Document:

exv10w72

 

Exhibit 10.72

FIRST AMENDMENT TO CREDIT AGREEMENT

AND OTHER CREDIT DOCUMENTS

     This FIRST AMENDMENT TO CREDIT AGREEMENT (this “First Amendment”) is made as of this ___day
of November, 2006 by and among Hines REIT Properties, L.P., a Delaware limited partnership, having
an address at do Hines Interests Limited Partnership, 2800 Post Oak Blvd., Suite 5000, Houston,
Texas 77056, as borrower (“Borrower”), and KEYBANK NATIONAL ASSOCIATION, a national banking
association, with a principal place of business at 127 Public Square, Cleveland, Ohio 44114
(“KeyBank”), in its capacity as administrative agent (“Administrative Agent”) for itself and the
other lending institutions which are parties to the Credit Agreement (as hereinafter defined), as
amended by this First Amendment (each, a “Lender” and collectively the “Lenders”), and Lender, and
solely with respect to paragraph 22 hereof, Hines Real Estate Investment Trust, Inc., a Maryland
corporation (“Guarantor”).

     WHEREAS, Borrower, Administrative Agent and Lenders, entered into that certain Credit
Agreement dated as of September 9, 2005 (the “Credit Agreement”), relating to a certain
$140,000,000 loan made by Lenders to Borrower (the “Loan”) evidenced by promissory notes issued by
Borrower to Lenders on September 9, 2005 (the “Existing Notes”); and

     WHEREAS, Borrower has informed the Administrative Agent that the Borrower has requested the
Commitment Increase (as defined in the Credit Agreement) for the entire Additional Loan Amount (as
defined in the Credit Agreement) and has requested the Lenders reduce the interest rate for the
Loan, amend the recourse debt limitation, extend the initial maturity date of the Loan and provide
additional borrowing capacity under the Credit Agreement; and

     WHEREAS, Lenders have agreed to reduce the interest rate for the Loan, amend the recourse debt
limitation, extend the maturity date of the Loan and increase the Additional Loan Amount (as
defined in the Credit Agreement), subject to the terms and conditions set forth herein; and

     WHEREAS, concurrently with the execution and delivery of this First Amendment, Borrower shall
issue replacement promissory notes payable to each existing Lender which shall replace the Existing
Notes and to new Lenders, each of which is a party to the Joinder Agreement, dated the date hereof,
with respect to the Loan, new promissory notes, such replacement and new promissory notes (the
“Replacement Notes”) being in the aggregate stated principal amount of $250,000,000.

     NOW, THEREFORE, for Ten Dollars ($10.00) and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the undersigned parties hereby agree as
follows:

     1. Capitalized terms used but not defined herein shall have the meanings ascribed to such
terms in the Credit Agreement.

     2. The Lenders acknowledge that the Borrower has requested that the Administrative Agent
increase the aggregate Commitments under the Facility by $110,000,000.00 and that the
Administrative Agent has received additional commitments from Lenders willing to participate

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in such requested Commitment Increase. Borrower acknowledges that it has satisfied the
requirements of Sections 2.1(e)(v) and (vi) of the Credit Agreement on or prior to the date hereof.

     3. Section 2.1(e) of the Credit Agreement is hereby amended after the exercise of the
Commitment Increase provided herein by deleting the reference to “$110,000,000.00” and replacing it
for future Commitment Increases with “$100,000,000.”

     4. Section 2.2 of the Credit Agreement is hereby amended by deleting the reference to
“September 8, 2008” and replacing it with “October 31, 2009.”

     5. Section 7.4(b) of the Credit Agreement is hereby deleted in its entirety and replaced with
the following:

     “(b) provide any completion or other guarantee either directly or indirectly (including,
without limitation, through a joint venture) in excess of 2.5% of Total Asset Value in the
aggregate.”

     6. The definition of Applicable Margin in Exhibit A of the Credit Agreement is hereby
deleted in its entirety and replaced with the following:

“Applicable Margin means (a) 125 basis points if the ratio
of Funded Debt to Total Asset Value is equal to or less than fifty
percent (50%), (b) 137.5 basis points if the ratio of Funded Debt to
Total Asset Value is equal to or less than fifty-five percent (55%),
(c) 150 basis points if the ratio of Funded Debt to Total Asset
Value is equal to or less than sixty percent (60%), (d) 175 basis
points if the ratio of Funded Debt to Total Asset Value is equal to
or less than sixty-five percent (65%) and (e) 200 basis points if
the ratio of Funded Debt to Total Asset Value is equal to or less
than seventy percent (70%). The Applicable Margin shall be
calculated in connection with the delivery of and included in the
certificate delivered pursuant to Section 7.2.6 hereof, with any
change in the Applicable Margin taking effect on the first day of
the first month immediately following the date of delivery to
Administrative Agent of such certificate.”

     7. The aggregate principal amount of the promissory notes of “One Hundred Forty Million
Dollars ($140,000,000)” set forth in Section 3.1(ii) is hereby deleted and replaced with “Two
Hundred Fifty Million Dollars ($250,000,000)”.

     8. The definition of “Additional Loan Amount” in Exhibit A to the Credit Agreement is
hereby amended by deleting the reference to “One Hundred Ten Million Dollars ($110,000,000.00)” and
replacing it with “One Hundred. Million Dollars ($100,000,000.00).”

     9. The definition of “Maximum Loan Amount” in Exhibit A to the Credit Agreement is hereby
amended by deleting both references to “One Hundred Forty Million

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Dollars ($140,000,000)” and replacing them with “Two Hundred Fifty Million Dollars
($250,000,000).”

     10. The definition of “Notes” in Exhibit A to the Credit Agreement is hereby deleted
in its entirety and replaced with the following:

Notes means the promissory notes payable to each of the
Lenders in the aggregate principal amount of Two Hundred Fifty
Million and 00/100 Dollars ($250,000,000.00), substantially in the
form of Exhibit F-1 and Exhibit F-2 attached hereto,
with the term “Note” meaning any one of the Notes, as the same may
be amended, restated, replaced, supplemented or otherwise modified
from time to time. Upon receipt of a Replacement Note each existing
Lender shall return its original Existing Note to the Borrower.

     11. Exhibit E to the Credit Agreement is hereby deleted and replaced with Exhibit
E attached hereto.

     12. The maturing date in the Existing Notes is hereby amended by deleting “September 8, 2008”
and replacing it with “October 31, 2009.”

     13. Any and all references in the Credit Documents to “$140,000,000.00” shall be replaced with
a reference to “$250,000,000.00.”

     14. Any and all existing references in the Credit Documents to “$250,000,000.00” shall be
replaced with a reference to “$350,000,000.00.”

     15. Any and all references to the Existing Notes and the Credit Agreement in the Existing
Notes and the Credit Documents shall be deemed to refer to the Replacement Notes and the Credit
Agreement as amended by this First Amendment and as may be further amended from time to time in
accordance with the terms of the Replacement Notes and the Credit Agreement respectively.

     16. Borrower shall pay to Administrative Agent on or before the date of this First Amendment
additional fees as set forth in the fee letter of even date herewith.

     17. All of the terms and conditions of the Credit Documents (except as modified hereby) shall
remain in full force and effect, and Borrower hereby confirms and ratifies all of the covenants
contained in the Credit Agreement and the other Credit Documents in all respects as of the date
hereof (except for those which expressly relate to an earlier date).

     18. Borrower represents and warrants to the best of its knowledge and belief that no event has
occurred (or failed to occur) which constitutes (or the failure of which to occur would
constitute), or solely with the passage of time or giving of notice (or both) would constitute, an
Event of Default under the Credit Agreement or any other Credit Document.

     19. The Borrower represents, warrants and agrees that it has no claims, defenses,
counterclaims or offsets against the Administrative Agent and the Lenders in connection with the

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Loan or any Credit Document, and to the extent that any such claim, defense, counterclaim or
offset may exist on the date hereof, the Borrower hereby WAIVES and RELEASES the Administrative
Agent and Lenders from same.

     20. This First Amendment shall take effect as a sealed instrument under the laws of The
Commonwealth of Massachusetts as of the date first above written.

     21. Guarantor is executing this First Amendment for the sole purpose of acknowledging and
agreeing that the Guaranty shall guarantee payment of the Borrower Obligations under the Credit
Documents as amended by this First Amendment.

     22. This First Amendment may be executed in two or more counterparts each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.

[Signature Pages Follow.]

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     IN WITNESS WHEREOF, this First Amendment has been executed and delivered as an instrument
under seal as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HINES REIT PROPERTIES, L.P.,

a Delaware limited partnership
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Hines Real Estate Investment Trust, Inc.,

a Maryland corporation, its General Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Sherri W. Schugart	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Sherri W. Schugart 	 	 
	 

	 	 	 	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GUARANTOR: (solely with respect to paragraph 21)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HINES REAL ESTATE INVESTMENT TRUST, INC.,

a Maryland corporation, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Sherri W. Schugart
	 

	 	 	 	 
	 	 	 
	 

	 	 	 	Name: Sherri W. Schugart
	 

	 	 	 	Title:  Chief Financial Officer
	 
	 	 	 	 	 	 	 	 
	 	 	ADMINISTRATIVE AGENT:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION,

as Administrative Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Authorized Signatory
	 

	 	 	 	 
	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ISSUING LENDER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION,

as Issuing Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Authorized Signatory
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

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	 	 	LENDERS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	AMEGY BANK NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	By:
	 	/s/ Authorized Signatory
	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	COMMERZBANK AG, NEW YORK AND
GRAND CAYMAN BRANCHES	 	 
	 	 		 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Authorized Signatory	 	 
	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Authorized Signatory	 	 
	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	CAPMARK FINANCING SERVICES, INC.,	 	 
	 	 	SUCCESSOR TO GMAC COMMERCIAL MORTGAGE CORPORATION,

a California corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Authorized Signatory	 	 
	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION,
as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Authorized Signatory	 	 
	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

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	 	 	LASALLE BANK NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Authorized Signatory	 	 
	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	SOVEREIGN BANK	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Authorized Signatory	 	 
	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Authorized Signatory	 	 
	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

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EXHIBIT E

KeyBank National Association — $35,000,000.00

Eurohypo A.G., New York Branch — $32,500,000.00

LaSalle Bank National Association — $32,500,000.00

Sovereign Bank — $32,500,000.00

Wachovia Bank, National Association — $32,500,000.00

Capmark Finance, Inc. — $25,000,000.00

Raymond James Bank, S.B. $25,000,000.00

Emigrant Bank — $25,000,000.00

Amegy Bank National Association — $10,000,000.00

8exv10w73

 

Exhibit 10.73

 

REAL ESTATE PURCHASE AGREEMENT

By and Between

 

SELLERS

and

HINES REIT DAYTONA CAMPUS LLC OR ASSIGNS

BUYER

Dated:
November 28, 2006

 

 

 

REAL ESTATE PURCHASE AND SALE AGREEMENT

     THIS REAL ESTATE PURCHASE AGREEMENT (“Agreement”) is made and entered into effective November
___, 2006 (“Date of the Agreement”), by and between the undersigned sellers, consisting of Daytona
Building Sellers, RCC Building Sellers, and Daytona-RCC Land Sellers, all of whom are Washington
limited liability companies (individually a “Seller” and together “Sellers”) and Hines REIT Daytona
Campus LLC, a Delaware limited liability company and/or its assigns (“Buyer”).

