Document:

EXHIBIT 10.6

 

Exhibit
10.6

Execution Version

 

AGREEMENT AND PLAN OF MERGER

Dated
as of August 9, 2005

by and between

COGDELL SPENCER INC.,

CS MERGER SUB LLC

AND

COGDELL SPENCER ADVISORS, INC.

 

 

 

	 	 	 	 	 
	ARTICLE I THE MERGER
	 	 	1	 
	Section 1.1. The Merger
	 	 	1	 
	Section 1.2. Effective Time
	 	 	1	 
	Section 1.3. Tax Treatment
	 	 	2	 
	Section 1.4. Certificate of Formation and Bylaws
	 	 	2	 
	Section 1.5. Managing Member
	 	 	2	 
	Section 1.6. Officers
	 	 	2	 
	Section 1.7. Additional Actions
	 	 	2	 
	ARTICLE
II EFFECTS OF THE MERGER;
	 	 	2	 
	Section 2.1. Effect on Common Stock
	 	 	2	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES
	 	 	3	 
	Section 3.1. Representations and Warranties of CSA
	 	 	3	 
	(a) Organization, Standing and Corporate Power of CSA
	 	 	3	 
	(b) Capital Structure
	 	 	3	 
	(c) Authority; Noncontravention
	 	 	3	 
	(d) Litigation
	 	 	3	 
	(e) Brokers; Schedule of Fees and Expenses
	 	 	3	 
	ARTICLE IV MISCELLANEOUS
	 	 	4	 
	Section 4.1. Termination
	 	 	4	 
	Section 4.2. Approval
	 	 	4	 
	Section 4.3. Amendments
	 	 	4	 
	Section 4.4. Counterparts
	 	 	4	 
	Section 4.5. Entire Agreement; No Third-Party Beneficiaries
	 	 	4	 
	Section 4.6. GOVERNING LAW
	 	 	4	 

i

 

     AGREEMENT
AND PLAN OF MERGER (“Agreement”), dated as of August 9, 2005, by and
between COGDELL SPENCER INC., a Maryland corporation (“CSI”), CS MERGER SUB LLC, a Delaware
limited liability company and indirect wholly owned subsidiary of CSI (the “Merger Sub”)
and COGDELL SPENCER ADVISORS, INC., a North Carolina corporation (“CSA”).

RECITALS

	A.	 	The Board of Directors of CSI, the Managing Member of Merger Sub and the Board of Directors
of CSA each has determined that it is advisable and in the best interests of their respective
companies, stockholders and/or members that upon the terms and subject to the conditions set
forth in this Agreement, CSA will merge, in accordance with the laws of the State of Delaware
and the laws of the State of North Carolina, with and into the Company (the “Merger”)
with the Merger Sub being the surviving entity of the merger.
	 
	B.	 	As a result of the Merger, the Merger Sub will survive and be an indirect wholly owned
subsidiary of CSI.

AGREEMENT

     In consideration of the representations, warranties, covenants and agreements contained in
this Agreement, the parties agree as follows:

ARTICLE I

THE MERGER

     Section 1.1. The Merger.

     (a) Upon the terms and subject to the conditions set forth in this Agreement, at the Effective
Time (as hereinafter defined), CSA shall be merged with and into the Merger Sub in accordance
with the Delaware Limited Liability Company Act (the
“Delaware Act”) and the [   ]
Act of the State of North Carolina (the “North Carolina Act”), whereupon the separate
company existence of CSA shall cease and the Merger Sub shall be the surviving company in the
merger (the “Surviving Company”).

     (b) The Merger shall have the effects set forth in the Delaware Act and the North Carolina Act.
Accordingly, from and after the Effective Time, the Surviving Company shall possess all the
rights, privileges, powers and franchises and be subject to all of the restrictions,
disabilities, liabilities and duties of the Merger Sub and CSA.

     (c) At the option of CSI, the Merger may be structured so that CSA shall be merged with and into
another direct or indirect wholly-owned subsidiary of CSI, which may be a corporation, limited
liability company or other entity as determined by CSI, with such other subsidiary of CSI
continuing as the surviving company, and each of CSI, the Merger Sub, CSA and such other
subsidiary shall execute an appropriate amendment to this Agreement in order to reflect such
restructuring; provided however, that such restructuring shall not affect the economic rights
of the parties hereto and, provided further, that such other subsidiary is treated as a
disregarded entity of CSI within the meaning of Treasury Regulation 1.368-2T(b)(1)(I)(A).

