Document:

Exhibit 10.18

 

AMENDMENT TO THE 

CHANGE IN CONTROL AGREEMENT

(STEPHEN P. DAVEY)

 

This Amendment to the Change in Control Agreement (dated as of November 30, 2004) (the “Agreement”), is made as of this 15th day of August, 2006, among Valley National Bank (“Bank”), Valley National Bancorp (“Valley”), and STEPHEN P. DAVEY  (the “Executive”).

WHEREAS, the Executive has been employed by Valley and the Bank for many years; and

WHEREAS, the Bank, Valley, and the Executive previously entered into the Agreement; and

WHEREAS, the Bank, Valley and the Executive wish to amend the Agreement;

NOW, THEREFORE, for good and valuable consideration, the Bank, Valley and the Executive, each intending to be legally bound hereby, agree as follows:

 

1.            Subsection (b) of Section 9 of the Agreement, relating to continuation of certain welfare benefit coverages following termination of employment, is amended by deleting the words “medical, dental and”. Subsection (b) of Section 9 of the Agreement is further amended by deleting the last sentence (relating to COBRA) in its entirety.

2.            Section 9 of the Agreement is amended by adding the following new subsection (c) following the end of subsection (b) thereof:

“c.                 Within 20 business days of the termination of employment, pay the Executive a lump sum amount equal to one hundred twenty-five percent (125%) of (A) the aggregate COBRA premium amounts (based upon COBRA rates then in effect) for the equivalent period of the lump sum payment (i.e.,  6 months or 1 year) of the medical and dental coverage that was being provided to the Executive (and his spouse) at the time of termination of employment, minus (B) the aggregate amount of any employee contribution that would have been required of the Executive (determined as of the termination of employment) for such period.”

3.            The Agreement is amended by adding the following new Section 14A, immediately following the end of Section 14:

 

 

 

 

“14A.           Delay in Payment. Notwithstanding anything else to the contrary in this Agreement, the BEP, or any other plan, contract, program or otherwise, the Company (and its affiliates) are expressly authorized to delay any scheduled payments under this Agreement, the BEP, and any other plan, contract, program or otherwise, as such payments relate to the Executive, if the Company (or its affiliate) determines that such delay is necessary in order to comply with the requirements of Section 409A of the Internal Revenue Code. No such payment may be delayed beyond the date that is six (6) months following the Executive’s separation from service (as defined in Section 409A). At the end of such period of delay, the Executive will be paid the
delayed payment amounts, plus interest for the period of any such delay. For purposes of the preceding sentence, interest shall be calculated using the six (6) month Treasury Bill rate in effect on the date on which the payment is delayed, and shall be compounded daily.”

 

IN WITNESS WHEREOF, Valley National Bank and Valley National Bancorp each have caused this Amendment to the Agreement to be signed by their duly authorized representatives pursuant to the authority of their respective Boards of Directors, and the Executive has personally executed this Amendment to the Agreement, all as of the day and year first written above.

 

 

 

	ATTEST:	 	VALLEY NATIONAL BANCORP
	 
	/s/ Alan D. Eskow	 	By:	/s/ Robert McEntee	 
	
Alan D. Eskow, Secretary         
	 	Robert McEntee, Chairman of the

Compensation and Human

Resources Committee	 
	 	 	 	 

	 	 	 
	 	 	 
	ATTEST:	 	VALLEY NATIONAL BANK
	 
	/s/ Alan D. Eskow	 	By:	/s/ Robert McEntee	 
	
Alan D. Eskow, Secretary         
	 	Robert McEntee, Chairman of the

Compensation and Human

Resources Committee	 
	 	 	 	 

	 	 	 
	 	 	 
	WITNESS:	 	 
	 
	/s/ Carol B. Diesner	 	/s/ Stephen P. Davey	 
	Carol B. Diesner	 	Stephen P. Davey, ExecutiveExhibit 10.19

 

AMENDMENT TO THE 

CHANGE IN CONTROL AGREEMENT

(ELIZABETH E. DeLANEY)

 

This Amendment to the Change in Control Agreement (dated as of November 30, 2004) (the “Agreement”), is made as of this 15th day of August, 2006, among Valley National Bank (“Bank”), Valley National Bancorp (“Valley”), and ELIZABETH E. DeLANEY  (the “Executive”).

WHEREAS, the Executive has been employed by Valley and the Bank for many years; and

WHEREAS, the Bank, Valley, and the Executive previously entered into the Agreement; and

WHEREAS, the Bank, Valley and the Executive wish to amend the Agreement;

NOW, THEREFORE, for good and valuable consideration, the Bank, Valley and the Executive, each intending to be legally bound hereby, agree as follows:

 

1.            Subsection (b) of Section 9 of the Agreement, relating to continuation of certain welfare benefit coverages following termination of employment, is amended by deleting the words “medical, dental and”. Subsection (b) of Section 9 of the Agreement is further amended by deleting the last sentence (relating to COBRA) in its entirety.

2.            Section 9 of the Agreement is amended by adding the following new subsection (c) following the end of subsection (b) thereof:

“c.                 Within 20 business days of the termination of employment, pay the Executive a lump sum amount equal to one hundred twenty-five percent (125%) of (A) the aggregate COBRA premium amounts (based upon COBRA rates then in effect) for the equivalent period of the lump sum payment (i.e., 6 months or 1 year) of the medical and dental coverage that was being provided to the Executive (and his spouse) at the time of termination of employment, minus (B) the aggregate amount of any employee contribution that would have been required of the Executive (determined as of the termination of employment) for such period.”

 

 

 

 

3.            The Agreement is amended by adding the following new Section 14A, immediately following the end of Section 14:

“14A.           Delay in Payment. Notwithstanding anything else to the contrary in this Agreement, the BEP, or any other plan, contract, program or otherwise, the Company (and its affiliates) are expressly authorized to delay any scheduled payments under this Agreement, the BEP, and any other plan, contract, program or otherwise, as such payments relate to the Executive, if the Company (or its affiliate) determines that such delay is necessary in order to comply with the requirements of Section 409A of the Internal Revenue Code. No such payment may be delayed beyond the date that is six (6) months following the Executive’s separation from service (as defined in Section 409A). At the end of such period of delay, the Executive will be paid the
delayed payment amounts, plus interest for the period of any such delay. For purposes of the preceding sentence, interest shall be calculated using the six (6) month Treasury Bill rate in effect on the date on which the payment is delayed, and shall be compounded daily.”

 

IN WITNESS WHEREOF, Valley National Bank and Valley National Bancorp each have caused this Amendment to the Agreement to be signed by their duly authorized representatives pursuant to the authority of their respective Boards of Directors, and the Executive has personally executed this Amendment to the Agreement, all as of the day and year first written above.

 

 

 

	ATTEST:	 	VALLEY NATIONAL BANCORP
	 
	/s/ Alan D. Eskow	 	By:	/s/ Robert McEntee	 
	
Alan D. Eskow, Secretary         
	 	Robert McEntee, Chairman of the

Compensation and Human

Resources Committee	 
	 	 	 	 

	 	 	 
	 	 	 
	ATTEST:	 	VALLEY NATIONAL BANK
	 
	/s/ Alan D. Eskow	 	By:	/s/ Robert McEntee	 
	
Alan D. Eskow, Secretary         
	 	Robert McEntee, Chairman of the

Compensation and Human

Resources Committee	 
	 	 	 	 

	 	 	 
	 	 	 
	WITNESS:	 	 
	 
	/s/ Carol B. Diesner	 	/s/ Elizabeth E. DeLaney	 
	Carol B. Diesner	 	Elizabeth E. DeLaney, ExecutiveEX-10.1

ONE WORLD TRADE CENTER

PURCHASE AND SALE AGREEMENT

BY AND BETWEEN

GREIT-ONE WORLD TRADE CENTER, L.P.,

a California limited partnership

as Seller

and

LEGACY PARTNERS REALTY FUND II, LLC,

a Delaware limited liability company

as Buyer

Dated August 17, 2006

	 	 	 	 	 	 	 	 	 
	1. Purchas
	 	e and Sale                                       1
	 	 	 	 
	2.
	 	Purchase Price
	 	 	2	 
	3.
	 	Title to Property
	 	 	4	 
	4.
	 	Due Diligence Items
	 	 	5	 
	5.
	 	Inspections
	 	 	6	 
	6.
	 	Approval
	 	 	8	 
	7.
	 	Escrow
	 	 	9	 
	8.
	 	Representations, Warranties, and Covenants
	 	 	18	 
	9.
	 	Representations and Warranties of Buyer
	 	 	25	 
	10.
	 	Conditions Precedent to Closing
	 	 	25	 
	11.
	 	Damage or Destruction Prior to Closing
	 	 	27	 
	12.
	 	Eminent Domain
	 	 	28	 
	13.
	 	Notices
	 	 	28	 
	14.
	 	Remedies
	 	 	30	 
	15.
	 	Assignment
	 	 	30	 
	16.
	 	Interpretation and Applicable Law
	 	 	30	 
	17.
	 	Amendment
	 	 	30	 
	18.
	 	Attorney’s Fees
	 	 	31	 
	19.
	 	Entire Agreement; Survival
	 	 	31	 
	20.
	 	Multiple Originals Only; Counterparts
	 	 	31	 
	21.
	 	Acceptance
	 	 	31	 
	22.
	 	Real Estate Commission
	 	 	31	 
	23.
	 	Exchange
	 	 	32	 
	24.
	 	Confidentiality
	 	 	32	 

	 	 	 
	EXHIBITS	 	 
	Exhibit A

Exhibit B

Exhibit C

Exhibit D

Exhibit E

Exhibit F

Exhibit G

Exhibit H

Exhibit I

	 	Legal Description of the Property

Form of Assignment and Assumption Agreement

Form of Bill of Sale

List of Contracts

List of Leases

Schedule of Personal Property

Form of Tenant Estoppel

Schedule of Leasing Costs

Schedule of Loan Documents

1

AGREEMENT FOR PURCHASE AND SALE

OF REAL PROPERTY AND ESCROW INSTRUCTIONS

THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS (“Agreement”)
between GREIT-ONE WORLD TRADE CENTER, L.P., a California limited partnership (“Seller”), and LEGACY
PARTNERS REALTY FUND II, LLC, a Delaware limited liability company (“Buyer”), is made and entered
into as of the later of (i) the date this Agreement is executed by Seller and (ii) the date this
Agreement is executed by Buyer (the “Effective Date”):

1. Purchase and Sale.

Subject to and in accordance with the terms and provisions of this Agreement, Seller agrees
to sell and Buyer agrees to purchase from Seller, the Property, which term “Property” shall
mean and include the following:

	 	1.1	 	The parcels of land located in the in Los Angeles County, California and more
specifically described in Exhibit A attached hereto (the “Land”), commonly
known as One World Trade Center (hereinafter referred to as the “Land”); and

	 	1.2	 	All rights, privileges, and easements appurtenant to the Land, including,
without limitation, all water rights, mineral rights, development rights, air rights,
reversions, or other appurtenances to said Land, and all right, title, and interest of
Seller, if any, in and to any land lying in the bed of any street, road, alley, or
right-of-way, open or proposed, adjacent to or abutting the Land; and

	 	1.3	 	Seller’s right, title and interest in all buildings, structures, and
improvements situated on the Land, including, without limitation, the office building
located thereon, all parking areas and other amenities located on the Land, and all
apparatus, elevators, built-in appliances, equipment, pumps, machinery, plumbing,
heating, air conditioning, and electrical and other fixtures located on the Land (all
of which are together hereinafter referred to as the “Improvements”); and