W I T N E S S E T H

     WHEREAS, Daytona Building Sellers are the owners of a building of approximately 211,731 square
feet (“DNW Building”), on land leased from Daytona-RCC Land Sellers, which land is legally
described on Exhibit A1 attached (the “Land”);

     WHEREAS, RCC Building Sellers are the owners of Buildings A and B of approximately 38,784
square feet (“Buildings A and B”), on the Land that it leases from Daytona Building Sellers; and

     WHEREAS, Daytona Building Sellers wish to sell the DNW Building and their subground lease with
RCC Building Sellers, RCC Building Sellers wish to sell Buildings A and B subject to the subground
lease with Daytona Building Sellers, and Daytona-RCC Land Sellers desire to sell the Land subject
to the ground lease with Daytona Building Sellers, and Buyer desires to purchase the Land, the DNW
Building, and Buildings A and B, together with all easements, rights of way, appurtenances and
other rights and benefits thereunto belonging, upon the terms, covenants and conditions hereinafter
provided.

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
hereinafter contained, it is hereby mutually agreed by and between Sellers and Buyer as follows:

     1. Agreement to Sell and Purchase. Sellers hereby agree to sell and convey to Buyer,
and Buyer hereby agrees to purchase and accept from Sellers, for the Purchase Price (hereinafter
defined) and upon and subject to the terms and conditions hereinafter set forth, all of Sellers’
respective interests in the following described property (hereinafter referred to collectively as
the “Property”):

	 	(a)	 	the Land legally described on Exhibit A1;
	 
	 	(b)	 	the DNW Building, legally described on Exhibit B1; Buildings A and B, legally
described on Exhibit B2, related facilities situated on the Land, and all other
improvements situated on the Land (the “Buildings”);

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	 	(c)	 	all of the rights and appurtenances pertaining to the Land and the Buildings,
including all right, title and interest of Sellers in and to adjacent streets, alleys,
easements and rights-of-way;
	 
	 	(d)	 	all of the furniture, furnishings, fixtures, appliances, equipment, machinery,
names and other items of tangible and intangible personal property owned by Sellers
situated upon or used in connection with the Land and the Buildings, if any;
	 
	 	(e)	 	that certain lease agreement dated May 9, 2000, as amended, between Daytona
Northwest, LLC, as Landlord, and Microsoft Corporation, as tenant, covering the DNW
Building, those certain lease agreements and those certain operating lease agreements
pertaining to Buildings A and B described on Schedule 1, and that certain ground lease
and subground lease both described on Schedule 1 (together, the “Leases”), and all
security, advance rental and other deposits, if any, made under the Leases;
	 
	 	(f)	 	all site and as-built plans, surveys, soil and substrata studies, architectural
renderings, plans and specifications, engineering plans and studies, floor plans,
landscape plans and other plans, diagrams or studies of any kind, if any, now or
hereafter in the possession of Sellers which relate to the Property;
	 
	 	(g)	 	all operating manuals, marketing brochures, market studies, tenant data sheets
and other books, records and materials of any kind now or hereafter in the possession
or control of Sellers required in connection with the current, continuing, or prior
ownership, operation and management of the Improvements;
	 
	 	(h)	 	all of Sellers’ rights under any leases covering leased equipment, all
licenses, permits, logos, warranties, trade lists, tenant lists, trademarks, mailing
lists, utility deposits and arrangements, trade names and telephone exchanges related
to the ownership, operation and management of the Property;
	 
	 	(i)	 	maintenance records, service contracts and other contracts or documents (the
“Service Contracts”) to which each Seller is a party that relate to the operation of
the Property; and
	 
	 	(j)	 	such other rights, interests and properties as may be specified in this
Agreement to be sold, transferred, assigned or conveyed by Sellers to Buyer.

Sellers reserve and retain all claims for the refund of sewer and traffic mitigation fees
paid by Sellers’ predecessors in interest prior to the Closing Date; provided, no such claim
or refund shall adversely affect Buyer’s capacity to operate the Property in the same manner
operated immediately preceding the Closing. Buyer agrees to reasonably cooperate (at no
cost or expense to Buyer) in Sellers’ efforts to collect such fee refunds, including signing
documents that may be required to assign the refunds to Sellers.

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     2. Condition of Property.

     (a) As Is Sale. Buyer specifically acknowledges and agrees that (i) Buyer will
have before the Date of Closing (as hereinafter defined), to the extent desired and deemed
consistent with good commercial practice and at Buyer’s sole cost and expense, completed an
investigation and inspection of the Property including, without limitation, such
investigations to determine whether or not Buyer has the necessary governmental approvals to
utilize the Property for Buyer’s proposed use, investigations regarding lot line/boundary
line adjustments affecting the Property and compliance/non-compliance of the Property with
applicable setback requirements (including, without limitation, side yard setbacks), such
investigations to determine whether or not the necessary utilities are in order to support
Buyer’s proposed use, such soils, engineering and environmental studies as may be necessary
to assess the condition of the Property and the suitability of the Property for Buyer’s
intended uses, and inspection(s) of the structure, roof, heating, ventilation, air
conditioning, electrical and plumbing systems and other components of the Building, the
parking areas and other common areas located in, on or about the Property (“Property
Inspection”), (ii) Sellers are selling and Buyer is purchasing the Property on an “AS IS
WITH ALL FAULTS” basis, and (iii) except for the representations and warranties of Sellers
expressly set forth in this Agreement or in the agreements, documents and instruments to be
delivered by Sellers at Closing, Buyer is not relying on any representations or warranties
of any kind whatsoever, express or implied, from any Sellers, its employees, directors,
officers, agents, consultants, contractors, subcontractors or brokers as to any matters
concerning the Property including, without limitation, any information contained in any
report, plan or other written material including, without limitation, the environmental
information given by Sellers to Buyer with respect to the Property.

     Without in any way limiting the generality of the preceding paragraph, in entering into
this Agreement and purchasing the Property, Buyer hereby acknowledges and agrees that except
for the representations and warranties of Sellers expressly set forth in this Agreement or
in the agreements, documents and instruments to be delivered by Sellers at Closing, Sellers
have not made, do not hereby make and will not hereafter make any representations or
warranties or guarantees, whether express or implied, with respect to the Property or the
physical condition thereof including, without limitation:

     (I) THE QUALITY, NATURE, ADEQUACY AND PHYSICAL CONDITION OF THE PROPERTY.

     (II) THE QUALITY, NATURE, ADEQUACY AND PHYSICAL CONDITION OF SOILS, GEOLOGY AND
GROUNDWATER.

     (III) THE EXISTENCE, QUALITY, NATURE, ADEQUACY AND PHYSICAL CONDITION OF
UTILITIES SERVICING THE PROPERTY.

     (IV) THE DEVELOPMENT POTENTIAL OF THE PROPERTY, AND THE PROPERTY’S USE,
HABITABILITY, MERCHANTABILITY,

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FITNESS, SUITABILITY, VALUE OR ADEQUACY FOR ANY PARTICULAR PURPOSE.

     (V) THE ZONING OR OTHER LEGAL STATUS OF THE PROPERTY OR ANY OTHER PUBLIC OR
PRIVATE RESTRICTIONS ON USE OF THE PROPERTY.

     (VI) THE COMPLIANCE OF THE PROPERTY OR ITS OPERATION WITH ANY APPLICABLE CODES
AND LAWS OR WITH THE RESTRICTIONS OF ANY GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY
OR OF ANY OTHER PERSON OR ENTITY.

     (VII) THE PRESENCE OF HAZARDOUS SUBSTANCES (AS HEREINAFTER DEFINED) ON, UNDER,
IN OR ABOUT THE PROPERTY OR THE ADJOINING OR NEIGHBORING PROPERTY OR THE EXISTENCE
OF ANY UNDERGROUND TANKS, CONTAINERS OR CONDUITS IN, ON OR ABOUT THE PROPERTY. THE
TERM “HAZARDOUS SUBSTANCES” SHALL MEAN ANY CHEMICAL, SUBSTANCE, WASTE, MATERIAL, GAS
OR EMISSION WHICH IS DEEMED HAZARDOUS, TOXIC, A POLLUTANT OR A CONTAMINANT UNDER ANY
ENVIRONMENTAL LAWS (AS HEREINAFTER DEFINED), OR WHICH HAS BEEN SHOWN TO HAVE
SIGNIFICANT ADVERSE EFFECTS ON HUMAN HEALTH OR THE ENVIRONMENT. “HAZARDOUS
SUBSTANCES” SHALL INCLUDE, WITHOUT LIMITATION, PETROLEUM AND PETROLEUM PRODUCTS,
ASBESTOS, CHLOROFLUOROCARBONS, RADON GAS AND POLYCHLORINATED BIPHENYLS. THE TERM
“ENVIRONMENTAL LAW(S)” SHALL MEAN ALL STATUTES, ORDINANCES, BYLAWS, RULES AND
REGULATIONS, EXECUTIVE ORDERS AND OTHER ADMINISTRATIVE ORDERS, JUDGMENTS, DECREES,
INJUNCTIONS AND OTHER JUDICIAL ORDERS OF OR BY ANY GOVERNMENTAL AUTHORITY, NOW OR
HEREAFTER IN EFFECT, RELATING TO POLLUTION OR PROTECTION OF HUMAN HEALTH OR THE
ENVIRONMENT INCLUDING, WITHOUT LIMITATION, EMISSIONS, DISCHARGES, RELEASES OR
THREATENED RELEASES OF HAZARDOUS SUBSTANCES, OR THE MANUFACTURE, PROCESSING,
DISTRIBUTION, USE, TREATMENT, STORAGE, DISPOSAL, TRANSPORT OR HANDLING OF HAZARDOUS
SUBSTANCES.

     (VIII) ACCESS RIGHTS TO AND FROM THE PROPERTY.

     (IX) THE CONDITION OF TITLE OF THE PROPERTY.

     (X) THE ECONOMICS OF THE OPERATION OF THE PROPERTY.

5

 

     (XI) THE QUALITY OF ANY LABOR AND MATERIALS USED IN ANY IMPROVEMENTS ON THE
PROPERTY.

