Document:

EXHIBIT 10.2

AGREEMENT
CONCERNING DEVELOPMENT RIGHTS

THIS AGREEMENT CONCERNING DEVELOPMENT RIGHTS (this “Agreement”) is dated
effective June 21, 2006, by and between BEHRINGER
HARVARD OPERATING PARTNERSHIP I LP, a Texas limited partnership (“BHOP”)
and BEHRINGER HARVARD HOLDINGS, LLC, a Delaware limited liability company (“BHH”).

RECITALS

A.            Harvard Property Trust, LLC, a Delaware limited liability
company (“HPT”), as “Purchaser”,
entered into that certain Purchase and Sale Agreement effective as of May 12,
2006 with DESTA ONE PARTNERSHIP, LTD., a Texas limited partnership, DESTA TWO
PARTNERSHIP, LTD., a Texas limited partnership, and DESTA FIVE PARTNERSHIP,
LTD., a Texas limited partnership, collectively referred to as “Seller,”
covering certain property commonly known as The Terrace and located in Austin,
Texas (as amended by that Amended and Restated First Amendment to Purchase and
Sale Agreement effective as of May 23, 2006, the “Purchase
Agreement”).

B.            Section 7.3.14 of the Purchase Agreement provides that
the Buyer and Seller will enter into a Development Agreement relating to
certain development rights for the remainder of The Terrace P.U.D. (“Development Rights”).

C.            The Development Rights
arising out of the Purchase Agreement were assigned to BHH pursuant to that
Assignment of Development Rights effective as of May 16, 2006.

D.            The
Development Rights are governed by a Development Option Agreement effective as
of June 21, 2006 between BHH, W&G Partnership, Ltd., Desta Three
Partnership, Ltd., and Desta Six Partnership, Ltd. (the “Development
Option Agreement”), which is incorporated into the Purchase
Agreement as Exhibit O. W&G Partnership, Ltd., Desta Three
Partnership, Ltd., and Desta Six Partnership, Ltd. are referred to in this
Agreement as the “Desta Entities.”

E.             BHH desires to grant BHOP certain
rights of first refusal relating to the Development Rights and BHOP desires to
accept certain rights relating to the Development Rights as described below.

NOW, THEREFORE, for and in consideration of the premises,
the mutual covenants and agreements contained herein, and other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:

AGREEMENT

1.             Recitals. The above recitals are confirmed by Behringer OP
and BHH as being true and correct and they are incorporated herein by
reference.

2.             Defined
Terms. All capitalized terms used and not defined herein shall
have the meanings ascribed to such terms in the Development Option Agreement. The
following additional terms shall have the respective meanings set forth below
for all purposes of this Agreement, and the definitions of such terms are
equally applicable both to the singular and plural forms thereof:

 

“Person” means an individual, corporation, association,
business trust, estate, trust, partnership, limited liability company or other
legal entity.

“Affiliate” means, with respect to any Person: (i) any
Person directly or indirectly owning, controlling or holding, with the power to
vote, ten percent (10%) or more of the outstanding voting securities of such
other Person; (ii) any Person ten percent (10%) or more of whose
outstanding voting securities are directly or indirectly owned, controlled or
held, with the power to vote, by such other Person; (iii) any Person
directly or indirectly controlling, controlled by or under common control with
such other Person; (iv) any executive officer, director, trustee or
general partner of such other Person; (v) any legal entity for which such
Person acts as an executive officer, director, trustee or general partner and (vi) any
fund whose general partner or managing member is controlled by BHH.

3.             Right of
First Refusal. BHH and BHOP agree that, subject to the terms of
this Agreement, BHOP shall have a right of refusal to exercise the rights of
BHH arising out of Article II of the Development Option Agreement.

4.             Terms of Right of First Refusal upon Offer Notice from Desta Entities.

(a)           BHH will notify BHOP
within one (1) business day following receipt of an Offer Notice given
pursuant to Article IIb of the Development Option Agreement.

(b)           Within ten (10) business
days following its receipt of such Offer Notice, BHOP shall notify BHH that
BHOP desires to participate in development of the parcel of Development Land
under the terms of the Offer Notice. In the event that BHOP gives notice of its
intent to participate in the development described in the Offer Notice, then
BHH shall assign its rights to invest in the development described in the Offer
Notice to BHOP.

(c)           Should BHOP elect
not to participate in the development of a parcel of Development Land or should
BHOP fail to give BHH notice of its intent to participate in such development
within ten (10) business days following receipt of the Offer Notice from
BHH, the right of first refusal will terminate as to the entirety of the
Development Land and BHH  shall be free (i) to
participate in the development of the Development Land in accordance with the
Development Option Agreement or (ii) to assign its rights to a BHH
Affiliate.

(d)           Should BHH, or its
assignee, exercise a development option pursuant to an Offer Notice during the
term of this Agreement, BHH shall pay to BHOP a one-time sum of $25,000.

5.             Terms of Right of First Refusal upon Offer Notice from BHH.

(a)           In the event BHH
determines that it desires to develop any parcel of the Development Land, BHH
shall advise BHOP of its proposed project by presenting to BHOP the Harvard
Offer Notice described in Article IIf of the Development Option Agreement.

(b)           Within ten (10) business
days following its receipt of such Harvard Offer Notice, BHOP shall notify BHH
that BHOP desires to participate in development of the parcel of Development
Land under the terms of the Harvard Offer Notice. In the event that BHOP gives 

 2
 

 

notice of its intent to participate in the
development described in the Offer Notice, then BHH shall assign its rights to
invest in the development described in the Harvard Offer Notice to BHOP.

(c)           Should
BHOP elect not to participate in the development of a parcel of Development
Land or should BHOP fail to give BHH notice of its intent to participate in
such development within ten (10) business days following receipt of the
Harvard Offer Notice, the right of first refusal will terminate as to the entirety
of the Development Land and BHH shall be free (i) to participate in the
development of the Development Land in accordance with the Development Option
Agreement or (ii) to assign its rights to a BHH Affiliate.

(d)           Should
BHH, or its assignee, proceed with the development of a portion of the
Development Land pursuant to a Harvard Offer Notice during the term of this
Agreement, BHH shall pay to BHOP a one-time sum of $25,000.

6.             Term. This Agreement and the rights and obligations of the
parties hereunder shall terminate and expire on the earlier to occur of (i) termination
pursuant to section 4(c) or 5(c) hereof or (ii) termination of the Development Option
Agreement.

7.             Notices.
All notices and other communications hereunder shall be in writing and shall
be deemed to have been duly given if delivered personally, mailed by certified
mail (return receipt requested) or sent by overnight delivery service, cable,
telegram, facsimile transmission or telex to the parties at the address set
forth under the applicable party’s signature hereto (or at such other addresses
as shall be specified by the parties by like notice). Notice so given shall be
deemed (a) in the case of notice so given by mail, conclusively to have
been delivered on the fourth calendar day after posting, in the case of notice
so given by overnight delivery service, on the date of actual delivery and, in
the case of notice so given by cable, telegram, facsimile transmission, telex
or personal delivery, on the date of actual transmission (with confirmation of
receipt in the case of facsimile delivery) or, as the case may be, personal
delivery.

8.             Governing
Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas without resort to or
consideration of its principles of the conflict of laws.

9.             Captions.
The captions, headings and arrangements used in this Agreement are for
convenience only and do not in any way affect, limit, amplify or modify the
terms and provisions hereof.

10.           Successors and Assigns.
This Agreement shall be binding upon and inure to the benefit of each party
hereto and his, her or its respective heirs, personal representatives and
permitted assigns.

11.           Severability. Should any Section or
any part of a Section within this Agreement be rendered void, invalid or
unenforceable by any court of law for any reason, such invalidity or
unenforceability shall not void or render invalid or unenforceable any other Section or
part of a Section in this Agreement and such invalid term, clause or provision
shall be deemed to have been deleted from this Agreement. The parties hereto
agree, however, to use all reasonable efforts to agree upon an amendment to
this Agreement if a substantive provision is so affected to give effect to the
intention of the parties as expressed herein to the maximum extent possible.

 3
 

 

12.           Amendments. Any
provision of this Agreement may be altered or amended only by the written
agreement of the parties hereto. Any such alteration or amendment shall be
binding upon all parties to this Agreement.

13.           Multiple Counterparts.
This Agreement may be executed in any number of identical counterparts,
each of which, for all purposes, shall be deemed an original, and all of which
shall constitute, collectively, one Agreement; but in making proof of this
Agreement, it shall not be necessary to produce or account for more than one
such counterpart. It is not necessary that each party hereto execute the same
counterpart, so long as identical counterparts are executed by the each party
hereto.

14.           Entire Agreement.
This Agreement constitutes the entire agreement of the parties hereto, and
supersedes and replaces any prior agreements, regarding the subject matter
hereof.

[The
next page is the signature page]

 4
 

 

IN WITNESS
WHEREOF, the parties hereto have set their hands to be effective as of the date
first set forth above.

	
  

  	
   

  	
  BHOP:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  BEHRINGER HARVARD
  OPERATING PARTNERSHIP I LP,

  
	
   

  	
   

  	
  a Texas limited
  partnership

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
  By:

  	
  Behringer
  Harvard REIT I, Inc.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  a Maryland
  corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Gerald J. Reihsen, III

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Gerald J.
  Reihsen, III,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Executive Vice
  President — Corporate

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Development &
  Legal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Notice Address:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  15601 Dallas Parkway, Suite 600

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Addison, Texas 
  75001

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Attention: 
  Gerald J. Reihsen, III

  

 

	
  

  	
   

  	
  BHH:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BEHRINGER HARVARD HOLDINGS, LLC,

  
	
   

  	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Gerald J. Reihsen, III

  
	
   

  	
   

  	
   

  	
   

  	
  Gerald J.
  Reihsen, III

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice
  President — Corporate Development & Legal

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Notice Address:

  
	
   

  	
   

  	
   

  	
   

  	
  15601 Dallas Parkway, Suite 600

  
	
   

  	
   

  	
   

  	
   

  	
  Addison, Texas 
  75001

  
	
   

  	
   

  	
   

  	
   

  	
  Attention: 
  Gerald J. Reihsen, III

  
										

 

 5EXHIBIT 10.3

PURCHASE
AND SALE AGREEMENT

by and between

DESTA
ONE PARTNERSHIP, LTD, a Texas limited partnership;

DESTA TWO PARTNERSHIP, LTD, a Texas limited partnership; and

DESTA FIVE PARTNERSHIP, LTD, a Texas limited partnership;

and

HARVARD
PROPERTY TRUST, LLC

Effective
Date:  May      ,
2006

 

 

TABLE OF CONTENTS

	
  ARTICLE 1 - CERTAIN DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2 - SALE AND PURCHASE OF PROPERTY

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3 - PURCHASE PRICE

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Earnest Money Deposit

  	
   

  	
  6

  
	
   

  	
   

  	
  3.1.1 Payment of Deposit.

  	
   

  	
  6

  
	
   

  	
   

  	
  3.1.2 Payment of Additional Deposit.

  	
   

  	
  6

  
	
   

  	
   

  	
  3.1.3 Applicable Terms; Failure to Make Deposit.

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.2

  	
   

  	
  Cash at Closing.

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4 - TITLE MATTERS

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Title Commitment and Survey.

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.2

  	
   

  	
  Title Defects.

  	
   

  	
  7

  
	
   

  	
   

  	
  4.2.1 Buyer’s Objections to Title; Seller’s
  Obligations and Rights.

  	
   

  	
  7

  
	
   

  	
   

  	
  4.2.2 Discharge of Title Exceptions.

  	
   

  	
  9

  
	
   

  	
   

  	
  4.2.3 No New Exceptions.

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.3

  	
   

  	
  Title Insurance.

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.4

  	
   

  	
  Survey.

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5 - BUYER’S DUE DILIGENCE/CONDITION OF THE
  PROPERTY

  	
   

  	
  10

  
	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  Buyer’s Due Diligence.

  	
   

  	
  10

  
	
   

  	
   

  	
  5.1.1 Property Information.

  	
   

  	
  10

  
	
   

  	
   

  	
  5.1.2 Access to Property.

  	
   

  	
  10

  
	
   

  	
   

  	
  5.1.3 City of Austin Contact.

  	
   

  	
  10

  
	
   

  	
   

  	
  5.1.4 Tenant Estoppel Certificates.

  	
   

  	
  10

  
	
   

  	
   

  	
  5.1.5 Delivery of Buyer’s Due Diligence Reports.

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.2

  	
   

  	
  As-Is, Where-Is, With All Faults Sale.

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.3

  	
   

  	
  Termination of Agreement During Due Diligence
  Period.

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.4

  	
   

  	
  Communication During Due Diligence Period.

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6 - ADJUSTMENTS AND PRORATIONS

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Lease Rentals and Other Revenues.

  	
   

  	
  12

  
	
   

  	
   

  	
  6.1.1 Rents.

  	
   

  	
  12

  
	
   

  	
   

  	
  6.1.2 Other Revenues.

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.2

  	
   

  	
  Lease Expenses.

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.3

  	
   

  	
  Real Estate and Personal Property Taxes.

  	
   

  	
  14

  
	
   

  	
   

  	
  6.3.1 Proration of Ad Valorem Taxes.

  	
   

  	
  14

  
	
   

  	
   

  	
  6.3.2 Insufficient Information.

  	
   

  	
  14

  

 

 ii
 

 

 

	
  

  	
   

  	
  6.3.3 Special Assessments.

  	
   

  	
  14

  
	
   

  	
   

  	
  6.3.4 Personal Property Taxes.

  	
   

  	
  14

  
	
   

  	
   

  	
  6.3.5 Utilities.

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.4

  	
   

  	
  Other Property Operating Expenses.

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.5

  	
   

  	
  Closing Costs.

  	
   

  	
  14

  
	
   

  	
   

  	
  6.5.1 Costs To Be Paid By Buyer.

  	
   

  	
  14

  
	
   

  	
   

  	
  6.5.2 Costs To Be Paid By Seller.

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.6

  	
   

  	
  Cash Security Deposits.

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.7

  	
   

  	
  Apportionment Credit.

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.8

  	
   

  	
  Seller Work to be Completed.

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.9

  	
   

  	
  Delayed Adjustment; Delivery of Operating and Other
  Statements.

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7 - CLOSING

  	
   

  	
  15

  
	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  Closing Date.

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.2

  	
   

  	
  Title Transfer and Payment of Purchase Price.

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.3

  	
   

  	
  Seller’s Closing Deliveries.

  	
   

  	
  16

  
	
   

  	
   

  	
  7.3.1 Deed.

  	
   

  	
  16

  
	
   

  	
   

  	
  7.3.2 Bill of Sale.

  	
   

  	
  16

  
	
   

  	
   

  	
  7.3.3 Assignment of Tenant Leases.

  	
   

  	
  16

  
	
   

  	
   

  	
  7.3.4 Assignment of Intangible Property.

  	
   

  	
  16

  
	
   

  	
   

  	
  7.3.5 Notice to Tenants.

  	
   

  	
  16

  
	
   

  	
   

  	
  7.3.6 Non-Foreign Status Affidavit.

  	
   

  	
  16

  
	
   

  	
   

  	
  7.3.7 Evidence of Authority.

  	
   

  	
  16

  
	
   

  	
   

  	
  7.3.8 Letters of Credit as Tenant Security Deposits.

  	
   

  	
  17

  
	
   

  	
   

  	
  7.3.9 Keys and Original Documents.

  	
   

  	
  17

  
	
   

  	
   

  	
  7.3.10 Memorandum of Agreement.

  	
   

  	
  17

  
	
   

  	
   

  	
  7.3.11 Estimated Closing Statement.

  	
   

  	
  17

  
	
   

  	
   

  	
  7.3.12 Updated Rent Roll.

  	
   

  	
  17

  
	
   

  	
   

  	
  7.3.13 Other Documents.

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.4

  	
   

  	
  Buyer’s Closing Deliveries.

  	
   

  	
  18

  
	
   

  	
   

  	
  7.4.1 Purchase Price.

  	
   

  	
  18

  
	
   

  	
   

  	
  7.4.2 Assignment of Leases.

  	
   

  	
  18

  
	
   

  	
   

  	
  7.4.3 Assignments of Intangible Property.

  	
   

  	
  18

  
	
   

  	
   

  	
  7.4.4 Memorandum of Agreement.

  	
   

  	
  18

  
	
   

  	
   

  	
  7.4.5 Evidence of Authority.

  	
   

  	
  18

  
	
   

  	
   

  	
  7.4.6 Estimated Closing Statement.

  	
   

  	
  18

  
	
   

  	
   

  	
  7.4.7 Other Documents.

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8 - CONDITIONS TO CLOSING

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Conditions to Seller’s Obligations.

  	
   

  	
  19

  
	
   

  	
   

  	
  8.1.1 Representations True.

  	
   

  	
  19

  
	
   

  	
   

  	
  8.1.2 Buyer’s Financial Condition.

  	
   

  	
  19

  

 

 iii
 

 

 

	
  

  	
   

  	
  8.1.3 Buyer’s Deliveries Complete.

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.2

  	
   

  	
  Conditions to Buyer’s Obligations.

  	
   

  	
  19

  
	
   

  	
   

  	
  8.2.1 Representations True.

  	
   

  	
  19

  
	
   

  	
   

  	
  8.2.2 Title Conditions Satisfied.

  	
   

  	
  19

  
	
   

  	
   

  	
  8.2.3 Seller’s Deliveries Complete.

  	
   

  	
  19

  
	
   

  	
   

  	
  8.2.4 Tenant Estoppels.

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.3

  	
   

  	
  Waiver of Failure of Conditions Precedent.

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.4

  	
   

  	
  Approvals not a Condition to Buyer’s Performance.

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9 - REPRESENTATIONS AND WARRANTIES

  	
   

  	
  20

  
	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  Buyer’s Representations.

  	
   

  	
  20

  
	
   

  	
   

  	
  9.1.1 Buyer’s Authorization.

  	
   

  	
  20

  
	
   

  	
   

  	
  9.1.2 Phoenix IV Sculpture.

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.2

  	
   

  	
  Seller’s Representations.

  	
   

  	
  21

  
	
   

  	
   

  	
  9.2.1 Seller’s Authorization.

  	
   

  	
  21

  
	
   

  	
   

  	
  9.2.2 Other Seller’s Representations and Warranties.

  	
   

  	
  21

  
	
   

  	
   

  	
  9.2.3 General Provisions Regarding Seller’s
  Warranties.

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10 - COVENANTS

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  Buyer’s Covenants.

  	
   

  	
  25

  
	
   

  	
   

  	
  10.1.1 Confidentiality.

  	
   

  	
  25

  
	
   

  	
   

  	
  10.1.2 Buyer’s Indemnity.

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.2

  	
   

  	
  Seller’s Covenants.

  	
   

  	
  26

  
	
   

  	
   

  	
  10.2.1 Service Contracts.

  	
   

  	
  26

  
	
   

  	
   

  	
  10.2.2 Maintenance of Property.

  	
   

  	
  26

  
	
   

  	
   

  	
  10.2.3 Disposition of Certain Settlements and
  Pending Claims.

  	
   

  	
  26

  
	
   

  	
   

  	
  10.2.4 Additional Covenants of Seller.

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.3

  	
   

  	
  Mutual Covenants.

  	
   

  	
  28

  
	
   

  	
   

  	
  10.3.1 Publicity.

  	
   

  	
  28

  
	
   

  	
   

  	
  10.3.2 Brokers.

  	
   

  	
  28

  
	
   

  	
   

  	
  10.3.3 Tax Protests, Tax Refunds and Credits.

  	
   

  	
  28

  
	
   

  	
   

  	
  10.3.4 Survival.

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11 - FAILURE OF CONDITIONS

  	
   

  	
  29

  
	
   

  	
   

  	
   

  
	
  11.1

  	
   

  	
  To Seller’s Obligation to Close.

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.2

  	
   

  	
  To Buyer’s Obligation to Close.

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 12 - CONDEMNATION/CASUALTY

  	
   

  	
  29

  
	
   

  	
   

  	
   

  
	
  12.1

  	
   

  	
  Right to Terminate.

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.2

  	
   

  	
  Allocation of Proceeds and Awards.

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.3

  	
   

  	
  Insurance.

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 iv
 

 

 

	
  12.4

  	
   

  	
  Waiver.

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 13 - ESCROW

  	
   

  	
  30

  
	
   

  	
   

  	
   

  
	
  13.1

  	
   

  	
  Deposit.

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.2

  	
   

  	
  Delivery.

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.3

  	
   

  	
  Failure of Closing.

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.4

  	
   

  	
  Stakeholder.

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.5

  	
   

  	
  Taxes.

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.6

  	
   

  	
  Execution By Escrow Agent.

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 14 - LEASE EXPENSES

  	
   

  	
  31

  
	
   

  	
   

  	
   

  
	
  14.1

  	
   

  	
  New Leases; Lease Modifications

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 15 - GENERAL PROVISIONS AND MISCELLANEOUS

  	
   

  	
  32

  
	
   

  	
   

  	
   

  
	
  15.1

  	
   

  	
  Buyer’s Assignment.

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.2

  	
   

  	
  Exchange.

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.3

  	
   

  	
  Survival/Merger.

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.4

  	
   

  	
  Integration; Waiver.

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.5

  	
   

  	
  Governing Law.

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.6

  	
   

  	
  Captions Not Binding; Exhibits.

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.7

  	
   

  	
  Binding Effect.

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.8

  	
   

  	
  Severability.

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.9

  	
   

  	
  Notices.

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.10

  	
   

  	
  Counterparts.

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.11

  	
   

  	
  No Recordation.

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.12

  	
   

  	
  Additional Agreements; Further Assurances.

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.13

  	
   

  	
  Construction.

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.14

  	
   

  	
  Time of The Essence.

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.15

  	
   

  	
  Facsimile Signatures.

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.16

  	
   

  	
  No Third Party Beneficiaries.

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.17

  	
   

  	
  Prevailing Party.

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.18 

  	
   

  	
  Exculpation.

  	
   

  	
  35

  

 

 v
 

 

LIST OF EXHIBITS

	
  A.

  	
   

  	
  Legal Description

  
	
   

  	
   

  	
   

  
	
  B.

  	
   

  	
  List of Contracts

  
	
   

  	
   

  	
   

  
	
  C.

  	
   

  	
  Property Information

  
	
   

  	
   

  	
   

  
	
  D.

  	
   

  	
  Rent Roll and List of Leases

  
	
   

  	
   

  	
   

  
	
  E.

  	
   

  	
  Form of Special Warranty Deed

  
	
   

  	
   

  	
   

  
	
  F.

  	
   

  	
  Form of Bill of Sale

  
	
   

  	
   

  	
   

  
	
  G.

  	
   

  	
  Form of Assignment of Tenant Leases

  
	
   

  	
   

  	
   

  
	
  H.

  	
   

  	
  Form of Assignment of Intangible Property

  
	
   

  	
   

  	
   

  
	
  I.

  	
   

  	
  Form of Notice to Tenants

  
	
   

  	
   

  	
   

  
	
  J.

  	
   

  	
  Form of Seller’s Non-Foreign
  Certificate

  
	
   

  	
   

  	
   

  
	
  K.

  	
   

  	
  List of Pending Litigation

  
	
   

  	
   

  	
   

  
	
  L.

  	
   

  	
  Memorandum of Agreement Regarding Phoenix IV
  sculpture

  
	
   

  	
   

  	
   

  
	
  M.