	 	1.4	 	All leases and other occupancy agreements (collectively, the “Leases”),
including associated amendments, with all parties (collectively, “Tenants”) leasing the
Property or any part thereof or hereafter entered into in accordance with the terms
hereof prior to Closing, together with all security deposits, other deposits held in
connection with the Leases, and all of Seller’s right, title and interest in and to all
guarantees, letters of credit and other similar credit enhancements providing
additional security for such Leases (a schedule of all current Leases and security
being attached hereto as Exhibit E);

	 	1.5	 	All tangible and intangible personal property owned by Seller located on or
used in connection with the Property, including, without limitation, all sculptures,
paintings and other artwork, all equipment, furniture, tools and supplies, all plans
and specifications and other architectural and engineering drawings, if any, with
respect to the Land and the Improvements, and any other personal property and all
related intangibles as are owned by Seller and currently located in, on or about or are
used for the operation, maintenance, administration or repair of the Property (a
schedule of which is attached as Exhibit F, including Seller’s interest, if
any, in the common name of the Property (collectively, the “Personal Property”);

	 	1.6	 	All service contracts, agreements, warranties and guaranties relating to the
operation of the Property as of the Effective Date (a schedule of which is attached
hereto as Exhibit D), to the extent assignable, and any other service and
operating agreements pertaining to the Property that are entered into by Seller after
the date of this Agreement and prior to the Closing in accordance with the terms of
this Agreement, in each case to the extent approved by Buyer in accordance with this
Agreement (collectively, the “Contracts”); provided, however, any
Contracts not so approved by Buyer shall be terminated by Seller on or before the
Closing; and

	 	1.7	 	To the extent transferable, all building permits, certificates of occupancy and
other certificates, permits, consents, authorizations, variances or waivers,
dedications, subdivision maps, licenses and approvals from any governmental or
quasi-governmental agency, department, board, commission, bureau or other entity or
instrumentality relating to the Property (the “Permits”).

2. Purchase Price.

Subject to the charges, prorations and other adjustments set forth in this Agreement, the
total Purchase Price of the Property shall be One Hundred Fifty Million Dollars
($150,000,000) (“Purchase Price”) payable as follows:

	 	2.1	 	Deposit/Further Payments/Down Payment.

	 	2.1.1	 	Within two (2) business days of the Effective Date, Buyer
shall deposit into Escrow the amount of One Million Dollars ($1,000,000) (the
“Initial Deposit”), in the form of a wire transfer payable to Fidelity National
Title Company, 1300 Dove Street, Suite 310, Newport Beach, CA 92660, Attn:
Natalie Vona, telephone (949) 622-4845 (“Escrow Holder”). In the event Buyer
acquires the Property, the Initial Deposit shall be applied towards the
Purchase Price.

	 	2.1.2	 	It is understood and agreed that the sum of Two Hundred Fifty
Thousand Dollars ($250,000) of the Initial Deposit (the “Nonrefundable
Portion”) shall be deemed earned by Seller as of the date it is deposited with
Escrow Holder. The Nonrefundable Portion (as part of the Deposit) will be
applied to the Purchase Price at Closing, provided, however,
the Nonrefundable Portion will be refunded to Buyer in the event there is a
failure of a Buyer’s condition precedent as set forth in Section 10.1
of this Agreement. Further, notwithstanding anything to the contrary herein,
if the Buyer’s condition precedent set forth in Subsection 10.1.4
(closing of the Loan Assumption) is not satisfied, Seller shall only be
entitled to retain the sum of One Hundred Thousand Dollars ($100,000) of the
Deposit, and the entire remainder of the Deposit (including, without
limitation, $150,000 of the Nonrefundable Portion) shall be refunded to Buyer
in accordance with the terms of Section 10 of this Agreement.

	 	2.1.3	 	Within one (1) business day following the last day of the
Inspection Period (as defined in Section 6.1 below), and provided that
Buyer has delivered an Approval Notice (as defined in Section 6.1
below), Buyer shall deposit into Escrow the amount of One Million Dollars
($1,000,000) (the “Additional Deposit”), in the form of a wire transfer payable
to Escrow Holder. Escrow Holder shall place the Additional Deposit into an
interest bearing money market account at a bank or other financial institution
reasonably satisfactory to Buyer, and interest thereon shall be credited to
Buyer’s account. The Initial Deposit, and to the extent it has been deposited,
the Additional Deposit, shall collectively be referred to herein as the
“Deposit”).

	 	2.2	 	Subject to the terms of this Section 2.2, Buyer shall assume at Closing
the loan in the original principal amount of Ninety Million Dollars ($90,000,000),
which currently encumbers the Property (the “Loan”). The Loan was originally made by
LaSalle Bank National Association (together with its successors, the “Lender”), and is
evidenced and/or secured by a number of documents which are hereinafter collectively
referred to as the “Loan Documents”.

	 	2.2.1	 	The Lender’s consent and approval is required before the Buyer
will be permitted to assume the Loan, and it is understood and agreed that the
closing of the assumption of the Loan (“Loan Assumption”) on the terms set
forth in loan assumption agreement to be executed and delivered by Buyer (or
Buyer’s successor) and Lender prior to Closing shall be a condition to Closing
hereunder. Seller acknowledges that Buyer will be requesting Lender’s consent
to the Loan Assumption by a single purpose entity formed to purchase the
Property which entity may include as members, directly or indirectly, Buyer, a
co-investor and/or a preferred equity provider. Any guaranty which may be
required in connection with the Loan Assumption, will be provided by Buyer or
an affiliate of or co-venturer of Buyer which has sufficient net worth to
satisfy the Lender’s reasonable requirements, but in no event will any
individual provide a guaranty of the Loan. Buyer confirms that it is Buyer’s
intent to form a venture to acquire the Property with a co-investor in a
preferred equity or similar structure, provided, however, if
Lender does not approve the Loan Assumption with such newly formed venture as
the buyer/borrower, Buyer will then seek Lender’s approval of the Loan
Assumption with a single purpose entity formed by Buyer (without the preferred
equity/venture structure) as the buyer/borrower.

	 	2.2.2	 	Seller acknowledges and agrees that Seller shall pay any
assumption fees and any and all other costs, fees or expenses (other than
Buyer’s own legal fees) in connection with attempting to obtain Lender’s
approval of the assumption of the Loan and, if the transaction contemplated by
this Agreement is consummated, in connection with the assumption of the Loan
(collectively, the “Loan Assumption Related Fees”). In connection with such
approval, the parties shall diligently, promptly and in good faith attempt to
obtain such approval and both parties will supply the information reasonably
requested by Lender with respect to such approval. Further, Buyer shall use
its commercially reasonable efforts to cause Lender to confirm in connection
with the Loan Assumption that no breach or default (nor any event which with
the giving of notice or passage of time, or both, would constitute a breach or
default) has occurred under the Loan Documents, and to obtain Lender’s
agreement to look solely to Seller with respect to any obligations arising
under the Loan Documents prior to Closing, provided, however
that the failure of the Lender to make such confirmation or agreement shall not
be deemed a Seller default or a failure of a condition precedent to this
Agreement..

	 	2.2.3	 	Except for the payment of any Loan Assumption Related Fees,
which Seller shall be responsible for paying to Lender, Buyer shall use
commercially reasonable efforts to deliver to Lender within fifteen (15)
business days following the Effective Date a package containing all information
initially requested by Lender regarding Buyer and Buyer’s proposed acquisition
of the Property and the related Loan assumption. Such package will in any
event be submitted to Lender within thirty (30) days following the Effective
Date. Furthermore, if Lender requires the submission of additional documents
or information, Buyer shall use its commercially reasonable efforts to promptly
assemble the necessary information and make the required submissions. Buyer
agrees to proceed with diligence to obtain Lender’s consent to the Loan
Assumption. Seller agrees to cooperate with and reasonably assist Buyer’s
efforts to obtain Lender’s approval of the Loan Assumption.

	 	2.3	 	On or before Closing, Buyer shall deposit into Escrow the balance of the
Purchase Price (subject to adjustments and prorations as set forth herein), by wire
transfer payable to Escrow Holder.

3. Title to Property.

During the Inspection Period (hereafter defined) Buyer shall review and approve the Title
Documents (hereinafter defined) and the Survey (hereinafter defined). If the Title
Documents or Survey reflect or disclose any defect, exception or other matter affecting the
Property (“Title Defects”) that is unacceptable to Buyer, then prior to the expiration of
the Inspection Period, Buyer shall provide Seller with written notice (“Title Notice”) of
Buyer’s objections. Seller may, at its sole option, elect to cure or remove the objections
made by Buyer. Should Seller elect to attempt to cure or remove the objection, it shall be
a condition precedent to Buyer’s obligation to acquire the Property that Seller cures such
title objection prior to the Closing. Unless Seller provides written notice to Buyer,
within five (5) days prior to the expiration of the Inspection Period, that Seller intends
to cure Buyer’s title objections, Seller shall be deemed to have elected not to cure or
remove Buyer’s title objections, and Buyer shall be entitled, as Buyer’s sole and exclusive
remedy to either (a) not deliver an Approval Notice as referenced herein, in which case the
Additional Deposit shall not be submitted by Buyer; or (b) elect to waive the objections and
close this transaction as otherwise contemplated herein. If Buyer shall fail to terminate
this Agreement pursuant to this Section 3, all matters shown on the Survey and all
matters described in the Title Report, except for (x) monetary liens (other than the Loan
Documents, as modified pursuant to the Loan Assumption), which were not created by the
Buyer; and (y) any matters the Seller has agreed to cure in writing, shall be deemed
“Permitted Exceptions.” The Loan Documents, as modified pursuant to the Loan Assumption,
shall be Permitted Exceptions. If Buyer is notified of any new Title Defect (which was not
disclosed to Buyer prior to the expiration of the Inspection Period) following the
expiration of the Inspection Period, Buyer shall have five (5) days from the date of such
notification to deliver a Title Notice with respect to any such new Title Defect and Seller
shall have five (5) business days to respond to Buyer’s Title Notice with respect to such
new Title Defects. If Buyer does not elect to cure such new Title Defects, Buyer shall have
the right to terminate this Agreement by delivering written notice to Seller within ten (10)
business days following Buyer’s delivery of such new Title Notice.

4. Due Diligence Items.

	 	4.1	 	Seller shall deliver to Buyer each of the following by no later than two (2)
business days following the Effective Date (together with the items described in
Section 4.2, collectively, the “Due Diligence Items”):

	 	4.1.1	 	The existing survey of the Property in Seller’s possession
(the “Survey”);

	 	4.1.2	 	A current preliminary title report or title commitment (the
“Title Report”) for the issuance of a standard coverage owner’s policy of title
insurance, with standard provisions and exceptions (the “Title Policy”) to
Buyer from the Escrow Holder, together with copies of all documents
constituting exceptions to the title as reflected in the Title Report
(collectively referred to hereinafter as the “Title Documents”);

	 	4.1.3	 	A list of all tenant leases, contracts, including service
contracts, warranties, management, maintenance, leasing commission or other
agreements affecting the Property, if any, together with copies of the same;

	 	4.1.4	 	True and correct copies of the real estate and personal
property tax statements covering the Property or any part thereof for each of
the three (3) years prior to the current year and, if available, for the
current year;

	 	4.1.5	 	A schedule of all current or pending litigation with respect
to the Property or any part, thereof, if any;

	 	4.1.6	 	Operating statements for the most recent two (2) full calendar
years and monthly operating statements for the calendar year to date;

	 	4.1.7	 	An inventory of all personal property located on the Property,
used in the maintenance of the Property or stored for future use at the
Property and an inventory of all furniture and appliances used in the units, if
any; and

	 	4.1.8	 	True and complete copies of all documents evidencing or
pertaining to the Loan.

	 	4.2	 	Seller shall make the following available for inspection by Buyer during
ordinary business hours (or as otherwise agreed) at Seller’s management office:

	 	4.2.1	 	All site plans, leasing plans, as-built plans, drawings,
environmental, mechanical, electrical, structural, soils and similar reports
and/or audits and plans and specifications relative to the Property in the
possession of Seller, if any.