     (XII) THE LEASES, SERVICE CONTRACTS, AND OTHER AGREEMENTS AFFECTING THE
PROPERTY.

     The provisions of this Paragraph 2(a) shall survive the Date of Closing.

     (b) Release. Buyer, on behalf of itself and its successors and assigns, waives
Buyer’s right to recover from, and forever releases and discharges, each Seller, and each
Seller’s affiliates, shareholders, employees, directors and officers, for, from and against
any and all demands, claims, legal or administrative proceedings, losses, liabilities,
damages, penalties, fines, liens, judgments, costs or expenses whatsoever (including,
without limitation, attorneys’ fees and court costs), whether direct or indirect, known or
unknown, foreseen or unforeseen, that may arise on account of or in any way be connected
with the Property, the physical condition of the Property, or any law or regulation
applicable thereto including, without limitation, Environmental Laws; provided, however,
this release shall not discharge claims arising against Sellers for breach of their
Paragraph 4(a) representations asserted within the survival period or arising against
Sellers under the agreements, documents and instruments to be delivered by Sellers at
Closing. The provisions of this Paragraph 2(b) shall survive the Date of Closing.

     3. Purchase Price, Deposit of Earnest Money and Disposition of Earnest Money.

     (a) Purchase Price. The purchase price to be paid by Buyer to Sellers for
their respective interests in the Property is Ninety-Nine Million and No/100 Dollars
($99,000,000.00) (“Purchase Price”), which the parties agree is to be allocated as follows:

	 	(i)	 	To Land subject to the ground lease $
               TDB               
	 
	 	(ii)	 	To Daytona Building, together with the ground
lease and subject to the subground lease $
               TDB               
	 
	 	(iii)	 	To RCC Buildings, together with the subground
lease $
               TDB               

The foregoing allocation shall be completed by Sellers and communicated to Buyer prior to
expiration of the Contingency Period. The Purchase Price is to be paid in lawful money of
the United States on the Date of Closing (hereinafter defined) by federal funds wire
transfer of immediately available funds to the accounts (as designated by Sellers) of or for
the benefit of Sellers.

     (b) Deposit of Earnest Money.

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     (i) Concurrently with the execution and delivery of this Agreement by Buyer,
Buyer shall deposit with LandAmerica Commercial Services, 601 Union Street, Suite
1100, Seattle WA 98101 (“Title Company”) the sum of Five Million and No/100 Dollars
($5,000,000.00) representing the first deposit of earnest money paid hereunder by
Buyer (“Initial Deposit”). A second deposit in the amount of Three Million and
No/100 Dollars ($3,000,000.00) (“Second Deposit”) shall be payable by Buyer and
deposited with the Title Company within two (2) business days of expiration of the
Contingency Period (hereinafter defined) if Buyer does not exercise its right to
terminate the Agreement in accordance with paragraph 5(c) hereof. The Initial
Deposit and Second Deposit, together with all interest earned thereon, are
collectively referred to herein as the “Earnest Money.”

     (ii) The Earnest Money shall be held in escrow by the Title Company, as escrow
agent, with instructions to disburse according to the terms, covenants and
conditions of this Agreement. The Earnest Money shall be deposited in an
interest-bearing account in a federally insured banking institution, with the
interest earned thereon to be retained by Sellers, applied to the Purchase Price or
returned with the Earnest Money, as the case may be, all according to the terms,
covenants and conditions of this Agreement.

     (iii) The parties acknowledge that the Title Company, in its capacity as escrow
agent, (A) is acting solely as a stakeholder at their request and for their
convenience; (B) shall not be deemed to be the agent of either of the parties; and
(C) shall not be liable to either of the parties for any act or omission on its part
unless taken or suffered in bad faith, in willful disregard of this Agreement, or
involving negligence.

     (iv) If for any reason the Closing (as hereinafter defined) does not occur and
Sellers or Buyer makes a written demand on the Title Company for payment of the
Earnest Money, the Title Company shall give written notice of such demand to the
other party. If the Title Company does not receive a written objection from the
other party to the proposed payment within ten (10) days after the giving of such
notice, the Title Company shall be authorized to pay the Earnest Money (with the
interest earned thereon) to the party making the demand. If the Title Company
receives such written objection within the ten (10) day period, the Title Company
shall continue to hold the Earnest Money until otherwise directed by joint written
instructions from Sellers and Buyer or until otherwise directed by a court of
competent jurisdiction. Notwithstanding anything to the contrary contained herein,
if Buyer makes written demand for the return of the Earnest Money at any time prior
to the expiration of the Contingency Period and certifies to the Title Company that
Buyer has complied with its obligations under Paragraph 3(c)(i), then the Title
Company shall immediately return the Earnest Money (together with all interest
earned thereon) to Buyer and
Sellers hereby irrevocably authorize and direct the Title Company to comply

7

 

immediately with such demand without any need to wait for the expiration of the
10-day period described above.

     (v) The Title Company shall acknowledge its agreement to these provisions by
its execution of this Agreement in the space provided following the signatures of
the parties.

     (c) Disposition of Earnest Money.

     (i) If the Closing does not occur, Buyer shall return immediately to Sellers
all materials and other information regarding the Property that Sellers have
provided to Buyer and destroy all photocopies thereof as well provide Sellers with
copies of any and all studies, reports, audits and/or other documentation arising
out of, relating to or resulting from Buyer’s Property Inspection including, without
limitation, environmental and engineering documents and studies. If Buyer
terminates this Agreement in accordance with the terms of this Agreement and
complies with Buyer’s obligations pursuant to the immediately preceding sentence,
Buyer shall then be entitled to the return of the Earnest Money and the interest
earned thereon.

     (ii) If the Closing occurs, Buyer shall receive a credit at Closing against the
Purchase Price in an amount equal to the Earnest Money and the interest earned
thereon (provided that the Title Company delivers the Earnest Money and the interest
earned thereon to Sellers).

     (iii) If a Buyer’s default or a Sellers’ default occurs, Sellers’ and Buyer’s
respective rights concerning the Earnest Money and the interest earned thereon shall
be governed by the terms, covenants and conditions of Paragraph 11 hereof.

     4. Representations, Warranties, Covenants, and Agreements of Sellers and Buyer.

     (a) Sellers’ Representations and Warranties. To induce Buyer to enter into
this Agreement and to consummate the sale and purchase of the Property in accordance
herewith, Sellers represent and warrant to Buyer as of the date hereof and as of the Closing
Date, that:

     (i) No party has been granted by Sellers any license, lease or other right
relating to the use or possession of the Property, or any part thereof, except the
tenants under the Leases. No party has been granted by Sellers any right or option
to acquire any interest in the Property except Microsoft, pursuant to its right of
first refusal under its lease, and Buyer, pursuant to the terms of this Agreement.

     (ii) Each Seller has the full right, power, and authority to sell and convey
the Property interests it owns as provided in this Agreement and to carry

8

 

out its
obligations hereunder; all requisite action necessary to authorize each Seller to
enter into this Agreement and to carry out its obligations hereunder has been or by
the Closing will have been taken; and this Agreement and the documents to be
delivered hereunder by Sellers do not violate any provision of any agreement or
judicial order to which any Seller is a party or to which any Seller or the Property
is subject.

     (iii) Except as set forth in Schedule 4(a), to Sellers’ knowledge the Property
is not in material violation of any laws, statutes, rules, regulations, permits or
ordinances of any governmental unit (federal, state, county, district, municipal,
city or otherwise), including without limitation the Americans With Disabilities
Act, building codes and other rules and regulations concerning the construction or
design of the Buildings, and is not in violation of any laws pertaining to
environmental matters or Hazardous Substances, or of any covenants to which the
Property is subject, except as disclosed on Schedule 4(a). Sellers have not
approved or consented to the Release of any Hazardous Substances on the Property, as
such terms are defined in the Leases.

     (iv) To Sellers’ knowledge, the Property is in good repair and working order,
ordinary wear and tear excepted, and is free from material defects.

     (v) No condemnation proceedings or similar actions or proceedings are now
pending or, to Sellers’ knowledge, threatened against the Property or any part
thereof, except as disclosed on Schedule 4(a).

     (vi) Sellers are not a party to any litigation, arbitration or administrative
proceeding (i) with any present or former tenant of the Property, (ii) with any
person or entity concerning any aspect of the Property or having or claiming any
interest in the Property, or (iii) which affects or questions Sellers’ title to the
Property or Sellers’ ability to perform its obligations under this Agreement.
Sellers know of no presently pending or threatened litigation, arbitration or
administrative proceeding affecting or questioning Sellers’ title to, or use of, the
Property or any part thereof. There is no other litigation relating to the Property
other than litigation that has been turned over to Sellers’ insurance carrier and in
which such carrier has accepted defense of such action without reservation of right
and which litigation is described on Schedule 4(a).

     (vii) Sellers are each duly organized, validly existing and in good standing
under the laws of the state of Washington and are qualified to transact business in
the state in which the Property is situated.

     (ix) No Seller has (A) made a general assignment for the benefit of creditors,
(B) filed any voluntary petition in bankruptcy or suffered the filing of
any involuntary petition by its creditors, (C) suffered the appointment of a
receiver to take possession of all, or substantially all, of its assets, (D)
suffered the attachment or other judicial seizure of all, or substantially all, of
its assets, (E)

9

 

admitted in writing its inability to pay its debts as they come due,
or (F) made an offer of settlement, extension or composition to its creditors
generally.

     (x) The Leases are in full force and effect and to each respective Seller’s
knowledge neither that Seller nor any tenants under any of that Seller’s Leases is
in default of any of the terms and conditions thereunder, nor is there any basis for
any claim by either party to any such agreement that the other party will be in
default after the expiration of any cure period provided for in the Leases. There
are no pending or unpaid leasing commissions or unfunded tenant improvement
allowances owing from Sellers. To each Seller’s respective knowledge, neither that
Seller nor any party to any Service Contracts with that Seller is in default of any
of the terms and conditions thereunder, nor is there any basis for any claim by
either party to any such Service Contracts that the other party will be in default
after the expiration of any cure period provided for in that Service Contract.
There are no service contracts other than those listed on Schedule 4(a)(x).

The representations and warranties of Sellers contained herein shall survive the Closing for
a period of one year following the Closing, and any breach of a representation or warranty
that is first asserted after such one-year period shall not give rise to any claim by Buyer
against Sellers. For purposes of this Agreement and any document delivered at Closing,
whenever the “knowledge” of a Seller or words of similar import are used, they shall be
deemed to refer to the current actual knowledge of William P. Hart and Glenn P. Hart, at the
times indicated, without any independent investigation having been made and without any
implied duty to investigate.

