby, from the date
hereof until the Closing Date, Contributor shall use reasonable commercial efforts not to take any
action or fail to take any action within Contributor’s control the result of which would (1) have a
material adverse effect on the Interests, any Property, Contributor’s ability to contribute,
transfer, assign and convey the Interests to Acquirer or Acquirer’s ability to continue the
ownership and operation thereof after the Closing Date in substantially the same manner as
presently conducted or (2) cause any of the representations and warranties contained in Section 2.2
to be untrue as of the Closing Date.

            (b) Confidentiality. Contributor acknowledges that the matters relating to the REIT,
the IPO, this Agreement, and the other documents, terms, conditions and information related thereto
(collectively, the “Information”) are confidential in nature. Therefore, Contributor
covenants and agrees to keep the Information confidential and will not (except as required by
applicable law, regulation or legal process, and only after compliance with the provisions of this
Section 2.4) prior to the IPO, without Acquirer’s prior written consent, disclose any Information
in any manner whatsoever; provided, however, that the Information may be revealed only to
Contributor’s employees, legal counsel and financial advisors, each of whom shall be informed of
the confidential nature of the Information. In the event that Contributor or its key employees,
legal counsel or financial advisors (collectively, the “Information Group”) are requested
pursuant to, or required by, applicable law, regulation or legal process to disclose any of the
Information, the applicable member of the Information Group will notify Acquirer promptly so that
it may seek a protective order or other appropriate remedy or, in its sole discretion, waive
compliance with the terms of this Section 2.4. Contributor acknowledges that remedies at law may
be inadequate to protect Acquirer or the REIT against any actual or threatened breach of this
Section 2.4, and, without prejudice to any other rights and remedies otherwise available,
Contributor agrees to the granting of injunctive relief in favor of the REIT and/or Acquirer
without proof of actual damages. Notwithstanding any other express or implied agreement to the
contrary, the parties agree and acknowledge that each of them and each of their employees,
representatives, and other agents 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 to any of them relating to such tax
treatment and tax structure, except to the extent that confidentiality is reasonably

-6-

 

necessary to comply with U.S. federal or state securities laws. For purposes of this
paragraph, the terms “tax treatment” and “tax structure” have the meanings specified in Treasury
Regulation section 1.6011-4(c).

            (c) Further Acts. In addition to the acts, instruments and agreements recited herein
and contemplated to be performed, executed and delivered by Acquirer and Contributor, Contributor
shall perform, execute, and deliver or cause to be performed, executed, and delivered at the
Closing or after the Closing, any and all further acts, instruments, and agreements and provide
such further assurances as Acquirer may reasonably require to consummate the transactions
contemplated hereunder.

ARTICLE III

CONDITIONS PRECEDENT TO THE CLOSING

      3.1 Conditions to Acquirer’s Obligations. In addition to any other conditions set
forth in this Agreement, Acquirer’s obligation to consummate the Closing is subject to the timely
satisfaction of each and every one of the conditions and requirements set forth in this Section
3.1, all of which shall be conditions precedent to Acquirer’s obligations under this Agreement.

            (a) Contributor’s Obligations. Contributor shall have performed all obligations of
Contributor hereunder which are to be performed prior to Closing, and shall have delivered or
caused to be delivered to Acquirer, all of the documents and other information required of
Contributor pursuant to Section 4.2.

            (b) Contributor’s Representations and Warranties. Contributor’s representations and
warranties set forth in Section 2.2 shall be true and correct in all material respects as if made
again on the Closing Date, and Contributor shall have executed and delivered to Acquirer at Closing
a certificate to the foregoing effect.

            (c) No Injunction. On the Closing Date, there shall be no effective injunction, writ,
preliminary restraining order or other order issued by a court of competent jurisdiction
restraining or prohibiting the consummation of the transactions contemplated hereby.

            (d) Completion of IPO. The IPO shall have been completed.

            (e) Closing. The Closing shall have occurred on or prior to June 30, 2005.

      3.2 Conditions to Contributor’s Obligations. In addition to any other conditions set
forth in this Agreement, Contributor’s obligation to consummate the Closing is subject to the
timely satisfaction of each and every one of the conditions and requirements set forth in this
Section 3.2, all of which shall be conditions precedent to Contributor’s obligations under this
Agreement.

            (a) Acquirer’s Obligations. Acquirer shall have performed all obligations of Acquirer
hereunder which are to be performed prior to Closing, and shall have delivered or caused to be
delivered to Contributor, all of the documents and other information required of Acquirer pursuant
to Section 4.3.

-7-

 

            (b) Acquirer’s Representations and Warranties. Acquirer’s representations and
warranties set forth in Section 2.1 shall be true and correct in all material respects as if made
again on the Closing Date, and Acquirer shall have executed and delivered to Contributor at Closing
a certificate to the foregoing effect.

            (c) No Injunction. On the Closing Date, there shall be no effective injunction, writ,
preliminary restraining order or other order issued by a court of competent jurisdiction
restraining or prohibiting the consummation of the transactions contemplated hereby.

            (d) Completion of IPO. The IPO shall have been completed.