  	
   

  	
  Commission Agreements

  
	
   

  	
   

  	
   

  
	
  N.

  	
   

  	
  Management Agreement

  
	
   

  	
   

  	
   

  
	
  O.

  	
   

  	
  Development Agreement

  
	
   

  	
   

  	
   

  
	
  P.

  	
   

  	
  Promissory Note

  
	
   

  	
   

  	
   

  
	
  Q.

  	
   

  	
  Deed of Trust

  

 

 vi

 

 

PURCHASE AND SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT
(this “Agreement”) is made as of May      ,
2006, by and between the following named sellers:

Desta One Partnership, Ltd.,
a Texas limited partnership;

Desta Two Partnership, Ltd.,
a Texas limited partnership; and

Desta Five Partnership, Ltd.,
a Texas limited partnership;

(all of the above-named sellers hereinafter
collectively referred to as “Seller”), and Harvard
Property Trust, LLC, a Delaware limited partnership (“Buyer”).

W I T N E
S S E T H:

In consideration of the
mutual covenants and agreements set forth herein, the parties hereto do hereby
agree as follows:

ARTICLE 1 -
CERTAIN DEFINITIONS

As used herein, the
following terms shall have the following meanings:

“Business Day” shall mean
any day other than a Saturday, Sunday, or any federal or state of Texas holiday. If any period expires on a
day which is not a Business Day or any event or condition is required by the
terms of this Agreement to occur or be fulfilled on a day which is not a Business
Day, such period shall expire or such event or condition shall occur or be
fulfilled, as the case may be, on the next succeeding Business Day.

“Buyer’s Reports” shall
mean the results of any examinations, inspections, investigations, tests,
studies, analyses, appraisals, evaluations and/or investigations prepared by or
for or otherwise obtained by Buyer or Buyer’s Representatives in connection
with Buyer’s Due Diligence.

“Buyer’s Representatives”
shall mean Buyer, any direct or indirect owner of any beneficial interest in
Buyer, and any officers, directors, employees, agents, representatives and
attorneys of Buyer or any such direct or indirect owner of any beneficial
interest in Buyer.

“City” is
the City of Austin, Texas.

“Closing”
shall mean the closing of the Transaction.

“Closing Date” shall mean
June 22, 2006, as the same may be extended pursuant to the express terms
of this Agreement.

“Closing Tax Year”
shall mean the Tax Year in which the Closing Date occurs.

“Commission Agreements”
shall mean the agreements listed on Exhibit M
attached hereto.

 1
 

 

“Confidential Materials”
shall mean any books, computer software, records, reports, documents or files
(whether in a printed or electronic format) that consist of or contain any of
the following:  appraisals; strategic
plans for the Property; internal analyses; information regarding the marketing
of the Property for sale; submissions relating to obtaining internal
authorization for the sale of the Property by Seller or any direct or indirect
owner of any beneficial interest in Seller; attorney work product; attorney-client
privileged documents; internal correspondence of Seller, any direct or indirect
owner of any beneficial interest in Seller, or any of their respective
affiliates and correspondence between or among such parties; or other
information in the possession or control of Seller, Seller’s property manager
or any direct or indirect owner of any beneficial interest in Seller which such
party deems proprietary or confidential.

“Contracts” shall mean all
currently effective service, supply, maintenance and utility agreements, and
all other currently effective contracts, subcontracts and agreements relating
to the Real Property and the Personal Property and to which Seller is a party
(including all contracts, subcontracts and agreements relating to the
construction of any unfinished tenant improvements), all of which are described
in Exhibit B attached hereto and
incorporated herein by this reference, which are assignable to Buyer without
the payment of any transfer fee or other consideration. Contracts shall not
include, for purposes of the Assignments of Intangible Property, contracts to
be terminated at the request of Buyer at Seller’s sole cost pursuant to this
Agreement or contracts entered into in violation of Section 10.2.1.

“Deposit” shall mean the
sum of Eight Million Two Hundred Thousand and No/100 Dollars ($8,200,000.00),
to the extent the same is deposited by Buyer in accordance with the terms of Subsection
3.1.1 hereof, together with any interest earned thereon. Deposit shall
further include the additional deposit and any interest earned thereon as
required to be made per Subsection 3.1.2 hereof.

“Documents” shall mean
the documents and instruments applicable to the Property or any portion thereof
that Seller or any of the other Seller Parties deliver or make available to
Buyer or Buyer’s Representatives prior to Closing or which are otherwise
obtained by Buyer or Buyer’s Representatives prior to Closing, including, but
not limited to, the Title Commitment, the Survey, the Title Documents, UCC
Searches, and the Property Information.

“Due Diligence” shall
mean examinations, inspections, investigations, tests, studies, analyses,
appraisals, evaluations and/or investigations with respect to the Property, the
Documents, and other information and documents regarding the Property,
including, without limitation, examination and review of title matters,
applicable land use and zoning Laws and other Laws applicable to the Property,
the physical condition of the Property, and the economic status of the
Property.

“Due Diligence Period”
shall mean the period commencing prior to the execution of this Agreement and
expiring at 5:00 p.m. on May 23,
2006.

“Effective Date”
shall mean the date confirmed by the Escrow Agent on the page following
the Buyer and Seller signatures to this Agreement.

 2
 

 

“Escrow Agent”
shall mean Partners Title Company, whose mailing address is 712 Main Street, Suite 2000E, Houston,
TX 77002-3223, Attention: Reno
Hartfiel, in its capacity as escrow agent.

“Estoppel Certificates”
shall mean the Tenant Estoppel Certificates executed by the Tenants as provided
by Seller pursuant to Section 5.1.4.

“Laws” shall mean all
municipal, county, state or federal statutes, codes, ordinances, laws, rules or
regulations.

“Leases” shall mean all
leases for tenants of the Real Property on the Closing Date (including, without
limitation, all New Leases).

“Liabilities” shall mean,
collectively, any and all problems, conditions, losses, costs, damages, claims,
liabilities, expenses, demands or obligations of any kind or nature whatsoever.

“Major Casualty/Condemnation”
shall mean:

(a)                                  with
respect to any condemnation or eminent domain proceedings that occurs after the
date hereof, the portion of the Real Property that is the subject of such
proceedings either (i) having a value in excess of One Million and No/100
Dollars ($1,000,000.00), or (ii) which, if taken, would materially and
adversely affect the operation of the improvements on any Real Property or,
with respect to unimproved portions of the Real Property, would materially and
adversely affect the future development of improvements thereon; and

(b)                                 with
respect to any casualty that occurs after the date hereof, either (i)  an
uninsured casualty exceeding One Hundred Thousand Dollars ($100,000), or (ii) the
portion of the Real Property that is damaged or destroyed has a cost of repair
that is in excess of One Million Dollars ($1,000,000.00).

“New Leases” shall mean,
collectively, any Lease executed between the Effective Date and the Closing
Date which has been approved by Buyer.

“Official Records” shall
be documents recorded in the Office of the County Recorder of Travis County,
Texas.

“Other Property Rights”
shall mean, collectively, Seller’s interest in and to all of the licenses,
permits, entitlements, and other written authorizations necessary for the use,
development, construction, operation or ownership of the Property to the extent
that the same are in effect as of the Closing Date.

“Owner’s Title Policy” shall
mean a TLTA Owner’s Form of title insurance policy in the form of the
Title Commitment, in the amount of the Purchase Price.

“Permitted Exceptions”
shall mean and include all of the following, subject to the
rights of Buyer to object to matters of title and survey pursuant to Article 4
hereof and the right of 

 3
 

 

Buyer to terminate this Agreement pursuant to Article 5
hereof:  (a) applicable zoning and
building ordinances and land use regulations, (b) non-monetary
liens, encumbrances, covenants, conditions, restrictions, easements and other
matters of record, except to the extent that the same are caused or created by
Seller in violation of the terms of Subsection 4.2.3, (c) such
exceptions to title as are approved of by Buyer and listed on Schedule B of the
Title Commitment, including the Title Company’s standard printed exceptions
(modified as indicated below), (d) such state of facts as disclosed in a
Survey and physical inspection of the Property as approved by Buyer, (e) any
exceptions caused by Buyer or any Buyer’s Representative, and (f) any
matters deemed to constitute additional Permitted Exceptions under Subsection 4.2.1
hereof. The standard printed exceptions must be modified as follows: (a) the
exception for restrictive covenants shall either be deleted or shall list
specific restrictions; (b) the exception for ad valorem taxes shall
reflect only taxes for the current year and subsequent years, and subsequent
assessments for prior years due to changes in land usage or ownership, and
shall be endorsed “not yet due and payable”; (c) there shall be no
exception for “visible and apparent easements,” for “public or private roads”
or the like; (d) there shall be no exception for “rights of parties in
possession,” although there may be an exception for Leases specifically
described in the Title Policy; and (e) any reference to submitting claims
under the Title Policy to arbitration shall be deleted.

“Personal Property” shall
mean, collectively, all tangible personal property owned by Seller that is
located on the Real Property (but specifically excluding Seller’s furniture,
computers, and personal property located in Suite 525 of Terrace VII, and
the deer feeder located at Terrace VII which is owned by Vinson &
Elkins) and all files of Seller relating to the Real Property or the
Leases.

“Property” shall mean,
collectively, (a) the Real Property, (b) the Personal Property, (c) Seller’s
interest as landlord in all Leases; (d) if and to only the extent the same
may be assigned or quitclaimed by Seller without any expense to Seller, the
Contracts, and (e) the Other Property Rights.

“Property Information”
shall have the meaning in Section 5.1.1.

“Purchase Price” shall
mean the sum of One Hundred Sixty Seven Million Dollars ($167,000,000).

“Real Property” shall mean
fee simple title to those certain parcels of real estate legally described in Exhibit A attached hereto and
incorporated herein by this reference, together with all buildings,
improvements and fixtures located thereon and all right, title and interest, if
any, that Seller may have in and to all rights, privileges and appurtenances
pertaining thereto.

“Reimbursable Lease Expenses”
shall mean tenant improvement costs and brokerage  fees approved by Buyer and paid or incurred
by Seller prior to Closing and arising out of or in connection with (a) any extensions, renewals or expansions under any
Lease exercised or granted between the Effective Date and the Closing Date, and (b) any New Lease.

“Remove” with respect to
any exception to title shall mean that Seller causes the Title Company to
remove or affirmatively insure over an exception to the Owner’s Title Policy
for the benefit of Buyer, without any additional cost to Buyer, whether such
removal or insurance is 

 4
 

 

made
available in consideration of payment, bonding, indemnity of Seller or
otherwise.

“Rent Roll” is the rent
roll attached hereto as Exhibit D,
which Rent Roll has been certified by Seller as true, correct and complete with
respect to the Leases affecting the Real Property as of the Effective Date.

“Rents” shall mean all
base rents, percentage rents, common area cost reimbursements, additional rent
and any tax and operating expense reimbursements and escalations and other sums
due from the tenants of the Property under the Leases.

“Required Removal Exceptions”
shall mean, collectively, liens and encumbrances to the extent (and only to the
extent) that the same (a) have not been caused by Buyer or any Buyer’s
Representatives, and (b) are either:

(i)                                     liens
evidencing monetary encumbrances, including, without limitation, all deeds of
trust, mechanics and materialman’s liens, judgment liens, and tax or assessment
liens (other than liens for non-delinquent general real estate taxes or
assessments) which shall be Removed by payment of liquidated amounts (“Monetary
Liens”);

(ii)                                  liens
or encumbrances (including, but not limited to, Monetary Liens) created by
Seller after the date of this Agreement in violation of Subsection 4.2.3;
or

(iii)                               any Schedule C
exceptions.

“Required Tenant Estoppels”
shall mean the tenant estoppels from tenants occupying, in the aggregate, no
less than eighty percent (80%) of the Terrace I, Terrace II, Terrace V and
Terrace VII Buildings and for all tenants which lease more than 5,000 square
feet of rentable area (except for Gjerset & Lorenz LLC, Bank of
America, and Communications Workers of America, which, if Seller is unable to
obtain, Seller shall provide a Seller’s estoppel) in the form attached to each
tenant’s lease.

“Seller Parties” shall
mean and include, collectively, (a) Seller; (b) its counsel; (c) Seller’s
Broker; (d) Seller’s property manager, (e) any direct or indirect
owner of any beneficial interest in Seller, (f) any officer, director,
employee, or agent of Seller, its counsel, Seller’s Broker, Seller’s property
manager or any direct or indirect owner of any beneficial interest in Seller;
and (g) any other entity or individual affiliated or related in any way to
any of the foregoing.

“Seller’s Warranties”
shall mean Seller’s representations and warranties set forth in Section 9.2
and the limited warranty of title set forth in the deed executed by Seller in
connection with Closing as the same may be deemed modified or waived by Buyer
pursuant to this Agreement.

“Survey” shall mean an
updated “as built” ALTA survey of the Property certified to Buyer to be
obtained as set forth in Article 4.

 5
 

 

“Tax Year” shall mean the
year period commencing on January 1 of each calendar year and ending on December 31
of each calendar year.

“Title Commitment” shall
mean that certain commitment to issue an extended coverage Owner’s Policy of Title
Insurance with respect to the Property, issued by the Title Company.

“Title Company” shall
mean Partners Title Company, Houston,
Texas, as agent for Lawyers Title Company.

“Title Documents” shall
mean all documents referred to on Schedules B and C of the Title
Commitment as exceptions to coverage.

“Title Objections” shall
mean any exceptions to title to which Buyer is entitled to and timely objects
in accordance with the terms of Subsection 4.2.1(a).

“Transaction”
shall mean the transaction contemplated by this Agreement.

“UCC Searches” shall mean
the searches of the Uniform Commercial Code records maintained by the Texas
Secretary of State to be delivered pursuant to Section 4.1.

ARTICLE 2 - SALE
AND PURCHASE OF PROPERTY

Seller agrees to sell,
transfer and assign to Buyer, and Buyer agrees to purchase, accept and assume
from Seller, subject to the terms and conditions set forth in this Agreement
and the Exhibits attached hereto, all of Seller’s right, title and interest in
and to the Property.

ARTICLE 3 -
PURCHASE PRICE

In consideration of the sale of the Property to Buyer,
Buyer shall pay to Seller an amount equal to the Purchase Price, as prorated
and adjusted as set forth in Article 6, or as otherwise provided
under this Agreement.

3.1          Earnest Money Deposit.

3.1.1     Payment
of Deposit.  Within three (3) Business
Days after the Effective Date of this Agreement, Buyer shall pay Two Million
Dollars ($2,000,000) of the Deposit to Escrow Agent in immediately available
funds (by wire transfer, certified check or other immediately available funds).

3.1.2     Payment
of Additional Deposit.  Subject to Buyer not
having terminated this escrow on or before the expiration of the Due Diligence
Date, within one (1) Business Days after the expiration of the Due
Diligence Period, Buyer shall deposit an additional sum of Six Million Two
Hundred Thousand Dollars ($6,200,000) with Escrow Agent in immediately
available funds.

3.1.3     Applicable
Terms; Failure to Make Deposit. Except as
expressly otherwise set forth herein, the Deposit shall be credited against the
Purchase Price on the 

 6
 

 

Closing Date and
shall otherwise be held and delivered by Escrow Agent in accordance with the
provisions of Article 13. Should Buyer fail to make the additional
deposit described in Section 3.1.2, this Agreement shall terminate and the
Escrow Agent shall return the Deposit to Buyer.

3.1.4     Non-Refundable.
Except as provided below, $250,000.00 of the Deposit shall not be
refundable to Buyer but shall be applied to the Purchase Price at Closing. Except
as expressly otherwise set forth herein, the Deposit shall be credited against
the Purchase Price on the Closing Date and shall otherwise be held and
delivered by Escrow Agent in accordance with the provisions of Article 13.
Should Buyer fail to make the additional deposit described in Section 3.1.2,
this Agreement shall terminate and the Escrow Agent shall return the Deposit to
Buyer. Notwithstanding the above the full Deposit shall be refundable to Buyer in
the event that (i) the Buyer terminates this Agreement pursuant to Section 5.3,
if, during the Due Diligence Period, Buyer determines that any information
furnished to Buyer by Seller or its representatives prior to the Effective Date
was false or misleading in any material respect, or (ii) this Agreement is
terminated due to the failure of an amendment to this Agreement which includes Exhibits N, O,
P, and Q.

3.2          Cash at Closing.
On the Closing Date, Buyer shall pay to Seller (such payment being made
through the escrow arrangement noted in Section 7.1) in immediately
available funds by wire transfer as more particularly set forth in Section 7.2,
as prorated and adjusted as set forth in Article 6 or as otherwise
provided under this Agreement, the amount by which the Purchase Price exceeds
the amount of the Deposit, and Escrow Agent shall pay the Deposit to Seller on
the Closing Date.

ARTICLE 4 - TITLE
MATTERS

4.1          Title Commitment and Survey.
Sellers shall deliver to Buyer within five (5) days of the Effective
Date of this Agreement:  a copy of the
existing title commitment issued April 6, 2006, by Fidelity National Title
Insurance Company which covers the Real Property and copies of existing surveys
of the Property prepared in April of 2006. Not less than ten (10) days
prior to the Closing Date, Seller shall provide the Surveys and a current
search of the Uniform Commercial Code records maintained by the Texas Secretary
of State for each Seller. Buyer, at Seller’s sole cost and expense, shall be
responsible for obtaining a currently dated commitment for an owner’s policy of
title insurance (the “Title Commitment”) on the Real Property issued by the
Title Company and copies of the documents pertaining to the exceptions to title
listed in the Title Commitment. Upon
receipt of the Title Commitment by Buyer, Buyer shall immediately forward a
copy of the Title Commitment to Seller. Seller shall require an update of each
Survey based upon the Title Commitment.

4.2          Title Defects.

4.2.1     Buyer’s
Objections to Title; Seller’s Obligations and Rights.

(a)           On
or before 5:00 p.m. on May 19, 2006, Buyer shall have the right to
object in writing to any title matters that appear on the Title Commitment, 

 7
 

 

the surveys
delivered during the Due Diligence Period, and any supplemental title reports
or updates to the Title Commitment, whether or not such matters constitute
Permitted Exceptions (the “Title Objections”). Unless Buyer is entitled to and
timely objects to such title matters, all such title matters shall be deemed to
constitute additional Permitted Exceptions. Notwithstanding the foregoing, the
date on which Title Objections must be made pursuant to this Section 4.2.1(a) shall
be extended for one (1) day for each day that the existing title
commitment and existing surveys are delivered by Seller pursuant to Section 4.1
after the date required for such deliveries by Seller in Section 4.1.

(b)           Seller
shall have until 5:00 p.m. on May 24, 2006, to give Buyer notice (“Seller
Notice”) that (i) Seller will remove any Title Objection from title (or,
if acceptable to Buyer, in Buyer’s reasonable judgment, afford the Title
Company necessary information or certifications to permit it to insure over
such Title Objection) or (ii) Seller’s election not to cause such
exception to be Removed. Seller’s failure to provide such notice to Buyer as to
any Title Objection shall be deemed an election by Seller not to Remove such
Title Objection. If Seller notifies Buyer or is deemed to have notified Buyer
that Seller will not Remove or insure over any or all Title Objections, Buyer
shall, prior to the end of the Due Diligence Period determine if Buyer will (y) proceed
with the Purchase and take the Property subject to such Title Exception or (z) terminate
this Agreement (and receive a return of its Deposit). Buyer’s failure to give
Seller notice of its election hereunder will be deemed an election by Buyer
under clause (y) above.

(c)           In
addition, after the expiration of the Due Diligence Period, Buyer shall have
the right to object in writing to any survey or title matters that are not
Permitted Exceptions, if such matters initially appear on any supplemental
title reports or updates to the Title Commitment issued after the expiration of
the Due Diligence Period and were not present on earlier title reports or
updates, and if such matters are placed of record after the Effective Date in
any update to the Title Commitment received prior to the Closing, so long as
such objection is made by Buyer within five (5) Business Days after Buyer
becomes aware of the same (but, in any event, prior to the Closing Date). In
such event, Seller shall use reasonable efforts to remove such Title Objection
prior to Closing. In the event Seller is not able to remove such materially
adverse Title Objection, Buyer may terminate this Agreement without default and
receive a return of the Deposit.

(d)           If
Seller is unable to Remove any Required Removal Exceptions or any other Title
Objection that it has previously elected to Remove prior to the Closing, Buyer
may at Closing elect to either (a) terminate this Agreement, in which
event the Deposit shall be paid to Buyer and, thereafter, the parties shall
have no further rights or obligations hereunder except for obligations which
expressly survive the termination of this Agreement, or (b) waive such
Title Objection and the Closing shall occur as herein provided without any
reduction of or credit against the Purchase Price.

 8
 

 

(e)           Notwithstanding
anything in this Agreement to the contrary, Seller shall cause all Required
Removal Exceptions to be removed at Closing, and portions of the Purchase Price
may be used to discharge the Required Removal Exceptions.

4.2.2     Discharge
of Title Exceptions.  If on the Closing Date there are any Required
Removal Exceptions which Seller shall pay and discharge at Closing or any other
Title Objections which Seller has elected in writing to pay and discharge,
Seller may use any portion of the Purchase Price to satisfy the same, provided
Seller shall cause the Title Company to Remove the same.

4.2.3     No
New Exceptions.  From and after the Effective Date, Seller shall not execute any deed,
easement, restriction, covenant or other matter affecting title to the Property
unless Buyer has received a copy thereof and has approved the same in writing. If
Buyer fails to approve in writing any such proposed instrument within five (5) Business
Days after receipt of the aforementioned notice, Buyer shall be deemed to have
rejected the proposed instrument. Buyer’s consent shall not be unreasonably
withheld or delayed with respect to any such instrument that is proposed prior
to the end of the Due Diligence Period. Buyer, in its sole and absolute
discretion, shall be entitled to grant or withhold its consent with respect to
any such instrument that is proposed between the end of the Due Diligence
Period and the Closing.

4.3          Title Insurance.
At Closing, the Title Company shall
issue the Owner’s Title Policy, at Seller’s cost in accordance with Section 6.5.2
hereof, in an amount equal to the Purchase Price to Buyer, insuring that title
to the Real Property is vested in Buyer subject only to the Permitted
Exceptions. Buyer shall be entitled to request that the Title Company provide
such additional endorsements (or amendments) to the Owner’s Title Policy that
are not required to be furnished by Seller, as Buyer may reasonably require,
provided that (a) Buyer’s obligations under this Agreement shall not be
conditioned upon Buyer’s ability to obtain such endorsements and, if Buyer is
unable to obtain such endorsements, Buyer shall nevertheless be obligated to
proceed to close the Transaction without reduction of or set off against the
Purchase Price, and (b) the Closing shall not be delayed as a result of
Buyer’s request and (c) Buyer shall be responsible for all premiums
associated with the additional endorsements.

4.4          Survey. The Survey shall (a) locate all easements
(whether of record or apparent from an inspection of the Real Property) and
rights of way on or adjacent to the Real Property (identified by recording
data, if applicable), (b) show improvements situated on the Real Property
and the dimensions of all buildings thereon, (c) show the location and
size of all streets (existing or proposed) on or adjacent to the Property, (d) show
any encroachments or protrusions, railroads, rivers, creeks, or other water
courses, fences, utilities (including size and location), and other matters
located on or affecting the Property (and any recording information relating
thereto), (e) set forth the number of square feet comprising the Property,
together with a legal description of the boundaries of the Property by metes
and bounds; (f) certify that the Property does not lie within the 100-year
flood plain as established by the U.S. Army Corps of Engineers, (g) contain
a certification by the surveyor in the form acceptable to Buyer, and (h) in
general, comply with the standards for an American Land Title Association
survey.