     (b) Sellers’ Operations Pending Closing. From the date hereof through the
Closing Date, Sellers agree as follows:

     (i) Sellers will not enter into any new, renewal, extension, modification or
replacement of any existing Service Contract or enter into any new employment,
maintenance, service, supply or other agreement relating to the Property without the
express written permission of Buyer.

     (ii) Sellers will keep in full force and effect all existing fire, casualty,
liability and extended coverage and other insurance policies naming Sellers as the
insured which are maintained by Sellers and are presently in effect for the
Property, or any portion of the Property.

     (iii) Sellers shall not enter into or record any easement, covenant, license,
permit, agreement or other instrument against the Property or any portion thereof
without Buyer’s prior written consent, which consent shall not be unreasonably
withheld or delayed.

     (iv) Sellers shall give Buyer prompt notice of the institution of any
litigation, arbitration or administrative proceeding of which it becomes aware prior
to the Closing Date involving any Seller or the Property.

10

 

     (v) Sellers shall not enter into any new Leases or any other agreement
affecting the Property, or amend, extend or terminate any Leases or any other
agreement affecting the Property, without the prior written consent of Buyer.

     (c) Buyer’s Representations and Warranties. To induce Sellers to enter into
this Agreement and to consummate the sale and purchase of the Property in accordance
herewith, Buyer represents and warrants to Sellers, as of the date hereof and as of the
Closing Date, that:

     (i) Buyer has the full right, power, and authority to purchase the Property as
provided in this Agreement and to carry out its obligations hereunder; all requisite
action necessary to authorize Buyer to enter into this Agreement and to carry out
its obligations hereunder has been or by the Closing will have been taken; and this
Agreement and the documents to be delivered and actions to be taken by Buyer
hereunder do not violate any provision of any agreement or judicial order to which
any Buyer is a party or is subject.

     (ii) Buyer is not a party to any litigation, arbitration or administrative
proceeding that affects or questions Buyer’s ability to perform its obligations
under this Agreement.

     (iii) Buyer is duly organized, validly existing and in good standing under the
laws of the state of its incorporation or formation, as set forth in the preamble to
this Agreement.

     (iv) Buyer has not (A) made a general assignment for the benefit of creditors,
(B) filed any voluntary petition in bankruptcy or suffered the filing of any
involuntary petition by its creditors, (C) suffered the appointment of a receiver to
take possession of all, or substantially all, of its assets, (D) suffered the
attachment or other judicial seizure of all, or substantially all, of its assets,
(E) admitted in writing its inability to pay its debts as they come due, or (F) made
an offer of settlement, extension or composition to its creditors generally.

The representations and warranties of Buyer contained herein shall survive the Closing for a
period of one year following the Closing, and any breach of a representation or warranty
that is first asserted after such one-year period shall not give rise to any claim by
Sellers against Buyer.

5. Buyer’s Conditions Precedent to Closing. The Closing on Buyer’s obligation to
purchase the Property is made specifically contingent upon the following:

     (a) Buyer’s Due Diligence. Buyer shall have the right for a period ending at
5:00 pm Seattle time on December 13, 2006 (the “Contingency Period”), to inspect the
Property and all books and records maintained by or for Sellers with respect to the Property
and the operation thereof, and to conduct such investigations, tests and studies (including
without limitation environmental investigations, tests and studies, and zoning,

11

 

land use,
and building regulations affecting the Property) as Buyer may deem necessary or appropriate
in its sole discretion in order to determine if Buyer desires to purchase the Property. The
costs and expenses of such inspection, investigations, tests and studies shall be borne
solely by Buyer. To facilitate Buyer’s inspection and review, Sellers agree that within two
(2) business days of Buyer’s acceptance of this Agreement, Sellers shall furnish to Buyer
the following information and documents and Buyer shall promptly acknowledge in writing to
Sellers its receipt of each listed item:

     (i) a current rent roll, certified as true and correct to Sellers’ knowledge,
and copies of existing leases and all amendments thereto;

     (ii) a copy of Sellers’ current title insurance policy;

     (iii) a copy of any environmental or hazardous waste inspection reports in
Sellers’ possession;

     (iv) the ALTA Survey obtained by Sellers at the time of acquisition of the
Property, and any as built surveys and updates to the ALTA Survey in Sellers’
possession or control;

     (v) aerial and premises photographs of the Land and Buildings in Sellers’
possession, if any;

     (vi) a copy of all “as-built” plans and specifications with respect to the
Buildings that Sellers possess, together with a copy of all engineering, soils,
seismic and structural reports, if any, in Sellers’ possession;

     (vii) a list of all personal property, included in the Property, if any;

     (viii) a summary of the historic and current operating costs of the Property,
itemized by year and by month and by account;

     (ix) all assessments, all certificates of occupancy, and relevant permits
required for the operation of the Property;

     (x) maintenance records, Service Contracts and other contracts or documents to
which each Seller is a party that relate to the ownership, operation, repair,
maintenance or leasing of the Property.

Additionally, during the Contingency Period, Sellers shall furnish to Buyer or make
available to Buyer for review at Seller’s offices such other documents, materials and
information in Seller’s possession and relating to the Property as Buyer shall reasonably
request.

All information provided by Sellers to Buyer or obtained by Buyer relating to the Property
in the course of its review shall be treated as confidential information by Buyer

12

 

in accordance with the provisions of Paragraph 30 hereof. Costs to update any such information
shall be borne by Buyer.

     (b) Property Inspection. Buyer, at Buyer’s sole cost and expense, shall have
until the end of the Contingency Period to conduct Buyer’s Property Inspection. Buyer shall
conduct Buyer’s Property Inspection pursuant to the following terms, covenants and
conditions:

     (i) Prior to commencement of Buyer’s Property Inspection, Buyer shall submit to
Sellers, in writing, for Sellers’ approval, which approval shall not be unreasonably
withheld or delayed, Buyer’s proposals for any environmental or physical property
testing. In such regard:

     (A) Buyer shall provide to Sellers at least two (2) business days (or
such longer period as may be required by the lease of any affected tenant)
prior written notice should Buyer elect to take soil and groundwater samples
from the Property. Buyer shall not undertake any such sampling without
first having submitted a sampling plan to Sellers for Sellers’ prior written
approval, which approval shall not be unreasonably withheld or delayed. The
sampling plan must be submitted to Sellers no less than two (2) business
days prior to commencement of any such sampling activities.

     (B) Buyer shall retain split samples for Sellers and shall deliver such
split samples to Sellers’ Representative (as hereinafter defined) within
five (5) days of such samples being taken.

     (C) Buyer shall provide to Sellers copies of all results of such
sampling and other reports conducted by or for Buyer regarding the
environmental condition of the Property, and all drafts thereof reviewed by
Buyer, within five (5) days of receipt of such reports or drafts by Buyer.

     (ii) Buyer’s Property Inspection shall be conducted in a reasonable manner and
shall not disturb the quiet enjoyment of Sellers or Sellers’ tenants.

     (iii) Sellers will have the right to have Sellers’ Representative accompany
Buyer’s Representative (as hereinafter defined) and any other agents or designees of
Buyer while they are in, on or about the Property.

     (iv) Buyer shall provide Sellers two (2) days prior notice (which may be oral)
before accessing the Property to conduct Buyer’s Property Inspection.

     (v) Buyer will restore any damage to the Property as a result of Buyer’s
Property Inspection, at Buyer’s sole cost and expense. Until restoration is
complete, Buyer shall take all steps necessary to insure that any conditions on the
Property created by Buyer’s Property Inspection will not interfere with the

13

 

quiet
enjoyment or operation of the Property or create any dangerous, unhealthy, unsightly
or noisy condition on the Property.

     (vi) Buyer shall indemnify Sellers, and defend and hold harmless Sellers from
and against any and all loss, costs, liability and expense (including reasonable
attorneys’ fees) arising out of any deaths, personal injury or property damage, or
mechanics liens or claims thereof, resulting from or in connection with Buyer’s
Property Inspection or Buyer’s activities in, on or about the Property, except in
each case to the extent arising from the negligence or willful misconduct of Sellers
or their employees or agents; provided, however, Buyer’s indemnity obligation shall
not apply to the costs to remediate, to reporting requirements, or to diminution of
the value of the Property resulting from the discovery of a preexisting condition
(“Buyer’s Indemnification”). Buyer’s Indemnification shall survive the Date of
Closing or any earlier termination of the Agreement.

     (vii) Buyer shall provide Sellers with evidence of workers’ compensation and
liability insurance satisfactory to Sellers to protect Sellers from any liability
with respect to Buyer’s activities in, on or about the Property.

     (viii) Sellers and Buyer shall each designate representatives to act on their
behalf in scheduling and arranging visits to and inspections of the Property. The
representative of Sellers shall be Bill Hart or Glenn Hart, 14850 N.E.
31st Circle, Redmond WA 98052, Telephone: 425-556-9100 (“Sellers’
Representative”), or such other individual to whom Sellers’ Representative delegates
responsibility by written notice to Buyer from time to time. The representatives of
Buyer shall be Ty Bennion, Bill Plantz, Randy Dixon, and Andy Wattula, Telephone:
(206) 839-8400 (“Buyer’s Representative”) or such other individual to whom Buyer’s
Representative may delegate responsibility by written notice to Sellers from time to
time. Each party shall have the right to change its respective representative(s) by
notice to the other party given in accordance with Paragraph 13 hereof.

     (ix) Sellers have made available, and will continue to make available during
the Contingency Period, to Buyer for examination, documentation in Sellers’
possession which directly relates and is relevant to the Property (including
environmental documentation), except for documentation withheld by Sellers to
preserve the work product or attorney/client privileges. Costs to update any
information referred to in this subparagraph (b) shall be borne by Buyer.

     (c) Buyer’s Right to Terminate. If Buyer is not satisfied with the results of
Buyer’s Due Diligence or Property Inspection prior to expiration of the Contingency Period,
and Sellers will not agree to correct any matter to which Buyer objects, then Buyer may
terminate this Agreement by giving written notice of termination to Sellers prior to
expiration of the Contingency Period. If Buyer does not so terminate the Agreement prior to
expiration of the Contingency Period, Buyer shall be conclusively presumed to have waived
its right to terminate. In the event that this Agreement is

14

 

terminated prior to expiration
of the Contingency Period, except as expressly provided otherwise herein, (i) this Agreement
shall become null and void and all Earnest Money paid by Buyer pursuant to Paragraph 3(b)
hereof and the interest earned thereon shall be returned to Buyer (provided that Buyer
complies with the requirements of Paragraph 3(c)(i)), (ii) neither party shall be liable for
damages or have any further duties or obligations hereunder, and (iii) Buyer and Sellers
shall execute such documentation as shall be necessary to relieve each party from all duties
and obligations under this Agreement.