	 	4.2.2	 	The tenant files, books and records relating to the ownership
and operation of the Property.

	 	4.2.3	 	All other items relating to the Property which are located at
Seller’s management office or otherwise within Seller’s possession or control,
including, without limitation, all notices, statements and correspondence
delivered to or received from Lender, except internal financial projections,
appraisals, and other materials reasonably deemed by Seller to be proprietary
or confidential.

5. Inspections.

	 	5.1	 	Buyer shall have a temporary non-exclusive license to enter and conduct
non-invasive feasibility, environmental, and physical studies collectively of the
Property that Buyer may deem necessary or advisable (the “Inspections”) at any time
during the Inspection Period, on the terms set forth in this Article 5. Buyer
shall not conduct invasive testing of any kind (including without limitation,
“Phase II” environmental testing without Seller’s consent. Buyer’s right to conduct
the Inspections shall be subject to rights of Tenants and shall be subject to such
conditions as may be reasonably imposed by the Seller in order to avoid disruption at
the Property.

	 	5.2	 	Buyer must arrange all Inspections of the Property with Seller at least one (1)
business day in advance of any Inspections. Buyer and its agents shall maintain
equipment and other materials in an orderly manner while they are located on the
Property and to maintain them in locations specified by Seller. Buyer agrees to remove
all debris and trash resulting from the Inspections on a daily basis and to remove all
equipment and other materials used by Buyer or its agents as soon as the activity for
which such equipment and other materials are used is completed. Buyer and its agents
shall take all appropriate measures for the safety of persons and property on the
Property and shall comply with all applicable legal requirements. Buyer shall restore
any damage to the Property resulting from the Inspections including but not limited to
repair of surface openings resulting from tests. Buyer shall promptly provide to
Seller a copy of all final reports and final test results prepared or furnished in
connection with the Inspections.

	 	5.3	 	In the event that the Inspections show any fact, matter or condition to exist
with respect to the Property that is unacceptable to Buyer, in Buyer’s sole subjective
discretion, then Buyer shall be entitled, as its sole and exclusive remedy, to
(1) elect not to deliver an Approval Notice as set forth herein, in which event the
Buyer will not submit the Additional Deposit and the Nonrefundable Portion shall be
released to Seller, or (2) elect to proceed to close the transaction as otherwise
contemplated herein. Buyer agrees to promptly discharge any liens that may be imposed
against the Property as a result of the Inspections and to defend, indemnify and hold
Seller harmless from all, claims, suits, losses, costs, expenses (including without
limitation court costs and attorneys’ fees), liabilities, judgments and damages
incurred by Seller as a result of any Inspections.

	 	5.4	 	Buyer shall indemnify, save and hold Seller and Seller’s officers, agents,
employees, directors, trustees, invitees, successors, and assigns (collectively
“Indemnitees”) harmless against all losses, costs, expenses, liabilities, claims,
litigation, demands, proceedings and damages (including but not limited to attorney’s
fees) suffered or incurred by Seller or any such Indemnitees arising out of and limited
to the Inspections, provided that Buyer shall not incur any liability due to its
discovery, without exacerbation of the condition of any Hazardous Materials or other
circumstances at the Property. Buyer waives any claims against Seller arising out of
the Inspections or this Agreement other than claims to the extent caused by any
negligent or willful misconduct of Seller or Seller’s agents. Buyer hereby assume all
responsibility for claims against Seller by the contractors, subcontractors, employees,
and agents of Buyer other than claims to the extent caused by the negligence or willful
misconduct of Seller or its agents.

	 	5.5	 	Buyer shall, during the term of this Agreement and at all times during which
access is available to it, require its subcontractors and agents, to maintain
insurance, in form and substance reasonably satisfactory to Seller, with insurance
companies acceptable to Seller, the following insurance: Commercial General Liability
Insurance, with limits of not less than One Million Dollars ($1,000,000) combined
single limit per occurrence and not less than Two Million Dollars ($2,000,000) on a
general aggregate basis, for bodily injury, death and property damage (provided that
agents and consultants shall not be required to carry coverage in excess of
$1,000,000). In addition, Buyer shall maintain excess (umbrella) liability insurance
with liability insurance with limits of not less than Five Million Dollars ($5,000,000)
per occurrence. Each policy of insurance shall name Seller as an additional insured.
Further, each policy of insurance shall state that such policy is primary and
noncontributing with any insurance carried by Seller. Such policy shall contain a
provision that the naming of the additional insured shall not negate any right the
additional insured would have had as a claimant under the policy if not so named and
shall contain severability of interest and cross-liability clauses. A certificate,
together with any endorsements to the policy required to evidence the coverage which is
to be obtained hereunder, shall be delivered to Seller prior to entry on the Property.
The certificate shall expressly provide that no less than thirty (30) days prior
written notice shall be given Seller in the event of any material alteration to or
cancellation of the coverages evidenced by said certificate. Any policies required by
the provisions of this Section may be made a part of a blanket policy of insurance with
a “per project, per location endorsement” so long as such blanket policy contains all
of the provisions required herein and does not reduce the coverage, impair the rights
of the other party to this Agreement or negate the requirements of this Agreement.

	 	5.6	 	During the course of its performance of the Inspections, Buyer will acquire
knowledge concerning the Property or Seller, or knowledge of other matters of a
sensitive business nature (collectively, “Privileged Information”). Except as
described below, neither Buyer nor its agents shall disclose to any third party,
publicize or suffer or permit any of their respective employees to so disclose or
publicize any such Privileged Information, other than to consultants, attorneys and
agents as necessary for the Buyer’s inspection and analysis of the Property. In the
event that Buyer believes in good faith that it is required by any legal requirement to
disclose any such Privileged Information, then Buyer shall immediately notify Seller of
such belief and the reasons for such belief. If Seller within ten (10) days after
receipt of such notice, advises the party that sent the notice that Seller shall itself
disclose the information, then Buyer shall not make such disclosure (unless either such
party reasonably believes that it must disclose such information by law). If Buyer
reasonably believes that such disclosure is required to be made in less than the 10-day
period, then the notice to Seller shall so state and Seller’s time to respond will be
reduced accordingly.

	 	5.7	 	The obligations of Buyer described in this Article shall survive the Closing or
any termination of this Agreement.

6. Approval.

	 	6.1	 	Buyer shall have until 5:00 p.m., Pacific time, on September 15, 2006
(“Inspection Period”) to approve or disapprove the Inspections. If Buyer wishes to
proceed with its acquisition of the Property at the expiration of the Inspection
Period, Buyer shall to deliver to Seller and Escrow Holder by 5:00 p.m. on the last day
of the Inspection Period a written notice confirming that Buyer wishes to proceed
(“Approval Notice”). If Buyer shall fail to deliver an Approval Notice to Seller and
Escrow Holder prior to the expiration of the Inspection Period, the condition of the
Property shall be deemed disapproved and this Agreement and the Escrow shall thereupon
be terminated. In such event, Buyer shall not be entitled to purchase the Property,
Seller shall not be obligated to sell the Property to Buyer, Buyer shall not submit the
Additional Deposit, the Nonrefundable Portion shall be paid to Seller, and the parties
shall be relieved of any further obligation to each other with respect to the Property,
except as provided in Section 5.

	 	6.2	 	Notwithstanding anything to the contrary contained herein, Buyer hereby agrees
that, in the event this Agreement is terminated for any reason, then Buyer shall
promptly and at its sole expense return to Seller all Due Diligence Items which have
been delivered by Seller to Buyer in connection with the Inspections, along with copies
of all final reports, drawings, plans, studies, summaries, surveys, maps and other data
prepared by third parties relating to the Property, subject to restrictions on Buyer’s
ability to make any such materials available to Seller that are imposed in any
agreement with a third party consultant preparing any such reports or materials
(“Buyer’s Reports”); provided, however, that delivery of such copies
and information by Buyer shall be without warranty or representation whatsoever,
express or implied, including without limitations, any warranty or representation as to
ownership, accuracy, adequacy or completeness thereof or otherwise. Buyer shall
cooperate with Seller at no expense to Buyer in order to obtain a waiver of any such
restrictions.

	 	6.3	 	On or before the end of the Inspection Period, Buyer will designate in a
written notice to Seller which Contracts Buyer will assume and which Contracts must be
terminated by Seller at Closing. Taking into account any credits or prorations to be
made pursuant to this Agreement for payments coming due after Closing but accruing
prior to Closing, Buyer will assume the obligations arising from and after the Closing
Date under those Contracts which Buyer has designated will not be terminated. At
Buyer’s expense (if any), Seller shall terminate at Closing all Contracts that Buyer
does not elect to assume as set forth herein.

7. Escrow.

	 	7.1	 	Opening.

	 	7.1.1	 	The purchase and sale of the Property shall be consummated
through an escrow (“Escrow”) to be opened with Escrow Holder within two (2)
business days after the Effective Date. Escrow shall be deemed to be opened as
of the date fully executed copies (or counterparts) of this Agreement are
delivered to Escrow Holder by Buyer and Seller (“Opening of Escrow”). This
Agreement shall be considered as the Escrow instructions between the parties,
with such further instructions as Escrow Holder shall require in order to
clarify its duties and responsibilities. If Escrow Holder shall require
further Escrow instructions, Escrow Holder may prepare such instructions on its
usual form. Such further instructions shall be promptly signed by Buyer and
Seller and returned to Escrow Holder within three (3) business days of receipt
thereof. In the event of any conflict between the terms and conditions of this
Agreement and such further instructions, the terms and conditions of this
Agreement shall control.

	 	7.2	 	Closing.

	 	7.2.1	 	Escrow shall close (“Closing”) on or before the date which is
ten (10) business days after the date the Lender provides written notice of its
approval of Buyer’s assumption of the Loan. Notwithstanding the foregoing, if
the Loan Assumption has not been approved by Lender on or before the date which
is one hundred fifty (150) days following the Effective Date, Seller may
terminate this Agreement by delivering written notice to Buyer. If Seller
exercises its termination right contained in this Subsection 7.2.1,
Nine Hundred Thousand Dollars ($900,000) of the Deposit shall be promptly
refunded to Buyer together with interest accrued thereon, and Seller and Buyer
shall be released from their respective obligations under this Agreement
(excepting only those obligations which survive the expiration or termination
hereof). It is understood and agreed that in the event of a termination of
this Agreement solely due to Lender not timely approving or closing the Loan
Assumption as set forth herein, Seller shall be entitled to retain only the sum
of One Hundred Thousand Dollars ($100,000) of the Deposit, as referenced in
Subsection 2.1.3 above.