1

 

     Section 1.2. Effective Time. The parties shall execute and file a Certificate of Merger with
the Secretary of State of the State of Delaware in accordance with the Delaware Act and shall make
all other filings or recordings required with respect to the Merger under the Delaware Act, and
shall execute and file Articles of Merger with the Secretary of State of the State of North
Carolina in accordance with the North Carolina Act and shall make all other filings or recordings
required with respect to the Merger under the North Carolina Act. The Merger shall become
effective at the later of the time of acceptance for filing by the Secretary of State of the State
of Delaware of the Certificate of Merger and the acceptance for filing by the Secretary of State of
the State of North Carolina of the Articles of Merger (the “Effective Time”).

     Section 1.3. Tax Treatment. The parties intend that the Merger qualify as a reorganization
within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the
“Code”), and the parties hereto agree not to take any position for U.S. federal income tax
purposes inconsistent with such intended treatment.

     Section 1.4. Certificate of Formation and Bylaws. The certificate of formation (the
“Certificate of Formation”) and the Limited Liability Company Agreement (the “Operating
Agreement”) of the Merger Sub, as set forth in Exhibits A and B hereto, shall
become the Certificate of Formation and the Operating Agreement of the Surviving Company upon the
Effective Time until further amended in accordance with applicable Delaware law.

     Section 1.5. Managing Member. Cogdell Spencer LP shall be the Managing Member of the
Surviving Company from and after the Effective Date.

     Section 1.6. Officers. The officers of CSA immediately prior to the Effective Time shall be
the officers of the Surviving Company from and after the Effective Time and shall hold office until
their respective successors are duly elected or appointed and qualified in the manner provided in
the Certificate of Formation and the Operating Agreement of the Surviving Company, or as otherwise
provided by law.

     Section 1.7. Additional Actions. If, at any time after the Effective Time, the Surviving
Company determines that any deeds, bills of sale, assignments, assurances or any other acts or
things are necessary or desirable (a) to vest, perfect or confirm, of record or otherwise, in the
Surviving Company, its right, title or interest in, to or under any of the rights, properties or
assets of CSA by reason of, or as a result of, the Merger, or (b) otherwise to carry out the
purposes of this Agreement, the Managing Member of the Surviving Company shall be authorized to
execute and deliver, in the name and on behalf of CSA, all such deeds, bills of sale, assignments
and assurances and to do, in the name and on behalf of CSA, all such other acts and things
necessary or desirable to vest, perfect or confirm any and all right, title or interest in, to or
under such rights, properties or assets in the Surviving Company or otherwise to carry out the
purposes of this Agreement.

ARTICLE
II

EFFECTS OF THE MERGER;

     Section 2.1. Effect on Common Stock At the Effective Time, the stockholders of CSA will
receive the number of shares of common stock of CSI reflected on Exhibit C in exchange for
all of their shares of common stock of CSA, which shares of common stock shall comprise all of the
issued and outstanding shares of common stock of CSA. All certificates representing shares of
common stock of CSI issued in the Merger shall bear legends as deemed appropriate by CSI, including
but not limited to a restrictive legend specifying that the shares of common stock of CSI
represented by such certificate are

2

 

held by an affiliate of CSI (or, in the absence of such a legend, an appropriate notation
shall be made in the records of CSI and/or appropriate stop-transfer instructions shall be issued
to the transfer agent).

ARTICLE
III

REPRESENTATIONS AND WARRANTIES

     Section 3.1. Representations and Warranties of CSA. CSA represents and warrants to the
Merger Sub and CSI as follows:

     (a) Organization, Standing and Corporate Power of CSA. CSA is a corporation organized
and validly existing under the laws of the State of North Carolina and has the requisite corporate
power and authority to carry on its business as now being conducted. CSA is duly qualified to do
business and is in good standing in each jurisdiction in which the nature of its business makes
such qualification necessary, other than in such jurisdictions where the failure to be so
qualified, individually or in the aggregate, would not have a material adverse effect on the
business, properties, financial condition, results of operation or prospects of CSA (a “CSA
Material Adverse Effect”).