     6. Insurability of Title.

     (a) Within five (5) days of Buyer’s acceptance of this Agreement, Sellers shall deliver
to Buyer a commitment for an owner’s policy of title insurance, together with complete and
legible copies of all exception and other documents or instruments referenced therein
(collectively, the “Commitment”) issued by the Title Company committing to insure Buyer’s
interest in the Property in an amount of insurance of not less than the Purchase Price. On
the Date of Closing the Title Company, if requested by Buyer, shall issue an ALTA Owner’s
Extended Coverage Policy of Title Insurance, or have irrevocably committed and agreed to
issue such policy of title insurance, pursuant to the Commitment, insuring that title to the
Land is vested in Buyer, free and clear of any and all liens, charges and encumbrances,
except (i) the usual printed exceptions and exclusions contained in such policies of title
insurance (other than such exceptions deleted in a policy of extended coverage, to the
extent Buyer requests an ALTA Owner’s Extended Coverage Policy); (ii) the lien of any real
estate taxes and assessments, sewer and water and other utility rents and charges, personal
property taxes, and other similar taxes and charges, which Buyer is obligated to assume and
pay pursuant hereto; (iii) matters identified on the Survey which do not materially and
adversely affect the use and operation of the Property in the manner currently used and
operated; and (iv) the other title matters to which Buyer does not object (or is deemed to
have waived objection) pursuant to Paragraph 6(b) or Paragraph 6(c) below (all of the
matters referred to in clauses (i) through (iv) being hereinafter collectively referred to
as the “Permitted Encumbrances”), and Buyer agrees that it will accept title to the Property
subject to the Permitted Encumbrances, and that the sole evidence of title to the Property
which Sellers is required to deliver to Buyer is the Commitment.

     (b) Within the period expiring on the later of twenty (20) days after the Date of the
Agreement or fifteen (15) days after delivery to Buyer of the Commitment and the Survey
(“Title Review Period”), Buyer shall give Sellers written notice of any objections to the
condition of title as set forth in the Commitment and the Survey (other than with
respect to the Sellers’ Liens [hereinafter defined]). In the event Buyer fails to give a
written notice to Sellers of objections to title within the Title Review Period, Buyer shall
be deemed to have waived any objections to title (other than with respect to Sellers’ Liens)
and to have accepted the condition of title as reflected by the Commitment and Survey. In
the event Buyer gives a written notice to Sellers of objections to title within the Title
Review Period, Sellers shall have the right, but not the obligation, to cure Buyer’s
objections for a period of ten (10) days following receipt by Sellers of notice of

15

 

Buyer’s
objections (the “Cure Period”). If Sellers are unwilling or unable to cure Buyer’s
objections within the Cure Period, Sellers shall so notify Buyer, in which event Buyer shall
either (i) accept title in its current condition, without any adjustment in the Purchase
Price, in which event Buyer’s objections shall be deemed to have been waived for all
purposes, or (ii) terminate this Agreement by written notice to Sellers and the Title
Company, in which event the Earnest Money shall be paid to Buyer. Notwithstanding anything
to the contrary contained herein, Sellers shall satisfy in full, at or prior to Closing, any
and all mortgages, deed of trusts and similar security instruments encumbering all or any
part of the Property, any mechanic’s, materialman’s or similar lien (unless resulting from
any act or omission of Buyer or any of its agents), any delinquent taxes, assessments and
governmental charges affecting all or any portion of the Property, and any judgment of
record affecting the Property (all of the foregoing, collectively, the “Sellers’ Liens”),
and in no event shall any of the Sellers’ Liens be deemed to be Permitted Encumbrances
regardless of whether or not Buyer objects to them.

     (c) If, on the Date of Closing, the Title Company is unwilling to issue the title
insurance policy, or to agree to issue the title insurance policy, as provided in the first
paragraph of this Paragraph 6, without making exception for a lien, charge or encumbrance
which is not a Permitted Encumbrance or accepted by Buyer as provided in the preceding
paragraph, Sellers shall have a period of sixty (60) days thereafter within which to cause
the Title Company to remove said exception or to agree to insure Buyer against any loss or
damage which Buyer may sustain or incur by reason of the existence thereof. During said
sixty (60) day period, the closing of the sale and purchase contemplated hereby shall be
postponed, but upon removal of said exception or agreement by the Title Company to insure
Buyer against any and all loss or damage which Buyer may sustain or incur by reason of the
existence thereof, and within five (5) business days thereafter, the sale and purchase
contemplated hereby shall be closed in accordance with the terms, covenants and conditions
of this Agreement. If, within said sixty (60) day period, the Title Company does not remove
said exception or agree to insure Buyer against any and all loss or damage which Buyer may
sustain or incur by reason of the existence thereof, Buyer, as Buyer’s sole and exclusive
remedy, may elect to either (i) terminate this Agreement, in which event (A) this Agreement
shall become null and void and all Earnest Money paid by Buyer pursuant to Paragraph 3(b)
hereof and the interest earned thereon shall be returned to Buyer (provided that Buyer
complies with the requirements of Paragraph 3(c)(i)), (B) neither party shall be liable for
damages or have any further duties or obligations hereunder, and (C) Buyer and Sellers shall
execute such documentation as shall be necessary to relieve each party from all duties and
obligations under this Agreement; or (ii) consummate the transaction contemplated by this
Agreement in the same manner as if there had been no such exception made by the
Title Company, with no reduction of the Purchase Price, in which event Sellers shall
have no obligation to expend any money or take any further action with regard to such
exception.

     7. Closing Documents.

16

 

     (a) At Closing (except that the Tenant Estoppel Certificates required by Paragraph
7(a)(iii) shall be delivered to Buyer at least two (2) business days prior to Closing)
Sellers shall take the following actions and/or deliver or cause to be delivered the
following items:

     (i) Deed and Bills of Sale. Daytona-RCC Land Sellers shall convey fee
simple title to the Land free and clear of all liens, charges and encumbrances,
except the Permitted Encumbrances, by statutory warranty deed. The other Sellers
shall convey their interests in ground leases, subground leases, and improvements
thereon by deeds and/or assignments and bills of sale in substantially the form
attached hereto as Exhibit D.

     (ii) Non-Foreign Person Certificate. Certifications of non-foreign
status representing as to each Seller that it is not a “foreign person” as defined
in Code Section 1445(f)(3) of the Internal Revenue Code of 1954, as amended.

     (iii) Estoppel Certificates. Tenant Estoppel Certificates from each
tenant of the Property (provided Sellers shall only be obligated to deliver Tenant
Estoppel Certificates from tenants occupying eighty percent (80%) of the net
rentable area in Building A), in substantially the form attached hereto as
Exhibit E, and disclosing no adverse matters.

     (iv) Assignments. Assignments of Leases, Rents, and Deposits in
substantially the form attached hereto as Exhibit F, and Assignments of
Contracts, Permits, Rights, and Intangibles in substantially the form attached
hereto as Exhibit G.

     (v) The ALTA Owner’s Extended Coverage Policy of Title Insurance issued by the
Title Company as provided for herein.

     (vi) Notices to the tenants under the Leases (the “Tenant Notices”), executed
by the respective Sellers, advising the tenants of the sale of the Property to
Buyer, and stating that future rents should be paid as specified by Buyer. The
Tenant Notices shall also be executed by Buyer and shall contain a statement
acknowledging that Buyer has received and is responsible for the tenants’ security
deposits and specifying the exact dollar amount of the deposits, if any.

     (vii) Executed originals of the Leases and Service Contracts assumed by Buyer,
if originals are in Sellers’ possession.

     (viii) Sellers’ agreement to indemnify and hold Buyer harmless of and from all
liabilities, losses, damages, costs, expenses (including reasonable attorneys’ fees)
which the Buyer may suffer or incur by reason of (A) any breach of any of the
Seller’s representations or warranties set forth in this Agreement,
and (B) any act or cause of action occurring or accruing prior to the Closing Date
and arising out of any act or failure to act of the Sellers relating to this
Agreement

17

 

or to the Property (other than any claim arising out of the condition of
the Property, liability for which is limited to the Sellers’ representations and
warranties herein).

     (ix) Keys and electronic pass cards or devices to all entrance doors to, and
equipment and utility rooms and vault boxes located in, the Property, which keys and
electronic pass cards or devices shall be properly tagged for identification;
provided, Buyer shall enter into all required security arrangements with tenants, if
any, prior to receipt of access to tenants’ secured areas.

     (x) The deposits, if any, under the Leases.

     (xi) Certificates of occupancy for the portions of the Buildings occupied by
the tenants under the Leases.

     (xii) Such evidence of the authority of Sellers to consummate the Closing as
the Title Company may require.

     (xiii) An inventory of personal property included in the Property as of the
Closing Date.

     (xiv) Such other documents as may be reasonably required to consummate the sale
and purchase contemplated hereby, which are not inconsistent with this Agreement,
including, without limitation, receipt by the Title Company of written payoff
instructions from all secured lenders.

     (b) At Closing, Buyer shall deliver or cause to be delivered to Sellers the following
items at the Closing:

     (i) The Purchase Price by wire transfer to Sellers, allocated as provided
herein.

     (ii) The Buyer’s agreement to indemnify and hold Sellers harmless of and from
all liabilities, losses, damages, costs, expenses (including reasonable attorneys’
fees) which the Sellers may suffer or incur by reason of (A) any breach of any of
the Buyer’s representations or warranties set forth in this Agreement, and (B) any
act or cause of action occurring or accruing subsequent to the Closing Date and
arising out of any act or failure to act of the Buyer relating to this Agreement or
to the Property.

     (iv) Such evidence of the authority of Buyer to consummate the Closing as the
Title Company may require.

     (v) The Buyer’s agreement to assume (A) all ground and operating leases and
amendments thereto in effect pertaining to the Property, including, without
limitation, all obligations thereunder, if any, of Sellers, to pay for future

18

 

tenant improvement and leasing commissions, and (B) all Service Contracts pertaining to the
Property.

     (vi) Such other documents as may be reasonably required to consummate the sale
and purchase contemplated hereby, which are not inconsistent with this Agreement.

     8. Closing Costs and Prorations.

     (a) Title Insurance and Escrow Charges. Sellers shall pay one-half (1/2) of
the escrow charges of the Title Company and the entire cost of the standard coverage owner’s
policy of title insurance. Buyer shall pay one-half (1/2) of the escrow charges of the
Title Company and the difference in cost (premiums and related taxes) between the standard
coverage and the extended coverage. Buyer shall pay for any endorsements that Buyer elects
to obtain.

     (b) Survey. Sellers shall deliver to Buyer the Survey. Any other survey
requirements of Buyer shall be satisfied by Buyer, at Buyer’s expense.

     (c) Attorneys’ Fees. Buyer and Sellers shall each pay their respective counsel
fees.