 9

 

ARTICLE 5 - BUYER’S
DUE DILIGENCE/CONDITION OF THE PROPERTY

5.1          Buyer’s
Due Diligence.

5.1.1     Property
Information.  Seller shall make available (or cause its property manager to make
available) to Buyer on or before May 8, 2006, the information listed on Exhibit C
attached hereto (collectively, the “Property Information”). Except as
otherwise expressly provided herein, Seller makes no representations or
warranties as to the accuracy or completeness of the Property Information other
than they are not aware of any inaccuracy or incompleteness.

5.1.2     Access
to Property.  Between the date hereof and
the Closing Date, Seller shall allow Buyer and Buyer’s Representatives access
to the Property upon reasonable prior notice at reasonable times provided (a) such
access does not unreasonably interfere with the operation of the Property or
the rights of tenants; (b) Buyer shall not contact any tenant without
prior notice to Seller; and (c) Seller or its designated representative
shall have the right to pre-approve and be present during any physically
invasive testing of the Property; however, Buyer may cause a Phase I
environmental site assessment to be prepared without Seller’s consent. In
addition, Seller will make or cause to be made available to Buyer for copying,
at Seller’s sole cost and expense, the property files of Seller and the
management agent for the Property (other than those files containing
Confidential Materials). Buyer shall immediately return the Property to the
condition existing prior to any tests and inspections. Prior to such time as
Buyer or any of Buyer’s Representatives enter the Property to conduct any
invasive testing or inspections, Buyer shall (i) obtain
policies of general liability insurance which insure Buyer and Buyer’s
Representatives with liability insurance limits of not less than $1,000,000
combined single limit for personal injury and property damage and name Seller
and Seller’s property manager as additional insureds, and (ii) provide
Seller with certificates of insurance evidencing that Buyer has obtained the
aforementioned policies of insurance.

5.1.3     City
of Austin Contact.  Between the date hereof
and the Closing Date, Buyer and Buyer’s Representatives may make inquiry with
the City of Austin regarding the status of the Real Property. Buyer agrees that
if Buyer conducts any meetings (including telephone meetings) with any official
with a title of department head or greater, Buyer shall give Seller not less
than twenty-four (24) hours prior notice of any meeting, and Seller shall have the
right for a representative of Seller to be at any such meeting.

5.1.4     Tenant
Estoppel Certificates.  Prior to the
Effective Date, Seller has delivered to Buyer a copy of the executed estoppel
certificates recently obtained by Seller. Five (5) business days prior to
Closing, Seller shall deliver to Buyer the Required Tenant Estoppels.

 10
 

 

5.1.5     Delivery
of Buyer’s Due Diligence Reports.

(a)          During
the Due Diligence Period, Buyer shall within five (5) business days of
receipt provide Seller with a copy of any draft of and any final structural
engineering reports prepared by third parties which Buyer receives regarding
the Property.

(b)         In
the event Buyer terminates this Agreement pursuant to a right to terminate as
otherwise set forth in this Agreement, Buyer shall deliver to Seller a copy of
Buyer’s Due Diligence Reports and studies with Buyer’s notice of termination of
Escrow and this Agreement.

(c)          “Due
Diligence Reports” as used in this paragraph shall mean studies, reports and
evaluations of the Property commissioned by Buyer, but shall not mean any such
studies, reports and evaluations commissioned by any entity lending funds to
Buyer for the purchase of the Property unless such studies, reports and
evaluations are made available to Buyer and shall not include any internal
memoranda or correspondence, or financial projections or matters subject to an
attorney-client privilege or constitute attorney work product. Seller agrees
that all Due Diligence Reports are trade secrets of Buyer, that Seller shall
use the Due Diligence Reports only for Seller’s internal evaluation of the
Property, and Seller shall not furnish or make available the Due Diligence
Reports to any person or entity other than Seller’s owners, consultants or
attorneys. All due diligence reports are provided without representation or
warranty regarding the accuracy of the matters stated therein.

5.2          As-Is,
Where-Is, With All Faults Sale.  Buyer
acknowledges and agrees as follows:

5.2.1      During the Due Diligence Period, Buyer has reviewed
the Property Information received from Seller, and has conducted (or has waived
its right to conduct), and shall continue to conduct, such Due Diligence as
Buyer has deemed or shall deem necessary or appropriate.

5.2.2      The Property shall be sold, and Buyer shall accept
possession of the Property on the Closing Date, “AS IS, WHERE IS, WITH ALL
FAULTS,” with no right of setoff or reduction in the Purchase Price except as
set forth in Sections 4.2.1(a), 10.2.3 and Articles 6 and 12.

5.2.3      Except for Seller’s Warranties, none of the Seller
Parties have or shall be deemed to have made any verbal or written
representations, warranties, promises or guarantees (whether express, implied,
statutory or otherwise) to Buyer with respect to the Property, any matter set
forth, contained or addressed in the Documents (including, but not limited to,
the accuracy and completeness thereof) or the results of Buyer’s Due Diligence.

5.2.4      Buyer shall independently confirm to its
satisfaction all information that it 

 11
 

 

considers material
to its purchase of the Property or the Transaction.

In addition, Buyer expressly understands and
acknowledges that it is possible that unknown Liabilities may exist with
respect to the Property and that Buyer explicitly took that possibility into
account in determining and agreeing to the Purchase Price, and that a portion
of such consideration has been bargained for between parties with the knowledge
of the possibility of such unknown Liabilities. Notwithstanding the foregoing,
such acknowledgment is not intended to, and shall not be construed to, (i) effect
any contractual assumption of liability as to matters which are not expressly
assumed by Buyer in the documents executed by the parties in connection with
the Transaction, or (ii) affect or impair any rights or remedies that
Buyer may have against Seller as a result of a breach of any of Seller’s
Warranties.

5.3          Termination
of Agreement by Buyer During Due Diligence Period.
If Buyer, in its sole and absolute discretion, is not satisfied with the
results of its Due Diligence during the Due Diligence Period, Buyer may
terminate this Agreement by written notice to Seller at any time prior to 5:00 p.m.
Central Time on the last day of the Due Diligence Period, and, in the event of
such termination, neither Seller nor Buyer shall have any liability hereunder
except for those obligations which expressly survive the termination of this
Agreement and Buyer shall be entitled to the return of the Deposit. In the
event Buyer fails to notify Seller that Buyer has satisfactorily completed its
Due Diligence of the Property pursuant to this Article 5 prior to
5:00 p.m. Central Time on the last day of the Due Diligence Period, Buyer
shall be deemed to have exercised its rights to terminate this Agreement in
accordance with this Article 5, in which event the Deposit, less
$250,000, shall be refunded to Buyer, subject to the provisions of  Section 3.1.4.

5.4          Communication
During Due Diligence Period. Buyer agrees that
during the Due Diligence Period, Buyer shall advise Seller in writing within
seven (7) business days of any condition or concern which Buyer considers
in its sole discretion to be material in connection with information received
during the Due Diligence Period in order that Seller may commence efforts to
remedy such condition or concern, provided this provision shall not preclude
the return of the Deposit upon the termination pursuant to Section 5.3.

5.5          Termination
of Agreement by Seller at end of Due Diligence Period.
If Buyer and Seller have not executed one or more amendments to this Agreement
which include Exhibits  N, O,
P, and Q as Exhibits to this Agreement prior
to the end of the Due Diligence Period, Seller shall have the option to
terminate this Agreement by giving written notice to Buyer.

ARTICLE 6 -
ADJUSTMENTS AND PRORATIONS

The following adjustments and prorations shall be made
at Closing:

6.1          Lease
Rentals and Other Revenues.

6.1.1     Rents.
All collected Rents shall be prorated between Seller and Buyer as of
12:01 a.m. on the Closing Date. Seller shall be entitled to all Rents
attributable to any period prior to but not including the Closing Date. Buyer
shall be entitled to all Rents attributable to any period on and after the
Closing Date.

 12
 

 

Rents not
collected as of the Closing Date shall not be prorated at the time of Closing. After
Closing, Buyer shall make a good faith effort to collect any Rents not
collected as of the Closing Date on Seller’s behalf and to tender the same to
Seller upon receipt (which obligation of Buyer shall survive the Closing and
not be merged therein);  provided,
however, that all Rents collected by Buyer on or after the Closing Date
shall first be applied to all amounts due under the Leases at the time of
collection (i.e., current Rents and sums due Buyer
as the current owner and landlord) with the balance (if any) payable to Seller,
but only to the extent of amounts delinquent and actually due Seller, net of
reasonable related third party collection costs incurred by Buyer. Buyer shall
not have an exclusive right to collect the sums due Seller under the Leases and
Seller hereby retains its rights to pursue claims against any tenant under the
Leases for sums due with respect to periods prior to the Closing Date; provided,
however, that Seller (i) shall be required to notify Buyer in writing
of its intention to commence or pursue such legal proceedings; (ii) shall
only be permitted to commence or pursue any legal proceedings with Buyer’s
consent; and (iii) shall not be permitted to commence or pursue any legal
proceedings against any tenant seeking eviction of such tenant or the
termination of the underlying lease. The terms of the immediately preceding
sentence shall survive the Closing and not be merged therein.

6.1.2     Other
Revenues.  Revenues from Property operations
[other than Rents (which shall be prorated as provided in Subsection 6.1.1)and
pre-paid installments or other payments under Contracts (which shall be
the sole property of Seller)] that are actually collected shall be prorated
between Buyer and Seller as of 12:01 a.m. on the Closing Date. Seller
shall be entitled to all such revenues attributable to any period to but not
including the Closing Date and Buyer shall be entitled to all such revenues
attributable to any period on and after the Closing Date. After Closing, Buyer
shall make a good faith effort to collect any such revenues not collected as of
the Closing Date on Seller’s behalf and to tender the same to Seller upon
receipt (which obligation of Buyer shall survive the Closing and not be merged
therein). Buyer shall not have an exclusive right to collect such revenues and
Seller hereby retains its rights to pursue claims against any parties for sums
due with respect to periods prior to the Closing Date; however, Seller shall
not seek to terminate any Contract or other agreement assumed by Buyer.

6.2          Lease
Expenses.  At Closing, Buyer shall reimburse
Seller for any and all Reimbursable Lease Expenses to the extent that the same
have been approved by Buyer and paid by Seller prior to Closing. In addition,
at Closing, Buyer shall assume Seller’s obligations to pay, when due (whether
on a stated due date or accelerated) any Reimbursable Lease Expenses  approved by Buyer and unpaid as of the
Closing, and Buyer hereby agrees to indemnify and hold Sellers harmless from
and against any and all Liabilities (including reasonable attorneys’ fees,
expenses and disbursements) with respect to such Reimbursable Lease Expenses
which remain unpaid for any reason at the time of Closing, which obligations of
Buyer shall survive the Closing and shall not be merged therein. Each party
shall make available to the other all records, bills, vouchers and other data
in such party’s control verifying Reimbursable Lease Expenses and the payment
thereof.

 13
 

 

6.3          Real
Estate and Personal Property Taxes.

6.3.1       Proration of Ad Valorem Taxes.
Buyer and Seller shall only prorate ad valorem real
estate and personal property taxes for the Property that are actually payable
for the Closing Tax Year, regardless of the year for which such taxes are
assessed. As a result, if real estate or personal property taxes for the
Property are paid in arrears (i.e., taxes
paid during any Tax Year are assessed for or otherwise attributable to the
previous Tax Year), there shall be no proration of such real estate taxes
assessed and the taxes assessed for the previous Tax Year shall be paid by
Seller (or if not paid, credited against the Purchase Price).

6.3.2       Insufficient Information.
If, at Closing, the real estate and/or personal property tax rate and
assessments have not been set for the taxes due and payable during the Closing
Tax Year, then the proration of such taxes shall be based upon the rate and
assessments for the preceding Tax Year.

6.3.3       Special Assessments.
Seller shall pay all installments of special assessments due and payable
prior to the Closing Date and Buyer shall pay all installments of special
assessments due and payable on and after the Closing Date; provided, however,
that Seller shall not be required by the foregoing to pay any installments of
special assessments which have not been confirmed or which relate to projects
that have not been completed as of the Closing, but Seller shall pay all unpaid
sums, whether or not payable in installments, for all completed projects or
improvements due and payable prior to the Closing Date.

6.3.4       Personal Property Taxes.
Personal Property Taxes shall be prorated in the same manner as Real
Property Taxes, based, however, on the prior Tax Year’s tax rates and
valuations.

6.3.5       Utilities.
With respect to any utility for which there is no meter, the expenses
for such utility shall be prorated between Buyer and Seller at Closing based
upon the most current bill for such utility. Any deposits for utilities shall
inure to the benefit of and be deemed assigned to Buyer. Seller and Buyer shall
cooperate to cause the transfer of utility company accounts from Seller to
Buyer.

6.4          Other
Property Operating Expenses. Operating expenses
for the Property shall be prorated as of 12:01 a.m. on the Closing Date. All
utility charges and other operating expense bills attributable to the Property
and paid by Seller shall be deducted by Seller from the Additional Rent
collected by Seller attributable to 2006. The excess of such Additional Rent
shall be credited to Buyer at Closing.

6.5          Closing
Costs.

6.5.1       Costs To Be Paid By Buyer.
Buyer shall pay the following costs and expenses associated with the
Transaction: (a) all costs of Buyer’s Due
Diligence, including fees due its consultants and attorneys, (b) all lenders’ fees related to any financing to be
obtained by 

 14
 

 

Buyer, (c) one half of all
escrow and closing charges and (d) the costs of any endorsements to the
Title Policy required by Buyer.

6.5.2       Costs To Be Paid By Seller. Seller shall pay the following costs and expenses
associated with the Transaction: (a) all fees due its attorneys, (b) all
costs incurred in connection with causing the Title Company to Remove any
Required Removal Exceptions which Seller must pay and discharge at the Closing
or to Remove any other Title Objections to the extent Seller specifically
agrees in writing, at or prior to Closing, to cause Removal of such matter, it
being understood for purposes of this sentence that nothing in this Agreement
or any prior understanding or agreement of the parties shall be construed to obligate
Seller to so Remove or agree to Remove any such matter other than Required
Removal Exceptions, (c) one half of all escrow and closing charges, (d) all
premiums and charges of the Title Company for the Title Commitment and the
Owner’s Title Policy (e) the cost of the ALTA
Survey and updated surveys, and (f) all transfer, documentary stamps,
recording and filing charges in connection with the instruments by which Seller
conveys the Property. The obligations of the parties under this Section 6.5
shall survive the Closing (and not be merged therein) or any earlier
termination of this Agreement.

6.6          Cash
Security Deposits.  At Closing, Seller shall
give Buyer a credit against the Purchase Price in the aggregate amount of all
cash security deposits deposited under the Leases.

6.7          Apportionment
Credit. In the event the apportionments to
be made at the Closing result in a credit balance (a) to
Buyer, such sum shall be paid at the Closing by giving Buyer a credit against
the Purchase Price in the amount of such credit balance, or
(b) to Seller, Buyer shall pay the amount thereof to Seller (such
payment being made through the escrow arrangement noted in Section 7.1 and
pursuant to the estimated Closing Statement executed by the parties and the
Escrow Agent) at the Closing.

6.8          Delayed Adjustment; Delivery of Operating and Other
Statements.  If at any time following the Closing Date,
the amount of an item prorated or credited at Closing pursuant to this Article 6
shall prove to be incorrect (whether as a result of an error in calculation or
a lack of complete and accurate information as of the Closing), the party in
whose favor the error was made shall promptly pay to the other party the sum
necessary to correct such error upon receipt of proof of such error, provided
that such proof is delivered to the party from whom payment is requested for
all matters on or before one (1) year after Closing (such period being
referred to herein as the “Post Closing Adjustment Period”). In order to
enable Seller to determine whether any such delayed adjustment is necessary,
Buyer shall provide to Seller current operating and financial statements (or
such excerpts thereof as are sufficient to provide the information necessary
for the determination of such adjustments) for the Property no later than the
date one (1) month prior to the expiration of the Post-Closing
Adjustment Period. The provisions of this Section 6.8 shall survive
the Closing and not be merged therein.

ARTICLE 7 -
CLOSING

Buyer and Seller hereby agree that the Transaction
shall be consummated as follows:

7.1          Closing
Date.  Subject
to Seller’s right to extend the Closing as provided in this 

 15
 

 

Agreement, Closing shall occur on
the Closing Date. The parties shall conduct an escrow-style closing
through the Title Company so that it will not be necessary for any party to
attend the Closing (Buyer and Seller shall have pre-Closings to finalize
and sign all documents not later than the day prior to Closing, and deliver
such items to the Escrow Agent).

7.2          Title
Transfer and Payment of Purchase Price.  Provided all conditions precedent to Seller’s
obligations hereunder have been satisfied, Seller agrees to convey the Property
to Buyer upon confirmation of receipt of the Purchase Price by the Escrow Agent
as set forth below. Provided all conditions precedent to Buyer’s obligations
hereunder have been satisfied and subject to Buyer’s confirmation of receipt of
all Seller’s Closing Deliveries as required below, Buyer agrees to pay the
amount specified in Section 3.2 by timely delivering the same to
the Escrow Agent no later than 2:00 p.m. Eastern Time on the Closing Date and causing the Escrow Agent to deposit the same
in Seller’s designated account by 3:00 p.m. Eastern Time on the Closing
Date.

7.3          Seller’s
Closing Deliveries.  No later than the
Business Day prior to the Closing, Seller shall deliver or cause to be
delivered the following:

7.3.1     Deed.
Deeds covering the Real Property in the form of Exhibit E
attached hereto and incorporated herein by this reference (“Deeds”)
executed and acknowledged by Seller and assigning all rights as “Declarant”
under all restrictive covenants described in the Title Commitment (the “Restrictive
Covenants”).

7.3.2     Bill
of Sale.  Bills of Sale covering the
Personal Property in the form of Exhibit F
attached hereto and incorporated herein by this reference (“Bills of Sale”)
executed by Seller.

7.3.3     Assignment
of Tenant Leases.  An assignment and
assumption of Tenant Leases executed by each Seller, in the form of Exhibit G attached hereto and
incorporated herein by this reference (“Assignments of Leases”).

7.3.4     Assignment
of Intangible Property.  An assignment and
assumption of the Contracts (other than the Colliers Contract) and the Other
Property Rights (to the extent the same are not transferred by the Deed, Bill
of Sale or Assignment of Leases) executed by each Seller in the form of Exhibit H attached hereto and
incorporated herein by this reference (“Assignments of Intangible Property”),
assigning all Intangible Property, including warranties, without cost to Buyer.

7.3.5     Notice
to Tenants.  A letter addressed to each
tenant in the form of Exhibit I
attached hereto and incorporated herein by this reference, executed by each
Seller.

7.3.6     Non-Foreign
Status Affidavit.  A non-foreign
status affidavit in the form of Exhibit J
attached hereto and incorporated herein by this reference, as required by Section 1445
of the Internal Revenue Code, executed by each Seller.

7.3.7     Evidence
of Authority.  Documentation to establish to
Title Company’s 

 16
 

 

reasonable
satisfaction the due authorization of Seller’s execution of this Agreement and
all documents contemplated by this Agreement and the consummation of the
Transaction, executed by each Seller.

7.3.8     Letters
of Credit as Tenant Security Deposits.  With
respect to any security deposits which are letters of credit, Seller shall
cause the same to be assigned to Buyer, (i) deliver to Buyer at the
Closing such letters of credit, (ii) execute and deliver such other
instruments as the issuers of such letters of credit shall reasonably require,
and (iii) cooperate with Buyer to change the named beneficiary under such
letters of credit to Buyer, and pay all fees assessed by the issuers of the
letters of credit as a condition to the assignments.

7.3.9     Keys
and Original Documents.  Keys to all locks
on the Real Property in Seller’s or Seller’s building manager’s possession and
originals or, if originals are not available, copies, of all of the Property
Information (including all original Leases and Operating Agreements, if
available), to the extent not previously delivered to Buyer.

7.3.10       Memorandum
of Agreement.  The Memorandum of Agreement
attached hereto as Exhibit L  (Sculpture
Agreement).

7.3.11       Estimated
Closing Statement.  An estimated closing
statement prepared by Escrow Agent, in good faith confirming the prorations,
payments, adjustments, payment instructions, and other matters customarily set
forth therein, signed by Seller.

7.3.12       Updated
Rent Roll. A Rent Roll prepared within five
(5) days prior to the Closing Date, certified by Seller.

7.3.13       Management
Agreement.  A Management Agreement in the
form to be negotiated between Buyer and Seller and attached hereto as Exhibit N by amendment to this
Agreement to be executed prior to the end of the Due Diligence Period.

7.3.14       Development
Agreement.  An agreement regarding the
development of the remainder of the Terrace P.U.D. in the form to be negotiated
between Buyer and Seller and attached hereto as Exhibit O
by amendment to this Agreement to be executed prior to the end of the Due
Diligence Period.

7.3.15       Promissory
Note.  The Promissory Note in the form to be
negotiated between Buyer and Seller and attached hereto as Exhibit P
by amendment to this Agreement to be executed prior to the end of the Due
Diligence Period.

7.3.16       Deed
of Trust.  The Deed of Trust which secures
the Promissory Note in the form to be negotiated between Buyer and Seller and
attached hereto as Exhibit Q
by amendment to this Agreement to be executed prior to the end of the Due
Diligence Period.

7.3.17       Other
Documents.  Such other documents as may be
reasonably 

 17
 

 

required by the
Title Company or may be agreed upon by Seller and Buyer to consummate the
Transaction.

The items to be delivered by Seller in accordance with
the terms of this Section 7.3 shall be delivered to Escrow Agent no
later than 2:00 p.m. Eastern Time on the last Business Day prior to the
Closing Date, except that the items in the paragraph entitled “Keys and
Original Documents” shall be delivered by Seller outside of escrow and shall be
deemed delivered if the same are located at the Property (along with the Leases
and other Property Information) on the Closing Date.

7.4          Buyer’s
Closing Deliveries.  At the Closing, Buyer
shall deliver or cause to be delivered the following:

7.4.1     Purchase
Price.  The Purchase Price, as adjusted for
apportionments and other adjustments required under this Agreement, plus any
other amounts required to be paid by Buyer at Closing.

7.4.2     Assignment
of Leases.  The Assignments of Leases signed
by Buyer.

7.4.3     Assignments
of Intangible Property.  The Assignment of
Intangible Property signed by Buyer.

7.4.4     Memorandum
of Agreement.  The Memorandum of Agreement
attached hereto as Exhibit L
(Sculpture Agreement).

7.4.5     Evidence
of Authority. Documentation to establish to Title Company’s reasonable satisfaction the
due authorization of Buyer’s acquisition of the Property and Buyer’s execution
of this Agreement and the documents required to be delivered by Buyer pursuant
to this Agreement and the consummation of the Transaction.

7.4.6     Estimated
Closing Statement.  An estimated closing
statement prepared by Escrow Agent, in good faith confirming the prorations,
payments, adjustments, payment instructions, and other matters customarily set
forth therein, signed by Buyer.

7.4.7     Management
Agreement.  A Management Agreement in the
form to be negotiated between Buyer and Seller and attached hereto as Exhibit N by amendment to this
Agreement to be executed prior to the end of the Due Diligence Period.