     (b) Capital
Structure. On the date of this Agreement, CSA has 300 shares of common
stock outstanding and 100,000 shares of common stock reserved for issuance. As of the date of this
Agreement, there are no outstanding securities, options, warrants, calls, rights, commitments,
agreements, arrangements or undertakings of any kind to which CSA is a party or by which such
entity is bound, obligating CSA to issue, deliver or sell, or cause to be issued, delivered or
sold, any shares of common stock or other ownership interests of CSA or obligating CSA to issue,
grant, extend or enter into any such security, option, warrant, call, right, commitment, agreement,
arrangement or undertaking (other than to CSA).

     (c) Authority; Noncontravention. CSA has the requisite corporate power and authority
to enter into this Agreement and to consummate the transactions contemplated by this Agreement.
The execution and delivery of this Agreement by CSA and the consummation by CSA of the transactions
contemplated hereby and thereby have been duly authorized by all necessary action on the part of
CSA. This Agreement has been duly executed and delivered by CSA and constitutes the valid and
binding obligation of CSA and is enforceable against CSA in accordance with its terms. The
execution and delivery of this Agreement by CSA does not, and the consummation of the transactions
contemplated hereby and compliance by CSA with the provisions of this Agreement does not and will
not, conflict with, or result in any violation of, or default (with or without notice or lapse of
time, or both) under, or give rise to a right of termination, cancellation or acceleration of any
obligation or to loss of a material benefit under, or result in the creation of any lien upon any
of the properties or assets of CSA under the articles of incorporation of CSA.

     (d) Litigation. There is no suit, action or proceeding pending or, to the knowledge of
CSA, threatened against or affecting CSA that, individually or in the aggregate, could
reasonably be expected to (i) have a CSA Material Adverse Effect or (ii) prevent the
consummation of any of the transactions contemplated herein, nor is there any judgment,
decree, injunction, rule or order of governmental entity or arbitrator outstanding against CSA
having, or which, insofar as reasonably can be foreseen, in the future would have, any such
effect.

     (e) Brokers; Schedule of Fees and Expenses. No broker, investment banker, financial
advisor or other person is entitled to any broker’s, finder’s financial advisor’s or other
similar fee or commission in connection with the Merger or based upon arrangements made by or
on behalf of CSA.

3

 

ARTICLE
IV

MISCELLANEOUS

     Section 4.1. Termination. This Agreement may be terminated and abandoned by action of the
Board of Directors of CSI, Managing Member of the Merger Sub or the Board of Directors of CSA at
any time prior to the Effective Time, whether before or after approval by the sole member of the
Merger Sub and the shareholders of CSA.

     Section 4.2. Approval. The respective obligation of each party to effect the Merger is
subject to adoption by the requisite vote of the shareholders of CSA and the sole member of the
Merger Sub pursuant to the Delaware Act and the North Carolina Act, as applicable.

     Section 4.3. Amendments. This Agreement may only be amended in accordance with Section
1.1(c) hereof and may not be amended in any other manner.

     Section 4.4. Counterparts. This Agreement may be executed in any number of counterparts and
by the different parties on separate counterparts, and each such counterpart shall be deemed to be
an original but all such counterparts shall together constitute one and the same Agreement.

     Section 4.5. Entire Agreement; No Third-Party Beneficiaries. This Agreement and the other
agreements entered into in connection with the transactions (a) constitute the entire agreement and
supersede all prior agreements and understandings, both written and oral, between the parties with
respect to the subject matter of this Agreement and (b) except for the provisions of Section 3.1
are not intended to confer upon any person other than the parties hereto any rights or remedies.

     Section 4.6.
GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO CONFLICTS OF LAWS
PRINCIPLES THEREOF.

4

 

     IN WITNESS WHEREOF, each of the Merger Sub, CSA and CSI has executed this Agreement, or has
caused this Agreement to be executed on its behalf by a representative duly authorized, all as of
the day and year first above written.

	 	 	 	 	 	 
	 

	 	COGDELL SPENCER INC.
	 