     (d) Taxes and Other Closing Costs. Sellers shall pay the real estate excise
tax payable upon conveyance of that portion of the Property subject to the real estate
excise tax. Buyer shall pay sales/use taxes payable on conveyance of that portion of the
Property subject to sales/use taxes. Buyer shall pay any and all other costs associated
with Closing including, without limitation, Deed recording fees, and any costs, expenses and
fees relating to Buyer’s financing of the Property, including points, recording fees, and
taxes relating to financing documents, commitment fees, etc.

     (e) Prorations of Rents, Real Estate Taxes, Assessments, Utilities and Operating
Costs. Rents which have been collected as of the Closing Date (but not uncollected or
delinquent rents), real estate taxes, assessments payable in installments, utility charges
and/or operating costs shall be prorated as of 12:01 a.m. (Seattle time) on the Closing
Date. All uncollected or delinquent rents received by Buyer after the Closing shall be
collected by Buyer as the agent of Sellers, and remitted to Sellers within ten (10) days of
receipt; provided, all receipts after Closing shall be applied first to current rents due
and owing; and provided further, in the event any delinquent rents are not collected by
Buyer and remitted to Sellers within ninety (90) days following the Closing, Buyer shall
assign to Sellers the claim for delinquent rents. Sellers shall submit preliminary
prorations to Buyer and the Title Company for rents, operating costs, and utilities three
(3) business days before closing. The Title Company shall prepare and submit to Buyer and Sellers
settlement statements one (1) business day before Closing.

     (f) Other Prorations and Adjustments. Sellers and Buyer are not aware of any
other costs and expenses that must be adjusted between them on the Date of Closing and,

19

 

if any such costs or expenses arise or become known to them on or before the Date of Closing,
they shall be equitably adjusted between Sellers and Buyer in accordance with customary
practice in King County, Washington.

     (g) Adjustment of Prorations/Price. Upon written notice delivered to Sellers
no later than three (3) business days before Closing, Buyer may elect to pay portions of the
closing costs which are otherwise to be prorated to or paid by Sellers at Closing (based
upon the full purchase price), such as the real estate excise tax and the commission payable
to Broker (hereinafter defined), with an equal reduction in the Purchase Price (such that
the net proceeds to Sellers are not adversely affected by such combined adjustments).

     9. Date and Place of Closing. For the purposes of this Agreement, subject to the
remaining provisions of this Paragraph 9, the terms “Closing,” “Closing Date,” and/or “Date of
Closing” shall mean that date designated by Sellers upon no less that five (5) business days
advance written notice (the “Sellers’ Closing Notice”) delivered to Buyer following the expiration
of Buyer’s Contingency Period, or such later date to which the Closing may be postponed pursuant
to Paragraph 6 hereof (subject to the remainder of this Paragraph 9). The date designated in the
Sellers’ Closing Notice shall be deemed accepted by Buyer unless, within two (2) business days
following Buyer’s receipt of such notice, Buyer (i) delivers written notice to Sellers (the
“Buyer’s Alternate Closing Notice”) specifying an alternate Closing Date which must be no later
than seven (7) business days after the date designated in the Sellers’ Closing Notice (but no later
than December 29, 2006, unless agreed to in writing by Sellers), and (ii) within three (3) business
days after the delivery of the Buyer’s Alternate Closing Notice Buyer doubles the Earnest Money
deposit. In the event Sellers have failed to give the Sellers’ Closing Notice to Buyer on or
before April 1, 2007, Buyer may either (x) terminate this Agreement (in which case the Earnest
Money and all interest earned thereon shall be immediately returned to Buyer so long as Buyer has
complied with its obligations under Paragraph 3(c)(i)) or (y) enforce this Agreement pursuant to
the terms of Paragraph 11(b), and in the event Buyer elects to proceed under this clause (y)
Sellers shall be deemed to have given the Sellers’ Closing Notice on April 1, 2007 and designated
April 6, 2007 as the Closing Date. The time of Closing shall be 9:00 a.m. (Seattle time) and the
place of Closing shall be at the offices of the Title Company. Buyer hereby acknowledges and
agrees that time is of the essence with respect to Closing and, provided all conditions to Closing
have been satisfied and Sellers are prepared to fulfill completely their obligations hereunder and
are not in default hereunder, the failure of Buyer to fulfill its obligations hereunder and cause
Closing to occur by the Date of Closing shall constitute a material default hereunder. Sellers
hereby covenant and agree to use good faith efforts to obtain all necessary items and deliverables
in order to cause the Closing to occur on or before April 1, 2007.

     10. Intentionally Omitted.

     11. Default.

     (a) If all conditions to Closing have been satisfied and Sellers are prepared to fulfill
completely their obligations hereunder and are not in default hereunder, then should Buyer fail to

20

 

fulfill its obligations hereunder and cause Closing to occur by the Date of Closing, Sellers’ sole
remedy shall be to terminate this Agreement and collect and retain, as liquidated damages, the
Earnest Money together with any interest earned thereon (collectively, the “Liquidated Damages”).
In the event Sellers terminate this Agreement and receive the Liquidated Damages, (i) this
Agreement shall be null and void, (ii) neither party shall be liable for damages (except with
respect to the Liquidated Damages received by Sellers, as well as Buyer’s obligation to pay
Sellers’ attorney’s fees, if any, incurred as a result of Buyer’s default) or have any further
duties or obligations hereunder, and (iii) Buyer and Sellers shall execute such documentation as
shall be necessary to release each party from all further duties and obligations under or with
respect to this Agreement. In the event of such termination, the Title Company is hereby
irrevocably authorized and directed to pay the Liquidated Damages to Sellers.

     (b) Should Sellers or any one of them default in the performance of their obligations
hereunder, and such default shall continue for a period of thirty (30) days (except as otherwise
provided in Paragraph 6(c)) after written notice from Buyer to Sellers (provided, however, if (i)
the nature of the default is such that it cannot be cured, there shall be no cure period, and (ii)
the nature of the default is such that it cannot be cured within a period of thirty (30) days, but
Sellers have commenced to cure said default within said thirty (30) day period and is diligently
pursuing such cure, such period shall be extended to the period reasonably required to cure such
default), Buyer shall have the right, at Buyer’s option, as Buyer’s sole and exclusive remedies,
either (i) to terminate this Agreement, in which event (A) this Agreement shall be null and void
and all Earnest Money paid by Buyer pursuant to Paragraph 3(b) hereof and the interest earned
thereon shall be returned to Buyer (provided that Buyer complies with the requirements of Paragraph
3(c)(i) hereof), (B) neither party shall be liable for damages or have any further duties or
obligations hereunder (except that Sellers shall pay Buyer’s attorneys’ fees, if any, incurred as a
result of Sellers’ default), and (C) Buyer and Sellers shall execute such documentation as shall be
necessary to release each party from all duties and obligations under this Agreement, or (ii)
provided that such action is commenced within sixty (60) days after the originally scheduled
Closing Date, to bring an action for specific performance of Sellers’ obligations hereunder and
such further equitable relief as the court considering the issue shall determine appropriate,
including attorneys fees to the substantially prevailing party. In the event of such termination,
the Title Company is hereby irrevocably authorized and directed to forward the Earnest Money held
by it pursuant to this Agreement, together with any interest earned thereof, to Buyer. In the
event Buyer shall bring an action for specific performance, the Title Company shall retain the
Earnest Money pending resolution of the action, either to be delivered to Sellers as a part of the
Purchase Price or returned by Buyer, based upon the resolution of the dispute.

     (c) The parties have agreed that Sellers’ actual damages, in the event of a failure to
consummate this sale due to Buyer’s default, would be extremely difficult or impracticable to
determine. After negotiation, the parties have agreed that, considering all
the circumstances existing on the date of this Agreement, the amount of the Earnest Money is
a reasonable estimate of the damages that the Sellers would incur in such event. By placing their
initials below, each party specifically confirms the accuracy of the statements made above and the
fact that each party was represented by counsel who explained, at the time this Agreement was made,
the consequences of this liquidated damages provision.

21

 

                   
                        

     Sellers           Buyer

     12. Damage and Destruction/Condemnation.

     (a) From and after the Date of the Agreement to the Date of Closing, Sellers shall continue to
be considered the owner of the Property for all purposes and, except as set forth herein, shall be
entitled to receive all insurance proceeds and/or condemnation awards that may become payable with
regard to any damage or destruction and/or condemnation thereof. Sellers, between the Date of the
Agreement and the Date of Closing, shall carry “all risk” (sometimes referred to as special
extended form) property insurance coverage to the extent of full replacement cost on the Buildings.

     (b) Sellers and Buyer waive the provisions of all applicable laws relating to the occurrence
of a casualty or condemnation between the Date of the Agreement and the Date of Closing, and
Sellers and Buyer agree that the following provisions of this Paragraph 12 shall govern in lieu
thereof.

     (c) If prior to the Closing hereunder all or a material part of the Property is damaged or
destroyed by fire or other cause, or is taken by right of eminent domain or by condemnation, then
in either of such events either Sellers or Buyer may, by notice given to the other party at or
prior to the Date of Closing (but not more than fifteen (15) days after notice of such damage or
destruction and/or taking is received by the party giving such notice), terminate this Agreement,
in which event (i) this Agreement shall become null and void and all Earnest Money paid by Buyer
pursuant to Paragraph 3(b) hereof and the interest earned thereon shall be returned to Buyer
(provided that Buyer complies with the requirements of Paragraph 3(c)(i)), (ii) neither party shall
be liable for damages or have any further duties or obligations hereunder, and (iii) Buyer and
Sellers shall execute such documentation as shall be necessary to relieve each party from all
duties and obligations under this Agreement. For the purposes of this Paragraph 12, a “material
part of the Property” shall mean (a) any damage, destruction, or taking of twenty-five percent
(25%) or more of the net rentable area of the Buildings, or (b) any damage, destruction, or taking
that allows for the termination of Leases aggregating twenty-five percent (25%) or more of the net
rentable area of the Buildings.

     (d) If prior to the Closing a non-material part of the Property is damaged or destroyed by
fire or other cause, or is taken by right of eminent domain or by condemnation, or a material part
of the Property is damaged or destroyed by fire or other cause or taken by right of eminent domain
or condemnation and neither Sellers nor Buyer have terminated this Agreement in accordance with the
above-stated provisions, then Sellers as their sole obligation and at their sole election shall
either (i) credit on account of the Purchase Price an amount equal to the net
proceeds of any fire insurance plus Sellers’ insurance deductible and/or insurance retention and/or
condemnation award actually received by Sellers (the term “net proceeds” as used in this paragraph
to mean such proceeds reduced by (a) the reasonable cost of collection, and (b) the cost of any
repairs effected by or on behalf of Sellers with Buyer’s consent, which consent shall not be
unreasonably withheld or delayed), or (ii) if any such proceeds have not been received by Sellers,
transfer and assign to Buyer, all of Sellers’ right, title and interest in and to any insurance
proceeds and claims plus Sellers’ insurance deductible and/or insurance retention and/or

22

 

condemnation proceeds payable to Sellers, and there shall be no abatement or credit on account of
the Purchase Price and no duty or obligation on Sellers to repair or restore any damage or to make
any repairs to the Property by reason of such fire, casualty or taking.