	 	7.3	 	Buyer Required to Deliver.

Buyer shall deliver to Escrow the following:

	 	7.3.1	 	Concurrently with the Opening of Escrow, the Initial Deposit
and, following the delivery of an Approval Notice, the Additional Deposit;

	 	7.3.2	 	On or before Closing, the Purchase Price, subject to the
closing adjustments, credits and prorations contemplated hereby;

	 	7.3.3	 	On or before Closing, such other documents as Title Company
may reasonably require from Buyer in order to issue the Title Policy;

	 	7.3.4	 	An original counterpart executed by Buyer of an assignment and
assumption agreement (the “Assignment and Assumption Agreement”) in
substantially the form attached hereto as Exhibit B, whereby Seller
assigns and conveys to Buyer all of Seller’s right, title and interest in and
Buyer assumes all of Seller’s obligations under, the Leases and the Contracts
and the Permits;

	 	7.3.5	 	An original counterpart executed by Buyer of the documents
Lender requires to be executed and delivered in connection with the assumption
of the Loan (the “Loan Assumption Documents”) by Buyer.

	 	7.3.6	 	A counterpart closing statement (the “Closing Statement”)
setting forth the Purchase Price and all amounts charged against Buyer pursuant
to Section 7.7 of this Agreement.

	 	7.4	 	Seller Required to Deliver.

On or before Closing, Seller shall deliver to Escrow the following:

	 	7.4.1	 	A duly executed and acknowledged special warranty deed,
conveying fee title to the Property in favor of Buyer (the “Deed”), with a
legal description identical to the legal description attached hereto as
Exhibit A;

	 	7.4.2	 	An executed certificate of non-foreign status;

	 	7.4.3	 	A bill of sale of the Personal Property, if any, without
warranty, in favor of Buyer and duly executed by Seller, in substantially the
form attached hereto as Exhibit C;

	 	7.4.4	 	An original counterpart of the Loan Assumption Documents
required to be executed by Seller;

	 	7.4.5	 	A counterpart Closing Statement setting forth the Purchase
Price and all amounts charged against Seller pursuant to Section 7.7 of
this Agreement;

	 	7.4.6	 	Such other documents as Title Company may reasonably require
from Seller in order to issue the Title Policy;

	 	7.4.7	 	A letter from Seller addressed to each Tenant informing such
Tenant of the change in ownership and directing that future rent payments be
made to Buyer;

Seller shall deliver the following directly to Buyer after Closing has occurred:

	 	7.4.8	 	All keys to all buildings and other improvements located on
the Property, combinations to any safes thereon, and security devices therein
in Seller’s possession;

	 	7.4.9	 	All records and files relating to the management or operation
of the Property, including, without limitation, all insurance policies, all
security contracts, all tenant files (including correspondence), property tax
bills, and all calculations used to prepare statements of rental increases
under the Leases and statements of common area charges, insurance, property
taxes and other charges which are paid by tenants of the Project; and

	 	 	 	 	 
	7.5

	 	Buyer’s Costs.
	 	

	 
	 	 	 	 
	 	 	 

	 
	 	 	 	 
	 	 	Buyer shall pay the following:

	 
	 	 	 	 
	
 
	 	7.5.1

7.5.2
	 	One-half of Escrow Holder’s fees, costs and expenses;

[Intentionally Omitted]

	 	7.5.3	 	All costs of the title search and any title insurance premiums
except the premium for the basic CLTA title insurance policy; and

	 	7.5.4	 	All other costs customarily borne by Buyers of real property
in the county in which the Property is situated;

	 	 	 	 	 
	7.6

	 	Seller’s Costs.
	 	

	 
	 	 	 	 
	 	 	 

	 
	 	 	 	 
	 	 	Seller shall pay the following:

	 
	 	 	 	 
	
 
	 	7.6.1

7.6.2

7.6.3

7.6.4
	 	One-half of Escrow Holder’s fees, costs and expenses;

All transfer taxes, and costs of recording the Deed;

The premium for the basic CLTA title insurance policy;

The Loan Assumption Related Fees; and

	 	7.6.5	 	All other costs not itemized above which are customarily borne
by sellers of real property in the county in which the Property is situated.

	 	7.7	 	Prorations.

	 	7.7.1	 	Items to be Prorated. The following shall be prorated
between Seller and Buyer as of the Closing with the Buyer being deemed the
owner of the Property as of the Closing:

(a) Taxes and Assessments. All non-delinquent real property taxes,
assessments and other governmental impositions of any kind or nature,
including, without limitation, any special assessments or similar charges
(collectively, “Taxes”), which relate to the tax year within which the
Closing occurs based upon the actual number of days in the tax year. Seller
shall be responsible for all Taxes assessed with respect to periods prior to
Closing, and Buyer shall be responsible for all Taxes assessed with respect
to periods from and after Closing. With respect to any portion of the Taxes
which are payable by any Tenant directly to the authorities, no proration or
adjustment shall be made. The proration for Taxes shall be based upon the
most recently issued tax bill for the Property, and shall be calculated
based upon the maximum early payment discount available. Upon the Closing,
Buyer shall be responsible for real estate taxes and assessments on the
Property payable from and after the Closing. In no event shall Seller be
charged with or be responsible for any increase in the taxes or assessments
on the Property resulting from the sale of the Property or from any
improvements made or leases entered into after the Closing. With respect to
all periods for which Seller has paid Taxes, Seller hereby reserves the
right to institute or continue any proceeding or proceedings for the
reduction of the assessed valuation of the Property, and, in its sole
discretion, to settle the same. Seller shall have sole authority to control
the progress of, and to make all decisions with respect to, such proceedings
but shall provide Buyer with copies of all communications with the taxing
authorities. All net tax refunds and credits attributable to any period
prior to the Closing which Seller has paid or for which Seller has given a
credit to Buyer shall belong to and be the property of Seller,
provided, however, that any such refunds and credits that
are the property of Tenants under Leases shall be promptly remitted by
Seller directly to such Tenants or to Buyer for the credit of such Tenants.
All net tax refunds and credits attributable to any period subsequent to the
Closing shall belong to and be the property of Buyer. Buyer agrees to
reasonably cooperate with Seller in connection with the prosecution of any
such proceedings and to take all steps, whether before or after the Closing,
as may be necessary to carry out the intention of this subparagraph,
including the delivery to Seller, upon demand, of any relevant books and
records, including receipted tax bills and cancelled checks used in payment
of such taxes, the execution of any and all consent or other documents, and
the undertaking of any acts necessary for the collection of such refund by
Seller. Buyer agrees that, as a condition to the transfer of the Property
by Buyer, Buyer will cause any transferee to assume the obligations set
forth herein. Tax records need not be kept longer than seven years.

(b) Rents. Buyer will receive a credit at the Closing for all rents
collected by Seller prior to the Closing and allocable to the period from
and after the Closing based upon the actual number of days in the month. No
credit shall be given the Seller for accrued and unpaid rent or any other
non-current sums due from Tenants until these sums are paid. Buyer shall
cooperate with Seller after the Closing to collect any rent under the Tenant
Leases which has accrued as of the Closing; provided, however, Buyer shall
not be obligated to sue any Tenants or exercise any legal remedies under the
Tenant Leases or to incur any expense over and above its own regular
collection expenses. All payments collected from Tenants after the Closing
shall first be applied to the month in which the Closing occurs, then to any
rent due to Buyer for the period after Closing and finally to any rent due
to Seller for the period prior to Closing. Seller shall not engage in
collection efforts post-closing.

(c) CAM Expense. To the extent that Tenants are reimbursing the
landlord for common area maintenance and other operating expenses
(collectively, “CAM Charges”), CAM Charges shall be prorated at Closing and
again subsequent to Closing, as of the date of Closing on a lease-by-lease
basis with each party being entitled to receive a portion of the CAM Charges
payable under each Lease for the CAM Lease Year in which Closing occurs,
which portion shall be equal to the actual CAM Charges incurred during the
party’s respective periods of ownership of the Property during the CAM Lease
Year. As used herein, the term “CAM Lease Year” means the twelve (12) month
period as to which annual CAM Charges are owed under each Lease. Five (5)
days prior to Closing the Seller shall submit to Buyer an itemization of its
actual CAM Charges operating expenses through such date and the amount of
CAM Charges received by the Seller as of such date, together with an
estimate of CAM Charges to be incurred to, but not including, the Closing.
In the event that the Seller has received CAM Charges payments in excess of
its actual CAM Charges operating expenses, the Buyer shall be entitled to
receive a credit against the Purchase Price for the excess. In the event
that the Seller has received CAM Charges payments less than its actual CAM
Charges operating expenses, to the extent that the Leases provide for a
“true up” at the end of the CAM Lease Year, the Seller shall be entitled to
receive any deficit but only after the Buyer has received any true up
payment from the Tenant. Upon receipt by either party of any CAM Charge
true up payment from a Tenant, the party receiving the same shall provide to
the other party its allocable share of the “true up” payment within
thirty (30) days of the receipt thereof.

(d) Operating Expenses. All operating expenses (including all
charges under the service contracts and agreements assumed by Buyer) shall
be prorated, and as to each service provider, operating expenses payable or
paid to such service provider in respect to the billing period of such
service provider in which the Closing occurs (the “Current Billing Period”),
shall be prorated on a per diem basis based upon the number of days in the
Current Billing Period prior to the Closing and the number of days in the
Current Billing Period from and after the Closing, and assuming that all
charges are incurred uniformly during the Current Billing Period. If actual
bills for the Current Billing Period are unavailable as of the Closing, then
such proration shall be made on an estimated basis based upon the most
recently issued bills, subject to readjustment upon receipt of actual bills.

(e) Security Deposits; Prepaid Rents. Prepaid rentals and other
tenant charges and security deposits (including any portion thereof which
may be designated as prepaid rent) under Tenant Leases, if and to the extent
that such deposits are in Seller’s actual possession or control and have not
been otherwise applied by Seller to any obligations of any Tenants under the
Tenant Leases, shall be credited against the Purchase Price, and upon the
Closing, Buyer shall assume full responsibility for all security deposits to
be refunded to the Tenants under the Tenant Leases (to the extent the same
are required to be refunded by the terms of such Tenant Leases or
applicable). In the event that any security deposits are in the form of
letters of credit or other financial instruments (the “Non-Cash Security
Deposits”), Seller will cooperate with Buyer to have Buyer named as
beneficiary under the Non-Cash Security Deposits; and Buyer shall receive a
credit at Closing in the amount of any letter of credit transfer fees which
are not required to be paid by tenants under the terms of their Leases.
Buyer will not receive a credit against the Purchase Price for such security
deposits. Seller will cause each original letter of credit and all
necessary original transfer documentation to be placed into Escrow so that
Buyer is named as Beneficiary thereunder effective as of Closing, and the
original letter of credit in Buyer’s name is delivered to Buyer immediately
following Closing, or if for any reason such timing is not possible, Seller
will cooperate with Buyer and place into Escrow such documentation as may be
necessary to cause any such letter of credit to be issued in Buyer’s name
immediately following Closing.