	 
	 	 	 	 	 
	 

	 	By:	 	/s/  Frank Spencer	 
	 

	 	 	 	 	 
	 

	 	 	 	Name: Frank Spencer	 
	 

	 	 	 	Title: Chief Executive Officer and President	 
	 
	 	 	 	 	 
	 

	 	CS MERGER SUB LLC
	 
	 
	 	 	 	 	 
	 

	 	By:	 	/s/  Frank Spencer	 
	 

	 	 	 	 	 
	 

	 	 	 	Name: Frank Spencer	 
	 

	 	 	 	Title: Authorized Signatory	 
	 
	 	 	 	 	 
	 

	 	COGDELL SPENCER ADVISORS, INC.
	 
	 
	 	 	 	 	 
	 

	 	By:	 	/s/  Frank Spencer	 
	 

	 	 	 	 	 
	 

	 	 	 	Name: Frank Spencer	 
	 

	 	 	 	Title: President	 

5

 

EXHIBIT A

CERTIFICATE OF FORMATION

 

 

CERTIFICATE OF FORMATION

OF

CS MERGER SUB LLC

ARTICLE 1.

NAME

     The name of the limited liability company (the “Company”) is CS Merger Sub LLC.

ARTICLE 2.

REGISTERED AGENT

     The address of the registered office of the Company in the State of Delaware is 2711
Centerville Road, Suite 400 Wilmington, Delaware 19808 in the County of New Castle. The name of
the registered agent of the Company is Corporation Service Company.

ARTICLE 3.

DURATION

     The Company shall have perpetual duration, unless terminated in accordance with the Limited
Liability Company Act of the State of Delaware (the “Act”) or the operating agreement of the
Company.

ARTICLE 4.

PURPOSE

     The purpose of the Company is to engage in any lawful act or activity for which a limited
liability company may be organized under the Act.

     IN WITNESS WHEREOF, this Certificate has been executed as of this            day of August, 2005, by
the undersigned authorized signatory who affirms that, to the best of his knowledge and belief, the
facts stated herein are true.

	 	 	 	 	 
	 	CS Merger Sub LLC

	 
	 	/s/ Frank C. Spencer	 
	 	Frank C. Spencer 	 
	 	Authorized Signatory 	 
	 

2

 

EXHIBIT B

LIMITED LIABILITY COMPANY AGREEMENT OF THE COMPANY

3

 

OPERATING AGREEMENT

OF

CS MERGER SUB LLC

     This OPERATING AGREEMENT (the “Agreement”) of CS Merger Sub LLC (the “Company”), dated as of
August ___, 2005, is entered into by Cogdell Spencer LP, a Delaware limited partnership (the
“Member”).

     WHEREAS, the Company was formed on August 2, 2005, pursuant to, and in accordance with, the
Delaware Limited Liability Company Act (6 Del.C. §§ 18-101 et seq.), as amended from time to time
(the “Act”), by an authorized person, by the filing of a Certificate of Formation of the Company
with the Secretary of State of the State of Delaware, and the Member hereby adopts and ratifies the
Certificate of Formation and all acts taken by the authorized person in connection therewith;

     NOW, THEREFORE, in consideration of the premises contained herein and each party intending to
be legally bound, the parties hereto agree as follows:

          Name. The name of the limited liability company is CS Merger Sub LLC.

          Purpose. The Company is formed for the object and purpose of, and the nature of the
business conducted and promoted by the Company is, engaging in any lawful act or activity for which
limited liability companies may be formed under the Act and engaging in any activities necessary or
incidental to the foregoing.

          Formation. The filing of the Certificate of Formation of the Company with the
Secretary of State of the State of Delaware on August 2, 2005, pursuant to the Act is hereby
ratified and approved.

          Registered Office. The address of the registered office of the Company in the State
of Delaware is c/o Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington,
Delaware 19808 in the County of New Castle.

          Registered Agent. The name of its Registered Agent at such address is Corporation
Service Company.

          Members.
 is the sole managing member (the “Managing Member”) and
sole member of the Company and shall be shown as such on the books and records of the Company. No
other person shall be admitted as a managing member or member of the Company, and no additional
interest in the Company shall be issued, without the approval of the Managing Member and
appropriate amendments to this Agreement. The name and the address of the Managing Member is as
follows: Cogdell Spencer LP, 4401 Barclay Downs Drive, Suite 300, Charlotte, North Carolina
28209-4670, Attention: Mr. Frank Spencer.