            (e) Closing. The Closing shall have occurred on or prior to June 30, 2005.

ARTICLE IV

CLOSING AND CLOSING DOCUMENTS

      4.1 Closing. The consummation and closing (the “Closing”) of the transactions
contemplated under this Agreement shall take place at the offices of Hunton & Williams LLP,
Washington, D.C., or such other place as is mutually agreeable to the parties, on the date of the
closing of the IPO (the “Closing Date”), or as otherwise set by agreement of the parties;
provided, however, that this Agreement shall terminate if Closing does not occur prior to June 30,
2005.

      4.2 Contributor’s Deliveries. At the Closing, Contributor shall deliver the following
to Acquirer in addition to all other items required to be delivered to Acquirer by Contributor:

            (a) Assignment of Interests. Contributor shall have executed and delivered to
Acquirer an Assignment and Assumption Agreement, in substantially the form of Exhibit A
attached hereto (the “Assignment and Assumption Agreement”);

            (b) Execution of Partnership Agreement. The Signature page of the Partnership
Agreement duly executed by Contributor as a limited partner; and

            (c) Authority Documents. Evidence satisfactory to Acquirer that the person or persons
executing the closing documents on behalf of Contributor has full right, power, and authority to do
so.

            (d) FIRPTA Certificate. An affidavit from Contributor certifying pursuant to Section
1445 of the Internal Revenue Code that Contributor is not a foreign corporation, foreign
partnership, foreign trust, foreign estate or foreign person (as those terms are defined in the
Internal Revenue Code and the Income Tax Regulations promulgated thereunder), in form and substance
satisfactory to Acquirer.

            (e) Certificate of Representations and Warranties. The certificate required by
Section 3.1(b).

            (f) Other Documents. Any other document or instrument reasonably requested by
Acquirer or required hereby.

-8-

 

      4.3 Acquirer’s Deliveries. At the Closing, Acquirer shall deliver the following to
Contributor:

            (a) Certificates for Units or Common Stock. If certificates are issued, certificates
duly issued by Acquirer in the name of Contributor as of the Closing Date representing the Units or
the Common Stock to which Contributor is entitled pursuant to Section 1.2 of this Agreement;

            (b) Assumption of Interests. Acquirer shall have executed and delivered to
Contributor an Assignment and Assumption Agreement.

            (c) Executed Partnership Agreement. An original of the Partnership Agreement, duly
executed by its general partner; and

            (d) Authority Documents. Evidence satisfactory to Contributor that the person or
persons executing the closing documents on behalf of Acquirer have full right, power, and authority
to do so.

            (e) Certificate of Representations and Warranties. The certificate required by
Section 3.2(b).

            (f) Other Documents. Any other document or instrument reasonably requested by
Contributor or required hereby.

      4.4 Fees and Expenses; Closing Costs. Acquirer shall pay all fees, expenses and
closing costs relating to the transactions contemplated by this Agreement; provided however, that
Contributor shall pay its own attorneys’ and consultants’ fees and expenses.

      4.5 Adjustments. Acquirer shall deliver the number of Units or Common Stock, whether
certificated or otherwise, to which Contributor is entitled pursuant to Section 1.2 of this
Agreement without any setoffs or adjustments.

ARTICLE V

MISCELLANEOUS

      5.1 Notices. Any notice provided for by this Agreement and any other notice, demand,
or communication required hereunder shall be in writing and either delivered in person (including
by confirmed facsimile transmission) or sent by registered or certified mail or overnight courier,
return receipt requested, in a sealed envelope, postage prepaid, and addressed to the party for
which such notice, demand or communication is intended at such party’s address as set forth in this
Section. All notices to Acquirer shall be addressed as follows:

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      Acquirer:

Columbia Equity, LP

c/o Carr Capital Corporation

1750 H Street, NW, Suite 500

Washington, DC 20005

Telephone:(202) 303-3060

Facsimile:(202) 303-3078

Attn: Oliver T. Carr, III

Contributor’s address for all purposes under this Agreement shall be the following:

      Contributor:

Carr Holdings, LLC

c/o The Oliver Carr Company

1750 H Street, NW, Suite 500

Washington, DC 20005

Any address or name specified above may be changed by a notice given by the addressee to the other
party. Any notice, demand or other communication shall be deemed given and effective as of the
date of delivery in person or receipt set forth on the return receipt. The inability to deliver
because of changed address of which no notice was given, or rejection or other refusal to accept
any notice, demand or other communication, shall be deemed to be receipt of the notice, demand or
other communication as of the date of such attempt to deliver or rejection or refusal to accept.

      5.2 Entire Agreement; Modifications and Waivers; Cumulative Remedies. This Agreement
supersedes any existing letter of intent between the parties, constitutes the entire agreement
among the parties hereto and may not be modified or amended except by instrument in writing signed
by the parties hereto, and no provisions or conditions may be waived other than by a writing signed
by the party waiving such provisions or conditions. No delay or omission in the exercise of any
right or remedy accruing to Contributor or Acquirer upon any breach under this Agreement shall
impair such right or remedy or be construed as a waiver of any such breach theretofore or
thereafter occurring. The waiver by Contributor or Acquirer of any breach of any term, covenant,
or condition herein stated shall not be deemed to be a waiver of any other breach, or of a
subsequent breach of the same or any other term, covenant, or condition herein contained. All
rights, powers, options, or remedies afforded to Contributor or Acquirer either hereunder or by law
shall be cumulative and not alternative, and the exercise of one right, power, option, or remedy
shall not bar other rights, powers, options, or remedies allowed herein or by law, unless expressly
provided to the contrary herein.