7.4.8     Development
Agreement.  An agreement regarding the
development of the remainder of the Terrace P.U.D. in the form to be negotiated
between Buyer and Seller and attached hereto as Exhibit O
by amendment to this Agreement to be executed prior to the end of the Due
Diligence Period.

7.4.9     Other
Documents.  Such other documents as may be
reasonably required by the Title Company or may be agreed upon by Seller and
Buyer to consummate the Transaction.

 18

 

The Purchase Price shall
be paid in accordance with the terms of Section 7.2 hereof and the
items to be delivered by Buyer per subsection 7.4.2 through 7.4.9 shall be
delivered to Escrow Agent no later than 2:00 p.m. Central Time on the
Closing Date, provided all conditions precedent to Buyer’s obligations on the
Closing Date hereunder have been satisfied and subject to Buyer’s confirmation
of receipt of all Seller’s Closing Deliveries as required in Section 7.3.

ARTICLE 8 -
CONDITIONS TO CLOSING

8.1                 Conditions
to Seller’s Obligations. Seller’s obligation to
close the Transaction is conditioned on all of the following, any or all
of which may be waived by Seller by an express written waiver, at its sole
option:

8.1.1     Representations
True.  All representations and warranties
made by Buyer in this Agreement shall be true and correct in all material
respects on and as of the Closing Date, as if made on and as of such date;

8.1.2     Buyer’s
Financial Condition.  No petition has been
filed by or against Buyer under the Federal Bankruptcy Code or any similar
state or federal Law, whether now or hereafter existing; and

8.1.3     Buyer’s
Deliveries Complete.  Buyer shall have
delivered the funds required hereunder and all of the documents to be executed
by Buyer set forth in Section 7.4 and shall have performed all
other covenants, undertakings and obligations, and complied with all conditions
required by this Agreement, to be performed or complied with by Buyer at or
prior to the Closing.

8.2                 Conditions
to Buyer’s Obligations.  Buyer’s obligation
to close the Transaction is conditioned on all of the following, any or all of
which may be expressly waived by Buyer in writing, at its sole option:

8.2.1     Representations
True.  Subject to the provisions of Section 9.2.3,
all representations and warranties made by Seller in this Agreement, as the
same may be amended as provided in Section 9.2.3(c), shall be true
and correct in all material respects on and as of the Closing Date, as if made
on and as of such date;

8.2.2     Title
Conditions Satisfied.  At the time of the
Closing, title to the Property shall be as provided in Article 4 of
this Agreement;

8.2.3     Seller’s
Deliveries Complete.  Seller shall have
delivered all of the documents and other items required pursuant to Section 7.3
and shall have performed all other covenants, undertakings and obligations, and
complied with all conditions required by this Agreement, to be performed or
complied with by Seller at or prior to the Closing;

8.2.4     Tenant
Estoppels.  Seller shall have delivered the
Required Tenant Estoppels to be delivered by Seller pursuant to the terms of Section 5.1.4.

8.3                 Waiver
of Failure of Conditions Precedent.  At any time or times on or before 

 19
 

 

the date specified for the
satisfaction of any condition, Seller or Buyer may elect in writing to waive
the benefit of any such condition set forth in Section 8.1 or Section 8.2,
respectively. By closing the Transaction, Seller and Buyer shall be
conclusively deemed to have waived the benefit of any remaining unfulfilled
conditions set forth in Section 8.1 and Section 8.2,
respectively. In the event any of the conditions set forth in Section 8.1
or Section 8.2 are neither waived nor fulfilled, Seller or Buyer
(as appropriate) may exercise such rights and remedies, if any, that such party
may have pursuant to the terms of Article 11 hereof. The provisions
of this Section 8.3 shall not be construed to affect or impair any
rights or remedies Buyer may have against Seller as a result of a breach of any
of Seller’s Warranties not actually known by Buyer at Closing.

8.4                 Approvals
not a Condition to Buyer’s Performance.  Subject
to Buyer’s right to terminate this Agreement prior to the expiration of the Due
Diligence Period in accordance with the terms of Article 5 hereof,
Buyer acknowledges and agrees that its obligation to perform under this
Agreement is not contingent upon Buyer’s ability to obtain any (a) governmental
or quasi-governmental approval of changes or modifications in use or
zoning, or (b) modification of any existing land use restriction.

ARTICLE 9 -
REPRESENTATIONS AND WARRANTIES

9.1                 Buyer’s
Representations.  Buyer represents and
warrants to, and covenants with, Seller as follows:

9.1.1     Buyer’s
Authorization.  Buyer (and as used in this Section 9.1.1,
the term Buyer includes any general partners or managing members of Buyer) (a) is duly organized (or formed), validly existing
and in good standing under the Laws of its State of
organization and, as to the extent required by Laws for this Transaction, the
State in which the Property is located, (b) is
authorized to consummate the Transaction and fulfill all of its obligations
hereunder and under all documents contemplated hereunder to be executed by
Buyer, and (c) has all necessary power to
execute and deliver this Agreement and all documents contemplated hereunder to
be executed by Buyer, and to perform all of its obligations hereunder and
thereunder. This Agreement and all documents contemplated hereunder to be
executed by Buyer, have been duly authorized by all requisite partnership, corporate
or other required action on the part of Buyer and are the valid and legally
binding obligation of Buyer, enforceable in accordance with their respective
terms. Neither the execution and delivery of this Agreement and all documents
contemplated hereunder to be executed by Buyer, nor the performance of the
obligations of Buyer hereunder or thereunder will result in the violation of
any Law or any provision of the organizational documents of Buyer or will
conflict with any order or decree of any court or governmental instrumentality
of any nature by which Buyer is bound.

9.1.2     Phoenix
IV Sculpture.  Buyer shall not remove all or
any part of the Phoenix IV Sculpture located near the intersection of Via
Fortuna Drive and Tuscan Terrace for a period of twenty-five (25) years from
the Closing Date, which agreement shall be evidenced by a Memorandum of
Agreement in the form of Exhibit L
to be filed in the Official Public Record of Travis County, Texas; however,
Buyer may remove such 

 20
 

 

Sculpture if
damaged and not susceptible to repair upon the payment of costs deemed
reasonable by Buyer.

9.1.3     Management
Agreement.  Buyer agrees to enter into a
Management Agreement with ClayDesta, L.P., in the form which is mutually
agreeable to each party to be negotiated and attached hereto as Exhibit N by amendment to this
Agreement on or before the end of the Due Diligence Period..

9.2                 Seller’s
Representations.  Each of Sellers represent
and warrant to Buyer on behalf of their individual entity but not as to the
other as follows:

9.2.1     Seller’s
Authorization.  Seller (a) is
duly organized (or formed), validly existing and in good standing under the
Laws of its State of organization and, as to the extent required by applicable
Laws, of the State in which the Property is located, (b) is
authorized to consummate the Transaction and fulfill all of its obligations
hereunder and under all documents contemplated hereunder to be executed by
Seller, and (c) has all necessary power to
execute and deliver this Agreement and all documents contemplated hereunder to
be executed by Seller, and to perform all of its obligations hereunder and
thereunder. This Agreement and all documents contemplated hereunder to be
executed by Seller, have been duly authorized by all requisite partnership,
corporate or other required action on the part of Seller and are the valid and
legally binding obligation of Seller, enforceable in accordance with their
respective terms. Neither the execution and delivery of this Agreement and all
documents contemplated hereunder to be executed by Seller, nor the performance
of the obligations of Seller hereunder or thereunder will result in the
violation of any Law or any provision of the organizational documents of Seller
or will conflict with any order or decree of any court or governmental
instrumentality of any nature by which Seller is bound.

9.2.2     Other
Seller’s Representations and Warranties.  Seller
represents and warrants as follows:

(a)           Except
as listed in Exhibit K attached hereto
and incorporated herein by this reference, there are no current or pending
uninsured claims or litigation against Seller, any of which any Seller has
received written notice.

(b)           Except
for (i) the contracts and operating agreements (collectively “Contracts”)
listed in Exhibit B attached hereto,
(ii) the Leases, (iii) the Permitted Exceptions, and (iv) and
the Brokerage Agreements, Sellers have not entered into any contracts,
subcontracts or agreements affecting the Property that will be binding upon
Buyer after the Closing. The foregoing shall be deemed to include all Contracts
and New Leases executed after the Effective Date with Buyer’s consent.

(c)           Except
as set forth in Exhibit K,
Sellers have not received any written notice of default from any parties to the
Contracts or Leases that has not been cured on or before the date hereof. All
Contracts are assignable without the payment of any fee and are terminable upon
the delivery of 30 days’ notice, 

 21
 

 

except as noted on
Exhibit B.

(d)           The
only tenants entitled to possession of any portion of the Property are the
tenants listed the Rent Roll. Buyer acknowledges that the Rent Roll to be
delivered at the Closing may include New Leases approved by Buyer.

(e)           The
matters set forth in the Rent Roll, are true and correct.

(f)            Sellers
have not received any written notice from any governmental authority with
respect to the violation of any zoning Law or ordinance applicable to the
Property.

(g)           Sellers
have not received any written notice from any governmental authority with
respect to any environmental claims.

(h)           All
persons and entities presently employed in connection with the operation and
maintenance of the Property are employed on an “at will” basis.

(i)            Seller
has performed, and at Closing shall have performed all obligations which it
shall have been required to perform on or prior to the Closing Date under the
Contracts. Buyer shall notify Seller prior to the expiration of the Due
Diligence Period which of the terminable Contracts, if any, Buyer requires
Seller to give a thirty (30) day termination notice, which notice shall be
immediately sent by Seller terminating such Contracts. Buyer shall be
responsible for all payments under the Contracts attributable to the period
from Closing until the effective date of such terminations.

(j)            Except
as set forth on Exhibit D,
which list sets forth a true, complete and correct list of the Leases which
affect the Property, copies of all of which have been or will be delivered to
Buyer as part of the Property Information, there are no oral or written leases
or rights of occupancy or grants or claims of right, title or interest in any
portion of the Property. There are no defaults by Seller under the Leases, and
to the best of Seller’s knowledge, no default by any tenant under any of the
Leases. All tenant improvements and leasing commissions required to be
completed and/or paid as of the date hereof have been completed and/or made. There
are no refurbishment allowances payable under the Leases except as set forth in
the Rent Roll.

(k)           To
Seller’s knowledge, there are no Hazardous Substances (defined below) and no
Hazardous Wastes (defined below) present on the Property including, without
limitation, asbestos, flammable substances, explosives, radioactive materials,
Hazardous Wastes, toxic substances, pollutants, pollution, contaminant,
polychlorinated biphenyls (“PCBs”), urea formaldehyde foam insulation, radon,
corrosive, irritant, biologically infectious materials, petroleum product,
garbage, refuse, sludge, hazardous or waste materials (other than ordinary
course garbage and refuse of tenants and ordinary course cleaning materials)
and none of the aforesaid have been disposed of in the Property by 

 22
 

 

Seller or its
tenants. Seller has not been identified in any litigation, administrative
proceeding or investigation as a responsible party or potentially responsible
party for any liability for clean-up costs, natural resource damages or other
damages or liability for prior disposal or release of Hazardous Substances,
Hazardous Wastes or other environmental pollutants or contaminants at the
Property, and no lien or super-lien has been recorded, filed or otherwise
asserted against the Property. For purposes of this Agreement, “Hazardous
Substances” means those elements and compounds which are designated as such in Section 101(14)
of the Comprehensive Response, Compensation and Liability Act (CERCLA), 42
U.S.C. Section 9601 (14), as amended, all petroleum products and
by-products, and any other hazardous substances as that term may be further
defined in any and all applicable federal, state and local laws; and “Hazardous
Wastes” means any hazardous waste, residential or household waste, solid waste,
or other waste as defined in applicable federal, state and local laws.

(l)            Except
as set forth in applicable Leases and brokerage contracts delivered to Buyer
with the Property Information, no brokerage or leasing commission or other
compensation is now, or will at Closing be, due or payable to any person, firm,
corporation, or other entity with respect to or on account of any of the
Leases, or any extensions or renewals thereof. Except as set forth in the
commission agreements listed on Exhibit M
(the “Commission Agreements”), there are no leasing commissions and/or fees
which will become due upon the renewal or extension of any of the Leases. To
Seller’s knowledge, Exhibit M
is a true, correct and complete list of all existing Commission Agreements.
True, accurate and complete copies of all Commission Agreements affecting the
Property shall be included with the Property Information.

(m)          No
work has been performed or is in progress at, and no materials have been
furnished to, the Property, which, though not presently the subject of, might
give rise to construction, mechanic’s, materialmen’s, municipal or other liens
against the Property or any portion thereof, except that for which full and
complete releases have been obtained. If any lien for any such work commenced
prior to Closing is filed before or after Closing, Seller shall promptly
discharge the same.

(n)           Seller
has not applied for nor obtained previously a reduced valuation for any portion
of the Real Property for ad valorem tax purposes for which there could be a
roll-back of such tax obligations as a result of the sale to Buyer or change in
use of any portion of the Real Property.

(o)           There
are no public improvements in the nature of off-site improvements, or
otherwise, which have been ordered to be made and/or which have not heretofore
been assessed, and, to Seller’s knowledge, there are no special or general
assessments currently affecting or pending against the Property, except as set
forth in the Title Commitment.

(p)           Seller
shall make arrangements for the Owners of the remaining 

 23
 

 

building sites in
The Terrace to execute a Development Agreement in the form mutually agreeable
to each party to be negotiated and attached hereto as Exhibit O
by amendment to this Agreement on or before the end of the Due Diligence
Period.

9.2.3                     General
Provisions Regarding Seller’s Warranties.

(a)           No Representation As to Leases. Seller
does not represent or warrant that any particular Lease or Leases will be in
force or effect on the Closing Date or that the tenants will have performed
their obligations thereunder.

(b)           Seller’s
Warranties Deemed Modified. To the extent that Buyer actually knows prior
to the expiration of the Due Diligence Period that Seller’s Warranties are
inaccurate, untrue or incorrect in any way, such Seller’s Warranties shall be
deemed modified to reflect Buyer’s actual knowledge.

(c)           Notice
of Breach; Seller’s Right to Cure. If after the
expiration of the Due Diligence Period but prior to the Closing, Buyer obtains
actual knowledge that any of Seller’s Warranties are untrue, inaccurate or
incorrect in any material respect, Buyer shall give Seller, as
appropriate, written notice thereof within five (5) Business Days of
obtaining such knowledge (but, in any event, prior to the Closing). If at or
prior to the Closing, Seller obtains actual knowledge that any of Seller’s
Warranties are untrue, inaccurate or incorrect in any material respect, Seller
shall give Buyer written notice thereof within five (5) Business Days of
obtaining such knowledge (but, in any event, prior to the Closing). In either
such event, Seller shall have the right to cure such misrepresentation or
breach and shall be entitled to a reasonable adjournment of the Closing (not to
exceed thirty (30) days) for the purpose of such cure. If Seller is unable to
so cure any misrepresentation or breach, then Buyer, as its sole remedy for any
and all such materially untrue, inaccurate or incorrect material
representations or warranties, shall elect either (a) to waive such
misrepresentations or breaches of representations and warranties and consummate
the Transaction without any reduction of or credit against the Purchase Price,
or (b) to terminate this Agreement by written notice given to Seller on
the Closing Date, in which event this Agreement shall be terminated, any
Deposit shall be returned to Buyer and, thereafter, neither party shall have
any further rights or obligations hereunder except as provided in any section
hereof that by its terms expressly provides that it survives any termination of
this Agreement and receive a reimbursement of its due diligence costs pursuant
to Section 11.3 hereof as Buyer’s sole remedy. If any of Seller’s
Warranties are untrue, inaccurate or incorrect but are not, in the
aggregate, untrue, inaccurate or incorrect in any material respect, Buyer
shall be deemed to waive such misrepresentation or breach of warranty, and
Buyer shall be required to consummate the Transaction, but Buyer shall be
entitled to a credit against the Purchase Price resulting from the untruth,
inaccuracy or incorrectness of Seller’s Warranties. The untruth, inaccuracy or
incorrectness of Seller’s Warranties shall be deemed material only if
Buyer’s aggregate damages resulting from the untruth, inaccuracy or
incorrectness of Seller’s Warranties are 

 24
 

 

reasonably
estimated to exceed $50,000.00.

(d)           Survival;
Limitation on Seller’s Liability. Seller’s Warranties shall survive the
Closing and not be merged therein for a period of twelve (12) months and Seller
shall only be liable to Buyer hereunder for a breach of Warranties made herein
or in any of the documents executed by Seller, respectively, at the Closing
with respect to which a claim is made by Buyer against Seller on or before
twelve (12) months after the date of the Closing.

ARTICLE 10 -
COVENANTS

10.1               Buyer’s
Covenants.  Buyer hereby covenants as
follows:

10.1.1   Confidentiality.
Buyer acknowledges that any information heretofore
or hereafter furnished to Buyer with respect to the Property has been and will
be so furnished on the condition that Buyer maintain the confidentiality
thereof. Accordingly, except as set forth below (with respect to Buyer’s right
to disclose such information (i) on a need-to-know basis to its employees,
members of professional firms serving it or potential lenders or investors, (ii) to
a governmental agency in conducting Buyer’s Due Diligence or application for
development permits and authorizations, (iii) to the extent that such
information is a matter of public record, (iv) to the extent Buyer’s
securities counsel recommends a filing with the Securities and Exchange
Commission, or (v) as required by Laws or judicial process), Buyer shall
hold, and shall cause Buyer’s Representatives to hold, in strict confidence,
and Buyer shall not disclose, and shall prohibit Buyer’s Representatives from
disclosing, to any other person without the prior written consent of Seller
until such time as the Closing shall have been consummated, (a) the terms
of the Agreement, (b) any of the information in respect of the Property
delivered to or for the benefit of Buyer whether by any Buyer’s Representatives
or by Seller or any of the Seller Parties, including, but not limited to, any
information heretofore or hereafter obtained by Buyer or any Buyer’s
Representatives in connection with its Due Diligence, (c)  the identity of any direct or indirect owner of any
beneficial interest in Seller and (d) any Confidential Materials. In the
event the Closing does not occur or this Agreement is terminated, Buyer shall
promptly return to Seller all copies of documents containing any of such
information without retaining any copy thereof or extract therefrom. Notwithstanding
anything to the contrary hereinabove set forth, Buyer may disclose such
information (i) on a need-to-know basis to its employees, members of
professional firms serving it or potential lenders or investors, (ii) to a
governmental agency in conducting Buyer’s Due Diligence or application for
development permits and authorizations, (iii) to the extent that such
information is a matter of public record, (iv) to the extent Buyer’s
securities counsel recommends a filing with the Secutiries and Exchange
Commission, or (v) as required by Laws or judicial process. The provisions
of this Subsection 10.1.1 shall survive any termination of this
Agreement.

10.1.2   Buyer’s
Indemnity.  Buyer hereby agrees to indemnify, defend, and hold Seller and each of the
other Seller Parties free and harmless from and against any and all Liabilities
(including reasonable attorneys’ fees, expenses and disbursements) arising out
of or resulting from (a) the breach of the terms of Subsection 10.1.1
or (b) the entry on 

 25
 

 

the Real Property and/or the conduct of any Due Diligence by Buyer or any
of Buyer’s Representatives at any time prior to the Closing; provided, however,
that Buyer’s obligations under this clause (b) shall not apply to the
mere discovery of any pre-existing environmental or physical condition at
the Property. The foregoing indemnity shall survive the Closing (and not be
merged therein) or any earlier termination of this Agreement.

10.2               Seller’s
Covenants.  Seller hereby covenants as
follows:

10.2.1   Service
Contracts.

(a)          Without
Buyer’s prior consent, between the Effective Date and the Closing Date, Seller
shall not extend, renew, replace or modify any Contract or enter into any new
service contract or agreement unless such Contract, service contract or
agreement (as so extended, renewed, replaced or modified) can be terminated by
the owner of the Property without penalty on not more than thirty
(30) days’ notice. Seller shall provide Buyer not less than three (3) Business
Days’ prior written notice to provide its consent to any such contract,
extension, renewal, replacement or modification allowed per this paragraph. If
Buyer fails to object in writing to any such proposed action within three (3) Business
Days after receipt of the aforementioned notice, Buyer shall be deemed to have
approved the proposed action. Buyer’s consent shall not be unreasonably
withheld or delayed with respect to any such transaction that is proposed prior
to the end of the Due Diligence Period, but thereafter, Buyer, in its sole and
absolute discretion, shall be entitled to grant or withhold its consent with
respect to any such transaction that is proposed between the end of the Due
Diligence Period and the Closing.

(b)         Seller
shall immediately after Closing make arrangements to transfer all Service
Contracts into the name of Buyer.

10.2.2   Maintenance
of Property.  Except to the extent Seller is
relieved of such obligations by Article 12 hereof, between the date
hereof and the Closing Date Seller shall maintain and keep the Property in a
manner consistent with Seller’s past practices with respect to the Property.

10.2.3     Disposition
of Certain Settlements and Pending Claims.  Seller is currently a party to the following
litigations, settlements and agreements: 
(i) a Settlement Funds Escrow Agreement between The Lincoln
National Life Insurance Company and Desta Two Partnership, Ltd. dated December 24,
2004, and (ii) current litigation entitled Desta Five
Partnership, Ltd. vs. Kone Inc., Case No. 403947, 201st Judicial
District, Travis County, Texas (hereinafter collectively referred to as the “Actions”).
 Notwithstanding anything else contained
in this Agreement, neither the Actions nor any affirmative relief, awards or
benefits resulting from the Actions shall be deemed a part of the Property and
shall not be transferred to Buyer per this Agreement. However, to the extent
any results of the Actions, whether by settlement, decree, judgment or
otherwise, and either prior to or following the Closing, adversely affect  (i.e., results in a monetary judgment against
the owner of the Property, or results in a rent reduction, rent abatement or
reduction in leasehold obligations by a current tenant compared to such tenant’s
lease 

 26
 

 

obligations set forth in the Rent Roll or otherwise adversely affects the
value of the Property) the value of any of the Property (hereinafter “Net
Adverse Effect”), then (i) in the event such Net Adverse Effect is
determined prior to the Closing Date, Seller shall credit to Buyer a sum equal
to the amount of the Net Adverse Effect against the Purchase Price, and (ii) in
the event such Net Adverse Effect is determined following the Closing, Seller
will indemnify and hold Buyer harmless in an amount equal to the Net Adverse
Effect, and defend Buyer in connection with such claims. The provisions of this
section shall survive the Closing and shall not be merged into the deed.

10.2.4      Additional
Covenants of Seller.  In addition to the
covenants contained in other Sections of this Agreement, Seller covenants that
it shall:

(a)             Not
make or permit to be made any alterations, improvements or additions to the
Property without the prior written consent of Buyer, except as required under
any Lease, which shall only be undertaken after notice to Buyer.

(b)             Not
apply any tenant’s security deposit to the discharge of such tenant’s
obligations, without Buyer’s prior written consent.

(c)             Timely
bill all tenants for all rent and other charges billable under Leases, and use
its best efforts to collect any rent in arrears, consistent with past practice.