          Management of the Company. The Managing Member shall have sole authority to manage
the business and affairs of the Company, to execute documents on behalf of the Company and to bind
the Company.

          Initial Capital Contributions and Interests. The initial capital contribution of the
Member shall be $0.00. On the date hereof, the Member owns a 100% interest in the Company.

4

 

          Additional Contributions. The Member is not required to make additional capital
contributions to the Company.

          Dissolution. The Company shall dissolve, and its affairs shall be wound up upon the
first to occur of the following: (a) the sale, exchange or other disposition of all or
substantially all of the Company’s assets; (b) the election of the Managing Member; or (c) the
bankruptcy or dissolution of the Managing Member.

          Winding Up of Company. Upon dissolution, the Company’s business shall be liquidated
in an orderly manner. The Managing Member shall act as the liquidator to wind up the affairs of
the Company pursuant to this Agreement. In performing its duties, the liquidator is authorized to
sell, distribute, exchange or otherwise dispose of the assets of the Company in accordance with the
Act and in any reasonable manner that the liquidator shall determine to be in the best interest of
the Member or its successors-in-interest.

          Distributions. The Managing Member shall distribute funds at such times and in such
amounts as it may determine. In determining the amount of funds to distribute pursuant to this
Section 12, the Managing Member may consider such factors as the need to allocate funds to
any reserves for Company contingencies or any other Company purposes that the Managing Member
reasonably deems necessary or appropriate.

          Certification of Interests. The limited liability interest of the Company may or may
not be certificated, and if certificated, such certificates shall constitute securities governed by
Article 8 of the Delaware Uniform Commercial Code.

          Liability of Member. The Member shall not have any liability for the debts,
obligations and liabilities of the Company except to the extent provided in the Act.

          Indemnification. The Company shall indemnify and hold harmless the Member, employee
or other person for any claim arising out of such entity’s or person’s relationship to the Company,
to the extent companies may indemnify persons under the Delaware General Corporation Law.

          Governing Law. This Agreement shall be governed by, and construed under, the laws of
the State of Delaware, all rights and remedies being governed by such laws.

          Books and Records. The books and records of the Company will be kept at Cogdell
Spencer LP, 4401 Barclay Downs Drive, Suite 300, Charlotte, North Carolina 28209-4670, Attention:
Mr. Frank Spencer.

          Authorized Person. Jim Cogdell, Frank Spencer and any person authorized to sign on
behalf of the Managing Member are each authorized to sign on behalf of the Company.

          Modification, Waiver or Termination. No modification, waiver or termination of this
Agreement, or any part hereof, shall be effective unless made in writing and signed by the party or
parties sought to be bound thereby.

          Benefits of Agreement. None of the provisions of this Agreement shall be for the
benefit of or enforceable by any creditor of the Company or of any other person not a party to this
Agreement.

          Headings. The titles of Sections of this Agreement are for convenience of reference
only and shall not define or limit any of the provisions of this Agreement.

5

 

[Remainder of page intentionally left blank]

6

 

     IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, has duly executed
this Agreement as of the date first written above.

	 	 	 	 	 
	 	COGDELL SPENCER LP
	 	By:  	CS Business Trust I, its General Partner
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Frank Spencer 	 
	 	 	Title:  	Trustee 	 

 

 

	 	 	 	 	 

EXHIBIT C

	 	 	 	 	 
	Name	 	Shares of Common Stock
	 
	James Cogdell

	 	 	1,244,503	 
	 
	 	 	 	 
	Frank Spencer

	 	 	219,616	 

2EXHIBIT 10.20

 

Exhibit 10.20

ASSIGNMENT AGREEMENT

(PUT AGREEMENT)

     THIS
ASSIGNMENT AGREEMENT (this “Assignment Agreement”)
is made as of the 11th day
of August, 2005 by and among C & S Donor, LLC, a North Carolina limited liability company, James
W. Cogdell and Frank C. Spencer (collectively, “Assignors” and, individually, an
“Assignor”) and Cogdell Spencer Inc., a Maryland corporation (“Assignee”).