      5.3 Exhibits. All exhibits referred to in this Agreement and attached hereto are
hereby incorporated in this Agreement by reference.

      5.4 Successors and Assigns. Except as set forth in this Article, this Agreement may
not be assigned by Acquirer or Contributor without the prior approval of the other party hereto.

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      This Agreement shall be binding upon, and inure to the benefit of, Contributor, Acquirer, and
their respective legal representatives, successors, and permitted assigns.

      5.5 Article Headings. Article headings and article and section numbers are inserted
herein only as a matter of convenience and in no way define, limit, or prescribe the scope or
intent of this Agreement or any part hereof and shall not be considered in interpreting or
construing this Agreement.

      5.6 Governing Law. This Agreement shall be construed and interpreted in accordance
with the laws of the Commonwealth of Virginia, without regard to conflicts of laws principles.

      5.7 Counterparts. This Agreement may be executed in any number of counterparts and by
any party hereto on a separate counterpart, each of which when so executed and delivered shall be
deemed an original and all of which taken together shall constitute but one and the same
instrument.

      5.8 Survival. All representations and warranties contained in this Agreement, and all
covenants and agreements contained in the Agreement which contemplate performance after the Closing
Date shall survive the Closing.

      5.9 Severability. In case any one or more of the provisions contained in this
Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect,
such invalidity, illegality, or unenforceability shall not affect any other provision hereof, and
this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never
been contained herein.

      5.10 Attorneys’ Fees. Should a party employ an attorney or attorneys to enforce any
of the provisions hereof or to protect its interest in any manner arising under this Agreement, or
to recover damages for breach of this Agreement, any non-prevailing party in any action pursued in
a court of competent jurisdiction (the finality of which is not legally contested) shall pay to the
prevailing party all reasonable costs, damages, and expenses, including reasonable attorneys’ fees,
expended or incurred in connection therewith.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

[SIGNATURES APPEAR ON FOLLOWING PAGE]

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      IN WITNESS WHEREOF, this Agreement has been entered into effective as of the date first above
written.

	 	 	 	 	 
	CONTRIBUTOR:

	 
	 	 	 	 
	Carr Holdings, LLC, a Maryland limited liability company

	 
	 	 	 	 
	By:
	 	/s/ Oliver T. Carr, Jr.
	 
	 	 
	Name:
	 	Oliver T. Carr, Jr.
	Title:
	 	President
	 
	 	 	 	 
	ACQUIRER:

	 
	 	 	 	 
	Columbia Equity, LP, a Virginia limited partnership

	 
	 	 	 	 
	By:

	 	Columbia Equity Trust, Inc., a Maryland
corporation, its general partner

	 
	 	 	 	 
	

	 	By:
	 	/s/ Oliver T. Carr, III
	

	 	 	 	 
	

	 	Name:
	 	Oliver T. Carr, III
	

	 	Title:
	 	Chairman and Chief Executive Officer

-12-

 

EXHIBIT A

Assignment and Assumption Agreement

      Carr Holdings, LLC, a Maryland limited liability company (“Assignor”), for good and
valuable consideration paid to the Assignor by Columbia Equity, LP, a Virginia limited partnership
(“Assignee”), pursuant to the Contribution Agreement dated as of [                    ], 2005, by and
between Assignor and Assignee (the “Agreement”) and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, does hereby sell, assign,
transfer, convey and deliver to the Assignee, its successors and assigns, good and indefeasible
title to the membership interests (the “Interests”) in the limited liability companies (the
“Limited Liability Companies”) identified on Schedule 1 attached hereto, free and
clear of all liens, encumbrances, security interests, prior assignments, conditions, restrictions,
pledges, voting agreements, claims, and other matters affecting title thereto, subject to the
operating agreements of the Limited Liability Companies. Assignee does hereby accept the foregoing
Assignment and assumes and agrees to be responsible for all liabilities and obligations under the
operating agreements of the Limited Liability Companies from and after the date hereof relating to
the Interests.

      Capitalized terms used but not defined herein shall have the respective meanings ascribed to them
in the Agreement.

      IN WITNESS WHEREOF, the parties hereto have caused this Assignment and Assumption Agreement to be
signed by a duly authorized officer of each, this ___day of                     , 2005.

	 
	ASSIGNOR:

	 

	                                                                                , a

                                                                                

	 	 	 
	By:
	 	 
	

	 	 
	Name:
	 	 
	

	 	 
	Title:
	 	 
	

	 	 
	 
	 	 
	ASSIGNEE:

	 
	 	 
	Columbia Equity, LP, a Virginia limited partnership

	 
	 	 
	By:
	 	 
	

	 	 
	Name:
	 	 
	

	 	 
	Title:

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