(d)             Notify
Buyer promptly of the occurrence of any of the following: (i) a fire or
other casualty causing damage to the Property, or any portion thereof; (ii) receipt
of notice of eminent domain proceedings or condemnation of or affecting the
Property, or any portion thereof; (iii) receipt of notice from any
governmental authority or insurance underwriter relating to the condition, use
or occupancy of the Property, or any portion thereof, or any real property
adjacent to any of the Property, or setting forth any requirements with respect
thereto; (iv) an actual default of any tenant claimed by Seller or the
receipt or delivery of any default or termination notice or claim of offset or
defense to the payment of rent from any tenant within the past twelve months; (v) receipt
of any notice of default from the holder of any lien or security interest in or
encumbering the Property, or any portion thereof; (vi) a change in the
occupancy of the leased portions of the Property; (vii) receipt of any
notice of any actual or threatened litigation against Seller affecting or
relating to the Property, or any portion thereof; or (viii) the
commencement of any strike, lock out, boycott or other labor trouble affecting
the Property, or any portion thereof.

(e)             Notify
Buyer of any tax assessment disputes (pending or threatened) prior to Closing,
and not agree to any changes in the real estate tax assessment, nor settle,
withdraw or otherwise compromise any pending claims with respect to prior tax
assessments, without Buyer’s prior written consent (not to be unreasonably
withheld). If any proceedings shall result in any reduction of assessment
and/or tax for the tax year in which the Closing occurs, it is agreed that the
amount of tax savings or refund for such tax year, less the reasonable fees and
disbursements in connection with such proceedings, shall be apportioned between
the parties as of the date real estate taxes are apportioned under this
Agreement.

 27
 

 

(f)              Maintain
in effect until the Closing Date the insurance policies (or like policies) now in
effect with respect to the Property and Personal Property.

10.3               Mutual
Covenants.

10.3.1   Publicity.
Seller and Buyer each hereby covenant and agree that (a) prior to
the Closing neither Seller nor Buyer shall issue any Release (as hereinafter
defined) with respect to the Transaction without the prior consent of the
other, except to the extent required by applicable Law or recommended by Buyer’s
securities counsel to satisfy requirements of applicable securities law.

10.3.2   Brokers.
Seller and Buyer expressly acknowledge
that neither Seller nor Buyer has employed any broker or agent to represent
Seller or Buyer, with respect to this Agreement other than William L.
Jackson of NorthMarq Capital, whose commission equal to 27.5 bps of the
Purchase Price shall be paid by Seller at Closing.

10.3.3   Tax
Protests, Tax Refunds and Credits.  Subject
to Section 10.2.4 (e), Seller shall have the right to continue and
to control the progress of and to make all
decisions with respect to any contest of the real estate taxes and personal
property taxes for the Property due and payable during all Tax Years prior to
the Closing Tax Year. Buyer shall have the right to control the progress of and
to make all decisions with respect to any tax contest of the real estate taxes
and personal property taxes for the Property due and payable during the Closing
Tax Year and all Tax Years subsequent to the Closing Tax Year. All real estate
and personal property tax refunds and credits received after Closing with
respect to the Property shall be applied in the following order of
priority:  first, to pay the costs and
expenses (including reasonable attorneys’ fees, expenses and disbursements)
incurred in connection with obtaining such tax refund or credit; second, to pay
any amounts due to any past or present tenant of the Property as a result of
such tax refund or credit to the extent required pursuant to the terms of the
Leases; and third, apportioned between Buyer and Seller as follows:

(a) with respect to any refunds or credits attributable
to real estate and personal property taxes due and payable during the Closing
Tax Year (regardless of the year for which such taxes are assessed), such
refunds and credits shall be apportioned between Buyer and Seller in the manner
provided in Section 6.3;

(b) with respect to
any refunds or credits attributable to real estate and personal property taxes
due and payable during any period prior to the Closing Tax Year (regardless of
the year for which such taxes are assessed), Seller shall be entitled to the
entire refunds and credits; and

(c) with
respect to any refunds or credits attributable to real estate and personal
property taxes due and payable during any period after the Closing Tax Year
(regardless of the year for which such taxes are assessed), Buyer shall be
entitled to the entire refunds and credits.

10.3.4   Survival.
The provisions of this Section 10.3 shall survive the
Closing 

 28
 

 

(and not be merged
therein) of this Agreement.

ARTICLE 11 -
FAILURE OF CONDITIONS

11.1               To
Seller’s Obligation to Close.  If, on or
before the Closing Date, (i) Buyer is in default of any of its material
obligations hereunder, or (ii) any of Buyer’s material representations or
warranties are untrue in any material respect, or (iii) the Closing
otherwise fails to occur by reason of Buyer’s failure or refusal to perform its
material obligations hereunder in a prompt and timely manner, and such
circumstance in (i) or (ii) continues for five (5) days after
written notice from Seller to Buyer, which written notice shall detail such
default, untruth or failure, as applicable, or if (iii) occurs then Seller
shall have the right, to elect, as its sole and exclusive remedy, to terminate
this Agreement by written notice to Buyer. If this Agreement is so terminated
after the end of the Due Diligence Period, then Seller shall be entitled to the
Deposit as liquidated damages, and thereafter neither party to this Agreement
shall have any further rights or obligations hereunder other than any arising
under any section herein which expressly provides that it survives the
termination of this Agreement. If this Agreement is so terminated prior to the
expiration of the Due Diligence Period, then Buyer shall be entitled to a
return of the Deposit.

11.2               To
Buyer’s Obligation to Close.  If, at the Closing,
(i) Seller is in default of any of its material obligations hereunder, or (ii) any
of Seller’s material representations or warranties are untrue in any material
respect, or (iii) the Closing otherwise fails to occur by reason of Seller’s
failure or refusal to perform its material obligations hereunder in a prompt
and timely manner, and such circumstance in (i), (ii) or (iii) continues
for five (5) days after written notice from Buyer to Seller, which written
notice shall detail such default, untruth or failure, as applicable, Buyer
shall have the right, to elect, as its sole and exclusive remedy, any one of
the following:  (a) terminate this
Agreement by written notice to Seller, promptly after which any Deposit shall
be returned to Buyer and receive a reimbursement of its due diligence costs
pursuant to Section 11.3, or (b) waive the condition and
proceed to close the Transaction, or (c) seek specific performance of this
Agreement by Seller. As a condition precedent to Buyer exercising any right it
may have to bring an action for specific performance hereunder, Buyer must
commence such an action within ninety (90) days after the occurrence of Seller’s
default. Buyer agrees that its failure to timely commence such an action for
specific performance within such ninety (90) day period shall be deemed a
waiver by it of its right to commence an action for specific performance as
well as a waiver by it of any right it may have to file or record a notice of lis pendens or notice of pendency of action or similar
notice against any portion of the Property.

ARTICLE 12 -
CONDEMNATION/CASUALTY

12.1               Right
to Terminate.  If, after the date hereof, (a) any
portion of the Property is taken by condemnation or eminent domain (or is the
subject of a pending taking which has not yet been consummated), or (b) any
portion of the Property is damaged or destroyed (excluding routine wear and
tear), Seller shall notify Buyer in writing of such fact promptly after
obtaining knowledge thereof. If the Property is the subject of a Major
Casualty/Condemnation that occurs after the Effective Date, Buyer shall have
the right to terminate this Agreement by giving written notice to Seller no
later than ten (10) Business Days after the giving of Seller’s notice, and
the 

 29
 

 

Closing Date shall be extended, if necessary, to
provide sufficient time for Buyer to make such election. The failure by Buyer
to so elect in writing to terminate this Agreement within such ten (10) Business
Day period shall be deemed an election not to terminate this Agreement. If this
Agreement is terminated pursuant to this Section 12.1, any Deposit
shall be returned to Buyer and, thereafter, this Agreement shall terminate and
neither party to this Agreement shall have any further rights or obligations
hereunder other than any arising under any section herein which expressly
provides that it shall survive the termination of this Agreement. If the
casualty is not a Major Casualty, the parties shall close Escrow and Buyer
shall receive a credit against the Purchase Price a sum equal to the reasonable
cost of repair of such non-Major Casualty.

12.2               Allocation
of Proceeds and Awards.  If a condemnation
or casualty occurs after the date hereof and this Agreement is not terminated
as permitted pursuant to the terms of Section 12.1, then this
Agreement shall remain in full force and effect, Buyer shall acquire the
remainder of the Property upon the terms and conditions set forth herein and at
the Closing:

12.2.1    if the
awards or proceeds, as the case may be, have been paid to Seller prior to
Closing, Buyer shall receive a credit at Closing equal to (i) the amount
of any such award or proceeds on account of such condemnation or casualty, plus
(ii) if a casualty has occurred and such casualty is an insured casualty,
an amount equal to Seller’s deductible with respect to such casualty; and

12.2.2    to the
extent that such award or proceeds have not been paid to Seller prior to
Closing, (i) if a casualty has occurred and such casualty is an insured
casualty, Buyer shall receive a credit at Closing equal to Seller’s deductible
with respect to such casualty,  and (ii) Seller
shall assign to Buyer at the Closing (without recourse to Seller) the rights of
Seller to, and Buyer shall be entitled to receive and retain, such condemnation
awards or insurance proceeds.

12.3               Insurance.
Seller shall maintain the property insurance coverage currently in
effect for the Property, or comparable coverage, through the Closing Date.

12.4               Waiver.
The provisions of this Article 12 supersede the provisions
of any applicable Laws with respect to the subject matter of this Article 12.

ARTICLE 13 -
ESCROW

The Deposit and any other sums (including, without
limitation, any interest earned thereon) which the parties agree shall be held
in escrow (herein collectively called the “Escrow Deposits”), shall be
held by the Escrow Agent, in trust, and disposed of only in accordance with the
following provisions:

13.1               Deposit.
The Escrow Agent shall invest the Escrow Deposits in government insured
interest-bearing instruments reasonably satisfactory to both Buyer and
Seller, shall not commingle the Escrow Deposits with any funds of the Escrow
Agent or others, and shall promptly provide Buyer and Seller with confirmation
of the investments made.

13.2               Delivery.
If the Closing occurs, the Escrow Agent shall credit the Escrow 

 30
 

 

Deposits
against the Purchase Price or return the Deposit to Buyer, per Buyer’s closing
instructions.

13.3               Failure
of Closing.  If for any reason the Closing
does not occur, the Escrow Agent shall deliver the Escrow Deposits to Seller or
Buyer only upon receipt of a written demand therefore from such party, subject
to the following provisions of this Section 13.3. If for any reason
the Closing does not occur and either party makes a written demand upon the
Escrow Agent for payment of the Escrow Deposits, the Escrow Agent shall give
written notice to the other party of such demand. If the Escrow Agent does not
receive a written objection from the other party to the proposed payment within
five (5) Business Days after the giving of such notice, the Escrow Agent
is hereby authorized to make such payment. If the Escrow Agent does receive
such written objection within such period, the Escrow Agent shall continue to
hold such amount until otherwise directed by written instructions signed by
Seller and Buyer or a final judgment of a court.

13.4               Stakeholder.
The parties acknowledge that the Escrow
Agent is acting solely as a stakeholder at their request and for their
convenience, that the Escrow Agent shall not be deemed to be the agent of
either of the parties, and that the Escrow Agent shall not be liable to either
of the parties for any action or omission on its part taken or made in good
faith, and not in disregard of this Agreement, but shall be liable for its
negligent acts and for any Liabilities (including reasonable attorneys’ fees,
expenses and disbursements) incurred by Seller or Buyer resulting from the
Escrow Agent’s mistake of Laws respecting the Escrow Agent’s scope or nature of
its duties. Seller and Buyer shall jointly and severally indemnify and hold the
Escrow Agent harmless from and against all Liabilities (including reasonable
attorneys’ fees, expenses and disbursements) incurred in connection with the
performance of the Escrow Agent’s duties hereunder, except with respect to
actions or omissions taken or made by the Escrow Agent in bad faith, in
disregard of this Agreement or involving negligence on the part of the Escrow
Agent.

13.5               Taxes.
The Party that receives any interest earned on the Deposit shall pay any
income taxes imposed thereon.

13.6               Execution
By Escrow Agent.  The Escrow Agent has
executed this Agreement in the place indicated on the signature page hereof
in order to confirm that the Escrow Agent has received and shall hold the
Escrow Deposits, in escrow, and shall disburse the Escrow Deposits pursuant to
the provisions of this Article 13.

ARTICLE 14 — LEASE
EXPENSES

14.1               New
Leases; Lease Modifications. After the Effective Date, Seller shall not, without Buyer’s
prior written consent, (a) enter into a New Lease; (b) modify or
amend any Lease (except pursuant to the exercise by a tenant of a renewal,
extension or expansion option or other right contained in such tenant’s lease);
or (c) consent to any assignment or sublease in connection with any Lease.
Seller shall furnish Buyer with a written notice of the proposed action which
shall contain information regarding the proposed action that Seller believes is
reasonably necessary to enable Buyer to make informed decisions with respect to
the advisability of the proposed action. Buyer’s consent to any matter
described in this Section 14.1 may be withheld in Buyer’s sole
discretion, and will be given or denied within five (5) Business Days 

 31
 

 

after receipt of the relevant information reasonably
requested by Buyer. If Buyer fails to respond, Buyer shall be deemed to have
approved the same. Notwithstanding the foregoing, if any Lease requires that
the landlord’s consent be subject to specific standards of discretion, then
Buyer shall be obligated to consider Buyer’s consent under the same standard of
discretion. Any notice from Buyer rejecting a proposed action shall include a
description of the reasons for Buyer’s rejection. Seller shall deliver to Buyer
a true and complete copy of each such New Lease, renewal or extension
agreement, modification, or amendment, as the case may be, promptly after the
execution and delivery thereof.

ARTICLE 15 —
GENERAL PROVISIONS AND MISCELLANEOUS

15.1               Buyer’s
Assignment.  This Agreement, and the terms,
covenants, and conditions herein contained, shall inure to the benefit of and
be binding upon the heirs, personal representatives, successors, and assigns of
each of the parties hereto. Buyer may freely assign all or a portion of its
rights under this Agreement to an affiliated company under joint ownership with
Buyer without the prior written consent of Seller. Any assignee of Buyer shall
assume all obligations of Buyer hereunder, but Buyer shall remain primarily
liable for the performance of Buyer’s obligations, and shall deliver a copy of
the fully executed written assignment and assumption agreement to Seller.
Notwithstanding the above, an assignee that (i) takes a partial interest
in the Agreement, (ii) is an entity or person taking title pursuant to an
exchange under Section 1031 of the Internal Revenue Code of 1986 as
amended, and (iii) is a partner in a partnership that is controlled by
Buyer and Buyer is also taking title to the Property, shall not be obligated to
assume any obligations of Buyer in this Agreement, and shall not be named on
the Tenant Notification Letter.

15.2               Exchange.
The
Buyer (and any permitted assignee of Buyer) or Seller may elect to effect the
transfer and conveyance of the Property, in whole or in part, as part of an
exchange under Section 1031 of the Internal Revenue Code of 1986, as
amended (“Code”), and each agree to reasonably cooperate with the other in
relation thereto. Notwithstanding the foregoing, the Closing shall not be
delayed as the result of such exchange; all additional costs in connection with
such exchange shall be borne by the exchanging party; and the exchanging party
shall indemnify the non-exchanging party and hold the non-exchanging party
harmless from and against any and all claims, demands, liabilities, costs,
expenses, penalties, damages and losses, including, without limitation,
reasonable attorneys’ fees relating to the exchanging party’s participation in
such exchange. Neither party is required to take title to any other property. This
Agreement and Seller’s obligations hereunder are not subject to or conditioned
upon any party’s ability to consummate an exchange. Buyer acknowledges that
Seller, prior to Closing, may, at Seller’s sole discretion, and subject to any
such affiliates assuming Seller’s obligations under this Agreement to transfer
the respective property to Buyer, make certain assignments of Property to
affiliate(s) of Seller in preparation for an exchange authorized under
this paragraph. In such event, (i) this Contract shall be amended to
include such affiliate(s) under the definition of Seller, and (ii) nothing
herein shall be construed to relieve Seller of from its obligations under this
Agreement.

15.3               Survival/Merger.
Except for the provisions of this Agreement which are explicitly stated
to survive the Closing, (a) none of the terms of this Agreement shall
survive the Closing, and (b) the delivery of the Deed and any other
documents and instruments by Seller and 

 32
 

 

the acceptance thereof by Buyer shall effect a merger,
and be deemed the full performance and discharge of every obligation on the
part of Buyer and Seller to be performed hereunder.

15.4               Integration;
Waiver.  This Agreement, together with the
Exhibits hereto, embodies and constitutes the entire understanding between the
parties with respect to the Transaction and all prior agreements,
understandings, representations and statements, oral or written, are merged
into this Agreement. Neither this Agreement nor any provision hereof may be
waived, modified, amended, discharged or terminated except by an instrument
signed by the party against whom the enforcement of such waiver, modification,
amendment, discharge or termination is sought, and then only to the extent set
forth in such instrument. No waiver by either party hereto of any failure or
refusal by the other party to comply with its obligations hereunder shall be
deemed a waiver of any other or subsequent failure or refusal to so comply.

15.5               Governing
Law.  This Agreement shall be governed by,
and construed in accordance with, the Laws of the State of Texas.

15.6               Captions
Not Binding; Exhibits.  The captions in this
Agreement are inserted for reference only and in no way define, describe or
limit the scope or intent of this Agreement or of any of the provisions hereof.
All Exhibits attached hereto shall be incorporated by reference as if set out
herein in full.

15.7               Binding
Effect.  This Agreement shall be binding
upon and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns.

15.8               Severability.
If any term or provision of this Agreement or the application thereof to
any persons or circumstances shall, to any extent, be invalid or unenforceable,
the remainder of this Agreement or the application of such term or provision to
persons or circumstances other than those as to which it is held invalid or
unenforceable shall not be affected thereby, and each term and provision of
this Agreement shall be valid and enforced to the fullest extent permitted by
Law.

15.9               Notices.
Any notice, request, demand, consent, approval and other communications
under this Agreement shall be in writing, and shall be deemed duly given or
made at the time and on the date when received by facsimile (provided that the
sender of such communication shall orally confirm receipt thereof by the appropriate
parties and send a copy of such communication to the appropriate parties within
one (1) Business Day of such facsimile) or when personally delivered as
shown on a receipt therefore (which shall include delivery by a nationally
recognized delivery service such as Federal Express, UPS Next Day Air,
Purolator Courier, U.S. Mail or Airborne Express) or sent via e-mail, to the
address for each party set forth below. Any party, by written notice to the
other in the manner herein provided, may designate an address different from
that set forth below.

 33
 

 

 

	
  If to Buyer:

  	
   

  	
  Harvard Property Trust

  15601 Dallas Parkway, Suite 1600

  Addison, Texas 75001-6026

  Attention: James D. Fant

  Telephone No.: (214) 655-1600

  Telecopy No.: (214) 655-1610

  E-mail: jfant@behringerharvard.com

  
	
   

  	
   

  	
   

  
	
     with
  a copy to:

  	
   

  	
  Powell & Coleman

  15601 Dallas Parkway, Suite 1600

  Addison, Texas 75001-6026

  Attention: Randy Osborne

  Telephone No.: (214) 890-7116

  Telecopy No.: (214) 373-8768

  E-mail: rosborne@psclaw.com

  
	
   

  	
   

  	
   

  
	
  If to Seller:

  	
   

  	
  ClayDesta, L.P.

  6 Desta Drive, Suite 6500

  Midland, Texas 79705

  Attention: L. Paul Latham

  Telephone No.: (432) 688-3212

  Telecopy No.: (432) 688-3247

  E-mail: platham@claytonwilliams.com

  
	
   

  	
   

  	
   

  
	
     with
  a copy to:

  	
   

  	
  Robert V. Rendall, Jr., Esq.

  Stubbeman McRae Sealy Laughlin & Browder, Inc.

  550 W. Texas Ave, Ste. 800

  Midland, Texas 79701

  Telephone No.: (432) 688-0246

  Telecopy No.: (432) 682-4884

  E-mail: rrendall@stubbemanlawfirm.com

  

 

15.10             Counterparts.
This Agreement may be executed in counterparts, each of which shall be
an original and all of which counterparts taken together shall constitute one
and the same agreement.

15.11             No
Recordation.  Seller and Buyer each agrees that neither this Agreement nor any memorandum
or notice hereof (except as otherwise specifically authorized herein) shall be
recorded and Buyer agrees (a) not to file any notice of pendency or other
instrument (other than a judgment) against the Property or any portion thereof
in connection herewith and (b) to indemnify Seller against all Liabilities
(including reasonable attorneys’ fees, expenses and disbursements) incurred by
Seller by reason of the filing by Buyer of such notice of pendency or other
instrument. Notwithstanding the foregoing, if the same is permitted pursuant to
applicable Laws, Buyer shall be entitled to record a notice of lis pendens if
Buyer is entitled to seek (and is actually seeking) specific performance of
this Agreement by Seller in accordance with the terms of Section 11.2
hereof.

 34

 

15.12             Additional
Agreements; Further Assurances.  Subject to
the terms and conditions herein provided, each of the parties hereto shall
execute and deliver such documents as the other party shall reasonably request
in order to consummate and make effective the Transaction; provided, however,
that the execution and delivery of such documents by such party shall not
result in any additional liability or cost to such party.

15.13             Construction.
The parties acknowledge that each party and its counsel have reviewed
and revised this Agreement and that the normal rule of construction to the
effect that any ambiguities are to be resolved against the drafting party shall
not be employed in the interpretation of this Agreement or any amendment hereof
or Exhibit hereto.

15.14             Time
of The Essence.  Time is of the essence with
respect to this Agreement.

15.15             Facsimile
Signatures.  Signatures to this Agreement
transmitted by telecopy shall be valid and effective to bind the party so
signing. Each party agrees to promptly deliver an execution original to this
Agreement with its actual signature to the other party, but a failure to do so
shall not affect the enforceability of this Agreement, it being expressly
agreed that each party to this Agreement shall be bound by its own telecopied
signature and shall accept the telecopied signature of the other party to this
Agreement.

15.16             No
Third Party Beneficiaries.   This
Agreement is made solely for the benefit of the parties to this Agreement and
their respective successors and assigns, and no other person or entity shall
have or acquire any right by virtue of this Agreement.

15.17             Prevailing
Party.  If any action or proceeding is
commenced (including an appeal thereof) to enforce any of the provisions of
this Agreement, the unsuccessful party therein shall pay all costs incurred by
the prevailing party therein, including reasonable attorneys’ fees,
disbursements and costs, court costs and reimbursements for any other expenses
incurred in connection therewith.

15.18             Marketing
of the Property. Seller agrees not to solicit
additional offers on the Property after the Effective Date until there is
either a Closing of the Property or either Seller or Buyer terminates this
Agreement as provided herein.

15.19             Buyer’s
Audit.  Buyer has advised Seller that Buyer,
at Buyer’s sole cost and expense, must cause to be prepared up to three (3) years
of audited financial statements in respect of the Property (including audited
financial statements from January 1, 2006 up to the quarter end
immediately preceding the Closing Date) 
substantially in compliance with the reasonable policies of Buyer and
certain laws and regulations, including, without limitation, Securities and
Exchange Commission Regulation S-X, Rule 3-14. Seller agrees to use
reasonable efforts to cooperate with Buyer’s auditors in the preparation of
such audited financial statements (it being understood and agreed that the
foregoing covenant shall survive the Closing). Without limiting the generality
of the preceding sentence (i) Seller shall, during normal business hours,
allow Buyer’s auditors reasonable access to such books and records maintained
by Seller (and Seller’s manager of the Property) in respect of the Property as
necessary to prepare such audited financial statements; (ii) Seller shall
use reasonable efforts to provide to Buyer such financial 

 35
 

 

information
and supporting documentation as are necessary for Buyer’s auditors to prepare
audited financial statements; (iii) Seller will make available for
interview by Buyer and Buyer’s auditors the manager of the Property or other
agents or representatives of Seller responsible for the day-to-day operation of
the Property and the keeping of the books and records in respect of the
operation of the Property; and (iv) if Seller has audited financial
statements with respect to the Property, Seller shall promptly provide Buyer’s
auditors with a copy of such audited financial statements. The completion of
the audit shall not be a condition of Closing. If after the Closing Date Seller
obtains an audited financial statement in respect of the Property for a fiscal
period prior to the Closing Date that was not completed as of the Closing Date,
then Seller shall promptly provide Buyer with a copy of such audited financial
statement, and the foregoing covenant shall survive Closing.