RECITALS:

	A.	 	Certain employees of Cogdell Spencer Advisors, Inc., a North Carolina corporation, including
but not limited to James W. Cogdell and Frank C. Spencer, have contributed 100% of the
membership interests in (1) Cogdell Investors (CFVN), LLC, a North Carolina limited liability
company, (2) Cogdell Investors (OSS), LLC, a North Carolina limited liability company, (3)
Cogdell Investors (Charleston), LLC, a South Carolina limited liability company, and (4)
Cogdell Investors (Lenoir), LLC, a North Carolina limited liability company, each of which is
managed by Assignee or its affiliates (collectively, the “Interests”) to The
Foundation For the Carolinas, a tax-exempt charitable organization based in Charlotte, North
Carolina (the “Foundation”); and
	 
	B.	 	The Foundation, C & S Donor, LLC, Cogdell Spencer Advisors, Inc., James W. Cogdell and Frank
C. Spencer entered into those certain four (4) Put Agreements, a form
of which is attached hereto as Exhibit A (each, a “Put Agreement”), pursuant
to which the Foundation has the right, under certain circumstances, to require Assignors to
purchase the related Interests for their then current fair market values; and
	 
	C.	 	Assignors desire to assign to Assignee, or its designee, the right, in the event the
Foundation exercises its rights under any Put Agreement, to assume the obligations of
Assignors under such Put Agreement, including the purchase of the related Interests.

     NOW, THEREFORE, the parties agree as follows:

     1. Assignment. For consideration of one dollar ($1.00), the receipt and sufficiency
of which is hereby acknowledged, each Assignor hereby assigns to Assignee, or its designee, the
right to assume the obligations of the Assignors pursuant to any Put Agreement. Assignee shall be
under no obligation to assume such obligations, and may assume such obligations with respect to any
or all Interests, as they may become subject to purchase under any Put Agreement from time to time.
To the extent the obligations under a Put Agreement with respect to any related Interests are not
assumed by Assignee, the obligations of Assignors therein shall remain in effect.

     2. Notices. If Assignors receive notice pursuant to a Put Agreement that Assignors
are required to purchase any related Interests, Assignors will promptly give notice thereof to
Assignee. If Assignee wishes to exercise its rights under this Assignment Agreement and purchase
such Interests, it shall promptly give notice thereof to Assignors. Assignors will cooperate with
Assignee and will execute and deliver any documents, and take any actions, reasonably requested by
Assignee in order to consummate Assignee’s purchase of any Interests which Assignee has elected to
purchase pursuant to this Assignment Agreement.

     3. Governing Law. This Assignment Agreement shall be governed by and construed in
accordance with the laws of the State of North Carolina.

 

 

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

	 	 	 	 	 
	 	ASSIGNORS: 

C & S DONOR, LLC

	 
	 	By:  	/s/
James W. Cogdell	 
	 	Name:  	James W. Cogdell 	 
	 	Title:  	Manager 	 
	 	 	 
		 	 
	 	/s/ James W. Cogdell	 
	 	James W. Cogdell	 
	 	 	 
	 		 
	 	 /s/ Frank C. Spencer	 
	 	Frank C. Spencer	 
	 	 	 
	 	 	 
	 	 	 
	 	ASSIGNEE:

COGDELL SPENCER INC.

	 
	 	By:  	/s/ Frank C. Spencer	 
	 	Name:  	Frank C. Spencer 	 
	 	Title:  	Chief Executive Officer and President 	 
	 

2

 

Exhibit A

FORM
OF

PUT AGREEMENT

     THIS PUT AGREEMENT, dated the ___day of _________, 2005, is entered into by and between JAMES
COGDELL and FRANK SPENCER (collectively, the “Donors”), the FOUNDATION FOR THE CAROLINAS, a North
Carolina non-profit corporation (the “Foundation”), and C & S DONOR, LLC, a North Carolina limited
liability company (the “Company”).