(f) Leasing Costs. Seller shall receive a credit at the Closing for
all leasing costs, including tenant improvement costs and allowances, and
its pro-rata leasing commissions, previously paid by Seller in connection
with any Lease or modification to an existing Lease which was entered into
after the Effective Date and which is approved or deemed approved by Buyer
pursuant to this Agreement, which approval included approval of the tenant
improvement costs. The Seller’s pro-rata share shall be equal to a fraction
which has as its numerator the number of months left in the base term of the
Lease after the Closing and which has as its denominator the number of
months in the base term of the Lease. Seller shall pay for all tenant
improvement allowances and leasing commissions and other leasing costs with
respect to the premises leased as of the Effective Date by the Tenants
pursuant to the Tenant Leases in effect as of the Effective Date, and will
grant to Buyer a credit toward the Purchase Price at Closing for any such
improvement allowances, free rent, leasing commissions or other leasing
costs which are unpaid as of the Closing or apply to periods after the
Closing, but only if and to the extent such leasing costs were not shown in
the property revenue proforma as delivered to Buyer prior to the Effective
Date. For purposes of clarification only, it is understood and agreed that
Buyer will receive a credit at closing for any tenant improvement costs (as
determined and agreed upon by Buyer and Seller), tenant improvement
allowances or leasing commissions attributable to Leases in effect as of the
Effective Date which remain unpaid or outstanding as of the date of Closing,
and, in connection with any such credits granted to Buyer at Closing, Seller
and Buyer shall agree upon the terms of Buyer’s assumption of the legal and
monetary responsibility for such work and/or obligations arising from and
after Closing.

(g) Percentage Rent. Any percentage rents due or paid under any of
the Leases (“Percentage Rent”) shall be prorated between Buyer and Seller
outside of Closing as of the Closing on a Lease-by-Lease basis, as follows;
(a) Seller shall be entitled to receive the portion of the Percentage Rent
under each Lease for the Lease Year in which Closing occurs, which portion
shall be the ratio of the number of days of said Lease Year in which Seller
was Landlord under the Lease to the total number of days in the Lease Year,
and (b) Buyer shall receive the balance of Percentage Rent paid under each
Lease for the Lease Year. As used herein, the term “Lease Year” means the
twelve (12) month period as to which annual Percentage Rent is owed under
each Lease. Upon receipt by either Buyer or Seller of any gross sales
reports (“Gross Sales Reports”) and any full or partial payment of
Percentage Rent from any tenant of the Property, the party receiving the
same shall provide to the other party a copy of the Gross Sales Report and a
check for the other party’s prorata share of the Percentage Rent within
thirty (30) days of the receipt thereof. In the event that the Tenant only
remits a partial payment, then the amount to be remitted to the other party
shall be its prorata share of the partial payment. Nothing contained herein
shall be deemed or construed to require either Buyer to Seller to pay to the
other party its prorata share of the Percentage Rent prior to receiving the
Percentage Rent from the Tenant, and the acceptance or negotiation of any
check for Percentage Rent by either party shall not be deemed a waiver of
that party’s right to contest the accuracy or amount of the Percentage Rent
paid by the Tenant.

(h) Loan Assumption Matters. Interest and any required principal
payments due in the month of Closing on the Loan shall be ratably prorated.
Seller shall receive a credit in the amount of any impounds or deposits with
Lender if the same are assigned to Buyer at Closing. Buyer shall receive a
credit for any amounts due and payable under the Loan Documents with respect
to periods prior to Closing to the extent such amounts remain unpaid as of
Closing.

	 	7.7.2	 	Calculation; Reproration. Prior to Closing the
parties shall jointly prepare an estimated closing statement which shall set
forth the costs payable under Sections 7.5 and 7.6 and the
prorations and credits provided for in Subsection 7.7.1 and elsewhere
in this Agreement. Any item which cannot be finally prorated because of the
unavailability of information shall be tentatively prorated on the basis of the
best data then available and adjusted when the information is available in
accordance with this subparagraph; provided, however, that there shall be no
reproration for taxes and assessments. The estimated closing statement as
adjusted as aforesaid and approved in writing by the parties shall be referred
to herein as the “Closing Statement”. If the prorations and credits made under
the Closing Statement shall prove to be incorrect or incomplete for any reason,
then either party shall be entitled to an adjustment to correct the same;
provided, however, that there shall be no reproration for taxes and
assessments; and further provided that any adjustment shall be made, if at all,
within sixty (60) days after the Closing (except with respect to CAM Charges,
in which case such adjustment shall be made within thirty (30) days after the
information necessary to perform such adjustment is available and in no event
later than April 2007 or such later date as may be reasonably agreed upon by
the parties in light of when the Closing occurs), and if a party fails to
request an adjustment to the Closing Statement by a written notice delivered to
the other party within the applicable period set forth above (such notice to
specify in reasonable detail the items within the Closing Statement that such
party desires to adjust and the reasons for such adjustment), then the
prorations and credits set forth in the Closing Statement shall be binding and
conclusive against such party.

	 	7.7.3	 	Items Not Prorated. Seller and Buyer agree that (a)
none of the insurance policies relating to the Property will be assigned to
Buyer and Buyer shall responsible for arranging for its own insurance as of the
Closing; and (b) utilities, including telephone, electricity, water and gas,
shall be read on the Closing and Buyer shall be responsible for all the
necessary actions needed to arrange for utilities to be transferred to the name
of Buyer on the Closing, including the posting of any required deposits and
Seller shall be entitled to recover and retain from the providers of such
utilities any refunds or overpayments to the extent applicable to the period
prior to the Closing, and any utility deposits which it or its predecessors may
have posted. Accordingly, there will be no prorations for insurance or
utilities. In the event a meter reading is unavailable for any particular
utility, such utility shall be prorated in the manner provided in
subparagraph (1)(d) above.

	 	7.7.4	 	Indemnification. Buyer and Seller shall each
indemnify, protect, defend and hold the other harmless from and against any
claim in any way arising from the matters for which the other receives a credit
or otherwise assumes responsibility pursuant to this Section.

	 	7.7.5	 	Survival. This Section 7.7 shall survive the
Closing, provided that all prorations shall be settled by April 2007 (or such
later date as may be agreed upon by the parties in light of when the Closing
occurs).

	 	7.8	 	Determination of Dates of Performance.

Promptly after delivery to Buyer of the Title Report, Escrow Holder shall prepare
and deliver to Buyer and Seller a schedule which shall state each of the following
dates:

	 	7.8.1	 	The date of Opening of Escrow pursuant to Section 6.1;

	 	7.8.2	 	The date of receipt of the Title Report by Buyer;

	 	7.8.3	 	The date by which title must be approved by Buyer pursuant to
Section 3.2;

	 	7.8.4	 	The date by which the Inspections must be approved by Buyer
pursuant to Subsection 5.1.1;

	 	7.8.5	 	The date by which the amounts described in Section 2
must be deposited by Buyer, for which determination Escrow Holder shall assume
satisfaction of the condition expressed in Section  2 on the last date
stated for its satisfaction; and

	 	7.8.6	 	The date of Closing pursuant to Section 6.2.

If any events which determine any of the aforesaid dates occur on a date other than
the date specified or assumed for its occurrence in this Agreement, Escrow Holder
shall promptly redetermine as appropriate each of the dates of performance in the
aforesaid schedule and notify Buyer and Seller of the dates of performance, as
redetermined.

8. Representations, Warranties, and Covenants.

	 	8.1	 	Representations of Seller. Seller hereby represents and warrants to
Buyer as of the date hereof and as of the Closing as follows:

	 	8.1.1	 	Seller is a limited partnership duly formed and validly
existing under the laws of the State of California. Subject to receipt of the
approval of the board of directors of G REIT, Inc., described in Section
10.2 of this Agreement, Seller has full power and authority to enter into
this Agreement, to perform this Agreement and to consummate the transactions
contemplated hereby. This Agreement is a legal, valid and binding obligation
of Seller, enforceable against Seller in accordance with its terms, subject to
the effect of applicable bankruptcy, insolvency, reorganization, arrangement,
moratorium or other similar laws affecting the rights of creditors generally.

	 	8.1.2	 	Seller is not a “foreign person” within the meaning of
Section 1445(f) of the Internal Revenue Code of 1986, as amended (the “Code”).

	 	8.1.3	 	To Seller’s knowledge, no actions, suits, or proceedings are
pending, or have been threatened by any organization, person, individual, or
governmental agency that concerns or affects the Property or Seller’s right to
perform its obligations hereunder.

	 	8.1.4	 	To Seller’s knowledge, Seller has received no notice of any
violations of law, municipal or county ordinances, or other legal requirements
with respect to the Property, including any legal requirements with respect to
the use, occupancy or construction of the Improvements.

	 	8.1.5	 	To Seller’s knowledge, attached hereto as Exhibit D is
a complete and accurate list of all Contracts, and neither Seller nor any
provider under any of the Contracts has asserted any breach or default
thereunder.

	 	8.1.6	 	To Seller’s knowledge, attached hereto as Exhibit E is
a complete and accurate list of all Leases and except as provided in
Exhibit E, no material breach or default exists under the Leases and
all security for the Leases remains in place as shown as Exhibit E.
Further, to Seller’s knowledge and except as provided in Exhibit H, no
leasing costs (leasing commissions, tenant improvement costs or allowances,
free rent or other concessions) remain outstanding with respect to the current
term of any of the existing Leases which will not be satisfied as of Closing.

	 	8.1.7	 	Seller has delivered to Buyer a true, correct and complete
copy of all Loan Documents, and all material correspondence, notices and
memoranda in Buyer’s possession relating to the Loan have been delivered or
otherwise made available to Buyer for review. Seller confirms that the primary
loan documents consist of the documents listed in Exhibit I attached
hereto and made a part hereof. The Loan Documents are in full force and effect
and no monetary breach or default exists with respect to any of the Loan
Documents (nor any event which with the giving of notice or passage of time, or
both, would constitute a monetary breach or default thereunder). Further,
Seller confirms that (i) it has received no written notice of a breach or
default by Seller under the Loan Documents, and (ii) it has no actual knowledge
of any breach or default by Lender under the Loan Documents, and (iii) Seller
is not aware of having committed an act or omitted to take an act that
constitutes a breach or default by Seller under the loan agreements, or with
the giving of notice or the passage of time or both would constitute a breach
or default by Seller under the loan agreements.

As used in this Agreement, the phrase “Seller’s knowledge” or similar phrase shall
mean the actual knowledge, without the duty of investigation, of Robert Munson,
asset manager of the Property and Alan Arch, regional manager for Seller. It shall
be a condition precedent to Buyer’s obligation to close that no representation or
warranty shall have changed prior to Closing in such a way that constitutes a
Material Adverse Change (hereafter defined). For purposes of this Agreement, a
“Material Adverse Change” is a change in the facts or circumstances underlying a
Seller representation which does not arise out of or result from the negligent or
wrongful act of Seller and which causes the value of the Property, as mutually
agreed upon by the parties (and if the parties cannot agree, as determined by a
mutually third party appraiser), to decrease by at least One Million Dollars
($1,000,000). If a Material Adverse Change occurs, Buyer shall be entitled, as its
sole remedy, to either (a) proceed with the acquisition without modification of the
Purchase Price, or (b) terminate this Agreement and recover the Deposit (including
the Nonrefundable Portion). Notwithstanding the foregoing, it is understood and
agreed that this provision relates to a change outside of Seller’s control. If it
is determined that Seller breached a representation or warranty when made, such
breach shall entitle Buyer to terminate this Agreement and recover the entire
Deposit (including the Nonrefundable Portion).