     13. Notices. Whenever in this Agreement it shall be required or permitted that notice
or demand be given or served by either party to this Agreement, such notice or demand shall be
given or served in writing and sent to Sellers and Buyer at the addresses set forth below:

	 	 	 	 	 
	 

	 	To Sellers:
	 	14850 N.E. 31st Circle
	 

	 	 	 	Redmond WA 98052
	 

	 	 	 	Attention: Bill Hart/Glenn Hart
	 

	 	 	 	Facsimile: 425-556-9200
	 
	 	 	 	 
	 

	 	With copy to:
	 	Kinne Hawes
	 

	 	 	 	600 University Street, Suite 2424
	 

	 	 	 	Seattle WA 98101-1192
	 

	 	 	 	Facsimile: 206-464-0484
	 
	 	 	 	 
	 

	 	To Buyer:
	 	Hines REIT Daytona Campus LLC
	 

	 	 	 	c/o Hines Interests Limited Partnership
	 

	 	 	 	800 Fifth Avenue Suite 3838
	 

	 	 	 	Seattle, WA 98104
	 

	 	 	 	Attention: W. Rand Dixon
	 

	 	 	 	Facsimile: 206-839-8401
	 
	 	 	 	 
	 

	 	With copy to:
	 	Hines REIT Daytona Campus LLC
	 

	 	 	 	c/o Hines Interests Limited Partnership
	 

	 	 	 	2800 Post Oak Boulevard, Suite 5000
	 

	 	 	 	Houston, Texas 77056-6118
	 

	 	 	 	Attention: Charles N. Hazen
	 

	 	 	 	Facsimile: 713-966-7851
	 
	 	 	 	 
	 

	 	And with a copy to:
	 	Hines REIT Daytona Campus LLC
	 

	 	 	 	c/o Hines Interests Limited Partnership
	 

	 	 	 	2800 Post Oak Boulevard, Suite 5000
	 

	 	 	 	Houston, Texas 77056-6118
	 

	 	 	 	Attention: Jason Maxwell
	 

	 	 	 	Facsimile: 713-966-2075
	 
	 	 	 	 
	 

	 	And with a copy to:
	 	Baker Botts L.L.P.
	 

	 	 	 	2001 Ross Avenue, Suite 600
	 

	 	 	 	Dallas, TX 75201-2980
	 

	 	 	 	Attention: Joel M. Overton, Jr.
	 

	 	 	 	Facsimile: 214-661-4938

23

 

All such notices shall be sent by (i) certified or registered mail and shall be effective three (3)
days after the date of mailing; (ii) Federal Express or similar overnight courier and shall be
effective one (1) day after delivery to Federal Express or similar overnight courier; (iii)
facsimile transmission and shall be effective on the date of confirmed electronic receipt of the
transmission; or (iv) personal service and shall be effective on the same day as service. Any such
address may be changed from time to time by either party serving notices as above provided.

     14. Successors and Permitted Assigns.

     (a) The terms, conditions and covenants hereof shall extend to and be binding upon and
inure to the benefit of the heirs, personal representatives, successors and permitted
assigns of the parties hereto.

     (b) Buyer shall not assign this Agreement without the prior written consent of Sellers
in each instance, which shall not be unreasonably withheld, conditioned, or delayed. Any
attempted assignment without consent shall be null and void. Any assignment of Buyer’s
interest hereunder shall be pursuant to a written assignment and assumption wherein the
assignee shall assume and agree to pay and perform all of the terms, covenants and
conditions of this Agreement to be paid or performed by Buyer hereunder, and shall not
relieve or release Buyer of any liability hereunder.

     (c) Notwithstanding the limitations of Paragraph 14(b) above, either party may assign
its rights hereunder (i) to an entity in which it has an economic interest and/or managerial
control, or, as to Sellers, in which members of the family (i.e., children, siblings,
nieces, nephews, grandchildren, and spouses of any of the foregoing) of a member of a Seller
have an economic interest and/or managerial control, and (ii) but not its obligations, to an
intermediary so that any one or more of the Sellers and/or the Buyer may effect a
tax-deferred exchange under the Internal Revenue Code Section 1031, and the non-assigning
party shall fully cooperate with the assigning party to facilitate the exchange, provided,
however, that (A) the assigning party shall notify the other party of such assignment in
writing no later than no later than ten (10) business days prior to the Date of Closing and
shall deliver to the other party or parties a fully executed original of the assignment
agreement with that notice; (B) the non-assigning party shall not incur
any fees, costs, liability or costs associated with such exchange, and (C) the
assigning party shall indemnify and hold the non-assigning party and any broker harmless
from and against any liability or action that arises as a result of the exchange. No
permitted assignment hereunder shall release the assigning party from any of its obligations
to the other party hereunder or cause a delay in the Date of Closing.

     15. Survival of Covenants. Except as specifically set forth herein, the covenants,
agreements and representations herein contained shall not survive the Date of Closing and shall not
bind the parties subsequent to the Closing.

24

 

     16. Applicable Law. This Agreement shall be governed by and construed and interpreted
in accordance with the laws of the State of Washington, without giving effect to the principles of
conflicts of law thereof.

     17. Amendments. This Agreement may not be amended, modified, extended, revised or
otherwise altered, nor may any party hereto be relieved of any of its liabilities or obligations
hereunder, except by a written instrument duly executed by both parties. Any such written
instrument entered into in accordance with the provisions of the preceding sentence shall be valid
and enforceable notwithstanding the lack of separate legal consideration therefor.

     18. Headings. The title of this Agreement and the paragraph and other headings used
in this Agreement have been inserted for convenience of reference only, are not part of the
parties’ agreement, shall not be deemed in any manner to modify, expand, explain or restrict any of
the provisions of this Agreement and are not intended to have any legal effect. Accordingly, no
reference shall be made to any such title or heading for the purpose of interpreting, construing or
enforcing any of the provisions of this Agreements.

     19. Integration. This Agreement, including the exhibits and schedules attached to
this Agreement, which are incorporated herein by this reference, constitute the entire agreement
and understanding of the parties hereto with respect to the subject matter hereof and supersedes
all prior agreements, proposals, offers, counteroffers, agreements and understandings of the
parties regarding said subject matter, whether written or oral, all of which are hereby merged into
and superseded by this Agreement.

     20. No Recordation of Agreements. Except as expressly permitted by Paragraph 30, none
of this Agreement, any memorandum hereof, and any other document or instrument making reference to
this Agreement shall be recorded or filed in any public records and any purported recordation or
filing shall be deemed null, void and of no force or effect.

     21. Construction. This Agreement shall not be construed more strictly against one
party than against the other merely by virtue of the fact that it may have been prepared by counsel
for one of the parties, it being recognized that both Sellers and Buyer have contributed to the
preparation of this Agreement.

     22. Waiver. Except as expressly provided herein, no waiver by any party of any
failure or refusal of the other party to comply with its obligations under this Agreement shall be
deemed a waiver of any other subsequent failure or refusal to so comply by such other party. No
waiver shall be valid unless in writing signed by the party to be charged and only to the extent
therein set forth.

     23. Severability. If any term or provision of this Agreement or application thereof
to any person or circumstances shall, to any extent, be found by a court of competent jurisdiction
to 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 other term or provision of this Agreement
shall be valid and be enforced to the fullest extent permitted by law.

25

 

     24. Parties Not Partners. Nothing contained in this Agreement or any of the documents
or instruments to be executed pursuant hereto shall constitute any one or more of Buyer and its
officers, directors, successors and assigns, as partners with, agents for or principals of any one
or more of Sellers and its officers, directors, successors and assigns.

     25. Attorneys’ Fees, Costs and Expenses. Anything to the contrary herein
notwithstanding, in any action, proceeding or dispute resolution process arising from, out of or in
connection with this Agreement and the transactions contemplated hereby, the prevailing party
therein shall be entitled to recover from the other party hereto the costs, expenses and reasonable
attorneys’ fees incurred by the prevailing party in connection therewith. Nothing contained in
this paragraph 25 is intended to limit any provision regarding payment of attorneys’ fees, costs,
expenses and similar matters contained elsewhere in this Agreement or in any document or instrument
executed and delivered pursuant to this Agreement.

     26. Cumulative Remedies. Unless expressly provided otherwise herein, the remedies of
the parties provided for herein shall be cumulative and concurrent, and may be pursued singly,
successively or together, at the sole and absolute discretion of the party for whose benefit such
remedies are provided, and may be exercised as often as occasion therefor shall arise.

     27. Currency. All amounts to be paid hereunder shall be paid in the currency of the
United States of America.

     28. Counterparts/Facsimile Signature. This Agreement may be executed simultaneously
in two or more counterparts each of which shall be deemed an original, but all of which shall
constitute one and the same Agreement. Sellers and Buyer agree that the delivery of an executed
copy of this Agreement by facsimile shall be legal and binding and shall have the same full force
and effect as if an original executed copy of this Agreement had been delivered.

     29. Brokerage Fees. Conditioned upon the actual consummation of the sale contemplated
hereby, Sellers agree to pay to CB Richard Ellis Real Estate Services, LLC (the “Broker”) a
commission in accordance with a separate commission agreement between Sellers and Broker. If the
sale contemplated hereby is not actually consummated for any reason, including the default of
either or both parties, no commission shall be payable. Neither Sellers nor Buyer has contracted
with any other real estate broker, agent, finder or similar person in connection with the
negotiation and execution of this Agreement, the transactions contemplated hereby or the sale and
purchase of the Property. It is agreed that if any claims for any brokerage fees are ever made
against Sellers or Buyer in connection with the transactions contemplated by this Agreement, all
such claims shall be paid by the party whose commitments form the basis of such claims. Sellers
and Buyer each agree to indemnify and hold harmless the other from and against any and all
liabilities, claims, demands or actions for or with respect to any other brokerage fees asserted by
any person, firm or corporation in connection with this Agreement or the transactions contemplated
hereby, and any court costs, attorneys’ fees or other costs and expenses arising therefrom, insofar
as any such liabilities, claims, demands or actions are based upon a contract or commitment of the
indemnifying party. The provisions of this Paragraph 29 shall survive the Closing.