15.20              SNDA. Seller
agrees to cooperate with Buyer in obtaining Subordination, Nondisturbance and
Attornment Agreements from certain Tenants, as required by Buyer’s lender.

[signature
pages to follow]

 36
 

 

IN WITNESS WHEREOF,
each party hereto has caused this Agreement to be duly executed on its behalf
on the day and year first above written.

	
  SELLER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Desta One Partnership, Ltd.

  	
   

  	
   

  
	
  By:

  	
  Desta One Development Corp.,

  	
   

  	
   

  
	
   

  	
  its general
  partner

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ L. Paul Latham

  	
   

  	
   

  
	
   

  	
   

  	
  L. Paul Latham

  	
   

  	
   

  
	
   

  	
   

  	
  President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Desta Two Partnership, Ltd.

  	
   

  	
   

  
	
  By:

  	
  Desta Two Management Corp.,

  	
   

  	
   

  
	
   

  	
  its general partner

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ L. Paul Latham

  	
   

  	
   

  
	
   

  	
   

  	
  L. Paul Latham

  	
   

  	
   

  
	
   

  	
   

  	
  President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Desta Five Partnership, Ltd.

  	
   

  	
   

  
	
  By:

  	
  Desta Five Development Corp.,

  	
   

  	
   

  
	
   

  	
  its general partner

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ L. Paul Latham

  	
   

  	
   

  
	
   

  	
   

  	
  L. Paul Latham

  	
   

  	
   

  
	
   

  	
   

  	
  President

  	
   

  	
   

  
						

 

	
  BUYER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  HARVARD PROPERTY TRUST, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  

 

 37
 

 

The undersigned has executed this Agreement solely to
confirm its agreement to (i) hold the Escrow Deposits in escrow in
accordance with the provisions hereof, (ii) comply with the provisions of Article 13
and Section 15.2, and (iii) confirm receipt of of a fully
executed counterpart of this Agreement on the          
day of May, 2006, which date shall be deemed the “Effective Date” of this
Agreement.

	
  ESCROW AGENT:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PARTNERS TITLE COMPANY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date: May      , 2006

  	
   

  	
   

  

 

 38

 

EXHIBIT A

LEGAL DESCRIPTION

TRACT 1: Lot(s) 1
(Terrace II Office Building) and 2 (Terrace I Office Building), Block “C” THE
TERRACE, SECTION FOUR, a subdivision in Travis County, Texas, according to
the map or plat thereof, recorded in Volume 97, Page(s) 115-116 of
the Plat Records of Travis County, Texas.

TRACT 2 (Terrace VII
Office Building): Lot 1, Block “E” THE TERRACE SECTION SIX, a subdivision
in Travis County, Texas, according to the map or plat thereof, recorded under
Document No. 200000362 of the Official Public Records of Travis County,
Texas; TOGETHER WITH a non-exclusive easement for vehicular and pedestrian
traffic, created in that certain Declaration of Easements and Restrictions
dated December 4, 2000, recorded in Document No. 2000193470 of the
Official Public Records of Travis County, Texas, being over and across a 0.3109
acre parcel of land, more or less, as described in Exhibit “A-2”
therein, the same being a portion of Lot 3, Block “B” THE TERRACE SECTION SEVEN,
a subdivision in Travis County, Texas, according to the map or plat thereof,
recorded under Document No. 200109072 of the Official Public Records of
Travis County, Texas.

TRACT 3 (Terrace V Office
Building): Lot 3, Block “B” of THE TERRACE SECTION SEVEN, a subdivision in
Travis County, Texas, according to the map or plat thereof, recorded under
Document No. 200100072 of the Official Public Records of Travis County,
Texas; TOGETHER WITH (i) a non-exclusive easement for vehicular and
pedestrian traffic, created in that certain Declaration of Easements and
Restrictions dated December 4, 2000, recorded in Document No. 2000193470
of the Official Public Records of Travis County, Texas, being over and across a
0.1695 acre parcel of land, more or less, as described in Exhibit “A-1”
therein, the same being a portion of Lot 1, Block “E” THE TERRACE SECTION SIX,
a subdivision in Travis County, Texas, according to the map or plat thereof,
recorded under Document No. 200000362 of the Official Public Records of
Travis County, Texas, and (ii) non-exclusive easement for vehicular and
pedestrian traffic, created in that certain Declaration of Easements and
Restrictions dated May 22, 2002, recorded under Document No. 2002101061
of the Official Public Records of Travis County, Texas, being over and across a
portion of Lot 2, Block “B” THE TERRACE SECTION SEVEN, a subdivision in
Travis County, Texas, according to the map or plat thereof, recorded under
Document No. 200100072 of the Official Public Records of Travis County,
Texas, as more particularly described in Exhibit “B” therein.

 

EXHIBIT B

LIST OF CONTRACTS

1.                                       Janitorial
Service Agreements (Morris Janitorial) — 30 day cancellation

a.             Desta One
Partnership, Ltd. Agreement dated 10/1/03

b.             Desta Two Partnership, Ltd.
Agreement dated 10/1/03

c.             Desta Five Partnership,
Ltd. (Terrace V) Agreement dated 5/16/02

d.             Desta Five Partnership,
Ltd. (Terrace VII) Agreement dated 5/16/02

2.                                       Elevator
Service Agreements (ThyssenKrupp Elevator)

a.             Desta One
Partnership, Ltd. Agreement dated 2/23/05 —
                Expires 3/31/2010 or on 30
days notice for non-performance

b.             Desta Two Partnership, Ltd.
Agreement dated 2/23/05 —
                Expires 3/31/2010 or on 30
days notice for non-performance

c.             Desta Five Partnership,
Ltd. (Terrace V) Agreement dated 2/23/05 —
                Expires 3/31/2010 or on 30
days notice for non-performance

d.             Desta Five Partnership,
Ltd. (Terrace VII) Agreement dated 2/23/05 —
                Expires 3/31/2010 or on 30
days notice for non-performance

e.             Desta Five Partnership,
Ltd. (Terrace V) Communication Agreement dated 5/24/05 —
                Expires 3/31/2010 or if
Terrace V dated 2/23/05 is cancelled for non-performance

3.                                       Monthly
Maintenance Agreements (Austin Eagle Management Services, Inc.) — 30 day
cancellation

a.             Desta One dated
4/1/05

b.             Desta Two dated 4/1/05

c.             Desta Five dated 4/1/05

d.             Desta Seven dated 4/1/05

4.                                       Garbage
Disposal Agreements (Texas Disposal Systems, Inc.) — 30 day cancellation

a.             Desta One
Partnership, Ltd. commence 12-19-03

b.             Desta Two Partnership, Ltd.
commence 12-19-03

c.             Desta Five Partnership,
Ltd. (Terrace V) commence 12-19-03

d.             Desta Five Partnership,
Ltd. (Terrace VII) commence 12-19-03

5.                                       Proposal
for Security Services (ADT Security Services, Inc.)

a.             The Terrace, dated
8/15/97 (termination 8/15/06)

b.             Desta One, dated 12/5/97
(termination 12/5/06)

c.             Desta Two, dated 6/21/99
(termination 6/21/06)

d.             Desta Seven, dated 4/8/02
(termination 4/8/12)

 

6.                                       Agreement
dated April 20, 2005, between Desta Five Partnership, Ltd. and Vinson &
Elkins, L.L.P., regarding funding of Apple Annies Marketplace, Inc. — May cancel
12/31/06

7.                                       Parking
Agreements:

a.                                       Advance
Resource Computer Systems, Inc., dated May 25, 2005, covering one (1) reserved
space in Terrace I garage ending July 13, 2013, at no additional rent.

b.                                      Texas.net
dated March 17, 2003, covering six (6) reserved spaces in Terrace II
garage on a month-to-month basis at $40 per space per month.

 

EXHIBIT C

Behringer
Harvard Real Estate Investments

Due Diligence Item List for Purchase & Sale Contract

BASE BUILDING INFO

	
  ADA Compliance,
  studies/reports

  	
   

  	
  Partial (in war room)

  
	
  Appraisal,
  Existing

  	
   

  	
  None available

  
	
  Building
  Measurement Surveys by Registered Agent

  	
   

  	
  On surveys (copies in box in war room)

  
	
  Building Permits

  	
   

  	
  (in war room)

  
	
  Building Plans,
  Specifications

  	
   

  	
   

  
	
  Paper

  	
   

  	
  (in war room)

  
	
  CADD Disk

  	
   

  	
  None available

  
	
  Base Building
  Certificate of Occupancy

  	
   

  	
  (copies in box in war room)

  
	
  Covenants,
  Conditions & Restriction’s (Owner association,

  condo, etc.)

  	
   

  	
  (copies in box in war room)

  
	
  Easement
  Information, existing and pending

  	
   

  	
  On title commitment & surveys (copies
  in box in war room)

  
	
  Environmental
  Site Assessment, Existing

  	
   

  	
  Partial (in war room)

  
	
  Floor Plans, as
  leased

  	
   

  	
  (copies in box in war room)

  
	
  Geotechnical
  Report, if any

  	
   

  	
  (in war room)

  
	
  Parking Space
  Configuration (Surface and Garage if applicable)

  	
   

  	
  On surveys and garage plans (in war room)

  
	
  Property
  Condition Report, existing

  	
   

  	
  None available

  
	
  Roof Reports —
  If recent re-roof, provide drawings and specifications

  	
   

  	
  None available

  
	
  Seismic Reports

  	
   

  	
  None available

  
	
  Site Plans

  	
   

  	
  (in war room)

  
	
  Survey, existing

  	
   

  	
  (copies in box in war room)

  

 

BUILDING SYSTEMS/OPERATIONS

	
  Chiller Eddy Current Testing
  — Frequency and Results

  	
   

  	
  No such testing done

  
	
  Emergency/Life
  Safety Systems, Operating Manual

  	
   

  	
  (in war room)

  
	
  Ground Fault
  Testing — Frequency and Results

  	
   

  	
  No such testing done

  
	
  Infra-red Scans
  of Electrical System — Frequency and Results

  	
   

  	
  No such testing done

  
	
  Permits &
  Licenses — Alarm (including Frequency and Results

  of testing)

  	
   

  	
  (in war room)

  
	
  Permits &
  Licenses — Boiler (including inspection results)

  	
   

  	
  No boilers

  
	
  Permits &
  Licenses — Construction

  	
   

  	
  (in war room)

  

 

 

 

	
  Permits & License —
  Elevator (including one and five year

  testing reports)

  	
   

  	
  (in war room)

  
	
  Permits &
  License — Engineering

  	
   

  	
  None available

  
	
  Preventative Maintenance
  Program

  	
   

  	
  (in war room)

  
	
  Warranty,
  Elevator, if applicable

  	
   

  	
  (in war room)

  
	
  Warranty, HVAC
  Equipment, if applicable

  	
   

  	
  (in war room)

  
	
  Warranty,
  Mechanical, if applicable

  	
   

  	
  (in war room)

  
	
  Warranty, Roof,
  if applicable

  	
   

  	
  (in war room)

  
	
  Work Order
  Systems & Operating Manuals

  	
   

  	
  (in war room)

  
	
  Window Washing —
  Frequency and Results

  	
   

  	
  As needed

  

 

FINANCIAL/BUDGETING INFO

	
  Building/Capital
  Improvements Projects, Current

  	
   

  	
  N/A

  
	
  Capital
  Improvements, historical/projected, 3 years

  	
   

  	
  N/A

  
	
  Balance Sheet,
  to date

  	
   

  	
  (copies in box in war room)

  
	
  Budget &
  Narrative, Current Year

  	
   

  	
  (copies in box in war room)

  
	
  Invoices, as
  requested, copies only (typically utility and real

  estate tax invoices)

  	
   

  	
  (will be available upon request from Midland
  office)

  
	
  Security Deposit
  Listing, Current, LOC’s/Guaranty’s to be transferred

  	
   

  	
  (copy of list in box in war room)

  
	
  Utility Security
  Deposits

  	
   

  	
  (copy of list in box in war room)

  

 

*** SECTION 3-14 AUDIT
***

*Additional material/reports
required for the completion of the 3-14 Audit

(Note:  this audit will also include
physical site visits to review original invoices selected from property check
register/disbursement journal as noted below)

Detailed general ledger
report of revenues and expenses for the prior two years, each quarter for the
current year, and to current date for the current year         (copies in box in war room)

Detailed income
statements by month for the prior two years and to current date for the current
year         (copies in box in war
room)

Detail of the cash receipts
and disbursements journal (downloaded in Excel if possible) for the full prior
year and to current date for the current year         (in general ledger)

Detailed accrued expense
listing for each quarter ended during the current year and the prior two years         (in general ledger)

Operating Expense
Reconciliations in detail for the three previous years, current year budget,
and current year preliminary reconciliation         (copies in box in war room)

 

 

	
  Aging Reports, Current and
  past 6 months (month-by-month)

  	
   

  	
  (copies in box in war room)

  
	
  Rent Roll,
  Current

  	
   

  	
  (copies in box in war room)

  
	
  All leases,
  amendments and commencement date letters for current and prior year tenants

  	
   

  	
  (copies in box in war room)

  
	
  Detailed listing
  of all tenants with termination options

  	
   

  	
  (copy of list in box in war room)

  
	
  Detailed rent
  straight-line schedule for each quarter ended during the current year and the
  prior two years

  	
   

  	
  N/A

  
	
  Stacking Plan

  	
   

  	
  (copy in box in war room)

  
	
  Parking garage
  lease/operating agreement for the prior two years and the current year

  	
   

  	
  N/A

  
	
  Service
  contracts for the current year and prior year

  	
   

  	
  (copies in box in war room)

  
	
  Property tax and
  personal property tax statements for the current year & prior 2
  years

  	
   

  	
  (copies in box in war room)

  
	
  Utility agreements/power
  supply agreements for the current year and prior year

  	
   

  	
  N/A

  
	
  Utilities, prior
  year and current year invoices

  	
   

  	
  (copies in box in war room)

  
	
  Representation
  letter (questions asked Seller by Audit Firm)

  	
   

  	
  N/A

  

 

TENANT
RELATED INFO

	
  Certificates of Occupancy

  	
   

  	
  (copies in box in war room — no CO’s for Tenants
  in Terrace I & II)

  
	
  Insurance
  Certificate

  	
   

  	
  (copies in box in war room)

  
	
  Lease Commission
  Schedule, 3 previous years

  	
   

  	
  (copies in war room)

  
	
  Occupancy/Vacancy
  History, 3 previous years

  	
   

  	
  (copies provided in war room)

  
	
  Retail tenants,
  sales data and percentage rent billings

  	
   

  	
  N/A

  
	
  Tenant Contact
  Information

  	
   

  	
  Donna

  
	
  Tenant Financial
  Statements, if available

  	
   

  	
  (very limited, will deliver upon receipt of
  confidentiality agreements)

  
	
  Tenant
  Improvement projects, currently under construction (copy

  of contract(s))

  	
   

  	
  N/A

  
	
  Tenant
  Improvement Schedule, 3 previous years

  	
   

  	
  (in general ledger)

  

 

OTHER

	
  Business Licenses

  	
   

  	
  N/A

  
	
  Covenants,
  Conditions & Restrictions (Owner association,

  condo, etc.)

  	
   

  	
  (copies in box in war room)

  
	
  Flooding Info,
  Historical

  	
   

  	
  (info on Surveys)

  
	
  Ground Lease, if
  any

  	
   

  	
  N/A

  

 

 

 

	
  Insurance Certificate —
  Seller

  	
   

  	
  (copies in box in war room)

  
	
  Insurance
  Claims, Pending

  	
   

  	
  N/A

  
	
  Insurance Claims
  History

  	
   

  	
  N/A

  
	
  Intellectual
  Property Documents, if any

  	
   

  	
  N/A

  
	
  Litigation —
  Pending

  	
   

  	
  (described in contract)

  
	
  Management /
  Leasing Agreement

  	
   

  	
  N/A / (copy in box in war room)

  
	
  O&M Reports
  (Asbestos, Mold, etc.)

  	
   

  	
  N/A

  
	
  Personal
  Property Inventory including Office Equipment to

  remain on site

  	
   

  	
  (copies in box in war room)

  
	
  Photos of the
  Building

  	
   

  	
  N/A

  
	
  Security
  Incident Reports, for prior 24 months

  	
   

  	
  (in war room)

  
	
  Seismic Reports

  	
   

  	
  N/A

  
	
  Staffing/Payroll
  Schedule

  	
   

  	
  N/A

  
	
  Title commitment
  policy of Seller, existing

  	
   

  	
  (copy in box in war room)

  
	
  Title Work —
  Preliminary

  	
   

  	
  N/A

  
	
  Title Work —
  Final

  	
   

  	
  N/A

  
	
  Website/Domain
  Information

  	
   

  	
  www.terraceaustin.com (site
  owned by Colliers)

  
	
  Zoning Report,
  existing if available

  	
   

  	
  N/A

  

 

 

 

EXHIBIT D

RENT ROLL

DESTA ONE PARTNERSHIP,
LTD.

RENT ROLL

 

	
  Suite

  	
   

  	
  Tenant

  	
   

  	
  Occupied

  Sq.Ft

  	
   

  	
  Vacant

  Sq.Ft

  	
   

  	
  Monthly

  Base Rent

  	
   

  	
  Monthly

  Oper Exp

  	
   

  	
  Total

  Gross

  Monthly

  Rent

  	
   

  	
  Gross

  Rent

  Annual

  Rate

  	
   

  	
  Base

  Rent

  Annual

  Rate

  	
   

  	
  Oper Exp

  Annual

  Rate

  	
   

  	
  Lease

  Commence

  	
   

  	
  Lease

  Expiration

  	
   

  	
  Rent

  increases

  	
   

  
	
  100

  	
   

  	
  American Academy of
  Nurse Practitioners

  	
   

  	
  13,077

  	
   

  	
   

  	
   

  	
  $

  	
  10,897.50

  	
   

  	
  $

  	
  12,695.59

  	
   

  	
  $

  	
  23,593.09

  	
   

  	
  $

  	
  21.65

  	
   

  	
  $

  	
  10.00

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Feb-04

  	
   

  	
  Jan-14

  	
   

  	
  [Illegible]

  	
   

  
	
  130

  	
   

  	
  Porter Roger Dahlman

  	
   

  	
  3,183

  	
   

  	
   

  	
   

  	
  $

  	
  4,244.00

  	
   

  	
  $

  	
  3,090.16

  	
   

  	
  $

  	
  7,334.16

  	
   

  	
  $

  	
  27.55

  	
   

  	
  $

  	
  15.00

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Sep-04

  	
   

  	
  Aug-06

  	
   

  	
  [Illegible]

  	
   

  
	
  135

  	
   

  	
  Terrace Fitness Center

  	
   

  	
  683

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  150

  	
   

  	
  Tre__ Services

  	
   

  	
  3,708

  	
   

  	
   

  	
   

  	
  $

  	
  3,553.50

  	
   

  	
  $

  	
  3,599.85

  	
   

  	
  $

  	
  7,153.35

  	
   

  	
  $

  	
  23.15

  	
   

  	
  $

  	
  11.50

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Jan-99

  	
   

  	
  Jul-06

  	
   

  	
   

  	
   

  
	
  200

  	
   

  	
  The CIT Group

  	
   

  	
  2,589

  	
   

  	
   

  	
   

  	
  $

  	
  3,559.88

  	
   

  	
  $

  	
  2,513.49

  	
   

  	
  $

  	
  6,073.37

  	
   

  	
  $

  	
  28.15

  	
   

  	
  $

  	
  16.50

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Oct-98

  	
   

  	
  Jan-07

  	
   

  	
   

  	
   

  
	
  210

  	
   

  	
  Terrace Maint Office

  	
   

  	
  496

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  215

  	
   

  	
  AccuMed Home Health

  	
   

  	
  1,281

  	
   

  	
   

  	
   

  	
  $

  	
  1,521.19

  	
   

  	
  $

  	
  1,243.64

  	
   

  	
  $

  	
  2,764.83

  	
   

  	
  $

  	
  25.90

  	
   

  	
  $

  	
  14.25

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Jan-05

  	
   

  	
  Dec-07

  	
   

  	
  [Illegible]

  	
   

  
	
  220

  	
   

  	
  WMA Ferrill &
  Zielenski

  	
   

  	
  2,559

  	
   

  	
   

  	
   

  	
  $

  	
  2,132.50

  	
   

  	
  $

  	
  2,484.36

  	
   

  	
  $

  	
  4,616.86

  	
   

  	
  $

  	
  21.65

  	
   

  	
  $

  	
  10.00

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Oct-98

  	
   

  	
  Sep-06

  	
   

  	
   

  	
   

  
	
  240

  	
   

  	
  National Bankcard

  	
   

  	
  4,462

  	
   

  	
   

  	
   

  	
  $

  	
  4,811.52

  	
   

  	
  $

  	
  4,331.86

  	
   

  	
  $

  	
  9,143.38

  	
   

  	
  $

  	
  24.59

  	
   

  	
  $

  	
  12.94

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Aug-03

  	
   

  	
  Nov-10

  	
   

  	
   

  	
   

  
	
  260

  	
   

  	
  CWA

  	
   

  	
  8,641

  	
   

  	
   

  	
   

  	
  $

  	
  7,200.83

  	
   

  	
  $

  	
  8,368.97

  	
   

  	
  $

  	
  15,589.80

  	
   

  	
  $

  	
  21.65

  	
   

  	
  $

  	
  10.00

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Jun-03

  	
   

  	
  May-10

  	
   

  	
  [Illegible]

  	
   

  
	
  300

  	
   

  	
  McCall &
  Ritchie

  	
   

  	
  4,240

  	
   

  	
   

  	
   

  	
  $

  	
  4,240.00

  	
   

  	
  $

  	
  4,116.33

  	
   

  	
  $

  	
  8,356.33

  	
   

  	
  $

  	
  23.65

  	
   

  	
  $

  	
  12.00

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Apr-03

  	
   

  	
  Apr-07

  	
   

  	
  [Illegible]

  	
   

  
	
  330

  	
   

  	
  Cornerstone Mortgage

  	
   

  	
  6,303

  	
   

  	
   

  	
   

  	
  $

  	
  8,052.08

  	
   

  	
  $

  	
  6,119.16

  	
   

  	
  $

  	
  14,171.24

  	
   

  	
  $

  	
  26.98

  	
   

  	
  $

  	
  15.33

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Feb-98

  	
   

  	
  Nov-07

  	
   

  	
  [Illegible]

  	
   

  
	
  320

  	
   

  	
  Kronos Inc.