	 	8.2	 	Approval of Property; Limitations on Seller Representations and
Warranties.

	 	8.2.1	 	Except as may be specifically provided in Section 8.4
of this Agreement, Seller makes no representations or warranties as to the
truth, accuracy, completeness, methodology of preparation or otherwise
concerning any engineering or environmental reports, audits, the materials
prepared by the Seller, or any other materials, data or other information
whatsoever supplied to Buyer in connection with Buyer’s inspection of the
Property. It is the parties’ express understanding and agreement that such
materials are provided only for Buyer’s convenience in making its own
examination and determination prior to the expiration of the Inspection Period
as to whether it wishes to purchase the Property, and, in doing so, Buyer shall
rely exclusively on its own independent investigation and evaluation of every
aspect of the Property and not on any materials supplied by Seller. Except as
may be specifically provided elsewhere in this Agreement, Buyer expressly
disclaims any intent to rely on any such materials provided to it by Seller in
connection with its inspection and agrees that it shall rely solely on its own
independently developed or verified information. Except with respect to all
obligations in this Agreement (including, without limitation, Seller’s express
representations and warranties) that are expressly stated to survive Closing,
the indemnity provisions contained in the documents delivered in connection
with the closing of the transactions contemplated by this Agreement
(collectively, the “Surviving Obligations”), Buyer hereby releases Seller and
its agents, representatives, and employees from any and all claims, demands,
and causes of action, past, present, and future that Buyer may have relating to
(a) the condition of the Property at any time, before or after the Closing,
including without limitation, the presence of any hazardous materials, or
(b) any other matter pertaining to the Property, provided, however, in no event
shall the foregoing release extend to (a) any breach of Seller’s
representations or warranties set forth herein, (b) any breach by Seller of its
obligations under this Agreement, or (c) any third party claims arising out of
or resulting from events occurring prior to Closing to the extent covered by
Seller’s insurance. This release shall survive the Closing or the termination
of this Agreement.

	 	8.2.2	 	In the event of any breach by Seller of any of the preceding
representations or warranties, Buyer’s sole remedy (in the event Buyer becomes
aware of any such breach) shall be to elect in writing to terminate this
Agreement (in which event Buyer shall be entitled to the Deposit and recovery
of costs as set forth in Section 14.1), or waive such breach and
proceed with the Closing. In the event of any material breach by Seller of any
of such representations or warranties or any other material breach by Seller of
any other provision of this Agreement or any agreement delivered in connection
herewith discovered after Closing, Seller shall be liable only for direct and
actual damages suffered by Buyer on account of Seller’s breach, up to the
applicable limits described hereunder, and shall in no event be liable for
consequential or punitive damages. Any liability of Seller hereunder for
breach of any such representations or warranties shall be limited to (a) claims
in excess of an aggregate of Twenty-Five Thousand Dollars ($25,000.00), and
(b) a maximum aggregate cap of One Million Five Hundred Thousand Dollars
($1,500,000) (the “Recovery Cap”). Notice of such claim must be delivered to
Seller in writing within ten (10) months of the Closing Date. In no event
shall Seller or Buyer be liable for any indirect or consequential damages on
account of Seller’s or Buyer’s breach of any representation or warranty
contained in this Agreement. Additionally, notwithstanding the foregoing, if
Buyer actually and unequivocally becomes aware prior to the Closing that any
representation or warranty hereunder is untrue, or any covenant or condition to
Closing has not been fulfilled or satisfied (if not otherwise waived by Buyer),
and Buyer nonetheless proceeds to close on the purchase of the Property, then
Buyer shall be deemed to have irrevocably and absolutely waived, relinquished
and released all rights and claims against Seller for any damage or other loss
arising out of or resulting from such untrue representation or warranty or such
unfulfilled or unsatisfied covenant or condition. Seller’s representations and
warranties set forth in Section 8.1 shall survive the Closing for a
period of nine (9) months and the date which is ten (10) months following the
Effective Date may be referred to herein as the “Outside Claim Date”). Seller
covenants and agrees to do one of the following with respect to the Recovery
Cap through the Outside Claim Date: either (A) it will not wind up the affairs
of the Seller and will maintain in the accounts of Seller through the Outside
Claim Date available funds in and amount no less than the Recovery Cap, or (B)
if Seller wishes to wind up its affairs or distribute available funds in excess
of the Recovery Cap prior to the Outside Claim Date, Seller shall first escrow
funds in the amount of the Recovery Cap with an escrow holder and on terms and
conditions mutually and reasonably acceptable to Seller and Buyer until the
Outside Claim Date, or (C) Seller shall cause G REIT, Inc. to guaranty the
obligations of Seller hereunder in the event of a breach of a representation or
warranty of Seller hereunder, which Guaranty shall be in a form reasonably
acceptably to Buyer and shall include a covenant of the guarantor not wind up
its affairs until the Outside Claim Date . It is further agreed that if Buyer
timely (and in accordance with the terms hereof) files a claim for a breach by
Seller of its representations and warranties hereunder prior to the Outside
Claim Date, the Seller shall be obligated to provide the assurance referenced
in clause (A), (B) or (C) above in this Section 8.2.2, as applicable, until
such claim is fully settled.

	 	8.2.3	 	Approval of Property. The consummation of the
purchase and sale of the Property pursuant to this Agreement shall be deemed
Buyer’s acknowledgement that it has had an adequate opportunity to make such
legal, factual and other inspections, inquiries and investigations as it deems
necessary, desirable or appropriate with respect to the Property. Such
inspections, inquiries and investigations of Buyer shall be deemed to include,
but shall not be limited to, any leases and contracts pertaining to the
Property, the physical components of all portions of the Property, the physical
condition of the Property, such state of facts as an accurate survey,
environmental report and inspection would show, the present and future zoning
ordinance, ordinances, resolutions. Except with respect to Seller’s
representations and warranties set forth herein, Buyer shall not be entitled to
and shall not rely upon, Seller or Seller’s agents with regard to, and Seller
will not make any representation or warranty with respect to: (i) the quality,
nature, adequacy or physical condition of the Property including, but not
limited to, the structural elements, foundation, roof, appurtenances, access,
landscaping, parking facilities, or the electrical, mechanical, HVAC, plumbing,
sewage or utility systems, facilities, or appliances at the Property, if any;
(ii) the quality, nature, adequacy or physical condition of soils or the
existence of ground water at the Property; (iii) the existence, quality,
nature, adequacy or physical condition of any utilities serving the Property;
(iv) the development potential of the Property, its habitability,
merchantability, or the fitness, suitability, or adequacy of the Property for
any particular purpose; (v) the zoning or other legal status of the Property;
(vi) the Property or its operations’ compliance with any applicable codes,
laws, regulations, statutes, ordinances, covenants, conditions or restrictions
of any governmental or quasi-governmental entity or of any other person or
entity; (vii)  the quality of any labor or materials relating in any way to the
Property; or (viii) the condition of title to the Property or the nature,
status and extent of any right-of-way, lease, right of redemption, possession,
lien, encumbrance, license, reservation, covenant, condition, restriction, or
any other matter affecting the Property except as expressly set forth in this
Agreement. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, SELLER HAS NOT,
DOES NOT, AND WILL NOT MAKE ANY WARRANTIES OR REPRESENTATIONS WITH RESPECT TO
THE PROPERTY AND SELLER SPECIFICALLY DISCLAIMS ANY OTHER IMPLIED WARRANTIES OR
WARRANTIES ARISING BY OPERATION OF LAW, INCLUDING, BUT IN NO WAY LIMITED TO,
ANY WARRANTY OF CONDITION, MERCHANTABILITY, HABITABILITY, OR FITNESS FOR A
PARTICULAR PURPOSE OR USE. FURTHERMORE, SELLER HAS NOT, DOES NOT, AND WILL NOT
MAKE ANY REPRESENTATION OR WARRANTY WITH REGARD TO COMPLIANCE WITH ANY
ENVIRONMENTAL PROTECTION, POLLUTION, OR LAND USE LAWS, RULES, REGULATIONS,
ORDERS, OR REQUIREMENTS INCLUDING, BUT NOT LIMITED TO, THOSE PERTAINING TO THE
HANDLING, GENERATING, TREATING, STORING OR DISPOSING OF ANY HAZARDOUS WASTE OR
SUBSTANCE INCLUDING, WITHOUT LIMITATION, ASBESTOS, PCB AND RADON. BUYER
ACKNOWLEDGES THAT BUYER IS A SOPHISTICATED BUYER FAMILIAR WITH THIS TYPE OF
PROPERTY AND THAT, SUBJECT ONLY TO THE EXPRESS WARRANTIES SET FORTH IN THIS
AGREEMENT AND CLOSING DOCUMENTS, BUYER WILL BE ACQUIRING THE PROPERTY “AS IS
AND WHERE IS, WITH ALL FAULTS,” IN ITS PRESENT STATE AND CONDITION, SUBJECT
ONLY TO NORMAL WEAR AND TEAR AND BUYER SHALL ASSUME THE RISK THAT ADVERSE
MATTERS AND CONDITIONS MAY NOT HAVE BEEN REVEALED BY BUYER’S INSPECTIONS AND
INVESTIGATIONS. BUYER SHALL ALSO ACKNOWLEDGE AND AGREE THAT THERE ARE NO ORAL
AGREEMENTS, WARRANTIES OR REPRESENTATIONS, COLLATERAL TO OR AFFECTING THE
PROPERTY BY SELLER, ANY AGENT OF SELLER OR ANY THIRD PARTY. THE TERMS AND
CONDITIONS OF THIS PARAGRAPH SHALL SURVIVE THE CLOSING, AND NOT MERGE WITH THE
PROVISIONS OF ANY CLOSING DOCUMENTS. SELLER SHALL NOT BE LIABLE OR BOUND IN
ANY MANNER BY ANY ORAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION
PERTAINING TO THE PROPERTY FURNISHED BY ANY REAL ESTATE BROKER, AGENT,
EMPLOYEE, SERVANT OR OTHER PERSON, UNLESS THE SAME ARE SPECIFICALLY SET FORTH
OR REFERRED TO IN THIS AGREEMENT. EXCEPT WITH REGARD TO THE OBLIGATIONS
EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE REPRESENTATIONS AND WARRANTIES IN
SECTION 8.4, BUYER HEREBY RELEASES SELLER AND ITS AGENTS,
REPRESENTATIVES AND EMPLOYEES FROM ANY AND ALL LIABILITY RELATING TO THE
CONDITION OF THE PROPERTY BEFORE OR AFTER THE CLOSING AND ANY OTHER MATTER
RELATING TO THE PROPERTY, WHETHER KNOWN OR UNKNOWN AT THE TIME OF THE CLOSING.
PROVIDED, HOWEVER, IN NO EVENT SHALL THE FOREGOING RELEASE EXTEND TO (A) ANY
BREACH OF SELLER’S REPRESENTATIONS OR WARRANTIES SET FORTH HEREIN, (B) ANY
BREACH BY SELLER OF ITS OBLIGATIONS UNDER THIS AGREEMENT, OR (C) ANY THIRD
PARTY CLAIMS ARISING OUT OF OR RESULTING FROM EVENTS OCCURRING PRIOR TO CLOSING
TO THE EXTENT COVERED BY SELLER’S INSURANCE.