RECITALS

     WHEREAS, Certain employees of Cogdell Spencer Advisors, Inc., a North Carolina corporation,
including but not limited to James W. Cogdell and Frank C. Spencer, (collectively, the “Employees”)
own all of the outstanding membership interests of COGDELL INVESTORS (OSS), LLC, a North Carolina
limited liability company (the “LLC”);

     WHEREAS, the LLC owns certain real property located in Greenville, South Carolina and the
improvements constructed thereon, known as St. Francis Hospital (collectively, the real property
and improvements are referred to as the “Facility”);

     WHEREAS, the LLC borrowed funds from Wachovia Bank for the acquisition and construction of the
Facility and the Facility serves as security for this loan (the “Mortgage”);

     WHEREAS, the LLC and St. Francis Hospital, Inc. have executed a lease dated August 10, 2000
(as amended), under which the LLC leases the Facility to St. Francis Hospital for annual lease
payments equal to the LLC’s out of pocket expenses related to the Facility (including debt service
payments, taxes and maintenance) plus approximately $22,350.00 per annum (the “Lease”);

     WHEREAS, the Donors, Cogdell Spencer Advisors, Inc. and St. Francis Hospital, Inc. have
executed an Option Agreement where St. Francis Hospital, Inc. has an option to purchase all of the
membership interests of the LLC for an amount equal to 10 times the LLC’s annual net cash flow from
the Facility (the “Purchase Option”);

     WHEREAS, the Employees desire to contribute their membership interest in the LLC to the
Foundation;

     WHEREAS, a transfer of the membership interests of the LLC to the Foundation will not
terminate the LLC’s obligations under the Lease, the Mortgage or the Purchase Option;

     WHEREAS, the Donors acknowledge that there may not be a ready market for the membership
interests of the LLC;

     WHEREAS, the Foundation desires to accept the contribution of the membership interests of the
LLC, but has certain concerns regarding holding closely held business interests for which there may
not be a ready market;

 

 

     WHEREAS, the Company will be owned and funded by some or all of the Donors and will provide a
final alternative for the Foundation with respect to the ownership of the LLC Membership Interest,
as outlined below.

     NOW, THEREFORE, in exchange for $1.00, the consideration of which is hereby acknowledged, the
parties agree as follows:

     1. Definitions.

     (a) Facility — means that certain hospital, known as St. Francis Hospital, located in
Greenville, South Carolina and the real property on which such hospital is located, and as
defined in the recitals.

     (b) Lease — means that certain lease between the LLC as landlord and St. Francis
Hospital as tenant, and as defined in the recitals.

     (c) Purchase Option — means that certain option of St. Francis Hospital, Inc. to
purchase the Membership Interests as provided for in the Option Agreement, and as defined in
the recitals.

     (d) LLC — means Cogdell Investors (OSS), LLC, a South Carolina limited liability
company, and as defined in the recitals.

     (e) Membership Interests — means all of the outstanding membership interests of the
LLC, which are owned by the Employees and are to be contributed to the Foundation.

     (f) Mortgage — means those certain debt instruments evidencing the loan from Wachovia
Bank to the LLC for the acquisition and/or construction of the Facility, which are secured
by the Facility, and as defined in the recitals.

     (g) Net Cash Flow — means the annual cash received by the LLC from the Lease, after
payment of all out of pocket expenses of the Facility.

     (h) UBIT — means Unrelated Business Income Tax as defined in Section 511 of Internal
Revenue Code and the Treasury Regulations thereunder.

     (i) UBTI — means Unrelated Business Taxable Income as defined in Section 512, et seq.,
of the Internal Revenue Code and the Treasury Regulations thereunder.

     2. Put Right.

     (a) If, at any time after the effective date of this Agreement, the Foundation, as a
result of its ownership of the Membership Interests (i) recognizes UBIT, and (ii) is liable
for UBIT of an amount in excess of the Net Cash Flow, then the Foundation shall provide
Notice (as provided below) to the Donors and to the Company. The Company shall have thirty
(30) days from the receipt of the Notice to contribute an additional

2

 

amount of cash to the Foundation to cover the amount of any UBIT liability in excess of the Net Cash Flow.
If the Company does not make the initial contribution required, each of the Donors shall
have the right to make an additional contribution of cash to cover
the liability for UBIT in excess of the Net Cash Flow. If the additional contribution is
not made by the Company or by the Donors, then the Foundation shall have the right to
exercise its Put Right in accordance with subparagraph (c) of this Paragraph 2.