  	
   

  	
  1,594

  	
   

  	
   

  	
   

  	
  $

  	
  1,793.25

  	
   

  	
  $

  	
  1,547.51

  	
   

  	
  $

  	
  3,340.76

  	
   

  	
  $

  	
  25.15

  	
   

  	
  $

  	
  13.50

  	
   

  	
  $

  	
  11.65

  	
   

  	
  May-05

  	
   

  	
  Apr-08

  	
   

  	
  [Illegible]

  	
   

  
	
  340

  	
   

  	
  CARad Inc.

  	
   

  	
  2,888

  	
   

  	
   

  	
   

  	
  $

  	
  2,465.13

  	
   

  	
  $

  	
  2,801.83

  	
   

  	
  $

  	
  5,266.95

  	
   

  	
  $

  	
  21.90

  	
   

  	
  $

  	
  10.25

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Dec-04

  	
   

  	
  Nov-08

  	
   

  	
  [Illegible]

  	
   

  
	
  350

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,428

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  360

  	
   

  	
  Swertz & Brough

  	
   

  	
  3,845

  	
   

  	
   

  	
   

  	
  $

  	
  3,684.79

  	
   

  	
  $

  	
  3,732.85

  	
   

  	
  $

  	
  7,417.64

  	
   

  	
  $

  	
  23.15

  	
   

  	
  $

  	
  11.50

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Jan-05

  	
   

  	
  May-10

  	
   

  	
  [Illegible]

  	
   

  
	
  400

  	
   

  	
  Mann Eye Institute

  	
   

  	
  4,708

  	
   

  	
   

  	
   

  	
  $

  	
  5,296.50

  	
   

  	
  $

  	
  4,570.68

  	
   

  	
  $

  	
  9,867.18

  	
   

  	
  $

  	
  25.15

  	
   

  	
  $

  	
  13.50

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Aug-98

  	
   

  	
  Jul-08

  	
   

  	
   

  	
   

  
	
  410

  	
   

  	
  Jenesis Stump

  	
   

  	
  1,715

  	
   

  	
   

  	
   

  	
  $

  	
  2,305.25

  	
   

  	
  $

  	
  1,664.98

  	
   

  	
  $

  	
  3,970.23

  	
   

  	
  $

  	
  27.78

  	
   

  	
  $

  	
  16.13

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Nov-98

  	
   

  	
  Oct-08

  	
   

  	
   

  	
   

  
	
  420

  	
   

  	
  Provident Life

  	
   

  	
  2,024

  	
   

  	
   

  	
   

  	
  $

  	
  1,855.33

  	
   

  	
  $

  	
  1,964.97

  	
   

  	
  $

  	
  3,820.30

  	
   

  	
  $

  	
  22.65

  	
   

  	
  $

  	
  11.00

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Feb-04

  	
   

  	
  Jan-08

  	
   

  	
  [Illegible]

  	
   

  
	
  430

  	
   

  	
  Philadelphia Insurance

  	
   

  	
  1,589

  	
   

  	
   

  	
   

  	
  $

  	
  2,076.29

  	
   

  	
  $

  	
  1,542.65

  	
   

  	
  $

  	
  3,618.94

  	
   

  	
  $

  	
  27.33

  	
   

  	
  $

  	
  15.68

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Jul-04

  	
   

  	
  Jun-07

  	
   

  	
  [Illegible]

  	
   

  
	
  450

  	
   

  	
  ARC Systems

  	
   

  	
  9,655

  	
   

  	
   

  	
   

  	
  $

  	
  9,453.85

  	
   

  	
  $

  	
  9,373.40

  	
   

  	
  $

  	
  18,827.25

  	
   

  	
  $

  	
  23.40

  	
   

  	
  $

  	
  11.75

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Oct-05

  	
   

  	
  Jul-13

  	
   

  	
  [Illegible]

  	
   

  
	
  500

  	
   

  	
  ARC Systems*

  	
   

  	
  30,360

  	
   

  	
   

  	
   

  	
  $

  	
  26,565.00

  	
   

  	
  $

  	
  29,474.50

  	
   

  	
  $

  	
  56,039.50

  	
   

  	
  $

  	
  22.15

  	
   

  	
  $

  	
  10.50

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Aug-03

  	
   

  	
  Jul-13

  	
   

  	
  [Illegible]

  	
   

  
	
  roof

  	
   

  	
  Voicestream (T-Mobile)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,828.95

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  1,828.95

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Dec-01

  	
   

  	
  Dec-06

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Vacancy x-factor

  	
   

  	
   

  	
   

  	
  1,533

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  115,460

  	
   

  	
  109,498

  	
   

  	
  5,962

  	
   

  	
  $

  	
  107,537.35

  	
   

  	
  $

  	
  105,256.78

  	
   

  	
  $

  	
  212,794.11

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  94.5

  	
  %

  	
  5.2

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  total building

  	
   

  	
  occupied

  	
   

  	
  vacant

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

* ARC includes 4,436
sq.ft on 4th floor

 

 

 

DESTA TWO
PARTNERSHIP, LTD.

RENT ROLL

 

	
  Suite

  	
   

  	
  Tenant

  	
   

  	
  Occupied

  Sq.Ft.

  	
   

  	
  Vacant

  Sq.Ft.

  	
   

  	
  Monthly

  Base Rent

  	
   

  	
  Monthly

  Oper Exp

  	
   

  	
  Total

  Gross

  Monthly

  Rent

  	
   

  	
  Gross

  Rent 

  Annual

  Rate

  	
   

  	
  Base

  Rent

  Annual

  Rate

  	
   

  	
  Oper Exp

  Annual

  Rate

  	
   

  	
  Lease

  Commence

  	
   

  	
  Lease

  Expiration

  	
   

  	
  Rent

  Increases

  	
   

  
	
  100

  	
   

  	
  Colliers Oxford

  	
   

  	
  9,898

  	
   

  	
   

  	
   

  	
  $

  	
  16,290.46

  	
   

  	
  $

  	
  9,774.28

  	
   

  	
  $

  	
  26,064.74

  	
   

  	
  $

  	
  31.60

  	
   

  	
  $

  	
  19.75

  	
   

  	
  $

  	
  11.85

  	
   

  	
  Dec-99

  	
   

  	
  Nov-11

  	
   

  	
  [Illegible]

  	
   

  
	
  140

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,981

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  150

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6,201

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  200

  	
   

  	
  Authoria, Inc.

  	
   

  	
  17,103

  	
   

  	
   

  	
   

  	
  $

  	
  22,561.70

  	
   

  	
  $

  	
  16,889.21

  	
   

  	
  $

  	
  39,450.91

  	
   

  	
  $

  	
  27.68

  	
   

  	
  $

  	
  15.53

  	
   

  	
  $

  	
  11.65

  	
   

  	
  Jan-06

  	
   

  	
  Dec-10

  	
   

  	
  [Illegible]

  	
   

  
	
  250

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,475

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  300

  	
   

  	
  Newgistics, Inc.

  	
   

  	
  18,963

  	
   

  	
   

  	
   

  	
  $

  	
  15,644.48

  	
   

  	
  $

  	
  18,725.96

  	
   

  	
  $

  	
  34,370.44

  	
   

  	
  $

  	
  21.75

  	
   

  	
  $

  	
  9.90

  	
   

  	
  $

  	
  11.85

  	
   

  	
  May-03

  	
   

  	
  Apr-07

  	
   

  	
  5/06-$9.90

  	
   

  
	
  301

  	
   

  	
  Fluent, Inc.

  	
   

  	
  6,000

  	
   

  	
   

  	
   

  	
  $

  	
  5,750.00

  	
   

  	
  $

  	
  5,925.00

  	
   

  	
  $

  	
  11,575.00

  	
   

  	
  $

  	
  23.35

  	
   

  	
  $

  	
  11.50

  	
   

  	
  $

  	
  11.85

  	
   

  	
  Sep-04

  	
   

  	
  Aug-11

  	
   

  	
  [Illegible]

  	
   

  
	
  400

  	
   

  	
  Tejas (Westech)

  	
   

  	
  24,963

  	
   

  	
   

  	
   

  	
  $

  	
  38,484.63

  	
   

  	
  $

  	
  24,650.95

  	
   

  	
  $

  	
  63,135.59

  	
   

  	
  $

  	
  30.35

  	
   

  	
  $

  	
  18.50

  	
   

  	
  $

  	
  11.85

  	
   

  	
  Dec-99

  	
   

  	
  Feb-07

  	
   

  	
   

  	
   

  
	
  500

  	
   

  	
  Sigmatel*

  	
   

  	
  24,963

  	
   

  	
   

  	
   

  	
  $

  	
  39,524.75

  	
   

  	
  $

  	
  24,650.95

  	
   

  	
  $

  	
  64.175.71

  	
   

  	
  $

  	
  30.85

  	
   

  	
  $

  	
  19.00

  	
   

  	
  $

  	
  11.85

  	
   

  	
  Jan-00

  	
   

  	
  Feb-07

  	
   

  	
  3/06-$19.00

  	
   

  
	
  roof

  	
   

  	
  Sprint PCS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,380.00

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  1,380.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Mar-00

  	
   

  	
  Feb-10

  	
   

  	
  3/10-$1625.05

  	
   

  
	
  roof

  	
   

  	
  Verizon Wireless

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,750.00

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  1,750.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Dec-01

  	
   

  	
  Nov-06

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Vacancy x-factor

  	
   

  	
   

  	
   

  	
  88

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  114,635

  	
   

  	
  101,890

  	
   

  	
  12,745

  	
   

  	
  $

  	
  141,388.01

  	
   

  	
  $

  	
  100,616.36

  	
   

  	
  $

  	
  242,002.39

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  88.9

  	
  %

  	
  11.1

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  total building

  	
   

  	
  occupied

  	
   

  	
  vacant

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

* Texas Networking
subleases 24,963 sq. ft.

 

 

 

DESTA TWO
PARTNERSHIP, LTD.

RENT ROLL

TERRACE V

 

	
  Suite

  	
   

  	
  Tenant

  	
   

  	
  Occupied

  Sq.Ft.

  	
   

  	
  Vacant

  Sq.Ft.

  	
   

  	
  Monthly

  Base

  Rent

  	
   

  	
  Monthly

  Oper

  Exp

  	
   

  	
  Total

  Gross 

  Monthly

  Rent

  	
   

  	
  Gross

  Rent

  Annual

  Rate

  	
   

  	
  Base

  Rent

  Annual

  Rate

  	
   

  	
  Oper

  Exp

  Annual

  Rate

  	
   

  	
  Lease

  Expiration

  	
   

  	
  Rent

  Increases

  	
   

  
	
  100

  	
   

  	
  Cirrus
  Logic, Inc.

  	
   

  	
  196,717

  	
   

  	
   

  	
   

  	
  $

  	
  386,057.11

  	
   

  	
  $

  	
  213,110.08

  	
   

  	
  $

  	
  599,167.19

  	
   

  	
  $

  	
  36.55

  	
   

  	
  $

  	
  23.55

  	
   

  	
  $

  	
  13.00

  	
   

  	
  06/31/12

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  196,717

  	
   

  	
  196,717 

  	
   

  	
  0 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  100.0%

  	
   

  	
  0.0%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  total building

  	
   

  	
  occupied

  	
   

  	
  vacant

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
																														

 

 

 

TERRACE 7 BUILDING

RENT ROLL

 

	
  Suite

  	
   

  	
  Tenant

  	
   

  	
  Occupied

  Sq.Ft.

  	
   

  	
  Vacant

  Sq.Ft

  	
   

  	
  Monthly

  Base Rent

  	
   

  	
  Monthly

  Oper Exp

  	
   

  	
  Total

  Gross

  Monthly

  Rent

  	
   

  	
  Gross

  Rent

  Annual

  Rate

  	
   

  	
  Base

  Rent

  Annual

  Rate

  	
   

  	
  Oper

  Exp

  Annual

  Rate

  	
   

  	
  Lease

  Commence

  	
   

  	
  Lease

  Expiration

  	
   

  	
  Rent

  increases

  	
   

  
	
  100

  	
   

  	
  Vinson &
  Elkins

  	
   

  	
  114,750

  	
   

  	
   

  	
   

  	
  $

  	
  230,456.25

  	
   

  	
  $

  	
  110,446.88

  	
   

  	
  $

  	
  340,903.13

  	
   

  	
  $

  	
  35.85

  	
   

  	
  $

  	
  24.10

  	
   

  	
  $

  	
  11.55

  	
   

  	
  06/15/02

  	
   

  	
  12/31/14

  	
   

  	
   

  	
   

  
	
  400

  	
   

  	
  Facility
  Insurance Corp.

  	
   

  	
  3,460

  	
   

  	
   

  	
   

  	
  $

  	
  3,604.17

  	
   

  	
  $

  	
  3,330.25

  	
   

  	
  $

  	
  5,934.42

  	
   

  	
  $

  	
  24.05

  	
   

  	
  $

  	
  12.50

  	
   

  	
  $

  	
  11.55

  	
   

  	
  01/01/04

  	
   

  	
  12/31/09

  	
   

  	
  [Illegible]

  	
   

  
	
  450

  	
   

  	
  North Star
  Consultants

  	
   

  	
  5,126

  	
   

  	
   

  	
   

  	
  $

  	
  7,475.43

  	
   

  	
  $

  	
  4,933.78

  	
   

  	
  $

  	
  12,408.21

  	
   

  	
  $

  	
  29.05

  	
   

  	
  $

  	
  17.50

  	
   

  	
  $

  	
  11.55

  	
   

  	
  04/01/03

  	
   

  	
  11/30/07

  	
   

  	
  [Illegible]

  	
   

  
	
   

  	
   

  	
  North Star
  Consultants

  	
   

  	
  1,324

  	
   

  	
   

  	
   

  	
  $

  	
  1,103.33

  	
   

  	
  $

  	
  1,274.35

  	
   

  	
  $

  	
  2,377.88

  	
   

  	
  $

  	
  21.55

  	
   

  	
  $

  	
  10.00

  	
   

  	
  $

  	
  11.55

  	
   

  	
  05/01/04

  	
   

  	
  11/30/07

  	
   

  	
   

  	
   

  
	
  500

  	
   

  	
  Gjerset &
  Lorenz

  	
   

  	
  8,968

  	
   

  	
   

  	
   

  	
  $

  	
  14,199.33

  	
   

  	
  $

  	
  8,631.69

  	
   

  	
  $

  	
  22,831.01

  	
   

  	
  $

  	
  30.55

  	
   

  	
  $

  	
  19.00

  	
   

  	
  $

  	
  11.55

  	
   

  	
  08/01/02

  	
   

  	
  10/31/09

  	
   

  	
  [Illegible]

  	
   

  
	
   

  	
   

  	
  Gjerset &
  Lorenz

  	
   

  	
  5,066

  	
   

  	
   

  	
   

  	
  $

  	
  5,488.17

  	
   

  	
  $

  	
  4,876.03

  	
   

  	
  $

  	
  10,384.20

  	
   

  	
  $

  	
  24.55

  	
   

  	
  $

  	
  13.00

  	
   

  	
  $

  	
  11.55

  	
   

  	
  02/22/05

  	
   

  	
  11/30/09

  	
   

  	
  [Illegible]

  	
   

  
	
  501

  	
   

  	
  Texas Legal
  Protection

  	
   

  	
  4,505

  	
   

  	
   

  	
   

  	
  $

  	
  6,757.50

  	
   

  	
  $

  	
  4,336.06

  	
   

  	
  $

  	
  11,093.56

  	
   

  	
  $

  	
  29.55

  	
   

  	
  $

  	
  18.00

  	
   

  	
  $

  	
  11.55

  	
   

  	
  08/01/02

  	
   

  	
  12/31/09

  	
   

  	
  [Illegible]

  	
   

  
	
  525

  	
   

  	
  ClayDesta, L.P.

  	
   

  	
  2,686

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  550

  	
   

  	
  Bank of America

  	
   

  	
  11,871

  	
   

  	
   

  	
   

  	
  $

  	
  12,880.25

  	
   

  	
  $

  	
  11,425.84

  	
   

  	
  $

  	
  24,288.09

  	
   

  	
  $

  	
  24.55

  	
   

  	
  $

  	
  13.00

  	
   

  	
  $

  	
  11.55

  	
   

  	
  05/01/04

  	
   

  	
  08/31/12

  	
   

  	
  [Illegible]

  	
   

  
	
  600

  	
   

  	
  Sheshunoff
  Management

  	
   

  	
  18,313

  	
   

  	
   

  	
   

  	
  $

  	
  27,469.50

  	
   

  	
  $

  	
  17,626.28

  	
   

  	
  $

  	
  45,095.76

  	
   

  	
  $

  	
  29.55

  	
   

  	
  $

  	
  18.00

  	
   

  	
  $

  	
  11.55

  	
   

  	
  04/01/03

  	
   

  	
  05/31/13

  	
   

  	
  [Illegible]

  	
   

  
	
  650

  	
   

  	
  Morgan Keegan

  	
   

  	
  13,902

  	
   

  	
   

  	
   

  	
  $

  	
  13,902.00

  	
   

  	
  $

  	
  13,380.88

  	
   

  	
  $

  	
  27,282.68

  	
   

  	
  $

  	
  23.55

  	
   

  	
  $

  	
  12.00

  	
   

  	
  $

  	
  11.55

  	
   

  	
  10/01/04

  	
   

  	
  08/30/14

  	
   

  	
  [Illegible]

  	
   

  
	
  675

  	
   

  	
  Matinee Media

  	
   

  	
  1,270

  	
   

  	
   

  	
   

  	
  $

  	
  1,682.75

  	
   

  	
  $

  	
  1,222.38

  	
   

  	
  $

  	
  2,905.13

  	
   

  	
  $

  	
  27.45

  	
   

  	
  $

  	
  15.90

  	
   

  	
  $

  	
  11.55

  	
   

  	
  01/07/05

  	
   

  	
  08/31/09

  	
   

  	
  [Illegible]

  	
   

  
	
  roof

  	
   

  	
  Bank of America

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  150.00

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  150.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  11/01/05

  	
   

  	
  10/31/10

  	
   

  	
  Rooftop

  Agreement

  	
   

  
	
  roof

  	
   

  	
  Cingular

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  2,500.00

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  2,500.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  11/01/05

  	
   

  	
  10/31/10

  	
   

  	
  Rooftop

  Agreement

  	
   

  
	
  roof

  	
   

  	
  Nextel
  Communications

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  2,500.00

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  2,500.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  11/20/03

  	
   

  	
  11/19/08

  	
   

  	
  Rooftop

  Agreement

  	
   

  
	
   

  	
   

  	
  192,214

  	
   

  	
  191,241 

  	
   

  	
  973 

  	
   

  	
  $

  	
  330,148.68

  	
   

  	
  $

  	
  181,484.16

  	
   

  	
  $

  	
  511,632.86

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  99.5%

  	
   

  	
  0.5%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  total building

  	
   

  	
  occupied

  	
   

  	
  vacant

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

 

EXHIBIT E

FORM OF SPECIAL WARRANTY
DEED

 

UPON RECORDING RETURN TO:

SPECIAL
WARRANTY DEED (separate deed for each Seller)

(Texas)

	
  STATE OF TEXAS 

  	
  § 

  
	
   

  	
  § KNOW ALL MEN BY THESE PRESENTS 

  
	
  COUNTY OF TRAVIS

  	
  § THAT: 

  
	
   

  	
  §

  

 

THIS
INDENTURE is made as of January     ,
2006, between                          
                     ,
LTD, a Texas limited partnership, whose mailing address is c/o                      ,
                     
(herein called “Grantor”), and [PURCHASER ASSIGNEE:                      ,
a Texas limited partnership (“Grantee”), whose mailing address is                      ,
                     
(herein called “Grantee”).

(Wherever used herein the
terms “Grantor” and “Grantee” include all the parties to this instrument and
the heirs, legal representatives and assigns of individuals, and the successors
and assigns of corporations)

WITNESSETH:  That the Grantor, for and in consideration of
the sum of Ten and no/100 Dollars ($10.00) and other valuable consideration to
the Grantor in hand paid by Grantee, the receipt and sufficiency whereof is
hereby acknowledged, by these presents does grant, bargain, sell, alien,
remise, release, convey and confirm unto the Grantee, it successors and
assigns, all that certain land situated in Travis County, Texas, to wit:

SEE EXHIBIT “A” ATTACHED HERETO AND
MADE A PART HEREOF,

together with (i) all
the tenements, hereditaments and appurtenances thereto belonging or in anywise
appertaining and all buildings and other improvements and fixtures located
thereon; (ii) to all rights, privileges and appurtenances pertaining
thereto including all of Grantor’s right, title and interest, if any, in and to
all rights-of-way, open or proposed streets, alleys, easements, strips or gores
of land adjacent thereto; and (iii) all previously assigned [“previously
assigned” not to be in deed from W&G Partnership, Ltd.] rights of Declarant
pursuant to the Declaration of Covenants, Conditions and Restrictions of the
Terrace Planned Unit Development recorded in Book 12740, Page 2604 of the
Official Records of Travis County, Texas, and the Restrictive 

 

 

Covenants of the Terrace
PUD as recorded in Book 10252, Page 135 of the Official Records of Travis
County, Texas (hereinafter collectively the “Property”).

TO HAVE AND
TO HOLD the Property in fee simple, together with all and
singular the rights and appurtenances thereto in anywise belonging, the Grantor
hereby covenants with said Grantee that it is lawfully seized of said land in
fee simple; that it has good right and lawful authority to sell and convey said
land; that it hereby fully WARRANTS AND FOREVER DEFEND the title to the
Property against the lawful claims of all persons claiming by, through or under
Grantor, but against none other, subject, however, to the liens securing
payment of ad valorem taxes for the current and subsequent years, as well as to
all easements of record in Travis County, Texas, and all reservations,
covenants, conditions and restrictions which are applicable to the Property
which are more particularly described on Exhibit B
hereto.

IN
WITNESS WHEREOF, the Grantor has caused these presents to be
executed in manner and form sufficient to bind it as of the day and year first
above written.

__________________________________
(NAME OF GRANTOR)

[ATTACH NOTARY
ACKNOWLEDGMENT]

 

 

EXHIBIT A

(to Warranty Deed)

Legal Description of Real Property

 

 

EXHIBIT F

FORM OF BILL OF SALE

(Separate for each
Seller)

BILL OF SALE

THIS BILL OF SALE
(“Bill of Sale”), is made as of January     ,
2006, between                      ,
a Texas limited partnership (collectively the “Seller”), and [PURCHASER]                      ,
a                      
(“Buyer”).

WHEREAS, pursuant
to the terms of that certain Purchase and Sale Agreement, dated as of February     ,
2006, by and between                      
and Seller (the “Sale Agreement”), Seller agreed to sell to Buyer, inter alia, certain real property, the improvements located
thereon and certain rights appurtenant thereto (collectively, the “Real
Property”), all as more particularly described in the Sale Agreement,
located in the City of Austin, County of Travis, State of Texas and commonly
known as the “Terraces”, as more particularly described in Exhibit A
attached thereto and incorporated herein by this reference; and

WHEREAS, by
Warranty Deed of even date herewith, Seller conveyed the Real Property to Buyer
and by Assignment of even date herewith, Seller assigned to Buyer all of Seller’s
rights under certain leases (collectively, the “Leases”) relating to the
Real Property, as more particularly described in such Assignment; and

WHEREAS, in
connection with the above described conveyance Seller desires to sell, transfer
and convey to Buyer the tangible personal property as hereinafter described.