26

 

     30. Confidentiality. The parties shall keep the existence of this Agreement, the terms
hereof, and any and all material obtained about the other party and the Property strictly
confidential, and shall not disclose such information to any third party. Neither party shall make
any public statement or disclosure concerning the existence or terms and conditions of this
Agreement without prior notice to and approval of the other party, which approval shall not be
unreasonably withheld, conditioned, or delayed. The foregoing shall not prohibit a party’s
disclosure of the existence and terms and conditions of this Agreement to its attorneys,
accountants, and other advisors assisting with the transaction, nor prohibit Buyer’s disclosure of
same to prospective investors or otherwise as required by law, or as may reasonably be necessary
for Buyer, its affiliates or any entity advised by Buyer’s affiliates to comply with any applicable
federal or state securities laws, rules, or regulations, or to comply with the requirements of the
Securities and Exchange Commission (“SEC”), the New York Stock Exchange (“NYSE”), or any similar
agency or body, provided that each such person (other than the SEC, NYSE, and any similar agency or
body) to whom disclosure is permitted is advised of the terms of this Section 30 and agrees to
comply with its terms. This provision shall survive the Closing or termination of this Agreement
for a term of one (1) year.

     31. SEC Compliance. Sellers acknowledge that audited financial statements pertaining
to the Property for the three (3) full calendar years prior to Closing and that portion of the
calendar year prior to Closing in which Closing occurs are required to be filed by Buyer with the
SEC after the Closing. Accordingly, Sellers agree to provide Buyer and its representatives
reasonable access to Sellers’ books and records after the close of escrow upon reasonable advance
notice for the sole purpose of conducting the required audit. Sellers shall cooperate (at no cost
to Sellers) with Buyer and its auditor in the conduct of such audit by making its files available
and allowing Buyer and its auditors the right to interview Sellers’ staff upon request of Buyer;
provided, however, that (i) neither Sellers nor its staff shall have any obligation to sign or
execute any letter or any other document in connection therewith, and (ii) none of Buyer, the SEC,
or Buyer’s auditors shall have the right to rely on any interview with Sellers’ staff, and
none of Sellers or any of Sellers’ staff shall have any liability in connection therewith. The
provisions of this Paragraph 31 shall survive the Closing.

End of Page; Signature Pages Follow

27

 

     IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed the day
and year first above written.

SELLERS:

Daytona Building Sellers:

	 	 	 	 	 	 	 	 	 	 	 
	GPH Daytona Building LLC	 	 	 	WPH Daytona Building LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Glenn P. Hart	 	 	 	By:	 	/s/ William P. Hart 	 	 
	Its:

	 	 

Glenn P. Hart 

Manager
	 	 	 	Its:
	 	 

William P. Hart 

Manager
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	RCC Building Sellers:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	GPH RCC Building LLC	 	 	 	WPH RCC Building LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Glenn P. Hart	 	 	 	By:	 	/s/ William P. Hart 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Its:

	 	Glenn P. Hart 

Manager
	 	 	 	Its:
	 	William P. Hart 

Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	JPH RCC Building LLC	 	 	 	CAC RCC Building LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Glenn P. Hart	 	 	 	By:	 	/s/ William P. Hart 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Glenn P. Hart
	 	 	 	 	 	William P. Hart	 	 
	Its:

	 	Manager
	 	 	 	Its:
	 	Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Daytona-RCC Land Sellers:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	GPH Daytona-RCC Land LLC	 	 	 	WPH Daytona-RCC Land LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Glenn P. Hart	 	 	 	By:	 	/s/ William P. Hart 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Glenn P. Hart
	 	 	 	 	 	William P. Hart	 	 
	Its:

	 	Manager
	 	 	 	Its:
	 	Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	JPH Daytona-RCC Land LLC	 	 	 	CAC Daytona-RCC Land LLC	 	 

28

 

	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Glenn P. Hart	 	 	 	By:	 	/s/ William P. Hart	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 

	 	Glenn P. Hart
	 	 	 	 	 	William P. Hart	 	 
	Its:

	 	Manager
	 	 	 	Its:
	 	Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ William P. Hart	 	 	 	By:	 	/s/ Glenn P. Hart	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	William P. Hart
	 	 	 	 	 	Glenn P. Hart	 	 
	Its:

	 	Manager
	 	 	 	Its:
	 	Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	FC16 LLC	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By: GPH Daytona-RCC Land LLC	 	 	 	 	 	 	 	 
	Its: Manager	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Glenn P. Hart	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Glenn P. Hart	 	 	 	 	 	 	 	 
	Its:

	 	Manager	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By: WPH Daytona-RCC Land LLC	 	 	 	 	 	 	 	 
	Its: Manager	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ William P. Hart	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	William P. Hart	 	 	 	 	 	 	 	 
	Its:

	 	Manager	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	BUYER:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	HINES REIT DAYTONA CAMPUS LLC,	 	 	 	 	 	 	 	 
	a Delaware limited liability company	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Authorized Signatory	 	 
	 	 	 	 	 
	 

	 	 	 	Its
	 	 
 

	 	 

29

 

     The undersigned hereby executes this Agreement for the sole purpose of acknowledging its
agreement with the provisions of Paragraph 3(b) hereof relating to its duties and obligations as
escrow agent hereunder.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	LANDAMERICA COMMERCIAL SERVICES	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Authorized Signatory	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Dated:
	 	 	 	 	 	, 200___	 	 
	 	 	 	 	 	 	 	 	 

30

 

FIRST AMENDMENT TO

REAL ESTATE PURCHASE AND SALE AGREEMENT

     THIS FIRST AMENDMENT TO REAL ESTATE PURCHASE AND SALE AGREEMENT (“First Amendment”) is made
and entered into effective November 29, 2006, by and between the undersigned sellers, consisting of
Daytona Building Sellers, RCC Building Sellers, and Daytona-RCC Land Sellers, all of whom are
Washington limited liability companies (individually a “Seller” and together “Sellers”) and Hines
REIT Daytona Campus LLC, a Delaware limited liability company and/or its assigns (“Buyer”).

RECITALS

     On or about November 28, 2006, the parties entered into that certain real estate purchase and
sale agreement (“Agreement”) for the purchase and sale of certain real and personal property
described therein. The parties now desire to amend the Agreement.

AGREEMENT

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
hereinafter contained, it is hereby mutually agreed by and between Sellers and Buyer as follows:

     1. Paragraph 9 of the Agreement shall be restated in its entirety, as follows:

     Date and Place of Closing. For the purposes of this Agreement, subject
to the remaining provisions of this Paragraph 9, the terms “Closing,” “Closing
Date,” and/or “Date of Closing” shall mean December 20, 2006. The time of Closing
shall be 9:00 a.m. (Seattle time) and the place of Closing shall be at the offices
of the Title Company. Buyer hereby acknowledges and agrees that time is of the
essence with respect to Closing and, provided all conditions to Closing have been
satisfied and Sellers are prepared to fulfill completely their obligations hereunder
and are not in default hereunder, the failure of Buyer to fulfill its obligations
hereunder and cause Closing to occur by the Date of Closing shall constitute a
material default hereunder. Sellers hereby covenant and agree to use good faith
efforts to obtain all necessary items and deliverables in order to cause the Closing
to occur on December 20, 2006.

     2. Except for the restatement of Paragraph 9 set forth herein, the Agreement shall remain
unmodified and in full force and effect. Capitalized terms not defined herein shall have the
meanings ascribed to them in the Agreement.

End of Page; Signature Pages Follow

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     IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed
the day and year first above written.

SELLERS:

Daytona Building Sellers:

	 	 	 	 	 	 	 	 	 
	GPH Daytona Building LLC	 	WPH Daytona Building LLC	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Glenn P. Hart
	 	By:
	 	/s/William P. Hart	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Glenn P. Hart
	 	 	 	William P. Hart	 	 
	Its: Manager	 	Its: Manager	 	 
	 
	 	 	 	 	 	 	 	 
	RCC Building Sellers:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	GPH RCC Building LLC	 	WPH RCC Building LLC	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Glenn P. Hart
	 	By:
	 	/s/William P. Hart	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Glenn P. Hart
	 	 	 	William P. Hart	 	 
	Its: Manager	 	Its: Manager	 	 
	 
	 	 	 	 	 	 	 	 
	JPH RCC Building LLC	 	CAC RCC Building LLC	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Glenn P. Hart
	 	By:
	 	/s/William P. Hart	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Glenn P. Hart
	 	 	 	William P. Hart	 	 
	Its: Manager	 	Its: Manager	 	 
	 
	 	 	 	 	 	 	 	 
	Daytona-RCC Land Sellers:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	GPH Daytona-RCC Land LLC	 	WPH Daytona-RCC Land LLC	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Glenn P. Hart
	 	By:
	 	/s/William P. Hart	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Glenn P. Hart
	 	 	 	William P. Hart	 	 
	Its: Manager	 	Its: Manager	 	 

2

 

	 	 	 	 	 	 	 	 	 
	JPH Daytona-RCC Land LLC	 	CAC Daytona-RCC Land LLC	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Glenn P. Hart
	 	By:
	 	/s/ William P. Hart	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Glenn P. Hart
	 	 	 	William P. Hart	 	 
	Its: Manager	 	Its: Manager	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Glenn P. Hart
	 	By:
	 	/s/ William P. Hart	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Glenn P. Hart
	 	 	 	William P. Hart	 	 
	Its: Manager	 	Its: Manager	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ William P. Hart
	 	By:
	 	/s/ Glenn P. Hart	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	William P. Hart
	 	 	 	Glenn P. Hart	 	 
	Its: Manager	 	Its: Manager	 	 
	 
	 	 	 	 	 	 	 	 
	FC16 LLC	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By: GPH Daytona-RCC Land LLC	 	 	 	 	 	 
	Its: Manager	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Glenn P. Hart	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Glenn P. Hart	 	 	 	 	 	 
	 

	 	Its: Manager	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By: WPH Daytona-RCC Land LLC	 	 	 	 	 	 
	Its: Manager	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ William P. Hart	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	William P. Hart	 	 	 	 	 	 
	 

	 	Its: Manager	 	 	 	 	 	 

	 	 	 	 	 	 	 
	BUYER:	 	 
	 
	 	 	 	 	 	 
	HINES REIT DAYTONA CAMPUS LLC,	 	 
	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Authorized Signatory	 	 
	 	 	 	 	 
	 

	 	Its	 	 	 	 
	 

	 	 	 	 	 	 

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     The undersigned hereby executes this First Amendment to the Agreement for the sole purpose of
acknowledging receipt of the first amendment and confirmation of the closing date.

	 	 	 	 	 	 	 
	 	 	     LANDAMERICA COMMERCIAL SERVICES	 	 
	 
	 	 	 	 	 	 
	 

	 	     By:
	 	/s/ Authorized Signatory
	 	 
	 

	 	 	 	 	 	 
	Its:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	     Dated:
	 	 	 	, 2006
	 

	 	 	 	 	 	 

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