     (b) If, at any time after the effective date of this Agreement, there is an event of
default in the Loan Documents, as such Loan Documents are defined in The Construction Loan
Agreement dated the 10th day of March, 2005, by and between Wachovia Bank, N.A.
and Cogdell Investors (OSS), LLC, and such default is not cured within thirty (30) days from
the date of notice of the event of default, then the Foundation shall have the right to
exercise its Put Right in accordance with subparagraph (c) of this Paragraph 2.

     (c) Whenever the Foundation has the right to exercise its Put Right in accordance with
this subparagraph (c) of this Paragraph 2,

     (i) The Foundation shall have the right to have the Company purchase the
Membership Interests by sending Notice (as defined below) to the Company that the
Foundation is exercising its rights under this Agreement; and

     (ii) Upon receipt of the Notice, the Company shall be obligated to purchase the
Membership Interests from the Foundation in accordance with the provisions of
paragraph 3 of this Agreement.

Provided, however, nothing contained herein shall prevent the Foundation from selling the
Membership Interests to a third-party, including St. Francis Hospital, Inc. pursuant to the
Purchase Option.

     3. Notice, Closing and Purchase Price.

     (a) If the conditions of Section 2 are satisfied and the Foundation exercises its
rights as provided hereunder, the Foundation shall give written notice, delivered via
regular mail, to C & S Donor, LLC

       
                   
                   
                   
                

       
                   
                   
                   
                

       
                   
                   
                   
                

(the “Notice”). Such Notice shall specify (i) the amount of UBTI recognized by the
Foundation from the Membership Interests, (ii) the amount of the UBIT liability resulting
from the UBTI, (iii) the amount of the Net Cash Flow, and (iv) the amount of additional cash
needed to correct any shortfall specified in Section 2(ii) above.

     (b) The purchase price for the Membership Interests shall be the then fair market
value, taking into consideration the amount of the Net Cash Flow and the Purchase Option, as
agreed between the Foundation and the Company, and if no

3

 

agreement can be made between the parties, by a qualified appraiser selected by the Foundation.

     (c) The closing shall take place on the date agreed upon by the Foundation and the
Company, but not later than ninety (90) days after the delivery of the Notice. The purchase
price will be payable in cash at closing. Upon payment of the purchase price, the
Foundation shall execute and deliver such assignments and other instruments as may be
reasonably necessary to evidence and carry out the transfer of the Membership Interests to
the Company.

     4. Incorporation of Recitals. The paragraphs contained in the Recitals to this
Agreement are incorporated herein by reference as part of this Agreement, and the parties hereto
stipulate and agree that the Recitals are true, correct, and accurate.

     5. Headings. The headings in the sections of this Agreement are inserted for
convenience of reference only and shall not constitute a part hereof.

     6. Entire Agreement. This Agreement sets forth the entire understanding and agreement
between the parties and supersedes and takes the place of any other oral or written agreement or
understanding between the parties hereto relating to the transactions contemplated hereby and may
not be modified or terminated orally, nor shall any oral waiver be binding.

     7. Amendment. No provision of this Agreement shall be altered, amended or revoked
except by an instrument in writing signed by all of the parties to this Agreement.

     8. Counterparts. This Agreement may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed an original, and it shall not be necessary
in making proof of this Agreement to produce or account for more than one such counterpart.

     9. Arbitration. Any controversy or claim arising out of or relating to this Agreement
or any transaction hereunder shall be settled under the Commercial Arbitration Rules of the
American Arbitration Association then in effect. Judgment on the award entered by the panel may be
entered in any court having jurisdiction thereof.

     10. Governing Law. This Agreement and all rights and liabilities of the parties shall
be governed by and construed in accordance with the internal laws, and not the law of conflicts, of
the State of North Carolina.

4

 

     IN WITNESS WHEREOF, each of the Parties voluntarily executes this Put Agreement as of the
above date.

	 	 	 	 	 
	 	 	 
	 	James W. Cogdell	 
	 	 	 
	 	 	 
	 	 	 
	 	Frank C. Spencer	 
	 	 	 
	 	 	 
	 	 	 
	 	FOUNDATION FOR THE CAROLINAS

	 
	 	By:  	 	 
	 	Title:  	 	 
	 	Name: 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	C & S DONOR, LLC

	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	Manager 	 
	 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}]]