NOW, THEREFORE, in
consideration of the receipt of TEN AND NO/100 DOLLARS ($10.00) and other good
and valuable consideration paid in hand by Buyer to Seller, the receipt and
sufficiency of which are hereby acknowledged, Seller has GRANTED, CONVEYED,
SOLD, TRANSFERRED, SET OVER and DELIVERED and by these presents does hereby
GRANT, SELL, TRANSFER, SET OVER and DELIVER to Buyer, its legal
representatives, successors and assigns, and Buyer hereby accepts all right,
title and interest in and to the following personal property  (herein collectively called the “Personal
Property”):

the items specifically
described in Attachment One to this Bill of Sale (which includes all tangible
personal property owned by Seller that is located on the Real Property and used
in the ownership, operation and maintenance of the Real Property, but excluding
therefrom Seller’s furniture and personal property located in Suite 525 of
Terrace VII unless such personal property is specifically listed in Attachment
One)[as to Desta Five only]; and all books, records and files of Seller
relating to the Real Property and the Leases, but specifically excluding
therefrom the items described as Confidential Materials (as such term is
defined in the Sale Agreement).

This Bill of Sale
is made without any covenant, warranty or representation by, or recourse
against, Seller, as more expressly set forth in the Sale Agreement and the
documents executed in connection therewith.

 

 

This Bill of Sale
may be executed in counterparts, each of which shall be an original and all of
which counterparts taken together shall constitute one and the same agreement.

If any term or
provision of this Bill of Sale or the application thereof to any persons or
circumstances shall, to any extent, be invalid or unenforceable, the remainder
of this Bill of Sale or the application of such term or provision to persons or
circumstances other than those as to which it is held invalid or unenforceable
shall not be affected thereby, and each term and provision of this Bill of Sale
shall be valid and enforced to the fullest extent permitted by law.

IN WITNESS
WHEREOF, the undersigned have executed this Bill of Sale as of the date first
set forth hereinabove.

SELLER:

 

 

EXHIBIT A

(to Bill of Sale)

Legal Description of Real Property

 

 

 

EXHIBIT G

FORM OF ASSIGNMENT OF TENANT
LEASES

ASSIGNMENT AND ASSUMPTION OF SPACE LEASES

THIS
ASSIGNMENT AND ASSUMPTION OF SPACE LEASES (this “Assignment”),
is made as of                      ,
2006 (the “Effective Date”), between [SELLER ASSIGNOR] (“Assignor”), and [PURCHASER
ASSIGNEE]                      , a Texas corporation (“Assignee”).

W I T N E S S E T H:

WHEREAS,
pursuant to the terms of that certain Purchase and Sale Agreement, dated as of February      ,
2006, by and between Assignor and Assignee (the “Sale Agreement”),
Assignor agreed to sell to Assignee, inter alia,
certain real property, the improvements located thereon and certain rights
appurtenant thereto (collectively, the “Real Property”), all as more
particularly described in the Sale Agreement, located in the City of Austin,
County of Travis, State of Texas and commonly known as the “Terraces”, as more
particularly described in Exhibit A attached thereto and
incorporated herein by this reference. Initially capitalized terms not
otherwise defined herein shall have the respective meanings ascribed to such
terms in the Sale Agreement; and

WHEREAS,
the Sale Agreement provides, inter alia,
that Assignor shall assign to Assignee certain leases and that Assignor and
Assignee shall enter into this Assignment.

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

1.             Assignment. Assignor hereby
assigns, sets over and transfers to Assignee all of Assignor’s right, title and
interest in, to and under the space leases with the tenants of the Real
Property identified on Exhibit B attached hereto and incorporated
herein by this reference, and all guaranties of, or relating to, those leases
and/or any portion of any lease, if any (collectively, the “Leases”).

2.             Assumption. Assignee, for
itself and its successors and assigns, (i) hereby accepts the foregoing
assignment, and (ii) agrees to, and hereby does, assume and agree to keep,
pay, perform, observe and discharge all of the terms, covenants, conditions,
agreements, provisions and obligations contained in Leases to be kept, paid,
performed, observed and discharged by the landlord thereunder from and after
the Effective Date, including without limitation, the payment of all broker’s
commissions and tenant improvement allowances approved by Assignee pursuant to
the Sale Agreement.

3.             Indemnity. Assignee agrees to
indemnify, defend and hold harmless Assignor from and against all claims,
liabilities, damages and expenses (including, without limitation, reasonable
attorneys’ fees and disbursements) which may be asserted against or imposed on
or incurred by Assignor by reason of Assignee’s failure to perform any of its
obligations under the Leases to be paid or performed after the Effective Date,
and including, without limiting the generality of the foregoing, by reason of
(but only to the extent same have been either delivered by Assignor to 

 

 

Assignee or credited
against the Purchase Price) Assignee’s disposition of any of the Security
Deposits. Assignor hereby agrees to indemnify, defend and hold harmless
Assignee from and against all claims, liabilities, damages and expenses
(including, without limitation, reasonable attorneys’ fees and disbursements)
which may be asserted against or imposed on or incurred by Assignee by reason
of Assignor’s failure to pay or perform any of its obligations under the Leases
prior to he Effective Date, and including, without limiting the generality of
the foregoing, by reason of any of the Security Deposits which Assignor either
did not assign to Assignee or for which Assignee did not receive credit against
the Purchase Price.

4.             Attorneys’ Fees. In the event
of any action between Assignor and Assignee seeking enforcement or
interpretation of any of the terms and conditions to this Assignment, the
prevailing party in such action, whether by fixed judgment or settlement, shall
be entitled to recover, in addition to damages, injunctive or other relief, its
actual costs and expenses, including, but not limited to, actual attorneys’
fees, court costs and expert witness fees. Such costs shall include attorneys’
fees, costs and expenses incurred in (a) post-judgment motions, (b) contempt
proceedings, (c) garnishment, levy and debtor and third-party examination,
(d) discovery, and (e) bankruptcy litigation.

5.             Successors. This Assignment
shall inure to the benefit of Assignor and Assignee, and their respective
heirs, assigns and successors in interest.

6.             Miscellaneous. This Assignment
and the obligations of the parties hereunder shall survive the closing of the
transaction referred to in the Sale Agreement and shall not be merged therein,
shall be binding upon and inure to the benefit of the parties hereto, their
respective legal representatives, successors and assigns, shall be governed by
and construed in accordance with the laws of the State of Texas applicable to
agreements made and to be wholly performed within said State and may not be
modified or amended in any manner other than by a written agreement signed by
the party to be charged therewith.

7.             Severability. If any term or
provision of this Assignment or the application thereof to any persons or
circumstances shall, to any extent, be invalid or unenforceable, the remainder
of this Assignment or the application of such term or provision to persons or
circumstances other than those as to which it is held invalid or unenforceable
shall not be affected thereby, and each term and provision of this Assignment
shall be valid and enforced to the fullest extent permitted by law.

8.             Counterparts. This Assignment
may be executed in counterparts, each of which shall be an original and all of
which counterparts taken together shall constitute one and the same agreement.

IN
WITNESS WHEREOF, the undersigned have executed this
Assignment as of the date first set forth hereinabove.

 

                     ,
Ltd.

 

 

ASSIGNEE:

            By:

 

 

 

EXHIBIT A

(to Assignment of Leases)

Legal Description of Real Property

 

 

EXHIBIT B

(to Assignment of Leases)

List of Leases

 

 

EXHIBIT H

FORM OF ASSIGNMENT OF
INTANGIBLE PROPERTY

ASSIGNMENT OF INTANGIBLE PROPERTY

THIS
ASSIGNMENT OF INTANGIBLE PROPERTY (this “Assignment”), is
made as of                      ,
2006 (the “Effective Date”), between [SELLER ASSIGNEE] (the “Assignor”), and [PURCHASER
ASSIGNEE]                      ,
a Texas limited partnership  (“Assignee”).

W I T N E S S E T H:

WHEREAS,
pursuant to the terms of that certain Purchase and Sale Agreement dated February     ,
2006, and entered into by and between Assignor and Assignee (the “Sale
Agreement”), Assignor agreed to sell to Assignee, inter alia,
certain real property, the improvements located thereon and certain rights
appurtenant thereto (collectively, the “Real Property”), all as more
particularly described in the Sale Agreement, located in the City of Austin,
County of Travis, State of Texas and commonly known as the “Terraces”, as more
particularly described in Exhibit A attached thereto and
incorporated herein by this reference. Initially capitalized terms not otherwise
defined herein shall have the respective meanings ascribed to such terms in the
Sale Agreement; and

WHEREAS,
the Sale Agreement provides, inter alia,
that Assignor shall assign to Assignee rights to certain intangible property
and that Assignor and Assignee shall enter into this Assignment.

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

1.    Assignment of Contracts, Licenses and
Permits. Assignor hereby assigns, sets over and transfers
to Assignee all of Assignor’s right, title and interest in, to and under the
following, if and only to the extent the same may be assigned or quitclaimed by
Assignor without expense to Assignor, except as provided below:

the contracts, subcontracts
and agreements relating to the Real Property and the Personal Property
(including all contracts, subcontracts and agreements relating to the
construction of any unfinished tenant improvements), which are described in Exhibit A attached hereto and
incorporated herein by this reference (herein collectively called the “Contracts”);
and

to the extent that the
same are in effect as of the date hereof, any licenses, permits and other
written authorizations necessary for the use, operation or ownership of the
Real Property (herein collectively called the “Licenses and Permits”);
and

all plans and
specifications pertaining to all existing improvements located on the Property
and (to the extent any such plans and specifications have been prepared and are
the property of Assignor) all improvements contemplated to be constructed on
the Property, including but not 

 

 

limited: to all traffic,
hydrology, environmental, soils, and related studies and reports; engineering
drawings and materials; architectural renderings, drawings, and plans and
specifications;  all applications,
responses, permits and authorizations with any governmental and
quasi-governmental agencies; all other work product produced by any of Assignor’s
consultants (except for attorney-client privileged documents); and other
similar work and documents pertaining to the Property, it being understood that
the intent of the parties is that any and all non-privileged documents that
pertain in any manner to the development of the Property are being assigned to
Assignee; and

the rights of Assignor
(if any) to the name “the Terrace” (it being acknowledged by Assignee that
Assignor does not have exclusive rights (and in fact may have no rights) to use
such name and Assignor has not registered the same in any manner); and

any guaranties and
warranties in effect with respect to any portion of the Real Property or the
Personal Property as of the date hereof (any transfer fees to be paid by
Assignor); and

any architectural and
engineering drawings and plans which are the property of Assignor pertaining to
any tenant improvements.

2.             Release and Authorization to Work with Assignee. For
purpose of effectuating the assignments to Assignee as set forth in this
agreement, Assignor hereby expressly releases any consultant, engineer,
architect, governmental or quasi-governmental agency, and related persons or
entities (but not any of Assignor’s attorneys) from any confidentiality,
non-competition or exclusive representation requirements with respect to any
communication and on-going work with Assignee, and Assignor expressly
authorizes any such consultant, engineer, architect, governmental or
quasi-governmental agency, and related persons or entities, to represent and
work for or with Assignee with respect to the continuing development of the
Property.

3.             Allocation of Costs and Expenses. Assignor
shall be responsible for all costs and expenses incurred in the preparation of
any Intangible Property up to the Closing Date, and shall indemnify and hold
Assignee harmless therefrom. Assignee shall be responsible for all costs and
expenses incurred in the preparation of any Intangible Property beginning on
and following the Closing Date which have been disclosed by Assignor and
expressly assumed by Assignee, and shall indemnify and hold Assignor harmless
therefrom.

4.    Miscellaneous. This
Assignment and the obligations of the parties hereunder shall survive the
closing of the transaction referred to in the Sale Agreement and shall not be
merged therein, shall be binding upon and inure to the benefit of the parties
hereto, their respective legal representatives, successors and assigns, shall
be governed by and construed in accordance with the laws of the State of Texas
applicable to agreements made and to be wholly performed within said State and
may not be modified or amended in any manner other than by a written agreement
signed by the party to be charged therewith.

5.    Severability. If
any term or provision of this Assignment or the application thereof to any
persons or circumstances shall, to any extent, be invalid or unenforceable, the
remainder of this Assignment or the application of such term or provision to
persons or circumstances other than those as to which it is held invalid or
unenforceable shall not be 

 

 

affected thereby, and
each term and provision of this Assignment shall be valid and enforced to the
fullest extent permitted by law.

6.    Counterparts. This
Assignment may be executed in counterparts, each of which shall be an original
and all of which counterparts taken together shall constitute one and the same
agreement.

IN
WITNESS WHEREOF, the undersigned have executed this
Assignment as of the date first set forth hereinabove.

 

                     ,
Ltd.

 

 

EXHIBIT A

(to Assignment of Intangible Property)

List of Contracts

(service, supply, maintenance, utility and commission
agreements,

and all equipment leases, and guaranties and warranties, if any)

 

 

 

EXHIBIT I

FORM OF NOTICE TO TENANTS

NOTICE OF SALE

(To
Tenants, Regarding Assignment and Assumption of Space Leases)

 

	
  TO:

  	
  [name of tenant]

  [address]

  

 

[DATE]

RE: Notice of Change of Ownership of TERRACE                      ,
City of Austin, Travis County, Texas (the “Property”).

To Whom It May Concern:

You are hereby notified
that [insert name of respective owner]:                     
(“Seller”), the current
owner of the above referenced Property and the current owner of the landlord’s
interest in your lease in the Property, has sold the Property to Harvard
Property Trust, LLC (“New Owner”),
as of the above date. In connection with such sale, Seller has assigned and
transferred its interest in your lease and your security deposit thereunder in
the amount of $                     
(the “Security Deposit”) to
New Owner, and New Owner has assumed and agreed to perform all of the landlord’s
obligations under your lease (including any obligations set forth in your lease
or under applicable law to repay or account for the Security Deposit) from and
after such date. New Owner acknowledges that New Owner has received and is
responsible for the Security Deposit.

Accordingly, (a) all
your obligations under the lease from and after the date hereof, including your
obligation to pay rent, shall be performable to and for the benefit of New
Owner, its successors and assigns, and (b) all the obligations of the
landlord under the lease, including any obligations thereunder or under
applicable law to repay or account for the Security Deposit, shall be the
binding obligation of New Owner and its successors and assigns. Unless and
until you are otherwise notified in writing by New Owner, the address of New
Owner for all purposes under your lease is:

ClayDesta, L.P., will
continue to manage your building and there should be no significant changes in
the day-to-day operation of the Property.

[Name of
Purchaser] Harvard Property Trust, LLC

 

 

[NAME OF PROPERTY OWNER]

 

New Owner
acknowledges and accepts the matters state above.

 

[PURCHASER / ASSIGNEE:]

                     ,
LP

     By:

            By:

 

 

EXHIBIT J

FORM OF SELLER’S NON-FOREIGN
CERTIFICATE

(Separate for each
Seller)

NON-FOREIGN CERTIFICATE

Section 1445
of the Internal Revenue Code provides that a transferee of a United States real
property interest must withhold tax if the transferor is a foreign person. For
U.S. tax purposes (including Section 1445), the owner of a disregarded
entity (which has legal title to a U.S. real property interest under local law)
will be the transferor of the property and not the disregarded entity. To
inform [Purchaser]                      ,
a Texas limited partnership (the “Transferee”) that withholding of tax is not
required upon the disposition of a United States real property interest by                      
(the “Seller”), the undersigned hereby certifies the following on
behalf of Seller:

1.    Seller is not a foreign corporation, foreign
partnership, foreign trust, or foreign estate (as those terms are defined in the
Internal Revenue Code and Income Tax Regulations); and

2.    Seller is not a disregarded entity as
defined in Section 1.1445-2(b)(2)(iii) of the Income Tax
Regulations issued under the Internal Revenue Code.

3.    Seller’s U.S. employer tax identification
number is                     ;
and

Seller’s office
address is ___________________________________________

__________________________________________.

Seller understands
that this certification may be disclosed to the Internal Revenue Service by
transferee and that any false statement contained herein could be punished by
fine, imprisonment, or both.

The undersigned
declares that the undersigned has examined this certification and to the best
of the undersigned’s knowledge and belief it is true, correct and complete, and
the undersigned further declares that such party has authority to sign this
document on behalf of Seller.

 

 

	
  Certified, sworn to and subscribed before me
  this      day of
                       ,
  2006. 

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Notary Public 

  	
   

  
	
   

  	
   

  
	
  My Commission Expires: 

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (NOTARIAL SEAL)

  	
   

  

 

 

 

EXHIBIT K

LIST OF PENDING LITIGATION

Desta Five Partnership,
Ltd., vs. Kone, Inc., Cause No. 403947, 201st Judicial District, Travis County, Texas.

 

 

EXHIBIT L

MEMORANDUM OF AGREEMENT

This Memorandum of
Agreement is entered into by and between Desta Five Partnership, Ltd. (“Desta”)
and Harvard Property Trust, LLC (“Harvard”), pursuant to that certain Purchase
and Sale Agreement dated May     , 2006, and is as
follows:

Desta commissioned
the creation of the Phoenix IV Sculpture which was erected on Lot 1, Block E,
The Terrace, Section Six, City of Austin, Travis County (the “Property”),
near the northeast corner of the intersection of Via Fortuna Drive and Tuscan
Terrace.

Desta conveyed the
Property to Harvard by Special Warranty Deed dated                      ,
2006.

Harvard hereby
covenants and agrees that Harvard, its successors and assigns shall not remove
all or any part of the Phoenix IV sculpture from its location on the Property
prior to                      ,
2031.

Harvard further
agrees such agreement is hereby imposed as a covenant on the Property. Harvard
may remove such Sculpture if damaged and not susceptible to repair upon the
payment of costs deemed reasonable by Harvard.

Executed by the
undersigned effective as of                      ,
2006.

	
  

  	
  Desta Five Partnership, Ltd.

  
	
   

  	
  By: 

  	
  Desta Five Development Corp.

  
	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
   

  	
  L. Paul Latham

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Harvard Property Trust, LLC

  
	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
  President

  

 

[ATTACH NOTARY
ACKNOWLEDGMENT]

 

 

 

EXHIBIT M

COMMISSION AGREEMENTS

 

	
  Suite

  	
   

  	
  Tenant (per rent roll)

  	
   

  	
  Broker

  	
   

  	
  Agreement Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Terrace I

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  100

  	
   

  	
  American Academy of Nurse Practitioners

  	
   

  	
  Quick & Co.

  	
   

  	
  Signed Agreement will be provided

  
	
  130

  	
   

  	
  Porter Rogers Dahlman

  	
   

  	
  Unknown

  	
   

  	
  Lease renewed at least once w/o commission

  
	
  135

  	
   

  	
  Terrace Fitness Center

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  150

  	
   

  	
  Trellis Services

  	
   

  	
  Unknown

  	
   

  	
  Lease renewed at least once w/o commission

  
	
  200

  	
   

  	
  The CIT Group

  	
   

  	
  Unknown

  	
   

  	
  Lease renewed at least once w/o commission

  
	
  210

  	
   

  	
  Terrace Maint Office

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  215

  	
   

  	
  AccuMed Home Health

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  220

  	
   

  	
  WMA Ferrill & Zielinski

  	
   

  	
  Capital Leasing

  	
   

  	
  Signed Agreement will be provided

  
	
  240

  	
   

  	
  National Bankcard

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  260

  	
   

  	
  CWA

  	
   

  	
  Jackson & Cooksey

  	
   

  	
  Partially executed agreement will be provided

  
	
  300

  	
   

  	
  McCall & Ritchie

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  330

  	
   

  	
  Cornerstone Mortgage

  	
   

  	
  Unknown

  	
   

  	
  Lease renewed at least once w/o commission

  
	
  320

  	
   

  	
  Kronos Inc.

  	
   

  	
  Trammell Crow

  	
   

  	
  Signed Agreement will be provided

  
	
  340

  	
   

  	
  CARad Inc.

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  360

  	
   

  	
  Swartz & Brough

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  400

  	
   

  	
  Mann Eye Institute

  	
   

  	
  Unknown

  	
   

  	
  Lease renewed at least once w/o commission

  
	
  410

  	
   

  	
  Jenesta Sturrup

  	
   

  	
  Unknown

  	
   

  	
  Lease renewed at least once w/o commission

  
	
  420

  	
   

  	
  Provident Life

  	
   

  	
  Trammell Crow

  	
   

  	
  Signed Agreement will be provided

  
	
  430

  	
   

  	
  Philadelphia Insurance

  	
   

  	
  Trammell Crow

  	
   

  	
  Signed Agreement will be provided

  
	
  450

  	
   

  	
  ARC Systems

  	
   

  	
  Herron & Williams

  	
   

  	
  Partially executed agreement will be provided

  
	
  roof

  	
   

  	
  Voicestream (T-Mobile)

  	
   

  	
  None

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Terrace II

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  100

  	
   

  	
  Colliers Oxford

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  200

  	
   

  	
  Authoria, Inc.

  	
   

  	
  CRESA

  	
   

  	
  Signed Agreement will be provided

  
	
  300

  	
   

  	
  Newgistics, Inc.

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  301

  	
   

  	
  Fluent, Inc.

  	
   

  	
  CB Richard Ellis

  	
   

  	
  Signed Agreement will be provided

  
	
  400

  	
   

  	
  Tejas (Westech)

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  500

  	
   

  	
  Sigmatel

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  roof

  	
   

  	
  Sprint PCS

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  roof

  	
   

  	
  Verizon Wireless

  	
   

  	
  None

  	
   

  	
  N/A

  

 

 

 

	
  Terrace V

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  100

  	
   

  	
  Cirrus Logic, Inc.

  	
   

  	
  NAI Commercial

  	
   

  	
  Signed Agreement will be provided

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Terrace VII

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  100

  	
   

  	
  Vinson & Elkins

  	
   

  	
  Trammell Crow

  	
   

  	
  Signed Agreement will be provided

  
	
  400

  	
   

  	
  Facility Insurance Corp.

  	
   

  	
  Hill Partners

  	
   

  	
  Partially executed agreement will be provided

  
	
  450

  	
   

  	
  North Star Consultants

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  500

  	
   

  	
  Gjerset & Lorenz

  	
   

  	
  CB Richard Ellis

  	
   

  	
  Partially executed agreement will be provided

  
	
  501

  	
   

  	
  Texas Legal Protection

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  525

  	
   

  	
  ClayDesta, L.P.

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  550

  	
   

  	
  Bank of America

  	
   

  	
  Trammell Crow

  	
   

  	
  Signed Agreement will be provided

  
	
  600

  	
   

  	
  Sheshunoff Management

  	
   

  	
  Staubach Company

  	
   

  	
  Signed Agreement will be provided

  
	
  650

  	
   

  	
  Morgan Keegan

  	
   

  	
  Trammell Crow

  	
   

  	
  Signed Agreement will be provided

  
	
  675

  	
   

  	
  Matinee Media

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  roof

  	
   

  	
  Bank of America

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  roof

  	
   

  	
  Cingular

  	
   

  	
  None

  	
   

  	
  N/A

  
	
  roof

  	
   

  	
  Nextel Communications

  	
   

  	
  None

  	
   

  	
  N/A

  

 

 

 

EXHIBIT N

MANAGEMENT
AGREEMENT

[To be attached by Amendment]

 

 

EXHIBIT O

DEVELOPMENT
AGREEMENT

[To be attached by Amendment]

 

 

EXHIBIT P

PROMISSORY
NOTE

[To be attached by Amendment]

 

 

EXHIBIT Q

DEED OF TRUST

[To be attached by Amendment]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]