	 	8.2.4	 	Release. Except as expressly set forth in this
Agreement to the contrary and except for any claims arising under the express
representations, warranties or covenants of Seller under this Agreement or
under the indemnity provisions of any document delivered in connection with the
closing of the transactions contemplated by this Agreement, Buyer for itself
and its agents, affiliates, successors and assigns, hereby releases and forever
discharges Seller, and any party related to or affiliated with Seller and their
respective successors and assigns (the “Seller Related Parties”) from and
against any and all claims at law or equity which Buyer or any party related to
or affiliated with Buyer and their respective successors and assigns (each a
“Buyer Related Party”) whether known or unknown at the time of this agreement,
which Buyer or a Buyer Related Party has or may have in the future, arising
from or related to any matter or thing relating to or in connection with the
Property, including but not limited to, the documents and information referred
to in this Agreement, the leases and the tenants, the Loan, any construction
defects, errors or omissions in the design or construction and arising out of
the physical, environmental, economic or legal condition of the Property,
including, without limitation, any claim for indemnification or contribution
arising under the Comprehensive Environmental Response, Compensation, and
Liability Act (42 U.S.C. Section 9601, et. seq.) or any similar federal, state
or local statute, rule or ordinance relating to liability of property owners or
operators for environmental matters but excluding third-party claims for events
occurring prior to Closing which are covered by insurance carried by Seller.
For the foregoing purposes, Buyer hereby specifically waives the provisions of
Section 1542 of the California Civil Code and any similar law of any other
state, territory or jurisdiction. Section 1542 provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW
OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH
IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.

BUYER HEREBY SPECIFICALLY ACKNOWLEDGES THAT BUYER HAS CAREFULLY REVIEWED
THIS SUBSECTION AND DISCUSSED ITS IMPORT WITH LEGAL COUNSEL AND THAT THE
PROVISIONS OF THIS SUBSECTION ARE A MATERIAL PART OF THIS AGREEMENT.

	 	 	 
	
 
	 	BUYER:      /s/ RP     
	
 
	 	 
	8.3

	 	Covenants of Seller. Seller hereby covenants as follows:
	
 
	 	 

	8.3.1	 	At all times from the date hereof through the date of Closing,
Seller shall cause to be in force fire and extended coverage insurance upon the
Property, and public liability insurance with respect to damage or injury to
persons or property occurring on the Property in at least such amounts as are
maintained by Seller on the Effective Date;

	 	8.3.2	 	From the end of the Inspection Period through the date of
Closing, Seller will not enter into any new lease, or any modification,
amendment or renewal of an existing lease with respect to the Property, without
Buyer’s prior written consent, which may be granted or withheld in accordance
with the terms of this Section 8.3.2. Buyer shall have five (5)
business days following written notice of the proposed deal in which to approve
or disapprove of any new lease, amendment or modification which Seller wishes
to enter into prior to the Closing Date, provided that (a) Buyer will not
unreasonably withhold or condition its consent to a new lease, modification or
amendment entered into prior to the date which is three (3) business days prior
to the expiration of the Inspection Period, and (b) for the period commencing
three (3) business days prior to the expiration of the Inspection Period
through the Closing, Buyer will in act in good faith in considering all
proposed lease transactions and will not disapprove a proposed transaction
which is consistent with then existing market rates and concessions, but
subject to the foregoing, Buyer may grant or withhold its consent to a proposed
lease transaction in its sole discretion. Seller agrees to keep Buyer
reasonably informed of all prospective leasing activities. It is understood
and agreed that leasing costs for all new leases and modifications or
amendments of existing leases shall be prorated in accordance with the terms of
Section 7.7.1(f). It is further understood and agreed that Buyer’s
failure to respond in writing to a proposed new lease, amendment or
modification within the five (5) business day time period referenced above
shall be deemed to be Buyer’s consent to the proposed lease transaction;

	 	8.3.3	 	From the Effective Date through the date of Closing, Seller
shall not sell, assign, or convey any right, title or interest whatsoever in or
to the Property, or create or permit to attach any lien, security interest,
easement, encumbrance, charge, or condition affecting the Property (other than
the Permitted Exceptions) without promptly discharging the same prior to
Closing;

	 	8.3.4	 	Seller shall not, without Buyer’s written approval, (a) amend
or waive any right under any Contract, or (b) enter into any agreement of any
type affecting the Property that is not terminable on 30 days notice;

	 	8.3.5	 	If Buyer provides Seller with subordination, nondisturbance
and attornment agreements (“SNDAs”) prepared and completed by the Buyer, Seller
shall deliver such SNDAs to each tenant.

	 	8.3.6	 	Seller shall perform all of its obligations under the Loan
Documents through the Closing, and shall deliver to Buyer copies of any and all
notices, statements or other correspondence delivered or received by Buyer
relating to the Loan Documents prior to Closing.

9. Representations and Warranties of Buyer. Buyer hereby represents and warrants to Seller
as follows:

	 	9.1	 	Buyer is a limited liability company duly organized and validly existing under
the laws of the State of Delaware. Buyer has full power and authority to enter into
this Agreement, to perform this Agreement and to consummate the transactions
contemplated hereby. This Agreement is a legal, valid and binding obligation of Buyer,
enforceable against Buyer in accordance with its terms, subject to the effect of
applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other
similar laws affecting the rights of creditors generally.

10. Conditions Precedent to Closing.

	 	10.1	 	The obligations of Buyer pursuant to this Agreement shall, at the option of
Buyer, be subject to the following conditions precedent:

	 	10.1.1	 	No representation or warranty shall have changed prior to Closing in such a
way that constitutes a Material Adverse Change and no breach by Seller of its
representations and warranties hereunder shall have occurred. Seller shall not
have on or prior to Closing, failed to meet, comply with or perform in any
material respect any conditions or agreements on Seller’s part as required by
the terms of this Agreement.

	 	10.1.2	 	There shall be no material adverse change in the matters reflected in the
Title Report, there shall not exist any material adverse encumbrance or title
defect affecting the Property except for the Permitted Exceptions or matters to
be satisfied at Closing, and Title Company shall be unconditionally committed
to issue at Closing a Title Policy insuring fee simple title vested in Buyer,
with coverage in the full amount of the Purchase Price and showing only those
exceptions to title which are Permitted Exceptions, it being acknowledged that
due to the amount of coverage required hereunder, Buyer may elect by written
notice delivered to Seller and Title Company prior to Closing, to require
co-insurance with up to two (2) additional title companies having comparable
financial strength to Title Company provided that any such co-insurance
arrangement shall not delay Closing or result in any additional cost to Seller.

	 	10.1.3	 	Seller shall have obtained and delivered to Buyer estoppel certificates, in
accordance with their respective Leases, from tenants representing seventy-five
percent (75%) of the square feet which are leased and occupied by tenants as of
the Effective Date, which shall include, at a minimum, estoppels from the
following “Major Tenants”: Hilton Long Beach, US Customs, REMC Enterprises,
Apriso, FBI, Medical Data Exchange, ACS Education Services and Ford Walker
Haggerty, and each estoppel certificate shall be executed and delivered by the
certifying tenant (collectively, the “Estoppel Delivery Condition”). Unless
otherwise required by the terms of any specific Leases, Seller will request
estoppels from all tenants of the Property in the form attached hereto as
Exhibit G. Seller will request the estoppels no earlier than sixty
(60) days after the Effective Date, provided, however, no estoppel will be
issued as of a date more than forty-five (45) days prior to Closing. Prior to
delivering the estoppels to tenants for review and execution, Seller shall
deliver drafts of the estoppels to Buyer for review and approval, and Buyer
will have two (2) business days to review the draft estoppels and notify Seller
of any requested corrections or additions thereto. Estoppel certificates shall
be deemed to satisfy this condition precedent unless they disclose material
adverse matters. Buyer shall notify Seller within three (3) business days of
receipt of a copy of the executed estoppel certificate of its approval or
disapproval and the basis of such disapproval, if disapproved and Seller shall
use commercially reasonable efforts to satisfy the Estoppel Delivery Condition
by the date which is three (3) business days prior to Closing. If Buyer
disapproves of an estoppel certificate because of a material, adverse matter
disclosed therein, and Seller is unable to obtain a reasonably acceptable
estoppel certificate prior to the Closing, then, at Buyer’s election, this
Agreement shall terminate, Buyer shall be entitled to a refund of the Deposit
(including the Initial Deposit and the Additional Deposit), and neither party
shall have any further obligation to the other except Buyer’s indemnification
obligations under Section 5. If Buyer has not received the required
amount of estoppels to satisfy the Estoppel Delivery Condition by the date
which is three (3) business days prior to Closing, then Seller or Buyer shall
be permitted to extend the Closing Date until five (5) days after the receipt
of all such estoppels, to permit Seller to secure such estoppels to meet the
Estoppel Delivery Condition, but in no event shall Seller extend Closing by
more than thirty (30) days.

	 	10.1.4	 	Lender shall have consented to the Loan Assumption as referenced in
Section 2.2 and the Lender shall have taken such action as shall be
necessary for the Lender to close the Loan Assumption in accordance with the
terms of a loan assumption agreement executed by Buyer and Lender (or Buyer’s
assignee), which Loan Assumption shall include as one of its terms a release of
Seller and any guarantor of Seller from all liability (except for matters which
arose during Seller’s period of ownership). It is understood and agreed that
this condition shall be deemed to be satisfied if the non-commercially
reasonable actions or inactions of Buyer caused the Lender’s failure to take
actions necessary to close the Loan Assumption.

	 	10.2	 	The obligations of Seller pursuant to this Agreement shall, at the option of
Seller, be subject to the following conditions precedent:

	 	10.2.1	 	The Board of G REIT, Inc. (the “Board”) shall have approved the sale of the
Property pursuant to this Agreement. This condition precedent shall be subject
to the following terms and conditions:

(a) Seller shall use commercially reasonable efforts to obtain the necessary
Board approval for Buyer’s acquisition of the Property pursuant hereto by no
later than three (3) business days following the Effective Date, and shall
keep Buyer informed regarding the timing of obtaining the necessary Board
approval.

(b) If Board approval is not granted by the date which is three (3) business
days following the Effective Date, Seller shall notify Buyer immediately,
and by no later that one (1) business day following the expiration of such
3-business day period.

	 	10.2.2	 	Lender shall have consented to the Loan Assumption as referenced in
Section 2.2, which Loan Assumption shall include as one of its terms a
release of Seller and any guarantor of Seller from all liability (except for
matters which arose during Seller’s period of ownership).

If any such condition is not fully satisfied by closing, the party in whose favor the
condition runs shall notify the other party and may terminate this Agreement by written
notice to the other party whereupon this Agreement may be canceled, upon return of the Due
Diligence Items the Deposit shall be paid to Buyer and, thereafter, neither Seller nor Buyer
shall have any continuing obligations hereunder.

11. Damage or Destruction Prior to Closing.

In the event that the Property should be damaged by any casualty prior to the Closing, then:

	 	11.1	 	If the cost of repairing damage to the Premises, as reasonably estimated by
Seller, is less than One Million Dollars ($1,000,000) and no Major Tenant is able to
terminate its Tenant Lease as a result of such casualty, and no tenant under a Tenant
Lease is able to abate its rent following Closing unless covered by Seller’s rental
interruption proceeds assigned to Buyer, the Closing shall proceed as scheduled and any
insurance proceeds shall be distributed to Buyer to the extent not expended by Seller
for restoration, and Buyer shall receive a credit for any applicable deductible; or

	 	11.2	 	If the cost of repairing damage to the Premises, as reasonably estimated by
Seller, is greater than One Million Dollars ($1,000,000), or if such casualty entitles
any Major Tenant to terminate its lease and any abated rent granted to a tenant under a
Tenant Lease is not covered by rental interruption proceeds which can be assigned to
Buyer, then Buyer may elect to terminate this Agreement, in which case upon return of
the Due Diligence Items the Deposit shall be returned to Buyer and neither party shall
have any further obligation to the other except for Buyer’s indemnification obligations
under Section 5.

12. Eminent Domain.

	 	12.1	 	If, before the Closing, proceedings are commenced for the taking by exercise of
the power of eminent domain of all or a material part of the Property which, as
reasonably determined by Buyer, would render the Property unacceptable to Buyer or
unsuitable for Buyer’s intended use, Buyer shall have the right, by giving notice to
Seller within thirty (30) days after Seller gives notice of the commencement of such
proceedings to Buyer, to terminate this Agreement, in which event this Agreement shall
terminate, the Deposit shall be returned to Buyer and neither party shall have any
further obligation to the other except for Buyer’s indemnification under
Section 5. If, before the Closing, proceedings are commenced for the taking by
exercise of the power of eminent domain of less than such a material part of the
Property, or if Buyer has the right to terminate this Agreement pursuant to the
preceding sentence but Buyer does not exercise such right, then this Agreement shall
remain in full force and effect and, at the Closing, the condemnation award (or, if not
therefore received, the right to receive such portion of the award) payable on account
of the taking shall be transferred in the same manner as title to the Property is
conveyed. Seller shall give notice to Buyer within three (3) business days after
Seller’s receiving notice of the commencement of any proceedings for the taking by
exercise of the power of eminent domain of all or any part of the Property.

13. Notices.

	 	13.1	 	All notices, demands, or other communications of any type given by any party
hereunder, whether required by this Agreement or in any way related to the transaction
contracted for herein, shall be void and of no effect unless given in accordance with
the provisions of this Section. All notices shall be in writing and delivered to the
person to whom the notice is directed, either in person, by United States Mail, as a
registered or certified item, return receipt requested by telecopy or by Federal
Express. Notices delivered by mail shall be deemed given when received. Notices by
telecopy or Federal Express shall be deemed received on the business day following
transmission. Notices shall be given to the following addresses:

	 	 	 	 	 
	Seller:
	 	Theresa Hutton

	 
	 	 	 	 
	Triple Net Properties, LLC
1551 N. Tustin Ave. #200
Santa Ana, CA 92705
(714) 667-8252
(714) 667-6860 fax
With Required Copy to:
	 	Scott Peters

	G REIT, Inc.
1551 N. Tustin Avenue, #200
Santa Ana, CA 92705
(714) 667-8252
(714) 667-6860 fax
And to:
	 	Joseph J. McQuade, Esq.

	 	 	 	 	 
	Hirschler Fleischer
	 	 	 	 
	The Federal Reserve Bank Building, 16th Floor

	701 East Byrd Street
Richmond, VA 23219
(804) 771-9502
(804) 644-0957 fax
Buyer:
	 	Robert F. Phipps

	Legacy Partners
4000 E Third Avenue, Suite 600
Foster City, CA 94404
(650) 571-2200
Fax: (866) 947-2385
With Required Copy to:
	 	Scott C. Word

	Legacy Partners
100 Oceangate
Suite 645
Long Beach, CA 90802
Fax: 562.901.9621
And to:
	 	Pamela L. Westhoff

DLA Piper Rudnick Gray Cary US LLP

550 South Hope Street

Suite 2300

Los Angeles, CA  90071

213.330.7747

Fax: 213.330.7547

14. Remedies.

	 	14.1	 	Defaults by Seller. If there is any default by Seller under this
Agreement, following notice to Seller and the expiration of a 7-day cure period during
which period Seller may cure the default, Buyer may, as it sole option elect to either
(a) declare this Agreement terminated, in which case the entire Deposit (including the
entire Nonrefundable Portion) shall be returned to Buyer and Buyer may seek damages
only for its actual reasonable, documented out of pocket expenses incurred in
connection with this transaction, not to exceed One Hundred Twenty-Five Thousand
Dollars ($125,000); or (b) treat this Agreement as being in full force and effect and
bring an action against Seller for specific performance.

	 	14.2	 	Defaults by Buyer. If there is any default by Buyer under this
Agreement, following notice to Buyer and the expiration of a 7-day cure period, during
which period Buyer may cure the default, then Seller may, as its sole remedy, declare
this Agreement terminated, in which case the Deposit shall be paid to Seller as
liquidated damages and each party shall thereupon be relieved of all further
obligations and liabilities, except any which survive termination. Notwithstanding the
foregoing, the Buyer’s right to cure shall not be applicable to a failure to close and
the Closing shall in no event be extended pursuant to this Section. In the event this
Agreement is terminated due to the default of Buyer hereunder, Buyer shall deliver to
Seller, at no cost to Seller, the Due Diligence Items and copies of final Buyer’s
Reports.

15. Assignment.

Buyer may assign its rights under this Agreement to an entity in which Buyer participates in
the equity and management, provided, however, that Buyer shall have no such
right unless a written assignment is delivered to Seller no later than seven (7) business
days before Closing; and further provided that no such assignment shall
relieve Buyer of its obligations hereunder.

16. Interpretation and Applicable Law.

This Agreement shall be construed and interpreted in accordance with the laws of the state
in which the Property is located (the “State”). Where required for proper interpretation,
words in the singular shall include the plural; the masculine gender shall include the
neuter and the feminine, and vice versa. The terms “successors and assigns” shall include
the heirs, administrators, executors, successors, and assigns, as applicable, of any party
hereto.

17. Amendment.

This Agreement may not be modified or amended, except by an agreement in writing signed by
the parties. The parties may waive any of the conditions contained herein or any of the
obligations of the other party hereunder, but any such waiver shall be effective only if in
writing and signed by the party waiving such conditions and obligations.

18. Attorney’s Fees.

In the event it becomes necessary for either party to file a suit or arbitration to enforce
this Agreement or any provisions contained herein, the prevailing party shall be entitled to
recover, in addition to all other remedies or damages, reasonable attorneys’ fees and costs
of court incurred in such suit or arbitration.

19. Entire Agreement; Survival.

This Agreement (and the items to be furnished in accordance herewith) constitutes the entire
agreement between the parties pertaining to the subject matter hereof and supersedes all
prior and contemporaneous agreements and understandings of the parties in connection
therewith. No representation, warranty, covenant, agreement, or condition not expressed in
this Agreement shall be binding upon the parties hereto nor affect or be effective to
interpret, change, or restrict the provisions of this Agreement. All of the obligations of
the parties hereunder and all other provisions of this Agreement shall be deemed to have
merged into the Deed and shall be extinguished at Closing or the earlier termination of this
Agreement, except as expressly provided herein.

20. Multiple Originals Only; Counterparts.

Numerous agreements may be executed by the parties hereto. Each such executed copy shall
have the full force and effect of an original executed instrument. This Agreement may be
executed in any number of counterparts, all of which when taken together shall constitute
the entire agreement of the parties.

21. Acceptance.

Time is of the essence of this Agreement. The date of execution of this Agreement by Seller
shall be the date of execution of this Agreement. If the final date of any period falls
upon a Saturday, Sunday, or legal holiday under Federal law, the laws of the State or the
laws of the State of California, then in such event the expiration date of such period shall
be extended to the next day which is not a Saturday, Sunday, or legal holiday under Federal
law, the laws of the State or the State of California.

22. Real Estate Commission.

Seller and Buyer each represent and warrant to the other that neither Seller nor Buyer has
contracted or entered into any agreement with any real estate broker, agent, finder or any
other party in connection with this transaction, and that neither party has taken any action
which would result in any real estate broker’s, finder’s or other fees or commissions being
due and payable to any party with respect to the transaction contemplated hereby, except
that Seller has contracted with Triple Net Properties Realty, Inc. and Jones Lang LaSalle,
as its brokers and will pay any commission due to said brokers. Each party hereby
indemnifies and agrees to hold the other party harmless from any loss, liability, damage,
cost, or expense (including reasonable attorneys’ fees) resulting to the other party by
reason of a breach of the representation and warranty made by such party in this paragraph.

23. Exchange.

Either party may structure the purchase and sale of the Property as a like kind exchange
pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended, and in connection
therewith, shall have the right to assign its interest in this Agreement to a qualified
exchange intermediary of its choosing to effect such exchange. The other party shall
cooperate with and shall execute such documents as may be necessary to effect such a like
kind exchange, including a customary assignment and/or notice of assignment, however, such
assignment and cooperation shall be at no cost or expense to the non-requesting party and
shall not otherwise affect the term of this Agreement.

24. Confidentiality.

Buyer agrees that, prior to the closing, all Property information received by Buyer shall be
kept confidential as provided in this paragraph. Without the prior written consent of
Seller, prior to the closing, the Property information shall not be disclosed by Buyer or
its representatives, in any manner whatsoever, in whole or in part, except (1) to Buyer’s
representatives and consultants who need to know the Property information for the purpose of
evaluating the Property and who are informed by the Buyer of the confidential nature of the
Property information; (2) as may be necessary for Buyer or Buyer’s representatives and
consultants to comply with applicable laws, including, without limitation, governmental,
regulatory, disclosure, tax and reporting requirements; to comply with other requirements
and requests of regulatory and supervisory authorities and self-regulatory organizations
having jurisdiction over Buyer or Buyer’s representatives; to comply with regulatory or
judicial processes; or to satisfy reporting procedures and inquiries of credit rating
agencies in accordance with customary practices of Buyer or its affiliates; (3) to
prospective tenants of the Property; and (4) to the Lender, prospective venturers, investors
and Lender participants in connection with the financing of the acquisition of the Property.

[SIGNATURES TO FOLLOW]

2

SIGNATURE PAGE FOR

One World Trade Center

	 	 	EXECUTED on this the 17th day of _August, 2006

	 	 	SELLER:

GREIT-ONE WORLD TRADE CENTER, L.P.,

a California limited partnership

	 	 	 	 	 
	
 
	 	 	 	By:GREIT — One World Trade Center GP, LLC,

a California limited liability company

Its:General Partner
	 
	 	 	 	 
	
 
	 	 	 	By:G REIT, L.P.,

a Virginia limited partnership,

Its:sole member
	 
	 	 	 	 
	
 
	 	 	 	By:G REIT, Inc.,

a Maryland corporation,

Its:General Partner
	 
	 	 	 	 
	
 
	 	 	 	By:/s/Andrea R.Biller
	
 
	 	 	 	 
	
 
	 	 	 	Name:Andrea R. Biller
	
 
	 	 	 	 
	
 
	 	 	 	Title: Executive Vice President
	
 
	 	 	 	 
	 
	 	 	 	 
	EXECUTED on this the ____ day of _________, 2006.
	 	 
	 
	 	 	 	 
	BUYER:

	 	

	 	

	 
	 	 	 	 
	 
	 	 
	 
	 	 	 	 
	LEGACY PARTNERS REALTY FUND II, LLC,
	 	 
	 
	 	 	 	 
	a Delaware limited liability company
	 	 
	 
	 	 	 	 
	By:	 	Legacy Partners Investment Management Services, LLC

	 
	 	 	 	 
	Its:

	 	a Delaware limited liability company

Managing Member
	 	

	 
	 	 	 	 
	
 
	 	By:
	 	/s/ Robert F. Phipps
	
 
	 	 
	 	 
	
 
	 	Name:
	 	Robert F. Phipps
	
 
	 	 	 	 
	
 
	 	Title:
	 	Vice President
	
 
	 	 
	 	 
	 
	 	 	 	 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]